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HomeMy Public PortalAbout08) 7D CDBG Participation AgreementAGENDA ITEM 7.D. COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: May 19, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager Via: Scott Reimers, Interim Community Development Director By: Adam Gulick, Associate Planner SUBJECT: ADOPTION OF RESOLUTION NO. 20-5474 APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM BY AUTHORIZING THE MAYOR, OR THE MAYOR’S DESIGNEE, TO SIGN A COOPERATION AGREEMENT WITH THE COUNTY OF LOS ANGELES RECOMMENDATION: The City Council is requested to adopt Resolution No. 20-5474 (Attachment “A”) approving participation in the CDBG Program and authorize the Mayor, or the Mayor’s designee, to sign a cooperation agreement with the County of Los Angeles. BACKGROUND: 1. In 1974, the CDBG Program was enacted through the Housing and Community Development Act of 1974. The CDBG Program is a federally funded component of the U.S. Department of Housing and Urban Development (HUD). The CDBG Program was established to prov ide communities with resources to address a wide range of unique community development needs, including but not limited to: addressing slum and blighted conditions; assisting or benefiting low- and moderate- income families; or to meet the needs of special-population groups, such as the disabled or senior citizens. 2. On April 17, 2020, the City received a letter from the Los Angeles County Development Authority (LACDA) requiring the City to update their agreement with the County of Los Angeles, specifically relating to the City’s CDBG Program (Attachment “B”). City Council May 19, 2020 Page 2 of 2 ANALYSIS: Since Temple City has a population of less than 50,000, the City receives its annual CDBG funds through the LACDA; this is also referred to as a non-entitlement city. As indicated in the letter from LACDA, the County of Los Angeles is required to re-qualify as an Urban County with HUD every three years to participate in the CDBG Program. To continue to receive CDBG funds through LACDA, the City is required to enter into a cooperation agreement with LACDA. Prior to signing the new agreement, the City Council must adopt a resolution approving participation in the program. Once a copy of the resolution is signed and submitted to LACDA, the City can execute the agreement. A sample agreement has been included for reference (Attachment “C”). Continuing to participate with LACDA in the CDBG program will provide $209,440 in the next fiscal year. CITY STRATEGIC GOALS: Approval of the agreement with the County of Los Angeles will allow the City to continue to participate in the CDBG Program that will provide funds to further the City’s Strategic Goals of Public Health and Safety, Quality of Life, and Economic Development. FISCAL IMPACT: Adopting the resolution will allow the City to receive CDBG funds for future years. This proposal will not impact the General Fund as money spent by the City is reimbursed by LACDA. ATTACHMENTS: A. Resolution No. 20-5474 B. LACDA Letter dated April 17, 2020 C. Sample Cooperation Agreement ATTACHMENT A RESOLUTION NO. 20-5474 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA, APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BY AUTHORIZING THE MAYOR, OR THE MAYOR’S DESIGNEE, TO SIGN A COOPERATION AGREEMENT WITH THE COUNTY OF LOS ANGELES WHEREAS, the City of Temple City desires to participate in the Los Angeles County Community Development Block Grant (CDBG) Program for the qualification period beginning July 1, 2021; and WHEREAS, the City authorizes the execution of a Cooperation Agreement with the County of Los Angeles in order to receive said CDBG funds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, CALIFORNIA AS FOLLOWS: SECTION 1. The City Council adopts and approves the County of Los Angeles City Cooperation Agreement between the City of Temple City and the County of Los Angeles for the time period of July 1, 2021 through June 30, 2024 and self-renewing thereafter. SECTION 2. The City Council authorizes the Mayor, or the Mayor’s designee, to execute any and all documents necessary for participation in the Los Angeles Urban County CDBG Program on behalf of the City of Temple City. SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 19th day of May, 2020. ________________________ Tom Chavez, Mayor ATTEST: APPROVED AS TO FORM: ________________________ _______________________________ Peggy Kuo, City Clerk Greg Murphy, City Attorney Resolution No. 20-5474 Page 2 of 2 I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing Resolution No. 20-5474 was adopted by said Council at the regular meeting held on the 19th day of May 2020, by the following vote: AYES: Councilmember – NOES: Councilmember – ABSENT: Councilmember – ABSTAIN: Councilmember – ________________________ Peggy Kuo, City Clerk April 17, 2020 Bryan Cook, City Manager City of Temple City 9701 Las Tunas Drive Temple City, CA 91780 Dear Mr. Cook: 11111 HOUSING COMMUNITY ECONOMIC Los Angeles County Development Authority COOPERATION AGREEMENTS FOR THE CITY OF TEMPLE CITY'S CONTINUED PARTICIPATION IN THE LOS ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Every three (3) years, the County of Los Angeles must re -qualify with the U.S. Department of Housing and Urban Development (HUD) for entitlement status as an Urban County so that we can participate in the Community Development Block Grant (CDBG) Program. We are currently preparing to submit our documentation for this designation. The new qualification period will begin on July 1, 2021 and end on June 30, 2024. We hope that your experience with the CDBG Program has been positive and are confident that the CDBG funds have benefitted the City of Temple City's community. Due to the rebranding of our organization, we are now legally known as the Los Angeles County Development Authority. It is because of this reason, and in alignment with the Urban County Qualification requirements for the City to continue receiving CDBG funding via the Los Angeles Urban County CDBG Program through the new qualification period, the City of Temple City must: • Return the three (3) enclosed Cooperation Agreements signed with original signatures on all three (3) documents by no later than May 29, 2020; and • Submit a resolution of the City Council approving participation in the Los Angeles Urban County CDBG Program by authorizing the Mayor, or his/her designee, to sign a Cooperation Agreement with the County of Los Angeles by no later than May 29, 2020. If this is not feasible, please contact Treasure Sheppard, Analyst, to advise us of the date the City can submit the agreements and the resolution. The agreements and resolution should be submitted to: Treasure Sheppard, Analyst Los Angeles County Development Authority Community & Economic Development Division — Grants Management Unit 700 West Main Street Alhambra, CA 91801 000 700 West Main Street, Alhambra, CA 91801 Tel: (626) 262-4511 TDD: (626) 943-3898 lacda.org Acting Executive Director: Emilio Sales Commissioners: Hilda L. Solis, Mark Ridley -Thomas, Sheila Kuehl, Janice Hahn, Kathryn Barger Bryan Cook, City Manager April 17, 2020 Page 2 We look forward to a continued partnership with the City to improve the lives of the residents in your community. Please contact Treasure Sheppard, Analyst, at (626) 586-1737 or treasure.sheppard@lacda.org should you have any questions regarding this request or the City's continued participation in the Los Angeles Urban County CDBG Program. Sincerely, DAVON BARBOUR, Director Community & Economic Development Division DB:LJ:HR:ob K:\GMU COMMON\OPPA\GPA\Urban County Qualification Docs\2021-2023 Qualification Period\2021-2023 Urban County Renewal Cover Letter- General.Doe Attachments c: Adam Gulick, Associate Planner COUNTY OF LOS ANGELES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM HOME INVESTMENT PARTNERSHIPS PROGRAMS PARTICIPATING CITY COOPERATION AGREEMENT This Agreement is being entered into on this day of , to be effective on the 1st day of July 2021, by and between the City of Temple City, hereinafter referred to as "City," and the County of Los Angeles, by and through the Executive Director of the Los Angeles County Development Authority, hereinafter referred to as "County" and shall remain in effect for the three-year qualification period through the 30th day of June 2024. 