HomeMy WebLinkAboutA022 - Resolution approving request to modify the City's FY 2025/26 ASSET contract with Youth & Shelter ServicesITEM #:23
DATE:06-09-26
DEPT:CMO
SUBJECT:REQUEST TO MODIFY FY 2025/26 ASSET ALLOCATION TO
YOUTH AND SHELTER SERVICES
COUNCIL ACTION FORM
BACKGROUND:
Youth and Shelter Services (YSS) has submitted a reallocation request to the City to modify its
FY 2025/26 Analysis of Social Services Evaluation Team (ASSET) funding allocation by
transferring funds among several services (outlined in the table below). Their reallocation letter
is attached and provides further details regarding their request. Also attached is their current
FY 2025/26 contract.
If the reallocation request is approved, the table below summarizes the reallocation
request:
Service Original Allocation Change Revised Allocation
Outpatient Mental
Health Treatment $55,752 - $48,000 $7,752
Outpatient Substance
Abuse Treatment $8,000 $10,000 $18,000
Service Coordination $11,332*-$11,332*$0
Transitional Living $30,000 +$49,332 $79,332
TOTAL $105,084 $0 $105,084
* The YSS request letter transposed the dollar amount. The correct amount available is
$11,332 used in the table above.
YSS provides other human services under this ASSET contract that will not be impacted by
the reallocation request. Those services are listed below:
Service Allocation
Community Youth Development $23,000
Mentoring $63,000
Employment Assistance for Youth $5,253
Out of School Program $13,270
Public Education and Awareness $15,286
TOTAL $119,809
If the reallocation request is approved, the City's total purchase amount agreement with YSS
for human services remains unchanged at $244,893. None of the cost-per-unit rates will
change for any of the services.
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ALTERNATIVES:
1. Approve the request from YSS to transfer:
a. $38,000 from outpatient mental health services to transitional living;
b. $10,000 from outpatient mental health services to outpatient substance abuse
treatment; and
c. $11,332 from service coordination to transitional living
2. Deny the request.
3. Refer to staff for more information.
CITY MANAGER'S RECOMMENDED ACTION:
This is the second consecutive year of a significant (over $50,000) reallocation request
from YSS. As such, staff is concerned about the accuracy of agency's budget
projections and projected service utilization for the ASSET process. Over the past
months, staff has worked closely with the YSS leadership team to carefully evaluate the
requests and to better understand their explanation and operations.
It should be noted that the biggest factor in the reallocation request is the change in YSS'
mental health services. At the start of this fiscal year, YSS made a strategic pivot in the
compensation structure of their mental health outpatient program, moving to utilizing licensed
therapists on a contract basis based on need rather than solely employing full-time therapists.
This has led to a more financially sustainable approach for the organization, reducing the need
for ASSET funding to cover uninsured patients.
Staff believes that YSS' request letter acknowledges the concerns of City staff.
Furthermore, staff believes the services where funding is being reallocated towards
meet higher priority areas for the City. Therefore, it is the recommendation of the City
Manager that the City Council approve Alternative No. 1 as stated above.
ATTACHMENT(S):
Reallocation Request - YSS.pdf
FY 2025/26 ASSET Contract - YSS.pdf
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