HomeMy WebLinkAboutMinutes 040996Approved as Submitted
Meeting Date: 04/23/96
ATASCADERO CITY COUNCIL
APRIL 9, 1996
MINUTES
The Mayor called the meeting to order at 7:00 p.m. Councilperson Luna led the
Pledge of Allegiance.
ROLL CALL:
Present: Councilmembers Carden, Johnson, Luna and Mayor
Highland
Absent: Councilmember Bewley (excused)
Also Present: Rudy Hernandez, City Treasurer and Lee Price, City Clerk
Staff Present: Andy Takata, City Manager; Steve DeCamp, City Planner;
Doug Davidson, Senior Planner; Art Montandon, City
Attorney; Geoff English, Recreation Supervisor; Brad
Whitty, Finance Director and Sgt. Cynthia Reid, Police
Department
PRESENTATIONS:
Proclaim April 1996 as "Public Schools Month
The Mayor read and presented the proclamation to Mike McCain, who accepted on
behalf of the local Masons.
Millhollin Mine Update
Steve DeCamp provided status on work currently being done on the amended
reclamation plan and draft operations agreement. He explained that the matter will
be brought forward in a few weeks.
A. CONSENT CALENDAR:
1. CITY COUNCIL MINUTES - March 12, 1996
(City Clerk's recommendation: Approve)
2. RESOLUTION NO. 24-96 - Authorizing the execution of a Master Card
Agreement with Mid -State Bank
(Staff Recommendation: Adopt)
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3. TENTATIVE TRACT MAP 21-89, 8555 EL CORTE - Reconsideration of a
previously approved tentative tract map to include modification of the
proposed lot configuration and the Conditions of Approval (Chalk Mountain
Village Assoc./Bunnell)
(Staff Recommendation: Approve)
Councilman Luna pulled Item #2 for questions.
MOTION: By Councilman Luna, seconded by Councilman Johnson to
approve Items #A-1 & A-3 on the Consent Calendar; motion
passed 4:0 by roll call vote.
Re: Item #A-2. RESOLUTION NO. 24-96 - Authorizing the execution of a
Master Card Agreement with Mid -State Bank
(Staff Recommendation: Adopt)
Councilman Luna asked staff to justify why the City needs to have a credit card
and requested the interest rate. Brad Whitty explained that because the card is
paid off monthly, there are no interest charges accrued. He reported that the
cards are used primarily by the department heads for travel, lodging and meals.
MOTION: By Councilman Luna, seconded by Councilman Carden to adopt
Resolution No. 24-96; motion passed 4:0 by roll call vote.
B. PUBLIC HEARINGS:
1. 1996 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) -
Consideration of CDBG allocation for Atascadero as part of the SLO County
Consolidated Plan
(Staff Recommendation: Approve)
Doug Davidson, Senior Planner, provided the staff report and recommendations.
He summarized the CDBG program and this year's applications. Dana Lilley, SLO
County Planning CDBG Coordinator, was present to respond to questions. Paulo
Hernandez was also on hand to provide Spanish translation services. Mr.
Davidson explained that the County Consolidated Plan will go to the Board of
Supervisors for final approval in two weeks. Council questions and comments
followed.
Councilman Luna commented that while he does not support Application #8
(Program Administrator/Economic Development Manager), he could support the
revolving loan fund (Application #7) if the Council receives an outline in writing of
how the funds will be administered. Councilman Carden concurred and suggested
that a follow-up agenda item be brought back before implementation that would
establish various criteria. Mayor Highland mentioned that he feels that the
emphasis should be on the downtown core. Councilman Johnson commented that
he would not like to preclude other viable businesses simply because they are not
in the downtown area. He explained that he supports approval of the Economic
Development Manager position and spoke in favor of moving forward.
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Public Comments:
Virginia Powers, 7505 Carmelita, encouraged the City Council to approve the
Youth Center funding request, as recommended.
Roberta Fonzi, 7880 Sinaloa, spoke in opposition to approving funds for the
revolving loan fund and the Economic Development Manager. She observed that
the CDBG program is to promote the upgrade of community housing.
