HomeMy WebLinkAboutCC AG PKT 2008-05-27 #F
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AGENDA STAFF REPORT
DATE:
TO:
THRU:
FROM:
May 27, 2008
Honorable Mayor and City Council
David Carmany, City Manager
Lee Whittenberg, Director of Development Services
SUBJECT: CONTINUED PARTICIPATION IN THE U.S.
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT'S URBAN COUNTY PROGRAM
SUMMARY OF REQUEST:
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Adopt Resolution Number 5728, A Resolution of the City Council of the City of
Seal Beach Authorizing the City Manager to execute Amendment One to
Cooperation Agreement between the County of Orange and the City of Seal
Beach for continued participation in the U.S. Department of Housing and Urban
Development's Urban County Program.
BACKGROUND:
As a non-entitlement city (population less than 50,000), the City of Seal Beach
receives CDBG funding through a contractual agreement with the County of
Orange (the "Cooperation Agreement"). The Orange County Community
Resources Department ("OCCR") applies to the federal Department of Housing
and Urban Development ("HUD") for Community Development Block Grant
("CDBG") funding, then divides the funding among its sub-recipients: the non-
entitlement cities; unincorporated areas; and, non-profit organizations eligible for
funding.
The City of Seal Beach has successfully participated in this program for many
years, with the most recently funded project being the restroom rehabilitation
program within Leisure World over the past 3 years at a total funding level of
approximately $600,000.
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The formal agreement for this process is through the Cooperation Agreement
described above. The Cooperation Agreements are typically for a 3-year fiscal
year time period and a new agreement is necessary to be able to participate in
the Fiscal Years 2009-2011.
Agenda Item F
Z:\OS-27-08 Council Meeting . Agenda Items\DS . Staff Report - F . COSG Urban County Program . Res
#5728.doc\LW\OS-13-08
Resolution Number 5728, Continued Participation in
County of Orange Urban County Program
City Council Staff Report
May 27, 2008
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The U.S. Department of Housing and Urban Development ("HUD") Notice CPF-
08-04 allows for an "automatic" renewal for 'up to 3 years provided the County
sends a letter to qualifying cities notifying those cities that the Original Agreement
will be renewed unless a qualifying city notifies the County that it wishes to
terminate the agreement. On May 13th the City Council authorized the City
Manager to execute a letter to the County of Orange and HUD that the City of
Seal Beach wishes to continue to participate in the Urban County Program.
FISCAL IMPACT:
None. If the City receives grant funding in the future, the only cost to the City
would be Staff time in administering the projects and grant funds. Participation in
the program will allow the City to submit applications for funding during fiscal
years 2009-2011.
RECOMMENDATION:
Adopt Resolution Number 5728, A Resolution of the City Council of the City of
Seal Beach Authorizing the City Manager to execute Amendment One to
Cooperation Agreement between the County of Orange and the City of Seal
Beach for continued participation in the U.S. Department of Housing and Urban .
Development's Urban County Program.
NOTED AND APPROVED:
t.
e Whittenberg
Director of Development Se
&.:..>~
David Carman
City Manager
Attachments (2):
Attachment 1:' Resolution Number 5728, A
Resolution of the Authorizing the Mayor and City
Manager to execute Amendment One to Cooperation
Agreement between the County of Orange and the
City of Seal Beach for continued participation in the
U.S. Department of Housing and Urban
Development's Urban County Program
Attachment 2:
Amendment One to Cooperation Agreement Between
the County of Orange and City of Seal Beach
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2
os . Staff Report 2008 Intent to Participate in Urban County Program
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Resolution Number 5728, Continued Participation in
County of Orange Urban County Program
City Council Staff Report
May 27, 2008
ATTACHMENT 1
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RESOLUTION NUMBER 5728, A
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEAL BEACH AUTHORIZING
AND CITY MANAGER TO EXECUTE
AMENDMENT ONE TO COOPERATION
AGREEMENT BETWEEN THE COUNTY OF
ORANGE AND THE CITY OF SEAL BEACH
FOR CONTINUED PARTICIPATION IN THE
U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT'S URBAN
COUNTY PROGRAM
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3
os - Staff Report 2008 Intent to Participate In Urban County Program
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RESOLUTION NUMBER 5728
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT ONE TO COOPERATION. AGREEMENT
BETWEEN THE COUNTY OF ORANGE AND THE CITY OF
SEAL BEACH FOR CONTINUED PARTICIPATION IN THE U.S.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S
URBAN COUNTY PROGRAM
The City CouncU of the City of Seal Beach does hereby resolve as follows:
WHEREAS, it is the intent of the City of Seal Beach to participate in the filing of
an application with the County of Orange for a grant authorized under the
Housing and Community Development Act of 1974, as amended; and
WHEREAS, The Cooperation Agreements are typically for a 3-year fiscal year
time period and a new agreement is necessary to be able to participate in the
Fiscal Years 2009-2011; and
WHEREAS, The U.S. Department of Housing and Urban Development ("HUDn)
Notice CPF-08-04 allows for an "automatic" renewal for up to 3 years provided
the County sends a letter to qualifying cities notifying those cities that the Original
Agreement will be renewed unless a qualifying city notifies the County that it
wishes to terminate the agreement; and
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WHEREAS, On May 13th the City Council authorized the City Manager to
execute a letter to the County of Orange and HUD stating that the City of Seal
Beach wishes to continue to participate in the Urban County Program.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Seal
Beach does hereby authorize the City Manager to execute Amendment One to
Cooperation Agreement between the County of Orange and the City of Seal
Beach for continued participation in the U.S. Department of Housing and Urban
Development's Urban County Program.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Seal
Beach on the 27th day of Mav . 2008 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
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City Clerk
Resolution Number 5728
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
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I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 5728 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council of
the City of Seal Beach, at a regular meeting thereof held on the 27th day
of Mav I 2008.
