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HomeMy WebLinkAbout06-24-2014 Planning Commission Special Meeting Minutes-1- SPECIAL MEETING June 24, 2014 PLANNING COMMISSION MEETING CALL TO ORDER: The meeting was called to order at 6:30pm by Chairman Cruz. POSITION MEMBERS PRESENT MEMBERS ABSENT No. 1 VACANT No. 2 Tony Bachart No. 3 Andy Anderson No. 4 Alecia Greenaway No. 5 Joe Cruz No. 6 Loren Polk No. 7 Zahra Khan No. 8 Jana Kempf No. 9 Gabriel Portugal APPEARANCE OF FAIRNESS: Chairman Cruz read a statement about the appearance of fairness for hearings on land use matters. Chairman Cruz asked if any Commission member had anything to declare. There were no declarations. Chairman Cruz then asked the audience if there were any objections based on a conflict of interest or appearance of fairness question regarding the items to be discussed this evening. There were no objections. ADMINISTERING THE OATH: Chairman Cruz explained that state law requires testimony in quasi-judicial hearings such as held by the Planning Commission be given under oath or affirmation. Chairman Cruz swore in all those desiring to speak. APPROVAL OF MINUTES: There were no minutes to approve at this meeting. PUBLIC HEARINGS: Angie Pitman, Block Grant Administrator, discussed Community Development Block Grant Funds. The purpose of the grant program is to preserve and develop viable urban communities by expanding economic opportunities, providing decent housing opportunities and creating and sustaining suitable living environments. There are specific grant requirements to receive the funds: (1) The City has to be an entitlement city and to qualify it has to have a population over 50,000 or it has to be in an urban community, (2) To receive funds it is based on the demographics as the jurisdiction, such as the availability of suitable housing and income level. A five-year consolidated plan is required to set the goals and strategies for spending during the five-year grant period. Each year an annual action plan is developed that is a supplement to that consolidated plan which forms the basis of carrying out annual goals and objectives throughout the program year. -2- At the end of the program year a consolidated annual performance evaluation report evaluates the City’s performance in meeting the goals that it had set out in the annual action plan. Citizen participation is mandatory throughout the process and encouraged. The City publishes in the newspaper and other outlets as necessary to get public opinion on the grant programs. In 2009 the consolidated plan was prepared for program years 2010-2014. Currently the City is operating in the last year of the plan. At this time information is being gathered to create a plan for the next five years for 2015-2019. A. Block Grant 2013 Consolidated Annual Performance Evaluation Report (CAPER) (MF# BGAP 2014-001) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the 2013 Consolidated Annual Performance Evaluation (CAPER). Mr. White pointed out the expenditures which were broken down into categories. For 2013, Public Service activities totaled $70,000 (per HUD regulations cannot exceed 15% of total entitlement), $100,000 Planning & Administrative obligations (are costs that come with reporting, monitoring, direct staff costs for multiple positions and are limited to no more than 20% of total entitlement), there were further spending priorities for improving local economies, increasing decent housing and public infrastructure improvements. Commissioner Khan discussed 2013 budgeted spending and actual spending and asked if the unspent money budgeted gets reallocated. Mr. White responded that it does get reallocated or rolls over to the following year. With no comments the public hearing was closed. Commissioner Khan moved, seconded by Commissioner Greenaway, to close the public hearing and recommend the City Council approve the 2013 Consolidated Annual Plan Evaluation Report as presented. The motion passed unanimously. B. Block Grant 2015 Community Development Block Grant (CDBG) Fund Allocations (MF# BGAP 2014-003) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the 2015 Community Development Block Grant (CDBG) fund allocations. Each year the Planning Commission is designated as the body that conducts the public hearing and provides a recommendation to City Council regarding the allocations of these funds. The Planning Commission was provided a packet with all of the applications for funding for their review. Mr. White briefly discussed the applications for: CDBG Program Administration, Martin Luther King Community Center Recreation Specialist, Civic Center Recreation Specialist, Senior Citizen’s Center Recreation Specialist, Kurtzman Park & Volunteer Park Playground Equipment, Code Enforcement Officer, Alley CHIP & Seal Project, Sidewalk Replacement & -3- Ramp Installation, and Sylvester Neighborhood Improvements. All of which were applied for from various departments in the City, such as Community & Economic Development, Engineering and Administrative & Community Services. Karleen Crume of Benton Franklin Community Action Connections (CAC), 606 Davenport Street, Richland, WA spoke on behalf of the Community Housing Improvement Minor Rehab Program application. The project would assist low-income, owner-occupied homeowners in the City of Pasco with minor repair or rehabilitation funds for construction hard costs, actual construction, soft costs and project delivery. Commissioner Khan asked about the median and if the median income they use to determine eligibility is just for Pasco or for all of the Tri-Cities. Ms. Crume answered that all three citiesmake up the Kennewick-Pasco-Richland metropolitan statistical area which is where HUD established the guidelines determined by the number of household members. Commissioner Khan asked how many applicants has the CAC had for these funds. Ms. Crume responded that it is a new program for the CAC, starting in 2013. With assistance from city staff they are picking up speed. They have had several applicants, however one of the barriers has been every household must have legal citizenship per HUD guidelines. With marketing efforts, more and