Mike Piwowarski , representing the EOC and its' application for Senior Home
Repair Program (#15), summarized the numerous home repairs provided and spoke
in support of funding. He reported that that other local jurisdictions and the
County have approved funding.
Alfred Fonzi, 7880 Sinaloa, shared concern that the Council may be giving public
funds to private business if they approve #10 (Innovative Development Center)
and voiced disapproval of allocating any portion of the City's grant to hire an
Economic Development Manager. He suggested that the Council go back to the
original purpose of the grant program.
Leonard Brodders, representing Peoples' Self Help Housing, spoke in favor of
approving Application #12 (Oak Leaf Homes) and expressed concern that the
Council may be voting to approve a half -million dollars over the next four years if it
approves funding the revolving loan fund. He stressed that the CDBG program is
for housing.
Sheree Ricketts, 7465 Sycamore Road, asked the City Council to approve the
allocation for the Youth Center, as recommended by staff.
Michael Blank, attorney for California Rural Legal Assistance, asserted that the
Council is not awarding any money for purposes of affordable housing and
proclaimed that the City is not following its own Housing Element. He explained
that the Peoples' Self Help Housing project application has been before the Council
for three years and no monies have been approved. Mayor Highland reported that
the funds have to be spent by 1997 and asked the speaker if the project could be
ready by then. The speaker commented that he does not represent Peoples Self -
Help and added that his understanding was that the money has only to be
appropriated. Doug Davidson clarified that there is some flexibility of about 6
months.
A representative from the California Rural Legal Assistance spoke in support of the
Peoples' Self Help Housing proposal.
Vicki Walker, Alcantara resident, commented that she would like to see more low
income housing available in the City of Atascadero.
Terry Lynn Hardy, Lenore Vass and Rachel Sackbe spoke in support of Application
#16 (Fire Safety at California Manor) and submitted a revised funding request
breaking the project down into two phases; Phase I totaling $82,971 and Phase II
costing $55,314 (on file in the City Clerk's Office).
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Deana Reynolds, Robin Renfro, Charles Prim, Victoria Randall, Alexa Adams and
Wade Welsh spoke in support of Application #3 (Recreation Access Project (RAP)).
Barbara Newsom, 5185 Atajo, spoke in support of the Teen Academic Program
(#18) and encouraged re -consideration.
Stan Cherry, 5350 EI Verado, spoke in support of Application #10 (Innovative
Development Center) and urged approval.
Dwight Huffman, 5943 Traffic Way, explained that Application #10 is a non-profit,
not private, enterprise and submitted a statement of support signed for four
individuals (see Exhibit A).
RaeBelle Gambs, 7460 Encinal Avenue, submitted a prepared statement
advocating the funding of four housing programs. In addition, she commented
that the Fire Exhaust System (Application #6) should be paid for out of the Fire
Department or General Fund budget.
David Low, resident and owner of the Casitas Motel at 5323 EI Camino Real,
spoke in favor of his application (#14) for frontage improvements and encouraged
the Council to support low-income housing.
Joan O'Keefe, 9985 Old Morro Road East, commented that she was opposed to
funding the position of Economic Development Manager and stated that she
considers it an abuse of the intended funds. She urged compassion to those who
need affordable housing and suggested that staff work closely with applicants so
that their requests meet the criteria and requirements of the CDBG program.
Rush Kolemaine, 4850 Potrero Road, summarized his prepared statement (see
Exhibit B).
-end of public testimony ---
The mayor called a recess at 8:55 p.m. At 9:07, the meeting reconvened.
Councilman Luna suggested that the City Council recommend to the Board of
Supervisors, that they, because of regional benefit, include on the list of Special
Urban Projects Applications #2 (Tot Lot Replacement Project) and #5 (Charles
Paddock Zoo Aviary ADA Improvements) in addition to the Womens' Resource
Center (#11), as recommended by staff.
Councilmembers Luna and Johnson requested that, in the future, staff set the
annual public hearing and allocation process earlier to allow ample time for review
and consideration.
Councilman Johnson commented that, as the chairman of the Economic Round
Table, he supports the Economic Development Manager position. He also
explained that he could support some minimal allocation to the Senior Home Repair
Program. Councilman Johnson recommended to staff that they convey to
applicants requesting a large sum of money to consider phasing their projects and
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project applications.
