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CR2002-109 CDBG Coop agreement '1 . CITY OF ~ June 13,2002 kOPK1NS Council Report 2002-109 . URBAN HENNEPIN COUNTY JOINT COOPERATION AGREEMENT Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution 2002- 63 authorizinq the execution of a ioint cooperation aqreement between the City of Hopkins and Hennepin County for participation in the Urban Hennepin County Community Development Block Grant proqram in FY 2003-2005. With this motion the agreement will be executed and forwarded to Hennepin County. Overview For many years the City of Hopkins has participated in the Urban Hennepin County Community Development Block Grant (CDBG) program, which entitles the City to a yearly allocation of COBG funds and the opportunity to compete for HOME funds. In order to participate in the Hennepin County COBG and HOME programs, the City must execute a Joint Cooperation Agreement. This agreement would be in effect for fiscal years 2003 through 2005. . Entitlement COBG funds are allocated to large jurisdictions and the City of Hopkins does not qualify as an entitlement community. It is only through the participation in the Urban Hennepin County program that the City is eligible for the entitlement status. Primary Issues to Consider . What is the impact of this action on the City? . What are the major changes in the agreement? SupportinQ Information . Resolution 2002-63 . Join 00 eraf n Agreement Urban Hennepin County COBG Program Financial Impact: $ Budgeted: Y/N - Source: Related Documents (CIP, ERP, etc.): . Notes: . . Joint Cooperation Agreement Council Rpt. 2002-109 Page 2 Primary Issues to Consider . What is the impact of this action on the City? Without the Joint Cooperation Agreement, the City of Hopkins would not be eligible for entitlement funds through the CDBG program. Rather, the City would have to compete for the funds through the state CDBG program with the likelihood of being funded very low. Under the current allocation formula the City of Hopkins receives approximately $150,000 in CDBG funds each year. . What are the major changes in the agreement? The following changes of the current agreement have been proposed by Hennepin County: . . Reduction in time given to spend funds from 24 months to 18 months . Increase in County administration fee from 10 to 13 percent The reduction in the time given to spend funds is in response to expenditure goals imposed by the Department of Housing and Urban Development (HUD). The administration fee increase is being proposed to offset increasing County property tax expenditures for administration. Alternatives The City Council has the following alternatives regarding this issue: . Approve the action as recommended by staff. . Elect not to participate in the Urban Hennepin County CDBG program over the next three years, . . CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2002-63 RESOLUTION AUTHORIZING THE EXECUTION OF A JOINT COOPERA TION AGREEMENT BET"rEEN THE CITY OF HOPKINS AND HENNEPIN COUNTY FOR PARTICIPATION IN THE URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN FY 2003 - 2005. WHEREAS, the City of Hopkins. MinnesotG Gnd the County of Hennepin hGve in effect G Joint Cooperation Agrecment for purposes of qualifying GS an Urban County under the United St::ttes Department of Housing and Urb::tn Development Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs~ and WHEREAS. the City and COllnty wish to execute a new Joint Cooperation Agreement in order to continue to qualify as GI1 Urban County for purposes of the Community Development Block Grant and HOME Programs, BE IT THEREFORE RESOLVED that a new Joint Cooperation Agreement between the . City and County be executed effective October 1. 2002, and thGt the Mayor and the City Mnnager/ Administrator be authorized and directed to sign the Agreement on behalf of the City. Adopted this 18th day of June, 2002. By EU2"cne 1. Maxwell. Mavor ~ - Attest: Terry Obermaier. City Clerk. . . Contract No. A04232 JOINT COOPERATION AGREEMENT URBAN HENNEPIN COUNTY COl\1J\fUNITY DEVELOPMENT BLOCK GRANT PROGRAl\'[ THIS AGREEMENT made and entered into by and between lhe COUNTY OF HENNEPIN, State of Minnesota, hereinafter referred to as "COUNTY," A-2400 Govemment Center. Minneapolis, Minnesota, 55487. and the cities executing this Master Agreement, each hereinafter respectively referred to as "COOPERATING UNIT," said parties to this Agreement each being governmental units of the Slate of Minnesota, and made pmslIant to Minnesota Statutes, Section 471.59: WITNESSETH: COOPERATING UNIT ane! COUNTY agree that it is desirable and in the interests of their citizens that COOPERATING UNIT shares its authority to carry out essential community development and housing activities with COUNTY in order to pennit COUNTY to secure and administer Community Development Block Grant and HOf\1E Investment Partner~hip funds as an Urban County \vithin the provisions of the Act as herein defined and, therefore, in consideration of the mutual covenants and promises contained in th is Agreement. the panies lllutually agree 10 the following terms and conditions. . COOPERA TING UNiT acknmvledges that by the execution of this Agreement that it understands that