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COOPERATION AGREEMENTS WITH CITIES AND RESOLUTION FOR METROPOLITAN CITY/URBAN COUNTY JOINT RECIPIENT REQUEST FOR PARTICIPATION IN THE CDBG PROGRAM, FY 2000-01 THROUGH 2002-03 June 29, 1999 Page 2 of 2 Board of Supervisors' approval of the Cooperation Agreements with participating cities and resolutions for joint recipient requests is required by HUD to requalify the County and its participating cities. The requalification period is fiscal years 2000-01 through 2002-03. CDBG regulations permit cities with a population less than 50,000 to participate under a County's CDBG program. By participating, the cities' demographics increase the County's CDBG grant. The funding received for these cities is then earmarked for those cities through a Cooperation Agreement with the County. To participate under the County's program, cities must enter into three-year Cooperation Agreements. All of the County's cities of this type have requested to participate. These cities include Adelanto, Barstow, Big Bear Lake, Colton, Grand Terrace, Highland, Loma Linda, Montclair, Needles, Twentynine Palms, Yucaipa and Town of Yucca Valley. Cities with populations in excess of 50,000 are recognized by HUD as Metropolitan Cities and may seek direct CDBG funding from HUD. Metropolitan Cities may also request to be included as a part of the County's CDBG program under a joint recipient application. When this occurs, the County's grant is also increased to include the amount authorized for the Metropolitan Cities. CDBG regulations require the County to serve as the sole agency responsible for the planning and implementation of the CDBG program. Each Metropolitan City must enter a Cooperation Agreement with the County for the three-year period of the County's qualification. The Cities of Chino Hills and Redlands have Metropolitan City status and have requested to be included with the County. Redlands has been a joint recipient applicant with the County for the past twelve years. The City of Chino Hills was recently classified by HUD as a Metropolitan City, and is participating with the County as a joint recipient for the first time. The Cooperation Agreements listed in the recommendation, have been executed by each city. These agreements establish the terms and provisions for cooperation with the County for purposes of meeting requalification requirements. The agreements stipulate the County's authority to carry out Community Development Block Grant activities and the County's responsibility for determining the final disposition and distribution of all CDBG funds and program income. Under the agreements each participating city is provided with a share of the County's annual CDBG allocation for eligible city activities. The Joint Recipient Request Resolutions are required by HUD to permit the Cities of Chino Hills and Redlands as Metropolitan cities, to participate with the County as joint recipients. The deadline for submission of all documentation to HUD regarding the County's Urban County status, including Cooperation Agreements, is July 16, 1999. REVIEW BY OTHERS: The agreements and resolution have been approved by the City Councils of the above listed Cooperating Cities, by Deputy County Counsel Michelle Blakemore on June 18, 1999, by Deputy County Counsel Michael Sachs on behalf of Risk Management on June 18, 1999 and by the Department of Economic and Community Development's Contract Compliance designee David Larsen on June 21, 1999. FINANCIAL IMPACT: Approval and execution of these agreements is required for the County to receive an estimated twenty-five million dollars of Community Development Block Grant funds over the next three years. This action will not affect the County General Fund. SUPERVISORIAL DISTRICT(S): All. PRESENTER: Thomas R. Laurin, Director, 388-0808