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TO: CITY COUNCIL
FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: 0,KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE
COUNTY OF SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE
FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIPS
PROGRAM, THE EMERGENCY SHELTER GRANT PROGRAM, THE
AMERICAN DREAM DOWN PAYMENT INITIATIVE PROGRAM, AND
THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
PROGRAM FOR FISCAL YEARS 2015 THROUGH 2017
DATE: JUNE 24, 2014 -
RECOMMENDATION:
It is recommended that the City Council adopt a.Resolution approving the Cooperation
Agreement between the County of San Luis Obispo and the City of Arroyo Grande for
joint participation in the Community Development Block Grant Program, the Home
Investment Partnerships Program, the Emergency Shelter Grant Program, the American
Dream Down Payment Initiative Program, and the Housing Opportunities for Persons
with AIDS Program for Fiscal Years 2015 through 2017.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
.The City's final allocation for the 2014 Community Development Block Grant (CDBG) is
$62,583. This represents a 2.41% decrease from the City's 2013 allocation. Assuming
the same reductions will occur in future years, it is estimated the CDBG allocation for the
City will be approximately $61,075 in 2015, $59,603 in 2016 and $58,167 in 2017.
The Cooperation Agreement (Agreement) includes a new provision under Section IV
specifying that thirteen percent (13%) of the City's CDBG allocation for administrative
costs be retained by the County to offset its overall costs to administer the program. The
City would retain seven percent (7%) of the total CDBG allocation for administration.
BACKGROUND:
The Cooperation Agreement (Agreement) will allow the City to continue participation with
the County and other participating cities for Federal CDBG, Home Investment
Partnerships (HOME), Emergency Shelter Grant (ESG) and Housing Opportunities for
Persons with Aids (HOPWA) funding programs (see Attachment 1 for letter from the
County to the City for notice of opportunity to be included in the Urban County dated May
Item 81. - Page 1
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 24, 2014
PAGE 2
14, 2014). The term of this Agreement is for a period of three (3) years commencing July
1, 2015 through June 30, 2017.
Prior to the City's participation in the Urban County Program, the City was successful in
obtaining both CDBG housing and economic development grants on a competitive basis
using specialized consultants. Under the State CDBG- program, eligible cities can
compete for up to $1,500,000 for Community Development (CD) allocations. Eligible
activities for CD grants include housing, public improvements, community facilities, public
services, and planning and technical assistance. The State CDBG program also
provides grants of up to $500,000 for Economic Development, including loans to
businesses, grants for publicly-owned infrastructure and microenterprise assistance. The
City has participated in the Urban County Program since 2000.
ANALYSIS OF ISSUES:
The County Consortium participating in the Urban County Program receives a
predictable, formula-based annual grant and there is a wider range of uses for the
Federal CDBG funds. The tradeoff is that the City will not be able to apply, through a
highly competitive process, for a potentially greater amount of State administered funds
during the term of the Agreement. Since the City does not have any census tracts that
are low income, staff does not believe the City would be highly competitive.
With .respect to the HOME program, the City, or a Community Housing Development
Organization, such as People's Self Help Housing (PSHH), can apply to the State for up
to $1,000,000 annually for affordable housing projects. The HOME program is an annual
statewide competition. Should the City continue in the San Luis Obispo Urban County
Program, the City cannot apply for these grants. However, PSHH, or a similar nonprofit
organization, can apply directly to the County to fund a project located in the City.
County staff largely handles administration of the CDBG program, but the City is
authorized to use up to 20% of its allocation for the cost of staff time if needed. Since
2011, the City has authorized the County to administer the City's public service grants
using a portion of the City's CDBG administration funds. Per the proposed Agreement,
the County would retain 13% of the City's administrative funds and the City would keep
the remaining 7%. This would occur regardless of whether or not the City allocated funds
to public service activities. The Agreement also specifies that the City shall not
recommend an individual CDBG award of less than $8,000 for public service activities
due to the staff cost of processing such awards in compliance with federal monitoring,
reporting and other administrative requirements.
