City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: August 11, 2025
Report #:2505-4734
TITLE
Approval of Amendment #1 to Contract C23184669A With LifeMoves to Extend the Contract by Two Years Through July 1, 2025 – June 30, 2027 in the Amount of $512,377 for a Total Contract Value Not To Exceed $972,377 for the Provision of Homeless Outreach Service; and Amend the FY 2026 Budget in the General Fund and the Permanent Local Housing Allocation (PLHA) Grant Fund; CEQA Status – Not A Project.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment #1 to Contract No. C23184669A (Attachment A) with LifeMoves to continue outreach services to the unhoused for an additional two years in an amount not to exceed $512,377. This amendment results in a revised total contract not-to-exceed amount of $972,377 over four years; and
2. Amend the Fiscal Year 2026 Budget Appropriation (requires a 2/3 approval) for:
a) General Fund by:
i) Increasing the Community Services Department Contract Services expense appropriation by $25,000; and
ii) Increasing the Community Services Other Revenue (from Stanford University) estimate by $25,000
b) Permanent Local Housing Allocation (PLHA) Grant Fund by:
i) Increasing the Community Services Department Contract Services expense appropriation by $162,201;
ii) Decreasing the Ending Fund Balance by $162,201
EXECUTIVE SUMMARY
This report recommends extending the City’s contract with LifeMoves to continue providing homeless outreach and engagement services for an additional two years, through June 30, 2027. Originally launched as a pilot program from July 1, 2023, to June 30, 2025, the initiative
has delivered consistent, effective street outreach to unhoused individuals in Palo Alto, including services on Stanford University land under a revenue-sharing agreement.
Maintaining continuity with LifeMoves is critical to sustaining momentum, as existing outreach staff have built strong, trust-based relationships with local unhoused residents. The contract extension will also support a coordinated effort to assess and prepare individuals for placement in the Homekey Palo Alto interim shelter, which will be operated by LifeMoves under a separate service agreement.
BACKGROUND
Following an initial unsuccessful RFP in May 2022, the scope of services was revised and additional funding secured through the Permanent Local Housing Allocation (PLHA) Entitlement Fund. A new RFP issued in November 2022 resulted in the selection of LifeMoves, based on their qualifications and experience.
The Homeless Outreach Team (HOT) contract with LifeMoves was initiated as a pilot program during Fiscal Years 2024 and 2025. Funding for the program was provided through a combination of State Permanent Local Housing Allocation (PLHA) entitlement funds, City General Fund contributions, and financial support from Stanford University.
The program is staffed by a two-person outreach team, including one Spanish-speaking staff member, who conduct direct street outreach throughout Palo Alto and select areas on the Stanford campus. The team’s core objective is to build relationships with unhoused individuals and connect them with available support services. In addition to targeting specific areas for regular outreach, the HOT team has responded to referrals and direct requests for engagement from City staff, local business owners, and residents.
The team has maintained a consistent presence in key public spaces, including the downtown corridor, transit center, and City facilities such as City Hall, libraries, and community centers.
The HOT team has also collaborated with the Police Department’s Special Problems Team and provided training to various City work groups on effective and compassionate engagement with unhoused individuals. Notably, the team supported outreach efforts during the activation of the Overnight Warming Location (OWL) this past cold weather season and conducted targeted outreach to RV dwellers impacted by the closure of parking along El Camino Real due to the Caltrans Bike Lane Project.
As of the March 2025 performance report, the HOT team has engaged with more than 119 unduplicated individuals, with many individuals requiring multiple contacts. One of the key challenges identified by the team is the difficulty in encouraging individuals to engage, due to limited availability of affordable housing options and long shelter waitlists.
Despite these challenges, the program continues to emphasize relationship-building and trust, which are critical to supporting unhoused individuals over time. This ongoing engagement is particularly important to ensure that unhoused Palo Alto residents are assessed and ready to transition into the Homekey Palo Alto interim shelter upon its opening (as outlined in the updated Scope of Services).
