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HomeMy WebLinkAboutCC 5 CD BLOCK GRANT 08-06-90AUGUST 61 1990 WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT CONSENT CALENDAR NO. 5 8-6-90 Inter - Com THREE YEAR PARTICIPATION AGREEMENT WITH COUNTY OF ORANGE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM RECOMMENDATION It is recommended that the City Council adopt Resolution No. 90-94 approving the City's continued participation in the Housing and Community Development Block Grant Program with the County of Orange. BACKGROUND The Federal Department of Housing and Urban Development (HUD) requalifies urban counties for eligibility for Community Development Block Grant (CDBG) funding for a three year time frame. Orange County has been requalified as an Urban County by (HUD) and may now enter into cooperation agreements with participating cities for the next three years of the CDBG funding Program (federal fiscal years 1991, 1992 and 1993). Since cooperation agreements for the aforementioned period will expire on December 31, 1990 all cities again must adopt general participation agreements with the County for upcoming Fiscal Years 1991, 1992 and 1993 in order to continue with the Urban County CDBG Program. In order for a local jurisdiction to apply directly to HUD for funding, that City must have entitlement authority. Staff researched the requirements for becoming an entitlement city which include the following: 1. Population of 50,000 2. A Housing Assistance Plan in place 3. A designated staff person to administer the program Aurora Madrigal, who is the Housing and Urban Development representative for Orange County, indicated population figures that are currently being used for federal fiscal year 1991 are the 1988 census estimates from the U.S. government. No other information is acceptable. Staff spoke with Margie Segal of Data Systems in Washington D.C. to verify Tustin's population of record which they show as 43,410. It is anticipated at this time that the federal fiscal year 1992 allocations will be based on the 1990 Census counts. Perhaps at that time, the City of Tustin's population will exceed 50,000. City Council Report Block Grant Program August 6, 1990 Page 2 Aurora explained that the allocation of funds for entitlement cities is first based on population size and then on need. Staff was informed that a City of 100,000 which recently became an entitlement city was awarded only $200,000. The City of Tustin typically receives contract awards of over $100,000 and does not have the administrative paperwork or personnel costs associated with the management of the entitlement program. It is anticipated that by 1993 the City's population will have exceeded 50,000 and the City will be in a better position to benefit from entitlement status. The attached Cooperative Agreement for Tustin's participation in the Urban County CDBG program has been reviewed and approved by the City Attorney. CONCLUSION It is necessary for the City by Resolution of the City Council to enter into a cooperation agreement with the County of Orange to participate in the Community Development Block Grant Program for fiscal years 1991, 1992 and 1993. Beth Schoemann Christine A. Shinglq#n Associate Planner Director of Communi y Development BS:CAS:kbc Attachments: Resolution No. 90-94 Cooperation Agreement Community Development Department 11 1! RESOLUTION NO. 90-94 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING THE CITY'S PARTICIPATION IN THE HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WITH THE COUNTY OF ORANGE DURING FISCAL YEARS 1991, 1992 AND 1993. WHEREAS, it is the intent of the City of Tustin to participate in the filing of an application with the County of Orange for a grant authorized under the Housing and Community Development Act of 1984, as amended; and WHEREAS, the Housing and Community Development Act of 1974, as amended, authorizes cities under 50,000 population to enter into cooperation agreements with the COUNTY in which they are located for the purpose of undertaking essential housing and community development activities; and WHEREAS, the federal government requires participating cities to assure that the funds will be secured and utilized pursuant to applicable federal, state and local laws and regulations relative to the Community Block Grant Program; and WHEREAS, it is necessary that the CITY adhere to the Housing Assistance Plan as approved by the U.S. Department of Housing and Urban Development for the Urban County Community Development Block Grant Program; NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the Cooperation Agreement attached hereto and incorporated herein by reference. PASSED AND ADOPTED by City Council of the City of Tustin �,jl on this 6th day of August, 1990. RICHARD EDGAR Mayor MARY WYNN City Clerk 1' 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COOPERATION AGREEMENT THIS AGREEMENT is entered into this 19 BY AND BETWEEN and day of 