How to participate: The Town of Los Gatos strongly encourages your active participation in the public process, which is the cornerstone of democracy. If you wish to speak to an item on the agenda, please follow the participation instructions on page 2 of this agenda. If you wish to speak to an item NOT on the agenda, you may do so during the “Verbal Communications” period, by following the participation instructions on page 2 of this agenda. The time allocated to speakers may change to better facilitate the Town Council meeting.
Effective Proceedings: The purpose of the Town Council meeting is to conduct the business of the community in an effective and efficient manner. For the benefit of the community, the Town of Los Gatos asks that you follow the Town’s meeting guidelines while attending Town Council meetings and treat everyone with respect and dignity. This is done by following meeting guidelines set forth in State law and in the Town Code. Disruptive conduct is not tolerated, including but not limited to: addressing the Town Council without first being recognized; interrupting speakers, Town Council or Town staff; continuing to speak after the allotted time has expired; failing to relinquish the podium when directed to do so; and repetitiously addressing the same subject.
Deadlines for Public Comment and Presentations are as follows:
Persons wishing to make an audio/visual presentation on any agenda item must submit the presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00 p.m. on the day of the Council meeting.
Persons wishing to submit written comments to be included in the materials provided to Town Council must provide the comments as follows:
o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meeting
o For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meeting o For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting
TOWN OF LOS GATOS
COUNCIL MEETING AGENDA
FEBRUARY 07, 2023
110 EAST MAIN STREET AND TELECONFERENCE
TOWN COUNCIL CHAMBERS
LOS GATOS, CA
7:00 PM
Maria Ristow, Mayor
Mary Badame Vice Mayor
Matthew Hudes, Council Member
Rob Moore, Council Member
Rob Rennie, Council Member
PARTICIPATION IN THE PUBLIC PROCESS
Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.
Rebroadcast of Town Council Meetings on the 2nd and 4th Tuesdays at 7:00 p.m.
Live & Archived Council Meetings can be viewed by going to:
www.LosGatosCA.gov/TownYouTube
IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]
TOWN OF LOS GATOS
COUNCIL MEETING AGENDA
FEBRUARY 07, 2023
110 EAST MAIN STREET AND TELECONFERENCE
TOWN COUNCIL CHAMBERS
7:00 PM
IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E.
Main Street and virtually through the Zoom webinar application (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom webinar by following the instructions listed below. The live stream of the meeting may be viewed on television and/or online at www.LosGatosCA.gov/TownYouTube.
PARTICIPATION
To provide oral comments in real-time during the meeting:
Zoom webinar: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://losgatoscagov.zoom.us/j/83387683101?pwd=Ky9lWmRneEFURHl6MTRUbml2SDBCUT09 Passcode: 266177 You can also type in 833 8768 3101 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join.
o When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand. Join by telephone: Join by Telephone: Dial: USA 877 336 1839 US Toll-free or 636 651 0008 US Toll. Conference code: 686100
o If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
In-Person: If you wish to speak during the meeting, please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk. If you wish to speak to an item on the agenda, please list the item number. If you wish to speak on an item NOT on the agenda, please list the subject and you may speak during the “Verbal Communications” period. The time allocated to speakers may change to better facilitate the Town Council meeting.
When called to speak, you may be asked to provide your full name and your town/city of residence. This identifying information is optional and not a requirement for participation. Please limit your comments to three (3) minutes, or such other time as the Mayor may decide, consistent with the time limit for speakers at a Council meeting. If you wish to speak to an item or items on the Consent Calendar, please state which item number(s) you are commenting on at the beginning of your time.
If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment) or “Verbal Communications – Non-Agenda Item.” Comments received by 11:00 a.m. the day of the meeting
will be reviewed and distributed before the meeting. All comments received will become part of the record.
RULES OF DECORUM AND CIVILITY
To conduct the business of the community in an effective and efficient manner, please follow the meeting guidelines set forth in the Town Code and State law.
The Town does not tolerate disruptive conduct, which includes but is not limited to:
addressing the Town Council without first being recognized; interrupting speakers, Town Council, or Town staff;
continuing to speak after the allotted time has expired; failing to relinquish the microphone when directed to do so; repetitiously addressing the same subject.
Town Policy does not allow speakers to cede their commenting time to another speaker.
Disruption of the meeting may result in a violation of Penal Code 403.
MEETING CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
COUNCIL / MANAGER MATTERS
ANNOUNCEMENT OF FINANCE COMMISSIONER SELECTION BY COUNCIL MEMBER ROB RENNIE
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on
the item will be heard.)
1. Approve Minutes of the January 17, 2023 Closed Session Town Council Meeting.
2. Approve Minutes of the January 17, 2023 Town Council Meeting.
3. Approve Minutes of the January 24, 2023 Special Town Council Meeting.
4. Approve Minutes of the January 30, 2023 Special Town Council Meeting.
5. Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees.
6. Consider the Following Actions for the Americans with Disabilities Act (ADA) Public Restroom -- Adult Recreation Center Project (CIP No. 821-2601):
a. Approve Plans and Specifications; and
b. Authorize Advertising the Project for Bid; and
c. Authorize the Town Manager to Execute the County of Santa Clara Grant Agreement (Fiscal Year 2022/23) and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $250,000 to Recognize Receipt and Expenditure for CIP No. 821- 2601; and
d. Authorize the Town Manager to Execute the Santa Clara County Community Development Block Grant (CDBG) City/County Contract for Fiscal Year 2023 and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $140,000 to Recognize Receipt and Expenditure of the Community Development Block Grant Fund for CIP No 821-2601.
7. Authorize Budget Adjustments in the Total Amount of $43,500 to Recognize Receipt and Expenditure of Black Gold Library Consortium Grant Funds.
8. Consider the Following Actions for the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921):
a. Approve the Plans and Specifications; and
b. Authorize Advertising the Project for Bid.
9. Consider the Following Actions for the Property Location: 137 Bersano Lane. APN 424- 29-054. Property Owner: Lisa DeGeorge.
a. Adopt a Resolution Approving a Purchase and Sale Agreement for the Re-Purchase of an Affordable Housing Unit Subject to an Existing Below Market Price (BMP) First Right of Refusal Option; and
b. Authorize the Town Manager to Negotiate and Execute all Agreements and Documents Necessary and Appropriate to Effectuate the Preservation of the Affordable Housing Unit; and
c. Authorize Revenue and Expenditure Budget Adjustments in the Amount of $436,276 from Available BMP Housing In-Lieu Fee Fund to Re-Purchase, Repair, and Pay Past Due Fees and Taxes of the Property.
10. Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion Accepting the Work of Ashron Construction and Restoration, Inc., and Authorize Recording by the Town Clerk for PPW Job No. 817-0708 Parking Lot 4 Repair and Waterproofing.
11. Authorize the Town Manager to Execute First Amendments to the Master Lease Agreements with Tait Firehouse, LLC and Forbes Mill, LLC.
12. Authorize the Town Manager to Execute an Agreement with Sustainable Waze to Continue the Coordination of Music in the Park (MIP) Summer Concert Series for 2023, with Options for Annual Extensions for Two Additional Years.
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda. To ensure all agenda items are heard and unless additional time is authorized by the Mayor, this portion of the agenda is limited to 30 minutes and no more than three (3) minutes per speaker. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment.)
PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes maximum for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes maximum for closing
statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)
13. Introduce a Proposed Ordinance Amending Chapter 24 (Subdivision Regulations) and Chapter 29 (Zoning Regulations) of the Town Code Regarding Town-Initiated Parcel Mergers.
OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)
14. Discuss Valley Transportation Authority (VTA) Proposed Changes to Route 27 Weekend Bus Service.
15. Consider Modifications to Town Council Policy 2-01: Town Agenda Format and Rules Regarding Remote Attendance for Town Boards, Commissions, and Committees as Discussed by the Council Policy Committee.
16. Receive the Senior Service Committee Roadmap for Senior Services and Provide Any Additional Direction to the Committee and/or Staff.
17. Consider the Following Items Recommended by the Art and Culture Commission:
a. Receive the Arts and Culture Commission’s Three-Year Plan Consisting of Capital Improvement Program (CIP) Funding for Completion of the Gateway Project and Annual Funding for Maintenance of Existing Town-Owned Public Artwork; and b. Authorize the Town Manager to Enter into a Memorandum of Understanding with Silicon Valley Creates; and
c. Grant permission for Arts and Culture Commissioners to Solicit Philanthropic Funding for Future Public Art Projects.
18. Receive a Report on the Town Resources Utilized to Support 2022 Special Events, Provide Direction for the Allocation of Resources to Support Anticipated 2023 Special Events, and Approve the Attached Modifications to the Town’s Facilities Use Policy.
19. Approve the Library’s Holiday and Recognition Work Plan.
ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time).
Writings related to an item on the Town Council meeting agenda distributed to members of the Council within 72 hours of the meeting are available for public inspection at the front desk of the Los Gatos Town Library, located at 100 Villa Avenue, and are also available for review on the official Town of Los Gatos website. Copies of desk items distributed to members of the Council at the meeting are available for review in the Town Council Chambers.
Note: In accordance with Code of Civil Procedure §1094.6; litigation challenging a quasi-adjudicatory decision of the Town Council must be brought within 90 days after the decision is final unless a shorter time is required by State or Federal law.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting – Closed Session January 17, 2023
The Town Council of the Town of Los Gatos conducted a special meeting in-person and utilizing teleconferencing means on Tuesday, January 17, 2023 to hold a Closed Session at 5:30 p.m.
MEETING CALLED TO ORDER AT 5:30 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.
Absent: None.
VERBAL COMMUNICATIONS
None.
THE TOWN MOVED TO CLOSED SESSION ON THE FOLLOWING ITEM:
1. Conference With Real Property Negotiator (Government Code Section 54956.8) a. Property: 137 Bersano Lane (APN: 424-29-054)
Negotiating Parties: Town of Los Gatos and Lisa DeGeorge Negotiator: Arn Andrews, Assistant Town Manager and Lisa DeGeorge To Be Negotiated: Terms of purchase
b. Property: 4 New York Avenue (Venue) (APN: 529-27-024), a portion of New York Avenue from the west side of Pleasant Avenue to the terminus, and all of Chicago Avenue
Negotiating Parties: Town of Los Gatos
Negotiator: Arn Andrews, Assistant Town Manager and Los Gatos-Saratoga Union High School District
To Be Negotiated: Terms of purchase, sale, exchange or lease c. Property: 4 Tait Avenue (Museum) (APN: 510-44-054)
Negotiating Parties: Town of Los Gatos
Negotiator: Arn Andrews, Assistant Town Manager and Imwalle Asset Management Negotiations: Terms of lease
d. Property: 75 Church St. (Forbes Mill) (APN: 529-54-050) Negotiating Parties: Town of Los Gatos
Negotiator: Arn Andrews, Assistant Town Manager and Imwalle Asset Management
PAGE 2 OF 2
SUBJECT: Draft Minutes of the Special Town Council Meeting of January 17, 2023 DATE: January 20, 2023
Negotiations: Terms of lease
ADJOURNMENT
Closed Session adjourned at 6:05 p.m.
Attest: Submitted by:
____________________________ ___________________________ Jenna De Long, Deputy Town Clerk Laurel Prevetti, Town Manager
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
January 17, 2023
The Town Council of the Town of Los Gatos conducted a regular meeting in-person and via teleconference on Tuesday, January 17, 2023, at 7:00 p.m.
MEETING CALLED TO ORDER AT 7:01 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie.
Absent: None
PLEDGE OF ALLEGIANCE
Michael Hein led the Pledge of Allegiance. The audience was invited to participate.
PRESENTATIONS
Mayor Ristow presented commendations to outgoing Commissioners.
CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney, stated the Town Council met in Closed Session as duly noted on the agenda and there was no reportable action.
COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Hudes stated he attended Senior Service Committee and Subcommittee meetings, met with Los Gatos-Saratoga Recreation, and observed the Finance Commission meeting.
- Council Member Rennie stated he attended the Bay Area Air Quality Management District Board meeting, Hannukah on Main Candle Lighting event, Silicon Valley Clean Energy Authority (SVCEA) Risk Oversight Committee meeting, Finance Commission meeting, SVCEA Board meeting, and the Valley Transportation Authority Board meeting. - Vice Mayor Badame stated she met with Lee Fagot (moderator of the Democracy Tent community group), observed the Finance Commission meeting, and disclosed she met with the applicant/appellant for agenda item #15.
PAGE 2 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Council Matters – continued
- Council Member Moore stated he met with Destination Home CEO and its executive leadership, attended the Governor’s inauguration, participated in the CalCities training for New Mayors and Council Members, attended the West Valley Sanitation Board District Authority Board meeting, met with many community members, attended Hannukah on Main Candle Lighting event, and supported the Town residents and vulnerable community members who were affected by the storms.
- Mayor Ristow stated she attended Hannukah on Main Candle Lighting event, new Commissioner Orientation, Finance Commission meeting, Senior Service Committee meeting, Complete Streets and Transportation Commission meeting as an observer, and announced the Los Gatos Theatre grand opening on Thursday, January 20.
Manager Matters
- Thanked the Community Emergency Response Team (CERT) and Disaster Assistance Response Team (DART) for the storm response efforts.
- Announced the Finance Commission recruitment is underway and applications are available on the Town website and are due on January 27. - Announced the launch of the Town’s updated website.
- Announced a valet parking survey is now available on the Town website. - Announced a Special Meeting of the Town Council to be held on January 24, 2023, to discuss Strategic Priorities.
- Announced a Special Meeting of the Town Council will be held on January 30, 2023, to discuss the Draft Housing Element with a potential second meeting on January 31, 2023. - Announce the Town will be partnering with the school districts to host a community workshop on February 1 at 6:00 p.m. via Zoom to prevent underage drinking by promoting healthy norms.
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Approve Draft Minutes of the December 20, 2022 Town Council Meeting.
2. Approve Draft Minutes of the January 10, 2023 Special Town Council Meeting.
3. Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees. RESOLUTION 2023-002
4. Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832-4505):
a. Approve the Plans and Specifications;
b. Authorize Advertising the Project for Bid Upon Receipt of Formal Funding Approval (E-76) from Caltrans; and
c. Authorize the Release of a Request for Proposals for Construction Management, Inspection, and Materials Testing Services.
PAGE 3 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Consent Items – continued
5. Legal Costs for Colantuono, Highsmith & Whatley, PC
a. Authorize Payment of Up to An Additional $50,000 for a Total Payment Not to Exceed $150,000 for Fiscal Year 2022/23; and
b. Authorize Expenditure Budget Adjustment in an Amount of $100,000 From Available General Fund Capital/Special Projects Reserve.
6. Adopt a Resolution to Extend the Term of the Housing Element Advisory Board.
RESOLUTION 2023-003
7. Authorize Budget Adjustments in the Total Amount of $57,046 to Recognize Receipt and Expenditure of Pacific Library Partnership, California State Library, and Library Services & Technology Act Grant Funds.
8. Authorize the Town Manager to Execute a Fifth Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2022/23 in an Amount of $100,000 for a Total Annual Amount Not to Exceed $200,000 with the Total Agreement Amount Not to Exceed $1,096,000.
9. Authorize the Town Manager to Execute a Third Amendment to a Consultant Agreement for Executive Recruitment Services with Teri Black & Company, LLC for an Additional Amount of $31,000 with a Total Amount Not to Exceed $170,500 and Authorize an Expenditure Budget Adjustment from Available General Fund Capital/Special Projects Reserve.
10. Receive Monthly Investment Reports for October and November 2022.
Council Member Hudes pulled item #4.
MOTION: Motion by Council Member Rennie to approve consent items 1-10, exclusive of item
4. Seconded by Vice Mayor Badame.
VOTE: Motion passed unanimously.
VERBAL COMMUNICATIONS
Sue Ahmadian, St. Vincent de Paul
- Commented on the unhoused and requested Council consider opening and overnight warming center.
Ramesh Sastry
- Commented on a recent burglary and catalytic converter thefts.
Naomi Salowe
- Read a letter from Ellie, whose boyfriend passed away in a fatal crash on Blossom Hill Road and Belgatos Road.
PAGE 4 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Verbal Communications – continued
Sriram Narayanan
- Commented on concerns with Blossom Hill Road safety and requested Council consider additional safety measures on Blossom Hill between Leigh Avenue and Harwood Road.
Kelly Massini
- Commented on concerns with Blossom Hill Road safety and requested Council consider additional safety measures on Blossom Hill between Leigh Avenue and Harwood Road.
Katrina Brinkman
- Commented on concerns with Blossom Hill Road safety and requested Council consider additional safety measures at Blossom Hill and Belgatos Road.
Blake Thornberry
- Commented on concerns with Blossom Hill Road safety and requested Council consider additional safety measures at Blossom Hill and Belgatos Road.
Lee Fagot
- Commented on the Housing Element and requested the Town Council consider convening additional community meetings to discuss the Draft Housing Element.
The Mayor stated the 30-minute time limit had been reached and that Verbal Communications would continue for any additional speakers at end of the meeting.
PUBLIC HEARINGS
11. Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2023 Weed Abatement Program Commencement Report and Order the Abatement.
Meredith Johnston, Administrative Technician, presented the staff report.
Opened Public Comment.
Eugene Della Maggiore
- Requested Council consider removing his address from the list so he could abate the weeds on his own property. He was unable to do so earlier due to COVID.
Closed Public Comment.
Council discussed the matter.
PAGE 5 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Public Hearing Item #11 – continued
MOTION: Motion by Vice Mayor Badame to order the abatement of weeds for properties listed on the 2023 weed abatement program in attachment one and remove parcel number 410-17-008 from the list due to the hardship of having COVID.
Seconded by Council Member Hudes.
VOTE: Motion passed unanimously.
12. Consider a General Plan Amendment by Resolution to Add Policies to the Hazards and Safety Element. Location: Town-Wide. General Plan Amendment Application GP-22-002.
RESOLUTION 2023-004
Jennifer Armer, Planning Manager, presented the staff report.
Opened Public Comment.
No one spoke.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Council Member Moore to approve a General Plan amendment by Resolution to add policies to the Hazards and Safety Element. Seconded by Vice Mayor Badame.
VOTE: Motion passed unanimously.
OTHER BUSINESS
13. Receive the Police Services Report: July – December 2022.
Jamie Field, Police Chief, and Derek Moye, Operations Captain, presented the staff report.
Opened Public Comment.
John Shepardson
- Commented on traffic stop data and requested a cost benefit analysis of police services be conducted.
Closed Public Comment.
Council discussed the matter and received the report.
PAGE 6 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Other Business Item #13 – continued
Recess 8:53 p.m.
Reconvene 9:00 p.m.
14. Review and Approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report Entitled, “Show Me the Money: Financial Transparency Needed” and the Changes to the Town’s Operating Portfolio Investment Policy as Reviewed by the Finance Commission.
Gitta Ungvari, Finance Director, presented the staff report.
Opened Public Comment.
John Shepardson
- Commented on the item and suggested a review of the Grand Jury’s concerns.
Jak Van Nada
- Commented on the purpose of the Civil Grand Jury Report, referred to the City of Saratoga’s report and suggested the Town add tables 1 and 2 from Saratoga’s report to the Town’s the investment report.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Council Member Moore to approve the Town’s Response to the 2022 Civil Grand Jury of Santa Clara County Report entitled, “Show Me the Money:
Financial Transparency Needed” and the changes to the Town’s Operating Portfolio Investment Policy as reviewed by the Finance Commission. Seconded by Council Member Rennie.
VOTE: Motion passed 3-2, Vice Mayor Badame and Council Member Hudes voted no.
PUBLIC HEARINGS
15. Consider an Appeal of a Planning Commission Decision to Deny a Fence Height Exception Request for Construction of a Six-Foot Fence Located Within the Required Front Yard Setback and a Vehicular Gate Set Back Less than 18 Feet from the Edge of the Adjacent Street on Property Zoned R-1:10. Located at 755 Blossom Hill Road. APN 523- 04-043.
PROPERTY OWNER/APPELLANT: David and Ilana Kohanchi. APPLICANT: Nina Guralnic.
RESOLUTION 2023-005
PAGE 7 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Public Hearing #15 – continued
Savannah Van Akin, Assistant Planner, presented the staff report.
Council Member Moore disclosed he met with the property owners and stated the owners have sold fruit and purchased luxury cars.
Vice Mayor Badame disclosed she met with property owner.
Council Member Hudes disclosed he met with the property owners.
Council Member Rennie disclosed he visited the property.
Mayor Ristow disclosed she visited the property.
Opened Public Comment.
Ilana Kohanchi, Applicant/Appellant, commented on the item and provided opening comments.
David Kohanchi, Applicant/Appellant, commented on the item provided closing comments.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Council Member Hudes to adopt a resolution to grant the appeal and approve the application with the following 3 conditions: (1) the spikes be removed from the fence, (2) the gate be reconfigured to work from the other side so it does not obstruct traffic, and (3) the appellants to use their best efforts to ensure the gate remains open from 6:30 a.m. to 9:00 p.m. and provide some documentation to the Town of their efforts to do that; and make the findings that the safety would not be extraordinarily harmed because the fence has good visibility, the public safety weighed with the safety of the property owner is balanced, the adjacency to commercial perimeter of eight feet is a safety concern, and the Planning Commission decision did not include some of the issues discussed so it was not supported by substantial evidence with regard the information on the website and the lack of consideration of the adjacency to the commercial perimeter. Seconded by Council Member Rennie.
VOTE: Motion passed 3-2, Mayor Ristow and Council Member Moore voted no.
PAGE 8 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Pulled Consent Items
4. Los Gatos Creek Trail to Highway 9 Trailhead Connector Project (CIP No. 832-4505):
a. Approve the Plans and Specifications;
b. Authorize Advertising the Project for Bid Upon Receipt of Formal Funding Approval (E76) from Caltrans; and c. Authorize the Release of a Request for Proposals for Construction Management, Inspection, and Materials Testing Services.
Nicolle Burnham, Parks and Public Works Director, answered Council questions.
Opened Public Comment.
John Shepardson
- Commented on concerns with the item.
Closed Public Comment.
Council discussed the matter.
MOTION: Motion by Council Member Hudes to approve the plans and specifications; authorize advertising the project for bid upon receipt of formal funding approval (E76) from Caltrans; and authorize the release of a request for proposals for construction management, inspection, and materials testing services. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
ADDITIONAL VERBAL COMMUNICATIONS
DOC
- Commented on concerns with security and safety such as data mining the use of facial recognition technology.
Lynley Kerr Hogan
- Commented on maxims.
Joanne Rodgers
- Read a letter written by Planning Commissioner Kylie Clark regarding the Town’s Housing Element sent to the California Department of Housing & Community Development (HCD).
Chris Wiley
- Commented on concerns with the letter written by Kylie Clark to the HCD and her capacity to be an objective Planning Commissioner.
PAGE 9 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 17, 2023 DATE: January 17, 2023
Additional Verbal Communications – continued
Lisa Harris
- Commented on concerns with the letter written by Kylie Clark to the HCD and requested she be removed from her position as a Planning Commissioner.
John Shepardson
- Commented on concerns with Blossom Hill/Belgatos traffic safety and Diversity Equity and Inclusion (DEI) efforts.
ADJOURNMENT
The meeting adjourned at 11:10 p.m.
Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Clerk
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 3
DRAFT
Minutes of the Town Council – Special Meeting
January 24, 2023
The Town Council of the Town of Los Gatos conducted a special meeting in-person and utilizing teleconferencing means on Tuesday, January 24, 2023, at 7:00 p.m. to discuss Strategic Priorities.
MEETING CALLED TO ORDER AT 7:01 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie
Absent: None
OTHER BUSINESS
1. Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities for New Ordinance.
Laurel Prevetti, Town Manager, provided the staff report.
Opened public comment.
Shai Vankat, Plant-Based Advocates
- Commented in support of the Town funding plant-based diet programs.
Nancy Rollett, Executive Director of Los Gatos Saratoga-Recreation - Commented on the Los Gatos Saratoga-Recreation programs and requested lease abatement.
Ami Davis, Executive Director of NUMU
- Commented on NUMU’s programs and requested the Town reduce their rent to one dollar a year.
Blake Thornberry
- Commented in support of bicycle and pedestrian improvements and requested Council consider traffic safety as a strategic priority.
Lisanne Kennedy, Recreation Coordinator of the 55+ program Los Gatos-Saratoga Recreation (LGS Rec)
- Commented on the 55+ program and requested Council allocate funds for this program.
PAGE 2 OF 5
SUBJECT: DRAFT Minutes of the Town Council Special Meeting of January 24, 2023 DATE: January 24, 2023
Other Business Item #1 – continued
Maureen Heath, Senior Services Committee Member
- Commented on older adult services in Los Gatos and requested Council continuing to prioritize older adult support.
Joe Musser
- Requested the Town provide a warming and cooling shelter for homeless residents.
Alysia Heyer
- Requested the Town provide a homeless shelter and showers.
Tim O’Rorke, St. Vincent De Paul Society at St. Mary’s
- Commented in support of the Town providing a warming and cooling shelter for homeless residents.
Peter Hertan
- Commented in support of updating and supplementing emergency preparedness technology and Emergency Operation Centers.
Rob Stump
- Commented in support of prioritizing emergency communication, emergency evacuation, roadside fuel reduction, and requested the Town re-establish the Ad Hoc Wildfire Committee.
Kylie Clarke, West Valley Community Services
- Commented on the unhoused and requested the Council add homelessness as a strategic priority.
Ed Losawiki
- Commented on the unhoused and requested the Town provide a warming center for homeless residents.
Steve Hall
- Commented on the needs and safety for the unhoused and requested this be a strategic initiative.
Jan Schwartz, President of the Board of NUMU
- Commented on the NUMU programs and requested the Town reduce their rent to one dollar a year.
Dick Konrad, Senior Service Committee (SSC)
- Commented on senior services in the community and requested the Council continuing to prioritize senior services.
PAGE 3 OF 5
SUBJECT: DRAFT Minutes of the Town Council Special Meeting of January 24, 2023 DATE: January 24, 2023
Other Business Item #1 – continued
Tylor Taylor, Board Member of KCAT
- Commented on the Producers Network program and requested the Council consider an ordinance to allow for bingo permits.
