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HomeMy WebLinkAboutItem G+�'sEa "t aE AGENDA STAFF REPORT /I �10414.KOR lk- DATE: June 12, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Crystal Landavazo, Interim Director of Community Development SUBJECT: CITY OF SEAL BEACH PARTICIPATION IN THE HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM GRANT YEAR 2018 -2019, 2019 -2020, AND 2020- 2021 SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6739 of the City of Seal Beach approving the on -going participation in the County of Orange Housing and Community Development Program for 2018 -2019 and for up to two (2) additional years (2019 -2020 & 2020 -2021) if funded by the County, to fund the Leisure World bathroom upgrade handicap accessibility program. BACKGROUND AND ANALYSIS: The City of Seal Beach receives Community Development Housing Grant (CDBG) funds through a contractual agreement with the County of Orange. The County's Housing and Community Development Department (HCD) applies to United States Department of Housing and Urban Development (HUD) for CDBG funding, then divides the funding amongst its sub - recipients such as the City of City of Seal Beach. In 2005, the City applied for and received its first CDBG funding for the Leisure World Bathroom Accessibility Program. Qualified residents of Leisure World are below 80% of the area median income. The CDBG funds are considered a grant to the resident(s) and used to modify the tub /shower and make it accessible. Specifically, the side wall of the tub is cut -down to just W' and the shower is refinished; including skid - resistance flooring, grab bars, and a new glass shower enclosure. If needed, the standard toilets are replaced with high -boy toilets as well. The applicant's doctor verifies that the work is needed to improve the resident's accessibility and/or reduce pain. The program has been very successful in assisting Leisure World residents and, although not as dire as in prior years, a demand still exists for this work within Leisure World as there still are housing units with tubtshowers that require the Agenda Item G elderly and physically impaired residents to step up and over a tub wall. The CDBG funding for this program improves safety, improves access to hygiene needs, and reduces pain of the residents within Leisure World. The Bathroom Accessibility Program will continue to be available to seniors within Leisure World and the City will seek additional qualifying programs that can utilize CDBG funding. In order to comply with federal regulations, the County of Orange and HUD require the City's application process be approved and adopted by a resolution authorizing the submission of the current application, as well as future applications. Currently, there is a need to amend the existing agreement with the County of Orange to confirm that the City continues to qualify for CDBG funding. The City has previously approved three similar amendments to certify that it meets the qualifications of the program. This re- certification is requested from the County every three years and was last approved by the City Council through FY 17.18. The fourth Amendment is included as Attachment 2 to this staff report and will allow the City to retain qualification status in order to submit an application for the next three year cycle. An application will be prepared in the next fiscal year to seek funding for the next three year cycle, if funding is made available. Attached is a proposed resolution, Attachment 1, approving the City's participation in the Housing and Community Development Program of the County of Orange, Program Year 2018 -2019 and also two additional years 2019 -2020 and 2020 -2021 if awarded funding by the County. FINANCIAL IMPACT: If the Resolution is approved by the City Council, the application will then be submitted and considered by the County of Orange. Although the County's application process approves a three year cycle of funding, future years' funding is contingent upon continued funding from the federal CDBG program and actual amounts allocated to the County. Applications which encompass additional funding sources stand a better chance of being approved. Accordingly, the project application will include a funding match of $60,000 from the City's General Fund for program and contract administration each year, an amount consistent with each of the previous year's program activities for the Leisure World Bathroom Accessibility program. The City's affordable housing consultant, CivicStone, has administered the City's Program since 2005. CivicStone's duties include the following: 1. Complete and coordinate County funding application. 