Councilman Luna concurred with Councilman Johnson's recommendation to
allocate some funds to the Senior Home Repair Program.
The following actions were taken:
MOTION: By Councilman Carden, seconded by Councilman Luna to add
Items #5 & 2 (in addition to the North County Womens'
Resource Center #11) to the list of Special Urban Projects;
motion passed 4:0.
MOTION: By Councilman Luna to debit the revolving loan fund
($100,000) by $20,000 and allocate the $20,000 to the Senior
Home Repair Program.
Discussion on the motion: Brief debate ensued regarding the amount to be
allocated.
Motion amended: Councilman Luna amended his motion by changing the
amount from $20,000 to $15,000; motion seconded by Councilman
Johnson; motion passed 4:0.
MOTION: By Councilman Luna, seconded - by Councilman Carden to
approve Items 1, 3, 4, 6, 10, as recommended by staff; motion
passed 4:0.
MOTION: By Councilman Carden, seconded by Councilman Johnson to
approve Item #7 at 85,000 and Item #8 at 47,415 with staff
direction to come back with proof that the projects will meet
the necessary criteria; motion passed 3. 1 (Luna).
There was consensus that the Revolving Loan Fund shall be for the core business
area, consistent with General Plan, with non-exclusive priority.
2. GENERAL PLAN AMENDMENT 95009/ZONE CHANGE 95011 /CONDITIONAL
USE PERMIT 95007, 1200-1800 EL CAMINO REAL (Christ Chapel/Levitz)
A. Resolution No. 17-96 - Approving an amendment to the Land Use
Map by including the properties designated Public from 1200 to 1800
EI Camino Real
(Planning commission Recommendation: Adopt)
B. Ordinance No. 303 - Amending the official Zoning Ordinance text to
create a new land use description of "mini -storage", designate "mini -
storage facilities", "vehicle and equipment storage" and "recreational
vehicle parks" as conditional uses in the Public Zone and to revise the
side setback requirements of the Public Zone
(Planning Commission Recommendation: Motion to waive reading
and introduce on first reading, by title only)
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(Planning Commission Recommendation: Approve, subject to revised
Conditions of Approval)
Doug provided the staff report and recommendations to approve. Council
questions and comments followed.
Public Comments:
Applicants Jerry Levitz and Marvin Souza spoke in support of the proposed project
and outlined their vision for the project.
Representing the applicants, John Faulkenstien of Canon Associates, availed him
self for questions and requested approval.
Richard Shannon, local real estate agent marketing the property on behalf of Christ
Chapel, spoke in support and encouraged approval. Councilman Luna asked who
would pay the costs of the wastewater pump station. Doug Davidson explained
that the costs would be borne by the developer, who would enter into a
reimbursement agreement similar to that of others, like the Factory Outlet.
Jack Stinchfield, co -applicant (Elks Lodge of Atascadero), spoke in favor of the
project and requested flexibility regarding the sewer system. He explained that full
installation of the sewer would require a pump station and burden the Elks with
excessive costs to install the line. He requested that hook-up to the RV Park be
deferred.
Lloyd Conner, 1375 EI Camino Real, spoke in opposition to the application for a
mini -storage facility so close to a residential neighborhood.
The City Clerk read a statement of opposition to the zone change sent in by Mary
Boysdorfer of 1325 San Ramon Road.
Jerry Levitz spoke for a second time and addressed some of the concerns
expressed.
---end of public testimony ---
Doug Davidson clarified that the Conditions of Approval require sewer only to the
mini storage site.
MOTION: By Councilman Carden, seconded by Councilman Johnson to
approve Resolution No. 17-96; motion passed 4:0 by roll call
vote.
MOTION: By Councilman Carden, seconded by Councilman Johnson to
waive the reading in full and introduce Ordinance No. 303 on
first ready by title only; motion passed 4:0 by roll call vote.
MOTION: By Councilman Carden, seconded by Councilman Johnson to
approve Conditional Use Permit 95007; motion passed 4:0 by
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roll call vote.
