Budget & Finance Committee

TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 1 CONVENE: 10:04 a.m. PRESENT: Mayor Debbie Sullivan and Councilmembers Michael Althauser, Peter Agabi, and Eileen Swarthout. Staff: City Administrator Lisa Parks, City Attorney Karen Kirkpatrick, Finance Director Troy Niemeyer, Community Development Department Director Michael Matlock, Fire Chief Brian Hurley, Planning Manager Brad Medrud, and Executive Assistant Brittany McClanahan. Others: Alex Persse, Affordable Housing Program Manager, and Sharif Hocine, Affordable Housing Program Specialist, Thurston County Public Health & Social Services APPROVAL OF MINUTES: BUDGET & FINANCE COMMITTEE, OCTOBER 23, 2023 & NOVEMBER 7, 2023: MOTION: Councilmember Swarthout moved, seconded by Councilmember Agabi, to approve the minutes of October 13, 2023 and November 7, 2023 as published. A voice vote approved the motion. 2024 COMMUNITY Manager Medrud reported that of the 10 interviews for the 2024 DEVELOPMENT Community Development Block Grant (CDBG), four interviews are for BLOCK GRANT Housing Capital Projects and six interviews are for Public Services (CDBG) FUNDING Projects. INTERVIEWS: HOMES FIRST: Trudy Soucoup, Executive Director, Homes First, reported the organization is a 34-year old non-profit housing provider. The organization purchases and rehabilitates pre-existing homes and rents the homes to low-income individuals with most of the tenants living at 30% or less of area median income. The process has been an effective and environmentally friendly way to provide more housing throughout local communities with homes in the cities of Lacey, Olympia, Tumwater, and Shelton. The application is seeking support to complete rehabilitation of an Oxford House purchased by the organization in 2023. Oxford House International is a clean and sober program. The project is the organization’s sixth Oxford home. The program supports individuals who have completed rehab to move forward. The house is located off Cleveland Avenue in Tumwater. The five bedroom, two bath home was purchased for $300,000. In 2023, the organization also purchased a five- bedroom, two-bathroom house at a cost of $725,000 in Lacey. That house TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 2 was ready for immediate occupancy. The house in Tumwater will be rehabilitated to bring it to a better standard. The house also requires some roof work. Eleven Homes First homes in Thurston County have solar panels. The intent is to add solar panels to the home as well. The home will be shared by eight men and solar panels will help reduce their costs while making the home more environmentally friendly. SOUTH SOUND Greg Laura, COO, South Sound Habitat for Humanity, presented the HABITAT FOR funding request for its Critical Home Repairs program. During the last HUMANITY funding round, the organization helped seniors and veterans with critical (CRITICAL HOME home repairs. The program was established in 2020. Last year, the REPAIRS): program completed 23 projects. This year, eight projects have been completed to date. The organizations received funds from Thurston County, City of Olympia, and the City of Lacey. Projects range in cost from $657 to over $45,000. The projects complete a range of repairs from new roofs, remediating mold, and rehabilitation of bathrooms and kitchens for ADA accessibility. The organization has recently formed a partnership with Lewis Mason Thurston County Area Agency on Aging to provide support to seniors for critical home repairs. Councilmember Swarthout inquired about the link between the organization and Rebuilding Together Thurston County. Mr. Laura advised that the two organizations work together on mutual referrals. The organizations receive funds at different times during the year. Some of the larger jobs were referred to the organization by Rebuilding Together because the agency lacked the funds. Programming is different between the organizations with much of the funds received by the organization having different requirements, such as seeking approval of a project prior to initiating work on the project. Rebuilding Together is able to move quickly with its volunteer team and is capable of working quickly on smaller projects, such as installation of grab bars. The average repair cost incurred by the organization is approximately $6,800 while Rebuilding Together repair costs are less for ramps and other small improvements. Both organizations serve the same population but provide services to meet different needs. Mr. Laura shared information on communications to the public to advertise the program. The relationship with the Area Agency on Aging will assist in identifying residents within the cities that could benefit from the program. The agency also performs critical home repairs on manufactured homes. The program has income requirements and applicants must own their home. The program also receives funds for veterans. The funds are combined with other sources of funds to include funding from the City to complete projects for veterans. SOUTH PUGET Mr. Laura reported the funding request is for $560,000 