Housing and Human Services Commission

City of Sunnyvale Meeting Minutes - Final Housing and Human Services Commission Wednesday, July 23, 2014 7:00 PM West Conference Room, City Hall, 456 W. Olive Ave., Sunnyvale, CA 94086 CALL TO ORDER Chair Chiu called the meeting to order at 7:08 p.m. SALUTE TO THE FLAG ROLL CALL Present: 6 - Commissioner Dennis Chiu Chair Diana Gilbert Vice Chair Younil Jeong Commissioner Chrichelle McCloud Commissioner Barbara Schmidt Commissioner Navpreet (Ruby) Sidhu Absent: 1 - Commissioner Patti Evans Commissioner Evans (excused absence) Council Liaison Tara Martin-Milius (absent) PUBLIC ANNOUNCEMENTS CONSENT CALENDAR Chair Chiu asked if anyone wanted to pull an item from the consent calendar for discussion. No one did. He then asked for a motion to approve the consent calendar. 1.A 14-0620 Draft Minutes of the Housing and Human Services Commission Meeting of May 28, 2014 Vice Chair Gilbert moved and Commissioner Jeong seconded the motion to approve the consent calendar which consisted of the draft minutes for the meeting of May 28, 2014. The motion carried by the following vote: City of Sunnyvale Page 1 Housing and Human Services Meeting Minutes - Final July 23, 2014 Commission Yes: 6 - Commissioner Chiu Chair Gilbert Vice Chair Jeong Commissioner McCloud Commissioner Schmidt Commissioner Sidhu No: 0 Absent: 1 - Commissioner Evans PUBLIC COMMENTS None - Chair Chiu opened and closed the public comment period at 7:10 p.m. PUBLIC HEARINGS/GENERAL BUSINESS 2 14-0349 Consider Sunnyvale Community Services’ Request for Modification of 2003 CDBG Loan Chair Chiu asked for a staff report. Housing Officer Suzanne Isé explained that this is the third public hearing on this matter. She gave a brief summary of the request and how it has changed since it was first heard by the City Council. She also explained that Council referred this matter to the Housing and Human Services Commission for input and a recommendation. Commissioners asked some technical questions of staff, which were answered. Chair Chiu opened the public hearing at 7:48 pm. Executive Director of Sunnyvale Community Services (SCS), Marie Bernard, presented several slides about SCS and the reasons for its request for a loan modification. She answered commissioners' questions regarding the request. Ms. Bernard noted that having the deferred interest in essence restricts twelve thousand dollars per year from being used to provide assistance to needy clients. She also added that it was not uncommon for other jurisdictions to make these types of loans with more favorable terms, such as: forgiving the loan after five or ten years, or providing loans at zero percent interest. SCS Board Member, Sunnyvale resident, and former Sunnyvale Finance Director Mary Bradley spoke in favor of the request and encouraged the Commissioners to approve it. She noted that other cities such as Fremont have an entire human services department that receives thousands of dollars to do what SCS does for City of Sunnyvale Page 2 Housing and Human Services Meeting Minutes - Final July 23, 2014 Commission Sunnyvale. She also highlighted that SCS' administrative costs are only eight percent of its budget, one of the lowest rates one could find among non-profits. Chair Chiu closed the public hearing at 8:38 p.m. Commissioners asked several more questions of staff and the applicant and discussed the matter at length, including the issues highlighted in the report regarding precedent and potential impacts to other agencies seeking CDBG funds. Following the discussion, Chair Chiu asked for a motion. Vice Chair Gilbert moved and Commissioner Jeong seconded the motion to approve Alternative 1: Recommend that Council approve the current SCS request (“Option 2”) to revise the existing loan agreement to forgive the interest accrued to date and reduce the interest rate to zero percent; and that Council make a formal policy statement that this action shall not be seen as a precedent for other borrowers, and is made only due to the unique role of SCS in the Sunnyvale community. The motion carried by the following vote: Yes: 4 - Commissioner Chiu Chair Gilbert Vice Chair Jeong Commissioner Sidhu No: 2 - Commissioner McCloud Commissioner Schmidt Absent: 1 - Commissioner Evans Commissioner McCloud stated that she dissented because she was neither convinced that SCS really needed the modification, nor did she see the immediate benefit of granting their request (because the payments were already deferred). She said that she didn't think that it was a good practice for the City to enter into a contract, then forgive it, and in turn potentially take away funds from other agencies that could also benefit the community. Commissioner Schmidt stated that she dissented because she really could not make up her mind about the request. She noted that she had no problem with forgiving the interest, however she really did not believe that SCS needs those funds to continue to serve its clients. Chair Chiu called for a 5 minute recess at 9:10 a.m. and reconvened at 9:15 p.m. City of Sunnyvale Page 3 Housing and Human Services Meeting Minutes - Final July 23, 2014 Commission 3 14-0320 Election of Officers for FY 2014-2015. Chair Chiu asked if anyone was interested in serving as Chair or Vice Chair and opened the floor for nominations. Commissioner McCloud nominated Vice Chair Gilbert for the office of Chair. Commissioner Schmidt nominated Commissioner Jeong for the office of Vice Chair. Chair Chiu closed the floor for nominations and opened the floor for discussion. Vice Chair Gilbert was elected to the Office of Chair and Commissioner Jeong was elected to the Office of Vice Chair for FY 2014-15 by acclamation. NON-AGENDA ITEMS & COMMENTS -Commissioner Comments Newly elected Chair Gilbert thanked Commissioner Chiu for his service as Chair during FY 2013-14. -Staff Comments Staff reminded the commissioners that the next meeting is scheduled for September 24, 2014. INFORMATION ONLY REPORTS/ITEMS None. ADJOURNMENT Chair Chiu adjourned the meeting at 9:20 p.m. City of Sunnyvale Page 4