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!OS GA.~pS COUNCIL AGENDA REPORT
MEETING DATE: 4/5/10
ITEM NO:
DATE: March 26, 2010
TO: MAYOR AND TOWN COUNCIL
FROM: GREG CARSON, TOWN MANAGER
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SUBJECT: ADOPT A RESOLUTION ALLOCATING COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) FUNDS TO THE TOWN OF LOS GATOS FOR
FISCAL YEAR 2010/11
RECOMMENDATION:
Adopt a resolution allocating Community Development Block Grant (CDBG) funds to the Town
of Los Gatos for Fiscal Year 2010/11 (Attachment 1).
BACKGROUND:
The Town's Community Grant program provides grants to non-profit agencies through General
Fund, Community Development Block Grant (CDBG), and other funding sources. Human
services and CDBG capital project applications are reviewed by the Community Services
Commission for recommendation to the Town Council; the Arts and Culture Commission
reviews arts, cultural, and educational service agency applications.
Beginning in FY 2009/10, the Community Grant program has provided grants on a two-year
cycle. Once every two years, agencies apply for funding, their requests are reviewed by the
Community Services and Arts and Culture Commissions, and final funding decisions are made
by the Town Council. Each agency signs atwo-year funding agreement that states that the
agency will receive the same funding amount for both years, except in the event that there is a
reduction in funds available to the Community Grant program.
DISCUSSION:
FY 2010/11 will be the second year of the two-year grant cycle, and the funds available to the
Community Grant program have not been reduced. Therefore, the Commissions did not review
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PREPARED BY: Regina°r~,., - • er
Commuri ~ - ° ervices Director
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N:\CSD\TCRPTS\201 .TCRPTS\CDBG Allocations FY1l.doc
Reviewed by: Assistant Town Manager wn Attorney
Clerk AdministratorFinance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FY 2010/11
March 26, 2010
grant applications for FY 2010/11. However, the federal CDBG program does have two
requirements that must be fulfilled: one, that a public hearing is held; and two, that a resolution is
adopted. The Community Services Commission held a public hearing at its March 25 meeting
and adopted a recommendation to the Town Council that it adopt a resolution allocating CDBG
funds for FY 2010/11, as shown in Exhibit A to Attachment 1.
Funding Recommendations
Funding amounts for the CDBG program are set by the federal government. For FY 2010/11,
the total amount available will be $134,402, a decrease of only $9 from FY 2009/10. However,
the cap on the amount that may be granted to public service agencies has been set at $26,500, a
reduction of $550. Therefore, the Commission recommends that funding for all four of the
public service agencies remain at their FY 2009/101evels, but that San Jose State University
Foundation, the one agency that receives both CDBG and General Fund monies, receive its
entire grant from the General Fund. This will allow all four agencies to remain whole, while
allowing some room under the cap for future years, when it will most likely be reduced even
further. In order to offset this impact on the General Fund, the grant to Teen and Family
Counseling Center will be reduced by the same amount ($2,410). Teen and Family Counseling
Center is on a performance-based contract, and has demonstrated with prior performance that the
resulting grant amount will be a more reasonable amount based on anticipated services.
The Commission further recommends that the allocations for general administration of the
program ($15,000), and for the services that the County provides to the Town's Housing
Conservation Program ($13,000) remain at status quo. Please see the discussion below on
potential adjustments to these allocations in the future.
Finally, the Commission recommends that the remainder of the funding ($81,762) be allocated to
an Americans with Disabilities Act (ADA) compliance project in Pageant Park, a 1.75 acre park
located behind the Civic Center. This project will relocate the existing HVAC equipment which
is adjacent to Pageant Park and construct site improvements to enhance pedestrian and ADA
access from the new Library to Pageant Park and the Civic Center. The total cost of the project
is estimated at $990,000.
Program Administration
During the last year, Santa Clara County has made an extensive review of several of its
programs, with the goal of reducing its General Fund subsidy offederally-funded programs such
as the CDBG program. The County has the lead role in our CDBG joint powers agreement,
under which the smaller jurisdictions, including Los Gatos, join together in an "Urban County"
to receive funds. The initial review has resulted in a proposed timeline of actions that the County
may take to improve efficiency and reduce costs, including the following:
Reduce or eliminate $15,000 annual allocation to cities for general administration of
their CDBG programs
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FY 2010/11
March 26, 2010
2. Set a minimum of $5,000 per grant to public service agencies
3. Limit the number of grants to public service agencies to 5 per city
4. Consider unifying all grants under a County umbrella
The Town supports the efforts of the County to make its operations more efficient. However,
some of these proposals would impact the Town's ability to administer its program. Staff will be
closely monitoring the issue.
CONCLUSION:
The Community Services Commission recommends that the Town Council adopt a resolution
allocating CDBG funds for FY 2010/11, as shown in Exhibit A to Attachment 1.
