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HomeMy WebLinkAbout1992-12-15; City Council; 12003; SEPARATION AGREEMENT TO TRANSFER COMMUNITY DEVELOPMENT BLOCK GRANT LUMP-SUM DRAWDOWN FUNDS FROM THE COUNTY OF SAN DIEGO TO THE CITY OF CARLSBADRATION AGREEMENT TO TRANSFER CDBG LUMP-SUM THE CITY OF CARLSBAD Adopt Resolution No. 92 -3b 4 approving a Separation Agreement between San Diego and the City of Carlsbad to transfer $507,451.55 from the County’s CI Credit to the City’s CDBG Letter of Credit, authorizing the Mayor to sign the Agreerr of the City, and allocating the total amount of $507,451 55 to the City’s CDBG Afforc Reserve Fund. ITEM EXPLANATION: On September 18, 1984, the City entered into a Cooperation Agreement with the Diego for the period of July 1, 1985 through June 30, 1988, for the purposes of a Commercial/Residential Rehabilitation Program under the Community Developmei (CDBG) Urban County Program. Funding for this program was provided by the U of Housing and Urban Development (HUD) on a “Lump-Sum Drawdown” bas operation, the program accomplished 19 commercial and residential rehabilitatic detailed in Exhibit #2. On September 30, 1989, revised HUD guidelines eliminated Lump Sum Drawdown CDBG projects thereby terminating the City’s CDBG Urban County Commerc Rehabilitation Program. As a result, all unobligated deposited funds under this returned to the County of San Diego’s CDBG Letter of Credit. Under the guidance of HUD, City and County staff have developed a Separation j would formally separate the City from the County with regards to administratioi County Program, and request that HUD transfer the unobligated program fi County’s CDBG Letter of Credit to the City’s CDBG Letter of Credit. Once transferred to the City’s CDBG Letter of Credit, the City assumes full re expenditure of these funds. Pursuant to adoption of this resolution, and upon tr, funds, the City Council agrees to re-allocate this money to the City’s Affordable Hc Fund for use on affordable and supportive housing activities. FISCAL IMPACT: As of September 30, 1992, unobligated funds from the CDBG I Commercial/Residential Rehabilitation Program totaled $507,451 55. This money ‘ the County’s CDBG Letter of Credit as required under the provisions of HUD gi The Separation Agreement with the County will return $507,451 55 to the City’s Credit for use on any CDBG-eligible program and/or project. The provisions of Agreement request that HUD transfer these funds to the City “as soon as pract Q W B Qc Q 3 .. E FI 2 E 2 u 0 u E e PAGE 2 OF AB # /2!0= Council adoption of the resolution provides for re-allocation of the total amount of to the City's Affordable Housing Reserve Fund (Account No. 391 -840-1 890-3742). These funds are CDBG project specific and, therefore, may not be used to offset l administrative costs associated with the use of this money. Possible impacts to tt Fund could be in administrative costs associated with the development and implei programs and/or projects funded with this money. EXHl BITS: 1. Resolution No. Ci2-.?6 y and attached Separation Agreement. 2. Document titled "City of Carlsbad, CDBG Urban County Commercial/Residenti; Rehabilitation Loan Program, Summary of Loans" dated December 1, 1992, on Housing and Redevelopment Department. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 RESOLUTION NO. 92-364 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSa CALIFORNIA, APPROVING A SEPARATION AGREEMENT BETWEEN COUNTY OF SAN DIEGO AND THE CITY OF CARLSBAD TO SEPM AND TRANSFER $507,451.55 IN COMMUNITY DEVELOPMENT BI GRANT (CDBG) LUMP-SUM DRAWDOWN FUNDS FROM THE COUNT] SAN DIEGO CDBG LETTER OF CREDIT TO THE CITY OF CARLS CDBG LETTER OF CREDIT WHEREAS, on September 18, 1984, the City entered in1 Cooperation Agreement with the County of San Diego for period of July 1, 1985 through June 30, 1988, for the purpc of administering a Commercial/Residential Rehabilita Program under the Community Development Block Grant U County Program; and WHEREAS, funding for this program was provided by the Department of Housing and Urban Development (HUD) on a "L Sum Drawdowntt basis; and WHEREAS, on September 30, 1989, revised HUD regulat eliminated Lump-Sum Drawdown Allowability on CDBG projf thereby terminating the City's CDBG Urban Cc Commercial/Residential Rehabilitation Program; and WHEREAS, City and County staff have develope Separation Agreement that would formally separate the from the County with regards to administration of the 1 County Program, and request that HUD transfer $507,451.! unobligated Lump-Sum Drawdown funds from the County's Letter of Credit to the City's CDBG Letter of Credit. NOW, THEREFORE, BE IT HEREBY RESOLVED, by the Council of the City of Carlsbad, California, as follows 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 1. 