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HomeMy WebLinkAbout2011-06-06_cityofsanrafael_c7160ba75631282a548141fca09d20e4CITY OF�� Agenda Item No: 14 Meeting Date: June 6, 2011 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by Vphanie Lovett�te& City Manager Approval: SUBJECT: Resolution authorizing execution of a Community Development Block Grant Program (CDBG) and HOME Program Cooperation Agreement with the County of Marin. RECOMMENDATION: Staff recommends that the City Council adopt Resolution authorizing the Mayor to execute the Community Development Block Grant Program (CDBG) and Home Program Cooperation Agreement with the County of Marin. BACKGROUND: The CDBG Program provides grants from the U.S. Department of Housing and Urban Development (HUD) to local governments for housing, community facility, and human service programs serving lower income people. The HOME Investment Partnerships program provides additional assistance for housing activities. Marin County qualifies for both these programs because all the cities in the County have signed cooperation agreements to participate with the county in a single joint countywide program. San Rafael has had Cooperation Agreements with the County of Marin since 1974. The last agreement was signed in June of 2008 for a three year period ending this June. The County of Marin has proposed another three year term agreement with minor revisions to the terms of the 2008 Agreement. Marin County must have all Agreements with the cities renewed by June 30 in order to remain eligible for funds over the next three years. ANALYSIS: Because San Rafael has more than 50,000 population, HUD classifies it as a metropolitan city which could opt to receive funds separate from Marin County's urban county classification. In 2002, 2005 and 2008, San Rafael decided to remain within the urban county classification and the Cooperation Agreement included a provision that entitled the City Council, rather than the Local Area Committee, to make recommendations on the distribution of funds. This provision has worked quite well and has allowed the combination of City, Redevelopment Agency and CDBG funds in single projects. This provision has been retained in the 2011 Agreement. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 The proposed Agreement is included in this report as Attachment A. The County has provided a redlined comparison of the 2008 and the 2011 Agreements which is included in this report as Attachment B. The changes are in 3 areas: • Dates were revised, Adds an Emergency Shelter Grants Program required by HUD (note that it is unclear as to whether Congress will fund this program, so the reference may be moot) Allows for the expansion of the Countywide Priority Setting Committee by the addition of representative of classes protected under federal civil rights laws if the County and member cities decide to do so. These changes are minor, and do not present any concerns for the City. HUD requires cities which defer their metropolitan status and remain part of the urban county, to notify both HUD and the County of their intent to defer, by June 1, 2011. This notice of intent to defer was sent on May 23, 2011. Acceptance of the 2011 Cooperation Agreement will defer San Rafael's metropolitan status for another 3 years, to 2014. FISCAL IMPACT: No fiscal impact will occur; the CDBG allocation process will remain as it has for the last nine years. OPTIONS: • Adopt the proposed Cooperation Agreement • Propose changes to the provisions of the proposed Agreement • Reject the Agreement and elect to become a metropolitan city ACTION REQUIRED: Make a motion to adopt a resolution authorizing execution of a Community Development Block Grant Program (CDBG) and HOME Program Cooperation Agreement with the County of Marin RESOLUTION NO. RESOLUTION OF THE CITY OF SAN RAFAEL AUTHORIZING EXECUTION OF A THREE-YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND HOME PROGRAM COOPERATIVE AGREEMENT WITH THE COUNTY OF MARIN BE IT RESOLVED by the Council of the City of San Rafael as follows: WHEREAS it is mutually desired by the City of San Rafael and the County of Marin that they enter into a Cooperative 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; NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council of the City of San Rafael approves and authorizes the Mayor to execute, on behalf of the City, a three year Cooperation Agreement with the County of Marin for the Community Development Block Grant and HOME Programs, and that the City hereby adopts the policies included in the Cooperation Agreement. I, ESTHER C. BEIRNE, 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 Council of said City held on the 6th day of June, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Esther C. Beirne, City Clerk COOPERATION AGREEMENT THIS AGREEMENT, entered into this day of '2011, by and between CITY OF SAN RAFAEL , hereinafter referred to as "City" and COUNTY OF MARIN, hereinafter referred to as "County." WITNESSETH WHEREAS, 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 Shelter 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 Agreement shall become effective October 1, 2011, and be in effect until terminated, but termination may not occur before September 30, 2014. In any event, this agreement shall remain in effect until the Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Shelter Grants Program funds from appropriations for federal fiscal years 2012, 2013, and 2014 and any program income received with respect to activities carried out during the three-year qualification period are expended and the funded activities completed. 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, as an "urban county" for federal fiscal years 2012, 2013, and 2014, 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 participating cities and one (1) representative designated by the Board of Supervisors. 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 member(s). 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 OA the Community Development Block Grant Program, the HOME Investment Partnerships Program, and the Emergency Shelter 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 proj ects. 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, six subregional citizen participation/planning areas will be designated which will include the cooperating incorporated cities as well as adjacent unincorporated areas. These will be the Richardson Bay Planning Area, the Lower Ross Valley Planning Area, the Upper Ross Valley Planning Area, the Novato Planning Area, the San Rafael Planning Area, and the West Marin Planning Area. Each year, a minimum of one workshop or public hearing shall be conducted within each citizen participation/planning area by a panel consisting of one (1) representative designated by the Board of Supervisors and one (1) representative designated by each of the participating cities located within the planning area. With mutual consent of the Board of Supervisors and each of the participating cities located'within the planning area, a panel may be expanded to include an additional member. 