ENVIRONMENTAL ASSESSMENT:
The recommended action is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
All CDBG funds are pass-through funding from the federal CDBG Program. The
recommendation has a neutral effect on the Town's General Fund.
Attachments:
1. Draft Resolution of the Town Council of the Town of Los Gatos allocating Community
Development Block Grant (CDBG) funds to the Town of Los Gatos for Fiscal Year
2010/11 (Exhibit A).
2. Project Description, Pageant Park Americans with Disabilities Act (ADA) compliance
project.
Distribution:
Todd Capurso, Parks and Public Works Director
Catholic Charities/Long Term Care Ombudsman
Live Oak Adult Day Services
San Jose State University Foundation/The Health Place
Santa Clara County Office of Affordable Housing
Second Harvest Food Bank
Attachment 1
RESOLUTION NO.2010-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ALLOCATING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS
TO THE TOWN OF LOS GATOS FOR FISCAL YEAR ZO10/11
WHEREAS, the Town of Los Gatos receives Community Development Block Grant
funds from the U.S. Department of Housing and Urban Development through the County of Santa
Clara as anon-entitlement city pursuant to the provisions of Title I of the Housing and Community
Development Acts of 1974 and 1977, as amended; and
WHEREAS, the Community Services Commission held a public hearing and received
public testimony, and adopted a funding recommendation to the Town Council; and
WHEREAS, the Town Council considered the Community Services Commission's
funding recommendations at a regularly scheduled council meeting on Apri15, 2010; and
WHEREAS, the Town has been notified that the CDBG allocation for Fiscal Year
2010/1.1 is $134,402.
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara,
State of California, that the Town Council finds that CDBG funds are available for Fiscal Year
2010/11; and
BE IT FURTHER RESOLVED, that the Town Council adopts the recommendation of
the Community Services Commission; and
BE IT FURTHER RESOLVED, that the Town Council does hereby authorize the
expenditure of $134,402 to those CDBG programs set out in Exhibit A, attached and incorporated
herein.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 5th day of April, 2010 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N:\CSD\TCRPTS\Resolutions\2010\CDBG allocation 2010-1 l.doc
Exhibit A
Town of Los Gatos
Commuluty Development Block Grant Program
FY 2010/l l
2010/ll
2oog/o9 2009/10 Csc
Allocation Allocation Recommend.
Category I; Public Service
Catholic Charities/Long Term Care Ombudsman $ 7,680 $ 7,370 . $ 7,370
Live Oak Adult Day Services $ ].2,990 $ 12,470 $ 12,470
Second Harvest Food Bank $ 3,800 $ 4,800 $ 4,800
SJSU Foundation/Health P/ace $ 8,260 $ 2,410 $ -
Category I Subtotal $ 32,730 $ 27,OS0 $ .24,640
Category II: Housing & Other
ADA Path -Pageant Park $ - $ 81,762
ADA Path =Oak Meadow Park $ 79,361
Installation of Curb Cuts for ADA Compliance $ 65,484 $ - $ -
Urban County Rehab Services $ 20,000 $ 13,000 $ 13,000
Category II Subtotal $ 85,484 $ 92,361 $ 94,762
Administration
General Administration $ 15,000 $ 15,000 $ 15,000
Administration Subtotal $ 15,000 $ 15,000 $ 15,000
TOTAL ALLOCATIONS 133,214 134,411
N:ICSDIGRANTSIFY 2010-1 //grant sununary,xis
Attachment 2
~~A:~T PA~tKS PROGRAM
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• park Im~ravemenE Pro jccts
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.Projccf Name
Department
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Description
Location
Pageant Grounds Access Latprovement Project 1Vumber 831-12111
Design
Parks & Public Works Peojeet Manager 'Town Engn~eer; ICovhi Rohani
`I'bis project will relocate the existing I•iVAC equipment which is adjacent to Pageant Park eiid
const,uct site improvements to enhance pedestrian access from the now library to Pageant Park and
Givic Center building.
Pageant Park is a 1.75 acre park located behind the Civic Center building at the end of Villa Avenue.
prof ect This project will be completed in •three phases. Phase 1 of will relocate the existing I~'(1'AC Booting
Background tower and its associated electrical and mechanical components from the Pageant Park location to an
area behind the Civic Center building, The stand by generator will also be replaced as part of this
project. Phase 2 will consist of some site improvement work to improve access irom the new library to
Pageant Park and create an enhanced and code compliant pedestrian access to the park.
Phase 3 wilt involve the construction of a pedestrian foot bridge from the upper deck of the Civic
Center hnildiug to Pageant Park. This project will Ue completed in conjunction with the library
building construction in orderto minimize consh•uction unpacts to neighborhood residents.
At this time, only funding for design of I'ltase 1 has been identified. Any work on futut-e phases will be
dependent on the availability of future funding,
This project will. be funded tiu•ough a hansfer of 1tDA funds.
ppera#ing l:ugineering staff tone far design and oversight of this project is addressed ut the FY 201U/1 l operating
Budget Impacts budget.
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