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HomeMy WebLinkAbout2003-03-11 HEDC Minutes City of Fort Worth City Council Economic and Community Development Committee Highlights of the Meeting Held March 11, 2003 Committee Members Present: Jeff Wentworth, Wendy Davis, Frank Moss, Clyde Picht City Staff Present: Chris Anderson, Jacqueline Bender, Vanessa Ruiz Boling, Mike Brennan, Dana Burghdoff, Teresa Carreon, Bette Chapman, John Cox, Charles Cumby, Bea Cura, Hugh Davis, Sundra Davis, Deidra Emerson, Sarah Fullenwider, Bridgette Garrett, Al Godwin, Ossana Hermosillo, Tom Higgins, Phyllis Johnson, Kathy Livingston, Chun-I Lu, Penny McCook, Karen Meunier, Elizee Michel, Joe Paniagua, Galen Price, Reid Rector, Bob Riley, Gene Rollins, Gail Scott, Robert Sturns, Marisol Trevizo, Peter Vaky, Jerome Walker, Ardina Washington Call to Order: Chairman Jeff Wentworth called the meeting to order at 1:09 p.m. Approval of Minutes from the Meeting held on February 11, 2003: Committee Member Clyde Picht moved to approve the minutes. Committee Member Wendy Davis seconded the motion, which carried. Discussion and Consideration of Revising the Minority and Women Business Enterprises Ordinance: Sundra Davis, MWBE Office Director, made the presentation (attached). She said that the purpose of the presentation was to advise the Committee of the results of two and a half years of deliberations with the 13- member City Council-appointed Minority and Women Business Enterprise Advisory Committee (MWBEAC). After presenting a brief history of the MWBEAC and of the MWBE ordinance, Ms. Davis listed suggestions for Am Wending the current ordinance. These include the City's ceasing to perform certifications and continuing to accept certification from the North Central Texas Regional Certification Agency (NCTRCA) and Texas Department of Transportation (TXDOT); requiring prime contractors to report all tiers of MWBE subcontracts; not allowing nepotism; and committing to pay invoices within ten days after they are received. Council Member Davis asked Ms. Sundra Davis to supply the Council with the certification requirements of NCTRCA and TXDOT. Mr. Wentworth and Committee Member Frank Moss asked for an explanation concerning the tiers. Ms. Davis explained that a first-tier subcontractor received a check directly from the prime contractor, while a second-tier subcontractor was one who received a check from a first-tier subcontractor, etc. She added that on a combined project, usually MWBE second- and third-tier subcontractors have bid to the first-tier subcontractor, who must then include the MWBE participation when he presents his bid to the prime contractor. Ms. Davis then presented a timetable for moving the recommended changes to the MWBE ordinance forward to the City Council. Mr. Picht asked why the study findings needed to be presented in Executive Session, according to the timetable. Ms. Davis explained that this was necessary because of certain legal requirements. The Committee approved the recommendation to go forward to Council according to the timetable that was resented. Page I of 7 Discussion and Consideration of the Federal Entitlement Grant Program: Deidra Emerson, Contract Compliance Supervisor, made the presentation (attached). She asked the Committee to review and consider the proposed Consolidated Plan goals and the proposed funding recommendations, and if approved, to forward them to the full Council. Ms. Emerson then presented a brief review of the Consolidated Ian and its goals and the Annual Action Plan and Funding Allocation for 2003-2004. Mr. Moss asked about the $600,000 allocated for Model Blocks, since $1.2 million was budgeted for this per year. Ms. Emerson explained that $600,000 of HOME funds was also allocated for Model Blocks. Ms. Emerson then emphasized the Emergency Repair (ER) component of the CDBG budget, since there was a request by the Committee at the last meeting to increase the ER fund. After referring to the request of ACORN, which was presented at the last meeting, to increase the ER fund from the $300,000 that had been allocated to $500,000, Ms. Emerson presented two alternatives that might be used to close the $200,000 funding gap: (1) using $150,000 of unprogrammed funds plus $50,000 that would be taken from other CDBG budget items; or (2) using $150,000 of unprogrammed funds and reducing the Parks and Community Services (PACS) Department request by $50,000. Ms. Emerson added that there might also be an option out of the Housing Department to close the funding gap. Mr. Picht asked for clarification concerning ACORN's request. Ms. Emerson said that ACORN's request was to increase the ER fund to $1,000,000, but staff is recommending an increase to $500,000. Housing Department Director Jerome Walker explained that at the last meeting, the Committee asked staff to consider options that might be available to increase funding from $300,000 to $500,000. Mr. Picht asked if this also included ACORN's request to increase eligibility. Mr. Walker said that it did not. Mr. Moss said that there was a general concern in the