more people are applying. Chairman Cruz asked how CAC came up with $1,000 for matching funds. Ms. Crume replied that their Executive Director would be more able to answer that question but was unable to attend but they could get an answer by the next meeting. Chairman Cruz stated that typically the Planning Commission prefers to see higher matching funds. Marilou Shea of the Downtown Pasco Development Authority/Pasco Specialty Kitchen, 10412 Pine Court, discussed the application for the Pasco Specialty Kitchen. In the past the kitchen has typically been awarded $50,000 but with new initiatives in development they are requesting a $20,000 increase in funds. They are building alternative sources of revenue to diminish the grant dependencies on CDBG, creating jobs and their goal as the entire DPDA organization is to build the Pasco Specialty Kitchen into a state of the art facility. They wish to expand the use of the facility and increase the use of the kitchen in the community. To do this they wish to provide nutrition and cooking classes in the evenings throughout the week when there is low use in the kitchen to maximize the facility, partnering with medical community organizations and medical practitioners in an identified need of diabetes education and nutrition classes for what has become a national pandemic. They currently have a practitioner in the community looking for an outlet in which to provide diabetes education, particularly targeting the Hispanic community. Healthy alternative cooking classes, gluten free, canning classes are all popular classes as well as serve-safe certification classes. The kitchen is adding fee-based consulting services this year in terms of their business plans, marketing and obtaining funding. Ms. Shea stated that they are trying to provide jobs and education and optimize the facility. They wish to enhance the technology for ease of use for the clients, security updates, installation of a screen and projector for the Commercial Foods Academy. They anticipate scheduling software and budgeting software. -4- Chairman Cruz asked what the other sources are from their matching funds. Ms. Shea answered that it is program revenue from storage usage and facility fees. Chairman Cruz asked if that is an increase in revenue since the previous years. Ms. Shea responded that the revenue has stayed pretty flat but with the anticipated alternative sources of revenue they hope to have a larger match next year. Michael Goins of the Downtown Pasco Development Authority, 403 West Lewis Street, spoke in support of the Pasco Specialty Kitchen. He explained that in May 2014 the kitchen increased rates for the first time in a while, not just with hourly rates but also with equipment fees to assist with utility increases. With no further comments the public hearing closed. Commissioner Bachart moved, seconded by Commissioner Polk, to continue the public hearing and schedule deliberations and development of a recommendation for City Council for the July 17, 2014 Planning Commission Meeting. The motion passed unanimously. C. Block Grant 2015 HOME Program Allocation & Annual Work Plan (MF# BGAP 2014-004) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the 2015 HOME Program Allocation and Annual Work Plan. The last few years the HOME program has been amended to delete rehabilitation projects from the work plan and limit the HOME funding to down payment assistance to first-time home buyers because of increased regulations and the penalty of not complying with regulations was becoming onerous to the point where it did not make sense to provide rehabilitation for activities through HOME funding. The 2015 HOME Work Plan is focused on providing down payment assistance. The staff report indicates that the HOME Consortium itself (Pasco, Kennewick and Richland) is projected to receive $465,000 this year. That amount is based on an income level, household level and poverty level for all three cities, however, it is estimated that Pasco’s share of this entitlement would be about $116,000 and perhaps a share of another $100,000 in program income that the Consortium may receive in 2015. It is estimated that the City of Pasco will assist 12 first-time home buyers in 2015 with that $116,000. Commissioner Khan asked if there is a percentage allocated to how much each first-time homebuyer would qualify for or is it an income based decision. Angie Pitman, Block Grant Administrator, responded that the applicants must be income qualified to participate at 80% or below median income. They can receive up to $10,000 for the down payment or closing costs and it is based on need. There is a calculation used to determine how much the applicant has and how much is actually needed. Commissioner Bachart asked if there has been a problem with applicants maintaining payments. -5- Ms. Pitman answered that the program has more stringent requirements to qualify than the lenders do, looking at their ratios, ensuring they aren’t purchasing a home that they cannot afford. The City has not had any homes default and come back to the City to our knowledge. Commissioner Kempf moved, seconded by Commissioner Polk, to recommend the City Council approve the use of funds for the 2015 HOME Investment Partnerships entitlement as set forth in the “2015 HOME Fund Summary” as recommended by staff. The motion passed unanimously. D. Block Grant 2015 Neighborhood Stabilization Program (NSP) Fund Allocations (MF# BGAP 2014-005) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the 2015 Neighborhood Stabilization Program (NSP) fund allocations. The Neighborhood Stabilization Program was an economic revitalization effort started by the federal government in 2010. In that year the City received over $425,000 to specifically help with mitigating the impacts of home foreclosures on neighborhoods. With the funds, the City has given down payment assistance to 12 home buyers, the City has purchased and rehabilitated 3 homes that have since been sold to income eligible families and there is still money left from program income from the sales of these homes. It is estimated that in program year 2015, funds will be able to be used to recover 1-2 