REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, AICP, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: CRYSTAL SILVA, Senior Management Analyst
Homeless Services Division
SUBJECT
Title
Actions pertaining to Emergency Shelter operations provided by Elevate Community Services (Elevate) under the Homeless Housing, Assistance and Prevention (HHAP) program.
1. Approve the First Amendment to the agreement with Elevate for emergency shelter operations at Valley Inn, located at 933 N. Parkway Drive. The amended agreement term is from January 1, 2026, through June 30, 2026, in an amount not to exceed $1,073,879.00, funded through the HHAP program. (Council District 3) (Bid File No. 12500851)
2. Approve a Service Agreement with Elevate for emergency shelter operations at Travel Inn, located at 1444 W. White Avenue. The agreement term is from January 1, 2026, through December 31, 2026, in an amount not to exceed $2,231,579.65, funded through the HHAP program. (Council District 3) (Bid File No. 12500851)
Body
RECOMMENDATION
Staff recommends that the City Council approve the First Amendment to the agreement with Elevate for emergency shelter operations at Valley Inn in an amount not to exceed $1,073,879.00 and approve the Service Agreement with Elevate for emergency shelter operations at Travel Inn in an amount not to exceed $2,231,579.65, and authorize the City Manager, or designee, to sign all implementing agreements.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to award funding to Elevate for emergency shelter services as part of the HHAP program requirements. Staff issued a Request for Qualifications (RFQ) on October 18, 2024, resulting in the submission of five (5) proposals and all five (5) were deemed qualified. Based on the evaluation completed by the selection panel, staff recommends a total allocation of $3,305,458.65 to Elevate for emergency shelter operations at Travel Inn and Valley Inn. The proposed Valley Inn Amendment will provide shelter services through June 30, 2026, and the Travel Inn agreement will provide shelter services through December 31, 2026.
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 outreach services, 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. By the December 17, 2024, deadline, the City received five proposals, all of which were deemed qualified.
A selection panel, comprised 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 City of San Jose, evaluated the proposals. Evaluation criteria included the ability to meet service requirements, adherence to RFQ terms and conditions, cost efficiency, past performance, and related qualifications.
Although the City initially selected another organization to operate Valley Inn, that organization ultimately declined to move forward with a contract during negotiations. As a result, the City re-engaged all qualified respondents. Elevate Community Services and one other organization submitted proposals for Valley Inn, with Elevate’s proposal determined to be the most responsive and aligned with the City’s operational goals.
Based on the evaluation, staff recommends:
Extending the agreement with Elevate for continued operation at Valley Inn through June 30, 2026, in an amount not to exceed $1,073,879.00.
Awarding Elevate as the operator of the Travel Inn emergency shelter from January 1, 2026, through December 31, 2026, in an amount not to exceed $2,231,579.65.
Approval of these agreements will enable continued operation of these shelters through periods that align with expectations of funding to convert them to housing.
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:
First Amendment to Elevate Service Agreement - Valley Inn
Elevate Service Agreement - Valley Inn
Elevate Service Agreement - Travel Inn