community that more funds be made available for ER, and that ACORN was just one group that had formally come forward with a request. Ws. Emerson asked if there was a recommendation from the Committee concerning the alternatives she had presented. Mr. Wentworth said that he was uncomfortable increasing the ER amount until he more fully understood the breakdown of expenditures of CDBG funds. Ms. Emerson referred to the proposed CDBG budget detail that had been distributed (attached) for more information on the CDBG budget items. Mr. Wentworth asked about the $258,000 that was budgeted for Highcrest Addition Sidewalks and why that area got precedence over others. Mr. Walker explained that this was the result of a Council Proposal produced by Council Member Becky Haskin that allowed for the waiver of development fees associated with housing development in the neighborhood, in return for the developer building stick-built housing as opposed to pre- fabricated or manufactured housing and building sidewalks in the area. Mr. Walker added that the CDBG funding of$258,000 would provide for sidewalks in the other parts of the neighborhood where none currently existed in order to avoid a checkerboard effect. Mr. Wentworth said that there were many other neighborhoods that needed sidewalks, and while he remembered the Committee agreeing to the fee waiver, he did not recall authorizing the expenditure of these funds for sidewalks. Ms. Davis and Mr. Picht concurred. Mr. Moss asked if the new home construction in the aforementioned Council Proposal was still moving forward. Mr. Walker said that it was. Ms. Davis said that she felt that if CDBG funds were going to be allocated for sidewalks, the funds should be distributed based on an objective review and fair allocation process. Mr. Wentworth then asked about the funding for Harmon Park and Gateway Park, and said that while he understood that council members sometimes made requests, there should be an objective criteria for accessing Oese funds and that council members ought to be given equal opportunity to make their case for a particular project. Assistant City Manager Joe Paniagua explained that the funding for these parks was a PACS Department recommendation, and not a council member request. Mr. Wentworth asked why this funding would Page 2 of 7 not come out of the PACS Department budget. Mr. Paniagua said that addressing the funding needs of parks was a patchwork effort, with funding coming from a variety of sources. Ms. Davis said she did not disagree with that strategy, as long as there was some system in place to consider other parks and council districts as years go forward so that the funds are fairly disbursed. She added that she agreed that council members should Got dictate where these funds should go. Mr. Moss emphasized that it is also necessary to see whether these funds are really meeting the needs of low-to- moderate income people within the community. Mr. Picht said that he felt that the ER fund should have a higher priority than some of the other budgeted items. Ms. Emerson asked what was the desire of the Committee concerning the $258,000 allocated for the Highcrest Addition Sidewalks. The Committee agreed that the $258,000 should be zeroed out of the CDBG budget, and that $200,000 of those funds should be put in the ER fund, while the remaining $58,000 should go into unprogrammed funds. Ms. Emerson then explained the Public Services section of the proposed CDBG budget detail. She said there had been a 10% reduction of all these programs except for child-care programs and seniors programs. Ms. Davis asked if there had been any objective review of the services being provided. Ms. Emerson said that contract compliance specialists in her department reviewed the work of these agencies and helped them work through any issues that might arise. The Committee then reviewed the Economic Development component of the budget detail. Ms. Emerson pointed out that the three job search and placement agencies under item B in the budget detail had also received at least a 10% reduction in funding from the previous year. Mr. Wentworth asked if these agencies had been informed that they were susceptible to the 10%reduction in funding. Ms. Emerson said that they had been. OAr. Paniagua asked Ms. Emerson to explain the reduction of the funding of Fort Worth SER, since it was reduced more than 10%. Ms. Emerson explained that Fort Worth SER's funding was reduced by 20% because of management capacity at the agency. She said that since the agency was having trouble meeting its goals and objectives, the Community Development Council had recommended reducing its funding by 20%. Ms. Davis asked why the Commercial Corridors budget was decreased so significantly. Ms. Emerson explained that staff had asked that specific activities be recommended for funding and that funds be used in the current program year so that allocated funds would not sit unused over time, as had been the case in previous funding. Ms. Davis asked if the $800,000 allocated from the year before had been used. Ms. Emerson said that about $200,000 