City Clerk
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Resolution Number 5728, Continued Participation in
County of Orange Urban County Program
City Council Staff Report
May 27, 2008
ATTACHMENT 2
AMENDMENT ONE TO COOPERATION
AGREEMENT BETWEEN THE COUNTY OF
ORANGE AND CITY OF SEAL BEACH
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2008 Intent to Participate in Urban County Program.CC Staff Report 2
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AMENDMENT ONE TO
COOPERATION AGREEMENT BETWEEN
THE COUNTY OF ORANGE
AND
CITY OF SEAL BEACH
This Amendment Number One (hereinafter "Amendment One") 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''), which are sometimes individually referred to as ''Party'' or collectively referred to as "Parties", and is effective
as of , 2008, hereinafter referred to as "EFFECTIVE DATE".
WHEREAS, County and City executed that certain COOPERATION AGREEMENT "Sma1I-City" (hereinafter
"Original Agreement" or "Agreement'') for commencement July I, 2005; and
WHEREAS, U.S. Department of Housing and Urban Development ("HUD'') Notice CPD-08-04 allows "automatic"
renewals for up to three years provided that CO\mty sends a letter to City notifying it that the Original Agreement will be
renewed tmless City notifies County that it wishes to terminate the agreement and a copy of such a letter is provide to
HUD'
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WHEREAS, CO\mty sent City a letter notifying City of such renewal on MAY 2, 2008;
WHEREAS, City did not advise County that it wished to tenninate the Original Agreement with County;
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WHEREAS, Section 10 of the Original Agreement allows for an additional three year extension of said Agreement
upon mutual agreement of both Parties; and
WHEREAS, the Parties desire to 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 9 of the Original Agreement shall read, as amended, in its entirety as follows:
This Agreement shall cover Program Years 35, 36 and 37 (Fiscal Years 2009-2010, 2010-2011 and 2011-2012,
respectively) of CDBG and HOME program applications, including any subsequent Supplemental sources
(paragraph 23 below). In no event shall this agreement be terminated by either party before June 30, 2012,
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.
2. Section 10 of the Original Agreement shall be deleted in its entirety.
3. All other provisions of the Original Contract, a copy ofwbich is attached hereto as Exhibit A and incorporated by
this reference, and any previous amendments, to the extent they are not inconsistent with this Amendment,
remain unchanged and in full force and effect
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Page I of3
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IN WITNESS WHEREOF, CITY bas caused this Agreement to be executed by its City Manager and attested by
its City Clerk; COUNTY has caused this Agreement 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 Seal Beach, a municipal
Corporation in the State of California
By:
Name: David Cannany
Title: City Manager
Date:
ATTEST:
By:
Name: Linda Devine
Title: City Clerk
Date:
COUNTY OF ORANGE, a political
subdivision of the State of Califomia
.
By:
Steve Franks, Director
Orange County Conununity Resources
Date:
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ORIGINAL FORM CONTRACf
APPROVED AS TO FORM and REQUIRED COUNTY COUNSEL STATEMENT:
'''The terms and provisions of the agreement are fully authorized under State and loca1law and the agreement provides full
legal authority for the County."
