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Home My WebLink About10/04/2011, C3 - AFFORDABLE HOUSING A WARD FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND. couna L "'."9!D / j agenba REpoRt �H � CITY OF SAN LUI S O B I S P O FROM: Kim Murry, Acting Community Development Director Prepared By: Tyler Corey, Housing Programs Manager SUBJECT: AFFORDABLE HOUSING AWARD FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND. RECOMMENDATION Adopt a resolution approving an Affordable Housing Fund award in the amount of$30,000 for the San Luis Obispo County Housing Trust Fund. DISCUSSION Background The Affordable Housing Fund (AHF) has been developed through implementation of the City's Inclusionary Housing Ordinance. The ordinance allows for a fee to be paid "in-lieu" of the provision of required affordable housing units. The City then uses those fees in a variety of ways to make more affordable housing available in the community. These funds are awarded at the Council's sole discretion, based on previously adopted criteria (Attachment 1, Council Resolution No. 9263). Requests for AHF support are evaluated by staff and forwarded to the City Council for consideration, either concurrent with the annual Community Development Block Grant process, or as stand-alone proposals such as the current request. Overview of Current AHF Request The San Luis Obispo County Housing Trust Fund (HTF) has requested $30,000 to support operating expenses for 2011 (Attachment 2). The HTF provides three key services that benefit affordable housing in the City of San Luis Obispo: financing, technical assistance and advocacy. The HTF provides funding for various affordable housing activities, including property acquisition, construction, and refinancing. HTF staff also serves as a resource to City staff working with developers on affordable housing projects. HTF's Executive Director, Jerry Rioux, maintains a high profile in the community as an advocate for affordable housing projects, and serves on the Workforce Housing Coalition Board. Recent HTF Projects Since 2005, the HTF has provided nearly $8 million in financing for affordable housing projects county-wide, contributing to the creation or preservation of 225 affordable dwelling units. The HTF was instrumental in facilitating the property acquisition component of the Village at Broad Street project, a 42-unit affordable housing project being developed by ROEM Corporation. The HTF has also lent money to HASLO to refinance the Marvin Gardens Apartments on Laurel Lane,helping to preserve that 24-unit affordable project. C3-1 C, Affordable Housing Fund Award(SLO County Housing Trust Fund) Page 2 This August, the HTF loaned $360,000 to the Tri-Counties Community Housing Corporation to acquire three affordable housing units on Hathway. The units were owned by Sojourn Services, which rented the units to individuals with developmental disabilities. Sojourn went bankrupt and the property is currently in foreclosure. Tri-Counties is trying to preserve the units either by buying the existing loans from the bank or by bidding at the trustee's sale. Last year, the HTF approved a $50,000 loan to Habitat for Humanity, which was for property acquisition for a site on Rockview. Habitat decided to delay that purchase and the loan was not used. The AHF has been used to support the operating costs of the HTF in the past, for a total of $180,200. In support of the current request, the HTF's Executive Director has submitted supporting documentation regarding their budget, performance and overall financial stability (Attachment 3). Award Criteria In making its recommendations to the City Council for how AHF funds should be allocated, staff considers Council adopted criteria including eligibility, need, suitability, timing, financial effectiveness and readiness (Attachment 1, Council Resolution No. 9263). The following is an analysis of the HTF request relative to the criteria. Eligibility: Use of the AHF for the requested purpose will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing, as follows: Although the proposal does not create any units on its own, the HTF improves the City's ability to facilitate affordable housing, provides technical assistance to City staff and developers of affordable housing in the City, and HTF advocates for affordable housing projects, consistent with City policy. The proposed award is consistent with General Plan policy(Housing Element Program 2.12 and 6.13) and past practice. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: The City's Regional Housing Needs Allocation (RHNA) for the upcoming 5 years includes 185 units in the extremely-low income (<31% of AMI)category, 185 units in the very-low income (31-50% of AMI) category, 259 units in the low income (51-80% of AMI) category and 295 in the moderate income (81-120% of AMI) category. The HTF contributes to affordable housing at all of these income ranges and will assist the City in meeting State housing targets. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: This criteria would be evaluated for any future HTF affordable housing projects in the City that also receive an AHF grant. C3-2 Affordable Housing Fund Award(SLO County Housing Trust Fund) Page 3 Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: Funding should be provided now so that the HTF has adequate funds to cover operating expenditures during the 2011 fiscal year. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources, as follows: The City's AHF award would leverage significant additional funding from other sources. As shown in Attachment 2, the top twenty contributors to the HTF have provided over $4.4 million in operating support and equity for new loans since 2003. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: The HTF has been contributing to the cause of affordable housing in San Luis Obispo County since 2003 and the proposed AHF award will help the HTF fulfill their mission and is supported by the General Plan. Status of the Affordable Housing Fund A status report on the AHF is attached (Attachment 4). The report indicates that if the proposed allocation is approved by Council, the fund will retain $275,400 to allocate to future affordable . housing projects. Requests/-.posedRequests/Pr6posed Allocations AHF Available Balance$305,460 San Luis Obispo County Housing Trust Fund $30,000 Net Available for New Programs if Current Request Approved $275,400 Staff is recommending funding of the current request and the attached resolution (Attachment 5) recommends funding for a total of $30,000. The proposed funding amounts to approximately 10% of the funds currently available to be allocated to new projects. Based on approximately one month of building permit activity, this amount of funding will be restored to the AHF. In addition, the fund also owns real property assets with equity totaling approximately $300,000. This includes a three-bedroom affordable condominium unit that has been part of the City's Long-Term Affordability Program, which is currently for-sale. Sale of the unit is expected to occur before the end of the year, reimbursing the AHF's equity interest in this holding. FISCAL IMPACTS The recommended allocation would be paid out of the AHF, which consists of in-lieu fees collected under the City's Inclusionary Housing Ordinance. The fund may only be used for C3-3 Affordable Housing Fund Award (SLO Countv Housing Trust Fund) Page 4 projects or purposes that create or support affordable housing within the City of San Luis Obispo. Based on prior expenditures and pending commitments, there will be a balance of $275,400 remaining in the AHF after this award. The project will have no impact on the General Fund. ALTERNATIVES 1. Do not authorize an AHF award. This action is not recommended because the project appears to meet the criteria for AHF assistance and is consistent with the Housing Element of the General Plan. 2. Approve an AHF award for a different amount. The City Council can approve an award for a different amount than the recommendation. 3. Continue consideration of the proposed award. The City Council can direct staff to return with additional information regarding the funding request so that a final decision on the award amount can be made. ATTACHMENTS 1. Council Resolution No. 9263 2. HTF funding request and background information 3. HTF budget, performance documentation and financial statements 4. Affordable Housing Fund Status Report 5. Draft Council Resolution G:\CD-PLAN\Tcorey\LR\AHF\HTF\201 I\HTF201 I(fundingCAR)v2.doc C3-4 Attachment 1 RESOLUTION NO. 9263 (2001 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR ALLOCATING AFFORDABLE HOUSING FUNDS. WHEREAS,the City Council adopted Ordinance 1348(1999 Series)establishing an Affordable Housing Fund for the collection and distribution of in-lieu housing fees to promote affordable housing in San Luis Obispo; and WHEREAS, as a result of the in-lieu fee payments to the City under the Inclusionary Housing Ordinance,the City has a balance of approximately$400,000 in the Affordable Housing Fund,and this fund is available to support affordable housing in San Luis Obispo at the sole discretion of the City Councils and WHEREAS,the City received requests by Judson Terrace Lodge and Sojourn Services,Inc.for the use of$215,000 and$25,000,respectively,of Affordable Housing Funds;and to evaluate these and future funding requests in a fair and timely manner, Council wishes to establish award criteria and a review process for the Affordable Housing Fund; and WHEREAS,the City Council held a meeting on December 4,2001 to consider possible award criteria that balance the need to provide a fair,open and timely funding award process with the desire to maintain funding flexibility to address local housing needs and opportunities; NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo that based on its deliberations,public comments,the staff report,and on State law, the following: SECTION 1. Affordable Housing Fund Award Criteria. The City Council establishes the following criteria for evaluating requests for use of the Affordable Housing Fund: 1. Eligibility. Use of the Affordable Housing Fund(AHF)for the requested purpose will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing. 2. Need. There exists a substantial or overarching need for the type of housing to be assisted. 