REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department PAUL AMICO, PE, Interim Director Department of Public Utilities BY: JAMES VERROS, Assistant Director Department of Public Utilities - Solid Waste Management Division SUBJECT ..Title Actions pertaining to the Encampment Delegated Maintenance Agreement (EDMA) with the California Department of Transportation (Caltrans) (Citywide): 1. Adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facilities) of the California environmental Quality Act (CEQA) Guidelines; 2. Approve an Encampment Delegated Maintenance Agreement (EDMA) with the California Department of Transportation (Caltrans) in the amount $400,000 for encampment removal and maintenance services; 3. ***Resolution - Adopting the 17th Amendment to the Annual Appropriation Resolution No. 2025-179 to appropriate $400,000 in the Public Works Department for the Caltrans Encampment Delegated Maintenance Project (Citywide) (Requires Five Affirmative Votes) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that the City Council adopt a finding of Categorical Exemption pursuant to Class 1, Section 15301 (Existing Facilities) of the CEQA Guidelines, approve the Encampment Delegated Maintenance Agreement (EDMA) with Caltrans in the amount of $400,000; authorize the Public Works Director, or designee, to execute all related documents; and adopt the 17th Amendment to the Annual Appropriations Resolution No. 2025-179 appropriate $400,000 in the Public Works Department for the services to be performed under the EDMA. EXECUTIVE SUMMARY The Encampment Delegated Maintenance Agreement (EDMA) establishes the City of Fresno's authority to perform encampment abatement and maintenance services within the Caltrans right-of-way. The initial allocation of $400,000 from Caltrans is authorized specifically for delegated maintenance on SR-41 between Shaw Avenue and Friant Road. The Agreement authorizes the City to conduct removal of encampments, hazardous debris, and associated waste materials in compliance with Caltrans Maintenance Policy Directive (MPD 1001 R1). Caltrans will reimburse the City up to $400,000 in eligible costs for services performed through June 30, 2027. This agreement strengthens regional coordination for addressing public safety and environmental hazards associated with encampments along state highways, while also ensuring that activities follow established outreach, reporting, and legal requirements for working with persons experiencing homelessness. The agreement also allows for Caltrans to authorize additional funding to the City for other locations along the State highway system in Fresno where encampment delegated maintenance services are needed, subject to future availability of funds. BACKGROUND Beginning with the launch of Mayor Dyer's Project Off-Ramp in 2020, this agreement builds upon the partnership between the City of Fresno, Caltrans, and California Highway Patrol where the City assisted 650 people with relocating from freeways and highways. Through Project Off-Ramp, approximately eighty percent of these individuals accepted services, including shelter. This EDMA is the next iteration of this partnership and will be one of the few already approved in the State of California, continuing to represent Fresno's leadership in our model to address homelessness, while also reducing safety hazards, and maintaining clean and accessible transportation corridors. The City of Fresno has previously entered into Delegated Maintenance Agreements with Caltrans in 1990, 2019, and 2021. These agreements established shared responsibilities for highway maintenance, more specifically related to highway litter control and graffiti abatement. The 2025 Encampment Delegated Maintenance Agreement expands those responsibilities to explicitly authorize the City to conduct encampment removal activities along SR-41 between Shaw Avenue and Friant Road. Key provisions of this agreement include: * Encampment Removal Protocols: Priority 1 encampments (imminent threats to health, safety, or infrastructure) require immediate removal. Priority 2 encampments (non-imminent threats) require outreach efforts and State approval prior to removal. * Reporting: The City must submit Encampment Removal Request Forms, before/after photos, and After-Action Reports to Caltrans. * Reimbursement: Caltrans will reimburse the City for actual costs of labor, equipment, supplies, and disposal services up to $400,000. The Public Works Department will handle invoicing under this agreement in accordance with Caltrans accounting standards. * Standards: All work must comply with Caltrans MPD 1001 R1, environmental regulations, and safety requirements. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in CEQA Guidelines Section 15301, which exempts the repair, maintenance, or minor alteration of existing structures or facilities, with no further expansion of existing use. The project pertains to ongoing maintenance in an existing facility. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15301 applies to this project. LOCAL PREFERENCE Local preference was not considered because this Agreement does not involve the competitive bidding or award of a construction or service contract. FISCAL IMPACT Approval of this action will have no impact on the General Fund. All costs for services under this Agreement are reimbursable by Caltrans up to the maximum amount of $400,000. The City may incur upfront costs but will be reimbursed on a quarterly basis in accordance with Caltrans billing requirements. Attachments: Categorical Exemption Encampment Delegated Maintenance Agreement (EDMA) with Caltrans (DMA 05-6-Fre-41-DL01) 17th Amendment to AAR No. 2025-179