Katrina Brinkman
- Commented on traffic concerns on Blossom Hill Road and in the Belgatos neighborhood.
Karen Rubio, Plant-Based Advocates
- Commented on concerns with the production of meat and dairy and requested Council make plant-based diet education programs a priority.
Lisa Wade, Plant-Based Advocates
- Commented on plant-based diet education and requested Council make it a propriety.
Nate Vandegrift
- Commented on the damage of fallen trees and requested the Council prioritize the removal and ban of eucalyptus trees.
Maureen Cappon-Javey, NUMU Board Member
- Commented on NUMU’s programs and requested the Town remove the rent requirement.
Sketch O.
- Commented on the unhoused, the need for a shelter, and requested the Council add homelessness to the priorities.
Kelly Masini
- Commented on improving traffic safety at Blossom Hill between Leigh and Harwood.
Tom Picraux
- Commented on the Senior Services Committee Roadmap and would like the Town to continue its support.
James Rojas
- Commented on the tobacco ordinance and requested assistance with enforcing the flavored tobacco ban.
Jessica Matthew
- Commented on prioritizing affordable housing and services to unhoused residents.
Ali Miano
- Commented on prioritizing affordable housing and improved public transportation.
PAGE 4 OF 5
SUBJECT: DRAFT Minutes of the Town Council Special Meeting of January 24, 2023 DATE: January 24, 2023
Other Business Item #1 – continued
Melissa Toren, KCAT Executive Director
- Commented on the KCAT partnership with the Town for the Producer’s Network program and requested $100,000 to fulfill the plan.
Zachary Benitez, KCAT Producer’s Network
- Commented on the Producer’s Network and requested funds to continue the program.
Joni Russell, KCAT Producer’s Network
- Commented on the Producer’s Network and requested funds to continue the program.
Jim Foley, Los Gatos Chamber of Commerce Board President - Commented on the Chamber of Commerce priorities and is looking forward to collaborating with the Town.
Sarah Chaffin
- Commented on prioritizing affordable housing.
Susan Fenton, KCAT Producer’s Network
- Commented on the Producer’s Network and requested funds to continue the program.
Umar Ellahie, KCAT Board Member
- Commented on the Producer’s Network and requested funds to continue the program.
Joseph Enz
- Commented in support of unhoused residents and emergency preparedness.
Closed public comment.
Recess 8:46 p.m.
Reconvene 8:58 p.m.
Gabrielle Whelan, Town Attorney, provided information on the Ordinance priorities.
Council discussed the item.
PAGE 5 OF 5
SUBJECT: DRAFT Minutes of the Town Council Special Meeting of January 24, 2023 DATE: January 24, 2023
Other Business Item #1 – continued
MOTION: Motion by Vice Mayor Badame to prioritize the order of the ordinances as recommended by the Town Attorney with the following modifications: move the EBike ordinance to priority number 6, consider the comments of Council Member Hudes to be sensitive regarding item number 1 (Amendment to the Town’s Concealed Carry Weapons Ordinance and Adoption of “Sensitive Places” Ordinance), and add a Bingo permit ordinance as priority number 15. The motion included granting the Town Attorney the discretion to move an item up if it can be done quickly. Seconded by Council Member Moore.
VOTE: Motion passes unanimously.
The Town Council discussed the Strategic Priorities, generally affirming the existing priorities and making the following modifications:
Safety:
Amend Vegetation Management to Vegetation and Hazardous Tree Management Amend EOC Readiness & Emergency Plan Development to add Communications Prudent Financial Management:
Replace New Revenue Opportunities with:
o Develop a Five-Year Structurally Balanced and Sustainable Operating Forecast Explore New Revenue Opportunities
Cure Forecasted Structural Deficit
o Develop a Five-Year Full Funded Capital Plan
Quality of Life:
Modify Senior Road Map to Adopt a Senior Road Map
Delete the completed items: Dittos Lane Affordable Housing and Objective Standards Add: Streamline Permitting Process
Modify Affordable Housing to Affordable Housing Partnerships Add: Work with Town Partners to Support the Needs of Unhoused Residents Add: Redefine Town Commissions in Alignment with Strategic Priorities Traffic and Transportation:
Add: Traffic Calming/Safety for All Users
ADJOURNMENT
The meeting adjourned at 10:42 p.m.
Respectfully submitted:
_____________________________________
Jenna De Long, Deputy Clerk
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 4
DRAFT
Minutes of the Town Council – Special Meeting
January 30, 2023
The Town Council of the Town of Los Gatos conducted a special meeting in-person and utilizing teleconferencing means on Tuesday, January 30, 2023, at 7:00 p.m. to consider adoption of a 2023-2031 Housing Element.
MEETING CALLED TO ORDER AT 7:02 P.M.
ROLL CALL
Present: Mayor Maria Ristow, Vice Mayor Mary Badame, Council Member Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie
Absent: None
PUBLIC HEARING
1. Consider the Adoption of the Los Gatos 2023-2031 Housing Element. An Environmental Analysis Based on the Previously Certified 2040 General Plan Final Environmental Impact Report has been Prepared for the Los Gatos 2023-2031 Housing Element. Location: Townwide. Applicant: Town of Los Gatos. General Plan Amendment Application GP-22-003.
RESOLUTION 2023-006
Erin Walters, Associate Planner, provided the staff report.
Opened public comment.
Lee Fagot
- Commented on concerns and spoke in opposition of the item.
Lee Quintana
- Commented on concerns and spoke in opposition of the item.
Rene Baez, NorCal Carpenters Unit
- Commented on labor requirements for housing construction and requested Council consider adding apprentice program, healthcare, and local hire requirements.
Jak Van Nada, Los Gatos Community Alliance
- Commented on concerns and spoke in opposition of the item.
Closed public comment.
PAGE 2 OF 2
SUBJECT: DRAFT Minutes of the Town Council Special Meeting of January 30, 2023 DATE: January 30, 2023
Public Hearing Item #1 – continued
Council discussed the item.
Recess 8:42 p.m.
Reconvene 8:55 p.m.
MOTION: Motion by Council Member Moore to adopt the revised resolution (Attachment 16) to adopt the Draft 2023-2031 Housing Element with the revised site inventory analysis and sites inventory form. Seconded by Mayor Ristow.
VOTE: Motion passes 4-0-1. Vice Mayor Badame abstained.
ADJOURNMENT
The meeting adjourned at 9:09 p.m.
Respectfully submitted:
_____________________________________
Jenna De Long, Deputy Clerk
PREPARED BY: Wendy Wood
Town Clerk
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 2/7/2023
ITEM NO: 5
DATE: January 26, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Reaffirming Resolution 2021-044 and Making Findings Pursuant to Government Code Section 54953, as Amended by Assembly Bill 361, and, Due to Health and Safety Concerns for the Public, Authorizing the Use of Hybrid Meetings for the Town Council and the Continued Use of Virtual Meetings for Boards and Commissions While Town Staff Makes the Necessary Arrangements to Transition to Hybrid Meetings for All Town Boards, Commissions, and Committees
RECOMMENDATION:
Adopt a Resolution reaffirming Resolution 2021-044 and making findings pursuant to Government Code Section 54953, as amended by Assembly Bill 361, and, due to health and safety concerns for the public, authorizing the use of hybrid meetings for the Town Council and the continued use of virtual meetings for Boards and Commissions while Town staff makes the necessary arrangements to transition to hybrid meetings for all Town Boards, Commissions, and Committees.
BACKGROUND:
On March 17, 2020, Governor Newsom issued Executive Order N-29-20, which allowed for relaxed provisions of the Ralph M. Brown Act (Brown Act) that allowed legislative bodies to conduct meetings through teleconferencing without having to meet the strict compliance of the Brown Act. All provisions of Executive Order N-29-20 concerning the conduct of public meetings expired on September 30, 2021.
AB 361 was signed into law by the Governor on September 16, 2021, and went into effect immediately upon signing. It amends the Brown Act to allow local legislative bodies to continue using teleconferencing and virtual meeting technology after the September 30, 2021, expiration of the current Brown Act exemptions as long as there is a "proclaimed state of emergency" by
PAGE 2 OF 3
SUBJECT: Adopt a Resolution Regarding Brown Act Compliance and Teleconferencing DATE: January 26, 2023
BACKGROUND (continued):
the Governor and state or local officials recommend social distancing. Through December, the County of Santa Clara recommended social distancing at public meetings but has recently rescinded that public health order. Given the continued spread of COVID-19 and variants, the Town Council recommends continued social distancing.
DISCUSSION:
The Town Council will continue to provide a remote participation option in addition to inperson meetings. Staff will gradually transition all Town Board, Commission, and Committee meetings to a similar hybrid format.
AB 361 requires public agencies to make findings by majority vote within 30 days of the first teleconferenced meeting under AB 361 and every 30 days thereafter that a state of emergency still exists and that state or local officials continue to impose or recommend measures to promote social distancing.
Town Council adopted Resolution 2021-044 on October 5, 2021 regarding Brown Act compliance and teleconferencing pursuant to Government Code Section 54953, as amended by AB 361, and adopted resolutions on the following dates reaffirming Resolution 2021-044:
November 2, 2021 adopted Resolution 2021-046
November 16, 2021 adopted Resolution 2021-048
December 7, 2021 adopted Resolution 2021-054
December 21, 2021 adopted Resolution 2021-059
January 18, 2022 adopted Resolution 2022-001
February 1, 2022 adopted Resolution 2022-003
February 15, 2022 adopted Resolution 2022-004
March 1, 2022 adopted Resolution 2022-006
March 15, 2022 adopted Resolution 2022-009
April 5, 2022 adopted Resolution 2022-013
April 19, 2022 adopted Resolution 2022-017
May 3, 2022 adopted Resolution 2022-021
May 17, 2022 adopted Resolution 2022-031
June 7, 2022 adopted Resolution 2022-032
June 21, 2022 adopted Resolution 2022-037
July 12, 2022 adopted Resolution 2022-048
August 2, 2022 adopted Resolution 2022-050
August 16, 2022 adopted Resolution 2022-055
September 6, 2022 adopted Resolution 2022-056
PAGE 3 OF 3
SUBJECT: Adopt a Resolution Regarding Brown Act Compliance and Teleconferencing DATE: January 26, 2023
DISCUSSION (continued):
September 20, 2022 adopted Resolution 2022-059
October 4, 2022 adopted Resolution 2022-060
October 18, 2022 adopted Resolution 2022-065
November 1, 2022 adopted Resolution 2022-068
November 15, 2022 adopted Resolution 2022-070
December 6, 2022 adopted Resolution 2022-073
December 20, 2022 adopted Resolution 2022-076
January 17, 2023 adopted Resolution 2023-002
CONCLUSION:
Adopt a Resolution reaffirming Resolution 2021-044 making findings pursuant to Government Code Section 54953, as amended by Assembly Bill 361, and authorizing the continued use of virtual meetings. The Town Council will conduct hybrid meetings and staff will work to prepare for a transition to hybrid meetings for all Town Boards, Commissions, and Committees.
COORDINATION:
This report was coordinated with the Town Attorney and Town Manager’s offices.
FISCAL IMPACT:
There will be no fiscal impact to the Town at this time.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Draft Resolution
1 of 3
Resolution 2023- DATE
ATTACHMENT 1
DRAFT RESOLUTION 2023-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS REAFFIRMING RESOLUTION 2021-044 REGARDING BROWN ACT COMPLIANCE AND TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54953, AS AMENDED BY ASSEMBLY BILL 361, DURING THE COVID-19 PANDEMIC WHEREAS, on March 4, 2020, the Governor of the State of California declared a state of emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19; and
WHEREAS, on March 12, 2020, the Town Manager of Los Gatos acting in the capacity of Town of Director of Emergency Services, issued a Proclamation of Local Emergency; and WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20, which suspended and modified the teleconferencing requirements under the Brown Act (California Government Code Section 54950 et seq.) so that local legislative bodies can hold public meetings via teleconference (with audio or video communications, without a physical meeting location), as long as the meeting agenda identifies the teleconferencing procedures to be used; and
WHEREAS, on March 17, 2020, the Town Council of the Town of Los Gatos ratified the Proclamation of Local Emergency as set forth in Resolution 2020-008 and remains in full force and effect to date; and
WHEREAS, on June 4, 2021, the Governor clarified that the “reopening” of California on June 15, 2021, did not include any change to the proclaimed state of emergency or the powers exercised thereunder; and
WHEREAS, on June 11, 2021, the Governor issued Executive Order N-08-21, which extended the provision of N-29-20 concerning the conduct of public meetings through September 30, 2021, and the Governor subsequently signed legislation revising Brown Act requirements for teleconferenced public meetings (Assembly Bill 361, referred to hereinafter as “AB 361”); and
WHEREAS, on September 16, 2021, Governor Newsom signed AB 361, which added subsection (e) to Government Code section 54953 of the Brown Act, and makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, the Town Council of the Town of Los Gatos approved Resolution No. 2021- 044 on October 5, 2021, declaring the need for the Town Council, Boards, Commissions, and Committees to continue to meet remotely in order to ensure the health and safety of the
2 of 3
Resolution 2023- DATE
ATTACHMENT 1
public; and
WHEREAS, the Town of Los Gatos remains in a state of emergency due to the continuing spread of COVID-19; and
WHEREAS, given the continued spread of COVID-19 and variants, the Town Council recommends maintaining measures to promote social distancing; and WHEREAS, technology exists that allows full participation from members of the public without requiring in-person attendance at a Town Council, Board, Commission, or Committee meeting.
WHEREAS, the Town Council has considered all information related to this matter, including the associated staff report and other information relating to COVID-19 provided at prior public meetings of the Town Council; and
WHEREAS, the Town Council wishes to conduct hybrid meetings, at which members of the public have the option to participate remotely, and to transition to hybrid meetings for the Town’s Boards, Commissions, and Committees; and
WHEREAS, the Town Council wishes to adopt a Resolution finding that the requisite conditions continue to exist for the legislative bodies of the Town of Los Gatos, as defined in the Brown Act, to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE:
1. The Town Council hereby finds that the fact set forth in the above recitals and as contained in Resolution 2021-044 are true and correct, and establish the factual basis for the adoption of this Resolution;
2. There is an ongoing proclaimed state of emergency relating to the novel coronavirus causing the disease known as COVID-19 and as a result of that emergency, meeting inperson may present risksto the health orsafety of attendees of in-person meetings of this legislative body and all Town advisory bodies within the meaning of California Government Code section 54953(e)(1).
3. Under the present circumstances, including the risks mentioned in the preceding paragraph, attendeesmay wish to participate in Town meetings remotely.
4. As authorized by Assembly Bill 361, the Town Council wishes to conduct hybrid meetings and to transition to hybrid meetings for the Town’s Boards, Commissions, and Committees.
5. Staff are directed to take all actions necessary to implement this Resolution for
3 of 3
Resolution 2023- DATE
ATTACHMENT 1
all Town Council meetings and Town Board, Commission, and Committee meetings on a rolling basis, in accordance with the foregoing provisions and the requirements of Government Code section 54953, as amended by Assembly Bill 361, including but not limited to returning for ratification of this Resolution every 30 days after teleconferencing for the first time pursuant to Assembly Bill 361 for so long as either of the following circumstances exists: (a) the state of emergency continues to directly impact the ability of this legislative body to meet in person; and/or (b) state or local officials, including but not limited to the County Health Officer, continue to impose or recommend measures to promote social distancing.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7
th day of February 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: ___________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 6
DATE: January 23, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Following Actions for the Americans with Disabilities Act (ADA) Public Restroom -- Adult Recreation Center Project (CIP No. 821-2601) a. Approve Plans and Specifications; and
b. Authorize Advertising the Project for Bid; and
c. Authorize the Town Manager to Execute the County of Santa Clara Grant Agreement (Fiscal Year 2022/23) and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $250,000 to Recognize Receipt and Expenditure for CIP No. 821-2601; and
d. Authorize the Town Manager to Execute the Santa Clara County Community Development Block Grant (CDBG) City/County Contract for Fiscal Year 2023 and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $140,000 to Recognize Receipt and Expenditure of the Community Development Block Grant Fund for CIP No 821-2601.
RECOMMENDATION:
Staff recommends that the Town Council authorize the following actions for ADA improvements to the Adult Recreation Center restroom:
a. Approve Plans and Specifications; and
b. Authorize Advertising the Project for Bid; and
c. Authorize the Town Manager to Execute the County of Santa Clara Grant Agreement (Fiscal Year 2022/23) (Attachment 1) and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $250,000 to Recognize Receipt and Expenditure for CIP No. 821-2601; and d. Authorize the Town Manager to Execute the Santa Clara County Community Development Block Grant (CDBG) City/County Contract for Fiscal Year 2023 (Attachment 2) and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $140,000 to Recognize Receipt and Expenditure of the Community Development Block Grant Fund for CIP No 821- 2601.
PAGE 2 OF 3
SUBJECT: Americans with Disabilities Act (ADA) Public Restroom - Adult Recreation Center (CIP No. 821-2601)
DATE: January 23, 2023
BACKGROUND:
The Adult Recreation Center is lacking an ADA compliant restroom and needs improvements to the ADA accessible approach and pathway into the facility.
The adopted Fiscal Year (FY) 2022/23-2026/27 Capital Improvement Program (CIP) Budget designates funding for ADA Restrooms in the Adult Recreation Center (CIP No. 821-2601).
This project includes design and construction of a single use ADA compliant restroom in the Adult Recreation Center. ADA deficiencies in the approach to the building and new restroom will also be addressed.
Community Development Block Grant and County Supervisor approved funding has been offered to the Town to design and construct an ADA compliant restroom for the Adult Recreation Center. Architectural plans have been developed and permitting has been approved for the project.
DISCUSSION:
The Plans and Specifications for the project, including the final design for an ADA single use restroom, are available for review on the PPW capital improvement webpage at https://www.losgatosca.gov/108/Capital-Improvement-Program.
Once authorized by the Town Council to advertise for bid, the following is the anticipated schedule for the project:
Milestones Anticipated Timeline
Advertise the Project for Bid February 10, 2023
Bids Due March 2, 2023
Present Bid Award to Council April, 4, 2023
Execute Agreement April 2023
Start Construction May 2023
Anticipated Completion August 2023
The engineer’s estimate to complete the Adult Recreation Center ADA compliant restroom is $250,000, including a fifteen percent construction contingency. The Plans and Specifications cover all proposed work.
PAGE 3 OF 3
SUBJECT: Americans with Disabilities Act (ADA) Public Restroom - Adult Recreation Center (CIP No. 821-2601)
DATE: January 23, 2023
CONCLUSION:
Approval of the recommendations will allow for the construction of an ADA compliant restroom for public use and a fully ADA accessible path of travel from the parking lot into the Adult Recreation Center.
FISCAL IMPACT:
The adopted Fiscal Year (FY) 2022/23-2026/27 Capital Improvement Program (CIP) Budget, with the approved allocation of funds would be sufficient for the construction contract, including contingency and project delivery costs. Funds remaining after the completion of this project have the potential to be utilized for additional Town ADA projects at this site or returned to GFAR for other priority projects.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. County of Santa Clara Grant Agreement (Fiscal Year 2022-2023)
2. Community Development Block Grant Fund Agreement
Budget
GFAR $ 183,000
CDBG Grant Funding Previously Approved $ 130,861
CDBG Grant Funding (With Approval of this Staff Report) $ 140,000 Grant Funding - Santa Clara County Board of Supervisors (from approval of this staff report $ 250,000 Total Budget $ 703,861
Costs
Prior Project Expenses $ 86,882
Future Construction Contract with Engineer's Estimate (including 15% contingency) $ 250,000 Total Costs $ 336,882
Available Balance $ 366,979
Americans with Disabilities Act (ADA) Public Restroom Upgrade - Adult Recreation Center CIP No. 821-2601
Grant Agreement Attachment 1
County of Santa Clara
Office of the Clerk of the Board of Supervisors
County Government Center, East Wing
70 West Hedding Street, 10th Floor
San Jose, California 95110-1770
(408) 299-5001 TDD 993-8272
Tiffany Lennear
Clerk of the Board
GRANT AGREEMENT (FY 2022-23)
This Grant Agreement is made between the County of Santa Clara (“County”) and Town of Los Gatos (Grantee), effective June 16, 2022. A grant in the total amount of $250,000 (“Grant”) to be disbursed to the Grantee was approved by the Board of Supervisors (“Board”) on June 16, 2022. This Grant Agreement shall be effective upon approval of all parties. The following terms and conditions apply to the Grant:
1. PURPOSE AND ACTIVITY. Grant funds may only be used by the Grantee for expenses related to Americans with Disabilities Act-related improvements to the Los Gatos-Saratoga Adult Recreation Center. This Grant Agreement is not a pledge or commitment by the County to make any other grants or contributions to Grantee.
2. DURATION OF GRANT-FUNDED ACTIVITY. Grant funds shall be spent on programs or activities, as approved by the Board, from July 1, 2022 to June 30, 2023.
Any Grant funds that remain unexpended after this period shall be returned to the County.
3. DISBURSEMENT. Grantee shall submit proof of compliance with Board direction within five (5) business days after the funds are expended by Grantee or within 30 days after funds are disbursed to Grantee, whichever comes first. If Grant funds are not expended within 30 days, Grantee shall provide an explanation to the Clerk of the Board of Supervisors, including an estimated date for the expenditure. In this case, proof of compliance shall be submitted when the Grant funds are ultimately expended. If matching funds or other conditions are required, proof must be provided prior to disbursement.
4. ACKNOWLEDGMENT. Grantee shall acknowledge disbursement by County by email to the Clerk of the Board of Supervisors at [email protected] no later than five (5) business days after receipt. Grantee shall also acknowledge the contribution of the County in its annual reports and all publications related to the County-funded program, event, or activity.
5. RECORD KEEPING. Grantee shall maintain records, including original receipts and invoices, demonstrating compliance with the Grant Agreement and with conditions associated with matching funds (if any) for a period of seven (7) years. The County may request these records, which shall be provided no later than five (5) business days after
Grant Agreement Attachment 1
request. Grantee shall further comply with any reasonable requests for information about program activities and any reporting requested by the County, and any audit or investigation regarding the proper use of funds. If subsequent reporting on performance measures is required in Paragraph 1, Grantee shall provide a report to the Clerk of the Board of Supervisors in the timeframe specified.
6. RETURN OF FUNDS. Grantee shall return any and all funds that the County determineswere not used for the purpose(s) approved by the Board. The funds shall be returned within five (5) business days after the County’s determination.
7. DUTY TO DEFEND, INDEMNIFY AND HOLD HARMLESS. To the maximum extent allowed by law, Grantee shall indemnify, defend and hold harmless the County and its officers, agents, and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this agreement by the Grantee and/or its agents, employees or sub- contractors, excepting only loss, injury, or damage caused by the sole negligence or willful misconduct of personnel employed by the County.
8. GENERAL RESTRICTIONS:
a. Compliance with all laws. Grantee shall comply with all applicable laws and regulations in the spending of Grant funds. The Grantee shall (a) not use any Grant funds for religious worship, instruction, or proselytization or to pay for equipment or supplies to be used for religious worship, instruction, or proselytization; (b) not use any Grant funds to construct, rehabilitate, or restore any property that is used for religious worship, instruction, or proselytization; (c) not use any Grant funds to engage in partisan political activities or participate in, or endorse, events or activities that advocate for or against political parties, political platforms, political candidates, proposed legislation, or elected officials including any “campaign activities” as defined by state law; and, (d) comply with all applicable laws concerning nondiscrimination and equal opportunity in employment and contracting, including but not limited to the following: Santa Clara County’s policies for contractors on nondiscrimination and equal opportunity; Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equal Pay Act of 1963; California Fair Employment and Housing Act (Gov. Code § 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and the Genetic Information Nondiscrimination Act of 2008. In addition to the foregoing, Grantee shall not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status in the recruitment, selection for training (including but not limited to apprenticeship), hiring, employment, assignment, promotion, layoff, rates of pay or other forms of compensation. Nor shall Grantee discriminate in the provision of services provided under this grant because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. Grantee shall comply with, and shall ensure that all contractors shall conform to and comply with,
Grant Agreement Attachment 1
applicable California prevailing wage laws for work funded by this Grant where applicable.
b. No Assignment. Grantee may not assign or delegate performance of this Grant Agreement or of the project to any other person or entity, without the prior written consent of the County.
c. Governing Law, Forum. This Grant Agreement shall be governed by and construed in accordance with the laws of the State of California, without reference to its conflict of laws provisions. Any disputes or proceedings between the County and Grantee arising from or concerning this Grant Agreement shall be brought in the state or federal court in the counties of Santa Clara, San Francisco, or Sacramento in the sole discretion of the County. Grantee hereby consents to the personal jurisdiction and venue of such courts.
d. Ownership. The County retains all rights, title, and interest in and to the County’s name, seal, and logos.
9. TERMINATION AND EXPIRATION. The County may terminate the Grant Agreement for convenience at any time, for any reason, without penalty or liability. This Grant Agreement shall expire by its own terms on June 30, 2023. Paragraphs 1, 5-9 shall survive termination or expiration of the Grant Agreement.
10. AGREEMENT EXECUTION. Unless otherwise prohibited by law or County policy, the parties agree that an electronic copy of a signed agreement, or an electronically signed agreement, has the same force and legal effect as an agreement executed with an original ink signature. The term "electronic copy of a signed agreement" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed agreement in a portable document format. The term "electronically signed agreement" means an agreement that is executed by applying an electronic signature using technology approved by the County.
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11. AUTHORITY. The person(s) signing this Grant Agreement on behalf of Grantee represents and warrants to County that he or she has the requisite legal authority and power to execute it, and to bind Grantee to the obligations contained herein.
