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HomeMy WebLinkAbout09-16-2014 C7 Amendment to Cooperation Agreement with CountyCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Derek Johnson, Community Development Director Prepared By: Tyler Corey, Housing Programs Manager SUBJECT: AMENDMENT TO COOPERATION AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO REGARDING CITY PARTICIPATION IN THE URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FEDERAL PROGRAM FOR FISCAL YEARS 2015-2017 RECOMMENDATION Adopt a resolution approving an amendment to the Cooperation Agreement with the County of San Luis Obispo for participation in the Urban County federal grant program for fiscal years 2015-2017. BACKGROUND On June 17, 2014, the City Council approved a Cooperation Agreement between the City and County for participation in the San Luis Obispo Urban County for fiscal years 2015-17 (Attachment 1). The U.S. Department of Housing and Urban Development (HUD) has reviewed the agreement and determined that it must be amended to include language required by the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2014, Public Law 113-76. Staff is bringing forward an amendment to the Cooperation Agreement that includes HUD’s recommended language outlined below for Council consideration (Attachment 2): The City may not sell, trade, or otherwise transfer all or 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. ENVIRONMENTAL REVIEW The project is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). The project is an amendment to the Cooperation Agreement between the City and County for joint participation in administering the CDBG grant program for fiscal years 2015-2017. Each grant request approved for funding will be subject to CEQA at the time the project is filed. It can be seen with certainty that the proposed Cooperation Agreement will have no significant effect on the environment. FISCAL IMPACT HUD’s proposed amendment to the 2015-2017 Cooperation Agreement will have no financial effect on the City. 9/16/2014 C7 C7 - 1 2015-2017 Amendment to Cooperation Agreement with County Page 2 ATTACHMENTS 1. Resolution No. 10533 (2014 Series) 2. Amendment to 2015-2017 Cooperation Agreement T:\Council Agenda Reports\2014\2014-09-16\2015-17 Amendment to Cooperation Agreement with County (JohnsonCorey)\C5 - 2015-17 Amendment to CDBG Cooperation Agreement with County.docx C7 - 2 Attachment 1 C7 - 3 Attachment 1 C7 - 4 Attachment 1 C7 - 5 Attachment 1 C7 - 6 Attachment 1 C7 - 7 Attachment 1 C7 - 8 Attachment 1 C7 - 9 Attachment 1 C7 - 10 Attachment 1 C7 - 11 Attachment 1 C7 - 12 Attachment 1 C7 - 13 Attachment 1 C7 - 14 Attachment 1 C7 - 15 AMENDMENT NUMBER 1 TO 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, THE EMERGENCY SOLUTIONS GRANT PROGRAM, AND THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM FOR FISCAL YEARS 2015 THROUGH 2017 THIS AGREEMENT is made and entered into this day of __ , 2014, by and between the County of San Luis Obispo, a political subdivision of the State of California, hereinafter called “County”; and the City of San Luis Obispo, a municipal corporation and Charter City of the State of California, located in the County of San Luis Obispo, hereinafter called “City”; jointly referred to as “Parties.” WITNESSETH WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled, The Housing and Community Development Act of 1974, herein called the “Act”. Said Act is omnibus legislation relating to federal involvement in a wide range of housing and community development activities and contains eight separate titles; and WHEREAS, Title I of the Act is entitled “Community Development” and governs programs for housing and community development within metropolitan cities and urban counties or communities by providing financial assistance annually for area-wide plans and for housing, public services and public works programs; and WHEREAS, the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, the Emergency Solutions Grant (ESG) Program, and the Housing Opportunities for Persons with AIDS (HOPWA) Program are consolidated under Title I of the Act; and WHEREAS, the County of San Luis Obispo has requested of the federal Department of Housing and Urban Development, hereinafter referred to as “HUD”, that the County be designated as an “urban county”; and WHEREAS, the County needs to requalify as an urban county and will be eligible to receive CDBG funds provided that the County’s entitled cities defer their entitlement to the County to enable both the County and the entitlement cities to jointly participate in the program; and WHEREAS, the City desires to participate jointly with the County in said program; and Attachment 2 C7 - 16 WHEREAS, on July 15, 2014, the County and City entered into a Cooperation Agreement (the Original Cooperation Agreement) in order for the County to requalify as an urban county and submitted said cooperation agreement to the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, HUD reviewed said Original Cooperation Agreement and determined that it must be amended to include additional language required by the Transportation, Housing and Urban Development, and Related agencies Appropriations Act, 2014, Public Law 113-76. NOW THEREFORE, in consideration of the mutual promises, recitals and other provisions hereof, the Parties agree as follows: 1. The section entitled “SECTION IV. Use of Program Funds” of the Original Cooperation Agreement is hereby amended to add a new section “I” that reads as follows: I. The City may not sell, trade, or otherwise transfer all or 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. 2. All other provisions of the Original Cooperation Agreement not specifically amended herein remain in full force and effect. NOW, THEREFORE, the Parties hereto have caused this Amendment Number 1 to the Cooperation Agreement to be executed and attested by their proper officer thereunder duly authorized, and their official seals to be hereunto affixed, all as of the day first above written. APPROVED AS TO FORM: By: ____________________, Deputy County Counsel Date: Attachment 2 C7 - 17 COUNTY OF SAN LUIS OBISPO By: Chairperson of the Board of Supervisors Date: ATTEST: Julie Rodewald, County Clerk Date: CITY OF SAN LUIS OBISPO Jan Marx, Mayor Date: ATTEST: Anthony J. Mejia, City Clerk Date: Attachment 2 C7 - 18 APPROVED AS TO CONTENT: Katie Lichtig, City Manager Date: APPROVED AS TO FORM: Christine Dietrick, City Attorney Date: Attachment 2 C7 - 19 Page intentionally left blank. C7 - 20