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HomeMy WebLinkAbout113-26 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 113-26 File Number: 2026-1366 A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE A CONTRACT WITH SEVEN HILLS HOMELESS CENTER FOR OPERATIONS AND CAPITAL IMPROVEMENTS IN THE TOTAL AMOUNT OF $275,370.00 WHEREAS, the Board of Directors of Seven Hills has operated a day time facility to serve numerous homeless and needy Fayetteville residents for over 20 years relying upon the support of several local churches, charities and charitable persons, as well as some governmental support (for veterans, etc.); and WHEREAS, the Fayetteville City Council approved a funding request for the 2026 fiscal year to maintain the operations of the Seven Hills day center and, although funding for the center by donors has improved, a shortfall still exists that jeopardizes its ability to continue to offer vital services to Fayetteville’s homeless residents; and WHEREAS, if Seven Hills could no longer operate its Walker Family Residential Community transitional housing facility, currently housed residents might become homeless again and have to live on the streets or in the woods; and WHEREAS, if Seven Hills could no longer operate its day time facility, the large number of homeless residents who depend upon this facility for showers and washing, hot food, a warm place to stay during the day, as well as access to a telephone and other job assistance services could not find such comparable services elsewhere; and WHEREAS, the City Council has approved contracts to provide funding assistance for maintenance of the Walker Family Residential Community facility through citywide budgeting processes since 2017; and WHEREAS, Seven Hills and the Facilities Management Department outlined several items for repair or replacement in the 2026-2030 Capital Improvement Program; and WHEREAS, the facilities and services provided by Seven Hills should continue to be supported by the City in order to prevent our homeless and needy residents from suffering undue hardship and deprivation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes Mayor Rawn to sign a contract with Seven Hills Homeless Center for Operations and capital improvements to the Walker Family Residential Community Facility in the total amount of $275,370.00. Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Resolution: 113-26 File Number: 2026-1366 Page 2 Attest: _______________________________ Kara Paxton, City Clerk Treasurer PASSED and APPROVED on May 5, 2026 Approved: _______________________________ Molly Rawn, Mayor Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-1366 MEETING OF MAY 5, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff FROM: Marlee Stark, Chief Housing Officer SUBJECT: 7hills Annual Contract Renewal RECOMMENDATION: Staff recommend approval of a resolution to waive the requirements of formal competitive bidding and approve a contract with Seven Hills Homeless Center (“7hills”) in the amounts of $125,370.00 for operations of the 7hills Day Center and $150,000.00 for capital improvements at the Walker Family Residential Community facility. BACKGROUND: The City Council has approved contracts to provide funding assistance for the 7hills Day Center and maintenance of the Walker Family Residential Community facility through citywide budgeting processes since 2017. The Walker Family Residential Community provides transitional housing and overnight shelter to individuals experiencing homelessness. Dedicated case managers provide tailored support to each resident, identifying opportunities for employment and housing as well as support to address legal or health-related issues. 7hills also operates its Day Center on School Avenue, providing essential services such as meals, clothing, showers, and hygiene items to help meet daily needs. DISCUSSION: 7hills and the Facilities Management Department outlined several items for repair or replacement in the 2026-2030 Capital Improvements Program, including parking lot and driveway repairs in 2026. This funding supports the maintenance of community infrastructure and facilities. On June 17, 2025, the City Council adopted the 2026-2030 Capital Improvements Program, which included $330,000 in funding over five years to repair and maintain the Walker Family Residential Community facility. Planned projects for 2026 include parking lot and driveway repairs. On November 18, 2025, the City Council approved the 2026 annual operating budget, which appropriated $125,370 for the fiscal year to support the operations of the Day Center. This amount is constant from the 2025 budget cycle. As part of citywide review of housing and shelter-related programming, the Mayor’s Office and the Chief Housing Officer worked with 7hills leadership to update and consolidate these two annual funding commitments to support unhoused residents in Fayetteville. Per the contract’s terms, 7hills will provide Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov