Summary Sheet- RFCA SUMMARY
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CITY OF TEMPE Meeting Date: 6/25/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 7C5 ACTION: Adopt a resolution approving of and authorizing the Mayor to execute an Affiliation Agreement between the City of Tempe and Tempe Community Council, Inc. (Resolution No. R2026.74) FISCAL IMPACT: As part of this Affiliation Agreement, the City of Tempe will engage in a pilot capacity building grant process with Tempe Community Council (TCC) over a two-year period. Each one-year term will provide $180,000 to align with capacity-building grant deliverables specified within Exhibit A of the Affiliation Agreement. Sufficient budget appropriation for expenditure of these funds is available in Fund 10000, Cost Center 2951, as part of the Fiscal Year 2026/27 General Operating budget. RECOMMENDATION: Adopt Resolution No. R2026.74. BACKGROUND INFORMATION: The Tempe Community Council (TCC) has operated as an independent 501(c)(3) nonprofit organization since 1976, serving as a community convener and partner in advancing human services in Tempe. In 2017, the City of Tempe (City) and TCC entered into a formal affiliate agreement. The agreement embedded three (3) City staff positions within TCC to strengthen coordination and community-based planning. Over time, the number of City-assigned staff and operational integration has expanded to six (6) full-time and one (1) part-time position, and considerable support from Community Health and Human Services (CHHS) Administration. Since 2017, CHHS has grown significantly in both staffing and programmatic scope. CHHS now possesses the internal expertise, administrative systems, and operational capacity to directly manage functions previously supported through the affiliate structure. At the same time, TCC-funded staffing and programmatic capacity have declined, and the role of TCC has narrowed primarily to convening and administrative functions. These shifts have altered the balance that justified the original affiliate model. The proposed Affiliation Agreement between the City and TCC recommends a realignment of staffing and operational responsibility. Under the approach: City-assigned staff currently operating within the original affiliate structure will return to CHHS supervision and budget authority over a two-year period; The City will conclude the embedded staffing component of the original affiliate agreement; TCC will operate as an independent nonprofit partner, collaborating with the City through contracts, MOUs, and advisory roles where appropriate. To support a responsible transition and maintain a strong community partner, staff recommends creating a Capacity Building grant category within the existing Agency Review process, funded through recurring salary savings associated with existing staffing vacancies. This new category will: Support nonprofit infrastructure, governance, and sustainability; Strengthen organizational capacity within the human services ecosystem; Promote long-term resilience and accountability. 2 ATTACHMENTS: 1. 20260625_RCM_CHHS_COT_TCC_AFFILIATION_AGREEMENT_RESOLUTION.DOCX 2. 20260625_RCM_CHHS_ COT_TCC AFFILIATION_AGREEMENT.PDF STAFF CONTACT(S): Tim Burch, Community Health and Human Services Director, (480) 858-2358 Department Director: Tim Burch, Community Health and Human Services Director Legal review by: Clarence Matherson, Jr., Deputy City Attorney Prepared by: Rachael Brickner, Administrative Manager