RPVCCA_CC_SR_2014_04_15_K_Cooperation_Agmt_LA_County_CDBG_ProgramMEMORANDUM RANCHO PALOS VERDES
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: #MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORK~
APRIL 15, 2014 DATE:
SUBJECT: APPROVAL OF RESOLUTION REGARDING EXECUTION OF
COOPERATION AGREEMENT WITH THE COUNTY OF
REVIEWED:
Project Manager:
LOS ANGELES FOR PARTICIPATION IN THE LOS
ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM
CAROLYNN PETRU, ACTING CITY MA~GER~
Michael Gibson, Senior Administrative Analyst ~ Qd---
RECOMMENDATIONS
1. Approve Resolution No. 2014-, approving and authorizing an agreement by
and between the City of Rancho Palos Verdes and the County of Los Angeles to
participate in the Community Development Block Grant Program and the HOME
Investment Partnerships Program.
2. Authorize the City Manager and the City Clerk to execute the proposed
Agreement with the County of Los Angeles Community Development
Commission (LACDC).
BACKGROUND
The City recently received notification from the LACDC inviting the City to continue
participating in the CDBG Program. In order to continue receiving CDBG funds on an
annual basis, the City is required to execute a three-year cooperation agreement with the
County of Los Angeles. Once the agreement has been approved, the City cannot opt out
of the CDBG Program during the three-year period.
The City's existing three-year cooperation agreement with the County expires on June 30,
2015. The LACDC's funding cycle is July 1, 2015 to June 30, 2018. In order to remain
eligible for CDBG funding, the City Council is required to approve a resolution authorizing a
new cooperation agreement for federal Fiscal Years 2015 -2017.
The LACDC has also notified the City of the possible discontinuation of the entire CDBG
Program at the end of the current three-year period due to federal budget reductions.
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CDBG Three-Year Cooperation Agreement
April 15, 2014
Page 2
Should funding for the CDBG Program be eliminated by the federal government, no further
commitment on the City's part would be required for continued participation under the
cooperation agreement.
By participating in the County's CDBG Program, the City automatically participates in the
County HOME Investment Partnerships Program and the Assisted Housing Programs.
Neither of these two programs require City staff support nor funding; the City simply
provides information to interested residents regarding these County programs.
DISCUSSION
The City has been allocated approximately $6. 7 million in CDBG funding since 1986. The
City currently receives an annual allocation of approximately $143,000 and uses these
funds for Americans with Disability Act (ADA) projects. To continue receiving CDBG funds,
and to maintain flexibility in the use of all available funding sources, it is in the City's best
interest to continue its cooperation agreement with the County. Adopting staff's
recommendations will authorize the City to continue its participation in the CDBG Program.
The County requires the City to approve a resolution authorizing the new cooperation
agreement for federal Fiscal Years 2015 -2017 before late April 2014. However, the
County has not yet provided a final draft of the new cooperation agreement. Thus, only the
draft form of the agreement is attached to this staff report. Staff recommends that the City
Council pass the attached resolution, which approves the draft cooperation agreement as
attached and authorizes the City Manager and City Attorney to review any changes to the
agreement. If the final version of the agreement is not substantively different from the draft
version; then the City Attorney may approve it as to form, and the City Manger may
execute the agreement on behalf of the City. However, if the revised agreement is
substantively different from the draft agreement, then Staff will bring it back to the City
Council for approval. The resolution also authorizes the City Manager and City Clerk to
execute the final cooperation agreement on behalf of the City.
FISCAL IMPACT
The loss of CDBG funds would result in projects funded by this revenue source to be
discontinued or funded by the General Fund or other sources. The estimated three-year
loss of funds would be approximately $429,000 (estimate based on current year funding
levels). Continuing the City's agreement with the LACDC will provide a potential three-year
revenue source for eligible CDBG projects, as long as the entire CDBG Program remains
funded by the U.S. Department of Housing and Urban Development (HUD).
Attachments:
• Resolution 2014-
• Exhibit A-Draft Cooperation Agreement with the County of Los Angeles
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RESOLUTION NO. 2014·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES APPROVING AND
AUTHORIZING A COOPERATION AGREEMENT BY AND
BETWEEN THE CITY OF RANCHO PALOS VERDES AND
THE COUNTY OF LOS ANGELES FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
WHEREAS, the City of Rancho Palos Verdes ("City") has participated in
the Los Angeles Urban County Community Development Block Grant Program ("CDBG
Program"); and
WHEREAS, the CDBG Program is utilized by forty-eight (48) other public
agencies that are not entitlement cities under the regulation of the U.S. Housing and
Urban Development Department ("HUD"); and
WHEREAS, the City wishes to continue to be a participating city under the
CDBG Program and Home Investment Partnerships ("HOME") Program; and
WHEREAS, the County of Los Angeles Participating City Cooperation
Agreement by and between the City of Rancho Palos Verdes and the County of Los
Angeles for the Community Development Block Grant Program, which is attached
hereto as Exhibit A and incorporated herein by this reference ("Draft Cooperation
Agreement"), has not yet been finalized by the County of Los Angeles ("County"); and
WHEREAS, although the Draft Cooperation Agreement is not yet
finalized, the County requires the City Council to approve a resolution authorizing the
new cooperation agreement by the end of April, 2014.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
Section 1. The City Council hereby specifically finds that all of the facts
set forth in the recitals of this Resolution are true and correct.
