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1993-0721_ORANGE , COUNTY_Cooperation Agreement1' 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 COOPERATION AGREEMENT THIS AGREEMENT is entered into this al Vt day of Jw(y 1993 . BY AND BETWEEN ME CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as CITY, COUNTY OF ORANGE, a political subdivision of the State of California and recognized Urban County under the Federal Housing and Community Development Act of 1974 (Public Law 93-383), as amended, hereinafter referred to as COUNTY. WHEREAS, Title I of the Housing and Community Development Act of 1974 (Public Law 93-383), as amended, hereinafter referred to as ACT, makes available to the COUNTY as an Urban County and cities under 50,000 population, grants through the Community Development Block Grant Program (hereinafter referred to as "CDBG") including any subsequent HUD Program which may become available to the County (e.g. HOME Investment Partnership Program), to be used for eligible Housing and Community Development activities, and WHEREAS, the ACT requires such cities and the COUNTY to enter into cooperation agreements in order for the cities to be included as part of the Urban County CDBG Program, and WHEREAS the COUNTY and CITY desire to cooperate to undertake or assist in undertaking, community development and lower income housing assistance activities, specifically urban renewal and publicly assisted housing, NOW, THEREFORE, the parties agree as follows: 1. This Agreement shall constitute a cooperation agreement between the parties within the meaning of Section 102(a) (b) of the -1- 1 2 3 4 5 6 7 8, 91 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24I 25111 26 27 28 E ACT. The parties agree to cooperate in the undertaking, or assisting in undertaking, community development and lower income housing assistance activities, specifically urban renewal and publicly assisted housing. 2. COUNTY shall have the authority to carry out activities which will be funded from annual Community Development Block Grants for Fiscal Years 1994, 1995 and 1996 appropriations and from any program income generated from the expenditure of such funds. 3. COUNTY shall have final responsibility for selecting activities and annually filing the grant application (i.e., Final Statement of Community Development objectives and Projected Use of Funds) with the Federal Department of Housing and Urban Development, hereinafter referred to as "HUD." In the preparation of said application, COUNTY shall give due consideration to CITY's analysis of community development needs and proposed activities. 4. COUNTY certifies that it is following an adopted Comprehensive Housing Affordability Strategy (CHAS) as promulgated in 24 CFR Parts 91 and 570.306. 5. Since HUD shall not accept an agreement including a provision for veto or other restriction which would allow any party to obstruct implementation of the Comprehensive Housing Affordability Strategy (CHAS), both COUNTY and CITY shall attempt to fulfill housing goals established by the HUD approved CHAS for the period of this Agreement as referenced in Section 9 and for additional time as may be required for the expenditure of funds granted to the COUNTY. 6. Both COUNTY and CITY have adopted and do enforce a policy prohibiting excessive force within their jurisdictions, and to enforce state and local laws against physically barring entrance to or exit -2- 1 2 3 4 5 6 7 8 9 10 11I 12 13 14 15 16 17 18 19 201 21 22' 23 24 251 261 27' 281 0 0 from facilities subject to non-violent civil rights demonstrations. 7. Both COUNTY and CITY agree to take all actions necessary to assure compliance with the Urban County's certification required by Section 104(b) of Title I of the Housing Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Section 109 of Title I of the Housing and Community Development Act of 1974, as amended, and other applicable civil rights laws. It is recognized among the parties that noncompliance thereto by the CITY may also constitute noncompliance by the Urban County CDBG Program which may provide cause for funding sanctions or other remedial actions by HUD. 8. In the event COUNTY's Urban County application is approved by HUD, COUNTY shall contract with the CITY to utilize any such grant funds received from HUD which are attributable to activities administered by CITY, unless another form of allocation is required by HUD. 9. This Agreement shall be for the three year program period covering the 20th, 21th and 22th years (Fiscal Years 1994, 1995 and 1996, respectively) Housing and Community Development Block Grant applications