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HomeMy WebLinkAboutAGENDA REPORT 1991 0717 CC REG ITEM 11DTO: FROM: DATE: REGARDING: BACKGROUND irEM-11.12 MOORPARK 799 Moorpark Avenue Moo park California 93021 HONORABLE CITY COUNCIL (805) 529 -6$; 4ARK, CA! r-07" ; (- ity Council Meeting of- )//7 _199 � AC ON: 9 7Fja 2 Vy RICHARD HARE, DEPUTY CITY MANAGES JULY 12, 1991 CONSIDER APPROVAL OF RESOLUTION 91- AND COOPERATIVE AGREEMENT BETWEEN VENTURA COUNTY AND THE CITY FOR CDBG ENTITLEMENT PROGRAM The current Community Development Block Grant (CDBG) Entitlement Program Cooperation Agreement between the county of Ventura and the six cities of Moorpark, Ojai, Port Hueneme, Santa Paula, Fillmore and Camarillo expires July 31, 1991. The County, per their letter of June 28th, is requesting approval of the new three year agreement prior to July 23, 1991, which allows the County to consider and approve the agreement at the Boar( of Supervisors' meeting of July 30th. The agreement allows the cities and the County to cooperatively seek CDBG entitlement. funding. A city with a Population less than 50,000 inhabitants would not be eligible for CDBG entitlement program funds and would have to apply for CDBG Small Cities funds. It is staff's understanding that fewer Small Cities funds are available and that the low and moderate income population of the City is not great enough to make a Small ^ities grant application competitive. AGREEMENT CHANGES The content of the agreement is essentially the same, however, the allocation of funding formula is altered significantly. The only other change is with reference to the three year Housing Assistance Program (HAP) which has been modified and is now referred to as the five year Comprehensive Housing Affordability Strategy (CHAS). The proposed agreement, like the curr nt aqr <_ ement, re-tricts the City from obstructing CHAS eff r1E. PAUL W LAWRASON JR BERNARDO M PEREZ SCOTT MON1GOr• -�Y [ TALLEY JR. JOHN E WOZNIAK Mayor Mayor Pro Tem CouncilmernfN ouncilmember Councilmember The Honorable City Council July 12, 1991 Page 2 Staff recently attended a meeting with the County regarding CHAS and the County is requesting staff assistance in compiling information regarding housing in the City since incorporation. Compliance with the County's request for information will require the additional allocation of staff time to the program and does go beyond the agreement's requirements. Staff will provide additional information on the specifics of this program as i.f becomes available. ALLOCATION FORMULA CHANGE Population has been used to allocate available entitlement funds between the six participating cities and the unincorporated county area. The Housing and Urban Development Department (HUD) uses an allocation formula which considers population along with the poverty index and incidence of overcrowded housing County CDBG staff recommend moving toward the HUD formula to bring the Entitlement Area into compliance w-,.th HUD objectives. County CDBG staff proposes a f�,rmula which allocates entitlement funds between the six cities and the unincorporated area of the county which averages the HUD formula and the current population formula. The proposed formula essentially splits the difference between the two allocation methods for the three yea- term of the agreement. City staff has had very little time 1 -o review or discuss the County proposal with County staff or the other participating cities. On Thursday, July 11th County staff did state that all of the other cities had indicated that they would adopt the agreement by the imposed deadline and that any city which did not adopt the agreement w :�uld not be included in the entitlement area. If the current formula was used thE' City of Moorpark would receive $213,606 (11.1 %) in entitlement funds. Under the proposed formula the City of Moorpark would receive $176,399.50 (8.95 %). This is i total reduction of $37,206.50 (17.4 %). The County staff argues that this reduction is less than the reductior in funds the City would suffer using the HUD formula which more fairly distributes funds to the areas with the most need and that the entire entitlement area should move toward the application of the HUD formula