of that allocation remained. Ms. Davis said that because of the great need and because the Commercial Corridors are a priority of the Council, more effective communication with the Commercial Corridors Task Force is needed to ensure that there is an understanding that this funding resource exists. Mr. Paniagua explained that there was an option to pull more monies out of other program funds if the Committee desired. Ms. Davis said that perhaps this strategy could be considered if a specific project arose; however, she said that in future budget years, she would like to see a shift back into a philosophy of dedicating more funding to the Commercial Corridors. Mr. Wentworth asked why the allocated monies had not been spent. Tom Higgins, Economic and Community Development Director, explained that programs were in progress for these funds, but the funds have not yet been expended on the projects. Mr. Moss asked if the $200,000 balance still in the Commercial Corridors fund would be moved forward. Ms. merson said that it would. Page 3 of 7 Regarding the Emergency Shelter Grant program budget, Ms. Emerson explained that because there has been a $2,000 decrease in funding, staff was recommending eliminating funding for administration of the grant and covering these costs through CDBG in order to allow the programs to continue to receive their funding. Ms. Emerson added that a new program is included for supplemental homeless prevention for$15,000. *Mr. Picht asked for clarification on the homeless prevention program. Ms. Emerson said that this program would help prevent people from becoming homeless or going into a shelter situation. She added that these one- time assistance funds might help people with deposits so that they could move, or the funds could be used to help people transition out of homelessness. Ms. Emerson then reviewed the Housing Opportunities for Persons With AIDS (HOPWA) grant program budget. She explained that the HUD program, which directly targets individuals with AIDS, covers four counties: Johnson, Parker, Hood and Tarrant. She added that the program assists HIV-positive individuals in maintaining their housing or in receiving case management or counseling services, and that the City's allocation continues to increase because there is an increase in AIDS cases in the area. The Committee agreed that the recommendations should go forward to the full Council. Mr. Wentworth asked Ms. Emerson to inform Council Member Becky Haskin regarding the previously discussed change in the funding for HighCrest Addition Sidewalks. Discussion and Consideration of an Agreement with the North Central Texas Council of Governments for Participation in the Metroplex Electrical Licensing Agency: Development Director Bob Riley made the presentation (attached). He reminded the Committee that on June 11, 2002, he had briefed them on the North Central Texas Council of Government's (NCTCOG) program to license North Texas electrical professionals through one location. Mr. Riley then explained both the benefits and impact of the program. He said that among other benefits, the program would unify licensing requirements ecross the region and provide a centralized database of licensed electricians. Mr. Riley further explained that the lectrical industry has agreed to cities adjusting permit fees to cover lost revenue, which in Fort Worth would equal about $120,000 annually, and that any lost license revenue would be included in the planned fee and rate adjustments recommendations to City Council as part of the overall evaluation of rate structure. After Mr. Riley asked that the Committee recommend to the full Council that the City Manager enter into an "Interlocal Cooperation Contract" to participate in the Metroplex Electrical Licensing Agency, he explained that although the NCTCOG program is scheduled to begin on July 1, 2003, the City will not begin using the service until after the existing City licenses expire on December 31, 2003. He added that the City will send out notifications this year to allow time for a transition period and for database preparation. Mr. Moss asked if the Development Department currently had a full-time staff that handled the electrical licensing and if any savings in staffing would be realized from this change. Mr. Riley explained that currently there was a major crunch in the workload of customer service representatives for about a three-month period beginning in October when renewal notifications are sent out. He added that the time spent on this detracts from other customer service activities. Mr. Picht asked why NCTCOG would not take over the notification process this year. Mr. Riley said that since the City had traditionally sent notifications for many years, he felt it was more customer friendly to notify people this year in an effort to help them transition into the new system. Mr. Picht asked staff to re-evaluate the sending of notices. Mr. Picht then asked why electrical licensing was not a state function. Mr. Riley said there had been bills OLduced in the state legislature to develop state electrical