REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: PHIL SKEI, Assistant Director Planning and Development Department BY: JOE PASILLAS, Homeless Service Manager Planning and Development Department SUBJECT ..Title Approve the Second Amendment to the Service Agreement with Poverello House (Poverello) for professional emergency shelter, bridge housing, street outreach and navigation services for individuals experiencing homelessness in the State Encampment areas. The second amendment will not increase the overall funding provided to Poverello. The second amendment will continue the current contract term till July 30, 2025, and provides Poverello a 25% advance payment of $500,320.00, from the total Encampment Resolution Fund (ERF-3R) agreement of $2,001,280.00. ..Body RECOMMENDATION Staff Recommends City Council approval of the Second Amendment to the services with Poverello for professional emergency shelter, bridge housing, street outreach, and navigation services for individuals experiencing homelessness in two State Encampment areas using $2,001,280.00 in ERF-3R funds. The second amendment will not increase the overall funding to Poverello, will continue the current contract term until July 30, 2025, and provides Poverello a 25% advance payment of $500,320.00 to assist with startup costs for the 30 emergency beds at Clarion Pointe and Street Outreach expansion. EXECUTIVE SUMMARY The City of Fresno (City) has a current agreement with Poverello for professional emergency shelter, bridge housing, street outreach, and navigation services for individuals experiencing homelessness in the two Statement encampment areas using $2,001,280.00 in ERF-3R funds. The City is seeking to award a second amendment that will not increase the overall funding to Poverello. The second amendment will provide Poverello with a 25% advance ($500,320.00) for startup of the 30 emergency beds at Clarion Pointe and Street Outreach expansion. BACKGROUND On October 29, 2021, The California Interagency Council on Homelessness published a Notice of Funding Availability for the ERF-1 Program. The ERF-1 Program is designed to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments, including their immediate physical and mental wellness and safety needs arising from unsheltered homelessness and their long-term needs addressed through a path to safe and stable housing throughout the state. On December 9, 2021, Council approved the City's application for funds through the ERF-1 program. Subsequently, City staff submitted the application and on March 1, 2022, was notified by Cal-ICH that it had been awarded an ERF Grant in the amount of $5,070,057.68. On April 28, 2022, Council approved an agreement with Poverello to assist 100 individuals with transitioning out of street homelessness into 50 Triage emergency shelter beds at Village of Hope, and up to 26 individuals into permanent affordable housing provided under the ERF program as part of the Project Downtown Hope. On February 23, 2023, City Council adopted Resolution No. 2023-039 authorizing the department to submit a grant application to California Interagency Council on Homelessness (Cal ICH) for funding under the ERF-2R program for services that resolve the experience of unsheltered homelessness for people residing in Project Downtown Hope and transition individuals into interim shelter with clear pathways to permanent housing. On June 14, 2023, the city was awarded ERF-2R funding the amount of $17,000,000. On September 28, 2023, the City entered into an agreement with Poverello House to operate 90-interm shelter beds at Clarion Point, 65-emergency shelter beds at the Village of Hope, perform street outreach and navigation services, and provide housing stability case management in the amount of $9,780,325.71 using ERF-2R funds through June 30, 2025. On January 18, 2024, City Council adopted Resolution No. 2024-007 authorizing the department to submit a grant application to Cal ICH for funding under the ERF-3R program. On April 19, 2024, the City received an ERF-3R Notice of Award in the amount of $10,926,075.78. On October 10, 2024, City Council approved the first amendment with Poverello utilizing an additional $2,001,280.00 in ERF-3R funds to add 30 emergency shelter beds at Clarion Pointe and expand street outreach services from the downtown encampment area to include the Blackstone Corridor between Barstow Avenue and Shields Avenue through July 30, 2025. The recommended amendment will utilize the $2,001280.00 in ERF-3R funds to provide Poverello with a 25% advance ($500,320.00) to assist with startup costs for 30 emergency shelter beds at Clarion Pointe and outreach services for the two state encampment areas. ENVIRONMENTAL FINDINGS This item is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable due to the use of State Funds. FISCAL IMPACT The General Fund will not be impacted. The second amendment will be funded through the City's ERF-3 R grant funds. Attachments: Second Amendment with attachments (First Amendment and Original Agreement with Poverello for ERF Services)