CC 2017-06-13_09f CDBG Cooperation Agreement NRR 0y0
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INCORPORATED 7Z
MEMORANDUM
* JULY 10, 1911 Y'
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TO: CITY COUNCIL
FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: 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, AND THE EMERGENCY SOLUTIONS GRANT PROGRAM
FOR FISCAL YEARS 2018 THROUGH 2020
DATE: JUNE 13, 2017
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, and the Emergency Solutions Grant Program for
Fiscal Years 2018 through 2020.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City's estimated allocation for the 2017 Community Development Block Grant
(CDBG) is $73,446. This estimate is equal to the final adjusted figure for the 2016 fiscal
year minus a 2.8% decrease. Assuming the same reductions will occur in future years, it
is estimated the CDBG allocation for the City will be approximately $71,390 in 2018,
$69,391 in 2019 and $67,448 in 2020.
The Cooperation Agreement (Agreement) includes the previous provision under Section
IV(A) 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 Agreement will allow the City to continue its participation with the County and other
participating cities in the federal Community Development Block Grant Program, the
Home Investment Partnerships Program (HOME), and the Emergency Solutions Grant
Program. The term of this Agreement is for a period of three (3) years commencing July
1, 2018 through June 30, 2021 .
Item 9.f. - 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 13, 2017
PAGE 2
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 in 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. Consistent with the previous
agreement, the proposed agreement allows the County to retain 13% of the City's
administrative funds and the City would keep the remaining 7%. Below are excerpts from
the County's FY 2016 - 17 Budget that help to support the 13% retention of the City's
CDBG Administration funding (more about SLO County's 2016/17 Land Based Budget
can be found at: http://www.slocounty.ca.gov/Assets/AD/Budget/2016-17+Budget/2016-
17+final+land+based.pdf)
Staffing to administer the HUD grant programs and contracts funded with General
Fund support is budgeted in Fund Center 142 - Planning and Building. In FY 2016-
17, $416,532 in funding will be transferred to Planning and Building to support the
cost of administering these programs. As previously reported to the Board of
Supervisors, funding levels for HUD grants have declined over the past few years,
while the administrative requirements for these grants have expanded. After four
Item 9.f. - 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 13, 2017
PAGE 3
onsite monitoring visits, HUD strongly encouraged the County to assume grant
administration responsibilities for the CDBG funds, which are allocated for use by
the participating cities. In FY 2014-15, the County and six cities approved three-
year cooperation agreements assigning CDBG grant administration responsibilities
to the County along with increased CDBG revenue to help cover the administration
costs. For FY 2015-16, the County will retain $130,917 of the cities'share of general
administration funds to administer the cities'CDBG funds.
HUD also directed the County to implement additional administrative tasks making
it difficult for Planning and Building to reduce costs to match the level of funding
provided in these grants. This situation results in an impact to the General Fund of
approximately$232,463 in FY 2016-17. This is down from $254,518 in FY 2015-16.
Staff continues to pursue options to reduce administrative workload in order to
reduce the impact to the General Fund.
Similar to the previous Cooperative Agreement, the proposed Agreement 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. Because the City
does not allocate funds for this CDBG category and instead provides funding to local
non-profits through the Jim Guthrie Community Service Grant Program, restrictions under
the CDBG public service activities have limited impact to the City. This would not be the
case if the City chose to eliminate this local grant program.
If the City Council decides to approve the Agreement, it must be executed and
transmitted to the County by June 14, 2017. The County Board of Supervisors is
scheduled to consider the Agreement on July 11, 2017.
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.
Item 9.f. - 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 13, 2017
PAGE 4
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 the 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.
PUBLIC NOTIFICATION AND COMENTS:
The Agenda was posted at City Hall and on the City's website in accordance with
Government Code Section 54954.2. At the time of report publication, no comments have
been received.
Item 9.f. - 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, AND THE
EMERGENCY SOLUTIONS GRANT PROGRAM FOR
FISCAL YEARS 2018 THROUGH 2020
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, and the Emergency Solutions Grant Program for Fiscal Years 2018 through
2020 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
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
Item 9.f. - Page 5
RESOLUTION NO.
PAGE 2
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 2017.
Item 9.f. - Page 6
RESOLUTION NO.
PAGE 3
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.f. - Page 7
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, AND THE EMERGENCY
SOLUTIONS GRANT PROGRAM FOR FISCAL YEARS 2018
THROUGH 2020
THIS AGREEMENT is made and entered into this day of
2017, 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." The 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 Program
(hereinafter referred to as "CDBG"), the HOME Investment Partnerships Act
Program (hereinafter referred to as "HOME"), and the Emergency Solutions
Grant Program (hereinafter referred to as "ESG") are consolidated under Title I of
the Act; and
WHEREAS, the County has requested of the federal Department of
Housing and Urban Development, hereinafter referred to as "HUD," designate
the County 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
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Item 9.f. - Page 8
WHEREAS, if HUD redesignates the County as an urban county, then the
County may also be eligible to receive funds from the HOME Program and the
ESG Program; and
WHEREAS, the CDBG Regulations issued pursuant to the Act provide
qualified urban counties must submit an application to the HUD for funds, and
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, and ESG
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, and ESG
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,
2018 through June 30, 2021. 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
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Item 9.f. - Page 9
writing of its right not to participate in the urban county for a successive
three-year term.