3. ORDINANCE NO. 304 - Amending Chapter 13 to Title 6 of the Atascadero
Municipal code relating to the removal of weeds, rubbish and similar
materials
(Staff Recommendation: Motion to waive reading and introduce on first
reading, by title only)
Mike McCain summarized the primary revisions to the weed abatement policy and
recommended adoption. Council questions and comments followed.
Mayor Highland indicated support for revisions made to the letter to property
owners. Councilman Luna requested clarification of language relevant to the
destruction of weeds by burning. Chief McCain advised that it is unlawful) to burn
standing grass and explained that property owners may burn trimmings pursuant
to adopted burn regulations.
There was no public comment.
MOTION: By Councilman Johnson, seconded by Councilman Carden to
waive the reading in full and introduce Ordinance No. 304 on
first reading; motion passed 4:0 by roll call vote.
4. RESOLUTION NO. 13-96 Approving the Solid Waste Franchise Agreement
between the City and Atascadero Waste Alternatives, Inc. (formerly Wil -Mar
Disposal, Inc.)
(Staff Recommendation: Adopt)
Brad Whitty provided the staff report and recommendation to adopt. He
summarized the primary revisions to the franchise agreement and outlined rate
increases as proposed by Atascadero Waste Alternatives, Inc. (formerly Wil -Mar
Disposal Company, Inc.).
Council questions followed. Andy Takata noted that the county of San Luis
Obispo has increased their franchise fee from zero to ten percent. He noted that
the City's franchise fee is recommended to remain at 5%.
Public Comments:
Michele Velasco, Recylcing Coordinator for Atascadero Waste Alternatives,
provided an update on the recycling program.
David Smith, CPA representing Atascadero Waste Alternative, Inc., responded to
inquiries regarding prudency review for capital investments and equipment costs
associated with recycling and green waste pick-up.
William Zimmerman, 6225 Lomitas Road, expressed concern about the rate
increase and pointed out that there is no competition for the service.
A Tiberon Circle resident also shared concern regarding the rate increase and
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requested clarification about an additional pay period. David Smith explained the
new rate structure and schedule. He explained that there is a 9.59% overall
increase in the cost for service.
---end of public testimony ---
MOTION: By Councilman Carden, seconded by Councilman Johnson to
adopt Resolution No. 13-96, motion passed 4:0 by roll call
vote.
C. REGULAR BUSINESS:
1. REPORT ON YOUTH CENTER SEISMIC RETROFIT FINANCING/FUNDRAISING
PLAN
(Staff Recommendation: Review and provide direction
Geoff English provided the staff report and summarized the building renovation
funding plan. Staff is requesting endorsement of the plan as presented, he noted.
Councilman Carden commented that he is still very suspect of the costs and asked
if any other bids had been obtained other than that of the architect's. Geoff
English reported that no other bids had been received and pointed out that
historically the community comes forward with donations of labor and some
materials for construction in projects like this.
Councilman Carden indicated concern that actual costs will be higher than those
proposed. Councilman Johnson agreed and pointed out that inflation will also
drive up the costs over the number of years it will take to do the improvements.
Geoff English suggested that some of the funds could be put aside in a Certificate
of Deposit to help off -set inflation costs.
MOTION: By Councilman Luna, seconded by Councilman Johnson to
continue the meeting past 11:00 p.m., motion carried
unanimously.
Public Comments:
Rush Kolemaine, 4850 Potrero Road, speculated that the plan will not fulfill the
needs of the community, but commented that he hopes that the City can
accomplish it sooner than projected.
Rick Mathews, 6950 Navarette Avenue, President of the Atascadero Recreation
Center Committee (ARCC), urged the endorsement of the plan. He asserted that it
provides a vehicle for fund-raising and the provision of a youth center.
Joan O'Keefe asked how much of the City's funds have been spent on the Youth
Center to -date. Andy Takata added that the City spent $1,300 for the escrow.
Geoff English noted that the budget is presently balanced and clarified that the
revenues are covering the expenditures. Ms. O'Keefe spoke in favor of the plan
and mentioned that she supports continued efforts.
