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2002-088-Authorizing The Town Manager To Execute An Agreement With Santa Clara County To Assist In The Undertaking Of Title I Of The Housing And Community Development Act Of 1974 RESOLUTION N0.2002 - 88 RESOLUTION OF THE TOWN COUNCIL. OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN .MANAGER TO EXECUTE AN AGREEMENT WITH THE COUNTY OF SANTA CLARA, "JOINT EXERCISE OF POWERS .AGREEMENT AND COOPERATION AGREEMENT TO UNDERTAKE OR TO ASSIST IN'THE UNDERTAKING OF ESSENTIAL ACTIVITIES PURSUANT TO 'TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED FOR THE PERIOD OF OCTOBER 1, 2002 TO SEPTEMBER 30, 2005" WHEREAS, Congress has enacted the Housing and Community Development Act of 1974, as amended;. and WHEREAS, Title I of the Act provides for a program of Community Development Block Grants; and WHEREAS, Title I of the Act makes entitlement ;grants available to cities with a population of 50,000 or more persons and to counties that qualify as an urban county; and. WHEREAS, the Town of Los Gatos is not eligible to apply directly for entitlement funds under the Act but may, by entering into a cooperation agreement with the County of Santa Clara, qualifythe County of Santa Clara as an urban county applicant and may thereby receive such funds; and WHEREAS, the parties hereto wish to enter into an agreement to enable the County of Santa Clara to apply for :and receive entitlement funds as an urban county and to establish the respective rights .and obligations of the contracting parties to such funds; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OFLOS GATOS DOES HEREBY RESOLVE that the Town Council does hereby authorize the Town Manager to execute an agreement with the. County of Santa Clara, "Joint Exercise of .Powers Agreement and Cooperation Agreement to Undertake or to Assist in the Undertaking of Essential Activities Pursuant to Title I of the Housing and Community Development Act of 1974, as Amended,. for the Period of October 1, 2002 to September 30, 2005" (attached as Exhibit A). PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 17th day of June, 2002, by the following vote: COUNCIL MEMBERS: .AYES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski, Mayor :Randy Attaway. NAYS:. None ABSENT: None ABSTAIN: None - SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: ~~ ~~U' ~ L CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA 2 JOINT EXERCISE OF POWERS AGREEMENT AND COOPERATION AGREEMENT TO UNDERTAKE OR TO ASSIST IN THE UNDERTAKING OF ESSENTIAL ACTIVITIES PURSUANT TO TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT.ACT OF 1974, AS AMENDED, FOR'THE PERIOD OF OCTOBER 1, 2002 TO SEPTEMBER 30, 2005 This Agreement, hereinafter "Agreement, is entered .into by and between the County of Santa Clara and relating to essential community development and housing assistance activities funded by the Federal government. RECITALS a. That Congress has enacted the Housing and Community Development Act of 1974, as amended; b. That Title I of the Act provides for a program of Community Development Block Grants; c. That Title I of the Act makes entitlement grants available to cities with a population of 50,000 or more persons and to counties that qualify as an Urban County; d. That City is not eligible to apply directly for entitlement grants under the Act but may, by entering into a cooperation agreement with County, qualify County as an Urban County applicant .and may thereby receive such funds; e. That the parties hereto wish to enter into this Agreement to enable the County of Santa Clara to apply for .and .receive entitlement funds as an Urban County and to establish the respective right and obligations of the contracting parties to such funds. NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Authorities. This Agreement is made. pursuant to Section 6500 and .following of the. California Government Code and constitutes an exercise of powers corrtmon to both City and County, each being empowered to carry out the purposes of the grant in their own jurisdictions. This Agreement is further made pursuant to the .Housing and Community Development .Act of 1:974, as amended. All provisions contained in this .Agreement that refer to the Housing .and Community Development Act of 1.974, as amended, which provides for the distribution of CDBG County of Santa Clara Housing and Community Development Program Joint Powers Agreement October 1, 2002- September 3q 2005 ~'~~/ funds, shall also refer to the HOME Program under Title II (the Home Investment Partnerships Act) of the National .Affordable Housing Act of 1990, as amended. 