Loading...
HomeMy WebLinkAboutED Cooperation Agreement with County of Marin for Grant Programs____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: June 1, 2020 Disposition: Resolution 14800 Agenda Item No: 4.c Meeting Date: June 1, 2020 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Danielle O’Leary, Director Ethan Guy, Principal Analyst City Manager Approval: ______________ TOPIC: COOPERATION AGREEMENT WITH COUNTY OF MARIN FOR GRANT PROGRAMS SUBJECT: RESOLUTION OF THE CITY OF SAN RAFAEL AUTHORIZING EXECUTION OF A THREE-YEAR COOPERATION AGREEMENT WITH THE COUNTY OF MARIN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME PROGRAMS RECOMMENDATION: Adopt Resolution BACKGROUND: The Community Development Block Grant Program (CDBG) provides grants from the U.S. Department of Housing and Urban Development (HUD) to local governments for housing, community facility, and public service programs serving lower-income people. The Home Investment Partnerships Program (HOME) provides additional assistance for affordable housing activities. Marin County qualifies for both the CDBG and HOME programs because the cities have signed cooperation agreements to participate with the County government in a single joint countywide program. This qualifies Marin County as a HUD “urban county,” enabling Marin to receive annual CDBG and HOME grant allocations established by formula. In the 2019 funding cycle, CDBG provided Marin County $1.6 million for housing, community facility, and public service activities, and the HOME Investment Partnerships Program (HOME) provided an additional $860,000 for affordable housing projects. These programs have been uniquely effective in Marin because they combine a steady stream of federal funding with local control over funding criteria and project selection. In 2017, all of the cities in Marin County agreed to enter into new three-year CDBG Cooperation Agreements enabling all jurisdictions to obtain formula funds as an urban county. On May 15, 2017, the San Rafael City Council adopted Resolution 14319 authorizing the City Manager to enter into this new three year agreement. The current CDBG cooperation agreements will expire this year, and in order for the County to continue receiving maximum funds for fiscal years 2021-2023, and subsequent three-year periods thereafter, it is SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 necessary for each city and the county to renew their joint participation by formally executing a new cooperation agreement by June 11, 2020. In order to execute a new cooperation agreement, all practicing jurisdictions must adopt a resolution authorizing execution of this new cooperation agreement (Attachment 1). ANALYSIS: Changes from 2017 Cooperation Agreement The 2020 Cooperation Agreement (Attachment 2) is similar to the 2017 agreement with minor revisions. The main change from 2017 is that the 2020 Cooperation Agreement will automatically renew for each new consecutive three-year qualification period upon expiration of each qualification period. This change replaces the practice of bringing this item to each participating agency every three years. The new language further clarifies that if any party wishes to stop the automatic renewal, they must provide written notice to the other party at least 60 days prior to the end of the then current qualification period that it is electing to discontinue its participation in the Cooperation Agreement for subsequent qualification periods. Entitlement Jurisdictions With a population over 50,000, San Rafael meets the criteria to establish itself as an “entitlement jurisdiction”, which would allow the City to receive its proportion of CDBG and HOME funding independently of other Marin jurisdictions. By entering into a cooperation agreement, San Rafael is relinquishing this authority and designating the County of Marin as the entitlement jurisdiction through the “urban county” HUD qualification described earlier. This designation enables the County of Marin to receive annual CDBG and HOME grant allocations established by formula, and then distribute the funding proportionally to the participating jurisdictions. Additionally, by designating the County of Marin as the entitlement jurisdiction, the County is taking on the responsibilities of managing and administering the CDBG and HOME programs. These responsibilities include: disseminating program funds, Davis-Bacon Compliance, NEPA reviews, development and updating of Consolidated Plans and Annual Action Plans, and all CDBG and HOME related monitoring and reporting. Increasingly, state and federal funding programs are utilizing the CDBG framework for allocating resources, including the recent federal CDBG-CV funding allocations and the upcoming and annual state Permanent Local Housing Allocation (PLHA) program. Due to this increased reliance on the entitlement jurisdictions, staff has begun discussions with County of Marin staff to formalize policies and procedures for handling funding allocations separate from the CDBG and HOME programs. Any such policies and procedures would be brought to City Council for review as necessary. Staff Recommendation Staff recommends that City Council adopt the Resolution to approve and authorize the Mayor to execute on behalf of the City, a three-year Community Development Block Grant Cooperation Agreement with the County of Marin. FISCAL IMPACT: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 There is no fiscal impact associated with continuing the CDBG Cooperation Agreement with the County of Marin. It is important to note that in return for managing the CDBG and HOME programs, the County of Marin does take approximately twenty percent (20%) of the CDBG funds that are awarded annually to cover administrative expenses. This practice is allowed per Section 3 of the cooperation agreement. County of Marin staff have indicated that these funds do not fully recuperate their CDBG and HOME-related administrative expenses. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt Resolution 2. Adopt resolution with modifications. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Adopt Resolution ATTACHMENTS: 1. Resolution approving Cooperation Agreement with County of Marin 2. 2020 Cooperation Agreement RESOLUTION NO. 14800 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING EXECUTION OF A THREE-YEAR COOPERATION AGREEMENT WITH THE COUNTY OF MARIN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME PROGRAMS WHEREAS, it is mutually desired by the City of San Rafael and the County of Marin that they may enter into a Cooperation Agreement, in accordance with the Housing and Community Development Act of 1974, as amended, in order to jointly undertake community renewal and lower income housing assistance activities; and WHEREAS, as a result of the Cooperation Agreement between the Marin cities and towns and the County of Marin, Marin has received over $72 Million in CDBG and HOME funding for housing and community facilities and public service projects benefitting lower income persons since 1975; NOW THEREFORE BE IT RESOLVED that the City Council of the City of San Rafael approves and authorizes the Mayor, on behalf of the City, to execute a three-year Cooperation Agreement with the County of Marin for the Community Development Block Grant Program, the HOME Investment Partnerships Program and the Emergency Solutions Grants Program. The three-year period shall be for the federal Fiscal Years 2021, 2022 and 2023. BE IT FURTHER RESOLVED, that the City hereby adopts the policies included in the Cooperation Agreement. I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on the 1st day of June, 2020 by the following vote: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ___________________ LINDSAY LARA, City Clerk COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM COOPERATION AGREEMENT THIS AGREEMENT, entered into this day or A_ , 2020, by and between the CITY OF SAN RAFAEL, hereinafter referred to as "City" and COUNTY OF MARIN, hereinafter referred to as "County." WITNESSETH WHEREAS, the City of San Rafael _ _ is a duly constituted municipal corporation under the laws of the State of California, and is empowered thereby to undertake essential community renewal and lower-income housing assistance activities; and WHEREAS, COUNTY OF MARIN is a duly constituted subdivision of the State of California, and is also empowered by State law to undertake essential community renewal and lower-income housing assistance activities; and WHEREAS, Government Code Sections 6500, et seq., authorize two or more public agencies to jointly exercise any power common to both; and WHEREAS, it is mutually desired by the parties hereto to enter into a Cooperation Agreement, in accord with the Housing and Community Development Act of 1974, as amended, and applicable Federal rules and regulations adopted pursuant thereto, whereby the parties shall jointly undertake community renewal and lower-income housing assistance activities, including those funded by the Community Development Block Grant Entitlement Program (CDBG), the HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grants Program (ESG). NOW, THEREFORE, BE IT HEREBY RESOLVED as follows: 1. The parties hereto agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities, pursuant to the Housing and Community Development Act of 1974, as amended, the HOME Investment Partnerships Act, as amended, and the Stewart B. McKinney Homeless Assistance Act, as amended. City agrees to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities. This Cooperation Agreement shall become effective for an initial three-year term on October 1, 2020, and be in effect through, and shall not be terminated prior to, September 30, 2023, after which the term shall be automatically renewed unless action is taken by the County or City prior to the end of the term electing not to participate in a new qualification period. This Cooperation Agreement shall automatically renew for participation in successive three-year qualification periods upon expiration of each qualification period, unless the County or the City provides written notice to the other party at by the date specified in HUD's urban county qualification notice for the next qualification period that it is electing to discontinue its participation in this Cooperation Agreement for the successive qualification period. A copy of that notice shall be sent to the other party and to the local Housing and Urban Development (HUD) Field Office, to the designated contacts detailed in Section 16 below. County shall provide City with written notice by the date specified in HUD's urban county qualification notice for the next qualification period of its right not to participate in the urban county for a successive three- year term with a copy of the notification sent to the HUD Field Office City may discontinue its participation by taking those actions set forth by Section 6 of this agreement, in conjunction with notification to the County and HUD as specified herein. In the event that the County proposes to enter into an agreement on terms that would replace or amend the terms of this agreement for any subsequent qualification period then County shall notify City of the terms being proposed as soon as County becomes aware of the need to replace or amend this agreement, but in any event by no later than the date specified in HUD's urban county qualification notice for election