On February 11, 2014, the City Council discussed using General Fund revenues to fund
public service requests in lieu of CDBG funds to eliminate restrictions on the size of
grants and to reduce the substantial HUD monitoring and administrative costs. The intent
Item 81. - Page 2
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 24, 2014
PAGE 3
was to use CDBG funds more for ADA improvements, yet still provide a less
cumbersome program to fund important local public service funding requests. The
Council directed staff to implement the following changes to the 2015 CDBG process:
• Eliminate all CDBG funding for public services;
• Increase $10,000 in Local Sales Tax funding for the Five Cities Fire Authority;
• Reduce General Fund funding for the Five Cities Fire Authority by $10,000;
• Reduce Local Sales Tax funding for ADA ramps by $10,000;
• Increase CDBG funding for removal of architectural barriers by $10,000;
• Appropriate $10,000 in the General Fund for public services grants; and
• Establish a program for accepting applications for public services grants.
The Council approved an additional $10,000 for public services grants in the budget
adjustments for a total of $20,000. It is anticipated that the Community Service Grant
Program Committee will be formed this fall.
If the City Council decides to approve the Agreement, it must be executed and
transmitted to the County by July 1, 2014. The County Board of Supervisors is
scheduled to consider the Agreement on July 8, 2014.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
- Adopt the Resolution approving the Agreement;
- Modify as appropriate and adopt the Resolution;
- Do not adopt the Resolution; or
- Provide direction to staff.
ADVANTAGES:
Continuation of the Agreement will allow the Council to consider funding programs that
provide important public services and programs using CDBG funds. Participation in the
County program will guarantee the City'will receive a specified amount of funding.
DISADVANTAGES:
Continuation of the Agreement does not allow the City to compete for substantial
statewide CDBG funds for general and economic development projects, which could
exceed th'e amount received through the County program. However, staff does not
believe the City would be competitive in the statewide CDBG program given the lack of
low income census tracts that are needed to qualify.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
Item 81. - Page 3
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 24, 2014
PAGE 4
PUBLIC NOTIFICATION AND COMENTS:
The Agenda was posted in front of City Hall on Thursday, June 19, 2014. The Agenda
and_ report were posted on the City's website on Friday, June 20, 2014. No public
comments were received.
Attachment:
1. Letter from the County of San Luis Obispo to the City of Arroyo Grande regarding
Notice of Opportunity to be included in the Urban County Dated May 14, 2014
Item 81. - Page 4
RESOLUTION NO.
A RESOLUTION. OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE APPROVING A COOPERATION
AGREEMENT BETWEEN THE COUNTY OF SAN LUIS
OBISPO AND THE CITY OF ARROYO GRANDE FOR
JOINT PARTICIPATION IN THE - COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME
INVESTMENT PARTNERSHIPS PROGRAM, THE
EMERGENCY SHELTER GRANT PROGRAM, THE
AMERICAN DREAM DOWN . PAYMENT INITIATIVE
.PROGRAM, AND THE HOUSING OPPORTUNITIES- FOR
PERSONS WITH AIDS (HOPWA) PROGRAM FOR FISCAL
YEARS 2015 THROUGH 2017
WHEREAS, The County of San Luis Obispo ("County"), a political subdivision of the
State of California, and the City of Arroyo Grande ("City") a municipal corporation,
desire to participate in the Community Development Block Grant (CDBG) program
administered by the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, said program will promote the public health, safety and welfare by
providing grant funds to be used by the City and County to improve housing
opportunities for low and moderate-income households, to encourage economic
reinvestment, to improve community facilities and public services, and.to provide other
housing-related facilities,or services; and
WHEREAS, to qualify for CDBG funds under HUD eligibility guidelines, the County must
have a population of at least 200,000 persons;-and
WHEREAS, the City desires to continue to participate jointly with the County in said
program; and
WHEREAS, HUD requires that the parties enter into a Cooperation Agreement between
the County of San Luis Obispo and the City of Arroyo Grande for joint participation in
the Community Development Block Grant Program, the Home Investment Partnerships
Program, the Emergency Shelter Grant Program, the American Dream Down Payment
Initiative Program, and the Housing Opportunities for Persons with AIDS Program for
Fiscal Years 2015 through 2017 to define their rights and obligations as a prerequisite
to participation in the CDBG program; and
WHEREAS, The proposed cooperation agreement is consistent with the General Plan
and with City and County policies encouraging cooperation between agencies on issues
of regional significance such as affordable housing; and
Item 81. - Page 5
RESOLUTION NO.
