HomeMy WebLinkAboutItem 22- CDBG Substantial Amendments AGENDA ITEM SUMMARY Meeting Date: 7/1/2024
Meeting Type: Regular Meeting
Staff Contact/Dept.: Erin Fifield / DPW
Staff Phone No: 726-2302
Estimated Time: 5 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Encourage Economic
Development and
Revitalization through
Community Partnerships
ITEM TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT SUBSTANTIAL
AMENDMENTS
ACTION
REQUESTED:
Motion to approve, approve with changes, or not approve the proposed substantial
amendments to the Community Development Block Grant Fiscal Year 2022 Annual
Action Plan and authorize the City Manager to execute all documents needed to
give effect to the City’s agreement with the U.S. Department of Housing and Urban
Development for these funds.
ISSUE
STATEMENT:
These substantial amendments would reallocate $305,063.65 in funds previously
awarded to Catholic Community Services of Lane County (CCSLC)’s OASIS day
center construction project for homeless families with children. The City is at risk
of losing CDBG funds if they are not spent quickly. This project has experienced
delays and is currently not ready to proceed. Amending this plan would reallocate
funds toward projects ready to proceed.
ATTACHMENTS: 1. Council Briefing Memo
2. Public Comment – LCC Early Childcare Business Accelerator
3. Public Comment – Plaza de Nuestra Comunidad
4. CDAC DRAFT minutes from May 29, 2024
DISCUSSION/
FINANCIAL
IMPACT:
Per HUD regulations, CDBG funds need to be spent in a timely manner otherwise
those funds are at risk of being recaptured by HUD.
Given the need to meet HUD requirements to spend funds in a timely manner,
Council directed staff during the April 22 work session to move forward with a
substantial amendment to prior year plans to reallocate the funds previously
awarded to CCSLC for the OASIS project.
Following our citizen participation process, city staff published the proposed
substantial amendments for public comment for 30 days, and the City’s Community
Development Advisory Committee (CDAC) held a public hearing on the proposed
amendment during their May 29th meeting. The CDAC heard from 9 people during
the public comment period and public hearing, as well as City staff on other
identified needs, and made a recommendation to City Council that was discussed by
Council on June 17.
During the Council June 17 regular session, Council approved the CDAC’s
recommendation to reallocate funds to repay the City Section 108 loan and asked
for additional information on the other recommended projects. Those projects
include:
• Supporting architectural and pre-development costs for eligible projects
that support human services; and
• Promoting economic development through microenterprise business
support.
M E M O R A N D U M City of Springfield
Date: 7/1/2024
To: Nancy Newton COUNCIL
From: Jeff Paschall, Community Development
Division Director
Erin Fifield, Community Development
Analyst
BRIEFING
Subject: COMMUNITY DEVELOPMENT BLOCK
GRANT SUBSTANTIAL AMENDMENTS
MEMORANDUM
ISSUE: These substantial amendments would reallocate $305.063.65 in funds previously
awarded to Catholic Community Services of Lane County (CCSLC)’s OASIS day center
construction project for homeless families with children. The City is at risk of losing CDBG
funds if they are not spent quickly. This project has experienced delays and is currently not
ready to proceed. Amending these plans would reallocate funds toward projects ready to
proceed.
COUNCIL GOALS/
MANDATE:
Encourage Economic Development and Revitalization through Community Partnerships
BACKGROUND:
CDBG funds need to be spent quickly to meet HUD requirements
The oldest CDBG funds we have allocated right now were awarded spring of 2021 to Catholic
Community Services of Lane County (CCSLC) for a construction project to build a day center for
their OASIS program serving homeless families with children. This project has had several delays
over the past few years (including a HUD environmental review that is still underway, increased
construction costs that have created a financing gap, and staff turnover at CCSLC). CCSLC
continues to support this project, but it is currently not ready to proceed. Given these delays, it is
not likely that this project would be completed in the next year.
