SR-01-27-2015-8C -300-002/301-000Council Meeting: January 27, 2015
Agenda Item: 8 -C.
To: Mayor and City Council
From: Karen Ginsberg, Director of Community and Cultural Services
Subject: Proposed FY2015 -19 Human Services Grants Program and Cultural /Art
Organizational Support Program Funding Rationales
Recommended Action
Staff recommends that the City Council:
1. Approve the Proposed FY2015 -19 Human Services Grants Program (HSGP), Cultural /Art
Organizational Support Program (OSP) and Strategic Sustainability Initiative Funding
Rationales, including proposed guidelines and selection criteria; and
2. Authorize staff to release a Request for Proposals (RFP) for the next four -year grant
funding cycle (FY2015 -19).
Executive Summary
The City provides grant funding to a wide range of human and community service programs and
cultural and arts organizations in Santa Monica. This report provides information regarding the
rationales for the proposed funding guidelines for both the Human Services Grant Program
(HSGP) and the Cultural /Art Organizational Support Program (OSP). Most of these programs
have not been opened to new applications since FY2011 -12. While this report does not request
Council budget action at this time, staff has identified key areas of program expansion for the
upcoming four -year grant cycle. Staff will provide, for Council consideration, specific grant
recommendations and budget increases as part of the Proposed FY2015 -17 Biennial Budget
process.
Background
On June 21, 2011, Council awarded four -year grants to 24 nonprofit agencies through the
Human Services Grants Program (HSGP) and two -year grants to eleven organizations through
the Cultural /Art Organizational Support Program (OSP). Agency funding requests were
evaluated based on a Council- adopted funding rationale approved on January =`r 201 and
budget priorities, along with documented needs and priorities identified through Council-
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adopted community plans lon to <dd«<sHoroet� rrt onl'{Lr� Yg:q,n_11 -o?'n
PrevEnun__r_r,- S6 nta_,Mo is r, Evuluu? on of Services ; for i Older AOuhrs, t ify s FY 1,_.
Corisoj'da cad Pfan, and the City's cultural plan, C„r-eobvc oa(il). On J ruary 22 '01=_, Council
approved the renewal of OSP grant funding for two years and the deferral of the next
competitive grant cycle to FY 2015 -16 to synchronize with HSGP.
Human Services Grants Program
In 1974, the City established a grants program that provided funding to four agencies delivering
essential community and social service programs. Over the last 40 years, as the needs,
complexities, and priorities of Santa Monica residents have shifted, this grants program has
expanded to provide funding to 24 agencies supporting over 45 programs. This expanded
program is known as the Human Services Grants Program (HSGP). Through the HSGP, the City
collaborates with public and nonprofit organizations to improve the quality of life for Santa
Monica residents, responding to needs through grant agreements with Santa Monica's array of
community agencies. The HSGP, administered through the Human Services Division, is
structured in multi -year cycles to provide predictability of resources which allows for stable
service delivery and longer range planning on the part of funded agencies. Currently, the HSGP
provides funding support in two ways:
® Operating Grants - $7.6 million annually to 24 nonprofit human service organizations
supporting over 45 programs to meet the needs of infants, children, youth and families,
people with disabilities, seniors, victims of domestic violence and low- income people,
including those who are homeless; and
® Capital Improvement Grants - $600,000 in federal CDBG funds to nonprofit and City -
administered capital improvement and public works projects, including public facility
improvements and accessibility improvements that benefit low- income individuals.
FY2014 -15 sources of funding for the $7.6 M HSGP include:
• City General Fund $6.7M (88 %);
• Federal entitlement and competitive grants $534K (7 %) such as the Department of
Housing and Urban Development's Community Development Block Grant (CDBG),
Continuum of Care (CoC), HOME (Home Investment Partnership) programs, and
Housing Authority funds;
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• Other local revenue sources $328K (4 %) including Proposition A transportation and
development agreement funds; and
• Council Discretionary funds $92K (1 %).
Council took several approaches to address the uncertainty of the economic climate during the
Great Recession of 2008 including implementing reductions to the City's operating budget. At
the same time Council prioritized HSGP funding and ensured funding levels were kept intact.
Cost of living increases were provided to the City grantees in FY2012 -13 (2.5 %) and FY2014 -15
(1 %) which largely offset reductions in pass through money from other sources (e.g., HUD).
HSGP grants support specific initiatives implemented by the City, provide core operating
support for agencies in Santa Monica's social service network, or contribute to specific high
priority agency programs. Specific recommended program funding allocations are determined
through a competitive RFP process, and informed by various community input processes in
which needs are assessed and prioritized. These needs are documented in the FY2010 -15
Consolidated Plan, Youth Wellbeing Report Card (2014115), Youth Violence Prevention in Santa
Monica: An Action Plan for 2010 and 2011, 2011 -14 Acton Plan to Address Homelessness in
Santa Monica and an Evaluation of Services for Older Adults. Information gathered through
these efforts contributes to the proposed HSGP funding rationale for FY2015 -19.
Cultural /Art OSP
Santa Monica's Organizational Support Program (OSP) was established in 1997 to provide
critically important, predictable, and stable funding for the cornerstone agencies of the
community's cultural life. The program's goal is to ensure community access to excellent,
diverse and local arts and culture opportunities by assisting City -based cultural agencies with
basic operational expenses, strengthening organizational capacity, and helping to sustain their
continued presence in Santa Monica.
In 2008, the development of the City's adopted cultural plan, Creative Capital, and the
subsequent analysis of the City's cultural funding programs, led to revisions to the OSP program
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and the identification of the need to expand the program in the future. The Creative Capital
plan sets a goal for the City's annual arts support at an amount equal to 10% of the Santa
Monica's cultural agencies' aggregated annual expenditures.
On Rune 21,2013J. the City awarded $237,000 from the General Fund to provide financial
assistance to eleven resident nonprofit arts and cultural organizations through the OSP. The
funding supports operational expenses, helping to ensure the grantees' continued presence in
the City and residents' access to high - quality art and cultural opportunities in Santa Monica. At
that time, OSP was structured as a two -year, program. On jarwary 1,1(113, Council approved
the adjustment of this program from a two -year to a four -year cycle in order to synchronize
OSP with the HSGP. On Jude L_7_d14., as part of the FY2014 -15 budget, Council adopted a ten
percent "across the board" increase for all the City's arts grant programs, including OSP. Annual
grant amounts currently range from $5,500 to $66,000.
Discussion
Human Services Grants Program
The funding rationale proposes a competitive process to ensure that City funding invests in
programs that meet compelling local needs in a manner that is outcome - driven, cost - effective
(including leveraging private and public funds) and is non - duplicative. Funding priority will be
given to grant proposals that address City initiatives identified in Attachment A, and agencies
may propose new innovative programs to serve the City's priority populations through this
competitive process.
The following principles are proposed to guide the City's next four -year Human Services
Grants Program funding cycle. Competitive agencies will:
• Provide services that meet a documented need, with an emphasis on program
participants remaining housed and living independently;
• Use innovative approaches to increase awareness and access to services for the hardest
to reach;
• Use nationally recognized evidence -based best - practice models;
• Demonstrate participation in collaborative planning and program operations; and
• Maximize leveraging of non -city funds and resources.
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Although Human Services Grant Program (HSGP) funding has remained relatively constant and
has not increased over the last six years, other than COLA's in FY2012 -13 (2.5 %) and FY2014 -15
(1 %), the City and its partner agencies have refined their approach to service delivery through
the adoption of best practice models — many derived from new initiatives promoted by the City.
Examples include Housing First in the area of homelessness, and the Santa Monica Cradle to
Career (SMC2C) collective impact model for youth and families. These new approaches involve
collaborative, on- going, one -on -one interventions that are often resource intensive, and that
have a positive and measurable high- impact on individuals, families and the community as a
whole. This "whatever it takes" approach often involves using assertive case management,
clinically- trained staff, and interdisciplinary teams, with the long -term goals of reducing
recidivism, increased housing stability, and improved economic security for low- income
households.
In order to continue to fund organizations that cultivate an effective safety net system for Santa
Monica's most vulnerable residents and align services to meet the goals of City initiatives, the
HSGP will need to increase current funding levels through a combination of strategic re-
programming of existing HSGP funding, use of some Development Agreement contributions
and additional general fund dollars. Additional funding to the HSGP would be used to
implement enhanced services that have been identified as best practices to serve and engage
the hardest to reach individuals and households in the community as proposed in Attachment
A. These include expanding the network of care for vulnerable youth 15 and younger and
increasing capacity in homeless programs to reach more of the City's priority population to
continue reducing street homelessness. The City will be soliciting proposals for these.enhanced
services in the upcoming HSGP Request for Proposals. Staff will provide for Council
consideration specifying funding recommendations as part of the proposed FY2015 -17 Biennial
Budget Process.
