HomeMy WebLinkAboutCC 15 CD BLOCK GRANT 12-07-87TO:
WILLIAM HUSTON, CITY MANAGER
FROM:
CHRISTINE A. SHINGLETON, DIRECTOR OF COHMUNITY DEVELOPHENT
SUBJECT:
THREE YEAR PARTICIPATION AGREF.~ENT WI'iH COUNTY OF ORANGE
CO#NUNITY DEYELOPHENT BLOCK GRANT PROGRAH
RECOI4HENDED ACTION
It ts recommended that the Ctty Council adopt Resolution No. 87-142 approving
the City's continued participation tn the Houstng and Community Development
Block Grant Program wtth the County of Orange.
BACKGROUND
Every three years the Federal Department of Housing and Urban Development (HUD)
requaliftes urban counties for three years eligibility for Community Development
Block Grant (CDBG) funding. Orange County was requaltfied as an Urban County by
HUD on September 29, 1987 and may now enter into cooperation agreements with
participating cities for the next three years of the CDBG Program (fiscal years
1988-1989-1990).
In 1984 cities were required to commit to 3 years general participation in the
Urban County CDBG application for Fiscal Years 1985, 1986, 1987 or apply
annually to the State Small Cities Program. All 14 eligible cities in 0range
County elected to continue with the Urban County application.
Since cooperation agreements for' the aforementioned period will expire on June
30, 1988, all ctttes agatn must adopt general participation agreements with the
County for upcomtng Ftscal Years 1988, 1989 and 1990 In order to continue wtth
the Urban County CDBG Program.
The other optlons available to the City under CDBG regulation would be to apply
on an annual basts to the. State Department of Houstng and Community Development
(HCD) for CDBG fundlng. In reviewing the FY 1987 State HCD fundtng awards, the
State funded only 40 of 75 or 53~ of total cttles and counties which applted for
funding; only cittes tn Imperial County received awards In the Southern
California regton. The vast majortty of State awarded HCD funding went to
Northern and Central California Small cities and counties, approximately 95~ of
which are rural {farming) areas of high unemployment rates and high poverty
levels. In comparison, the Urban County Program in Orange County awarded
funding to all (100~) of the cities which applied for funding.
Counct 1 Report
Three Year Participation Agreement
December 7, lg87
Page two
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CONCLUSION
i
It ts necessary for the City by resolution of the City Council to enter tnto a
cooperation agreement with the County of Orange to participate in the Urban
County application for the 14th, lSth and 16th (Fiscal years 1988, 1989 and
1990) year of the CDBG Program.
Christine A. Shtngleton~/
Dtrector of Community Development
CAS 'ts:per
Attachments' Resolution No. 87-14g
Cooperation Agreement
Community Development Department
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RESOLUTION NO. 87-142
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
1988, 1989 AND 1990.
WHEREAS, it is the intent of the City of Tustin to participate in the
filing of an application wi th 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 dev. elopment
actt vi ties; 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 Development 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 the City Council of the City of Tustin on this
day of , 1987.
Richard B. Edgar
Mayor
Mary W~nn,
City Clerk
CAS 'ts
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COOPERATION AGREEMENT
THIS AGREEMENT is entered into this
day of
BY AND. BETWEEN
and
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
eiigible 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 1988, 1989 and 1990
appropriations and from any program income generated from the expenditure of such funds.
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3. COUNTY shall have final responsibility for selecting activities and annually
filing the grant applicati6n (i.e., Final Statement of Community Development Objectives
and Projected Use of Funds) with the Federal 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.
4. Since HUD shall not accept an agreement including a provision for veto or
other restriction which would allow any party to obstruct implementation of the Housing
Assistance Plan, both COUNTY and CITY shall attempt to fulfill housing goals established
by the HUD approved Housing Assistance Plan for the period of this Agreement as
referenced in Section 7 and for additional time as may be required for the expenditUre
of funds granted to the COUNTY.
5. Both COUNTY and CITY agree to take all actions necessary to assure compliance
with the Urban County's certification required by Section 104(b) of Title I of the
Housing Community Development Act of 1974, as amended, including Title VI of the Civil
Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Section 109 of Title I
of the Housing and Community Development Act of 1974, as amended, and other applicable
civil rights laws. It is recognized among the parties that noncompliance thereto by the
CITY may also constitute noncompliance by the Urban County CDBG Program which may
provide cause for funding sanctions or other remedial actions by HUD.