2. Definitions. The definitions below are intended to .assist the parties entering into this Agreement. For purposes of simplicity and clearer understanding, some of the definitions below have been shortened or rephrased from those set forth in the .Act :and Regulations thereunder. In the event of any conflictbetween the definitions in this Agreement and those set forth in the Act and Regulations, the latter shall govern. a. "Act": Title I of the Housing and Community Development Act of 1974, P.L. 93-383, as amended. b. "Applicant": is the County of Santa Clara .applying as an Urban County. c. "Regulations": the rules and regulations of the US. Department of Housing and Urban Development; particular reference is .made to those regulations found in 24 Code of Federal Regulations Part 570 (containing the general regulations of Community Development Block Grants) and Part 58 {containing the regulations on the Federal Environmental .Review Procedures). d. "County"; the County of .Santa Clara and through action by its Board of Supervisors. . e. ' Board of Supervisors: the legal recipient of the Community Development Block Grant from HUD and is legally responsible for the administration of the Urban County HCD .Program for Santa Clara County. f. "City": is the city or town that is a party to this Agreement; such city or town maybe referred to as a "Non-Entitlement pity," that is, a city which cannot directly apply for or receive funds through cooperation agreements with, the County. ! g. "Urban County": a county that is (1) in a metropolitan area; {2) authorized by state law to undertake essential community development and housing assistance activities w}thin its unincorporated areas, .and (3) has a population of 200,000 or more within .its unincorporated areas and units of general local government (cities) within the county with which it :entered into cooperation agreements to undertake or to assist in the undertaking of eligible activities. h. "Urban County Staff": HCD staff persons of the County and cities participating in the Urban County HCD Program. i. "Application": the application for a grant to be submitted by the County, as an Urban County, for entitlement funds under Title I of the Act: 2 County of Santa Clara Joint Powers Agreement Housing and Communtty Development Program. October 7, 2002 -September 30, 2005 j. "HUD": the United States Department of Housing and Urban Development. k. "HCD": Housing and. Community Development, the Urban County's program to address housing .and community development needs of lower income persons in the County of Santa Clara.. 1. "CDBG": Community Development Block Grant, a federal program .administered by HUD which provides funding to eligible entitlement Cities and Urban Counties to address housing .and community development needs of lower income persons. m. "Grant": the CDBG funds allocated by HUD to the County of Santa Clara as the .legal recipient of the Community Development Block Grant for the Urban County. n. "HOME": the HOME Investment Partnership Program, a federal program administered by HUD `to assist in :addressing the affordable .housing .needs of lower income persons in .Santa Clara County through such means as new housing development and construction; acquisition .and rehabilitation of existing housing units; and provision of emergency rent subsidies. o. "HCD Council Committee": an advisory committee established by `the Board of Supervisors of the County to advise the Board of Supervisors on CDBG and HOME .funding activities. Its adopted role is the policy recommending body to the Board of Supervisors on the planning, :monitoring, and evaluation of the CDBG and :HOME funded projects of the HCD Program and the development of a comprehensive. coordinated housing and community development plan, as well as recommending the provision of loans and grants to .agencies and non-profit organizations. p. The HCD Citizen's Advisory Committee": an advisory committee of the CDBG and' HOME funded HCD Program established by the Board of Supervisors of the County on the recommendation of the HCD Council Committee. Its adopted role is'the policy recommending body to the HCD Council Committee on the planning, monitoring, and evaluation of the CDBG and HOME funded projects of the HAD Program, and`the development of a comprehensive coordinated housing and community development plan, as well as recommending loans and.grants for selected projects. q. Citizen Participation Plan": the plan adopted by the Board of Supervisors of the County which outlines the opportunities and process for citizen input on matters dealing with the planning, monitoring, and evaluation of the Urban County HCD projects. 3 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October i, 2002 -September 30, 2005 r. "Project Proposals": requests for an allocation of CDBG or HOME .funds submitted by eligible applicants to implement specific eligible CDBG or HOME ..activities, as defined by HUD. s. "Consolidated Plan": describes the housing conditions and ;goals to address the housing needs of lower income persons, and :identifies specific housing actions to be taken by the Urban County to address its .housing needs. The Consolidated Plan also .serves as a guide for HUD in the distribution of assisted housing resources to communities. 3. Purpose of Agreement. This Agreement is being made to meet the .requirements and purposes of the Act .and Regulations with respect to the application for an entitlement grant under Title I of the Act and to establish the respective rights of the parties to such grant. The purpose of this Agreement shall be accomplished in the manner hereinafter set forth. 