Memorandum

City of Lawrence

Planning and Development Services Department

 

TO:

David L. Corliss, City Manager

 

CC:

Scott McCullough, Director, Planning and Development Services

 

FROM:

Danelle Dresslar, Community Development Manager, Planning and Development Services

 

DATE:

April 29, 2013

 

RE:

Conflict of interest waiver request for the United States Department of Housing and Urban Development (HUD) regarding CDBG funding recommendations.

 

This memo requests City Commission approval of a resolution supporting the application to the United States Department of Housing and Urban Development (HUD) for a waiver related to a conflict of interest to allow the granting of federal funding to Just Food. This waiver is a requirement because Jeremy Farmer, a City Commissioner, is the Chief Executive Officer of Just Food, which is a potential sub-recipient of Community Development Block Grant (CDBG) funds.

 

The 2013 CDBG application process began on October 1, 2012 with the dissemination of the agency applications.  Just Food applied for a CDBG Capital Improvement project requesting 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) has recommended funding in the amount of $25,000 to Just Food for the purchase of the truck.  This funding is contingent upon the approval of the 2013-2017 Consolidated Plan and 2013 Investment Summary by the City Commission at the May 21, 2013 meeting.  In the event of City Commission approval of the Consolidated Plan and Investment Summary, prior to funding this application, the City must request and receive a conflict of interest exemption from HUD. Additionally, Commissioner Farmer will need to recuse himself from voting on the 2013-2017 Consolidated Plan and 2013 Investment Summary at the May 21, 2013 City Commission meeting.

 

The resolution is an indication to HUD that the proper procedures have been followed and that the City Commission has discussed and adopted this resolution in support of the waiver request.  Without a favorable determination from HUD, CDBG funds cannot be granted to Just Food.  This will negatively impact their ability to provide a higher level of efficiency in their food programs.

 

Action Requested:

Adopt Resolution No. 7022 and direct staff to submit a waiver request to HUD to waive HUD’s conflict of interest standards so that Just Food is eligible to receive CDBG funds for the purchase of a refrigerated box truck.