2005 AGN JUN 07 I10 - Laserfiche WebLink

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Item #10 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF JUNE 7, 2005 Honorable Mayor and City Council FROM: David R. Zamora Community Development Director SUBJECT: Consideration to Approve a Three Year Cooperation Agreement with the County of San Bernardino for the Community Development Block Grant (CDBG) Program for Fiscal Years 2006-2007, 2007-2008, and 2008-2009; and Approve a Three Year Agreement as a HOME Consortium Member for Federal Fiscal Years Starting October 1, 2005 and Ending September 30, 2008. DATE: May 19, 2005 BACKGROUND: Every three years, the City of Colton has been required to renew a Three Year Cooperation Agreement with the San Bernardino County Department of Economic and Community Development (ECD) to continue its participation in the Community Development Block Grant (CDBG) Program as a "Cooperating City" and receive annual funding under the grant. The Cooperation Agreement covered the City's participation with the County in the CDBG, HOME, and ESG Federal Program. Staff has recently been informed by the U.S. Department of Housing and Urban Development (HUD) that the City's population exceeds 50,000 and qualifies as a "Metropolitan City" and may contract directly with HUD to receive CDBG funds. Therefore, the City of Colton has an option to either continue participating with San Bernardino County in the Urban County CDBG Program as a "joint applicant" for the subsequent three years, which would require the execution of the Three Year Cooperation Agreement for fiscal years 2006-2007, 2007-2008, and 2008-2009; or to contracting directly with HUD as a Metropolitan City. HUD has also requested that a separate Three Year Cooperation Agreement be executed by the City in order to participate as a HOME Consortium member with the County for Federal Fiscal years beginning October 1, 2005 and ending on September 30, 2008. DISC USSION/ANALYSIS: The Three Year Cooperation Agreement is required by the U.S. Department of Housing and Urban Development (HUD) in order for the City of Colton to continue participating with the County CDBG Program, and to receive CDBG funds for the proceeding three fiscal years. The Agreement is similar to the existing Cooperation Agreement that covered fiscal years 2003-2004, 2004-2005, and 2005-2006; the only amendments are the addition of any requirements specified by the most recent HUD regulations. Staff met with County ECD officials to discuss the positives and negatives of choosing to leave the Urban County CDBG Program and contracting directly with HUD as a Metropolitan City. Some of the discussion concentrated on the stringent Federal compliance requirements and staffing levels