Loading...
HomeMy WebLinkAboutR-2000-141 2001 CDBG and HOME Annual Action Plan - Office of Neighborhood DevelopmentRESOLUTION NO. R-2000-141 A RESOLUTION authorizing and directing the City Manager of the City of Yakima to submit an Annual Action Plan to the United States Department of Housing and Urban Development in compliance with the Five Year Strategy of the Consolidated Plan developed in 1999. WHEREAS, the City of Yakima is an entitlement city pursuant to Community Block Grant funds as specified by the United States Department of Housing and Urban Development and is required to file an Annual Action Plan each year subsequent to the Consolidated Plan application developed in 1999; and WHEREAS, the Annual Action Plan is developed using the priorities of the community, the direction of City Council and the approved programs as established in the Consolidated Plan; and WHEREAS, the Annual Action Plan includes the 2001 Community Development Block Grant (CDBG) and HOME budgets, and activities and expenditures as projected by the Office of Neighborhood Development Services, and attached hereto; and WHEREAS, the City Council of the City of Yakima deems it to be in the best interest of the City of Yakima to submit the Annual Action Plan to the United States Department of Housing and Urban Development as required by federal regulations; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: R. A. Zais, Jr., the City Manager, is hereby authorized and directed to execute the CDBG and HOME application documents, including all understandings and certifications contained therein, with the United States Department of Housing and Urban Development as required by the Consolidated Plan including, but not limited to, real estate transactions, and the City Manager is hereby designated as the official representative of the City to act in connection with the application and the Annual Action Plan Furthermore, the City Manager is hereby authorized to execute all contracts, deeds, notes, mortgages, and other documents required to carry out eligible programs funded through the 2001 Annual Action Plan. ADOPTED BY THE CITY COUNCIL this 21st day of November, 2000. ATTEST: City Clerk ry Place, Mayor CDBG ° I ifra'structOi � C�ofYa�ma� toiuniunityvcciopmeat �BlockGraa 1•11' Senior/Home Repair Before Photo CL!-ENTLGIC The service engine of the newpconomy" CDBG Single .Fam The Office of Neighborhood Development Services works hard to provide positive choices for community and economic development and aggressively seeks to develop new partnerships to reach these goals. November 2000 • • DRFT CITY OF Y KIM COMMUNITY DEVELOPMENT BLOCK G NNU L C'TION PLAN NOV FY 2001 r BE , 2000 • 2001 (TION PLAN T BL OF CONTENTS INTRODUCTION PAGE 3 RESOURCES PAGE 5 OTHER RESOURCES (PARTNERSHIPS) PAGE 7 PROGRAMS AND ACTIVITIES PAGE 10 COMMUNITY SERVICE PAGE 10 SIDEWALK PROGRAM PAGE 10 PAINT PROGRAM PAGE 11 ECONOMIC DEVELOPMENT PAGE 11 HOUSING. COUNSELING PAGE 11 PUBLIC FACILITIES PACE 12 •INFRASTR.UCTUR.E PAGE 12 CDBG SINGLE FAMILY PACE 12 ELDERLY/DISABLED HOUSING REPAIR. PAGE 13 RELOCATION PAGE 13 DEBT SERVICE PACE 13 PROGRAM OPERATIONS PAGE 13 PR.OGRAM ADMINISTRATION PAGE 14 LEAD BASE PATE ABATEMENT PAGE 14 HOME SINGLE FA1 ILY PROGRAMS PAGE 14 ADDITIONAL PROGRAMS PACE 15 • APPENDICES CHARTS PUBLIC COMMENTS -2- • Introduction • The Annual Action Plan of the City of Yakima for the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs is a framework for the City's 2001 investment of these funds. These programs are funded each year through the U.S. Department of Housing and Urban Development (HUD) as authorized by Congress. The City receives funds directly from HUD as an entitlement community according to an allocation formula determined by the Federal Government. The action plan constitutes the actual application for federal funds, provides a statement of intent as to how the funds will be spent, and certifies that the expenditures will conform to applicable federal laws and regulations. The funds provided to CDBG program can be spent on a broad spectrum of projects, with the general intent of assisting in improving the environment and well being of low and moderate income persons. The HOME program funds must be used to improve the housing conditions of low and moderate - income persons. This plan was written after an extensive public input process. Four meetings • were held on different days at different places in the community. During the -3- • s meetings neighborhood residents and agency personnel had the opportunity to comment on the needs they see in the community, and make recommendations as to how they would like to see the funds used to help meet these needs. In addition, the public will have the opportunity to comment on this written version of the plan for 30 days. There will also be one more public meeting with the City Council prior to the official adoption of this plan. Persons wishing to make written comments may also do so. This plan was written following the guidelines established in the more extensive planning process used to develop the Consolidated Plan last year. This Consolidated Planning process takes place every five years, and the goals established in it are followed in the Action Plans developed during the next four years. In developing the 2000-2004 Consolidated Plan five broad goals were identified. The goals were the result of citizen input, neighborhood surveys, and one-on-one interviews with area public service providers. As stated, these goals will provide the framework for the investment of CDBG and HOME funds through the year 2004. (Changes can be made in the Consolidated Plan and goals through a similar process.) -4- • The goals identified in the current Consolidated Plan are: • Economic Development • Affordable Housing • Youth Programs and other Community Services • Leadership Development • Infrastructure Development All programs and expenditures must tie back to one or more of these identified goals. Resources Anticipated Revenue: Funds for the CDBG and HOME programs are appropriated annually by the Federal government. These funds are authorized as part of the annual federal budget process. The budget is supposed to be approved before the beginning of the federal fiscal year in • • 1 October. Often this does not happen. This year it was late in October before Congress approved a budget, and we were not notified of our portion until November. The current amended version of our plan includes the amounts that HUD has notified us we will receive. If for any reason the final amount we receive varies from our preliminary notification the budget will have to be adjusted. Meanwhile, it is necessary to complete this document and send it to HUD for approval. HUD regulations specify that this is to take place 45 days prior to the beginning of the new program