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Marj Mackey, 5504-A Tunitas Avenue, voiced support for renovating the building
for the purpose of use as a Youth Center. She announced that she has sent for
and received the necessary paperwork to apply to put the building on the National
Register and pointed out that it meets the requirement. She requested permission
to pursue by filing the documentation.
Also speaking in favor of the plan for renovation and urging approval were Vallie
Mathews, George Beatie, Susan Warren and Barbie Butz.
---end of public testimony ---
Councilman Johnson indicated that his main concern is that the costs not be
under -estimated. Councilman Luna emphasized that grant monies are an important
part of the fund-raising efforts and proposed that City staff get together with Marj
Mackey to pursue the application process for placing the building on the National
Register.
MOTION: By Mayor Highland, seconded by Councilman Luna to endorse
and support the financing/fundraising plan; motion passed
unanimously.
D. COMMITTEE REPORTS (The following represent standing committees.
Informative status reports were given, as follows):
1. County Water Advisory Board/Nacimiento Water Purveyors Advisory Group -
Mayor Highland reported that the County Water Advisory Group had met
the previous week to review proposed revisions to the Agriculture and Open
Space Element of the County General Plan as it relates to water. He also
reported that the Nacimiento Water Purveyors Advisory Group met the same
day.
2. Air Pollution Control District - Mayor Highland reported that the APCD would
meet the following day.
3. North County Council - Mayor Highland announced that the Executive
Committee would meet on Thursday, April 18tH
4. Ad Hoc Regional Water Management Committee - Mayor Highland reported
that this group has adopted a Regional Water Management Mission
Statement, which is on the agenda for the North County Council Executive
Committee meeting on April 18tH. He noted that the ad hoc committee will
also seek approval from the City Councils of Paso Robles and Atascadero,
Templeton Community Services District and Atascadero Mutual Water
Company.
5. Integrated Waste Management Authority Councilman Luna reported that
the IWMA had recently received a grant for the recycled oil program.
E. INDIVIDUAL DETERMINATION AND/OR ACTION:
1. City Council
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1
Mayor Highland announced that all seven cities in the County would be meeting on
April the 25t' and requested that staff bring back for discussion the appointive
versus elected City Treasurer on the next agenda.
2. City Clerk: Update on Building & Construction Board of Appeals
Recruitment
The City Clerk reported that two terms have expired on the Board of Appeals and
noted that one vacancy is for a general contractor member, while the other is for a
structural engineer or architect. She indicated that there were two applicants
seeking appointment as the general contractor member and the incumbent, Robert
Fisher, has re-applied for the architect's position.
The City Council agreed to: 1) waive the interview and re -appoint Bob Fisher to
the Board of Appeals, and 2) interview candidates John Vial (incumbent) and
Robert Reichek at 6:00 p.m. on Tuesday, April 23''d just prior to the regular
meeting.
2. City Manager
Andy provided an overview of the next meeting's agenda.
The meeting was adjourned at 11:31 p.m.
THE NEXT MEETING OF THE ATASCADERO CITY COUNCIL WILL BE TUESDAY,
APRIL 23, 1996 AT 6^00 P.M.
MINUTES RECORDED AND PREPARED BY:
LEE PRICE, C.M.
CITY CLERK
Attachments: Exhibit A (Innovative Development Center)
Exhibit B (Kolemaine)
Exhibit C (Gambs)
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EXHIBIT A
Innovation Development Center
"A Place for Success"
Notes for City Council Meeting of April 9th discussing allocation
of CDBG grant funds received from HUD.
Chairman of the Board of Directors of Innovation Development
Center, Richard S. Lane :
"We support this method of leveraging of Federal funds to improve
the economic climate of Atascadero. We commend the City of
Atascadero for it's foresight and support of economic development
and assistance for small business here."
Director, Innovation Development Center, John Himes:
"I strongly believe in the concept of a business incubator and
believe that it will be a positive force in the economic
development of Atascadero."
Director and Volunteer CEO, Innovation Development Center, Dwight
Huffman:
"We believe in the concept of a business incubator and its
benefits to Atascadero by assisting small businesses to succeed.
It should be noted that the CDBG funds are Federal funds and not
City funds."
