HomeMy WebLinkAboutC37080 Elect Not to Participate Urban County CDBG PrgrmMEETING DATE:
PREPARED BY
REQUEST:
Recommendation
STAFF REPORT
CITY OF PALM DESERT
CITY MANAGER'S DEPARTMENT
June 11, 2020
Christopher Gerry, Management Analyst
Elect not to participate in the Urban County Community Development Block
Grant Program for Federal Fiscal Years 2021, 2022 and 2023.
By minute motion, authorize the City Manager to sign a notice of non -participation electing not to
participate in the Urban County (Riverside County) Community Development Block Grant Program for
Federal Fiscal Years 2021, 2022 and 2023.
Backaround
The Community Development Block Grant (CDBG) Program, which is administered by the U.S.
Department of Housing and Urban Development's (HUD), provides eligible jurisdictions federal funds
to address the needs of low and moderate income persons and families, allow for neighborhood
improvements, and available for urgent needs.
On May 24, 2018, the Council authorized the participation in the County of Riverside's Urban County
Program for Fiscal Year (FY) 2019-20 and beyond. The previous staff report can be found as
Attachment A. Following the submission of the appropriate documentation, the County and City were
informed entitlement jurisdictions can only elect to participate every three years. Fast forward, the City
must reconsider and notify the County if interested in participating in the Urban County Program.
Participating in the Urban County Program presented many advantages two years ago; however,
changes in the current environment, eligible activities, and program operations have now made the
Urban County Program less advantageous. Therefore, City staff recommends remaining a direct
entitlement jurisdiction in the CDBG Program as it has since FY 2003-04. Depending on the Council's
direction, the City Manager must sign and submit the notice of participation or notice of non -
participation (Attachment B) by June 22, 2020.
LEGAL REVIEW
RW H
Robert W. Hargreaves
City Attorney
DEPT. REVIEW
Y(T
Lauri Aylaian
City Manager
City Manager, Lauri Aylaian: cJ
Attachment
FINANCIAL REVIEW
Janet M. Moore
Director of Finance
A. Staff Report (May 24, 2020)
B. Notice of Participation / Notice of Non -Participation
ASSISTANT CITY MANAGER
N/A
Andy Firestine
Assistant City Manager
CONTRACT NO. C37080
STAFF REPORT
CITY OF PALM DESERT
FINANCE DEPARTMENT
MEETING DATE: May 24, 2018
PREPARED BY: Niamh Ortega, Administrative Secretary
REQUEST: Adopt Resolution No. 2018- 31 approving the Community
Development Block Grant Joint Recipient Cooperative Agreement
for Fiscal Years 2019-2020 and 2020-2021
Recommendation
By Minute Motion, that the City Council:
1. Waive further reading and adopt Resolution No. 2018- 31
authorizing participation in the County of Riverside's Urban County
Program for Fiscal Years 2019-2020 and 2020-2021;
2. Authorize the City Attorney to finalize the Joint Recipient
Cooperation Agreement with the County of Riverside; and
3. Authorize the City Manager to execute the Joint Recipient
Cooperation Agreement with the County of Riverside allowing the
City to participate in the Urban County Consolidated Planning
Program, and take any other actions necessary to effectuate the
actions taken herewith.
Strategic Plan Obiective
N/A
Background Analvsis
The Community Development Block Grant (CDBG) is a Federally funded program
created by Congress in 1974 that awards grants to local governments to develop viable
communities by providing decent housing, suitable living environments, programs, and
expanding economic opportunities, principally for persons of low- and moderate -
income. Every year, CDBG funds are allocated by the U.S. Department of Housing and
Urban Development (HUD) to state and local governments to carry out a wide range of
community development activities directed toward revitalizing neighborhoods, economic
development, and providing improved community facilities and services.
May 24, 2018 — Staff Report
Resolution No. 2018- 31 authorizing participation in Urban County Program
Page 2 of 4
The City of Palm Desert has been a recipient of CDBG funds for over 35 years. The
earliest awards facilitated projects such as the College of the Desert Childcare Training
Center, Joslyn Senior Center, Desert Arc (formerly known as the Foundation for the
Retarded) expansion, and San Pablo park which is now a part of the Civic Center
campus. The City originally received funding as a Metropolitan City in a joint agreement
with the County. Over the years, the City has alternated between retaining its status
under the County program and being a direct CDBG recipient known as an Entitlement
City. For the last 16 years, Palm Desert has been designated as an Entitlement City.
In April 2018, the County of Riverside Economic Development Agency (EDA) issued its
annual notification to the City Manager that the City could elect to rejoin the County as a
Metropolitan City/Joint Recipient in the Urban County Community Development Block
Grant program or alternatively could elect to continue its non -participation and remain
an Entitlement City. Staff has weighed the pros and cons of each option, and
determined that it is in the best interest of the City to elect to participate through a Joint
Recipient Cooperative Agreement (Metropolitan City Agreement) with the EDA. The
Agreement covers a three-year period; Fiscal Years 2018-2019, 2019-2020, and 2020-
2021. The City is obligated to complete the current cycle as an Entitlement City and is
eligible to participate in FY2019-2020 for the last two years of the current agreement
period.
Should the City elect to participate, it may choose its status as a Metro City or
Cooperating City. A comprehensive comparison of a Metro City vs Cooperating City is
attached as Exhibit A. With either option, the City retains full oversight of the solicitation
and selection of projects and activities. The County has confirmed that the City would
remain responsible for the public hearing and application process. Staff considers the
Metro City status to be the most beneficial to the City as it retains its entire entitlement
allocation, can allocate its full 15% public service cap, and retains a percentage of the
administrative expense allocation in order to carry out the administrative tasks
associated with the grant. As a Cooperating City, the City receives an adjusted
allocation of 60-70% of the total amount, has a lower public service cap, and is not
entitled to any of the administrative funding.