PAGE 2
WHEREAS, The proposed cooperation agreement will promote the public health, safety
and welfare by enabling the City and County to participate in the U.S. Department of
Housing and Urban Development's CDBG program under an "urban. county"
entitlement; thus making available funds for a variety of housing, . economic
development, and public services programs not otherwise available; and
WHEREAS, The City and County enter into yearly subrecipient agreements which
establish administrative policies and procedures, performance standards, and
guidelines for funding specific CDBG programs and projects; and
WHEREAS, The proposed cooperation agreement is not a "project" for purposes of
compliance with the provisions of the California Environmental Quality Act (CEQA) and
the City's CEQA Guidelines.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo
Grande, California, as follows:
1. The City Council hereby_ approves and authorizes the Mayor to enter into the
Cooperation Agreement with the County to enable joint participation in HUD's
CDBG program in the form attached hereto as Exhibit "A".
2. The City Manager is hereby authorized to act on behalf of the City in connection
with the implementation of the agreement, ongoing operation of the CDBG
program, and other activities necessary to carry out the intent of the cooperation
agreement.
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of 2014.
Item 81. - Page 6
RESOLUTION NO.
PAGE 3
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.f. - Page 7
i
EXHIBIT A
A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN
LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIPS
PROGRAM, THE EMERGENCY SOLUTIONS GRANT PROGRAM, AND
THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
PROGRAM FOR FISCAL YEARS 2015 THROUGH 2017
THIS AGREEMENT is made and entered into this day of
2014, by and between the County of San Luis Obispo, a political subdivision of the
State of California, hereinafter called "County"; and the City of Arroyo Grande, a
municipal corporation of the State of California, located in the County of San Luis
Obispo, hereinafter called "City"; jointly referred to as "Parties".
WITNESSETH
WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law
entitled, The Housing and Community Development Act of 1974, herein called the "Act".
Said Act is omnibus legislation relating to federal involvement in a wide range of
housing and community development activities and contains eight separate titles; and
WHEREAS, Title I of the Act is entitled "Community Development" and governs
programs for housing and community development within metropolitan cities and urban
counties or communities by providing financial assistance annually for area-wide plans
and for housing, public services and public works programs; and
WHEREAS, the Community Development Block Grant (CDBG) Program, the HOME
Investment Partnerships (HOME) Program, the Emergency Solutions Grant (ESG)
Program, and the Housing Opportunities for Persons with AIDS (HOPWA) Program are
consolidated under Title I of the Act; and
WHEREAS, the County of San Luis Obispo has requested of the federal Department of
Housing and Urban Development, hereinafter referred to as "HUD", that the County be
designated as an "urban county"; and
WHEREAS, the County needs to requalify as an urban county and will be eligible to
receive CDBG funds provided that the County's entitled cities defer their entitlement to
the County to enable both the County and the entitlement cities to jointly participate in
the program; and
WHEREAS, the City desires to participate jointly with the County in said program; and
WHEREAS, if HUD redesignates the County as an urban county, the County may also
be eligible to receive funds from the Home Investment Partnership Program (hereinafter
referred to as "HOME"), the Emergency Solutions Program (hereinafter referred to as
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Item 81. - Page 8
"ESG"), and the Housing Opportunities for Persons with Aids Program (hereinafter
referred to as "HOPWA"); and
WHEREAS, the Community Development Block Grant Regulations issued pursuant to
the Act provide that qualified urban counties must submit an application to the
Department of Housing and Urban Development for funds, and that cities and smaller
communities within the metropolitan area not qualifying as metropolitan cities may join
the County in said application and thereby become a part of a more comprehensive
County effort; and
WHEREAS, as the urban county applicant, the County must take responsibility and
assume all obligations of an applicant under federal statues, including: the analysis of
needs, the setting of objectives, the development of community development and
housing assistance plans, the consolidated plan, and the assurances of certifications;
and
WHEREAS, by executing this Agreement, the Parties hereby give notice of their
intention to participate in the urban county CDBG, HOME, ESG, and HOPWA
programs.
NOW THEREFORE, in consideration of the mutual promises, recitals and other
provisions hereof, the Parties agree as follows:
SECTION I. General.