As part of the adoption of the FY2014 -15 budget Council appropriated $93,000 in council
discretionary funding for youth employment and training and $65,000 one -time general
funding for enhanced legal services to address tenant harassment in FY2014 -15. Should the
agencies operating these programs apply for and successfully compete for funding beyond
FY2014 -15, additional funding to support these programs will need to be added to the HSGP as
part of the Proposed FY2015 -17 Biennial Budget.
In addition, in order to coordinate the multiple services required to successfully engage and
support the most difficult to reach households and track the outcomes of those efforts, the
HSGP will require investment in an improved data system as part of a best practice approach.
Centralized data management has proven to be critical in implementing the City's Homeless
Initiatives. Standardized data collection and reporting also allows for the tracking of outcomes
across programs in a uniform way, improving program monitoring and creating better
accountability. In an effort to bring these benefits to all HSGP program areas, staff is exploring
the feasibility of expanding this type of centralized data collection across other program types.
Staff has engaged a consultant to provide a preliminary assessment of data needs and
determine if the City's Homeless Management Information System (HMIS) can meet the
broader needs of the HSGP or if an alternative system would be needed. As part of the
proposed FY2015 -17 Biennial Budget staff will include any funding recommendations that come
from this assessment to support implementation for Council consideration.
Cultural /Art OSP
The next four -year grant period represents a pivotal opportunity for City support to have a
significant impact on the future of Santa Monica's core arts and culture agencies. An in -depth
community assessment process conducted this fall (see Attachment B) revealed that although
Santa Monica cultural organizations are increasing the number and scope of their programs to
meet local demand, and are reaching more Santa Monicans as a result, organizational
sustainability is more threatened than in the past primarily due to the consistently rising cost of
real estate in Santa Monica. Further, there are more City -based agencies that now qualify for
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OSP, and they are expected to apply for funds, which could put a strain on all agencies in terms
of grant amounts, depending upon the review of proposals and the associated
recommendations for funding. The City's ability to sustain funding levels to OSP grantees
through the recession has been a key element in the current success and growth of the sector
in Santa Monica. Safe - harboring these organizations in Santa Monica, however, is a challenge,
and staff is concerned that Santa Monica may face a changed arts and culture ecosystem, with
some long- standing agencies and highly- effective, newer organizations forced to reduce
programs and /or look for less expensive office and program space outside the City.
Staff recommends that City Council support the overall proposed guidelines and selection
criteria with the understanding that the grant funding cycle provides a significant window of
opportunity to help sustain long- standing and newer, highly- effective, city arts agencies. To
achieve this, however, OSP's resources from the General Fund will be historically stretched.
With this in mind, staff also recommends that Council extend further support for sustainability
by establishing a new Strategic Sustainability Initiative according to the funding guidelines and
selection criteria proposed in Attachment B. The new program would provide targeted
assistance to organizations that have identified innovations that are designed to enhance their
medium -to -long -term sustainability. It is recommended that funds for this new program be
drawn from the Cultural Arts Trust Fund. The Cultural Arts Trust Fund was established by City
Council for cultural use with the in lieu fees developers may opt to pay to meet their art
requirement. Budgets for the Cultural Trust Fund are proposed annually by the Santa Monica
Arts Commission and approved by Council. The available balance of the fund as of December,
2014 was $691,041.
Commission Action
Human Services Grants Program: In November 2014 and January 2015, City staff presented
information to various City commissions and advisory groups in order to collect input that
defines and prioritizes local needs. In coordination with the FY 2015 -20 Consolidated Plan
outreach, an overview of the 2015 -19 HSGP was presented to the Commission for the Senior
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Community, Commission on the Status of Women, Disabilities Commission, Housing
Commission, Social Services Commission, Child Care & Early Education Task Force, Santa
Monica Cradle to Career Work Group and the Virginia Avenue Park Advisory Board. Participant
input centered on several recurring themes:
• Creation of new affordable housing,
• Funding for housing retention services,
• Better access to health and mental health services,
• Employment services including job training, development and placement, and local
hiring,
• Concentrated 'whatever it takes' effort on the small number of highly vulnerable youth
and their families and seniors,
• Support services with expanded clinical capacity for older adults and people with
disabilities,
• Early intervention and prevention programs for families, and
• Better data collection methods on youth and families, seniors, and people with
disabilities.
Feedback received has been incorporated in the funding rationale, minimum eligibility
requirements and selection criteria.
Cultural /Art OSP: At a special meeting on January 13, 2015, the Arts Commission discussed the
community outreach and assessment process conducted for the OSP program and reviewed the
consultant's report and findings. The Commission voted unanimously to endorse the
consultant's report, the need for additional funding for the OSP program, and the
establishment of a new strategic sustainability grant.
Public Outreach
Human Services Grants Program: Since November 2014, City staff has facilitated various
meetings and discussions with agency executive directors, SMMUSD administrators, SMMUSD
PTA Council, various SMMUSD District Advisory Committees, community groups and
stakeholders. These discussions identified priorities and community needs for services to
low- income and special needs households and were utilized to establish strategies and
objectives to guide federal and local funding decisions that have been incorporated in
Attachment A. City staff will also use this information to draft the FY2015 -20 Consolidated Plan
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which verifies and documents the community's social service and housing needs and priorities.
The Consolidated Plan will be available for a 30 day public review in April 2015 and brought to
Council for adoption in mid -May.
Cultural /Art OSP: Over the course of the last few months, staff collaborated with the City's
cultural community to develop an assessment of community art and culture needs. The
intensive process, implemented by respected cultural planning consultant Jerry Yoshitomi with
staff support (Attachment B), included a survey of City -based arts organizations, aggregation
and analysis of the survey responses, a facilitated discussion with the broader arts community
and analysis of financial information from current OSP grantees. Formal site visits were
conducted by staff to a selection of both current and prospective grantees of the program.
Alternatives
Given the strong performance and continued community- responsiveness of most HSGP and
OSP grantees, it will be difficult to address any new needs without augmentation of the overall
grant program funding. As a matter of practice, staff considers tradeoffs, analyzes new funding
requirements for best outcomes, seeks out all sources of funding (beyond the General Fund)
and develops other strategies to make best use of limited public dollars. However, if overall City
funding is capped at MOE levels, even deeper tradeoffs, program reductions, recalibration of
expectations and other approaches may be required.
Next Steps
Human Services Grants Program: Dependent on Council approval, a Request for Proposal (RFP)
for the FY2015 -19 HSGP would be released in early February with a March 9, 2015 deadline for
submittal of all proposals. Staff would hold a pre - submittal conference in early February to
provide interested applicants with an orientation to the application process. Notice of the
conference would be sent to currently- funded nonprofit organizations and nonprofit
organizations on the department's RFP interest list. In addition, a notice would be posted in
local newspapers and on the City's website.
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Cultural /Art OSP: Dependent on Council approval, applications for the FY2015 -19 OSP would
be released late January with a March 23, 2015 deadline. Staff would notify cultural and arts
agencies in the Santa Monica community via e -mail of the availability of funding and hold a pre -
application technical assistance workshop for all applicants.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommendations in this report. Projected FY 2015 -16 funding levels for the HSGP and
Cultural /Art OSP assumes a maintenance -of- effort funding level equivalent to FY2014 -15. Staff
will return to Council with specific grant recommendations and budget increases during the
FY2015 -17 Biennial Budget process. A budget adoption hearing will take place in June of 2015
when Council will make final funding decisions.
Prepared by: Setareh Yavari, Human Services Manager
Jessica Cusick, Cultural Affairs Manager
Approved:
aren Ginsberg
Director, Community & Cultural Service
Attachments:
Forwarded to Council:
RoCd. )Gould
City Manager
A Proposed Human Services Grants Program Funding Rationale, 2015 -19
B Proposed Organizational Support Program and Strategic Sustainability Initiative
Grant Rationale, Grant Criteria, and Consultant Report
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a. t u• M
el
- PROPOSED HUMAN SERVICES GRANTS PROGRAM FUNDING RATIONALE
2015 -19
City of _..