to discontinue its participation in this Cooperation Agreement for the next qualification period. Thereafter, City shall notify County as to whether it shall accept the proposed terms by no later than the time required to notify the County of its intent to elect to discontinue participation as specified in HUD's urban county qualification notice for the next qualification period. The parties stipulate and agree to adopt any changes necessary to meet the requirements for a cooperation agreement set forth in an urban county qualification notice applicable to a subsequent three-year urban county qualification period. The parties shall submit such amendment to HUD as provided in the urban county qualification notice. Failure to do so shall result in the automatic renewal for such qualification period being void. This agreement shall remain in effect until the Community Development Block Grant, HOME Investment Partnership Program, and Emergency Solutions Grants Program funds from appropriations for federal fiscal years 2021, 2022, 2023, and any program income received with respect to activities carried out during the three-year qualification period are expended and the funded activities completed, or until such time as it is replaced by a fully executed agreement of the patties. Neither County nor City may terminate or withdraw from this Cooperation Agreement while it remains in effect. 2. Upon certification of Marin County, including all or a portion of the incorporated cities within the County, as an "urban county" for federal fiscal years 2021, 2022, and 2023, and subsequent three-year periods thereafter, under the Housing and Community Development Act of 1974, as amended, and applicable rules and regulations adopted pursuant thereto, a Priority Setting Committee shall be formed consisting of one (1) representative designated by each of the cities with a population over 50,000 and one (1) representative designated by the Board of Supervisors. All other participating cities and towns may each designate up to one representative. With mutual consent of the Board of Supervisors and each of the participating cities, the Priority Setting Committee may be expanded to include one or more additional community member(s) who represent the interests of racial and ethnic minorities, individuals with disabilities, and/or other protected classes. Each representative shall have equal voting rights on the Committee. The Committee shall prepare a proposed budget for the use of funds, and any other documentation required by the U.S. Department of Housing and Urban Development (HUD) for the Community Development Block Grant Program, the HOME Investment Partnerships Program, and the Emergency Solutions Grants Program, including, but not limited to, a list of specific projects to be undertaken and priorities for implementation for both housing and community development projects. In preparing its proposed plans, project priorities, proposed budget, and other documentation, the Committee shall disseminate complete information to citizens of Marin County concerning its proposals and alternatives; shall conduct public hearings to obtain the views of citizens on community development and housing needs; and shall provide citizens with adequate opportunity to participate in the development of programs and priorities. To ensure adequate participation in the planning process, three planning areas will be designated which will include the cooperating incorporated cities as well as adjacent unincorporated areas. These will be the Novato Planning Area, the San Rafael Planning Area, and the County Other Planning Area, which consists of rural and small communities. After deduction of administrative expenses and public service allocations consistent with HUD regulations, forty percent (40%) of the net Community Development Block Grant monies and one hundred percent (100%) of the net HOME Investment Partnerships Program monies allocated annually to the County of Marin as an "urban county" under the Housing and Community Development Act of 1974, as amended, and the HOME Investment Partnerships Act, as amended, shall be allocated for housing purposes on a countywide basis. The portion of CDBG funds described in the immediately preceding sentence shall be known as "CDBG Countywide Housing funds." Distribution of such funds will be made by the Board of Supervisors, on recommendation ofthe Priority Setting Committee. Such distribution will be consistent with HUD guidelines and evaluation criteria developed by participating cities and the county, to ensure consistency and facilitate implementation of countywide housing goals. a. The Priority Setting Committee will seek to allocate funds based on the principles of geographic equity and the general Community Development Block Grant funding distribution formula used by HUD to determine Marin County's allocation, the latest available countywide data on population, the extent of poverty, and the extent of housing overcrowding, with the provision that the extent of poverty be counted twice. However, a different distribution formula is hereby expressly authorized if and when necessary to comply with Title I of the Housing and Community Development Act of 1974, as amended. Recommendations for the use of funds shall be made by the Priority Setting Committee, as described above in Section 2, and then referred to the Marin County Board of Supervisors. The Marin County Board of Supervisors will make the final funding decisions. If any project submitted by County as a portion of the Community Development Block Grant documentation is found to be ineligible by HUD, the proposed project shall not be ft►nded. In such an event, the County, acting in concert with the