Grant Agreement Attachment 1
ACCEPTED AND AGREED TO:
COUNTY OF SANTA CLARA: RECIPIENT:
By: __________________________ By: __________________________ Name: Tiffany Lennear Name: Laurel Prevetti
Title: Clerk of the Board of Supervisors Title: Town Manager Date: _________________________ Date: _________________________ By: __________________________
APPROVED AS TO FORM AND LEGALITY: Name: Nicolle Burnham Title: Director of Parks and Public
Works
________________________________ Date: _______________________ By:
Date:
By: __________________________
Name: Gabrielle Whelan
Title: Town Attorney
Date: ________________________
By: __________________________
Name: Wendy Wood, CMC
Title: Town Clerk
Date: ________________________
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
SANTA CLARA COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
CITY/COUNTY CONTRACT
between the
COUNTY OF SANTA CLARA and TOWN OF LOS GATOS
FY2023
Contract No. LG-23-01- Adult Recreation Center Restrooms CDBG Grant Amount: $140,000 THIS Contract (hereinafter "CONTRACT" or "AGREEMENT") is made and entered into pursuant to the Catalog of Federal Domestic Assistance (CFDA) 14.218 by and between the COUNTY OF SANTA CLARA, a political subdivision of the State of California (hereinafter “COUNTY”), and the TOWN OF LOS GATOS (hereinafter “CITY” or “SUBRECIPIENT”) participating as a member of the County of Santa Clara COMMUNITY DEVELOPMENT BLOCK GRANT (hereinafter “CDBG”) Joint Powers Agreement. The allocation of funds pursuant to this CONTRACT is a grant. COUNTY approved the allocation and disbursement of Community Development Block Grant (hereinafter “CDBG”) funds on May 3, 2022.
RECITALS
WHEREAS, COUNTY has applied for and received Community Development Block Grant (hereinafter “CDBG”) Entitlement Program funds (hereinafter “FUNDS”), identified more specifically as B-21-UC-06-0007, from the United States Department of Housing and Urban Development (hereinafter “HUD”) as an entitlement jurisdiction pursuant to the provisions of Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383 as amended (hereinafter "ACT"); and
WHEREAS, these FUNDS were received pursuant to CFDA Number 14.218 Department of Housing and Urban Development Community Development Block Grant Entitlement Grants; and WHEREAS, COUNTY on May 3, 2022, authorized the allocation of CDBG FUNDS for Fiscal Year 2023 in the total amount of Two Million Two Hundred Fifty Thousand and Nine Hundred Thirty Five Dollars ($2,252,935); and
WHEREAS, said allocation of FUNDS pursuant to this CONTRACT is a grant and includes One Hundred Forty Thousand Dollars ($140,000) to SUBRECIPIENT; and
WHEREAS, COUNTY has agreed to grant to SUBRECIPIENT a portion of COUNTY’S CDBG FUNDS for the PROGRAM as described below to be operated within COUNTY and the Program will benefit low-, very low- and extremely low-income households, as described herein; and WHEREAS, COUNTY has agreed to the use by CITY, as a SUBRECIPIENT, a portion of COUNTY’S CDBG Entitlement Program funds for a Housing and Community Development Program to be operated within the COUNTY and which shall benefit extremely-low, very-low, and low income households.
NOW, THEREFORE, the parties agree as follows:
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
SECTION 1. PROGRAM
SECTION 1.1 COUNTY agrees to allocate a portion of its current CDBG FUNDS, and/or program income as defined in Title 2 Code of Federal Regulations (hereinafter "CFR") Part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (hereinafter "UNIFORM ADMINISTRATIVE REQUIREMENTS") to SUBRECIPIENT, the total sum of One Hundred Forty Thousand Dollars ($140,000) for the purpose of reimbursing SUBRECIPIENT for project and activity costs and expenses that are allowed and incurred in the implementation of the SUBRECIPIENT’s program (hereinafter "PROGRAM"), as more particularly described in numerous Exhibits marked as noted herein, attached to this Contract, incorporated by this reference. Reimbursement for Fiscal Year 2023 shall not exceed the total sum of the beginning balance of the Fiscal Year 2021 CDBG Funds allocated to CITY, and any roll-over of unexpended CDBG Funds from previous year’s allocations to CITY. Such authority is contingent upon CITY’s and its subrecipients’ full compliance at all times with all Federal Rules and Regulations governing the CDBG Program, the COUNTY CDBG Reallocation Guidelines, and all other applicable laws.
SECTION 2. TERM
SECTION 2.1 The purpose of this CONTRACT is for the COUNTY to disburse CDBG FUNDS for eligible activities relating to SUBRECIPIENT PROGRAM. Unless amended or terminated prior to its expiration, the term of this CONTRACT for FY2021 disbursement and expenditure purposes will begin on July 1, 2022 and the CONTRACT will end on June 30, 2023.
SECTION 2.2 RENEWAL TERM. The Parties may mutually agree to renew this AGREEMENT through a contract amendment.
SECTION 3. OBLIGATIONS OF SUBRECIPIENT
SECTION 3.1 SUBRECIPIENT will provide COUNTY with written certification that the following information is on file at the CITY offices, and is subject to monitoring by HUD and/or COUNTY (County’s Housing and Community Development Department, “OSH”) OSH staff, or their representatives:
a. Names and addresses of the current CITY Manager and CITY Council members. b. Records of all discussions and actions taken at CITY Council meetings pertaining to the CDBG PROGRAM.
c. Information and housing objectives for the Consolidated Plan required by HUD at the beginning of each program year.
SECTION 3.2 Program Performance by Subrecipient. SUBRECIPIENT warrants and represents that it shall do all of the following:
a. Conduct the PROGRAM within Santa Clara County for the purpose of benefiting extremely low, low-or-moderate income households as defined in Exhibit A2 attached to this AGREEMENT, and b. Ensure PROGRAM activities within Santa Clara County benefitting low –or-moderate- income (LMI) individuals or households require a minimum 45.43% of clients be of low –or -moderateincome, and c. Ensure PROGRAM activities within Santa Clara County benefitting low-and-moderate-income housing (LMH) activities require 100% of homeowners be of low-or-moderate-income, and d. Ensure PROGRAM activities within Santa Clara County benefitting low-and-moderate-income area (LMA) activities require that at least 38.49% (County CDBG exception percentage) of residents of that area be of low- or -moderate- income.
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
e. The SUBRECIPIENT shall be responsible for administering PROGRAM as more fully described in Exhibit “A”, in a manner satisfactory to the COUNTY and consistent with any and all standards required as a condition of providing these Funds.
f. File Quarterly Progress Reports (hereinafter "QPR") as required by COUNTY on the type and number of services rendered through the operation of the PROGRAM, and a description of the beneficiaries of these services, and the QPR will evaluate the manner in which the PROGRAM is achieving its objectives and goals according to the standards established by COUNTY. The QPR will be due ten days after the close of each quarter and must cover the three months immediately preceding the date on which the QPR is filed, except for the 4 th quarter. The 4th and
final quarter report shall be due five days after the close of the fiscal year. g. Coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services. h. Seek out and apply for other sources of revenue in support of its operation or services from local, state, federal and private sources and, in the event of receipt of such award(s), inform COUNTY in writing within ten days of receipt of such award. i. Include an acknowledgement of COUNTY funding and support on SUBRECIPIENT stationery relating to the PROGRAM and on all appropriate PROGRAM-related public or County publications using words to the effect: “funded in whole or in part by the County of Santa Clara through the Housing and Community Development Act of 1974, as amended.” SECTION 3.3 Fiscal Responsibilities of CITY. CITY shall:
a. Appoint and submit the name of a fiscal agent who will be responsible for the financial and accounting activities of SUBRECIPIENT, including the receipt and disbursement of SUBRECIPIENT Funds. The COUNTY must be notified immediately in writing of the appointment of any new fiscal agent and that agent’s name.
b. Comply with the requirements and standards of Title 24 Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning CDBG and all federal regulations and policiesissued pursuant to these regulations and 2 CFR Part 200, UNIFORM ADMINSTRATIVE REQUIREMENTS.
c. Document all PROGRAM costs by maintaining records in accordance with Section 3.4 below. d. Submit to the COUNTY, based on an agreed upon schedule, a request for payment, together with all supporting documentation. Invoices requesting disbursements submitted after the expiration of the CONTRACT will be honored only for eligible charges incurred during the CONTRACT term. All invoices must be submitted by the CONTRACT expiration date or within such other time period specified by the COUNTY for this CONTRACT term. Funds not disbursed will be reprogrammed for future reallocation by the County or may be carry forwarded and included into the SUBRECIPIENTS next fiscal year contract. e. Certify current and continuous insurance coverage, subject to COUNTY approval and in accordance with requirements as outlined in Exhibit F, “Insurance Requirements.” f. Make all reasonable efforts to submit final invoices to COUNTY by April 1, 2023 to draw down the entirety of the allocation of funds herein by April 15, 2023 to ensure COUNTY complies with “timely performance” in accordance with the CDBG regulations 24 CFR 570.902 and to ensure the COUNTY is able to meet the timeliness test 60 days prior to the end of the program year, which is usually on or around April 30.
g. Items a. through f. above are express conditions precedent to disbursement of any COUNTY funding and failure to comply with these conditions will, at discretion of COUNTY, result in suspension of funding or termination of this CONTRACT.
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
h. If SUBRECIPIENT does not use CDBG Funds in accordance with the requirements of this CONTRACT, SUBRECIPIENT is liable for repayment of all disallowed costs. Disallowed costs may be identified through audits, monitoring or other sources. SUBRECIPIENT is required to respond to any adverse findings which may lead to disallowed costs subject to provisions of 2 CFR Part 200 Subpart E, “Cost Principles.”
SECTION 3.4 CDBG Housing Rehabilitation Revolving Loan Fund Conditions. If CITY maintains a Revolving Loan Fund (“RLF”), CITY will maintain the RLF as a separate fund (with a set of accounts that are independent of other program accounts) established for the purpose of carrying out specific activities which, in turn, generate payments to the fund for use in carrying out the same activities. The following are additional CITY RLF conditions and requirements:
a. The RLF must be capitalized only with housing rehabilitation or housing acquisition repayment funds, which are considered CDBG Program Income for CDBG purposes. CDBG program Funds may not be drawn down to serve as the initial available funding or ongoing funding of the RLF. b. The RLF will cover a single, specific activity (i.e. housing rehabilitation). Properties that may be assisted under the RLF include:
Single-family properties occupied by low- and moderate-income households with annual gross incomes not to exceed 80% of the median area income threshold by family size, as issued by HUD for each program year; and, Multi-family (rental) properties with at least 51% of the units (or such percentage as published by HUD as an exception area) occupied by tenants with annual gross incomes which meet the same HUD annual income thresholds. c. Program income received by the RLF from rehabilitation loan principal and interest repayments must be held in an interest bearing account. Note: Principal repayments and the interest paid by borrowers of CDBG-funded loans made from the RLF are considered CDBG Program Income and subject to the CDBG Program Income requirements.
d. Any accrued interest on the total funds maintained in the account must be returned to HUD annually, to be remitted through the COUNTY to the U.S. Treasury. e. The COUNTY’s Consolidated Plan must be amended following a public review process to reflect the establishment of a RLF as a strategy to address priority-housing needs. The scope of the housing RLF should be described.
f. In future years, the RLF’s estimated production and program income should be incorporated into each Annual Action Plan, as well as accomplishments and program income reported in the Consolidated Annual Performance and Evaluation Report (CAPER). g. An amendment of the applicable Annual Action Plan is required in order to transfer any RLF funds to the grantee’s main account for use with non-RLF but eligible activities. (See Title 24 CFR 570 Subpart J, 570.500 “Definitions,” 570.500(b) “Revolving Fund.
SECTION 3.5 Establishment and Maintenance of Records: CITY shall a. Maintain complete and accurate records of all its transactions including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, bank statements, client statistical records, personnel, property and all other pertinent records sufficient to reflect properly (1) all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
be incurred to perform this CONTRACT or to operate the PROGRAM, and (2) all other matters covered by this CONTRACT.
SECTION 3.6 Preservation of Records. CITY will preserve and make available its records:
a. Until four years following from the date the activity is reported in the Urban County’s Consolidated Annual Performance Evaluation Report (CAPER) to HUD; or b. For such longer period, if any as is required by applicable law; or c. If this AGREEMENT is completely or partially terminated, the records relating to the work terminated will be preserved and made available for a period of five years from the date of termination.
SECTION 3.7 Examination of Records and Project Site: At any time during normal business hours, and as often as may be deemed necessary, CITY agrees that HUD and the OSH, and/or any duly authorized representatives, may until expiration of (a) five years after final payment under this AGREEMENT, (b) five years from the date of termination of this AGREEMENT, or (c) such longer period as may be described by applicable law, have accessto and the right to examine its offices and facilities used in the performance of this AGREEMENT or the operation of the PROJECT, and all its records with respect to the PROJECT and all matters covered by this AGREEMENT. CITY also agrees that the OSH or any duly authorized representatives will have the right to audit, examine, and make excerpts or transactions of and from such records and to make audits of all AGREEMENTs and SUB-AGREEMENTs, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to the PROJECT and matters covered by this AGREEMENT. CITY will be notified in advance that an audit will be conducted. CITY will be required to respond to any audit findings and have the responses included in the final audit report. The cost of any such audit will be borne by COUNTY.
The CITY must provide language in its contracts with all subrecipients stipulating that at any time during normal business hours, and as often as may be deemed reasonably necessary, subrecipient agrees that HUD and the COUNTY, and/or any authorized representatives may have accessto and the right to examine subrecipient CDBG records and facilities until expiration of:
a. five years after expiration of this CONTRACT;
b. five years from the date of termination of this CONTRACT; or c. five such longer period as may be prescribed by law.
CITY also agrees that COUNTY and any authorized representatives has the right to audit, examine, and make excerpts ortransactions of and from,such records and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to the PROGRAM and matters covered by this CONTRACT. CITY will be notified in writing of intended audits. CITY will be notified in writing of intended inspections of records and facilities and of intended audits no less than three business days before such inspections or audits. CITY is required to respond in writing to the OSH Director any audit findings within thirty (30) days of receipt of written audit findings. Responses will be included in the final audit report.
SECTION 3.8 Compliance with Law. CITY staff warrants and represents that it will become familiar and comply with and cause all its subcontractors, independent contractors, and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees including, but not limited to, those federal rules and regulations, executive orders, and statutes identified in
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
Exhibit D “Assurances” and must comply with the requirements and standards of 2 CFR PART 200, Subpart E “Cost Principles” as described in Section 2(A)(9) of this CONTRACT.
SECTION 3.9 Suspension and Termination. In accordance with 24 CFR 85.43, suspension or termination of this Contract may occur if the CITY materially fails to comply with any term or condition of this CONTRACT.
This CONTRACT may also be terminated for convenience or cause in accordance with 24 CFR 85.44, or in accordance with any other provision of this CONTRACT allowing for contract termination, cancellation or expiration.
SECTION 3.10 Reversion of Assets. Upon expiration or termination of this CONTRACT, or in the event HUD cancels its PROGRAM for any reason, the CITY will transfer to the COUNTY any CDBG Funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG Funds. Any real property under the CITY’s control that was acquired or improved in whole or in part with CDBG Funds (including CDBG Funds provided to CITY in the form of a loan) in excess of $25,000:
a. Must be used to meet one of the national objectives stated in Title 24 CFR part 570.208 for a period of five years after expiration of this CONTRACT or for such longer period of time as required by the COUNTY; or,
b. The CITY must reimburse the COUNTY an amount equal to the current market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property (reimbursement is not required after the period of time specified in Section 3.10 above).
SECTION 3.11 “Section 3” Provisions.
a. Compliance. Compliance with the provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this CONTRACT, shall be a condition of the federal financial assistance provided under this CONTRACT and binding upon the COUNTY, the CITY, and any subrecipients. Failure to fulfill these requirements shall subject the COUNTY, the CITY, and any subrecipients, their successors and assigns to those remedies specified in the CONTRACT through which federal assistance is provided and any other remedies available under applicable law. The CITY certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The CITY further agrees to comply with these “Section 3” requirements and to include the following language in all subrecipient contracts executed under this CONTRACT or using CDBG Funds:
“The work to be performed under the CONTRACT is a project or activity assisted under a PROGRAM providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project or activity area and agreements for work in connection with the project or activity be awarded to business concerns which are located in, or owned in substantial part by persons residing in, the areas of the project or activity.” The CITY certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements.
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
b. Notifications. The CITY and its subrecipients must send to each labor organization or representative of workers with which it has a collective bargaining agreement or other agreement or understanding, if any, a notice advising said labor organization or workers’ representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
c. Subcontracts. The CITY and its subcontractors will include this Section 3 clause in every contract and will take appropriate action pursuant to the contract upon a finding that the subcontractors is in violation of regulations issued by COUNTY. The CITY will not contract with any subcontractors where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let, authorize, permit or allow any contract unless the subcontractors has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
SECTION 4. OBLIGATIONS OF COUNTY
SECTION 4.1 Method of Payment. During the CONTRACT term, COUNTY shall disburse CDBG Funds to CITY on a reimbursement basis unless otherwise provided herein for all allowable costs and expenses incurred in connection with the PROGRAM, not to exceed the sum of $140,000.
COUNTY may, at any time in its absolute discretion, elect to suspend or terminate payment to, SUBRECIPIENT in whole or in part, pursuant to this CONTRACT based on SUBRECIPIENT’s non-compliance, including, but not limited to, incomplete documentation of expenses, failure to substantially meet goals and objectives as required in Exhibits A (Scope of Services, Performance Outcomes and Measurements, and Budget), failure to submit adequate quarterly progress reports as required herein or other incidents of non-compliance as described in Section 6.2 of this CONTRACT or based on the refusal by SUBRECIPIENT to accept any additional conditions that may be imposed by HUD at any time, or based on the suspension or termination of the grant to COUNTY made pursuant to the Housing and Community Development Act of 1974, as amended.
SECTION 4.2 Non-Compliance. In the case of CITY substantial non-compliance prior to exercising any recourse authorized herein, COUNTY will initiate the following procedure:
a. Notify the CITY Coordinator in writing of the alleged substantial non-compliance and request an immediate meeting between CITY Coordinator and COUNTY OSH CDBG Program Manager to resolve issues. If issues are not resolved satisfactorily within thirty (30) days, notify CITY Manager in writing requesting an immediate meeting between CITY Manager, CITY Coordinator and COUNTY OSH CDBG Program Manager to resolve the issues.
b. Determine if any portion of the reimbursement request meets all eligible criteria, and if so, authorize payment for the eligible portion of the reimbursement request; c. Review the procedure to be followed pursuant to Section 6.b. of this CONTRACT (Contract Compliance, Corrective Action Procedure); and
d. If applicable, forward a written report to HUD’s Regional Office detailing the substantial noncompliance issues and the steps being instituted to correct performance with a copy to the CITY Manager.
SECTION 4.3 Compliance with Law. COUNTY shall become familiar and comply with, and require all its subcontractors and employees, if any, to become familiar and comply with, all applicable federal, state and local laws, ordinances, codes, regulations and decrees including, but not limited to, those federal rules and regulations, executive orders, and statutes identified in Exhibit D “Assurances.” Specifically, COUNTY shall comply with the requirements of OMB Circular No. A-87, “Principles for Determining Costs Applicable to Grants
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
and Contracts with State, Local, Federally recognized Indian Tribal Governments,” and OMB Circular A133 “Audits of State and Local Governments.”
In addition, COUNTY will comply with federal regulations as cited in 24 CFR Part 570, Subpart J, and 24 CFR Part 85, and all other local, state or federal laws applicable to this PROGRAM.
SECTION 5. PROGRAM COORDINATION
SECTION 5.1 COUNTY. The County Executive will assign a single DIRECTOR for COUNTY who will render overall supervision of the progress and performance of this CONTRACT by COUNTY. All services agreed to be performed by COUNTY will be at the overall direction of the DIRECTOR.
SECTION 5.2 SUBRECIPIENT. As of the date hereof, SUBRECIPIENT has designated Dan Keller to serve as CDBG Liaison and to assume overall responsibility for the progress and execution of this CONTRACT. The COUNTY will be immediately notified in writing of the appointment of a new CDBG Liaison.
SECTION 5.3 NOTICES. All notices or other correspondence required or contemplated by this CONTRACT shall be sent to the parties at the following addresses:
COUNTY: County of Santa Clara
Office of Supportive Housing
Housing and Community Development
2310 N. First Street, Suite 201
San Jose, CA 95131
CITY: Laurel Prevetti, Town Manager
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
All notices must either be hand delivered or sent by United States mail, registered or certified, postage prepaid.
Notices given in such a manner will be deemed received when hand delivered or seventy-two (72) hours after deposit in the United States mail. Any party may change his or her address for the purpose of this section by giving five (5) days written notice of such change to the other party in the manner provided in this section.
SECTION 6. CONTRACT COMPLIANCE
SECTION 6.1 Monitoring and Evaluation of Services. Evaluation and monitoring of the PROGRAM performance is the mutual responsibility of COUNTY and CITY, with the understanding that HUD looks to COUNTY as the sole responsible party for meeting PROGRAM requirements. CITY will furnish data, statements, records, information and reports to COUNTY as necessary for COUNTY to monitor, review and evaluate the performance of the PROGRAM and its components. COUNTY has the right to request the services of an outside agent to assist in any such evaluation. Such services will be paid for by COUNTY.
SECTION 6.2 CONTRACT NON-COMPLIANCE. If CITY fails to comply with any provision of this CONTRACT, COUNTY has the right to terminate this CONTRACT or to require corrective action to enforce compliance with such provision. Such enforcement authority is pursuant to these CONTRACT terms and in accordance with the provisions of 24 CFR 85.43. Examples of non-compliance include but are not limited to:
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
a. If SUBRECIPIENT (with or without knowledge) has made any material misrepresentation of any nature with respect to any information or data furnished to COUNTY in connection with the PROGRAM. b. If there is pending litigation with respect to the performance by CITY of any of its duties or obligations under this CONTRACT, which may materially jeopardize or adversely affect the undertaking of or the carrying out of the PROGRAM. The CITY and COUNTY may negotiate a reinstatement of this CONTRACT following termination or conclusion of such litigation.
c. If CITY hastaken any action pertaining or related to the PROGRAM or this CONTRACT, which action required COUNTY approval, and such approval was not obtained before the action was taken. d. If CITY is in default under any provision of this CONTRACT. e. If CITY makes illegal use of CDBG Funds.
f. If SUBRECIPIENT submits to COUNTY any report which is incorrect or incomplete in any material respect.
g. If CITY fails to meet all provisions of the COUNTY CDBG Reallocation Guidelines or the Joint Powers Agreement currently in full force and effect between the parties hereto.
SECTION 6.3. Corrective Action Procedure. COUNTY, in its absolute discretion and in lieu of immediately terminating this CONTRACT, upon occurrence or discovery of noncompliance by CITY pursuant to this CONTRACT, may give CITY notice of COUNTY’S intention to consider corrective action to enforce compliance utilizing the Corrective Action Procedure outlined below. Such notice will indicate the nature of the noncompliance and the procedure whereby CITY will have the opportunity to participate in formulating any corrective action recommendation. The Corrective Action Procedure contemplated herein is as follows:
1. COUNTY OSH Program Manager and CITY Manager will negotiate a time frame and course of action for correcting the non-compliance;
2. CITY will provide COUNTY with a written plan and time frame for correcting the non-compliance issue(s), subject to COUNTY approval. Such plan must be submitted by CITY to COUNTY within thirty (30) days of the initial non-compliance meeting between CITY and COUNTY;
3. CITY must initiate the corrective action procedure within sixty (60) days of the initial noncompliance meeting between the COUNTY OSH Program Manager and the CITY Coordinator (COUNTY, at its sole discretion, may extend this timeline for extenuating circumstances);
4. COUNTY will have the right to require the presence of CITY officers at any hearing or meeting called for the purpose of considering corrective action;
5. CITY has the right to appeal all findings of non-compliance, and subsequent corrective action, with both the COUNTY Board of Supervisors and HUD; and,
6. County reserves the right to seek any and all other remedies (equitable or other) available to it under the law.
In the event that CITY does not implement the corrective action recommendations in accordance with the corrective action timetable as approved by COUNTY, COUNTY may suspend payments hereunder, terminate this CONTRACT and/or exercise any other right or remedy available to it under the law.
SECTION 7. TERMINATION
SECTION 7.1 Termination for Cause. COUNTY may terminate this CONTRACT by providing written notice to SUBRECIPIENT for any of the following reasons:
a. Uncorrected CONTRACT non-compliance as defined in Section 6.2; SUBRECIPIENT is in bankruptcy or receivership; a member of the SUBRECIPIENT’s Board of Directors or the Executive Director is
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
found to have committed fraud or; there is reliable evidence that SUBRECIPIENT is unable to perform the PROGRAM as described in the attached Exhibits. The date of termination will be as specified in the notice. b. If CITY is in bankruptcy or receivership;
c. If the CITY or a member of CITY’S Executive Management staff is found to have committed fraud in connection with or related to the PROGRAM;
d. If the COUNTY determines or has reason to believe that there is reliable evidence that CITY is unable to effectively operate the PROGRAM or operate the PROGRAM in accordance with all requirements and obligations; or
e. If CITY is in violation of any material term or condition of this CONTRACT.
SECTION 7.2 Termination for Convenience. In addition to the COUNTY’S right to terminate for cause set forth in Section 7.1, COUNTY may suspend or terminate this CONTRACT for any reason by giving thirty (30) days prior written notice to the other party. Upon receipt of such notice, performance of the services hereunder will be immediately discontinued. In the event that this CONTRACT is terminated, SUBRECIPIENT may be required to return funds according to HUD regulations. Upon termination of this CONTRACT, SUBRECIPIENT must immediately provide COUNTY access to all documents, records, payroll, minutes of meetings, correspondence and all other data pertaining to the CDBG FUNDS granted to SUBRECIPIENT pursuant to this CONTRACT. a. Upon termination, CITY will:
1. If termination is for convenience, be reimbursed for all documented allowable costs and expenses incurred in connection with the PROGRAM up to the date of such termination. COUNTY shall be obligated to compensate CITY only for allowable costs and expenses as determined by an audit or other monitoring method;
2. Turn over to COUNTY immediately any and all copies of studies, reports and other data, whether or not completed, prepared by CITY or its subcontractors, if any, in connection with this CONTRACT.
