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1994-0324_ORANGE , COUNTY OF_Memorandum of Contract No. C414540 C0410ct No. C41454 1 5AW9-12 PW COUNTY OF ORANGE 5AW25-2 PM ENVIRONMENTAL MANAGEMENT AGENCY 2 TYPE I - PF&I HOUSING AND REDEVELOPMENT CONTRACT 3 4 TITLE OF PROJECT: Rehabilitation of Private Properties - Mobile Homes (C10.01) 5 MEMORANDUM OF CONTRACT' entered into this 2–L/-�h day of N�—, 199/ 6 BY AND BETWEEN 7 CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as CITY, 8 9 AND 10 COUNTY OF ORANGE, a political subdivision of the State of California and recognized Urban County 11 under the Federal Housing and Community Development Act of 1974 (Public Taw 93-383), as amended, hereinafter 12 referred to as COUNTY. 13 14 WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement dated June 8, 15 1993, in which both parties agreed to cooperate in the undertaking, or assist in the undertaking, of 16 community development and housing assistance activities, and 17 WHEREAS, the CITY has submitted to the COUNTY an application for funding of a project 18 hereinafter described, and 19 WHEREAS, the COUNTY adopted the FINAL STATEMENT OF OBJECTIVES AND 20 PROJECTED USE OF FUNDS on May 18, 1993 (Resolution No. 93-550) which sets forth the project 21 described herein, and 22 WHEREAS, the U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT has 23 accepted and certified the aforementioned FINAL STATEMENT, and 24 WHEREAS, the COUNTY has entered into a separate agreement dated August 17, 1993 with the 25 U.S. Department of Housing and Urban Development (hereinafter referred to as HUD) to fund said 26 project under the Housing and Community Development Act of 1974 (Public law 93-383), 27 as amended. 28 -1- n 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W3'] 9 Cooct No. C41454 NOW, THEREFORE, IT IS AGREED by and between the parties that the following provisions as well as all other applicable Federal regulations including 24 CFR 570.600-612 and appropriate State and County laws and regulations including the attached SPECIAL PROVISIONS, identified as EXHIBIT "A", are part of this Contract. 1. For the PURPOSES OF THIS CONTRACT the following definitions shall apply: a. Project Manager: The party responsible for, but whose responsibility is not limited to the following: Contracting, monitoring and implementing the project through completion. b. Director. The Director of the Orange County Environmental Management Agency (hereinafter referred to as EMA) or his designee. Reimbursable Basis: The CITY will provide the funds for the project and submit proof of payment to the COUNTY, whereby upon approval, the COUNTY will forward Community Development Block Grant (hereinafter referred to as CDBG) funds to repay the CITY. d. Construction Bid Package: A package of bidding documents which includes proposal, bidding instructions, contract documents, detailed estimated costs and plans and specifications for a construction project, all prepared in accordance with applicable Federal regulations. 2. It is understood that the CITY will act as PROJECT MANAGER for the project described as: The City of San Juan Capistrano will utilize CDBG funds for a mobile home rehabilitation program to serve the low- and moderate -income residents of the 7 mobile home parks within the City. Funds are to be used for project and support costs in correcting health and safety code items, with maximum possible assistance of $15,000 per household (see attached map, EXHIBIT 'B", which is part of this Contract). A. The Contract period for this project shall begin o il--4l , 199yfor Fiscal Year 1993- 94 and eligible costs may be incurred against funds provided through this Contract effective *4 199y It is agreed by all parties that the project shall be completed and all funds provided through this Contract shall be expended on eligible project activities prior to the 365th day following, 199y Invoices for all approved project costs funded by the Block Grant under this Contract shall be submitted within 90 days after the Contract expiration date. The date for project completion and expenditure of all funds may be extended at the discretion of the DIRECTOR, one year from the Contract expiration date, through written notification to the CITY. In the event of such an extension, the deadline for submittal of -2- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • Coca No. C41454 invoices shall be 90 days after the new completion date. After Contract expiration, all unexpended funds remaining from this Contract will be allocated by the COUNTY to another eligible project(s) within the Urban County CDBG Program. 