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 (Public Law 93-383), as amended, hereinafter referred to as COUNTY. WHEREAS, Title I of the Housing and Community Development Act of 1974 (Public Law 93-383),, as amended, hereinafter referred to as ACT, makes available to the COUNTY as an Urban County and cities under 50,000 population grants through the Community Development Block Grant Program (hereinafter referred to as "CDBG") to be used for eligible Housing and Community Development activities, and WHEREAS, the ACT requires such cities and the COUNTY to enter into cooperation agreements in order for the cities to be included as part of the Urban County CDBG Program, and WHEREAS the COUNTY and CITY desire to cooperate to undertake or assist in undertaking, community renewal and lower income housing assistance activities, specifically 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 renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing. 2. COUNTY shall have the authority to carry out activities which will be funded from annual Community Development Block Grants for Fiscal Years 1991, 1992 and 1993 appropriations and from any program income generated from the expenditure of such funds. -1- 1 3. COUNTY shall have final responsibility for selecting activities and annually 2 filing the grant application (i .e. , 'Final Statement of Community Development Objectives 3 and Projected Use of Funds) with the Federal Department of Housing and Urban 4 Development, hereinafter referred to as "HUD." In the preparation of said application, 5 COUNTY shall give due consideration to CITY's analysis of community development needs 6 and proposed activities. 7 4. Since HUD shall not accept an agreement including a provision for veto or 8 other restriction which would allow any party to obstruct implementation of the Housing 9 Assistance Plan, both COUNTY and CITY shall attempt to fulfill housing goals established 10 by the HUD approved Housing Assistance Plan for the period of this Agreement as 11 referenced in Section 7 and for additional time as may be required for the expenditure i 12 of funds granted to the COUNTY. 13 5. Both COUNTY and CITY agree to take all actions necessary to assure compliance 14 with the Urban County's certification required by Section 104(b) of Title I of the i i 15 Housing Community Development Act of 1974, as amended, including Title VI of the Civil i i 16 Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Section 109 of Title I 17 of the Housing and Community Development Act of 1974, as amended, and other applicable 18 civil rights laws. It is recognized among the parties that noncompliance thereto by the 19 CITY may also constitute noncompliance by the Urban County CDBG Program which may 20 provide cause for funding sanctions or other remedial actions by HUD. 21 6. In the event COUNTY's Urban County application is approved by HUD, COUNTY 22 shall contract with the CITY to utilize any such grant funds received from HUD which are 23 attributable to activities administered by CITY, unless another form of allocation is 24 required by HUD. i 25 7. This Agreement shall be for the three year program period covering the 17th, ?6 18th and 19th years (Fiscal Years 1991, 1992 and 1993, respectively) Housing and 27 Community Development Block Grant applications. In no event shall this Agreement be 28 terminated by either party before the expiration of this three year period beginning -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 181 19 20 21 22 23 24 25 26 27 28 July 1, 1991 and ending June 30, 1993, except through special federal enabling legislation for termination or withdrawal from the Urban County and as permitted by HUD. S. The eligible activities to be undertaken during the term of this Agreement will be chosen by CITY from those authorized by HUD Rules and Regulations governing the CDBG Program. 9. Both COUNTY and CITY agree to comply with the requirements of the Urban County Community Development Block Grant Program, including laws, and policies applicable to said Program. 10.a. CITY must inform the COUNTY (through periodic reports requested by staff of COUNTY) of any income generated by the expenditure of CDBG funds received by the CITY; and that per applicable federal requirements, such program income must be paid to the (COUNTY; and/or, the CITY may retain such program income only if that program income is used exclusively for eligible activities, as determined and agreed upon by the COUNTY and CITY, and in accordance with all CDBG requirements as may then apply; and, b. CITY shall keep and maintain appropriate records on the use of any such program income as may be required by staff of the COUNTY since the COUNTY has the responsibility of monitoring and reporting program income to HUD. c. In the event of close-out or change in status of the participating CITY, any program income at that time or received subsequent to the close-out or change in status shall be paid by CITY to the COUNTY within ninety