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Home My WebLink About09/07/1999, C7 - AMENDMENT TO THE URBAN COUNTY COOPERATION AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR FEDERAL GRANT PROGRAM YEARS 2000 THROUGH 2002. council Kiifi4°ana-�-q acEnaa RepoiztN� CITY OF SAN LUIS OBISPO FROM: Arnold Jonas, Community Dey went Director PREPARED BY: Jeff Hook, Associate Pl SUBJECT: Amendment to the Urban County Cooperation Agreement with the County of San Luis Obispo for Federal Grant Program Years.2000 through 2002. CAO RECOMMENDATION: Adopt resolution approving the amendment and authoriiing the Mayor to sign the amendment for the City. DISCUSSION Background At its July 6t° meeting, the City Council approved the 1999-2002 Urban County Cooperation Agreement. The approved agreement follows closely the form and content of the previous grant years' cooperation agreements. Following approval by San Luis Obispo and the other Urban County_ cities, the Board of Supervisors executed the agreement which was then forwarded to the U.S. Department of Housing and Urban Development (HUD) for approval (executed agreement attached). After reviewing the agreement, HUD's legal counsel identified a provision in the agreement as being inconsistent with HUD policies. HUD staff notified the County that HUD would not finally approve the cooperative agreement until it was amended. Hence, all of the cities in the Urban County must now amend the recently approved agreement to meet-HUD requirements. Proposed Amendment The proposed.amendment.relates to the Urban County's ability to selectively decline formula grants from HUD if they.chose to apply for State grants. The proposed amendment refers to Section H.E., Grant Eligibility, and would delete the words "...unless the urban county does not qualify for or declines to accept formula allocations under these programs." The effect of this change is to preclude the Urban County and non-profit agencies served by the Urban County from receiving HOME, ESG or HOPWA grant funds from the State. For example, in 1996, the Urban County declined the formula ESG (Emergency Shelter) Grant to enable local non-profit agencies to apply directly to the State for grant funding. This approach allowed the non-profits to receive a larger State ESG grant through the State than would have been possible through the Urban County program. Subsequently, however, the State informed the Urban . County it would not accept any more grant applications for State funds so long as the Urban County was entitled to receive formula grants directly from HUD. Hence, the proposed amendment is moot and would have no effect on the Urban County and local agencies. As long as the Urban County chooses to receive,Community Development C7-1 Staff Report - Amendment to the 1999-2002 CDBG Cooperation Agreement Page.2 Block Grant (CDBG) funds, it must also accept the other formula federal grants for which it qualifies. If the Urban County no longer' qualified for formula allocations from HUD or declined all of its formula allocations, it could then., under the proposed amendment, apply for competitive State funding. Due to State requirements and the number of cities competing for funding, .this approach is not likely to yield as much grant funding over time as the current approach. FISCAL VAPACT The proposed.amendment is not expected to affect the City's CDBG funding nor that of local . . agencies which receive- funding through the Urban County. Since HUD insists upon the change before the 1999 CDBG grant program can begin, timely approval of the amendment is necessary to enable.the City to begin drawing down over $900 thousand in 1999 CDBG funds. Attachments: 1. Draft Resolution 2. Exhibit A:. Proposed Cooperation Agreement amendment Council Reading File: Executed.1999-2002 Urban County Cooperation Agreement j":cwpagr99a=d.rpt C7-2 RESOLUTION NO. (1999 Series) A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE 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, 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; WHEREAS, the City and County have executed a cooperation agreement guiding the parties' participation in the Urban County for Program Years 1999 through 2002; WHEREAS, HUD has notified the Urban County that before the City can use 1999 federal grant funds, an amendment to the executed cooperation agreement is necessary to maintain consistency with HUD's policies and requirements; and WHEREAS, the City Council has reviewed the proposed amendment and determined that it is unlikely to affect the amount or administration of City grant funds under the Urban County Program; THEREFORE, BE IT RESOLVED BY THE SAN LUIS OBISPO CITY COUNCIL AS FOLLOWS: C7-3 Cooperation Agreement Amendment Page 2 SECTION 1. Findings. 1. The proposed Cooperation Agreement amendment 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 amendment will not adversely affect Urban County funding, funding administration, or grant programs and is necessary to utilize 1999 federal grant funds; 3. The Cooperation Agreement and proposed amendment thereto 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 sign the amendment to the executed Urban County Cooperation Agreement, Exhibit "A", with the County to enable continued 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 and amendments thereto. C74 Cooperation Agreement Amendment Page 3 On motion of secondedby 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: Ci Att ey jh(L:coopagre99ameffi.rpt C7-5 EXHIBIT A � AMENDMENT NO. 1 TO 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 2002 THIS AMENDMENT to the within identified 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, on July 13, 1999, the City and the County entered into a "cooperation agreement" pursuant to federal regulation section 24 CFR part 570.308 for joint participation in the federal Community Development Block Grant Program, the Home Investment Partnerships Program and the Emergency Shelter Grant Program for fiscal years 2000 through 2002 (hereinafter referred to as the "Original Agreement"); and WHEREAS, the City and the County desire to make certain amendments to the Original Agreement requested by the U.S. Department of Housing and Urban Development, while otherwise continuing the Original Agreement in full force and effect. NOW, THEREFORE, it is agreed by and between the parties hereto that the Original Agreement is amended as follows: 1. The last sentence in Section ILE. shall be revised by deleting the words "..., unless the urban county does not qualify for or declines to accept formula allocations under these programs". IN WITNESS WHEREOF, the City Council of the City of San Luis Obispo and the 1 C7-6 Board of Supervisors of the County of San Luis Obispo have authorized this amendment and direct its execution by their respective chief executive officers on this day of ' 1999. APPROVED AS TO FORM AND LEGAL EFFECT James B. Lindholm, Jr. County Counsel By: Timothy McNulty, .Deputy County Counsel APPROVED AS TO FORMA AND LEGAL EFFECT: By: Ay en n, ity Attorney COUNTY OF SAN LUIS OBISPO By: -- - - Chairman of the'Board of Supervisors ATTEST: Julie Rodewald, CountyClerk 2 C7-7 CITY OF SAN LUIS OBISPO: By: Mayor Allen K. Settle ATTEST: Lee Price.CMC; City Clerk jh/L•coopagreamend99 3 CT-8