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HA1987/01/27Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY ..January 27, 1987, 9:35 A.M. PRESENT; AUTHORITY MEMBERS: Hunter, Pickler, Kaywood and Bay ABSENT: AUTHORITY MEMBERS: None VACANCY: AUTHORITY MEMBERS: One PRESENT: CITY MANAGER: William O. Talley CITY ATTORNEY: Jack White SECRETARY: Leonora N. Sohl DIKECTO~ OF COMMUNITY DEVELOPMENT/PLANNING: Norman J. Priest A complete copy of the agenda of the Anaheim Housing Authority was posted at 2:10 p.m on January 23, 1987 at the Civic Center from lobby window. Chairman Bay called the regular meeting of the Anaheim Housing Authority to order at 10:16 a.m. MINUTES: Authority Member Kaywood moved to approve the minutes of the meeting held January 13, 1987. Authority Member Hunter seconded the motion. One Vacancy. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE ANAHEIM HOUSING AUTHORITY in the amount of $1,227.28 and 1,444.75 in Public Housing Authority Bonds, in accordance with the 1986-87 Budget, were approved. 177.109: EMERGENCY SHELTER PROGRAM (ESP) FUNDS: Authorizing an application to the State in the amount of $203,406 for funding under the Emergency Shelter Program. Submitted was report dated January 19, 1987 (with attachments) from the Community Development Department, recommending that the Housing Authority approve the application to the State of California for ~203,406 of funding under the Emergency Shelter Program (ESP) and authorizing the Chairman to execute said documents. Chairman Bay. Before calling on those who wished to speak, he wanted to state his position regarding the proposed resolution. He is a strong believer that charity is not a function of Anaheim City government nor a basic function of its Housing Authority. Charity is a personal matter and the joy of giving is in the giving. When government takes that away from people it is doing harm by removing the joy of giving from the people while making all contributors to government coffers p~rhap~ unwilling contributors to that charity. He opposes any level of government being involved in charity. He does not want the City of Anaheim in the welfare, social engineering or social reform business. Authority Member Pickler. There are people that have to be helped. He did not feel the Authority could walk away from a problem that is so evident today. Authority Member Hunter. Of late, there has been a lot media attention paid to the homeless with the usual cry that government should do more. For the . taxpayers to step in and assume full responsibility for all the homeless people would be an unwise move in Anaheim. Spending more government money does not eliminate poverty or the homeless problem. What is needed instead is to start working on solving the problem of the homeless such as low-cost housing, cutting the red tape and allowing developers to come in, build and operate low-cost housing in the City. The attitude should be less government 87-6 Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY January 27, 1987, 9:35 A.M. and less regulation which promotes the Free Enterprise System. The proposed resolution is a "band-aid" approach to the situation. Mr. Pickler. The Authority has never stopped developers from coming in with low-cost housing. The taxpayers money was going to be going some place else if it was not used in the City. The "band-aid" approach will at least help. The following people then spoke to the issue: Reverend Don Dexter, representing the Anaheim Human Services Network, (AHSN) of which his church is a member. After explaining how and why the Network was started, he emphasized that the number one issue they have had to deal with is finding shelter for homeless people. In three years the Network has grown to involve 35 agencies. Between $50 and 5100,000 was spent last year on motel rooms to accommodate the request received for shelter. The problem is real and the Network needs the City of Anaheim to become involved in the manner described in the subject proposal. He asked that the Authority help the Network to secure the funds which will help in establishing a shelter in Anaheim. (Reverend Dexter then had those people who were present in support of approval of the application for State funds stand - there were approximately 60 people). Captain Joseph Huttenlocker, Salvation Army. The Salvation Army is a member agency of AHSN which deals on a daily basis with many differing social problems confronting the citizens of Anaheim, one of those problems being that of the homeless. Government cannot help but be involved. The Network is not present to ask the Authority to run or operate a shelter but to help the private sector meet the need of the homeless. The Authority can help by approving the subject application which has been put together by a task force of people who have a concern for the plight of the homeless. Father John Lenihan, 120 North Janss. He is Pastor of St. Boniface Church and President of the Anaheim