REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: CRYSTAL SILVA, Senior Management Analyst Planning and Development Department SUBJECT ..Title Approve the First Amendment to the Service Agreement with Poverello House (Poverello) to continue to provide professional ERF-3 outreach services to the Downtown and Blackstone corridor encampment areas through December 31, 2026, with no additional funds (Council Districts 3 and 4) (Bid File No. 12501983) ..Body RECOMMENDATION Staff recommends that the City Council approve the First Amendment to the service agreement with Poverello House (Poverello) to continue to provide professional ERF-3 outreach services to the downtown and Blackstone corridor encampment areas through December 31, 2026, with no increase to the total compensation, which shall remain at an amount not to exceed $1,507,754.00. EXECUTIVE SUMMARY The proposed First Amendment to the service agreement with Poverello House seeks to extend the provision of professional outreach services for individuals experiencing homelessness in the downtown and Blackstone corridor encampment areas through December 31, 2026. This extension is designed to maintain the City's ongoing efforts to address unsheltered homelessness in these high-need corridors, ensuring that outreach engagement, and navigation services remain available without interruption during the extended term. The amendment does not increase the total compensation authorized under the original agreement, and all services will continue to be delivered in accordance with the established scope and performance standards set forth in the original agreement and its exhibits. By continuing this partnership, the City will leverage Poverello House's established outreach infrastructure and expertise to connect unsheltered individuals with critical resources, including shelter, mental health and substance use services, and pathways to permanent housing. The amendment also upholds all compliance, reporting, and fiscal accountability requirements, supporting the City's broader strategy to resolve encampments and promote public health and safety in Council Districts 3 and 4. BACKGROUND The City of Fresno's partnership with Poverello House for ERF-3 Outreach services is part of a multi-year, multi-phase strategy to address unsheltered homelessness in high-impact corridors, including the downtown and Blackstone corridor encampment areas. This strategy has evolved through three successive rounds of Encampment Resolution Funding (ERF), with each phase building on prior rounds, outcomes, and lessons learned. The City's engagement with the State's Encampment Resolution Funding program began on October 29, 2021, when the California Interagency Council on Homelessness (Cal ICH) released a Notice of Funding Availability for ERF-1, designed to address the health, safety, and long-term housing needs of individuals residing in encampments. Subsequent Council and program milestones include: * December 9, 2021: Council approved the City's application for ERF-1. * March 1, 2022: The City was awarded $5,070,057.68 under ERF-1. * April 28, 2022: Council approved an agreement with Poverello House to operate emergency shelter beds at the Village of Hope and to provide housing support services under Project Downtown Hope. Building on ERF-1 progress, the City pursued the next funding round: * February 23, 2023: Council adopted Resolution No. 2023-039 authorizing submission of the ERF-2 grant application. * June 14, 2023: The City was awarded $17,000,000 in ERF-2R funding. * September 28, 2023: The City executed a $9,780,325.71 agreement with Poverello House to operate 90 interim shelter beds at Clarion Pointe and 65 beds at the Village of Hope, along with street outreach, navigation, and housing stability case management services funded through ERF-2R. The City then advanced into the current phase of the program: * January 18, 2024: Council adopted Resolution No. 2024-007 authorizing submission of the ERF-3 application. * April 19, 2024: The City received a $10,926,075.78 ERF-3R award. * October 10, 2024: Council approved an amendment with Poverello House to use $2,001,280.00 in ERF-3R funds to add 30 beds at Clarion Pointe and expand outreach into the Blackstone Corridor through July 30, 2025. The ERF-3 outreach agreement was awarded following a Request for Qualifications (RFQ) released on April 2, 2025, seeking qualified providers to conduct targeted outreach in designated encampment areas. Poverello House was the sole qualified respondent. A review panel that included City staff and representatives from the Lived Experience Advisory Board evaluated the proposal and determined that it met criteria for service quality, alignment with program goals, and cost-effectiveness. ERF-3 outreach services are funded exclusively through the ERF-3R allocation. Of the City's total $10.9 million award, $1,507,754.00 is dedicated to outreach services under this agreement. Poverello House delivers a multidisciplinary outreach model that operates seven days per week, staffed by clinicians, substance-use counselors, and navigation specialists. Services include standardized assessments, crisis intervention, shelter placements, and referrals to behavioral health and substance use treatment. All client interactions are documented in the Homeless Management Information System (HMIS), and the agreement includes clear annual performance targets. Accountability measures require monthly income and expense reports with supporting documentation, annual outcome reports, and full audit rights for the City. The agreement also includes provisions related to conflict of interest, nondiscrimination, insurance, and indemnification. The proposed First Amendment is necessary to ensure continuity of outreach services in the targeted corridors and reflects Poverello House's strong performance during prior ERF-funded contract periods. The amendment extends the term of the agreement through December 31, 2026, without additional funding, maximizing the effectiveness of existing resources while supporting the City's broader encampment resolution, public health, and safety objectives. In summary, the First Amendment continues the City's deliberate, evidence-based approach to addressing unsheltered homelessness through coordinated outreach, sheltering, and housing interventions. It builds on a multi-year progression of ERF-funded initiatives and aligns with City goals to deliver effective, accountable, and compassionate services in the areas of greatest need. 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 This agreement will have no impact on the general fund, as it does not include an increase in the amount of funds provided. Attachments: First Amendment Original Agreement