City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: June 9, 2025
Report #:2505-4654
TITLE
Approval of a Professional Services Contract No. C26193873 with Avenidas, Inc. in an Amount Not-to-Exceed $3,186,528 for Provision of Comprehensive Services to Older Adults for a Term of Five Years; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the Council authorize the City Manager or their designee to execute Contract No. C26193873 with Avenidas Inc., (Avenidas) for the provision of comprehensive services to older adults, their families and caregivers in Palo Alto for a contract term of five years and a total not to exceed $3,186,528.
EXECUTIVE SUMMARY
This contract (Attachment A) supports the provision of comprehensive services to older adults in the community by Avenidas, Inc. The diverse services supported by this contract include information & referral services, adult day health services, case management, counseling, support groups, health screening, volunteer opportunities, classes and workshops, transportation assistance, provision of routine health maintenance, provision of services that assist older adults in being able to live safely and independently as a long as possible in their own homes, among other services.
An exemption from competitive solicitation per Palo Alto Municipal Code section 2.30.360(d) was approved by the City Manager or their designee.
BACKGROUND
Senior services in Palo Alto have long been provided by a nonprofit partner. The historical relationship between the City and Avenidas (previously the Senior Coordinating Council-SCC) extends over 40 years and is summarized below. Several significant events and changes occurred during this time period including:
•In 1971, the City established Senior Adult Services based on a study by the Senior Coordinating Council (SCC), expanding services in the following years. •The City funded SCC programs (Senior Day Health, Home Repair) and its own services prior to the establishment of the Senior Center.
•The City offered SCC the Old Police/Fire Station for $1/year, contingent on SCC raising $1.2 million for renovations, and committed to operating support. •In 1978, the City transferred its Senior Adult Services to SCC and began funding Senior Center operations.
•SCC agreed to seek community and non-City funding as part of its service agreement. •SCC rebranded as Avenidas in 1996.
•In May 2014 (FY2015), Council approved direct contracts with Avenidas and PACCC, removing them from the HSRAP review process, with FY2016–FY2020 being the first contract term.
•In 2014, Avenidas requested and received a new 50-year lease (expiring in 2064) for major rehabilitation and facility upgrades.
•Avenidas re-opened in April 2019 after a $20M renovation, with $5M contributed by the City.
•The current contract for senior services (C21178949) runs from July 1, 2020, to June 30, 2025, and was approved on November 9, 2020.1
Avenidas was removed from the HSRAP process in May 2014 and entered into separate professional service contract with five-year terms. Contract amounts have steadily increased to reflect CPI increases, which was applied when funding was available. The table below summarizes these contracts.
Contract Term Contract Amount
FY2016-FY2020 $2,394,566
FY2021-FY2025 $2,740,467
Avenidas is the only provider of comprehensive services to older adults in the community with sufficient capacity and experience to perform the services requested and the City maintains a 50-year lease with the service provider at 450 Bryant St. as noted above and authorized substantial investment in the facility, justifying award as a sole source contract and exempt 1 City Council, November 9, 2020; Summary Minutes, Item 8; https://portal.laserfiche.com/Portal/DocView.aspx?id=1142&repo=r-704298fc from solicitation. An exemption from competitive solicitation per Palo Alto Municipal Code section 2.30.360(d) was approved by the City Manager.
Staff conducted a review of service providers that included: (1) evaluating services offered by known organizations such as the Family YMCA and Oshman Family Jewish Community Center (JCC); (2) conducting an internet search for additional providers; and (3) reviewing Living Well – A Resource Guide for Adults 50+ by Palo Alto Weekly, which is a thorough guide for local senior services.
Findings indicate that while both the YMCA and JCC offer some senior-focused programs— primarily fitness-related—they do not provide the full range of services the City seeks. The YMCA offers one older adult class daily and a twice-weekly Parkinson’s class. The JCC offers limited senior-specific programs, such as occasional trips and a men’s group, but no dedicated fitness classes for older adults. Other available services are primarily for residents of senior care facilities or are located outside Palo Alto. As such, staff confirms that Avenidas remains the only local organization providing comprehensive senior services.