City Council’s Community Development Advisory Committee recommendation
As part of the Citizen Participation Plan through the Eugene-Springfield Consolidated Plan, there
are procedures to follow when the City is considering amending a CDBG Action Plan. As part of
our substantial amendment process:
• The City published a legal notice in the Register Guard that the City was considering a
reallocation of funds.
• The substantial amendment was made public on the SpringfieldOregonSpeaks website for
30 days for the public to comment.
• The CDAC held a public hearing on the proposed amendments during their May 29th
meeting.
• Through the public comment period and public hearing process, the CDAC heard from 9
people as well as City staff on other identified needs, including:
o Local low-income affordable housing providers expressing the need for funds for
capital improvements, including roof replacements, ductless HVAC installation,
staircase repairs, and fencing replacement.
Attachment 1
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MEMORANDUM 6/27/2024 Page 2
o City staff identifying the need for accessible bathrooms at City Hall, and the
potential redesign/construction of new bathrooms that remove accessible barriers
to mobility. Staff estimate $50,000 in architectural costs.
o The Early Child Care Business Accelerator Program at Lane Community College
(LCC) in search of start-up funding for new microenterprise businesses graduating
from their business training and support program for new and expanding in-home
childcare businesses in Springfield.
o Plaza de Nuestra Comunidad (Plaza), a Latinx-serving, culturally specific,
bilingual community service provider in Lane County, in search of gap funding for
the renovation of a recently purchased building in Springfield to serve as a
community wellness center. The CDBG funds would not go toward construction
costs.
o Early payoff of a Section 108 loan to HUD. The City can use CDBG funds to pay
off this loan early, while DevNW will continue to make their loan payments as
planned.
• During the CDAC’s May 29th meeting, the CDAC discussed the needs identified and the
urgency to spend funds quickly to meet HUD requirements.
o The CDAC recommended Council allocate funds to the following in the short
term:
CDAC’s recommendation to allocate funds Amount to fund
1. Repay Section 108 loan $ 165,430.35
2. Support architectural and pre-development costs
for eligible projects that support human services.
$ 259,000.00
3. Promote economic development through
microenterprise business support.
$ 46,063.65
o The CDAC also recommended that the City reallocate any additional funding that
becomes available this Fall towards rehab for low-income rental housing
developments and issue a Request for Proposals to award these funds.
June 17 Council Regular Session
During the Council June 17 regular session, Council approved the CDAC’s recommendation to
reallocate $165,430.35 in CDBG funds to repay the City Section 108 loan and asked for additional
information on the other recommended projects.
This leaves $305,063.65 in CDBG funds for Council to consider reallocating toward another
strategy in order to meet HUD requirements for timely spending of funds.
Additional information on needs identified through public process
The following table outlines how the CDAC’s recommendation matches the Consolidated Plan
strategy and includes discussion points surrounding each need:
Attachment 1
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MEMORANDUM 6/27/2024 Page 3
Consolidated Plan
strategy / activity and
funding request
(including estimated
staff time)
CDAC
recommendation
Discussion
1. Rehabilitate
existing housing
stock
Hold a Request
for Proposals in
the Fall when it’s
known what
other CDBG
funds will be
available
Staff estimate
$200,000 –
$300,000 will be
available
Complex CDBG requirements for construction.
Would require an RFP to award funding to ensure
equity for applicants, and that the City is in
compliance with HUD.
Given the timing, CDAC recommended that less
complex projects be funded first, allowing enough
time to issue a competitive process in the Fall
when other funds will most likely be available and
give housing providers an opportunity to dial in
costs.
2. Support a Human
Services Delivery
System
Plaza de Nuestra
Comunidad are
renovating their
building this Fall and
are in need of gap
funding to complete
the project.
-------------
City Hall needs
accessible bathrooms
and could use funding
to start the project.
Allocate
$259,000 toward
this strategy
Plaza is engaged now on this project and has a
Capital Plan. The building is bought, they have
been working with an architect to talk through the
project, and are planning to go to construction this
Fall. City Attorney’s Office is still reviewing CDBG
requirements on which of the proposed costs are
eligible.
---------------
The environmental review process is relatively
straightforward for non-construction projects
(such as architectural costs).