3. Suitability. The project to be assisted is appropriate for its location,both in terms of land use and design. 4. Timing. The project would be better serve the City's needs if it were built immediately as opposed to later. R 9263 Resolution No. 9263 (200?Series) Attachment 1 Page 2 5.Financial Effectiveness. But for the requested assistance,the project would not be economically feasible;,or AHF funding"leverages"significant additional funding from other sources. 6. Readiness. The project has all necessary City approvals and is ready to proceed. SECTION 2. Use of Award Criteria. The Council will apply the above criteria when evaluating funding requests. Requests that most closely meet the criteria will be given the most favorable consideration in allocating Affordable Housing Funds. Under no circumstances is Council obligated to award Affordable Housing Funds. The decision whether to allocate funds and how much is at the sole discretion of the City Council whose decision is final. SECTION 3. Review Process. The Community Development Director shall be responsible for processing requests for use of Affordable Housing Funds. Such requests shall usually be considered concurrent with review of the City's Community Development Block Grant Program.The Director is authorized to bring urgent funding requests to the Council at any time, irrespective of the above review cycle. SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds shall be required to execute an agreement with the City describing the purpose and terms of funding. The project or program to be funded shall meet the City's Affordable Housing Standards,including the requirement for an affordability term of at least thirty(30)years, and City equity participation in the project where feasible and appropriate. The City Administrative Officer is authorized to execute such agreements for the City. Upon motion of Counci I Member Schwartz,seconded by Vice Mayor Marx,and on the following roll call vote: AYES: Council Members Ewan,Mulholland,Schwartz,Vice Mayor Marx, and Mayor Settle NOES: None ABSENT: None The foregoing resolution was adopted this r day of December 2001 Mayor Allen Settle A T: Lee Price,City Clerk C3-6 � Resolution No.9263 (20tseries) Attachment 1 Page 3 APPROVED AS TO FORM: J e . 0r on , ity torney i SANLUISOB,{(\/IS�1r'PO •\COU._NT,Y11 Attachment 2 .._.._......�_.._._.._..._.. 'H O USING FOR ALL' August 29, 2011 Tyler Corey Housing Programs Manager City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Dear Mr. Tyler: Thank you for supporting the San Luis Obispo County Housing Trust Fund (HTF) and partici- pating on our loan committee. The City of San Luis Obispo has been one of the HTF's strongest and most consistent supporters. Since 2004, the City has provided a total of$180,200 in grants to support our operations.. I am writing to request that the City award an additional $30,000 in housing in-lieu funds to the HTF for your fiscal year 2011. The requested funds will ensure our continued operations and enable us to provide more financing and technical assistance for affordable housing in the City of San Luis Obispo. This request represents 10% of our adopted operating budget for 2011. We anticipate that more than two-thirds of our operating revenues for both 2011 and 2012 will come from our loan fee and interest earnings. The balance will be provided by the county, the other cities in the county and local banks. Financing The Housing Trust Fund was created specifically to provide short-term or gap financing for affordable housing projects that include at least some units for very low, low and/or moderate income households. Since incorporating in 2003, we have raised nearly $9 million in revolving loan funds to finance these projects. Our revolving loan funds currently has approximately$7 million including nearly $3,7 million in private investments, $210,000 in private grants and $3.1 million in state and federal grants. Since 2005, the HTF has provided nearly$8 million in financing to create or preserve 225 units of affordable housing throughout San Luis Obispo County. Of this amount, more than $2 million or over 25%was loaned for projects that are located in the City of San Luis Obispo. The Village at Broad Street received one of our largest loans—$1.3 million for site acquisition and predevelopment expenses. We loaned $350,000 to refinance a balloon payment on Marvin Gardens and provide HASLO time to restructure the project and buy out the tax credit investor. We also closed a$360,000 loan to the Tri-Counties Community Housing Corporation to provide them funds to buy three units occupied by individuals with developmental disabilities out from foreclosure. 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦ www.slochtf.org C3-8 U' Tyler Corey Attachment 2 August 29, 2011 Page 2 of 2 At this time, we have nearly $2 million available for new loans and have been talking with a number of nonprofit and for-profit housing sponsors about providing financing for their projects. We hope to finance another project in the City of San Luis Obispo in the near future. Technical Assistance Providing technical assistance to support both individual housing projects, and housing programs and policies is another important activity of the Housing Trust Fund. We have provided, and will continue to provide,technical assistance to HASLO, Habitat for Humanity and various human service groups, including the Women's Shelter Program,Transitions-Mental Health Association, Tri-Counties and Family Care Network, to increase their capacity to undertake and finance housing projects. While these efforts have been county-wide in scope,they should result in more affordable housing in San Luis Obispo over time. We also provide technical assistance to private developers concerning the potential to include affordable housing in future projects. We also provide technical assistance to local governments. We have discussed providing assis- tance to the City in the following areas: • Updating your affordable housing guidelines. • Developing a formal monitoring program to ensure that the owners of your inclusionary units and other affordable units comply with the program requirements. • Developing operating policies and procedures for your affordable housing fund. We would be happy to assist you in these or other areas. Various documents are enclosed with this request, including our board and commissioner rosters, our 2011 budget, 2010 audited financial statement, our sources of operating support and lending capital, and our loans to date. Please let me know if you need any additional information or material to consider this request. We look forward to continue working with you and the City of San Luis Obispo in the future. Sincerely, Gerald L. Rioux Executive Director Enclosures C3-9 SANLUISOBIS_POCOUNTY Attachment 11 HOUS /\ L j a 6 'HOUSING FOR ALL' Board of Directors The Board of Directors for the San Luis Obispo County Housing Trust Fund has six members. The names, offices and affiliations of the current Board members are: Board Member and Office Affiliation Dr. Julian Crocker, Chair San Luis Obispo County Superintendent of Schools Rachel Richardson, Vice-Chair Housing Coordinator, AIDS Support Network Dick Willhoit, Treasurer President, Estrella Associates, Inc. (developer and home builder) Dr. Allen Haile, Secretary Community & Government Relations Director(retired), Cal Poly University R. Thomas"Tom"Jones Dean, College of Architecture and Environmental Design, Cal Poly University Anita Robinson President and CEO, Mission Community Bancorp Leonard J. Grant, AIA Architect, RRM Design Group Affiliations are provided for information only. Rev 7-2011 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦ www.slochtf.oro C3-10 SAN • LLlIS • O2 inWSHUM jBISPO ! COUN,A�T�Y Attachment S OUSNG "HOUSING FOR ALL' - Housing Trust Fund Commission The Commission serves as the loan committee for the San Luis Obispo County Housing Trust Fund. A majority of the Commissioners are appointed by local governments that provide financial support for the Housing Trust Fund. The current Commissioners and their appointing authorities are: Commissioner Appointing Authority Position Tyler Corey City of San Luis Obispo . Housing Programs Manager Nick Gilman City of Paso Robles City Council Member Kelly Heffemon City of Arroyo Grande Associate Planner Marianne Kennedy Supportive Housing Consortium Executive Director, Women's Shelter Project George Leage City of Morro Bay City Council Member Dana Lilley County of San Luis Obispo Housing and Economic Development Manager Phyllis Molinar City of Grover Beach City Council Member John Stocksdale City of Pismo Beach Retired Banker Rev 7-2011 71 Zaca Lane,Suite 130,San Luis Obispo, CA 93401 ♦ (805) 543-5970 www.slochtf.orq C3-11 SAN • LUIS • 0BISPO • C0UNTTY Attachment 2 OUSNG j ! 'HOUSING FOR ALL' - Top Contributors Since incorporating February 27, 2003, the San Luis Obispo County Housing Trust Fund (HTF) has received more than $4.5 million in grants and contributions to support our operations and revolving loan funds. These grants and contributions came from many different sources, including the US Treasury, State of California, County of San Luis Obispo, every city in the county, the real estate and banking industries, and others in our broad community.' The following table lists our 20 top contributors and the totals of their support to date.2 Rank Source of Loan Funds Grants 1 CDFI Fund of the US Treasury' $1,600,000. 