Recognizing that the City Council is currently in the process of developing a Nonprofit Workplan on how to manage nonprofit partnerships, this contract aligns with the standards for nonprofit contracts as listed in the 2022 Nonprofit Agreement Risk Management Review Audit Recommendations.2 This includes ensuring that nonprofit contracts define specific service levels, goals and objectives, and reporting requirements. This contract will be closely monitored by staff in the Office of Human Services (OHS), including review of semi-annual reports and payment requests. Additionally, on a biennial basis, Avenidas will submit a copy of an independent financial audit and OHS staff will conduct a status review of Avenidas’ agreed- upon performance indicators that may include a site visit.
ANALYSIS
According to U.S. Census American Community Survey data,3 20.4% of Palo Alto residents were above the age of 65 in 2023, a sizable demographic in the community. In all surrounding communities, comprehensive older adult services are provided in city operated senior centers.
As detailed at the beginning of the background section, the City of Palo Alto made a conscious decision in 1978 to transfer older adult services to Avenidas and provided initial funding for the operation of the senior center. Since that time, the City has provided funding to Avenidas (presently 7% of their total operating budget) to assist with the provision of comprehensive services to older adults in Palo Alto and been authorized to operate out of the City’s facility at 2 Policy and Services Committee, June 14, 2022; Item 1; https://portal.laserfiche.com/Portal/DocView.aspx?id=30868&repo=r-704298fc 3 U.S. Census American Community Survey 2023;
https://data.census.gov/profile/Palo_Alto_city,_California?g=160XX00US0655282 450 Bryant Street.
Avenidas is an important service provider in our community. The older adults in our community have access to dynamic and extensive programming at their three service locations:
Avenidas at 450 Bryant Street; Avenidas Chinese Community Center at Cubberley, and Avenidas Rose Kleiner Center in Mountain View.
The 2025-2030 contract for the provision of comprehensive scope of services is guided by four overarching goals:
1. To support the AT-RISK OLDER ADULTS in their efforts to maintain and improve their functional ability to remain in their own homes and the community.
2. To support CAREGIVERS, particularly spouses and adult children as they care for dependent family members.
3. To support older adults and their families by providing TRANSPORTATION ASSISTANCE allowing them to remain safely in their own homes and in the community.
4. To foster community and STRENGTHEN CONNECTIONS by engaging older adults through partnerships and collaborative programming in areas of enrichment, health, and wellness.
Specific tasks of interest to call out as requested by the City and included in the scope of services include:
•Work with City staff to assist with appropriate services for the older adult homeless population in Palo Alto
•Partner with City staff to plan a “Senior Summit” – currently thought to be a gathering of senior service providers to meet and discuss collaborative solutions to the issues that are facing the older adult community.
For the specific program objectives, tasks and outcome measures as part of this contract, see full scope of services in the contract (Attachment A, Exhibit A).
FISCAL/RESOURCE IMPACT
The FY 2026 Proposed Operating Budget includes $598,972 for this contract in the Community Services Department General Fund budget. For Fiscal Years 2027 - 2030, the cost for the contract will be subject to the City Council annual appropriation of funds.
STAKEHOLDER ENGAGEMENT
In 2023, the Human Relations Commission held a two-part “Older Adult Learning series”4 with representatives from Avenidas and several other local service providers who shared about their programs, the top emerging needs of Older Adults and what the community could do to help address these needs. In September of 2024,5 the Commission deliberated on next steps to address the needs mentioned, several of which are included in the Scope of services of this contract including senior transportation and a senior summit event with local senior services providers.
ENVIRONMENTAL REVIEW
Approval of this contract is not a project under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3).
ATTACHMENTS
Attachment A: Avenidas Contract C26193873
APPROVED BY:
Kristen O'Kane, Community Services Director
4 Human Relations Commission, October 12, 2023; Item 3; https://portal.laserfiche.com/Portal/DocView.aspx?id=68195&repo=r-704298fc 5 Human Relations Commission, September 12, 2024; Action Minutes, Item 3; https://portal.laserfiche.com/Portal/DocView.aspx?id=123820&repo=r-704298fc