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 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, herein called the "Act;" and WHEREAS, County and City desire to cooperate to undertake, or assist in undertaking, community development, community renewal of 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 Cranston -Gonzalez National Affordable Housing Act (NAHA), and the U.S. Housing Act of 1937, as amended; WHEREAS, the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program are required to have an approved 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 statues, 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 Los Angeles County Development Authority, herein referred as "County," to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and publicly assisted housing; and 1 Revised 03/2020 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 expenditure of such funds. County shall have final authority and responsibility for selecting projects and annually filing its Final Housing and Community Development Plan with HUD. In the event this Agreement extends into succeeding fiscal years and funds have not been appropriated, this Agreement will 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 of receipt of non -appropriation notice. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: The CDBG Entitlement Program, the HOME Program and the ESG Program. 3. In executing this Agreement, the City understands that it shall not be eligible to apply for grants under the Small Cites or State CDBG Programs for appropriations for fiscal years during the period in which the City is participating in the Urban County CDBG entitlement 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, 2021, the beginning date of the first year of the new Urban County Qualification Period, which will end on June 30, 2024. 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. Towards the end of the 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 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 2 Revised 03/2020 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 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 perfonnance of this Agreement shall take all actions necessary or appropriate to assure compliance with the Urban County's certification under Section 104 (b) of Title I of the Act, as amended, regarding Title VI of the Civil Rights Act of 1964; the Fair Housing Act and affirmatively furthering fair housing as cited in 24 CFR 91.225(a); Section 109 of Title I of the Act, which incorporates Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975, and all other applicable laws and regulations. Urban County funding is prohibited for activities in, or in support of, any City that does not affirmatively further fair housing within its local jurisdiction or that impedes the County's action to comply with the Fair Housing Certification. 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 CFR 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. The City may not sell, trade or otherwise transfer all or any portion of CDBG funds at another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in 3 Revised 03/2020 exchange for any other funds, credits or non -Federal consideration, but must use such funds for activities eligible under title I of the Housing and Community Act of 1974. 12. In the event of grant close-out or termination of this Agreement, any program 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 closeout. 13. 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. 14. 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: The County shall be notified by the City in writing of any modification or change in the use or disposition of such real 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 of 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 value by the percentage of the purchase price paid with CDBG funds or program income. 15. The City shall make available for inspection and audit to County's and HUD's representatives, upon request, at any time during the duration of this Agreement and for a period of five (5) years, thereafter, all of its books and records relating to CDBG and HOME program activities and income. 16. Following the end of the three-year reimbursable contract period and after resolving any financial or programmatic findings, if a City elects to leave the Los Angeles County Grant Program, and is not eligible to become an entitlement City, the City will be unable to 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 Supervisorial District in which the City is located. 17. The City has 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 4 Revised 03/2020 such non-violent civil rights demonstrations within its jurisdiction. 18. The City shall provide a drug -free workplace by: a. Publishing a statement notifying employees that the unlawful 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: i The dangers of drug abuse in the workplace; ii The City's policy of maintaining a drug -free workplace; iii 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 requirement 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 18. d. Notifying the employee in the statement required by paragraph "a" of this Section 18 that, as a condition of employment funded by the CDBG and/or HOME grant, the employee will: Abide by the terns of the statement; and ii Notify the City in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. e. Notifying the County in writing, within ten (10) calendar days after receiving notice under subparagraph d(ii) of this Section 18 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 18, with respect to any employee who is so convicted: Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the 5 Revised 03/2020 g. 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 appropriate agency. 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 18. Revised 03/2020 6 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 Los Angeles County Development Authority, 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 public assisted housing. By: Deputy County Counsel Date COUNTY OF LOS ANGELES CITY OF TEMPLE CITY By EMILIO SALAS Acting Executive Director Los Angeles County Development Authority ATTEST: City Clerk By By MAYOR OR DESIGNEE APPROVED AS TO FORM: APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By By Deputy City Attorney 7 Revised 03/2020