Such materials shall become property of COUNTY. CITY, however, shall not be liable to COUNTY for COUNTY’S use of incomplete materials or for COUNTY’S use of completed documents if used for reasons not otherwise provided for or contemplated under the terms of this CONTRACT; and
3. Transfer to the COUNTY any CDBG Funds on hand and any accounts receivable attributable to the use of the CDBG Funds. All assets acquired with the CDBG Funds shall be returned to the COUNTY unless otherwise negotiated by separate contract per the provisions ofthe COUNTY CDBG REALLOCATION GUIDELINES. b. Upon termination of this CONTRACT, CITY will immediately provide COUNTY access to all documents, records, payroll, minutes of meetings, correspondence, and all other data pertaining to the CDBG Funds.
SECTION 8. PURCHASING REAL OR PERSONAL PROPERTY
SECTION 8.1 SUBRECIPIENT will comply with all applicable Federal Regulations as detailed by 24 CFR Part 570, Subpart J, i.e. 570.500 (Definitions), 570.503 (Agreements with SUBRECIPIENTs), 570.504 (Program Income), and 570.505 (Use of Real Property), with regards to the use and disposal of Real or Personal Property purchased in whole, or in part, with CDBG FUNDS.
SECTION 8.2 Grants. If a grant is provided for the acquisition of real property, SUBRECIPIENT will continually operate its PROGRAM for a minimum period of five (5) years from the effective date of this CONTRACT. This obligation will survive the term of this CONTRACT, the assignment or assumption of this CONTRACT and the sale of the property prior to expiration of the obligation period as set forth in this paragraph.
If this obligation is not fully met, SUBRECIPIENT may be required to reimburse the COUNTY. The COUNTY may consider, but will not be limited by, the following factors in calculating the reimbursement obligation: initial
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
grant sum, the duration of the initial contractual obligation to operate the PROGRAM versus the actual duration of operation, and the appreciated value.
SECTION 8.3 Security Document. As a condition precedent to COUNTY granting funds for the purchase ofreal property or an option to purchase real property, CITY will prepare and require itssubrecipient(s) to execute a Loan Agreement, Promissory Note, Deed of Trust and such other contracts restricting the use of said real property for purposes consistent with this CONTRACT and HUD and CDBG requirements.
SECTION 9. RELOCATION, ACQUISITION, AND DISPLACEMENT. CITY agrees to comply with 24 CFR 570.606 and all other applicable laws and regulations relating to the acquisition and disposition of all real property utilizing CDBG funds, and to the displacement of persons, businesses, and non-profit organizations as a direct or indirect result of any acquisition or disposition of real property utilizing or supported with the use of CDBG funds. CITY agrees to comply with all applicable state and federal laws, County ordinances, resolutions and policies concerning or related to the displacement of individuals from their residences or homes.
SECTION 10. PROGRAM INCOME. Income generated from activities carried out with CDBG Funds is Program Income and shall be regulated by all provisions of Title 24 CFR 570 Subpart J “Grant Administration,” 570.503 “Agreements with Subrecipients,” and 570.504 “Program Income.” In addition, all provisions of the COUNTY REALLOCATION GUIDELINES apply to this CONTRACT. CITY must quarterly report all program income generated by activities carried out with CDBG funds made available under this CONTRACT. By way of further limitations, CITY may use such income during the CONTRACT term for activities permitted by this CONTRACT and shall reduce requests for additional funds by the amount of any such Program Income balances on hand. All unused Program Income will be returned to the COUNTY at the end of the CONTRACT term with the exception of rehabilitation loan payments.
SECTION 11. INDEPENDENT CONTRACTOR
SECTION 11.1. This is a CONTRACT by and between independent contractors and is not intended and will not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association between SUBRECIPIENT and COUNTY. SUBRECIPIENT, including its officers, employees, agents or independent contractors or subcontractors, shall not have any claim under this Contract or otherwise against COUNTY for any Social Security, Worker’s Compensation, or employee benefits extended to employees of COUNTY. If any obligation is performed for or on behalf of SUBRECIPIENT through a contractor or subcontractor, SUBRECIPIENT will remain fully responsible for the performance of all obligations under this Contract and SUBRECIPIENT will be solely responsible for all payments due to its contractors and subcontractors. No contract, subcontract or other agreement entered into by SUBRECIPIENT with any third party in connection with this CONTRACT will provide for any indemnity, guarantee or assumption of liability by, or other obligation of, County with respect to such arrangement. No contractor or subcontractor will be deemed a third party beneficiary for any purposes under or to this AGREEMENT.
SECTION 12. ASSIGNABILITY – THIRD PARTY CONTRACTORS
SECTION 12.1 None of the work or services to be performed hereunder will be assigned, delegated or subcontracted to third parties without the prior written approval of COUNTY. Copies of all third party contracts shall be submitted to COUNTY at least ten days prior to the proposed effective date. In the event COUNTY approves of any such assignment, delegation or sub-contract, the subcontractors, assignees or delegates shall be deemed to be employees of SUBRECIPIENT, and SUBRECIPIENT will be responsible for their performance and any liabilities attaching to their actions or omissions.
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
SECTION 12.2 This CONTRACT may not be assumed nor assigned to another subrecipient, person, partnership or any other entity without the prior written approval of COUNTY.
SECTION 13. DISCLOSURE OF CONFIDENTIAL CLIENT INFORMATION SECTION 13.1 COUNTY AND SUBRECIPIENT agree to maintain the confidentiality of any information regarding existing, former or prospective applicants for services offered by the PROGRAM pursuant to this CONTRACT or their immediate families which may be obtained through application forms, interviews, tests, reportsfrom public agencies or counselors, or any othersource. Without the written permission of the applicant, such information may be divulged only if permitted by law as necessary for purposes related to the performance or evaluation of the services and work to be provided pursuant to or under this CONTRACT, and then only to persons having responsibilities under this CONTRACT, including those furnishing services under the PROGRAM through approved subcontracts.
SECTION 14. HOLD HARMLESS
SECTION 14.1 In addition to the indemnity obligations set forth in Exhibit F, “Insurance Requirements,” SUBRECIPIENT warrants and represents that it shall indemnify, save, defend and hold harmless the COUNTY, its employees, agents, and officials, members of boards and commissions, from, for and against any and all claims, costs, settlements, litigation expenses, attorney’s fees and court costs, allegations, direct and indirect damages, injuries, illnesses, deaths, actions, suits, charges and judgments whatsoever, arising out of or relating to (a) SUBRECIPIENT's negligent or intentional acts or omissions; (b) SUBRECIPIENT'S breach or violation of any term or condition of this CONTRACT; (c) SUBRECIPIENT’sfailure to comply with any applicable law, decrees, ordinance, code, regulations or other standard, including but not limited to as set forth in Exhibit D, “Assurances,” attached herein and incorporated by reference.
SECTION 15. WAIVER OF RIGHTS AND REMEDIES
SECTION 15.1 In no event will any payment by COUNTY constitute or be construed to be a waiver by COUNTY of any breach or violation of the requirements, obligations, conditions, covenants or other provisions of this CONTRACT or any default which may then exist on the part of CITY, and the making of any such payment while any such breach, violation or default exists will in no way impair or prejudice any right or remedy available to COUNTY with respect to such breach, violation or default. In no event will payment to CITY by COUNTY in any way constitute a waiver by COUNTY of itsrightsto recoverfrom CITY the amount of money paid to SUBRECIPIENT on any item which is not eligible for payment under or for the PROGRAM or this CONTRACT or any other right.
No delay or omission by COUNTY to exercise any right occurring upon any noncompliance or default by CITY with respect to any of the terms of this Contract shall impair any such right or power or be construed to be a waiver thereof. A waiver by COUNTY of any of the covenants, conditions or agreements to be performed by CITY shall not be construed to be a waiver of any succeeding breach thereof or of any covenant, condition or agreement herein contained.
SECTION 16. COMPLIANCE WITH ALL LAWS, INCLUDING NONDISCRIMINATION, EQUAL OPPORTUNITY,
AND WAGE THEFT PREVENTION
a. Compliance with All Laws. CITY shall comply with all applicable Federal, State, and local laws, regulations, rules, and policies (collectively, “Laws”), including but not limited to the non-discrimination, equal opportunity, and wage and hour Laws referenced in the paragraphs below. b. Compliance with Non-Discrimination and Equal Opportunity Laws: CITY shall comply with all applicable Laws concerning nondiscrimination and equal opportunity in employment and contracting, including but not limited to the following: Santa Clara County’s policies for Contractors on nondiscrimination and equal
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
opportunity; Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equal Pay Act of 1963; California Fair Employment and Housing Act (Gov. Code § 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and the Genetic Information Nondiscrimination Act of 2008. In addition to the foregoing, CITY shall not discriminate against any subconsultant, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status in the recruitment, selection for training (including but not limited to apprenticeship), hiring, employment, assignment, promotion, layoff, rates of pay or other forms of compensation. Nor shall CITY discriminate in the provision of services provided under this contract because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. c. Compliance with Wage and Hour Laws: CITY shall comply with all applicable wage and hour Laws, which may include but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and, if applicable, any local minimum wage, prevailing wage, or living wage Laws. d. Definitions: For purposes of this Section 14, the following definitions shall apply. A “Final Judgment” shall mean a judgment, decision, determination, or order (a) which is issued by a court of law, an investigatory government agency authorized by law to enforce an applicable Law, an arbiter, or arbitration panel and (b) for which all appeals have been exhausted or the time period to appeal has expired. For pay equity Laws, relevant investigatory government agencies include the federal Equal Employment Opportunity Commission, the California Division of Labor Standards Enforcement, and the California Department of Fair Employment and Housing. Violation of a pay equity Law shall mean unlawful discrimination in compensation on the basis of an individual’ssex, gender, gender identity, gender expression, sexual orientation, race, color, ethnicity, or national origin under Title VII of the Civil Rights Act of 1964 as amended, the Equal Pay Act of 1963, California Fair Employment and Housing Act, or California Labor Code section 1197.5, as applicable. For wage and hour Laws, relevant investigatory government agencies include the federal Department of Labor, the California Division of Labor Standards Enforcement, and the City of San Jose’s Office of Equality Assurance. e. Prior Judgments, Decisions or Orders against CITY: By signing this Agreement, CITY affirms that it has disclosed any final judgments that (A) were issued in the five years prior to executing this Agreement by a court, an investigatory government agency, arbiter, or arbitration panel and (B) found that CITY violated an applicable wage and hour law or pay equity law. CITY further affirms that it has satisfied and complied with – or hasreached Agreement with the County regarding the manner in which it willsatisfy – any such final judgments. f. Violations of Wage and Hour Laws or Pay Equity Laws During Term of Contract: If at any time during the term of this Agreement, CITY receives a Final Judgment rendered against it for violation of an applicable wage and hour Law or pay equity Law, then CITY shall promptly satisfy and comply with any such Final Judgment. CITY shall inform the Office of the County Executive-Office of Countywide Contracting Management (OCCM)of any relevant Final Judgment against it within 30 days of the Final Judgment becoming final or of learning of the Final Judgment, whichever is later. CITY shall also provide any documentary evidence of compliance with the Final Judgment within 5 days of satisfying the Final Judgment. Any notice required by this paragraph shall be addressed to the Office of the County Executive-OCCM at 70 W. Hedding Street, East Wing, 11th Floor, San José, CA 95110. Notice provisionsin this paragraph are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the Office of the County Executive-OCCM satisfies the notice requirements in this paragraph.
g. Access to Records Concerning Compliance with Pay Equity Laws: In addition to and notwithstanding any other provision of this Agreement concerning access to CITY’s records, CITY shall permit the County and/or its authorized representatives to audit and review records related to compliance with applicable pay equity Laws. Upon the County’s request, CITY shall provide the County with access to any and all
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
facilities and records, including but not limited to financial and employee records, that are related to the purpose of this Subsection H, except where prohibited by federal or state laws, regulations or rules. County’s access to such records and facilities shall be permitted at any time during CITY’s normal business hours upon no less than 10 business days’ advance notice.
h. Pay Equity Notification: CITY shall (1) at least once in the first year of this Agreement and annually thereafter, provide each of its employees working in California and each person applying to CITY for a job in California (collectively, “Employees and Job Applicants”) with an electronic or paper copy of all applicable pay equity Laws or (2) throughout the term of this Agreement, continuously post an electronic copy of all applicable pay equity Laws in conspicuous places accessible to all of CITY’s Employees and Job Applicants. i. Material Breach: Failure to comply with any part of this Section 14 shall constitute a material breach of this Agreement. In the event of such a breach, the County may, in its discretion, exercise any or all remedies available under this Agreement and at law. County may, among other things, take any or all of the following actions:
(i)Suspend or terminate any or all parts of this Agreement. (ii)Withhold payment to CITY until full satisfaction of a Final Judgment concerning violation of inapplicable wage and hour Law or pay equity Law.
(iii)Offer CITY an opportunity to cure the breach.
j. Subcontractors: CITY shall impose all of the requirements set forth in this Section 14 on any subcontractors permitted to perform work under this Agreement. This includes ensuring that any subcontractor receiving a Final Judgment for violation of an applicable Law promptly satisfies and complies with such Final Judgment.
This non-discrimination provision must be included in CITY’S contracts with sub-contractors and vendors when utilizing (directly or indirectly) the CDBG FUNDS disbursed for the PROGRAM.
SECTION 17. AMENDMENTS. Amendments to the terms or conditions of this CONTRACT must be requested in writing by an authorized representative of the party desiring amendments, and any amendment will be effective only upon the mutual agreement in writing of the parties hereto by and through the parties authorized representatives. Amendments will not invalidate this CONTRACT nor relieve or release the COUNTY or the CITY from its obligations under this CONTRACT.
SECTION 18. TRANSFER OF FUNDS. During the CONTRACT term, CITY may choose to transfer funds within the PROGRAM described in Exhibits A through F. Fund transfers exceeding $30,000 as well as new projects or activities added to CITY’s PROGRAM, require City Council and County Board of Supervisors approval. New projects must be the same or similar in kind of the activity that was originally approved by the Board of Supervisors and City Council.
SECTION 19. INTEGRATED DOCUMENT- JOINT POWERS AGREEMENT. This CONTRACT, in conjunction with the Santa Clara County CDBG Joint Powers Agreement (JPA), contains the entire agreement between COUNTY and CITY with respect to the subject matter hereof. No written or oral agreements, other than the Santa Clara County CDBG Joint Powers Agreement, with any officer, agent or employee of COUNTY prior to execution of this Contract will affect or modify any of the terms or obligations contained in any documents comprising this Contract.
SECTION 20. NON-SMOKING POLICY. Contractor and its employees, agents and subcontractors shall comply with the County’s No Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as amended from time to time), which prohibits smoking: (1) at the Santa Clara Valley Medical Center Campus
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
and all County-owned and operated health facilities; (2) within thirty (30) feet surrounding County-owned buildings and leased buildings where the County is the sole occupant; and (3) in all County vehicles.
SECTION 21. FOOD AND BEVERAGE STANDARDS.
Except in the event of an emergency or medical necessity, the following nutritional standards shall apply to any foods and/or beverages purchased by CITY with County funds for County-sponsored meetings or events.
If food is to be provided, healthier food options shall be offered. “Healthier food options” include (1) fruits, vegetables, whole grains, and low fat and low calorie foods; (2) minimally processed foods without added sugar and with low sodium; (3) foods prepared using healthy cooking techniques; and (4) foods with less than 0.5 grams of trans fat per serving. Whenever possible, CITY shall (1) offer seasonal and local produce; (2) serve fruit instead of sugary, high calorie desserts; (3) attempt to accommodate special, dietary and cultural needs; and (4) post nutritional information and/or a list of ingredientsfor itemsserved. If meals are to be provided, a vegetarian option shall be provided, and the CITY should consider providing a vegan option.
If pre-packaged snack foods are provided, the items shall contain: (1) no more than 35% of calories from fat, unless the snack food items consist solely of nuts orseeds; (2) no more than 10% of calories from saturated fat; (3) zero trans-fat; (4) no more than 35% of total weight from sugar and caloric sweeteners, except for fruits and vegetables with no added sweeteners or fats; and (5) no more than 360 mg of sodium per serving.
If beverages are to be provided, beverages that meet the County’s nutritional criteria are (1) water with no caloric sweeteners; (2) unsweetened coffee or tea, provided that sugar and sugar substitutes may be provided as condiments; (3) unsweetened, unflavored, reduced fat (either nonfat or 1% low fat) dairy milk; (4) plantderived milk (e.g., soy milk, rice milk, and almond milk) with no more than 130 calories per 8 ounce serving; (5) 100% fruit or vegetable juice (limited to a maximum of 8 ounces per container); and (6) other low-calorie beverages (including tea and/or diet soda) that do not exceed 40 calories per 8 ounce serving. Sugar-sweetened beverages shall not be provided.
SECTION 22. MISCELLANEOUS
SECTION 22.1 The captions and section headings used in this CONTRACT are for convenience of reference only, and the words contained herein will, in no way, be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this CONTRACT.
SECTION 22.2 All Exhibits attached hereto and referred to in this CONTRACT are incorporated herein by this reference as if set forth fully herein. Exhibits are as follows:
Exhibit “A” (CDBG Scope of Services, Performance Outcomes and Measurements, and Budget), Exhibit “A1” (Income Definitions/Requirements)
Exhibit “A2” (FY20 Income Limits)
Exhibit “A3” (Exception Percentage Area Benefit)
Exhibit “B” (Payments to CITY),
Exhibit “C” (General Block Grant Conditions),
Exhibit “D” (Assurances),
Exhibit “E” (Declaration of Contractor),
Exhibit “F” (Insurance Requirements).
SECTION 22.3 Nothing contained herein is to be construed as an indemnification for any loss, damage, injury or death arising out of or caused, in whole or in part, by the County or its Board of Supervisors, officers,
ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
executives, attorneys, employees, agents, representatives, contractors or subcontractors. Nothing contained herein shall be construed to, and nothing shall, obligate the County to provide any insurance for or on behalf of this Contract, the Program, the PROGRAM, SUBRECIPIENT, anyone, anything, any event, any use, any property, any action or inaction, or any reason or purpose.
SECTION 22.4 The rights and remedies of the parties to this CONTRACT, whether pursuant to this CONTRACT or in accordance with law, shall be construed as cumulative, and the exercise of any single right or remedy shall constitute neither a bar to the exercise of nor the waiver of any other available right or remedy.
SECTION 22.5 This CONTRACT may be executed in several counterparts, and all of such counterparts so executed together shall be deemed to constitute one and the same agreement, and each such counterpart shall be deemed to be an original. Facsimile or electronic signatures shall have the same legal effect as original or manual signatures if followed by mailing of a fully executed original to both parties.
SECTION 22.6 Unless otherwise prohibited by law or County policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the County.
SECTION 22.7 This CONTRACT shall not be construed more strongly against either party regardless of who is more responsible for its preparation.
SECTION 22.8 This CONTRACT, and all the rights and duties of the parties arising from or relating in any way to the subject matter of this CONTRACT or the transaction(s) contemplated by it, shall be governed by, construed and enforced in accordance with the law of the State of California (excluding any conflict of law’s provisions that would refer to and apply the substantive laws of another jurisdiction). Any suit or proceeding relating to this CONTRACT, including arbitration proceedings, shall be brought only in Santa Clara County, California. EACH OF THE PARTIES CONSENT TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN SANTA CLARA COUNTY, CALIFORNIA.
SECTION 22.9 Those Sections and provisions that by their nature should survive termination, cancellation or expiration of this CONTRACT shall so survive, including but not limited to Sections 3 and Section 5; and, Sections 6 through and including Section 20.
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ATTACHMENT 2 – DRAFT CDBG AGREEMENT
Attachment 2
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SECTION 22.10 The persons signing below are duly authorized to execute this CONTRACT.
IN WITNESS WHEREOF, the parties have executed this as indicated below.
TOWN OF LOS GATOS COUNTY OF SANTA CLARA:
By: By:
Laurel Prevetti, Town Manager Jeffrey V. Smith, County Executive Date: Date:
Wendy Wood, CMC, City Clerk Date
APPROVED AS TO FORM: APPROVED AS TO FORM AND LEGALITY:
Gabrielle Whelan, Town Attorney Aaron Voit, Deputy County Counsel Date: Date:
DRAFT
County of Santa Clara
Office of Supportive Housing
FY23 CDBG City Contract –Exhibit A
LG-23-01
EXHIBIT A
SCOPE OF SERVICES,
OUTCOMES MEASURES AND BUDGET
FY 2023
Contract No. LG-23-01 Grant Amount: $140,000
1. SUBRECIPIENT INFORMATION:
Subrecipient Name Program Name
Town of Los Gatos Adult Recreation Center – First Floor Restrooms Program Contact Phone Email
Dan Keller 408-395-5310 dkeller@losgatoscagov
2. LOCATION OF PROGRAM: Unless otherwise indicated, the Grant Services specified will be offered at the following location(s):
Site Name and Address: 208 E. Main Street, Town of Los Gatos, California
3. PROGRAM DESCRIPTION: The primary purpose of the Program is to:
Provide a fully accessible restroom and parking lot pathway to building entry that is fully ADA compliant in the Los Gatos Saratoga Recreation (LGSR) Adult Recreation Center. This will include construction of a gender-neutral restroom in accordance with ADA specifications. In addition, improvements to the parking lot will be implemented. including four accessible parking stalls and a concrete pathway that leads into the entry of the building. All aspects of this project which will follow ADA requirements in design and construction.
4. SERVICE AREA: Check the areas where the services will be provided:
Town of Los Gatos
5. PROJECT FUNDING & ELIGIBLE ACTIVITY:
Improvement of other eligible community facilities
6. INCOME ELIGIBILITY: Eligible clients under this Contract shall be Extremely Low, Very Low, and/or Low income individuals and/or families of all ethnic groups. a. Extremely low-income which is defined as household income that is 30% or lower of the HUD median income for the San Jose Metropolitan Statistical Area (MSA), b. Very low-income which is defined as household income that exceeds 30% but does not exceed 50% of the HUD median income for the San Jose MSA, and
c. Low income is defined as household income at or below 80% of median income for the San Jose MSA.
DRAFT
County of Santa Clara
Office of Supportive Housing
FY23 CDBG City Contract –Exhibit A
LG-23-01
7. URBAN COUNTY CONSOLIDATED PLAN ACTIVITY: (check one) Affordable Housing (Create or Maintain)
Homelessness (Activities to end homelessness)
X Community Services
Strengthen Neighborhoods(Capital Improvements or Pubic Facilities) Fair Housing Services
8. PERFORMANCE MEASUREMENT
The U.S. Department of Housing and Urban Development (HUD) requires a performance measurementsystem to better capture data for the activities that are undertaken with CDBG funding. For each proposed activity, an objective, outcome, and performance indicator must be identified. a. Primary Objectives: (Select One)
Create Suitable Living Environment – this objective relates to activities that are designed to benefit communities, families, or individuals by addressing issues in their living environment. b. Primary Outcome (check one)
Availability/Accessibility (Activity that makes services, infrastructure, housing, and or shelter available and accessible.)
9. SPECIFIC OUTCOME INDICATORS
1. Number of Unduplicated to be assisted by this Program:
a. Of the Total Assisted, how many will
Outcome Indicators Number of
Beneficiaries
Have new or continued access to this service or benefit. 29,962 Have improved access to this service of benefit
Receive a service or benefit that is no longer substandard
10. ACCOMPLISHMENTS: Estimate the number of unduplicated Urban County persons/households to be served by this capital improvement project during FY23: 29,962 Please include proposed accomplishments for this project that will be reported to the U.S.
Department of Housing & Urban Development (HUD) once the project is complete (maximum of 4000 characters).
A gender-neutral restroom will be designed and constructed in the LGSR Adult Recreation Center. In addition, improvements to the Center’s parking lot will be implemented. These improvements include four accessible parking stalls and a concrete pathway that leads into the accessible entry of the building. All aspects of this project will be fully ADA compliant in design and construction. This Adult Recreation Center has approximately 60,00 visits annually from participants, some visits are duplicated. The improvements implemented will ensure accessibility to participants that may have a physical disability and will provide a new restroom space with new fixtures and finishes. This will not only provide full access, it will add to the attraction of the facility for participants and attendance from the general public.
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County of Santa Clara
Office of Supportive Housing
FY23 CDBG City Contract –Exhibit A
LG-23-01
11. BUDGET
FY22-23 BUDGET CATEGORY CDBG FUNDS
PROPOSED AMOUNTS
OF OTHER PROGRAM
FUNDS (if any)
TOTAL PROGRAM
COSTS
DIRECT COSTS:
Architect/Engineering $30,000
Construction $90,000
Right-of-way Dedication
Project Management
Construction Management 20,000
QC Testing
TOTAL: $140,000 $140,000
12. PROJECT SCHEDULE
Milestone Date
1. 2.
3. 4.
13. REPORTING REQUIREMENTS
Beneficiary Data. City shall be required to submit beneficiary data for this project. City shall report the CDBG Unduplicated Participants/Beneficiaries, Demographic Information, Income Levels (Extremely-low, low, moderate, non-low/moderate) and the and how the activities being provided under this grant contribute to meeting performance measures stated in the contract.
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EXHIBIT Al
INCOME DEFINITIONS/REQUIREMENTS
A low- and moderate- (L/M) income person is defined as a member of a family having an income equal to orless than the Section 8 Housing Assistance Payments Program low-income limits established by HUD applicable to the size of the person'sfamily. A family is defined as all persons living in the same household who are related by blood, marriage, or adoption. An individual living in a housing unit that contains no other person(s) related to him/her is considered to be a one person family for this purpose. Adult children who continue to live at home with their parent(s) are considered to be part of the family for this purpose and their income must be counted in determining the total family income. A dependent child who is living outside of the home (e.g., students living in a dormitory or other student housing) is considered for these purposesto be part of the family upon which he/she is dependent, even though he/she is living in another housing unit.
A low- and moderate-(L/M) income household is defined as a household in which the total income of all of the household members is equal to or less than the Section 8 Housing Assistance Payments Program low-income limit established by HUD for an equivalent sized family. A household is defined as all persons occupying the same housing unit,regardless of their relationship to each other. The occupants could consist of a single family, two or more families living together, or any other group of relatedor unrelatedpersons who share living arrangements.
Persons vs Households
Itisimportantto note that, for all but one of the subcategories underthis national objective, the test ofmeeting the objective of Benefitto L/M isto be met based on L/M persons. Only with the subcategory of L/M Housingmustthe test be met based on L/M households.