Sauia ilaraaer, e�
PROGRAM DESCRIPTION
The goal of the Human Services Grants Program (HSGP) is to fund programs that respond to a
clearly identified community need in Santa Monica. Specific recommended program funding
allocations are determined through a competitive RFP process, and informed by various
community input processes in which the needs of the community are assessed, including:
® City of Santa Monica Consolidated Plan: On Mgy_11_, 2Cs10, City Council adopted the FY
2010 -15 Consolidated Plan, a document required by the Federal government to verify
and document the community's social service and housing needs and priorities in order
to receive Community Development Block Grant (CDBG) and HOME (Home Investment
Partnerships Act Program) entitlement grant funds. The City is currently in the process
of identifying community needs and goals to draft the FY 2015 -20 Consolidated Plan
which will provide a road map for the next five years.
• Youth Wellbeing Report Card (2014/15): The Santa Monica Cradle to Career Initiative
second Report Card (released at a RAND conference in April 2014) identifies goals and
focus areas — intended to address key data findings and developed last year by the
SMC2C work group. The SMC2C work was informed by the Council adopted the
S' tE? TIhC. T X201(} report, `!OUth Violr Ice Prevention in Sorillu ��✓oo;co An Ac ion Plan
l0 lu2u ! r,d 2011.
• The City's 2021 -14 Action_ Plon to Address Homelessness in �antq Monic0 reflects and
informs the City's policies and practices and establishes goals for addressing
homelessness in Santa Monica. This plan is currently being updated for 2015 -20 to
coincide with the Consolidated Plan.
• In April 2008 the City released an E,1 � " Y _ t c `,r ,,ht ,-Achitts. The evaluation
yut rtv�, o� 'er 1(Ue
was derived from survey data and focus groups comprised of Santa Monica seniors and
key informant interviews with local and national experts on aging. The evaluation made
recommendations to address the current needs of seniors, and to plan for the emerging
needs of the baby - boomer population as they age, including the development of more
intensive, comprehensive outreach and clinical services for seniors.
Through the HSGP, the Human Services Division collaborates with public and nonprofit
organizations to improve the wellbeing and quality of life of low- income Santa Monica residents
including youth and families, people with disabilities, seniors, victims of violence, and those
Human Services Grants Program 2015 -19 Funding Rationale p.l
Attachment A
who are homeless. Responding to needs through the Human Services Grants Program, the City
helps ensure an effective, strong safety net for the most vulnerable residents. In addition, the
HSGP can provide stable funding for qualified nonprofit agencies where federal, state and
county programs and resources fall short.
In the past four year grant cycle, the City encouraged nonprofits to adopt best practice models
throughout the HSGP, particularly in the areas of homelessness and programs for youth. These
best practices focus on using evidence -based research to guide programs with a goal of
achieving outcomes that reflect measurable and lasting effects in the lives of the people they
serve. This "whatever it takes" approach often involves assertive case management, clinically
trained staff, and interdisciplinary teams, with the long -term goals of reducing recidivism,
increased housing stability, and improved economic security for low- income households. A key
objective is to create a climate where collaboration is a common practice where nonprofit
agencies share an understanding of the problem, data, a vision for change and a joint approach
of agreed upon action. Moving forward, the City seeks to continue to invest in programs that
demonstrate effectiveness through high- impact, measurable outcomes achieved through
collaboration. Collaborative efforts should also explore and include new partnerships and
networking opportunities with all members of this community, as well as key county partners.
The proposed Funding Rationale provides the basis for developing recommended funding levels
for grantees in FY 2015 -16, starting with maintenance -of- effort (MOE) funding equivalent to FY
2014 -15 and includes recommendations for funding increases that allow for program expansion
and the development of new programs. City staff proposes to continue with a four -year funding
cycle to align with the proposed biennial budget cycle. Approval of the proposed Funding
Rationale does not preclude changes in subsequent years if a critical, emerging need arises or in
the event of underperforming programs, but would serve as the primary tool for allocating
available resources during the entire cycle. Subsequent year funding would be, as in the past,
contingent upon the continued effectiveness of programs to meet the City's priorities and goals
and availability of City funds.
ELIGIBILITY
In order to be considered for funding through the City's Human Services Grants Program,
applicants must meet the following Council- approved minimum eligibility requirements.
Meeting these requirements does not guarantee funding.
In order to be eligible for City funding, applicants must:
• A nonprofit organization with tax exempt status under Section 501(c)(3) of the
Internal Revenue Service Code and Section 23701(d) of the California State
Franchise Tax Code; AND
• Registered with the office of the Attorney General of the State of California
Department of Justice with a current registration status; AND
Human Services Grants Progfam 2015 -19 Funding Rationale p.2
W
• A nonprofit organization with a Board of Directors with a minimum of 12 active
and qualified members; OR
• A hospital or educational institution with a governing board.
® Be in compliance with:
• Title VI of the Civil Rights Act of 1964;
• Title VIII of the Civil Rights Act of 1968 (as amended);
• Section 504 of the Rehabilitation Act of 1973 (as amended);
• Age Discrimination Act of 1974;
• Title I of the Housing and Community Development Act of 1974 (as amended);
and
• The Americans with Disabilities Act (ADA) of 1990.
• Not discriminate in the hiring of staff or provision of services on the basis of race,
religion, sex, age, national origin, disabilities, HIV status, political affiliation or beliefs, or
sexual preference.
• Agree that no City funds shall be used to teach, advance, advocate or promote any
religion or religious belief or practices, including any irreligious belief or practice.
• Demonstrate financial stability and sufficiency of financial resources as documented in
the applicant's audited financial statements for the most recent fiscal years — 2012,
2013, and 2014; and must maintain an accounting system that is in accordance with
generally accepted accounting principles (GAAP).
• Be located, co- located or have a well- demonstrated presence in Santa Monica.
• Receive the formal approval of its Board of Directors or governing body to submit a
proposal for City funding.
SELECTION CRITERIA
Applications that meet the Council- approved minimum eligibility requirements will be reviewed
and evaluated on the applicant's demonstrated ability to meet or exceed the following Council -
approved selection criteria.
Eligible applicants will be assessed on their ability to:
® Address a clearly documented and priority need in Santa Monica with an emphasis on
the target populations, priorities and focus areas defined below.
® Demonstrate organizational, fiscal and program capacity with a proven track record to
provide quality, evidence based and highly effective services to the Santa Monica
community.
Heiman Services Giants Program 2015 -19 Funding Rationale p.3
Attachment A
• Provide comprehensive services for the most vulnerable, low income or hard to reach
populations in Santa Monica, with emphasis on assisting individuals and families in
remaining housed and living independently.
• Services must demonstrate specific and substantial change in the community and lives
of participants. Services must be able to document such change through documented,
high impact outcomes. Program effectiveness should be measured through sound
evaluation practices including use of clear data - driven outcomes that are tracked and
monitored overtime.
• Provide awareness of and ready access to services, including a strategy for engaging
residents who have not previously used social services, are the hardest to reach, or have
historically refused services in Santa Monica.
• Use nationally recognized, evidence -based practice models and outline how the model
is appropriate for the target population and how it will be effective in achieving the
proposed program outcomes.
• Leverage non -City funds to serve Santa Monica program participants beyond the
required minimum 30% cash match, with a demonstrated track record of raising non -
City funds over the past three years.
• Demonstrate participation in collaborative planning and service coordination with a
range of partners, with the goal of improving service delivery and achieving shared
outcomes for the target population.
• Outreach and site services in convenient and readily accessible locations for the target
population. Where appropriate, co- locate in conjunction with existing community and
City facilities.
• Provide culturally appropriate and sensitive programming that includes bilingual
capacity and culturally relevant services.
Human Services Grant Program grants are awarded to organizations whose applications are
favorably reviewed by City staff, members of City Boards /Commissions and selected
professionals offering expertise in program development, operations or nonprofit
management. Awards are multi -year; subsequent year funding is contingent upon the
continued effectiveness of programs to meet the City's priorities and goals, and upon
availability of City funds.
TARGET POPULATION
For the purposes of the HSGP, an eligible Santa Monica Program Participant (SMPP) is defined
as:
® An individual whose permanent address is in Santa Monica; or
Human Services Grants Program 2015 -19 Funding Rationale p.4
® A student currently attending a Santa Monica public school in the Santa Monica - Malibu
Unified School District; or
® A youth, age 16— 24, recently enrolled in a Santa Monica - Malibu Unified School District
high school that can demonstrate a continued tie to the Santa Monica community; or
® A youth residing in Santa Monica that currently is or has been in the foster care system
or has aged out of the foster care system.
A Santa Monica program participant is not:
® A student attending a private school in Santa Monica who does not live in Santa Monica;
or
® A student attending Santa Monica College who lives outside of Santa Monica and
attended a non - SMMUSD high school; or
® A homeless individual who recently arrived in Santa Monica or intermittently stays in
Santa Monica.