3. After deduction of administrative expenses, 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 of the 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. The remaining sixty percent (60%) of the net Community Development Block Grant urban county allocation shall be suballocated to the interjurisdictional citizen participation/planning areas according to the general Community Development Block Grant funding distribution formula used by HUD to determine Marin County's allocation, based on 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 citizen participation/planning area funds shall be made by the citizen participation/planning area panels, as described above in Section 2, and then referred to the full Priority Setting Committee, which will make its recommendations 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 funded. In such an event, the County, acting in concert with the Priority Setting Committee and the affected citizen participation/planning area panel, 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. 4. Upon completion of planning area and 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. For any Community Development Block Grant Planning Area which includes a city 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 in that Planning Area 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, rather than a panel consisting,of one representative designated by the Board of Supervisors and one representative designated by each of the participating cities located within the Planning Area, will prepare the proposed list of projects for the use,of (d) thdt ,Planning Area's funds, and (b) that Planning Area's "proportional share" of CDBG Countywide Housing funds. "Proportional share" shall be defined as the same proportion by which Planning Area funds are distributed among the Planning Areas 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. The City Council must consider the needs of all eligible persons who reside within the Planning Area, including those outside 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 planning areas not implementing the provisions of this paragraph. 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. The next such qualification period will end September 30, 2014. Subsequent urban county qualification periods will end September 30 on every third year following that date. 7. Any public housing to be located in City and which under the Constitution of the State of California requires approval of the voters shall not be approved unless it receives a favorable majority of the voters of City. 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, 4 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 Shelter Grants Program funds from Federal Fiscal Years 2012, 2013, and 2014 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 required by Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including the National Environmental Policy Act of 1969, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Executive Order 11988, the Fair Housing Act, Section 109 of Title I . of the Housing and Community Development Act of 1974, 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 subrecipients,ih6Wding•thb•,'.• requirement of a written agreement as described in 24 CFR 570.503. 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. 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 fromapplying _to ,the. -State for.HOME or ESG funds, if the State allows. ` .,1.4;:',;:!The}cooperating.unit of.general local government has adopted and is enforcing, ? t 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. The phrase "cooperating unit of general local government" has the same meaning in this Cooperation Agreement as it does in HUD Notice #CPD -11-064. IN WITNESS WHEREOF, the parties have executed the above instrument on the day and year first above written. COUNTY OF MARIN Susan L. Adams, President Board of Supervisors ATTEST: CITY OF SAN RAFAEL Mayor ATTEST: Deputy Clerk of the Board Clerk 0 MASTER FORM APPROVED AS TO FORM: David L.' ltsman Deputy Coun ounsel County of Marin Wlioy s Mnin\RoYs Dora\0ENEXa\C00P\2011\2011 Agreement--Plnal.Dochb t6v 44 acl m *.wt This version shows how the 2008 City -County Cooperation Agreement was changed to create the 2011 City -County Cooperation Agreement. The major changes were: (1) Revising all dates. (2) Adding the Emergency Shelter Grants Program (ESG) as required by the current HUD instructions. (It's been many years since Marin qualified for a formula grant from ESG. Congress is divided on whether to increase or cut support for housing programs, so it's unclear whether Marin will actually receive ESG funding in the next three-year period.) (3) Adding language that permits expansion of the Countywide Priority Setting Committee and its local area subcommittees if the County and Cities come to mutual agreement to expand the committees. (Supervisors Judy Arnold and Susan Adams have suggested that additional members might be added to the committees to represent classes protected under federal civil rights laws. This concept is still in the preliminary stage. The proposed change in wording will give the County and Cities flexibility to add members if they come to agreement to do so.) COOPERATION AGREEMENT THIS AGREEMENT, entered into this day of , 201185, by and between , hereinafter referred to as "City" and COUNTY OF MARIN, hereinafter referred to as "County." WITNESSETH WHEREAS, 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 Shelter Grants Program (ESG). NOW, THEREFORE, BE IT HEREBY RESOLVED as follows: 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 4 to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities. This Agreement shall become effective October 1, 201108, and be in effect until. terminated, but termination may not occur before September 30, 201444. In any event, this agreement shall remain in effect until the Community Development Block Grant, and -HOME Investment Partnerships Program, and Emergency Shelter Grants Program funds from appropriations for federal fiscal years 2012, 2013, and 20142009 2010, and 2011 and any program income received with respect to activities carried out during the three-year qualification period are expended and the funded activities completed. 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, as an "urban county" for federal fiscal years 2012, 2013, and 20142009 2010, and 2011, 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 participating cities and one (1) representative designated by the Board of Supervisors. 