4. CITY agrees: a. Any proposed amendment to this Contract shall be submitted to and approved by the COUNTY, prior to commencement by CITY of any activity covered by said amendment. To submit any and all third -party contracts proposed for funding through this Contract to DIRECTOR for review and approval prior to award of such contracts by CITY. C. To comply with CDBG Program Regulations, as may be periodically revised by HUD, Office of Management and Budget, or other Federal agencies, and including laws and policies applicable to the CDBG Program. d. That the project shall be implemented and appropriately maintained for Community Development purposes as defined by applicable HUD provisions to ensure maximum feasible benefit and utilization of the project by low- and moderate -income persons. To maintain accounting records, official files, and other evidence pertaining to costs incurred pursuant to HUD regulations CFR 570.503 (b)(2). These records shall include, but not limited to, annual audit report, project performance report, project expenditures and criteria set forth in CFR 570.506 and 570.507. All of these shall be accessible for the purposes of monitoring, audit, reporting or review by duly authorized representatives of COUNTY or HUD. These records shall be kept available at CITY's office during the project's contract period and thereafter for three (3) years from the date of final CITY receipt of HUD CDBG funds through this Contract. That DIRECTOR shall periodically evaluate the CITY's progress in complying with the terms of this Contract. CITY shall cooperate fully during such monitoring. DIRECTOR shall report the findings of each monitoring to the CITY and Orange County Board of Supervisors. If it is determined by the Board of Supervisors that CITY performance or progress on performance is unsatisfactory, the Board of Supervisors may withhold further funding on the project pending resolution of the unsatisfactory condition(s), or may terminate this Contract as prescribed in 24 CFR 85.43 and 85.44. In addition, the Board of Supervisors may require the CITY to reimburse COUNTY any funds that it determines to be -3- 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 0 Coftct No. C41454 improperly expended or not expended on the project in a timely manner based on applicable CDBG Program Regulations. g. That if it is determined by HUD that funds were not expended in compliance with the applicable Federal laws and regulations, CITY will refund to COUNTY within ninety 90 days thereafter such sums as were determined by HUD to have been improperly expended h. When the project is completed, all unexpended funds remaining will be returned to the COUNTY as soon as practicable, but in any event, within 180 days thereafter. DIRECTOR may then reallocate returned funds to another Urban County project(s) previously approved by the Board of Supervisors. Returned funds as such, may be allocated by the DIRECTOR up to the lesser amount of ten percent (10%) of total Contract funds provided herein Section 5.a. or Ten Thousand Dollars ($10,000.00). Should the COUNTY receive returned funds from other Urban County projects, funding for this Contract, upon proof of anticipated cost overruns, may be increased at the discretion and upon written authorization of the DIRECTOR up to the lesser amount of ten percent (10%) of total Contract funds provided herein Section 5.a. or Ten Thousand Dollars ($10,000.00). To assume responsibility for compliance with the California Environmental Quality Act (CEQA) and to provide COUNTY with necessary information to comply with the National Environmental Policy Act (NEPA) prior to commencing project implementation. This may include, when applicable, CITY preparation of NEPA documentation in coordination with EMA staff. k. To be responsible for design and inspection, including funding the costs related to those activities, unless funding for design and inspection activities is provided for in Section 5.a. of this Contract. If this contract is a construction project, submit the Construction Bid Package for this project to DIRECTOR for review prior to advertising for bids on the construction contract or prior to award of such a contract if an alternative method of award is used. CITY shall not advertise for bids until DIRECTOR has approved Construction Bid Package. CITY shall construct project in accordance with the Construction Bid Package which DIRECTOR approved unless prior written approval is received from DIRECTOR for modification therefrom C:9 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 5. Project Funding: Ctoact No. C41454 Project will be financed under this Contract as follows: Total CDBG Funds $ 70,000 (Seventy Thousand Dollars and no/100) b. COUNTY shall not be responsible for any costs which exceed the approved CDBG funding amount as referenced in Section 5.a. unless otherwise provided in advance as referenced in Section 41 C. Payment by the COUNTY to the CITY shall be on a reimbursable basis unless CITY has been authorized and issued a cash advance at the discretion of the DIRECTOR under this Contract. d. The CITY is permitted one (1) cash advance under this Contract and may be made by the DIRECTOR to the CITY if the following conditions are met: (1) The CITY has demonstrated to DIRECTOR through certification in a form prescribed by DIRECTOR and subsequently through performance, its willingness and capacity to establish CITY financial procedures that will minimize the time elapsing between the receipt of funds and proper disbursement of such funds. (2) The CITY certifies to DIRECTOR, that the CITY's financial management system meets the standards for fund control and accountability as directed in 24 CFR 570.502(a) and prescribed in Office of Management and Budget Circular No. A-102, as periodically amended (3) The CITY complies with EMA financial cash advance procedures as defined by HUD in 24 CFR 85.21 Payment regulations and the United States Treasury regulations described in 31 CFR Part 205. These procedures require that upon written receipt of funds from the COUNTY, the CITY shall disburse payment(s) to vendor(s) within five (5) working days and submit evidence of such disbursement(s) (i.e., warrant copies, etc.) to the DIRECTOR. e. If the CITY is subsequently found, by DIRECTOR, to be in noncompliance with Section 5.d.