For programs proposing to serve homeless households (individuals or families), eligible SMPP
are defined by the Action Plan to Address Homelessness In Santa Monica which currently
defines:
® Homeless households whose last permanent address is in Santa Monica; or
® Individuals that have been documented as homeless in Santa Monica for five or more
years; or
® Vulnerable members of Santa Monica's workforce (homeless individuals and families
with a household member who has worked full -time within the City of Santa Monica); or
® Homeless individuals on the Santa Monica Service Registry or identified by Human
Services Division staff as high users of City resources and services; or
® Formerly homeless individuals and families who are participating in supportive housing
in Santa Monica.
For programs proposing to serve youth aged 16 -24 who are not in school or working and /or
lack supportive networks ( "opportunity youth "), eligible SMPP are:
® Youth aged 16 to 24 years whose permanent address is in Santa Monica; or
® A youth, age 16 — 24, recently enrolled in a Santa Monica - Malibu Unified School District
high school that can demonstrate a continued tie to the Santa Monica community.
In addition to the above, two or more of the following risk factors must be present:
o Youth is out of school and has not obtained a High School diploma, GED or
equivalent;
Human Services Grants Program 2015 -19 Funding Rationale p.5
o Youth is unemployed and not in school;
o Youth has a history of incarceration orfamily history of incarceration;
o Youth is gang - involved or has family members that are gang - involved;
o Youth has psychological /social issues and /or an identified mental illness,
o Youth has history of substance abuse;
o Youth has history of physical and /or emotional abuse;
o Youth has a history of personal or family trauma (e.g., death of parent,
incarceration of parent); or
o Youth is a member of a low- income household.
At any point during the grant cycle, staff may revise target population eligibility criteria based
on new data that may identify an emerging need.
Focus AREAS
Human Services Grant Program (HSGP) funding has remained relatively constant and has not
increased over the last six years. During that time, the City and its partner agencies have
refined their approach to service delivery through the adoption of best practice models— many
derived from new initiatives promoted by the City. Examples include Housing First in the area of
homelessness, and the Santa Monica Cradle to Career (SMC2C) collective impact model for
youth and families. These new approaches involve collaborative, on- going, one -on -one
interventions that are often resource intensive, and yield high - impact outcomes that have a
positive and measurable impact on individuals, families and the community as a whole. They
promote a "whatever it takes" approach which often involves using assertive case
management, clinically- trained staff, and interdisciplinary teams.
In order to support programs as they make this shift from providing light -touch services to
every household to more intentionally providing high need households with deep and robust
services, the HSGP will need to increase current funding levels through a combination of
strategic re- programming of existing HSGP funding, City development agreements (community
benefit resources) and a budget enhancement. Although programs may be interested in
piloting new best - practice models, switching from triage services to deeper, more
comprehensive services will require new resources. Some programs have implemented best -
practice approaches with success, but have done so by diverting resources, cutting back on
basic services or reducing the number of households served. This has left gaps in our
community safety net, which may cause at -risk households to slip past service providers and
end up utilizing more expensive services such as Fire, Police and Code Enforcement.
The Great Recession of 2007 -2009 and economic downturn resulted in higher unemployment
rates in Santa Monica and the Los Angeles metropolitan area, and fewer jobs are available at all
levels. Although the recession officially ended in June 2009, recovery for vulnerable populations
has been slow and unsteady, making income disparities even wider. Extended periods of
Human Services Grants Program 2015 -19 Funding Rationale p.6
unemployment or underemployment have long lasting, financially negative effects on
individuals and families that can last decades. Competition for entry -level jobs is still
challenging, and these jobs often do not lead to a career and an income sufficient to support a
family. Youth (ages 16 -24) have been especially impacted by the economic downturn, finding
that even low -wage entry level jobs are unavailable to them. In addition, the City's adults are
growing older and are experiencing increasing disability and frailty — many will need intensive
services to keep them in their homes and in the community for as long as possible. In times of
rising housing costs and uncertain economic opportunity, the healthy diversity of the Santa
Monica community may be preserved by improving and /or maintaining the housing and
economic stability of low and moderate - income families alike including seniors, people with
disabilities, families and youth, many with longtime roots in Santa Monica. The demographic
changes in the City's population also point to a growing need in the community for increasing
and intensifying human services.
In order to respond to changing needs, staff will include recommendations for program
expansion with the Proposed FY2015 -17 Biennial Budget process. The following four key areas
have been identified for expansion:
1. Housing Retention Pilot Project
The Action Plan identifies the reduction of street homelessness in Santa Monica as a
key measure of the success of the City's efforts, and affirms the City's policies of
prioritizing the most chronic and vulnerable individuals for housing and services, many
of whom are high users of Fire and Police services, using a Housing First model that
quickly re- houses individuals and keeps them housed.
The success of the City's and community partners' focus on the most chronic and
vulnerable individuals is due to resource - intensive, interdisciplinary and collaborative
efforts that must be sustained and enhanced to continue housing placement for
vulnerable individuals and to maintain the housing stability of those housed. Of the 366
active participants on the Service Registry, 220 (60 %) of the most vulnerable individuals
have been housed. Of those housed, 187 (85 %) have been in housing and receiving
care for more than 1 year, with 37 (17 %) housed over 5 years ago, and who continue to
receive support services.
As more individuals are housed, agencies must stretch their limited resources to manage
those individuals already in housing, while finding time to identify and place new
individuals. At the same time, the rental market is quickly recovering from the economic
downturn. With rents and occupancy rates rising, there is less incentive for landlords to
accept a formerly homeless tenant on a housing voucher, and a greater incentive to evict
quickly if the tenant is disruptive. In order to prevent homeless individuals from returning
to the streets, improve landlord relations, and more effectively utilize the City's allocation
of federal housing subsidies, staff propose an enhancement to the HSGP to create a
Human Services Grants Program 2015 -19 Funding Rationale p.7
ITAWN
Housing Retention Team that would be available after -hours and on weekends to triage
housing issues, coordinate the case management response, and work with local nonprofits
and support City departments as needed.
This proposed additional City investment comes at a time when federal and regional
funding are pulling back, and the Westside is losing resources. For example, the
Department of Mental Health will discontinue funding the Integrated Mobile Health Team
(IMHT) in 2015, which has been operated by OPCC and St. Joseph Center and has focused
exclusively on housing Service Registry participants, especially those with the most severe
behavioral health issues. DMH is building new teams, funded through SB82, but those
teams will be regional, and will not have the dedicated focus that the current IMHT does
on Santa Monica's priority population. While staff will advocate with DMH to fill this gap,
the proposed Housing Retention Team will provide a centralized response for city staff,
including first responders, in dealing with residents in crisis. By providing after hours care,
the Team will bridge triage services with existing on -going case management.
2. Expanded Clinical Capacity for Hard to Reach Seniors and People with Disabilities
Supportive services that promote housing stability and allow older adults and people
with disabilities to age in place and in the community are a best - practice across the
country, and are a top priority for the FY2015 -2019 Human Services Grant Program.
Over 6,800 (8 %) Santa Monica residents are over the age of 75. Of those, 4,228 (62 %)
have at least one disability. In addition to physical challenges, recent nationwide studies
indicate that an estimated 20.4% of adults aged 65 and older met the criteria for a
mental disorder, including dementia, during the previous 12 months. For Santa Monica
seniors over the age of 75, 1,650 (24 %) live below 150% of the federal poverty threshold
of $16,555 per year. The needs of older adults and their families will continue to grow
over the next 15 years as "baby boomers" will all be over the age of 65.
Seniors and people with disabilities are often in danger of losing their housing because
they need assistance to maintain the physical condition of the premises, or because
they engage in behaviors that may jeopardize their safety or be grounds for eviction
(e.g., hoarding, nuisance, or failure to pay rent). Approximately 7,800 (60 %) Santa
Monica seniors over the age of 65 are renters. Often City staff from SMPD, SMFD, the
Housing Authority, or Code Enforcement is called upon to address the situation.
Through the current Human Services Grant Program, the City funds a range of
supportive services that help maintain housing stability, or make appropriate
placements into assisted living or skilled nursing when needed. However, over the past
few years the increasing number and complexity of the cases has demonstrated a need
to enhance existing services and to promote a "whatever it takes" approach, which
employs assertive case management and clinically- trained staff, particularly for older
Human Services Grants Program 2015 -19 Funding Rationale p.8
adults who are isolated and may be resistant to services. Programs already in -place to
assist SMPD with elder abuse would also benefit from enhanced clinical capability.
