HomeMy WebLinkAboutStaff Report 2510-5331CITY OF PALO ALTO
CITY COUNCIL
Monday, December 15, 2025
Council Chambers & Hybrid
4:30 PM
Agenda Item
22.Approval of Amendment #1 for Professional Services Contract No. C26195143 in the
Amount of $101,292 with Peninsula Healthcare Connection to continue the Downtown
Food Closet Operations for a Revised Total Amount Not-to-Exceed $268,521 including
the Provision of Outreach, Mental and Physical healthcare to Unhoused and Low-Income
Members of the Community for a Period of Two Years; CEQA status – not a project.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: December 15, 2025
Report #:2510-5331
TITLE
Approval of Amendment #1 for Professional Services Contract No. C26195143 in the Amount of
$101,292 with Peninsula Healthcare Connection to continue the Downtown Food Closet
Operations for a Revised Total Amount Not-to-Exceed $268,521 including the Provision of
Outreach, Mental and Physical healthcare to Unhoused and Low-Income Members of the
Community for a Period of Two Years; CEQA status – not a project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or his designee
to execute Amendment #1 to Contract No. C26195143 with Peninsula Healthcare Connection
(Attachment A) in an amount not-to-exceed $101,292 for additional services for the operation
of the Downtown Food Closet for unhoused and low-income members of the community for a
term of two years. This amendment results in a revised total contract not-to-exceed amount of
$268,521.
BACKGROUND
The Human Services Resource Allocation Process (HSRAP) serves as the City’s primary
mechanism for soliciting, reviewing, and allocating General Fund dollars to human service
organizations. Proposals for the current two-year grant cycle (July 1, 2025 – June 30, 2027)
were submitted in January 2025. An ad hoc subcommittee of the Human Relations Commission
(HRC) evaluated the proposals in February 2025 and developed funding recommendations,
which were subsequently reviewed and approved by the full HRC in March 2025. The
Commission’s recommendations were incorporated into the City’s proposed FY 2026 Operating
Budget, which the City Council adopted in June 2025. The adopted FY 2026 budget includes a
HSRAP grant to Downtown Streets Team1 that included operational support for the Downtown
Food Closet.
ANALYSIS
2 was awarded a HSRAP contract for the period of July 1, 2025,
through June 30, 2027 to provide outreach, mental and physical healthcare to unhoused and
low-income members of the community. Given the importance of maintaining uninterrupted
food services for vulnerable populations, City staff is recommending that the remaining
unspent grant funds previously allocated to DST for Food Closet operations be reallocated to
PHC to support ongoing and future operational needs at the site. For FY 2026, that amount is
$42,930. As PHC will continue to perform this service, it is anticipated that in year two PHC will
be allocated the portion of prior DST HSRAP funding dedicated to Food Closet operations. As a
standard, HSRAP grantee contracts include additional funding authority in year two of the
contract that is subject to City Council appropriation through the annual budget process.
1 Downtown Streets Team, provide outreach services and operate a food closet for unhoused and low-income
individuals through HSRAP, Contract #C26195134; https://www.paloalto.gov/files/assets/public/v/1/community-
services/human-services/grant-programs/downtown-streets-team-hsrap-contract-c26195134_executed.pdf
2 Peninsula Healthcare Connection, provide outreach and mental/physical healthcare to unhoused and low-income
individuals through HSRAP, Contract #C26195143; https://www.paloalto.gov/files/assets/public/v/1/community-
services/human-services/grant-programs/peninsula-healthcare-connection-hsrap-contract-
c26195143_executed.pdf
An exemption from competitive solicitation per Palo Alto Municipal Code 2.230.360(b2)
(impracticality to solicit) was approved by the City Manager.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Vers.: Aug. 5, 2019
Page 1 of 10
AMENDMENT NO. 1 TO CONTRACT NO. C26195143
BETWEEN THE CITY OF PALO ALTO AND
PENINSULA HEALTHCARE CONNECTION
This Amendment No. 1 (this “Amendment”) to Contract No. C26195143 (the “Contract”
as defined below) is entered into as of November 24, 2025, by and between the CITY OF PALO
ALTO, a California chartered municipal corporation (“CITY”), and PENINSULA HEALTHCARE
CONNECTION, a corporation duly organized and existing under the Nonprofit Corporation Law of
the State of California, located at 1671 The Alameda, Suite 306, San Jose, CA 95126
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of outreach services for triage health community outreach for unhoused
individuals in the community, as detailed therein.