for down payment SOUND HABITAT assistance for Phase 1 of 14 Tâlícn Townhomes. Other funds are FOR HUMANITY available to construct the homes; however, there is a significant gap TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 3 (TÂLÍCN between the cost of construction, appraised value of the homes, and TOWNHOMES BUY affordability of mortgages by the clients. The funds would provide down DOWN): payment assistance to close the gap for the purchase of 14 homes. The down payment assistance would be $40,000 for each home. The funding enables the organization to use other funding capital to construct the homes quickly. Councilmember Swarthout asked whether the project could meet the timeframe required for expending the funds. Mr. Laura responded that some timelines for the funds are extendable. Currently, Phase 1 of 14 homes includes four homes that have been framed with roofs scheduled for installation. Following final plat approval, the remaining 10 homes will be completed in Phase 1. The first four homes should have a closing date by September/October 2024 with the remaining homes staggered every three months. All funds should be spent by January/February 2025. Councilmember Agabi inquired as to whether the organization would not approve requests for home repairs if the funding amount was less than the funding request. Mr. Laura explained that the organization’s critical home repair program is dependent upon funding. If funds were not available, applicants would be placed on a waiting list. CATHOLIC Erin York, Director of Operations, Catholic Community Services, COMMUNITY reported the organization provides services throughout Western SERVICES (THE Washington to the most vulnerable people in communities by providing COMMUNITY emergency shelters, permanent supportive housing, substance abuse KITCHEN): treatment, and meal programs. The funding request is for the Community Kitchen, a low-barrier, easy to access meal program located in downtown Olympia. It is one of the largest meal programs in the area. During 2022/2023, the kitchen served 110,639 meals to go. Meals are provided to anyone who needs a meal from Monday through Saturday for both lunch and dinner. Staffing includes 2.5 FTEs with support from volunteers. The South Sound Foursquare Church in Tumwater provides volunteers for dinner service on the fourth Tuesday of each month. The low barrier program is easy to access. The only data point tracked is where individuals report they slept the night before. The information is used to forecast how many people will be served from Tumwater. The cost of a meal is $2.65. The funding request is for $3,169.40 to support efforts to serve people who live in Tumwater. Ms. York and the committee discussed how the COVID pandemic affected meal service requiring the organization to serve to-go meals. Additionally, the facility lacks restroom access for people. For those reasons, the program continues to offer only meals to-go at this time as conversations continue on resuming congregate-style meals. However, the staffing structure poses additional challenges. The kitchen area is also TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 4 used as a staging area to prepare meals delivered to other programs in the area. BOYS AND GIRLS Felicia Maae, Area Director, and Shellica Trevino, Chief Operating CLUBS OF Officer, presented the funding request. The request is for support of club THURSTON members who are low to moderate income qualified (LMI). The COUNTY scholarships are a significant part of the organization’s mission to ensure (TUMWATER BOYS children and teens have access to programs in a low barrier process. The & GIRLS CLUB fees are nominal for all youths; however low or moderate-income SCHOLARSHIPS households often have trouble in paying the fees. The organization offers FOR LMI YOUTH): 100% scholarships for families who are unhoused as well as to families who are at the lower end of the income guideline. The application will support 70 youths at the Tumwater club or 27% of the total membership in Tumwater. Thirty-eight percent of youths in Tumwater qualify for a scholarship and receive scholarships on an annual basis. The Tumwater School District serves approximately 34% of students who qualify for the free and reduced lunch program. Youths living outside the LMI category also have access to many enrichment activities. Ms. Trevino shared information about a parent who was struggling with paying the monthly fee of $30. After a review of the scholarship application, the organization approved the parent for a full scholarship for her daughter. By extending a 100% scholarship, it often prevents some families from losing housing. Councilmember Agabi spoke highly of the program and the activities offered at the club. His children participated in the club when they were younger. Ms. Maae reported the organization relies on fundraising for 75% of its operational budget. Funding for scholarships is important to ensure those youths with the most need are able to participate or receive mentoring. The club increased by 450 youths last year with growth anticipated to