days (90 days) thereafter. ll.a. Any real property acquired or improved in whole or in part by the CITY using CDBG funds that may be subject to any proposed modification or change in use from that planned at the time of acquisition or improvement, including disposition, must be reported by CITY to the COUNTY and receive COUNTY concurrence thereto in advance of implementing the modification or change in use. b. Should the disposition, sale or transfer of such real property acquired or improved in whole or in part using CDBG funds result in a use which does not qualify under CDBG regulations, the COUN'T'Y shall be reimbursed by CITY in an amount equal to the -3- KMW 1 current fair market value (less any portion thereof attributable to expenditures of non - 2 CDBG funds) . 3 c. Any program income generated from the disposition, transfer or sale of such 4 property prior to or subsequent to the close-out, change of status or termination of the 5 cooperation agreement between the COUNTY and CITY may be either used by CITY for other 6 specific eligible activities in the CITY or paid to the COUNTY for other eligible Urban i 7 County activities, as determined in advance of the expenditure at the discretion of the 8 COUNTY. 9 12.a. CITY shall indemnify, hold harmless and defend COUNTY, its officers, agents 10 and employees against all liability, claims, losses, demands and actions for injury to 11 or death of persons or damage to property arising out of or alleged to arise out of or 12 in consequence of this Agreement, provided such liability, claims, demands, losses or 13 actions are claimed to be due to the acts or omissions of CITY, its officers, agents or 14 employees in the performance of this Agreement, including any activities conducted by 15 CITY under its application. 16 b. In addition, CITY shall indemnify and hold harmless COUNTY against any i I 17 liability, claims, losses, demands, and actions incurred by COUNTY as a result of a 18 determination by HUD that activities under taken by CITY under CITY's application failed 1 19 to comply with any laws, regulations, or policies applicable thereto or that any funds 20 forwarded to CITY under this Agreement were improperly expended. 21 c. The provisions of 1, 3, 41 5, 6 and 7 of Section 2778 of the California Civil 22 Code, as said section exists on the effective date of this Agreement, shall be 23 applicable to the above indemnification provisions. Transmittal to CITY of any i 24 pleadings served upon COUNTY shall be deemed to be a request to defend. i 25 13.a. COUNTY shall indemnify, hold harmless and defend CITY, its officers, agents -16 and employees against all liability, claims, losses, demands and actions for injury to i 27 or death of persons or damage to property arising out of or alleged to arise out of or 28 in consequence of this Agreement, provided such liability, claims, demands, losses or -4- M. 1 actions are claimed to be due to the acts or omissions of COUNTY, its officers, agents 2 or employees 'in the performance of this Agreement, including any activities conducted by 3 COUNTY under its application. 4 b. In addition, COUNTY shall indemnify and hold harmless CITY against any 5 liability, claims, losses, demands, and actions incurred by CITY as a result of a 6 determination by HUD that activities undertaken by COUNTY under COUNTY's application 7 failed to comply with any laws, regulations, or policies applicable thereto or that any 8 funds forwarded to COUNTY under this Agreement were improperly expended. 9 c. The provisions of paragraphs 1, 3, 4, 5, 6 and 7 of Section 2778 of the 10 California Civil Code, as said sections exists on the effective date of this Agreement, 11 shall be applicable to the above indemnification provisions. Transmittal to COUNTY of 12 any pleadings served upon CITY shall be deemed to be a request to defend. 13 14. COUNTY shall have the right to periodically audit CITY's records to determine' 14 compliance with this Agreement. 15 15. CITY shall forward to COUNTY a copy of each annual audit of the CITY during i 16 this Agreement period conducted by an independent public auditor as soon as the audit 17 report becomes available. COUNTY shall have the right to ensure that necessary 18 corrective actions are made by the CITY for any audit findings pertinent to CITY 19 handling of CDBG funding or the CDBG Program per federal requirements. 20 21 22 23 24 25 i '-6 i 27 28 -5- 2 3 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 certified by its Clerk, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. I Dated: (ATTEST: City Clerk Dated: CITY OF TUSTIN By Mayor COUNTY OF ORANGE, a political subdivision of the State of California By Chairman of the Board of Supervisors COUNTY SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD. LINDA D. RUTH Clerk of the Board of Supervisors of Orange County, California APPROVED AS TO FORM: ADRIAN KUYPER, County Counsel ORANGE COUNTY, CALIFORNIA By H/CD AEP : bj gWP 2- 9.14 05/24/90 ® 11 -6-