including any subsequent supplemental sources (Section 22). In no event shall this Agreement be terminated by either party before the expiration of this three year period beginning July 1, 1994 and ending June 30, 1997, except through special federal enabling legislation for termination or withdrawal from the Urban County and as permitted by HUD, 10. As permitted by HUD Notice CPD93-13, this agreement will be automatically extended for an additional three (3) year period unless written notification of intent to terminate is received from the M10 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 participating CITY sixty days (60) prior to the technical expiration of this agreement. a. CITY and COUNTY agree to adopt amendment(s) to this agreement as may be required by HUD to meet any new Urban County Qualification requirement(s) for years subsequent to 1996. Refusal by CITY or COUNTY to this term and/or amendment(s) will void the automatic renewal provision of this agreement. 11. The eligible activities to be undertaken during the term of this Agreement will be chosen by CITY from those authorized by HUD Rules and Regulations governing the CDBG Program and any regulations which may be applicable to future Supplemental Federal Programs (Section 22). 12. Both COUNTY and CITY agree to comply with the requirement(s) of the Urban County Community Development Block Grant Program, including laws, and policies applicable to said Program(s). 13. CITY acknowledges by the execution of the CDBG cooperation agreement that as the included unit of general local government it: a. May not apply for grants under the small cities or state CDBG Programs from appropriations for fiscal years during the period in which it is participating in the Urban County's CDBG Program; and b. May not participate in a HOME consortium except through the urban county, regardless of whether the urban county currently receives a HOME formula allocation. C. May not terminate or withdraw from the agreement until the CDBG (and HOME, where applicable) funds and income received with respect to the three year qualification period (and any successive qualification periods under agreements that provide for automatic renewals) are expended and the funded activities completed. Q10 1 14. a. CITY must inform the COUNTY (through periodic reports 2 requested by staff of COUNTY) of any income generated'by the 3 expenditure of Program funds received by the CITY; and that per 4 applicable federal requirements, such program income must be paid to 5 the COUNTY; and/or, the CITY may retain such program income only if 6 that program income is used exclusively for eligible activities, as 7 determined and agreed upon by the COUNTY and CITY, and in accordance 8 with all CDBG Program requirements as may then apply; and, 9i b. CITY shall keep and maintain appropriate records on the 10 use of any such program income as may be required by staff of the ill COUNTY since the COUNTY has the responsibility of monitoring and 12 reporting program income to HUD. 13 C. In the event of close-out or change in status of the 141 participating CITY, any program income at that time or received 15 subsequent to the close-out or change in status shall be paid by CITY 16 to the COUNTY within ninety days (90 days) thereafter. 17 15. a. Any real property acquired or improved in whole or in part t8 by the CITY using CDBG funds that may be subject to any proposed 19 modification or change in use from that planned at the time of 20 acquisition or improvement, including disposition, must be reported by 21 CITY to the COUNTY and receive COUNTY concurrence thereto in advance of 22 implementing the modification or change in use. 23 b. Should the disposition, sale or transfer of such real 24 property acquired or improved in whole or in part using CDBG Program 25 funds result in a use which does not qualify under CDBG Program 26 regulations, the COUNTY shall be reimbursed by CITY in an amount equal 27 to the current fair market value (less any portion thereof 28 attributable to expenditures of non-CDBG funds). -5- 1 C. Any program income generated from the disposition, t transfer or sale of such property prior to or subsequent to the close - 3 out, change of status or termination of the cooperation agreement 4 between the COUNTY and CITY may be either used by CITY for other 5 specific eligible activities in the CITY or paid to the COUNTY for other eligible Urban County activities, as determined in advance of the 6 7 expenditure at the discretion of the COUNTY. 