HomeMy WebLinkAbout12-12-1974 City Council Minutes MINUTES
SARATOGA CITY COUNCIL
TIME: Thursday December 12, 1974 - 7:30 P.M.
PLACE: Saratoga CommunitX Cente!, 19655 Allendale Ave., Saratoga, Calif.
TYPE: CI~f~I6nal Public Hearing on Housing and Community Development
'A~t'of-'~9'7~
I. ROLL CALL
Vice MayOr Kraus called the meeting-to order at 8:00 P.M.
Present: Councilman Kraus, Councilwoman-elect Corr
II. PUBLIC HEARINGS
Community Development.Act of 1974 -- Its Impact and Potential for
the City of Saratoga
The City Manager introduced the subject by advising that on November 12,
1974, the City Council adopted Resolution 713, indicating the City"s
intent to pursue the advantages and disadvantages for entitlement funds
under Title I of the Housing and. Community DevelopmenT Act of 1974.
He explained that the Act pertains to cities with a population of 50,000
or more, as well as urban counties with a combined population of 200,000
or more, which may qualify for a "Block Grant". He indicated that in
applying for this grant, the County of Santa Clara would make appli-
cation to the Department of Housing and Urban Development. The City
Manager commented that the Community Development Act program .is a
'federal program designed toreturn federal dollars to the communities,
and indicated before'lbng.,~ approximately 50%'of t~e City's revenue
sources would come-.fr0m theIF~der~l Government.' He pointed out, however
that this propoRed revenue is not intended to be ~spent on frills, and
all proposed projects mu~t-fit into theCity's goals and objectives
during the next 3 to_4.years-.. i
Mr. Beyer then introduced.Mr.'He~drickson, his assistant,<~'$~n~'?
an overview of the Act, aS well as a'timetable for making
Mr. Hendrickson, Assistant to the City Manager, explained that the
Community Development Act is a consolidation of 6~_federal programs.
He indicated the following programs would be brought under the purview
of this Act:
1) Open Space, Urban Beautification~ and Historic Preservation Grants
2) Public Facility Loans
3) Water and Sewer and Neighborhood Facflities Grants
4) Urban Renewal'and NDP Grants
5) Model Cities Supplemental Grants, and
6) Rehabilitation Loans
He commented that the important 'thing for Saratoga is that where the
City has never been eligible for monies under any of these 6 categorial
programs, we now have a way of realizing use of these tax mgnies and
a good chance of receiving same.'
Mr. Hendrickson indicated that the purpose of this p~ogram is to
develop our urban communities and provide assistance to families whose
total annual incomes are not in excess of 80% of the area median-income
($15,000 and below).
He outlined the specific objectives 6f the Act, as follows:
1) Elimination of slums and blight;
2) !~'limination of deteriorating living conditions;
3) !~Rehabilitation or conservation activities;
4) i~reservation of historic sites or properties of special value;
5) ~B~etter utilization of land; and
6) ~blic Works and improvements.
He explained that the program'is set up on a~3-year basis for possible
funding up to $493,842, and this fohnula takes into account population,
extent of poverty, extent of overcrowding, etc.. On this basis, 80%
of the total funds available at the federal level are distributed to
metropolitan areas, including urban counties.. Mr. Hendrickson explained
the advantage of submitting the application through the County is that
the City would now be eligible for 80% allocation of funds; whereas,
if we did not choose to submit the application in this way, we would
be competing for only 20%, which is distributed to the non-m~t~YSF~rita'~n~
areas. He indicated the City would be eligible for approxima~eel~
$82,807 during the first year, and approximately $493,842 over a 3-year
period.
Mr. Hendrickson then pointed out the "Needs Assessment QUestionnaire",
outlining a series of eligible activities under this program.
He then outlined some~/~f~the ineligible activitie'~"~der this progr~l~,
such as: public facilities, auditoriums, schoolsT'~it~l~'~'~sin~
homes, transportation facilities, operating and maintenance expenses,
political activities, and construction of new homes, etc..
In order to obtain these funds, he pointed out the City must go through
an application process to: 1) develop a community development plan
which encompasses the first 3 years of community developmene needs;
2) formulate a community development program, indicating the estimated
cost of activities and general locations; and 3) development of a
Housing Assistance Plan, whereby staff memebers would survey and assess
housing needs of low and moderate income persons in the City. Mr.
Hendrickson stated that after this process is completed, there are a
series of certifications which must be signed off, such as 1) compliance
with the Civil Rights Act; 2) adequate citizen participation; 3) A-95
Review, which means the City must submit.its appl'ication to ABAG for
review and conmentvas to how it fits into the area-wide requirements
which have been established; and 4) submittal of the annual performance
report.
Mr. Hendrickson then asked for any comments from the audience.
The question was asked: "What would be the City's financial projections
for personnel staffing, etc. for this program?"
