The staff of the Planning and Development Services Department has reviewed the applicable factors as listed in 24 CFR 570.611(d)(2)(i-vii), and has determined the following based upon the information present in this application.
Factor 1: Describe whether the exception, if granted, would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available.
The project for which Just Food, Inc. has requested funding for is essential to the organization, other social service agencies, and low income residents within the City. There is no other known funding source for these projects.
According to the agency website, “Just Food is the food bank in Douglas County, supplying more than 35 partner agencies with food donated from food drives, as well as access to frozen meat, fresh produce and bread. Just Food also provides a direct service to clients: it operates a food pantry, administers two federal food commodities programs, holds a monthly mobile food pantry, and participates in cooking and nutrition classes for low-income residents. Just Food and its partners play a key role in fighting hunger in our community by increasing the availability of a variety of foods, while helping to reduce waste and discarded food.”
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. As mentioned above, they partner with over 35 other agencies in the City to provide food services to low-income clients.
Factor 2: Describe whether an opportunity was provided for open competitive bidding or negotiation.
This factor is not applicable as there was not a specific service or request for proposals that was considered. All eligible agencies are invited to apply, and encouraged to apply, for CDBG funding during the application process. The Community Development Advisory Committee determines the allocation recommendations. This application was in the category of capital improvements, so the request was discussed with other capital improvement applicants of varying project types.
Factor 3: Describe whether the person affected is a member of a group or class of low-income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such persons to receive generally the same interests or benefits as are being made available or provided to the group or class.
This factor is not applicable. Mr. Farmer will not receive any direct financial benefit if the City funds this project through the CDBG program.
Furthermore, Mr. Farmer is not a member of the group of intended beneficiaries of the Just Food Refrigerated Box Truck project. Funding this project will benefit the low income residents who are the intended beneficiaries of Just Food’s programs. The proposed waiver will allow these individuals to receive the same benefits as they would obtain if there was not a conflict between Just Food and the City Commission, caused by Mr. Farmer being a newly-elected member of the Lawrence City Commission.
Factor 4: Describe whether the affected person has withdrawn from his or her functions or responsibilities, or the decision-making process with respect to the specific assisted activity in question.
Mr. Farmer is the Chief Executive Officer of Just Food and was the individual who submitted the grant proposal. At the time of the CDBG application for the agency (December 2012), Mr. Farmer was not a member of the elected governing body. Mr. Farmer became an elected official in April 2013.
As the City Commission is the approving body for the CDBG and HOME applications and Consolidated Plan submission, Mr. Farmer has not and will not participate in the City Commission discussion or decision making process in regards to the CDBG approval process for the City Commission.
As indicated in the attached memorandum from the City Attorney, when these funding requests are presented to the City Commission for consideration of adoption, Mr. Farmer shall publicly disclose the conflict and extent of his relationship with Just Food, and he shall recuse himself from the City Commission discussion and vote.
Factor 5: Describe whether the interest or benefit was present before the affected person was on the City Commission.
As previously stated, at the time of application, Mr. Farmer had not made an announcement regarding his intent to run for City Commission. According to the Community Development Advisory Committee process, applications were due to the City Community Development Division no later than December 3, 2012. The upcoming program year (2013) is the first year in which Just Food has applied for funding. Founded in October 2009, Just Food operated under East Central Kansas Economic Opportunity Corporation (ECKAN) until 2012 as a 501(c)3 organization, and became its own non-profit outside of ECKAN in April 2012.
The initial funding recommendations and review of applications is carried out by the Mayor-appointed Community Development Advisory Committee (CDAC), of which Mr. Farmer is not a member.
Factor 6: Describe whether undue hardship will result either to the participating jurisdiction or the person affected when weighed against the public interest served by avoiding the prohibited conflict.
As noted above, Just Food is the only agency of its type in Lawrence. The Refrigerated Box Truck project will enhance the access to healthy food alternatives for the estimated 50,000 units that will be recorded as client assistance. The expansion of the program will not only affect the Just Food warehouse site, but will also provide food choices to satellite sites at the Ballard Center, Penn House, and the Salvation Army, all of which service low-income clientele. While the program itself will still be maintained without this funding, the $5,000 worth of food that local grocers are throwing away weekly will have no chance of utilization because there will be no way to safely transport it from the stores to the Just Food warehouse and to satellite locations. Without the Refrigerated Box Truck, the amount of fresh produce, meats, and dairy that will be saved from being thrown out is severely inhibited, translating to less food and nutrition choices for the low-income clientele of Just food.
The members of the Community Development Advisory Committee (CDAC), which is the committee that determines the funding recommendations that ultimately are approved by the City Commission, received around 20 emails a piece in support of the Refrigerated Box Truck from clients of Just Food, and there were approximately six members of the public who spoke in favor of the project at the CDAC public hearing. This project has very strong public support as evidenced by these items.
Factor 7: Describe any other relevant considerations that may impact the requested waiver of potential conflict of interest.
As mentioned, Just Food is the only source of food and nutrition services to the majority of low-income residents in Lawrence and Douglas County. As the application for funding stated, “Just Food’s mission is to innovatively lead in providing solvency for hunger in Douglas County. Just Food currently spends approximately $10,000 per month on food. With an infusion of fresh, nutrient dense produce that is collected from grocery stores, Just Food will lower the cost of its food purchases, and increase the amount of nutritious food that it distributes to its clients and partner agencies. With a Refrigerated Box Truck, Just Food will be able to provide food to the clients that walk through its door, as well as deliver food to the 40+ partner agencies at an increased capacity.”
The agency has also noted that there is sufficient capacity at its warehouse location to store the food, and the truck will ensure the safe transport of the food in terms of handling and temperature consistency. There are also large numbers of volunteers that will be assisting in the process. The agency has built maintenance and service to the truck into their budget.