Finance Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Finance Committee Information: 360.753.8244 Thursday, September 6, 2018 5:30 PM Council Chambers 1. CALL TO ORDER Chair Cooper called the meeting to order at 5:32 p.m. 2. ROLL CALL Present: 3 - Chair Jim Cooper, Committee member Jessica Bateman and Committee member Lisa Parshley OTHERS PRESENT Community Youth Services CEO Derek Harris Community Youth Services Administrative Services Director Keylee Marineau Interfaith Works Co-Executive Director for Homeless Services Meg Martin Sidewalk Executive Director Phil Owen Providence Community Care Center representative George Chapel Providence Community Care Center representative Sue Beall City of Tumwater Mayor Pro Tem Joan Cathey City of Lacey Councilmember Carolyn Cox City of Lacey Councilmember Rachel Young Thurston County Commissioner Board of Health Chair Bud Blake Thurston County Board of Health Public Health and Social Services Director Schelli Slaughter 3. APPROVAL OF AGENDA The agenda was approved. 4. PUBLIC COMMENT The following people spoke: Greg Chance and Dan Garrity. 5. APPROVAL OF MINUTES 5.A 18-0840 Approval of August 15, 2018 Finance Committee Meeting Minutes The minutes were approved. 6. COMMITTEE BUSINESS City of Olympia Page 1 Finance Committee Meeting Minutes September 6, 2018 6.A 18-0825 Approval of a Funding Plan for Implementing Homeless Response Strategies Chair Cooper welcomed and thanked community partner representatives from Community Youth Services, Interfaith Works, Sidewalk, Providence Community Care Center, City of Lacey, City of Tumwater and Thurston County Board of Health. City Manager Steve Hall provided background information on the homelessness crisis and what the City of Olympia has done to address it. Community Planning & Development Downtown Programs Manager Amy Buckler reviewed immediate action goals that incude: * Aligning with Thurston County's Five-Year Strategic Homeless Housing Plan * Moving to a 24/7 shelter system * Increasing capacity to care for the most medically vulnerable individuals * Creating a safe community for everyone Ms. Buckler described the proposal to move Interfaith Works' operations to the 2828 Martin Way site. Their current location within the Community Christian Church is not sustainable because of the building's aging infrastructure. The move will also allow an expansion to a 24-hour operation, as well as an increase in the number of beds and creation of a respite center. She remarked there is currently no respite center in Thurston County. She reviewed estimated costs but noted there are many unknowns. Ms. Buckler reviewed plans and costs for the tiny homes at the Nursery site. She said LIHI (Low Income Housing Institute) is confident they can meet stated construction timelines but City staff is not certain the City can get materials donated in time. The cost of materials, and the restroom and laundry facilities are areas where other organizations wanting to offer financial assistance could easily contribute. Another way to provide support would be to contribute to the expansion of the 24/7 shelter system. Ms. Buckler discussed other proposed immediate actions that include coordinated entry staffing for Sidewalk, a partnership for secure storage, and partnerships for emergency housing facilities. Finally, Ms. Buckler reviewed total estimated expenses for the overall homeless response strategy: $1.9 million in operating costs, $2.1 million in capital costs, and $682,000 for one-time set-up expenses. Staff recommendations for the homeless response strategy funding include: * $1.4 million to acquire the 2828 Martin Way property * $100,000 for the Nursery Village emergency housing facility operating expenses * $55,000 to support 24/7 Community Youth Services shelter staffing * $12,600 to support a secure storage partnership Mr. Hall reviewed available funding sources for the homeless response strategy. One of the sources is the Non-Voted Utility Tax (NVUT). Parks, Arts and Recreation Associate Director Jonathon Turlove explained the impact of using half of the NVUT dollars for homelessness response. The City has acquired 450 acres of park land towards the goal of 500 acres. In the current Capital Facilities Plan, after existing commitments, the City would have $3.1 million for land acquisition through 2021 and be able to purchase City of Olympia Page 2 Finance Committee Meeting Minutes September 6, 2018 approximately 30 additional acres. If half the NVUT dollars are used for homelessness response, after existing commitments, the City would have $1.6 million for land acquisition through 2021 and be able to purchase approximately 15 additional