REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: MELISSA FRANCO, Sr Management Analyst Planning and Development Department SUBJECT ..Title Approve First Amendment to the Service Agreement with Poverello House for professional emergency shelter, bridge housing, street outreach, and navigation services for individuals experiencing homelessness in two State encampment areas extending the contract term to July 30, 2025, and increasing funding by $2,001,280.00 in Encampment Resolution Funding-Round 3 (ERF-3R) grant for a total program award of $11,781,605.71. ..Body RECOMMENDATION Staff recommends City Council approve the first amendment to the service agreement with Poverello House (Poverello) for professional emergency shelter, bridge housing, street outreach, and navigation services for individuals experiencing homelessness in two State encampment areas using $2,001,280.00 in Encampment Resolution Funding-Round 3 (ERF-3R) funds, extend the contract term to July 30, 2025, and authorize the City Manager, or designee, to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) has an existing agreement with Poverello for professional emergency shelter, bridge housing, street outreach, and navigation services for individuals experiencing homelessness in the Downtown State encampment area using Encampment Resolution Funding-Round 2 (ERF-2R) funds. The City is seeking to award funding for services through the ERF-3R program, to include an increase the total number of emergency shelter beds, expand street outreach services, and extend the contract term through July 30, 2025. BACKGROUND On October 29, 2021 The California Interagency Council on Homelessness published a Notice of Funding Availability for the ERF-1 Program. The ERF-1 Program is designed to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments, including their immediate physical and mental wellness and safety needs arising from unsheltered homelessness and their long-term needs addressed through a path to safe and stable housing throughout the state. On December 9, 2021, Council approved the City's application for funds through the ERF-1 program. Subsequently, City staff submitted the application and on March 1, 2022, was notified by Cal-ICH that it had been awarded an ERF Grant in the amount of $5,070,057.68. On April 28, 2022, Council approved an agreement with Poverello to assist 100 individuals with transitioning out of street homelessness into 50 Triage emergency shelter beds at Village of Hope, and up to 26 individuals into permanent affordable housing provided under the ERF program as part of the Project Downtown Hope. On February 23, 2023, City Council adopted Resolution No. 2023-039 authorizing the department to submit a grant application to California Interagency Council on Homelessness (Cal ICH) for funding under the ERF-2R program for services that resolve the experience of unsheltered homelessness for people residing in Project Downtown Hope and transition individuals into interim shelter with clear pathways to permanent housing. On June 14, 2023, the city was awarded ERF-2R funding the amount of $17,000,000. On September 28, 2023, the City entered into an agreement with Poverello House to operate 90-interm shelter beds at Clarion Point, 65-emergency shelter beds at the Village of Hope, perform street outreach and navigation services, and provide housing stability case management in the amount of $9,780,325.71 using ERF-2R funds through June 30, 2025. On January 18, 2024, City Council adopted Resolution No. 2024-007 authorizing the department to submit a grant application to Cal ICH for funding under the ERF-3R program. On April 19, 2024, the City received an ERF-3R Notice of Award in the amount of $10,926,075.78. The recommended amendment will utilize an additional $2,001,280.00 in ERF-3R funds to add 30 emergency shelter beds at Clarion Pointe and expand street outreach services from the downtown encampment area to include the Blackstone Corridor between Barstow Avenue and Shields Avenue through July 30, 2025. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable because of the use of State funds. FISCAL IMPACT The agreement will be funded through the City's Encampment Resolution Funding Round 3 (ERF-3R). Attachment: First Amendment to the ERF Agreement with Poverello Original Agreement