Inter-Faith Council. They are not asking the Authority for funding. Further, contrary to a remark by a Council Member printed in the Register that he is not so sure there is a homeless problem in Anaheim, he (Lenihan) knows from first hand practical experience that there is. Just ~rom his own church community in the first eleven months of 1986, as a single private individual church, they have helped 5,280 families with food totalling almost 20,000 people. They also furnished about 70 lunches per day and of those, 92 consistently were unable to list any address as having any fixed abode. In speaking of lodging, it is simply a matter of utilizing the resources the private sector has in a way that is most efficient. St. Boniface and two other churches (St. Anthony's and St. Justin Martyr), spent 530,000 in total funding for families to stay in a motel room for one night, which, in a sense, was "wasted" since it could have been used more efficiently if they had some way of dealing with the problem in an organized and good fashion. As President of the Inter-Faith Council, he has secured a commitment from the member churches that they are prepared to assume the financial responsibility. As Mr. Pickler said, it is taxpayers money that is involved and since it is going to go somewhere, why not Anaheim. 87-7 Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY January 27, 1987, 9:35 A.M. Marge Rothrock, Anaheim Assistance League. She first read a letter signed by the President of the League encouraging City support and cooperation with the Human Services Network in their endeavors for the funding of the homeless shelter for the economically disadvantaged people of Anaheim. Several members of the organization were also present today (approximately 12 people were present). Bill Taormina, North Helena Street. He concurred totally with Chairman Bay and Mr. Hunter that charity is not a function of government. He agrees that the City should not be involved and no City money should be spent. He then read a prepared statement which stated his personal intent for the property located at 423 North Anaheim Boulevard (formally the Elk's Club), which is to restore the building and the grounds to a better-than-new condition. He has also served as a Lead Committee Chairman in the VISION 2000 program appointed by the City Council. He learned the City is faced with the continuing problem of where to house families in a temporary situation. It is one of the top ten priorities for which a solution must be found in the City. He is also a member of the AHSN. As a business leader in Anaheim, he pledges to the City that he intends to do everything in his power to help the homeless and others in need. Too often citizens feel big government should solve all social pro'blems. The only correct solution is for people to help other people. Government should in no way be directly involved in running individual's lives but it can be a facilitator. Mr. Taormina then stated he intends to offer the subject property fully restored and in like new condition to the Anaheim Human Services Network for a long-term period. He will charge a monthly rental equal to his direct cost of ownership of the property. After the debt on the property and improvements is paid off, he will offer the building to the organization absolutely free for no monthly rental. The AHSN is presently spending thousands of dollars each month to house families in run down motels in the City. The concept proposed will save thousands of dollars and make it possible for more persons to be served at a lower cost per family. It is important to procure funds for the restoration at as low a cost as possible and that is why the grant from the State of California ESP is ideal for Anaheim and this project. Relative to the matching funds, Anaheim citizens should not be burdened with any dollar expense on the project. Therefore, he is presenting his own personal check to the City signed but with the amount left blank in order to cover 100% of the cost that may be incurred by the City in acting as the facilitator in helping him and the Human Services Network make the project a reality. (Mr. Taormina submitted the check to the City Attorney). In concluding, Mr. Taormina explained that he has been attempting to buy the subject property for over three years. He now held in his hand, delivered by Federal Express today, a signed document from the owner, accepting Mr. Taormina's last and final offer, and as he speaks, the building is in Escrow. He is in a deal for $1 million whether he gets the money or not, it is going to happen. He asked that the Authority try to understand what he is §oing to do. In order to facilitate the grant money to keep the cost to the people down, he urged the Authority to vote in the affirmative on the application. 