---------------
Additional information on project cost and
timeline is needed on both projects.
3. Promote economic
development and
employment
opportunities
through the
creation of jobs
and business
development
The Early Child Care
Business Accelerator
Program at Lane
Community College is
seeking a $5,000 grant
per graduate of their 4-
month program.
Allocate
$46,063.65
toward this
project
Each new licensed in-home child care facility can
serve 10 kids.
----------------
The model for this program is currently being used
in Eugene with CDBG funds for LCC graduates of
this program. Since Fall 2023, 19 people started
the 4-month course, 17 completed the course, and
14 competed their business plans and are on track
to being licensed.
--------------
Grants will be issued upon determining eligibility
of program recipients, and successful completion
of the program. Funding will be monitored by City
staff to the same level as the City’s Invoice
reimbursement request process.
Attachment 1
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MEMORANDUM 6/27/2024 Page 4
City staff support the CDAC’s recommendation
City staff support the CDAC’s recommendation, particularly regarding funding rental rehab needs
with a substantial amendment later this fall. The CDAC’s recommendation to award funds first for
non-construction activities allows for those funds to easily be awarded and contracted out, while
also supporting community projects that are happening now. The recommendation to award
additional funding this fall just for rental rehab construction needs also allows City staff time to
issue an RFP and the capacity to be more efficient in addressing those needs.
Next steps
If Council supports the CDAC recommended allocations, staff will:
• Develop a program with LCC’s Early Childhood Business Accelerator to award eligible
microenterprise businesses with grant money to help start their business
• Seek additional information from Plaza regarding the Wellness Center and city staff for the
ADA public bathrooms regarding costs and timelines and award funding accordingly.
If Council further supports allocating CDBG funds in the Fall toward Rental Rehab of low-income
housing developments, staff will:
• Start the process to initiate a substantial amendment to prior year CDBG Action Plans
following the City’s public participation process.
• Prepare and distribute an RFP for eligible rental rehab projects.
• Convene the CDAC to hold a public hearing, evaluate proposals, and make a
recommendation to Council on funding allocations.
• Seek Council’s direction and approval on a final allocation.
RECOMMENDED ACTION: Approve the Community Development Advisory Committee’s
recommendation to substantially amend the Community Development Block Grant Fiscal Year
2022 Annual Action Plan.
Attachment 1
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The Early Child Care Business Accelerator Program is a replication of Deschutes County’s
highly successful Early Child Education Business Accelerator, a four-month program that
focuses on providing the skills and knowledge to become registered or certified home-based
child care providers. The Lane Small Business Development Center (SBDC), Quality Care
Connections (QCC), our local Child Care Resource and Referral agency housed at Lane
Community College, and Onward Eugene are partnering to provide this critical program
across Lane County. The series is provided free of charge to participants and is aimed at
addressing the lack of child care in the region.
The curriculum supports growing a high-quality, licensed child care program, taught by
specialists at QCC, with business topics covered by SBDC instructors. Quality Care
Connections provides safety and quality improvement training and licensing support for
providers to become licensed with the Department of Early Learning and Care. A Licensed
Registered Family provider can have up to 10 children in their home, and a Certified Family
Provider can have up to 15 children in their home. Lane SBDC is providing business training
and support so that early educators have the skills necessary to become successful small
business owners.
The training is intended for new child care businesses planning to open as well as recently
established providers who require expanded business skills and state licensure. Students are
assigned an SBDC business advisor and licensed graduates receive $5,000 to start their
business, as well as continued wrap-around services from both QCC and the SBDC after the
program.
Community Need and Partner Engagement:
The program was conceptualized in 2020 in response to the child care crisis that Oregon
families have been facing for years. Between 1999 and 2020, Oregon lost 32,000 slots in small
family child care homes, according to the latest report from Oregon State University.