A. Responsible Officers. The Director of the County of San Luis Obispo
Department of Planning and Building (hereinafter referred to as "Director") is
hereby authorized-to act as applicant for the CDBG, HOME, ESG, and HOPWA
programs and to administer funding and activities under the programs. The City
Manager is hereby authorized to act as the responsible officer of the City under
the programs.
B. Full Cooperation. Parties agree to fully cooperate and to assist each other in
undertaking eligible grant programs or projects, including but not limited to
community renewal and lower income housing assistance activities, specifically
urban renewal and publicly-assisted housing; public services; and economic
development.
C. Term of Agreement — Automatic Renewal Provision. The term of this
Agreement shall be for a period of three (3) years commencing July 1, 2015
through June 30, 2017. In addition, this Agreement provides for automatic
renewal for participation in successive three-year qualification periods, unless the
City provides written notice at least 60 days prior to the end of the term that it
elects not to participate in a new qualification period. Before the end of the first
three-year term, the County will notify the City in writing of its right not to
participate in the urban county for successive three-year term.
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Item 81. - Page 9
The Parties agree to adopt amendments to this Agreement incorporating
changes necessary to meet the requirements for cooperation agreements set
forth in an Urban County Qualification Notice by HUD for a subsequent three-
year urban County qualification period, prior to the subsequent three-year
-extension of the term. Any amendment to this Agreement shall be submitted to
HUD as required by the regulations and any failure to adopt required
amendments will void the automatic renewal of the Agreement for the relevant
qualification period.
The Agreement remains in effect until the CDBG, HOME, ESG, and HOPWA
program funds and income received with respect to the three-year qualification
period, and the subsequent three-year renewals are expended and the funded
activities are completed. The Parties may not terminate or withdraw from the
Agreement while the Agreement remains in effect.
D. Scope of Agreement. This. Agreement covers the following formula funding
programs administered by HUD where the County is awarded and accepts
funding directly from HUD: the CDBG Entitlement Program, the HOME Program,
the Emergency Solutions Grant (ESG) Program, and the Housing Opportunities
for Persons with AIDS (HOPWA) Program.
SECTION II. Preparation and Submittal of CDBG Funding Applications.
A. Inclusion of City as Applicant. Parties agree that City shall be included in
the application the County shall submit to the Department of Housing and
Urban Development for Title I Housing and Community Development Block
funds under the above recited Act.
B. Consolidated Plan. City shall assist the County by preparing a community
development plan, for the period of this Agreement, which identifies
community development and housing needs, projects and programs for the
City; and specifies both short and long-term City objectives, consistent with
requirements of the Act. County agrees to: (1) include the City plan in the
program application, and (2) include City's desired housing and community
development objectives, policies, programs, projects and plans as submitted
by City in the County's consolidated plan.
C. Application Submittal. County agrees to commit sufficient resources to
completing and submitting the Consolidated Plan and supporting documents
to HUD in time for the Parties to be eligible to receive funding beginning July
1, 2015, and to hold public hearings as required to meet HUD requirements.
D. County Responsibility. Parties agree that the County shall, as applicant, be
responsible for holding public hearings and preparing and submitting the
CDBG funding application and supporting materials in a timely and thorough
manner, as required by the Act and the federal regulations established by
HUD to secure entitlement grant funding beginning July 1, 2015.
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Item 81. - Page 10
E. Grant Eligibility. In executing this Agreement, the Parties understand that
they shall not be eligible to apply for grants under the Small Cities or State
CDBG Programs for appropriations for fiscal years during the period in which
the Parties are participating in the urban county CDBG entitlement program;
and further, the City shall not be eligible to participate in the HOME, ESG or
HOPWA programs except through the'urban county.
SECTION III. Program Administration.
A. Program Authorization. The County Administrator is hereby authorized to
carry out activities that will be funded from the annual CDBG, HOME, ESG,
and HOPWA programs from fiscal years 2015, 2014, and 2017 appropriations
and from any program income generated from the expenditure of such funds.
B. Responsibilities of Parties. Parties agree that the County shall be the
governmental entity required to execute any grant agreement received
pursuant to the CDBG, HOME, ESG, and HOPWA applications, and subject
to the limitations set out in this Agreement, the County shall thereby become
liable and responsible thereunder for the proper performance of the plan and
CDBG, HOME, ESG, and HOPWA under County programs. City agrees to
act in good faith and with due diligence in performance of City obligations and
responsibilities under this Agreement and under all subrecipient agreements.