87-8 Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY January 27, 1987, 9:35 A.M. Mr. Hunter. He is moved by what Mr. Taormina has done. With the resolution before the Authority today, the way it is written, it would be difficult, after Mr. Taormina's offer, to make a decision. If the resolution is rewritten incorporating what Mr. Taormina has stated, then his vote is changed to allow the Authority to proceed. He is suggesting that the matter be continued for one week to give them the opportunity to look at the resolution again and change some figures because if the Authority voted on it now it is going to come out of the taxpayers pocket and Mr. Taormina does not want that to happen. Mr. Pickler. He does not believe the Authority should take any money from an individual since the Housing Authority has the funds. He did not think it was right to take the money from Mr. Taormina who has already done so much for the community. The City and the Authority is big enough to be able to meet the required 25% match of the total grant if awarded, which consists of Housing Authority staff time. The Network will not be back asking for additional monies. Norm Priest. He first confirmed that the deadline for submitting the application is January 29, 1987. He suggested that the $24,252 involved fall in the category as pointed out in the application. The effort would be for rehabilitating the building. The major portion of the cost, nearly ~12,000 is for a Rehabilitation Counselor offering technical assistance in rehabilitating the building. The other two are a portion, roughly 20% of a Clerk and 1/3 of a Housing Counselor who would assist those people who already are coming to the Housing Authority seeking assistance. Those would be the sum total. The application points out ~26,000 for equipment which is already committed for reimbursement from the Network. Roughly this involves one staff person for three months and the equivalent of 1/2 staff person for the next twelve. The Authority is not committed to funding the rehabilitation except through the grant nor the management of it. The Authority is not even equipped to manage such a facility as this. Chairman Bay. He questioned why the application could not have been submitted to the County; Mr. Priest answered that he was not sure. It was an effort by the AHSN. Anaheim has not operated through the County facilities in its ~ousing programs. Mrs. Kaywood. Taxpayers funds are being spent on police, Code Enforcement - on many things due to the homeless problem. The City's parks are not being used at night because people are afraid to go there since so many of the homeless, having no other alternative, are using the parks instead. She would like to see the parks used for the purpose intended - for the enjoyment of the people. They cannot turn their backs on the situation of the homeless. She is overwhelmed by Mr. Taormina's generosity not only in this instance but for everything he has done for the City of Anaheim. To take a check from him that should be coming from elsewhere is immoral on the part of the Authority to accept. The Authority has the staff who can take on the slight additional jobs. The grant is available and somebody will take it whether it is Anaheim or not. Anaheim's taxpayers monies go into the government money as well. 87-9 Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY January 27, 1987, 9:35 A.M. Chairman Bay. The application to him implies management of the program by the Housing Authority. Norm Priest. The Housing Authority is the applicant Agency. The Authority has made it clear that it would be a pass-through application for purposes of rehabilitation and when that is accomplished, the Authority's responsibility will cease. The Authority would be involved in making sure the funds were spent correctly. Mr. Hunter. Mr. Taormina has offered to pay whatever the cost would be to the Authority. If he wants to do that he (Hunter) would vote to approve the application as long as there was no cost to the taxpayers of the City. Mr. Taormina. He will sign a contract wherein he will guarantee that today and in the future for as long as the homeless shelter exist it will never cost the City one cent. He is asking the Authority to facilitate or be a catalyst in his ability to get the bonds from the Federal government and the State which is money that is going to be spent anyway. City Attorney Jack White. The resolution before the Authority is as presented in the staff report of January 19, 1987. If a member of the Authority wished to add any contingencies to the adoption of the resolution, they could do so. Currently, there are no contingencies such as acceptance of Mr. Taormina's offer or entering into a contract with him. Mr. Hunter. He offered the contingency to the resolution authorizing the application to the State of California in the amount of $203,406 for funding under the ESP with a contingency that there be no monies expended by the taxpayers or the City of Anaheim, whatever that amount would be; Mr. Taormina stated whatever that amount is, he will pick it up. Mr. Pickler. The money that the Authority has is already