2 California Department of Housing and Community Development 1,500,000 3 County of San Luis Obispo 605,136 4 City of San Luis Obispo 180,200 5 California Association of Realtors 125,000 6 Bank of America 77,500 7 Community Action Partners (formerly EOC) 50,000 8 Rabobank4 45,750 9 Union Bank of California 45,000 10 City of Atascadero 42,000 11 City of Grover Beach 40,000 12 City of Arroyo Grande 35,000 13 City of Paso Robles 32,500 14 City of Pismo Beach 31,000 15 Housing Authority of the City of San Luis Obispo (HASLO) 20,000 16 San Luis Obispo County Community Foundation 15,200 17 Heritage Oaks Banka 14,721 18 US Bank (formerly Downey Savings) 12,000 19 United Way of San Luis Obispo County 11,913 20 Mission Community Bank4 11,750 Rev 8-24-11 ' In addition to these grants,we have received over$3.5 million in private investments in our revolving loan funds,including $I.1 million from Rabobank,$1 million from Mission Community Bank and$750,000 from Catholic Healthcare West. Z Includes commitments that have not yet been received. 3 Grants of loan fund capital exclusively. 4 Grants for operating support as well as loan fund capital. Rabobank and Mission Community Bank are also major investors in our revolving loan funds. 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦ www.slochtf.org C3-12 I SANLUIS • OB15P000UNTY Attachment 2 JS J OUR G Sr FUM 'HOUSING FOR ALL' -- Loan Production Report The following table summarizes the loan production of the San Luis Obispo County Housing Trust Fund ' through mid-2011. Borrower and Loan Number of Units Assisted' Location of Project Amount Total VLI LI Mod SNZ Use of Funds Family Care Network,Inc., $283,300 5 5 0 0 5 Acquisition of transitional housing Arroyo Grande for foster care youth. San Luis Obispo Non-Profit $700,000 19 6 13 0 6 New construction rental housing Housing Corp.,Atascadero for seniors. Habitat for Humanity, $339,000 4 4 0 0 0 Site acquisition for owner-builder Atascadero project. Family Care Network,Inc:, $100,000 4 4 0 0 4 Acquisition of transitional housing Atascadero for foster care youth. HASLO,Arroyo Grande $285,000 1 0 1 0 0 Preservation of affordable unit at risk of foreclosure:' Laurel Creek Apartments, $350,000 24 8 16 0 24 Preservation of apartments for LP, San Luis Obispo seniors and the disabled. Village at Broad Street,LP, $1,300,000 42 31 11 0 2 Predevelopment costs and land San Luis Obispo acquisition for new family apart- ments. Edna Islay Housing Corpora- $800,000 81 28 53 0 5 Predevelopment costs and permits tion,Paso Robles' and fees for new family apart- ments. Oak Leaf Homes,Peoples' $1,400,000 34 4 30 0 0 Acquisition of finished lots for Self-Help, Nipomo owner-builder project. Women's Shelter Program, $720,000 4 4 0 0 4 Acquisition of transitional housing Grover Beach for victims of domestic violence. W2M LLC,Atascadero $700,000 4 0 0 4 0 Acquisition and completion of unfinished foreclosed project Tri-Counties Community $360,000 3 3 0 0 3 Preservation of units for individu- Housing, San Luis Obispo als with developmental disabilities. Totals 0,937,300 225 91 124 4 53 Percentages 100% 43% 55% 2% 24% Rev 8/24/11 'Very low income(VLI)units serve households that earn up to 50%of area median income; low income(LI)units serve households that earn between 51%and 80%of area median income;moderate income(Mod)units serve households that earn between 81%and 120%of area median income;special needs(SN)units serve households with special needs. Our current income limits are online at www.slochtf.or�/files/income-limits.pdf. Our definition of households with special needs is online at www.slochtf.or2/files/special-needs.pdf. 2 Includes units that are fully accessible,but may not be occupied by individuals who are handicapped. 'The unit is currently occupied by a low income household under a lease-purchase agreement. °Two separate approvals: $300,000 in Nov.2009 for predevelopment costs and$500,000 in June 2010 for permits and fees. 71 Zaca Lane,Suite 130,San Luis Obispo, CA 93401 ♦ (805) 543-5970 ♦www.slochtf.org C3-13 kdchment 2 .m Opportunity Finance Network- Member Profile San Luis Obispo County Housing Trust Fund SAN1�8 S 061 S-P_O • CO U NTY U San Luis Obispo,CA HO iftTWST FUND San Luis Obispo County Housing Trust Fund(The HTF)was created in 2003 to increase the supply of affordable housing in San Luis Obispo County for very low,low,and moderate income households,including households with special needs.The HTF provides financing and technical assistance to help private developers,nonprofit corporations,and government agencies produce and preserve homes that working families,seniors on fixed incomes,and persons with disabilities can afford to rent or buy.The HTF also advocates for local housing programs and policies and works to bring additional housing resources into the San Luis Obipso community. Success Story: Hidden Creek Village,Paso Robles,CA Hidden Creek Village is an 81 unit rental project in the City of Paso Robles.This low-income,affordable _ apartment complex offers many green features,as well as a community center with after-school care,a computer lab,an edible garden and educational workshops. ` , "Hidden Creek Village is a miracle for those who are in desperate need of affordable housing.There are vanous ' rent levels depending on household income.And the community building offers educational and recreational 1 jl j opportunities,in a safe environment.These serve to enable the adults and children to participate in enhancing I f: their living environment" i Carol Hatley, Director of the Housing Authonty of the City of San Luis Obispo _ h Effission- To increase the supply of affordable housing for very low,low and moderate income residents of San Luis Obispo County,including households with special needs.. Address: San Luis Obispo . Housing Trust Fund Products and services 71 Zaca Lane,Suite 130 ■Short-term financing for affordable housing projects,including acquisition,planning and San Luis Obispo, predevelopment,site development,construction,and rehabilitation Phone: :0 0 ■Technical assistance to developers,nonprofit corporations and local government agencies to help Fax: 805.543.5972 increase their capacity to produce and preserve affordable housing Email: info@slochtf.org ■Advocacy for programs and policies that support affordable housing,and advocacy in support of individual affordable housing projects Financial and social impact ■Loans made:$7 million in loans ■Financing provided:Assisted in creation of 218 units of affordable ownership,rental,and transitional housing for low,very low,and extremely low income households ■2010 projects financed:Nearly 30%of all the housing starts in the entire county Amemberafbre OPPORTUNITYFINANCEM NETWORK C3-14 SAN • LUIS • OBISPO • COUNTYIII&HOUS Attachment 3 ji 0 HOUSING FOR ALL' 2011 and 2010 Operating Budgets The Board of Directors for the San Luis Obispo County Housing Trust Fund adopts operating budgets for each calendar year. The 2011 Operating Budget was adopted by the Board at its December 17, 2010 meeting. The adopted 2010 Budget is shown for comparison. 2011 Budget 2010 Budget Percent Percent Income' Income of Total Income of Total Government Grants $92,000 30.7% $89,000 34.9% Private Contributions $35,000 11.7% $35,000 13.7% Loan Fund Earning(Interest& Fees) $173,000 57.7% $131,000 51.4% Total Income $300,000 100.0% $255,000 100.0% 2011 Budget 2010 Budget Percent Percent Expenses Expenses of Total Expenses of Total Salaries & Benefits $155,023 51.7% $146,538 57.5% Legal, Accounting&Professional Services $42,500 14.2% $20,800 8.2% Rent &Utilities $12,000 4.0% $10,800 4.2% Operating Expenses $11,994 4.0% $7,362 2.9% Loan Fund Expenses (Interest& Fees) $63,483 21.2% $56,750 22.3% Operating Reserves $15,000 5.0% $12,750 5.0% Total Expenses $300,000 100.0% $255,000 100.0% 12-22-10 1 Income only includes grants and contributions to support our operations. It does not include grants and contributions to our loan funds,such as the CDFI Fund,CAR HAF or George Moylan Affordable Housing Fund. 71 Zaca Lane, Suite 130, San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦www.slochtf.org C3-15 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS For the Year Ended December 31,2010 C3-16 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS For the Year Ended December 31, 2010 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT........................................................................................................2 FINANCIAL STATEMENTS Statement of Financial Position.........................................................................................................3 Statementof Activities ..........................................:............................................................................4 Statement of Changes in Net Assets.................................................................................................5 Statement of Functional Expenses....................................................................................................6 Statementof Cash Flows...................................................................................................................7 NOTES TO FINANCIAL STATEMENTS..................................................................................................&13 REPORT ON COMPLIANCE AND INTERNAL CONTROLS Independent-Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditing Standards................................. 