In the years that the City has operated as an Entitlement City, it has received funds that
range from $419,000 in FY 2003-2004 to $269,514 in FY 2015-2016, as shown in
Exhibit B. Currently, there is a 20% cap on administrative costs, which covers Fair
Housing obligations (approximately 53% of cap) and City staff administrative expenses.
Using the most recent allocation of $354,119, the 20% administration cap translates to
$70,723, with $37,100 issued to Fair Housing Council and $33,723 retained for City
administrative expenses.
It is estimated that the City's staff costs range from $175,000 to $250,000 to administer
the CDBG program as an Entitlement City but varies each year depending on the cycle
year. In the past, the General Fund has paid for most of the City's costs including staff
time for the administration of this program. As a Metro City, the City would be able to
GAI-mance'Janet Moore,FINANCF.\SR - Auth City to participate in Urban County program 052418 jm doc
May 24, 2018 — Staff Report
Resolution No. 2018-31 authorizing participation in Urban County Program
Page 3 of 4
use the portion of the administration allocation toward these costs. Additionally,
participation in the Urban County program would result in significant savings to staff
time and resources while incurring a similar level of benefit to the City and local
agencies through CDBG funds.
Of the twenty percent (20%) permissible for administration, the County is requiring
seventy percent (70% or approximately $49,576) for administration of the Urban County
program. On behalf of the City, the EDA's duties include, but are not limited to the
following:
• Review of all funding applications for HUD eligibility.
• Carries out all administration work between HUD, applicants, and City for
approved projects.
• Updates and informs cities of all HUD rules and regulations.
• Drafts and submits all required one-year and five-year reporting to HUD.
• Handles and administers the Integrated Disbursement and Information System
(IDIS) that HUD requires and utilizes.
• Administers all fair housing activities.
Under the Urban County program, the County is responsible for all grant -related
administrative activities, thereby relieving staff of the majority of the reporting required
throughout the specialized CDBG/HUD process. This process alone currently includes
four departments' review of the plans and reports as well as the implementation
requirements (including compliance and compatibility with the City's zoning, housing
restrictions, and the City's municipal code).
The City would not be eligible for a limited number of federal grants and loans under the
metro city designation, namely the HOME, Emergency Services Grant (ESG) and
Micro -Enterprise Loan programs. However, the City may change its participation for the
next cycle beginning FY 2021-2022, opting to become a cooperating city or revert to its
entitlement status if deemed appropriate. Currently the City does not participate in these
programs. The Continuum of Care's ESG funds come from the State Department of
Housing and Community Development (HCD) allocation of ESG, and even though the
City would not be eligible to avail of the County's ESG funds, it is free to continue
participation in the Continuum of Care program or seek its own ESG funds from the
State's HCD.
Fiscal Analvsis
Although the funding levels that will be awarded by HUD for FY 2019-2020 and FY
2020-2021 are unknown at this time, execution of this agreement guarantees that the
City will be entitled to CDBG Program resources allocated by HUD and administered by
the EDA as a Joint Recipient Cooperation Agreement (Metropolitan City).
GAFinance'Janct Moore\FINANCB\SR - Auth City to participate in Urban County program 052418 jm.doc
May 24, 2018 — Staff Report
Resolution No. 2018- 31 authorizing participation in Urban County Program
Page 4 of 4
Participation in the Metropolitan City agreement with the EDA allows the City to enjoy
the benefits of an Entitlement City without having to contend with the cumbersome
requirements imposed by HUD.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
Robert Hargreaves Jan Moore et Moore ' Lauri A laian
9 Y
Legal Counsel Director of Finance Director of Finance Executive Director
ATTACHMENTS:
1. Exhibit A - Riverside County Urban County Program: Joint Metro City vs
Cooperating City
2. Exhibit B - History of CDBG Awards FY 2003-2004 through FY 2018-2019
3. Resolution No. 2018- authorizing participation in the County of Riverside's
Urban County Program for FY 2019-2020 and 2020-2021
4. Joint Recipient Cooperation Agreement for the Community Development Block
Grant for FY 2019-2020 and 2020-2021
5. Urban County Qualification — Notice of Participation Status
G9FinanceUanet Moore\FINANCL'.SR - Auth City to participate in Urban County program 052418 pn.doc
EXHIBIT A
Joint Metro City vs Cooperating City
Riverside County Urban County Program
Metro City Status
Receives entire Entitlement Allocation
City enters into a multi -year Joint Urban County
Metro City Agreement with County and annual
Supplemental Agreements
Can allocate full 15% Public Service Cap
City prioritizes and selects projects and activities
for CDBG funding — County verifies eligibility and
National Objective
City administers/carries out all CDBG activities
funded by City including National Objective and
other compliance (e.g., 2 CFR 200). City requests
reimbursement from County.
County retains 70% of administrative funding cap;
City can utilize up to 30% of the administrative
funding cap. HUD allows up to 20% of total grant
to be used for administrative expenses.
County is responsible for preparation of annual
Action Plans, Five Year Consolidated Plans, CAPER
reports, and Fair Housing.
County is responsible for all grant related
administrative activities and regulatory
responsibilities including monitoring and HUD
audits.
County is responsible for NEPA compliance. City is
responsible for CEQA compliance.
City and County will jointly assist in compliance
with Davis -Bacon and HUD Labor Standards
City/Residents will not be eligible for HOME -
funded affordable housing activities
City/Residents will not be eligible for ESG-funded
homelessness assistance activities
City/residents will not be eligible for CDBG-funded
Micro -Enterprise Loan Program of Home
Enhancement Program
County will administer all County -Wide program
and activities funded by City.
