REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: CRYSTAL SILVA, Senior Management Analyst Homeless Services Division SUBJECT ..Title Approve the Service Agreement with Poverello House (Poverello) to operate the Emergency Shelter at Clarion Pointe located at 4061 N. Blackstone Avenue, term is from January 1, 2026, through June 30, 2026, in the amount not to exceed $900,000 utilizing Homeless Housing Assistance and Prevention (HHAP) funding. (Council District 4) (Bid File No.12500851) ..Body RECOMMENDATION Staff recommends that the City Council approve the service agreement with Poverello for emergency shelter operations at Clarion Pointe (90 beds) located at 4061 N. Blackstone Avenue. The agreement term is from January 1, 2026, through June 30, 2026, in the total amount of $900,000 funded through the HHAP program and authorize the City Manager, or her designee, to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) is seeking to award funding for emergency shelter operations at Clarion Pointe (90 beds) located at 4061 N. Blackstone Avenue. Staff issued a Request for Qualification (RFQ) for emergency shelter services on October 18, 2024, with the City receiving five proposals. A selection committee found that Poverello's proposal to be responsive, cost effective, and aligned with HHAP program goals. Staff recommends awarding Poverello an allocation in the amount not to exceed $900,000, funded through HHAP funding. The proposed new agreement with Poverello will ensure operation of the 90 beds from January 1, 2026, through June 30, 2026. 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 the City 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. July 2023 received $11,265,425.10 in a fourth round of HHAP allocation and in October 2024 the City received notification of $13,096,671.82 allocation in a fifth round of HHAP allocation. Health and Safety Code Section 50220.5(d) allows program recipients to use their allocation for outreach services, as well as for services coordination for homeless populations. To utilize this funding, staff issued a Request for Qualifications (RFQ) on October 18, 2024, soliciting proposals for the operation of triage centers/emergency shelters and coordination of services. The City received five proposals by the December 17, 2024, deadline. A selection panel, comprised of representatives from the City's Housing and Community Development, Homeless Services, and Homeless Assistance Response Team (HART) divisions within the Planning & Development Department, along with a representative from the City of San Jose, evaluated the proposals. The evaluation criteria included the ability to meet service requirements, conformance with RFQ terms and conditions, cost efficiency, past performance, and related qualifications. Following a thorough review, the panel determined that Poverello was qualified and most responsive for operating Clarion Pointe. Based on the evaluation, staff recommends the City Council approve the Service Agreement with Poverello House (Poverello) for emergency shelter operations at Clarion Pointe (90 beds) in total amount of $900,000. Approval of this agreement will enable continued operation of critical shelter beds while aligning with the surplussing process underway to evaluate the best long-term public use of this site. ENVIRONMENTAL FINDINGS This 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 These agreements will have no general fund impact and will be funded through HHAP funds. Attachment: Poverello Service Agreement - Clarion Pointe HHAP