14 C3-17 Attachment 3 CROSBY COMPANY, CERTIFIED PUBLIC ACCOUNTANT 1457 MARS]I STREET.SUITE 100-SAN LUIS OBISPt),CA 93401 PHONE: (805)543-6100 FAx:(805)858-9505 Independent Auditor's Report To the Board of Directors San Luis Obispo County Housing Trust Fund San Luis Obispo, California I have audited the accompanying statement of financial position of the San Luis Obispo County Housing Trust Fund (a nonprofit organization), as of December 31, 2010, and the related statements of activities, functional expenses, changes in net assets, and cash flows for the year then ended. These financial statements are the responsibility of the organization's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. ' In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the San Luis Obispo County Housing Trust Fund, as of December 31, 2010, and the results of its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated June 6, 2011, on my consideration of the San Luis Obispo County Housing Trust Fund's internal control over financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of my audit. I OA6�-, CROSBY COMPANY Certified Public Accountant June 6, 2011 C3-18 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND STATEMENT OF FINANCIAL POSITION December 31, 2010 ASSETS Current assets: Cash and cash equivalents $ 243,785 Accounts receivable 1,033 Interest receivable 13,885 Prepaid expenses 5,296 Notes receivable (current portion) 147,733 Total current assets 411,732 Non-current assets: Notes receivable (net current portion) 3,207,074 Total assets $ 3,618,806 LIABILITIES Current liabilities: Accounts payable $ 3,537 Accrued payroll liabilities 5,872 Accrued interest payable 4,812 Accrued vacation payable 8,614 Notes payable (current portion) 9,245 Total current liabilities 32,080 Long-term liabilities: Lines of credit 600,000 Notes payable (net current portion) 1,469,058 Total long-term liabilities 2,069,058 Total liabilities 2,101,138 NET ASSETS Unrestricted Designated 209,678 Undesignated 108,029 Temporarily restricted 1,000,000 Permanently restricted 199,961 Total net assets 1,517,668 Total liabilities and net assets $ 3,618,806 The accompanying notes are an integral part of these financial statements. 3 C3-19 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND ' STATEMENT OF ACTIVITIES For The Year Ended December 31, 2010 Operating Fund Temporarily Permanently Unrestricted Restricted Restricted Totals REVENUE AND SUPPORT Grants $ 97,775 $ 500,000 $ - $ 597,775 Contributions 20,000 3,375 23,375 In-kind donations 1,114 1,114 Fee income 28,216 28,216 Interest income-Program 164,942 164,942 Interest income-Investment 3,915 3,915 Total revenue 315,962 500,000 3,375 819,337 EXPENSES Program services 200,027 200,027 Management and general 39,803 39,803 Fundraising 17,301 17,301 Total expenses 257,131 - - 257,131 Change in net assets $ 58,831 $ 500,000 $ 3,375 $ 562,206 The accompanying notes are an integral part of these financial statements. 4 C3-20 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND STATEMENT OF CHANGES IN NET ASSETS For The Year Ended December 31, 2010 Operating Fund Temporarily Permanently Unrestricted Restricted Restricted Totals NET ASSETS-December 31, 2009 $ 258,876 $ 500,000 $ 196,586 $ 955,462 Change in net assets 58,831 500,000 3,375 562,206 NET ASSETS-December 31, 2010 $ 317,707 $1,000,000 $ 199,961 $ 1,517,668 The accompanying notes are an integral part of these financial statements. 5 C3-21 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND STATEMENT OF FUNCTIONAL EXPENSES For The Year Ended December 31, 2010 Program Management FUNCTIONAL EXPENSES Services & General Fundraising Totals Salary and wages $ 86,670 $ 17,334 $ 11,556 $ 115,560 Payroll taxes and benefits 21,511 4,302 2,868 28,681 Occupancy 6,707 1,341 894 8,942 Training and meetings 986 197 132 1,315 Accounting and legal 13,083 6,500 19,583 Automobile and travel expense 1,258 252 168 1,678 Professional services 2,470 7,410 9,880 Office expense 3,071 614 409 4,094 Pension expense 4,233 847 564 5,644 Printing 236 118 118 472 Insurance 1,605 321 214 2,140 Interest 55,360 55,360 Telephone and communications 1,676 335 223 2,234 Miscellaneous 379 76 51 506 Dues and subscriptions 782 156 104 1,042 Total functional expenses $ 200,027 $ 39,803 $ 17,301 $ 257,131 The accompanying notes are an integral part of these financial statements. 6 C3-22 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND. STATEMENT OF CASH FLOWS For The Year Ended December 31., 2010 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 562,206 Adjustment to reconcile change in net assets to net cash used by operating activities: Increase in receivables (840) Increase in interest receivable (358) Increase in prepaid expenses (2,172) Increase in notes receivable (535,834) Increase in accounts payable 3,331 Increase in accrued payroll tax liabilities 723 Decrease in accrued interest payable (712) Increase in accrued vacation payable 1,797 Total adjustments 534,065 Net cash used by operating activities 28,141 CASH FLOWS FROM FINANCING ACTIVITIES Repayment on line of credit (1,198,093) Repayment on notes payable (12,969) Borrowing on line of credit 700,593 Borrowing on notes payable 385,000 Net cash provided by financing activities 125,469 NET CHANGE IN CASH (97,328) CASH AT BEGINNING OF YEAR 341,113 CASH AT END OF YEAR $ 243,785 Supplemental information: Cash paid for interest was $55,360 for the year ended December 31., 2010. The accompanying notes are an integral part of these financial statements. 7 C3-23 r Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 1: HISTORY AND ORGANIZATION The San Luis Obispo County Housing Trust Fund is a California non-profit, non-stock, public benefit corporation that was incorporated in 2003, under the laws of the State of California. The mission of the San Luis Obispo County Housing Trust Fund is to increase the supply of affordable housing for very low, low and moderate income residents of San Luis Obispo County, including households with special needs. Rather than directly develop or manage affordable housing, the Housing Trust Fund provides financing and technical assistance to private developers, non-profit corporations and local governments to support the creation and preservation of affordable housing. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The financial statements are presented on the accrual basis of accounting. The financial resources are maintained in accordance with the principles of fund accounting. The unrestricted operating fund is utilized to record contributions, fund-raising, fees and other forms of unrestricted revenue and expenditures related to the general operations and fund-raising efforts of the Organization The temporarily restricted fund is utilized to record resources received by the Organization that are temporarily restricted as to use by the donor or grantor. When the restriction expires, the net assets of this fund are reclassified to unrestricted net assets. The permanently restricted fund represents funds subject to restrictions of gift instruments requiring in perpetuity that the principal be invested or used to provide housing loans and only the income, or some portion thereof, be used.for operations. Cash and Cash Equivalents Cash and cash equivalents includes all liquid investments including money market accounts and certificates of deposits. The Organization maintains all cash and.cash equivalents with one bank. Occasionally, these accounts have exceeded the Federal Deposit Insurance Corporation limit, which covers up to $250,000 of the Organization's combined accounts. Effective October 3, 2008, the FDIC temporarily increased insured deposits up to $250,000 and is scheduled to return to $100,000 after December 31, 2013. Contributions All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. All pledges receivable and amounts received that are restricted for future periods or donor- restricted for specific purposes are reported as temporarily restricted. When the donor stipulated time restriction ends or a purpose restriction is accomplished, then the restricted net assets are reclassified to unrestricted net assets and are reported in the statement of support, revenues, allocations and expenses as net assets released from restriction. If a restriction is fulfilled in the same time period in which the contribution is received,the contribution is reported as unrestricted. See Independent Auditor's report 8 C3-24 Attachment 3 SAN LUIS OBISPO COUNTY ROUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts Receivable Management has determined that an allowance for doubtful accounts would be zero based on the organization's credit policies, prior collection experience, and the type of customers associated with San Luis Obispo County Housing Trust Fund. Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles require management to make estimates and assumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates. Income Tax San Luis Obispo County Housing Trust Fund is recognized by the Internal Revenue Service as a qualified section 501(c)(3), non-profit organization, and as such, is not liable for Federal income or State franchise tax. Donated Services San Luis Obispo County Housing Trust Fund receives donations of time and services from members of the community and volunteers. The value of these donations is not reflected in the accompanying financial statements since no objective basis is available to measure the value of these services. In- .kind donations of equipment, commercial services and supplies used directly by the organization are valued at their appraised values at the time of the gift. Rental Agreement The San Luis Obispo County Housing Trust Fund entered into a three-year term office lease agreement, effective January 1, 2010. The monthly lease payment, included in Occupancy expense, was $600 for the first year, increasing to $800 for the second year and $860 for the third year. The remaining annual requirements to fulfill the lease commitment are as follows: Year ending December 31. 