City further agrees that it shall fully cooperate with the County in all things
required and appropriate to comply with -the provisions of any Grant
Agreement received by the County pursuant to the Act and its Regulations.
C. City Assistance. City agrees to undertake, conduct, perform or assist the
County in performing the essential community development and housing,
assistance activities identified in the City's community development plan.
Pursuant to the Act and pursuant to 24 CFR 570.501(b), the City is subject to
the same requirements applicable to subrecipients, including the requirement
of a written agreement with the County as set forth in 24 CFR 570.503.
SECTION IV. Use of Program Funds.
A. Allocation of CDBG funds. All funds received by County pursuant to this
Agreement shall be identified and allocated, as described below, to the
specific projects or activities set out in the application, and such allocated
amounts shall be expended exclusively for such projects or activities;
provided, however, that a different distribution may be made when required
by HUD to comply with Title I of the Housing and Community Development
Act of 1974, as amended.
1) Metropolitan Cities' Allocation. The Parties agree that County shall
make available to City a total amount of CDBG funds equal to that which
City would have been entitled had it applied separately as a "metropolitan
city", using HUD allocation formulas as applied by County, except that an
amount equal to thirteen (13) percent of the Metropolitan Cities'
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Item 8.f. - Page 11
allocations of CDBG funds will be deducted by the County to meet its
obligations under the terms of this Agreement and/or HUD requirements
for administrative costs. Further, with respect to the availability of the
funds, County agrees to fully cooperate and assist City in expending such
funds.
2) Non-Metropolitan Cities' Allocation. County agrees to allocate a
portion of CDBG program funds to the non-Metropolitan, incorporated
cities participating in the program. The amount of allocation per city shall
be equal_ to that which the urban county formula award from HUD
increases as a result of the HUD allocation formulas as applied by County,
except that an amount equal to thirteen (13) percent of the Non-
Metropolitan Cities'. allocations of CDBG funds will be deducted by the
County to meet its obligations under the terms of this Agreement and/or
HUD requirements for administrative costs.
3) City.agrees that it shall not recommend an individual CDBG award of less
than $8,000 for public service activities due to the staff cost of processing
such awards in compliance with federal requirements. County may
question inclusion of such a project. Notwithstanding, City and County
each may make an award of $8,000 which is aggregated to a greater
amount.
B. Availability of Funds. County agrees to make CDBG funds available to all
participating incorporated cities as set out here when HUD makes the CDBG
funds available to it. The County shall immediately notify the participating
incorporated cities of the availability of the funds.
It is understood by the Parties hereto that the CDBG funds being used for the
purposes of this Agreement are funds furnished to the County, through HUD,
pursuant to the provisions of the Act. Notwithstanding any other provision of
this Agreement, the liability of the County shall be limited to CDBG funds
available for the Project. The City understands that the County must wait for
release of CDBG funds from HUD before CDBG funds may be advanced or
reimbursed. The County shall incur no liability to the City, its officers, agents,
employees, suppliers, or contractors for any delay in making any such
payments.
C. Administrative and Public Services Costs. County hereby acknowledges
that City, as subrecipient, incurs certain administrative costs in preparing
housing and economic development plans, program planning, management
and accounting, professional support services, and other reasonable and
necessary expenses to carry out City's plan; and further, County agrees that
after the availability of CDBG program funds to City, County shall not use its
remaining balance of funds in any way that would limit City's ability to use its
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Item 81. - Page 12
CDBG funds to the maximum extent allowed by HUD for administrative,
public service, or program purposes.
D. Income Generated. City shall notify the County of any income generated by
the expenditure of CDBG funds received by the City. Such program income
may be retained by City subject to the provisions of this Agreement, the Act
and its Regulations. Any program income retained must only be used for
eligible activities in accordance with all CDBG requirements as they apply.
E. Use of Program Income. County shall monitor the use of any program
income, requiring appropriate record-keeping and reporting by the City as
may be needed for this purpose, and shall report the use of such program
income to HUD. In the event of close-out or change of status of the City, all
program income on hand or received by the City subsequent to the close-out
or change of status shall be paid to the County. In the event that the City
withdraws from the urban county to become an entitlement grantee, as
provided under 24 CFR 570.504, all program income on hand or received by
the City from urban county activities shall be retained by the City to be used
as additional CDBG funds subject to all applicable requirements governing
the use of CDBG funds.
