of tbe CITY OF LO S A NGE LES

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1 ~~ CRA LA BUILDING COMM UNITIES of tbe CITY OF LO S A NGE LES DATE I ocr W es t 7th Street Suite 500 Los Angeles 1 Cal ifornia r w~..., F CRA File No. Council District: Contact Person: ~ Various Neelura Bell (323) Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA Attention: Sharon Gin, Office of the City Clerk COUNCIL TRANSMITTAL: Transmitted herewith, is a Board Memorandum adopted by the Agency Board on October 6, 2011 City Council review and approval in accordance with the "Community Redevelopment Agency Oversight Ordinance" entitled: VARIOUS ACTIONS RELATED TO: Youth Policy Institute Hollywood FamilySource Center. Grant Funding Agreement with Youth Policy Institute to provide a conditional grant of up to $120,000 to increase provision of social and economic development services to residents in the Hollywood Redevelopment Project Area- Hollywood & Central Region (CD 4 & 13). RECOMMENDATION That City Council ap.proves recommendations on the attached Board Memorandum. ENVIRONMENTAL REVIEW The recommended action does not constitute a "Project" as defined by the California Environmental Quality Act (CEQA). FISCAL IMPACT STATEMENT This action is consistent with the proposed FY2012 Budget and Work Program, pending City Council Action, relating to the Hollywood Redevelopment Project area. This action will recognize and authorize expenditures of $120,000 of FY2012 Hollywood Redevelopment Project Area UDAG Retained Payment Funds from budget line item Economic Development Opportunities (HW6400) to pay for the provision of social and economic development services to the res idents of Hollywood. There is no impact on the City's General fund. Fo llowing the recommended transfer, sufficient funds will remain in the Hollywood Redevelopment Project area budget to pay their identified shares of required Voluntary Alternative Redevelopment Program (VARP) transfers to the City for remi e to the County Auditor-Controller.

2 CRA LA BUILDING COMMUNITIES cc: Sharon Gin, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Lisa Johnson Smith, Office of the CAO lvania Sobalvarro, Office of the CLA Steve Ongele, Office of the Mayor Noreen Vincent, City Attorney's Office

3 bee: Silvia Amaya Nenita Tan, Office of the City Controller Records (2 copies)

4 THE COMMUNJTY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA MEMORANDUM DATE: TO: FROM: STAFF: OCTOBER 6, 2011 CRA/LA BOARD OF COMMISSIONERS CHRISTINE ESSEL, CHIEF EXECUTIVE OFFICER BARRON MCCOY, REGIONAL ADMINISTRATOR NEELURA BELL, PROJECT MANAGER HW SUBJECT: Youth Policy Institute Hollywood FamilySource Center. Grant Funding Agreement with Youth Policy Institute to provide a conditional grant of up to $120,000 to increase provision of social and economic development services to residents in the Hollywood Redevelopment Project Area HOLLYWOOD AND CENTRAL REGION (CD 4 & 13) RECOMMENDATION(S) The CRAILA acknowledges and understands that the Supreme Court in the case entitled California Redevelopment Association v. Matosantos stayed certain portions of Assembly Bill x1-26 and Assembly Bill x1-27. Given the Court's stay and the uncertain status of such legislation, although the CRAILA is, and the City Council may be, approving certain actions as described herein, to the extent that such actions are stayed then the CRA/LA shall not execute agreements or take such actions, notwithstanding their approval hereof, until the Supreme Court has decided the case on the merits or the action is no longer stayed. That the CRAILA Board of Commissioners, subject to City Council approval: SUMMARY 1. Authorize the Chief Executive Officer or designee to execute and take any actions necessary to implement a Grant Funding Agreement with Youth Policy Institute in the amount of $120,000 of UDAG Payment Retained Funds in the economic development budget line item to pay for the provision of social and economic development service~ to the residents of Hollywood. 2. Recognize and authorize expenditures of $120,000 of FY2012 Hollywood Redevelopment Project Area UDAG Payment Retained Funds from budget line item Economic Development Opportunities (HW6400) to pay for the provision of social and economic development services to the residents of Hollywood; and 3. Waive CRAILA's Conditional Grant Policy with respect to its: (i) 10% match requirement for grants over $100,000 to non-profit entities and (ii) requirement of a Promissory note and a UCC-1 Financing Statement or a subordinated lien on real property. The Youth Policy Institute (YPI) has requested $120,000 in general operating support funding to enable it to provide additional case management services to the residents of Hollywood through its Hollywood FamilySource Center (Hollywood FSC). With the additional funding, YPI expects to be able to increase its annual services by 20% from 2,000 clients to 2,400. Specifically, YPI

