City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: September 16, 2024
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2024-57 Approving Joint Powers Agreement (JPA) Cooperative Agreement 2025-2028
RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2024-57, A Resolution of the City Council of the City of Gonzales Approving a Joint Exercise of Powers Agreement and Cooperation Agreement with Monterey County and the Cities of Greenfield, Marina and Sand City 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 July 1, 2025, through June 30, 2028.
BACKGROUND
The Housing and Community Development Act of 1974 provides a program of Community Development Block Grants (“CDBG”) which includes a program for entitlement grants to cities with a population of 50,000 or more and to counties that qualify as an “Urban County.” The Urban County Program (“Program”) provides annual grants to entitled cities and counties to develop urban communities and to expand economic opportunities. The U.S. Department of Housing and Urban Development (HUD) awards grants to entitlement community grantees to carry out a wide range of economic and community development activities directed towards promoting economic development, revitalizing neighborhoods, and providing improved community facilities and services. Grantees must give maximum feasible priority to activities that benefit low and moderate-income persons.
In 2021, HUD qualified a collaboration of Monterey County and the cities of Gonzales, Sand City and Del Rey Oaks as an “Urban County” for entitlement purposes. A Joint Exercise of Powers Agreement and AGENDA
ITEM
15 Cooperative Agreement (“JPA”) establishing and facilitating the grant program, with an expiration date of June 30, 2025, was executed by all of the parties. City staff has been working with Darby Marshall, Housing Program Analyst, Monterey County Planning Department, and our collaborative cities to navigate through the JPA.
It is that time in the Community Development Block Grant (CDBG) cycle when the Urban County participants need to renew the JPA and Cooperation Agreement.
REVIEW AND ANALYSIS
This new proposed JPA will include Monterey County and the cities of Gonzales, Greenfield, Marina and Sand City, and will allow the participants to continue to receive CDBG funds as an entitlement community. The City of Del Rey Oaks has dropped their participation in the upcoming cycle, and the City of Marina has come onboard. The attached Agreement is based largely on the previous JPA, but includes a few clarifications from the County of Monterey Housing and Community Development Department.
As an Urban County, the County receives a direct allotment of CDBG funding from HUD. The amount of the grant is determined by a statutory formula that uses several objective measures of community needs including the extent of poverty, population, housing overcrowding, and age of housing. If approved, the annual funding pursuant to the JPA will be distributed as follows through 2028. • A maximum of twenty percent (20%) of the allocation will be retained by the County for general administration.
• Up to fifteen percent (15%) will be set aside for Project Proposals for services. • Up to sixty-five percent (65%) will be utilized for other eligible Project Proposals sponsored by participating cities and the County in the estimated allocations shown (HUD will not confirm the actual amount of funds until after local Urban County status has been reviewed and approved):
Approximate percentage of
funding available
Total CDBG Funding
Period 2025-2028
Gonzales 4.1% $175,566
Greenfield 12.8% $547,299
Marina 10.6% $452,696
Sand City 1.7% $74,076
County of
Monterey 39.6% $1,693,834
68.8% $4,523,471
HUD has requested this Agreement be submitted no later than September 18, 2024. HUD has until September 25, 2024, to review the Agreement and sent the Urban County a letter notifying it of its status for FYs 2025-28.
Explain how the Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: The Agreement will provide a revenue source that will allow the City to continue with this Vision.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: The JPA is part of the City’s leadership, commitment, and resources to provide excellent services.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: See Vision statement above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: The JPA Agreement is one avenue to assist the City to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities.
ALTERNATIVES
Alternative – The City Council could direct staff to withdraw from the Urban County participation, yet this would likely jeopardize the other city participant’s relying on this relationship with the County. Our City’s population numbers and demographics are needed to pool with the other “Units of General Local Government (UGLGs) participants to meet federal criteria for the CDBG programs.
BUDGET IMPACT
Approval of this item will allow the City to apply $175,566 (over three fiscal years) into existing budgeted items for a cost savings, or allow us to invest/provide community renewal and lower-income housing assistance services that have gone unfunded in recent years; and apply for other potential pool funding to support housing.
CONCLUSION
Staff recommends that the City Council Adopt Resolution No. 2024-57, A Resolution of the City Council of the City of Gonzales Approving a Joint Exercise of Powers Agreement and Cooperation Agreement with Monterey County and the Cities of Greenfield, Marina and Sand City 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 July 1, 2025, through June 30, 2028.
Attachments:
1. Resolution No. 2024-57
2. Joint Exercise of Powers Agreement (JPA) & Cooperative Agreement