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HomeMy WebLinkAboutSupplemental Communication from Community Development Director Les Johnson1 Gloria Harper From:Les Johnson Sent:Tuesday, May 26, 2020 6:12 PM To:Gloria Harper; Jill Ingram Cc:Craig A. Steele; Dana Engstrom Subject:Memorandum and Revised Language for CDBG Cooperative Agreement Attachments:Amendment 5 Co-Op Participating-FINAL 5.26.20 HIGHLIGHT.pdf; CC Memo - Language Revisions to Cooperative Agreement 5-26-20.pdf Attached is a cover memorandum and a copy of the revised agreement language with the revisions highlighted.      Gloria, could you please distribute to City Council for their consideration.      Jill, I suspect that it would be best to pull this in order to provide a brief verbal explanation of the last minute language  changes provided by the County.    Thank you everyone.    Les Johnson Community Development Director City of Seal Beach – 211 Eighth Street, Seal Beach, CA 90740 (562) 431-2527, Ext. 1313   Civility Principles: 1. Treat everyone courteously; 2. Listen to others respectfully; 3. Exercise self-control; 4. Give open-minded consideration to all viewpoints; 5. Focus on the issues and avoid personalizing debate; and, 6. Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions. For Information about Seal Beach, please see our city website: www.sealbeachca.gov NOTICE: This communication may contain privileged or other confidential information. If you are not the intended recipient of this communication, or an employee or agent responsible for delivering this communication to the intended recipient, please advise the sender by reply email and immediately delete the message and any attachments without copying or disclosing the contents. Thank you.     MEMORANDUM TO: Honorable Mayor and City Council Members FROM: Les Johnson, Community Development Director THRU: Jill R. Ingram, City Manager DATE: May 26, 2020 RE: Amendment Five to the Community Development Block Grant (CDBG) Program Cooperative Agreement for FY 2021/2022 – 2023/2024 Earlier this afternoon, City staff received notice from Orange County of minor language revisions to Amendment Five of the CDBG Cooperative Agreement. The attached document represents the latest document and highlights the additional language. In considering the revised language, staff finds the changes to be minor in nature and recommends City Council adoption of Resolution 7030 with inclusion of the revised language. Page 1 of 6 AMENDMENT FIVE TO COOPERATION AGREEMENT BETWEEN THE COUNTY OF ORANGE AND CITY OF ____________ This Amendment Number FIVE (hereinafter “Amendment FIVE”) is made and entered into by the County of Orange, a political subdivision of the State of California, (“COUNTY”) and CITY OF _____________, a municipal corporation, (“CITY”), DUNS Number _____________ which are sometimes individually referred to as “Party” or collectively referred to as “Parties”, and is effective as of July 1, 2021, hereinafter referred to as “EFFECTIVE DATE”. WHEREAS, COUNTY and CITY executed that certain COOPERATION AGREEMENT “Small-City” (hereinafter, as amended, “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, the Original Agreement was amended by Amendment FOUR, effective as of July 1, 2018; and WHEREAS, U.S. Department of Housing and Urban Development (“HUD”) Notice CPD-20-03 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 April 17, 2020; and WHEREAS, CITY did not advise COUNTY that it wished to terminate the Original Agreement with County; and WHEREAS, the Parties agree to further amend the Original Agreement at this time in the manner set forth herein. NOW, THEREFORE, the Parties hereby agree as follows: Page 2 of 6 I. Modifications to the Original Agreement 1. Section 2 of the Original Agreement is amended in its entirety as follows: “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 Fiscal Years 2021-2022, 2022-2023 and 2023-2024 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 2021-2022, 2022-2023 and 2023- 2024, 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, 2024, 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. This Agreement remains in effect until the CDBG (and, where applicable, HOME and ESG) funds and program income received (with respect to activities carried out during the three-year qualification period, and any successive qualification periods under agreements that provide for automatic renewal) are expended and the funded activities completed, and the COUNTY and CITY cannot terminate or withdraw from this Agreement while it remains in effect.” 4. Section 10 shall be added to Agreement to read: “In accordance with HUD Notice CPD 20-03, and subsequent CPD Notices, this Agreement will be automatically extended for an additional 3 (three) year period (July 1, 2024 to June 30, 2027) unless COUNTY or CITY provides written notice that it elects not to participate in a new qualification period. A copy of the notice must be sent to HUD Field Office. 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: Page 3 of 6 “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, 2021 and to submit such amendments to HUD. 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 14 of the Original Agreement is amended to add subsection (d) as follows: “d. May receive a formula allocation under the ESG Program only through the Urban County.” 7. Section 24 of the Original Agreement is amended to read: “CITY may void this Agreement only if it submits to COUNTY on or before June 2020 the notification from HUD that CITY has qualified as a “Metropolitan City” or an “Entitlement City” prior to the completion of the re-qualification process for Fiscal Years 2021-22, 2022-2023, and 2023- 2024. 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.” II. Additional Agreements 1. The COUNTY and the CITY agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities. 2. The COUNTY and the CITY shall take all actions necessary to assure compliance with the COUNTY’S certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 and the Fair Housing Act and will affirmatively further fair housing as required under See 24 CFR 91.225(a) and 5.105(a). The Parties shall comply with section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 of Title II of the Americans with Disabilities Act, the Age Discrimination Act of 1975, and Section 3 of the Housing and Urban Development Act of 1968, and all other applicable laws. The Parties agree that no urban county funding will be used 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 the COUNTY’S fair housing certification. The Parties acknowledge and agree that noncompliance by a unit of general local government included in an urban county may constitute noncompliance by the grantee (i.e., the urban 14 county) that Page 4 of 6 can, in turn, provide cause for funding sanctions or other remedial actions by the Department. 3. The CITY, and all other applicable units of general local government, may not sell, trade, or otherwise transfer all or any portion of such funds to another such 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. 4. 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 Amendment FIVE, remain unchanged and in full force and effect. Page 5 of 6 IN WITNESS WHEREOF, CITY has caused this Amendment FIVE to be executed by its City Manager and attested by its City Clerk; COUNTY has caused this Amendment FIVE 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. ATTEST: City of , a municipal Corporation in the State of California By: By: Name: Name: Title: City Manager Title: City Clerk Date: Date: COUNTY OF ORANGE, a political subdivision of the State of California By: Dylan Wright, Director Orange County Community Resources Date: Page 6 of 6 //////////////////////////////////////////////////////////////////////////////////////////// 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.” By: Deputy County Counsel Date: __________