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 Homeless Services Division SUBJECT ..Title Approve a service agreement with Poverello House (Poverello) to provide homeless street outreach and diversion services through October 17, 2025 to October 16, 2026, in the total amount of $382,000 funded with Homeless Housing, Assistance, and Prevention (HHAP) program. (Bid File 12501983). ..Body RECOMMENDATION Staff recommends that the City Council approve the service agreement with Poverello to provide homeless street outreach and diversion services throughout the city of Fresno. The agreement term is from October 17, 2025, through October 16, 2026, in an amount not to exceed $382,000, funded through the HHAP program, and authorize the City Manager or designee(s) to execute the agreement on behalf of the City. EXECUTIVE SUMMARY The City of Fresno (City) is seeking to award funding for homeless street outreach and diversion services as part of the HHAP program requirements. Staff issued a Request for Qualifications (RFQ) for outreach services on April 2, 2025, with one proposal received from the Poverello House. Poverello's proposal was determined to be responsive, cost effective, and aligned with HHAP program goals. Staff recommends awarding Poverello an annual allocation of $382,000 for homeless street outreach and diversion services from October 17, 2025, through October 16,2026. 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 HHAP funding to support outreach and diversion services, an RFQ for outreach and diversion services was released on April 2, 2025, with one qualified proposal received. A separate review panel including staff from the City's Housing and Community Development Department, HART, Public Utilities Division, and a member of the Lived Experience Advisory Board determined that Poverello's proposal met all criteria, with a recommended award of $382,000 for outreach and diversion services. Based on the outcome of the competitive RFQ process and Poverello's history of successful service delivery, staff recommends the approval of the HHAP Outreach and Diversion Services agreement from October 17, 2025, through October 16, 2026, in an amount not to exceed $382,000.00. This program will directly support the City's efforts to resolve encampments and transition individuals into safe, stable housing. 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 HHAP funds to support the project. Attachment: Poverello Service Agreement - HHAP Outreach and Diversion