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 this
Agreement for the relevant qualification period.
This Agreement remains in effect until the CDBG, HOME, and ESG
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 this Agreement while this 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 Program, the HOME
Program, and the ESG Program.
SECTION II. Preparation and Submittal of CDBG Funding Applications.
A. Inclusion of City as Applicant. The Parties agree the City shall be
included in the application the County shall submit to HUD for Title I
Housing and Community Development Block funds under the Act.
B. Consolidated Plan. The 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 the City in the
County's consolidated plan.
C. Application Submittal. The 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, 2018, and to hold public hearings as
required to meet HUD requirements.
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Item 9.f. - Page 10
D. County Responsibility. Parties agree 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, 2018.
E. Grant Eligibility. In executing this Agreement, the Parties understand
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, or ESG Programs except through the urban
county.
SECTION III. Program Administration.
A. Program Authorization. The Director is hereby authorized to carry out
activities that will be funded from the annual CDBG, HOME, and ESG
Programs from fiscal years 2018, 2019, and 2020 appropriations and
from any program income generated from the expenditure of such
funds.
B. Responsibilities of Parties. The Parties agree the County shall be
the governmental entity required to execute any grant agreement
received pursuant to the CDBG, HOME, and ESG 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, and ESG under County
programs. County agrees to perform program administrative tasks
such as environmental clearance under the National Environmental
Policy Act (NEPA), subrecipient agreements and monitoring of
subrecipients. The City agrees to act in good faith and with due
diligence in performance of the City obligations and responsibilities
under this Agreement and under all subrecipient agreements. The 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. The 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.
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Item 9.f. - Page 11
SECTION IV. Use of Program Funds.
A. Allocation of CDBG funds. All funds received by the 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 the County
shall make available to the City a total amount of CDBG funds
equal to that which the City would have been entitled had it applied
separately as a "metropolitan city," using HUD allocation formulas
as applied by the County, except that an amount equal to thirteen
(13) percent of the 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. Further, with respect to the availability of the
funds, the County agrees to fully cooperate and assist the City in
expending such funds.
2) Non-Metropolitan Cities' Allocation. The 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 the 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) Urban County. Parties shall not recommend a CDBG award of less
than $8,000 for any one project or program due to the staff cost of
processing such awards in compliance with federal requirements.
A project or program recommended to receive an amount less
$8,000 can still receive an award if any other Party or Parties make
an award, which is aggregated to be greater than $8,000.
B. Availability of Funds. The 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.
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It is understood by the Parties, hereto, 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. The County hereby
acknowledges the 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 the City's
plan; and further, the County agrees that after the availability of CDBG
program funds to the City, the County shall not use its remaining
balance of funds in any way that would limit the City's ability to use its
CDBG funds to the maximum extent allowed by HUD for
administrative, public service, or program purposes.
D. Income Generated. The 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 the 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. The 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. The 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
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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. The Parties agree 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.
I. Consolidated and Further Continuing Appropriations Act. The City
may not sell, trade, or otherwise transfer all of any portion of CDBG
funds to another metropolitan city, urban county, unit of general local
government, or Indian tribe, or insular area that directly or indirectly
receives CDBG funds in exchange for any other funds, credits or non-
Federal considerations, but must use such funds for activities eligible
under Title I of the Act.
J. Special Provisions for the Urban County.
(1) To affirmatively further fair housing and implement the Analysis of
Impediments to Fair Housing Choice or better known as the Fair
Housing Plan, the cities are encouraged to contribute CDBG funds to
affordable housing projects when there is an eligible CDBG component
in the proposal that is located within the city's jurisdiction.
(2) The County will enforce remedies for noncompliance pursuant to 2
CFR Part 200.338 and allowed per 2 CFR Part 200.207 by pulling
CDBG funds for underperforming projects or programs not
implemented during agreed timeframe identified in the subrecipient
agreement.
SECTION V. Amendment or Extension of Agreement.
A. Subrecipient Agreement. For each fiscal year during the term of this
Agreement, the County and the City shall enter into a Subrecipient
Agreement, prepared jointly by the County and the City, which
identifies a project or program that the County will administer with the
City's CDBG entitlement funds during that program year. The
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Item 9.f. - Page 14
Subrecipient Agreement will set forth the project changes, time
schedule for completion of the project(s), deliverable checklist, 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, then the County may extend the
schedule for project completion, as allowed by federal regulations.
B. Amendments. Any amendments to this Agreement shall be in writing.
Parties agree 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;
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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 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
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(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.
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 Recordkeepinq.
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. The 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 the County on reasonable notice during the normal
business hours of the City.
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NOW, THEREFORE, the Parties hereto have caused this 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 this
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.
APPROVED AS TO FORM AND EFFECT:
RITA L. NEAL
County Counsel
BY:
Deputy County Counsel
Date:
By:
Chairperson of the Board of Supervisors
Date:
ATTEST:
Tommy Gong, County Clerk
Date:
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NOW, THEREFORE, the Parties hereto have caused this 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.
CITY OF ARROYO GRANDE
JIM HILL, MAYOR
Date:
ATTEST:
KELLY WETMORE, CITY CLERK
Date:
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
Date:
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
Date:
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