REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: JOE PASILLAS, Homeless Service Manager Planning and Development Department SUBJECT ..Title Approve the Third Amendment to the Service Agreement with Poverello House (Poverello) for professional emergency shelter and street outreach services for individuals experiencing homelessness in the State Encampment area. The third amendment will not increase the overall funding provided to Poverello. The third amendment will allow the Encampment Resolution Fund (ERF) Round-2 Shelter Operation and ERF Round-2 Outreach services to be extended through September 30, 2025. ..Body RECOMMENDATION Staff recommends City Council approval of the Third Amendment to the services agreement with Poverello for professional emergency shelter and outreach services for individuals experiencing homelessness in the State Encampment area. The Third Amendment will not increase the overall funding provided to Poverello. The Third Amendment will allow the ERF-2 Emergency Shelter Operations and ERF-2 Outreach services to extend through September 30, 2025. EXECUTIVE SUMMARY The City of Fresno (City) has a current agreement with Poverello for professional emergency shelter, and street outreach that will be expiring on June 30, 2025. The City is seeking to award a third amendment that will not increase the overall funding to Poverello but will extend the current ERF-2 Shelter operation and Outreach services agreement through September 30, 2025. Extending the agreement will allow the Poverello outreach team to continue to engage individuals within the state encampment area and providing linkages to essential services. The shelter extension will enable Poverello to maintain current shelter capacity and continue to work with the individuals on a plan to secure housing. 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, City Council approved the City's application for Encampment Resolution Funds (ERF-1) to support Project Downtown Hope, an initiative focused on addressing an encampment spanning approximately an 8-by-15 block area bounded by Highway 41, Highway 99, and Fresno Street. Following City Council approval, City staff submitted the application, and on March 1, 2022, the California Interagency Council on Homelessness (Cal-ICH) notified the City that it had been awarded an ERF grant in the amount of $5,070,057.68. On April 28, 2022, City 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. The recommended amendment will allow Poverello to extend ERF-2 Shelter and Outreach services to September 30, 2025. ENVIRONMENTAL FINDINGS This 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, due to the City utilizing state funds to support the project. Attachment: Poverello Third Amendment Agreement ERF-2 Outreach-Shelter