Shaku Daswani Huffman, Manager, Innovation Development Center
"By approving this grant, Atascadero remains a leader of economic
development on the Central Coast since we have learned that
almost every city in San Luis Obispo and Santa Barbara Counties;
is starting discussion of developing their own business
incubator.
We will provide the City with the stipulated reports in a timely
manner."
5943 Traffic Way, Atascadero, CA 93422 (805) 461-1053
dhuffman@slonet.org
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„
EXHIBIT B
R. S. Kolemai ne / P.o. sox i seo / Awm:adlem /cA 93423.i 90 (805) 4w-8zuo r evenbgg=Lcarn e
T4: Atascadero City Council
DATE: 09 April 1996 , n
SUBJ: 1996 CDBG Grant Applications
Gentlemen:
With reference to the staff recommendations provided you in their report on the above, T
would like to make the following observations
13 A. Requests #8 and #9:
The staff recommends, among other recommendations, Council approve a City application for
funding in the amount of only $47,415 for "Econ Dev./Admin" (Request #8) for six months funding
for a City Economic Development Manager, including administration of the CDBG program. Staff
later in it's report states that (a) this request is similar, if not identical to Request #9 for $116,000
submitted by myself on behalf of the creation of an economic development capability within the City
government, and (b) further alleges that "other revenue sources will have to be found because
administration and personnel is limited to 20% of the total [CDBG] grant."
Both of these statements leave much to be desired in a search for accuracy and clarity.
For all it matters, precisely speaking, (a) the staff -generated application for $47,415 was generated as
a duplication of my own application, first submitted in the CDBG cycle of two years ago, and (b) the
proposed program fully complies with HUD guidelines with regard to use of funds, including a
$22,000 set-aside for administration purposes. (see Application p.3)
In simplest terms, the staff has clearly misunderstood the nature of the function as regards
establishment of an Economic Development capability within the City.
As referenced in application Request #9, the $116,000 (an increase from the $87,000
recommended in 1994) meets national objectives as defined under s570.205 describing "eligible
planning, urban environmental design and policy -planning -management -capacity building activities"
(Application p.4(a): federal wording) and is therefore exempt from the staffs perceived 20%
limitation as defined under s570.206. As further stated in Request #9,:
"Specific planning activities would consist of data gathering, studies,; analysis, preparation of pians and
identification of actions, with initial emphasis on: comprehensive plans [s570.205(a)(1)], functional plans
for economic development [670.205(a)(3)(11i)], and other plans and studies [s570.205(a)(4)] including
+ strategic and action programs to implement plans, including but not limited to the development of codes,
ordinances and regulations [s570.205(a)(4)(01 and poiicy_piam**management-capacity building
activities as provided under [s570.205(a)(6)(1 through 5, inclusive)).
Supplemental to this program, based on the results of the above, this program expects to seek
additional CDBG and other funding in future years to fuif ll'. needs identified as meeting CDBG
requirements described under s570.208."
The staffs error with this regard mightbeattributed to the fact that it's members are unfamiliar
with the nature of municipal economic development, an activity never previously undertaken in the
City of Atascadero, or a failure to review the job description requirements submitted through the
City's Economic Task Force, but in either event, the City has needed this vital capability for several
years, CDBG funding is available for this activity, and a continued failure to adequately fund the
necessary staffing for this position can only prolong the City's current fiscal dilemma.
Accordingly, while I support the City staff application for the $47,415 in CDBG funding as ,
being better than a poke in the eye with a sharp stick, the full year (and subsequent annual available
funding for up to three years) funding of $116,000 would be preferable, and a wiser policy decision for
the Council. (COWhWed)
�(. City Council
09April 1996
c Page Two
(Continued)
❑ B. Request #7:
The staffs recommendations to establish a revolving loan fund of $100,000, increasing
eventually to $400,000 over the next four years, does parallel a similar program undertaken by SLO
County government and tentatively approved by the Board. of Supervisors only this morning at about
11:30 am. The Supervisors expressed a concern, which. I share, that this loan program meet federal.
guidelines requiring the establishment of at least one job for a low income person for each $35, 000
loaned For their $100,000 in CDBG funds, the EVC proposes to create a total "ofseven (7) jobs, an
unexplained number of positions. The supervisors have requested better explanation of this number and
type of jobs, plus a clear and specific report on the actual results from their program.While I am.
wholeheartedly supportive of the: program in concept; I also expect to see such explanation of goals
together with measurable results reported publicly and regularly.