quarterly financial and written reports to the Chief Housing Officer, and 7hills will deliver a semi-annual update to the City Council. BUDGET/STAFF IMPACT: Funding for the operations of the Day Center was included in the 2026 operational budget, and funding for the Walker Family Residential Community facility was included in the 2026-2030 Capital Improvements Program. While the contract references the development of a Memorandum of Understanding related to extreme weather response, funding for these efforts comes from annual federal funding allocations from the U.S. Department of Housing and Urban Development (HUD). All HUD-related funding allocations are included in the City’s five-year Consolidated Plan and associated Annual Action Plans, which go through annual public comment periods and review and approval by HUD. The 2026-2030 Consolidated Plan is under development and will be made available for public review in early summer 2026. GL Account Project Amount 1010.090.6600-5721.00 40901.4010.1 $125,370.00 4470.140.8900-5400.00 18004.1 $150,000.00 Total $275,370.00 ATTACHMENTS: 3. Staff Review Form, 4. 7hills Contract 2026 - Signed by 7hills Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-1366 A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE A CONTRACT WITH SEVEN HILLS HOMELESS CENTER FOR OPERATIONS AND CAPITAL IMPROVEMENTS IN THE TOTAL AMOUNT OF $275,370.00 WHEREAS, the Board of Directors of Seven Hills has operated a day time facility to serve numerous homeless and needy Fayetteville residents for over 20 years relying upon the support of several local churches, charities and charitable persons, as well as some governmental support (for veterans, etc.); and WHEREAS, the Fayetteville City Council approved a funding request for the 2026 fiscal year to maintain the operations of the Seven Hills day center and, although funding for the center by donors has improved, a shortfall still exists that jeopardizes its ability to continue to offer vital services to Fayetteville’s homeless residents; and WHEREAS, if Seven Hills could no longer operate its Walker Family Residential Community transitional housing facility, currently housed residents might become homeless again and have to live on the streets or in the woods; and WHEREAS, if Seven Hills could no longer operate its day time facility, the large number of homeless residents who depend upon this facility for showers and washing, hot food, a warm place to stay during the day, as well as access to a telephone and other job assistance services could not find such comparable services elsewhere; and WHEREAS, the City Council has approved contracts to provide funding assistance for maintenance of the Walker Family Residential Community facility through citywide budgeting processes since 2017; and WHEREAS, Seven Hills and the Facilities Management Department outlined several items for repair or replacement in the 2026-2030 Capital Improvement Program; and WHEREAS, the facilities and services provided by Seven Hills should continue to be supported by the City in order to prevent our homeless and needy residents from suffering undue hardship and deprivation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes Mayor Rawn to sign a contract with Seven Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 Resolution: 113-26 File Number: 2026-1366 Page 2 Hills Homeless Center for Operations and capital improvements to the Walker Family Residential Community Facility in the total amount of $275,370.00. Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 City of Fayetteville Staff Review Form 2026-1366 Item ID 5/5/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Marlee Stark 4/15/2026 COMMUNITY RESOURCES (642) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommend approval of a resolution to waive the requirements of formal competitive bidding and approve a contract with Seven Hills Homeless Center (“7hills”) in the amounts of $125,370.00 for operations of the 7hills Day Center and $150,000.00 for capital improvements at the Walker Family Residential Community facility. Budget Impact: 1010.090.6600-5721.00 4470.140.8900-5400.00 General Sales Tax Capital Improvements Account Number Fund 40901.4010.1 18004.1 Community Partners Funding - 7Hills 7Hills Walker Family Residential Facility Project Number Project Title Budgeted Item?Yes Total Amended Budget $333,321.00 Expenses (Actual+Encum)$17,951.37 Available Budget $315,369.63 Does item have a direct cost?Yes Item Cost $275,370.00 Is a Budget Amendment attached?No Budget Amendment $- Remaining Budget $39,999.63 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 1 PROFESSIONAL SERVICES CONTRACT This Professional Services Contract (the “Contract”) is made between the City of Fayetteville, Arkansas (hereinafter the “City”) and Seven Hills Homeless Center, an Arkansas nonprofit corporation which filed its corporate documents with the Secretary of State in 2001 (hereinafter “7hills”) on this day _________________________, 2026. Whereas, the Board