There are reasonsfor this distinction. First, the statute requiresthat the focus be on the occupants of a CDBG-assisted housing unit when determining whether the national objective of benefit to L/M Income persons can be met. Secondly, there are two underlying assumptionsin the CDBG regulations concerning thisissue: 1) that all persons who reside in a housing unit that has been provided or improved with CDBG assistance will benefit from that housing unit; and 2) that the resources of all occupants could be brought to bear with respect to paying for the rental, improvement or purchase of the unit.
For housing unitsreceiving CDBG assistance which are occupied by persons of the same family, totaling the income of all occupants of a unit easily determines whether or not the family is a L/M Income family. However, CDBG-assisted housing units can be occupied by persons who are not related to each otherin the traditional family sense. Thus, there needsto be a way to determine whether the beneficiaries ofsuch an assisted housing unit should be considered to be L/M Income for purposes of meeting the CDBG national objective. In addressing this problem, the regulations provide first, that the income of all persons occupying a CDBG-assisted housing unit must be counted without regard to their familialrelationships, and secondly, by treating them (for this purpose only) asthough they were all of the same family.
If the "household/family" income qualifiesit as L/M Income, then the assisted housing unit would be considered to be occupied by a L/M Income household.
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LIMITED CLIENTELE
A L/M income limited clientele activity is an activity which provides benefits to a specific group of personsrather than everyone in a general area. It may benefit particular persons without regard to the area in which they reside, or it may be an activity which provides benefit on an area basis but only to a specific group of persons who reside in the area. In either case, at least 51% of the beneficiaries of the activity must be L/M income persons. Itshould be noted, however, that because of certain statutory limitations, the regulations preclude the following kinds of activitiesfrom qualifying under this subcategory: To qualify under this subcategory, a limited clientele activity must exclusively benefit a clientele who are generally presumed by HUD to be principally L/M income persons, which is 100% of beneficiaries are L/M Income.
The following groups are currently presumed by HUD to be made up principally of L/M income persons:
• abused children,
• elderly persons (62+),
• battered spouses,
• homeless persons,
• adults meeting Bureau of Census' definition ofseverely disabled persons, • illiterate adults,
• persons living with AIDS, and
• migrant farm workers.
PUBLIC SERVICE ACTIVITIES INCOME DEFINITIONS
Forthe purpose of determining whether a family or household is low- and moderate-income underthis Agreement, Annual Income is defined using the Section 8 Housing Assistance Payments program definition.
A. Income Determination
Annual income as defined at 24 CFR Part 5.6 (except when determining the income of a homeowner for an owneroccupied rehabilitation project, the value of the homeowner's principal residence may be excluded from the calculation of Net Family Assets, as defined in 24 CFR Part 5.6); or§ 5.609 Annual income.
B. Annual Income means all amounts, monetary or not, which:
1. Go to, or on behalf of,the family head orspouse (even if temporarily absent) orto any otherfamily member; or
2. Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and
3. Which are not specifically excluded in paragraph C of this section.
4. Annual income also means amounts derived (during the 12-month period) from assetsto which any member of the family has access.
C. Annual income includes, but is not limited to:
1. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personalservices;
2. The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assetsfrom the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assetsinvested in the operation by the family;
2 County of Santa Clara
Office of Supportive Housing
FY22 Los Gatos CDBG Contract
DRAFT
3. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (8)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;
4. The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount of this section);
5. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c )(3) of this section); Stated Income, Self-certification, or Intake formsfor purposes of this Agreement must require a copy of at least one or more income verification document/s be collected by the Subrecipient in order to verify a client's or household's annual income and saved in the client/s file. The County, will monitor a minimum of 20% of each Subrecipients Stated Income, Self-certification, or Intake forms throughout the program year.
INCOME WORKSHEET EXAMPLE (Annual Income of Applicants and other Household Members over the age of 18) Category (Do not complete, for example use) Applicant 1 One or more documents verifying income from the following Income Applicant 2
"
Other
Household
Member 1
categories: "
1) Gross Regular Earned Income fromEmployment (Wages, tips, salaries) ' L
,
2) Net Income from self-owned business or profession:
3) Income Received from Social Security, Death, Disability, Private Disability, and/or Retirement and Pension Fund payments:
4) Unemployment, Workers Compensation, Severance and other pay received in-lieu of payments for earnings:
Include the following various Income sources lritothe total Income: l Alimony, child support, gifts, other contributions:
,.
·a
.... !.-
.
Othersources of income, non-documented income earned or received, including income from rental properties:
Armed ForcesIncome:
Interest and Dividend income received from trusts, royalties, and investmentsincluding stocks and bonds:
Public assistance and food stamp payments:
TOTAL: $ $ $
3 County of Santa Clara
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FY22 Los Gatos CDBG Contract Page 59
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EXHIBIT A2
HUD Exception Grantee's Percentage for Low-and-Moderate-Income Area (LMA) Benefit FY 2023
The Community Block Grant Development (CDBG) programrequiresthat each CDBG-funded activitymust either principally benefit low and moderate income persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency. With respect to activities that benefit all the residents of a given area, atleast 51% of the area's residents must be low and moderate income.
Some CDBG assisted activities, such as parks, neighborhoods, facilities, community centers and streets, serve an identified geographic area. These activities generally meet the low- and moderate-income principal benefit requirement if 51 percent ofthe residents in the activity's service area are low and moderate income.
However,some communities have no or very few areasin which 51 percent of the residents are low and moderate income.
For these grantees, the CDBG law authorizes an exception criterion in order forsuch grantees to be able to undertake area benefit activities. Specifically, section 10S(c)(2)(A)(ii) of the Housing and Community Development Act of 1974, as amended, statesthat an activity shall be considered to principally benefit low and moderate income persons when "the area served by such activity is within the highest quartile of all areas within the jurisdiction of such city or county in terms of the degree of concentration of personsof low and moderate income." (See ExceptionPercent Table Below) Section 105(c)(2)(A)(ii) is implemented in the CDBG regulations at 24 CFR 570.208(a)(l)(ii), which identifies the following methodology to calculate a grantee's "exception" threshold: all block groups within the grantee'sjurisdiction in which people are residing are rank ordered from the highest percentage of low- and moderate-income persons to lowest. (For urban counties, the rank ordering covers the entire area of the county, rather than being done separately by participating units of government within the county.) The total number of block groups is divided by four. If the percentage of low- and moderateincome personsin the last block group in the top quartile islessthan 51 percent, that percentage becomes the grantee'slowand moderate-income threshold for area benefit activities. NOTE: whenever the total number of block groups does not divide evenly by four, the block group that would be fractionally divided isincluded in the top quartile.
The table below reflects the CDBG "exception grantee for the County of Santa Clara, Urban County and the exception threshold for the Urban County based on the 2011-2015 American Community Survey (ACS). This percentage represents the minimum percentage of low- and moderate-income persons that must reside in the service area of an area benefit activity for the activity to be assisted with CDBG funds. The Urban County Exception Grantee threshold for FY 2021 L/M Area-basis exception percentage is: 45.43%
American Community Survey 5-Year 2011-2015 Low and Moderate Income Summary Data (HUD FY21)
CDBG NAME STATE CDBG TYPE LOW/MOD LOW/MOD UNIV LOW/MOD
PCT
FY2021 EXCEPTION
AREA PERCENTAGE
Santa Clara
County
CA Urban
County
79,545 259,845 30.61% 45.43%
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Payments to City-Exhibit B
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EXHIBIT B
PAYMENTS TOCITY
COUNTY agrees to pay SUBRECIPIENT for the performance of the services, work, and duties, subject to and performed in connection with this AGREEMENT, a sum of money not to exceed the amount set forth in this AGREEMENT. Such sum shall be paid by COUNTY to SUBRECIPIENT on a reimbursement basis for services actually performed by SUBRECIPIENT and for eligible costs actually incurred by and paid by, pursuant to this AGREEMENT, for the cost categories appearing in this section.
SECTION 1. Payment Procedures.
A. No sum shall be paid until COUNTY hasreceived from SUBRECIPIENT the following:
1. Reimbursement Request (RR) or Expense Summary (ES) request for the PROGRAM on a quarterly basis, for approved invoices submitted pursuant to this CONTRACT. The RR form must be accompanied by a request for reimbursement on SUBRECIPIENT’s letterhead. Requests for reimbursement will be made quarterly via the CityData Grants Management website at www.Citydataservices.net and specify in detail the services performed by and the costs incurred by and paid by SUBRECIPIENT during the period for which payment is requested. Any Program Income received by the SUBRECIPIENT shall reduce total allowable payments by the same amount. "Program Income" is defined as income or earnings received by SUBRECIPIENT which are directly generated from the use of CDBG funds(as defined at 24 CFR 570.500(a)).
It shall be reported by SUBRECIPIENT to COUNTY on a monthly basis. Any Program Income on hand when this Agreement expires or terminated or any Program Income received after this Agreement expires or terminates shall be promptly paid to COUNTY.
B. Payment. Payment to SUBRECIPIENT will be made within thirty (30) calendar days of receipt by COUNTY of all such required statements and supporting documents, including but not limited to, paid invoices, provided that the items on such statements and supporting data for which payment is requested can properly be paid under this Agreement, HUD regulations 2 CFR 200 applicable to the program, and the COUNTY-HUD Grant Agreement, as the same may from time to time be amended. In making such determination, COUNTY may rely upon the certification by SUBRECIPIENT that the items appearing on said statement and supporting data are eligible items for payment under this program and Agreement, and such determination by COUNTY shall in no way constitute a waiver by COUNTY of its right to recover from the amount of any money paid on any item which is not eligible for payment under the program and this Agreement. Payment will be delayed if the information provided to the COUNTY is missing or incomplete. COUNTY has the right to ask for additional documentation, which will assist in the determination of cost eligibility and is in accordance with HUD regulations as amended from time to time. In making such determination for payment, COUNTY may rely upon the certification by SUBRECIPIENT that the items appearing on said statement and supporting data are eligible items for payment under this program and Agreement, and such determination by COUNTY shall in no way constitute a waiver by COUNTY of its right to recover from the amount of any money paid toward any item which is not eligible for payment under the program and this Agreement.
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C. Disbursement. The total amount of such payments to be made to SUBRECIPIENT shall be distributed in the following manner during the course of the PROGRAM.
1. Construction Costs. Total eligible payments made to SUBRECIPIENT’s for time actually worked for all categories listed in EXHIBIT A entitled "CDBG Scope of Services, Performance Outcomes and Measurements, and Budget".
2. Audit. Eligible paymentsto an independent auditorto perform an audit in accordance with 2 CFR PART 200, Subpart F, if required. "Eligible," as used in this Agreement, means those costs, payments, and disbursements for activities for which community development grant moneys may be used pursuant to Section 570.201 of the Federal Rules and Regulations for the Implementation of Title I of the Housing and Community Development Acts of 1974 and 1977, as amended, (24 CFR 570) and all other applicable rules and regulations.
3. Classification of Costs. There is no universal rule for classifying certain costs as either direct or indirect F&A (Finance and Administration) under every accounting system. A cost may be direct with respect to some specific service or function, but indirect with respect to the Federal award or other final cost objective. Therefore, it is essential that each item of cost incurred for the same purpose be treated consistently in like circumstances either as a direct or an indirect F&A cost in order to avoid possible double-charging of Federal awards. Guidelines for determining direct and indirect (F&A) costs charged to Federal awards can be found in 2 CFR 200.412 – Classification of Costs.
SECTION 2. Budget Amendments.
A. Line Item. Any amendments to a line item in the approved budget must receive prior written approval from the OSH. Requests for budget amendments shall be submitted via the CityData Grants Management website at www.Citydataservices.net.
B. Reallocating of Program Funds. The COUNTY shall review the monthly expenditures to ensure it has “timely performance” in accordance with the CDBG regulations 24 CFR 570.902 and to ensure the COUNTY is able to meet the timeliness test 60 days prior to the end of the program year, which is usually on or around April 30. On a monthly basis, COUNTY shall review the monthly expenditures, if any, for services performed and costs incurred by SUBRECIPIENT provided in this Exhibit. If such review reveals that the monthly expenditures in any such month for the PROGRAM as a whole or any cost category thereof are below the total amount allocated under this Agreement for the total PROGRAM or cost category thereof for such month, COUNTY may reallocate the amount of such under spending. In the case of under spending in a cost category, COUNTY may reallocate the unspent amount into another cost category of the PROGRAM. In the case of underspending in the PROGRAM as a whole, COUNTY may reallocate unspent amount to another community development PROGRAM. COUNTY shall, before reallocating, give SUBRECIPIENT ten (10) days’ written notice of its intention to reallocate funds. Such notice shall include a copy of COUNTY’s monthly expenditure review for the PROGRAM and statement of its reasons for such reallocation. COUNTY shall make its final determination with respect to reallocation only after SUBRECIPIENT has been given an opportunity to present its views and recommendations with respect to such contemplated reallocation. In no event, however, shall COUNTY be bound to accept SUBRECIPIENT’s views or recommendations with respect to such contemplated reallocation. If the expenditures by SUBRECIPIENT in any month, for the PROGRAM or any cost category
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thereof, exceed the total amount allocated to the PROGRAM or any cost category thereof, COUNTY may terminate non-salary expenditures for the PROGRAM for such period of time as is necessary to bring expenditures into conformance with this Agreement.
C. Reallocation of Program Funds. The DIRECTOR of the Office of Supportive Housing or his or her designated representative may, at the request of SUBRECIPIENT, approve reallocation of funds from any cost category or categories to any other cost category or categories at any time provided that: (1) there is no increase in the total amount specified in this Agreement, and (2) the goals and objectives set forth in Exhibit A are not negatively affected. Approval by the DIRECTOR of the Office of Supportive Housing or his or her designated representative of such reallocation of funds must be in writing. Any unexpended funds at the end of the term of the Agreement shall be retained by the COUNTY. Expenses incurred prior to July 1, 2020, are not eligible for reimbursement under this Agreement.
COUNTY agrees to pay SUBRECIPIENT for the performance of the services, work, and duties, subject to and performed in connection with this AGREEMENT, a sum of money not to exceed the amount set forth in this AGREEMENT. Such sum shall be paid by COUNTY to SUBRECIPIENT on a reimbursement basis for services actually performed by SUBRECIPIENT and for eligible costs actually incurred by and paid by, pursuant to this AGREEMENT, for the cost categories appearing in this section.
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EXHIBIT C
GENERAL BLOCK GRANT CONDITIONS
SECTION 1. GENERAL GRANT CONDITIONS
A. Definitions. As used herein, "HUD" means United States Department of Housing and Urban Development. “COUNTY” means the Santa Clara County Urban County, which includes the unincorporated community within Santa Clara County in addition to seven small jurisdictions:
Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill and Saratoga.
B. General Compliance. SUBRECIPIENT shall comply with the provisions of 24 CFR 570, Subparts J and K, describing other program requirements, and the provisions of 2 CFR 200 relating to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards.
SECTION 2. ADMINISTRATIVE REQUIREMENTS
A. Establishment and Maintenance of Records. SUBRECIPIENT shall maintain records, including but not limited to, books, financial records, supporting documents, statistical records, personnel, property, and all other pertinent records sufficient to reflect properly:
a. All direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred to perform this AGREEMENT, and b. All other matters covered by this AGREEMENT. Such records shall be maintained in accordance with requirements now or hereafter prescribed by the COUNTY.
1. Records to be Maintained. The SUBRECIPIENT shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG Program;
c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG Program;
f. Financial records as required by 24 CFR 570.502 and 24 CFR 84.21 - 28; and, g. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
2. Retention. SUBRECIPIENT shall preserve and make available its records for the period of four (4) years from the date of final payment to SUBRECIPIENT under this AGREEMENT; or such longer period, if any, as may be required by applicable law; or if this AGREEMENT is completely or partially terminated, for a period of four (4) years from the date of any resulting final settlement.
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3. Client Data. The SUBRECIPIENT shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to the COUNTY monitors or their designees for review upon request.
4. HMIS Participation. All agencies providing homeless services in receipt of funding from the COUNTY’s CDBG Program are required to fully participate in the Homeless Management Information System ("HMIS") and work closely with the COUNTY’s OSH to ensure the agency has the mechanisms and staffing in place to use the system appropriately and in a timely manner.
Funded agencies are required to collect demographic information on all clients served by the funded PROGRAMs, the services provided, and consent to release the information to the COUNTY’s OSH. Funded PROGRAMs must utilize all appropriate aspects of HMIS in order to generate the statistical information required for reporting to the COUNTY on all universal and program level elements of the HUD Data Standards. These statistical reports must be generated directly out of HMIS. No adjustments to the HMIS reports will be accepted, and it is therefore incumbent on the agency to ensure that the information they put into HMIS is accurate and up to date. SUBRECIPIENT will measure performance and outcomes relating to these funded PROGRAMs through the use of the HMIS statistical data, based on the HUD data elements, or other reporting requirements as determined by the COUNTY.
5. Disclosure. The SUBRECIPIENT understands that client information collected under this AGREEMENT is private and the use or disclosure ofsuch information, when not directly connected with the administration of the SUBRECIPIENT’s responsibilities with respect to services provided under this AGREEMENT, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.
6. Property Records. The SUBRECIPIENT shall maintain real property inventory records that clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform to the “changesin use” restrictions specified in 24 CFR Section 570.503(b)(8), as applicable.
7. National Objectives. The SUBRECIPIENT agrees to maintain documentation that demonstrates that the activities carried out with Funds provided under this AGREEMENT meet the CDBG Program’s national objective of benefiting low-and moderate income persons, as defined in 24 CFR Section 570.208.
8. Close-outs. The SUBRECIPIENT’s obligation to the COUNTY shall not end until all close-out requirements are completed pursuant to 24 CFR 570.509. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets(including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the SUBRECIPIENTS), and determining the custodianship of records.
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Notwithstanding the foregoing, the terms of this AGREEMENT shall remain in effect during any period that the SUBRECIPIENT has control over CDBG funds, including program income.
9. Audits and Inspections. At any time during normal business hours, and as often as may be deemed necessary, SUBRECIPIENT agrees that HUD and/or COUNTY, and/or any of their respective authorized representatives, shall have access to and the right to examine SUBRECIPIENT’s offices and facilities engaged in performance of this AGREEMENT and all its records with respect to all matters covered by this AGREEMENT. SUBRECIPIENT also agrees that HUD and/or COUNTY, or any of their respective authorized representatives, shall have the right to audit, examine, and make excerpts or transcripts of and from such records, and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials, and all other data relating to matters covered by this AGREEMENT.
Notwithstanding anything in this AGREEMENT to the contrary for monitoring purposes, COUNTY shall not require access to any information of SUBRECIPIENT mutually determined by the parties hereto to be proprietary.
a. County Audits. COUNTY may perform an independent audit. Such audits may cover program as well as fiscal matters. SUBRECIPIENT will be afforded an opportunity to respond to any audit findings and have the responses included in the final audit report.
Costs of such audits will be borne by SUBRECIPIENT.
b. Independent Audits. Funds will be set aside in each SUBRECIPIENT’s budget for an independent audit. A separate line item will be established. SUBRECIPIENT shall enter into an agreement with an independent public accountant certified to practice in the State of California no later than sixty (60) days before the end of this AGREEMENT calling for an audit to be done forthe entire year. The audit must be in conformance with the applicable funding source. The audit must be completed and sent to COUNTY’s OSH staff within the later of one hundred fifty (150) days of the end of this AGREEMENT or ninety (90) days after the end of SUBRECIPIENT’s fiscal year. The independent fiscal audit shall conform to Generally Accepted Government Auditing Standards (GAGAS) 2 CFR 200.514(a) and the audit threshold 2 CFR 200.501(a).
c. Requirements. Such audits shall identify the funds received and disbursed under this AGREEMENT. For SUBRECIPIENTs that expend $750,000 or more of Federal financial assistance in a fiscal year, in addition to conducting normal financial audit procedures, the SUBRECIPIENT's independent public accountant certified to practice in the State of California shall perform tests to ascertain that:
i. Expenditures submitted for reimbursement are allowable under 2 CFR Part 200 Subpart E, “Cost Principles”;
ii. Expenditures are in compliance with the grant agreements between the COUNTY and SUBRECIPIENT; and,
iii. Applicable laws and regulations. Further, the independent public accountant certified to practice in the State of California shallrender an opinion asto whether the Expenditures complied with the Single Audit Act of 1984 and 2 CFR 200 Subpart F “Audit Requirements".
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iv. Funds may be set aside in SUBRECIPIENT's budget in an amount equal to COUNTY’sfairshare of SUBRECIPIENT's cost of an independent audit, if required. d. Components. The Audit must include the following:
i. Balance Sheet or Statement of Financial Position;
ii. Statement of Support, Revenue and Expenses and Changes in Fund Balances or Statement Activities;
iii. Statement of Functional Expenses;
iv. Schedule of Expenditures of Federal Awards;
v. Independent Auditor’s Report on the Financial Statement and Schedule of Expenditures of Federal Awards;
vi. Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters;
vii. Auditor’s Report on Compliance with Requirements Applicable to Major Programs and on Internal Control over Compliance;
viii. Schedule of Findings and Questioned Costs;
ix. Summary of Schedule of Prior Audit Findings;
x. Corrective Action Plan; and,
xi. Data Collection Form.
B. Procedures Concerning Reporting and Payments.
1. Program Income. The SUBRECIPIENT shall report all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this AGREEMENT. The use of program income by the SUBRECIPIENT shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the SUBRECIPIENT may use such income during the CONTRACT period for activities permitted underthis AGREEMENT and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to the COUNTY at the end of the CONTRACT period. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to the COUNTY.
2. Indirect Costs. If indirect costs are charged, SUBRECIPIENT may invoice for indirect costs up to a de minimisrate of 10% per 2 CFR 200.414 (f). If SUBRECIPIENT requests an indirect cost rate above the de minimis rate of 10%, SUBRECIPIENT shall develop an indirect cost allocation plan for determining the appropriate SUBRECIPIENT’s share of administrative costs and shall submit such plan to the COUNTY for review. The COUNTY may approve or deny the plan in its sole discretion.
Indirect Costs may not be charged or Capital Improvements or Housing Rehabilitation Projects.
3. Relocation and Real Property Acquisition. SUBRECIPIENT shall comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended (URA) and 24 CFR 570.606(b), and (b) the requirements of 24 CFR 570.606(c) governing the Residential Antidisplacement and Relocation Assistance Plan (Plan) under section 104(d) of the HCD Act. Under the URA and the Plan, the SUBRECIPIENT must provide relocation assistance to persons (families,
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individuals, businesses, non-profit organizations and farms) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted PROGRAM. All property occupants must be issued certain notices on a timely basis. The Plan also required the one-forone replacement of any occupied or vacant occupiable low/moderate-income housing that is demolished or converted to another use in connection with a CDBG-assisted PROGRAM. Finally, the Plan requires the identification of the steps that will be taken to minimize displacement.
SECTION 3. PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights
1. General Compliance. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086.
2. Nondiscrimination. The SUBRECIPIENT will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, sex, sexual orientation, actual or perceived gender identity, national origin, disability, or other handicap, age, marital status, family status, or status with regard to public assistance. The Subrecipient will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include, but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provision of this nondiscrimination clause.
3. Land Covenants. The SUBRECIPEINT under this AGREEMENT shall be subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this AGREEMENT, SUBRECIPIENT shall require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, sexual orientation, actual or perceived gender identity, or national origin, in the sale, lease or rental, or in the use of occupancy of such land or any improvements erected or to be erected thereon, and providing that and the United States are beneficiaries of and entitled to enforce such covenant, in providing the services and work it is to provide, pursuant to this AGREEMENT, agreesto take such measures as are necessary to enforce such covenant and will not itself so discriminate.
4. Section 504. The SUBRECIPIENT agrees to comply with Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published which specify that no otherwise qualified individual shall, solely by reason of his or her handicap, be excluded
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from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal assistance.
5. Architectural Barriers Act. The SUBRECIPIENT shall meet the requirements, where applicable, of the Architectural Barriers Act and the Americans with Disabilities Act, as set forth in 24 CFR 570.614. A building orfacility designed, constructed, or altered with funds allocated or reallocated under CDBG program after December 11, 1995 and that meets the definition of a “residential structure” as defined in 24 CFR Part 40.2 or the definition of a “building” as defined in 41 CFR Part 101-19.602(a) is subject to the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-4157) and shall comply with the Uniform Federal Accessibility Standards. The Americans with Disabilities Act (“ADA’) (42 USC 12131; 47 USC 155, 210, 218, and 255) requires that the design and construction of facilities for first occupancy after January 26, 1993 must include measures to make them readily accessible and usable by individuals with disabilities. The ADA further requires the removal of architectural barriers and communication barriers that are structural in nature in existing facilities, where such removal is readily achievable—that is, easily accomplishable and able to be carried out without much difficulty or expense.
B. Affirmative Action
1. Approved Plan. The SUBRECIPIENT agrees that it shall be committed to carry out pursuant to the County’s specifications an affirmative action program in keeping with the principles as provided in Executive Order 11246 (as amended).
2. Women and Minority Business Enterprises. The requirements relating to Minority-Owned and Women-Owned Business Enterprises set forth in Executive Order No. 11625 of October 13, 1971, 36 Fed. Reg. 19967, as amended by Executive Order No, 12007 of August 22, 1977, 42 Fed. Reg. 42839; and Executive Order No. 12432 of July 14, 1983, 48 Fed. Reg., 32551; and Executive Order No. 12138 of May 18, 1979, 44 Fed. Reg. 29637, a SUBRECIPIENT must exercise affirmative outreach efforts when soliciting bids for service or construction when the Federal funds received by the SUBRECIPIENT or subcontractor exceeds $10,000 and when the SUBRECIPIENT or subcontractor is a for-profit organization/business.
3. Access to Records. The SUBRECIPIENT shall furnish and cause each of its sub-subrecipients to furnish all information and reportsrequired hereunder and will permit accessto its books, records and accounts by the COUNTY, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with rules, regulations and provisions stated herein.