2011 $ 9,600 2012 10,320 Total $ 19,920 Concentration of Revenue Risk The Organization's three largest grants provided approximately 70%of the Organization's support. Interest and fee income covered 77% of total expenses. See Independent Auditor's report 9 C3-25 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 3: EMPLOYEE BENEFITSIRETIREMENT PLAN San Luis Obispo County Housing Trust Fund offers an Internal Revenue Code Section 403(b) deferral program which the Organization contributes up to 5% of each qualified employees salary to a money purchase pension plan. Both full and part time employees become eligible for this benefit after completing six months'of employment. Total pension expense for the year ended December 31, 2010 was $5,644. The. Organization also offers an Internal Revenue Code Section 125 health care direct reimbursement program. The program is available to employees eligible for health plan benefits, effective October 1, 2003. NOTE-4- NOTES RECEIVABLE Notes receivable are carried at unpaid principal balances, net of any allowance for note losses. Management's periodic evaluation of the adequacy of the allowance is based on past loan experience. Currently, management has determined that an allowance for doubtful accounts would be immaterial based on the Organization's credit policies, prior collection experience, and current economic conditions. Loans are considered impaired if full principal or interest payments are not anticipated in accordance with the contractual terms. The Organization's practice would be to charge off any note or portion of a note when the loan is determined by management to be uncollectible due to the borrower's failure to meet repayment terms, the borrower's deteriorating financial condition, or for other reasons. Based on these loan agreements,there has been no evidence of default on any of the notes receivable. Interest on the notes receivable is recognized over the term of the note and is calculated using the contractual interest rates indicated on each note on principal amounts outstanding. NOTE 5: LINES OF CREDIT The San Luis Obispo County Housing Trust Fund established a ten year, $1,000,000 line-of-credit; on April 5, 2004, with Mission Community Bank. This loan is secured by the assignment of deeds of trust from future loans made by the San Luis Obispo County Housing Trust Fund. The loan is due February 20, 2014 and the current balance outstanding at December 31, 2010 was $200,000. The interest rate is fixed at 2.25%. The San Luis Obispo County Housing Trust.Fund established a ten year, $1,000,000 line-of-credit, on July 15, 2005, with Mid-State Bank and Trust, now Rabobank, N.A. This loan is also secured by the assignment of deeds of trust from future loans made by the San Luis Obispo County Housing Trust Fund. The loan is due June 30, 2015 and the current balance outstanding at December 31, 2010 was $400,000. Interest rate is fixed at 2.25%. See Independent Auditor's report 10 C3-26 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 6: NOTES PAYABLE Lender Current Lona -Term Total Rabobank, N.A.,for$100,000, dated January 12, 2007, unsecured, interest is computed at 0.0%fixed rate, due January 15, 2012. $ . - $ 100,000 $ 100,000 Adnan Dominican Sisters,for$65,000, dated December 15, 2007, unsecured, interest is computed at 3.0%fixed rate, payable quarterly,due December 15, 2012. - 65,000 65,000 The Ench &Hannah Sachs Foundation,for $200,000, dated March 15, 2006, unsecured, interest is computed at 3.0%fixed rate, payable semi-annually, extended due date March 15, 2016. - 200,000 200,000 Seton Enablement Fund, Inc., for$50,000, dated March 1, 2006, unsecured, interest is computed at 3.0%fixed rate, payable quarterly, due March 1, 2011. 3,303 - 3,303 Catholic Healthcare West,for$500,000, dated April 1, 2006, unsecured, interest is computed at 3.0% fixed rate, payable quarterly, extended due date March 31, 2016. - 500,000 500,000 Sisters of St. Francis of Philadelphia, for$50,000, dated April 2006, unsecured, interest is computed at 3.0%fixed rate, payable annually, extended due date April 15,2016. - 50,000 50,000 Religious Communities Investment Fund,for $25,000, dated May 2007, unsecured, interest is computed at 3.0%fixed rate, payable semi- annually, due May 8, 2012. - 25,000 25,000 SSM International Finance,for$25,000, dated March 4, 2009, unsecured, interest is computed at 2.0%fixed rate, payable semi-annually on June 30 and December 31, due June 30, 2014. - 25,000 25,000 Religious Communities Investment Fund,for $125,000, dated November 2, 2009, unsecured, interest is computed at 3.0%fixed rate, payable quarterly beginning February 2, 2010, due November 2, 2014. - 125,000 125,000 See Independent Auditor's report 11 C3-27 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 6: NOTES.PAYABLE.Montinued) Lender Current Long-Term Total Adrian Dominican Sisters,for$35,000, dated February 15, 2010, unsecured, interest is computed at 2.0%fixed rate, payable quarterly, due February 15, 2015. $ - $ 35,000 $ 35,000 Seton Enablement Fund,for$100,000, dated April 1, 2010, unsecured, interest is computed at 3.0% fixed rate, payable quarterly, due April 1, 2015. 5,942 94,058 100,000 Catholic Healthcare West,for$250,000, dated May 10, 2010, unsecured, interest is computed at 3.0% fixed rate, payable quarterly, due May 1, 2015. - 250,000 250,000 Totals $ 9,245 $ 1,469,058 $ 1,478,303 The required note principal and interest payments are as follows: Year ending December 31, Principal Interest Total 2011 $ .9,245 $ 40,653 $ 49,898 2012 202,154 40,011 242,165 2013 12,523 37,267 49,790 2014 162,903 36,637 199,540 2015 341,478 27,247 368,725 2016 750,000 12,000 762;000 Totals $ 1,4.78,303 $ 193,815 $ 1,672,118 See Independent Auditor's report 12 C3-28 Attachment 3 SAN LUIS OBISPO COUNTY HOUSING TRUST FUND NOTES TO FINANCIAL STATEMENTS December 31, 2010 NOTE 7: NET ASSETS At December 31, 2010, net assets were restricted by donors or designated by the Organization as follows. Unrestricted net assets: Designated for losses/contingencies $ 205,000 Designated for Moylan Fund 4,678 Undesignated 108,029 Total unrestricted net assets 317,707 Restricted net assets: Temporarily restricted for loan funds 1,000,000 Permanently restricted for loan funds 199,961 Total restricted net assets 1,199,961 Total net assets $ 1,517,668 See Independent Auditor's report 13 C3-29 Attachment 3 CROSBY COMPANY, CERTIFIED PUBLIC ACCOUNTANT 1457 MARSH STREET,SUITE 100-SAN LUIS OOISPo,CA 93401 PHONE: (805)543-6100 FAx: (805)858-9505 Independent Auditor's Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Board of Directors San Luis Obispo County Housing Trust Fund San Luis Obispo,California I have audited the accompanying financial statements of the San Luis Obispo County Housing Trust Fund as of and for the year ended December 31, 2010, and have issued my report thereon dated June 6, 2011. 1 conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards,issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing my audit, I considered the Organization's internal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinions on the financial statement,but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, I do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Organization's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Organization's financial statements that is more than inconsequential will not be prevented or detected by the Organization's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Organization's internal control. My consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. I did not identify any deficiencies in internal control over financial reporting that.1 consider to be material weaknesses,as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that are required to be reported under Govemment Auditing Standards. This report is intended solely for the informationand use of the Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. CROSBY COMPANY Certified Public Accountant June 6,2011 See Independent Auditors report 14 C3-30 SAN • LUIS • 0BISP0@COUNTY Attachment 3 ®UG IN STFUS IM CHOOSING FOR ALL' - Sources of Lending Capital The San Luis Obispo County Housing Trust Fund(HTF) is a Community Development Financial Institution(CDFI) that provides financing and technical assistance to increase the supply of affordable housing throughout our community. The HTF currently has $6.9 million in revolving loan funds available to finance affordable housing projects. The majority of our loan funds are private investments. We currently have $3.6 million from a number . of sources including lines of credit from local banks,' a California CDFI Tax Credit investmene, the Sachs Foundation, five religious communities and investments from Catholic Healthcare West, which owns three local hospitals. Increasingly, the HTF has received grants and donations for our loan funds. We now have more than $3.3 million in equity or net assets that are dedicated for lending. These include grants and commitments of$1.6 million from the US Treasury and $1.5 million from the State of California, plus$125,000 from the California Association of Realtors and nearly $85,000 in smaller contributions to our George Moylan Affordable Housing Fund.3 Loan Fund Investments Term Amount Mission Community Bank 2.25% for 10 years $1,000,000 Rabobank 2.25% for 10 years 1,000,000 Catholic Healthcare West(two investments) 3% for 5 years 750,000 Erich and Hannah Sachs Foundation 3% for 5 years 200,000 Seton Enablement Fund (two investments) 3% for 5 years 200,000 Religious Communities Investment Fund (two investments) 3% for 5 years 150,000 Rabobank 0% for 5 years 100,000 Adrian Dominican Sisters 3% for 5 years 65,000 Sisters of St..Francis of Philadelphia 3% for 5 years 50,000 Adrian Dominican Sisters 2% for 5 years 35,000 Sinsinawa Dominicans 3% for 3 years 30,000 Sisters of the Sorrowful Mother 2% for 5 years 25,000 Total Loan Fund Investments $3,605,000 Loan Fund Equity (Grants & Donations) Amount CDFI Fund of the US Treasury $1,600,000 State of California, Local Housing Trust Fund Matching Grant Program(LHTF)4 1,500,000 California Association of Realtors 125,000 George Moylan Affordable Housing Fund 84,739 Total Loan Fund Equity $3,309,739 Total Lending Capital $699149739 Rev 7/18/11 t Funds are drawn on the Mission and Rabobank lines of credit as they are used for loans. 