existing which has come from the Federal Government and now the Authority is asking that Mr. Taormina pick up the approximate $24,000. If that is what it is going to take, he would vote for it but he does not like it. He cannot see government putting the total burden on any individual. Norm Priest. The resolution needs to show a local match. He would, therefore, recommend that by motion, the Authority handle the reimbursement to the Housing Authority. The match has to come from the applicant. He is suggesting that the resolution not be modified to show reimbursement but that it go forward as it stands but prior to that a motion also be made directing the Authority to accept the offer by Mr. Taormina. City Manager William Talley. He does not like to have a blank check and suggested instead that the Authority set the amount of money it deems appropriate for Mr. Taormina to reimburse the Housing Authority's Federal dollars. Today, the Authority would be approving a motion which allows submission of an application. The Authority is still going to have to accept the grant when it comes back. At that time, there could be a motion or a contract or whatever the Authority wishes to have Mr. Taormina reimburse the City. 87-10 Anaheim Civic Center, ANAHEIM HOUSING AUTHORITY January 27, 1987, 9;35 A.M. Mr. Talley reiterated that the action is merely for the Housing Authority to submit the application for funding. The Authority still has the privilege of rejectin8 the funds when they are received if awarded. He would like to return the check and have the Authority indicate what the amount should be. Father John Lenihan. If a particular amount is to be specified on the check offered by Mr. Taormina, he asked that they take $5,000 off that amount and St. Boniface Church will give the Authority a check for $5,000 today. Marie Cummins, 1200 West Rowan Street. She is a concerned citizen. She knows about the homeless and it is a societal disgrace. The problem was not going to go away and it was growing. She has yet to see Anaheim help with homeless shelters. Everyone must do something to help alleviate the problem. A City must have social concern especially the number one City. Authority Member Hunter offered Resolution No. AHA87-4 for adoption, authorizing an application to the State in the amount of ~203,406 for funding under the Emergency Shelter Program. Refer to Resolution Book. RESOLUTION NO. AHA87-4: A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY APPROVING THE SUBMITTAL OF AN APPLICATION TO THE STATE OF CALIFORNIA FOR FUNDING UNDER THE EMERGENCY SERVICES PROGRAM (ESP). Before a vote was taken, City Manager Talley recommended that the Council pass the resolution then by motion, prior to accepting the funds, if awarded, for staff to submit a report on what the exposure will be and where those funds would come from. There was an offer of $5,000 and the remainder from Mr. Taormina. Staff should be instructed by motion to prepare the report for Authority action at the time the authority accepts the funds if the funds are forthcoming from the State. That would protect the Authority because it would take a majority vote of the Authority to accept the funds. If the resolution is adopted, it will authorize that the application be submitted before January 29, 1987 and if the State subsequently awards the funds to the City, the matter will again come before the Authority. There would have to be an agreement that the City Attorney would prepare outlining where the other funds would come from. A vote was then taken on the foregoing resolution: Roll Call Vote: AYES: AUTHORITY MEMBERS: Hunter, Pickler and Kaywood NOES: AUTHORITY MEMBERS: Bay ABSENT: AUTHORITY MEMBERS: None VACANCY: AUTHORITY MEMBERS: One The Chairman declared Resolution No. AHA87-4 duly passed and adopted. MOTION: Authority Member Hunter moved that prior to accepting the funds, if awarded, that staff submit a report on what the Authority's exposure will be and where those additional funds will come from and that, at this time, the blank check from Mr. Taormina be returned to him. Authority Member Pickler 87-11 Anaheim Civic Center~ ANAHEIM HOUSING AUTHOKITY ..J. anuar~ 27, 1987~ 9:35 A.M. seconded the motion. Authority Member Bay voted no. One Vacancy. MOTION CARRIED. 177.114: CHANGE OF STARTING TIME - HOUSING AUTHORITY: Changing the starting time for regular meetings to 1:25 p.m., effective February 3, 1987. City Attorney Jack White, announced that the subject was being presented to the Authority for information only at this time. The by-laws of the Housing Authority require that the Authority be given 7 days notice of any change in those by-laws; therefore, no action will be taken today but will be scheduled for action at the meeting of February 3, 1987. There were no items of public interest. ADJOURNMENT: Authority Member Kaywood moved to adjourn. Authority Member Pickler seconded the motion. One Vacancy. MOTION CARRIED. (11:45 a.m.) LEONORA N. SOHL, SECRETARY 87-12