8 16. a. CITY shall indemnify, hold harmless and defend COUNTY, its 9 officers, agents and employees against all liability, claims, losses, 10 demands and actions for injury to or death of persons or damage to 11 property arising out of or alleged to arise out of or in consequence of I this Agreement, provided such liability, claims, demands, losses or 121 1 actions are claimed to be due to the acts or omissions of CITY, its 131 14 officers, agents or employees in the performance of this Agreement, including any activities conducted by CITY under its application. 15 b. In addition, CITY shall indemnify and hold harmless 16 17 COUNTY against any liability, claims, losses, demands, and actions incurred by COUNTY as a result of a determination by HUD that 18 activities under taken by CITY under CITY's application failed to 19 comply with any laws, regulations, or policies applicable thereto or 20 21 that any funds forwarded to CITY under this Agreement were improperly 22 expended. 23 C. The provisions of 1, 3, 4, 5, 6 and 7 of Section 2778 of the California Civil Code, as said section exists on the effective date 24 25 of this Agreement, shall be applicable to the above indemnifi-cation provisions. Transmittal to CITY of any pleadings served upon COUNTY 26� shall be deemed to be a request to defend. 2711 28j 17. a. COUNTY shall indemnify, hold harmless and defend CITY, its -6- 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' 26I 27 281 officers, agents and employees against all liability, claims, losses, demands and actions for injury to or death of persons or damage to property arising out of or alleged to arise out of or in consequence of this Agreement, provided such liability, claims, demands, losses or actions are claimed to be due to the acts or omissions of COUNTY, its officers, agents or employees in the performance of this Agreement, including any activities conducted by COUNTY under its application. b. In addition, COUNTY shall indemnify and hold harmless CITY against any liability,.claims, losses, demands, and actions incurred by CITY as a result of a determination by HUD that activities undertaken by COUNTY under COUNTY's application failed to comply with any laws, regulations, or policies applicable thereto or that any funds forwarded to COUNTY under this Agreement were improperly expended. C. The provisions of paragraphs 1, 3, 4, 5, 6 and 7 of Section 2778 of the California Civil Code, as said sections exists on the effective date of this Agreement, shall be applicable to the above indemnification provisions. Transmittal to COUNTY of any pleadings served upon CITY shall be deemed to be a request to defend. 18. COUNTY shall have the right to periodically audit CITY's records to determine compliance with this Agreement. 19. CITY shall forward to COUNTY a copy of each annual audit of the CITY during this Agreement period conducted by an independent public auditor as soon as the audit report becomes available. COUNTY shall have the right to ensure that necessary corrective actions are made by the CITY for any audit findings pertinent to CITY handling of CDBG Program funding per federal requirements. 20. The CITY and COUNTY agree that Community Development Block Grant Program funding for any activities in or in support of any -7- 1 cooperating CITY, that does not affirmatively further fair housing 2 within its own jurisdiction, or that impedes the COUNTY'S action to 3 comply with its fair housing certification is prohibited. 4 21. Pursuant to 24 CFR 570.501 (b), the CITY is subject to all 5 requirements applicable to subrecipients, including the requirement of 6 a written agreement set forth in 24 CFR 570-503. 7 22. This cooperation Agreement is applicable to any supplemental 8 programs which HUD makes available through the CDBG program, including 9 the HOME Investment Partnership Program (HOME) and applicable 10 provisions and regulations thereof. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26, 27 28 -8- 1 2 3 4 5 6 7 8 91 10 11 12 13 14 15 16 17 18 19 20 21 221 231 24 25 261 27 28, IN WITNESS THEREOF, CITY has caused this Agreement to be executed by its Mayor/City Manager and attested by its Clerk; COUNTY has caused this Contract to be executed by the Chairman of the Board of Supervisors and certified by its Clerk, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. Dated: July 20, 1993 ATTEST: CicVy gilerk Dated: f%�/ �9 3 APPROVED AS TO FORM: TERRY ANDRUS, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA BY: it v Dated: l i- RMD:bjg5AW8-6.11 (05/26/93) CITY OF SAN JUAN CAPISTRANO By., �, / —,.Mayor / Gity- 44axager Gil Jones COUNTY OF ORANGE, a political subdivision of the State of California By: Dh ai rector EMA- and Redevelopment mm