Priority Setting Committee may submit an alternative priority project which is within the original cost and in line with the stated needs and objectives of County, provided such a resubmission conforms with the rules and regulations of the Department of Housing and Urban Development for the administration of Title I of the Housing and Community Development Act of 1974, as amended. Upon completion of Priority Setting Committee deliberations, the proposed budget and other documentation shall be submitted to the Marin County Board of Supervisors for review and approval. The Marin County Board of Supervisors will have final responsibility for selecting Community Development Block Grant (CDBG), HOME, and ESG activities and submitting the Consolidated Plan and other documentation to HUD. 5. For any Planning Area with a population of 50,000 or more (according to population estimates issued by the U.S. Department of Housing and Urban Development), the system described in Section 3 of this Agreement for allocation of Community Development Block Grant funds will, at the option of the largest city in the Planning Area be modified as follows: The City Council of the largest city in the Planning Area will prepare the proposed list of projects for the use of (a) that Planning Area's funds, and (b) that Planning Area's "proportional share" of CDBG Countywide Housing funds allocated according to the formula described in Section 3 of this Agreement. The City Council will establish its own system for setting local funding priorities, but its process for selecting projects must include a public hearing and consistency with all regulations. The City Council must consider the needs of all eligible persons who reside within census tracts associated with the City, including those residing outside the city limits, but will not be subject to any quotas with regard to the type or location of projects. The resulting recommendations will be referred to the full Priority Setting Committee and then to the Marin County Board of Supervisors for review and approval. The Priority Setting Committee will recommend allocation of HOME and ESG funds on a countywide basis, but may restrict the CDBG Countywide Housing funds remaining under its jurisdiction to geographic areas not implementing the provisions of this paragraph. This Section 5 shall not be applied in any year that the total Community Development Block Grant monies allocated to Marin County is less than $500,000. In any year that the total Community Development Block Grant monies allocated to Marin County is less than $500,000, the Priority Setting Committee will make all funding recommendations pursuant to the system described in Section 3. 6. To exercise its rights under Section l to discontinue its participation in this agreement City may terminate its participation in this Cooperation Agreement and membership on the Priority Setting Committee by a single majority vote of its governing body. Such termination shall take effect only at the end of the federal three-year urban county qualification period in which the action is taken and following notice to the County and HUD as specified in Section 1. The first qualification period to which this agreement shall apply will end September 30, 2023. Subsequent urban county qualification periods will end September 30 on every third year following that date. 7. This Cooperation Agreement shall not exempt any project from the required local government planning approval process. Community Development Block Grant, HOME, and ESG funds received by County may be allocated to projects only through the process described in this Cooperation Agreement. 8_ Pursuant to the Cooperation Agreement, County, acting through the Board of Supervisors, shall be the primary general-purpose local governmental unit under the Housing and Community Development Act of 1974, as amended. It shall be the responsibility of County to apply for grants, to administer all funds received, and to undertake or assist in undertaking essential community renewal and lower income housing assistance activities. County shall have the authority to carry out activities which will be funded from annual Community Development Block Grants, from HOME Investment Partnerships Program funds, and from Emergency Solutions Grants Program funds from Federal Fiscal Years 2021, 2022, and 2023, and subsequent three- year periods thereafter, appropriations and from any program income generated from the expenditure of such funds. Records shall be kept by County in accordance with approved accounting procedures, and said records shall be available for public inspection at all times. 9. County, City, and all other cooperating cities shall take all actions necessary to assure compliance with the urban county's certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and affirmatively furthering fair housing. County, City, and all other cooperating cities shall also take all actions necessary to assure compliance 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 and the Age Discrimination Act of 1975), and other applicable laws. Use of urban county funds for activities in, or in support of, any cooperating city 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 shall be prohibited. Pursuant to 24 CFR 570.501(b), City is subject to the same requirements applicable to sub recipients, including the requirement of a written agreement as described in 24 CFR 570.503. County, City, all other cooperating cities, metropolitan cities, urban counties, units of general local government, Indian tribes, and insular areas that directly or indirectly receive funds provided under Title I of the Housing and Community Development Act of 1974, as amended, may not sell, trade, or otherwise transfer all or any portion of such funds to another such entity in exchange for any other funds, credits, or non -Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended. 