Cooperating City Status
City receives adjusted allocation — usually 60%-70%
of CDBG allocation
City enters into multi -year Cooperation Agreement
with County and annual Supplemental Agreements
City's public service cap is adjusted (12%-14%)
City prioritizes and selects projects and activities
for CDBG funding — County verifies eligibility and
National Objective
City administers/carries out all CDBG activities
funded by City including National Objective and
other compliance (e.g., 2 CFR 200). City requests
reimbursement from County.
County retains 100% of all administrative funding
cap
County is responsible for preparation of annual
Action Plans, Five Year Consolidated Plans, CAPER
reports, and Fair Housing.
County is responsible for all grant related
administrative activities and regulatory
responsibilities including monitoring and HUD
audits.
County is responsible for NEPA compliance. City is
responsible for CEQA compliance.
City and County will jointly assist in compliance
with Davis -Bacon and HUD Labor Standards
City/Residents are eligible for HOME -funded
affordable housing activities
City/Residents are eligible for ESG-funded
homelessness assistance activities
City/residents are eligible for CDBG-funded Micro -
Enterprise Loan Program of Home Enhancement
Program
County will administer all County -Wide program
and activities funded by City.
EXHIBIT B
CITY OF PALM DESERT
HUD CDBG Allocations
Change from
Year
Amount
Prior Year
2003/04
i
$419.000
2004/05
t
415.000
-0.95%
2005/06
395.595
-4.68%
2006/07
356.983
-9.76%
2007/08
Lo.
356.1 b8
-0.24%
2008/09
342 A72
-3.87%
2009/10
353,567
3.28%
2010/11
381.&$ 7
7.99%
2011 /12
319k3
-16.29%
2012/13
2 181
-11.41%
2013/14
296,224
2.49%
2014/15
280,226
-3.44%
2015/16
266,514
-3.82%
2016/17
29�,678
9.34%
2017/18
l
322,867
9.57%
2018/19
354.119
9.68%
RESOLUTION NO.2018- 31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
AUTHORIZING PARTICIPATION IN THE COUNTY OF RIVERSIDE'S URBAN
COUNTY PROGRAM FOR FISCAL YEARS 2019-2020 AND 2020-2021
WHEREAS, the City of Palm Desert has elected to participate as a Metropolitan City
in the County of Riverside's Urban County Program for Federal Fiscal Years 2019-2020 and
2020-2021; and
WHEREAS, the Joint Recipient Cooperation Agreement will allow the City to carry out
activities which are funded by Community Development Block Grant funds; and
WHEREAS, the Joint Recipient Cooperation Agreement will allow the Metropolitan City
to participate in the Urban County Consolidated Planning Programs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The Joint Recipient Cooperation Agreement between the County of
Riverside and the City Palm Desert is hereby approved.
SECTION 2. The City Council hereby authorizes and directs the Mayor to execute
the Joint Recipient Cooperation Agreement on behalf of the City of Palm Desert.
SECTION 3. This Resolution shall take effect from and after the date of its passage
and adoption.
PASSED, APPROVED AND ADOPTED this 241h day of May 2018 by the following vote
to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
APPROVED AS TO FORM:
SABBY JONATHAN, MAYOR
ROBERT W. HARGREAVES, CITY ATTORNEY
BEST, BEST & KRIEGER, LLP
CONTRACT NO. C37080
1 JOINT RECIPIENT COOPERATION AGREEMENT
FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT,
2 FOR FISCAL YEARS 2019-20 AND 2020-21
C
4 This Joint Recipient Cooperation Agreement for the Community Development Block
5 Grant for Fiscal Years 2019-20 and 2020-21, hereinafter referred to as "Agreement" is made and
6 entered into this day of 2018, by and between the COUNTY OF
7 RIVERSIDE, a political subdivision of the State of California, hereinafter referred to as
8 "COUNTY", and CITY OF PALM DESERT, an incorporated municipality within the
9 geographical boundaries of the COUNTY, hereinafter referred to as "CITY." City and County
10 individually referred to herein as "Party" and collectively as the "Parties."
11 RECITALS
12 WHEREAS, the Housing and Community Development Act of 1974, as amended (42
13 U.S.C.A. § 5301 et seq.) (Public Law 93-383), hereinafter called "ACT", provides that Community
14 Development Block Grant funds hereinafter referred to as "CDBG", may be used for the support
15 of activities that provide decent housing, suitable living environments, and expanded economic
16 opportunities principally for persons of low and moderate -income; and
17 WHEREAS, CDBG regulations require counties to re -qualify as an Urban County under
18 the CDBG program every three years; and
19 WHEREAS, the CITY has attained Metropolitan City status under the "ACT" and desires
20 to participate in the COUNTY's Urban County program as a joint recipient;
21 WHERAS, the CITY has elected to participate in the final two years of the COUNTY's
22 2018-2021 three year Urban County qualification period; and
23 WHEREAS, the execution of this Agreement is necessary to include CITY as a
24 Metropolitan City under COUNTY's Urban County CDBG program.
25 NOW THEREFORE, in consideration of the mutual covenants herein set forth and the
26 mutual benefits to be derived there from, the parties agree as follows:
27
28
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 1 of 15
CONTRACT NO. C 37080
1 1. GENERAL.
2 (a). This Agreement gives COUNTY authority to undertake, or assist in
3 undertaking, activities for Fiscal Years 2019-20 and 2020-21, that will be funded from the CDBG
4 Entitlement program and from any program income generated from the expenditure of such funds.
5 COUNTY and CITY agree to cooperate, to undertake, or to assist in undertaking, community
6 renewal and lower -income housing assistance activities.
