The Municipality of Chatham-Kent is entering into an agreement for shelter spaces at the Travelodge.
Council voted in favour of a staff recommendation at the Monday, April 26, 2021, virtual meeting to enter into a 12-month sole source agreement with Sunray Group for 32 rooms at the Chatham hotel.
The agreement is planned to run from June 1, 2021 to May 31, 2022, with the potential of an extension for up to 12 additional months, a staff report indicates.
“The move to Travelodge was made during the state of emergency as a short-term solution and thus the procurement process was not in place,” said Polly Smith, director of employment and social services, in a staff report.
“The division now wishes to enter into a longer term, and lower cost, agreement with the Sunray group with Council’s approval until another plan is secured.”
Smith said staff has learned many lessons over the past several years related to homelessness.
“But 2020 proved to expedite these learnings by revealing the breadth and depth of the issues that the community and other communities across the province are facing,” Smith said in her report.
“Chatham-Kent, like many other smaller rural communities in Ontario, has seen the numbers of people experiencing homelessness increase significantly during the pandemic. For several months, employment and social services staff have been monitoring the homelessness crisis and seeking more sustainable, cost effective, emergency housing options as noted in the report to Council presented on February 1.”
Smith added: “Early estimates show that owning a building versus renting the current average number of rooms could save 80-90% in space-related operational costs, but would require capital investment. Until a longer-term solution is in place; renting these rooms, operating a shelter out of another location like John D. Bradley Convention Centre, or turning up to 60 people out into the streets are the only options.”
Smith said the Municipality will continue to rent a small number of rooms from other hotels and motels periodically and moving to another community in Chatham-Kent “is not a practical solution” at this time.
“The majority of services that stayers require are located within Chatham,” Smith said.
“Having multiple locations would require additional staffing and travel which is not cost effective. The Sunray group is willing to enter into a lower priced agreement at $79 per night per room for 32 rooms if a 12 month contract is signed. Employment and social services is currently paying $99 per night per room for 31 rooms.”
The approval will result in a savings of approximately $187,000 over 12 months, Smith said in her report.
Rental costs are 100% provincially funded, and this savings will essentially pay for more than two additional months’ rent for the 32 rooms, Smith added.
The full staff report can be read, here.