year. Our program year begins on January 1. Below is a summary of our anticipated FY 2001 revenues. CDBG 2001 Entitlement $1,201,000 CDBG Program Income 295,000 HOME 2001 Entitlement 687,000 HOME Program Income 112,000 Total ONDS Revenue $2,295,000 In a prior year approval was given for an economic development loan package that includes $4 million in a section 108 loan, a HUD program that uses future CDBG funds as additional loan collateral, and a grant of • $1 million from the Economic Development Administration. The previous approval is being extended, and it is expected that this package will see construction and development begin this year. The 2001 funds listed above are those funds in the process of being appropriated by Congress. The amount appropriated is divided according to a formula that shares the money among all eligible cities throughout the country. As mentioned above, actual amounts will vary and may not be known until after the first of the new year. Program income is the repayment of funds loaned by the city of Yakima in the past. The estimated program income is based on past experience, and it will vary based on a number of factors such as real estate market conditions and interest rates, as well as the local economy. Other Resources: In order to fulfill its responsibility to the citizens of Yakima, it is becoming increasingly important that the Office of Neighborhood Development Services (ONDS) leverages the CDBG and HOME funds with other funding sources, and form partnerships with other public and private entities. During 2001 we will continue this effort. Some of the other funding sources we will attempt to leverage include: _7_ • • Supportive Housing Programs (also funded through HUD) • Housing Tax Credit programs • State of Washington Housing Trust Fund programs • State of Washington Public Works Trust Fund • Federal Home Loan Bank Funds • Private lenders • Non Profit and Private Foundation Grant Programs • Other public and private funding sources Partnerships, new and ongoing may include: • Habitat for Humanity • United Builders • Banks, S&Ls, and other lenders • EPIC (services for children, youth, and families) • United Way • Triumph Treatment Services • Success by Six • The Yakima Interfaith Coalition • Casa Hogar (target area neighborhood services) -8- • • • • Yakima County Coalition for the Homeless • Yakima Continuum of Care for the Homeless • YMCA • YWCA • Yakima School District • Yakima Valley Community College • Yakima Health and Safety Network • Providence Hospital • Memorial Hospital • Rural Community Development Resources (formerly WAME) • Yakima Resource Development Group • Substance Abuse Coalition • Homebuilders Association • Paint Contractors Association • Comprehensive Mental Health • Other City of Yakima Departments and Divisions Other relationships may be formed during the year in response to funding requests and programs of ONDS. This leveraging and these partnerships -9- • • provide a means to make the limited funds available produce the highest possible yield. Programs and Activities The Office of Neighborhood Development manages a variety of programs to benefit the citizens of Yakima. Our funds will be divided among these programs according to the itemized budget on a following page. These programs include: • Community Service: This category includes services provided by outside agencies such as summer youth programs, education programs and others. These funds are limited by federal regulation to not more than 15% of CDBG annual funding. No funds are included in this annual budget because there are funds unspent from the prior year. • Sidewalk Program: This program provides new sidewalks where there have been none in the past, and replaces existing sidewalk that has deteriorated to the point that it cannot be repaired. - 10 - • OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES CDBG AND HOME PROGRAM -- PROPOSED 2001 BUDGET PROJECTED EXPENDITURES COMMUNITY SERVICE SIDEWALK PROGRAM CDBG PAINT PROGRAM ECONOMIC DEVELOPMENT HOUSING COUNSELING PUBLIC FACILITIES CDBG-INFRASTRUCTURE CDBG SINGLE FAMILY • ELDERLY/DISABLED PROGRAM RELOCATION H/0 DEBT SERVICE PROGRAM OPERATIONS ADMINISTRATION S/F LBP ABATEMENT TOTAL CDBG HOME EXPENDITURES ADMINISTRATIVE COST HOME SINGLE FAMILY PROGRAM: TOTAL EXPENDITURES • $96,500.00 $25,000.00 $25,000.00 $276,500.00 $16,000.00 $14,000.00 $55,000.00 $20,000.00 $75,000.00 $2,000.00 $205,000.00 $420,000.00 $246,000.00 $20,000.00 $1,496,000.00 $79,900.00 $719,100.00 $2,295,000.00 PROJECTED REVENUE CDBG ENTITLEMENT PROGRAM REVENUE CDBLOCK GRANT PROGRAM REVENUE CDBLOCK GRANT INTEREST INCOME HOME ENTITLEMENT HOME PROGRAM INCOME TOTAL REVENUE Fran's/desktop/budget/2001 $1,201,000.00 $295,000.00 $277,000.00 $15,000.00 $1,496,000.00 $687,000.00 $112,000.00 $799,000.00 $2,295,000.00 Before Photo • • • • Paint Program: Using volunteer labor provided through habitat for Humanity and other groups, this program paints the homes of elderly and disabled persons. Unrelated, but included in this category is the Paint out Graffiti efforts managed by ONDS. • Economic Development: The City of Yakima has identified economic development as its number one priority again this year. This is an eligible activity for CDBG funds, and a substantial portion of this year's budget will be spent here. Funds will be provided to Client Logic to help ensure their success, as well as other yet to be identified projects that will stimulate the local economy by creating new good paying permanent jobs. • Housing Counseling: Misunderstandings between landlords and tenants can substantially disrupt the lives of low-income individuals and families. With this in mind, and as part of our Fair Housing efforts, we provide free counseling and over 23,000 referrals annually to various organizations that assist in this vital arena. - 11 - • • Public Facilities: Although limited, these funds provide essential funding for the addition or replacement of capital items, particularly in essential service areas like Parks and Recreation. • • Infrastructure: For several years ONDS has offered assistance to residents who need to connect to City water and sewer utilities. This program has enjoyed somewhat limited success. We are currently researching changes that may enhance the utilization of the program by city residents. In addition, there are large portions of the city that are not yet served by city utilities. These include areas in Fruitvale and near the Fairgrounds that were recently annexed. We currently have submitted an application, along with Public Works, for funds from the State Public Utilities Trust Fund to complete a project in the Fruitvale area that will provide water and sewer to as many as 100 new lots. ONDS is providing matching funds for the state money. This program will continue until all