7 (b). COUNTY is qualified as an "Urban County" under the ACT. CITY, by
8 executing this Agreement, hereby gives notice of its election to participate in an Urban County
9 Community Development Block Grant program, hereinafter referred to as "CDBG program" or
10 "Urban County Progam."
11 (c). By executing this Agreement, CITY understands that it may not apply for
12 grants from appropriations under the Small Cities or State CDBG Programs for fiscal years during
13 the period in which it participates in the Urban County's CDBG program.
14 (d). By executing this Agreement, CITY understands, acknowledges, and agrees
15 that it will receive no formula HOME fund allocation from the COUNTY'S Urban County
16 Program. Pursuant to 24 CFR 92.101, the CITY may elect to form a HOME Investment Partnership
17 Act (HOME) Consortium with the COUNTY in order to be considered for HOME funding through
18 the COUNTY. CITY may apply for HOME funds from the State of California, if permitted by the
19 State.
20 (e). By executing this Agreement, CITY understands, acknowledges, and agrees
21 that it will receive no formula Emergency Solutions Grant (ESG) funds from the COUNTY'S
22 Urban County Program but may apply for ESG funds from the State of California, if permitted by
23 the State.
24 2. TERM.
25 The term of this Agreement shall be for two (2) years commencing on July 1, 2019,
26 and expiring on June 30, 2021, unless an earlier date of termination is fixed by U.S. Department
27 of Housing and Urban Development, hereinafter called HUD, pursuant to ACT.
28
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 2of15
CONTRACT NO. C-37080
I The terms of this Agreement shall remain in effect until the CDBG funds and
2 program income received with respect to activities carried out during the two-year qualification
3 period are expended and the funded activities completed. Furthermore, neither the COUNTY nor
4 the CITY may terminate or withdraw from this Agreement while it remains in effect.
5 3. PREPARATION OF FEDERALLY REQUIRED FUNDING
6 APPLICATIONS.
7 The County of Riverside Economic Development Agency, subject to approval of
8 COUNTY's Board of Supervisors, shall be responsible for preparing and submitting to the U.S.
9 Department of Housing and Urban Development (HUD), in a timely manner, all reports and
10 statements required by the ACT and the Federal regulations promulgated by HUD to secure
11 entitlement grant funding under the CDBG, HOME, and ESG programs. This duty shall include
12 the preparation and processing of COUNTY Housing, Community, and Economic Development
13 Needs Identification Report, Citizen Participation Plan, the County Five -Year Consolidated Plan,
14 One -Year Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and
15 other related programs which satisfy the application requirements of ACT and its regulations.
16 4. COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS AND
17 OTHER APPLICABLE STATUTES, REGULATIONS AND ORDINANCES.
18 (a). COUNTY and CITY will comply with the applicable provisions of the ACT
19 and those Federal regulations promulgated by HUD pursuant thereto, as the same currently exists
20 or may hereafter be amended.
21 (b). The COUNTY and CITY are hereby obligated to take all actions necessary
22 to assure compliance with COUNTY's certifications required under Section 104 (b) of Title I of
23 ACT, as amended (42 U.S.C.A. § 5304 et seq.), Title VI of the Civil Rights Act of 1964 (42
24 U.S.C.A. § 2000d et seq.), Fair Housing Act (42 U.S.C.A. § 3601 et seq.) , and affirmatively
25 furthering fair housing.
26 (c). The COUNTY and CITY are hereby obligated to take all actions necessary
27 to assure compliance with Section 109 Title I of the Housing and Community Development Act
28 of 1974, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975.
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 3 of 15
CONTRACT NO. C37080
1 (d). COUNTY and CITY will comply with all applicable laws, including, but
2 not limited to, the following: National Environmental Policy Act of 1969; Title VIII of the Civil
3 Rights Act of 1968; Title 24 Code of Federal Regulations part 570; the Fair Housing Act; Cranston-
4 Gonzales National Affordable Housing Act (Public Law 101-625), as amended; Executive Order
5 11063, as amended by Executive Order 12259; Executive Order 11988; the Uniform Relocation
6 Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.§4630, et. seq.); and
7 other Federal or state statute or regulation applicable to the use of CDBG or HOME Investment
8 Partnerships Act (enacted as Title II of the Cranston -Gonzalez National Affordable Housing Act
9 of 1990) funds.
10 (e). CITY agrees that any Urban County Program funding for activities in, or in
11 support of, the CITY, are prohibited if CITY does not affirmatively further fair housing within
12 CITY'S jurisdiction or impedes COUNTY actions to comply with its fair housing certification.
13 CITY and COUNTY shall meet the citizen participation requirements of 24 CFR
14 570.301(b)(4)(e)(i) and provide Riverside County citizens with all of the following:
15 i. The estimate of the amount of CDBG funds proposed to be used for
16 activities that will benefit persons of low and moderate -income;
17 ii. A plan for minimizing displacement of persons as a result of
18 activities assisted with CDBG funds and to assist persons actually displaced as a result of such
19 activities;
20 iii. A plan that provides for and encourages citizen participation, with
21 particular emphasis on participation by persons of low and moderate -incomes, residents of slum
22 and blighted areas, and of areas in which funds are proposed to be used, and provides for
23 participation of residents in low and moderate -income neighborhoods;
24 iv. Reasonable and timely access to local meetings, information, and
25 records relating to the grantee's proposed use of funds, as required by the regulations of the
26 Secretary, and relating to the actual use of funds under the ACT;
27 V. Provide for public meetings to obtain citizen views and to respond
28 to proposals and questions at all stages of the community development program, including at least
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 4 of 15
CONTRACT NO. C37080
1 the development of needs, the review of proposed activities and review of program performance.
2 Meeting shall be held after adequate notice, at times and locations convenient to potential or actual
3 beneficiaries, and with accommodation for the disabled.
