City Council: Controversial issues of CDBG $ addressed by public

March 14, 2003
Santa Paula City Council

The March 3rd City Council hearing for distribution of about $400,000 in Community Development Block Grants featured suggestions for future use as well as accusations of conflict of interest and misspending voiced before a packed house of applicants.

By Peggy KellySanta Paula TimesThe March 3rd City Council hearing for distribution of about $400,000 in Community Development Block Grants featured suggestions for future use as well as accusations of conflict of interest and misspending voiced before a packed house of applicants.John Wisda, a member of the CDBG Citizens Advisory Committee, said he felt their recommendations for allocating the CDGB funding, “represents in a meaningful way” the intent of such grants, a “change in how it was spent in the past. . .we tried to put as much as we could into the community.”A CDBG application to pave Garcia Alley was rejected by the committee due to questions on residency: Wisda said the committee was unsure if “those that live there live in houses owned by landlords” or by low-income resident owners.Wisda said that according to CDBG guidelines, funding can be used to assist for profit businesses and he suggested that Main Street merchants be encouraged to apply to “bring in more revenue and help Main Street property values. . .”Bill Mensing said he has been attending council meetings for many years, and “one thing that is prevalent is when you have a conflict of interest,” the council member or city attorney steps down citing same.“Several on the ad hoc committee for the CDBG are tied in very closely with Cabrillo Economic Development Corporation,” which the committee recommended receive $195,000 to rehabilitate Yale Street apartments for low-income housing, noted Mensing.Mensing said that having ties with the low-income developer would not necessarily sway the committee members, “but I think they should have stepped back,” by declaring a conflict and allowing other applicants that “don’t have the bankroll that Cabrillo has” to receive grant funding.
Laura Flores Espinosa, a former councilwoman and a CDBG advisory committee member, suggested that in the future the council prepare guidelines or protocol for appointments to such future bodies.“When appointing committee members one could infer rubberstamping, it diminishes the work,” of the committee. The council member making the appointment and the appointee should be cognizant that the duties are strictly advisory, she noted, and “nor would they expect that their efforts are window dressing. . .”The CDBG advisory committee members “had different thoughts and it was a very good example of consensus decision making.”Espinosa questioned city warehousing of over $500,000 CDBG grant funding for building rehabilitation and code enforcement programs and said that the city risks losing the funds.“That issue itself was the call for a programmatic and financial audit that was requested by the county,” said Espinosa. “I was dismayed to read quotes [in newspaper reports] that this is all cleared up; it’s not cleared up” and the audits should be ordered.Councilwoman Mary Ann Krause said she spoke to the county staffer who oversees the CDBG program: “She said the county had not asked for a programmatic audit and would not allow CDBG money to be used for one. . .”Espinosa said the request was “in correspondence provided to the city,” that she will share with the council.



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