F. Change in Use of Property. City shall notify the County of any modification
or change in the use of real property acquired or improved in whole or in part
using CDBG funds that is within the control of the City, from that use planned
at the time of acquisition or improvement including disposition. Such
notification shall be made within thirty (30) calendar days of such change of
use and comply with the provisions of 24 CFR 570.505.
G. Fair Housing Implementation. Parties agree that no urban county funding
shall be allocated or expended for activities in or in support of any
cooperating unit of general local government that does not affirmatively
further fair housing within its own jurisdiction or that impedes the County's
actions to comply with its fair housing certification.
H. Conflict Resolution. In the event of disagreement between the County and
the City as.to the allocations, disbursement, use, or reimbursement of CDBG
funds, the Parties agree to accept HUD's written determination as to the
appropriate resolution or disposition of funds to the extent HUD is willing to
resolve such disagreement.
SECTION V. Amendment or Extension of Agreement.
A. Subrecipient Agreement. For each fiscal year during the term of this
Agreement, County and City shall enter into a Subrecipient Agreement,
prepared jointly by County and City, which will list the project(s) City will
undertake with its CDBG entitlement funds during that program year. Said
Subrecipient Agreement will set forth the project changes, time schedule for
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Item 81. - Page 13
completion of the project(s), and additional funding sources, ' if any. If
substantial compliance with the completion schedule cannot be met by the
City due to unforeseen or uncontrollable circumstances, the County may
extend the schedule for project completion, as allowed by federal regulations.
B. Amendments. Any amendments to the Agreement shall be in writing.
Parties agree that any such fully executed amendment or amendments to this
Agreement may be entered into at any time if required or necessary to
implement the plans contemplated hereunder, or to comply with any grant
agreement or the regulations issued pursuant to the Act.
SECTION VI. Compliance with Federal Regulations.
A. General. The Parties agree to take all actions necessary to assure
compliance with the urban county's certifications required by'section 104(b) of
Title I of the Housing and Community Development Act of 1974, as amended,
regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act,
affirmatively furthering fair housing, Section 109 of Title I of the Housing and
Community Development Act of 1974; the National Environmental Policy Act
of 1969; the Uniform Relocation Assistance and Real Property Acquisition Act
of 1970; and other applicable laws.
B. Citizen Participation. The Parties agree to comply with federal citizen
participation requirements of 24 CFR Part 91, and provide citizens with:
1) An estimate of the amount of CDBG funds proposed to be used for
activities that will benefit persons of low and moderate income; and
2) A plan for minimizing displacement of persons as a result of CDBG-
assisted activities and programs, and to provide assistance to such
persons.
C. Citizen Participation Plan. The Parties agree to follow a citizen participation
plan which:
1) Provide for and encourages citizen participation, particularly those of low
or moderate income who reside in slum or blighted areas where CDBG
funds are proposed to be used;
2) Provide citizens with reasonable and timely access to local meetings, staff
reports, and other information relating to grantee's proposed use of funds,
as required by HUD regulations related to the actual use of funds under
the Act;
3) Provides for public hearings to obtain citizen views and to respond to
proposals and questions at all stages of the community development
program, including at least: 1) formulation of needs; 2) review of proposed
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Item 81. - Page 14
grant activities; and 3) review of program performance; for which public
hearings shall be held after adequate notice, at times and locations
convenient to potential or actual beneficiaries, and with accommodation of
handicapped persons;
4) Provides for a timely written answer to written complaints and grievances,
within 15 working days where practicable;
5) Identifies how the needs of non-English speaking residents will be met in
the case of public hearings where a significant number of non-English
speaking residents can be reasonably expected to participate.
6) Identifies the use of non-traditional methods of community outreach,
including the provision of CDBG documents in a user-friendly format,
including but not limited to Braille, large print, oral format, and delivering
copies to homebound individuals.
D. The Parties hereby certify, to the best of their knowledge and belief,
that:
1) Conflict of Interest. No federal grant monies have been paid or will be
paid, by or on behalf of the Parties, to any officer or employee or 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.
2) Influence. If any funds other than federally 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 undersigned shall complete and submit standard form
LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions.