Section 2. The City Council authorizes the City to continue its
participation in the CDBG Program for federal Fiscal Years 2015 -2017.
Section 3. The City Council approves and authorizes the Draft
Cooperation Agreement as set forth in Exhibit A.
Section 4. If the final version of the County of Los Angeles Participating
City Cooperation Agreement by and between the City of Rancho Palos Verdes and the
County of Los Angeles for the Community Development Block Grant Program ("Final
Cooperation Agreement") is substantially similar to the Draft Cooperation Agreement,
as determined by the City Attorney, the City Council hereby authorizes the City
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Manager to execute the Final Cooperation Agreement on behalf of the City and directs
the City Clerk to attest thereto.
Section 5. If the County makes any changes to the Final Cooperation
Agreement such that it is substantively different from the Draft Cooperation Agreement,
the City Council hereby directs the City Manager and City Attorney to bring the revised
agreement to the City Council for approval. Once the agreement has been approved,
the City Council authorizes the City Manager to execute the Final Cooperation
Agreement on behalf of the City and directs the City Clerk to attest thereto.
Section 6. The City Council directs the City Manager or his or her
representative to take any action necessary to implement the Final Cooperation
Agreement.
PASSED, APPROVED and ADOPTED this 15th day of April, 2014.
Mayor
ATTEST:
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2014-was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on April 15, 2014.
City Clerk
City of Rancho Palos Verdes
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COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
HOME INVESTMENT PARTNERSHIPS PROGRAMS
CITY OF RANCHO PALOS VERDES
COOPERATION AGREEMENT
This Agreement is being entered into on this 15th day of April 2014, to be effective
on the 1st day of July 2015, by and between the City of Rancho Palos Verdes, hereinafter
referred to as "City," and the County of Los Angeles, by and through the Executive Director of
the Community Development Commission of the County, hereinafter referred to as "County,"
and shall remain in effect for the three-year qualification period through the 30th day of June
2018. After this date, this Agreement provides for automatic renewal of participation in
successive three-year qualification periods, unless the County or the City provides written notice
that it elects not to participate in a new qualification period.
WITNESSETH THAT:
WHEREAS, in 1974, the U.S. Congress enacted and .the President signed a law entitled,
the Housing and Community Development Act of 1974, as amended, herei1l called the "Act;"
and
WHEREAS, County and City de$ire to CO()perate to undertake, or assist in undertaking,
community development, community reti~wal of low~r income housing assistance activities,
specifically urban renewal and publicly-as~isted b,olisin~, including, but not limited to, the
improvement or development of housing for p~sons of low-:to-moderate incomes, and other
community or urban renewal activities authorized by the Act, the Cranston-Gonzalez National
Affordable Housing Act (NAHA), and the U.S. Housing Act of 1937, as amended;
W1-JEMAS~ tiie Co1lllllw:rity Development Block Grant (CDBG) Program, the HOME
Investm¢µt Partnerships .(HOME) Program, and <the Emergency Solutions Grant (ESG) Program
are required to have an appro'fed comprehensive housing strategy as authorized under NAHA;
WHEREAS, the County has requested of the U.S. Department of Housing and Urban
Development, hereinafter referred to as "HUD," that the County be designated as an "Urban
County;"
WHEREAS, the City desires to participate with the County in said program;
WHEREAS, as the Urban County designee, the County will take responsibility and
assume all obligations of an applicant under federal statutes, including: the analysis of needs,
the setting of objectives, the development of community development and housing assistance
plans, the consolidated plan, and the assurances of certifications;
WHEREAS, the terms and provisions of this Agreement are fully authorized under State
and local law, and this Agreement provides full legal authority for the County, by and through its
agents and instrumentalities, including the Housing Authority of the County of Los Angeles and
the Community Development Commission of the County of Los Angeles, herein referred to as
"County," to undertake, or assist in undertaking, essential community development and housing
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assistance activities, specifically urban renewal and publicly-assisted housing; and
WHEREAS, by executing this Agreement, the parties hereby give notice of the intention
to participate in the Urban County CDBG Program.