4 (g). CITY shall develop a community development plan, for the period of this
5 Agreement, which identifies community development and housing needs and specifies both short
6 and long-term community development objectives.
7 (h). CITY certifies, to the best of its knowledge and belief, that:
8 i. No Federal appropriated funds have been paid or will be paid, by or
9 on behalf of the CITY, to any person influencing or attempting to influence an officer or employee
10 of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
11 Member of Congress, in connection with the awarding of any Federal contract, the making of any
12 Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and
13 the extension, continuation, renewal, amendment or modification of any Federal contract, grant,
14 loan or cooperative agreement.
15 ii. If any funds other than Federally -appropriated funds have been paid
16 or will be paid to any person for influencing or attempting to influence an officer or employee of
17 any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
18 Member of Congress, in connection with this Federal contract, grant, loan, or cooperative
19 agreement, the undersigned shall complete and submit standard Form-LLL, "Disclosure Form to
20 Report Lobbying", in accordance with its instructions.
21 iii. The CITY shall require that the language provided in Sections
22 4(e)(i) and 4(e)(ii) of this Agreement be included in the award documents for all sub -awards at all
23 tiers (including subcontracts, sub- grants and contracts under grants, loans, and cooperative
24 agreements) and that all sub -recipients shall certify and disclose accordingly. This certification is
25 a material representation of fact upon which reliance was placed when this transaction was made
26 or entered into.
27 (i). In accordance with Section 519 of Public Law 101-144, (the 1990 HUD
28 Appropriations Act), the CITY certifies that it has adopted and is enforcing a policy prohibiting
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 5 of 15
CONTRACT NO. C-37080
1 the use of excessive force by law enforcement agencies within its jurisdiction against any
2 individuals engaged in non-violent civil rights demonstrations, and that it has adopted and is
3 enforcing applicable State and local laws against physically barring entrance to, or exit from, a
4 facility or location which is the subject of such non-violent civil rights demonstrations within its
5 jurisdiction.
6 5. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES.
7 The COUNTY's Board of Supervisors have adopted policies and procedures to
8 ensure efficient and effective administration of the CDBG program. COUNTY will provide these
9 policies and procedures to CITY within a reasonable time after this Agreement's commencement
10 date. COUNTY and City agree to comply with these said policies and program objectives and to
11 take no actions to obstruct implementation of the approved 2104-2019 Five Year Consolidated
12 Plan and the subsequent Five Year Consolidated Plan.
13 6. OTHER AGREEMENTS.
14 Pursuant to Federal regulations at 24 CFR 570.501(b), CITY is subject to the same
15 requirements applicable to sub -recipients, including the requirement of a written agreement set
16 forth in Federal regulations at 24 CFR 570.503. For each fiscal year during the term of this
17 Agreement, COUNTY and CITY shall enter into an additional agreement, commonly known as a
18 Metropolitan City Supplemental Agreement, that will have a term coinciding with a CDBG
19 Program Year and enumerate the project(s) CITY will implement with its entitlement funds. Said
20 Supplemental Agreement will set forth the time schedule for completion of said project(s) and any
21 funding sources, in addition to entitlement funds, that will be used in completing the project(s). If
22 substantial compliance with the completion schedule, due to unforeseen or uncontrollable
23 circumstances, cannot be met by CITY, the schedule for the project(s) may be extended by
24 COUNTY. If COUNTY determines that substantial progress toward drawdown of funds is not
25 made during the term of the Supplemental Agreement, the entitlement funds associated with the
26 project(s) may be reprogrammed by COUNTY, to other activities as determined by COUNTY,
27 after COUNTY provides appropriate written notice to CITY. COUNTY's decision not to extend
28
Joint Recipient Cooperation Agreement For CDBG Funds 201 A-2021
Page 6 of 15
CONTRACT NO. C37080
1 the completion schedule associated with the project(s), or to reprogram the entitlement funds
2 associated with the project(s), will not excuse CITY from complying with terms of this Agreement.
3 7. DETERMINATION OF PROJECTS TO BE FUNDED AND
4 DISTRIBUTION OF ENTITLEMENT FUNDS.
5 CITY agrees to submit to COUNTY in writing, no later than the date specified by
6 COUNTY prior to each program year, the activities that the CITY desires to implement with its
7 entitlement funds, said designation to comply with statutory and regulatory provisions governing
8 citizen's participation. Said designation is to be reviewed by the COUNTY's Economic
9 Development Agency to determine that the projects are eligible under Federal regulations for
10 funding and inclusion in the One Year Action Plan of the County's Five -Year Consolidated Plan
1 1 and consistent with both Federal and COUNTY policy governing use of Community Development
12 Block Grant (CDBG) funds.
13 In the event that CITY fails to submit to COUNTY the identified activities that the
14 CITY desires to implement with its entitlement funds by the date specified prior to each program
15 year, the COUNTY may determine the activities to be funded, without consent of the CITY,
16 consistent with both Federal and COUNTY policy governing use of Community Development
17 Block Grant (CDBG) funds.
18 Consistent with Sections 3, 4, 5, 6, and 7 of this Agreement, COUNTY's Board of
19 Supervisors will make the final determination of the distribution and disposition of all CDBG
20 funds received by COUNTY pursuant to the Act.
21 8. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES.
22 The COUNTY's Board of Supervisors have adopted policies and procedures to
23 ensure efficient and effective administration of the CDBG program. COUNTY will provide these
24 policies and procedures to CITY within a reasonable time after this Agreement's commencement
25 date. COUNTY and CITY agree to comply with these said policies and program objectives and
26 to take no actions to obstruct implementation of the approved 2014-2019 Five Year Consolidated
27 Plan and the subsequent Five Year Consolidated Plan.
28
Joint Recipient Cooperation Agreement For CDBG Funds 2018-2021
Page 7 of 15
CONTRACT NO. C 37080
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9. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY
CONSTRUCTED WITH CDBG FUNDS.