3) Certifications Disclosure. Parties agree to include this certification in
the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative
agreements), and that all grant subrecipients shall certify and disclose
accordingly. This certification is a material representation, of fact upon
which reliance was placed when this transaction was entered into.
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Item 81. - Page 15
E. Certification Regarding Policies Prohibiting Use of Excessive Force and
Regarding Enforcement of State and Local Laws Barring Entrances.
In accordance with Section 519 Public Law 101-144 (the 1990 HUD
Appropriations Act), the City certifies that it has adopted and is enforcing.
1) A policy prohibiting the use of excessive force by law enforcement
agencies within their respective jurisdictions against any individuals
engaged in non-violent civil rights demonstrations; and
2) A policy of enforcing applicable State and local laws against physically
barring entrance to or exit from a facility or location which is the subject of
such non-violent civil rights demonstrations within their jurisdictions.
SECTION VII. Execution of Agreement and Recordkeeping.
A. HUD Certification. The Director is hereby authorized to execute and submit
to the County the HUD Certification Form with respect to the community
development activities carried out within the boundaries of the City. It is
further understood that the County will rely upon the certification executed by
the Director for purposes of executing a certification form for submission to
HUD.
B. Maintenance of Records. City shall maintain records of activities for any
projects undertaken pursuant to the program, and said records shall be open
and available for inspection by auditors assigned by HUD and/or County on
reasonable notice during the normal business hours of the City.
NOW, THEREFORE, the Parties hereto have caused this Cooperation Agreement to be
executed and attested by their proper officer thereunder duly authorized, and their
official seals to be hereunto affixed, all as of the day first above written.
County Counsel Certification
The Office of the County Counsel hereby certifies that the terms and provisions of this
Agreement are fully authorized under State and local laws, and that the Agreement
provides full legal authority for the County to undertake' or assist in undertaking
essential community development and housing assistance activities, specifically urban
renewal and publicly assisted housing.
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Item 81. - Page 16
By:
Elizabeth Martyn , Deputy County Counsel
Date:
COUNTY OF SAN LUIS OBISPO
By:
Chairperson of the Board of Supervisors
Date:
ATTEST:
Julie Rodewald, County Clerk
Date:
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Item 81. - Page 17
NOW, THEREFORE, the Parties hereto have caused this Cooperation Agreement to be
executed and attested by their proper officer therunder duly authorized, and their official
seals to be,hereunto affixed, all as of the day first above written.
CITY OF ARROYO GRANDE
TONY FERRARA, MAYOR
Date:
ATTEST:
KELLY WETMORE, CITY CLERK
Date:
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
Date:
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Date:
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Item 8.f. - Page 18
ATTACHMENT 1
4 -
' SAN Lws>0131sPO COUNTY
` DEPARTMENT OF PLANNING1 AND BUILDING
Promotin :the.wise:use;:of land— Hel in to build7great_communities
May K.20.14
Steven Adams, City Manager
City of.Arroyo'Grande.
300 E. Branch,-Street
Arroyo Grande, CA 93420,
Subject: Notice of Opportunity to be Included:in Urban County.of:San Luis Obispo
for Purposes of Federal CDBG, HOME,w&ESG.Funding Programs
Dear Steve;,
The purpose:of this letter:is to notify.youthatthP City . Arroyo Grande--figs the
opportunity to participate with other cities and the County Of San Luis Obispo.fh..
qualifying as an "Urban County"for fiscal years (FY) 2015-2017. You know this already
because we:have been in communication with your staff regarding.the terms of`the
cooperation agreements;, but.-HUD requires that the County-send this.letter to you:.
Under HUD regulations,.the City rnust:notify.the County in writing whether the City
.elects to barticipate or not: The'County is require.o provide copies:of°the letters from
'the cities no later than July 25, 2014.Additionally,:if the City Wishes'to participate, it
must execute a cooperation.agreement with the:County. The County must then:provide:
a:.copy;of all.executed cooperation agreement no later:than,J,u.IV 25 2014. 1
Urban, counties receive annual;formal-based grants directlyfrom.the federal
Department bf Housing and Urban Development(HUD)'under the Community
Development-Block Grant:_(CDBG)., Horne Investment Partnerships Act (HOME),',and
Emergency Solutions.Gcant (ESG) programs. San Luis:Obispo has°been an urban
county since fiscal year 1.994. The current participating.,cities.include Arroyo Grande,
Atascadero, Morro.Bay, Paso Robles and San Luis Obispo. The c"tties of Grover.Beach
Bay and Pismo Beach decided not to participate:as part;of:the Urban County in 2012.
