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Mr. Bocian referred the staff report, which provides information regarding the potential consideration of a merger of the Human Services and Housing Commissions. The consideration stems from a somewhat cumbersome issue where many applicants have had to go before both commissions and a significant overlap in the issues facing each. The Housing Commission was formed with the sole focus to work on new housing but has morphed into dealing with a broader scope of issues. Staff believes there is potential to merge the two commissions, thereby providing better service to applicants and those in need. Staff has not discussed the matter with either commission and is requesting feedback from the Council. Councilmember Thorne confirmed with Mr. Erickson that the recent reductions in federal funding for some of these grants are reflected in the proposed allocations. Mr. Erickson explained that the cuts primarily affect the CDBG component of the HHSG grant. Staff initially assumed a 10% reduction over last year, though recent reports seem to have settled on 16%. He referred to the contingency identified in the staff report, which outlines the Human Services Commission's recommendation to hold aside roughly $25,000 of CDBG funding for a regional food storage project. This reserve would essentially absorb any cut in excess of the anticipated 10%. In addition, the staff recommendation stipulates that proposed allocations may be adjusted on a pro rata basis once final funding numbers are in. Councilmember Thorne commended the Human Services Commission for streamlining their process. Vice-Mayor Cook-Kallio opened the public hearing. There were no public comments, and the public hearing was closed. Councilmember Sullivan confirmed with Mr. Erickson that staff does not believe federal CDBG funding would be cut the rumored 62%. Mr. Erickson noted that if there are significant changes to the final allocation, staff would return to the Commissions and Council with a new proposal. He also noted that the commitment of funding comes with the final contracts, which are not enacted until staff receives final numbers. Councilmember Sullivan requested an update on the human services needs assessment. City Manager Fialho stated the assessment is an identified Council priority. Staff has secured the services of consultants who are coordinating outreach and the collection of material region-wide in order to get at the issue of what the need is. Community Services Manager Yurchak stated that the consultants have conducted key informant interviews with stakeholders and community leaders and are currently embarking on the focus group process. She anticipated completion of the report towards the end of 2011. Councilmember Sullivan asked staff's opinion on the revamped process. Mr. Erickson said staff believes the process to be more streamlined and efficient. Staff received very good feedback from the participating agencies, as reflected in the survey included in the staff report. Several agencies complimented him on what they felt was a transparent and inclusionary process. Councilmember Sullivan stated that as a proponent of public participation via committees and commissions, the collapse of those that currently exist make him uncomfortable. He cautioned that completion of the Housing Element would result in a significant increase in high-density zoning, which would likely raise any number of issues on which the Housing Commission would prove very helpful. City Council Minutes Page 5 of 12 April 19, 2011