Approve the Second Amendment to the Service Agreement with Poverello House to extend the term for Mobile Shower and Restroom Operations from September 30, 2026, through June 30, 2027, in the total amount of $243,000 funded with Homeless Housing, Assistance, and Prevention (HHAP) and Encampment Resolution Fund (ERF) funds.

REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: ISSIAHS GARCIA, Management Analyst Homeless Services Division SUBJECT ..Title Approve the Second Amendment to the Service Agreement with Poverello House to extend the term for Mobile Shower and Restroom Operations from September 30, 2026, through June 30, 2027, in the total amount of $243,000 funded with Homeless Housing, Assistance, and Prevention (HHAP) and Encampment Resolution Fund (ERF) funds. ..Body RECOMMENDATION Staff recommends that the City Council approve the Second Amendment to the Service Agreement with Poverello House (Poverello) to extend the term for Mobile Shower and Restroom Operations from September 30, 2026, through June 30, 2027, for a total compensation amount of $243,000 funded with HHAP and ERF funds. EXECUTIVE SUMMARY The City of Fresno (City) currently has an agreement with Poverello for the operation of Mobile Shower and Restroom services, effective from September 30, 2025 through September 29, 2026. The proposed Second Amendment extends the term for Mobile Shower and Restroom Operations from September 30, 2026, through June 30, 2027, for a total compensation amount of $243,000 to be funded with HHAP and ERF funds. BACKGROUND In February 2020, The City was awarded HHAP funding in the amount of $6,158,246.18 from the California Homeless Coordinating and Financing Council to address homelessness. In September 2021 the City received $2,911,171 in a second round of HHAP allocations. In January 2023, the City received a total of $7,524,257.15 in a third round of HHAP allocations. In July 2023 the City received $11,265,425.10 in a fourth round of HHAP allocation and in October 2024 the City received notification of a $13,096,671.82 allocation in a fifth round of HHAP. Health and Safety Code Section 50220.5(d) allows program recipients to use their allocation for outreach services, as well as for services coordination for homeless populations. To utilize HHAP funding to support outreach and diversion services, a NOFA for Mobile Shower Operations was released on July 4, 2025, with two qualified proposals received. A separate review panel including staff from the City’s Housing and Community Development Department, HART, a representative of the Fresno Economic Opportunities Commission, and a member of the Lived Experience Advisory Board (LEAB) determined that Poverello’s proposal met all criteria, with a recommended award of $324,000.00 for Mobile Shower and Restroom Trailer operations. On September 11, 2025, City Council approved a Service Agreement with Poverello to operate Mobile Shower and Restroom trailers within the City of Fresno. On October 30, 2025 City Council approved the First Amendment to the Service Agreement that incorporates this required language, thereby authorizing Poverello to operate the Mobile Showers one day each week at the Fresno Fairgrounds, a County-controlled site. The proposed Second Amendment to the Service Agreement extends the term for Mobile Shower and Restroom Operations from September 30, 2026, through June 30, 2027, utilizing HHAP and ERF funds. ENVIRONMENTAL FINDINGS On September 11, 2025 City Council adopted a finding of Categorical Exemption as set forth in CEQA Guidelines, Section 15301 for Existing Facilities, which exempts projects involving a negligible or no expansion of any existing facility. This exemption applies because this Project involves the operation of an existing structure and does not involve any expansion of use or physical modification. Services will continue as previously established, consistent with existing or former use. Staff determined under the CEQA Guidelines this project fits within the definition of existing facilities in Section 15301/Class 1 as Categorically Exempt from further CEQA review. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference is not applicable due to the use of State Funds. FISCAL IMPACT The General Fund will not be impacted as this amendment will be funded through HHAP and ERF funds. Attachments: Poverello House Second Amendment - Mobile Shower Operations Poverello House First Amendment - Mobile Shower Operations Poverello House Mobile Shower Operations Agreement Categorical Exemption Mobile Showers