5 YOUTH POLICY INSTITUTE HOLLYWOOD FSC PAGE2 plans to bolster its workforce development services and to increase its job training and placement outcomes (increasing outcome by 25% from 40 to 50 job placements). The Hollywood Redevelopment Plan has a goal to support and encourage the development of social services. Section 12 of the Plan specifically calls for expending or causing to be expended an amount equal to 10% of the tax increment available to address the social needs of the community. The Plan states that CRA/LA is authorized to provide a range of assistance including direct funding assistance and assistance in the rehabilitation or construction of new public and private facilities. In 2003, the CRAILA Board of Commissioners recommended and City Council approved the establishment of the Community Benefit Fee with UDAG Repayments for the Hollywood & Highland Project. The adopted procedures require that the developer's debt service payments, as derived from Hollywood Highland parking revenues, be paid to CRAILA and be granted to the Hollywood Redevelopment Project Area as a Community Benefit Fee. PREVIOUS ACTIONS Initial Action DISCUSSION & BACKGROUND Location YPI's service area includes Franklin Avenue on the north, Santa Monica Boulevard on the south, Normandie Avenue on the east and La Brea Avenue on the west. Borrower Entity The Youth Policy Institute (YPI} was incorporated as a non-profit agency in 1983 originally headquartered in Washington, D.C. YPJ began operating in California in YPI provides a range of education, training and technology services designed to provide families with resources needed to lift them out of poverty. Through its 125 program sites across the city, YPI serves more than 40,000 youth and adults annually. YPI's model is one of family saturation and includes place-based education and training services including charter and pilot schools, afterschool programs, job training, summer jobs for youth, physical education, adult education, computer literacy, case management, parenting, tutoring and college preparation. YPI's staff of more than 1,200 is led by its Executive Director Dixon Slingerland. Mr. Slingerland has directed YPI since During his tenure, YPI has grown to the current annual budget of $35 million. The Hollywood FSC is led by a director who oversees a staff of fifteen FTE's, including four full time Case Managers who work directly with the clients. YPI serves approximately 2,000 clients each year through the Hollywood FSC. Clients are provided with multi-benefit screening services, including 360 who receive intensive case management. Multi-benefit screening includes information to help family members get and hold a job, open a bank account, receive the Earned Income Tax Credit (EITC), obtain child care and utilities discounts, obtain low cost health and auto insurance, and obtain public assistance for their families. Other services include youth tutoring and enrichment, job training and career counseling, parenting education, financial literacy, adult education, computer literacy, and legal services. Clients also link to existing YPI programs to receive subsidized work experience, afterschool programs, and other critically needed services. FamilySource Centers