Additional funding is needed to reach the most isolated and vulnerable seniors and
people with disabilities and provide them with assertive, interdisciplinary and clinical
interventions. This will allow grantees to increase the capacity and clinical expertise of
case management staff and to provide timely interventions when critical issues create a
risk to housing stability; to provide ongoing, intensive services to maintain housing
stability; and to make appropriate placements to supportive housing when appropriate.
3. Expansion of Services Related to Santa Monica Cradle to Career Initiative (SM C2C)
Young people ages 0 -24 years make up 21% (19,022 individuals) of Santa Monica's
population, and 6,539 families (which include at least one parent and one child under
18) represent 14.9% (12,580 individuals) of all Santa Monica households. Education
levels of Santa Monica residents are statistically high and yet 392 or 6% of these
households with a minor child live below the federal poverty level. Over 70% or 62,815
of all Santa Monica residents are renters, and many renters and homeowners in Santa
Monica spend more than 30% of their income on housing due to the highest housing
costs in Los Angeles County. With the cost of raising a child steadily increasing on a
national level, access to affordable housing and childcare are key areas of concern for
low- income Santa Monica families. In the areas of youth wellbeing, other areas of
concern arise:
o 86 or 16% of entering students at SMMUSD are not on track in the area of
learning and school achievement - and therefore not as ready as we would like -
for kindergarten,
® 197 or over 30% of 3rd grade SMMUSD students have not reached proficiency in
language arts
® Significant numbers of middle and high school students (over 350 youth) report
feelings of depression and excessive use of substances.
Young people who are prepared for school, confident, healthy, and secure are more
likely to be ready to enter the workforce and be productive, happy and well- adjusted
members of the community. Employing a holistic approach with supportive, coordinated
services that promote the wellbeing of youth and families remains a top priority of the
Human Services Grants Program. Additional funding would be needed to enhance
services to the most vulnerable youth and their families during the FY2015 -2019 funding
cycle.
Human Services Grants Program 2015 -19 Funding Rationale p.9
Attachment A
In mid -2013, the Santa Monica Cradle to Career (SMC2C) Initiative implemented a
collective impact model whereby diverse organizations were brought together to assess
and address the needs of some of the most vulnerable youth and families in Santa
Monica. The Youth Resource Team (YRT 2.0) was created to provide coordinated,
integrated, and interdisciplinary case management in a "whatever it takes" approach to
an initial cohort of 27 "opportunity youth" ages 16 -24. Since this time, this approach
has yielded positive outcomes.
Of the 27 youth:
® 26% of persons were placed or relocated in housing,
® 33% were engaged in employment services,
® 44% were reconnected to school, and
® 52% received mental health and /or substance abuse services.
Based on the success of service model employed by the YRT 2.0, SMC2C and the
community have voiced the need to expand this "whatever it takes" approach to include
youth under the age of 16 and their families. An investment of funds to meet the
complex needs of these families would increase the safety net for our youngest and
most vulnerable residents.
4. FY2013 -15 Biennial Budget Council Appropriations
During the FY2011 -2015 HSGP cycle, Council appropriated $93,000 in Council
discretionary funding for youth employment and training, and $65,000 in one -time
funding for enhanced legal services to address tenant harassment. A HSGP budget
enhancement request would be submitted with the Proposed FY2015 -17 Biennial
Budget if it is decided to continue addressing these council priorities.
In addition to these expanded services, the HSGP will continue to prioritize services to the
following target populations:
Youth and Families
Santa Monica's Cradle to Career Initiative (SMC2C) is a partnership among: City of Santa
Monica, Santa Monica - Malibu Unified School District, Santa Monica College, and a variety of
youth and family- serving agencies. Together, these entities work to address the social,
emotional, academic, and physical needs of youth. The initiative is data - focused, with the
release of two Youth Wellbeing Report Cards documenting a variety of data points in the areas
of physical, social, emotional, and academic wellbeing. While these reports show that, overall,
Santa Monica youth are faring well; there is a small but significant portion of the youth
population that is vulnerable. The HSGP seeks to target services to these youth and their
families.
Human Services Grants Program 2015 -19 Funding Rationale p.10
Attachment A
The Human Services Grants Program seeks to establish, manage and provide a system of service
in Santa Monica which operates programs that are proven to be effective and yield high impact
outcomes in the areas of youth wellbeing, resiliency, parental support, reduced social isolation,
safe and adequate housing, self- sufficiency, and healthy behaviors. While time and resource
intensive, this coordinated approach is preferred and supported through the HSGP. Programs
that can "move the needle" toward strengthening families and improving results for children
will be given the highest priority for funding.
Services provided may include:
• Economic Security & Employment Assistance
• Education
• Child Care
• Family Wellbeing
• Early Care & Education
• Community & School Mental Health
• Coordination of a Wellness Center at Santa Monica High School
• Substance Abuse Education & Treatment
• Opportunity Youth
• College & Career Readiness
Homelessness
Since the adoption and implementation of the Action Plan to Address Homelessness in Santa
Monica in 2008, the City has focused on aligning its resources with activities and services that
are effective in engaging and housing the most vulnerable individuals, thereby reducing street
homelessness and the impact on our community. Toward that end, the City will continue to
emphasize and prioritize programs that employ the Housing First and Rapid Re- housing models
to reduce street homelessness and ensure that households do not return to homelessness.
To be consistent with federal requirements, the City will be tracking and evaluating programs
based on serving the most acute Santa Monica priority participants, as identified through the
VI -SPDAT assessment tool, as well as the following program measures:
• Reduction in the length of time from engagement to housing placement
• The length of housing retention post - placement
• Reduction in the number of households who experience repeated episodes of
homelessness
Services provided may include:
• Utilization of Coordinated Assessment Tool — VI -SPDAT
• Housing Placement Employing Housing First
• Interim Housing
• Substance Use Disorder Treatment
• Housing Stability and Retention Services
Haman Services Grants Program 2015 -19 Funding Rationale p.l 1
x; 11_
• HUD Continuum of Care Programs
• Santa Monica Homeless Community Court
• Project Homecoming
• Rapid Response Outreach Pilot Program
Seniors & People with Disabilities
The primary focus for seniors and people with disabilities is the provision of well- coordinated
services that promote independence, support housing retention and aging at home when
appropriate, encourage personal and financial wellbeing, and create connections to the
community. Services provided in the home and in key community locations, and services using
assertive, collaborative strategies and demonstrate clinical capacity to engage the most
vulnerable seniors and people with disabilities, who have multiple needs and may be resistant
to services, will be given priority.
Services provided may include:
• Intensive and assertive care /case management
• Housing - related support
• Nutrition services
• Socialization, healthy living and community connection
• Paratransit services
Support Services to Low - Income Households
For low- income households, including those who are homeless in Santa Monica, key priorities
include intensive case management /counseling, increasing economic security, access to
healthcare, transportation assistance, legal assistance, and help for those experiencing
domestic violence.
Services provided may include:
• Economic Security & Employment Assistance
• Primary & Preventative Healthcare
• Legal Assistance
• Homeless Prevention for Overcrowded /At -Risk Households
• Domestic Violence Services
• Family Self Sufficiency
Enhanced Data Management System
In order to better track and manage the more complex needs and coordinated services
required to successfully engage and support the most difficult to reach households, the HSGP
Hunan Services Grants Program 2015 -19 Funding Rationale p.12
Attachment A
will require a significant investment in an improved data system. Centralized data management
has proven to be critical in implementing the City's Homeless Initiatives. The investment in the
initial set -up and on -going administration of a centralized Homeless Management Information
System (HMIS) has allowed a holistic view of services being provided within the City, including
who is accessing services, where they come from and how the City's service infrastructure is
integrated into the larger regional system of care. This data is critical in establishing the City's
capacity for services, as well as to inform and influence regional policies regarding resource
allocation and local responsibility. Standardized data collection and reporting also allows for the
tracking of outcomes across programs in a uniform way, improving program monitoring and
creating better accountability. In an effort to bring these benefits to all HSGP program areas,
staff is exploring the feasibility of expanding this type of centralized data collection across other
program types which would allow the City to:
• Conduct a system -wide unduplicated count of persons accessing services;
• Track services and client outcomes system -wide;
• Provide data that will allow City staff to measure program impact, ensure compliance,
identify gaps and opportunities for better collaboration;
• Collect and query client demographics and needs;
• Identify "bottlenecks" in service delivery; and
• Use new technologies to increase data collection and assist in the developments of new
projects and reports.