Early Child Care Business Accelerator
2023 Early Child Care Business Accelerator Graduate: Rivercubs Dual Immersion Preschool, Springfield
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Currently, all but one of Oregon’s 36 counties are considered “child care deserts” for infants and
toddlers, defined as a community with more than three children for every regulated child care
slot. Half of all counties have the same shortage of access for preschool-aged children. In Lane
County, just 26% of children ages 0-5 years have access to a child care slot with a licensed,
regulated child care provider. For infants and toddlers, that figure drops to 17%.
Results:
In the promotion of the first cohort, scheduled to begin September 2023, Quality Care
Connections received applications from 60 interested individuals from across Lane County,
easily filling the 10 available slots. A partnership with the City of Eugene’s micro-enterprise grant
program allowed for an increase to 20 total slots. In total 19 people started the program, 17
completed the 4-month course, and 14 completed their business plans and are on track to
become licensed with Oregon’s Department of Early Learning and Care, potentially increasing
our child care supply by 110 to 150 slots.
Goals and Measurement:
Our two-year goal is to support 30 new Oregon registered or certified home‐based child care
businesses through the Early Child Care Accelerator series and create 250 new child care slots in
Lane County.
We are on track to reach this goal by the end of 2024.
2024 Funding Needs:
April - June 2024 Cohort
3 Start Up Grants for Currently Enrolled Eligible Springfield Residents ($15,000)
Program Expenses: Personnel (addition of two bilingual/bicultural training and advising
staff), Translation and Printing ($10,000)
September - November 2024 Cohort
5 Start Up Grants for Eligible Springfield Residents ($25,000)
2023 Early Child Care Business Accelerator Graduate: Rivercubs Dual Immersion Preschool, Springfield
Attachment 2
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Plaza de Nuestra Comunidad Wellness Center
Project Summary:
Plaza de Nuestra Comunidad (formerly Centro Latino Americano, Downtown
Languages, and Huerto de la Familia) is seeking funds for our new Wellness Center
Project in Springfield. This project aims to create a bilingual substance use disorder
treatment and mental health clinic at 1621 Centennial Boulevard. The addiction
treatment and mental health services offered at this location will be open to the
public during our business hours, and the majority of our clients are low-to-medium-
income.
According to the 2020 National Survey on Drug Use and Health by the Federal
Substance Abuse and Mental Health Services Administration, the State of Oregon
has the second to worst overall addiction rates nationwide with nearly 1 in 5 teens
and adults reporting a problem with drugs and alcohol. In 2022, Oregon ranked last
in treatment options. This Wellness Center is highly needed in our community to
address this epidemic locally, and to ensure that Spanish-speaking community
members, who are disproportionately impacted by health outcomes, are able to
access mental health services and treatment programs.
The Wellness Center is essential for providing trauma-informed, culturally-relevant
services, building social cohesion, and enhancing public health. The interior has
been specifically-designed for the provision of trauma-informed care, and the
location was carefully selected in order to ensure accessibility to all community
members.
We purchased the property in February of 2024 using Measure 110 funding. We are
seeking $250,000 in funds for the purpose of non-construction costs such as
architectural designs, project management, permitting, a culturally specific art
mural, and other professional services. We are fully prepared to spend these funds
before the end of the calendar year.
Organization Background:
Plaza de Nuestra Comunidad (Plaza) is the largest Latinx-serving, culturally-specific,
bilingual community service provider in Lane County. Our vision is to create an
equitable, thriving, and resilient intercultural community. Our mission is to support
the lives of Latinx and immigrant community members by creating a safe space that
fosters leadership, education, connection, and wellness.
Plaza is the result of combining three local nonprofits: Centro Latino Americano,
Downtown Languages, and Huerto de la Familia. We joined together to create a
one-stop service hub for Latinx and immigrant community members where they
Attachment 3
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could access a wide range of Spanish-language, culturally specific services. Together,
the three agencies have a cumulative 90 years of experience serving local Latinx and
immigrant families, and our programs and staff are highly trusted by community
members and other agencies.
We currently serve more than 1,000 families in Lane County providing social services
such as rent and food assistance; community gardens along with food and garden
related workshops; mental health treatment for youth and adults; an outpatient
substance use treatment program; educational classes for adults and children; and
technical assistance for entrepreneurs and small businesses. We also play a key role
in connecting families to community resources and information.