it: 1. May not also apply for grants under the State CDBG Program from approrriation~ for fiscal years Juring which it is participating in the Urhan County Program; and " May not participate in a HOME Consortium except Ihrough the Urban County. I. DEFINITIONS The definitions contained in 42 use 5302 of the Act and 24 CFR *570.3 of the Regulations are incorporated herein by reference and made a pal1 hereof, and the terms defined in this section have the meanings given them: A. "Act" means Title I of the Housing and Community Development Act of 1974. as amended. (42 USe. 5301 et seq.J. B. "Regulations" means the rules and regulations promulgated pursuant to the Act. including but not limited to 24 CFR Part 570. C. "HUD" means the United States Department of Housing and Urban Development. D. "Cooperating Unit" means any city or town in Hennepin County that has entered inro a cooperation agreement that is identical to this Agreement, as well as Hennepin County. \vhich is a party to each Agreement. . E. "Consolidated Plan" means the document bearing that title or similarly required statements or documents submitted to HUD for authorization to expend the annual grant amount and ""hie h is 1 . developed bj' the COUNTY in conjunction with COOPERATING UNITS as part of the Community Development Block Grant Progrnm. F. "Metropolitan City" means any city located in whole or in part in Hennepin County which is cCI1ified by HUD to have a population of 50,000 or more people. II, PURPOSE The purpose of this Agreement i~ to authorize COUNTY and COOPERATING UNIT to cooperate to undertake, or assist in undertaking, comlllun ity rencv.ral and lmver income housing assistance activities, specifically urban renewal and publ iely assisted housing and authorizes COUNTY to carry out these and other eligible activities for the benefit of eligible n:cipients who reside within the corporate limits of the COOPERATING UNIT which \\ill be funded from annual Community Development Block Grant and HOME appropriatiolls for the Federal Fiscal y ears ~003. ~OO..j. and :?:005 and from any program income generated from the expenditure of such funds. III. AGREEI\JENT The term of this Agreement is for a period commencing on October I, ~002 and terminating no sooner than the end of the program year covered by the Consolidated Plan for the basic grant amount for the Fiscal Year 2005, as authorized by HUD, and for such additional time as may he required for the expenditure of funds granted to the County for such period. COUNTY may notify COOPERATING U NIT prior lo the cnd of the Urban County qualification period that the Agrecment will automat/cally be renewed unless it is terminated in writing by either . party. Either COUNTY or COOPERA TING UNIT may exercise the option to terminate the Agreement at the end or the Urban County qualification period. If COUNTY or COOPERATING UNIT fail to exercise that option, it will not have the opportunity to exercise that option until the end of a subsequent Urban Coullty qualification period. COUNTY will notify the COOPERATING UNIT in writing of its right to elect to be excluded by the date specih-:-d by HUD. This Agreement must be amended by written agreement of all parties to incorporate any changes necessary to meet the requirements for cooperation agreements set forth in the Urban County Qualification Notice applicahle for the year in which the next qualification of the County is scheduled. Failure by either party to adopt such all amendment to the Agreement shall automatically terminate the Agreement following the expenditure of all CDBG and HOt\.1E funds allocated for use' in COOPERATING UNIT's jurisdiction. ;-..Jotwithstanding any other provision of this Agreemcnt this Agreement may be terminated at the end of the program period during \V'hieh HUD withdraws its designation of COUNTY as an Urban County under the Act. This Agreement shall be executed by the appropriate officers of COOPERATING UNIT and COUNTY pursuanl to authority granted them by their respeclive governing bodies. and a copy of the authorizing resolution and executeJ Agreement shall be filed promptly by the COOPERATING UNIT in the Hennepin County Department of Housing, Community Works and Transit, and in no event shall the Agreement be filed later than June 30, ::'002. COOPERATING UNIT and COUNTY shall take all actions necessary to assure compliance with the applicant's cel1ifications required by Section I 04(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title VI orthe Civil Rights Act of 1964; the Fair Housing Act. Section 109 of Title I of the Housing and Community Development Act of 1974; and other applicahle laWS. . 2 --- --- ._~- ----- ---.- -- -- .---- . IV. ACTIVITIES COOPERA TING UNIT agrees that awarded grant funds will be used to undertake and carry out, within the terms of this Agreement. certain projects involving one or more of the essential activities eligible for funding under the Act. COUNTY agrees and will assist COOPER.""