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CC RES 2004-007 RESOLUTION NO. 2004-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING A LETTER OF AGREEMENT BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE CITY OF WEST HOLLYWOOD FOR THE EXCHANGE OF CDBG FUNDS FOR THE FISCAL YEAR 2003-2004. WHEREAS, the City Council of the City of Rancho Palos Verdes conducted a public hearing, pursuant to applicable law, on December 3, 2002, to consider the allocation of CDBG funds for the Fiscal Year 2003-2004; and WHEREAS, the use of CDBG funds is strictly limited by law; and WHEREAS, on August 20, 2002, the City of Rancho Palos Verdes executed a three-year Cooperation Agreement with the County of Los Angeles concerning Community Development Block Grant (CDBG) Funds for Fiscal Years 2003-2004, 2004-2005, and 2005-2006; and WHEREAS, the City of Rancho Palos Verdes is a recipient of Community Development Block Grant Funds and desires to exchange $150,000 of its FY 2003-2004 CDBG funds for $93,750 of West Hollywood General Funds; and WHEREAS, the City Council of the City of Rancho Palos Verdes conducted a public hearing, pursuant to applicable law, on February 3, 2004, to consider the exchange of CDBG funds with the City of West Hollywood. . NOW, THEREFORE, BE IT RESOLVED by the City of Rancho Palos Verdes City Council as follows: Section 1. The attached Letter of Agreement between the City of Rancho Palos Verdes and the City of West Hollywood is hereby approved; and in accordance with the Letter of Agreement, the City of Rancho Palos Verdes will exchange $150,000 of its 2003-2004 CDBG funds for $93,750 of City of West Hollywood General Funds. Section 2. The City of West Hollywood shall assign the agreed upon general funds to the City of Rancho Palos Verdes in one lump sum payment. The lump sum payments shall be due and payable after receipt of agreed upon CDBG funds from the City of Rancho Palos Verdes. Section 3. The City Manager is authorized and directed to execute any and all documents necessary to complete the exchange of funds on behalf of the City of Rancho Palos Verdes. Section 4. This resolution shall take effect immediately. Section 5. The City Clerk shall certify to the adoption of this resolution and thenceforth and thereafter the same shall be in full force and effect. PASSED, APPROVED AND ADOPTED this 3rd day of February 2004. Mayor Attest: P City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2004-07 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on February 3, 2004. a City Clerk Resolution No. 2004-07 Page 2of2 C,AGREEMENT This Agreement is made on this 20th day of January, 2004, by and between the City of Rancho Palos Verdes, a municipal corporation, and the City of West Hollywood, a municipal corporation. RECITALS A. The City of Rancho Palos Verdes has executed a three-year cooperation agreement with the County of Los Angeles concerning Community Development Block Grant (CDBG) Funds for Fiscal Years 2003-2004, 2004-2005 and 2005-2006; B. The City of West Hollywood has executed a three-year cooperation agreement with the County of Los Angeles concerning Community Development Block Grant Funds (CDBG) for Fiscal Years 2003-2004, 2004-2005, and 2005-2006; C. The City of Rancho Palos Verdes will receive CDBG Funds which can be made available to the City of West Hollywood during fiscal year 2003-2004. In exchange for the assignment by the City of West Hollywood of the amount of its general funds indicated in Section 1 below, the City of Rancho Palos Verdes is willing to assign unexpended CDBG funds to West Hollywood. D. The two cities now desire to enter into an agreement under which the City of West Hollywood would exchange $93,750 of its general funds for $150,000 of the City of Rancho Palos Verdes' unexpended entitlement of CDBG Funds for Fiscal Year 2003-2004. NOW, THEREFORE, the Cities agree as follows: 1. EXCHANGE. The City of Rancho Palos Verdes agrees to assign one hundred fifty thousand dollars and zero cents ($150,000) of its unexpended CDBG allocation to the City of West Hollywood. In return, the City of West Hollywood agrees to assign ninety-three thousand seven hundred fifty dollars and zero cents ($93,750) of its general funds to the City of Rancho Palos Verdes. The exchange rate is $ .625/1.00. 2. CONSIDERATION. The City of Rancho Palos Verdes shall assign the agreed upon CDBG Funds in one lump sum payment. The City of West Hollywood shall assign the agreed upon general funds to the City of Rancho Palos Verdes in one lump sum payment. The City of West Hollywood's lump sum payment shall be due and payable 15 days after the Community Development Commission of the County of Los Angeles notifies the City of West Hollywood in writing and on its letterhead that the funds have been transferred to the City of West Hollywood's unallocated funds account. 3. BEST EFFORTS. The City of Rancho Palos Verdes shall use its best efforts to obtain any consent required of any other governmental or administrative agency to Page 1 of 3 effectuate the assignment of $150,000 of its CDBG funds to the City of West Hollywood no later than 30 days after both cities have executed the agreement and any required documents. The City of Rancho Palos Verdes and City of West Hollywood agree to execute any and all additional documents which such agencies may request in connection with the assignment and receipt of grant. 4. TERM. The Agreement is effective on the date above written and for such time as is necessary for both parties to complete their mutual obligations under this Agreement. 5. TERMINATION. Termination of this Agreement may be made by either party so long as written notice of intent to terminate is given to the other party at least five (5) days prior to the termination. 6. NOTICE. Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows: CITY OF WEST HOLLYWOOD Paul Arevalo, City Manager 8300 Santa Monica Boulevard West Hollywood, CA 90069 CITY OF RANCHO PALOS VERDES Les Evans; City Manager 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 7. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. Page 2 of 3 v IN WITNESS WHEREOF, the parties have executed this Agreement the 20th of January, 2004. CITY OF WEST HOLLYWOOD: CITY OF RANCHO PALOS VERDES: Allynef Winderman, Director of Rent Stabilization & Housin ,y Paul Mva o, City Manager Les Evans, City Manager ATTEST: ATTEST: 0 Tom West, City Clerk City C rk Page 3 of 3