Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/20/2017
ITEM NO: 5
DATE: JUNE 8, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE
AN AGREEMENT WITH THE COUNTY OF SANTA CLARA FOR
ADMINISTRATION OF THE URBAN COUNTY COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM
(HOME) PROGRAMS COLLECTIVELY REFERRED TO AS THE URBAN COUNTY
PROGRAM
RECOMMENDATION:
Adopt a resolution (Attachment 1) authorizing the Town Manager to execute an agreement
(Exhibit A to Attachment 1) with the County of Santa Clara for administration of the Urban
County Community Development Block Grant (CDBG) and Home Investment Partnerships
Program (HOME) programs collectively referred to as the Urban County Program.
BACKGROUND:
The Town has participated in the Urban County Program since 1975, along with unincorporated
Santa Clara County and a group of other small cities. In order to receive Urban County
Community Development Block Grant (CDBG) and Home Investment Partnerships Program
(HOME) funds as an Urban County, the County must meet certain population thresholds. The
combined population of the participating cities and the County provides the n ecessary
justification to receive the funds from the U.S. Department of Housing and Urban Development
(HUD). Specifically, the County of Santa Clara qualifies because it has a total combined
population of at least 200,000 or more from the unincorporated a reas and participating
jurisdictions. The County of Santa Clara has administered the Urban County program for the
Joint Powers Agreement (JPA) since the creation of the Urban County and is the official
recipient of the grant funds that are made available by HUD.
PAGE 2 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH THE COUNTY OF SANTA CLARA FOR ADMINISTRATION OF
THE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) PROGRAMS
COLLECTIVELY REFERRED TO AS THE URBAN COUNTY PROGRAM
JUNE 8, 2017
S:\COUNCIL REPORTS\2017\06-20-17\CDBG Grant\Staff Report - CDBG FINAL.docx 6/15/2017 10:59 AM MM
BACKGROUND (cont’d):
A municipality must have a population of at least 50,000 to be eligible to receive CDBG funds as
an entitlement jurisdiction from HUD. Through the Urban County process, the Town is able to
join with other smaller Santa Clara County municipalities and the unincorporated areas of the
County to satisfy the required population threshold. HUD requires participating municipalities
to enter into a cooperative agreement for a three-year period and allows for automatic
renewals. In Santa Clara County, the formal Urban County relationship is established through a
three-year Joint Powers Agreement (JPA) between the Town, the other participating
municipalities, and the County of Santa Clara. The other participating municipalities are
Morgan Hill, Saratoga, Campbell, Monte Sereno, Los Altos Hills, and Los Altos.
The Urban County program provides funding from HUD for activities which primarily benefit
lower income households. Previously funded activities include affordable housing
development, housing rehabilitation and conservation programs, accessibility improvements ,
and social service programs operated by local non-profit agencies. The Town typically applies
the funds towards accessibility improvements which meet the requirements by definition.
The JPA outlines the process for submitting project proposals directly to the County through a
proposed three-year funding cycle. Funding for Capital Improvement Projects (CIP) will be
considered on an annual basis. The Town is expected to receive $142,322 in Fiscal Year 2018
for one of two projects (either Bachman Park or the Los Gatos-Saratoga Adult Recreation
Center at the Town’s discretion). Staff will make a recommendation for the specific allocation
to Council at a later date. This dollar amount is significantly higher than the equal share that is
allowed under the existing JPA and results from the shared funding program established with
the other participating agencies. In future years, the Town will receive less or no funding to
allow for bigger projects in other jurisdictions.
DISCUSSION:
The County Office of Supportive Housing initiated discussions with the participating cities to
update the JPA based on a need to create a more streamlined process. In summary, the intent
of these changes is to enhance the ability to provide a more regional response to ongoing
challenges and County-wide needs. The following serves as a summary to the proposed
changes to the JPA:
PAGE 3 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH THE COUNTY OF SANTA CLARA FOR ADMINISTRATION OF
THE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) PROGRAMS
COLLECTIVELY REFERRED TO AS THE URBAN COUNTY PROGRAM
JUNE 8, 2017
S:\COUNCIL REPORTS\2017\06-20-17\CDBG Grant\Staff Report - CDBG FINAL.docx 6/15/2017 10:59 AM MM
DISCUSSION (cont’d):
1. Renewal clause allowing for automatic renewals of the JPA for subsequent three -year
periods to coincide with the County’s requalification as an Urban County. The Town will
have an opportunity to opt in or out of the JPA before the start of a new three -year
period. The intent of this change is to reduce the administrative burden and allow for
amendments in the event of a change in regulations at the federal level or change in
priorities at the local level.
2. Removed the Technical Advisory Committee (TAC) language since the County has taken
the lead in reviewing applications for funding.
3. Removed the “fair share” language that is related to the Capital Improvement Projects
(CIP). Given the continued reduction in funding, the County has been implementing a
process that pools together the CIP dollars in order to create larger projects that are
both more significant and have a higher impact on the local community. The intent of
this change is to ensure the Urban County program meets statutory spending
obligations and to identify projects that can be completed within 12 months.
4. Clarified language required by HUD related to excessive force by law enforcement
agencies. While the requirement itself is not new, a “covenant” requirement has been
added. Since the County is required to assure that each participating jurisdiction is in
compliance, the County is requesting that each jurisdiction provide confirmation.
5. The JPA has also been reorganized to better align with HUD’s requirements. Specifically,
the County has clarified that the agreement also covers HOME funding, the definition
section has been alphabetized, removed duplicate language and reformatted the ent ire
document.
CONCLUSION:
Staff recommends the Town Council adopt a Resolution authorizing the Town Manager to
execute and agreement with the County of Santa Clara for administration of the Urban County
Community Development Block Grant (CDBG) and HOME Investment Partnerships Program
(HOME) programs collectively referred to as the Urban County Program.
COORDINATION:
The report was coordinated with the County of Santa Clara Office of Supportive Housing .
PAGE 4 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN
AGREEMENT WITH THE COUNTY OF SANTA CLARA FOR ADMINISTRATION OF
THE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) PROGRAMS
COLLECTIVELY REFERRED TO AS THE URBAN COUNTY PROGRAM
JUNE 8, 2017
S:\COUNCIL REPORTS\2017\06-20-17\CDBG Grant\Staff Report - CDBG FINAL.docx 6/15/2017 10:59 AM MM
FISCAL IMPACT:
Under the terms of the JPA, the Town is eligible to apply for funding for specific capital
improvement projects annually under the County’s proposed CIP pool.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution Authorizing the Town Manager to Enter into a Joint Exercise of Powers
Agreement and Cooperation Agreement
2. Urban County Joint Exercise Powers Agreement – October 1, 2014-September 30, 2017.