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HomeMy WebLinkAbout07/06/1999, C9 - COOPERATION AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO REGARDING CITY PARTICIPATION IN THE URBAN COUNTY FEDERAL GRANT PROGRAM FOR PROGRAM YEARS 2000 THROUGH 2003. council M-dwgD- j aGEnaa aEpoin rg CITY OF SAN LUIS O.BISPO O FROM: — Arnold Jonas, Community Development Director PREPARED BY: Jeff Hook, Associate Plann SUBJECT: Cooperation Agreement with the County of San Luis-Obispo regarding City participation in the Urban County federal grant program for Program Years 2000 through 2003. CAO RECOMMENDATION: Adopt resolution approving the Cooperation Agreement and authorizing the Mayor to sign the agreement for the City. DISCUSSION The Urban County Partnership In 1993 the City of San Luis Obispo, along with the cities of Atascadero, Grover Beach, Paso Robles, and Pismo Beach, entered into a Cooperation Agreement with the County of San Luis Obispo to create a new partnership to apply for and receive federal grant funds. The City of San Luis Obispo took the lead in crafting the agreement that established what was to become the "Urban County", a grant partnership recognized by the U.S. Department of Housing and Urban Development (HUD). From the outset, the partnership was beneficial for both the City and County, and in staff's view, remains so. Starting with the first program year in 1994 through Program Year 1998, the Urban County received CDBG allocations totaling about $14.3 million to fund various housing, public works, and social services benefiting low and moderate income persons. Of that total, the City of San Luis Obispo received an allocation of about $4.6 million, or 32 percent. Under the terms of this program, the participating cities and County are eligible to receive formula-based allocations directly from the federal government under four grant programs: Community Development Block Grant (CDBG); Home Investment Partnership (HOME); Emergency Shelter (ESG); and Housing For People with AIDS (HOPWA). Each year, an amount equal to fifteen percent of total net Urban County funding — called the "Special Urban Projects Fund" — is available to the participating cities on a competitive basis for grant activities benefiting more than one jurisdiction. Since the partnership began, City activities have received Special Urban Projects funding every year, totaling $606,783. Most of this went to the City's three homeless facilities: Women's Shelter, SLO Homeless Shelter and the Prado Road Day Center. These are extra funds, beyond the City's base entitlement, which would not have been available to the City if it were not part of the Urban County. As a HUD-designated "metropolitan city", the City has several options with regard to receiving federal grant funds: C9-1 Staff Report Page 2 1) Rejoin the Urban County to receive CDBG, HOME, ESG and HOPWA funds through the County; 2) Became a stand-alone CDBG entitlement jurisdiction to receive CDBG and HOME funds directly-from HUD; or 3) Decline a formula CDBG grant allocation from HUD and apply for competitive State Council-CDBG grants. Option 1 continues to be the most advantageous strategy for the City. As part of the Urban County, the City has fewer administrative obligations (and hence, costs) than it would have as a stand-alone entitlement jurisdiction — which it could choose to do under HUD rules — but receives the same level of CDBG funding and exercises complete autonomy in funding decisions. Another "plus" of this approach that the City Council supported was that by forming one countywide grant entity, the participating cities and unincorporated county were able to qualify for more federal grant funds to the County as a whole than if entitled communities acted independently. Under option 2, the City would receive CDBG and possibly, HOME funding directly from HUD. The amount of CDBG funding received would be comparable to that received under option 1. HOME funding is questionable and would depend on federal funding levels and whether the City met HOME funding criteria. Option 3, while technically feasible, is an unlikely scenario for the City, since the State has not certified the City's General Plan Housing Element as being in compliance with State requirements. The City "self-certified" its Housing Element after protracted efforts to work with the State Department of Housing and Community Development regarding "fair share" housing requirements were unsuccessful. Consequently, the City would have little chance of successfully competing for State-awarded CDBG funding. The Cooperation Agreement The legal and procedural basis for the Urban County Program is the three-year Cooperation Agreement. It establishes city and county responsibilities, terms for allocation of funds and use of program income, and the requirements to comply with federal rules. The original agreement was executed by the city mayors and the Chairman of the Board of Supervisors in July 1993. If the City of San Luis Obispo wishes to remain part of the Urban County, a new three-year cooperation agreement with the County must be approved by the City Council, executed and transmitted to HUD prior to July 16, 1999. The Board of Supervisors is scheduled to act on the Cooperation Agreement at its regular meeting on July 13, 1999, which is the last possible date