Loading...
HomeMy WebLinkAboutStaff Report 2608-6685CITY OF PALO ALTO Policy & Services Committee Special Meeting Tuesday, September 08, 2026 6:00 PM     Agenda Item     1.Recommend that City Council approve the HSRAP Grant Program expansion Staff Presentation Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: September 8, 2026 Report #:2608-6685 TITLE Recommend that City Council approve the HSRAP Grant Program expansion RECOMMENDATION Staff recommends that the Policy & Services Committee, with feedback from the Human Relations Commission (HRC), recommend Council approve the Human Services Resource Allocation Process (HSRAP) grant program expansion and associated funding levels and timeframe. EXECUTIVE SUMMARY Policy & Services/HRC Joint Meeting Purpose Outcomes The purpose of the joint meeting is to facilitate a discussion on the proposed community-wide grants, focused on policy guardrails that will make the expansion clear, fair and administrable. A proposed agenda and key questions include: Who should the expansion serve? Define and recommend broader community-wide priorities for Council consideration (e.g., arts and culture, environment and sustainability, economic vibrancy) Evaluation rubric Confirm clear governance roles (HRC, P&S, FC, Council) Confirm recommended funding approach Expansion success metrics – what would we consider a success for the proposed expansion Following the discussion, the Policy & Services Committee will deliberate and make a formal recommendation to the City Council. BACKGROUND 1 the City Council reviewed the purpose of the NPW Phase I pilot and discussed potential improvements for FY 2027. As part of that discussion, staff presented an inventory of nonprofit grants and service agreements over $10,000 to provide a broader overview of City funding relationships with nonprofit organizations beyond NPW Phase I grants. The inventory illustrated the range and complexity of those relationships, which total approximately $6.6 million in FY 2027 across multiple funding sources. The Council discussion generally reflected interest in a transparent, equitable, and consistent framework for nonprofit funding, including clearer guidance regarding how different types of nonprofit requests should be categorized, reviewed, and funded. Multiyear service agreements are a significant body of work that will be brought to the Committee later this fiscal year. 2 Council also recognized the City’s fiscal constraints, including projected FY 2027 budget pressures. In that context, Council supported proceeding without the NPW Phase I grant process and funding in FY 2027 and indicated that grant and award funding should, where appropriate, be considered through HSRAP. Council also acknowledged that some nonprofit requests considered through Phase I may not fit within current HSRAP eligibility criteria and expressed interest in evaluating whether HSRAP funding levels, eligibility, or scope should be modified to address this in the future. 1 April 6, 2026 City Council Meeting: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87042&dbid=0&repo=PaloAlto 2 May 11, 2026 City Council Meeting: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=88043&dbid=0&repo=PaloAlto On August 11, 2026,5 the Policy & Services Committee provided feedback on a proposed process to expand HSRAP, including funding levels and scope. Below is a description of the revised grant expansion process for discussion with the HRC and, ultimately, for a recommendation to Council. ANALYSIS HSRAP Expansion 5 August 11, 2026 Policy & Services Committee Meeting: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=897064&dbid=0&repo=PaloAlto The single application process is key to avoiding nonprofit confusion as to which funding path to apply. When applications are received, staff will sort through applications that meet the priority needs grants and those that would fit under the community-wide grants. Likewise, the evaluation criteria will not change for both funding paths with the differentiating factor being whether the application meets the priority of needs. Evaluation considerations which are currently defined by the HSRAP process include: Demonstrated community need from the needs assessment or other credible evidence; Palo Alto resident benefit; Non-duplication of City-funded services or another funding mechanism; Clear public value—e.g., equity, reach, coordination, prevention/early intervention, or improved outcomes; Organizational readiness, realistic budget and timeline, and measurable