2 More information on the CDFI tax credits is online at www.instirance.ca.Lov10350-insurers/0700-coinicclfi-tax-credit-proaram.cfln. 3 The Moylan Fund was established to honor one of our founding directors. More than 300 individuals,firms and organizations have contributed directly or indirectly to the Moylan Fund. For more info,go to www.sloclnf.orc'movian-fimd.htm. 4 Awarded but not yet funded in part or in full. 71 Zaca Lane, Suite 130,San Luis Obispo, CA 93401 ♦ (805)543-5970 ♦www.slochtf.org C3-31 Attachment 4 m0000000000000 000000 = 0000000000000 00000 0 ornmrnrnl� rnm (Drn (o � M M � oo000) It W (O r-: 6 N '7 N O V B O O O U9 0 00 -Ri N - OOtf OlO M r [Y (OM .4O N N0 N N0 In OO h0 O Cl O D h M U r M M V M C 07 f0 0] On 0 0 0 0 0 0 0 0 0 0 0 C = 0 0 0 0 0 0 0 0 0 0 0 LL = � (O h (I C4 v7 NO .71- 0 N N N N 0 (O 00 O I- OO m Iq M r N O O O 0 0 0 0 0 0 0 N O O O 0 0 0 0 0 0 O 7 a) 000 OCOOMMIN =p 0 (O O O O O N f� W " L Z �- MM MM W OM I,- d N (O (O Co V a ui x W @ 0 0 0 0 0 0 0 0 0 0 0 0 0 0000000000000 F O O O M N O M M M M M V' tOOMN I` 00 (6O ' � to 000N (O (OMMMOOOITN N S P, M M r 00 (O N M 00 r CO C 0) E o 0 o c (� 7 (V M M Z D] Q W M O 0 0 0 O t w 0 V O O) ( Cu. � m (M v 'a d > D > CL 7 0) O > y00000oo0000 O N O O O O O O 0 0 0 0 0 O = u N O M 10 10 (0 (0 0 I- 0 0 O N O N C00 6 06 OD N 00 6 L ON tP C6 N LL - NN - M00OMM N I- 0. y 3 _ 0) (D cc CoC C y o 0 0 0 0 o o 0 0 0 0 0 0 Q m o o o o 0 0 0 0 0 0 0 0 o rn - d LL F- 5 w (O M IZ N '7 I- M 00 (O N C. t0 .0 O M � r- O M M(- N (n SIN r_ N 2] w .Q y O O V CD N (O N 00 (O N M V OD E i E III J �- h M M (O CO R SM I� 3 f0 `. w O ~ fl O Co IL > M ~ 3 «° Ln � aciva�i3E ` Z c N m o U) > E o y O � NM LOCO P- 000O � N '.�--+ N (a 7 0 ,0 •(p O l6 } 000 � 00000 � (0 £ � w CO 0wCO) > W N i i ' � i V 0 O CD N M a (O (O o aD 0) 0 � 7 010) W MN M � 0000000000 .- .- E � yrn � M � :9 +,• 000000000000 O O a) In 3 , N O m 0 LL LL N N N N N N N N N N N N V V w M M M M H Z 2 C3-32 _ Attachment 4 CDC) C CD 000000000 a a a annaoCDoo O CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O C) 0 0 0 0 0 00000 oan C) � to o M 0 M 0v_n c0 o — r"- - NN 0000 Ci & 1-v_ CV OC) OO �� CA N '7 V OMCfl CO � CO CO O CO O M M M � M O r O M M P- Co ' N O CO M M O O r O h r r Cn C C O C LL 7 N 7 LL p LL y CD L7 77 S `7 r r r r AW C _ . 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N C1 E O o O C W CJ W C o 'p RI C LL C t0 C Co 0 o m C a 3 0 � E � = a) Co EmL � o o v a� o ar o z � ~ (n Cf) 0) U) p = Z m 0t p 0 0 " m m E mm m0° p m cc CL ) C cci rnE o � U � U rnC� C m rnm0) mC d o Ecp T u) 2 c = Cn � E � � (m y Loo fn c C2 Loo to M m CU 0 `m 0 0 3 = 0 M � c w � 3 '� 0)0) � rnrnrnrn o = (n p C1 C1 C) Q O = COJO m '}- 7 m o � - OCC) 00000 ' N � OOaO ~SLLSfn MJ } LL J = Q � M M S Cr) CO MM O O 3 O '= M V O � � CD O O (A O O) 00000000x' r - N N f110 0 0 0 0 0 O O O O O O ter- C N N M 0 CO CO CD CO m CO C 0) CA O CA C) 0 0 0 0 0 to O 0 0 Cl 0 r x 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r r r w W N N N Cl N N N N Cl N Cl N N N N N N N N N N N N N F- N N C3-33 i ATTACHMENT RESOLUTION NO. XXXX-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A$307000 AFFORDABLE HOUSING FUND AWARD FOR THE SAN LUIS OBISPO (SLO) COUNTY HOUSING TRUST FUND WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on October 4, 2011 for the purpose of considering a request by the SLO County Housing Trust Fund for Affordable Housing Fund (AHF) assistance in the amount of$30,000 and WHEREAS, the projects and programs supported by the SLO County Housing Trust Fund meet the eligibility criteria established by the City Council; and WHEREAS, Housing Element Program 6.13 provides direction for the City to "continue to support the SLO County Housing Trust Fund's efforts to provide below-market financing and technical assistance to affordable housing developers as a way to increase affordable housing production in the City of San Luis Obispo"; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff presented at said meeting. BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: Section 1. Findings. The City Council does hereby make the following findings in support of the proposed Affordable Housing Fund award: 1. Eligibility: Use of the AHF for the requested purpose will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing, as follows: Although the proposal does not create any units on its own, the HTF improves the City's ability to facilitate affordable housing, provides technical assistance to City staff and developers of affordable housing in the City, and HTF advocates for affordable housing projects, consistent with City policy. The proposed award is consistent with City General Plan policy (Housing Element Program 2.13 and 6.13) and past practice. 2. Need: There exists a substantial or overarching need for the type of unit to be assisted, as follows: The City's Regional Housing Needs Allocation (RHNA) for the upcoming 5 years includes 185 units in the extremely-low income (<31% of AMI) category, 185 units in the very-low income (31-50% of AMI) category, 259 units in the low income(51-80% of AMI) category and 295 in the moderate income(81-120% of AMI) category. The HTF Q-34 Attachment 5 Resolution No. (2011 Series) Page 2 contributes to affordable housing at all of these income ranges and will assist the City in meeting State housing targets. 3. Suitability: The project to be assisted is appropriate for its location both in terms of land use and design, as follows: This criteria would be evaluated for any future HTF affordable housing projects in the City that also receive an AHF grant. 4. Timing: The project would better serve the City's needs if it were built immediately as opposed to later, as follows: Funding should be provided now so that the HTF has adequate funds to cover operating expenditures during the 2011 fiscal year. 5. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources, as follows: The City's AHF award would leverage significant additional funding from other sources. The top twenty contributors to the HTF have provided over $4.4 million in operating support and equity for new loans since 2003. 6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows: The HTF has been contributing to the cause of affordable housing in San Luis Obispo County since 2003 and the proposed AHF award will help the HTF fulfill their mission and is supported by the General Plan. Section 2. Affordable Housing Fund Award, SLO County Housing Trust Fund. The City Council does hereby approve an Affordable Housing Fund grant in the amount of $30,000 to support operations. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: C3-35 �-' Attachment 5 Resolution No. (2011 Series) Page 3 The foregoing resolution was passed and adopted this 4`h day of October, 2011. Mayor Jan Marx ATTEST: Elaina Cano City Clerk APPROVED AS TO FORM: stine Dietrick City Attorney C3-36 council M o AEponacEnaa n t '�"� CITY OF SAN LUI S OBIS PO FROM: Shelly Stanwyck, Director Parks and Recreation Prepared By: Christine Wallace, Recreation Supervisor SUBJECT: Gift of Jack House Papers to Cal Poly for Continued Preservation & Publication RECOMMENDATION As recommended by the Jack House Committee and the Parks and Recreation Commission authorize the transfer of ownership of the Jack House papers currently on file at the Cal Poly Kennedy Library to Cal Poly State University. DISCUSSION Background The Jack House was deeded to the City of San Luis Obispo in 1975. During restoration of the house and gardens by the City, a collection of papers was compiled from those found inside the house. The collection includes maps, family papers, documents and other assorted notes, which were placed in boxes for storage. In July 1982 the City of San Luis Obispo entered into an agreement with Cal Poly University to house the large collection (40 boxes) of Jack family papers in the Special Collections division of Kennedy Library. The agreement that the City entered into with Cal Poly with regards to the papers was for a "permanent loan."The City retained official ownership of the collection but in the agreement Cal Poly was charged with preservation, maintenance, safeguarding and making the papers available to the public for viewing(Attachment 1). Need for Ownership Change In July 2011, Peter Runge, the Director of Special Collections at the Kennedy Library contacted Parks and Recreation staff to discuss the possibility of changing the agreement from a loan to a gift of ownership. The reason for this ownership change is that the Special Collections Division has created a highly user friendly and accessible website that allows the public to access digitized collections of photographs, posters, drawings, and other items from archival collections. In order for the Jack papers to be included on the website, Cal Poly must be the owner of the collection. Mr. Runge was invited to the August 10th Jack House Committee meeting where he shared the benefits of making the collection a gift. This ownership change received unanimous support for the Jack House Committee. In addition, if Special Collections ever chose to deaccess items from the collection, the City would be given the first right of refusal to acquire those items. Jack House Committee and Parks and Recreation Committee Recommendations Both the Jack House Committee (at its August 10, 2011, meeting — Minutes Attached) and the Parks and Recreation