(1) through Section 5.d.(3), CITY shall in the future be paid on a reimbursable basis. f. Reimbursable basis payments, as referred to in Section 5.c. and/or cash advance described in Section 5.d. shall be made in accordance with EMA financial procedures. In the event of conflict between EMA financial procedures and any applicable statutes, rules or regulations of HUD, including Office of Management and Budget Circular No. A-102, the latter shall prevail. -5- 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 Co&t No. C41454 6. The CITY shall report annually all program income as defined at 24 CFR 570.500 (a) generated by activities carried out with CDBG funds made available under the Contract. The use of program income by the CITY shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the CITY may use such income during the Contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. The CITY may retain such program income only if that program income is used exclusively for eligible activities. All unused program income shall be returned to the COUNTY at the end of the Contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the COUNTY. a. Program income generated from cash advance and/or the mere holding of CDBG funds must be paid to the COUNTY per 24 CFR 570.504 (c) for subsequent return to HUD. Any program income generated from the sale, transfer or change in the use of assets (e.g. real property) acquired or improved in whole or in part by CDBG funds must be returned to the COUNTY in proportion to the CDBG contribution thereof. c. The CITY may retain all program income only if that program income is used exclusively for eligible activities, subject to the DIRECfOR's review, and in accordance with all CDBG requirements as may then apply. d. CITY shall keep and maintain appropriate records on the use of any such program income as may be required by EMA staff since the COUNTY has the responsibility of monitoring and reporting program income to HUD. e. In the event of CITY close-out or change in status of the participating CITY in the Urban County CDBG Program, any program income at that time or received subsequent to the close-out or change in status shall be paid by CITY to the COUNTY within 90 days thereafter. Any proposed modification or change in use of real property acquired or improved in whole or in part by CDBG funds from that planned at the time of the acquisition or improvement, including disposition, must be reported by CITY to the COUNTY and receive COUNTY concurrence thereto in advance of implementing the modification or change in use. 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 Coact No. C41454 8. The CITY shall transfer to COUNTY any CDBG funds on hand at the time of Contract expiration and any accounts receivable attributable to the use of CDBG funds. The CITY shall ensure that any real property under the CITY's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 is either: a. Used to meet one of the national objectives in 24 CFR 570.208 until five years after expiration of the contract; or, Is disposed of in a manner which results in the COUNTY being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such reimbursement is not required after the period of time specified in accordance 8.a. above. 9. CITY shall obtain an annual audit performed in accordance with OMB Circular A-128 and forward a copy to DIRECTOR within 180 days after the end of each accounting year. DIRECTOR shall have the right to ensure that necessary corrective actions are made by the CITY for any audit findings pertinent to CITY handling of funding attributable to the CDBG Program per Federal requirements. 10. Neither COUNTY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of CITY or its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, firms, or corporations furnishing or supplying work service, materials, or supplies in connection with CITY's performance of this Contract and from any and all claims and losses accruing or resulting to any persons, firm or corporation for personal injuries or property damage resulting from or as a consequence of, CITY's performance of this Contract under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, CITY shall fully indemnify, defend and hold COUNTY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of any action or omission of CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Contract. CITY shall act in an independent capacity and not as officers, employees or agents of COUNTY. -7- 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 C*act No. C41454 11. Neither CITY nor any officer nor employee thereof shall be responsible for any damage or liability occurring by reason of any action or omission of COUNTY, its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, funis, or corporations furnishing or supplying work, service, materials, or supplies in connection with COUNTY's performance of this Contract and from any and all claims and losses accruing or resulting to any persons, firm or corporation for personal injuries or property damage resulting from or as a consequence of COUNTY's performance of this Contract under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, COUNTY shall fully indemnify, defend and hold CITY harmless from any liability imposed for injury (as defined by California Government Code Section 810.8) occurring by reason of any action or omission of COUNTY under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Contract. COUNTY shall act in an independent capacity and not as officers, employees or agents of CITY. 12. Where contract funds are withheld, and at the request and expense of CITY, COUNTY will accept securities equivalent to the amount withheld. Such substituted security, meeting the requirements of Government Code Section 4590, shall be deposited with COUNTY, or with a State or Federally chartered bank as escrow agent. If security is deposited with an escrow agent, it shall be covered by an escrow agreement. 