REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the Mayor and City Manager BY: COURTNEY ESPINOZA, Business Manager Office of the Mayor and City Manager SUBJECT ..Title Approve the First Amendment to the property management agreement with Turning Point of Central California, Inc., for The Valley Inn, a 107-room motel located at 933 N. Parkway Drive (APN 449-335-32), to provide temporary shelter and prevent COVID-19 among individuals experiencing homelessness in the City of Fresno to extend the term of the agreement for one year until June 24, 2023, and add additional insurance requirements to the agreement as Exhibit E ..Body RECOMMENDATION Staff recommends City Council approve an amendment to the agreement with Turning Point of Central California, Inc., (Turning Point) for the management of The Valley Inn, extending the contract for one year and replacing original insurance requirements with required insurance similar to existing management contracts for other temporary shelter properties. EXECUTIVE SUMMARY Extending the contract will allow the City of Fresno to continue to pay Turning Point the full amount of the original management contract. The Valley Inn is a 107-room motel that has been converted to provide temporary shelter and help prevent the spread of COVID- 19 among individuals experiencing homelessness in the City. This contract is for the management of the property and provision of case-management services by Turning Point. Current funding from the original contract will continue to pay for services through approximately November 2022. The First Amendment to the property management agreement does not change the original contract amount. Funding for operations beyond November 2022 is planned through entitlement or grant award dollars such as Homeless Housing, Assistance, and Prevention (HHAP), Project Homekey (round 2) and/or other sources eligible to fund shelter operations. BACKGROUND Previously the City, Fresno County, and the Fresno-Madera Continuum of Care aligned their resources to execute the COVID-19 Homeless Response for the prevention and containment of COVID-19 among individuals experiencing homelessness throughout Fresno County. The City of Fresno and Housing Authority of the City of Fresno (Fresno Housing) have partnered to purchase 6 motels and The Valley Inn was one of those first properties acquired through the partnership. The Valley Inn is located along the Parkway Drive Corridor. This area of Fresno is a densely populated strip of motels visible along Highway 99, with a history of being the epicenter for families and individuals living in poverty. The subculture of human trafficking, gangs, and drugs draw adults and their children into a self-perpetuating cycle, creating adverse childhood experiences of abuse, neglect, and trauma. During COVID-19, it was crucial that individuals and families are provided with improved quality living conditions. On June 10, 2021, City Council approved the property management agreement with Turning Point for operations and case-management services provided at Valley Inn. The original agreement term expires in June 2022, In order to continue the services and fully expend the original agreement amount; an amendment to the property management agreement is required. Additionally, the original insurance requirements should be replaced with new requirements to ensure consistency among existing management contracts for other temporary emergency shelters. The First Amendment to the property management agreement would extend the term of the agreement to June 24, 2023 and add Exhibit E; no other changes would be made to the original agreement amount. City Attorney has reviewed and approved as to form. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable because this is an amendment to an existing agreement. FISCAL IMPACT There is no long-term impact on the City's General Fund as a result of this action because the original contract has sufficient funding left to provide operation through November 2022. Once original funding is expended, continued operations are planned to be provided through entitlement or grant award dollars such as Homeless Housing, Assistance, and Prevention (HHAP), Project Homekey (round 2), and/or other sources eligible to fund shelter operations. Attachment: First Amendment - Turning Point Management Agreement