to be consistent with EUD objectives. The HUD formula would reduce the City of Moorpar-k's entitlement funding by $74,413 (34.30). The Honorable City Council July 12, 1991 Page 3 The second page of the June 281wh letter from County staff provides the analysis of the lifference between the HUD formula, the current agreement formula based on population alone, and the proposed formula which splits the difference between the two. The areas benefiting from the allocation formula change are the unincorporated county area, Fillmore, Port Hueneme, and Santa Paula. The cities which will have a reduced allocation are Camarillo, Moorpark and Ojai. Ojai's reduction is less than $x,000 and it is assumed that the cities benefiting from tl�e allocation change will support it. Camarillo staff have indicated they will recommend approval of the agreement as long as the proposed compromise formula is for the entire three years of the agreement and uses the latest census figures. Camaril o is impacted the most and will have its allocation reduce0 $86,109.50 (20.1 %). They have expressed concerns whicl mirror the concerns of Moorpark staff. Recommendation Direct staff as deemed appropria,:e regarding the acceptance of the CDBG Cooperation Agreement and adoption of the attached resolution number 93- Attachments: County Letter 7/2 191 Resolution Agreement 1t ' countly CHIEF ADMINISTRATIVE OFFICE Richard Wittenberg Chief Ad ministrative Officer Robert C— Hirtensteiner Assistant Chief Administrative Officer June 28, 1991 Richard Hare Assistant City Manager City of Moorpark, L #6050 799 Moorpark Avenue Moorpark, CA 93021 Attached are the formulas for the division of the aiinuai CDBG allocation as we discussed yesterday. The original Cooperation Agreements used solely population as a determinant in identifying the percent of the total project dollars to be distributed to each City and the County unincorporated area. HUD however uses a formula which gives credit for population and two other very significant factors - the poverty index, and incidence of overcrowded hour rig Formula 1 represents the HUD formula (adjusted t + )r 1990 dollars) used to allocate the CDBG grant to the Entitlement area. Formula 2 is simply populal on The formula proposed takes a step toward attempting to funnel more Federal dollars to the low income populations by taking the sum of these two formui,is and dividing by two. As indicated on the phone, to date we have consukc-d with the Cities of Camarillo and Port Hueneme who support this change in allocation formulas. Next week you should receive a copy of the Cooperation Agreement and Resolution to take to your Council. HUD requires the new agreements be adapted before August. Once your Council has taken action we will put the agreement on the Board of upervisors' Agenda for July 30. Thanks for your tim //e. If you have any question /4� �7 Marty Shaw - Halloway Manager, Special Projects MSH:Ij Attach. lease contact me at 654 -2864. Hall of Admen n Jot 800 South Vjc.to(ia Av,>nu Ventura, CA 33 .'010 FAX 1805) 65,1 -5106 1 CITY CDBG ALLOCATION )RMULA OPTIONS COMPARISON OF PERCENT DIS'1,IBUTIONS: HUD FORMULA, CURRENT THREE YEAR FORML.'' "'�, kND PROPOSED FORMULA Camarillo Fillmore Moorpark Ojai Port Hueneme Santa Paula Unincorporated TOTAL HUD FORMULA USING 1990 CENSUS DATA F1 12.9 7.8 1 6.8 2.7 11.4 17.6 40.8 1 100.00'1 C'.IRRENT THREE YEAR FORMULA 9 "3) Population data) 172 1991 ALLOCAT '.N SCENARIO 22.8 5.2 11. 1 3.3 8.9 10.9 37.8 100.00 PROPOSED FORMULA (Fl-,F2) 2 17.85 6.50 8.95 3.00 10.15 _4.25 39.30 100.00 RECIPIENT HUD FORMULA USING 1990 CENSUS DATA F1 CiIRRENT THREE YEAR FORMULA _990 Population data) F2 PROPOSED FORMULA 1 Fl +F2 ) 2 329,859.50 134,124.00 176,399.50 73,831.50 197,234.00 Camarillo 243,750 415,969 Fillmore 156,689 111,559 Moorpark 139,193 213,606 Ojai 68,966 78,697 Port Hueneme 218,914 175,554 325,419 210,146 Santa Paula 267,782.50 982,769.00 2,162,000.00 Unincorporated 1,009,069 956,469 TOTAL 2,162,000.00 2,162,000.00 cdbgg cni \ncw (rmla \sw d .0 ,AV HUD'S ALLOCATION FORMULA WITH 1990 CENSUS DATA Santa Paula population 25,062 @ $2.87 ea $71,927.94 poverty index 2,751 @ $53.01 ea $145,830.51 overcrowded housing 981--@ $191.55 ea $187,910.55 total -- $405,669.00 $325,418.64 With HUD's 6% budget adjustment WITH COUNTY'S ADMIN ADJUSTMENT' Unincorporated Area population 86,873 @ $2.87 ea $249,325.51 poverty index 6,066 @ $53.01 ea $321,558.66 overcrowded housing 1.944 @ $19.1.55 ea $372,373.20 total - -- _ $943,257.37 With HUD's 6% budget adjustment _ V i $882,986.82 WITH COUNTY'S ADMIN ADJUSTMENT $1,009,069.46 TOTAL population 229,656Y @ $2.87 ea $659,112.72 poverty index 14,372 @ $53.01 ea $761,859.72 overcrowded housing 4,639 _._ @ $191.55 ea $888,600.45 total _ $2,309,572.89 TOTAL 1991 -1992 CDBG ALLOCATION (With tb adj) $2,162,000.00 HUD'S ALLOCATION FORMULA WITH ' 99' CENSUS DATA Data Rates Totals Camarillo 7 population 52,303 _ @ $2.87 ea $150,109.61 poverty index 1,546 @ $53.01 ea $81,953.46 overcrowded housing 337 @ _$191.55 ea _ $64,552.35 total - - -_- $296,615.42 With HUD's 6% budget adjustment $277,662.83 WITH COUNTY'S ADMIN ADJUSTMENT $243,750.26 Fillmore population 11,992 i @ $2.87 ea $34,417.04 poverty index 1,109 @ $53.01 ea $58,788.09 overcrowded housing 455 @ $191.55 ea $87,155.25 total - - -- $180,360.38 With HUD's 6% budget adjustment $168,836.04 WITH COUNTY'S ADMIN ADJUSTMENT — $156,688.83 Moorpark population 25,494 @ $2.87 ea $73,167.78 poverty index 613 @ $53.01 ea $32,495.13 overcrowded housing 268 @ $191.55 ea $51,335.40 total - - -- !_ -_ $156,998.31 With HUD's 6% budget adjustment $146,966.72 WITH COUNTY'S ADMIN ADJUSTMENT $139,193.37 Ojai _ population 7,613 @ $2.87 ea $21,849.31 poverty index 495 @ $53.01 ea $26,239.95 overcrowded housing 79 @-$191- 55 ea $15,132.45 total - - - -- $63,221.71 With HUD's 6% budget adjustment $59,182.08 WITH COUNTY'S ADMIN ADJUSTMENT _ $68,965.67 Port Hueneme population 20,319 @ $2.87 ea $58,315.53 poverty index 1,792 @ $53.01 ea $94,993.92 overcrowded housing 575 @_$191_.55 ea $110,141.25 $263,450.70 _ total -- — With HUD's 6% budget adjustment $246,617.21 WITH COUNTY'S ADMIN ADJUSTMENT $218,913.76 COOPERATION AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT, made and entered into this 30th day of JULY, by and between the COUNTY OF VENTURA, a political subdivision of the State of California (hereinafter called "COUNTY ") and the CITY OF MOORPARK a municipal corporation located within Ventura County (hereinafter "CITY ") WITNI SaETH: WHEREAS, the United States Department of Housing and Urban Development (hereinafter "HUD ") has notified COUNTi that it is considered to have the required qualifications (determination of essential powers) to participate in the Community Development Block Grant (CDBG) program as an Urban ( ounty as that term is defined in Title I of the Housing and Community Development Act of 974, as amended; and WHEREAS, the CDBG qualification process requires that following HUD's determina- tion that a County possesses the essential powers to participate in the CDBG program as an Urban County, that the units of general local government within the COUNTY be notified of their opportunity to participate in the COUNT'Y'S program by entering into a Cooperation Agreement with the designated Urban County, rnd WHEREAS, such Cooperation Agreements provide that the unit of general local government and the COUNTY will cooperate in community development and housing assistance activities and that the area and population of the unit of general local government will be included with that of the COUNTY by HUD i, determining funding levels; and WHEREAS, COUNTY has notified 'ITY of the opportunity to participate in COUNTY'S CDBG program; and WHEREAS, CITY desires to participate n and be a part of COUNTY'S CDBG program; NOW, THEREFORE, it is mutually agreed between COUNTY and CITY as follows: 1. CITY shall participate in COUNI Y's CDBG program during Federal fiscal years 1992, 1993, and 1994. (The Federal fiscal year is a twelve month period commencing October 1 and continuing through and including the folll )wing September 30). 2. COUNTY and CITY shall cooperate to undertake, or assist in undertaking, community renewal, and lower income housing ;assistance activities, specifically "urban renewal and publicly assisted housing." 