acres. The following community partners provided comments: Community Youth Services - Rosie's Place is the product of a 14-year vision. There is a shortage of available daytime and weekend hours. With City support, the program can expand to 24/7 and make a significant impact for youth. The only delay would be in getting qualified staff hired and trained. Interfaith Works - The program has incurred large costs because of the building condition at Community Christian. They support the City's homeless response strategy. Neighborhood outreach is needed to address concerns. Sidewalk - All projects in the City's proposal are worthy of funding. In particular, the Martin Way property and the respite center. There are concerns about using Home Fund dollars because none of the proposed projects fit the Home Fund criteria of permanent, supportive housing. There should be an advisory board. Providence Community Care Center - They are interested in partnering at the Martin Way site. City of Lacey - They have recently talked with community care providers to assess resources. Two steering committees formed. One is in charge of the new food bank that has broken ground. The other is focused on youth because they want to address the cyclical nature of homelessness. They've identified six sites where space is available to house the homeless. This project is in a preliminary phase and rezoning is required. City of Tumwater - They have been analyzing the homelessness crisis for the last six months. They are trying to help with resources and affordable housing. They recently passed resolution R2018-016 with a variety of strategies to address homelessness. The resolution is available on their website. Thurston County Board of Health - They gave appreciation that the homelessness issue is viewed as a health concern. They expressed concern over the cost of temporary shelters without in-kind funding for permanent affordable housing. They support day services and have $223,000 earmarked for that. Chair Cooper thanked everyone for their comments and communicated the importance of having a clear path across the community to ensure all partners are working toward a common goal. Committee member Bateman recommended the County representatives find funding for a low-barrier shelter because the lack of it is impacting the community negatively. She wants capital dollars to go towards permanent housing, not temporary shelters. Committee member Parshley asked clarifying questions and stated her support City of Olympia Page 3 Finance Committee Meeting Minutes September 6, 2018 for a Home Fund Advisory Committee. Chair Cooper identified a couple of gaps: 1. The sustainability of current operations of Interfaith Works and Providence Community Care Center is paramount to the success of the proposed Martin Way site. Portability of the partners is another factor to consider because operations would need to continue at a temporary site while constructing a permanent facility. 2. A street strategy is needed. He proposed the expansion of the Downtown Ambassador program. Chair Cooper also noted the NVUT agreement allows for a change in fund use in case of emergency without an amendment. Parks advocates seem agreeable to extending the agreement from three to four years. The Committee unanimously approved the following recommendations to forward to City Council for consideration on 9/18/2018: 1. Expand Community Youth Services to 24/7 ($220,000) 2. Expand Salvation Army to 24/7 ($300,000) 3. Secure Storage Partnerships ($50,000) 4. Fund operational expenses for the Nursery Site ($583,000) 6.B 18-0828 Briefing of the Preliminary 2019 Operating Budget Administrative Services Director Debbie Sullivan talked about the projected funding shortage through 2023 given the revenue assumptions and projected expenses outlined in the presentation. She displayed a list of unfunded critical needs. Mr. Hall gave a cursory introduction to the following special topics: * Downtown Aid Unit * CPD Staffing * Office of Performance and Innovation * Public Safety Lid Lift - Banked Capacity * Municipal Park District - Banked Capacity * Budget Stabilization Reserve The information was provided. 6.C 18-0821 Briefing on the Preliminary 2019-2024 Capital Facilities Plan and 2019-2024 Financial Plan Ms. Sullivan reviewed revenues received, projected revenues, noted upcoming special topics and next meeting dates. The information was provided. 7. REPORTS AND UPDATES The Committee agreed to hold a special meeting on Tuesday, October 25. City of Olympia Page 4 Finance Committee Meeting Minutes September 6, 2018 8. ADJOURNMENT Chair Cooper adjourned the meeting at 8:00 p.m. City of Olympia Page 5