We have many local and statewide partnerships for our work, and our organization is
deeply rooted in the City of Springfield. We have a broad network of community
partners in Springfield. We partner extensively with the Springfield School District
(SSD) including providing our Pilas Family Literacy Program where parents and their
children attend together and the parents receive English language classes while the
children receive age appropriate educational activities. Along with our other SSD
partnerships, we also collaborate to provide an afterschool program (MAPAS) for
middle and high school students in two schools in Springfield.
In addition, we provide a garden for 25 families in Springfield in partnership with
Willamalane Parks and Recreation. At this garden, families grow their own organic,
culturally-specific food.
Finally, all of our educational classes for adults are located at our Springfield location
based out of Ebbert Methodist Church. At that building, we provide the following
classes: Oregon Drivers License exam preparation, US Citizenship exam preparation,
English as a second language, and computer literacy. We also offer our 12-week
business class helping to start new businesses in Springfield and throughout Lane
County.
Project Team:
Justin Schmick, Downwind Development – Owner Representation
Justin’s role is to coordinate inspections, ensure the project stays within budget,
procure permits, develop scope documents, complete the necessary due diligence,
and develop RFPs for professional services.
Timothy Herrera – Facilities Project Manager
Timothy facilitates coordination and meetings between the executive team, design
team, and professional services. He assists with grant writing, develops/maintains
community partnerships, gathers staff feedback, ensures adherence to the project
timeline, maintains procurement compliance, and communicates the needs of the
organization.
Amanda Donofrio and Leanne Love, BDA Architecture and Planning
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Amanda is the principal architect responsible for the development and preparation
of schematic designs and final design drawings. Leanne is the architect responsible
for preliminary design documents, code compliance, and post-design support.
Bryan Wedmore and Sam Montano, McKenzie Commercial – General Contractor
Bryan is the project leader responsible for estimating, value-engineering,
subcontractor bidding and relations, BOLI prevailing wage compliance, and cost
reporting. Sam is the project superintendent responsible for project planning,
scheduling, material procurement, quality control, safety compliance, and general
oversight during the construction phase of the project.
Due diligence:
Listed below are the various due diligence components we have completed for this
project.
● Property inspection from Doug Palmer
● Observation report from Crutcher Lewis
● Limited asbestos testing from LODGE
● HVAC assessment from Comfort Flow
● Sewer Scope from Pacific Plumbing
● Phase 1 Environmental Inspection from GEM
● Schematic Design from BDA
● Project Proposal - McKenzie Commercial
● Subcontractor RFP for Mechanical, Electrical, and Plumbing - McKenzie
Commercial
Attachment 3
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Exhibit A – Wellness Center Project Summary
Attachment 3
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Exhibit B – Project Timeline
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Exhibit C – Program Overview
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Exhibit D – Existing Floorplan
Attachment 3
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Exhibit E – Proposed Floorplan
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1
Community Development Advisory Committee
Minutes - Draft
Wednesday, February 7, 2024
5:30 pm
Hybrid Meeting: Jesse Maine Room, Springfield City Hall & Zoom
COMMITTEE MEMBERS PRESENT: Savannah Olsen, Rebecca Cashero, John Aaron, City
Councilor Steve Moe, Planning Commissioner Matt Salazar
ABSENT: Tinker Flom, Sami Allen, Catrina Mathewson
STAFF PRESENT: Erin Fifield and Sandy Belson
1. Call to Order
Savanah called the meeting to order at 5:30 and committee members introduced themselves.
2 – Project Updates
Erin provided updates on:
• CDBG and CDBG-CV projects - some funds may need to be re-allocated.
• FY2025 CDBG Annual Action Plan – Springfield allocated $20,000 less than last year.
• 2025 Eugene-Springfield Consolidated Plan – Eugene leading this effort.
Rebecca and John volunteered to serve the regional advisory committee for the Consolidated
Plan. Matt said he could be available as well if needed.