NOW, THEREFORE, the parties agree as follows:
1. The City hereby authorizes the County to perform, or cause to be performed, those
acts necessary or appropriate to implement the community development and
housing assistance activities, specifically urban renewal and publicly-assisted
housing, including, but not limited to, improvement or development of housing
for persons of low-to-moderate income, and other community or urban renewal
activities authorized under the Act specified for the City in the County's
Consolidated Plan, which will be funded from annual CDBG and applicable
HOME Programs from Federal annual appropriations and from any program
income generated from the expencJ.iture of such funds. County shall have final
authority and responsibility for . selecting projects and annually filing its Final
Housing and Community DevelopIJ1ent Plan with HUD.
In the event this Agreement extends into succeeding fiscal years and funds have
not been appropriated, this Agreement wm . automatically terminate as of June 30
of the then current fiscal year. The County will endeavor to notify the City in
writing within ten (10) days ofreceipt of non-appropriation notice.
2. This Agreew~11t covers the following formula funding programs administered by
HUD wg~foe the (;ounty is awarded and accepts funding directly from HUD: The
CDBG Entitlemel1f Program and the HOME Program.
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3. In executilig Jhis Agi.eement, the City understands that it shall not be eligible to
apply for giants miaei<the ~:mall Cites. or State CDBG Programs for appropriations
for fiscal yearsd~g the period in which the City is participating in the Urban
County Cl)BG ertti;tle111ent program; and further, the City shall not be eligible to
participate in the HOME .and ESG programs except through the Urban County.
4. The City may participate in a HOME Program only through the County. Thus,
even if the County does not receive a HOME formula allocation, the City cannot
form a HOME consortium with other local governments.
5. The term of this Agreement shall commence on July 1, 2015, the beginning date
of this new Urban County Qualification Period, which will end on June 30, 2018.
After this three-(3)-year Qualification Period ends, this Agreement will
automatically renew for another period of three (3) years, unless the City provides
written notice at least 60 days prior to the end of the term that it elects not to
participate in a new qualification period. A copy of that notice must be sent to the
HUD Field Office. Before the end of the first three-year term, the County will
notify the City in writing of its right not to participate in the Urban County for a
successive three-year term.
The parties agree to adopt amendments to this Agreement incorporating changes
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necessary to meet the requirements for cooperation agreements set forth in the
Urban County Qualification Notice by HUD, prior to the subsequent three-year
extension of the term. Any amendment to this Agreement shall be submitted to
HUD as required by the regulations and any failure to adopt required amendments
will void the automatic renewal of the Agreement for the subsequent three-year
term.
6. This Agreement shall be effective for the period of time required for the
expenditure of all CDBG and/or applicable HOME funds allocated to the City
under this Agreement and appropriations from any program income therefrom and
for the completion of the funded activities. The County and City agree that they
cannot terminate or withdraw from this Agreement while it remains in effect.
The City and the County agree to cooperate to undertake, or assist in undertaking,
community development, community renewal, and lower income housing
assistance activities, specifically urban renewal and publicly-assisted housing,
including, but not limited to, the improvement or development of housing for
persons of low-to-moderate incomes, and other community or urban renewal
activities authorized by the Act.
The City and the County in the performance of this Agreement shall take all
actions necessary ot appropriate to asstire compliance with the County's
certification required by Section 104 (b) of Title I of the Act, as amended,
including the provisions oftheNational Environmental Policy Act of 1969, Title
VI of the Civil Rights Ac(of 1964,Title VIII of the Civil Rights Act of 1968,
Section 109 of Title I of the Act~ which . incorporates Section 504 of the
Rehabilitation Act of 1973, the Age Discrimination Act of 1975, affirmatively
furthering fair housing, Section Jeff the Housing and Urban Development Act of
1968, the Fair Housing Act, the Act, and all other applicable laws and regulations.
7. The City and County agree that CDBG and HOME funding is prohibited for any
activities in or in support of any Cooperating City that do not affirmatively further
fair housing within its own jurisdiction or that impede the County's action to
comply with its fair housing certification.
8. Pursuant to 24 CF:R 570.501 (b), the City is subject to all requirements applicable
to subrecipients,; including the requirement of a written agreement as set forth in
24 CFR 570.503.
9. The City shall report to the County of any income generated by the use of CDBG
or HOME funds received by the City. Any such program income must be remitted
to the County within 30 days of receipt if applicable. Such program income may
be used for eligible activities in accordance with all CDBG and HOME requirements
as may then apply.
10. The County shall be responsible for monitoring and reporting to HUD on the use
of any program income; therefore, the City shall be required to maintain
appropriate record-keeping and reporting for this purpose.
11. In the event of grant close-out or termination of this Agreement, any program
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income that is on hand or received subsequent to the close-out or change in status
shall be paid to the County within 60 days after grant close-out.
12. All program income generated from the disposition or transfer of real property
acquired or improved by the City, using CDBG and/or HOME funds or program
income, during the term of this Agreement, shall be subject to all the terms and
conditions of this Agreement, particularly Sections 6 through 11.