of Directors of 7hills has operated a daytime facility (“Day Center”) to serve numerous unsheltered or housing insecure Fayetteville residents for over 20 years relying on the support of local churches, charities and charitable people as well as some governmental support; Whereas, the Fayetteville City Council has approved the City’s 2026 budget and the City’s 2026-2030 Capital Improvements Program, which both include funding for 7hills; Whereas, each year since 2017, the City Council has authorized contracts to provide funding assistance for repairs at 7hills’ transitional housing facility (“Walker Family Residential Community”); Whereas, 7hills and Facilities Management have identified planned repairs to help support the Walker Family Residential Community facility, including parking lot and driveway repairs; Whereas, if 7hills could no longer operate Walker Family Residential Community, currently housed residents may become unsheltered again and must live on the streets, in the woods, or in other unstable living situations; Whereas, if 7hills could no longer operate its Day Center, the number of homeless residents who depend on the facility for services would not receive comparable services elsewhere; and Whereas, the facilities and services provided by 7hills are required to be continued and should continue to be supported by the City to prevent our homeless residents from suffering undue hardship and deprivation. NOW, THEREFORE, The City of Fayetteville and the Board of Directors of Seven Hills Homeless Center agree as follows: 1.Contract Amount. The City agrees to pay 7hills the sum of TEN THOUSAND FOUR HUNDRED and FORTY-SEVEN DOLLARS AND FIFTY CENTS ($10,447.50) on the first Wednesday of each month beginning in January 2026. 2.Term . The term of this contract shall be January 1, 2026 to December 31, 2026 unless terminated by the City for failure of 7hills to comply with all provisions and requirements of this contract. May 5 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 2 3. Ongoing Maintenance and Operations. 7hills shall provide all necessary personnel, supplies, utilities, and maintenance of its facilities to serve the City’s homeless residents who are utilizing and will continue to utilize 7hills. 4. Day Center. 7hills shall continue to offer all programs and services that 7hills provided in the previous year at its Day Center. This includes but is not limited to meals, showers, telephone services, and job assistance services. 5. Walker Family Residential Community. 7hills shall provide all necessary personnel, supplies, utilities, and maintenance of the Walker Family Residential Community facility to provide transitional housing that 7hills provided in the previous year at its transitional housing facility. 7hills will work with the Facilities Management Division and the Chief Housing Officer to utilize City funds set aside for facilities maintenance in the amount of $150,000.00 for capital improvements, including driveway and parking lot repairs, at the Walker Family Residential Community. Improvements utilizing these funds shall be pre-authorized and approved in writing by Facilities Management and the Chief Housing Officer before the commencement of work. 7hills shall comply with City’s purchasing policies for all approved expenditures. The City may disperse funds prior to commencement of a repair or maintenance project with a valid contract or purchase order or may reimburse 7hills for completed repair or maintenance work only for projects that were approved in writing prior to the commencement of the work. 6. Extreme Weather Response. 7hills shall continue to operate and/or manage extreme weather sheltering services in coordination with other service providers, the logistical details of which will be outlined in a Memorandum of Understanding agreed upon by both parties. To the extent reimbursement funding is available from the City, 7hills shall obtain approval from the City’s Chief Housing Officer in advance to access those funds. 7. Financials. 7hills shall continue to make diligent efforts to stabilize its long-term funding, and 7hills shall provide quarterly financial reports to the Chief Housing Officer. These reports shall be delivered on or before April 15, July 15, October 15, and January 15. 8. Reporting. 7hills shall provide quarterly written reports to the Chief Housing Officer no later than the 15 days after the last month of each quarter that provide qualitative and quantitative analysis of 7hills’ services at its Day Center and Walker Family Residential Community. 7hills shall coordinate with the Chief Housing Officer to determine appropriate reporting metrics. 7hills shall also appear twice yearly, in May and November, before the Fayetteville City Council and provide a detailed report of its activities across all aspects of this contract in coordination with the Chief Housing Officer. Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370 05/05/2026 Docusign Envelope ID: 53AFC179-D95E-8C7C-816A-763379733370