2. That the above recitations are true and correct. That the Separation Agreement between the County of Diego and the City of Carlsbad transferring $507,451 of unobligated program funds from the County of San Di CDBG Letter of Credit to the City of Carlsbad CDBG Let of Credit, a copy of which is attached as EXHIBIT "A" incorporated herein by reference, is hereby approved 3. That the Mayor of the City of Carlsbad is her authorized and directed to execute said Separat Agreement for, and on behalf of the City of Carlsbac That the fund total of $507,451.55 be re-allocated to City of Carlsbad CDBG Affordable Housing Reserve 1 (Account No. 391-840-1890-3742). PASSED, APPROVED, AND ADOPTED at a regular meeting ( the City Council of the City of Carlsbad, California hell the 15th day of December , 1992, by the following vote wit: AYES: Council Members Lewis, Stanton, Kulchin, Nygaard and Finnila 4. NOES: None ABSTAIN: None ATTEST: ALETHA L. RAUTENKRANZ, City Clkk hjJ&/ &. f, LLLzaL- (SEAL) 0 e 1 EXHIBIT "A" COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM SEPARATION AGREEMENT WITH METROPOLITAN CITY OF CARLSBAD This agreement entered into between the City of Carl (hereinafter referred to as llCityll) and the County of San D (hereinafter ref erred to as tlCountyll) this day of 1992 . WITNESSETH: WHEREAS, the County of San Diego has entered into contr with the United States of America through its Department of Hou and Urban Development (HUD) to execute the County's Cornu Development Block Grant (CDBG) Program under the Housing Community Development Act of 1974, as amended (hereinafter refc to as llActll); and WHEREAS, on September 18, 1984, the County and the City en1 into a Cooperation Agreement for the period of July 1, 1985 thi June 30, 1988, in which both parties agreed to cooperat undertake or assist in the undertaking of community developmen housing assistance; and WHEREAS, the County and the City have previously entered Implementation Agreements (County Contract No's. 15671, 1 18542, 20422, 22638, 24439 and 26299) to carry out certain comm development activities; and WHEREAS, the City, as of this date, has unexpendec unobligated Community Development Block Grant funds tota $507,451.55. This amount consists of $33,000 in Contract No. 1 $22,000 in Contract No. 18350; $79,189 in Contract No. 1 $108,862 in Contract No. 20422; $39,423 in Contract No.2 $50,156 in Contract No. 24439; and $60,000 in Contract No. 2625 unallocated funds of $114,821.55; and WHEREAS, the County formerly administered the City's Corn Development Block Grant Program through June 30, 1988; and WHEREAS, the City became a Metropolitan City under Act 07 1, 1988, and is now a Metropolitan City and administers it Community Development Block Grant Program; and 0 0 WHEREAS, the City as a Metropolitan City, now desires t separated from the Countyls program through the transfer of obligations and responsibilities from County to City of unallocated funds from the Urban Countyls Letter of Credit future program income derived therefrom in accordance with Sec 106 (C) (3) of the Housing and Urban Rural Recovery Act of 198 IT IS AGREED AS FOLLOWS: 1. Community Development Block Grant funds of $507,45: which consists of the unobligated funds within Contract No. I! Contract No, 18350; Contract No. 18542; Contract No. 20422; Con NO. 22638; Contract 24439; and Contract Ne. 26299 and unallocated funds of $114,821.55 shall be transferred fron County to City. This Agreement shall constitute a request to H transfer this amount of Community Development Block Grant funds the Urban County's Letter of Credit to the City's Letter of C. as soon as practical by HUD. City, upon transfer of these funds to the City's Lett Credit by HUD, shall accept all obligations and responsibiliti HUD for the