prior to the HUD deadline. The new Cooperation Agreement follows closely the form and content of the current agreement. The only significant changes are technical in nature, relating to the retention of program income by cities who opt out of the Urban County to receive their entitlement directly C9-2 Council Staff Report Page 3 from HUD; and a clarification of County assistance to cities in implementing block grant activities. The changes are minor, and would have a beneficial or neutral effect for cities. The attached letter from County Administrative Officer David Edge invites the City of San Luis Obispo to participate in the Urban County for the next three-year period, and describes how the allocation formula would work. By entering into the Cooperation Agreement, the City will be eligible to'receive CDBG, HOME, ESG, and HOPWA grants directly from the federal government. Under the current Cooperation Agreement, CDBG and HOME programs have run smoothly and the cities/County relationship has been cooperative and cordial. Interestingly,jurisdictions which up to now had chosen to go it alone (Arroyo Grande, Pismo, Morro Bay) are now making overtures that they want to join the Urban County. This is a mutually beneficial relationship: the County benefits by receiving a larger allocation than would be possible without City of San Luis Obispo participation (due to a HUD formula which takes into account population, poverty level and overcrowding); the City benefits by receiving administrative services from the County at the same level of funding which would be possible if the City independently received funding directly from HUD. To the extent that the City Council's funding allocations meet HUD rules, the Cooperation Agreement requires the County to "pass through" the funds as determined by the City Council. In essence, then, the City Council allocates its CDBG funds independently even though it is part of the Urban County. If the City chose to receive funds directly from HUD, it would assume additional grantee responsibilities which are now performed by County staff. These include: • Prepare and submit the Consolidated Plan One-Year Action Plans to HUD annually; • Prepare all federal environmental documents and handle public notices and requests for release of funds; • Prepare annual grantee performance reports and submit to HUD; • Hold public needs hearings twice a year; • Publish and maintain a Community Participation Plan; • Perform grantee monitoring and enforcement for HUD rules (Davis-Bacon, Fair Housing, Tenant Relocation, financial auditing requirements); • Public information services. These are all tasks that the City must assume if it decides to receive funds directly from HUD. The City's Approach The City's participation in the Urban County grant program is guided by the Cooperation Agreement and by City policies and procedures developed within HUD guidelines. The City's grant procedures are described in "Community Development Block Grant and Home Grants", a brief guide prepared by City staff. It addresses the annual grant cycle, grant eligibility, environmental review, reporting and record keeping, how the City's program works, the program manager's job and other key information for staff, decision makers and the public. C9-3 Council Staff Report Page 4 City Council members have expressed interest in reviewing grant procedures, and staff anticipates coming back to Council this Fall to focus on this aspect of the City's program. FISCAL IMPACT Staff anticipates an overall beneficial effect of CDBG funding on the_City's fiscal condition, since the costs to administer the program are funded through the grant itself, up to a maximum of 20 percent of the total funding. Up to 20 percent of the City's allocation could be used for general grant administration, including additional staff costs to administer the CDBG program. Currently, the City allocates ten percent of grant funding for administrative costs. The City Council may modify the amount of CDBG funds allocated for administrative costs annually, when it considers the Consolidated Plan for the coming program year. ALTERNATIVE 1. Do not participate in the Urban County. With this approach, no cooperation agreement is needed. The Council could direct staff to proceed with the CDBG application process independently as an "Entitlement City" to receive formula-based grants directly from HUD. Staff does not recommend this approach because the current Urban County program has proven effective, and the "go it alone" approach would result in increased administrative costs and potentially less funding since the Special Urban County Fund would not be available to the City. Staff estimates that initially, the equivalent of one half of a planner position would need to be dedicated to administering the CDBG/HOME program, increasing to one full time position within three years as the responsibilities and number of grants and projects managed grow. Attachments: -Draft Resolution -Exhibit A: Draft Cooperation Agreement -Letter from County Administrator i9L:COORV99-r1A C9-4 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY AND COUNTY OF SAN LUIS OBISPO ESTABLISHING JOINT PARTICIPATION IN AN URBAN COUNTY GRANT PROGRAM FOR PROGRAM YEARS 2000 THROUGH 2003. WHEREAS, the County of San Luis Obispo ("County"), a political subdivision of the State of California, and the City of San Luis Obispo ("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 ("parties") 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, as part of the federally designated "San Luis Obispo - Atascadero - Paso Robles Metropolitan Area", wishes to defer its entitlement status to the County for the mutual benefit of both jurisdictions; and WHEREAS, HUD requires that the parties enter into a cooperation agreement to define their rights and obligations as a prerequisite of participation in the Urban County program; THEREFORE, BE IT RESOLVED BY THE SAN LUIS OBISPO CITY COUNCIL AS FOLLOWS: C9-5 Cooperation Agreement Page 2 SECTION 1. Findin 1. 