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HomeMy WebLinkAboutCC Item No. 10CITY OF LADE e~ 7~LSIROIZE DREAM EXTREM& REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: JULY 12, 2011 SUBJECT: APPROVAL OF CDBG JOINT RECIPIENT COOPERATION AGREEMENT FOR FISCAL YEARS 2012-13; 2013-14; and 2014-15 Background In June 2011, the County of Riverside Economic Development Agency (EDA) notified staff that the CDBG Cooperation Agreement for fiscal years 2012-2013, 2013-2014, and 2014-2015 needed to be renewed. Being designated as a Cooperating City allows for cities with populations less than 50,000 to join EDA's Urban County agreement to participate in the CDBG program. This also entitles these cities to qualify for HOME funds as well as the County's Emergency Shelter Grant (ESG). Staff notified the EDA that the City surpassed the 50,000 population level and would like to get more information regarding the Entitlement City status. Being designated as an Entitlement City allows cities to have more direct control over the CDBG designated funds as well as a higher allocation since the funds go directly to the City and are not dispersed through the County. Staff had several phone conversations with HUD regarding the Entitlement Status for Lake Elsinore. They notified us that the City did in fact qualify for Entitlement Status. However, they advised us that they do not normally recommend Cities opt for the Entitlement City status unless their annual awards range from $500,000 to $1,000,000. According to HUD, it has been their experience that cities with anything less than that amount normally do not have the adequate resources to handle all the reporting requirements that comes with being an Entitlement City. Identifying that the City was allocated approximately $215,000 from the EDA last year, staff requested from HUD the amount that we would have been allocated had we been AGENDA ITEM NO. 10 Page 1 of 19 Approval of CDBG Joint Recipient Cooperation Agreement July 12, 2011 Page 2 an Entitlement City; thus identifying if it would be cost effective to pursue the Entitlement Status given our limited resources. HUD notified staff that last year we would have been allocated approximately $311,000 for fiscal year 2011-2012. They acknowledged this would have been more than what the County allocated; however, they reiterated their concern of our ability to meet the reporting demands that an Entitlement City incurs. In order to not have the reporting requirements from HUD and also keep Lake Elsinore's allocation local, they offered the Metropolitan City agreement option. The Metropolitan City agreement is a "middle ground" between a Cooperative City and an Entitlement City. It permits an Entitlement City to claim their entitlement status, receive higher amounts of allocation, and enter into a contract with the Urban County (EDA) to handle the entire administration portion of the CDBG program. Before contacting the EDA about entering into a Metropolitan City agreement, staff wanted to see what avenues other jurisdictions with populations over 50,000 were pursuing. Staff was directed to the City of Temecula, who this year is also electing to take the Entitlement status. The City of Temecula had considered the Metropolitan City option, but felt that they had sufficient staff and resources to implement all of the necessary HUD reporting requirements. Temecula will retain a consultant for the first five (5) years to train their staff on how to draft the reports. After the five (5) years, they will transition to having their staff take over the entire CDBG program. In addition to current staff time, the City of Temecula is budgeting approximately $30,000435,000 a year for consultant services. Staff contacted the EDA about entering into a Metropolitan City agreement. The EDA supported the City's participation through the Metropolitan City agreement process and provided staff with the attached agreement. Discussion Understanding the City's limited resources and having no one on staff trained in CDBG HUD reporting, staff determined that the best benefit for the City would be to enter into a Joint Recipient Cooperative Agreement (Metropolitan City Agreement) with the EDA. Under a Joint Recipient Cooperative Agreement, the City's allocation will be that portion of the total annual allocation as specified by written notice from HUD. Out of the twenty percent (20%) permissible for administration, the County is requiring twelve-percent (12%) for administration of the Urban County program. In other words, the EDA will conduct the same tasks as when Lake Elsinore was a Cooperating City, except now we have Entitlement Status and receive our full allocation to be spent in the City of Lake Elsinore. On behalf of the City, the EDA's duties include, but are not limited to: • Review all funding applications for HUD eligibility. • Carry out all administration work between HUD, applicants, and City for approved projects. Page 2 of 19 Approval of CDBG Joint Recipient Cooperation Agreement July 12, 2011 Page 2 • Update and inform cities of all HUD rules and