- TING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all arplicable requirements of the Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate COUNTY's responsibility to assume all obligations of an applicant under the Act, including the development of the Consolidated Plan. pursuant to ~4 CFR Part 91. COOPERA TlNG UNIT further specifi.'ally agrees as follows: A. COOPERA TING UNIT will, in accord \vith a COUNTY -established schedule, prepare and provide to COUNTY, in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement. program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that. pursuant to ~4 CFR ~570.50 1 (b). it is subject to the same re\.juircments applicable to subrecipiellts. including the requirement for a written Subrecipient Agreement !>et forth in 2-+ CFR ~570.503. The Suhrecipient Agreement will cover the implementation requirements for each activity funded pursuant to this Agreement and shall be duly executed with and in a fann prescribed by COUNTY. . C. COOPER A TING UNIT acknowledges that it is subject to the same subrecipient requirements stated in paragraph B above in instances where an agency other than itself is undertaking an acti vitl' pursllant (0 this Agreement on behalf of COOPERATING UNIT. In sllch instances, a written Third Party Agreement shall be duly executed between the agency anu COOPERATING UNIT in a form prescribed by COUNTY. D. COOPERA TING UNIT shall implement all activities funded for each annual program pursuant to this .\greement vv'ithin eighteen (] 8) months of the authorization hy HUD to expend the hasic grant amount. l. Funds for all activities not implemented within eighteen ( ] 8) months shall be transferred to a separLlte account for reallocation on a competitive request for proposal basis. "1 Limited extensions to the implementation period may be granted upon request only in cases \ovhere the authorized activity has been initiated and/or subject of a binding contract to proceed. "> If COUNTY is notified by HUD that it has not met the performance standard for the timely .~. expenditure of funds at 24 CFR 570.902(a) and the COUNTY entitlement grant is reduced by HUD, according to its policy on corrective actions, then the basic grant amount to any COOPERA TING UNIT that has not met its expenditure goal shall be reduced in a manner proportionate to the reduction in the COUNTY grant. E. COOPERATING UNIT will take action,', necessary to assist in accomplishing the community development program and hou<.ing goals, as contained in the Urban Hennepin County Consolidated . Plan. 3 . F. COOPERA TING UNIT shall ensure that all programs and/or activities funded, in part or in full by grant funds received pursuant to this Agreement, shall be undcI1aken affirmatively with regard to fair housing. employment and business opportunities for minorities and women_ It shalL in implementing all programs and/or activities funded by the basic grant amount, comply with all applicable Federal ancl Minnesota Laws, statutes, rules and regulations with regard to ci vi I rights, affinnative action and equal employment opportunities and Administrative Rule issued by the COUNTY. G. COOPERATING UNIT that does not affirmatively further fair housing within its own jurisdiction or that impedes action by COUNTY to comply with its fair housing certification shall be prohibited from receiving COBO funding for any activities. H. COOPERATING UNIT shall participate in the citizen partIcIpation process, as established by COUNTY, in compliance with the requirements of the Housing and Community Development Act of ] 974, as amended. J. COOPERATING UNIT shall reimburse COUNTY for any expenditure determined by HUD or COUNTY to be ineligible. J. COOPERA TING UNIT shall prepare, ex.ecute, unci cause to be fibl all documents protecting the interests of the parties hereto or any other party of interest as may be designated by the COUI'\TY. K. COOPERATING UNIT has adopted and is enforcing: I. A policy prohibiting the lIse of excessi\'e force by Jaw enforcement agencies within its . jurisdiction against any individuals engaged in nonviolent civil rights demonstrations: amI "1 A policy of enforcing applicable State and local laws against physically ban-ing entrance to or -. exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within its jurisdiction. COUNTY further specifically agrees as follows: A. COUNTY shall prepare and submit to HUD and appropriate reviewing agencies, on an anllual basis. all plans. statements and program docLlments necessary for receipt of a bas ic grant amount under the Act. B_ COUNTY shall provide, to the maximulll extent feasible. technical as<,istance and coordinating services 10 COOPERATING UNIT in the preparation and submission of a request for fUlld ing-. C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to aid COUNTY in fulfilling its responsibility to HUD for accomplishment of the community development program and hOllsing goals. D. COUNTY shall, upon official request by COOPERA TING UNIT, agree to administer local housing rehabi I itatian grant programs funded pursuant to the Agreement provided that COUNTY shall receive Twelve percent (12'7c) of the allocation by COOPERATING UNIT to the activity as reimbursement for costs associated with the administration of COOPER A TING UNIT activity. . 