Non-compete offer to operate homeless shelter comes under fire

BY PRU SOWERS

KONK LIFE STAFF WRITER

Although preliminary contract discussions have already begun between the city and a local non-profit organization offering to build and operate a new homeless shelter on Stock Island, a surprising statement by Commissioner Billy Wardlow may put that deal in jeopardy.

The commission voted 3-2 on Oct. 18 to begin contract talks with the Southernmost Homeless Assistance League (SHAL) on a proposed 10-year, non-compete contract to manage the Keys Overnight Temporary Shelter (KOTS). SHAL, which currently manages KOTS, has offered to pay the estimated $1.2 million cost to build a new homeless shelter on College Road in return for a 10-year contract to operate the facility. Under SHAL’s initial proposal, the city would pay the non-profit organization $54,000 a month to cover SHAL’s operating costs. Currently, Key West pays $44,000 a month for shelter operations.

Commissioner Billy Wardlow was absent from the Oct. 18 meeting and did not participate in the vote to start contract talks with SHAL. But that was one of the first things he brought up at the Nov. 1 commission meeting. Pointing out that Commissioners Sam Kaufman and Jimmy Weekley have worked with another homeless assistance organization in Monroe County – the Florida Keys Outreach Coalition – and former Commissioner Teri Johnston is currently on the SHAL board of directors, Wardlow said he was concerned about a perceived conflict of interest on the commission.

“That’s a lot of money to go to one organization without going out on bids,” Wardlow said. “Just put it [KOTS contract] out there and try and see what happens just like we do for any other contract.”

If Wardlow’s concerns continue, he could form a voting block with Kaufman and Commissioner Margaret Romero, who both voted against moving ahead with the SHAL negotiations. Because a proposed SHAL contract would involve a lease agreement for less than market value, it would require a “supermajority” vote by commissioners, meaning it would have to pass by a 5-2 margin. If Wardlow, Kaufman and Romero continue to object to a contract, it would at best be a 4-3 vote.

“I don’t think it’s just good for transparency,” Kaufman said about opening up the KOTS bidding process to other companies, “I think it’s good for the community that we have the best available organization that can run homeless services for us. It may be SHAL. SHAL may be the only responding organization.”

But Mayor Cates said city staff should proceed with the SHAL negotiations and that any proposed contract would still have to come before the commission for a final vote.

“When it [proposed contract] comes back, that would be the standard that somebody would have to beat,” he said, adding, “[SHAL] is an organization that has been running [KOTS] very successfully and done a great job for the last three or four years. I think they know Key West better than any other group that comes from out of town and tells us how to run a shelter in Key West.”

“We’re supposed to be transparent,” Wardlow said. “I just feel we ought to open this thing up and let other people bid.”

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