outcomes. HSRAP Expansion Funding Options HSRAP Priority Needs Grants 7 Given the City’s projected financial constraints, staff recommends maintaining the existing HSRAP funding practices, with annual CPI adjustments. For the FY 2028-29 funding cycle, staff anticipates recommending Council approval of $998,992 in FY 2028 and $1,027,620 in FY 2029. HRAP Community-wide Grants 7 FY 2026 Nonprofit Service Agreements, Page 9: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=87042&dbid=0&repo=PaloAlto 27) HSRAP recipients also awarded Phase I funds, additional Council priority direct allocations, and “Other” category summarized in the table below. The $305,000 recommendation includes the Additional FY 2027 Direct Allocations ($235,000) and the Other ($70,000) categories, as these would be considered requests outside of an established process at the time these were awarded. The organizations listed below are listed to show how the funding was previously allocated and does not indicate the assumption of future grant awards (with the exception of the Ongoing Appropriations groups). Nonprofit Ongoing Appropriations FY26-27 HSRAP Recipients Additional FY27 Direct Allocations Other Ada’s Cafe $10,000 CalAve Events $40,000 Children’s Health Council $10,000 Environmental Volunteers $10,780 JobTrain $45,000 Karat School Project $20,000 LifeMoves $48,366 Magical Bridge $150,000 Momentum for Health $15,000 Musical Memories $5,000 Neighbors Abroad $17,500 Palo Alto PTA $5,000 Pathwise $15,000 Peninsula Healthcare $20,000 UNAFF $45,000 YCS/YCI $50,000 Total $78,280 $123,366 $235,000 $70,000 $504,646 expansion, including how the expanded applicant pool would be evaluated and incorporated into the City’s broader human services funding framework. Month Proposed HSRAP Expansion Key Milestones August P&S to discuss HSRAP expansion opportunities Survey nonprofits & clients on human service needs September October HRC sets Priority of Needs Council to approve HSRAP expansion funding levels and sets HSRAP community-wide grant priorities November Nonprofit engagement on HSRAP expansion process Application period opens December January February March April May P&S reviews HRC award recommendations Finance Committee review overall budget allocations June FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: September 8, 2026 www.paloalto.gov Policy & Services and HRC Joint Special Meeting:HSRAP Grant Program Expansion Lupita Alamos, Assistant to the City Manager Sophie Pigman, Human Services Manager 2 Joint P&S and HRC Meeting Outcomes HSRAP Community-wide Grants Expansion Purpose: Discussion on the proposed community-wide grants expansion, focused on policy guardrails that will make the expansion clear, fair, and administrable. •Who should the expansion serve? Define and recommend broader community- wide focus for Council consideration •Review evaluation rubric •Clarify governance roles (HRC, P&S, FC, Council) •Recommend a funding approach •Set expansion success metrics/debrief FY 2027 Nonprofit Funding Level: •Suspended Nonprofit Partnership Workplan Phase I grant process in FY 2027 •FY 2027 Budget Direct Allocations (Ongoing) = $78,280 •FY 2027 Additional Direct Allocations = $235,000 •Policy & Services Committee to consider HSRAP expansion 3 City Council Direction New additional, limited funding path for nonprofit community-wide grants. •Ensures that all nonprofit requests are handled through a clear, transparent and predictable process (not during budget adoption process). 4 HSRAP Expansion: One Process, Two Funding Lanes Priority Needs Grants Community-wide Grants Original model. No proposed changes or reduction in funding. •Award recommendations based on alignment with Priority of Needs, for vulnerable populations. HS R A P •Responsive, complete proposals: Applications must meet RFP requirements and align with City priorities for FY 2026–27. •Clear benefit to Palo Alto residents: Proposals should demonstrate who will be served, with attention to diverse, vulnerable, and underserved populations. •Strong, accessible service model: Organizations must show relevant experience, an effective service approach, and services that are accessible and affordable. •Measurable community impact: Proposals should demonstrate meaningful outcomes for clients and benefits to the broader Palo Alto community. •Organizational capacity and sustainability: Evaluation considers qualified staffing, sound administration, diversified funding, and prior performance with the City, where applicable. Highest-weighted areas:Service methodology/experience and demonstrated client and community impact. 