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HomeMy WebLinkAbout04/13/1993 Item 5 - Women's Shelter Funding Q'Iry�I�III��IIIII�uPflll�lU city MEETING DATE: or san tuts osispo 5 - .?- COUNCIL AGENDA REPORT 'NUMBER: From: Ken Hampian, Assistant City Administrative OfficerA�/ Subject: Clarification of Council direction regarding Women's Shelter acquisition CAO RECOMMENDATION By motion, affirm the City's intent to commit up to $198,000 in existing Community Development Block Grant (CDBG) resources toward the acquisition of the Women's Shelter, with the understanding that the Women's Shelter will work with the Housing Authority and/or other agencies to raise the additional $117,000 needed to meet the $315,000 acquisition cost. DISCUSSION On March 30, 1993, the City Council reviewed the Women's Shelter issue. During the discussion of the issue, staff attempted to clarify the degree of City financial commitment intended in raising the $315,000 needed to acquire the shelter. Based on the discussion, it was staff's understanding that the Council was fully committing up to $198,000 in existing CDBG program income; the amount of funds needed beyond that amount ($117,000) were to be acquired from other sources (e.g. the Housing Authority, the County, other cities or agencies). However, on March 31, 1993 the Women's Shelter sent a letter (attached) to the _ Mayor outlining a different understanding, which is that the Council committed all the resources needed to acquire the shelter (from both current and future City CDBG funds). The specific motions adopted by the Council are outlined below: 1. "Staff directed to work with the Housing Authority to pursue Option #4 for alternative funding mechanisms, including CDBG funds for the purposes of the Women's Shelter; staff to research cities (listed by Assemblywoman Andrea Seastrand) to determine how they have complied with growth component and report back at the April b, 1993 Council meeting; staff to explore financing methods proposed by the Housing Authority (4-1, DR-no);" and 2. "Staff directed to actively explore Options 2&3 (adopt Housing Element with qualifiers, negotiate with State on regional housing needs projections) after checking on Assemblywoman Seastrand's letter and securing the list of cities read by the Director of the Women's Shelter (5-0)." Given the differing understandings, and the fact that neither motion explicitly addresses the amount of funding committed by the City, staff is asking that Council reaffirm staff's understanding of the City Council's intent, as outlined in the CAO Recommendation. 3-1 MY Of San LUIS OBISPO MoGs COUNCIL AGENDA REPORT ALTERNATIVE The Council could direct staff to work with the Women's Shelter to develop a strategy for j obtaining the $117,000 in financing on an interim basis, until the City's CDBG entitlement funds are available in July 1994. At that time, the City Council would allocate the $117,000 to complete the purchase. Staff does not recommend this option since only City resources will have been used for an acquisition and program that have significant countywide benefit. I ATTACHMENT: i Women's Shelter letter I i i I I I i i WOMEN'S 8HELTEQ IDQQGI AM, INC. of san luis obiapo county � Post Office Box 125 San Luis Obispo, California 93406 Tel: (805) 544-3494 MARIANNE KENNEDY/Executive Director Full Council has received this document March 31 , 1993 Mayor Peg Pinard SAN Luis OGisr'o CA City of. San Luis Obispo , Post Office box 8100 C'i• v , �LLnVt San Luis Obispo, CA 93403 Dear Mayor Pinard: We at the Women's Shelter Program, Inc. want to take this opportunity to thank you and the Council for working towards a purchase solution for the Women's Shelter. While we are appreciative of your efforts, we remain concerned on a couple of key points. The motion which passed directs the city's staff to develop a purchase plan to cover the entire cost of the shelter by utilizing city dollars. It is also -our understanding that the motion provides that ownership of the facility will be. transferred to the Women's Shelter Program, Inc. Additionally, as per the clarification made by Councilman Dave Romero, city staff is directed to work with the Department of Housing and Community Development (HCD) in an effort to explore other communities which have successfully maintained their growth management plans while complying with the State Housing Element. We appreciate the council 's support of Councilman Romero's clarification. The importance is that while the city has agreed to purchase the property for us, we are still in need of funding to perform needed repairs and remodeling. Additionally, we are not comfortable using city dollars, including those from the housing authority, while the $444, 000 from HCD remains as a possible funding source. We are concerned that the form of the city's purchase plan is developed in such a way as not to jeopardize .the HCD grant. As a result, we request that a representative of .Women's Shelter Program, Inc. be present at all discussions and meetings regarding financial options and purchase negotiations. S-3 C � , Mayor Peg Pinard March 31, 1993 Page Number Two In the meantime, it is our hope that city staff can cooperate with HCD to come up with a housing element which is satisfactory to all parties. If so, the HCD grant can be drawn upon. This will enable the Women's Shelter Program, Inc. to repay the city and its housing authority while at the same time provide us with the necessary dollars for repairs and remodeling. In and effort to provide time for such negotiations, we have requested that HCD extend the deadline of the grant for one year. As requested by the Council, enclosed is a copy of a listing of local governments which have brought themselves into compliance. While each and every one of them is not exactly like San Luis Obispo, the similarities of many show that negotiations can be productive. Again, thank you for your efforts in this complicated matter. sincerely, i f�pbelY 4 President, Board of Directors Women's Shelter Program, Inc.. Enclosures cc: San Luis Obispo City Council Department. of Housing and community Development Assemblywoman Andrea Seastrand