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