4. Cooperation Agreement. The parties hereto-.agree to cooperate in undertaking, or assist in the undertaking of .essential activities as defined in the Act. and Regulations thereunder for the term of this Agreement. More specifically, the parties hereto agree to cooperate in undertaking, or to assist in the undertaking, community renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing. City and County will take all actions within their power to assure compliance with the Urban County's .certification required by Section 104(b) of Title I of the Housing and Community Development .Act of 1974, as amended, including provisions of Title VI of the Civil Rights Act of 1964; Title VIII of the Civil Rights Act of 1968; Section 109 of Title I of the Housing and .Community Development Act of 1974, and other applicable laws acid requirements of the application and grant. City and County agree, pursuant to CFR 570.501(b). that cities are subject to the same requirements applicable to subrecipients, including the requirement of a written agreement as set .forth in 24 CFR 507.503. . City understands and agrees that should it fail to comply with such requirements or with the terms of this Agreement, that funds which may be .allocated to City during the effective :dates of this Agreement maybe terminated, or reduced or otherwise limited in accordance with the Act and Regulations. All units of general local government participating in this Agreement understand and .agree that they may not apply for grants under fhe Small Cities or State CDBG Programs from appropriations for fiscal years during the period in which they .are participating in the. Urban County's CDBG Program. 4 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October 1, 2002 -September 30, 2005 All units of general local government (:e. Cities .and the County) participating in this Agreement understand .and agree that they may not participate in a HOME program except through the Urban County. All units of general local government participating in this Agreement. understand and agree that this Agreement remains in :effect until the CDBG and .HOME funds and .income received with .respect to the three-year qualification period (and in any successive qualification :periods under agreements that provide for automatic renewals) are expended and the funded activities completed, and that the County and participating units of general local government may not terminate or withdraw from this Agreement while this Agreement remains in effect. All units of general local government participating in this Agreement have .adopted and are enforcing a policy prohibiting the use of excessive force by law enforcement agencies within their own jurisdiction against any individuals engaged innon-violent civil rights demonstrations. All units of general local government participating in this Agreement have adopted and are enforcing a policy of enforcing applicable -state and local laws .against. physically barring entrance to or exit from a facility or location which is the subject of such non- vioient civil rights demonstrations within jurisdictions. 5. Administration of`Agrreement. The officers and agents of both parties will cooperate in furnishing information amid assistance necessary for the preparation, completion and filing of the County's application with .HUD in accordance with the requirements of the Act .and the Regulations. In accordance with such cooperation, the City shall annually furnish the County with the City's local plan and process for citizen participation in the development of the City's project proposals requested to be funded with Urban County CDBG:funds. The City's local citizen participation commitments will be incorporated .into the official Urban County Citizen Participation Plan. The City shall, prior to the final project proposal submission dieadline approved. by the County, submit project proposal requests for CDBG funding ~o the County-in the format developed by the County. These project proposals will include a description of the project's activities, the Urban County's .need the. project is addressing, a detailed time schedule for the implementation of the. project's activities, and other data items needed in the evaluation of the project proposal. These project proposals must be formally approved by the City council for transmittal to the County anal be developed ..and reviewed during thelocal citizen participation process. The City shall submit to the County all necessary information'required for the completion of a Consolidated Plan in the form required by .HUD. This information will detail the City's comznitrnents to providing housing assistance to ow and very low income persons within the City. The local commitments to .housing assistance by the cities will be incorporated into the Urban County's Consolidated Plan, which will be reviewed by HUD to determine the local commitments to address housing needs of low to very low income :persons. 5 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October i, 2002 -September 30, 2005 (~ ~ Whereas the County shall not alter or amend the information furnished to County in .compliance with the Act and Regulations and consistent with .identified Urban County needs and priorities, the County shall have full authority and necessary control of the preparation and filing of the application and of other papers and documents in support thereof. 