A consultant has been engaged to provide a preliminary assessment of existing data needs. If
the assessment determines that the City's current HMIS system can meet the broader needs of
the HSGP, the implementation costs could be significantly lower. Staffing needs to support an
expanded system will be examined as part of the assessment of HSD's overall data
management needs. Staff will assess the information and return to Council with budget
recommendations within the Proposed FY 2015 -17 Biennial Budget.
Through an enhanced Human Services Grants Program, the City ensures an effective, strong
safety net for the most vulnerable residents, and reduces the inappropriate and ineffective use
of City resources. In addition, the HSGP can provide stable funding where federal, state and
county programs and resources fall short.
REVIEW PROCESS
The three -phase review process is as follows:
Phase 1: Proposal Screening. Applications received by the deadline will be reviewed to
determine whether they meet the City Council- approved minimum eligibility requirements.
Human Services Grants Program 2015 -19 Funding Rationale p.13
Those proposals that meet all the minimum eligibility requirements will proceed to the second
phase of the review process. Late proposals are not accepted regardless of postmark.
Phase 2: Proposal Evaluation. During this phase, reviewers are instructed to evaluate the
applications on the basis of identified City Council- approved 10 selection criteria and the
funding priorities. For each proposal, the ratings of all reviewers will be aggregated.
Applications favorably reviewed by City staff, members of City Boards /Commissions and
selected outside reviewers who are professionals with expertise in program development,
operations or nonprofit management will be considered for the next phase of the process.
Phase 3: Proposal Selection. Once final ratings are established for all proposals, City staff will
take into account reviewer feedback, available funds, the agency's past performance in
program planning, service delivery, outcome achievement, administration and collaboration,
and the intent to fund a diverse mix of programs to ensure a complete network of needed
services across City initiatives and SMPP. Final funding recommendations will be announced to
each agency and presented to the City Council for final approval in June 2015.
Technical Assistance Workshop
All applicants are required to attend the technical assistance workshop listed below before
submitting an application. The workshop will be held at the Santa Monica Public Library:
Tuesday, February 10, 2015, 9:30 am —11:00 am
(The Santa Monica Public Library is located at 601 Santa Monica Blvd., between Broadway and
Arizona in downtown Santa Monica.)
Notification
Successful applicants will be notified of their award no later than June 30, 2015.
Application Deadline
Applications and supplementary materials for the 2015 -19 HSGP grant cycle must be in the City
of Santa Monica Human Services Division office no later than 5:00 pm, Monday, March 9, 2015
(not a postmark deadline).
Human Services Grants Program 201549 Funding Rationale p.14
'3
Proposed Organizational Support Program and Strategic Sustainability Initiative Grant
Rationale, Grant Criteria, and Consultant Report
1. OVERVIEW: 2014 Arts Community Assessment
Over the course of the last few months, staff collaborated with the City's cultural community
to develop an assessment of current, pressing arts and cultural needs. Staff worked with
consultant Jerry Yoshitomi, who developed the comprehensive cultural funding report
presented to Council on JaDu ,r, 2 t�_20QW8, to implement a broad, effective outreach and
engagement process. The objective of the process was to ascertain community issues and
concerns and gather feedback on the current needs of Santa Monica arts organizations. The
process, implemented by Mr. Yoshitomi with staff support, included a survey of City -based
arts organizations, aggregation and analysis of the survey responses, a facilitated discussion
with the broader arts community, and analysis of financial information from current
Organizational Support Program grantees. In addition, formal site visits were conducted by
staff to a selection of both current and prospective grantees. Findings from this assessment
provided the basis for the recommendations for the next funding cycle.
11. FINDINGS
A. Increase in Services from Arts Agencies
The community assessment process revealed that Santa Monica arts and cultural
organizations have improved the reach and impact of their services to residents over the
past three years (since FY11 -12). Data provided by grantee reports show that both the
number of programs offered and the number of total visits by Santa Monicans have
increased overall.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.l
I'IFT7rT3
Over the last three years of the Organizational Support Program, the number of
programs provided by grantees increased by 19 %:
7 T,
Total it of Programs Fo
FY 12: 592
FY 14: 702
Increase: 19%
Over the same period, the number of total visits by Santa Monicans to grantee
programs has increased by 33% from 58,280 to 77,586:
Total 4 of Santa Monicans Served
W, C11
FY 12: 58,280 If C
FY 14: 77,586 000
,10 Increase: 33% a
0
B. Economic Instability and Rising Real Estate Costs
The increase in levels of service has put additional stress on local organizations,
exposing sustainability issues in Santa Monica's core nonprofits. The trend, sharply felt
in the nonprofit arts sector, of steadily rising real estate costs and diminishing
philanthropic support for the arts, threatens the availability of nonprofit space in Santa
Monica and has negatively impacted the sustainability of the City's core arts
organizations. Sustainability is defined in this case as an organization's ability to
continue to provide cultural services in Santa Monica over the medium -to -long term.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.2
C. Low Salaries
A component of sustainability is the ability to retain professional staff. Comparative data
provided by the Cultural Data Project' as part of this community assessment shows that
Santa Monica groups spend less of their annual budgets on salaries than is the norm in
comparable cities. On average, only 2.4% of organizational expenditures go to salaries,
compared to an average of 40% in other cities. Santa Monica organizations lack the
resources to raise salaries and replace volunteers with paid staff.
D. Inadequacy of Funding Sources
A critical component of sustainability is the adequacy of funding sources. There are
many individual donors contributing to Santa Monica's organizations, but average
donations are relatively low. Public grant funding plays an important role in the City.
Santa Monica commendably provided stable funding to the arts through the recession,
but OSP funding levels, aside from a 1.0% increase last June to adjust for the lack of CPI
increases in prior years, have not increased in seven years. Analysis shows that OSP
support as a percentage of aggregated grantee expenditures has, in fact, declined by
more than half over the last four years, from a high of 4.6 %, in the period before 2011,
to 2% today.
Further, several newer organizations that have been active in Santa Monica for over five
years and who have the potential to bring effective programs and demonstrated impact
to the group of core City organizations, are expected to apply to OSP for the first time
this year. Should they be reviewed favorably, their addition to the core group will put
the greatest pressure on available funds since the inception of the program. Staff
expects that up to three such high - quality arts and culture agencies will have matured
enough to meet OSP's five -year minimum residency requirement this year.
'The Cultural Data Project is a national nonprofit arts service organization that collects reliable, longitudinal data
on the arts sector.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.3
A. Potential OSP Program Expansion
Nonprofit organizations in Santa Monica are particularly challenged by the city's
consistently rising real estate prices. Safe - harboring longstanding, worthy, cultural
agencies and ensuring their continued presence within the community is at a critical
juncture. In the light of analysis of identified needs obtained in the community process,
staff is concerned that Santa Monica may face a changed arts and culture ecosystem,
with some longstanding agencies, along with newer, highly- effective organizations,
forced to reduce programs and/or look for less expensive office and program space
outside the City.
The next four -year grant period represents a pivotal opportunity for City support to
have a significant impact on the future and stability of Santa Monica's core arts and
culture agencies. The stable multi -year funding provided by the OSP grants is exactly the
kind of support that can make a substantive difference in a nonprofit organization's
ability to plan effectively for the future. Staff anticipates that OSP's historic level of
funding from the General Fund will be stretched this year with highly - qualified renewal
requests from existing core arts agencies, as well as new requests. Staff will return to
Council during the FY15 -17 budget process with funding recommendations based upon
the proposals received, including any recommendations for the potential expansion of
the OSP program.
B. New Supplemental Grant Program
Staff also recommends that Council establish, with resources from the City's Cultural
Arts Trust Fund 2, a new Strategic Sustainability Initiative to provide targeted assistance
to OSP grantees. Grants would range from $5,000 to $15,000 and would require a dollar
for dollar match from the requesting agency.
' The Cultural Arts Trust Fund was established through the Developer Cultural Arts Requirement to support arts
activities in Santa Monica, including grants.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.4
Using the guidelines proposed below, the Strategic Sustainability Initiative would accept
applications from OSP grantees for one -time support to implement a project or
innovation that will strengthen the agency's medium -to -long term sustainability.
Initiatives that enhance an agency's sustainably over the medium -to -long term include:
• Securing renewal, reliable revenue streams
® Strategic lowering of costs
® Programs designed to attract new sources of annual funding
® Stabilization of real estate issues
The proposed supplemental grant program would be available only to OSP grantees
through a separately administered application process similar to the Human Services
Division's Technical Assistance program.