citizens of the City of Yakima have the opportunity to be served by City utilities. • CDBG Single Family: Due to some peculiarities in the regulations IIIgoverning CDBG and HOME programs, some housing projects are easier - 12- • to complete with Block Grant funds than with HOME funds. For this reason, each year an amount is budgeted for housing projects with CDBG funds. • Elderly/Disabled Housing Repair: This vital program provides a limited amount of funds for essential or emergency repairs to the homes of this vulnerable population. These repairs enable these persons to stay in what might otherwise become an uninhabitable house. • Relocation: Occasionally a housing repair program will require the homeowner to move out of the house for a few days while repairs are completed. This program covers the costs of such a move. • Debt Service: Several years ago the City of Yakima sold $1,000,000 of General Obligation Bonds to provide affordable loans to enable low and moderate income persons to purchase a home. Annual expenditures from the CDBG program provide the City with the means to repay these bonds. • Program Operations: Operations includes all activity involved with a • specific client. Staff time from the initial contact through completion of the - 13 - • • 1 application until the service or product is completed is included here, along with supplies etc. used for a specific client. • Program Administration: This item includes managing all of our programs, compiling statistics and reports, other activities required by the Federal Government in order to participate in the Block Grant Program, planning, technical assistance, and any activity or other staff time and expense not related to a specific client file. • Lead Based Paint Abatement: A new requirement of the Federal Government for housing rehabilitation where federal funds are involved is testing for and, when necessary, abatement of lead based paint hazards. Lead has been found to be a serious hazard, especially to the brain development of young children. • HOME Single Family Programs: Housing programs using HOME funds will include new construction, rehabilitation and renovation, purchase and restoration of homes illegally converted to apartments, and down payment assistance. These programs have assisted hundreds of families in the past in homeownership projects. We are pleased to be able to continue to offer these programs. - 14- • Additional programs under consideration for assistance, either financial, technical, or both may include: • Leadership for Low -Income Citizens • Living in Yakima education for new residents • Hispanic Serving Institutions, a partnership between HUD, Yakima Valley Community College, and the City of Yakima • Non Profit Organization development and Assistance • Partnerships to promote the growth and development of needed services in the Target Area, such as day care, job training, neighborhood clean up, and more. • An assessment of Target Area residential properties which may be eligible for inclusion on a list of local historic properties. Attached to the final version of this document will be several technical items required by HUD regulations: Standard Form 424, Application for Federal Assistance; an itemization of the projected number and types of families to be assisted, a listing of each program along with its priority need • as identified in the Consolidated Plan; a quantification of the - 15 - accomplishments of each program; target dates for completion (where relevant); program guidelines and policies; and a number of certifications required by law. - 16- • HOME Revenue 2001 HOME Revenue 2000 HOME Revenue 1999 HOME Revenue 1998 CDBG Revenue 2001 CDBG Revenue 2000 CDBG Revenue 1999 CDBG Revenue 1998 • Neighborhood Development Revenue 1998 through 2001 • L i i $0 $200,000 $400, 000 $600, 000 $800, 000 $1,000,000 $1,200,000 CDBG Revenue CDBG Revenue CDBG Revenue CDBG Revenue HOME HOME HOME HOME 1998 1999 2000 2001 Revenue 1998 Revenue 1999 Revenue 2000 Revenue 2001 ■Series1 $1,009,000 $1,015,000 $1,008,000 $1,008,000 $506,000 $547,000 $536,000 $545,000 • $600,000 $500,000 $400, 000 $300,000 $200,000 $100,000 $0 • 2000, 2001 CDBG & HOME Budgeted Expenditures 2000 Budget 2001 Budget ❑ Sidewalks IE CDBG Paint ❑ Economic Development ❑ Housing counseling ■ Public Facilities ❑ CDBG Infrastructure ❑ CDBG Single Family ❑ Elderly/Disabled Repair ■ Relocation o Bond Debt Service ❑ CDBG Operations ❑ CDBG Administration ■ Lead Based Paint • HOME Single Family ■ HOME CHDO ■ HOME Administration • . 160 140 120 100 80 60 40 20 0 ONDS Program Outcomes for Selected Programs ■ Down Payment Assistance ■ First Time Homebuyers ■ Single Family Rehabilitation 0 Senior/Disabled Program ■ Paint Program ■ Sidewalk Program ■ Side-Sewer/Water Lines D E. D. Job Creation ■ Clean -Up Program L 999 Activity 59 4 5 28 15 3 10 6 1 2000 Activity 71 12 3 28 11 1 6 8 4 • 2001 Activity 25 4 4 28 15 3 60 150 5 • PUBLIC COMMENTS • • • • • CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 2001 ACTION PLAN NEIGHBORHOOD MEETINGS October 3, 4, & 5, 2000 CITIZEN PARTICIPATION AND COMMENTS October 3, 2000 — Fruitvale Area — EPIC Location No participation No comments October 4, 2000 — Northeast Yakima Area — Senior Center Location Mary Harris, Northeast Neighborhood Association - Comments: Maybe through Code Enforcement, we can get to the absentee landlords that are just milking money out of their property and not keeping it up and not putting money into it to maintain it. When homes are rehabilitated, if we could make sure that the rehabilitation is compatible with the characteristics of the rest of the older bungalow type homes in the area. Freya Burgstaller, Rental Association - Comments: There is no need for additional housing. It is better to bring infrastructure more up to date. Ear mark some money for this. Next year the City is requiring another shut off in irrigation lines. Would there be some money available for this? Over crowding is causing over use of old water/sewer lines. Prevent catastrophes by updating these lines. Keep money for survey by Don Hinman available. Have counseling for renters available. Programs that teach them to maintain property. October 5, 2000 —Northeast Area — Fire Station on Race Street Lynn Kittleson, Northeast Neighborhood Association - Comments: Keep funds available to fix triangle on Lincoln & B Street. Requests technical assistance to get budget together. Requests that ONDS apply for funds from Department of Economic Development if applicable. Suggests partnering with the Landlord Association to provide tenant - housing counseling. Phil Pleasant, Pleasant Contracting Services - Comments: Requests that fairness and equality and opportunities be available for the African American community. City needs to do more to promote economic development especially in the African American community. Janet Tadlock, Rental Association - Comments: Yakima has an over build of apartments. We encourage home ownership, but should not build more rentals. • • • CITY OF YAKIMA, WASHINGTON October 17, 2000 ADJOURNED MEETING A public hearing was held on this date in the City Council Chambers at 129 North Second Street, Yakima, Washington. Mayor Mary Place, presiding, and Council Member Sims was present. Dick Zais, City Manager; Bill Cobabe, Office of Neighborhood Services Manager; Marketa George Oliver, Administrative Assistant to the City Manager; Mary Valladeres, Office of Neighborhood Services; and Marvin Miller, Office of Neighborhood Services were also in attendance. Citizens present were: Lynne Kittleson, 305 North 9th Street; Carol Folsom Hill, 15 South 6th Street of the Yakima Interfaith Coalition; Martha Larson, 510 East Chestnut; Phil Pleasant, 1202 Fair Avenue; and Maude Scott, 712 East Spruce Street. 