6. Term of Agreement. This Agreement shall become effective upon full execution by the governing bodies of County and of City and it shall remain in full force and effect until September 30, 2005.. The County will submit to the City the Joint Exercise of Powers Agreement and Cooperation Agreement to be signed by the City if it chooses to participate in the Urban County Program. If a City decides not. to participate in the Urban County program by not signing a:Joint Exercise of.Powers Agreement and Cooperation Agreement,.it may not be eligible to .receive Urban County entitlement CDBG funding for three successive program years commencing on October 1, 2002 and ending September 30, 2005,: Upon qualifying, the County will remain an Urban County (including its unincorporated .areas and the included units of general .local government) for a period of three years. That is, during the three year qualification period no included units of general local government can be removed from the Urban County, nor can any additional units of general local government generally be included in the Urban County during that period. To assure that included units of general local government remain an effective part of the Urban County for the entire three year qualification period, this cooperation Agreement between the Urban County and its included units of general local government covers three successive program years. 7. Project Proposals. .Any and all project proposals for eligible HCD activities totall~r within the sphere of .influence of a city must be submitted to the City and considered as a part of the City's project proposal development process. No project proposals maybe submitted .directly to the County by applicants other than cities for activities to be conducted totally within the sphere of influence of a city unless applicant has notified the City of their intentions in writing. i Project proposals of a countywide nature may be submitted d~rectly to the County during its funding cycle.. Cities shall have the right to review and comment on .all project ,proposals for the :funding of countywide HCD eligible .activities. ~. Grant Disbursement. a. City understands and .agrees that CDBG and HOME funds disbursed under this Agreement are the obligation of County and that such obligation of the County is dependent upon the qualification of the County as an Urban County applicant and upon the availability of federal 6 County of Santa Clara Joint Powers Agreement Housing and Community Development Program .October 1, 2002 -September 30, 2005 funds to implement Title I of the Act. Funds disbursed to the City will be expended on eligible activities and projects selected through a process developed jointly by the HCD Council Committee and the Board of Supervisors and described in the adopted Urban. County HCD Plan. The HCD Citizens Advisory Committee will give. advice to the HCD Council Committee prior to HCD Council Committee actions. The HCD Plan includes a description of prioritized needs, strategies to address the needs, and a project funding submission and evaluation process. This process will be used to evaluate all project proposals according to their ability to address the adopted, prioritized needs and other criteria .described in the adopted Urban County HCD Plan. Parties hereto agree that Urban County funding will be prohibited .for .activities in or in support of any participating City that does not affirmatively further fair housing within .its own jurisdiction or that impedes the County's actions to comply with its fair housing certification. b . Housing has been. identified as the highest priority need within the Urban County by the HCD Council Committee and the Board of Supervisors; therefore, the City .and the County agree that all funds allocated on a competitive basis will be utilized for housing activities asset forth below. Housing needs include but are not lirruted to housing rehabilitation, activities to :increase the supply of new affordable housing, and housing- .related services which increase the availability and/or affordability of new .and existing housing. .After the deadline for submission of project proposals, the Urban County staff, composed of members of the County and-City HCD staffs, will evaluate the project proposals according to the approved criteria and make recommendations on projects to be funded.. These recommendations will be reviewed by the HCD Citizens Advisory Committee, the HCD Council Committee and the Board of Supervisors. The HCD Citizens Advisory Committee will give its advice on projects to be funded to the HCD Council Committee prior to actions of the HCD Council Committee. - The Urban County staff report and the HCD Council Committee recommendations will be reviewed at a public hearing before the Board of Supervisors. Should there be a difference of opinion between the :HCD Council Committee and the Board of Supervisors on projects to be funded, the :HCD Council Committee and the Board of Supervisors will hold meetings to resolve the differences. The meetings will continue until mutual agreement is reached. Voting separately, when a majority of the