By:
Date:
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Page 2of3
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ATrACBMENT A
Cooperation Agreement "Small-Oty"
(ThIs page intentionally left blank)
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COOPERATION AGREEMENT
TInS AGREEMENT is entered into this Ft r- sf day of t'k.d-j
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BY AND BETWEEN
..::J:.L)
CITY OF SEAL BEACH, a municipal
Corporation, hereinafter referred to as CITY,
AND
COUNTY OF ORANGE, a political
subdivision of the State of California and
recognized Urban County under the Federal
Housing and Community Development Act
of 1974 (public Law 93-383), as amended,
hereinafter referred to as "COUNT~'.
RECITALS
WHEREAS, Title I of the Housing and Community Development Act of 1974 (public
Law 93-383), as amended., hereinafter referred to as ACT, makes available to the COUNTY as an
Urban County, and to cities under 50,000 in population, grants through the Community
Development Block Grant Program (hereinafter referred to as "CDBG"), and the HOME
Investment Partnership Program (hereinafter referred to as "HOME"), and any subsequent United
States Department of Housing and Urban Development (hereinafter referred to as "HUO")
Program which may become available to the COUNTY to be used for eligible housing and
community development activities; and
WHEREAS, the ACT requires such cities and the COUNTY to enter into cooperation
agreements in order for the cities to be included as part of the Urban County CDBG and HOME
Programs; and
WHEREAS, the COUNTY and CITY desire to cooperate to undertake, or assist in
undertaking, community development and lower income housing assistance activities, which
might include, but are not limited to, (1) acquisition of property for disposition for private reuse,
especially for low- and moderate-income housing, (2) direct rehabilitation of or financial
2006-20.01 Urban COOIy S..aU aly Avoement .....is... May 11,2005 1
1 assistance to housing, (3) low rent housing activities, (4) disposition of land to private developers
2 for appropriate redevelopment, and (5) condemnation of property for low income housing
3 NOW, THEREFORE, the parties agree as follows:
4 1. This Agreement shall constitute a cooperation agreement between the parties
5 within the meaning of Section 102 (a)(b) of the ACT. The parties agree to cooperate to
6 undertake, or assist in undertaking, activities which might include, but are not limited to, (1)
7 acquisition of property for disposition for private reuse, especially for low- and moderate-income
8 housing, (2) direct rehabilitation of or financial assistance to housing, (3) low rent housing
9 activities, (4) disposition of land to private developers for appropriate redevelopment, and (5)
10 condemnation of property for low income housing-community.
11 2. COUNTY shall have the authority to carry out activities, which will be funded
12 from annual CDBG or HOME Program funds appropriated for Federal Fiscal Years 2006-2007,
13 2007-2008, and 2008-2009 and from any program income generated from the expenditure of such
14 funds.
15 3. COUNTY shall have final responsibility for selecting activities and annually filing
16 the grant application (Le. Annual Action Plan) with HUD. In the preparation of said application,
17 COUNTY shall give due consideration to CITY's analysis of community development needs and
18 proposed activities.
19 4. COUNTY certifies that it is following an adopted Consolidated Plan as required by
20 24 CFR Part 91 and 24 CFR Part 570.306.
21 S. Since HUD will not accept an Agreement including a provision for veto or other
22 restriction which would allow any party to obstruct implementation of the Consolidated Plan,
23 both COUNTY and CITY shall attempt to fulfill housing goals established by the HUD approved
24 Consolidated Plan for the period of this Agreement.
25 6. CITY acknowledges that it has adopted and is enforcing:
26 a. A policy prohibiting the use of excessive force by law enforcement agencies
27 within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations;
28 and
29 b. A policy of enforcing applicable State and local laws against physically barring
30 entrance to or exit from a facility or location which is the subject of such non-violent civil rights
31 demonstrations within jurisdictions.
2006-2008 Urban CODDI7 Small 017 Acreeoaut reviled MaJ IB, 2005 2
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7. COUNTY and CITY agree to take all actions necessary to ensure compliance with
the Urban County's certification required by Section 104 (b) of Title I of the Housing 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, and other applicable laws. Failure by CITY to comply with these provisions or to
afflI'IIlatively further fair housing within its own jurisdiction or CITY action which impedes the
COUNTY's actions to comply with the COUNTY's fair housing certification, which may
constitute noncompliance with the Urban County CDBG and HOME Programs, which may cause
funding sanctions or other remedial actions by HUD and/or COUNTY.
8. In the event COUNTY's Urban County application is approved by HUD,
COUNTY shall contract with the CITY to utilize any such grant funds received from HUD which
are attributable to activities administered by CITY, unless another form of allocation is required
by HUD.
