REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development BY: JILLIAN GAYTAN, Sr Management Analyst Homeless Services Division SUBJECT ..Title Approve a First Amendment to the Service Agreement with Housing Authority of the City of Fresno for operation of Journey Home emergency shelter extending the contract term to June 30, 2025, and increasing funding by $2,030,822.77 in Homeless Housing, Assistance, and Prevention funds (HHAP) for a total award of $4,230,897.77. ..Body RECOMMENDATION Staff recommends the City Council approve the first amendment to the agreement with Housing Authority of the City of Fresno (Fresno Housing Authority) to operate Journey Home Triage Center using HHAP funds; and authorize the City Manager to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) has an existing agreement with the Housing Authority to operate and provide homeless services at Journey Home Triage Center (formerly Welcome Inn) funded with Homeless Housing, Assistance, and Prevention (HHAP) funds. To ensure continued shelter services are provided under this agreement, staff recommends amending the agreement and utilizing an additional $2,030,822.77 of HHAP funds to extend the contract through June 30, 2025. 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 ESG-CV and CDBG-CV agreements with Fresno Housing Authority to provide funding for shelter operations at Journey Home Triage Center from January 01, 2021, through December 31, 2023. In January 2023, City Staff met with members from Fresno Housing Authority to discuss the operating budget and funding sources available for Journey Home. It was determined due to escalated spending of CDBG-CV additional funding was needed to continue operations without disruption through December 31, 2023. On May 11, 2023, City Council approved a HHAP agreement with Fresno Housing Authority for shelter operations at Journey Home Triage Center (formerly Welcome Inn) from May 11, 2023, through June 30, 2024, for a total of $2,200,075 HHAP funds. 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 received $2,911,171 in a second round of HHAP allocations, in January 2023 received $7,524,257.15 in a third round of HHAP allocations, and on July 21, 2023 received an initial disbursement of $5,632,712.55 in a fourth round of HHAP allocations. Health and Safety Code Section 50220.5 (d) allows program recipients to use its allocation for operating subsidies in new and existing emergency shelters and services coordination for homeless populations. Approving the first amendment will extend the existing agreement with Fresno Housing Authority for homeless emergency shelter services at Journey Home through June 30, 2025. If approved, the first amendment would increase funding for the agreement by $2,030,822.77 and allow the City continued access to 80 shelter beds. 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 agreements will be funded through the City's HHAP allocations. Attachment: First Amendment to the Service Agreement with Housing Authority of City of Fresno