10. City shall inform County of any income generated by the expenditure of Community Development Block Grant funds, HOME Investment Partnerships Program funds, or ESG funds received by City. Any such program income shall be paid to County for use for eligible activities in accordance with all Community Development Block Grant, HOME Investment Partnerships Program, and ESG requirements as may then apply. County has the responsibility for monitoring and reporting to HUD on the use of any such program income, thereby requiring appropriate recordkeeping and reporting by City as may be needed for this purpose. In the event of close-out or change in status of City, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to County. 11. The following standards shall apply to real property acquired or improved in whole or in part using Community Development Block Grant, HOME, or ESG funds that is within the control of a participating City. a. City shall give County timely notification of any modification or change in the use of the real property from that planned at the time of acquisition or improvement including disposition. b. City shall reimburse County in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of funds other than Community Development Block Grant, HOME, or ESG) of property acquired or improved with Community Development Block Grant, HOME, or ESG funds that is sold or transferred for a use which does not qualify under the Community Development Block Grant, HOME, or ESG regulations. C. City shall pay to County any program income generated from the disposition or transfer of property prior to or subsequent to the close-out, change of status or termination of the cooperation agreement between County and City. Any program income shall be allocated by County for eligible activities in accordance with all Community Development Block Grant, HOME, or ESG requirements as may then apply. 12. The parties hereto agree that the final responsibility for analyzing needs, setting objectives, developing plans, selecting projects for community development and housing assistance, selecting Community Development Block Grant, HOME, and ESG activities, and filing the Consolidated Plan and other required documentation rests with County, as required by the Housing and Community Development Act of 1974, as amended. 13. The City shall defend, save, hold harmless and indemnify the County, its officers, agents and employees from all liabilities and claims for any fines, penalties, bodily injury, death, sickness or damages of any type fi-om any cause whatsoever that arises from or is connected with (i) the City's failure to comply with any requirement of the CDBG Act and the HOME Act or the regulations, guidelines, bulletins or circulars that are issued pursuant thereto, and (ii) any City activity that is financed by funds granted hereunder pursuant to the CDBG Act and the HOME Act. Without limiting the foregoing, the provisions of this paragraph apply fully in the event the City participates in the Section 312 Federal Rehabilitation Loan Program in conjunction with the Community Development Block Grant and HOME Investment Partnerships Act programs. 14. By executing this Community Development Block Grant Program Cooperation Agreement, City understands that it may not apply for grants under the State Community Development Block Grant Program from appropriations for fiscal years during the period in which it participates in the urban county's Community Development Block Grant Program; that it will be part of the urban county for the HOME Program and ESG if the urban county receives HOME and ESG funding, respectively; that it may receive formula allocations under the HOME Program and ESG only through the urban county; and that, even if County does not receive a HOME formula allocation, City cannot form a HOME consortium with other local governments except through the urban county. This does not preclude City or County from applying to the State for HOME or ESG funds, if the State allows. 15, The cooperating unit of general local government 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 such non- violent civil rights demonstrations within jurisdictions. The phrase "cooperating unit of general local government" has the same meaning in this Cooperation Agreement as it does in HUD Notice #CPD -13-04. 16. All notices under this agreement shall be in writing (unless otherwise specified) delivered to the parties by hand, by commercial courier service, electronic mail, or by United States mail, postage prepaid, addressed to the parties at the addresses set forth below or such other addresses as the parties may designate by notice. 17. Nothing contained in this agreement shall be construed to create, and the parties do not intend to create, any rights in third parties. 18. Except as otherwise provided herein, this agreement may not be changed, modified or rescinded except in writing, signed by all parties hereto, and any attempt at oral modification of this agreement shall be void and of no effect. 19. This agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts IN WITNESS WHEREOF, the parties have executed the above instrument on the day and year first above written. COUNTY OF MARIN By: '4�L /—I, Katie Rice, President Board of Supervisors ATTEST: 1 Deputy Clerk of the Board MASTER FORM APPROVED AS TO FORM: Tarisha Bal Deputy County Counsel County of Marin CITY OF SAN RAFAEL By: Gary hillips, Mayor ATTEST: • k��L'V� jr Lindsay Lara, City Clerk i Lisa A. Goldfien, Assistan City Attorney