City of Lawrence
Planning and Development Services Department
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TO: |
David L. Corliss, City Manager
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CC: |
Scott McCullough, Director, Planning and Development Services
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FROM: |
Danelle Dresslar, Community Development Manager, Planning and Development Services
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DATE: |
June 25, 2013
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RE: |
Request for one-time general fund allocation to Just Food, Inc. for purchase of Refrigerated Box Truck. |
This memo requests the City Commission consider approving a one-time general fund allocation in the amount of $25,000 to Just Food, Inc. for a Refrigerated Box Truck, a project formerly funded through the recommended 2013 Community Development Block Grant (CDBG) allocation. This request is being made due to the fact that the United States Department of Housing and Urban Development (HUD) has determined a CDBG-funded Refrigerated Box Truck project is an ineligible activity under CDBG Capital Improvements.
Just Food applied for a 2013 CDBG Capital Improvement project and requested
funding for a Refrigerated Box Truck. The application for the Refrigerated Box
Truck funding states that “In Douglas County, most perishable food and produce
is currently thrown away. Just Food desires to infuse this wasted food back
into the food ecosystem for low-income families so that they have access to
fresh produce that has been properly stored and maintained at its correct
temperature. Just Food is seeking a vehicle to transport this food from the
store, to the distribution site, in order to get the food to the client.”
Just Food is the only organization in the City of Lawrence that provides this type of service. The agency partners with over 35 other agencies in the City to provide food services to low-income clients.
The Community Development Advisory Committee (CDAC) felt very strongly about the value of this project, and recommended funding in the amount of $25,000 to Just Food for the purchase of the truck. This funding recommendation was approved as part of the Investment Summary by the City Commission at the May 21, 2013 meeting.
A waiver from HUD was requested due to the fact that Jeremy Farmer, Chief Executive Officer of Just Food, is a City Commissioner. HUD found no evidence of a conflict of interest with the project. Although it was determined there was no conflict of interest, after receiving the waiver request HUD informed staff that the project is ineligible under a CDBG Capital Improvement.
Staff communicated this information to Commissioner Farmer, and the Just Food agency was asked to determine if there were any additional upcoming projects that may have a budget line item previously set up that would qualify as an eligible CDBG project. If any budgetary adjustments could be made to fund a building improvement project through CDBG, this would allow for internal agency funds to become available for the Refrigerated Box Truck to be purchased, and CDBG would fund the alternative project. Just Food was not able to identify any other eligible projects to make this adjustment.
Staff is requesting the Refrigerated Box Truck be funded through a one-time allocation of $25,000 in general fund money. As this will leave $25,000 un-allocated for the 2013 CDBG program year, staff will recommend to the CDAC to allocate this funding to sidewalk programs in low-moderate income neighborhoods in Lawrence.
Action Requested:
Approve a one-time general fund allocation to Just Food, Inc. in the amount of $25,000 for the purchase of a Refrigerated Box Truck.