13. In the event of CITY's failure to comply with the provisions of this Contract and pursuant to 24 CFR 85.43 and 85.44, COUNTY may withhold or require CITY reimbursement of funds, and/or terminate this Contract, and/or allocate funds previously assigned to this Contract to another eligible project(s) within the Urban County. 11 21 7 8 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 Aact No. C41454 IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor and attested by its Clerk; COUNTY has caused this Contract to be executed by the Director of EMA/Housing and Redevelopment, all having been duly authorized by the City Council of CITY and the Orange County Board of Supervisors. Dated: 1/ ATTEST: Dated: 3L� k q c APPROVED AS TO FORM: TERRY ANDRUS, COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA B Y Dated: / - /2 — 9z MC:5AW25-2 CITY OF SAN JUAN CAPISTRANO By: Mayo COUNTY OF ORANGE, a political subdivision of the State of California By; Pusavat, Director, ing and Redevelopment 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I • Exhi14 "A" to COUNTYXITY Contractl SPECIAL PROVISIONS A. Section 3 - Compliance with the Provision of Training Employment and Business opportunity The CITY shall cause or require to be inserted in full in all contracts and subcontracts for work financed in whole or part with federal financial assistance provided under this Contract, the Section 3 clause set forth in 24 CFR 135.20(b). The CITY will provide such copies of 24 CFR Part 135, as may be necessary for the information of parties to contracts required to contain the said Section 3 clause. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be made available to lower income residents within the unit of local government or metropolitan area (or non -metropolitan county), in which the project is located. In addition, to the greatest extent feasible, contracts for work in connection with the project shall be awarded to business concerns which are located in, or in substantial part owned by, persons residing in the same unit of local government lor metropolitan area (or non -metropolitan county), in which the project is located. The parties to this contract will comply with the provisions of said Section 3, and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The CONTRACTOR shall take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR 135. The CONTRACTOR will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135. The parties to this contract certify and I agree that they are under no contractual or other disability which would prevent them from complying with these requirements. (Source: Title 24 CFR 135 revised ,April 1, 1984.) B. Equal Employment Opportunity In carrying out the program, the CITY shall not discriminate against any -1- i Exh A "A" to COUNTY/CITY Contract. I 1 employee or applicant for employment because of race, color, religion, sex or national 2 origin. The CITY shall take affirmative action to ensure that applicants for employment 31 are employed and that employees are treated during employment, without regard to their 4i race, color, religion, sex or national origin. Such action shall include, but not be 511 limited to, the following: employment, upgrading, demotion or transfer; recruitment i 6 advertising; layoff or termination; rates of pay or other form, compensation; and 7 selection for training, including apprenticeship. The CITY shall post in conspicuous 8,1 places, available to employees and applicants for employment, notices to be provided by 9 the COUNTY setting forth the provisions of this nondiscrimination clause. The CITY 10 shall, in all solicitations or advertisements for employees placed by or on behalf of 11 the CITY, state that all qualified applicants will receive consideration for employment '1 12 without regard to race, color, religion, sex or national origin. The CITY shall 13 incorporate the foregoing requirements of this paragraph in all of its contracts for 14 program work and will require all of its contractors for such work to incorporate such 15 requirements in all subcontracts for program work. Such contracts shall be subject to 16 HUD Equal Employment Opportunity regulation 24 CPR Part 130 as applicable to HUD 17 assisted construction contracts. 