CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  2/5/19
Staff Contact:	Casey Toomay, Assistant City Manager
Recommendations/Options/Action Requested:
Consider the following items related to the Lawrence Community Shelter (LCS): 1) Authorize the City Manager to enter into a letter of understanding with Douglas County to jointly fund consulting services related to LCS; and 2) Authorize the City Manager to enter into an agreement with the Lawrence Community Shelter for 2019, providing one hundred percent (100%) of their 2019 budget allocation by March 1, 2019.
Executive Summary:		The City Commission heard an update from the Lawrence Community Shelter (LCS) at their work session in December.  At that meeting, LCS shared that they are facing a significant budget shortfall in 2019.  Work is underway to try to stabilize funding and operations at LCS, however, they are currently operating without a permanent Executive Director.  Both the City and County are significant funders for LCS and are invested in seeing the shelter be successful.  To that end, City and County staff have been meeting along with representatives of the Board of LCS and have two recommendations that can assist LCS achieve that success.   First, staff is recommending the City and County jointly fund hiring a consultant to provide an assessment of the current operations and financial conditions of the Lawrence Community Shelter, as well as recommend how to address current budget shortfalls, and develop a strategic plan for short term and long term operational and financial sustainability with a three (3) to five (5) year time frame. Staff recommends the City enter into a letter of understanding with Douglas County regarding the funding of this temporary position.  Under the terms of the letter, the County would be responsible for contracting with SS&C Solutions, Inc. for the project, and the City would pay fifty percent (50%) of the actual cost, in an amount not to exceed $15,150.  The work of the consultant is expected to take approximately four (4) months, with an expected completion date of May 15, 2019.  The results should help the City and County be assured LCS is on a path of sustainability, allowing both entities to make more informed decisions about the role of the City and County going forward.   Second, staff is recommending entering into an agreement with LCS for the use of City funds, disbursing their entire 2019 budget allocation of $200,000 by March 1.  Typically, agencies receive half of their annual allocation in April and the other half in October.  Advancing the disbursement will alleviate some of the pressure of meeting payroll and other monthly expenses, allowing LCS staff to focus more on longer term operational goals.  County staff will make a similar recommendation to the Board of Douglas County Commissioners, providing even more time for LCS to stabilize their operations.
Strategic Plan Critical Success Factor		Safe, Healthy, and Welcoming Neighborhoods Core Services Sound Fiscal Stewardship Collaborative Solutions Economic Growth and Security
Fiscal Impact (Amount/Source):		The fiscal impact to the City of the consulting services is a net increase of $15,150.  This item was not anticipated in the 2019 budget and will require amending the budget to spend down fund balance.  The fiscal impact to the City of advancing the allocation to LCS is $200,000, however, these funds were budgeted for 2019.
Attachments:		Letter of understanding between City and County Agreement for the Use of City General Funds Agreement for the Use of City Special Alcohol Funds

Reviewed By: (for CMO use only)

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