regulations. • Drafts and submits all required one (1) year and five (5) year reporting to HUD. • Handle and administer the Integrated Disbursement and Information System (IDIS) that HUD requires and utilizes. Furthermore, the City will also qualify for HOME funds to be spent in the City of Lake Elsinore and we are now eligible to apply for additional HOME funds through the State of California, should the City want to implement additional projects within the City. The only program that we are not eligible for is the Emergency Shelter Grant (EMS). However, according to the EDA, the City of Lake Elsinore has never participated in the EMS in the past. Execution of the attached Joint Recipient Cooperation Agreement ensures the City's continued participation in the CDBG and the HOME program for fiscal years 2012-2013, 2013-2014, and 2014-2015. Fiscal Impact Although the funding levels from HUD are unknown at this time, execution of this agreement guarantees that the City will be entitled to continued CDBG Program resources allocated by HUD and administered by the EDA as a Joint Recipient Cooperation Agreement (Metropolitan City). Participation in the Metropolitan City agreement with the EDA allows the City to enjoy the benefits of an Entitlement City without having to deal with the cumbersome requirements imposed by HUD. Recommendations 1. Authorize the Mayor to execute the Joint Recipient Cooperation Agreement with the County of Riverside allowing the City to participate in the Urban County Community Development Block Grant and the HOME program. 2. Waive further reading and adopt a resolution authorizing participation in the County of Riverside's Urban County Program for Fiscal Years 2012-13; 2013-14; 2014-15. Page 3 of 19 Approval of CDBG Joint Recipient Cooperation Agreement July 12, 2011 Page 2 Prepared by: Justin Carlson Redevelopment Agency Analyst Approved by: Robert A. Brady City Manager Attachments: 1. City Council Resolution 2. County of Riverside Economic Development Agency Cooperation Agreement for the Community Development Block Grant, Home Investment Partnership Program, and the Emergency Shelter Grant for fiscal years 2012-2013, 2013- 2014, and 2014-2015 Page 4 of 19 RESOLUTION NO. 2011-044 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA AUTHORIZING PARTICIPATION IN THE COUNTY OF RIVERSIDE'S URBAN COUNTY PROGRAM FOR FISCAL YEARS 2012-2013, 2013-2014, 2014- 2015 WHEREAS, the City of Lake Elsinore has elected to participate as a Metropolitan City in the County of Riverside's Urban County Program for Federal Fiscal Years 2012- 2013, 2013-2014, and 2014-2015; and WHEREAS, the Joint Recipient Cooperation Agreement will allow the City to carry out activities which are funded by Community Development Block Grant funds; and WHEREAS, the Joint Recipient Cooperation Agreement will allow the Metropolitan City to participate in the Urban County Consolidated Planning Programs. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Joint Recipient Cooperation Agreement between the County of Riverside and the City of Lake Elsinore is hereby approved. SECTION 2. The City Council hereby authorizes and directs the Mayor or, in the absence of the Mayor, the Mayor Pro Tern to execute the Joint Recipient Cooperation Agreement on behalf of the City of Lake Elsinore. SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and the same shall thereupon take effect and be in force. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 12th day of July, 2011. AMY BHUTTA, MAYOR CITY OF LAKE ELSINORE ATTEST: VIRGINIA BLOOM CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY Page 5 of 19 Page 6 of 19 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 JOINT RECIPIENT COOPERATION AGREEMENT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, FOR FISCAL YEARS 2012-13,2013-14,2014-15 This Joint Recipient Cooperation Agreement hereinafter referred to as "Agreement" is I made and entered into this day of 2011, by and between the COUNTY OF I RIVERSIDE, a political subdivision of the State of California, hereinafter referred to as I "COUNTY", and CITY OF LAKE ELSINORE, an incorporated municipality within the I geographical boundaries of the COUNTY, hereinafter referred to as "CITY," who together are I sometimes referred to herein individually as "Party" or collectively as the "Parties." RECITALS WHEREAS, the Housing and Community Development Act of 1974, as amended (Public Law 93-383), hereinafter called "ACT", provides that Community Development Block Grant, funds hereinafter referred to as "CDBG", may be used for the support of activities that provide decent housing, suitable living environments, and expanded economic opportunities principally for persons of low and moderate-income; and WHEREAS, CDBG regulations require counties to re-qualify as an Urban County under I the CDBG program every three years; and WHEREAS, the City has attained Metropolitan City status under the "ACT", and the CITY desires to participate in the COUNTY's Urban County program as a joint recipient; and WHEREAS, the execution of this Agreement is necessary to include CITY as