When CDBG funds are used, in whole or in part, by CITY to acquire real property
or to construct a public facility, CITY shall comply with the National Environmental Policy Act
of 1969 (42 U.S.C. § 4321, et seq.), the California Environmental Quality Act (Cal. Pub. Resources
Code § 21000, et seq.), the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (42 U.S.C. § 4630, et seq.), and California Government Code Sections 7260 et seq.,
as those laws may be amended from time -to -time and any Federal or state regulations issued to
implement the aforementioned laws.
In addition, the following is to occur:
(a) Title to the real property shall vest in CITY;
(b) The real property title will be held by or the constructed facility will be
maintained by the CITY for the approved use until five years after the date that the project is
reported as "Completed" within the annual Consolidated Annual Performance and Evaluation
Report.
(c) While held by CITY, the real property or the constructed facility is to be
used exclusively for the purpose for which acquisition or construction was originally approved by
COUNTY;
(d) CITY shall provide timely written notice to COUNTY of any action which
would result in a modification or change in the use of the real property purchased or improved, in
whole or in part, with CDBG or HOME funds from that planned at the time of acquisition or
improvement, including disposition.
(e) CITY shall provide timely written notice to citizens and opportunity to
comment on any proposed modification or change;
(f) Written approval from COUNTY must be secured if the property or the
facility is to be put to an alternate use that is or is not consistent with Federal regulations governing
CDBG funds;
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CONTRACT NO. C37080
1 (g) Should CITY desire during the five (5) year period to use the real property
2 or the constructed facility for a purpose not consistent with applicable Federal regulations
3 governing CDBG funds or to sell the real property or facility, then:
4 (i) If CITY desires to retain title, it will have to reimburse either COUNTY
5 or the Federal government an amount that represents the percentage of current fair market value
6 that is identical to the percentage that CDBG funds initially comprised to when the property was
7 acquired or the facility was constructed;
8 (ii) If CITY sells the property or facility, or is required to sell the property
9 or facility, CITY is to reimburse the COUNTY an amount that represents the percentage of
10 proceeds realized by the sale that is identical to the percentage that CDBG funds comprised of the
l 1 monies paid to initially acquire the property or construct the facility. This percentage amount will
12 be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.
13 10. DISPOSITION OF INCOME GENERATED BY THE EXPENDITURE
14 OF CDBG FUNDS.
15 CITY shall inform COUNTY in writing of any income generated by the
16 expenditure of CDBG funds received by CITY from COUNTY. CITY may retain program income
17 so generated and may only be used for eligible activities, as determined by the COUNTY, in
18 accordance with all CDBG requirements, including all requirements for citizen participation.
19 The COUNTY is required by HUD to monitor and report the receipt and use of all
20 program income. CITY is required to track, monitor, and report any and all program income as
21 requested by COUNTY.
22 11. TERMINATION.
23 Except as provided for in Section 2, CITY and COUNTY cannot terminate or
24 withdraw from this Agreement while it remains in effect.
25 12. NOTICES.
26 All correspondence and notices required or contemplated by this Agreement shall
27 be delivered to the respective parties at the addresses set forth below and are deemed submitted
28 two days after their deposit in the United States mail, postage prepaid:
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CONTRACT NO. C37080
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►:
COUNTY OF RIVERSIDE CITY OF PALM DESERT
Assistant County Executive Officer/ECD Lauri Aylaian, City Manager
Economic Development Agency City of Palm Desert
P.O. Box 1180 73510 Fred Waring Drive
Riverside, CA 92502 Palm Desert, CA 92260
13. AGREEMENT ADMINISTRATION.
The City Manager in the case of the CITY of Palm Desert, and the Assistant County
Executive Officer/ECD, in the case of the County of Riverside, or their designee, shall administer
the terms and conditions of this Agreement for their respective city or county.
14. COOPERATION, FURTHER ACT.
The PARTIES shall cooperate fully with one another, and shall take any additional
acts or sign any additional documents as may be necessary, appropriate or convenient to attain the
purpose of the Agreement.
15. NO THIRD -PARTY BENEFICIARIES.
This Agreement is made and entered into for the sole protection and benefit of the
PARTIES hereto and shall not create any rights in any third parties. No other person or entity shall
have any right or action based upon the provisions of the Agreement.
16. SECTION HEADINGS.
The Section headings herein are for the convenience of the PARTIES only and shall
not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the
provisions or language of this Agreement.
17. FORMER AGREEMENTS UTILIZING COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS BETWEEN COUNTY AND CITY.
All agreements between CITY and COUNTY regarding the use of CDBG funds for
fiscal years 1975-76 through fiscal years 2018-2021, and any Supplemental Agreements there
under, shall remain in full force and effect. If the language of this Agreement is in conflict or
inconsistent with the terms of any prior said agreements between CITY and COUNTY, the
language of this Agreement will be controlling.
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CONTRACT NO. C37080
1 18. INDEMNIFICATION
2 CITY agrees to indemnify, defend, and hold harmless COUNTY and its authorized
3 officers, employees, agents, and volunteers from any and all claims, actions, losses, damages,
4 and/or liability arising from CITY acts, errors or omissions and for any costs or expenses incurred
5 by COUNTY on account of any claim therefore, except where such indemnifications is prohibited
6 by law. CITY shall promptly notify COUNTY in writing of the occurrence of any such claims,
7 actions, losses, damages, and/or liability.
