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PAGE 2 <br />MAYOR AND TOWN COUNCIL <br />SUBJECT: FY 2010/11 COMMUNITY DEVELOPMENT BLOCK GRANT CITY-COUNTY <br />CONTRACT WITH THE COUNTY OF SANTA CLARA <br />October 11, 2010 <br />DISCUSSION: <br />The attached City-County Contract (Exhibit A to Attachment 1) covers FY 2010/11. As noted <br />above, this contract is required in order to allow the County to disburse 'CDBG funds to the <br />Town. The Town cannot receive any reimbursement of eligible CDBG expenses unless a valid <br />City-County Contract is in place. This annual contract, effective July 1, is generally provided to <br />the Town in the fall for approval and execution. <br />Exhibit H of the City-County Contract concerns the administration of the Town's Housing <br />Conservation Program, which is performed by County staff. The Housing Conservation Program <br />provides funds to income-eligible homeowners to finance essential home repairs. <br />Office of Affordable Housing <br />During the next year, the County will continue with efforts initiated last fall to reduce its General <br />Fund subsidy of the Community Development Block Grant Program. To date, the County has: <br />® Reviewed and reduced overhead costs <br />® Established a Working Group with participating cities and non-profit representatives <br />• Provided for the completion of a consultant's assessment of the CDBG program. <br />For FY 2011/12 it is anticipated that the County will reduce grants to participating cities by <br />eliminating the $15,000 provided for grant administration. Although this will have a negative <br />impact on the cities, it is hoped that software services purchased by the County will reduce the <br />administrative- impact on the cities. Cities may also be required to institute a $5,000 minimum <br />for all grants to non-profit agencies. Applications for Community Grants, including CDBG <br />grants, will be issued in January. Town staff anticipates being able to meet the County's <br />requirement without significant impact. Only one current grant recipient, Second Harvest Food <br />Bank, is under the $5,000 minimum ($4,800.) <br />CONCLUSION: <br />Staff recommends that Council adopt a resolution authorizing the Town Manager to execute the <br />FY 2010/11 Community Development Block Grant City-County Contract with the County of <br />Santa Clara. This will allow the Town Manager to sign City-County Contracts for the duration <br />of the existing. Joint Powers Agreement (the end of FY 2010/11). <br />ENVIRONMENTAL ASSESSMENT: <br />The recommended action is not a project defined under CEQA, and no further action is required. <br />