licensing, but none of these had passed as yet. He d that he felt the regional licensing was a good transition. Mr. Picht agreed with the regional licensing concept and said that the loss in revenue should be made up by corresponding cost reductions in the Development department. Page 4 of 7 Mr. Picht asked about the one remaining electrical license that Mr. Riley had said the City would continue to issue for ten dollars. City Building Official Al Godwin explained that based upon an apartment industry request, 0,e City had created a residential maintenance license and a test that went with it. He explained that this license affects apartment maintenance and property management people who maintain apartments, duplexes or residences. Mr. Picht asked if these people met the requirements of one of the other electrical licensing tests. Mr. Godwin said that they did not and that this license limits the type of work that can be done. The Committee agreed that the recommendations should go forward. Discussion and Consideration of the Reallocation of Community Development Block Grant (CDBG) Funds for the United Riverside Rebuilding Corporation: Housing Department Director Jerome Walker presented the request (attached) of the United Riverside Rebuilding Corporation (URRC) to reallocate $8,754.09 in CDBG funds from "Street Signs" and "Lot Acquisition" to "Economic Development" activities. Mr. Walker explained that the URRC would have twelve months to expend these funds, and he asked the Committee to recommend the reallocation to the full Council. Ms. Davis asked what the consequences would be if the URRC did not use the funds within twelve months. Mr. Walker said that the contract stated that the funds would revert back to the City. Ms. Davis asked if the URRC understood this. Mr. Walker said that they did. Mr. Moss moved to approve the recommendation. The motion was seconded by Ms. Davis and carried. Discussion and Consideration of Amendments to the Housing Assistance Program Guidelines: Housing Department Director Jerome Walker made the presentation (attached). He said that staff was seeking Whe Committee's approval of revisions to the Housing Assistance Program (HAP), and he presented both the eatures of the HAP program and the recommended changes, which include reducing the term of the deferred payment loan (DPL) to five years, eliminating the self-amortizing feature of the DPL and expanding "target areas" to include Neighborhood Empowerment Zones (NEZ). Mr. Walker then asked that the Committee recommend the proposed HAP revisions to the full Council. Mr. Picht asked what was required to be considered as a special target area. Mr. Walker said that Council action was required. As an example, he cited Polytechnic Heights Educational Corridor, and explained that about two years ago, staff came to the Committee and identified some development opportunities that included private sector partnerships in the area. As a result, he explained, the Council recognized the Polytechnic Heights neighborhood as a special target area. Mr. Walker added that similar situations had occurred with the Medical District and with the Samuels Avenue area, with which staff is now working. Ms. Davis asked when the policy on what constitutes a special target area had last been formulated. Mr. Walker said that he was not certain. Ms. Davis said that it might be worthwhile to bring the issue back before the Council for discussion, and she added that the Southside neighborhoods needed to be more adequately covered in this policy. As an example, she cited the Fairmount Neighborhood, in which there are historic homes that need to be preserved. She suggested that assisting first-time home buyers in purchasing these homes could provide a housing opportunity while stabilizing a historic asset, criteria which could fit into a special target area. Mr. Picht concurred with Ms. Davis' request to review the policy, saying there are neighborhoods that do not qualify for other programs that might fit within special target areas. It was requested that the information on special target areas that could benefit from HAP and other programs be brought before the Committee prior to 40 eing taken to the full Council. Mr. Wentworth asked if the money would be lost from the revolving loan account if the DPL was reduced to five years and then forgiven. Mr. Walker said that this was correct, since if the money were repaid, it would go Page 5 of 7 into the revolving loan account; however, he added that since most of the buyers remain in their homes, a large sum of money was not involved. Mr. Picht asked if those who qualified for this first-time home buyer assistance program also qualified for other rograms if they were to sell their house in year 6. Mr. Walker said that although there were a few exceptions, they usually did not qualify for other City programs. Mr. Picht moved to approve the recommendation and reiterated that he would like to have more information at a future meeting regarding the special target areas. The motion was seconded by Mr. Moss and carried. Discussion and Consideration of