8 CITY shall indemnify and hold harmless COUNTY against any liability, claims,
9 losses, demands, and actions incurred by COUNTY as a result of the determination by HUD or its
10 successor that activities undertaken by CITY under the program(s) fail to comply with any laws,
11 regulations, or policies applicable thereto or that any funds billed by and disbursed to CITY under
12 this Agreement were improperly expended.
13 19. COMPLIANCE WITH LAWS AND REGULATIONS.
14 By executing this Agreement, the Parties hereby certify that they will adhere to and
15 comply with all Federal, state and local laws, regulations and ordinances.
16 20. ENTIRE AGREEMENT.
17 It is expressly agreed that this Agreement embodies the entire agreement of the
18 Parties in relation to the subject matter hereof, and that no other agreement or understanding,
19 verbal or otherwise, relative to this subject matter, exists between the Parties at the time of
20 execution.
21 21. SEVERABILITY.
22 Each paragraph and provision of this Agreement is severable from each other
23 provision and in the event any provision in this Agreement is held by a court of competent
24 jurisdiction to be invalid, void, or unenforceable, the remaining provision will never the less
25 continue in full force without being impaired or invalidated in any way.
26 22. ASSIGNMENT.
27 CITY shall not make any sale, assignment, conveyance or lease of any trust or
28 power, or transfer in any other form with respect to this Agreement, or delegate or assign any
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CONTRACT NO. C37080
1 interest in this Agreement without prior written approval of the County.
2 23. INTERPRETATION AND GOVERNING LAW.
3 This Agreement and any dispute arising hereunder shall be governed by and
4 interpreted in accordance with the laws of the State of California. This Agreement shall be
5 construed as a whole according to its fair language and common meaning to achieve the objectives
6 and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are
7 to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all
8 Parties having been represented by counsel in the negotiation and preparation hereof.
9 24. WAIVER.
10 Failure by a Party to insist upon the strict performance of any of the provisions of
11 this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default
12 of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict
13 compliance by the other Party with the terms of this Agreement thereafter.
14 25. JURISDICTION AND VENUE.
15 Any action at law or in equity arising under this Agreement or brought by a Party
16 hereto for the purpose of enforcing, construing or determining the validity of any provision of this
17 Agreement shall be filed in the Superior Court of California, County of Riverside, State of
18 California, and the Parties hereto waive all provisions of law providing for the filing, removal or
19 change of venue to any other court or jurisdiction.
20 26. AMENDMENTS
21 No change, amendment, or modification to the Agreement shall be valid or binding
22 upon CITY or COUNTY unless such change, amendment, or modification is in writing and duly
23 executed. CITY and COUNTY agree to adopt any necessary amendments to this Agreement to
24 incorporate changes required by HUD as set forth in the Urban County Qualification Notice.
25 Amendments must be submitted to HUD as provided in the Urban County Qualification Notice
26 and failure to do so will void the automatic renewal for such qualification period.
27
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CONTRACT NO. C 37080
1 27. SPECIAL PROVISIONS FOR METROPOLITAIN CITY/URBAN
2 COUNTY JOINT RECIPIENT:
3 (a) The CITY is part of the Urban County Program for purposes of planning
4 and implementation for the entire period of the Urban County Qualification for program years
5 2019-20 and 2020-21 under the CDBG program.
6 (b) HUD will consider the CITY as a unit of general local government that is
7 part of the COUNTY's Urban County program.
8 (c) HUD shall determine the annual amount of CDBG allocation to which the
9 CITY is entitled, and the COUNTY will be the grant recipient.
10 (d) The CITY's allocation will be that portion of the total annual allocation as
11 specified by written notice from HUD, less fourteen percent (14%) to be retained by the
12 COUNTY for administration of the Urban County CDBG program.
13 (e) All other terms and conditions applicable to an Urban County participating
14 city shall apply to the CITY including automatic renewal provisions found in Paragraph 2 of this
15 Agreement unless prohibited by HUD.
16 28. PROHIBITION OF CDBG FUND TRANSFER
17 The CITY may not sell, trade, or otherwise transfer all or any portion of the CDBG
18 funds to another such cooperating city, metropolitan city, urban county, or Indian tribe, that
19 directly receives CDBG funds in exchange for any other funds, credits, or non -Federal
20 considerations. CITY must use the CDBG funds for activities eligible under Title I of the ACT.
21 29. AUTHORITY TO EXECUTE.
22 The persons executing this Agreement or exhibits attached hereto on behalf of the
23 Parties to this Agreement hereby warrant and represent that they have the authority to execute
24 this Agreement and warrant and represent that they have the authority to bind the respective
25 Parties to this Agreement to the performance of its obligations hereunder.
26 30. INCORPORATION OF RECITALS
27 The Parties hereby affirm the facts set forth in the recitals above. Said recitals are
28 incorporated herein and made an operative part of this Agreement.
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CONTRACT NO. Is37080
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31. COUNTERPARTS
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This Agreement may be executed in multiple counterparts, each of which shall be
3
deemed an original, but all of which, together, shall constitute one and the same instrument.
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IN WITNESS WHEREOF,
the COUNTY and CITY have executed this
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Agreement on the date shown below.
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Date:
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COUNTY OF RIVERSIDE,
CITY OF PALM DESERT,
a political subdivision of the
a municipal corporation and charter city
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State of California
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BY:
BY:
Robert Field, Assistant County
Lauri Aylaian, City Manager
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Executive Officer/ECD
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APPROVED AS TO FORM:
ATTEST:
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Gregory P. Priamos, County Counsel
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BY:
By:
Rachelle D. Klassen, City Clerk
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Amrit Dhillon, Deputy County Counsel
City of Palm Desert, California
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APPROVED AS TO FORM:
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BY:
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Robert W. Hargreaves, City Attorney
Best, Best & Krieger, LLP
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CONTRACT NO. C37080
1 COUNTY COUNSEL CERTIFICATION
2
3 The Office of County Counsel hereby certifies that the terms and provisions of this
4 Agreement are fully -authorized under state and local law and that the Agreement provides full
5 legal authority for the COUNTY to undertake, or assist in undertaking, essential community
6 development and housing assistance activities specifically urban renewal and publicly assisted
7 housing.
