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Councilmember Brown asked and staff confirmed that the program is available to any age group, provided they meet the income requirements. Councilmember Brown noted that he served on the Human Services Commission for several years and acknowledged that thought and care that go into the funding allocations. He also said he has been impressed with the feedback he's received about City Serve and asked why they were denied funding. Mr. Erickson explained that the primary concern of the Human Services Commission, which they shared with City Serve, was that they felt there was an opportunity for City Serve to be more inclusive in its service population. He said the Commission did not necessarily wish to rule them out but did encourage them to increase their outreach and collaborations and then reapply next year. Mayor Thorne opened the public hearing. There being no one wishing to speak he closed the public hearing. MOTION: It was m/s by Cook-Kallio/Brown to waived full reading and adopt Resolution No. 144771 approving the allocation of Housing and Human Services Grant (HHSG) and Community Grant Program Funds for the Fiscal Year 2014 Grant Funding Cycle (FY 2014-15) and to approve the Annual Action Plan (FY 2014-15) for the use of Federal Community Development Block Grant (CDBG) Funds. Motion passed by the following vote: Ayes: Councilmembers Brown, Cook-Kallio, Narum, Mayor Thome Noes: None Absent: Councilmember Pentin 22. Public Hearing: Approve the submission of a $1.25 million Section 108 Loan Guarantee application to the U.S. Department of Housing and Urban Development (HUD) to provide financial assistance to the Axis Community Clinic expansion project and authorize the City to enter into a Public Participating Jurisdictions (PPJ) agreement with the cities of Livermore and Dublin and the County of Alameda to repay the loan Mr. Erickson presented the staff report, which relates to predevelopment on a new Axis Community Health facility located within Hacienda Business Park at 5925 West Las Positas Boulevard. He provided background information on Axis, which has been a non-profit community health center since 1972 and serves as the only provider of medical care for low income and uninsured residents in the Tri-Valley. The federally qualified health center provides medical, mental health, nutrition and drug and alcohol recovery services to over 14,000 residents of eastern Alameda County. Axis recently underwent an extensive search and market assessment to identify its newest location and in December 2001 purchase a condominium building on the corner of Willow and West Las Positas. This new site meets many, if not all, of their identified needs with respect to access, proximity to transit and the suitability for building. A good portion of city funds, through the grant program, have already gone towards predevelopment activities including architecture, development and planning and Axis is now moving towards the interior improvements that will enable the operation of a full medical clinic. The total estimated project costs are almost $12 million, which will be primarily financed through tax exempt bonds. Axis has identified $7 million, as its maximum sustainable debt, along with prior CDBG funds allocated by the cities of Pleasanton, Dublin and Livermore, and Measure A county funds to finance the project, as well as a capital campaign and Section 108 Loan, the latter of which is up for consideration by the Council. The Section 108 program was established by HUD to allow jurisdictions receiving CDBG funds to borrow against future allocations in order to secure a larger amount of funds up front for a specific project. The requested loan amount of $1.25 million, which is slightly less than the city's estimated City Council Minutes Page 18 of 20 May 6,2014