REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: MELISSA FRANCO, Sr Management Analyst Planning and Development Department SUBJECT ..Title Approve the Third Amendment to the Service Agreement with Poverello House for professional triage center services at Naomi's House and Clarion Pointe, and to increase funding by $525,405.56 in Homeless, Housing Assistance, and Prevention funds (HHAP) for total program award $3,125,195.25. ..Body RECOMMENDATION Staff recommends the City Council approve the Third Amendment to the Service Agreement with Poverllo House to increase the number of triage beds. This includes extending funding support for 30 bridge beds at Clarion Pointe and adding 23 beds at Naomi's house. The term of the proposed amendment will be extended to June 30, 2025; increasing funding by $525,406.24 in HHAP funds for a total agreement amount of $3,125,195.25. EXECUTIVE SUMMARY The City of Fresno (City) has an agreement with Poverello to provide homeless emergency shelter services utilizing HHAP funding. Staff recommends amending this agreement to include additional HHAP funds in order to increase the number of triage beds available. BACKGROUND 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 a total of $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 grantees to use the HHAP funding allocation for operating subsidies in new and existing emergency shelters and for services coordination for homeless populations. On February 15, 2023, the Planning and Development Department, Homeless Services Division, released a Request for Qualifications (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 operate a homeless shelter, all were determined to be qualified and responsive to the RFQ. Poverello is among those determined to be qualified and responsive. On May 11, 2023, the 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. On September 28, 2023, the City Council approved a First Amendment to the HHAP agreement with Poverello, reducing the HHAP funding amount to $1,760,088.19 and reducing the amount of HHAP-supported shelter beds from 115 to 30 at Clarion Pointe. These 30 beds were converted to bridge beds. This amendment enabled use of the City's Encampment Resolution Fund 2R grant award from the State of California to be utilized to support the balance of the shelter's operations. On May 23, 2024, The City Council approved of the second amendment to the HHAP agreement with Poverello in the amount of $1,319,019.24 to continue to support 30 bridge beds at Clarion Pointe. Staff recommends City Council approve the Third Amendment to the Agreement with Poverello to extend the term of services of Clarion Point 30 bridge beds through June 30, 2025, to align the term of services with other existing shelter agreements, increase the number of beds by 23-beds at Naomi's House, and increase funding by $109,917.63 for services at Clarion Pointe and $415,487.93 for services at Naomi's House, for a total HHAP award of $525,405.59 through June 30, 2025. 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 agreement will be funded through the City's allocation of Homeless, Housing Assistance, and Prevention funds (HHAP) funds. Attachments: Third Amendment to the Service Agreement with Poverello House Original Agreement