continue. Councilmember Agabi asked about transportation options for youths from schools to the club. Ms. Maae said transportation in Tumwater through the school district has not fully recovered since the pandemic, with fewer seats on buses. The club is reliant on the school district because of its location. The club continues to work with the school district to serve youths. Transportation is provided from all elementary schools in Tumwater. FAMILY Shelly Willis and Karin Oceguera, Family Education and Support EDUCATION AND Services, presented the proposal for funding to sustain a Peer Recovery SUPPORT SERVICES Specialist position located in Tumwater at the Family Resource Center. TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 5 (PEER RECOVERY The program offers peer recovery support for low, moderate, or no SPECIALIST): income parents impacted by substance abuse/mental health challenges. The program has had a substantial impact on the vulnerable population by providing a peer recovery specialist to case manage those who are struggling. The program works closely with local police departments. Often, retailers contact the organization about assisting homeless families. In those instances, the peer recovery specialist is sent to assist them in contacting different service providers. The program provides the service within the region with a goal to stabilize and ensure parents who have needs are in the best place possible to raise children. The funding request would serve 50 families in the next year. The successful program was initially funded under the Treatment Sales Tax initiative for several years. Funding priorities have since shifted. Peers are employed by the agency. Peers have experienced the dependency process and the removal of their children and were able to reunify and have participated in intense training before serving as a Peer Recovery Specialist. The peers meet with parents at Family Court who are entering into a dependency and help them navigate out of the system. Peers have lived experiences and understand living on the street and the constant changing landscape. Last year, legislation (1227) shifted how families enter the system. Fallout from the legislation is far more voluntary placements than dependency, which for families means less wraparound support. As a result, the organization’s peer counselors are encountering much more need because the families are not receiving the same support they would have traditionally received from Washington State Department of Children, Youth & Families (DCYF). SENIOR SERVICES Brian Windrope, Executive Director, and Rebecca Hutchinson, Program FOR SOUTH SOUND Manager, presented information on the Home Share Program. As a senior (HOME SHARE serving organization, there are concerns surrounding their inability to PROGRAM): change their respective living situations. Most have worked all their lives and have reached retirement age. Most seniors are not able to seek employment when rents increase in mobile home parks, which are considered some of the most affordable housing available in the community. The Home Share Program offers one solution, as well as addressing isolation and loneliness of seniors and subsequent health impacts. All clients (tenants) in the Home Share Program are vetted through a Washington State background check, sex offender registry, and a requirement for three personal references. The program ensures that the participants are connected and compatible to prevent conflicts before they occur through a lengthy interview process with both parties of at least an hour with each individual to discuss their life, personality, lifestyle choices, and the kinds of people they like. Both parties are encouraged to spend time getting to know each other and confirming whether they are compatible through conversation compatibility guides. Both participants TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 6 receive the compatibility documents to work through together. The intent is to ensure compatibility before entering into a living arrangement. The program creates and helps people maintain housing. Providers in the program are in need of assistance in order to continue living in the home independently and safely. The program is a good way to support people while also creating safe and affordable housing for others who need housing. The average home share arrangement is approximately $500 a month, which is one of the most affordable options for housing in the community. Ms. Hutchinson shared information on some successful Home Share matches. Mr. Windrope reported the program was launched in 2021/2022. He added that it is important that the program is not a “Craig’s List” online forum. The program is administered by Ms. Hutchinson through an intensive matchmaking process. The program offers an option for the community with the organization maintaining a long list of individuals seeking housing and a list of providers. REBUILDING Cathy Johnson reported the application is for $75,000 for funding of TOGETHER projects. The funds would enable more assistance to individuals in the THURSTON City