HomeMy WebLinkAboutStaff Report 2309-20385.Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s
Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A
Project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 16, 2023
Report #:2309-2038
TITLE
Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe
and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
RECOMMENDATION
Staff recommends the City Council to
1)Amend the Fiscal Year 2024 Budget Appropriation for the General Fund (requires 2/3
approval) by:
a.Increasing the Community Services Department Contract Services expense appropriation
by $45,000 for the Human Services Resources Allocation Process (HSRAP); and,
b.Decreasing the Budget Stabilization Reserve by $45,000.
2) Direct the City manager to execute an agreement implementing additional funding of $45,000
for FY 2024-25 HSRAP recipient, Ada’s Cafe.
EXECUTIVE SUMMARY
Approval of this will increase the HSRAP grant award to Ada’s Cafe in the amount of $45,000 for
a total grant of $57,442 for the FY 2024-25 HSRAP process and decreases the Budget Stabilization
Reserve in alignment with Council direction received September 11, 2023. On September 11,
2023, the Human Relations Commission (HRC) presented to Council its recommendation for the
distribution of $200,000 in additional funding for the Human Services Resource Allocation
Process (HSRAP) as approved for Fiscal Years 2024 and 2025.1 The recommendation
1 September 11, 2023, City Council Meeting, Item 9 Accept the Human Relation Commission’s Recommended
Contingency Plan for the Distribution of $200,000 in Additional Funding for the FY2024-25 Human Services
Resource Allocation Process Recipients. Staff Report #:2307-1736.
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82498
would provide funding to twenty-two (22) human services providers serving Palo Alto residents
for the period July 1, 2023 – June 30, 2025. During the discussion time for this agenda item, the
Council voiced its concern that one of the grantees, Ada’s Cafe, was not being funded to the same
level that other applicants were and recommended additional funding in the amount of $45,000
from the Budget Stabilization Reserve for Ada’s Cafe.
BACKGROUND
2 During budget
deliberations, the Council approved an additional allocation of $200,000 for HSRAP. This included
$50,000 in supplemental funding presented in the Proposed FY24 budget and an additional
$150,000 proposed by Council during deliberations; for a total funding investment of $851,035
for FY 2024.
ANALYSIS
Motion: Accept the HRC’s recommended contingency plan for the distribution of
$200,000 in additional fund for FY24-25 HSRAP recipients and direct the City Manager to
execute agreements implementing such funding, and direct staff to return on consent
2 City of Palo Alto Proposed Operating Budget Fiscal Year 2024, CSD Human Service Contracts: Human Services
Resource Allocation Process Contracts, Pages 222-223.
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city-
budget/proposed/city-of-palo-alto-proposed-operating-budget_final.pdf
with an allocation from the BSR of an additional $45,000 for Ada’s Cafe to be administered
consistent with HSRAP Standards. (6-1)3
In total, this would result in a grant to Ada’s Café in the amount of $57,442, with all funding
provided and administered consistent with the HSRAP standards.
FISCAL/RESOURCE IMPACT
Funding in the amount of $45,000 from the Budget Stabilization Reserve will be shifted to the
Community Services Department budget to increase HSRAP funding and specifically fund
recipient Ada’s Cafe. This will bring the total HSRAP funding in FY 2024 to $896,035. An additional
$50,000 also remains in the HSRAP Contingency to fund emergency or critical Human Services
needs that may come up in FY 2024.
This action will leave approximately $53.7 million in the Budget Stabilization Reserve (BSR) or
19.9% of the FY 2024 Adopted Operating Budget, which is slightly below the 20.0% level
recommended to be maintained in FY 2024 for continued economic uncertainty, and above the
18.5% amount of $49.9 million
STAKEHOLDER ENGAGEMENT
The HSRAP contingency plan was discussed at the April 27, 2023 meeting of the Human Relations
Commission. Meeting information was both publicly noticed and sent out to all HSRAP funding
applicants. The Council consideration of the contingency plan on September 11, 2023, was also
publicly noticed and send out to all HSRAP funding recipients.
ENVIRONMENTAL REVIEW
Approval of this action is not a project under the California Environmental Quality Act (CEQA) per
CEQA Guidelines 15061(b)(3).
APPROVED BY:
Kristen O'Kane, Community Services Director
3 September 11, 2023, City Council Meeting Action Minutes, Item 9.
https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=43061