4. Notifications. The SUBRECIPIENT will send to each labor union or representative of workers with which it may have a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker’s representative of the SUBRECIPEINT’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
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5. EEO/AA Statement. The SUBRECIPIENT will, in all solicitations or advertisements for employees placed by or on behalf of the SUBRECIPIENT, state that it is an Equal Opportunity and Affirmative Action employer. The SUBRECIPIENT shall comply with Executive Order 11246 as amended by Executive Order 12086 and the regulations issued pursuant thereto (41 CFR Chapter 60), and will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The SUBRECIPIENT will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, or other forms of compensation and selection for training, including apprenticeship.
The SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.
6. Subcontract Provision. The SUBRECIPIENT will include the provisions of Section 3. A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors.
C. Employment Restrictions
1. Prohibited Activities. No funds provided in this AGREEMENT shall be used for any partisan political activity or to further the election or defeat of any candidate for public office; nor shall they be used to provide services, or for the employment or assignment of personnel in a manner supporting or resulting in the identification of programs conducted pursuant to this AGREEMENT with the following:
a. Any partisan or nonpartisan political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office; b. Any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election; or, c. Any voter registration activity.
2. Labor Standards. The SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act, as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland “Anti-Kickback” Act (40 U.S.C. 276a-276a-5; 40 U.S.C. 327 and 40 U.S.C. 276c and all other applicable laws pertaining to labor standards insofar as those acts apply to the performance of this AGREEMENT. The SUBRECIPIENT shall maintain documentation which demonstrates compliance with the hour and age requirements of this part.
Such documentation shall be made available to the COUNTY for review upon request.
The David Bacon Act (40 USC, Chapter 3, Section 276a-5; and CFR Parts 1, 3, 5 and 7) is triggered when construction work over $2,000 is financed in whole or in part with CDBG Funds. It requires that workers receive no less than the prevailing wages being paid for similar work in the same
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area. Davis-Bacon does not apply to the rehabilitation of residential structures containing less than eight units or force account labor (construction carried out by employees). HUD has concluded that new construction (as well as rehabilitation) of residential property is exempt from Federal labor standards if the property contains less than eight (8) units. SUBRECIPIENT shall comply with HUD requirements pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3, 5 and 5a, governing the payment of wages and the ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under such regulations are imposed by state or local law, nothing hereunder is intended to relieve SUBRECIPIENT of its obligation, if any, to require payment of the higher rates. SUBRECIPIENT shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such contracts in excess of Twenty Five Thousand Dollars ($25,000), pursuant to 29 CFR 5a.3.
3. “Section 3” Clause. Compliance with the provisions of “Section 3” of the Housing and Community Development Act of 1968 pertaining to Employment Opportunitiesfor Lower-Income Persons(12 USC 1701u), requiring that, to the greatest extent feasible on PROGRAMs financed by HUD, a SUBRECIPIENT must:
a. Provide opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction PROGRAM, are given to persons with household income that is at or below 80% of the median income for San Jose Metropolitan Statistical Area defined by the Secretary of HUD residing within the San Jose metropolitan area. Where feasible, priority should be given to residents within the service area of the PROGRAM or the neighborhood in which the PROGRAM is located who have household income that is at or below 80% of the median income for San Jose Metropolitan Statistical Area (MSA as defined by the Secretary of HUD, and to participants in other HUD programs who have household income that is at or below 80% of the median income for the San Jose Metropolitan Statistical Area. The SUBRECIPIENT certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements;
b. Award contractsfor work undertaken in connection with housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction PROGRAM to business concerns that provide economic opportunities for persons residing within the metropolitan area in which the CDBG-funded PROGRAM is located and have household income that is at or below 80% of the median income for San Jose Metropolitan Statistical Area as defined by the Secretary of HUD. Where feasible, priority should be given to business concerns that provide economic opportunities to residents within the service area or the neighborhood in which the PROGRAM is located who have household income that is at or below 80% of the median income for San Jose Metropolitan Statistical Area as defined by the Secretary of HUD, and to participants in other HUD programs who have household income that is at or below 80% of the median income for that area;
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c. Self-certify whether they are a Section 3 business, employs Section 3 residents, or subcontracts with business that provide opportunities to low-income persons when an award of $200,000 or more of HUD funding is provided for housing rehabilitation, housing construction, or other public construction PROGRAMs, and/or $100,000 or more to subcontractors;
d. At a minimum, provide documentation on federal compliance, reporting and outreach efforts; and,
e. The SSUBRECIPIENT further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement:
The work to be performed under this agreement is a PROGRAM assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. “Section 3” requires that to the greatest extent feasible opportunities for training and employment be given to low and very low income residents of the PROGRAM area and contracts for work in connection with the PROGRAM be awarded to business concerns that provide economic opportunities for low and very low income persons residing in the metropolitan area in which the PROGRAM is located.
4. Notifications. The SUBRECIPIENT agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker’s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
5. Subcontracts. The SUBRECIPIENT will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The SUBRECIPIENT will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
D. Conduct.
1. Assignability. The SUBRECIPIENT shall not assign or transfer any interest in this AGREEMENT without the prior written consent of the COUNTY provided, however, that claims for money due or to become due to the SUBRECIPIENT from the COUNTY under this AGREEMENT may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the COUNTY.
2. Hatch Act. The SUBRECIPIENT agrees that no funds provided, nor personnel employed under this AGREEMENT, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. Participants employed in the administration of the
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CDBG Program, and participants whose principal employment is in connection with an activity financed by the CDBG Program or its proceeds are subject to limitation on political activities under the Hatch Act (5 U.S.C. 1502(a), 18 U.S.C. 595). All participants may take part in non-partisan activities outside working hours.
3. Resident Aliens. (24 CFR 570.613) Certain newly legalized aliens, as described in 24 CFR Part 49, are not eligible to apply for the benefits under covered activities funded by the CDBG Program. "Covered activities" are activities meeting the requirements of 24 CFR 570.208(a) that either (1) have income eligibility requirements limiting benefits exclusively to low- and moderate-income persons, or (2) are targeted geographically or otherwise to primarily benefit low- and moderateincome persons (except for activities that benefit the public at large), and provide benefits on the basis of an application.
4. Conflict of Interest. Under 24 CFR Part 570.66, no officer, employee or agent of COUNTY or SUBRECIPIENT who exercises any functions or responsibilities with respect to the CDBG Program or to the services and work to be performed by SUBRECIPIENT pursuant to this AGREEMENT, during such officer’s, employee’s or agent’s tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in this AGREEMENT or the proceeds thereof. SUBRECIPIENT shall incorporate or cause to be incorporated in every contract required to be in writing a provision prohibiting such interest pursuant to the purposes of this section.
7. Subcontracts. SUBRECIPIENT shall not award any contract or subcontract which is otherwise in compliance with this AGREEMENT to any person or subcontractor who is at the time ineligible under the provisions of any applicable regulations of the Department of Labor to receive an award of such contract.
8. Lobbying. The SUBRECIPIENT hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the SUBRECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the SUBRECIPIENT shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
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c. The SUBRECIPIENT shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all SUBRECIPIENTs shall certify and disclose accordingly.
d. Lobbying Certification. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
9. Copyrights. If this AGREEMENT results in a book or other copyrightable material, the author is free to copyright the work, but HUD reserves a royalty-free, nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, all copyrighted material and all material which can be copyrighted.
10. Patents. Any discovery or invention arising out of or developed in the course of work aided by this AGREEMENT shall be promptly and fully reported to COUNTY and HUD for determination by HUD as to whether patent protection on such invention or discovery will be sought and how the rights in the invention or discovery, including the rights under any patent issued thereon, shall be disposed of and administered, in order to protect the public interest.
11. Religious Organizations. SUBRECIPIENT shall not use any funds to construct, rehabilitate, maintain, or restore religious structures (including those which may be historic properties) currently used for religious purposes in accordance with the federal regulations specified in 24 CFR Section 570.200(j). CDBG FUNDS shall not be used to construct, rehabilitate, maintain, or restore structures or other real property owned by "pervasively sectarian" organizations. Block grant funds shall not be used to assist a religious organization in acquiring property. These prohibitions apply whether or not the property is used for religious services or instruction or is used in any other way for religious activities. CDBG Funds may be used for the provision of public services under the following conditions:
a. The public services provided are exclusively non-religious in nature and scope; b. There are no religious services, proselytizing, instruction, or any other religious influences in connection with the public services;
c. There is no religious discrimination in terms of employment or benefits under the public services; and,
d. The CDBG funds may be used only for the provision of public services and not for the construction, rehabilitation or restoration of any facility owned by the religious organization where the services are to be provided. A narrow exception to this prohibition isthat minor repairs may be made where such repairs(a) are directly related to the public
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services, (b) are located in a structure used exclusively for non-religious purposes, and (c) constitute in dollar terms a minor portion of the CDBG expenditure for the public services.
SECTION 4. ENVIRONMENTAL CONDITIONS
A. Environmental Requirements. (24 CFR 470.604) SUBRECIPIENT is not allowed to incur program expenses until the COUNTY has performed an environmental review of the proposed activities, received the release of funds, and provided the SUBRECIPIENT with formal clearance to initiate them, along with directives for any action necessary to mitigate negative environmental impacts (24 CFR Part 58).
1. SUBRECIPIENT willsubmit the correct Environmental Review Record for Maintenance and or Minor Rehabilitation activities to the County Housing Rehabilitation Specialist or HCD Program Manager for review.
2. County will provide SUBRECIPIENT with technical guidance when needed.
3. County will forward the executed Environmental Review Record to the SUBRECIPIENT once approved (Formal Clearance).
B. Air and Water. This AGREEMENT is subject to 42 U.S.C. 1857, and 33 U.S.C. 1251 et sec., and the regulations issued pursuant thereto. Therefore, SUBRECIPIENT agrees as follows:
a. SUBRECIPIENT stipulates that any facility to be utilized in the performance of any nonexempt contract or subcontract is not listed on the List of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20; b. SUBRECIPIENT agrees to comply with all the requirements of Section 114 of the Clean Air Act, as amended, (42 U.S.C. 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in said Sections 114 and 308, and all regulations and guidelines issued thereunder; c. SUBRECIPIENT stipulates that as a condition for the award of the contract prompt notice will be given of any notification received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities; d. SUBRECIPIENT agrees that criteria and requirements in subparagraphs (a) through (d) of this section will be included in every non-exempt subcontract and SUBRECIPIENT shall take such action as the COUNTY or HUD requires as a means of enforcing such provisions
e. In no event shall any amount of the assistance provided under thisAGREEMENT be utilized with respect to a facility that has given rise to a conviction under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act.
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C. Flood Disaster Protection. Notwithstanding any other provision of this Agreement, SUBRECIPIENT shall comply with the Flood Disaster Protection Act of 1973, as amended (P.L. 93-234), and the standards issued thereto. No portion of the moneys to be paid to SUBRECIPIENT pursuant to this AGREEMENT shall be used for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary of HUD as having special flood hazards which is located in an area not in compliance with the requirements for participation in the National Flood Insurance Program pursuant to Section 201(d) of said Act; and the use of any of said moneys for such acquisition or construction in such identified areas in communities then participating in the National Flood Insurance Program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act.
Any contract or agreement for the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement shall contain, if such land is located in an area identified by the Secretary of HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001, ~., provisions obligating the transferee and its successors or assigns to obtain and maintain, during the ownership ofsuch land,such flood insurance asrequired with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973, as amended. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this AGREEMENT.
D. Lead-Based Paint. Notwithstanding any other provision, SUBRECIPIENT agrees to comply with the regulations issued by the Secretary of HUD set forth in 24 CFR 570.608 and all applicable rules and orders issued thereunder which prohibit the use of lead-based paint in residential structures undergoing federally assisted construction or rehabilitation and require the elimination of lead-based paint hazards. Every contract or subcontract, including painting, pursuant to which such federally assisted construction or rehabilitation is performed, shall include appropriate provisions prohibiting the use of lead-based paint.
E. Historic Preservation. SUBRECIPIENT shall not violate provisions of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar asthey apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older orthat are included on a federal,state, or local historic property list. Before any commitments are made to make any physical improvements or alterations or demolition of any building, SUBRECIPIENT shall receive assurances from the COUNTY that the SUBRECIPIENT is in compliance.
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County of Santa Clara
Office of Supportive Housing
FY23 Town of Los Gatos CDBG Contract
Assurances-Exhibit D
LG-23-01
EXHIBIT D
ASSURANCES
The CITY hereby assures and certifies that it will comply with all regulations, policies, guidelines and requirements applicable to the acceptance and use of Federal funds for this Federally-assisted program and will be responsible for implementing and complying with all relevant future changes to Federal Regulations or OMB Circulars.
Specifically the CITY gives assurances and certifies with respect to the PROGRAM that it is compliant with the following Regulations as defined by 24 CFR, Part 570, Subpart J; 24 CFR, Part 570, Subpart K; and will be conducted and administered in conformity with “Public Law 88.352 and Public Law 90-284. Full text of the regulations can be located at: https://www.ecfr.gov/cgi-bin/ECFR?page=browse
1. 570.505. Use of Real Property
2. 570.506. Records to be Maintained
3. 570.508. Public Access to Public Records
4. 570.601. Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing; Executive Order 11063, as amended by Executive Order 12259 addresses discrimination. HUD regulations implementing Executive Order 11063 are contained in 24 CFR, Part 107.
5. 570.602. Section 109 of the Act addresses discrimination
6. 570.603. Labor Standards
7. 570.604. Environmental Standards
8. 570.605. National Flood Insurance Program
9. 570.606. Displacement, Relocation, Acquisition, and Replacement of Housing.
10. 570.607. Employment and Contracting Opportunities
11. 570.608. Lead-Based Paint
12. 570.609. Use of Debarred, Suspended, or Ineligible Contractors or CITYs
13. 570.610. Uniform Administrative Requirements and Cost Principles. The COUNTY, its Cities, agencies or instrumentalities, shall comply with the policies, guidelines, and requirements of 24 CFR Part 85 (Common Rule), and OMB Circulars A-110 (Grants and Agreements with Non-Profit Organizations), A122 (Cost Principles for Non-Profits), A-128 (Audits of State and Local Governments-implemented at 24 CFR, Part 24), and A-133 (Audits of Institutions of Higher Education and Other Non-Profit Institutions), as applicable, as they relate to the acceptance and use of Federal funds under this part.
The applicable sections of 24 CFR, Part 85 and OMB Circular A-100 are set forth at 570.502.
14. 570.611. Conflict of Interest
15. 570.612. Executive Order 12372 allows States to establish its own process for review and comment on proposed Federal financial assistance programs, specifically the use of CDBG funds for the construction or planning of water or sewer facilities.
16. 570.613. Eligibility Restrictions for Certain Resident Aliens
17. 570.614. Architectural Barriers Act and the Americans with Disabilities Act.
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Declaration of Contractor-Exhibit E
EXHIBIT E
DECLARATION OF CONTRACTOR
(To be completed by all Type I Contractors)
Thisis a Type I service contract under the Board of Supervisor’s Resolution of Contracting Principles.
Type I Category: Section II C.6
Explanation: Contract with another Public Government Agency I am authorized to complete this form on behalf of the TOWN OF LOS GATOS.
I have used due diligence in obtaining this information, and this information contained herein is complete and accurate.
CONTRACT PROVISIONS TO IMPLEMENT THE TERMS OF THE RESOLUTION RE: CONTRACTING PRINCIPLES This CONTRACT is a Type I service contract, subject to the Resolution of Contracting Principles adopted by the Board of Supervisors on October 28, 1997 and subsequently amended on October 21, 2008. Accordingly, CITY shall comply with all of the following:
a. CITY shall, during the term of this contract, comply with all applicable federal, state, and local rules, regulations, and laws.
b. Contractor shall maintain financial records adequate to show that COUNTY funds paid under the contract were used for purposes consistent with the terms of the contracts. These records shall be maintained during the term of this contract and for a period of three (3) years from termination of this contract or until all claims if any, have been resolved, whichever period is longer, or longer if otherwise required under other provisions of this contract.
The failure of Contractor to comply with this Section or any portion thereof may be considered a material breach of this contract and may, at the option of the County, constitute grounds for the termination and/or non-renewal of the contract. Contractor shall be provided reasonable notice of any intended termination or non-renewal on the ground of non-compliance with this Section, and the opportunity to respond and discuss the COUNTY’s intended action.
Town Manager Signature:
Date
Print Name:
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County of Santa Clara LG-23-01
Office of Supportive Housing
FY23 Town of Los Gatos CDBG Contract
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EXHIBIT F
INSURANCE REQUIREMENTS FOR
STANDARD CONTRACTS ABOVE $100,000
Indemnity
The Contractor shall indemnify, defend, and hold harmless the County of Santa Clara (hereinafter "County"), its officers, agents and employees from any claim, liability, loss, injury or damage arising out of, or in connection with, performance of this Agreement by Contractor and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by the County. It is the intent of the parties to this Agreement to provide the broadest possible coverage for the County. The Contractor shall reimburse the County for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor contests its obligation to indemnify, defend and/or hold harmless the County under this Agreement and does not prevail in that contest.
Insurance
Without limiting the Contractor's indemnification of the County, the Contractor shall provide and maintain at its own expense, during the term of this Agreement, or as may be further required herein, the following insurance coverages and provisions:
A. Evidence of Coverage
Prior to commencement of this Agreement, the Contractor shall provide a Certificate of Insurance certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request.
This verification of coverage shall be sent to the requesting County department, unless otherwise directed. The Contractor shall not receive a Notice to Proceed with the work under the Agreement until it has obtained all insurance required and such insurance has been approved by the County. This approval of insurance shall neither relieve nor decrease the liability of the Contractor.
B. Qualifying Insurers
All coverages, except surety, shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A- V, according to the current Best's Key Rating Guide or a company of equal financial stability that is approved by the County's Insurance Manager.
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EXHIBIT F
Rev. 9/2016 2
C. Notice of Cancellation
All coverage as required herein shall not be canceled or changed so as to no longer meet the specified County insurance requirements without 30 days' prior written notice of such cancellation or change being delivered to the County of Santa Clara or their designated agent.
D. Insurance Required
1. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows:
a. Each occurrence - $1,000,000
b. General aggregate - $2,000,000
c. Products/Completed Operations aggregate - $2,000,000 d. Personal Injury - $1,000,000
2. General liability coverage shall include:
a. Premises and Operations
b. Products/Completed
c. Personal Injury liability
d. Severability of interest
3. General liability coverage shall include the following endorsement, a copy of which shall be provided to the County:
AdditionalInsured Endorsement, which shall read:
“County of Santa Clara, and members of the Board of Supervisors of the County of Santa Clara, and the officers, agents, and employees of the County of Santa Clara, individually and collectively, as additional insureds.”
Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the County of Santa Clara, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. Public Entities may also be added to the
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EXHIBIT F
Rev. 9/2016 3
additional insured endorsement as applicable and the contractor shall be notified by the contracting department of these requirements.
4. Automobile Liability Insurance
For bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 4a. Aircraft/Watercraft Liability Insurance (Required if Contractor or any of its agents or subcontractors will operate aircraft or watercraft in the scope of the Agreement) For bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired aircraft/watercraft.
5. Workers' Compensation and Employer's Liability Insurance a. Statutory California Workers' Compensation coverage including broad form all-states coverage.
b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence.
E. Special Provisions
The following provisions shall apply to this Agreement:
1. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the County or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to the provisions concerning indemnification.
2. The County acknowledges that some insurance requirements contained in this Agreement may be fulfilled by self-insurance on the part of the Contractor.
However, this shall not in any way limit liabilities assumed by the Contractor under this Agreement. Any self-insurance shall be approved in writing by the County upon satisfactory evidence of financial capacity. Contractors obligation hereunder may be satisfied in whole or in part by adequately funded self-insurance programs or self-insurance retentions.
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EXHIBIT F
Rev. 9/2016 4
3. Should any of the work under this Agreement be sublet, the Contractor shall require each of its subcontractors of any tier to carry the aforementioned coverages, or Contractor may insure subcontractors under its own policies.
4. The County reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above.
F. Fidelity Bonds (Required only if contractor will be receiving advanced funds or payments) Before receiving compensation under this Agreement, Contractor will furnish County with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Agreement, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the County cited herein. If such bond is canceled or reduced, Contractor will notify County immediately, and County may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Agreement, at the option of County.
PREPARED BY: Nicolle Burnham
Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 6
DESK ITEM
DATE: February 7, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Following Actions for the Americans with Disabilities Act (ADA) Public Restroom -- Adult Recreation Center Project (CIP No. 821-2601) a. Approve Plans and Specifications; and
b. Authorize Advertising the Project for Bid; and
c. Authorize the Town Manager to Execute the County of Santa Clara Grant Agreement (Fiscal Year 2022/23) and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $250,000 to Recognize Receipt and Expenditure for CIP No. 821-2601; and
d. Authorize the Town Manager to Execute the Santa Clara County Community Development Block Grant (CDBG) City/County Contract for Fiscal Year 2023 and Authorize Revenue and Expenditure Budget Adjustments in the Amount of $140,000 to Recognize Receipt and Expenditure of the Community Development Block Grant Fund for CIP No 821-2601.
REMARKS:
The following information is provided in response to a question from a Council Member since the posting of the staff report.
Request clarification on the large amount of leftover funding for this project.
The Community Development Block Grant of $140,000 and a County Supervisor Grant of $250,000 are awarded as a reimbursement, with the existing GFAR funds being used as front funding for the grants. Neither of the grants require Town match funding.
It is anticipated that a balance of approximately $250,000 will remain after the completion of the project if there is no additional unforeseen work, such as mold remediation. This $250,000 could be used to fund ADA improvements in the Adult Recreation Center parking lot which is a project that meets the grant funding requirements, has already been designed and is pending plan and specification approval.
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SUBJECT: Americans with Disabilities Act (ADA) Public Restroom - Adult Recreation Center (CIP No. 821-2601)
DATE: February 7, 2023
ATTACHMENTS:
Previously received with the Staff Report:
1. Santa Clara County Supervisor’s Item#8 Grant Fund Agreement
2. Community Development Block Grant Fund Agreement
PREPARED BY: Ryan Baker
Library Director
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: 02/07/2023
ITEM NO: 7
DATE: February 2, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize Budget Adjustments in the Total Amount of $43,500 to Recognize Receipt and Expenditure of Black Gold Library Consortium Grant Funds RECOMMENDATION:
Authorize budget adjustments in the total amount of $43,500 to recognize receipt and expenditure of Black Gold Library Consortium grant funds.
BACKGROUND:
The library has been successful in obtaining a grant in the amount of $43,500 from the Black Gold Library Consortium. Grant funds will be used to install non-digital activities and learning hubs in the children’s room of the library focusing on inclusive learning styles and a wide variety of developmental needs.
FISCAL IMPACT:
Grant revenues totaling $43,500 will be recorded to account 7801-43343 and be expended from account 7801-61172.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PREPARED BY: James Watson
Interim Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 8
DATE: January 30, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Following Actions for the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921):
a. Approve the Plans and Specifications; and
b. Authorize Advertising the Project for Bid
RECOMMENDATION:
Staff recommends the following actions for the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921):
a. Approve the plans and specifications; and
b. Authorize advertising the project for bid.
BACKGROUND:
The adopted Fiscal Year (FY) 2022/23-2026/27 Capital Improvement Program (CIP) Budget designates funding for the Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921).
The goal of this annually funded project is to replace and improve damaged or outdated curbs, gutters, sidewalks, driveways, and curb ramps within the Town’s jurisdiction to address safety and operational issues and to improve accessibility. Project locations are primarily based on where concrete infrastructure improvements are needed prior to the Annual Street Repair and Resurfacing Project (CIP No. 811-9901). The project is consistent with the Town’s goals to improve public safety and the quality of the Town’s infrastructure.
DISCUSSION:
For the FY 2022/23 Curb, Gutter, and Sidewalk Maintenance (Concrete) Project, a large portion of the work focuses on replacing or retrofitting curb ramps for compliance with the Americans with Disabilities Act (ADA) and other accessibility requirements. Title II of the ADA
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SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: January 23, 2023
DISCUSSION (continued):
obligates jurisdictions to upgrade non-conforming curb ramps when streets are resurfaced from one intersection to another. The United States Department of Justice has determined that surface treatments such as asphalt overlay and rubber cape seal trigger the requirement for ADA compliant curb ramps on associated streets.
Town staff is finalizing the list of streets and street treatments to be performed for the F Y 2022/23 Street Repair and Resurfacing Project (CIP 811-9901). Based on this list, staff identified a total of 57 curb ramps that are anticipated to be replaced or retrofitted with this year’s Concrete Project (Attachment 1). The Concrete Project also includes approximately 1,000 square feet of sidewalk and 200 linear feet of curb and gutter to be repaired or replaced. The engineer’s estimate for this project is $509,506, which includes a 10% contingency.
The Plans and Specifications for the FY 2022/23 Curb, Gutter, and Sidewalk Maintenance Project can be viewed on the Town website at https://www.losgatosca.gov/108/CapitalImprovement-Program.
Once authorized by the Town Council to advertise for bid, the following is the anticipated schedule for the Concrete Project:
Milestones Anticipated Timeline
Advertise the Project for Bid February 10, 2023
Bids Due March 2, 2023
Council to Award to the Lowest Bidder April 4, 2023
Execute Agreement April 2023
Start Construction May 1, 2023
Anticipated Completion June 12, 2023
CONCLUSION:
Approval of the recommendations would allow staff to move forward with bidding for the FY 2022/23 Curb, Gutter, and Sidewalk Maintenance Project. This project would be constructed in advance of this year’s Street Repair and Resurfacing Project.
COORDINATION:
This project has been coordinated with the Finance Department.
PAGE 3 OF 3
SUBJECT: Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) DATE: January 23, 2023
FISCAL IMPACT:
The FY 2022/23 – 2026/27 CIP Budget for the Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921) is sufficient for the construction contract, including contingency and project delivery costs.
FISCAL IMPACT (continued):
Staff costs are tracked for all projects. Tracking of staff costs allows for accountability in the costs of projects, recovery of costs from grant funded projects, and identification of future staffing needs. This project utilizes a combination of full-time budgeted staff and temporary staff that support fluctuating workloads. The costs for temporary staff will be directly associated with this project while full-time staff are accounted for in the department’s operating budget.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301(c)). A Notice of Exemption will be filed.
