Staff presented the commission with eight funding-allocation options on July 10 and recommended either Option 1 or Option 7, Michelle said, summarizing the grant review: the commission received 20 applications requesting a total of $841,761 and staff had $300,000 available. "I added the option 7 because of the feedback that I heard from this commission the last time we met," Michelle said, explaining Option 7 would allocate larger partial awards to the highest-scoring applicants while still funding the top cohort.

Commission discussion focused on two tensions: whether to spread limited funding to every applicant so all organizations receive something, and whether to concentrate funding so a smaller group can achieve closer to their requested staffing or program goals. Commissioners and staff flagged that awarded funds will be restricted to the scope in each application; several commissioners noted that small partial awards may be unusable for applicants requesting funding for a full staff position.

Commissioners discussed specific organizations and service types in the packet, noting examples where partial awards would still accomplish direct-service work (for example, some applicant staffing requests could be covered at two-thirds or half funding levels). Several commissioners said they favored concentrating resources where they could sustain staff positions and programs, citing nonprofit capacity and the practical effect of restricted partial awards.

After first failing to obtain a second on a motion for an alternative option, a motion to recommend Option 7 to the City Council was made and seconded. Chair and commissioners then voted in favor and the commission approved the recommendation. The transcript records the motion passing with all those present voting to recommend Option 7; the commission forwarded that recommendation to the Lacey City Council for final action.

Staff summary details in the packet: maximum request per application was $50,000; staff offered multiple allocation scenarios that sought to use the entire $300,000 available; the staff report categorized priority areas as housing, survival and security, and basic needs (equal weight in the current needs assessment phase). The commission asked staff to note application design issues and capacity differences among nonprofits as areas for future process improvements.