REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: JILLIAN GAYTAN, Senior Management Analyst, Housing and Community Development Division SUBJECT ..Title Approve the third Amendment to the Agreement with Turning Point of Central California, Inc., for triage center services at the Journey Home Triage Center. ..Body RECOMMENDATION Staff recommends the City Council approve the amendment to the homeless services agreements with Turning Point of Central California (Turning Point) reducing the use of HHAP funds; and authorize the City Manager to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) has existing agreements with Turning Point or the Fresno Housing Authority to provide homeless services at Journey Home Triage Center (formerly Welcome Inn) funded through Emergency Solutions Grant - CARES Act (ESG-CV), Community Development Block Grant - CARES Act (CDBG-CV) and Homeless Housing, Assistance, and Prevention (HHAP) funds. City staff met with members of Fresno Housing Authority and Turning Point to discuss the operating budget of Journey Home Triage Center and the funding sources available. It was agreed upon by all parties that ESG-CV and CDBG-CV funding under current agreements between the City and Fresno Housing Authority would be utilized as planned and a reduction of $500,000 would be made to the existing HHAP agreement with Turning Point. BACKGROUND On February 18, 2021, City Council approved ESG-CV and CDBG-CV allocations that included funding for the operations of Fresno Housing Authority's Journey Home Triage Center (formerly Welcome Inn). The City entered into agreements with Fresno Housing Authority to provide ESG-CV and CDBG-CV funding for shelter operations at Journey Home Triage Center from January 1, 2021, through December 31, 2023. Fresno Housing Authority subcontracted with Turning Point to provide the homeless services at the shelter. In June 2021, the City entered into an agreement with Turning Point to provide an additional $500,000 of HHAP funds for operation costs at the Journey Home Triage Center through December 31, 2022. In April 2022, Council approved an amendment to the agreement to increase the HHAP allocation by $224,448 for 24-hour security services from February 1, 2022, through December 31, 2022, for a total award amount of $724,448. On August 12, 2022, City staff, the Fresno Housing Authority, and Turning Point determined the CDBG-CV funds appropriated in February 2021 were sufficient to cover the remaining cost of operations. Therefore, all parties agreed to reduce the HHAP allocation by $500,000 to allow those dollars to become available for other shelter operations. Approving the third amendment to the agreement will reduce the HHAP funding with Turning Point for homeless emergency shelter services at Journey Home Triage Center from $724,448 to $224,448 for operations costs. The City will continue funding the operations of Journey Home Triage Center through its CDBG-CV agreement with Fresno Housing Authority through December 31, 2023. 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 amendment would make available $500,000 of HHAP funding for other shelter operations. Attachment: 1. Third Amendment to the Agreement with Turning Point of Central California - Journey Home