6 YOUTH POLICY INSTiTUTE HOLLYWOOD FSC PAGE3 is a program of the City of Los Angeles Community Development Department and is operated throughout the city to provide residents with support and services in their local neighborhoods and communities. In 2010, YP! was one of 21 collaboratives across the country to receive a planning grant from the U.S. Department of Education to establish Los Angeles Promise Neighborhoods in Hollywood and Pacoima. These grants are a centerpiece of the White House's Neighborhood Revitalization Initiative to use place-based strategies to revitalize neighborhoods of concentrated poverty into neighborhoods of opportunity. Promise Neighborhoods are designed to create a comprehensive continuum of education programs and family and community supports, with great schools at the center, which will significantly improve the educational and developmental outcomes of children and youth from birth through college and career, in the nation's most distressed communities. Selection Process and Sole Source YPI and Council District 13 approached CRA/LA for support to expand the critical services provided by YPI. One of the primary strategies through which the City of Los Angeles Community Development Department delivers community support services is through the establishment of 21 FamilySource Centers throughout the City. In 2009, YPI was selected through a competitive Request for Proposal process by COD to operate the Hollywood FSC, and is the only entity providing comprehensive client assessment and case management services in one central location for the residents of Hollywood. Proposed Funding and Disbursement Schedule Staff proposes providing YPI with a one-year $120,000 Grant Funding Agreement with an initial disbursement of 25% (upon execution) and an additional 25% at the end of each of the first, second and third quarters of the grant term upon the submission of documentation evidencing service to clients and progress towards the outcome of serving an additional 400 clients, including increased job placement outcomes for 10 more clients. If YPI achieves less than 80% of the quarterly and cumulative goal, each of the three quarterly payments will be withheld until the goal is reached. Because the initial payment is to be disbursed upon execution of the contract to provide YPI with upfront resources to cover the additional operational costs and because quarterly performance is measured at 80% of the goal, CRA/LA would not be able to withhold grant funds if YPI fails to meet the last quarter goal or the cumulative goal by the end of the grant term. At that point, YPI would have made satisfactory progress in each of the prior three quarters by serving at least 240 additional clients and 6 job placements. Staff is confident that if YPI has performed satisfactorily during the first three quarters it will continue to do so in the final quarter of the contract period and will meet the year-end objective. Community Benefits YPI's model of comprehensive saturation services has proven effective in lifting families out of poverty. The one-stop community service center provides residents of the Hollywood community with an opportunity to obtain holistic assessment of their needs and the development of outcome-driven personal development plans. Two of the key indicators of program success and community impact tracked by the Community Development Department for its FamilySource Centers are the extent to which the program sites have been able to increase family income and improve youth academic achievement. During the Program Year,

7 YOUTH POLICY INSTITUTE HOLLYWOOD FSC PAGE4 Hollywood FSC increased family income of 301 of its clients and 118 youth improved their academic achievement. Variances from CRA/LA Policies and/or Guidelines Staff is requesting waivers from CRA/LA's Conditional Grant Policy ("Policy"). The Policy states that Conditional Grants over $100,000 and less than $500,000 to non-profit entities require a matching expenditure of at least 10%. Additional provisions of the Policy require that the grants be secured by a Promissory Note and a UCC-1 Financing Statement or a subordinated lien on real property. Given that 90% of YPl's resources come from grant funding dedicated to specific program, YP! does not have sufficient unrestricted resources to meet the matching requirement. Therefore, a waiver from the matching requirement of the Policy is recommended. Staff is also requesting a waiver of the security requirements since, after the initial payment, each of the subsequent payments will be disbursed based upon the documentation of performance thereby minimizing CRA/LA's risk of not achieving the expected service as repayment for the funding provided. ECONOMIC IMPACT Estimated Economic Impacts Created by this Project. Estimated Permanent Jobs Created I 1 The subject action will create one direct job for an additional case manager at the Hollywood FSC. Job placements and increased family income that will be generated in the project area primarily from employment income but also from YP!'s other services such as clients obtaining Earned Income and Child Care Tax Credits and lower insurance programs are expected to have secondary and tertiary economic benefits including increased local spending that can support added jobs in local businesses. SOURCE OF FUNDS Hollywood Redevelopment Project Area UDAG Retained Payments (commonly referred to as Community Benefit Fee) Funds. PROGRAM AND BUDGET IMPACT This action is consistent with the proposed FY2012 Budget and Work Program, pending City Council Action, relating to the Hollywood Redevelopment Project area. This action will recognize and authorize expenditures of $120,000 of FY2012 Hollywood Redevelopment Project Area UDAG Retained Payment Funds from budget line item Economic Development Opportunities (HW6400) to pay for the provision of social and economic development services to the residents of Hollywood. There is no impact on the City's General fund. Following the recommended transfer, sufficient funds will remain in the Hollywood Redevelopment Project area budget to pay their identified shares of required Voluntary Alternative Redevelopment Program (VARP) transfers to the City for remittance to the County Auditor-Controller. ENVIRONMENTAL REVIEW The recommended action does not constitute a "Project" as defined by the California Environmental Quality Act (CEQA).

