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R 5296 RESOLUTION NO. 5296 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 2024/25 THROUGH 2026/27 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 2024/25 through 2026/27 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 RESOLUTION NO. 5296 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 Barneich, seconded by Council Member George, and by the following roll call vote, to wit: AYES: Council Members Barneich, George, Guthrie, and Mayor Ray Russom NOES: None ABSENT: Council Member Secrest the foregoing Resolution was passed and adopted this 13th day of June 2023. RESOLUTION NO. - PAGE 3 CAREN RAY SS*M, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: I/7' itt, WHITNEY Mc Il NALD, CI MANAGER APPROVED AS TO FORM: IS ROSE , CI ATTORNEY RESOLUTION NO. 5296 PAGE 4 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 2024/25 THROUGH 2026/27 THIS COOPERATION AGREEMENT is made and entered into on the date and year last written below, 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 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 RESOLUTION NO. 5296 PAGE 5 WHEREAS, the CDBG Regulations issued pursuant to the Act provide qualified urban counties must submit an application to 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 Social Services (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, 2024, through June 30, 2027. 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. The County will notify the City in writing prior to renewing the Cooperation Agreement for the Urban County for an additional three (3) year term 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 RESOLUTION NO. 5296 PAGE 6 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 program 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, 2024, and to hold public hearings as required to meet HUD requirements. 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, 2024. 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 RESOLUTION NO. 5296 PAGE 7 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 2024, 2025, and 2026 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. 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 RESOLUTION NO. 5296 PAGE 8 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 than $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. 4) Administrative Costs. The County hereby acknowledges the City, as a subrecipient defined in 24 CFR 570.500(c) and its eligibility to incur administrative costs per 24 CFR 570.206, or as otherwise negotiated and approved in the Action Plan for related Planning and Capacity Building costs per 24 CFR Part 570.205. The City shall submit invoices and supporting documentation to the County for reimbursement of eligible administrative costs in accordance with the following schedule: 2024 Program Year: Monday, June 23, 2025 2025 Program Year: Monday, June 22, 2026 2026 Program Year: Monday, June 21, 2027 Administrative funds that are not drawn down following the review and approval by county staff by the deadlines above will be used to reimburse the County's administrative costs. 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. 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 RESOLUTION NO. 5296 PAGE 9 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. Public Services Costs. 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 public service 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 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. RESOLUTION NO. 5296 PAGE 10 Consolidated and Further Continuing Appropriations Act. The City may not sell, trade, or otherwise transfer 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 or County'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 under preforming 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 Subrecipient Agreement will set forth the minimum requirements found at 24 CFR 570 and as otherwise required by applicable federal laws. In addition, the agreements will provide 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, 24 CFR part 1, the Fair Housing Act, RESOLUTION NO. 5296 PAGE 11 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; regulations at 24 CFR part 100, and will affirmatively further fair housing and other applicable laws. Furthermore, the Parties agree to implement regulations at 24 CFR part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR part 8, Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975, and the implementing regulation at 24 CFR part 146, and Section 3 of the Housing and Urban Development Act of 1968. B. Community Participation. The Parties agree to comply with federal community participation requirements of 24 CFR Part 91 and provide community members with the following. 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. Community Participation Plan. The Parties agree to follow a community participation plan which: 1) Provides for and encourages community members participation, particularly those of low or moderate income who reside in slum or blighted areas where CDBG funds are proposed to be used; 2) Provides community members 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 community members' 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 a timely written answer to written complaints and grievances, within 15 working days, where practicable. RESOLUTION NO. 5296 PAGE 12 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 executed. 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 RESOLUTION NO. 5296 PAGE 13 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 upon reasonable notice during the normal business hours of the City. NOW, THEREFORE, it is agreed between the parties hereto that: 1. Agreement Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile or scanned signature by any of the Parties and the receiving Party may rely on the receipt of such document so executed and delivered by facsimile or email as if the original had been received. 2. The Parties hereto have caused this Agreement to be executed and attested by their proper officer thereunder duly authorized. RESOLUTION NO. 5296 PAGE 14 IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and the year set forth below. COUNTY OF SAN LUIS OBISPO, A Political Subdivision of the State of California Chairperson of the Board of Supervisors ATTEST: JOHN NILON Ex-Officio Clerk of the Board of Supervisors By: Deputy Clerk Dated: [SEAL] APPROVED AS TO FORM AND LEGAL EFFECT: RITA L. NEAL County Counsel By: Deputy County Counsel Dated: RESOLUTION NO. 5296 PAGE 15 CITY OF ARROYO GRANDE BY: Caren Ray Russom MAYOR Date: ATTEST: BY: Jessica Matson CITY CLERK Date: APPROVED AS TO CONTENT: BY: Whitney McDonald CITY MANAGER ; . Date: APPROVED AS TO FORM: BY: Isaac Rosen CITY ATTORNEY Date: OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5296 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13th day of June, 2023. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 15th day of June, 2023. SSICA MATSON, CITY CLERK