Commission (at its September 7, 2011 meeting— Draft Minutes Attached) C4-1 C C Gift of Jack House Papers Page 2 unanimously supported that the permanent loan of the Jack House Papers be made a gift of ownership to Cal Poly Statue University. Both advisory bodies supported this change, which will allow for the promotion of the house to visitors as well as increased access to these historical documents by the public. FISCAL IMPACT The gifting of the Jack House collection to Cal Poly State University will not have any fiscal impact to the City. Consistent with the pre-existing agreement between the City and Cal Poly the University will continue to have all responsibility associated with the maintenance and storage and public access of these papers. ALTERNATIVE Council could disagree with the Jack House Committee and Parks and Recreation Committee's recommendation and chose to keep the papers on a permanent loan. This alternative is not recommended because it will not allow for increased public access to these documents. ATTACHMENTS 1. City and Cal Poly Agreement Regarding Permanent Loan of Jack House Papers 2. Jack House Committee Meeting Minutes of August 10, 2011 3. Parks and Recreation Committee Meeting Minutes of September 7, 2011 T:\Council Agenda Reports\Parks & Recreation CAR\2011 P&R CARs\Jack House Papers Owenrship Change.docx C4-2 c, .poLY ATTACHMENT 1 LIBRARY SrRvict:� ROBERT E.KENNEDY LIBRARY DEED OF GIFT Gift of Papers and Other Historical Materials Of Jack Family Papers to the Special Collections Department California Polytechnic State University, San Luis Obispo 1. Subject to the terms,conditions,and restrictions hereinafter set forth,I City of San Luis Obispo (hereinafter referred to as the Donor),do legally own the items described herein and hereby give, donate and convey to the California Polytechnic State University for deposit in the Special Collections Department of the Robert E. Kennedy Library,the papers and other historical materials(hereinafter referred to as the Materials)which are described in Appendix A,attached hereto. 2. Legal ownership,title,and all rights to the Materials shall pass to the California Polytechnic State University. Donor acknowledges that upon execution of this Deed of Gift,the Materials irrevocably become the property of California Polytechnic State University.The display,use,maintenance, and disposition of the Materials are at California Polytechnic State University's sole discretion. 3. The Donor and his/her family shall be permitted freely to examine any of the Materials during the regular working hours of the Special Collections Department after the collection has been processed. 4. It is the Donor's wish that the Materials be made available for research as soon as possible,and to the fullest extent possible.At the same time, it is the Donor's wish to guard against the possibility of their contents being used to embarrass,damage,injure, or harass living persons. 5. Subject to the restrictions imposed herein,the Special Collections may dispose of any of the Materials that are determined to have no permanent value and/or historical or research interest,provided that prior to any such disposal the Donor shall be notified thereof,if possible,and at the Donor's request, the Materials proposed for disposition shall be returned to the Donor. 6. In the event that the California Polytechnic State University or its successor cannot or will no longer administer the preservation and use of the Materials,they will then be returned to the Donor,or at the Donor's request,a suitable institution will be located and a transfer effected. 7. Credit for the display in exhibitions or the reproduction in print or electronic media shall be required and shall read: "Jack Family Papers/Collection,Special Collections, California Polytechnic State University." 8. By execution of the Deed of Gift, Donor expressly represents and warrants to California Polytechnic State University that he or she is the sole lawful owner of title to the Property. Donor further represents that the Property is free and clear from any and all encumbrances, that there has been no prior pledge,option or gift of any part thereof to any person,and that Donor has the right to give or transfer the Property. 9. The Internal Revenue Service has determined that California Polytechnic State University is organized and operated exclusively for educational purposes and is exempt California Polytechnic State University San Luis Obispo,CA 93407 Robert E.Kennedy Library Special Collections&University Archives (805)756-2305•Fax(805)756-5770 Page 1 of 4 C4-3 ATTACHMENT 1 CAL LIBRARY SERVICES ROBERT E.KENNEDY LIBRARY DEED OF GOT Gift of Papers and Other Historical Materials from federal income tax pursuant to Section 501(a)and(c)(3)of the Internal Revenue Code.California Polytechnic.State University does not advise donors on tax matters and suggests that Donor direct any questions regarding donations as charitable contributions to Donor's tax advisor or an office of the Internal Revenue Service.California Polytechnic State University does not appraise donations but will make the Property available for appraisal upon the request of Donor. io. Loan of Materials from the collection shall be at the discretion of Special Collections, with preference to institutions with American Association of Museums accreditation.All costs for physical loan of Materials will be borne by the borrowing institution. 11. In the event that the Donor may from time to time hereafter give,donate and convey to the California Polytechnic State University as a gift to the Special Collections Department,additional papers and other historical materials,title is given over to the Special Collections Department, and all of the foregoing provisions of this Deed of Gift shall be applicable to such additional papers and other historical materials.A description of the additional papers and other historical materials so donated and delivered shall be prepared and attached hereto. 12. The foregoing gift of the papers and other historical.materials of the Donor is accepted on behalf of the California Polytechnic State University subject to the terms,conditions and restrictions herein before set forth. Terms and Conditions: Signature of the Donor: Date: Name of Donor-: Telephone: Address: City State Zip Signature for the Library: Date: Name&Title: California Polytechnic State University San Luis Obispo,CA 93407 Robert E.Kennedy Library Special Collections&University Archives (805)756-2305 s Fax(805)756-5770 Page 2 of 4 C4-4 - ATTACHMENT 1 () LPOLy LIBRARY SERVICES ROBERT E.KENNEDY LIBRARY DEED OF GIFT Gift of Papers and Other Historical Materials APPENDIX A JACK HOUSE COLLECTION BOX LIST COLLECTION#14 BOX DATES SUBJECTS 1 1860, 1861, 1865, 1866, 1867, General 1868, 1869 2 1870, 1871, 1872, 1873 General 3 1874, 1875, 1876 General 4 1877, 1878, 1879 General 5 1873-1877 Hollister Estate Probate, R.E.Jack 6 1880, 1881, 1882, 1883, 1884 General 7 1885, 1886, 1887, 1888, 1889 General 8 1890, 1891 General, Eagle Cliff Mine 9 1892, 1893 General 10 1894, 1895 General 11 1896 General 12 1897 General 13 1898: Jan.,Feb.,March,April, General May,June 14 1898:July.,Aug.,Sept.,Oct.,General Nov.,Dec. 15 1899: Jan.,Feb.,March,April General May,June,July,August 16 1899: Sept.,Oct„Nov.,Dec. General 17 1900: January-June General; Smith Mortgage California Polytechnic State University San Luis Obispo,CA 93407 Robert E.Kennedy Library Special Collections&University Archives (805)756-2305• Fax(805)756-5770 Page 3 of 4 C4-5 CAL, LIBRARY SERVICES ATTACHMENT 1 ROBERT E.KENNEDY LIBRARY DEED OF GIFT Gift of Papers and Other Historical Materials 18 1900: July-December General Voter Precinct Registers 19 1901 General 20 1902 General 21 1903 General 22 1904 General 23 1905 General; Union League Club Book 24 1906 General 25 1907 General 26 1908 General 27 1909 General 28 1910 General 29 1911 General 30 1912 General 31 1913 General 32 1914 General 33 1915 General 34 1916, 1920, 1937, 1965 General 35 Various dates or no dates General; Lompoc 36 1901-1909; 1868-1969 Watkins letters; Cholame Ranch; General 37 1901-1916 Cholame Ranch; H.Jack letters 38 Assorted dates Photographs: people and places, names and dates included 39 No dates Unidentified photos 40-44 Ledgers/newspapers California Polytechnic State University San Luis Obispo,CA 93407 Robert E.Kennedy Library Special Collections&University Archives (805)756-2305•Fax(805)756-5770 Page 4 of 4 C4-6 ' z ATTACHMENT 2 Jack House Committee MINUTES San Luis Obispo Parks and Recreation Administration Office 1341 Nipomo Street, San Luis Obispo Wednesday, August_10, 2011 5:30 PM CALL TO ORDER: Chair Ron Batterson called the meeting to order at 5:30 PM. ROLL CALL: Committee Members: Ron Batterson, Patrick Mayeda, Gerry Johnson, Kathi Settle, Bob Gordon and Betty Stockton ABSENT: Kylie Hatch STAFF: Christine Wallace GUESTS: Toni Kincaid,Curtis Reinhardt and Peter Runge PUBLIC COMMENT PERIOD There were no public comments. CONSIDERATION OF MINUTES MOTION:(Batterson)Approve the June 8, 2011 minutes as submitted. Approved: 6 yes: 0 no: 1 absent(Batch) CONSIDERATION OF FINANCIAL REPORT MOTION: (Batterson/Mayeda)Approve the July 31,2011 Financial Report as submitted. Approved: 6 yes: 0 no: I absent(Hatch) REGULAR ITEMS 1.SLO County Band—Curtis Reinhardt The band plays in approximately 20 performances per year throughout the county and would like to develop a 2-3 concert series for the spring or summer of 2012 at Historic sites in Downtown SLO to include the Jack House as a concert venue. Commissioners entered into discussion about the concert: A concert should be held on a Sunday to have the house open.A potential date could be in the month of August to occur on years Victorian Tea isn't held.The band played a successful show at the Dallidet Adobe in 2010 with a partnership with the History Center of SLO County who was able to sell wine in the garden that has a large amount of shade. The band currently requests a$10 donation for a concert.Alcohol service would not be an option for the Parks and Recreation C4-7 \ /1 Jack House Committee Minutes MACHMENT 2 August 10, 2011 Page 2 of 3 Department. Potential date could begin in August of 2012 to be an event that occurs each year Victorian Tea is not held. Batterson recommended that Reinhardt speak with the band and return to the Committee with a detailed proposal with expectations of the partnership. 