HomeMy WebLinkAboutSPECIAL MEETING - HCDAr7 w
DATE: September 15, 1981
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: WILLIAM HUSTON, CITY MANAGER
PECIAL COUNCIL MEETING
9-16-81
Inter-Com
It is recommended that the City Council authorize the Mayor to sign a
Cooperation Agreement between the City and the County of Orange which
provides for the City's participation in the Housing and Community
Development Block Grant Program.
It is also recommended that the City Council direct Staff to file an
application for funding of the "B" Street improvements project and Housing
Rehabilitation Program.
0-1ON 471 IT
The City Council has conducted two public hearings with regard to whether
the City should participate in the HCDA Program and, if it-did, the types
of programs that should be proposed for funding. Following the hearings,
the City Council decided not to participate in a program based upon its
concern that there was no assurance that Tustin would receive funds and
that the cost of administering the program would outweigh its benefits.
Subsequent to the public hearings, residents in the vicinity of "B" Street
requested that the City Council reconsider its decision. City Council
directed Staff to meet with the County for the purpose of determing what,
if any, assurances the County would grant concerning the availability and
allocation of HCDA funds to the City of Tustin.
DISCUSSION:
Attached are a letter from the County Housing and Community Development
Program Manager and the Cooperation Agreement which would provide for the
City's participation in the program. The letter is in response to the City
Council concern about an assurance that any funds earmarked for the City
will, in fact, be available and spent in the City of Tustin. You will note
that the County Program Manager makes the statement that "there is an
excellent chance that the Board of Supervisors would approve a request for
a reasonable amount of funds to be used for home rehabilitation due to the
fact that such a project is a high priority item."
The letter also indicates that other types of projects are eligible for
HCDA funding. In essence, the County is saying that if the City decides to
Q
enter the program it must then file an application for specific projects
and assuming the projects fall within the County and Federal guidelines,
funds will be available.
With regard to the home rehabilitation program, Staff has previously
recommended that if the City Council decides to establish such a program
that the City contract with the County which should be responsible for the
administration of a Home Rehabilitation Program. Any administrative cost
charged by the County to administer a Home Rehabilitation Program would be
allocated from the City's HCDA entitlement. In other words, there would be
no direct City costs except for whatever staff time would be required to
complete paperwork and monitor the County's performance.
It has been my experience that the benefit of an HCDA Housing
Rehabilitation Program outweighs the cost of administering the program;
this assumes that the County has the Staff to administer the program. It
is my understanding that based upon the City's prior involvement in the
HCDA Program and that of other Orange County cities, the program should be
successful.
Although the County has not made a commitment concerning the amount of
available HCDA funds, Staff has estimated that the City could be entitled
to approximately $150,000 for each of fiscal years 82/83, 83/84 and 84/85
(a total of $450,000). If the City Council approves the Cooperation
Agreement,the next step would be to file an application for funding. Staff
recommends that the City Council authorize applications for "B" Street
improvements project (estimated cost of $315,000) and that the balance
($135,000) be allocated for a Housing Rehabilitation Program.
Following the County's consideration of the City's application, the matter
would be referred back to the City Council for a final determination as to
whether the City should actually proceed with any approved projects. The
City Council is not committing itself at this point to actually carry out
an HCDA funded project. If following applying for the funds, it appears
there are any County or Federal requirements which mitigate the
effectiveness of the project, the City Council would have the right to
terminate the City's participation in the Program.
WILLIA14 WSTCN,
City Manager
WH:dmt
attachments
MURRAY STORM
UM-rY C:)F= DIRECTOR
DHONGCHAI PUSAVAT
2 1 PROGRAM MANAGER
5 3 RANG PE MAILING ADDRESS:
P.O. BOX 4048
SANTA ANA, CA 92702
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT
PROGRAM OFFICE
1200 N. MAIN STREET
SANTA ANA, CALIFORNIA FILE
(714!834 -5200
September 11, 1981
Mr. James Sharp, Mayor
and City Council
City of Tustin
300 Centennial Way
Tustin, California 92680
Honorable Mayor and City Council:
This letter is to clarify concerns about the Orange County H/CD program expressed
by the Tustin City Council in a recent meeting and also to give a reasonable
assurance that any funds earmarked for use in the City of Tustin will be spent
in the City of Tustin only.
Funds approved for use in Tustin for specific projects by the Board of Supervisors
will not be charged for administrative costs by the County. The exception to
this would be a request on the part of the City for the County to administer a
specific program, such as rehabilitation, within the City. These administrative
costs will be fixed by contract between the County and City. There is an excellent
chance that the Board of Supervisors would approve a request for a reasonable
amount of funds to be used for home rehabilitation, due to the fact that such
a project is a high priority item.
