CCMIN011513 - Laserfiche WebLink

relief, and they have approached all participating cities to help get them back on their feet. Mr. Fialho noted the because of their geographic location, the cities of San Ramon and Danville have not historically received the same level of benefit as Dublin, Livermore and Pleasanton and are therefore not positioned to see the value in making such an accommodation. TVHOC has submitted a three-pronged funding request, the first of which is a $155,000 loan to bring them current in meeting financial obligations, including payment of a seller's note, contractors' fees association with building improvements, property taxes, and fees for the preparation of financial audits. The loan would be equally split by the three agencies. TVHOC has also requested a $100,000 pledge to assist with a buy down of their debt and a $270,000 grant to be paid over two years, again shared equally by the three agencies. At this stage in the request, the City Managers of each participating city are recommending only to fund the first leg of the request. If approved, the Council would be authorizing a loan of approximately $51,500 from the City's Lower Income Housing Reserve, which has approximately $8 million in unreserved funds. The loan would be unsecured with either a payback period that has yet to be determined and is supported by the three cities or would be forgiven through some sort of service offering in the arena of affordable housing. Key features of the loan agreement are as follows: • Provides that the City Managers of the three cities be added to the TVHOC Board of Directors to assure overall oversight of TVHOC activities; • Provides for the cities to monitor programs to ensure that services are core to the mission of the TVHOC and are prioritized; • Allows the cities to monitor TVHOC financial resources and other matters, including audits, to assure appropriate financial planning and accounting; • Provides parameters for determining the loan repayment plan, including recognition that repayment is linked to cash flow and therefore may need to be forgiven or offered in another format; • Requires TVHOC to provide financial reporting detailing that the loan was used for the intended purpose of meeting specific outstanding financial obligations The cities of Livermore and Dublin have already approved the attached agreement, which will be amended to include Pleasanton if approved by the Council. Councilmember Pentin asked if this would affect the use of the Lower Income Housing Reserve for Kottinger Place down the road. Mr. Fialho said no, reminding him that the $8 million is unencumbered and that $4 million of the $7 million pledge for the project has already been allocated. Councilmember Brown asked that the loan total be updated throughout the agreement to reflect Pleasanton's contribution. Mayor Thorne acknowledged that TVHOC is much more cost effective than for each Tri-Valley city to provide the same kind of support but asked Mr. Fialho's candid opinion of whether it could be a sustainable organization. Mr. Fialho said he would not be making the recommendation if he did not believe TVHOC could be fiscally sustainable. He said the real anchor at their feet is the debt related to properties purchased with good intentions that are no longer in the best interests of the organization. By shedding some of that debt and focusing on the priorities and missions of TVHOC, he felt the organization could be sustainable with minimal city support. He did note that Pleasanton does and will continue to provide support because there are many efficiencies associated with pooling resources in this manner. City Council Minutes Page 10 of 13 January 15, 2013