2. Design the resident application material. 3. Develop marketing materials and ensure that the Program is promoted in all possible media outlets applicable to Leisure World. Page 2 4. Attend Leisure World Board meetings to explain and promote the program. 5. Hold meetings at Leisure World to explain the program and provide application assistance to individual residents. 6. Prepare and coordinate a Request for Proposal for three contracts per County requirements. 7. Answer program inquiries, mail applications, qualify all applications for HUD /County audit, prepare contracts, and coordinate with the approved contractor the work to be performed, manage the entire process to the end with the homeowner, and meet with the homeowner for post construction photos and notices of completion. 8. Prepare files and reimbursement reports to the County. 9. Provide program status reports to the City. 10. Prepare monitoring and compliance reports for the County of Orange. Adopt Resolution No. 6739, a Resolution of the City Council of the City of Seal Beach approving the City's Participation in the Housing and Community Development Program of the County of Orange, Program Year 2018 -2019 with the extension of two (2) additional years if funded by the County of Orange. Authorize the City Manager to execute all necessary application materials, and to take all appropriate actions to comply with the application submittal and review process. ENVIRONMENTAL IMPACT: There is no environmental impact related to this item. LEGAL ANALYSIS: The City Attorney has approved the proposed resolution as to form. SUBMITTED BY: NOTED AND APPROVED: �stal La day kW R. Ingra nager e/Anterim Director of Community Development Attachment: A. Resolution No. 6739 B. Amendment 4 to OCCR Agreement Page 3 "Attachment A" RESOLUTION NUMBER 6739 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING THE CITY'S PARTICIPATION IN THE HOUSING AND COMMUNITY DEVELOPMENT PROGRAM OF THE COUNTY OF ORANGE, PROGRAM YEAR 2018 -2019 WITH AN ADDITIONAL TWO YEARS 2019 -2020 AND 2020 -2021 IF FUNDED BY THE COUNTY OF ORANGE THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE AS FOLLOWS 1. The Housing and Community Development Act of 1974 authorizes cities under 50,000 in population to enter into cooperative agreements with the county in which they are located for the purpose of undertaking essential community development activities. The Federal government requires participating cities to provide certifications that the funds will be obtained and utilized pursuant to Federal law and policy. 2. It is the intent of the City of Seal Beach to participate with the County of Orange for a grant authorized under the Housing and Community Development Act of 1974. 3. The City Council hereby approves the City's participation in and certifications for the Housing and Community Development Block Grant Program for funding cycle 2018 -2019, and 2019 -2020 and 2020 -2021 if the additional programs years are funded by the County of Orange. 4. The City Manager or her designee is hereby authorized to execute all application materials necessary and take such other appropriate actions to participate in the program. Resolution Number 6739 PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on June 12, 2017 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Sandra Massa - Lavitt, Mayor ATTEST: Robin L. Roberts, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE } SS CITY OF SEAL BEACH ) I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 7§ 39 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of June , 2017. Robin L Roberts, City Clerk AMENDMENT FOUR TO COOPERATION AGREEMENT BETWEEN THE COUNTY OF ORANGE AND CITY OF SEAL BEACH This Amendment Number FOUR (hereinafter "Amendment FOUR ") Is made and entered into by the County of Orange, a political subdivision of the State of California, ( "COUNTY ") and CITY OF SEAL BEACH, a municipal corporation, ( "CITY "), DUNS Number 060752607 which are sometimes individually referred to as "Party' or collectively referred to as "Parties ", and is effective as of July 1, 2018, hereinafter referred to as "EFFECTIVE DATE ". WHEREAS, COUNTY and CITY executed that certain COOPERATION AGREEMENT "Small - City" (hereinafter "Original Agreement" or "Agreement ") for commencement July 1, 2005; and WHEREAS, the Original Agreement was amended by Amendment ONE, effective as of July 16, 2008; and WHEREAS, the Original Agreement was amended by Amendment TWO, effective as of July 1 2012;. and WHEREAS, the Original Agreement was amended by Amendment THREE, effective as of July 1, 2015; and WHEREAS, U.S. Department of Housing and Urban