Should you choose to apply for such a project, and should it be approved, two
avenues are open to you. They are outlined below:
A. The City of Tustin could choose to contract with the County for the
administration of a rehabilitation program. This contract must be approved
by the Tustin City Council prior to implementation. Any administrative
charges/costs would be detailed in this contract. In any event, these
charges cannot exceed 20%. It should be noted that these costs have
historically run less than 201.
B. The City of Tustin could choose to administer its own housing rehabilitation
program. Reasonable salary costs can be paid under Block Grant regulations.
The City of Tustin is not limited to requesting funds for only one project. Funds
may be requested for any of the activities listed below:
City of Tustin
Page 2
1. Acquisition of Real Property
2. Public Works, Facilities, Site Improvements
3. Code Enforcement
4. Clearance, Demolition, Rehabilitation
5. Rehabilitation Loans and Grants
6. Special Projects for Elderly and Handicapped
7. Payments for Loss of Rental Income
8. Disposition of Real Property
9. Provision of Public Services
10. Payment of Non-Federal Shares
11. Completion of Urban Renewal Projects
12. Relocation payments and Assistance
13. Planning and Management Development
14. Administrative
15. Continuation of Model Cities Activities
The City Council of Tustin is the only entity which may submit proposed projects
for consideration by the Board of Supervisors. However, be assured that the
County will not require the City to undertake any project(s) that the City has
not contracted for.
For your information, our records indicate that the City of Tustin has already
held the two required Public Hearings, therefore, it is not necessary to hold
an additional Public Hearing to meet HUD regulations.
If I can be of any further assistance please don't hesitate to contact me at
834-2075.
Sincerely,
B-65b Putdlat, Program Manager
Housing and Community Development
SF:dlc807(47)
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JA1
COOPERATION AGREEMENT
THIS AGREEMENT is entered into this day of
is t
CITY OF TUSTIN a municipal
corporation, hereinafter referred to as CITY,
COUNTY OF ORANGE, a political subdivision of
the State of California and recognized Urban
County under the Federal Housing and Community
Development Act of 1974 & 1977, hereinafter
referred to as COUNTY.
WHEREAS, Title I of the Housing and Community Development Acts of 1974 and
1977, hereinafter referred to as ACT, makes available to cities under 50,000 popula-
tion and the unincorporated area of the County of Orange certain sums to be used for
a broad range of Housing and Community Development activities, and
WHEREAS, said ACT authorizes such cities-and said COUNTY to enter into
cooperation agreements in order to cooperate in undertaking or assisting in under-
taking, essential community development and housing assistance activities, specifi-
cally urban renewal and publicly assisted housing;
NOW, THEREFORE, the parties agree as follows:
1. This Agreement shall constitute a cooperation agreement between the
parties within the meaning of Section 102(a)(b) of the ACT. The parties agree to
cooperate in the undertaking, or assisting in undertaking, community development
and lower income housing activities, specifically urban renewal and publicly
assisted housing.
2. COUNTY shall be responsible for the preparation, adoption and submission
of an Urban County Application to the Department of Housing and Urban Development,
hereinafter referred to as "HUD." In the preparation of said application, COUNTY
shall give due consideration to CITY's analysis of community development needs and
proposed activities.
1 3. CITY shall comply with the COUNTY's community development program and
2 the Housing Assistance Plan, and all laws, regulations and policies applicable to
3 said grant.
4 4. Both COU14TY and CITY agree to take all required activities to comply
5 with the provisions of Title VI of the Civil Rights Act of 1964, Title VIII of
6 the Civil Rights Act of 1968, Section 109 of the Housing and Urban Development
7 Act of 1968 and other civil rights laws.
8 5. In the event COUNTY's Urban County application is approved by HUD,
9 COUNTY shall contract with the CITY to utilize any such grant funds received
10 from HUD which are attributable to activities conducted by CITY, unless another
11 form of distribution is required by HUD.
12 6. This agreement shall be for the three year program period covering
13 the 8th, 9th, and 10th year Housing and Community Development Block Grant applications.