Mr. Van DuXn. ~{Ve~t~ ~f=Plan~i~g,7 ~i~d'~h~t~i~i~t~e~,
~o'f'~rogr~i~' which~a "matchin~,fUnd"~-~osi~On would be taken,--but
~ould be a~ ~tright' F~a~t! ~oojiB~' brokenZ down intg~'a- 3-ye'ar-p~og~am!.~
Another question was: "What is going to happen at the end of 3 years?"
Mr. Van Duyn replied that this is unknown, and it would depend on how
well the Community Development Act program proceeds.
The City Manager commented that you can't look at these programs separate
from the City's ongoing programs, and that it hasto relate to the
Capital improvements Program. He indicated there might be projects in
the Capital Improvements Program that might fit into the Community
Development Act Program.
A citizen asked: "Of the 16 items listed on the Needs Assessment
Questionnaire, has the County specified any of these as being the key
to winning the grant?" Mr. Van Duyn explained the money is intended
to be directed toward low and moderate-income housing,' which'would be'
determined after the survey has taken place.' He indicated the Program
should ~ddress itself to where the needs are -- this might be.a need
for some concentrated code enforcement to correct poor living.con-
ditions in particular neighborhoods.
Mr. Hendrickson pointed/.out that the Department of Housing and Urban
Development has set~a deadline date'of April 15, 1975 for receiving
applications, ~ft~'~_f~b~HUD has approximately 75 days to review the
application andY~It is his understanding that unless they have strong
reasons to question what the City has stated in its application, it
would be processed.
The question was asked: "Isn't it. possible.to use this money on a
low interest loan basis?" Mr..Van Duyn replied'if this would be
for something like the Federal Code Enforcement Program, it would be
possible to use the money in this way.
It was also asked if the money could be used in'a way to lower property
tax rates. Mr. Beyer replied it could not be used in this way as this
is not a direct tax relief program.
Azcitizen asked if there was a general overall Master Plan at the
County level of the needs, or~if~this would be determined at the City
level and then voted on by .the Board of Supervisors. Mr. Van Duyn
replied that the cities are responsible. for developing programs for
their individual needs, and not the County.
Mrs. Betty Peck asked_in soliciting the Needs Questionnaire, h0wa~_~
~~l~i~ ~cceiV~'~ny' d~t~i~l~'¥~g~ing these potential areas
Of ne~.~""Mf~h~y~'~l~'d"[ha~f' ~ person sees one area in
which he would like to receive more information, he should contact
the City Offices for this assistance.
It was asked if the City Manager could indicate his feelings as to
what some priorities might be.
Mr. Beyer indicated there are 3 a~&as which he felt might be eligible
for this grant: 1) Senior Citizen housing project (on City land);
2) Neighborhood preservation or upgrading;
3) Improve. Code Enforcement program.
Mr. Van Duyn explained that the City would be audited at the end of
the first year the program is in effect; therefore,' i-~'d~~
~~'~FgOing, it is important to plan our needs c~r~uully-so--th~i
~ef[~'f ~f[ that we can accomplish what iS intended each year.
It was asked where the City council ~tood on "retirement hodsing",
f~nd if this could'qualify as a "need". Mr. Beyer replied this could
B~ considered as one alternative; however, the Council'~ position on
this subject was that it would have to be further evaluated.
Mr. Van Duyn 'pointed out, also, this program is only applicableto
rental units and rehabilitating same and it couldn't be used to build
new units. He indicated the City could-purchase~the land,.how~ver, and
act as Lessor -- but they couldn't be used for condominium sales.
- 3 -
Mr. Beyer pointed out the Needs Questionnaire would a~pear in next
we_~e~ '~e~dition~_o~f 'the Saratoga News, an~Sf ii"~ou~"7~e'~lr..'~cu.l~'f~j~ to
~v~y~a~.r~ous 6rganizat, ions throughout the City.~H['~ndf6~t~'d~fhe question=C
naire='sh~rd'b~eturned no later than January 2nd,jn 9rder that
the~ can be presented at the January 7th hearing ~
~~fiB~as asked: "Is it possible to study this program and
decide at the end of the year whether or not We want to g~ on with
the project?" Mr. Van Du~ replied that he felt the City would have
to make a fairly good co~itment, especially during,the first year,
that they are going to proceed with a good projeqt, as HUD is only
interested in receiving "hard-core" projects.
The matter of a Land Bank was discussed, and'Mr. Van Du~ indicated
he felt this method of financing couldassu~ecan adequate piece of
property. It was his feeling this was one of the more attractive
.parts of this program. -
The City Manager indicated there. would be a. secon~ public hearing on
the Co~unity Development Act on January 7th~ and a' third hearing on
January 15th.
Vice Mayor Kraus thanked those present for t~eir co~ents and adjou~ed
the meeting at 9:00 P.M.
"~"p~ctfully submitted,
Rob