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allocation over the next five years,would be guaranteed by Pleasanton as the lead agency and paid off over a proposed maximum 30 year repayment term. The responsibility for repaying the loan would be divided among the agencies of Dublin, Livermore, Pleasanton and Alameda County through a Public Participation Jurisdiction (PPJ) agreement, very similar to the process used to acquire Tri-Valley Haven's Sojourner House back in 2002. Pleasanton's total obligation would equal approximately $338,000, which would over the next 20 years total considerably less than the annual allocation of $100,000 made to Axis each year. The other jurisdictions involved have indicated a favorable disposition at both the staff and City Manager levels. Staff is now recommending that the Council authorize the city to submit the application to HUD and subsequently enter into the PPJ with the other related agencies. Mayor Thome asked if this would have to be claimed as construction debt. Mr. Bocian said "no," as it is technically a CDBG project. Mayor Thorne noted that Congress has been notably conservative with CDBG funds lately and asked what the impact would be if no federal funds were made available in the future. Mr: Fialho said the city would be obligated to find another source to pay off the loan. Mr. Bocian added that all agencies participating in the PPJ would be obligated, though Pleasanton would technically be the lead agency. Councilmember Narum asked and staff confirmed that as the lead agency, Pleasanton would be responsible for repayment of the loan even if the other agencies were to choose not to make good on their obligation. Mr. Erickson noted that the Sojourner House is a successful example of a PPJ. Mr. Bocian assured the.Council that staff will work with legal counsel to ensure the actual agreement is clearwith respects to each party's obligations. Councilmember Brown asked and Mr. Erickson confirmed that Axis is aware that, as a member of Hacienda Business Park, the Wheels Bus services is available free of charge to their employees and the site would be readily accessible for the service's users. Mr. Erickson said this was actually one of the key criteria that went into selection of the site. Councilmember Brown asked whether any Lower Income Housing Funds would be used by the project. Mr Erickson said the project is note housing project and therefore not eligible to use those funds. Councilmember Brown asked whether there was any agreement with Axis that would give preference to the city, if Axis were to vacate its current location in the downtown which is very desirable. Mr. Fialho said staff has had discussions around this and, while Adis plans to continue to operate that facility in the short term and perhaps leverage it in the long term, they have asked that the city be approached first about any opportunities at that site. Mayor Thorne opened the public hearing. Sue Compton, Axis Community Health, said the organization is simply bursting at the seams: She explained that while they had originally planned to sell the downtown property, the impacts of the Affordable Care Act have made the last three months the busiest ever in the history of the organization. Based on the current market demographics, Axis would need a total of 50 exam rooms to meet the current needs of the Td-Valley. The new site, which was originally intended to replace the existing City CouncilMinuters Page 19 of 20 May 6,2014