ANALYSIS
Staff recommends extending the contract with LifeMoves to continue homeless outreach services in Palo Alto. As demonstrated during the pilot phase, having a dedicated and responsive outreach team has enhanced the City’s ability to address issues involving unhoused individuals. The Homeless Outreach Team (HOT) has been crucial in responding to referrals from City staff, residents, and local businesses, and in maintaining a regular presence in key areas such as the downtown corridor, transit center, and City facilities.
The continuation of these services reflects a commitment to best practices in addressing homelessness and aligns with the Santa Clara County Community Plan to End Homelessness.
The HOT team plays a critical role in reducing barriers to housing and services, coordinating with local providers, and advancing a housing-first approach. These efforts support the City's broader strategy to move individuals toward stability and permanent housing.
The recommended updates to the Scope of Services (SOS) for FY 2026–2027 incorporate lessons learned from the two-year pilot. Recognizing the value of strong partnerships, the revised SOS emphasizes improved coordination with local service providers and the Palo Alto Police Department’s Special Problems Detail. A key enhancement to these efforts is the continuation of the weekly “Monday Morning Huddle,” a coordination meeting with other local service providers initiated late in the pilot period. This collaboration fosters shared problem- solving, strengthens service connections, and promotes effective transitions (warm hand off) for individuals in need.
In addition, the updated SOS reinforces the City's commitment to the success of the soon-to- open Homekey Palo Alto interim shelter. LifeMoves will lead a coordinated and focused outreach effort to ensure that as many unhoused Palo Alto residents as possible are assessed and ready to enter the shelter upon opening. This includes close, ongoing collaboration with regional service providers to support streamlined referrals and placements.
FISCAL/RESOURCE IMPACT
Funding for the continuation of this contract is through a combination of funding sources and requires a budget amendment. The primary funding source will be the City’s allocation of State Permanent Local Housing Allocation (PLHA) entitlement funds. Additional support will be provided through a revenue agreement with Stanford University (Attachment B: Stanford University Revenue Agreement Pledge), which includes an anticipated contribution of $25,000 per year in recognition of outreach services provided on Stanford lands.
The total contract costs and funding sources are summarized below. Year 1 $251,301: $226,301 from PLHA entitlement funding (reflecting remaining allocations from entitlement years 2019, 2020, and 2021, which have already been received), and$25,000 from Stanford University (anticipated). Year 2 $261,076: $236,261 from PLHA entitlement funding (reflecting projected allocations from entitlement years 2022 and 2023), and $25,000 from Stanford University (anticipated).
It is important to note that additional PLHA funding from entitlement year 2024 is expected to be released prior to the start of Year 2 of the contract. However, the award amount is not yet known and is therefore not included in this funding estimate.
On December 18, 2023, the City Council recognized $592,368 in grant revenue from the PLHA grant for street outreach, and allocated $387,368 to the ending fund balance, as only a portion was needed in FY2024. 1 In FY2025, $209,000 was used from this fund for LifeMoves services, leaving approximately $178,000 for future needs. This amount, in addition to interest earned, is available in the PLHA ending fund balance for FY2026, or approximately $181,000. Additionally, prior year contract savings of $64,100 has been carried forward and will be used for year 1 of this extended agreement. This leaves approximately $19,000 left for future uses in the PLHA fund. PLHA grant funding is available to support the current contract extension. Continuation of services beyond 2026 will be contingent upon an evaluation of service performance, community impact and need, and the availability of grant or alternative City funding.
STAKEHOLDER ENGAGEMENT
A report on Housing and Homelessness in Palo Alto—including an overview of current initiatives and a gap analysis—was presented to the City Council on February 10, 2025. During the meeting, members of the public had the opportunity to provide input during oral communications. As a follow-up to Council direction at that meeting, the Council Policy and Services Committee will be discussing options to address homelessness impacts at a Special Meeting on August 25, at 6:00 pm.
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: Amendment 1 LifeMoves Contract C23184669A Attachment B: Stanford University Revenue Agreement Pledge APPROVED BY: Kristen O'Kane, Community Services Director 1 City Council, December 18, 2023; Agenda Item #17; SR#2311-2216; https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=aeed86d9-14cb-42e9-9838-50f9649c661f