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 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 an Amendment to the Emergency Solutions Grant - Coronavirus Agreement with Elevate Community Services to increase the funding by $132,539.21 for a total award of $385,805.42 for emergency shelter within the City of Fresno. 2. Approve the seventh revision of the Emergency Solutions Grant - Coronavirus Activity Allocations to reallocate $132,539.21 to fund emergency shelter operations ..Body RECOMMENDATION Staff recommends the City Council approve an amendment to the agreement between the City of Fresno and Elevate Community Services, approve the seventh revision of the Emergency Solutions Grant - Coronavirus (ESG-CV) Activity Allocations, 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 of Fresno (City) is proposing an amendment to the ESG-CV agreement with Elevate Community Services (Elevate) to cover increased costs at Travel Inn and aid in the full expenditure of ESG-CV funds by the September 30, 2023 expenditure deadline. BACKGROUND The Travel Inn consists of 60 rooms and 150 beds and has operated at full capacity since opening in September 2021. Travel Inn operates as a triage emergency congregate shelter which requires extensive supportive services and case management. Travel Inn provides 24-hour staffing, on-site wrap-around services, welcomes individuals with present mental health or addiction issues, and is the lowest barrier shelter on Parkway Drive. On June 16, 2022, City Council approved a Community Development Block Grant- Coronavirus (CDBG-CV) agreement between the City and Elevate for emergency shelter operations and supportive services at Travel Inn through December 31, 2023. On August 18, 2022, City Council approved revisions to the ESG-CV Activities, which would reprogram funds for street outreach services, mobile shower operations, and add additional funding for the operations at Travel Inn. On November 17, 2022, City Council approved an ESG-CV agreement between the City and Elevate through September 30, 2023, to add three case managers to the operations of Travel Inn thereby improving the ratio of case managers to occupants. Since the approval and execution of the ESG-CV agreement between the City and Elevate to increase case managers, 179 individuals have been provided emergency shelter and supportive services, with 62 individuals having experienced safe exits while 88 continue to pursue their housing plan at the Travel Inn. The proposed amendment to the agreement would provide an additional $132,539.21 in ESG-CV funds made available from other ESG-CV projects' savings to cover increased operating costs and ensure Elevate can operate Travel Inn at full capacity through December 31, 2023. The amendment would not extend the term of the ESG-CV agreement which will expire September 30, 2023. If approved, the proposed additional ESG-CV funds will be used to supplement the existing ESG-CV and CDBG-CV agreements for a total funding amount of $2,049,805.42. This funding will be used to cover increased operating costs during the agreement period of July 1, 2022 through December 31, 2023 and enable Elevate to operate at full capacity through December 31, 2023. Increased costs have resulted from a variety of sources including inconsistent food costs due to food supplier challenges, damage to furniture leading to a greater degree of replacement, documentation costs (i.e., birth certificate, California ID/driver's license, social security card, etc.) related to a rising number of clients coming from other cities, and additional clothing and hygiene product expenses resulting from serving more clients. Travel Inn is typically the first shelter people utilize when coming off the streets. As the City's only congregate shelter, people enter this shelter the least prepared for housing. As those remaining on our streets increasingly exhibit the most acute needs, Travel Inn has seen an increase in occupants who are new to the Coordinated Entry System (CES). Individuals who are new to the triage emergency shelter and to CES require additional direct services expenses, which have exceeded Elevate's budget, and will result in a budget shortfall prior to the end of the term of their agreement. Elevate has worked to optimize the free resources available in the community, but some of the items needed for occupants cannot be received easily through donations. In recent months there has been a greater need for items that cannot be donated such as undergarments and socks for men and women staying at the triage emergency shelter. A budget was created by Elevate to cover these expenses but the funds were quickly exhausted. The reprogramming of the $132,539.21 in ESG-CV funds to increase funding available for Travel Inn will assist in covering these increased direct services expenses allowing them to operate at full capacity through December 31, 2023, and will also aid in the City's ability to meet the September 30, 2023, ESG-CV expenditure deadline. 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: 1st Amendment - Travel Inn ESG-CV ESG-CV Activities ESG-CV Agreement- Elevate Travel Inn