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. 2. 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 Urban County entitlement program, thus making available funds for a variety of housing, economic development, and public services programs not otherwise available. 3. The Parties intend to enter into subrecipient agreements which will establish administrative policies and procedures, performance standards and funding schedules, project descriptions, and guidelines for funding specific grant programs and projects. 4. The proposed Cooperation Agreement is not a "project" for purposes of compliance with the provisions of the California Environmental Quality Act and the City's Environmental Guidelines, and is therefore, exempt from environmental review. SECTION 2. Authorization to enter into Cooperation Agreement. Pursuant to Federal Regulations 24 CFR 570.501 (b), et. seq., the City Council hereby authorizes the Mayor to enter into a cooperation agreement, Exhibit "A", with the County to enable joint participation in the Urban County Block Grant program administered by the US Department of Housing and Urban Development (HUD). SECTION 3. City Administrative Officer authorized to act for City. The City's Administrative Officer is hereby authorized to act on behalf of the City in connection with the implementation of the agreement, on-going operation of the Community Development Block Grant Program, and all other activities necessary to carry out the intent of the agreement. C9-6 Cooperation Agreement Page 3 On motion of seconded by and-on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 1999. Mayor Allen K. Settle ATTEST: City Clerk APPROVED: C' A ey jb/L=coWagm"-rp C9-7 EXHIBIT A A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THE HOME INVESTMENT PARTNERSHIPS PROGRAM AND THE EMERGENCY SHELTER GRANT PROGRAM FOR FISCAL YEARS 2000 THROUGH 2003 THIS AGREEMENT is made and entered into this day of , 1999, by and between the County of San Luis Obispo, a political subdivision of the State of California, hereinafter called"County";and the City of San Luis Obispo,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; WHEREAS, Title I of the Act is entitled "Community Development" and consolidates several existing categorical programs for housing and community development into new programs for such housing and development under block financial grants. The primary objectives of Title 1 are the improvement and development of metropolitan cities and urban counties or communities by providing financial assistance annuallyfor area-wide plans and for housing, public services and public works programs; WHEREAS,the City of San Luis Obispo has been designated as an entitlement city by the U.S. Department of Housing and Urban Development (HUD), and it has been determined that the City is eligible to receive Community Development Block Grant 1 C9-8 (hereinafter referred to as "CDBG") funds under HUD guidelines; WHEREAS, the County of San Luis Obispo has requested of HUD that the County be designated as an "urban county", and County has been informed preliminarily, subject to final determination, that it will qualify as an urban county and 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; WHEREAS,The City desires to participate jointly with the County in said program, and is willing to defer its entitlement to the County under the terms of this Agreement; WHEREAS, if HUD designates the County as an urban county, the County may also be eligible to receive funds from the Home Investment Partnerships Program (hereinafter referred to as "HOME'), the Emergency Shelter Program (hereinafter referred to as "ESG"),and the Housing Opportunities for Persons with Aids Program(hereinafter referred to as "HOPWA"); WHEREAS, The Housing and 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; WHEREAS, as the urban county Applicant, the County must take responsibility and assume all obligations of an applicant under federal statutes, including: the analysis of needs,the setting of objectives,the development of community development and housing assistance plans, the consolidated plan, and the assurances or certifications; 2 C9-9 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 County Administrative Officer of the County of San Luis Obispo (hereinafter referred to as "CAO") 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. The term of this Agreement shall be for a period of three (3) years commencing on the date specified below and extending through federal fiscal years 2000,2001,and 2002. 