Awarding Community Housing Development Organization (CHDO) Support Fund to Ability Resources, Inc. for Predevelopment And Land Acquisition Activities for the Proposed Willow Bend Creek Apartments: Housing Department Director Jerome Walker presented the request (attached) from Ability Resources, Inc. (ARI) for a $102,000 loan from HOME-CHDO Program Funds to be used for predevelopment activities and land acquisition. He explained that the loan is subject to repayment at two percent interest, and ARI has committed to repay the City's loan within thirty days of release of a $695,000 HUD grant they are to receive. Mr. Walker then asked that the Committee recommend approval of the loan to the full Council. Ms. Davis asked if the development would be owned by a CHDO. Mr. Walker said that was correct. Ms. Davis then asked if a payment in lieu of taxes had been negotiated on the project. Mr. Walker said that such a payment had not been required on this project, and that it had been decided to discuss CHDO non-profit tax exemptions on a broader scale at a later time. Ms. Davis said that she felt this should be explored on a project-by-project basis. She reminded the Committee that this concern had arisen on a previous project, and she qualified her support of the loan with the understanding that some type of payment would be negotiated in lieu of taxes. Ms. Davis then asked for a clarification concerning the CHDOs, saying that it was her understanding that as long as ,moroperty is held by a CHDO, it is not on the tax rolls. Mr. Walker said that was correct. He then explained that ince this project has only eight apartment units, he doubted they would be able to make payments in lieu of taxes. He added that not having to pay taxes had made this an affordable development. Ms. Davis asked Mr. Walker to review the financial situation on the project to determine what was fair and reasonable and to bring that information forward as part of the recommendation when the item comes before the Council. Mr. Wentworth suggested that an alternative plan might be to assess property taxes from the point of sale if the property were sold to another owner. Ms. Davis moved to approve the recommendation, which was seconded by Mr. Moss and carried. Briefing on the Review and Update of the City's Development Standards: Development Director Bob Riley made the presentation (attached). He reviewed the establishment and mission of the Development Standards Task Force, listed its members, and explained its goals and proposed guiding principles. Mr. Riley then discussed the proposed priority issues of the Task Force and reviewed the committees that have been established to address these issues. Finally, Mr. Riley presented a proposed timeline for the continuing work of the Task Force and for presenting its findings to the City Council. He then asked the Committee for its guidance on whether the Task Force should present its proposed guiding principles and priority issues to the City Council at the March 18 pre-Council meeting. Ms. Davis commended Mr. Riley, the staff and the Task Force members for their work. Mr. Picht said that rural drainage standards needed to be addressed, and he suggested that the Task Force Astablish drainage criteria for rural development. Ms. Davis said that she thought this was already being dressed by the Transportation and Public Works Department (T/PW). Mr. Riley said that was correct and that the Subdivision and Street Development Standards Committee of the Task Force was also working on this Page 6 of 7 issue. He added that NCTCOG was considering regional drainage standards that would also assist in solving rural drainage problems. Mr. Wentworth asked if drainage issues were automatically a part of the plan review and permit process for developments that were within the City. Mr. Riley explained that when developers come in for a plat of a ertain size, they are required to have a drainage table, but there is not currently a block-by-block review of the drainage plan. Mr. Wentworth said that he agreed with Mr. Picht's concerns and that the entire drainage issue needed to be reviewed since there had been cases in which drainage problems arose after a developer had finished a project. Mr. Riley said that this issue would be added to the drainage component of the Task Force's review. Ms. Davis said that it would be helpful to have T/PW update the Committee on this matter. The Committee agreed to move forward with the recommendation. Executive Session: The Economic & Community Development Committee conducted a closed meeting to seek the advice of its attorneys concerning legal issues regarding any current agenda items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by section 551.071 of the Texas Government Code. Requests for Future Agenda Items: Mr. Picht said that he would like to hear a briefing from Housing on group homes and the laws governing them. Mr. Moss agreed and added that he would like to hear information on the subsidizing of group homes. Adjourn: The meeting adjourned at 3:10 p.m. The next meeting is April 8, 2003. 4 Page 7 of 7