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
Actions pertaining to Service Agreements with Poverello House (Poverello):
1. Approve an agreement (Bid File 12500851) to operate a 30-bed emergency shelter at Clarion Pointe from July 31, 2025 through December 31, 2026 in an amount not to exceed $2,002,382.75;
2. Approve an agreement to provide outreach services (Bid File 12501983) in the downtown and Blackstone corridor encampments from July 31, 2025 through October 31, 2026 in an amount not to exceed $1,507,754.00. (Council Districts 3 and 4)
Body
RECOMMENDATION
Staff recommends that the City Council approve the service agreements with Poverello to:
1. Operate a 30-bed emergency shelter at Clarion Pointe, located at 4061 N Blackstone Avenue, for individuals experiencing homelessness. The agreement term is from July 31, 2025, through December 31, 2026, in an amount not to exceed $2,002,382.75, funded through Encampment Resolution Funds (ERF), Round 3.
2. Provide ERF-3 Outreach Services in the downtown and Blackstone Corridor encampments. The agreement term is from July 31, 2025, through October 31, 2026, in an amount not to exceed $1,507,754.00, also funded through ERF, Round 3.
The City Council is further requested to authorize the City Manager, or designee, to execute all implementing agreements.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to allocate Encampment Resolution Funds (ERF-3) to continue emergency shelter and outreach services that support individuals experiencing unsheltered homelessness.
Following Request for Qualifications (RFQs) issued October 18, 2024 and April 2, 2025 for shelter and outreach services respectively, staff recommends awarding:
• $2,002,382.75 to Poverello House for the 17-month operation of a 30-bed emergency shelter at Clarion Pointe.
• $1,507,754.00 to Poverello House for 15 months of outreach services within the downtown and Blackstone Corridor encampments areas.
Poverello’s proposals were determined to be responsive, cost-effective, and aligned with ERF-3 program goals.
BACKGROUND
On October 29, 2021, The California Interagency Council on Homelessness (Cal ICH) released a Notice of Funding Availability for the ERF-1 Program, designed to support local jurisdictions in addressing the wellness, safety, and long-term housing needs of individuals residing in encampments.
Subsequently:
• December 9, 2021: Council approved the City’s application for ERF-1.
• March 1, 2022: The City was awarded $5,070,057.68 under ERF-1.
• April 28, 2022: Council approved an agreement with Poverello to operate emergency shelter beds at Village of Hope, provide housing support services and assist individuals into permanent affordable housing as part of the Project Downtown Hope.
• February 23, 2023: Council adopted Resolution No. 2023-039 authorizing the submission of an ERF-2 grant application.
• June 14, 2023: The City was awarded $17,000,000 in ERF-2R funding.
• September 28, 2023: An agreement with Poverello in the amount of $9,780,325.71 was executed to operate 90 interim shelter beds at Clarion Point and 65 beds at Village of Hope, along with street outreach, navigation services, and housing stability case management services funded with ERF-2R.
• January 18, 2024: Council adopted Resolution No. 2024-007 authorizing the submission of a grant application for ERF-3.
• April 19, 2024: The City received a $10,926,075.78 ERF-3R Award.
• October 10, 2024: Council approved an amendment with Poverello to utilize $2,001,280.00 in ERF-3R funding to add 30 beds at Clarion Pointe and expand street outreach to the Blackstone Corridor through July 30, 2025.
To implement the next phase of ERF-3:
• An RFQ for the operation of triage centers/emergency shelters and coordination of services was released on October 18, 2024, with five proposals received. A review panel including staff from the City’s Housing and Community Development Department, Homeless Services, Homeless Assistance Response Team (HART) division, and a representative from the City of San Jose evaluated responses based on service delivery, alignment with program goals, and cost effectiveness. Poverello’s proposal was deemed most responsive, with a recommended award of $2,002,382.75.
• An RFQ for outreach 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 $1,507,754.00.
Based on the outcome of both competitive RFQ processes and Poverello’s history of successful service delivery, staff recommends the approval of both service agreements:
• Clarion Pointe ERF-3 30-bed shelter: July 31, 2025 - December 31, 2026
• ERF-3 Outreach Services: July 31, 2025 - October 31, 2026
These programs 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 ERF funds to support the project.
Attachment:
Poverello Service Agreement - Clarion Pointe ERF-3
Poverello Service Agreement - ERF-3 Outreach Services