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Staff Report.Community Grants PREPARED BY: Ryan Baker Library Director Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 06/01/2021 ITEM NO: 8 DATE: May 24, 2021 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Approve Temporary Changes to the Community Grant Program to Assist Community Organizations with Post-Pandemic Recovery RECOMMENDATION: Approve temporary changes to the community grant program to assist community organizations with post-pandemic recovery. BACKGROUND: The Town has been offering community grants to non-profit organizations for over 30 years. In 2019, Council approved updates to the community grant process to make the program more equitable. In FY 2020/21, the program was funded at $150,000 divided as: $70,000 for the first year of two-year sustaining grants awarded to continue the service work of five human service non-profit community partners (West Valley Community Services, Next Door Solutions to Domestic Violence, Live Oak Senior Nutrition, Counseling and Support Services for Youth, and Live Oak Adult Day Services); $75,000 awarded as 10 grants up to $7,500 each to non-profit organizations as a one-time grant to start a new project, event or service in the categories of arts, education, community service, community vitality, and community events; and the remainder of the funds awarded as small “innovation grants” to community members to initiate work on an idea to benefit the community. DISCUSSION: At the May 18, 2021 Town Council meeting, Council requested staff to explore temporary changes to the FY 2021/22 community grant cycle to best position the program to assist the community with post-pandemic recovery. The Council asked that staff return in June with its recommendation. PAGE 2 OF 2 SUBJECT: Community Grants DATE: May 24, 2021 DISCUSSION (continued): For FY 2021/22, $150,000 from the General Fund is currently in the Proposed Operating Budget. Of this, $70,000 is programmed to fulfill the second year of the sustaining grants to the five previously listed human service non-profit organizations. To best facilitate post pandemic community recovery, staff recommends that the following temporary changes be made to the program for the remaining $80,000 of community grant funds during FY 2021/22 only: 1. Temporarily suspend the innovation grants to community members and direct all funds to non-profit organizations. Reallocate awards as 8 awards funded at $10,000 each. 2. Limit grant availability only to projects or services that have a direct impact on post- pandemic recovery and/or need created as a result of the pandemic. An additional question will be added to the grant application allowing applicants to explain how their proposal directly relates to or supports pandemic recovery for the community. 3. Give priority to qualified applications for organizations that do not receive Town funding for projects through other means, excluding contracted services. The application will be modified to ask applicants to identify funds received by the Town. CONCLUSION: Assuming the Budget is adopted on June 1, community grant applications are slated to open June 4, 2021 with a deadline of July 9, 2021. Awards are expected to be announced by July 30, 2021. Changes made to the process at the June 1, 2021 Council meeting are not expected to impact this timeline. As the Council has future deliberations on the use of remaining American Rescue Plan Act (ARPA) funds, the Council may choose to do another round of community grants later in FY 21/22 using a portion of the ARPA funds. FISCAL IMPACT: Funding amounts identified are already included in the proposed FY 2021/22 budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.