Attachments:
1. Locations of Work
Budget Costs
GFAR $ 535,515
Total Budget $ 535,515
Construction $ 409,900
Construction Contingency (10%) $ 40,990
Temporary/Part-Time Staff $ 30,000
Material Testing $ 20,000
Other Project Delivery Costs $ 8,616
Total Costs $ 509,506
Available Balance $ 26,009
Curb, Gutter, and Sidwalk Maintenance Project
CIP No. 813-9921
BASE BID:
No. Street Name Location
CR_1 Angel Ct at Short Rd SE corner
CR_2 Belgatos Ln at Westhill Dr SW corner
CR_3 Belgatos Rd at Belblossom Wy NE corner
CR_4 Belgatos Rd at Belblossom Wy NW corner
CR_5 Belgatos Rd at Belblossom Wy SE corner
CR_6 Belgatos Rd at Belblossom Wy SW corner
CR_7 Belgatos Rd at Belvue Dr NE corner
CR_8 Belgatos Rd at Belvue Dr NW corner
CR_9 Belgatos Rd at Belvue Dr SE corner
CR_10 Belgatos Rd at Belvue Dr SW corner
CR_11 Belgatos Rd at Westhill Dr NE corner
CR_12 Belgatos Rd at Westhill Dr SE corner
CR_13 Belgatos Rd at Westhill Dr SW corner
CR_14 Belwood Gateway at Belblossom Wy NE corner
CR_15 Belwood Gateway at Belblossom Wy NW corner
CR_16 Blossom Hill Rd at Blossom Dale Dr NE corner
CR_17 Cherry Blossom Ln at The Terraces of Los Gatos Alley NW corner CR_18 Cherry Blossom Ln at The Terraces of Los Gatos Alley SW corner CR_19 Eastridge Dr at Lansberry Ct NW corner
CR_20 Eastridge Dr at Lansberry Ct SW corner
CR_21 Farley Rd at Izorah Wy SE corner
CR_22 Farley Rd at Izorah Wy SW corner
CR_23 Farley Rd at Los Gatos Bl NE corner
CR_24 Farley Rd at Los Gatos Bl SW corner
CR_25 Gemini Ct at Harwood Rd NE corner
CR_26 Gemini Ct at Harwood Rd SE corner
CR_27 Highland Oaks Dr at Lark Av SW corner
CR_28 Highland Oaks Dr at Oak Park Dr NE corner
CR_29 Highland Oaks Dr at Oak Park Dr NW corner
CR_30 Highland Oaks Dr at Oak Park Dr SE corner
CR_31 Highland Oaks Dr at Oak Wood Wy NE corner
CR_32 Highland Oaks Dr at Oak Wood Wy SE corner
CR_33 Highland Oaks Dr at Oakdale Dr NE corner
CR_34 Highland Oaks Dr at Oakdale Dr SE corner
CR_35 Lansberry Ct at Shannon Rd NW corner
CR_36 Leroy Av at Los Gatos Bl NW corner
CR_37 Leroy Av at Los Gatos Bl SW corner
CR_38 Oak Park Dr at Garden Ln NW corner
CR_39 Oak Park Dr at Garden Ln SW corner
CR_40 Sebastian Ct at Harwood Rd NE corner
CR_41 Sebastian Ct at Harwood Rd SE corner
CR_42 Union Av at Lasuen Ct NW corner
#22‐813‐9921 FY 2022/23 Annual Curb, Gutter, and Sidewalk Maintenance
LOCATIONS OF WORK
CR_43 Union Av at Lasuen Ct SW corner
CR_44 Union Av at Leewood Ct NE corner
CR_45 Union Av at Leewood Ct SE corner
CR_46 Union Av at Lynn Av NW corner
CR_47 Union Av at Lynn Av SW corner
CR_48 Wheeler Av at Los Gatos Bl NE corner
CR_49 Wheeler Av at Los Gatos Bl SE corner
CR_50 Wheeler Av at Whitney Av SW corner
CR_51 Whitney Av at Stacia St SE corner
ADDITIVE ALTERNATE 1:
No. Street Name Location
CR_52 Carlester Dr at Lester Dr NE corner
CR_53 Carlester Dr at Lester Dr NW corner
CR_54 Carlton Av at Carlester Dr SE corner
CR_55 Carlton Av at Carlester Dr SW corner
CR_56 Carlton Av at Carlton Ct NE corner
CR_57 Carlton Av at Carlton Ct NW corner
CR_58 Carlton Av at Carlton Wy NE corner
CR_59 Carlton Av at Carlton Wy NW corner
CR_60 Carlton Av at Jo Dr SE corner
CR_61 Carlton Av at Jo Dr SW corner
CR_62 Carlton Av at Lester Ln North
CR_63 Carlton Av at Lester Ln NE corner
CR_64 Carlton Av at Lester Ln NW corner
CR_65 Carlton Av at Lester Ln South
CR_66 Carlton Av at Lester Ln SE corner
CR_67 Carlton Av at Lester Ln SW corner
CR_68 Carlton Av at Mary Alice Dr SE corner
CR_69 Carlton Av at Mary Alice Dr SW corner
Note: Locations and quantities to be verified in the field.
PREPARED BY: Bridgette Falconio
Administrative Technician
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: 02/07/2023
ITEM NO: 9
DATE: February 2, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Following Actions for the Property Location: 137 Bersano Lane.
APN 424-29-054. Property Owner: Lisa DeGeorge.
a. Adopt a Resolution Approving a Purchase and Sale Agreement for the RePurchase of an Affordable Housing Unit Subject to an Existing Below Market Price (BMP) First Right of Refusal Option; and
b. Authorize the Town Manager to Negotiate and Execute all Agreements and Documents Necessary and Appropriate to Effectuate the Preservation of the Affordable Housing Unit; and
c. Authorize Revenue and Expenditure Budget Adjustments in the Amount of $436,276 from Available BMP Housing In-Lieu Fee Fund to RePurchase, Repair, and Pay Past Due Fees and Taxes of the Property.
RECOMMENDATION:
Staff recommends that the Town Council authorize the following actions for the property located at 137 Bersano Lane:
a. Adopt a Resolution (Attachment 1) approving a Purchase and Sale Agreement in substantially the form presented for the re-purchase of an affordable housing unit subject to an existing Below Market Price (BMP) First Right of Refusal Option for property located at 137 Bersano Lane (APN 424-29-054),
b. Authorize the Town Manager to negotiate and execute all agreements and documents necessary to preserve of the affordable housing unit, and c. Authorize revenue and expenditure budget adjustments in the amount of $436,276 from available BMP Housing In-Lieu Fee Fund to re-purchase, repair, and pay past due fees and taxes of the property.
PAGE 2 OF 3
SUBJECT: Adopt a Resolution Approving the Purchase and Sale Agreement for 137 Bersano Lane DATE: February 2, 2023
BACKGROUND:
The property, 137 Bersano Lane, is a 2-bedroom 1.5 bath townhome within the Town’s BMP Housing Program inventory. The property is subject to an existing first right of refusal option in a Deed Restriction recorded in March of 2014. The unit was purchased for $250,000.00.
The current owner, Lisa DeGeorge, has notified the Town that she wishes to sell this property back to the Town.
The property has sustained substantial damage and needs to be repaired before reselling.
Repair expenses are estimated to be approximately $80,000. Additionally, there are outstanding Homeowners Association dues (approximately $1,854) and property taxes (approximately $10,000) that will be paid at closing. Pursuant to the proposed agreement, the Town will have the repairs done and complete any outstanding payments. The Town will deduct all expenses from the amount due the seller at closing.
The Town’s re-purchase price is dictated by the deed restriction. Pursuant to the terms of the proposed purchase and sale agreement, the Town will expend approximately $344,421.75 from the BMP Housing In-Lieu Fund to repurchase this unit.
After the Town has purchased the unit and made the repairs, the Town will sell the unit to a new income-qualified buyer at the allowable purchase price, which is anticipated to be approximately $344,421.75.
CONCLUSION AND RECOMMENDATION:
Authorizing the Town’s re-purchase of the unit will preserve the unit in the Town’s stock of affordable housing. Staff recommends that the Town Council adopt the prepared resolution (Attachment 1) and authorize the Town Manager to execute a real property purchase and sale agreement in substantially the form attached (Attachment 2).
COORDINATION:
The Town Attorney’s Office, Community Development Department, and Town Manager’s Office coordinated this report.
FISCAL IMPACT:
The cost for the Town to repurchase the unit is $344,422. An expenditure budget adjustment in the amount of $436,276 will be needed from the available BMP Housing In-Lieu Fee Fund to repurchase the unit, pay for repairs, and pay past due fees and property taxes. The cost of the repairs, pay past due fees and past due property taxes totaling approximately $90,854 will be deducted from the proceeds due to the seller. This amount will be held in an escrow account
PAGE 3 OF 3
SUBJECT: Adopt a Resolution Approving the Purchase and Sale Agreement for 137 Bersano Lane DATE: February 2, 2023
FISCAL IMPACT (continued):
until the unit has been sold and then a revenue adjustment will be made to the BMP Housing In-Lieu Fee Fund.
ENVIRONMENTAL ASSESSMENT:
The proposed real property purchase is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Resolution
2. Draft Purchase and Sale Agreement/Addendum
1 of 2
Resolution 20 - February 7, 2023
DRAFT RESOLUTION 2023-xx
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING A PURCHASE AND SALE AGREEMENT FOR THE RE-PURCHASE OF AN
AFFORDABLE HOUSING UNIT SUBJECT TO AN EXISTING BELOW MARKET PRICE (BMP) FIRST RIGHT OF REFUSAL OPTION FOR PROPERTY LOCATED AT 137 BERSANO LANE (APN 424-29-054) AND AUTHORIZING THE TOWN MANAGER TO
NEGOTIATE AND EXECUTE ALL AGREEMENTS AND DOCUMENTS NECESSARY TO
PRESERVE THE AFFORDABLE HOUSING UNIT
WHEREAS, the Town of Los Gatos Zoning Ordinance (Sections 29.10.3000 through
23.10.2040) establishes a Below Market Price (BMP) Housing Program to assist low and moderate income citizens in the purchase homes at prices below market value; WHEREAS, the residential unit located at 137 Bersano Lane (the “BMP Unit”) was purchased by the property owner through the BMP Housing Program for a reduced sales price affordable to lower income households;
WHEREAS, the BMP Housing Program requires as a condition of participation that a Deed Restriction with a First Right of Refusal Option for the Town to able to repurchase units at a future designated sales price to be recorded on the title record of BMP units; and WHEREAS, the BMP Unit is subject to a recorded Deed Restriction with a First Right of Refusal Option;
WHEREAS, the Town wishes to purchase the BMP Unit for the designated sales price of $344,421.75 so that the BMP Unit can be preserved within the Town’s BMP program and resold to an income-qualified buyer; and
WHEREAS, this resolution provides for the acquisition of this BMP Unit by the Town of Los Gatos and authorizes the Town Manager to negotiate and execute all agreements and documents necessary to preserve the BMP Unit.
NOW, THEREFORE, BE IT RESOLVED, that the Town Council of the Town of Los Gatos approves the Purchase and Sale Agreement in substantially the form presented for the purchase of the BMP Unit and authorizes the Town Manager to negotiate and execute all agreements and documents necessary to preserve the BMP Unit.
ATTACHMENT 1
2 of 2
Resolution 20 - February 7, 2023
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7
th day of February, 2023, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
Buyer’s Initials _______ Seller’s Initials _______
RESIDENTIAL REAL ESTATE PURCHASE AGREEMENT
This Real Estate Purchase Agreement (“Agreement”) made on the ___ day of _____ 2023 (“Effective Date”) between:
Town of Los Gatos (“Buyer”) with a mailing address of:
110 E. Main Street, Town of Los Gatos, State of California who agrees to buy AND
Lisa DeGeorge (“Seller”) with a mailing address of:
137 Bersano Lane, Town of Los Gatos, State of California, who agrees to sell and convey real and personal property as described below. Buyer and Seller, each individually, a “Party” and collectively, the “Parties.”
1. Legal Description. That certain real property located at 137 Bersano Lane, Los Gatos, CA 95030, as more particularly described on Exhibit A, attached to this Agreement, together with all improvements, fixtures, appurtenances, easements, and rights belonging or relating thereto (the “Property”). The Property is a Below Market Price (“BMP”) attached single-family residence.
Street Address: 137 Bersano Lane, Los Gatos CA 95030
Tax Parcel Information or Assessor’s Parcel No: 424-29-054 Other Description: See Preliminary Title Report
2. Personal Property. In addition to the real property described in Section 1, the Seller shall include no personal property.
3. Purchase Price and Terms. The Buyer agrees to purchase the Property by payment of $344,421.75 (Three Hundred Forty Four Thousand Four Hundred and Twenty-One Dollars and Seventy-Five Cents) as follows: (check one)
☒ - All Cash Offer. No loan or financing of any kind is required in order to purchase the Property.
☐ - Bank Financing. The Buyer’s ability to purchase the Property is contingent upon the Buyer’s ability to obtain financing under the following conditions: (check one) ☐ - Conventional Loan
☐ - Other: BEGIN Down Payment Assistance Loan
4. Earnest Money. After acceptance by all Parties, the Buyer agrees to make a payment in the amount of as consideration by the ___ day of _____ 2023 at 5:00 ☐ AM ☒ PM (“Earnest Money”). The Earnest Money shall be applied to the Purchase Price at Closing and subject to the Buyer’s ability to perform under the terms of this Agreement.
ATTACHMENT 2
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
Any Earnest Money accepted ☒ is ☐ is not required to be placed in a separate trust or escrow account in accordance with State law.
5. Sale of Another Property. Buyer’s performance under this Agreement shall not be contingent upon selling another property.
6. Closing Costs. The costs attributed to the Closing of the Property shall be the responsibility of Both Parties. The fees and costs related to the Closing shall include, but not be limited to a title search (including the abstract and any owner’s title policy), preparation of the deed, transfer taxes, recording fees, and any other costs by the title company that is in standard procedure with conducting the sale of a property.
7. Funds at Closing. Buyer and Seller agree that before the recording can take place, funds provided shall be in one (1) of the following forms: cash, interbank electronic transfer, money order, certified check, or cashier’s check drawn on a financial institution located in the State, or any above combination that permits the Seller to convert the deposit to cash no later than the next business day.
8. Close of Escrow. This transaction shall be closed on the ___ day of _____ 2023 at 5:00 ☐ AM ☒ PM or earlier at the office of a title company to be agreed upon by the Parties (“Closing”). Any extension of the Closing must be agreed upon, in writing, by Buyer and Seller. Real estate taxes, rents, dues, fees, and expenses relating to the Property for the year in which the sale is closed shall be prorated as of the Closing.
Taxes due for prior years shall be paid by Seller. “Close of Escrow”, including “COE”, means the date the grant deed, or other evidence of transfer of title is recorded Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
9. Prorations of Property Taxes and Other Items. Unless otherwise agreed in writing, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues, and assessments imposed prior to Close of Escrow.
Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: for periods after Close of Escrow, by Buyer; and for periods prior to Close of Escrow, by Seller.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
10. Mineral Rights. It is agreed and understood that all rights under the soil, including but not limited to water, gas, oil, and mineral rights shall be transferred by the Seller to the Buyer at Closing.
11. Title. Seller shall convey title to the property by warranty deed or equivalent. The Property may be subject to restrictions contained on the plat, deed, covenants, conditions, and restrictions, or other documents noted in a Title Search Report. Upon execution of this Agreement by the Parties, Seller will, at the shared expense of both Buyer and Seller, order a Title Search Report and have delivered to the Buyer.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
Upon receipt of the Title Search Report, the Buyer shall have 10 business days to notify the Seller, in writing, of any matters disclosed in the report which are unacceptable to Buyer. Buyer’s failure to timely object to the report shall constitute acceptance of the Title Search Report.
If any objections are made by Buyer regarding the Title Search Report, mortgage loan inspection, or other information that discloses a material defect, the Seller shall have 20 business days from the date the objections were received to correct said matters. If Seller does not remedy any defect discovered by the Title Search Report, Buyer shall have the option of canceling this Agreement, in which case the Earnest Money shall be returned to Buyer.
After Closing, Buyer shall receive an owner’s standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the Purchase Price, free and clear of the objections and all other title exceptions agreed to be removed as part of this transaction.
12. Property Condition. Seller agrees to maintain the Property in its current condition, subject to ordinary wear and tear, from the time this Agreement comes into effect until the Closing. The Property is sold “AS-IS” in its PRESENT physical condition as of the date of Acceptance and subject to Buyer's Investigation rights; the Property, including pool, spa, landscaping, and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and all debris and personal property not included in the sale shall be removed by Close of Escrow, vacant, and in “broom clean” condition.
Therefore, Buyer shall hold the right to hire licensed contractors, or other qualified professionals, to further inspect and investigate the Property until 0/00/2022 at 5:00 ☐ AM ☒ PM or Sooner. If the Buyer fails to have the Property inspected or does not provide the Seller with written notice of the new disclosures on the Property, in accordance with this Agreement, Buyer hereby accepts the Property in its current condition and as described in any disclosure forms presented by the Seller. In the event improvements on the Property are destroyed, compromised, or materially damaged prior to Closing, the Agreement may be terminated at Buyer’s option.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
13. Seller’s Indemnification. Except as otherwise stated in this Agreement, after recording, the Buyer shall accept the Property AS IS, WHERE IS, with all defects, latent or otherwise. Seller shall not be bound to any representation or warranty of any kind relating in any way to the Property or its condition, quality, or quantity, except as specifically set forth in this Agreement or any property disclosure, which contains representations of the Seller only, and which is based upon the best of the Seller’s personal knowledge.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
14. Appraisal. Buyer’s performance under this Agreement shall not be contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price.
15. Required Documents. Prior to the Closing, the Parties agree to authorize all necessary documents, in good faith, in order to record the transaction under the conditions required by the recorder, title company, lender, or any other public or private entity.
16. Termination. In the event this Agreement is terminated, as provided in this Agreement, absent of default, any Earnest Money shall be returned to the Buyer, in-full, within 3 business days with all parties being relieved of their obligations as set forth herein.
17. Sex Offenders. Section 2250 of Title 18, United States Code, makes it a federal offense for sex offenders required to register pursuant to the Sex Offender Registration and Notification Act (SORNA), to knowingly fail to register or update a registration as required. State convicted sex offenders may also be prosecuted under this statute if the sex offender knowingly fails to register or update a registration as required, and engages in interstate travel, foreign travel, or enters, leaves, or resides on an Indian reservation.
A sex offender who fails to properly register may face fines and up to ten (10) years in prison. Furthermore, if a sex offender knowingly fails to update or register as required and commits a violent federal crime, he or she may face up to thirty (30) years in prison under this statute. The Buyer may seek more information online by visiting https://www.nsopw.gov/.
18. Time. Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete, and exclusive expression of their Agreement with respect to its subject matter and they may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement.
19. Buyer’s Default. Seller’s remedies shall be limited to liquidated damages in the amount of the Earnest Money set forth in Section IV. It is agreed that such payments and things of value are liquidated damages and are Seller’s sole and only remedy for Buyer’s failure to perform the obligations of this Agreement. The Parties agree that Seller’s actual damages in the event of Buyer’s default would be difficult to measure, and the amount of the liquidated damages herein provided for is a reasonable estimate of such damages.
20. Seller’s Default. Buyer may elect to treat this Agreement as cancelled, in which case all Earnest Money paid by Buyer hereunder shall be returned and Buyer may recover such damages as may be proper, or Buyer may elect to treat this Agreement as being in full force and effect and Buyer shall have the right to specific performance or damages, or both.
21. Earnest Money Dispute. Notwithstanding any termination of this Agreement, the Parties agree that in the event of any controversy regarding the release of the Earnest Money that the matter shall be submitted to mediation.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
22. Dispute Resolution. Buyer and Seller agree to mediate any dispute or claim arising out of this Agreement, or in any resulting transaction, before resorting to arbitration or court action.
a.) Mediation. If a dispute arises, between or among the Parties, and it is not resolved prior to or after recording, the Parties shall first proceed in good faith to submit the matter to mediation. Costs related to mediation shall be mutually shared between or among the Parties. Unless otherwise agreed in mediation, the Parties retain their rights to proceed to arbitration or litigation.
b.) Exclusions. The following matters shall be excluded from mediation and arbitration:
(i) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed, mortgage or installment land sale contract as defined in accordance with State law; (ii) an unlawful detainer action, forcible entry detainer, eviction action, or equivalent; (iii) the filing or enforcement of a mechanic’s lien; and (iv) any matter that is within the jurisdiction of a probate, small claims, or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions of this Section.
23. Governing Law. This Agreement shall be interpreted in accordance with the laws in the State of CA. In the event of litigation, the venue will be in the County of Santa Clara.
The Town of Los Gatos reserves the right to assign this purchase agreement to a qualified buyer.
24. Terms and Conditions of Offer. This is an offer to purchase the Property in accordance with the above stated terms and conditions of this Agreement. If at least one, but not all, of the Parties initial such pages, a counteroffer is required until an agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of acceptance. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of licensed real estate agent(s) compensation. This Agreement and any supplement, addendum, or modification, including any copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing.
25. Binding Effect. This Agreement shall be for the benefit of, and be binding upon, the Parties, their heirs, successors, legal representatives, and assigns, which therefore, constitutes the entire agreement between the Parties. No modification of this Agreement shall be binding unless signed by both Buyer and Seller.
26. Severability. In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.
27. Acceptance. Seller warrants that Seller is the owner of the Property or has the authority to execute this Agreement. Therefore, by the Seller’s authorization below, he/she/they accepts the above offer and agrees to sell the Property on the above terms and conditions.
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
Delivery may be in any of the following: (i) hand delivery; (ii) email under the condition that the party transmitting the email receives electronic confirmation that the email was received to the intended recipient; or (iii) by facsimile to the other party or the other party’s licensee, but only if the transmitting fax machine prints a confirmation that the transmission was successful.
28. Licensed Real Estate Agent(s). Buyer or Seller each represent that neither party has hired the services of licensed real estate agent(s) to perform representation on their behalf. And no real estate agent shall be entitled to payment for their services.
29. Disclosures. It is acknowledged by the Parties that: (check one) ☐ - There are no attached addendums or disclosures to this Agreement. ☒ - The following addendums or disclosures are attached to this Agreement:
☒ - Lead-Based Paint Disclosure Form
☒ - California Megan’s Law
☒ - Natural and Environmental Hazard Disclosures (NHD)
☒ - California Transfer Disclosure Statement
30. Additional Terms and Conditions
☒ - Below Market Price Home Ownership Disclosure Statement ☐ - _______________________________________________________________
31. Entire Agreement. This Agreement together with any attached addendums or disclosures shall supersede any and all other prior understandings and agreements, either oral or in writing, between the Parties with respect to the subject matter hereof and shall constitute the sole and only agreements between the Parties with respect to the said Property. All prior negotiations and agreements between the Parties with respect to the Property hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party or by anyone acting on behalf of any party, which are not embodied in this Agreement and that any agreement, statement, or promise that is not contained in this Agreement shall not be valid or binding or of any force or effect.
32. Signature
SELLER(S):
Date: ____________________ _________________________________ Lisa DeGeorge
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
BUYER(S):
Date: ____________________ _________________________________ Laurel Prevetti
Town Manager
Date: ____________________ _________________________________ Joel Paulson
Community Development Director
Approved as to Form: _________________________________
Gabrielle Whelan
Town Attorney
Attest: _________________________________
Wendy Wood
Town Clerk
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
ADDENDUM #1
This Real Estate Purchase Agreement (“Agreement”) made on the ___ day of _____ 2023, (“Effective Date”) between:
Town of Los Gatos (“Buyer”) with a mailing address of:
110 E. Main Street, Town of Los Gatos, State of California who agrees to buy AND
Lisa DeGeorge (“Seller”) with a mailing address of:
137 Bersano Lane, Town of Los Gatos, State of California, who agrees to sell and convey real and personal property as described below. Buyer and Seller, each individually, a “Party” and collectively, the “Parties.”
1. Legal Description. That certain real property located at 137 Bersano Lane, Los Gatos, CA 95030, as more particularly described on Exhibit A, attached to this Agreement, together with all improvements, fixtures, appurtenances, easements, and rights belonging or relating thereto (the “Property”). The Property is a Below Market Price (“BMP”) attached single-family residence.
Street Address: 137 Bersano Lane, Los Gatos CA 95030
Tax Parcel Information or Assessor’s Parcel No: 424-29-054
2. Terms:
A. Utilities to remain on until the COE
B. Seller agrees to do a holdback in escrow in the amount of $80,000 which shall cover $75,938.00 for the work to be completed, six months of HOA dues totaling $1,854.00, 6 months of Utilities $ 2,208.00
C. Mutual agreement must be signed by both parties before any money is released.
The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of a copy of this document.
[Signatures on Following Page]
Buyer’s Initials ______ / ______ Seller’s Initials ______ / ______
3. Signature
SELLER(S):
Date: ____________________ _________________________________ Lisa DeGeorge
BUYER(S):
Date: ____________________ _________________________________ Laurel Prevetti
Town Manager
Date: ____________________ _________________________________ Joel Paulson
Community Development Director
Approved as to Form: _________________________________
Gabrielle Whelan
Town Attorney
Attest: _________________________________
Wendy Wood
Town Clerk
PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023
ITEM NO: 10
DATE: January 23, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion Accepting the Work of Ashron Construction and Restoration, Inc., and Authorize Recording by the Town Clerk for PPW Job No. 817-0708 Parking Lot 4 Repair and Waterproofing
RECOMMENDATION:
Authorize the Town Manager to execute a Certificate of Acceptance and Notice of Completion accepting the work of Ashron Construction and Restoration, Inc, and authorize recording by the Town Clerk for PPW Job No. 817-0708 Parking Lot 4 Repair and Waterproofing.
BACKGROUND:
The Town’s adopted Fiscal Year (FY) 2021/22 Capital Improvement Program Budget designates funding for Town projects, including Project 817-0708 Parking Lot 4 Repair and Waterproofing.