foreclosed homes or provide down payment assistance for foreclosed homes and owner-occupied rehabilitation as/or needed. Commissioner Bachart asked who the project manager on the homes purchased is for rehabilitation and who does the work. Mr. White responded that Angie Pitman, Block Grant Administrator, is the project manager and there is a bidding process to see who is awarded the work. Working with federal requirements is sometimes a challenge for contractors. Commissioner Khan asked if the contractors have to have federal certifications for doing work on the homes. Mr. White answered that in some cases they do, such as, sometimes they are required to be sufficient in minimizing hazards to lead-based paint. Ms. Pitman added that it depends on the age of the home. Any home built prior to 1978 requires a lead-based paint evaluation and abatement. In that case a contractor would have to be certified as a lead-safe supervisor and have lead-safe trained workers in order to ensure the safety of the contractors and their employees. Commissioner Khan asked if there is a “pool” of contractors available. Ms. Pitman answered that there is a very small “pool” and there will be steps taken in the next few months to advertise and get more contractors added to the Small Works Roster and training for them. Currently there is Davis-Bacon Labor Compliance Training -6- scheduled for the contractors. Chairman Cruz briefly discussed the costs and burdens involved with contracts dealing with federal requirements. Commissioner Bachart asked where the funding for the contractor classes come from. Ms. Pitman answered that for the currently scheduled class there isn’t funding. HUD is sponsoring the class and it is free to the attendees. The City provides the facility free of charge. In the future, the lead-based paint contractor training may come from the CDBG Administrative grant fund. Commissioner Khan moved, seconded by Commissioner Polk, to recommend the City Council approve the use of funds for the 2015 Neighborhood Stabilization Program (NSP) entitlement set forth, as recommended by staff. The motion passed unanimously. E. Block Grant 2014.1 CDBG Annual Action Plan Substantial Amendment (MF# BGAP 2014-006) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Department, discussed the 2014.1 CDBG Annual Action Plan Substantial Amendment. Mr. White handed out a revised matrix for the amount requested and the staff recommendation for this particular item. It is a substantial amendment to the 2014 Annual Action Plan in which the Planning Commission considered a year ago. In December 2013, the Benton-Franklin Council of Governments, who the City has provided block grant funding to in the past for a revolving loan fund program, has returned $422,000 of unused funds to the City. This was money that their loan pool applicants had paid back with interest during the course of the revolving loan fund. They received an audit where it was noted that they had not returned the money to Pasco. With this sum of money it must be combined with all other money that has not been spent for 2014 or won’t be spent and provide some reallocations. Staff provided a list of applications received for projects requesting the funds. Mr. White briefly discussed the projects requesting to be funded. Chairman Cruz discussed taking money from the proposed Alley Chip & Seal project and allocating it to the proposed Pasco Specialty Kitchen Facility Improvements and projector for and the YMCA Public Service. Commissioner Khan asked if the amount requested is from a bid or an estimate. Chairman Cruz responded that it was most likely an estimate. Angie Pitman, Block Grant Administrator, added that they did receive quotes for the Pasco Specialty Kitchen activity and this particular choice was for a particular type of flooring that was mid-range between the high and low options and bids received. -7- Commissioner Khan stated that she was in agreement with the YMCA project but unsure about the projector for the Pasco Specialty Kitchen. Chairman Cruz provided clarification on his proposed reallocations. Commissioner Khan was then in agreement with Chairman Cruz. Commissioner Khan moved, seconded by Commissioner Polk, the Planning Commission recommend the City Council approve the use of funds for the 2014 Community Development Block Grant Program as set forth in the Attachment 1 “2014.1 Fund Summary” as amended. The motion passed unanimously. F. Block Grant 2015-2019 Tri-Cities Consolidated Plan (MF# BGAP 2014-007) Chairman Cruz read the master file number and asked for comments from staff. Rick White, Community & Economic Development Director, discussed the 2015-2019 Tri- Cities Consolidated Plan. This plan outlines the strategies that the Community Development Block Grant fund and HOME fund must be consistent with. It is designed to provide decent housing, to improve economic opportunities and suitable living environments to low-moderate income people and their families. Commissioner Khan asked for clarification as to what applies to these funds, in particular funding for parks. Mr. White answered that the funds may go towards parks but the purpose of the plan is to lay out the broad strategies that the requests and applications would have to be in line with. With no comments the public hearing closed. Mr. White reminded the Planning Commission that the purpose of this hearing was to gather information for the consultants who are putting together the plan. There are other methods the consultants are using to create the plan and receive community input. Chairman Cruz asked if there could be another public hearing at a later time if needed. Angie Pitman, Block Grant Administrator, stated that the consultant would most likely allow it to be opened back up. The purpose of the plans needs assessment is if an activity is to be funded, it must be identified as a priority need in this particular plan. If it’s not in the plan and doesn’t have a priority then staff does not have the ability to fund it. COMMENTS: With no further discussion or business, the Planning Commission was adjourned at 8:00 p.m. Respectfully submitted, Krystle Shanks, Administrative Assistant II