9. This Agreement shall cover Program Years 32, 33 and 34 (Fiscal Years 2006-
2007, 2007-2008 and 2008-2009, respectively) of CDBG and HOME program applications,
including any subsequent Supplemental sources (paragraph 23 below). In no event shall this
agreement be terminated by either party before June 30, 2009, 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.
10. In accordance with HUD Notice CPO 05-01, this agreement will be automatically
extended for an additional three (3) year period (Le. from July 1, 2009 to June 30, 2012) 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 no later than the date
specified in HUD's Urban County Qualification Notice for the next qualification period.
11. CITY and COUNTY agree to adopt amendment(s) to this Agreement as may be
required by HUD to meet any new Urban County Qualification requirement(s) subsequent to June
30,2009. 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.
.12. The eligible activities to be undertaken during the term of this Agreement will be
chosen by CITY from those authorized by HUD Rules and Regulations governing the CDBG and
:lIIM-2008 Urban CODnl]' SuudJ Clty AI........, revised Ma, II, 2005 3
1 HOME Programs and any regulations which may be applicable to future Supplemental Federal
2 Programs.
3 13. The parties agree to comply with the requirement(s) of the CDBG and HOME
4 Programs, including laws and policies applicable to said Programs.
5 14. CITY acknowledges by its execution of CDBG and HOME cooperation
6 agreement(s) the included unit of general local government it:
7 a. May not apply for grants from appropriations under the Small Cities or State
8 CnBG Programs for fiscal years during the period in which it participates in the COUNTY'S
9 CnBG program and;
10 b. May not participate in a HOME consortium except through the Urban County,
11 regardless of whether the Urban County currently received a HOME formula allocation.
12 c. May not terminate or withdraw from the Cooperation Agreement while it
13 remains in effect until the CDBG and HOME funds and income received with respect to the
14 three-year qualification period (and any successive qualification periods under agreements that
15 provide for automatic renewals) are expended and the funded activities completed.
16 15. a. CITY must inform COUNTY, through periodic reports requested by COUNTY,
17 of any income generated by the expenditure of Program funds received by the CITY. Pursuant to
18 applicable federal requirements, such program income must be paid to the COUNTY. CITY may
19 retain such program income only if agreed upon by COUNTY and used exclusively for eligible
20 activities as determined by the COUNTY and in accordance with all CDBG and HOME Program
21 requirements as may then apply.
22 b. CITY shall keep and maintain appropriate records on the use of program income
23 as required by COUNTY as the COUNTY has the responsibility of monitoring and reporting
24 program income to HUD.
25 c. In the event of close-out or change in status of CITY, any program income at that
26 time or received subsequent to the close-out or change in status shall be paid by CITY to the
27 COUNTY within ninety (90) days after the expiration of the term of this Agreement.
28 16. a. Any proposed modification or change of use of any real property acquired or
29 improved in whole or in part by the CITY using CnBG funds (from the use planned at the time ofy30 acquisition or improvement), including disposition, must be reported by CITY to the COUNTY.
2006-2008 u...... Coun17 SnudI Cily Alreement revisod May 18, 200S 4
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COUNTY may approve the proposed modification or change of use. CITY shall not implement
the modification or change in use without COUNTY approval.
b. Should the disposition, sale or transfer of such real property acquired or
improved in whole or in part using CDBG or HOME Program funds result in a use which does not
qualify under CDBG or HOME Program regulations, the CITY shall reimburse COUNTY in the
amount equal to the then current fair market value of the property (less any portion thereof
attributable to expenditure ofnon-CDBG/HOME funds).
c. Any program income generated from the disposition, transfer or sale of such
property prior to or subsequent to the close-out, change of status or termina~on of the coopera~on
agreement between the COUNTY and CITY may be either used by CITY for other specific
eligible activities in the CITY or paid to the COUNTY for other eligible Urban County activities,
as determined in advance of the expenditure at the discretion of the COUNTY.
17. a. CITY shall indemnify, hold harmless, and defend with counsel approved in
writing by COUNTY, its officers, agents and employees against all liability, claims, losses,
demands and actions for injury to or death of persons or damage to property arising out of or
alleged to arise out of or in consequence of this Agreement including attorneys' fees, provided
such liability, claims, demands, losses or actions are due to the acts or omissions of CITY, its
officers, agents or employees in the performance of this Agreement, including any activities
conducted by CITY under its application.
b. In addition, CITY shall.indemnify, defend with counsel approved in writing by
COUNTY, and hold harmless COUNTY against any liability, claims, losses, demands, and aCtions
including attorneys' fees incurred by COUNTY as a result of a determination by HUD that
activities undertaken by CITY under CITY's application failed to comply with any laws,
regulations, or policies applicable thereto or that any funds forwarded to CITY under this
Agreement were improperly expended.
c. The provisions of Section 2778 of the California Civil Code, as said section
exists on the effective date of this Agreement, shall be applicable to the above indemnification
provisions. Transmittal to CITY of any pleadings served upon COUNTY shall be deemed to be a
request to defend.