13. Any real property which is acquired or improved by the City during the term of
this Agreement, in whole or in part, using CDBG and/or HOME funds or program
income in excess of$25,000, shall be subject to the following standards:
a. The County shall be notified by the City in writing of any modification or
change in the use or disposition ofsuchreal property from that planned at
the time of the acquisition or improvement. Such notification shall be
made prior to the modification, change in use, or disposition.
b. If such real property is sold within five (5) years or transferred for a use
which does not qualify as an eligible activity under CDBG and/or HOME
regulations, the City shall reimburse to the County an amount equal to the
pro-rata share (){the current fair market value of the property or proceeds
from the sales .. \The pro-rata share shall be calculated by multiplying the
current market >yalue·by the percentage of the purchase price paid with
CDBG funds orpt()gramiJ1¢plJ1e.
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14. The City shall ip.ake avail~ble for UIJ'PeCtion and audit to County's and HUD's
representatives, upon request, ;J;t .anY time during the duration of this Agreement
and foraperiod offive (5) years thereafter, all of its books and records relating to
CDBG and.HOME program activitj~s and income.
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.15. Follciwiq:g the e1.ld of the· thre~-y~ar reimbursable contract period and after
resolving any financial or programmatic findings, if a City elects to leave the Los
Angeles Cdt;i11ty Gran(Program, and is not eligible to become an entitlement City,
the City will b¢ :unable fo request that its allocation or any remaining balance be
transferred to the City. Any remaining balance will be transferred to the funding
pool of the Supeivisorial District in which the City is located.
16. The cityhas adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement
agencies within its jurisdiction against any individuals engaged in
non-violent civil rights demonstrations; and
b. A policy of enforcing applicable State and local laws against physically
barring entrance to or exit from a facility or location which is the subject
of such non-violent civil rights demonstrations within its jurisdiction.
17. The City shall or shall continue to provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful
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manufacture, distribution, dispensing, possession, or use of a controlled
substance is prohibited in the City's workplace and specifying the actions
that will be taken against employees for violation of such prohibition.
b. Establishing an ongoing drug-free awareness program to inform
employees about:
1 The dangers of drug abuse in the workplace;
ii The City's policy of maintaining a drug-free workplace;
111 Any available drug counseling, rehabilitation, and employee
assistance programs; and
iv The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace.
c. Making it a requirem~ that each employee to be engaged in the
performance of the grant. be given a copy of the statement required by
paragraph "a" of this Section 17.
d. Notifying the employee in the statement required by paragraph "a" of this
Section 17 that, as a condition of employment funded by the CDBG and/or
HOME grant, theel)lpfoyeewill:
i AJ:>ide by the terms of the statement;:and
ii Notify the City in writing of his or her conviction for a violation of
a criiµjnal drug statute occurring in the workplace no later than
five<(S)qaiendar days after such conviction.
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e. NQtifying . Qle County in, )vriting, within ten (10) calendar days after
receiving notice under subparagraph d(ii) of this Section 17 from an
employee or otherwise receiving actual notice of any such conviction; and
the City must provide written notice, including position or title, of any
City employees convicted of any criminal drug statute to every County
officer or other designee who processed a CDBG or HOME grant which
funded any activity on which the convicted employee was working, unless
HUD has designated an identification number(s) of each affected grant.
f. Taking one (1) of the following actions, within thirty (30) calendar days of
receiving notice under subparagraph d(ii) of this Section 17, with respect
to any employee who is so convicted:
i Taking appropriate personnel action against such an employee, up
to and including termination, consistent with the requirements of
the Rehabilitation Act of 1973, as amended; or
ii Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such
purpose by a federal, State, local health, law enforcement, or other
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appropriate agency.
g. Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs a, b, c, d, e, and f, of this Section
17.
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IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused
this Agreement to be subscribed by the Executive Director of the Community Development
Commission of the County of Los Angeles, and the City has subscribed the same through its duly
authorized officers, on the day, month, and year first above written.
County Counsel Certification
The office of the County Counsel hereby certifies that the terms and provisions of this
Agreement are fully authorized under State and local laws, and that the Agreement provides full
legal authority for the County to undertake or assist in undertaking essential community
development and housing assistance activities, specifically urban renewal and publicly-assisted
housing.
By~~~~~~~~~~
Deputy County Counsel
COUNTY OF LOS ANGELES
By~~~~~~~~~~~~
SEAN ROGAN, Executive Director
Community Developm~n.t<:ommission
of the County of Los . Angeles
ATTEST:
City Clerk
APPROVED AS TO FORM:
JOHN F. KRATTLI
County Counsel
Deputy
Date
CITY OF RANCHO PALOS VERDES
By .
MAYOR
APPROVED AS TO FORM:
City Attorney
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