1. PUBLIC HEARING ON THE HUD ACTION PLAN Mayor Place called the meeting to order at 7:00 p.m. She explained that she was reopening the hearing from the adjourned Council meeting earlier in the afternoon. Bill Cobabe, Office of Neighborhood Services Manager, explained the purpose of the hearing and what the HUD (Housing and Urban Development) Plan was. He said a draft version of the action plan for 2001 would be prepared by October 20th and then there would be a 30 -day public comment period. Another public hearing was scheduled for November 7th. Following the closure of the public comment period on November 20th, the plan, along with all of the public comments, would be submitted to HUD. He explained that the Action Plan was based on what the City anticipated receiving from the Federal Government, but that the Federal Government budget was not in place yet. The City anticipates receiving a little under $2 million. Mr. Cobabe then gave a brief explanation of each of the programs run by his division.' Lynne Kittleson asked if there was money to do multi -family housing and said it should be added to the paint program. Even if there was no money to undertake remodeling or rehabilitation, at least some of the properties could be painted. Carol Folsom Hill said the Plan should include providing emergency services for people. The critical needs include affordable rent for low income people. She said people live with high rent in poor housing stock and money should be invested to rehabilitate rental housing. A problem in this community is the lack of programs for 1 • • low income single women with no children. They fall through the cracks. Council Member Sims asked Mr. Cobabe to look into the problem. He hears form landlords that they have up to a 3096 vacancy rate and the majority of those are single bedroom units. Mrs. Hill said people do not have enough money to pay rent. Mr. Cobabe indicated that there are too many jobs that do not pay a living wage in this area, but the City is working on that. He said ClientLogic is an example of a company that pays a good wage and they were drawn to Yakima partially through the help of Community Development Block Grant (CDBG) funds. He said that the City will give ClientLogic $140,000 per year for the next 5 years. Ms. Kittleson asked if the program revenue received from investments made from CDBG money in prior years had the same strings attached to it that current CDBG money does. Mr. Cobabe said yes, but that the regulations are relatively flexible. He said that $50,000 of CDBG money can be spent per job to create new jobs. The. City only spent $3,500 per job for to develop the new jobs through ClientLogic. Mr. Cobabe said that $160,000 of CDBG funding is earmarked each year for economic development. Because of the ClientLogic commitment, $140,000 is spent for the next five years. Phil Pleasant asked what the program is doing for black people in the community. He said there is no business development for black people. Mr. Cobabe assured Mr. Pleasant that every opportunity is extended to minorities wishing to participate in any of the Office of Neighborhood Services programs. Mr. Pleasant said black people ere a targeted group but they had been excluded from economic development. Economic development starts with business development. Ms. Larson said she had recently moved to Yakima and it is a shame to see so many boarded up houses. Some housing should go there. She is from Oregon and her community did not tolerate boarded up houses. Council Member Sims explained that there are some different financing options available to communities in Oregon that are not in Washington, such as Tax Increment Financing. The City is working with others around the State to modify these laws. The City is trying to address those problems of boarded up and dilapidate houses. Mr. Cobabe gave an overview of the housing rehabilitation program and said dilapidated housing was addressed through Code Administration. Mrs. Hill asked if CDBG money could or would be used to replace the irrigation on the east side of Yakima. Mr. Cobabe said,no, that an irrigation utility had been created to handle those problems. • • Dick Zais, City Manager, spoke briefly about the City's financial condition and the contingency budget reduction plan. As part of that plan, the fees the City pays to New Vision would be reduced. He suggested that New Vision, whose purpose it is to promote economic development, be funded with some CDBG economic development dollars. He asked that it be put into the Action Plan. Mr. Cobabe will look into this to see if it is permissible. Ms Kittleson said the City should give technical expertise and in-kind services to New Vision, but not money. She said it is the private sector's answer to a port district and does not want any tax dollars going to it. Mr. Zais said that the City is only a participant and New Vision's budget only consists of approximately 256 public dollars. Mrs. Hill asked if the labor force was skilled enough to acquire the new jobs. Mayor Place discussed the ClientLogic training program and the expanded programs at Yakima Valley Community College. She said the ClientLogic jobs started between $7.50 and $11.50 per hour and had full benefits. Mr. Pleasant said black people have to leave Yakima for opportunities. Maude Scott said that people who have already invested in the neighborhoods should be included in the Plan. There needs to be meaningful voices in New Vision for our neighborhoods. There should also be more of an emphasis on historic preservation. She said that the City should not wait until October to hold hearings on the Plan. Mayor Place explained that the timeline for the process coincided with the Federal Budget development process. Mayor Place announced that the public comment period would be open until November 20th and another public hearing is scheduled for November 7th at 2:00 p.m. in the City Council chambers. Copies of the Action Plan are available at the Office of Neighborhood Services; the City Clerk's office; the Library; on the website; and at the Police Station. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: - l For Meeting of: November 21, 2000 ITEM TITLE: 2001 Annual Action Plan SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cobabe, Neighborhood Development Services Manager (575-6101) SUMMARY EXPLANATION: The attached resolution approves the City of Yakima's proposed Annual action Plan for expenditure of Community Development block Grant and HOME funding from the U. S. Department of Housing and Urban Development. This Action Plan continues the investment strategies included in the City's 2000-2004 Consolidated Plan approved by Council on November 16, 1999. The Action Plan constitutes the City of Yakima's application for federal entitlement funds, provides a statement of intent as to how the funds will be spent, and certifies that the expenditures will conform to applicable federal laws and regulations. The proposed activities were written after an extensive public input process. Four meetings were held on different dates and places in the community where residents and agency personnel had the opportunity to comment on the needs they see in the community and make recommendations as to how they would like to see the funds used to help meet these needs. In addition the public had the opportunity to comment on this written version of the plan for 30 days (October 20 through November 20, 2000). Council heard additional public comments at their public hearings on October 17, 2000 and November 7, 2000. Approval of the resolution will permit submission of this application to the United States Department of Housing and urban Development. Approval of the 2001 Annual Action Plan and this resolution expressly delegates authority to the City Manager to execute all transactional documents associated with carrying out eligible programs included in the plan. Resolution X Ordinance Co ract Funding Source: , f1 APPROVAL FOR SUBMITTAL: .At City Manager Other Specify STAFF RECOMMENDATION: Approve Resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: City of Yakima Office of Neighborhood Development Services Fiscal Year 2001 1 atarAir CIiernLogic Alb Consolidated Annual Performance & Evaluation Report Consolidated Annual Performance & Evaluation Report Fiscal Year 2001 Department of Community & Economic Development March 13, 2002 Mary Place, Mayor Richard A. Zais, City Manager William R. Cook, CED Director F. William Cobabe, ONDS Manager 1 The City of Yakima has been a beneficiary of the Community Development Block Grant (CDBG) program for over 25 years. During that time some of our accomplishments have been that we have: ■ Provided assistance to approximately 1905 low -moderate income families, ■ Invested over $46,519,147 in our community from Federal, State, and local funding sources; including $23,315,989 from Community Development Block Grant (CDBG), ■ Expended an excess of 2.53 million dollars in total funds for CDBG infrastructure projects that include street lighting, curb and gutter, recycling, park improvements, community gardens, canal improvements, neighborhood clean up, diversion dams, and irrigation lines, ■ Innovatively used CDBG funds to expand services, create jobs, and housing opportunities. More recently the HOME program was created, to provide greater flexibility and increased funding specifically for housing. At the end of each year the City of Yakima Office of Neighborhood Development Services (ONDS) prepares a report on the CDBG and HOME activities during the year. This document is the annual report for 2001. The report compares the accomplishments of the past year to the goals and objectives that were set in the Consolidated Plan, and the Annual Action Plan. Its purpose is to inform the public, local elected officials, and HUD of our investment during 2001. It addresses activities in categories that are specified in the federal regulations that govern the programs. These categories include fair housing, affordable housing, and continuum of care activities. Other information is provided about leveraging of resources, citizen comments, and self-evaluation. Finally, a number of computer-generated reports are included. In preparing the Annual Action Plan for 2001, ONDS set goals and made plans that were guided by the Consolidated Plan. (The Consolidated Plan is the five-year plan compiled after extensive public input and careful research and consultation.) These planning efforts resulted in goals that place an emphasis on five specific areas: ■ Economic Development ■ Affordable Housing ■ Youth Programs and Community Services ■ Leadership Development ■ Infrastructure In public meetings and consultation with area non-profit groups and other public agencies throughout the year, the validity of these goals is regularly monitored. It appears that among local elected officials, the public, and non -profits, there is still a strong mandate for these goals. 2 One new area for potential investment of CDBG funds that was carefully examined this year was the replacement of irrigation lines in the oldest part of the City. There was strong support from a group of citizens for this project. Investigation showed that the proposed project would cost over $15 million. After careful consideration the Yakima City Council voted not to fund this project. Economic Development During 2001 there was substantial progress made in meeting Economic Development goals. Client Logic successfully reached the target set for their first year, and was granted $140,000 to assist with their activities. (By February 2002 they reported 202 full time employees.) In their November 2001 annual report, Client Logic reported 77 employees at the end of the second quarter, with payroll for the quarter listed at $394,835.96. This calculates to an average annual wage of $20,511 per employee, which places many of their employees in the low to moderate -income category. CDBG funds were also provided to assist with the Annual Job Fair. During this activity the Convention Center is filled with booths set, up by local employers. The Fair is attended by thousands of job seekers, who are able to make contact with potential employees. Dozens of jobs were filled during the activity, with many more soon thereafter. During 2001, the City through ONDS decided to apply for Federal Renewal Community status. This is a new program that makes several tax incentive programs available to qualified local businesses. In January, we learned that Yakima was selected to be one of only forty Renewal Communities nationwide. Affordable Housinj This year saw the beginning of some changes in how ONDS approaches