B. The Parties now wish to amend the Contract in order to expand the scope of
services to include the provision of a food closet for unhoused and low income residents and
increase compensation. The not-to-exceed amount for FY26 will increase by Forty-Two Thousand
Nine Hundred Thirty Dollars ($42,930.00), from Seventy-Seven Thousand Seven Hundred Eighty-
One Dollars ($77,781.00), to a total of One Hundred Twenty Thousand Seven Hundred Eleven
Dollars ($120,711.00). The not-to-exceed amount for FY26 will increase by Fifty Thousand Seven
Hundred Fourty-Nine Dollars ($50,749.00), from Seventy-Seven Thousand Seven Hundred Eighty-
One Dollars ($77,781.00), to a total of One Hundred Twenty-Eight Thousand Five Hundred Thirty
Dollars ($128,530.00). The additional funds in Section 5.1.2 increase from Eleven Thousand, Six
Hundred Sixty-Seven Dollars ($11,667.00) to Nineteen Thousand Two Hundred Eighty Dollars
($19,280.00), which is 15% of the second-year consideration. The new total contract not-to-
exceed compensation amount is Two Hundred Sixty-Eight Thousand Five Hundred Twenty-One
Dollars ($268,521.00). The increased funding is reallocated from Downtown Streets Team, which
ceased operations on October 31, 2025, and relinquished the remainder of its Human Services
Resource Allocation Process (HSRPA) contract (PO C26195134).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C26195143
between CONSULTANT and CITY, dated July 1, 2025.
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 2 of 10
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 5.1 “COMPENSATION” of the Contract is hereby amended to read as
follows:
In consideration of the full performance of this Contract, CITY will compensate
CONSULTANT in the amount not-to-exceed Two Hundred Sixty-Eight Thousand Five Hundred
Twenty-One Dollars ($268,521.00) as follows, all subject to the provisions of 17.12 of this
Contract:
SECTION 3. Section 5.1.1 “COMPENSATION” of the Contract is hereby amended to read
as follows:
In consideration of the full performance of the Basic Services in Exhibit “A” to this
Contract, including any authorized reimbursable expense, CITY will pay CONSULTANT a fee not
to exceed One Hundred Twenty Thousand Seven Hundred Eleven Dollars ($120,711.00) for the
first contract year (City’s Fiscal Year “FY” 2026, July 1, 2025, through June 30, 2026) subject to
Section 17.12 of this Contract.
SECTION 4. Section 5.1.2 “COMPENSATION” of the Contract is hereby amended to read
as follows:
In consideration of the full performance of the Basic Services in Exhibit “A” to this Contract
for the second contract year (FY 2027), including any authorized reimbursable expenses, CITY will
pay CONSULTANT a fee not to exceed One Hundred Twenty-Eight Thousand Five Hundred Thirty
Dollars ($128,530.00) subject to Section 17.12 of this Contract. At CITY’s sole option, City may
authorize additional funds of up to Nineteen Thousand Two Hundred Eighty Dollars ($19,280.00),
which is 15% of the second-year consideration, subject to Section 17.12, to be used for the
purposes of providing additional Basic Services under this Contract consistent with the additional
funds provided.
SECTION 5. The following exhibits to the Contract are hereby amended, as indicated
below, to read as set forth in the attachments to this Amendment, which are hereby incorporated
in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF PROGRAM SERVICES: AMENDMENT 1”,
REPLACES PREVIOUS.
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 3 of 10
b. Exhibit “B” entitled “CONTRACT BUDGET: AMENDMENT 1”, REPLACES
PREVIOUS.
c. Exhibit “D” entitled “PROGRAM POSITIONS/SALARIES: AMENDMENT 1”,
REPLACES PREVIOUS.
SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
//
//
//
//
//
//
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 4 of 10
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
Date:
APPROVED:
______________________________
Director of Community Services
APPROVED AS TO CONTENT:
______________________________
Manager of Human Services
Community Services Department
APPROVED AS TO FORM:
______________________________
Deputy City Attorney
PENINSULA HEALTHCARE
CONNECTION
By:
Name:
Title:
Date:
Attachments:
EXHIBIT “A”: SCOPE OF PROGRAM SERVICES: AMENDMENT 1
EXHIBIT “B”: CONTRACT BUDGET: AMENDMENT 1
EXHIBIT “D”: PROGRAM POSITIONS/SALARIES: AMENDMENT 1
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
11/21/2025
Eileen Richardson
CEO and President
Vers.: Aug. 5, 2019
Page 5 of 10
EXHIBIT “A”
Peninsula Healthcare Connection
FY26-27 SCOPE OF PROGRAM SERVICES
AMENDMENT 1
I PROGRAM SERVICES
CONSULTANT shall provide Outreach Services, Mental Health/Wellbeing Support
Groups, Health Education Workshops, Health Screenings, Street Medicine Visits,
navigation services and Harm Reduction supply distribution to low-income and
unhoused members of the community. CONSULTANT shall operate a food closet for
the provision of nutritional support to low-income and unhoused individuals.
II. CONSULTANT’S PROGRAM GOALS (per fiscal year)
Goal 1: Improve Mental Health and Personal Wellbeing
Strategies:
• Facilitate group-based support and education for individuals experiencing mental
health challenges.
• Provide targeted mental health workshops to address specific stressors and coping
mechanisms.
• Increase access to mental health resources through direct outreach.
Objectives:
1.1 Facilitate 8 monthly Seeking Safety groups to provide structured, evidence-based
support.
1.2 Deliver 4 mental health workshops on topics such as stress relief, boundaries, and
health beliefs.
1.3 Distribute mental health resource information cards to 114 community members.
1.4 50% of attendees will engage directly with the navigator to discuss the resources
shared on the card, receiving personalized guidance on accessing services and
navigating available support options
Outcomes:
• Participants in Seeking Safety groups will demonstrate increased coping skills, as
measured by pre- and post-session surveys.
• Community workshop attendees will report a better understanding of stress
management strategies as measured by pre- and post-session surveys.
Goal 2: Enhance Physical Health and Wellbeing
Strategies:
• Conduct preventive health screenings and education in accessible community
locations.
• Implement street medicine initiatives to serve the unhoused and at-risk individuals
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 6 of 10
in their environment.
• Distribute harm-reduction tools to reduce overdose risks and promote safety.
Objectives:
2.1 Conduct 18 community blood pressure screening clinics.
2.2 Provide health education to at least 57 community members, with interactions
lasting a minimum of 5 minutes.
2.3 Conduct 7 street medicine visits annually to directly serve unhoused individuals.
2.4 Distribute 76 units of Narcan and 76 units of fentanyl test strips to community
members and partners.
Outcomes:
• Increased awareness and education about blood pressure resources, as measured
by the number of individuals who visit the clinic for blood pressure management
following street medicine interactions and referrals.
• Participants will be trained on the proper use of Narcan and will demonstrate their
ability to administer it effectively. Additionally, they will be asked to report to
clinic staff the number of overdoses they have helped prevent using Narcan.
• Group participants receiving health education will gain tools and training to
identify at least one actionable step to improve their physical health.
Goal 3: Increase Healthcare Accessibility and Access
Strategies:
• Conduct direct outreach to connect vulnerable individuals with health resources
and hygiene supplies.
• Offer drop-in support for public benefit enrollments and healthcare navigation at
resource centers.
• Empower individuals to make and attend healthcare appointments.
• Ensure the KKRC Resource Center maintains accessible hours for drop-in
enrollment in CalFresh, Medi-Cal, VISPDAT surveys, and other community
resources.
• Equip staff to assist with making healthcare appointments and provide educational
resources to patients.
Objectives:
3.1 Conduct outreach to 114 vulnerable individuals, providing clinic information,
hygiene kits, and other necessary supplies.
3.2 At least 11 outreach clients will be linked to care services through a navigator,
reflecting the intensive time investment required to provide individualized
navigation.
3.3 At least 38 community support referrals will be provided during drop-in hours,
tracked through the referral log.
Outcomes:
• Participants utilizing healthcare navigation services will report accessing at least
one service.
• These strategies will reduce systemic barriers and improve healthcare access for
underserved clients by meeting them where they are, building trust, and providing
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 7 of 10
personalized support—ultimately leading to better health outcomes and increased
self- sufficiency.
Goal 4: Sustain and strengthen the Food Closet as a vital access point for essential
nutrition and basic needs.