Agreements:betwee;n the participating jurisdictions established a formula allocating
CDBG funds by jurisdictions. The HOME, and ESG funds were not formally divided:up;;
but the cities-provided recommendations:to the county on these programs.
TheCity can choose from the following Options for purposes of the CDBG; HOME and
ESG programs:
i
a
COUNTY GOVERNMENT CENTER 'o. SAN'LUis:OwsPO c CALIFORNIA 93408 0 _(805)781=5600
plan ning@co.sloxa.us. F= (805) 781-1242 o sloplanning.org
Item 81. - Page 19
Opportunity to be included within Urban County Page 2
May 14,2014
1. Join the Urban County to receive CDBG allocations through the county. If the
City elects to join the Urban County, the City will not be eligible to apply for
grants under the state CDBG, HOME or ESG programs.
2. Decline a formula CDBG allocation or entitlement and become an eligible
applicant to the competitive State CDBG, HOME and.ESG programs.
The county welcomes any city that wishes to join the Urban County, and proposes to
allocate an amount of CDBG funds to each participating city the equivalent to the
amount that city's population base increases the Urban County's CDBG entitlement. In
addition, the County will retain 13% (estimated at$8,518) of the City's CDBG allocation
to cover County costs of administering the City's CDBG projects and general CDBG
program administration. This will leave an amount equal to 7% (estimated at$4,587) of
the City's CDBG allocation for City costs of general and project administration. These
provisions are incorporated into the cooperation agreement previously provided to your
staff.
At the current time, the County does not have the HUD data to calculate the share of
CDBG funds per jurisdiction for 2015. However, we have prepared an estimate based
on an assumption that the CDBG program may receive a 7.5% cut nationwide.
Estimates of Community Development Block Grant Funds by Jurisdiction
Jurisdiction Population in Poverty Persons in CDBG
Housing Units Persons Overcrowded Allocation
Housing Units
Arroyo Grande 17,078 1,230 125 $65,525
Atascadero 27,345 2,926 282 $133,395
Grover Beach 13,143 1,801 280 $83,953
Morro Bay 10,049 1,246 202 $60,236
Paso Robles 29,280 3,572 440 $163,259
Pismo Beach 7,707 378 105 $28,962
San Luis 43,575 13,290 463 $422,646
Obispo
County 105,566 10,320 1,698 $675,525
Total Urban 253,743 34,763 3,595 $1,633,501
County
Data source: 2008-2012 American Community Survey 5-Year Estimates
Here are a few factors you should consider before deciding whether to continue as part
of the Urban County:
1. The County will, as lead agency for the Urban County, prepare the five-year
consolidated plan, the annual plans, and the various federally required
reports, conduct citizen participation efforts, and provide training to City staff
on federal CDBG requirements. The County will also administer the City's
CDBG projects, including subrecipient agreements, processing payments,
Item 81. - Page 20
f
Qpportunity tol be_included-within Urban County :Page.3
Ma.y 14,2014
preparing reports and:monitoring:of subrecipients. City-Staff will still be
responsible for limited adrriinistratue-activities.in order`to comply wi#1 federal
requirements, b.ut the;City will be-able-to.use up to 7% of.its CDBG allocation.
.to pay the costs of staff time needed.
2, Once the City enters into'.the three=year cooperat ve agreement'requ red to
become part of the Urban County, it cannot drop:out.of the Urban County°until
the.three years-pass.,
If your City wishes to:join-the`Urban County1hen the.City=and:the County must
execute a new three-year cooperative agreement-.:unless the City notifies tha.County
in writing of its intent not to participate. The County has tentatively scheduled.an
item for the Board of Supervisors'to approve.the cooperation agreements with-the
cities on July 8,:2014.
We look forward:to working with you over.the ne)d:three years,should.you join the
Urban County:. Please feel free to.call.me.781-5715 if you..have any questions about
this=.matter
Si cerely.,
i` Dana Lilley, Supervising Planner
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l
cc; Teresa McClish, AI.QP,, Corrimunity Development:Departrnent Director
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