a Metropolitan City under COUNTY's Urban County CDBG program. NOW THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived there from, the parties agree as follows: 1. GENERAL. This Agreement gives COUNTY authority to undertake, or assist in undertaking, activities for Fiscal Years 2012-13, 2013-14, and 2014-15, that will be funded from the CDBG program and from any program income generated from the expenditure of such funds. COUNTY and CITY agree to cooperate, to undertake, or to assist in undertaking, community Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 7 of 13 Page 7 of 19 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 renewal and lower-income housing assistance activities. COUNTY is qualified as an "Urban County" under the ACT. CITY, by executing this Agreement, hereby gives notice of its election to participate in an Urban County Community Development Block Grant program, hereinafter referred to as "CDBG programs". By executing this Agreement, CITY understands that it may not apply for grants from appropriations under the Small Cities or State CDBG Programs for fiscal years during the period in which it participates in the Urban County's CDBG program. Pursuant to 24 CFR 92.101, the CITY will form a HOME Investment Partnership Act (HOME) Consortium with the COUNTY in order to be considered for HOME funding through the COUNTY. The CITY may apply for Emergency Shelter Grants from the State of California, if permitted by the State. 2. TERM. The term of this Agreement shall be for three (3) years commencing on July 1, 2012, through June 30, 2015, unless an earlier date of termination is fixed by U.S. Department of Housing and Urban Development, hereinafter called HUD, pursuant to ACT. This Agreement will be automatically renewed for participation in successive three-year qualification periods, unless the COUNTY or the CITY provides written notice to the other Party that it elects not to participate in the next three-year Urban County program. COUNTY will notify CITY of CITY's right not to participate in the next three-year period no later than the date specified by HUD in the Urban County Qualification Notice. CITY shall notify COUNTY no later than the date specified in COUNTY's notification that CITY elects not to participate in the next three-year Urban County Program. COUNTY will send copies of all notifications required by this Paragraph to the HUD Field Office. The terms of this Agreement shall remain in effect until the CDBG funds and program income received with respect to activities carried out during the three-year qualification period are expended and the funded activities completed. Furthermore, neither the COUNTY nor the CITY may terminate or withdraw from this Agreement while it remains in effect. Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 2 of 13 Page 8 of 19 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 3. PREPARATION OF FEDERALLY REQUIRED FUNDING APPLICATIONS. The Riverside County Economic Development Agency, subject to approval of COUNTY's Board of Supervisors, shall be responsible for preparing and submitting to HUD, in a timely manner, all reports and statements required by the ACT and the Federal regulations promulgated by HUD to secure entitlement grant funding under the CDBG, HOME, and ESG programs. This duty shall include the preparation and processing of COUNTY Housing, Community, and Economic Development Needs Identification Report, Citizen Participation Plan, the County Five-Year Consolidated Plan, One-Year Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and other related programs which satisfy the application requirements of ACT and its regulations. 4. COMPLIANCE WITH FEDERAL STATUTES. REGULATIONS AND OTHER APPLICABLE STATUTES. REGULATIONS AND ORDINANCES. (a) COUNTY and CITY will comply with the applicable provisions of the ACT and those federal regulations promulgated by HUD pursuant thereto, as the same currently exists or may hereafter be amended. The COUNTY and CITY will take all actions necessary to assure compliance with COUNTY's certifications required by Section 104 (b) of Title I of ACT. COUNTY and CITY will comply with the provisions of the following: National Environmental Policy Act of 1969; Title VI of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968; and Title 24 Code of Federal Regulations part 570; the Fair Housing Act; Cranston- Gonzales National Affordable housing Act (Public Law 101-625); Section 109 Title I of the Housing and Community Development Act of 1974 (42 U.S.C.§5309); Executive Order 11063, as amended by Executive Order 12259; Executive Order 11988; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.§4630, et. seq.); and other federal or state statute or regulation applicable to the use of CDBG or HOME Investment Partnerships Act (enacted as Title II of the National Affordable Housing Act of 1990) funds. Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 3 of 13 Page 9 of 19 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 (b) CITY agrees that CDBG funding for activities in, or in support of, CITY are prohibited if CITY does not affirmatively further fair housing within its own jurisdiction or impedes COUNTY actions to comply with its fair housing certification. (c) CITY and COUNTY shall meet the citizen participation requirements of 24 CFR 570.301 and provide Riverside County citizens with all of the following: i. The estimate of the amount of CDBG funds proposed to be used for activities that will benefit persons of low and moderate-income; ii. A plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities; iii. A plan that provides for and encourages citizen participation, with particular emphasis on participation by persons of low and moderate-incomes, residents of slum and blighted areas, and of areas in which funds are proposed to be used, and provides for participation of residents in low and moderate-income neighborhoods; iv. Reasonable and timely access to local meetings, information, and records relating to the grantee's proposed use of funds, as required by the regulations of the Secretary, and relating to the actual use of funds under the ACT; V. Provide for public meetings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities and review of program performance. Meeting shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the disabled. (d) CITY shall develop a community development plan, for the period of this Agreement, which identifies community development and housing needs and specifies both short and long-term community development objectives. (e) CITY certifies, to the best of its knowledge and belief, that: i. No Federal appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person influencing or attempting to influence an officer or Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 4 of 13 Page 10 of 19 employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement. ii. If any funds other than Federally-appropriated funds have been 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. iii. The CITY shall require that the language provided in Section 4(e)(i) and (ii) of this Agreement be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. (f) In accordance with Section 519 of Public Law 101-144, (the 1990 HUD Appropriations Act), the CITY certifies that it has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations, and that it has adopted and is enforcing applicable State and local laws against physically barring entrance to, or exit from, a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction. 5. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES. The COUNTY's Board of Supervisors have adopted policies and procedures to ensure efficient and effective administration of the CDBG program. COUNTY will provide these Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 5 of 13 Page 11 of 19 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 policies and procedures to CITY within a reasonable time after this Agreement's commencement I date. COUNTY and City agree to comply with these said policies and program objectives. 6. OTHER AGREEMENTS. Pursuant to Federal regulations at 24 CFR 570.501(b), CITY is subject to the I same requirements applicable to sub-recipients, including the requirement of a written agreement I set forth in Federal regulations at 24 CFR 570.503. For each fiscal year during the term of this Agreement, COUNTY and CITY shall enter into an additional agreement, commonly known as a Metropolitan City Supplemental Agreement, that will have a term coinciding with a CDBG Program Year and enumerate the project(s) CITY will implement with its entitlement funds. Said Supplemental Agreement will set forth the time schedule for completion of said project(s) and any funding sources, in addition to entitlement funds, that will be used in completing the 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 by COUNTY. If COUNY determines that substantial progress toward drawdown of funds is not made during the term of the Supplemental Agreement, the entitlement funds associated with the project(s) may be reprogrammed by COUNTY, to other activities as determined by COUNTY, after COUNTY provides appropriate written notice to 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), will not excuse CITY from complying with terms of this Agreement. 7. DETERMINATION OF PROJECTS TO BE FUNDED AND DISTRIBUTION OF ENTITLEMENT FUNDS. CITY agrees to submit to COUNTY, no later than the date specified by COUNTY prior to each program year, the activities that the CITY desires to implement with its entitlement funds, said designation to comply with statutory and regulatory provisions governing citizen's participation. Said designation is to be reviewed by the COUNTY's Economic Development Agency to determine that the projects are eligible under federal regulations for funding and inclusion in the One Year Action Plan of the County's Five-Year Consolidated Plan and Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 6 of 13 Page 12 of 19 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 consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds. Consistent with Paragraphs 3, 4, 5, 6, and 7 of this Agreement, COUNTY's Board of Supervisors will make the final determination of the distribution and disposition of all CDBG funds received by COUNTY pursuant to the Act. 8. COMMUNITY DEVELOPMENT BLOCK GRANT MANUAL. CITY warrants that those officers, employees, and agents, retained by it and responsible for implementing projects funded with CDBG have received, reviewed, and will follow the Community Development Block Grant Manual that has been prepared and amended by COUNTY, and by this reference, said Manual is incorporated herein and made a part hereof. 9. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY will comply with the National Environmental Policy Act of 1969 (42 U.S.C. §§4321, et seq.), the California Environmental Quality Act (Cal. Pub. Resources Code §§21000, et seq.), the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§4630, et seq.), and the California Government Code Sections 7260 et seq., as those Acts may be amended from time-to-time and any Federal or state regulations issued to implement the aforementioned laws. In addition, the following is to occur: (a) Title to the real property shall vest in CITY; (b) The real property title will be held by or the constructed facility will be maintained by the CITY for the approved use until five years after the date that the project is reported as "Completed" within the annual Consolidated Annual Performance and Evaluation Report. (c) While held by CITY, the real property or the constructed facility is to be used exclusively for the purpose for which acquisition or construction was originally approved by COUNTY; Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 7 of 13 Page 13 of 19 (d) CITY shall provide timely notice to COUNTY of any action which would 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 result in a modification or change in the use of the real property purchased or improved, in whole or in part, with CDBG or HOME funds from that planned at the time of acquisition or improvement, including disposition. (e) CITY shall provide timely notice to citizens and opportunity to comment on any proposed modification or change; (f) Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is or is not consistent with federal regulations governing CDBG funds; (g) Should CITY desire during the five (5) year period to use the real property or the constructed facility for a purpose not consistent with applicable federal regulations governing CDBG funds or to sell the real property or facility, then: (i) If CITY desires to retain title, it will have to reimburse either COUNTY or the Federal government an amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised to when the property was acquired or the facility was constructed; (ii) If CITY sells the property or facility, or is required to sell the property or facility, CITY is to reimburse the COUNTY an amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds comprised of the monies paid to initially acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds. 10. DISPOSITION OF INCOME GENERATED BY THE EXPENDITURE OF CDBG FUNDS. CITY shall inform COUNTY of any income generated by the expenditure of CDBG funds received by CITY from COUNTY. CITY may retain program income so generated and may only be used for eligible activities, as determined by the COUNTY, in accordance with all CDBG requirements, including all requirements for citizen participation. Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 8 of 13 Page 14 of 19 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 The COUNTY is required by HUD to monitor and report the receipt and use of all program income. CITY is required to track, monitor, and report any and all program income as requested by COUNTY. 11. TERMINATION. Except as provided for in Paragraph 2, CITY and COUNTY cannot terminate or withdraw from this Agreement while it remains in effect. 12. FORMER AGREEMENTS UTILIZING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS BETWEEN COUNTY AND CITY. All agreements between CITY and COUNTY regarding the use of CDBG funds I for fiscal years 1975-76 through 2011-2012, and any Supplemental Agreements there under, shall remain in full force and effect. If the language of this Agreement is in conflict or I inconsistent with the terms of any prior said agreements between CITY and COUNTY, the language of this Agreement will be controlling. 13. INDEMNIFICATION CITY agrees to indemnify, defend and hold harmless COUNTY and its I authorized officers, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liability arising from CITY acts, errors or omissions and for any costs or expenses incurred by COUNTY on account of any claim therefore, except where such indemnifications is prohibited by law. CITY shall promptly notify COUNTY in writing of the occurrence of any such claims, actions, losses, damages, and/or liability. CITY shall indemnify and hold harmless COUNTY against any liability, claims, losses, demands, and actions incurred by COUNTY as a result of the determination by HUD or its successor that activities undertaken by CITY under the program(s) fail to comply with any laws, regulations, or policies applicable thereto or that any funds billed by and disbursed to CITY under this Agreement were improperly expended. Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 9 of 13 Page 15 of 19 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 14. COMPLIANCE WITH LAWS AND REGULATIONS. By executing this Agreement, the Parties hereby certify that they will adhere to and comply with all federal, state and local laws, regulations and ordinances. 15. ENTIRE AGREEMENT. It is expressly agreed that this Agreement embodies the entire agreement of the Parties in relation to the subject matter hereof, and that no other agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the Parties at the time of execution. 16. SEVERABILITY. Each paragraph and provision of this Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provisions shall remain in full force and effect. 17. ASSIGNMENT. The Parties will not make any sale, assignment, conveyance or lease of any trust or power, or transfer in any other form with respect to this Agreement, without prior written approval of the other Party. 18. INTERPRETATION AND GOVERNING LAW. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Parry shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 19. WAIVER. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Parry, shall not constitute a waiver of such Party's right to insist and demand Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 10 of 13 Page 16 of 19 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 strict compliance by the other Party with the terms of this Agreement thereafter. 20. JURISDICTION AND VENUE. Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed in the consolidated Courts of Riverside County, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction. 21. AMENDMENTS No change, amendment, or modification to the Agreement shall be valid or binding upon CITY or COUNTY unless such change, amendment, or modification is in writing and duly executed. CITY and COUNTY agree to adopt any necessary amendments to this Agreement to incorporate changes required by HUD as set forth in the Urban County Qualification Notice. Amendments must be submitted to HUD as provided in the Urban County Qualification Notice and failure to do so will void the automatic renewal for such qualification period. 22. SPECIAL PROVISIONS FOR METROPOLITAIN CITY/URBAN COUNTY JOINT RECIPIENT: (a) The CITY is part of the Urban County Program for purposes of planning and implementation for the entire period of the Urban County Qualification for program years 2012-13, 2013-14, and 2014-15 under the CDBG program. (b) HUD will consider the CITY as a unit of general local government that is part of the COUNTY's Urban County program. (c) HUD shall determine the annual amount of CDBG allocation to which the CITY is entitled, and the COUNTY will be the grant recipient. (d) The CITY's allocation will be that portion of the total annual allocation as specified by written notice from HUD, less twelve percent (12%) to be retained by the COUNTY for administration of the Urban County CDBG program. (e) All other terms and conditions applicable to an Urban County Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Pagel 1 of 13 Page 17 of 19 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 participating city shall apply to the CITY including automatic renewal provisions found in Paragraph 2 of this Agreement unless prohibited by HUD. 23. AUTHORITY TO EXECUTE. The persons executing this Agreement or exhibits attached hereto on behalf of the Parties to this Agreement hereby warrant and represent that they have the authority to execute this Agreement and warrant and represent that they have the authority to bind the respective Parties to this Agreement to the performance of its obligations hereunder. 24. INCORPORATION OF RECITALS The Parties hereby affirm the facts set forth in the recitals above. Said recitals are incorporated herein and made an operative part of this Agreement. IN WITNESS WHEREOF, the COUNTY and CITY have executed this Agreement on the date shown below. ATTEST: Kecia Ihem-Harper Clerk of the Board By: ATTEST: By: City Clerk Bob Buster, Chairman Board of Supervisors Rob Field, Assistant County Executive Officer/EDA COUNTY OF RIVERSIDE By: for Date: CITY OF LAKE ELSINORE By: Mayor Date: Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 12 of 13 Page 18 of 19 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 COUNTY COUNSEL CERTIFICATION The Office of County Counsel hereby certifies that the terms and provisions of this Agreement are fully-authorized under state and local law and that the Agreement provides full legal authority for the COUNTY to undertake, or assist in undertaking, essential community development and housing assistance activities specifically urban renewal and publicly assisted housing. Pamela J. Walls County Counsel By: Deputy, Anita Willis s:\cdbg\12-15 urban county program\coop agreement 2012-2015.docx Joint Recipient Cooperation Agreement For CDBG Funds 2012-2015 Page 13 of 13 Page 19 of 19