Strategy: Maintain reliable weekly food distribution, leveraging Peninsula Healthcare
Connection’s administrative infrastructure to ensure consistent operations, inventory
management, and coordination with volunteers and community partners.
Objectives:
4.1 Serve approximately 900 unduplicated client visits.
4.2 Track and report both duplicated and unduplicated counts once full-year data are
available through Peninsula Healthcare Connection’s intake system, to confirm
service outreach and trends.
4.3 Maintain a 95% service continuity rate (no unplanned closures) through proactive
supply management of essentials such as food bags, gloves, and sanitation items.
4.4 Conduct quarterly inventory and safety audits to ensure compliance with health
standards and operational efficiency.
Outcomes: The Food Closet continues operating as a central, trusted resource addressing
food insecurity for low-income and unhoused community members while connecting
them to Peninsula Healthcare Connection healthcare and housing support services.
Goal 5: Employ and empower a staff member with lived experience to manage Food
Closet operations and build community connection.
Strategy: Retain and support one part-time staff member with lived experience of
homelessness or food insecurity to manage day-to-day Food Closet operations, ensuring
consistent service, authentic engagement, and a trusted presence for clients.
Objectives:
5.1 Employ a part-time (20 hrs/week) Food Closet Coordinator with lived experience
to manage operations, supervise volunteers, and interface with Peninsula
Healthcare Connection staff.
5.2 Provide ongoing supervision and training through PHC’s management team, with
biannual professional development check-ins.
5.3 Recruit and retain at least 8–10 active volunteers per quarter to assist with
distribution, setup, and inventory.
5.4 Develop a simple volunteer tracking log to capture engagement hours and
retention.
Outcomes: By centering lived experience, the Food Closet strengthens community trust,
dignity, and workforce inclusion, while ensuring consistent, empathetic service delivery.
Goal 6: Integrate “Food as Medicine” within Peninsula Healthcare Connection’s
holistic care model.
Strategy: Collaborate across PHC’s clinic, outreach, and case management teams to make
food distribution an intentional part of care coordination and client stabilization.
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 8 of 10
Objectives:
6.1 Establish a referral system linking PHC healthcare and outreach staff with Food
Closet services by March 2026.
6.2 Pilot at least one partnership (e.g., with a shelter, clinic, or community nutrition
program) to connect food access to health outcomes by June 2026.
6.3 Track client referrals and follow-ups quarterly to assess when Food Closet access
contributes to improved health stability or reduced emergency service utilization.
6.4 Document three case studies annually highlighting how nutritional support has
enhanced client wellbeing and engagement in care.
Outcomes: By aligning food distribution with PHC’s healthcare services, the Food Closet
advances PHC’s person-centered care model, addressing nutrition, housing, and health as
interconnected pathways to stability and recovery.
III. CONSULTANT’S DELIVERABLES
CONSULTANT shall provide semiannual activity reports relating to this Scope of
Program Services for the periods ending December 31, 2025, June 30, 2026, December
31, 2026, and June 30, 2027, within thirty days after these dates.
Each report shall cover the preceding six months and other such information as the
Program Manager may request. The final report shall focus on the preceding six months
and also shall provide information on contract services for the entire year. Each report
shall be prepared in the form agreed upon by the Program Manager and the
CONSULTANT.
As part of its responsibilities under this Scope of Services, CONSULTANT is expected
to participate in surveys, assessments, and other information-gathering activities as
requested by the CITY, for the purpose of identifying and understanding client and
organizational needs in Palo Alto.
IV TIME SCHEDULE
Services shall run through the term of this Contract.
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 9 of 10
EXHIBIT “B”
Peninsula Healthcare Connection
FY2026-27 CONTRACT BUDGET
AMENDMENT 1
Salaries $70,710.00
(computer hardware/software)
TOTAL CONTRACT BUDGET $120,711.00
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE
Vers.: Aug. 5, 2019
Page 10 of 10
EXHIBIT “D”
Peninsula Healthcare Connection
PROGRAM POSITIONS/SALARIES
AMENDMENT 1
Program or
Administrative Position
Physical and Mental Health
Salaries
(per fiscal year)
Food Closet Salaries
(per fiscal year)
TOTAL $70,710.00 $38,013.00
Docusign Envelope ID: A0695A60-B37B-4D8A-A0CF-0DD39CA4B6EE