Title
Dept/ Agency: Law
Action: (X) Ratifying (X) Authorizing ( ) Amending
Purpose: Pre-Litigation Settlement
Claimant: Office of Homelessness Service Providers
Claimant's Attorney: Not Applicable
Settlement Amount: $2,279,574.09
Funding Source: 2025 Unclassified Budget Fund NW011 Department 200 Division 2001 Account 97550 Ref: B2026; 2025 DCA Budget Fund NW 051 Department G25 Division M25T0 Account 71280 Ref: B2025; 2024 DCA Budget Fund NW 051 Department G25 Division M2420 Account 71280 Ref: B2024; 2025 DCA NW 051 Department G25 Division H250S Account 71280 Ref: B2025
Additional Information:
body
WHEREAS, on or about February 1, 2026, New Jersey Department of Community Affairs DCA, Office of Homelessness Prevention provided financial and procurement assistance to contract with all of the Homeless Shelters throughout Greater Newark area for the period of February 1, 2026 through March 31, 2026; and
WHEREAS, the City of Newark on or about January 2026, went out to bid for shelter services with a return date of February 10, 2026; and
WHEREAS, New Jersey and other states have suffered one of the worst winters with long ongoing Code Blue, which has impacted shelters ability to respond with necessary paperwork for contracting; and
WHEREAS, an Emergency Declaration E2026-07-Temporary Housing Services was declared on May 5, 2026, covering the months of December 2025 and January of 2026 (“Emergency Declaration Period”), and;
WHEREAS, fiscal and budgetary constraints also impeded the contractual process pursuant to the bid; and
WHEREAS, Office of Homelessness Services is actively processing resolutions and contracts to be presented, for homeless shelters, to the Newark Municipal Council for approval, for the period of April 1, 2026 through March 31, 2027; and
WHEREAS, the various vendors continued to provide homelessness outreach services after the Emergency Declaration period, from February 2025 through May 31, 2025, and shelter operations and outreach services from February 1, 2026 through March 31, 2026, to the homeless population to avoid the eminent harm that interruption of services would pose; and
WHEREAS, as such the following various vendors have the following
outstanding invoices:
City of Newark - Office of Homeless Services Monthly Billing and Expense
City of Newark - Office of Homeless Services Monthly Billing and Expense Report
Feb-May 2025 Feb-26 Mar-26 Grand Total
The Apostle House $60,006.00 $65,408.00 $125,414.00
Catholic Charities-St. Rocco's $14,734.00 $10,600.00 $25,334.00
Circle of Life $32,923.00 $38,471.00 $71,394.00
Fairmont Health Services Inc $29,280.00 $40,748.00 $70,028.00
Isaiah House $21,840.00 $20,800.00 $42,640.00
Real House $15,841.00 $20,513.00 $36,354.00
United Community Corporation $23,736.00 $14,706.00 $38,442.00
YMCA of Newark $22,949.00 $22,631.00 $45,580.00
Newly Destined, Inc. $19,604.00 $21,576.00 $41,180.00
689 South 16th Street $408,102.20 $463,908.05 $872,010.25
Catholic Charities-
The Riviera Hotel $156,680.84 $124,658.63 $281,339.47
Catholic Charities-Miller Street $286,428.40 $210,007.41 $496,435.81
Bridge's Outreach $56,065.70 $61,317.70 $117,383.40
Bridge's Outreach $16,039.16 $16,039.16
Total $16,039.16 $1,148,409.14 $1,115,892.29 $2,279,574.09
WHEREAS, to avoid the costly expense of litigation, the City of Newark’s Corporation Counsel, on behalf of the City, desires to amicably resolve these matters with payment by the City in the total amount of Two Million Two Hundred Seventy-Nine Thousand Five Hundred Seventy-Four Dollars and Nine Cents ($2,279,574.09) (“Settlement Sum”), as itemized herein by vendor, in exchange for the various vendor’s execution of the Settlement Agreement and Release, in the form attached hereto, as full and complete release of these matters; and
WHEREAS, a settlement proposal has been made to resolve this claim by payment in the total amount of Two Million Two Hundred Seventy-Nine Thousand Five Hundred Seventy-Four Dollars and Nine Cents ($2,279,574.09) “Settlement Sum”, and execution of a Settlement Agreement and Release; and
WHEREAS, the City of Newark’s Corporation Counsel, based upon all facts and circumstances surrounding the matter, deems it in the best interest of the City of Newark to resolve this matter by payment in the amount set forth above.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF
THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Corporation Counsel is hereby authorized on behalf of the City of Newark (“City”) to accept the terms of the Settlement Agreement and Release, attached hereto.