3. COUNTY, as Grantee, shall have the final responsibility for determining eligibility of projects and for annually filing Final Statements with HUD. 4. CITY shall undertake all actions necessary to carry out a community development program and the approved Comprehensive Housing Affordability Strategy (CHAS) and comply with all CDBG program requirements applicable to subrecipients and applicable Federal and State laws and regulations. 5. COUNTY is expected to receive funding for the CDBG program from HUD. These funds will be distributed according to the formula set forth in Attachment A. In an effort to fairly allocate reimbursement for administrative costs incurred by CITY under this Agreement, it is understood that in addition to the allocation in the foregoing, CITY will be entitled to receive an amount for its administrative expenses. The formula for identifying the amount available to the CITY fc! administrative costs is specified in Attachment A. 6. CDBG funds shall not be used for activities in or in support of any City that does not affirmatively further fair housing within its own jurisdiction or that impedes the County's actions to comply with its fair housing certifica ion. 7. COUNTY and CITY hereby assurne the obligation to take all required actions to comply with the provisions of Title VI of the C: ivil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the Fair Housing Act, Section 109 of Title I of the Housing and Community Development Act of 1974, and any and all othe applicable laws, regulations and orders. 8. COUNTY and CITY shall not obstruct the implementation of the approved five year Comprehensive Housing Affordability Strategy during the three program years for which COUNTY is seeking to qualify as an Urban Co Anty. 9. CITY understands and agrees that as part of COUNTY'S CDBG program it will not be eligible for a CDBG entitlement or eligible to apply for grants under the Small Cities or State CDBG Programs for the three year period of COUNTY'S qualification. 10. COUNTY shall assume no liability for the negligence of CITY or any officer, employee, or agent thereof, and CITY shall hold COUNTY harmless from any loss, damage, or liability that may arise out of the performanc: ,- of this Agreement, except as may otherwise be provided herein. CITY shall indemnify COUNTY in the amount of any CITY expenditure under this Agreement which is determined by HUD to t7e improper, if such amount is charged against the COUNTY or withheld from COUNTY'S sh, +re of funds under the Act. CITY shall assume no liability for the negligence of COUNTY or any officer, employee, or agent thereof, and COUNTY sh�,Jl hold CITY free and harmless for any loss, damage, or liability that may arise out of the performance of this Agreement, except as may otherwise be provided herein. COUNTY shall indemnify CITY in the amount of any COUNTY expenditure under this Agreement which is determined by HUD to be improper, if such amount is charged against the CITY or withheld from CITY'S share of funds under the Act. 11. This Agreemeni may only be modified by an instrument in writing executed by COUNTY and CITY approved by HUD. 12. Any and all notices sent pursuant to, or in furtherance of the purposes of, this Agreement shall be deemed delivered if personally served upon the Chief Administrative Office of COUNTY or upon the City Manager's Office of CITY or if sent via the United States Postal Service, postage prepaid, directed to COUNT) addressed as follows: Chief Administrative Office County of Ventura 800 South Victoria Avenue Ventura, "A 93009 or directed to CITY, addressed as follows: City Manager's Office City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 13. For each Federal fiscal year during the term of this Agreement, pursuant to 24 CFR 570.501 (b), COUNTY and CITY shall enter into a Supplemental Agreement in conformance with 24 CFR 570.503 titled "Agreements with Subrecipients." The Supplemental Agreement will have a term generally coinciding with the COUNTY's fiscal year and enumerate the project(s) CITY will implement with its entitlement funds. Said Supplemental Agreement shall set forth the time schedule for completion of said project(s). If substantial compliance with the completion schedule, due to unforeseen or uncontrollable circumstances, cannot be met by CITY, the schedule for the project(s) may