affordable housing. We will continue to fund and participate in each of the various housing programs of the past, such as the Habitat for Humanity partnership, Senior Home Repair, New Construction, and Rehabilitation. At the same time a new emphasis is being developed. The goal is to produce larger, highly visible projects. This is in an attempt to leverage our funds for greater community and neighborhood impact. Examples of the successes achieved by ONDS while developing this concept include the four new homes located at the corners of 4th and "I" Streets, and 2nd and "I" Streets. In order to provide for the expansion of our new construction program, a study group was formed with representatives from other affordable housing developers. The group is now in the process of setting goals and developing plans for its first project. Outside funding is being requested for a professional study of local housing conditions and needs. During 2001, ONDS started, completed or assisted in the construction of 8 new homes, 6 rehabilitated homes, 28 senior homes repaired, and 10 homes were painted. Additionally, 3 17 homes were sold to first time homebuyers through our Down Payment Assistance program and seven through First Time Homebuyer programs. Substantial assistance was provided to the Reil House project on the Epic Place campus. Community Services Several significant Community Service projects received CDBG funds during 2001. These included Code Enforcement Cleanup by Inmates, Yakima County Substance Abuse Coalition Transition Salary, Yakima County Best SELF, United Way of Yakima County -"211 Program Networking," and YWCA -Girls Empowered by Math and Science. These programs served at least 12,000 clients. With a relatively modest investment of funds this continues to be an effective use of block grant funds. Our mandated goal of developing leadership from within the community is realizing slow but significant progress. We have spent time assessing the need, and understanding obstacles. We are studying programs in other communities. A new partnership between ONDS, Columbia Legal Services, the Dispute Resolution Center, and the Yakima Housing Authority led to the development and presentation of a series of living in the community workshops. This was presented in both English and Spanish, with funding from an outside grant awarded to Dispute Resolution. Infrastructure In 2001, we installed 970 feet of sidewalk. We assisted with 7 utility connections. Plans for the Fruitvale water and sewer project are nearly complete, and this project should begin in 2002. Affirmatively Furthering Fair Housing Yakima's affirmatively furthering fair housing project is a fair housing counseling hotline. This provides assistance with disputes between landlords and tenants. While we cannot provide legal counseling, we also refer such issues to one of the area legal services. During 2001, we provided this service to approximately 2,200 clients, through telephone calls, walk in clients, and literature. Homelessness Although our CDBG funds are not used for direct services to the homeless, this continues to be an area where we provide valuable assistance. During 2001, we assisted in writing a successful funding request for a local homeless housing provider. We also formed a new partnership with Yakima County, various agencies and non -profits to author a new Continuum of Care for the Homeless plan. This plan is required to be eligible for a variety of funding programs; in addition, it helps us assess our need and enlists the assistance of many community groups in serving the homeless population. Leveraging One of the best uses for CDBG and HOME funds is to use them in combination with other funds and resources. Known as leveraging, this tool allows the scarce federal funds to have an impact far greater than if they are used as the exclusive funding source for a project. For example, in 2001 we funded 17 down payment assistance home purchases. 4 Our cost for this assistance was $64, 995. The homes purchased sold for an average price of about $80,497, for a total value of $1,368,449. So, for less than the price of one home we assisted 17 families to own their own first home. Other leveraged dollars came through the First Time Home Buyer program ($524,490), many of the Community service programs, the Habitat for Humanity partnership ($67,418), the McKinney Homeless programs, the Hispanic Serving Institutions grant ($497,000) awarded to Yakima Valley Community College, Client Logic ($4,000,000 current estimated annual payroll), as well as the outside grants obtained through the efforts of the city grants writer, whose salary is largely paid with CDBG planning funds. The end result is that the CDBG funds are multiplied several times each year through careful investment. Public Comments At public meetings this year a number of suggestions were made. There was discussion of the need for more economic development opportunities, which are being met through the Renewal Community program. Other suggestions involved neighborhood clean-up, leveraging resources, and strengthening neighborhood groups. We are working to strengthen these efforts as well, through our existing programs. Suggestions for funding an irrigation project generated the most comments and presented the greatest challenge. The system that needs to be replaced is in the oldest part of town, and is simply worn out. Many of the mains are the original wooden pipes. The system leaks so badly that some neighborhoods have virtually no pressure. Residents are concerned that, without a system to provide cheap irrigation, some people will be unable to water their yards. Replacing the system would cost over $15 million. The majority of the City Council voted not to fund this project. Self Evaluation The CDBG Target Area for Yakima serves a large percentage of the citizens of the city. In parts of the target area more than 40% of the population have incomes below the federal poverty level. The need for assistance in housing, infrastructure, services, and jobs is enormous. Any one of the areas could use our entire annual budget several times over. Because of this reality we have learned to adopt a strategy of comparing the impact of a modest investment in a given area to the same investment in another category. Our challenge is to maintain a proper balance among all the potential projects. We attempt to use funds judiciously and leverage them with other funds for the best effect. This is not unlike the process of tuning the spokes on a bicycle wheel. On a bicycle wheel each spoke plays an important individual part, but perhaps more important is its role in the entire wheel. Each spoke supports and is supported by every other spoke at 5 New Construction. -821 N. 2nd St. the same time. So when a specific spoke is at the bottom of