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 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 Shelter 3 C9-10 Grant (ESG) Program, and the Housing Opportunities for Persons With AIDS (HOPWA) Program. SECTION 11. 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 1,2000,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, 2000. E. Grant Eligibility. In executing this Agreement, the Parties understand that they 4 C9-11 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, unless the urban county does not qualify for or declines to accept formula allocations under these programs. SECTION III. Program Administration. A. Program Authorization. County Administrator is hereby authorized to cant' out activities which will be funded from the annual CDBG, HOME, ESG and HOPWA programs from federal fiscal year 2000,2001,and 2002 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 that County shall thereby become legally liable and responsible thereunder for the proper performance of the plan and CDBG, HOME, ESG and HOPWA urban 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 5 C9-12 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. Parties agree that County shall"pass through" the allocated CDBG funds to City as subrecipient within 30 days of written request by City to fund specific projects or programs, up to a total amount equal to that to which City would have been entitled had it applied separately as a "metropolitan city', using HUD allocation formulas as applied by County, and that no "administrative" fee or other fees will be deducted by the County to meet its obligations under the terms of this Agreement. Further, with respect to such"pass through"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 6 C9-13 county formula award from HUD increases as a result of the HUD allocation formulas as applied by County. 3) Special Urban Projects Fund. It is further agreed that County shall set aside a portion of CDBG funds as a Special Urban Projects Fund, available to all participating incorporated cities and the County in San Luis Obispo County on a competitive basis. Amount of the Fund shall equal fifteen (15) percent of the urban county formula CDBG funding after deducting the allocations for cities as described in paragraphs 1 and 2 above. The Special Urban Projects Fund shall be awarded annually by the County Board of Supervisors, following criteria developed jointly by County and the cities participating in the program. 4) County allocation. City agrees that urban county formula CDBG funds remaining after deducting allocations for cities and the Special Urban Projects Fund comprise the County allocation. B. 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 cant' out City's plan; and further, County agrees that after"pass through"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 CDBG funds to the maximum extent allowed by HUD for administrative, public service, or program purposes. C. 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 7 C9-14 retained by City subject to the provisions of this Agreement,the Act and its Regulafions. Any program income retained must only be used for eligible activities in accordance with all CDBG requirements as then apply. D. 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. E. 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) days of such change of use. F. Reimbursement Upon Sale or Transfer. City shall reimburse the County in an amount equal to the current fair market value, less any portion thereof attributable to expenditures of non-CDBG funds, of property acquired or improved with CDBG funds that is sold or transferred for a use which does not qualify under the Regulations. City shall inform the County of such program income within thirty (30) days if the income 8 C9-15 results from the sale or change of use of property acquired or improved with CDBG funds. 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 or objections by City or county as to the allocation, disbursement, use, or reimbursement of CDBG funds, the Parties agree to accept HUD's binding arbitration and written determination as to the appropriate resolution or disposition of funds. 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, that 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 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 unforseen or uncontrollable circumstances, the City may extend the schedule for project completion, as allowed by federal regulations. B. Amendments. Parties agree that a 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 9 C9-16 issued pursuant to the Act. SECTION VI. Compliance with Federal Regulations. A. General. Parties agree to take all actions necessary to comply with the urban county's certification required by section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, 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 Policies Act of 1970*and other applicable laws. B. Citizen Participation. 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. Parties agree to follow a citizen participation plan which: 1) Provides for and encourages citizen participatidn, particularly those of low or moderate income who reside in slum or blighted areas where CDBG funds are proposed to be used; 2) Provides 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 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 for handicapped persons; 4) Provides for a timely written answer to written complaints and grievances,within 10 C9-17 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. D. 