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 Services Manager
Planning and Development Department
SUBJECT
Title
Actions pertaining to the emergency repair of Valley Inn, located at 933 N. Parkway Drive, an emergency shelter, APN: 449-335-32 (District 3):
1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines; and
2. ***RESOLUTION - Declaring an urgent necessity for the preservation of life, health, property, and authorizing the Planning and Development Director or designee to enter into agreements without competitive bidding for the rehabilitation of units and removal of hazardous materials; and approving a contract with Olsen Construction for the emergency reconstruction of units at the emergency shelter for an amount not to exceed $75,000. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council 1) adopt a Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) and 2) adopt a Resolution declaring an urgent necessity for the preservation of life, health, property and authorizing the Planning and Development Director or designee, without competitive bidding for the rehabilitation of units and removal of hazardous materials; and approving a contract with Olsen Construction for the emergency reconstruction of units at the emergency shelter for an amount not to exceed $75,000. (Emergency Repair).
EXECUTIVE SUMMARY
In July 2024 significant water damage was discovered to twelve (12) shelter units at the Valley Inn emergency shelter located at 933 N. Parkway (APN 449-335-32). The water damage was caused by a faulty shower pan and had persisted without knowledge by shelter staff. City staff have worked with the Risk Management Division to make the necessary repairs but in order to complete the repairs in three (3) units, a Resolution of Urgent Necessity is required to remediate the significant deterioration which pose an imminent danger to life, health and safety.
Adoption of this resolution will authorize the Planning and Development Department to enter into a contract with Olsen Construction for the rehabilitation of three units at the Valley Inn located at 933 N. Parkway Drive.
Staff conducted an Environment Assessment for 933 N. Parkway Drive, Fresno CA 93728, on June 24, 2025, and determined the proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301/Class 1.
BACKGROUND
On May 27, 2021, the City Council approved the acquisition of the Valley Inn, a 107-room motel located at 933 N. Parkway Drive (APN 449-335-32), for use as homeless housing, including associated rehabilitation and property management services.
In December 2021, the City Council adopted Resolution No. 2021-317, authorizing the submission of an application to and participation in the State of California’s Homekey Program. This program aims to sustain and rapidly expand housing for individuals experiencing homelessness or at risk of homelessness, particularly those disproportionately impacted by the COVID-19 pandemic and related health vulnerabilities.
In January 2022, the City submitted a Homekey application as a sole applicant, requesting funds to cover expenses related to the acquisition, rehabilitation, relocation, and operation of the Valley Inn.
On July 21, 2022, the City was awarded Homekey funding totaling $17,672,672, to reimburse eligible costs associated with the project.
On December 15, 2022, the City Council approved Resolution No. 2022-293, the 16th Amendment to the Annual Appropriation Resolution (AAR) No. 2022-154, appropriating funds for Homekey Program-related activities.
In July 2024, twelve (12) units within the property sustained significant water damage, leading to structural defects and mold growth. In response, the City of Fresno Risk Management Division initiated emergency mold remediation services, performed by Olsen Construction and ALM Environmental. Despite these efforts, three (3) units remain uninhabitable. The remaining three (3) units are unfinished and pose a danger to life, health and safety.
ENVIRONMENTAL FINDINGS
Staff performed a preliminary environmental assessment of the project and determined that it is exempt from CEQA as set forth in CEQA Guidelines, Section 15301 for Existing Facilities because this Project involves the rehabilitation of an existing structure which has deteriorated to a point where it requires repairs, in order to uphold public health and safety standards, and the repairs will not involve expansion of the existing use of the facility.
Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and 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
There is no impact to the General Fund. The Project is located in Council District 3. The funds to be used for the rehabilitation are state funds.
Attachments:
Environmental Assessment for 933 N. Parkway Drive, Fresno CA 93728 (APN: 449-335-32)
Resolution of Urgent Necessity-933 N. Parkway Drive
Olsen Construction Service Agreement