HCD Council Committee and a majority of the Board of Supervisors vote to accept specific project. proposals, mutual agreement is achieved. It is understood and agreed that as legal recipient of the grant, the County, through its Board of Supervisors, must officially approve the mutually agreed upon project proposals to be included in the application in order to 7 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October 1, 2002 -September 3q 2005 i, ensure that the program submitted to .HUD is consistent with the County's adopted housing and community development plan.. Upon approval of the CDBG and HOME application and the release of .funds by HUD, the City may begin implementation of approved activities. Information on the progress of approved activities will be submitted to the County on a quarterly basis during the program year the activities are being carried out. This information will be included in :the Urban County's monitoring .reports which are .reviewed by HUD during the program year.. Projects which fail to meet schedules according to the approved time schedule will be evaluated according to the process detailed in the :approved Urban County CDBG and HOME Reprogramming Guidelines. 9. Areas of Housing Authorit~Operafion Nothing herein shall affect the .rights-and obligations of the parties with respect to any .agreement which the City may have with the .Housing Authority of the County of Santa Clara {HASCC). 10. Services, Er~upment and Property; Reimbursement County shall provide or be primarily responsible for providing the :services, equipment and other property necessary for the planning, preparation and filing of the CDBG application and for the administration of the grant funds subject to the right of the County to .seek reimbursement for actual .expenses and costs of furnishing ouch ~~ .cervices, equipment and property. Subject to the provisions of the application or of the grant award made thereon, all property furnished by County as herein-above described shall belong to County during the term of this agreement and after its termination. At the termination of the CDBG program, all ;property ..and equipment acquired with CDBG funds will be subject to the requirements and conditions of OMB Circular A-1.02 Attachment N, Property Management .Standards. 11. Program Income. a, The City shall inform the County of any income generated by the expenditure of CDBG funds received by the City. b. Any such program income generated by the City must be either: paid to the County or the City .may retain the program income subject to requirements et .forth in Santa Clara County Community Development Block Grant Program Reallocation Guidelines. c. Any program income the City is authorized to retain may only be used for eligible activities in accordance with all CDBG requirements as may .apply. 8 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October 1, 2002 -September 30, 2005 d. The County has the responsibility for monitoring and reporting to HUD on the use of any :such program income, thereby requiring appropriate record keeping and reporting by the City as may be needed for this purpose. e. In the event of close-out or change in tatus of the City, any program income that is on hand or received subsequent to close-out or change in status shal'1 be paid to the County, with the exception of program income generated by an approved rehabilitation program and held in a revolving loan fund. Such :revolving loan fund amounts shall be maintained and used for housing rehabilitation activities that meet all existing and subsequent HUD regulations and .requirements.. All .rehabilitation activities must benefit low and moderate income households. The purpose of this provision is to enable the City to continue a housing rehabilitation program in the event of close-out or a change~in status of the City. Such program income shall not be used for any purpose other than housing rehabilitation for the benefit of low and very low .income households. On an annual basis the City shall submit to the County written certification that such program income shall be used for these established housing rehabilitation purposes. 12. Records. City .and County shall maintain appropriate. books, .records, files, and .accounts relating to the receipt and disbursement of the grant funds, including records in accordance. with 24 CFR Sec 570..503 as they relate to the application,. acceptance, and use of federal funds for this federally assisted program and any other records imposed by County's contract with HUD. All such books, records, files and accounts shall be made available for inspection at reasonable times and places by authorized representatives of City County, and Department. of .Housing and Urban Development or :any other person authorized by the Act or the Regulations. The Director of Finance of the County shall receive and have custody of all funds until disbursal of such funds to be made in a manner designated by the County. County shall, by a date n~o later than 7 days after receipt of the current year funding money, notify City of the 'manner of disbursal of such funds. 