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 of-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) Certification 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. 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 Parties certify that they have adopted and are 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 11 C9-18 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 Recordkeeaing. A. HUD Certification. The CAO or the City Attorney are 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 certifications executed by the CAO or City Attorney 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. IN WITNESS WHEREOF,the City Council of the City of San Luis Obispo and the Board of Supervisors of the County of San Luis Obispo have authorized this Cooperation Agreement and direct its execution by their respective chief executive officers on this _ day of_, 1999. 12 C9-19 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 law,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. By: Timothy McNulty, Deputy County Counsel APPROVED AS TO FORM AND LEGAL EFFECT: By: City Attorney COUNTY OF SAN LUIS OBISPO By: Chairman of the Board of Supervisors ATTEST: Julie Rodewald, County Clerk 13 C9-20 CITY OF SAN LUIS OBISPO: BY: -- - - - -' - - --- - - - -- -- Mayor .ATTEST: City Clerk 1.4. i C9-21 County of San Luis Obispo COUNTY GOVERNMENT CENTER, RM. 370 • SAN LUIS OBISPO, CALIFORNIA 93408 • (805) 781-50U May 7, 1999. John Dunn, City Administrative Officer DAVID EDGE City of San Luis Obispo COUNTY ADMINISTRATOR 990 Palm Street San Luis Obispo, Ca 93401 Dear John: SUBJECT: NOTICE OF OPPORTUNITY TO BE INCLUDED IN URBAN COUNTY OF SAN LUIS OBISPO FOR PURPOSES OF FEDERAL CDBG, HOME AND ESG FUNDING PROGRAMS The purpose of this letter is to notify you that the City of San Luis Obispo has the opportunity to participate with other cities and the county in qualifying as an "urban county"for fiscal years 2000/2001 - 2003/2004. Urban counties receive-annual, formula-based grants directly from the federal Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and the Emergency Shelter Grants (ESG) programs. San Luis Obispo has been an urban county during fiscal years 1994/1995 through 1999/2000. The participating cities have included Atascadero, Grover Beach, Paso Robles, Pismo Beach and San Luis Obispo, although Pismo Beach did not participate during the past three years. Cooperative agreements between the participating jurisdictions established a formula allocating CDBG funds by jurisdiction. The HOME and ESG funds were not formally divided up, but the cities provided recommendations to the county on these programs. As a HUD-designated "metropolitan city," your city can choose from the following options for purposes of the CDBG program: 1. Join the urban county to receive CDBG allocations through the county. 2. Become a stand-alone CDBG entitlement jurisdiction to receive CDBG funds directly from HUD. 3. Decline a formula CDBG allocation or entitlement and become an applicant to the competitive state CDBG program. The county welcomes any cities that wish to join the urban county, and proposes to allocate an amount of CDBG funds to each participating ciiy equivalent to the amount that city's population base increases the urban county CDBG entitlement. HUD bases the urban county CDBG entitlement on population, poverty and overcrowded hol m. Here are projected year 2000 CDBG allocations under this proposed framework./,0222 John Dunn 2 May 7, 1999 Projected CDBG allocations for the year 2000 based on 1990 census data, assuming $2,919,000 total CDBG award to urban county and all cities participating in the urban county: --- ------------T__----___T--_---T------ T-----------1 Jurisdiction ; Population ; Poverty ; Over- ; Percent ; Amount of Persons crowded of CDBG CDBG 1 Housing 1 funds 1 funds �_-- -- --;--------- -------------4--------------+--------------4 Arroyo Grande 1 14,378 1 1,184 1 221 1 5.214% 1 $152,197 ----------_=-------- --------------4---------------------------__--_ �_— Atascadero 23,138 1,805 1 405 1 8.461% 1 $246,984 Grover Beach 11,656 1,465 1 398 1 6.426% 1 $187,579 ----------�-------—------------— 4----------4----------a 9,664 1 976 1 206 1 4.176% 1 $121,908 Morro Bay I-------------------- ------------i------------------�- �- ' Paso Robles 18,583 1 2,563 1 554 1 10.256% 1 $299,381 ; 1----------------- ------------ L- _..-----_------ -- --4 Pismo Beach 7,669 570 it1082.605% $76,037 ------------------------------- ---------- ----------�--- -- ----------a San Luis Obispo 41,958 11,140 1 1,094 1 32.927% $961,150 -- — --------- ----------- -------------4----------- --------a Unincorporated county 190,116 1 6,666 11 1,808 1 33.492% 1 $977,645 I---------------- _-- i --- -T-- T----------- ----------a SLO Urban County 217,162 25,185 4,573 100.000% ; $2,919,000 Here are a few factors you should consider before deciding whether to continue as part of the urban county: 1. As lead agency for the urban county, the County will perform most of the work in preparing the five-year consolidated plan, the annual action plans, and the various federally required reports, conducting citizen participation efforts, and providing training to City staff on federal CDBG requirements, while the City's annual CDBG allocation will be the same as it would if the City were a stand- alone HUD grantee. City staff will still be responsible for some administrative activities in order to comply with federal requirements, but the city will be able to use up to 20 percent of its CDBG allocation to pay the cost of staff time needed. 