HomeMy WebLinkAbout0 Riverside County Urban Cooperation Agreement Staff Report FinalCITY OF PALM DESERT
STAFF REPORT
MEETING DATE: June 8, 2023
PREPARED BY: Joe Barron, Senior Contracts and Grants Analyst
REQUEST: APPROVE COMMUNITY DEVELOPMENT BLOCK GRANT JOINT RECIPIENT COOPERATIVE AGREEMENT WITH THE COUNTY OF RIVERSIDE FOR FISCAL YEARS 2024-25, 2025-26, AND 2026-27.
RECOMMENDATION:
Authorize participation in the County of Riverside’s Urban County Program for Fiscal Years 2024-25, 2025-26, and 2026-27.
Authorize the City Attorney to finalize the Joint Recipient Cooperation Agreement with the County of Riverside.
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 Program and take any
other actions necessary to effectuate the action taken herewith.
BACKGROUND/ANALYSIS:
Every year, Community Development Block Grant (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 principally for
persons of low and moderate income.
The City of Palm Desert has been a recipient of CDBG funds for over 35 years. The earliest awards facilitated projects such as the Joslyn Senior Center and Desert Arc expansion. 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 20 years, Palm Desert has been designated as an Entitlement City.
As an Entitlement City, the City’s estimated staff costs range from $175,000 to $250,000 each year to administer the CDBG program; depending on the amount awarded, the types of projects,
and the number of staff members involved. Administrative expenses are typically covered by the City’s General Fund.
The City recently attempted to participate in the County of Riverside’s Urban Count Program; however, its funding plan did not align with the City’s Plan. The City has taken the necessary
steps and has an opportunity to rejoin the Urban County Community Development Block Grant program for fiscal years 2024-25 through 2026-27, either as a Metro City or a Cooperating City.
Joining the program may result in significant savings to staff time and resources while incurring a similar level of benefit to the City, local agencies, and residents.
In choosing to join the County as a Metro City or a Cooperating City, the City retains full oversight of the solicitation and selection of projects and activities. Additionally, the
County has confirmed that the City would remain responsible for the public hearing and the application process.
Differences between the Metro City vs Cooperating City are summarized below, and a comprehensive comparison is attached as Exhibit A.
Comparison Example
Metro City
Cooperating City
City Estimated Entitlement Allocation ($400,000)
$400,000
$280,000
City's Public Service cap (MC-15%; CC-12-14%)
$60,000
$39,200
City's Administrative Cap (MC - 30%; CC - 0%)
MC - County receives 70% of the 20% Admin Allowance
CC - County receives 100% of the Admin Allowance
$24,000
City's Eligibility for County's Emergency Solutions Grant (ESG) Program (MC - 0; CC - $30k)
$0
$30,000
City's Eligibility for County's Home Investment Partnership (HOME) Program (MC - 0; CC - $170k)
$0
$170,000
City enters into a multi-year Joint Recipient Cooperative Agreement with County and annual supplemental Agreements.
Amount Available for Community Projects
$316,000
$240,800
Est. General fund Admin costs to join County Coop Program
(General fund reimbursed from MC admin cap $24K)
$56,000
$50,000
*Based off an estimated award
*General Fund currently covers annual staff costs to administer CDBG est. at $200,000/year (does not include cost to administer HOME/ESG programs
*HOME/ESG funding will require further review and a cost-benefit analysis
As a Metro City, the City retains its entire entitlement allocation and splits the administrative funding with the County 70/30. As a Cooperating City, the City receives an adjusted
allocation of 60-70% of the total amount and is not entitled to any of the administrative funding.
As a Metro City participant, the County's responsibilities will 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.
Participation in the Urban County program, either as Metro City or Cooperating City, may limit the ability to participate in other programs (ESG / HOME) for the fiscal years 2024-25
through 2026-27. Currently the City does not participate in any of the programs that are affected by participation.
While there are pros and cons for each option, it is Staff’s recommendation to participate in the Urban County program as Metro City via a Joint Recipient Cooperative Agreement. In addition
to the staff time savings and the opportunity to leverage the County’s robust HUD reporting infrastructure, a Metro City Joint Recipient Cooperative Agreement offers the added advantage
of retaining some funds for administrative fees while providing similar level of benefit to the City and local agencies.
Commission Recommendation
The Outside Agency Committee considered this request on May 31, 2022, and was unanimously approved for submission to the City Council. After that approval, the County notified staff
of the alignment issue. The Outside Agency Committee will be updated on the Joint Agreement on May 30, 2023. If there are any changes to the approval, staff will provide an update
following that meeting.
FINANCIAL IMPACT:
Although the funding levels that will be awarded by HUD for FY 2024-25, FY 2025-26, and FY 2026-27 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 County of Riverside. Participation in the Joint Recipient Cooperative Agreement (Metro City) with the
County may result in cost savings related to staff time typically absorbed by the General Fund, as well as maintain opportunities to apply for ESG and HOME Funds.
REVIEWED BY:
Finance Director:
Veronica Chavez
Assistant City Manager:
City Manager:
ATTACHMENTS:
Exhibit A – Riverside County Urban County Program: Joint Metro City vs Cooperating City
Exhibit B – Letter from Riverside County regarding Qualification