2. Upon receipt by the Corporation Counsel of all documents deemed necessary, the Director of the Department of Finance is hereby authorized and directed to issue payment in the amount of Two Million Two Hundred Seventy-Nine Thousand Five Hundred Seventy-Four Dollars and Nine Cents ($2,279,574.09), which payment shall be made payable as follows:
Feb-May 2025 Feb-26 Mar-26 Grand Total
The Apostle House $60,006.00 $65,408.00 $125,414.00
Catholic Charities-St. Rocco's $14,734.00 $10,600.00 $25,334.00
Circle of Life $32,923.00 $38,471.00 $71,394.00
Fairmont Health Services Inc $29,280.00 $40,748.00 $70,028.00
Isaiah House $21,840.00 $20,800.00 $42,640.00
Real House $15,841.00 $20,513.00 $36,354.00
United Community Corporation $23,736.00 $14,706.00 $38,442.00
YMCA of Newark $22,949.00 $22,631.00 $45,580.00
Newly Destined, Inc. $19,604.00 $21,576.00 $41,180.00
689 South 16th Street $408,102.20 $463,908.05 $872,010.25
Catholic Charities-
The Riviera Hotel $156,680.84 $124,658.63 $281,339.47
Catholic Charities-Miller Street $286,428.40 $210,007.41 $496,435.81
Bridge's Outreach $56,065.70 $61,317.70 $117,383.40
Bridge's Outreach $16,039.16 $16,039.16
Total $16,039.16 $1,148,409.14 $1,115,892.29 $2,279,574.09
3. Annexed hereto are the Certification of Funds issued by the Director of the Department of Finance, which states that there are available sufficient legally appropriate funds from the following: 2025 Unclassified Budget Fund NW011 Department 200 Division 2001 Account 97550 Ref: B2026; 2025 DCA Budget Fund NW 051 Department G25 Division M25T0 Account 71280 Ref: B2025; 2024 DCA Budget Fund NW 051 Department G25 Division M2420 Account 71280 Ref: B2024; 2025 DCA NW 051 Department G25 Division H250S Account 71280 Ref: B2025
4. A copy of the Comptroller’s Certification shall be filed in the Office of the City Clerk along with this Resolution by the Corporation Counsel.
5. The City of Newark’s Corporation Counsel shall file a fully executed copy of the Settlement Agreements and Release in the Office of the City Clerk.
6. This Resolution shall be effective upon adoption in accordance with applicable State Law.
7. The Settlement Agreements and Release and Resolution does not admit, nor should it be construed as an admission of liability or violation of any law, statute or regulation or a breach of any duty by the City of Newark, its agents, officers and/or employees whatsoever and is entered into based upon recommendations of the Corporation Counsel and to eliminate all risks and future litigations costs.
STATEMENT
This Resolution authorizes the Corporation Counsel on behalf of the City of Newark to enter into a Settlement Agreement and Release to settle outstanding fees in the total sum of Two Million Two Hundred Seventy-Nine Thousand Five Hundred Seventy-Four Dollars and Nine Cents ($2,279,574.09), in exchange for dismissal of any and all claims against the City of Newark, its agents, officers and/or employees, and a complete release.