REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: DYLAN MCCULLY, Senior Management Analyst, Homeless Services Division SUBJECT ..Title Actions pertaining to homeless services provided by Poverello House under the Homeless Housing, Assistance and Prevention (HHAP) Program and the Encampment Resolution Funding Round 2 (ERF-2R) Program: 1. Approve an agreement with Poverello House through June 30, 2025 to provide Encampment Resolution Fund homeless services in the total amount of $9,780,325.71. 2. Approve the first amendment to the agreement with Poverello House for Clarion Triage Center Emergency Shelter services reducing funding by $1,039,909.29 for a total amount of $1,760,088.19. ..Body RECOMMENDATION Staff recommends the City Council approve the agreement with Poverello House (Poverello) for ERF-2R homeless services for a total amount of $9,780,325.71, and the first amendment to the agreement with Poverello for Clarion Triage Center Emergency Shelter services reducing Homeless Housing Assistance and Prevention (HHAP) funding by $1,039,909.29 for an award amount of $1,760,088.19 and authorize the City Manager to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) is seeking to award funding for services through the ERF-2R program through June 30, 2025, including 65 emergency shelter beds at Clarion Point, 65 emergency shelter beds at Village of Hope, 25 bridge housing beds, street outreach and navigation services, and housing stability case management. The total amount of this proposed homeless services agreement is $9,780,325.71. Staff issued a Request for Qualifications (RFQ) to develop and/or operate homeless shelters on February 15, 2023; based on the evaluation completed by the review panel, Poverello was determined to be qualified to operate and coordinate emergency shelter services. With receipt of the ERF-2R award, current services at the Clarion will be expanded to include the encampment resolution services and ERF-2R funds will support ongoing Village of Hope emergency shelter services beginning in 2024. Poverello is the current provider of ERF Round 1 services, including street outreach and emergency shelter serving the downtown encampment area and is qualified to provide ERF-2R services. The City has an existing agreement with Poverello to provide homeless services at Clarion Pointe at 4061 N. Blackstone Ave, funded through HHAP. City staff and Poverello have concurred that HHAP funding under the current agreement would only be utilized to support ERF-2R startup costs through August 7th, and that the majority of homeless services at Clarion Pointe would be supported with ERF-2R funds thereafter. Approval of the ERF-2R agreement will enable this to occur, reducing the total HHAP contract funding by $1,039,909.29, which will exclusively support 30 Bridge Housing beds for homeless residents across the city. BACKGROUND On February 15, 2023, the Planning and Development Department, Homeless Services Division, released a RFQ for Community-Based Organizations and Developers to submit a Statement of Qualifications to develop and/or operate homeless shelters, and received three statements of qualifications to a operate homeless shelter, all were determined to be qualified and responsive to the RFQ. Poverello is among those determined to be qualified and responsive. On February 23, 2023, City Council adopted Resolution No. 2023-039 authorizing the department to submit a grant application to Cal ICH for funding under the ERF-2R program for services that resolve the experience of unsheltered homelessness for people residing in encampments and transition individuals into interim shelter with clear pathways to permanent housing. On April 20, 2023, City Council approved a Purchase and Sale Agreement to acquire the Clarion Pointe, a 115-unit motel, located at 4061 N Blackstone Ave, near the intersection of Ashlan Avenue and Blackstone Ave for a total of $11,800,000. On May 11, 2023, City Council approved an agreement with Poverello to operate Clarion Pointe as a 115-bed emergency shelter site for $2,799,997.48, supported with HHAP funds. At the time this agreement was brought to City Council, Planning and Development department staff informed City Council that the department was awaiting an award announcement from the State of California regarding the City of Fresno's application for ERF-2R grant. If awarded, these funds would supplement HHAP funds and staff would return to City Council in the future to incorporate the award into the funding sources of Clarion Pointe. On June 14, 2023, the City was awarded $17,000,000 from the Encampment Resolution Funding Round 2 program to resolve the existing state encampment area in downtown Fresno where unsheltered residents from across the city were continuing to relocate. These funds will be used to support interim shelter operations at Village of Hope, interim shelter and bridge housing services at Clarion Pointe, the development of a 26-unit tiny home village, in addition to expanded outreach, housing navigation, and mental health services to unsheltered residents in the encampment area. The recommended ERF-2R services agreement with Poverello will provide $6,479,176.95 to support bridge housing and triage emergency shelter services at the Clarion, $1,850,668.76 to support triage emergency shelter services at Village of Hope, and $1,450,480 for street outreach and navigation services in the downtown encampment area. ENVIRONMENTAL FINDINGS This item is not a project as defined by Section 15378 of the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable because of the use of state funds. FISCAL IMPACT The agreements will be funded through the City's ERF-2R and HHAP funds from the State. Attachments: Agreement with Poverello House - ERF-2R First Amendment to the Agreement with Poverello House - HHAP Clarion Pointe Agreement with Poverello House - HHAP Clarion Pointe