2. If the City's housing element complies with state law, the City can obtain CDBG funds through the state_ Under the state's competitive CDBG program, non- entitlement cities and counties are eligible to compete for single grants of up to $500,000 each year, ora combination of grants of up to $830,000. However, the state CDBG program is highly competitive, resulting in less flexibility in using CDBG funds and in denial of some applications. 3. Also, San Luis Obispo residents can benefit from more HOME funds through the state than through the urban county. The state offers HOME grants on a competitive basis of up to $1,000,000 each year. 4. Once the City enters into the three-year cooperative agreement required to become part of the urban county, it cannot drop out of the urban county until the three years pass. C9-23 John Dunn 3 May 7, 1999 Also, the county would like your comments on the potential merit of developing a county-wide approach to utilizing available CDBG funding for operation of homeless and/or other public services. In the past, the City of San Luis Obispo and the County have contributed approximately 17 percent of their respective CDBG funds to support operation of-homeless programs, which have been based in the City of San Luis Obispo (buMave served homeless persons from throughout the county). The other cities have not yet contributed CDBG funding for these homeless programs. This issue need not be-resolved now, since that would make meeting HUD's June deadline for executing the 3-year cooperative agreements difficult. Rather, the County prefers to address the issue in the context of the year 2000 subrecipient agreements, which will be finalized in July or August of the year 2000. If your city wishes to remain part of the urban county, then a new three-year cooperative agreement with the county must be executed and transmitted by the county to HUD prior to July 16, 1999. We will transmit a draft cooperative agreement to you soon. We look forward to working with you over the next three years, should you rejoin the urban county. Please feel free to call Dana Lilley (at 781-5715) if you have any questions about this matter. Sincerely, David Edge County Administrative Officer cc: Jeff Hook, Associate Planner, City of San Luis Obispo Bryce Tingle, Acting Director, County Planning and Building Department Wayne Itoga, CPD Representative, HUD, Los Angeles C9-24 'LO AMMOM Housing Authority 487 Leff Street Post Office Box .1289 San Luis Obispo CA 93406-1289 of the City of. . (805) 543-4478 fax (805) 543-4992 San Luis Obispo Executive Director-Secretary � e J Maylan June 14, 1999 ''" The Honorable Mayor Allen K. Settle and City Council Members �l% City Hall City 'of San Luis Obispo 990 Palm Street "(1017 San Luis .Obispo, CA 93403 Dear Mayor Settle and Council Members: . You have previously approved. a : sum of. $3001,000 in Community Development Biock Grant funding-. .for; the acquisition of :an : affordable housing site in the Margarita; Expansion .area. We have -been in negotiations, on property': in. thAt . area for . quite some time now. And while those negotiations have been cordial; and may yet result, 'in a sale to us, no sal"e is pending. Recently we became aware of a site At the intersection of Pacific and - Carmel Streets' which i's' zoned properly. And otherwise seems appropriate for.. the 'development of senior citizen housing. .-That property was brought to-.the attention of;. our.:Board of Commissioners and they .authorized purchase o,f the site': We;will ;close...escrow on the site before the end of the'month. . Iinitiai •estimates are that we can develop . 20.:units .on the "site, the' .saiae .'number, of unit's we are negotiating for ; :in' the . Margarita area:. As you :are aware we have consistently maintained that we can build affordable housing in the community if' w.e : can secure : land at. no cost . to the development. Typically . that' `has .:.meant: the use of Community bevelopment Biock; Grani -'money to .acquire 'the site;. i.e. Brizzolara Street,. Poinsettia .Stieef-i and Railroad Station at Pismo. and - Buchbn ; Street, -developments . are all' , illustrative'. of this- concept." Thus , we are "asking your permission to, transfer the .funding, previously set-aside- for the acquisition `of, the Margarita site to . the Pacific-Carmel Street site. At, the same time ,we are as.k'ing,you to 'transfer the monies from the Housing Authority to our-non-profit affiliate, San Luis Obispo Non-Pro fi't 'Housing.,Corporation..who will actually develop. the senior units : We will continue to explore the purchase of the Margarita site and funds for that purchase, when it occurs, could come from a HELP loan which we are anticipating from the California Housing Finance Agency or some of the funds which are now being returned to us from the successful operation of our tax-credit developments already in management in the City. Sincerely, "�, O George J. Moylan Executive Director /c: J. Dunn J. Hook