the wheel it is not holding up the entire bike and rider, but the weight and stress are distributed evenly to all others. Each spoke has a part that allows for adjustment so each spoke has equal stress, and keeps the wheel pointed straight down the path. Out of adjustment, the wheel is not true, and will wobble, and potentially collapse. Properly tuned, the wheel can support incredible weights. Similarly, potential changes in programs must be evaluated not just for their own merit, but also for their potential impact on other needed programs. Given our limited resources, it is impossible to meet all possible needs. Past efforts to maximize services have been successful, but improvement is needed. While we believe that in the past ONDS has done an adequate job of maintaining balance and providing services, it is time to move up to a higher, level. Simply, more is required if we are to play our part in bringing about the changes needed in our City. In order to use our funds for maximum effect, they must be invested and leveraged carefully. Ongoing evaluation, citizen input, and consultation with our partners are an important step. As we begin the process of writing a new Consolidated Plan over the next two years, everything we have done in the past will be looked at carefully. New ideas will be explored. Additional funding will be aggressively pursued. The new Renewal Community tools will be utilized. Planning efforts like "For a Better Tomorrow," developed by the Chamber of Commerce and others, will be incorporated. CDBG Program Specific Evaluation All Yakima CDBG programs benefit low and moderate -income persons and neighborhoods. They serve identified local objectives, as specified in the Consolidated Plan. The goals of the Consolidated plan are consistent with the National Objectives of the Block Grant program and its regulations. At ONDS we have provided several letters to outside agencies certifying that their efforts are consistent with the intent of our Consolidated Plan. This is a requirement for some types of federal funding. The letters have helped bring additional grant funds to our community, as in the case of McKinney Funding for homeless programs and the Hispanic Serving Institutions at YVCC. We work diligently to implement all of the programs and goals identified in our Consolidated Plan. One of these goals is to minimize the displacement of residents by our projects. When residents are temporarily displaced we help them find suitable housing at an affordable rate, and assist with moving related expenses. Only one project required such assistance this year. The result was a family moving from a dilapidated shack to a brand new home. 6 ONDS does not currently have a program to provide for rehabilitation of apartment units. There were no loans made with CDBG funds `written off' in 2001. We received no funds from the sale of real property purchased with CDBG funds. HOME Program Specific Evaluation The ONDS completed HOME projects in 2001 as identified earlier. All home expenditures were consistent with the Consolidated Plan. Normal required local match for the HOME program is 25%. Locally we are required to provide only 12.5% match, because of local economic conditions. As the attached form indicates, we exceeded this requirement. There were 2 HOME projects that were contracted with minority or women owned businesses. The total value of these contracts was $119,612. (FORM 40107-A) The HOME program requires monitoring of certain types of projects where its funds were used for purchase or rehabilitation. There were 13 HOME -assisted Community Housing Development Organization (CHDO) rental units that were monitored in 2001. All successfully passed the Housing Quality Standards inspection and the affordability requirements. In 2001, ONDS and the City of Yakima budgeted for the expenditure of our revenues. The attached chart compares planned to actual expenditures. Also in 2001 several Community Service programs were assisted with ONDS funds. The number of persons served by these programs was at least 12,000. As demonstrated on the attached reports from the HUD computer reporting system (IDIS), our administration expenses were less than the required 20% cap (17.89%), and less than the services cap of 15% (13.93%). We believe that the ONDS activities for 2001 contributed significantly to the City of Yakima and its citizens. We are pleased to have been able to be of service. 7 •—•-.— ..:v•,••••a ■ ■Vii.rvi r. u.o. ueparrment or Housing and Urban Development Office of Community Planning and Development Part I Participant Identification 1. Participant No. (assigned by HUD) 2. Name of the Participating Jurisdiction M98—MD530203 Office of Neighborhood Development Services 5. Street Address of the Participating Jurisdiction 112 South 8th Street. s. City Yakima Part II Fiscal Year Summary 7. State WA 8. Zip Code 98901 OMB Approval No. 2501-0013 (exp. 11/30/2001) Match Contributions for Federal Fiscal Year (yyyy) 2001 13. Name of Contact (person completing this report) William Cobabe,ONDS Manager 14. Contact's Phone Number (include area code) ! (509) 575-6101 1. Excess match from prior_ Federal fiscal year 2. Match contributed during current Federal fiscal year (see Part 111.9.) 3. Total match available for current Federal fiscal year (line 1+ line 2) $ 9,558,527 _$ 2,016,878 4. Match liability for current Federal fiscal year 5. Excess match carried over to next Federai fiscal year (line 3 minus line 4) Part III Match Contribution for the Federal Fiscal Year 1. Project No. or Other ID 01 -01 -NON ' 11,5791409 2. Date of 3. Cash 4. Foregone Taxes, Contribution (non -Federal sources) Fees, Charges (mnvdd/yyyy) 3-31-01 119,065 5. Appraised Land / Real Property 6. Required Infrastructure 99,093 •$ 11,476,312 7. Site Preparation, Construction Materials 8. Bond Donated labor Financing 01 -02 -NON 12-31-01 27,394 9. Total Match $119,065 01 -03 -NON 9-30-01 17,587 01 -04 -PI 10-31-01 68,000 01 -05 -PI 12-31-01 225,067 27,394 17,587 68,000 01-06-01 12-31-01 1,559,765 225,067 1,559,765 page 1 of 4 pages form HUD-40yo7.4, ;lact Program/ Account Number City of Yakima Office of Neighborhood Development Services FOR YEAR 2001 Proposed Carry Budget for Forward YTD Actual Annual 2000 to 2001 Expenses Action Plan 2001 Budget as of 3/1/02 CDBG Community Service 124.4.124.331.0000.55920.41E 96,500 105,858 202,358 135,235 Sidewalk Program 124.4.124.331.0000.55920.41S 25,000 4,924 29,924 6,941 CDBG Paint Program 124.4.124.331.0000.55920.48P 25,000 13,990 38,990 9,715 Economic Development 124.4.124.331.0000.55920.48T 276,500 156,196 432,696 183,965 CDBG Public Facilities 124.4.124.331.0000.55920.48U 14,000 11,276 25,276 4,164 CDBG Infrastructure 124.4.124.331.0000.55920.48W 100,000 100,000 17,206 Graffiti Abatement 124.4.124.331 0000.55920.48Z 12,280 12,280 