4 . E. COUNTY may, at its discretion and upon official request by COOPERATING UNIT, agree to administer. for a possihle fee, other programs and/or activities funded pursuant to this Agreement on behalf of COOPERATING UNIT. F. COUNTY may, as necessary for clarification and coordination of program administration, develop and implement Administrative Rules consistent \\lith the Act, Regulations, HUD administrative directives, and administrative requirements of COUNTY. V. ALLOCATION OFBASIC GRANT AMOUNTS Basic grant amounts received by the COUNTY under Section 106 of the Act shall be allocated as follows: A. COUNTY shall retain thirteen percent (J 3!Jt) of the ilnllllnl basic grant amount for the administration of the program. Included in this administrative amollnt is funding for annual county-wide Fair Housing activities. B. The balance of the basic grant amount shall be made available by COUNTY to COOPERATING UNITS in accordance with the formula stated in part C and the procedure stated in part D of this section ["or the purpose of allowing the COOPERATING UNITS to submit funding requests. The allocation is for planning purposes only and is not a guarantee of funding. C. The COUNTY will calculate, for each COOPERA TlNG UNIT, an amount that bears the same ratio 10 the balance of the basic grant amount as lhe "verage of the ratios between: . 1- The population of COOPERA TING UNIT and the population of all COOPERATING UNITS. 2. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERA TING UNITS. 3. The extent of overcrowded housing by units in COOPERA TlNG UNIT and the extent of overcrowded housing by units in all COOPERATING UNITS. 4. In determining the average of the above rat ios, the ratio involving the extent of povel1y shall be counted twice. D. Funds will be made available to communities utilizing the formula specified in C of this Secti0n in the following manner: I. COOPERA TING UNIT qualifying as a Metropolitan City (having populations of at least 50,000) will receive annual funding allocations elJual to the HUD formula entitlement or the COUNTY formula allocation, whichever is greater. '") Other COOPERA.. TING UNITS with COUNTY formula allocations of $75,000 or more will receive funding allocations in accordance \lv'ith the formula al]ocation~. 3. COOPERA TING UNITS with COUNTY formula allocations of less thnn $7.'\000 will have their funds consolidated in a pool for award in a manner determined by COUNTY. Only the . COOPERA TING UNITS, whose funding has been pooled, will be eligible to compete for these funds. 5 . E. The COUNTY shall develop these ratios based upon data to be furnished by HUD. The COUNTY assumes no duty to gather such data independently and assumes no liabil ity for any eITars in the data furnished by HUD. F. In the event COOPERATING UNIT does not request a funding allocation, or a portion thereof, the amount not requested shall be made available to other pm1icipating communities, in a manner determined by COUNTY. VI. METROPOLITAN CITIES Any metropolitan city executing this AgreemEnt shall defer their entitlement status and become pan of Urban Hennepin County. This agreement can be voided if the COOPER A TING UNIT is advised by HUD. prior to the completion of the re- qualification process for fiscal years ::!003-2005, that it is eligible to become a metropolitan city and the COOPERATING UNIT elects to take its entitlement stat liS. If the agreement is not voided on the basis of the COOPERA TING UNIT's eligibility as a metropolitan city prior to July 13, 200::!. the COOPERA TING UNIT must remain a part of the COUNTY program for the entire three-year period of the COUNTY qualification. VII. OPINION OF COUNSEL . The undersigned. on behalf of the Hennepin County Attorney. having reviewed this Agreement. hereby opines that the terms and provisions of the Agreement are fully authori7ed under State and local law and that the COOPERA TING UNIT has full legal authority to undertake or assist in undertaking essential commun ity development and housing assistance aL'livities. ~pecifically urban renewal and publicly-assisted hOllsing. Assistant County Attomey . 6 . VIII. HENNEPIN COUNTY EXECUTION The Hennepin COllnty Board of Commissioners having duly approved this Agreement on 2002, and pursuant to such approval and the proper County official having signed this Agreement, the COUNTY ngrees to be bound by the provisions herein set forth. COUNTY OF HENNEPIN, STATE OF MINNESOTA By: Chair of its County Board And: Assistant/Deputy/County Administrator Attest: Deputy/Clerk of the County Board And: Assistant County Administrator. Public Works and Counly Engineer . APPROVED AS TO FORM: RECOMMENDED FOR APPROV AL Assistant County Attollley Director. Housing, Community Works and Transit DepartmEnt Dale: Dnle: APPROVED AS TO EXECUTION: Assistanl County Attollley Date: . 7 __._ ____. __..____. ___..._u_.____.. -..-..---.---- --- . IX. COOPERATING UNIT EXECUTION COOPERA TING UNIT, having signed th is Agreement. and the COOPERATING UNIT'S governing body having duly appro\~J this Agreement on ,2001. and pursuant to sllch approval and the proper city official having signed this Agreement. COOPER A TlNG UNIT agrees to be bound by the provisions of this Joint Cooperation Agreement, contract A CITY OF By: Its Mayor And: Its City Manager ATTEST: CITY MUST CHECK ONE: The City is organized [JlIrslIanl to: . ~ Plan A - Plan B ~ Charter . June 13. ~OU-' 8