IV. GOALS OF THE OSP AND STRATEGIC SUSTAINABILITY INITIATIVE
The goals for the OSP program would remain unchanged and apply to both programs. They
are to:
• Increase and sustain world -class artistic production and exhibition in Santa Monica
• Deliver opportunities for creativity, artistic participation and the understanding of
cultural heritage to all Santa Monicans
• Promote high standards of organizational management in Santa Monica's arts and
culture ecosystem
• Highlight the City as an international creative center
• Open avenues of discourse to broad topics of human creativity and learning among
the general public
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.5
A. OSP Application Process and Grant Workshop
Staff proposes that the OSP application process continue the established practice of
ensuring that organizations are measured against others of comparable resources and
impact by using tiers of evaluation according to organizational budget size:
• Small (up to $249,999)
• Medium ($250,000- $499,999)
• Large ($500,000-$2,999,999)
• Very Large ($3,000,000 +)
Staff also recommends that a pre - application process be implemented to include a
required workshop for all prospective grantees to help organizations understand the
eligibility requirements, the application process and the selection criteria before they
apply.
B. Core Organization Qualification and Other Eligibility Requirements
Stable, multi -year funding is reasonably restricted to those service providers who can be
expected to have a continuity of programming on a year -to -year basis. These are
defined as the City's "core" arts and culture organizations. As in previous years,
guidelines would continue to define core organizations, first of all, as those that are
resident in Santa Monica, which means those whose administrative offices and primary
location of programming (more than 50 %) are demonstrably within Santa Monica city
limits. To further define the City's core organizations, staff proposes that qualifying
organizations must:
• Demonstrate ongoing, sustainable access to a "home" program facility in Santa
Monica, eitherthrough ownership or rental
• Have adequate paid professional staff in comparison to similar organizations of their
size and type
• Have completed five years of Cultural Data Project profiles
• Have either annual audits (for organizations with budgets over $500,000) or a review
of financial statements by a CPA in the past two years (for smaller organizations).
OSP and Strategic Sustain ability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.6
37
In addition, applicants would continue to be required to:
® Comply with Fair Labor Standards; and
® Remain in compliance with Title VI of the Civil Rights Act of 1964, Title VIII of the
Civil Rights Act of 1968 (as amended), and the Americans with Disabilities Act (ADA)
of 1990. The applicant may not discriminate in the hiring of staff or provision of
services on the basis of race, religion, sex, age, national origin, disabilities, HIV
status, political affiliation or beliefs, or sexual preference.
C. Proposed Selection Criteria - OSP
Applications will be reviewed according to how well the organization demonstrates its
effectiveness in meeting a majority of the following selection criteria:
1. Artistic Achievement
• Offers programs of cultural and artistic excellence
• Pays artists for their work
2. Managerial, Governance and Fiscal Achievements
• Has a diversified funding base, with no more than 25% of total cash funding or
in -kind support derived from the City of Santa Monica
• Demonstrates administrative vision and financial stability, including evidence of
strategic planning, standard bookkeeping procedures and documentation of all
donors
3. Community Engagement, Collaboration, Partnerships and Future Aspirations
• Shows evidence of community impact and support through the documentation
of audience or program participants with proof of local address, and /or
participation by Santa Monicans on the board of directors
• Meets community needs in a range of programs
• Dedicates a portion of excellent programming and resources to Santa Monica's
underserved communities
• Links and collaborates with other Santa Monica -based arts and cultural
organizations
OSP grants may be awarded to organizations whose applications are favorably reviewed
and scored by a group of professional readers, selected by the Cultural Affairs Division,
OSP and Strategic Sustainabibty Initiative Grant Rationale, Grant Criteria, and Consultant Report p.7
Attachment B
according to the above criteria. Recommended funding levels will be presented to
Council for approval as part of the City budget.
D. Proposed Selection Criteria — Strategic Sustainability Initiative
Proposals will be accepted on a rolling basis from the pool of OSP grantees.
Organizations must be OSP grantees with all their reporting and paperwork current to
be eligible for Strategic Sustainability Initiative funding. Organizations can receive only
one grant under this program during the four -year OSP grant cycle. Applications will be
reviewed according to how well the proposals meet the following selection criteria:
1. Proposal plausibly addresses the medium -to -long term impact of the agency's
sustainability in Santa Monica
2. Proposal is part of an adopted strategy or visioning process that addresses the
future financial sustainability of the agency
3. Proposal demonstrates alignment between the organization's staff and board
Strategic Sustainability Initiative grants may be awarded to organizations whose
proposals are favorably reviewed and scored by staff of the Cultural Affairs Division,
according to the above criteria.
VI. REPORT FROM CONSULTANT JERRY YOSHITOMIl
Consultant Jerry Yoshitomi implemented components of the 2014 community assessment
process, with staff support, including a survey of City -based arts organizations, aggregation
and analysis of the survey responses, a facilitated discussion with the broader arts
community and analysis of financial information from current OSP grantees. His report
follows.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.8
and the Organizational Support Program
Prepared by Jerry Yoshitomi for the City of Santa Monica Cultural Affairs Division
December 15, 2014
COMMUNITY ASSESSMENT: PROCESS & TASKS
First, an assessment was conducted of City arts grantees' financial and program data, using annual
reports, IRS Forms 990 and Cultural Data Project3 (CDP) reports, including a review of ratios of donations
per donor and the increase /decrease in number of programs and number of Santa Monicans served. A
study was specially commissioned from the Cultural Data Project staff comparing Santa Monica
organizations to others in similar communities around the U.S." The current cohort of OSP grantees and
the amount of OSP funds awarded over time were reviewed and assessed, including information
available online through organizational websites as well as media sources available through online
searches. Following that, a review and assessment was conducted of the current, Santa Monica City
Council- approved Organizational Support Program eligibility requirements and review criteria.
An online survey was then created and distributed widely to thirty -eight (38) Santa Monica arts and
cultural organizations. Responses from twenty -five (25) groups were received, tabulated and assessed.
The survey asked the following questions:
1. For your organization, what, if anything, has changed over the last four years?
2. List each space in Santa Monica your organization uses for office /program; amount of use; if
owned/leased; & how secure you feel that you can continue to use that space in the future.
3. What are the most pressing issues facing your organization?
4. What benefits, if any, have you gained by using the CDP as a management tool? Do you
have any suggestions regarding how it could be improved to further its use as a management
tool?
5. If your organization is a past OSP applicant, a current grantee, or plans to apply in 2015, do
you think the eligibility requirements should be amended? If so, how?
6. Do you have any other comments or questions?
After groups responded to the survey, forty -seven (47) staff /board members representing thirty -eight (38)
Santa Monica arts and cultural organizations were invited to an arts community meeting on November 6,
2014. Seventeen (17) people participated. An analysis of their comments is included below. Consultant
and staff listened to cultural organization representatives discuss the survey questions and other
facilitated topics, including:
1. How does your organization impact the creativity and creative expression of Santa Monica
and its residents?
3The Cultural Data Project is a national nonprofit arts service organization that collects reliable, longitudinal data
on the arts sector.
^ Comparison communities in the study were: Santa Monica; Berkeley; La Jolla; San Francisco; IL- Evanston; AZ-
Scottsdale; MA- Cambridge; MD- Montgomery County; PA- Montgomery County; NY- Westchester.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p9
2. Thinking about the next four years (2015 - 2019), what parts of your organization might be at
risk? How might you address those issues?
LONGEVITY
Emblematic of Santa Monica's unique character are the breadth and history of cultural organizations
serving Santa Monicans, with some having just been created and others with twenty, thirty years, and
longer histories.
R, Year, organ zaliort has provided pro rarns in +tar :ta Monica
Santa N}ol?ica Synapilong
?vlorr;an- zAli:tsen theatre
h.evt,� i'la;nr,a it;hts Frn,nldaiion
Cali7ornia Heritage tvlLLeurn
The Verdi Chorus
Santa Moniae fvluseum of Art
Donna Sternberg & Dancers
Santa Monica History A4useum
18th Street At k Center
City Garage Theatre (Aresk Ensernble)
Santa Monica :art Studios
I- lighkvays Pertorrnance Space and Gallery
MusIL3 Angckca Baroque prrjtestra
Virginia Avenue Projcu
Sanea Monica Corsorvanry
Ruskin Group Theatre
T oAda ?r odur i Ions
flement,i Silings
Jacaranda
T- h?atre \Without O'order
Cabeza do Vac, r-UITUra
PBadison ,Project dkA The Broad Stage
zanheol N1 inc,
Saute Monica nepertuiy Theater
Orchestra Santa Mow ca
4 10 Al 30 Gil 50 60 ;0 3U
SANTA MONICA'S ARTS AND CULTURAL PUBLIC POLICY LEADERSHIP
The Santa Monica City Council and the communities it represents are the nexus for creative and
progressive work in aligning the work of arts and cultural organizations to the City's long term vision.