At the March 15, 2022 Town Council Meeting, Council authorized the Town Manager to execute an agreement for services with Ashron Construction and Restoration, Inc. for structural repairs and waterproofing of the Lot 4 parking structure in an amount not to exceed $179,800 plus an additional $20,000 for unanticipated repairs for a total agreement amount not to exceed $199,800.
DISCUSSION:
Ashron Construction and Restoration, Inc. has satisfactorily completed all the work for this project and staff recommends project acceptance. The execution and recordation of the Certificate of Acceptance are now required to finalize the Town’s acceptance of the project.
PAGE 2 OF 2
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion
DATE: January 23, 2023
CONCLUSION:
Authorize the Town Manager to execute a Certificate of Acceptance and Notice of Completion accepting the work of Ashron Construction and Restoration, Inc, and authorize recording by the Town Clerk for PPW Job No. 817-0708 Parking Lot 4 Repair and Waterproofing.
FISCAL IMPACT:
This report is meant to close out the contract with Ashron Construction and Restoration, Inc. associated with the project. The fund balance will remain in the project.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Certificate of Acceptance and Notice of Completion
Budget Costs
GFAR $ 250,000
Total Budget $ 250,000
Construction - Ashron Construction and Restoration, Inc. $ 199,800 Total Expenditures $ 199,800
Remaining Budget $ 50,200
Parking Lot 4 Repair and Waterproofing Project
Project 817-0708
Recording Requested by:
TOWN OF LOS GATOS
WHEN RECORDED MAIL TO:
TOWN CLERK
TOWN OF LOS GATOS
110 E MAIN ST
LOS GATOS, CA 95030
______________________________________________________________________________ (SPACE ABOVE BAR FOR RECORDER’S USE)
(RECORD WITHOUT FEE UNDER GOVERNMENT CODE SECTIONS 27383 AND 6103)
TYPE OF RECORDING
CERTIFICATE OF ACCEPTANCE AND NOTICE OF COMPLETION
PPW JOB NO. 411-817-0708 Parking Lot 4 Repair & Waterproofing TO WHOM IT MAY CONCERN:
I do hereby certify that Ashron Construction and Restoration, Inc. completed the work called for in the agreement with the Town of Los Gatos dated March 1st, 2022. The work is outlined in the Town’s bid process prepared by the Town of Los Gatos and generally consisted of furnishing all labor, materials, tools, equipment, and services required for completion of the PPW Job No. 411-817-0708 located in the TOWN OF LOS GATOS, County of Santa Clara, State of California and was completed, approved and accepted July 17, 2022.
Bond No.: n/a
Date: n/a
TOWN OF LOS GATOS
By: __________________________________
Laurel Prevetti, Town Manager
Acknowledgment Required
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: 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: 02/07/2023
ITEM NO: 11
DATE: February 1, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute First Amendments to the Master Lease Agreements with Tait Firehouse, LLC and Forbes Mill, LLC RECOMMENDATION:
Authorize the Town Manager to execute First Amendments to the Master Lease Agreements with Tait Firehouse, LLC and Forbes Mill, LLC.
BACKGROUND:
In March 2019, the Town Council authorized an Exclusive Negotiating Agreement with Imwalle Asset Management, LLC, to help guide the negotiations of a Master Lease Agreement. On August 4, 2020, the Town Council authorized the Town Manager to execute long term lease agreements with Tait Firehouse LLC for the property located at 4 Tait Avenue (Attachment 1) and Forbes Mill LLC for the property located at 75 Church Street (Attachment 2). The decision was predicated on the fact that the proposal would allow the properties to remain in Town control, maintain the historic value of the properties, require no monetary resources from the Town, and ultimately provide an annual revenue stream to the Town.
DISCUSSION:
Since the completion of the lease agreements, the economic impacts on the commercial real estate market associated with the pandemic significantly disrupted initial lease up plans. There are provisions in the leases which stipulate that if lease up has not occurred within certain time periods either party can terminate the leases.
Given the unanticipated complexities of the commercial real estate market, staff recommends amending the lease agreements to extend these terms for an additional year. If at the conclusion of the extension period, the properties have not been leased then Council can
PAGE 2 OF 2
SUBJECT: First Amendment Forbes Tait Lease Agreements
DATE: February 1, 2023
DISCUSSION (continued):
reconsider options for the two properties at that time. Attachments 3 and 4 contain the proposed First Amendments and the specific language within the lease agreements to be amended. Deleted language is illustrated by strikethrough and language additions and illustrated in red.
COORDINATION:
This report was coordinated with the Town Manager and Town Attorney.
FISCAL IMPACT:
None.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Tait Firehouse Lease Agreement
2. Forbes Mill Lease Agreement
3. First Amendment to Tait Lease Agreement
4. First Amendment to Forbes Lease Agreement
ATTACHMENT 2 Page 157
ATTACHMENT 3
FIRST AMENDMENT TO AGREEMENT
This FIRST AMENDMENT TO AGREEMENT is dated for identification this 7th day of February 2023 and amends that certain Lease Agreement for Property Management Services dated October 29, 2020, made by and between the Town of Los Gatos ("Landlord” or the “Town"), and Tait Firehouse, LLC, a California Limited Liability Company (“Master Tenant”).
RECITALS
A. Town and Master Tenant entered into a Lease Agreement for Property Management Services for the management and leasing of 4 Tait Avenue dated October 29, 2020 (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.
Whereas, now the Town and Master Tenant mutually agree to amend the terms of the Agreement as follows:
FIRST AMENDMENT
1. The parties agree that the “Effective Date” referenced on Page 1 of the Master Lease ("Lease") shall be October 29th 2020.
2. Section 1.4 Lease Term. As provided in Section 3 below, the Term of the Lease commences on the Commencement Effective Date and terminates, unless earlier terminated 34 years and 11 months from the Commencement Effective Date as provided in Section 3.1 below.
3. Section 1.5 Lease Contingency. This Lease is contingent on the Master Tenant submitting the necessary applications and documents to the Town for approval of the improvements and use of the property, such as, but not limited to, general plan amendment, a proposed site plan, concept drawings for the site plan, massing diagrams, and renderings identifying the location, general configuration, and proposed design characteristics of the buildings, parking spaces, landscaping, property subdivision, and other aspects of the improvement and uses. The Master Tenant acknowledges that the Project Proposal requires approvals and entitlements from the Town and shall submit a formal application for the Planning Approvals. Costs and fees associated with the Planning Approvals review shall be borne by the Master tenant. Nothing in this Agreement shall be construed to compel the Town to approve or make any findings with respect to Planning Approvals. If Master Tenant is unable to obtain Planning Approvals, either Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other party. Upon the giving of such notice of termination, this Lease shall terminate without liability of either party to the other.
This Lease is also contingent on Master Tenant and a Subtenant having executed a binding initial Sublease for any portion of the Premises and occupancy by Subtenants (the “Contingency”). If the Contingency has not been satisfied or waived by Landlord on or before the date twelve (12) months following the Effective Date January 1, 2024, either
ATTACHMENT 3
Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other party.
4. Section 3.1 Term. The "Term" of this Lease shall commence as of the Effective Date ("Commencement Effective Date") and shall end, unless earlier terminated or extended pursuant to the terms and conditions of this Lease, on the date 34 years and 11 months after the Commencement Effective Date ("Termination Date").
5. Section 7.3 Continuous Operations. Master Tenant shall use its commercially reasonable efforts, subject to the provisions of Section 7.2 above, to continuously sublet the Premises to approved Subtenants for commercial purposes during the term of this lease. If, for any reason, a Subtenant quits its business operations on the Premises, Master Tenant shall use its commercially reasonable efforts, in accordance with the provisions of Section 7.2 above, to promptly secure another Subtenant reasonably acceptable to Master Tenant and Landlord.
If for any reason during the first three (3) years following the Commencement Date after January 1, 2024, the Premises in their entirety are left unleased for a continuous period of eighteen (18) months or more, then either the Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other, in which case, upon the giving of such notice of termination, each party shall be released of any future liability to the other, except as provided herein.
6. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Landlord and Master Tenant have executed this Amendment.
LANDLORD: MASTER TENANT:
THE TOWN OF LOS GATOS Tait Firehouse, LLC, a California Limited Liability Co.
By: Imwalle Asset Management, LLC
a California Limited Liability Co.
By: _________________________ By: _________________________ Laurel Prevetti, Town Manager Don Imwalle, Jr., Managing Member Approved as to Form: Attest:
________________________ _________________________
Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk
ATTACHMENT 4
FIRST AMENDMENT TO AGREEMENT
This FIRST AMENDMENT TO AGREEMENT is dated for identification this 7th day of February 2023 and amends that certain Lease Agreement for Property Management Services dated October 29, 2020, made by and between the Town of Los Gatos ("Landlord” or the “Town"), and Forbes Mill, LLC, a California Limited Liability Company (“Master Tenant”).
RECITALS
A. Town and Master Tenant entered into a Lease Agreement for Property Management Services for the management and leasing of the Forbes Mill Property, located at 75 Church Street, dated October 29, 2020 (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.
Whereas, now the Town and Master Tenant mutually agree to amend the terms of the Agreement as follows:
FIRST AMENDMENT
1. The parties agree that the “Effective Date” referenced on Page 1 of the Master Lease ("Lease") shall be October 29th 2020.
2. Section 1.4 Lease Term. As provided in Section 3 below, the Term of the Lease commences on the Commencement Effective Date and terminates, unless earlier terminated 34 years and 11 months from the Commencement Effective Date as provided in Section 3.1 below.
3. Section 1.5 Lease Contingency. This Lease is contingent on the Master Tenant submitting the necessary applications and documents to the Town for approval of the improvements and use of the property, such as, but not limited to, general plan amendment, a proposed site plan, concept drawings for the site plan, massing diagrams, and renderings identifying the location, general configuration, and proposed design characteristics of the buildings, parking spaces, landscaping, property subdivision, and other aspects of the improvement and uses. The Master Tenant acknowledges that the Project Proposal requires approvals and entitlements from the Town and shall submit a formal application for the Planning Approvals. Costs and fees associated with the Planning Approvals review shall be borne by the Master tenant. Nothing in this Agreement shall be construed to compel the Town to approve or make any findings with respect to Planning Approvals. If Master Tenant is unable to obtain Planning Approvals, either Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other party. Upon the giving of such notice of termination, this Lease shall terminate without liability of either party to the other.
This Lease is also contingent on Master Tenant and a Subtenant having executed a binding initial Sublease for any portion of the Premises and occupancy by Subtenants (the “Contingency”). If the Contingency has not been satisfied or waived by Landlord on or before the date twelve (12) months following the Effective Date January 1, 2024, either
ATTACHMENT 4
Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other party.
4. Section 3.1 Term. The "Term" of this Lease shall commence as of the Effective Date ("Commencement Effective Date") and shall end, unless earlier terminated or extended pursuant to the terms and conditions of this Lease, on the date 34 years and 11 months after the Commencement Effective Date ("Termination Date").
5. Section 7.3 Continuous Operations. Master Tenant shall use its commercially reasonable efforts, subject to the provisions of Section 7.2 above, to continuously sublet the Premises to approved Subtenants for commercial purposes during the term of this lease. If, for any reason, a Subtenant quits its business operations on the Premises, Master Tenant shall use its commercially reasonable efforts, in accordance with the provisions of Section 7.2 above, to promptly secure another Subtenant reasonably acceptable to Master Tenant and Landlord.
If for any reason during the first three (3) years following the Commencement Date after January 1, 2024, the Premises in their entirety are left unleased for a continuous period of eighteen (18) months or more, then either the Landlord or Master Tenant may terminate this Lease by giving written notice of termination to the other, in which case, upon the giving of such notice of termination, each party shall be released of any future liability to the other, except as provided herein.
6. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Landlord and Master Tenant have executed this Amendment.
LANDLORD: MASTER TENANT:
THE TOWN OF LOS GATOS Tait Firehouse, LLC, a California Limited Liability Co.
By: Imwalle Asset Management, LLC
a California Limited Liability Co.
By: _________________________ By: _________________________ Laurel Prevetti, Town Manager Don Imwalle, Jr., Managing Member Approved as to Form: Attest:
________________________ _________________________
Gabrielle Whelan, Town Attorney Wendy Wood, Town Clerk
PREPARED BY: Monica Renn
Economic Vitality Manager
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: 02/07/2023
ITEM NO: 12
DATE: January 25, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Agreement with Sustainable Waze to Continue the Coordination of Music in the Park (MIP) Summer Concert Series for 2023, with Options for Annual Extensions for Two Additional Years.
RECOMMENDATION:
Authorize the Town Manager to execute an agreement with Sustainable Waze to continue the coordination of the Town’s Music in the Park (MIP) summer concert series for 2023, with options for annual extensions for two additional years.
BACKGROUND:
On January 31, 2020, the Town issued a request for proposals (RFP) for a third-party vendor to coordinate and execute the 2020 Music in the Park (MIP) season. On March 3, 2020, the Town Council considered the results of the RFP, and approved staff’s recommendation to work with the organizer group of Mark Secchia (no longer affiliated), Neal Turley, and Perry Thorwaldson for the 2020 series. This team operated under the vendor name, Sustainable Waze (Organizer).
As a part of the approval, the Town Council also approved the Organizer’s request for $20,000 in sponsorship dollars, along with several in-kind staff services and subsidized permit fees to support the concert series.
Due to the COVID-19 Pandemic and the community health and safety provisions in place at the time, both the 2020 and 2021 MIP Concert Series were postponed. In the FY 2022/23 budget, the Town Council again allocated the $20,000 sponsorship, and in-kind services and permit fees to support MIP, thus the series returned in the summer of 2022 with Sustainable Waze working as the event Organizer.
PAGE 2 OF 3
SUBJECT: Music in the Park 2023
DATE: January 25, 2023
BACKGROUND (continued):
Per the agreement with the Organizer, the $20,000 Title Sponsorship secures the naming rights of the concert series as “Los Gatos Music in the Park.” DISCUSSION:
With the lead time necessary to produce the MIP concert series and the Organizers’ success with the 2022 series, staff reached out to the Organizers to understand if there is interest in continuing to coordinate MIP for the summer of 2023 with the same in-kind services and financial sponsorship structure that was in place for 2022. Given the successful history with the Organizer for MIP, it is recommended that the Town moves forward with an agreement with Sustainable Waze, as the Town’s Single Source vendor.
The Organizers confirmed their interest in continuing to plan and produce the MIP concert series for 2023, thus, staff is seeking to reconfirm the Town Council’s interest and approval of the previously adopted and budgeted sponsorship and other in-kind and monetary considerations are outlined in the chart below.
It should be noted that the Naming Rights, Title Sponsorship monetary amount of $20,000 is a not to exceed amount. Event organizers have noted that if they are able to re-secure a specific donor at the level of $10,000, then the Town’s Title Sponsorship contribution would be reduced to $10,000 for 2023.
Title Sponsorship Paid to Organizers
Naming Rights, Title Sponsor: Los Gatos Music in the Park NTE $20,000 In-kind Services and Additional Town Contributions Provided at No Cost to Organizer Special Event Permit Application Fee (For-Profit) $680
Parks Hourly Fee $4,400
Use of Council Lobby as staging area and green room $1,600 Use of Town Stage including staff time for setup and removal $2,200 Staff time to hang MIP banners at Civic Center $472
Temporary Sign Fee $99.00
No Parking Signs Fee $135
2 LGMS Police Officers at each concert $10,240
PAGE 3 OF 3
SUBJECT: Music in the Park 2023
DATE: January 25, 2023
ALTERNATIVES:
Alternatively, the Town Council may wish to provide other direction or pursue other alternatives for MIP 2023. Staff is not recommending any changes to the terms as these were carefully considered to create a balanced package agreeable to both the Town and the Organizers.
Another option is to forgo a 2023 MIP concert series and reconsider the future of the MIP at a later date. Staff is not recommending this option either given the success of the 2022 MIP concert series with the current Organizer, and the community interest in the continuation of the annual MIP summer concert series.
CONCLUSION:
It is recommended that the Town Council move forward with authorizing the Town Manager to execute an agreement with Sustainable Waze for the planning, coordination, and implementation of the 2023 MIP concert series.
In addition, the Town Council may wish to consider allowing for the agreement with the Organizers to have the option to be renewed at the same terms agreed upon for 2023, for two additional years with the same Organizer, including the MIP summer concert series for 2024 and 2025 without additional Town Council consideration in these years.
COORDINATION:
This staff report has been coordinated with the Town Managers Office, Town Attorney, and Finance Department.
FISCAL IMPACT:
The $20,000 sponsorship has been budgeted each year as a part of the Town’s Special Events Budget and would be remain status quo for FY 2022/23. The continuation of the in-kind services and permit fees will continue to be absorbed within the work of each Department.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENT:
1. Draft Single Source Agreement with Sustainable Waze
AGREEMENT BY AND BETWEEN THE TOWN OF LOSGATOS AND SUSTAINABLE WAZE FOR
SPONSORSHIPOF THE LOS GATOS MUSIC INTHE PARK SUMMER CONCERT SERIES THIS AGREEMENT is made and entered into on February xx, 2023 by and between TOWN OF LOS GATOS, a California municipal corporation, ("Town") and SUSTAINABLE WAZE, whose address is 104 A Edelen Avenue, Los Gatos, California. This Agreement is made with reference to the following facts.
I. RECITALS
WHEREAS, on March 3, 2020, the Town Council selected Sustainable Waze to produce, manage, and promote the Music in the Park Summer Music Concert Series; and WHEREAS, on February 7, 2022, the Town Council reconfirmed their selection of Sustainable Waze to produce, manage, and promote the Music in the Park Summer Music Concert Series; and
WHEREAS, Town has agreed to purchase the naming rights sponsorship for Music in the Park for the amount not to exceed $20,000 to remain: "Los Gatos Music in the Park" with no additional sponsor name in the title; and,
WHEREAS, Town appropriated funds in its Fiscal Year 2023/24 Budget for allocation of funds; and
WHEREAS, the Town has agreed to provide additional sponsorship in the form of inkind services and the relief of Town fees to support for the following items, as resources and scheduling is available: installation, usage and removal of the Town owned stage, installation and removal of Music in the Park banner at the Civic Center, special event permit, banner permit, park use, chamber lobby use, and no parking sign fees, and two Los Gatos-Monte Sereno Police Officers at each concert as resources are deemed necessary and available, as directed by the Chief of Police or his or her designee.
1.1 Sustainable Waze represents and affirms that it is willing to comply with the terms pursuant to this Agreement.
II. AGREEMENTS
2.1 Term of Agreement. The term shall commence upon the execution of this Agreement and shall terminate on September 30, 2023; with two options to renew annually, if mutually agreed upon between the Town and Sustainable Waze for 2024 and 2025.
2.2. Scope of Agreement. This agreement pertains to the $20,000 sponsorship dollars from the Town to Sustainable Ways, and the in-kind services and relief of specific
Town fees associated with Music in the Park as outlined I. Recitals, approved by Town Council at the February 7, 2023 Town Council Meeting.
2.3 Special Event Permit. As part of the terms of the original Request for Proposal (RFP} presented by the Town to Sustainable Waze, Sustainable Waze is required to apply for, and follow the special event permit application process. As such, all conditions, including the scope of work, use of premises, timelines, requirements, and Town commitments will be included in the special event permit conditional letter of approval.
2.4 Terms of Sponsorship.
2.4.a.The Town shall remain the sole naming rightssponsor for Music in the Park to remain "Los Gatos Music in the Park" with no additional sponsor name in the title.
2.4.b.The Town will be recognized as a Premier Sponsor in all print, web, and social media marketing, including large logo on main sign located behind main stage.
2.4.c.The Town shall have a sponsor tent at all concerts in premier location on the Civic Center Lawn.
2.4.d.Large feather banners, exclusively with the Town logo prominently displayed at each concert.
2.5 Compensation. Compensation for naming rightssponsorship shall not exceed $20,000. Sustainable Waze has estimated that the sponsorship may be reduced, but not less than $10,000, if a sponsorship of $10,000 is secured from a local hospital.
An initial payment of $10,000 shall be made prior to the first concert. A second payment of up to $10,000 shall be made at the conclusion of the concert series, upon documentation being provided by Sustainable Waze, to the Town, indicating the sponsorship level of said local hospital.
2.6 Billing. Sustainable Waze must provide the Town with a detailed invoice in order for payment to be made. All invoices and statements to the Town shall be addressed as follows:
Email to: [email protected]
Or, Mail to: Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.7 Use of Funds. Sustainable Waze shall not use any moniesreceived underthis agreement for anything other than items related to the direct marketing or production of the Music in the Park summer concert series.
III. GENERAL TERMS
3.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.
3.2 Governing Law. This Agreement, regardless of where executed,shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara.
3.3 Entire Agreement. This Agreement constitutes the complete and exclusive statement of the Agreement between the Town and Sustainable Waze. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.
IN WITNESS WHEREOF, the Town and Sustainable Waze have executed this Agreement.
Town of Los Gatos by: Service Provider, by:
Laurel Prevetti, Town Manager
Title
Approved as to Form:
Gabrielle Whelan, Town Attorney
Attest:
Wendy Wood, CMC, Town Clerk
PREPARED BY: Bridgette Falconio
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2022
ITEM NO: 13
DATE: February 2, 2022
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Introduce a Proposed Ordinance Amending Chapter 24 (Subdivision Regulations) and Chapter 29 (Zoning Regulations) of the Town Code Regarding Town-Initiated Parcel Mergers
RECOMMENDATION:
Introduce a proposed Ordinance amending Chapter 24 (Subdivision Regulations) and Chapter 29 (Zoning Regulations) of the Town Code regarding Town-initiated parcel mergers.
BACKGROUND:
Town Code Section 29.10.070 currently addresses lot mergers for lots that do not conform with the Town’s requirements. Subsection (b) currently provides that “any parcels under the same or substantially the same ownership that do not meet the [Town’s] criteria . . . shall be considered merged.”
The State Subdivision Map Act (Map Act) governs in the area of subdivisions and preempts local ordinances with regard to lot mergers. The applicable Map Act provisions are codified in Government Code Sections 66451.10 and following. The Map Act requires the following steps before a lot merger can take effect:
1) The owner of the affected parcels must be notified of the lot merger proposal; 2) The Town must file with the County Recorder a notice of merger; and 3) Prior to recording the notice of merger, the Town must mail the record owner a notice of intention and give the owner an opportunity to request a hearing.
PAGE 2 OF 4
SUBJECT: Town Code Amendment Regarding Town-Initiated Parcel Mergers/A-22-003 DATE: February 2, 2023
DISCUSSION:
This item relates to the merger of existing lots that do not conform with the Town’s standards.
Currently, the Town Code states that nonconforming lots are merged automatically. This provision conflicts with, and is preempted by, State law. Therefore, staff is proposing an ordinance to bring the Town Code into conformance with State law regarding lot merger.
The proposed amendments were reviewed by the Planning Commission on December 12, 2022, and referred to Council by unanimous vote (Attachments 2 and 3). Staff has prepared the following revised language to be included in the ordinance with new language shown underlined and deleted language shown strike-through:
Section 24.10.080. Town-Initiated Parcel Merger.
(a) The Town may initiate a merger of a parcel with a contiguous parcel held by the same owner if any one of the contiguous parcels held by the same owner does not conform to standards for minimum parcel size, under the zoning ordinance applicable to the parcel and if, in accordance with Government Code Section 66451.11, all of the following requirements are satisfied:
(1) At least one of the affected parcels is undeveloped by any structure for which a building permit was issued or for which a building permit was not required at the time of construction, or is developed only with an accessory structure or accessory structures, or is developed with a single structure, other than an accessory structure, that is also partially sited on a contiguous parcel. (2) With respect to any affected parcel, one or more of the following conditions exists:
a. Comprises less than 5,000 square feet in area at the time of the determination of merger;
b. Was not created in compliance with applicable laws and ordinances in effect at the time of its creation;
c. Does not meet current standards for sewage disposal and domestic water supply;
d. Does not meet slope stability standards;
e. Has no legal access which is adequate for vehicular and safety equipment access and maneuverability;
f. Its development would create health or safety hazards; or g. Is inconsistent with the applicable general plan and any applicable specific plan, other than minimum lot size or density standards. (b) Before initiating a parcel merger, the Town will notify the owner of the affected parcels and provide the owner with the opportunity for a public hearing. The public hearing will be conducted by the Planning Commission. The decision of the Planning Commission may be appealed to the Town Council within ten days of the decision of the Planning Commission. The decision of the Town Council shall be final.
PAGE 3 OF 4
SUBJECT: Town Code Amendment Regarding Town-Initiated Parcel Mergers/A-22-003 DATE: February 2, 2023
DISCUSSION (continued):
Sec. 29.10.070. Lot merger.
(a) A parcel of land does lawfully exist separately from other land and is a lot when the parcel meets each of the following criteria:
(1) Comprises at least five thousand (5,000) square feet in area. (2) Was created in compliance with applicable laws and ordinances in effect at the time of its creation.
(3) Meets current standards for sewage disposal and domestic water supply. (4) Meets slope stability standards.
(5) Has legal access which is adequate for vehicular and safety equipment access and maneuverability.
(6) Development of the parcel would create no health or safety hazards. (7) The parcel would be consistent with the applicable general plan and any applicable specific plan, other than minimum lot size or density standards. (8) No structures are built over a common property line which is shared with another parcel under the same or substantially the same ownership. (b) Any parcels under the same or substantially the same ownership that do not meet the criteria listed above shall be considered merged. In addition, no parcel shall be modified through a lot line adjustment procedure in order to meet the criteria listed above.
CONCLUSION:
A. Summary
The attached amendments to Town Code Chapters 24 and 29 are recommended to bring Town Code into conformance with State law regarding lot mergers.
B. Recommendation
For the reasons mentioned in this report, staff recommends that the Town Council introduce the proposed Ordinance. The Council should also include any comments or recommended changes to the proposed Ordinance. Once introduced, the Ordinance will return to the Town Council for adoption on February 21, 2023.
COORDINATION:
The Town Attorney’s Office, Town Manager’s Office, and the Community Development Department coordinated this report.
FISCAL IMPACT:
The proposed Ordinance will not affect the Town’s Budget.