13. Liability and Indemnification It is expressly understood that, as the applicant to HUD, County must take the full responsibility and assume all obligations of an :applicant under the Act and that HUD will look only to the County in this regard. However, Country .assumes no responsibility towards City for any failure to include City in the application as a result of City's failure to supply County with information necessary, to prepare and file the application, or as a result of City's failure to supply County with such information, upon designated dates, or as a result of City's failure to comply with the Act .and the Regulations. 9 County of Santa Clara Joint Powers Agreement Housing and Community Deuelopment Program October 1, 2002 -September 3q 2005 Mutual Indemnification For Agreements Between Public Entities In lieu of and notwithstanding the .pro rata risk allocation which might otherwise be imposed between the Parties pursuant to Government code Section 895:6, the Parties agree that all .losses or liabilities incurred by a party shall not be shared pro rata but instead the County and City agree that pursuant to Government Code Section 895.4, each of the parties hereto shall fully indemnify and hold each of the .other parties, their officers, board members, employees and agents, harmless from any claim, expense or cost, damage or liability irxlposed for injury (as defined by Government code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, :its officers,. employees or agents, under or in connection with or arising out of any performance of obligations required by this Agreement, the Act, Application, Regulations or other applicable laws relating to this Agreement delegated to such party under this Agreement. No party, .nor any officer, board member, employee or .agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful .misconduct of the other parties hereto, their officer, board members, employees or agents, under or in connection with or arising out of any performance of obligations required by this Agreement, the Act, Application, Regulations or other applicable laws :relating to this Agreement delegated to such other parties under this Agreement. .Liability of Member Entities for Contractual Obligations of the JPA The parties hereto expressly :agree that solely the jPA itself, and .not its member entities shall be legally responsible for the contractual obligations, debts, iabilities and spzcific debts of the JPA. The purpose of this provision is to .follow the direction stated in Government Code section 6508.1 and specify in this Agreement that the JPA member entities shall not be individually responsible for the debts, liabilities, and obligations of the JPA. 14. Discretionary Actions. Nothing herein contained shall be construed to prohibit the City from :exercising its discretion on any legislative quasi judicial and/or administrative matter (including but not limited to any action involving zoning of General Plan amendments). Nothing herein shall compel the City to take. any action on :any matter save and except as expressly required in this Agreement. It°is understood and agreed that the City does not by this Agreement commit itself or delegate the exercise of any of its police"powers in anymatter whatsoever save and except as expressly set forth in this Agreement. 15. Timeliness. When any action is required hereunder upon request for action on a document or material .furnished by the County to the City said request for action on a document or material shall be furnished at least 30 days prior to the date said action is required in order to allow sufficient time for the City to review and act on said document or material. Time is of the essence in this Agreement. 10 County of Santa Clara Joint Powers Agreement Housing and Community .Development Program October 1, 2002 -September 30, 2005 { 16. Severablty. Should any part, term, provision of this Agreement be judicially determined to be illegal or in conflict with any law of the State of California or any law of the United States, or should any part, term, or provision of this Agreement be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions or provisions shall not be affected thereby. 17. Section Headings. All section headings contained herein are for the convenience of reference only and are not .intended to define or limit the scope of any provision of this Agreement. 18. Notices. Any notice, tender, or delivery to be given hereunder by either party to the .other may be effected by personal delivery in writing or by certified mail, return receipt requested. Mailed notices shall be addressed as set forth below. Each party may change its address by written notice in .accordance with this Section. IN WITNESS WHEREOF, parties hereto .have executed this .Agreement on the dates set :forth below. CITY/TOWN OF By: Mayor (Print .name) City/Town Council Attest: By: City/Town Clerk Approved as to form and legality: By: Date: JPA - 10,/1/02 to 9/30/05 whm/may 21, 2002 City/Town Attorney COUNTY OF SANTA CLARA By: CHAIRPERSON Board of Supervisors Attest: By: Clerk, Board of Supervisors Approved as to form and legality: By: Lead Deputy County Counsel 91 County of Santa Clara Joint Powers Agreement Housing and Community Development Program October 1, 2002 -September 30, 2005