REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: ERIKA LOPEZ, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title Actions pertaining to supplemental Emergency Solutions Grant funding provided by the U.S. Department of Housing and Community Development Office of Community Planning and Development (HUD CPD) to prevent, prepare for, and respond to the Coronavirus: 1. Approve a First Amendment to the Emergency Solutions Grant-Coronavirus (ESG-CV) agreement between the City of Fresno and Poverello House to extend the term of the agreement through September 30, 2023 and increase the funding by $304,180 for a total award of $671,605 for Street Outreach within the City of Fresno. 2. Approve the sixth revision of the Emergency Solutions Grant-Coronavirus (ESG-CV) Activity Allocations to allocate $777,284.21 of ESG-CV funds to activities for Street Outreach and Emergency Shelter operations. ..Body RECOMMENDATION Staff recommends the City Council approve an amendment to the agreement between the City of Fresno and Poverello House to continue funding the Poverello House HOPE Team street outreach to unsheltered individuals impacted by COVID-19; approve the sixth revision of the ESG-CV Activity Allocations related to mobile showers; and authorize the City Manager or designee to sign all necessary implementing agreements as approved to form by the City Attorney. EXECUTIVE SUMMARY The City Council previously approved allocations for ESG-CV funds for various eligible activities which were not fully expended during the contract terms. In order to meet the ESG-CV 100% expenditure deadline of September 30, 2023, staff recommends reallocating those funds to continue providing community the services of Poverello's HOPE Team by amending the ESG-CV agreement to extend the term through September 30, 2023 and increasing the funding by $304,180, as well as utilizing $220,000 to fund mobile shower operations, and increasing funding for emergency shelters by $253,266.21. BACKGROUND On June 18, 2020, City Council approved a resolution requesting ESG-CV funding from the Department of Housing and Urban Development (HUD) for the prevention, preparation for, and response to coronavirus, among individuals and families who are homeless or receiving homeless assistance, and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts created by coronavirus. In total, the City received two installments of ESG-CV funding amounting to $10,948,953.00. On June 18, 2020, February 18, 2021, and June 24, 2021 City Council approved allocations of ESG-CV funds for Fresno County, a deposit assistance program, a vaccine clinic, and Outreach Services. Since those dates, various providers have returned unexpended funds to the City in the amount of $777,284.21 that must be reprogrammed and fully expended in order to meet the ESG-CV 100% expenditure deadline of September 30, 2023. Staff recommends using $304,018 to extend the agreement with Poverello for Street Outreach, $220,000 to fund mobile showers, and $253,266.21 to increase funding for emergency shelter. Poverello HOPE Team Street Outreach On June 24, 2021, the City entered into an agreement with Poverello to provide Street Outreach services to unsheltered individuals impacted by COVID-19. This agreement expanded the services of Poverello's existing HOPE Team by increasing its capacity through four additional outreach staff, extending the hours of Street Outreach provided each day, and adding services on weekends. The HOPE Team was instrumental in assisting the City with Project Off Ramp in which 604 individuals living in encampments were relocated into City emergency shelters. The HOPE Team has continued to engage unsheltered individuals offering shelter, transportation, and connections to navigation services as an integrated part of the City's efforts to eliminate homelessness in Fresno. During site visits the HOPE Team works alongside the City's HART team to engage unsheltered individuals and connect them with shelter and navigation services. The HOPE Team also responds to homeless related situations reported through the City's 3-1-1 system. During the original period of the agreement (July 01, 2021- June 30, 2022) the HOPE Team engaged more than 964 unsheltered individuals connecting them to navigation services and shelter. In order to continue these vital services, the City must amend the agreement to extend the term through September 30, 2023 and increase the funding by $304,180. Mobile Showers Staff recommends using a portion of the ESG-CV dollars available to fund the operations of mobile showers which help prevent the spread of COVID-19 amongst people living in unsheltered situations. Staff is in the process of drafting a Request for Proposal for the operations of mobile showers and will return to Council at a later date with an agreement following the scoring and selection process. Today's action allocates $220,000 to the mobile shower activity but not an operator. Emergency Shelter Operations Staff recommends using the balance of ESG-CV dollars for an amendment to the operations agreement for Travel Inn. The Amendment increases the funding available for emergency shelter operations to add two case managers improving the ratio of case managers to tenants. Staff will return to Council at a future date to request approval of an amendment to the operations agreement for Travel Inn. Today's action allocates $253,266.21 to emergency shelter operations but not an operator. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are Categorically Excluded Not Subject to Section 58.5 Pursuant to 24 CFR Part 58.34(a) and 58.35(b) under HUD NEPA Requirements (24 CFR 58.35 (b) (2) (3)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT The agreement will be funded through the City's ESG-CV allocations. ATTACHMENTS: Amendment to Agreement with Poverello House ESG-CV Activities