2.Cal Poly Special Collections—Peter Runge The Jack family papers from mid 1800's to the mid 1900's are currently being held at the Cal Poly Kennedy Library in Special Collections.The collection has been on permanent loan since the 1980's and it has been maintained in acid free folder and boxes since then. The library would like to ask the Committee to convert the permanent loan to a gift to the Kennedy Library. If the Library was able to obtain the records as a gift then they can make the information accessible to the public by creating a finding guide of early San Luis Obispo in a card catalog record,online for the UC system and scan the collection for in-house accessibility. If items are to be deassessed from the collection,the first right of refusal would be offered to the City of SLO. MOTION: (Settle/Gordon) Convert Jack House loan collection to a gift collection for Kennedy Library. Approved: 6 yes: 0 no: 1 absent(Hatch) 3. Staff Reports and Updates: Parks and Recreation/Public Works Wallace reported on the following: Attendance for all tours through the Jack House has been tracked thanks to Kincaid. For the 2010- 2011 fiscal year the house had 986 tours. Haunted House and Victorian Christmas provided 500 tours alone. The gazebo plans have been distributed to two local contractors to receive estimates of construction costs for the project.The two costs came in at$56,250 and$53,852. Both contractors pointed out discrepancies in the plans including material use(wood or steel),details being incomplete,and acid etching or galvanizing are not services offered in SLO County.Barbara Lynch has the plans in Public Works for plan check.Wallace recommended that a complete set of documents is necessary to get bids out.A meeting will be scheduled with the Jack House Gazebo subcommittee and Lynch to discuss further. 4.Docent Activities Kincaid reported on the following: Saturday,July 24 was the Hollister family reunion with 116-180 in attendance at the San Luis Obispo Country Club and 32 toured the Jack House on Sunday,July 25. New photos are now up in the house and Katchy Andrews presented a 20 minute slideshow of the Jack family.It was recommended that Andrews be the guest-speaker at the annual Docent Appreciation Dinner in November to-show the slideshow for the docents. C4-8 ATTACHMENT 2 Jack House Committee Minutes August 10, 2011 Page 3 of 3 The Victorian Tea has 11 rickets sold so far and the docents are hoping for more before the event on Sunday. Haunted House is being planned including promotion, volunteers and decorations. 5.Member Comments/Communications Settle-Thank you for the Park Tour it was enjoyable and provided a new perspective. Kincaid-Enjoyed trolley for the Park Tour.The basement will be open for docents to view. Stockton - Discovered grandmother's Victorian valentines and would be interested in displaying them. Meeting adjourned at 7:20 p.m. Next meeting is September 14, 2011 at 5:30 pm at the San Luis Obispo Parks and Recreation Administration Office. C4-9 ATfACHMEW Parks and Recreation Commission Minutes—Draft September 7, 2011 Page 4 of 6 6. Authorization of Gifting Ownership to Cal Poly (Jack Family Papers Item)—Wallace 6:07 pmL returned to seating Recreation Supervisor Wallace explained briefly the current Depository Agreement the City has with Cal Poly University that provides housing Jack Family memorabilia in the Special Collections and Archives Department of the Robert E. Kennedy Library. Currently there is an inventory of 40 boxes of Jack Family papers that were given to the Jack House Committee on a permanent loan.Recently, Peter Runge, the new head of special collections from Cal Poly communicated the possibility of reassessing the City's agreement and changing the ownership from on-loan to gift status. With Council approval, the benefit of this would be that the papers would be properly archived as well as shared online with the public in a virtual museum. The library has already placed archived images and information from other collections they maintain on the internet, successfully creating a form of virtual history classroom. Commissioners held a brief discussion and Wallace reassured them that, if at some time in the future the university chose to de-assess the collection, the City would have the right of first refusal. MOTION. (Havas/Davis) Recommend Council approve authorization of gifting ownership to Cal Poly's Special Collections and Archives Department of the Jack Family Papers presently on-loan. Approved: 6 yes: 0 no: 0 absent 7. Monthly Report: Increasing Play at Damon Garcia Sports Fields—Davis and Whitener Commissioner Davis reviewed the events leading to the ad hoc committee's formulation last May and the goal of increasing play and year-round use at the fields. Since then it is felt that much progress has been made and communications and understanding has increased with maintenance staff as well. Davis then shared information from the last meeting of the committee; a new knife aerator is in place and the testing areas of Bermuda grass are doing well with the increased heat. Also, an new online calendar for Damon Garcia field use was recently made available by the Department. 8. Director's Report—Stanwyck Director Shelly Stanwyck gave the Director's Report and briefed the Commission on the following projects: • Movie Nights. Mission Plaza movie nights were a tremendous success. • Activity Guide. The pocket guide went out to all residents in an August Tribune. We are now live with the electronic version on the City's website. Those without computers can register in person at 1341 Nipomo. We have had good responses to fall classes. • Rangers. Our Rangers are in the middle of preparations for Creek Day Saturday, September 17th. They are engaged in lots of work getting ready to coordinate volunteers and haul out tons of trash from the creeks in preparation for winter storms. The Froom Ranch Trail day in partnership 1-4 C4-10 ATTACNMENT3 Parks and Recreation Commission Minutes—Draft September 7, 2011 Page 3 of 6 4. Senior Center Activity Report—Wallace Recreation Supervisor Christine Wallace gave background information to the Commissioners about her absorption of the role of liaison to the Senior Center since the department's reorganization in 2010. Supervisor Wallace introduced Maryanna Fitzgerald, Senior Center volunteer and PathPoint employee who has developed the role of"activities coordinator" at the Senior Center. Through Ms. Fitzgerald's involvement, many new activities have been introduced to the center in the form of seminars, classes, field trips, yoga instruction and even monthly movie gatherings. Wallace addressed the public comment from Betty Kulp earlier and advised that some instructors are in fact working on a donation basis and accepting from $2 to $15 or waiving fees entirely. They are providing a service without going through the contract class process. Conversations are in progress with other instructors who do charge a fee to encouraging them to grant scholarships. Wallace added that the City owns the building that the Senior Center operates without paying a fee. To put it into perspective, essentially a club-type meeting is being held in a City building. Opportunities for managing the program better are excellent,. particularly with the help of Ms.Fitzgerald. Chair Kincaid inquired if there was a language misunderstanding with the use of the word fee rather than donation. Wallace clarified `fees' are incurred only if the instructor is under contract. Ms. Kulp asked for verification that it is legal to have donations for classes which Ms. Wallace did verify and offered that Ms. Kulp should contact her if she has any future questions. Director Stanwyck addressed a question from Commissioner Whitener on communications with staff program managers. She explained the Senior Center Board's desire for autonomy in its relationship with Parks and Recreation. This has not changed, however; there is a bridge between the Department and the Board developing with the expansion of new programs. Stanwyck verified for Whitener that there is no legal separate non-profit contractual agreement, which is presumed to be acceptable unless it is heard otherwise from the seniors. All legalities and waivers have been reviewed by the City Attorney. 5. Tour of Kitchen and Other Enhanced Amenities—Wallace 5:54 p.m.excused from seating to take tour Recreation Supervisor Wallace led the Commissioners, staff and participants in a brief tour of updated amenities including the computer `bank', kitchen remodel, new parking lot and the office area. It is hoped that the Senior Center will absorb the computers at the Ludwick Center which are used by the Computer Partners learning program with the idea being that the program will then be held at the Senior Center. The remodeled kitchen has greatly enhanced and simplified functions held at the center. Also greatly appreciated is the convenience for seniors of nearby parking in a more safe locale off the street (including ADA designated spots). The new parking area has also alleviated a lot of the traffic in the neighborhood and even serves two church groups who rent the senior center on Sundays to hold services. Use of the center is higher in summer, due to visiting seniors from out of town. 1-3 C4-11