: 18. a. COUNTY shall indemnify, hold harmless and defend with counsel approved in
writing by CITY, its officers, agents and employees against all liability, claims, losses, demands
ZQ06.Z001 U.....a Couaty s_n City Apeemeal revised May 11, ZOOS 5
1 and actions for injury to or death of persons or damage to property arising out of or alleged to arise
2 out of or in consequence of this Agreement, provided such liability, claims, demands, losses or
3 actions are due to the acts or omissions of COUNTY, its officers, agents or employees in the
4 performance of this Agreement, including any activities conducted by COUNTY under its
5 application.
6 b. In addition, COUNTY shall indemnify, defend with counsel approved in
7 writing by CITY, and hold harmless CITY against any liability, claims, losses, demands, and
8 actions including attorneys' fees incurred by CITY as a result of a determination by HUD that
9 activities undertaken by COUNTY under COUNTY's application failed to comply with any laws,
10 regulations, or policies applicable thereto or that any funds forwarded to COUNTY under this
11 Agreement were improperly expended.
12 c. The provisions of Section 2778 of the California Civil code, as said section exists
13 on the effective date of this Agreement, shall be applicable to the above indemnification
14 provisions. Transmittal to COUNTY of any pleadings served upon CITY shall be deemed to be a
15 request to defend.
16 19. COUNTY shall have the right to periodically audit CITY's records to determine
17 compliance with this Agreement.
18 20. CITY shall forward to COUNTY a copy of each annual audit of the CITY
19 conducted by an independent public auditor during the period of this Agreement as soon as the
20 audit report becomes available. COUNTY shall have the right to ensure that necessary corrective
21 actions are made by CITY for any audit fmdings pertinent to CITY handling of CDBG Program
22 funding pursuant to federal requirements.
23 21. No CDBG or HOME Program funds shall be expended on any activity, which does
24 not affirmatively further fair housing goals within ~ITY.
25 22. Pursuant to 24 CFR Part 570.50 1 (b) of CDBG and 24 CFR Part 92.504 of HOME
26 program. regulations, CITY is subject to all requirements applicable to subrecipients, including the
27 requirement of a written agreement set forth in 24 CFR Part 570.503 of CDBG and 24 CFR Parts
28 92.505-509 of HOME program regulations.
29 23. 1bis Cooperation Agreement shall apply to any supplemental program which
30 HUn makes available through the CDBG or the HOME Programs.
2006-2001 U""". CODn", Small City Agn:emeat ....,;,el! May 18, 2005 6
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24. CITY may void this Agreement only if it submits to COUNTY on .or before July
08, 2005 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 2006-
2007, 2007-2008, 2008-2009. 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.
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2006-20P8 UrbaD CODaty Small City AI"",moat revised May 11. 2005 7
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2 IN WITNESS WHEREOF, CITY has caused this Agreement to be executed by its
3 MayorlCity Manager and attested by its City Clerk; COUNTY has caused this Agreement to be
. 4 executed by the Director of the Housing and Community Services Department; each having been
5 duly authorized by the CITY Council and the COUNTY Board of Supervisors, respectively.
6
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ATTEST:
BY:~~ ~
Name:
Title: City Clerk
Date: (p -/8 -0-0-
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12 Title: City Manager
13 Date: IR -/~ -tJ ~
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23 Date:
COUNTY OF ORANGE, a political
subdivision of the State of California
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By:
Paula Burrier-Lund, Director
Housing and Community
Services Department
24 II II I11I11I111 111111111111/1111111 IIII I I I III IIII 11/1111 I IIIIII I I I II I I II II IIII I II II II 1111/1/11/// 1/1 III I III II II 1/1/1111 IIII 111/1/11/111 I 1/111
25 ORIGINAL FORM CONTRACT
26 APPROVED AS TO FORM and REQUIRED COUNTY COUNSEL STATEMENT:
27
28 "The terms and provisions of the agreement are fully authorized under State and 10callaw and the
29 agreement provides fu111egal authority for the County."
30
31
Date:
ill! or-
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BY:~~
2006-2001 u':"'" Coaa.,. Smal. C11y AI.......eal revised May 11,2005 8