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 Elevate Community Services, Inc. (Elevate) to operate Villa Motel offering 52-units serving individuals experiencing homelessness, located at 817 N. Parkway Drive, through March 31, 2026, in the total amount of $1,299,998.00 funded with Homekey 2.0 and Homeless Housing, Assistance and Prevention (HHAP) funding. (Council District 3)
Body
RECOMMENDATION
Staff recommends City Council to approve the service agreement with Elevate for emergency shelter operations in the total amount of $1,299,998.00 under a one-year agreement and authorize the City Manager, or designee, to sign all implementing agreements.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to allocate 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 proposals and all five were determined to be qualified. Based on the evaluation of the response from Elevate, Staff recommends awarding Elevate a total allocation of $1,299,998.00 to oversee the operation and coordination of services at the Villa Motel under a one-year 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.
On December 9,2021, City Council adopted a Resolution 2021-316 authorizing staff to submit applications to the California department of Housing and Community Development (HCD) second round of funding under the Homekey Program (Homekey 2.0) for the operational and support services that support sustaining and expanding housing for persons experiencing homelessness. On July 21,2022 the City was awarded $10,754,500 in Homekey 2.0 funds to acquire, rehabilitate and operate the motel to service as an interim low-barrier emergency shelter. The award dedicated $2,392,000 in operating subsidy.
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 representatives from the City’s Housing and Community Development, Homeless Services, and Homeless Assistance Response Team (HART) divisions within the Planning and 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 to operate the Villa Motel, with a proposed allocation of $1,299,998.00. Based on the evaluation, staff recommends awarding Elevate as the operator of the Villa Motel.
Elevate Community Services: Villa Motel
The principal owner of Elevate Community Services is Brad Hardie and the Chief Executive Officer is Wayne Rutledge.
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 52 emergency shelter beds at the Villa Motel, 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 agreement, totaling $1,299,998.00 with Elevate Community Services, complies with Health and Safety Code Section 50220.5(d) and will provide 52 beds to serve the homeless community.
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 Homekey and HHAP allocations.
Attachment:
Elevate Service Agreement