8 YOUTH POLICY INSTITUTE HOLLYWOOD FSC PAGE5 Councilman Eric Garcetti is in strong support of this Grant Funding Agreement. Christine Essel Chief Executive Officer By: ~~.... =:::::: ~ Dalila Sotelo Deputy Chief Executive Officer There is no conflict of interest known to me which exists with regard to any CRA/LA officer or employee concerning this action. ATTACHMENTS Attachment A Attachment B Location/Service Area Map Project Summary Report

9 ATTACHMENT A YPI HOLLYWOOD FSC SERVICE AREA

10 CRA/LA BUILDING COMMUNITIES ATTACHMENT B PROJECT SUMMARY REPORT Estimated Jobs Created: Permanent Jobs (est.): 2 Maps created by CRAILA GJS Taam Total Development Costs (TO C): $2 mlihon CRAILA Investment: $120,000 CRA/LA Investment% oftdc: 5.52% HOLLYWOOD FAMIL '!SOURCE CENTER Board Item Number: Community Benefits Board Date: 10/6/2011 ~ Enhance access to public services e Living Wage Jobs Project Location ~ Provides Social Services to Community General Boundaries- Franklin Avenue(n), Santa Monica Boulevard(s), Normandie Avenue( e) and Strategic Plan Goals Met La Brea(w) e Invest in projects and programs to provide 2,000 family-supporting permanent Proposed CRAILA Action jobs. Youth Policy Institute Hollywood FamilySource ~ Assist 300 businesses a year through Center. $120,000 Grant Funding Agreement to far;:ade programs, marketing, permit Youth Policy Institute to increase provision of expediting, public... social and economic development services to residents in the Hollywood Redevelopment CRA/LA Policies Applied Project Area HOLLYWOOD AND CENTRAL Contractor Responsibility REGION (CD 4 e Equal Benefits Additional Information N/A Living Wage CRAJLA Policies Not Applied Not Applicable to the Project Elected Officials Project Description Housing Policy, Not a Housing Project o Public Art Policy, Not a Construction Project Construction Careers & Project Stabilization, Support for the provision of social and economic Not a Construction Project development services to the residents of the Construction Jobs Local Hiring Program, Not a Hollywood and East Hollywood/Beverly Normandie Redevelopment Project Areas. Construction Project Contractor I Service Worker Retention, No Project Type Other Service Workers o Prevailing Wage, Not a Construction Project 0 Construction Category: N/A Labor Peace Agreement, Not a hotel * Child Care Project Features: o Sustainability Consultation Program (Part of Community Center CRNLA Healthy Neighborhoods Policy), Not a Constituent Services Construction Project 0 Nonprofit 0 rganization Social Service Program Developer I Participant(s) Legal Owner I Borrower: Youth Policy Institute Public Agency Partners: City of Los Angeles Community Development Department (CDD) CRAILA Project Staff Leslie Lambert, Regional Administrator Neelura Bell, Project Manager Project Activities Completed Activities: " Deal Points Meeting, 06120/11 Scheduled Activities: "' Agenda Review, 08/30/11 Board Action, 09/15111 Agreement Type(s) Conditional Grant Agreement Terms of CRAILA Investment: Project 10: Objeclive Code(s): HW6400 Data last Updated: 9/1 9/2011 Report Generated: 9/19/2011

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