3 – Public Hearing to Reallocate $470,494
Holly Mar Conte with Onward Eugene (economic development partner with Eugene Chamber of
Commerce) explained the need for an Early Childhood Business Accelerator. Lane County is a
childcare desert, especially for infants and toddlers. The care that is available is expensive and
doesn’t meet all the cultural and linguistic needs of local families.
Sheryl Henderson with LCC ’s Quality Care Connections which is a referral agency partners with
small business development center to train childcare providers as small business owners. The
Accelerator program sets childcare up for success. Blended funding supports the program.
Dan Collins with Small Business Development Center. The Accelerator Program is just starting its
second wave after graduating 14 people. Each new childcare business can have up to 10
children in their home. The program has funds for programing. Seeking grants to fund business
start-ups in Springfield. Seeking 9 grants of $5,000 for a $45,000 total.
David Saez with Plaza de Nuestra Comunidad seeking funds to create a Wellness Center located
in Springfield. 77% of clients are very low or extremely low income. Oregon has 2nd worst
addiction rates in country and ranks last in treatment options. Wellness Center would help meet
this need, especially the Spanish-speaking community. Will provide trauma-informed culturally
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2
appropriate services. Purchased property in February which is located near transit. Seeking
$250,000 in non-construction costs.
Marissa with Plaza explained that the merging of organizations into Plaza has resulted in more
impact than any of original agencies could have had. Every program served more clients than
ever before, including addiction treatment. The acquired space has potential to host all
programs in one location. There is no other out-patient Spanish language treatment in Lane
County. The closest in-patient services available to Spanish-speakers are in Madras. She passed
out an updated ask which is different than what was submitted on-line.
In response to Erin’s question, Dan explained that the Fall cohort for the childcare Accelerator
program will finish in December. LCC’s Small Business Development Center will then continue
advising the graduates.
IV. Recommendation to City Council
Erin explained that she reached out to all low-income restricted housing providers in Springfield
asking if they could undertake rental rehabilitation (rehab) this year. She received positive
responses from:
• Saint Vincent de Paul
• Laurel Hill Center
• Homes for Good
• Peak Living
She also learned that the Springfield Utility Board can support HVAC improvements. She also
shared the City would like to make bathrooms near library more ADA compliant and could use
$50,000 for architectural services.
Erin stated that the City’s Tree Planting Program won’t spend all the funds. Home Repair is likely
overallocated. SHOP has unknowns. Likely to have up to $200,000 additional funds to reallocate
this fall.
Savanah stated that in the past the Committee has expressed discomfort in not doing a Request
for Proposals as an equity issue.
Matt asked about the causes of delays with the Oasis Day Center, stating that the Committee
wants to fund successful projects. Erin responded that there were a number of causes for the
delay, including the environmental review. Catholic Community Services proposed new
construction on its existing site. Through the environmental review, found a leaking
underground storage tank that wasn’t property decommissioned. Construction costs had
ballooned. Primary project manager left and other leadership had changed.
Erin stated that the opportunity to pay off a loan is the most minimal effort. She also said that
there could be an RFP within a strategy such as rental rehab.
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3
In response to a question from Matt, Erin responded that Council goes on break for two
months, so in order to have a known path over summer, need to have direction from Council
this month.
In response to a question from Savanah, Erin stated that we need to allocate between $400,000
and $500,000 to avoid the ticking time bomb. She shared that HUD is aware of the issues that
timeliness requirements create.
Matt moved to recommend to Council that Springfield allocate $470,494 to Supporting
Childcare, Plaza’s Project, and the Loan Repayment. Funds that become available this fall could
be made available through an RFP for rental rehab.
John seconded the motion which passed with 4 in favor and Councilor Moe abstaining.
V. Changes to Bylaws
Main change is to vote on a chair/vice-chair every two years.
Councilor Moe stated he would like to make the Councilor a non-voting member.
John moved to recommend the updated bylaws including making the Councilor liaison a non-
voting member.
Matt seconded the motion which passed with 4 in favor and Councilor Moe abstaining.
Meeting adjourned at 6:35 pm.
Attachment 4
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