REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: PHIL SKEI, Assistant Director Planning and Development SUBJECT ..Title Actions pertaining to using the Parkway Inn located at 959 N. Parkway Drive, Fresno 93728, as an interim low-barrier homeless shelter: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) guidelines 2. Approve a Repair Services Agreement with the Fresno Housing Authority not to exceed $5,406,505 (District 3) ..Body RECOMMENDATION Staff recommends the City Council approve a Repair Services Agreement with Fresno Housing Authority to rehabilitate Parkway Inn using Homekey 2 funds to serve as an interim low-barrier emergency homeless shelter as part of Project Homekey; and authorize the City Manager to sign the agreement. EXECUTIVE SUMMARY The City of Fresno (City) recently purchased the Parkway Inn, located at 959 N. Parkway Drive, Fresno 93728 to serve as an interim low-barrier emergency homeless shelter as part of Project Homekey. Since receiving a fully executed Homekey 2 award agreement on June 15, 2022, in order to meet the State of California's deadlines, rehabilitation must commence as soon as possible. Fresno Housing Authority has agreed to serve as the City's Developer for this Homekey 2 project. BACKGROUND On December 9, 2021, City Council adopted Resolution 2021-317 authorizing staff to submit applications to the California Department of Housing and Community Development's (HCD) second round of funding under the Homekey Program (Homekey 2) for the operational and support services that support sustaining and expanding housing for persons experiencing homelessness. Accordingly, staff submitted an application for the Parkway Inn, located at 959 N. Parkway Drive, Fresno 93728, and on May 10, 2022, the City was awarded $13,414,500 to rehabilitate and repair this motel to serve as an interim low-barrier emergency homeless shelter. On June 15, 2022, the City's Homekey agreement was fully executed with HCD. As part of the City's Homekey award for the Parkway Inn was a development budget totaling $5,406,505 which includes ADA upgrades, interior upgrades, installation of a fire sprinkler system, replacement of mechanical systems, commons space upgrades and enhanced security features, and new furnishings, among other improvements. Rehabilitation of this motel is scheduled to be completed by January 10, 2023, at which time it will provide 62 shelter beds for those who are homeless or at risk of homelessness. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this Project and has determined it falls within the Categorical Exemption set forth in CEQA Guidelines Section 15301/Class 1 (existing facilities) which exempts projects involving a negligible or no expansion of an existing facility. This exemption applies because this project involves the purchase of Parkway Inn without expansion of the facility. Staff determined under the CEQA Guidelines this project fits within the definition of existing facilities in Section 15301/Class 1, as Categorically Exempt from further CEQA review. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference is not applicable because of the use of state funds. FISCAL IMPACT Funding for this agreement will be through the State of California's Project Homekey award to the City of Fresno for this project. Attachments: Repair Service Agreement (Fresno Housing Authority - Parkway Inn)