REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: DYLAN MCCULLY, Senior Management Analyst,
Homeless Services Division
SUBJECT
Title
Approve the first amendment to the agreement with Poverello House for Village of Hope Emergency Shelter services increasing funding for tiny home pre-development costs by $75,578.60 for a total amount of $4,738,133.39.
Body
RECOMMENDATION
Staff recommends the City Council approve an amendment to the agreement with Poverello House (Poverello) for Village of Hope Triage Center Emergency Shelter services increasing Encampment Resolution Fund Round 1 (ERF-1) funding by $75,578.60 for a total contract amount of $4,738,133.39, and authorize the City Manager to sign all implementing documents.
EXECUTIVE SUMMARY
The City of Fresno (City) has an existing agreement with Poverello House (Poverello) to provide triage center emergency shelter services at Village of Hope at 412 F Street, funded through ERF-1. This agreement also supports the development of permanent shared housing for those served through the encampment resolution activities. Poverello has incurred necessary pre-development costs associated with the analysis of two potential sites for development of the tiny home shared housing project, a project that is continuing to advance. These costs were not included in the original agreement budget. In order to reimburse these costs, the Department recommends amending the agreement to increase the contract amount by $75,578.60 for pre-development costs for a total contract amount of $4,738,133.39. Cost savings in the ERF-1 grant administration budget will be utilized to offset the pre-development costs.
BACKGROUND
On October 29, 2021, the California Interagency Council on Homelessness issued a Request for Applications for the ERF-1 Program. The ERF-1 Program is designed to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments, including their immediate physical and mental wellness and safety needs arising from unsheltered homelessness and their longer-term needs addressed through a path to safe and stable housing throughout the State.
On December 9, 2021, Council approved the City’s application for funds through the ERF-1 program with the promise that staff would return to Council in early 2022 with a request to accept and appropriate the ERF-1 Program funding if awarded the grant. The City submitted an application and on March 1, 2022, was notified by Cal ICH that it had been awarded an ERF grant in the amount of $5,070,057.68.
On April 28, 2022, Council approved an agreement with Poverello for 65 Triage emergency shelter beds at Village of Hope provided under the Encampment Resolution Funding Program as part of the Project Downtown Hope. In addition to the shelter services provided at Village of Hope through this agreement, Poverello House will purchase prefabricated tiny homes to be utilized as permanent shared housing for those served in the encampment resolution activities. It is anticipated that at least 26 permanent housing units will be made available through these acquisitions. Poverello House will operate these units permanently as shared housing for tenants being provided services through the ERF-1 project.
The recommended amendment will utilize $75,578.60 in ERF-1 grant administration savings to increase the total contract award and authorize the use of ERF-1 funds to support pre-development costs incurred by Poverello associated with the ERF-1 tiny homes development, including construction consulting and site supervision, environmental testing, site planning, and project management.
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
This amendment would be funded through ERF-1 funds that were appropriated to the Planning and Development Department as part of its fiscal year 2024 Budget.
Attachments:
1. First Amendment to the Agreement with Poverello House - Village of Hope
2. Agreement with Poverello House - Village of Hope