5 Current HSRAP Evaluation Criteria Proposal responsiveness Completeness of proposal and required documents 5% Alignment with City priorities Addresses an identified FY 2026–27 Priority of Need 5% Palo Alto resident benefit and equity Benefit to Palo Alto residents; outreach to diverse, vulnerable, and underserved populations 20% Financial sustainability Diversified funding and non-City support 10% Program design and service delivery Needs assessment; service methodology and experience; accessibility and affordability 35% Outcomes and community impact Benefits and impact for clients and the Palo Alto community 15% Organizational capacity and City performance Administrative/staffing capacity; prior performance with the City 10% Total 100% 6 Current HSRAP Evaluation Criteria Staff recommends keeping existing HSRAP funding methodology. •On average City funds 78% of HSRAP funding requests •HSRAP is one of many ways in which the City supports nonprofit partnerships. In FY27 about $6 million will support contracts for service and grants. •HSRAP funding level increases annually through CPI adjustments. Funding in FY 2028 anticipates City Council approval of $998,992 and $1,027,620 in FY 2029. •HSRAP funding is augmented annually by the $50,000 Emerging Needs Fund. 7 HSRAP Priority of Needs Funding Recommendation 8 Preliminary Results of Community Needs Survey FY25-FY27 Priority Needs Provider Survey- Top ID Needs Client Survey- Top ID Needs Homelessness services Affordable housing / housing stabilization Social connection or sense of belonging Housing support services Mental health care Youth activities or youth support Services for individuals who are disabled Food and nutrition assistance Older-adult support Older adults and their caregivers services Older-adult services Transportation Youth and their caregivers services Social connection / isolation reduction Housing Food & nutrition services Homelessness outreach, shelter, or rehousing Mental health care Mental & physical health services 9 Total Funding for HSRAP Expansion Nonprofit Workplan Process Nonprofit Ongoing Appropriations – In Dept Budget Existing HSRAP Recipients One-Time Direct Council Allocation in FY26 Budget Remainder of FY26 Nonprofit Workplan Recipients Ada’s Cafe $10,000 Cal Ave Events $40,000 Children’s Health Council $10,000 Environmental Volunteers $10,780 JobTrain $45,000 Karat School Project $20,000 LifeMoves $48,366 Magical Bridge $150,000 Momentum for Health $15,000 Musical Memories $5,000 Neighbors Abroad $17,500 Palo Alto PTA $5,000 Pathwise $15,000 Peninsula Healthcare $20,000 UNAFF $45,000 YCS/YCI $50,000 Total $78,280 $123,366 $235,000 $70,000 $504,646 Staff recommends $305,000 annually for the HSRAP expansion; allocations below are from FY26 and are only for context. 10 Recommendations on Governance Roles Entity/Body Recommended Role Human Relations Commission (HRC)Review applications and recommend awards using published criteria Policy & Services Committee Provide policy oversight; review HRC recommendations, especially expanded-lane awards and programmatic implications Finance Committee Consider total appropriations and fiscal tradeoffs through the annual budget process City Council Approve funding levels and final awards Staff Administer RFP, verify eligibility, conduct technical review, support applicants 9 11 HSRAP Expansion Timeline Month Proposed HSRAP Expansion Key Milestones August •P&S to discuss HSRAP expansion opportunities •Survey nonprofits & clients on human service needs September Joint P&S/HRC meeting on HSRAP expansion feedback October •HRC sets Priority of Needs •City Council to approve HSRAP expansion funding levels and sets HSRAP community-wide grant priorities November •Nonprofit engagement on HSRAP expansion process •Application period opens December January Application period closes February March Review committee evaluates applications April HRC reviews and recommends awards May •P&S reviews HRC award recommendations •Finance Committee review overall budget allocations June City Council approves all HSRAP awards 11 Recommendation That Policy & Services: •Recommend to the City Council to approve the HSRAP grant program expansion •Define and recommend priorities for community-wide grants, funding allocation, and general feedback on expansion considerations Lupita Alamos, Assistant to the City Manager Sophie Pigman, Human Services Manager lupita.alamos@paloalto.gov September 8, 2026