Santa Monica is one of only a few cities nationally to include art and culture in the City's Sustainability
Plan and to include the arts in the assessment of Santa Monica's wellbeing. The ground- breaking cultural
plan approved by Council in 2007 Creative Capital., Culture, Community, Vision is foundational to this
work and is a model to be emulated by other creative municipalities.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.10
i
IMPACT ON SANTA MONICA AND SANTA MONICANS
In the arts community meeting and in the online survey, several organizational representatives spoke
about the ways arts and culture organizations can positively impact residents in terms of the recognition
of the importance of diversity in Santa Monica, of bringing issues of social justice into focus and the value
of the arts in providing new perspectives.
SANTA MONICA'S UNIQUE COMMITMENT TO AGENCIES OF ALL BUDGET SIZES
OSP was created to "provide stable funding for the cornerstone agencies of the community's cultural life"
In many public agencies, such funds are restricted to the large- budget organizations. However, Santa
Monica recognizes the importance of a diverse range of strategies and approaches in meeting a
community's cultural needs. Groups supported by OSP range in budget size from $120,000 $5,420,000,
with grant levels currently ranging from $5,500 to $66,000.
Budget Range 2013 -14
$120,000 to $5,420,000
I'D 11D,
3
4
J
1 d
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.11
RAPID GROWTH IN PROGRAMS
Over the last three years of the Organizational Support Program, the number of programs provided by
supported groups increased by 19 %:
Total # of Programs
FY 12: 592 `,
FY 14: 702 GrO
t�
Increase: 19%
5 2
�; _a[z ry 20N
RAPID GROWTH IN SANTA MONICANS SERVED
Over the same period, the number of total visits by Santa Monicans to grantee programs has increased
by 33% from 58,280 to 77,586:
3CPP^
E[;WM
e OW
Total # of Santa Monicans Served
��GOo
FY 12: 58,280
FY 14: 77,586
Increase: 33% ter„
IGOOD
LEVEL FUNDING
Aside from a ten percent increase last June to adjust for the lack of CPI increases in prior years, OSP
funding levels have not increased since FY08 -09, when the program received a three percent increase
over FY07 -08. In FY10 -11, OSP support amounted to 4.6% of grantees' aggregated expenditures. Today
that number is 2.0 %.
SUPPORT FROM FOUNDATIONS, INDIVIDUALS AND GOVERNMENT SOURCES
Major regional and national foundations have recognized and supported the distinguished work of some
of Santa Monica's arts and cultural organizations. This support has been, however, primarily episodic in
nature and does not directly lead to the sustainability of services so vital to Santa Monica's wellbeing.
OSP support as a percentage of overall grantee budgets has declined by more than half over the last ten
years, from a high of 4.6% in the period before 2011 to 2.0% today. This is primarily due to the influx of
OSP and Strategic S ustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.12
new, eligible groups to the program, including one very large organization, the Madison Project/Broad
Stage. The City's Cultural Plan calls for an eventual goal of supporting 10% of arts and cultural
organization budgets.
Santa Monica's arts and cultural organizations are largely supported by modest donations from donors
and volunteers of modest means. The annual expenditures of the eleven arts and cultural organizations
now supported in Santa Monica's Organizational Support Program have combined annual expenditures
of approximately $11 Million. One half of that amount is contributed by one organization, the Madison
Project/Broad Stage. The remaining ten organizations, as a group, are supported by approximately 3,600
board members and individual donors who contributed a total of $974,118 in FY 2012. This reflected an
average donation of $269. This means that for every $1,000 donor, on average, there were three $50
donors.
In addition to these contributed funds, those ten organizations received donated managerial and
administrative services from their working boards of directors, likely reflecting several hundred thousand
dollars more in contributions from modest income individuals.
The arts and cultural organizations in Santa Monica are built close to the ground. Santa Monica's populist
roots and values are reflected in their business models. Santa Monica's arts and culture organizations
uniquely emphasize program impact, not prestige for deep pocket donors. These business models,
however, become less viable when boards of directors become fatigued from increasing demands and
there aren't people in the wings to take over.
LOW SALARIES AND REAL ESTATE ISSUES
The stress on Santa Monica's fragile system of support has necessitated stringing together work by
volunteers in what would otherwise be paid managerial positions. A special comparative study
commissioned from the Cultural Data Project for this assessment indicates that salaries represent only
24% of Santa Monica's arts and cultural organization expenditures, compared to the norm in other
comparable cities of 40 %. Considering an approximate budget of $11 million per year, Santa Monica arts
spending on salaries and benefits is $1.7 million less than comparable organizations in other locations.
Even more stress is placed on sustainability by Santa Monica's well- documented leaps in the value of
commercial and residential real estate.
RECOMMENDATIONS: DONOR DEVELOPMENT
Rather seeking to identify deep pocket donors, it is suggested that Santa Monica's arts and cultural
organizations consider developing an expanded base of values - aligned donors, and increasing the
contributions, possibly through monthly donations, of current donors. It is also recommended that the
Cultural Affairs Division periodically convene the City's nonprofit arts staff to address issues of
sustainability, particularly focusing on the potentials for increasing both the number of individual donors
and the size of their gifts.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.13
6AJ4 �y
Number of
Amount-
y
Donors
Contributed
r..
3,626
$974,118
$269
In addition to these contributed funds, those ten organizations received donated managerial and
administrative services from their working boards of directors, likely reflecting several hundred thousand
dollars more in contributions from modest income individuals.
The arts and cultural organizations in Santa Monica are built close to the ground. Santa Monica's populist
roots and values are reflected in their business models. Santa Monica's arts and culture organizations
uniquely emphasize program impact, not prestige for deep pocket donors. These business models,
however, become less viable when boards of directors become fatigued from increasing demands and
there aren't people in the wings to take over.
LOW SALARIES AND REAL ESTATE ISSUES
The stress on Santa Monica's fragile system of support has necessitated stringing together work by
volunteers in what would otherwise be paid managerial positions. A special comparative study
commissioned from the Cultural Data Project for this assessment indicates that salaries represent only
24% of Santa Monica's arts and cultural organization expenditures, compared to the norm in other
comparable cities of 40 %. Considering an approximate budget of $11 million per year, Santa Monica arts
spending on salaries and benefits is $1.7 million less than comparable organizations in other locations.
Even more stress is placed on sustainability by Santa Monica's well- documented leaps in the value of
commercial and residential real estate.
RECOMMENDATIONS: DONOR DEVELOPMENT
Rather seeking to identify deep pocket donors, it is suggested that Santa Monica's arts and cultural
organizations consider developing an expanded base of values - aligned donors, and increasing the
contributions, possibly through monthly donations, of current donors. It is also recommended that the
Cultural Affairs Division periodically convene the City's nonprofit arts staff to address issues of
sustainability, particularly focusing on the potentials for increasing both the number of individual donors
and the size of their gifts.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.13
Attachment B
RECOMMENDATIONS: LEVELS OF OSP SUPPORT
It will be difficult for Santa Monica's arts and cultural organizations to maintain the high level of impact
they have been able to achieve over the past three years. Survey respondents and community arts
meeting participants described the high level of personal fatigue and organizational stress resulting from
the cumulative impact of increased demand for arts and cultural services combined with low salaries and
increased pressure on office and program space cost. It is recommended that the City's allocation be
increased, at minimum, to 5% of the aggregated budgets of Organizational Support Program groups, a
small advance on FY2010 -11 levels of 4.6 %.
RECOMMENDATIONS: NEW STRATEGIC SUSTAINABILITY INITIATIVE
Under the circumstances cited above, some of the groups with the longest- tenured service to Santa
Monica are the most in jeopardy. It is recommended that the City consider a Strategic Sustainability
initiative to help further address sustainability issues. Sustainability in this case is defined as an
organization's ability to continue to provide excellent cultural services in Santa Monica over the medium -
to -long term. A Strategic Sustainability Initiative would provide one -time change capital to assist
cornerstone agencies in strengthening their medium -to -long term outlook. The proposed add -on funding
would be available only to OSP grantees, and should be based on each applying organization's particular
strategic sustainability needs, with a general emphasis on increasing income or decreasing costs over
the medium -to -long term.
OSP and Strategic Sustainability Initiative Grant Rationale, Grant Criteria, and Consultant Report p.14