REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: JILLIAN GAYTAN, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title Approve the Agreement with Mental Health Systems (MHS) to operate the Fresno HOME as a low-barrier emergency homeless shelter in the total amount of $981,908.68 using Homeless Housing Assistance and Prevention (HHAP) funds and authorize the City Manager or designs to sign all implementing documents as approved to form by the City Attorney. ..Body RECOMMENDATION Staff recommends the City Council approve the HHAP agreement with Mental Health Systems and authorize the City Manager to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno (City) entered into an Emergency Solutions Grant-Coronavirus (ESG-CV) agreement with Mental Health Systems (MHS) to operate a low-barrier emergency homeless shelter at the Fresno HOME through September 30, 2022. In order to continue the homeless shelter operations being provided under this agreement, staff recommends utilizing HHAP funds to enter into a new agreement with MHS for shelter operations beginning October 1, 2022 through June 30, 2023. BACKGROUND On June 24, 2021, City Council approved an ESG-CV agreement with MHS to operate Fresno HOME as a low-barrier emergency homeless shelter through September 30, 2022 in an amount of $1.46 million. The Fresno HOME (formerly The Hacienda) provides the City 50 additional emergency shelter beds and supportive services. Mental Health System, Inc. will provide Triage Center Emergency Shelter services, including 24-hour emergency shelter that offers low-barrier access to dormitory or private accommodations with on-site, housing-focused services including diversion pre-screening, case management, housing search and placement, connection to community resources, and stabilization of health issues. The Triage Center is intended to provide a safe, supportive environment where residents will be provided with wraparound services to attain permanent housing by rebuilding their support network and addressing the issues that led to the episode of homelessness. The proposed HHAP agreement with Mental Health Services continues the homeless shelter operations at the Fresno HOME, providing the City continued use of the 50 emergency shelter beds through June 30, 2023. ENVIRONMENTAL FINDINGS This item 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 The agreements will be funded through the City's HHAP allocations. Attachments: 1. Agreement with Mental Health Systems - Fresno HOME 2. Memo Uniquely Qualified Service Provider - Mental Health Systems