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 member(s). 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, and -the HOME Investment Partnerships Program, and the Emergency Shelter 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, six subregional citizen participation/planning areas will be designated which will include the cooperating incorporated cities as well as adjacent unincorporated areas. These will be the Richardson Bay Planning Area, the Lower Ross Valley Planning Area, the Upper Ross Valley Planning Area, the Novato Planning Area, the San Rafael Planning Area, and the West Marin Planning Area. Each year, a minimum of one workshop or public hearing shall be conducted within each citizen participation/planning area by a panel consisting of one (1) representative designated by the Board of Supervisors and one (1) representative designated by each of the participating cities located within the planning area. With mutual consent of the Board of Supervisors and each of the participating cities located within the planning area, a panel may be expanded to include an additional member. 3. After deduction of administrative expenses, 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 of the Priority Setting Committee. Such distribution will be consistent with HUD guidelines and evaluation criteria 3 developed by participating cities and the county, to ensure consistency and facilitate implementation of countywide housing goals. The remaining sixty percent (60%) of the net Community Development Block Grant urban county allocation shall be suballocated to the interjurisdictional citizen participation/planning areas according to the general Community Development Block Grant funding distribution formula used by HUD to determine Marin County's allocation, based on 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 citizen participation/planning area funds shall be made by the citizen participation/planning area panels, as described above in Section 2, and then referred to the full Priority Setting Committee, which will make its recommendations 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 funded. In such an event, the County, acting in concert with the Priority Setting Committee and the affected citizen participation/planning area panel, 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. 4. Upon completion of planning area and 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), a*d-HOME, and ESG activities and submitting the Consolidated Plan and other documentation to HUD. 5. For any Community Development Block Grant Planning Area which includes a city 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 in that Planning Area 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, rather than a panel consisting of one representative designated by the Board of Supervisors and one representative designated by each of the participating cities located within 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. "Proportional share" shall be defined as the same proportion by which Planning Area funds are distributed among the Planning Areas 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. The City Council must consider the needs of all eligible persons who reside within the Planning Area, including those outside 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 M of HOME and I±;SG funds on a countywide basis, but may restrict the CDBG Countywide Housing funds remaining under its jurisdiction to planning areas not implementing the provisions of this paragraph. 6. 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. The next such qualification period will end September 30, 201444. Subsequent urban county qualification periods will end September 30 on every third year following that date. Any public housing to be located in City and which under the Constitution of the State of California requires approval of the voters shall not be approved unless it receives a favorable majority of the voters of City. This Cooperation Agreement shall not exempt any project from the required local government planning approval process. Community Development Block Grant, and -HOME, and ESG funds received by County may be allocated to projects only through the process described in this Cooperation Agreement. 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, a*d-from HOME Investment Partnerships Program funds, and from Emergency Shelter Grants Program funds from Federal Fiscal Years 2012, 2013, and 20142009 �0, aiid 2011 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. County, City, and all other cooperating cities shall take all actions necessary to assure compliance with the urban county's certification required by Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including the National Environmental Policy Act of 1969, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Executive Order 11988, the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974, 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 subrecipients, including the requirement of a written agreement as described in 24 CFR 570.503. 10. City shall inform County of any income generated by the expenditure of Community Development Block Grant funds, a+td-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, Rild-HOME Investment Partnerships Program, and I±:SG 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. 5 11. The following standards shall apply to real property acquired or improved in whole or in part using Community Development Block Grant, or -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, or -HOME, or ESG) of property acquired or improved with Community Development Block Grant, or -HOME, or ESG funds that is sold or transferred for a use which does not qualify under the Community Development Block Grant, or -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, erHOME, 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, an4HOME, 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. 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 ROME and ESG funding, respectively; that it may receive a -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. 14. 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 its jurisdiction. The phrase "cooperating unit of general local government" has the same meaning in this Cooperation Agreement as it does in HUD Notice #CPD -119-9-06494. R IN WITNESS WHEREOF, the parties have executed the above instrument on the day and year first above written. COUNTY OF MARIN By: Susan L. AdamsGhafles MeGlashan, President Board of Supervisors ATTEST: wa Mayor ATTEST: Deputy Clerk of the Board Clerk MASTER FORM APPROVED AS TO FORM: David L. Zaltsman Deputy County Counsel County of Marin 1ARffy!, iui"*yf,D cAGRNRRnUW0Pl2Fle---- ; ^"' 'wFDne/rb EARoy's Maln\Roy's DocAGENERALWOOM2011\2011 Agreement --Redline Vemion.Dodrb