expenditure of the unobligated funds stated he These obligations include, but are not limited to, the Housin Community Development Act of 1974, (Public Law 93-383) as ame the Regulations of the Department of Housing and Urban Develc relating to Community Development Block Grants (Title 24, Chapt Part 570 of the Code of Federal Regulations commencing with SE 570.1); and the assurances (HUD Form No. 7068); and auditjrnonitoring findings and program reporting. city further agrees to carry out all activities foi agreed to be carried out by the County, as set forth in the Contract Numbers. Said activities to be carried out wit transferred funds which are the subject of the Separation Agrec Transferred funds may be reallocated by the City to carry 01 eligible activities, in accordance with 570.305 and all applicable requirements. 4. County agrees that it accepts all obligation responsibilities to HUD for the expenditures and unliqu obligations associated with activities listed in the above con prior to the effective date of the transfer of funds City audit and monitoring findings associated with those expenditur obligations remain with County. 5. The City is entitled to any unobligated program which may result from the activities carried out with transferred funds. 2. 3. 0 0 6. The City agrees to fully indemnify, defend and sa harmless the County against any and all loss, damage, liabilit claim, demand, suit or cause of action resulting from injury harm to any person or property arising out of or in any w connected with the performance of this Agreement, excepting on fault or negligence of the County. such injury or harm as may be caused solely and exclusively by t This Agreement shall not have any force or effect unt parties have executed this agreeme ve written. 7. approved by HUD. COUNTY OF SAN DIEGO BY Dated : + A> /6. /.YZ Commercial: Retail Shops Shopping Center Retail Shop Auto Service Auto Supply Office/Retail Appraisal Bakery Market/Deli Office Liquor Store/Deli Restaurant 1 Date of Loan Yrs. @ Percent 08/25/82 10 @ 12% 09/02/82 10 @ 12% 03/24/83 7 @ 12% 08/30/83 10 @ 10% 04/12/84 Grant 05/01 184 10 @ 10% 10/03/84 10 @ 10% 10/15/84 Grant 1 1 /16/84 9 @ 10% 08/12/85 10 @ 10% 08/12/85 10 @ 10% 02/10/86 10 @ 10% Residential: Single Family Single Family (Disabled) Single Family (Elderly) Single Family Single Family (Female - Disabled) Single Family (Female - Head of Household) Date of Loan Yrs. @ Percent 08104183 15 @? 10% 08/06/83 Deferred 05/01 /84 Deferred 04/22/85 15 @ 3% 04/01 /88 Grant 06/15/88 15 @ 3% 06/29/83 15 @ 10% a 0 December 14, 1992 TO: DEPUTY CITY CLERK FROM: Senior Management Analyst SFPARATION AGREEMENT - Q>BG URBAN COUNTY REHABILITATION LOAN PROGRAM Attached are five (05) originals of the Separation Agreement to be signed by the MI relative to the City's CDBG Urban County Rehabilitation Loan Program. This item i scheduled for action by the City Council at its meeting of December 15, 1992. All originals of the signed Agreement must be forwarded to the following address fc review and approval by the County Board of Supervisors: Stan Coombs, Community Development Manager County of San Diego Department of Housing and Community Development 3989 Ruffin Road MS 0231 San Diego, CA 92123-1815 If approved by the Board of Supervisors, the County's Department of Housing and Community Development d forward the Agreement to the U.S. Department of Housing and Urban Development (HUD) for final approval. If you have any questions, please contact me at extension 2817. ou for your assistance. cLINTPHILWpS Attachments c: Housing and Redevelopment Director # .I December 22, 1992 Mr. Stan Coombs Community Development Manager County of San Diego Department of Housing and Community Development 3989 Ruffin Road MS 0231 San Diego, CA 92123-1815 Dear Mr. Coombs: RE: Separation Agreement with the County of San Diego for Tranz of CDBG Lump-Sum Drawdown Funds The Carlsbad City Council, at its meeting of December 15, 1s adopted Resolution No. 92-364, approving a Separation Agreement Transfer of CDBG Lump-Sum Drawdown Funds. Enclosed is a certified copy of Resolution No. 92-364 and five originals of the above-referenced agreement. &d*cNc Assistant City Clerk KRK:ijp Enclosures 1200 Carlsbad Village Drive - Carlsbad, California 92008-1 989 - (61 9) 434-