of Tumwater for ADA modifications, roof repairs/replacements, and COUNTY (RTTC): replacing water damaged floors. The main need last year was repairing water-damaged floors and plumbing. Over $40,000 was spent last year on plumbing repairs throughout the county. Another need is safe and healthy homes (wheelchair ramps and grab bars). The organization has begun modifying bathtubs by converting them to a walk-in unit. Approximately 80% of all repairs are completed by volunteers with skilled contractors providing discounts for larger repairs for electrical and plumbing. Funds from the City would be a life changer for many residents. Councilmember Althauser referred to a recent local TV feature story about a recent project, which referenced donation of materials to assist in completing the project. He asked how the organization leverages or utilizes economies of scale when funds are awarded. Ms. Johnson said the project was completed in coordination with Home Depot. Home Depot provided approximately $15,000 in gift cards to complete the project, as well as contributing more products with the organization providing skilled labor and project management. Overall, the organization has credit accounts with Bayview Lumber, which provides discounts, as well as with Lowe’s. Most suppliers provide the organization discounts ranging from 5% to 15%. As volunteers complete most of the work, very little is spent on labor to complete projects. TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 7 THURSTON Judy Jones, Senior Director of Operations, Rebekah Graham, Satellite COUNTY FOOD Program Coordinator, and Amanda Munoz, Development Director BANK (TCFB HOME presented the funding request. DELIVERY AND OTHER BANK): Ms. Jones reported the Food Bank has been in operation and has partnered with the City of Tumwater for 52 years. In 2023, the Food Bank served 60,000 individuals in some capacity. Approximately 21% are seniors living throughout Thurston County. The funding proposal is for seniors who live on fixed incomes or limited incomes who are struggling to manage daily life. Housing, food, and utilities continue to increase in cost with the Food Bank experiencing a steady increase of 8% to 10% of new clients each month. The Food Bank continually seeks additional resources to meet the increase of growing needs in the community. The focus is eliminating hunger through a strategy of neighbor helping neighbor by working with community partners and volunteers. Ms. Graham reported Food Bank client services are based out of the Lacey and downtown Olympia food pantries. The City of Tumwater currently has a satellite site. Client services staff are able to track client demographics and the needs of clients for various services and referrals to other social services. Staff engages with clients to ascertain needs. The Food Bank offers the Other Bank, a service providing toiletries and other items not covered by EBT funding, Medicaid, or other resources. Other Bank products are only offered at the Lacey and downtown Olympia food pantries based on staffing and facility capacity. The Food Bank sponsors approximately 17 satellites throughout Thurston County. The Other Bank is a critical program. Client services enroll individuals in the Federal Commodity Supplemental Food Program (CSFP) to receive a 40-pound box of dry goods. The program is for seniors (60 years or older) who self-declare themselves as low-income. Seniors signed up for the program can opt to pick up products via the food pantries, at satellite sites, or by home delivery. With the advent of the COVID pandemic, home delivery service was offered to seniors. Volunteers deliver approximately 350 home deliveries each month. Approximately 100 of those clients are Tumwater self-declared low-income seniors. Most of those seniors encounter transportation barriers, which speaks to the importance of adding Other Bank products (toilet paper, shampoo, soap, razors, deodorant, dishwashing soap, and other items not covered by other funding programs). Ms. Munoz spoke to sustaining the program beyond the initial funding period. The Food Bank developed a comprehensive funding strategy to continue the service beyond the first year through funding resources and partnerships in the community. The Food Bank’s three primary funding streams are federal, state, and individual donors and foundations. If the program is launched, the Food Bank is committed to matching the funds TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 8 to distribute Other Bank boxes to all seniors who receive home delivery in Thurston County. The Food Bank is working with Tumwater partners from five satellite locations with a goal of expanding the number of satellite locations. The current satellites serve approximately 250 to 350 people. Councilmember Swarthout asked whether food items from satellite pantries would be included for home delivery. Ms. Munoz said the funding request includes two components. The first is to add Other Bank items to existing home delivery boxes and expanding the program, and the second is adding another satellite in Tumwater to serve