2,586 Sidewalk Program 124.4.124.331.1906.55920.41S 62,238 62,238 62,238 CDBG Infrastructure (Proj 1918) 124.4.124.331.1918.55920.48W 55,000 55,000 2,415 CDBG Rehab -Single Family 124.4.124.331.HS01.55920.48F 20,000 20,000 -1,462 CDBG Rehab - Elderly 124.4.124.331.HS02.55920 48E 75,000 75,000 63,312 Lead Based Paint Abatement 124.4.124.331.HSO4.55920.48C 20,000 20,000 45,571 3/14/2002 mag Page 1 of 2 Program/ Account Number Proposed Carry Budget for Forward YTD Actual Annual 2000 to 2001 Expenses Action Plan 2001 Budget as of 3/1/02 CDBG Rehab -Relocation 124.4.124.331. HSI 9.55920.48T 2,000 CDBG Program Delivery Service Unit 331 420,000 CDBG Administration Service Unit 339 246,000 Service Unit 333 Housing Counseling 16,000 Sery Unit 699 Operating Transfer 124.4.124.699 0000.59700.550 205,000 TOTAL CDBG EXPENDITURES: HOME HOME Single Family Rehab 124.4.124.337. HS08.55920.48M HOME Professional Services 124.4.124.337.HS09.55920 410 HOME Administrative Cost Service Unit 337 TOTAL HOME EXPENDITURES: 2,000 5,696 360,225 352,987 253,681 282,969 27,754 16,783 205,000 205,000 1,496,000 466,762 1,922,422 1,395,321 615,900 142,476 * 665,676 559,150 103,200 90,059 * 193,109 84,746 79,900 0 154,182 91,371 799,000 232,535 1,012,967 735,267 TOTAL 2001 CDBG & HOME: 2,295,000 699,297 2,935,389 2,130,588 ONDS GRAND TOTALS FOR 2001 (per green bar): Service Unit 331 CDBG Service Unit 333 CDBG Service Unit 339 CDBG Service Unit 669 CDBG Service Unit 337 HOME 3,131,888 1,435, 986 27,754 253,681 205,000 1,012,967 2,297,812 890,569 16,783 282,969 205,000 735,267 Balance after CDBG and HOME are deducted: Less Service Unit 333 (HOPE 3) and 340 (Non -Federal) = 196,500 167,224 196,500 167,224 0 0 * Carry Forward represents an actual number determined after the Annual Action Plan and the City's budget preparation were completed. 3/14/2002 mag Page 2 of 2 Annual Performance Report August 23, 2000 — August 22, 2001 This report has been prepared regarding the fulfillment and satisfaction of the terms and conditions of the agreement between the City of Yakima and ClientLogic Operating Corporation. This report will show: • Summary of operations • Total payroll by quarter • Total FTE's by quarter • Accounts of training programs and expenditures • Distribution of types of jobs • Length of employee tenure in the Yakima workforce • Earnings and promotion history • Age, sex and ethnic background as available Summary ClientLogic entered into an agreement with the City of Yakima in May of 2000 to establish a customer relationship management service operation involving 400 new jobs in the City's Community Development Block Grant Target Area. The extensive construction and remodeling started in August of 2000, after lease arrangements had been made, and concluded in March of 2001. The initial training class and management team was hired in late 2000, early 2001. During the past year, ClientLogic has sponsored five (5) new hire training classes and developed the needed infrastructure for future operations including the initial investment of 3.2 million dollars in construction and equipment purchases. ClientLogic is still on track to meet the hiring commitment of 200 FTE's by March of 2002. Total Payroll By Quarter • Quarter 1, 2001 • Quarter 2, 2001 Total FTE's By Quarter $267,096.18 $394,835.96 • Quarter 1, 2001 83 • Quarter 2, 2001 77 Prepared on 08/22/01 Page 1 Accounts of Training Programs and Expenditures ClientLogic sponsored five (5) new hire training programs since December of 2000 for our technical support and customer service clients. Training expenses have totaled $94,773 for a total of 9,200 training hours. The new hire training dates started on the following dates. • Customer Service Training January 24, 2001 February 5, 2001 August 6, 2001 • Technical Support Training December 11, 2000 August 20, 2001 Distribution of Types of Jobs ClientLogic currently has 72 employees distributed over 15 different positions as of 8/22/01. The number and variety of employees and positions will continue to grow as additional and expanded business grows. Management Non -management 11% 89% Full-time 75% Part-time 25% % of Workforce Positions: Management Solution Delivery Officer 1.4% Financial/Operations Accountant 1.4% Human Resources Manager 1.4% Systems Administrator 1.4% Site Support 1.4% Senior Supervisor —Tech Support 1.4% Supervisor — Tech Support 1.4% Facilities Manager 1.4% Total Management 11.00% Positions: Non -Management Receptionist 1.4% Product Specialist — Tech Support 2.8% Technical Support Specialist II 4.1% Technical Support Specialist 41.6% Product Specialist — Customer Service 1.4% Customer Service Representative II 2.8% Customer Service Representative 34.7% Total Non -Management 89.00% Prepared on 08/22/01 Page 2 Length of Employee Tenure in the Yakima Workforce This is a difficult number to report at this early stage. The maximum number of tenure (in days) that any associate could have is 260 days since the first employee was hired on 12/11/00 and also considering that we just hired 21 individuals this month. The average tenure at ClientLogic is 162 days. Earnings and Promotion History ClientLogic has made ten (10) internal promotions since January of 2001 with an average annual pay increase of $2,292.00 each. One of the non -management promotions was to an individual living within the CDBG Target Area. Internal promotions were made to the following positions. Management • 1 Supervisor Customer Service Non -Management • 2 Product Specialist — Tech Support • 3 Technical Support Specialist II • 2 Product Specialist — Customer Service • 2 Customer Service Representative II Age, Sex, and Ethnic Background as Available Age Sex • Ages 18 — 29 39% • Ages 30 — 49 47% • Ages 50 and higher 14% • Female 46% • Male 54% Ethnic Background • African American • American Indian or Alaskan Native • Caucasian • Hispanic 2.8% 4.2% 80.5% 12.5% Prepared on 08/22/01 Page 3 • CLEENTL(J))GIC February 28, 2002 Bill Cook Director Community and Economic Development 129 North Second Street Yakima, WA 98901 Dear Bill: This letter is to officially disclose ClientLogic Yakima's employee count for the purposes of meeting the specific minimum workforce goals in the agreement between the City of Yakima and ClientLogic Operating Corporation (Page 2 or 13, III., 1., C.). The first year of operation is considered March 2, 2001 — March 2, 2002. Total Employee Headcount: 225 Full-time and Part-time employees Total Full-time Equivalent: 202 FTE The last six months have been extremely busy as we have grown with the addition of new and expanding business units. Please let me know if you have any questions. Sincerely Scott Washburn Manager, Human Resources cc: Sharon Rowland, Sr. Accountant — Financial Reporting T 1 509 895 1005 F 509 895 1292 website www.clientlopic.com P 0 Box 45. Yakima WA 98907