be extended. If substantial progress toward completion of a project(s) is not made during the term of the Supplemental Agreement, the entitlement funds associated with the project(s) may be reprogrammed by COUNTY after appropriate alotice is given CITY. COUNTY'S decision not to extend the completion schedule associated with the project(s) or to reprogram the entitlement funds associated with the project(s) shall not excuse CITY from complying with the terms of this /agreement nor will said decision render CITY ineligible from securing entitlement funds in the future fiscal years governed by this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above w,- itten. CITY OF MOORPARK COUNTY OF VENTURA 0 City Manager coopmpr.9z C Richard Wittenberg Chief Administrative Officer RESOLUTION N(. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK TO COOPERATE WITH THE COUNTY OF VENTURA IN CONNECTION WITH THE COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT PROGRAM WHEREAS, the U.S. Department of Housing and Urban Development has identified this City as authorized to be included in the County of Ventura's Urban County Community Development Block Grant Program entitlement pursuant to Title I of the Housing and Community Development Act of 1974, as amended; and WHEREAS, that Act requires the execution of a Cooperation Agreement between this City and County of Ventura; and WHEREAS, this agreement allows this City's population to be included with Ventura County's to etermine a basic grant amount; and WHEREAS, it is the intention of this City to enter into such an agreement with Ventura County t(; cooperate in undertaking, or assisting in undertaking, essential community development and /or housing assistance activities, specifically urban renewal and /or publicly assisted housing in the ircorporated areas of this City; and WHEREAS, Ventura County is expected to receive funding for the HUD CDBG Program. These funds will be distributed to cities on an allocation formula as set forth in Attachment "A" of this Agreement; and WHEREAS, in an effort to fairly allocate reimbursement for administrative costs incurred by this City under this Agreement, it is understood that in addition to the allocation in the foregoing, this City will be entitled to receive an amount for its administrative expenses. As set forth in Attachment "A ". NOW, THEREFORE, BE IT RESOLVED -.hat the City Council of the City of Moorpark, 1. elects to participate in t:.ne Community Development Block Grant Program for the three program years of 1992 through 1994 in accordance with the regulations established by the Act; arl -1- 2. directs the City Manager M-o sign the required agreements; and 3. authorizes the City Manager from this City to execute and /or perform all other appropriate acts necessary to accomplish the purpose of this resolution. APPROVED AND ADOPTED this lay of , 199 . City Manager ATTEST: City Clerk I HEREBY CERTIFY that the foregoing Resolution No. was adopted at a regular meeting of the City Council on the day of , 19 , by the f.o'_I_owing vote, to wit: City Clerk -2 rcaolfd.92 Attachment A FY 1912 -1994 CDBG ENTITLEMENT PROGRAM ALLOCATION FORMULA I. Factors Determining Allocat on of Project Dollars CITY % OF PROJECT OF PROJECT 1992 -1994 $ DOLLARS BASED DOLLARS BASED OF PROJECT ON POPULATION ON DOLLARS POVERTY, AND POPULATION HOUSING* (F1 +F2) F1 F2 2 Camarillo 12.9 22.8 17.85 Fillmore 7.8 5.2 6.50 Moorpark 6.8 11.1 8.95 Ojai 2.7 3.3 3.00 Port Hueneme 11.4 8.9 10.15 Santa Paula 17.6 10.9 14.25 Unincorporated 40.8 37.8 39.30 TOTAL 100.00 100.00 100.00 II. Formula for Allocation of Ertitlement Grant A = Total Entitlement Grant for Ventura County A x 14% = B (County of Ventura Administrative Allocation) A x 6% = C (Total of ( ties' Administrative Allocation) C/6 = D (City of Moorpark's Administrative Allocation) A - (B +C) = E (Total Allocation for Projects) E x 8.95% = F (City of Mo)rpark's Allocation for Projects) E x 39.30% = G (County of' Ventura Allocation for Projects) D + F = Total Annual Allocation for City of Moorpark B + G = Total Annual. Allocation for County of Ventura * Based on 1990 census populat: on, and additional HUD factors of poverty index and incidence )f overcrowded housing.