8 Gregory P. Priamos
County Counsel
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1 1 By:
Deputy, Amrit Dhillonwn
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COUNTY OF RIVERSIDE
Urban County Qualification
Notice of Urban County Participation Status
Federal Fiscal Years 2019 and 2020
NOTICE OF PARTICIPATION
This City elects to participate in the Urban County (Riverside County) Community Development Grant,
HOME, and ESG Programs for Federal Fiscal Years 2019 and 2020.
City of Palm Desert
Signed
Lauri Aylaian, City Manager
Date
NOTICE OF NON -PARTICIPATION
This City elects NOT to participate in the Urban County (Riverside County) Community Development Grant,
HOME, and ESG Programs for Federal Fiscal Years 2019 and 2020.
Electing not to participate, the City will also notify HUD office at:
HUD Region IX- Los Angeles Office
300 North Los Angeles Street, Suite 4054
Los Angeles, CA 90012
City of Palm Desert
Signed:
Lauri Aylaian, City Manager
When completed, please submit to the following:
Date
John Thurman, EDA Development Manager CDBG/ESG
Riverside County Economic Development Agency
5555 Arlington Avenue
Riverside, CA 92504-2506
COUNTY OF RIVERSIDE
DEPARTMENT OF HOUSING, HOMELESSNESS PREVENTION &
WORKFORCE SOLUTIONS
Heidi Marshall, Director
April 23, 2020
Lauri Aylaian, City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
RE: Notice of Opportunity to Participate
County of Riverside Urban County Program CDBG, HOME, and ESG Programs
Federal Fiscal Years 2021, 2022, and 2023 (Program Years 2021-22, 2022-23, and 2023-24)
Dear Ms. Aylainan:
The County of Riverside has qualified as an Urban County for the Community Development Block
Grant (CDBG), HOME Investment Partnership Program (HOME), and the Emergency Solutions Grant
(ESG) for Federal Fiscal Years 2021, 2022, and 2023. This letter serves to notify you that your City
may elect to participate in the County of Riverside's Urban County for program years 2021-22, 2022-
23, and 2023-24. Alternatively, you may elect not to participate in the County's Urban County
program.
Participation: A city that participates as a Cooperating City within the Urban County program is
automatically included in the County's HOME and ESG programs. As a Cooperating City, Palm
Desert and your residents would benefit from the County programs including Homelessness
Assistance/Prevention Programs and the First -Time Home Buyer Program, in addition to greatly
reduced CDBG program administrative responsibilities.
However, participation in the Urban County program makes you ineligible to apply for grants under
HUD's Small Cities (State) CDBG program for the fiscal years during the period in which you are
participating with the Urban County. Although your city may also be eligible to apply for HOME and
ESG through the State of California, subject to State program guidelines.
The City may also elect to join the County's Urban County program as a Joint Metropolitan City.
There are certain advantages to the Joint Metropolitan City status; however, the City would not be
included in the County's HOME and ESG programs nor would you be eligible to apply for grants
under HUD's Small Cities (State) CDBG program.
PO Box 1428, Riverside, CA 92504 951-343-5617 Fax 951-343-5609
S; .Templaeal-DA-UOGa-Lenahead-Color doe
Notice of Urban County Participation
April 23, 2020
Page 2
If your City elects to participate in the County's Urban County program, as a Cooperating City or
Joint/Metro City, for program years 2021, 2022, and 2023, please submit the enclosed Notice of
Participation to EDA, no later than May 22, 2020
Non -participation: if your City elects not to participate in the County's Urban County program, please
submit the enclosed Statement of Non -Participation to EDA as well as a copy to the HUD Region IX
office in Los Angeles, no later than Mav 22. 2020. It is recommended that you include a copy of the
city council's minute order whereby the City elected not to participate in the Urban County program.
Your cooperation in meeting the required deadline of Mav 22. 2020, is greatly appreciated. To
expedite the process, you can Fax (951-343-5609) or email (laespritt@rivco.org) a copy of the signed
Notice of Participation or Non -Participation prior to returning the original through regular mail.
We look forward to your city's continued participation in our Urban County program. If you have any
questions, please contact Lailah Espritt at 951-343-5427.
Sincerely,
John Thurman
CDBGIESG Program Administrator
Enclosure: Notice of Urban County Participation Status
COUNTY OF RIVERSIDE
Urban County Qualification
Federal Fiscal Years 2021, 2022, and 2023
NOTICE OF PARTICIPATION
This City elects to participate as a Metropolitan City/Joint Recipient or a Cooperating City in
the Urban County (Riverside County) Community Development Block Grant for Federal Fiscal Years
2021, 2022, and 2023.
City of Palm Desert
Signed:
City Manager
Date
NOTICE OF NON -PARTICIPATION
This City elects NOT to participate in the Urban County (Riverside County) Community
Development Grant Program for Federal Fiscal Years 2021, 2022, and 2023.
Electing not to participate, the City will also notify the HUD office at:
HUD Region IX- Los Angeles Office
300 North Los Angeles Street, Suite 4054
Los Angeles, CA 90012
City of Palm Desert
Signed: Date
City Manager
When completed, please submit to the following:
John Thurman, CDBGIESG Program Administrator
Department of Housing, Homelessness Prevention, and Workforce Solutions
PO Box 1428
Riverside, CA 92504
ithurman cDrivco.orQ