6. In the event COUNTY's Urban County application is approved by HUD, COUNTY
shall contract with the CITY to utilize any such grant funds received from HUD which are
attributable to activities administered by CITY, unless another form of allocation is
required by HUD.
7. This Agreement shall be for the three year program period covering the 14th,
15th and 16th years (Fiscal Years 1988, 1989 and 1990, respectively) Housing and
Community Development Block Grant applications. In no event shall this Agreement be
terminated by either party before the expiration of this three year period beginning
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July 1, 1988 and ending June 30, 1991, except through special federal enabling
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legislation for termination or withdrawal from the Urban County and as permitted by HUD.
8. 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 COUNTY shall be reimbursed by CITY in an amount equal to the
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Current fair market value (less any portion thereof attributable to expenditures of non-
CDBG funds).
c. Any program income generated from the disposition, transfer or sale of such
property prior to or subsequent to the close-out, change of status or termination of the
cooperation agreement between the COUNTY and CITY may be either used by CITY for other
specific eligible activities in the CITY or paid to the COUNTY for other eligible Urban
County activities, as determined in advance of the expenditure at the discretion of the
COUNTY.,
12.a. CITY shall indemnify, hold harmless and defend COUNTY, its officers, agents
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and employe~s against all liability, claims, losses, demands and actions for injury to
or death of persons or damage to property arising out of or alleged to arise out of or
in consequence of this Agreement, provided such liability, claims, demands, losses or
actions are claimed to be due to the acts or omissions of CITY, its officers, agents or
employees in the performance of this Agreement, including any activities conducted by
CITY under its application.
b. In addition, CITY shall indemnify and hold harmless COUNTY against any
liability, claims, losses, demands, and actions incurred by COUNTY as a result of a
determination by HUD that activities under taken by CITY under CITY's application failed
to comply with any laws, regulations, or policies applicable thereto or that any funds
forwarded to CITY under this Agreement were improperly expended.
c. The provisions of 1, 3, 4, 5, 6 and 7 of Section 2778 of the California Civil
Code, as said section exists on the effective date of this Agreement, shall be
applicable to the above indemnification provisions. Transmittal to CITY of any
pleadings served upon COUNTY shall be deemed to be a request to defend.
13.a. COUNTY shall indemnify, hold harmless and defend CITY, its officers, agents
and employees against all liability, claims, losses, demands and actions for injury to
or death of persons or damage to property arising out of or alleged to ar~se out of or
in consequence of this Agreement, provided such liability, claims, demands, losses or
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actions are claimed to be due to the acts or omissions of COUNTY, its officers, agents
or employees in the performance of this Agreement, including any activities conducted by
COUNTY under its application.
b. In addition, COUNTY shall indemnify and hold harmless CITY against any
liability, claims, losses, demands, and actions incurred by CITY as a result of a
determination by HUD that activities undertaken by COUNTY under COUNTY's application
failed to comply with any laws, regulations, or policies applicable thereto or that any
funds forwarded to COUNTY under this Agreement were improperly expended.
c. The provisions of paragraphs 1, 3, 4, 5, 6 and 7 of Section 2778 of the
California Civil Code, as said sections exists on the effective date of this Agreement,
shall be applicable to the above indemnification provisions. Transmittal to COUNTY of
any pleadings served upon CITY shall be deemed to be a request to defend.
14. COUNTY shall have the right to periodically audit CITY's records to determine
compliance with this Agreement.
15. CITY shall forward to COUNTY a copy of each annual audit of the CITY during
this Agreement period conducted by an independent public auditor as soon as the audit
report becomes available. COUNTY shall have the right to ensure that necessary
corrective actions are made by the CITY for any audit findings pertinent to CITY
handling of CDBG funding or the CDBG Program per federal requirements.
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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.
CITY OF TUSTIN
Dated: By
Mayor
ATTEST:
' City Clerk
COUNTY OF ORANGE, a political subdivision
of the State of California
Dated: By
SIGNED AND CERTIFIED THAT A COPY OF
THIS DOCUMENT HAS BEEN DELIVERED TO
THE CHAIRMAN OF THE BOARD.
Chairman of the Board of Supervisors
COUNTY
LINDA D. ROBERTS
Clerk of the Board of Supervisors
of Orange County, California
APPROVED AS TO FORbi:
ADRIAN KUYPER, County Counsel
ORANGE COUNTY, CALIFORNIA
H/CD
RD :maWP2-9.1 (12)
11/03/87
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