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
Homeless Services Division
SUBJECT
Title
Approve a Second Amendment to the Agreement with Turning Point of Central California to operate the Valley Inn as a low-barrier emergency homeless shelter to extend the contract term to June 30, 2023 and to increase the compensation for property management and case management services by $1,589,731 for a total contract amount not to exceed $3,179,472, using Homekey 2.0 (Homekey) program funding.
Body
RECOMMENDATION
Staff recommends City Council approve a Second Amendment to the Agreement with Turning Point of Central California to operate the Valley Inn as a low-barrier emergency homeless shelter to extend the contract term to June 30, 2023, and increase the amount by $1,589,731 for a total contract amount not to exceed $3,179,472, and authorize the City Manager to sign all implementing documents.
EXECUTIVE SUMMARY
The City of Fresno (City) has an existing agreement with Turning Point of Central California (TPOCC) to operate the Valley Inn as a low-barrier emergency homeless shelter but a Second Amendment to the agreement is needed to comply with the requirements of Project Homekey and to reimburse operational expenses dating back to when the agreement’s original funding source was exhausted. In order to do this the City proposes increasing the amount of the agreement by $1,589,741 for a total contract amount not to exceed $3,179,472. The current agreement will expire on June 24, 2023. This Second Amendment will extend operations through June 30, 2023 when TPOCC’s new agreement begins July 1, 2023, which was approved by Council on March 30, 2023.
BACKGROUND
On May 27, 2021, Council approved acquisition of The Valley Inn, a 107-room motel located at 933 N. Parkway Drive (APN 449-335-32) for homeless housing and associated rehabilitation and property management services.
On June 10, 2021, Council approved the property management agreement with Turning Point for operations and case-management services provided at Valley Inn in the total amount of $1,589,741 for 12-months.
In December 2021, City Council approved Resolution 2021-317 authorizing application and participation in the Homekey Program to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness, and who are thereby inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic.
In January 2022, the City submitted a Homekey application as an individual applicant, applying for funds to reimburse costs associated with the acquisition, rehabilitation, relocation, and operations of the Valley Inn.
On June 6, 2022, Council approved the first amendment to the TPOCC agreement to extend the term of the agreement for one year through June 24, 2023 and added additional insurance requirements.
On July 21, 2022 the City was awarded Homekey funding for the Valley Inn totaling $17,672,672 to reimburse costs associated with the acquisition, rehabilitation, relocation, and operations of the Valley Inn. On December 15, 2022, Council approved resolution 2022-293, the 16th Amendment to the Annual Appropriation Resolution (AAR) No. 2022-154 appropriating funding for Homekey Program related activities.
On October 25, 2022 staff issued a Request for Proposal (RFP) for triage center/emergency shelter operations and coordination of services, and received two proposals. A selection panel found TPOCC’s proposal to be qualified and most responsive to operate the Valley Inn.
On March 30, 2023 Council approved an agreement with TPOCC to operate the Valley Inn from July 1, 2023 through June 30, 2024.
This second amendment will extend the existing agreement from June 24, 2023 to June 30, 2023 to prevent an interruption in shelter operations until TPOCC’s new agreement begins July 1, 2023. This second amendment will also authorize the utilization of Homekey 2.0 program funds to comply with the requirements of Project Homekey and reimburse costs incurred during the existing agreement period starting when the original source of funding for the agreement was exhausted.
City Attorney has reviewed and approved as to form.
ENVIRONMENTAL FINDINGS
This item is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable because this agreement does not include an award of a construction or service contract.
FISCAL IMPACT
This agreement would be funded through Homekey 2 funds that were appropriated to the Planning and Development Department as part of its fiscal year 2023 Budget.
Attachment:
Second Amendment to Agreement with Turning Point of California - Valley Inn