additional residents. TOGETHER! Sierra Abrams, Co-Executive Director, reported she has been with (TUMWATER TOGETHER for approximately four years and served previously as the COMMUNITY Community Schools Director. TOGETHER provides three main SCHOOLS): programs with two operating in the City of Tumwater of Community Schools and Host Homes (new) serving homeless youth in Tumwater. Community Schools offers basic case management services through a hub site in local schools to provide clothes, hygiene, food, and case management on site for referrals. In the last 10 years, the organization has expanded and formed a strong partnership with the City offering client assistance funding for homeless families and youth. Since then, TOGETHER has added other partners that provide client assistance funding, as well as community donors. Community Schools relies on the structure of the school district, local government, and a non-profit. Cascadia High School is new to the program with full-time staff assigned to the school. The alternative high school student body includes many homeless or unaccompanied youth creating impacts to case management representing an increase of 45 families than last year. Funding provides services at Cascadia High School for low-income homeless, families, and individuals. TOGETHER also provides support to New Market High School serving 18 to 21-year old youths who are completing high school. CDBG funding will enable programming to continue for homeless families and students in Tumwater. The organization has reached a critical point of continuing to expand to all schools in Tumwater to ensure all schools are covered by the program. COMMITTEE Manager Medrud thanked all agency representatives for attending and DISCUSSION: presenting their respective funding requests. The request to the committee is to forward a recommendation for the allocation of funding for capital projects and service provider projects to the City Council for consideration. The exact amount of federal CDBG funds available for TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 9 allocation by the City in 2024 is still being determined. Each application was evaluated on three criteria: • The conceptual soundness of the project; • The financial feasibility of the project; and • The applicant’s demonstrated ability to implement the project and comply with CDBG program regulations. Staff recommends accepting all applications. Manager Medrud outlined options for considering funding awards. The committee discussed the potential of an applicant unable to complete projects because of a smaller award. Manager Medrud said that based on the information within the applications, most projects would be scalable. The committee reviewed a spreadsheet summarizing each proposal and requested funding amount, and discussed the discrepancy in figures for Homes First. The narrative included an amount of $244,530 while the requested funding amount was $375,000. Following discussion and clarification of the discrepancy, the committee recommended the following funding awards for Housing Capital Projects to the City Council for consideration: Homes First Major Rehab Low $245,000.00 Income Clean & Sober Housing Rebuilding Together Critical Home Rehab $75,000.00 Thurston County Program South Puget Sound Critical Home $45,000.00 Habitat for Humanity Repairs South Puget Sound Tâlícn Townhomes *$415,000.00 Habitat for Humanity Buy Down *The committee supported a contingency of either increasing or decreasing the funding award to South Puget Sound Habitat for Humanity for its Tâlícn Townhomes Buy Down project based on final CDBG funding. If the first three projects (Homes First, Rebuilding Together Thurston County, and South Puget Sound Habitat for Humanity) do not fully utilize their respective grant amount, those funds would be awarded to the Tâlícn Townhomes Buy Down project. The committee reviewed funding requests for Public Service Projects. Manager Medrud noted that the total amount of funding exceeds the TUMWATER BUDGET & FINANCE COMMITTEE MINUTES OF VIRTUAL MEETING April 23, 2024 Page 10 amount of CDBG funds available to award. Members discussed approaches for funding recommendations and supported forwarding the following funding amounts for Public Services Projects to the City Council for consideration: Boys and Girls Clubs Scholarships for LMI $40,000.00 of Thurston County Youth Tumwater Boys & Girls Club Catholic Community The Community $3,200.00 Services Kitchen Family Education Peer Recovery 31,800.00 and Support Services Specialist Senior Services for Home Share Program $15,000.00 South Sound Thurston County TCFB Home *$30,000.00 Food Bank Delivery and Other Bank TOGETHER! Tumwater *$60,000.00 Community Schools * Members recommended a contingency of increasing funding to TOGETHER if the CDBG award is more or decreasing the amount to Thurston County Food Bank if the CDBG funding amount is less. ADJOURNMENT: With there being no further business, Mayor Sullivan adjourned the meeting at 12:22 p.m. Prepared by Valerie L. Gow, Recording Secretary/President Puget Sound Meeting Services, psmsoly@earthlink.net