Rancho Palos Verdes City Council
   

APRIL 5, 2005 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) THREE YEAR COOPERATION AGREEMENT APRIL 5, 2005 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) THREE YEAR COOPERATION AGREEMENT


TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: APRIL 5, 2005

SUBJECT: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) THREE YEAR COOPERATION AGREEMENT

Staff Coordinator: Judy Huey, Senior Administrative Analyst

RECOMMENDATION

  1. Authorize the City of Rancho Palos Verdes to continue its participation in the Community Development Block Grant (CDBG) Program for Federal Fiscal Years 2006-2008.
  2. Adopt Resolution No. 2005-____, approving and authorizing an agreement by and between the City of Rancho Palos Verdes and the County of Los Angeles to participate in the Community Development Block Grant Program, HOME Investment Partnerships Program.

3. Authorize the Mayor and City Clerk to execute the proposed Agreement with the County of Los Angeles Community Development Commission (CDC).

BACKGROUND

The City recently received a letter from the Los Angeles County Community Development Commission (CDC) inviting us to continue participating in the Community Development Block Grant (CDBG) Program. To continue receiving annual CDBG funds, the City is required to execute a three-year Cooperation Agreement with the County of Los Angeles.

Our existing three-year Agreement expires on June 30, 2006. To remain eligible, the City is required to adopt a resolution approving the new Agreement for Federal Fiscal Years 2006-2008 (CDC funding cycle would be July 1, 2006 to June 30, 2009) by May 5, 2005. Once approved, the City cannot drop out of the CDBG Program during the three-year period.

The CDC has also notified the City of the possible discontinuation of the entire CDBG Program at the end of the current three-year period. Should funding for the CDBG Program be eliminated, there would be no further commitment on the City’s part for continued participation under the Cooperation Agreement.

By participating in the County CDBG Program, the City automatically participates in the County HOME Investment Partnerships Program and Assisted Housing Programs. Neither of these programs require City staff support nor funding; the City simply provides information to interested residents regarding these County programs.

ANALYSIS

The City of Rancho Palos Verdes has been allocated approximately $4,761,000 in CDBG funds since 1986. The City currently receives an annual allocation of approximately $220,000 and uses these funds for the REACH Program, the Home Improvement Program, Americans with Disability Act (ADA) projects, and qualifying capital improvement projects. To continue receiving CDBG funds, and to maintain flexibility in the use of all available funding sources, it is in the City’s best interest to continue its cooperative agreement with the County of Los Angeles.

CONCLUSION

Adopting staff recommendations will authorize the City of Rancho Palos Verdes to continue its participation in the CDBG Program.

FISCAL IMPACT

The loss of these funds would cause CDBG projects to be discontinued or funded by the General Fund or other sources. The estimated three-year loss of funds would be approximately $660,000 (estimate based on prior year funding levels). Continuing our Agreement with the CDC will provide a potential three-year revenue source for eligible CDBG projects, as long as the entire CDBG Program remains funded by the U. S. Department of Housing and Urban Development (HUD).

Respectfully submitted,

Dean E. Allison

Director of Public Works

Reviewed,

Les Evans

City Manager

Attachments:

County of Los Angeles Cooperation Agreement

Resolution 2005-

RESOLUTION NO. 2005-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING AND AUTHORIZING AN AGREEMENT BY AND BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE COUNTY OF LOS ANGELES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

WHEREAS, the City of Rancho Palos Verdes has participated in the Los Angeles Urban County Community Development Block Grant Program; and,

WHEREAS, this program is utilized by forty-eight (48) other public agencies that are not entitlement cities under the regulation of the U.S. Housing and Urban Development Department; and,

WHEREAS, the City of Rancho Palos Verdes will continue to be a participating city under the Los Angeles Urban County Community Development Block Grant Program and HOME Investment Partnerships Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:

Section 1. The City of Rancho Palos Verdes approves an Agreement by and between the City of Rancho Palos Verdes and the Los Angeles County for Community Development Block Grant Program, which is hereby attached as Exhibit "A".

Section 2. The City Council approves and authorizes the execution of this Agreement and directs the City Manager or his representative to take any action necessary to implement this Agreement.

Section 3. The City Council hereby authorizes the Mayor to execute this Agreement on behalf of the City of Rancho Palos Verdes and directs the City Clerk to attest thereto.

PASSED, APPROVED and ADOPTED this 5th day of April, 2005.

____________________________

Mayor

ATTEST:

_______________________________

City Clerk

State of California )

County of Los Angeles ) ss

City of Rancho Palos Verdes )

I, CAROLYNN PETRU, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 5, 2005.

______________________________

City Clerk

City of Rancho Palos Verdes