14 In no event shall this agreement be terminated before this three year period.
15 7. The activities to be undertaken during the term of this Agreement will
16 be chosen by CITY ^from the following listing:
i
17 a. Acquisition of Real Property
b. Public Works, Facilities, Site Improvements
18 c. Code Enforcement
d. Clearance, Demolition, Rehabilitation
19 e. Rehabilitation Loans and Grants
f. Special Projects for Elderly and Handicapped
20 g. Payments for Loss of Rental Income
h. Disposition of Real Property
21 i. Provision of Public Services
j. Payment of Non— Federal Shares
22 k. Completion of Urban Renewal Projects
1. Relocation Payments and Assistance
23 M. Planning and Management Development
n. Administrative
24 0. Continuation of Model Cities Activities
25
8. a. CITY shall indemnify, hold harmless and defend COUNTY, its officers,
26 agents and employees against all liability, claims, losses, demands and actions for
27 injury to or death of j
persons or damage to property arising out of or alleged to arise
28 out or in consequence of this Agreement, provided such liability, claims, demands, j
-2-
1 losses or actions are claimed to be due to the acts or omissions of CITY, its offi-
2 cers, agents or employees in the performance of this Agreement, including any
3 activities conducted by CITY under its application.
4 b. In addition, CITY shall indemnify and hold harmless COUNTY against
5 any liability, claims, losses, demands, and actions incurred by COUNTY as a result of
6 a determination by HUD that activities undertaken under CITY's application failed to
7 comply with any laws, regulations, or policies applicable thereto or that any funds
8 forwarded to CITY under this Agreement were improperly expended.
9 c. The provisions of paragraphs 1, 3, 4, S, 6 and 7 of Section 2775
10, of the California Civil Code, as said section exists on the effective date of this
11 Agreement, shall be applicable to the above indemnification provisions. Transmittal
12 to CITY of any pleadings served upon COUNTY shall be deemed to be a request to
13 defend.
14 9. COUNTY shall have the right to audit CITY's records to determine com-
15 pliance with this Agreement.
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22 111
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25 Ill
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28 Ill
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A
IN WITNESS THEREOF, CITY has caused this agreement to be executed by its
Mayor and attested by its Clerk and COUNTY has caused this contract to be executed
by the Chairman of the Board of Supervisors and attested by its Clerk, all having
been duly authorized by the City Council of CITY and the Orange County Board of
Supervisors.
CITY OF
Dated: By
ATTEST:
City Clerk
Approved to form:
City Attorney for the City of
By
Dated:
ATTEST:
JUNE ALEXANDER
Clerk of the Board of Supervisors
of Orange County, California
APPROVED AS TO FORM:
ADRIAN KUYPER, County Counsel
ORA14GE COUNTY, CALIFORNIA
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By
H/ CD
AP:dlcll62(3) -4-
Mayor
COUNTY OF ORANGE, a political subdivision
of the State of California
BY
Chairman of the Board of Supervisors
PETITION
YtiY
We the residents of Tustin on "B", "C", and Mitchell Streets request our repre-
sentatives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows:
1. Public improvements in the above—mentioned area.
2. Home rehabilitation loans to maintain and enhance the character of our area.
Name
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Phone Number
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PETITION to
We the residents of Tustin on "B", "C", and Mitchell Streets request our repre-
sentntives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows:
1. Public improvements in the above—mentioned oren,
2. Home rehabilitation loans to maintain and enhance the character of our area.
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PETITION
We the residents of Tustin on "B", "C", and Mitchell Streets request our repre-
sentatives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows:
I. Public improvements in the above—mentioned area.
2. Home rehabilitation loans to maintain and enhance the character of our area.
Name
Address
Phone Number
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We the residents of Tustin on "B", "C", and 'Mitchell Streets request our repre-
sentatives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows: X A__
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1. Public improvements in the above—mentioned area.
2. home rehabilitation loans to maintain and enhance the character of our area.
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Our main priorities were and still are as follows: e� ,j
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PETITION
We the residents of Tustin on "B", "C", and Mitchell Streets request our repre-
sentatives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows:
I. Public improvements in the above-mentioned area.
2. Home rehabilitation loans to maintain and enhance the character of our area.
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PETITION
We the residents of Tustin on "B", "C", and Mitchell Streets request our repre-
sentatives to the Tustin City Council to continue the plans that we were entitled
to under the County of Orange H/CD program.
Our main priorities were and still are as follows:
1. Public improvements in the above—mentioned area.
2. Home rehabilitation loans to maintain and enhance the character of our area.
Name
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We the residents of Tustin on
sentallives to the Tustin City
to under the County of Orange
Our main priorities were and
PETITION
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2. Home rehabilitation loans to maintain and enhance the character of our area.
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2. Home rehabilitation loans to maintain and enhance the character of our area.
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to under Lhe County of Orange H/CD program.
Our t"!s -`' priorities we;'s, and i..._.. .. are as follows;
1. Public improvements in the above—mentioned nron.
r -P [.C?L:+. rehabilitation . loans to maintain and e<,::,a _ "€` the character of our area.
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