For this reason, I feel it incumbent on the City to process loans, or establish criteria for County
processing, within parameters that clearly define the City's goals and expectations, and CIZ"Y
priorities, (as opposed to those of the County's EVC) if processing is done for the Atascadero
Economic Development Commission by the County.
❑ C. Request #10:
With regard to the third major grant application aimed toward economic rehabilitation of
Atascadero, Request #10, I have a personal misgivings with regard to the extent tax money is provided
to support a private enterprise. To the extent the support for the Huffman private incubator activity
meets with City goals expressed within the City's Economic Development Element, and provides a
public/private partnership effort supportive of these stated policies, I support this application of CDBG
funds.
However, to the extent this worthwhile endeavor is not directed toward spec objective., as
would be defined by a. City Economic Development Commission and approved by the City Council, I
can not concur with any blanket endorsement of this enterprise, and would prefer to see some better
1
-and clearer linkage with this type of program with the Revolving Loan. Fund to be provided in the
above Request #7.
❑ D. Requests #1, #4 and #6:
These requests, respectively requesting„ CDBG funds for City Hall, Youth Center and Fire
Department building improvements totalling $ 65,660, appear to stretch the envelope of allowable or
desirable uses for CDBG funds, and do not appear to be worthy of.City Council approval for these
h of these may well be worthwhile projects, their connection to real
purposes., Not,withstan ' each p J
pmpo �
Y
federal goals are clearly questionable, if not specious. Given the urgency of the City's other fiscal. needs
at this time, I would recommend other funding sources be sought for these.
Respec8ifully,
i
I /
RS. K' lemaine _i'
r ; ;
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EXHIBIT C
Apri 18, 1996
Mayor George Highland
City or Atascadero
Dear Mayor Highland,
This letter addresses agenda item B. 1., 1996 allocation of $248.600 in CDBG funds for the 7
projects recommended by the Planning Dept.
To qualify for the CDBG program a project must: (i) benefit low income persons, (2) eliminate
slums or blight, or (3) relieve urgent health / welfare threats to the community when other
funds ane not availabl,e i understand that only a portion of the total funds can be spent on
projects that do not benefit low income persons. The 7 recommended projects appear to meet
criteria *2 or *3 fairly easily, and, if you really stretch it some meet :1. None of the projects
provide direct visible housing benefit to a clearly identifiable group of low income families in
the community.
The 7 projects deviate significantly from recent policies, goals, and priorities established by
the city. As an example, in its Housing Element of the General Plan Update (Resolution No. 04-
94), the City states that the primary focus of the Regional Housing Needs Plan is to provide ,
sufficient housing for low income persons because 56% of future housing needs are designated
for low to very low income families (p. VI -9). Over 70% of these low income households are
overpaying the percentage of their income devoted to housing (p. V1-13). in response to low
income housing needs, the City explicitly gives high priority to the use of its share of CDBG
funds to: (a) rehabilitation of existing housing, (b) economic development/ infrastructure
improvements, (c) downpayment assistance, (d) land acquisition, and (e) special needs housing
for the elderly (p. VI -54). To achieve these goals, the city proposes to work with for-profit
and not-for-profit organizations and agencies to construct new units,convert existing units (p.
V1-32), or rehabilitate existing units (p. Vi -46) for low and moderate income families.
1 acknowledge that not ail of the CDBG funds will be devoted to producing direct visible
housing; however a responsible approach would be to use at least 50% of the annual CDBG funds
to effect tangible housing relief for low income families.
I strongly encourage you to consider 4 proposals which do provide housing benefits to
identifiable groups of low income persons. These are: (1) Empire Apartments Access and
Expansion, (2) Atascadero Casitas Motel Street Front improvements, (3) Oak Leaf Homes
Homeownership Program, and (4) lost Oak Assisted Housing.
Respectfully,
RaeBelle Gambs, 7460Encinai Ave., Atascadero, CA
Copies: members of Atascadero City Council