Development ( "HUD ") Notice CPD -14 -07 allows "automatic" renewals for up to three years provided that COUNTY sends a letter to CITY notifying it that the Original Agreement will be renewed unless CITY notifies COUNTY that it wishes to terminate the agreement and a copy of such a letter is provided to HUD; and WHEREAS, COUNTY sent CITY a letter notifying CITY of such renewal on February 2, 2017; and WHEREAS, CITY did not advise COUNTY that it wished to terminate the Original Agreement with County; and WHEREAS, the Parties desire to further amend the Original Agreement at this time In the manner set forth herein. NOW, THEREFORE, the Parties hereby agree to the following modifications to the Original Agreement: 1. Section 2 of the Original Agreement is amended in its entirety as follows: Page I of "COUNTY shall have the authority to carry out activities, which will be funded from annual Community Development Block Grant (CDBG), Home Investment Partnership (HOME) and Emergency Solutions Grant (ESG) Program funds appropriated for Federal Fiscal Years 2018 -2019, 2019 -2020 and 2020 -2021 and from any program income generated from the expenditure of such funds." 2. Section 6 of the Original Agreement shall be amended to add subsection (c.) as follows: "c. A policy to undertake or assist in undertaking, community renewal and lower- income housing assistance activities." 3. Section 9 of the Original Agreement shall read as amended in its entirety as follows: This Agreement shall cover Fiscal Years 2018 -2019, 2019 -2020 and 2020- 2021, respectively of CDBG, HOME and ESG program applications, Including any subsequent Supplemental sources (Paragraph 23 of the Agreement). In no event shall this agreement be terminated by either Party before June 30, 2021, except as allowed in legislation enacted by the U.S. Congress for termination or withdrawal from the Urban County Program and as permitted by HUD. 4. Section 10 shall be added to Agreement to read: "In accordance with HUD Notice CPD 14 -07, and subsequent CPD Notices, this Agreement will be automatically extended for an additional 3 (three) year period (July 1, 2021 to June 30, 2024) unless COUNTY or CITY provides written notice that it elects not to participate in a new qualification period. COUNTY shall notify CITY in writing of Its right not to participate any longer than the date specified in HUD's Urban County Qualification Notice for the next qualification period." 5. Section 11. Of the Original Agreement is amended to read: "CITY and COUNTY agree to adopt amendments (s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s) subsequent to June 30, 2020. The COUNTY will notify CITY of its right to terminate its participation in the program based on the adoption of any such amendment. If either CITY or COUNTY refuses to adopt any such amendment, this automatic renewal provision herein will be void." 6. Section 24. Is amended to read: "CITY may void this Agreement only if it submits to COUNTY on or before June 2017 the notification from HUD that CITY has qualified as a "Metropolitan City" or an "Entitlement City" prior to the completion of the Page 2 of 4 re- qualification process for Fiscal Years 2018 -19, 2019 -2020, and 2020- 2021. Upon such notification by HUD, CITY also must submit to COUNTY and HUD written notification of its decision to either remain in the Urban County Program as a "Metropolitan City" or become an "Entitlement City" as a separate entity." 7. All other provisions of the Original Agreement, as amended, a copy of which is attached hereto as Exhibit A and incorporated by this reference, to the extent they are not inconsistent with this Agreement, remain unchanged and in full force and effect. IN WITNESS WHEREOF, CITY has caused this Amendment FOUR to be executed by its City Manager and attested by its City Clerk; COUNTY has caused this Amendment FOUR to be executed by the Director of the Orange County Community Resources; each having been duly authorized by the CITY Council and the COUNTY Board of Supervisors, respectively. City of , a municipal Corporation in the State of California By: Name: Title: City Manager Date: Approved as to F By Craig Steele City Attorney City of Seal Beach ATTEST: By: Name: Title: City Clerk Date: COUNTY OF ORANGE, a political subdivision of the State of California By: Dylan Wright, Director Orange County Community Resources Date: Page 3 of ORIGINAL FORM CONTRACT APPROVED AS TO FORM and REQUIRED COUNTY COUNSEL STATEMENT: "The terms and provisions of the agreement are fully authorized under State and local law and the agreement provides full legal authority for the County." �/ Date: By: De ty County Counsel Page of