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 service agreements with Elevate Community Services, Inc. (Elevate) for the operation of the following three emergency shelters (Bid File 12500851) (Council District 3)
1. Fresno Home located at 2550 W. Clinton Avenue, a shelter providing 50 beds for families experiencing homelessness. The agreement term is from July 1, 2025 through June 30, 2026 in an amount not to exceed $1,250,000.00, funded through the Homeless Housing, Assistance, and Prevention (HHAP) program
2. Parkway Inn located at 959 N. Parkway Drive, a shelter offering 62 units for individuals experiencing homelessness. The agreement term is from July 1, 2025 through June 30, 2026 in an amount not to exceed $1,679,099.00, funded through the HHAP program
3. Valley Inn located at 933 N. Parkway Drive, a shelter offering 106 units for individuals experiencing homelessness. The agreement term is from July 1, 2025, through December 31, 2025 in an amount not to exceed $1,324,921.00, funded through the HHAP program
Body
RECOMMENDATION
Staff recommends that the City Council approve the service agreements with Elevate for emergency shelter operations at Fresno Home in the total amount of $1,250,000.00 and Parkway Inn in the total amount of $1,679,099.00 under a one-year agreement and authorize the City Manager, or designee, to sign all implementing agreements.
Staff recommends the City Council approve the service agreement with Elevate for emergency shelter operations at Valley Inn in the total amount of $1,324,921.00 under a six-month agreement and authorize the City Manager, or designee, to sign all implementing agreements.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to award funding for emergency shelter operations in alignment with the requirements of the Homeless Housing, Assistance, and Prevention (HHAP) program. A Request for Qualification (RFQ) was issued on October 18, 2024, resulting in the submission of five (5) proposals and all five (5) were determined to be qualified.
Based on the evaluation of the response from Elevate, staff recommends awarding Elevate funding to operate and coordinate services at Fresno Home in the amount of $1,250,000 and Parkway Inn in the amount of $1,679,166.67 under a one-year agreement.
Staff also recommends Elevate a total award of $1,324,921 to operate and coordinate services at Valley Inn under a six-month agreement.
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 operating subsidies in new and existing emergency shelters, as well as for services coordination for homeless populations.
To utilize this funding, staff issued a Request for Qualifications (RFQ) on October 18, 2024, soliciting proposals for the operation of triage centers/emergency shelters and coordination of services. The City received five proposals by the December 17, 2024, deadline. A selection panel, comprising of representatives from the City’s Housing and Community Development, Homeless Services, and Homeless Assistance Response Team (HART) divisions within the Planning & Development Department, along with a representative from the San Jose Housing Authority, evaluated the proposals. The evaluation criteria included the ability to meet service requirements, conformance with RFQ terms and conditions, cost efficiency, past performance, and related qualifications.
Following a thorough review, the panel determined that Elevate’s proposal was both qualified and most responsive for operating Fresno Home with a proposed allocation of $1,250,000.00. Initially, The City selected another organization to operate Parkway Inn and Valley Inn; however, during the negotiations process that organization chose not to pursue a contract with the City to operate the two emergency shelters.
The City then reached back out to all qualified organizations. Elevate and one other organization responded by submitting a proposal for Parkway Inn and Valley Inn. Elevate’s proposals were determined to be the most responsive to operate the Parkway Inn and Valley. Elevate’s proposal to operate Parkway Inn is $1,679,166.67 and Valley Inn is $1,324,921.00.
Based on the evaluation, staff recommends awarding Elevate as the operator of Fresno Home, Parkway Inn, and Valley Inn.
Elevate Community Services: Fresno Home, Parkway Inn, and Valley Inn
The President of Elevate Community Services, Inc., a non-profit corporation, is Wayne Rutledge and the Chief Financial Officer is Brad Hardie.
The services will focus on addressing the immediate needs of individuals while guiding them through the Coordinated Entry System and identifying permanent housing solutions. Emergency shelter will be provided under a low-barrier, housing-first model that welcomes individuals along with their pets, partners, and personal belongings. Elevate will not impose sobriety-related entry requirements and is committed to creating a trauma-informed environment that supports each individual seeking shelter.
Highly trained and experienced Housing Case Managers from Elevate will work closely with participants to develop personalized housing plans and support them in completing the steps necessary to achieve their housing goals.
For individuals who exit the program without securing permanent housing, Elevate will facilitate connections to a community-based Navigator through RH Community Builders' CalAIM Navigation Services. These services will seamlessly continue the work started by Housing Case Managers, including document collection, service linkage, and assistance with housing searches.
The services include:
• Emergency Shelter, Rapid Rehousing, and Transitional Housing: Elevate will operate 50 emergency shelter beds at Fresno Home, 62 emergency shelter units at Parkway Inn, and 106 emergency shelter units at Valley Inn providing a safe and supportive environment for individuals in crisis.
• Housing Case Management: Elevate will deliver intensive case management services tailored to help participants identify and secure the most appropriate long-term housing solutions to meet their individual needs.
• Monitors: Staff will be trained in evidence-based practices, including Motivational Interviewing, and will prioritize harm reduction as a core value of the Triage Centers. Substance use alone will not result in a participant’s termination from the shelter.
• Diversion Services: Elevate staff will screen participants during intake through a collaborative and exploratory process, empowering clients to identify potential solutions to resolve their housing crises independently.
• Housing Stabilization: Elevate will support participants in stabilizing their housing by facilitating access to employment opportunities, benefits such as Social Security Income, General Relief, and CalFresh, and participation in job training programs or educational initiatives. Staff will also provide guidance on maintaining clean, organized living conditions to promote long-term housing success.
The proposed agreements, totaling $1,250,000 for Fresno Home, $1,679,166.67 for Parkway Inn, and $1,324,921 for Valley Inn with Elevate Community Services, complies with Health and Safety Code Section 50220.5(d) and will provide 218 beds to serve the homeless community.
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
These agreements will have no general fund impact and will be funded through HHAP funds.
Attachments:
Elevate Service Agreement - Fresno Home
Elevate Service Agreement - Parkway Inn
Elevate Service Agreement - Valley Inn