18 The CITY shall cause or require to be inserted in full in any non-exempt 19 contract and subcontract for construction work or modification thereof, as defined in 20 said regulations which is paid for in whole or in part with assistance under the 21 Contract, the following equal opportunity clause: 22 "During the performance of this contract, the contractor agrees as follows: 23 1. The contractor will not discriminate against any employee or applicant 24 fore employment yment because of race, color, religion, sex or national origin. The contractor 25 will take affirmative action to ensure that applicants are employed and that employees 26 are treated during employment, without regard to their race, color, religion, sex, or 271 national origin. Such action shall include, but not be limited to, the following: 28 Employment, upgrading, demotion or transfer, recruitment advertising, layoff or -2- 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 26 27 28 eExhiL*"A" to COUNTY/CITY Contract termination; rates of pay or other forms of compensation and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this nondiscrimination clause. 2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. 3. The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representatives of the contractor's commitment under Section 202 of Executive order 11246 of September 24, 1965, and shall post copies of the notice on conspicuous places available to employees and applicants for employment. 4. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965 and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The contractor will furnish all information and reports required by Executive order 11246 of September 24, 1965 and by the rules, regulations and order of the Secretary of Labor or pursuant thereto and will permit access to his books, records and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. 6. In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contract in accordance with procedures authorized in Executive (Order 11246 of September 24, 1965, or by rules, regulations or order of the Secretary of -3- 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 0 Ext. .t "A" to COUNTY/CITY. Contract Labor or as otherwise provided by law. 7. The contractor will include the portion of the sentence immediately preceding paragraph (1) beginning with the words "During the performance of..." and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of the Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department the contractor may request the United States to enter into such litigation to protect the interest of the United States. The CITY further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work. The above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such CITY which does not participate in work on or under the contract. The CITY agrees that it will assist and cooperate actively with COUNTY, HUD and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations and relevant orders of the Secretary of Labor; that it will furnish the COUNTY, HUD and the Secretary of Labor such information as they may require for the supervisions of such compliance; and that it will otherwise assist the above parties in the discharge of its primary responsibility for securing compliance. The CITY further agrees that it will refrain from entering into any con - (tract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from or who has not demonstrated eligibility for, Government -4- M1 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . Exhis "A" to COUNTY/CITY Contract` contracts and federally assisted construction contracts pursuant to the executive order and will carry out such sanctions and penalties for violation of equal opportunity clause as may be imposed upon contractors and subcontractors by HUD or the Secretary of Labor pursuant to Part II, Subpart B of the Executive Order. In addition, the CITY agrees that if it fails or refuses to comply with these undertakings, the COUNTY may take any or all of the following actions: Cancel, terminate or suspend in whole or in part the grant or loan guarantee; refrain from extending any further assistance to the CITY under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such CONTRACTOR. (Source: H/CD Funding Agreement #4 and Executive Order 11246, Part II, Subpart B, Section 202, Title 24 CFR 130, revised April 1, 1984.) C. Federal Labor Standards Except with respect to the rehabilitation of residential property designed for residential use for less than eight families, the CITY and all contractors engaged under contracts in excess of $2,000.00 (Two Thousand Dollars and no/100) for the construction, prosecution, completion or repair of any building or work financed in whole or in part with assistance provided under this contract, shall comply with HUD requirements pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3 (Copeland Act), 5, and 5a (Davis -Bacon Act), governing the payment of wages and the ratio of apprentices and trainees to journeyman: Provided, that if wage rates higher than those required under such regulations are imposed by state of local law, nothing hereunder is intended to relieve the CITY of its obligation, if any, to require payment of the higher rates. The CITY shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such contracts in excess of $10,000, 29 CFR 5. The "Federal Labor Standards Provisions" (HUD 4010) are made part of this contract. No award of the contracts covered under this section of the contract shall MM Exh. t "A" to COUNTY/CITY Contract I 1 be made to any contractor who is at the time ineligible under the provisions of any 2 applicable regulations of the Department of Labor to receive an award of such contract. 3 (Source: H/CD Funding Agreement $7) 4 All documents submitted by the CITY to the COUNTY which are required for 5 compliance with the Federal Labor Standards, shall be certified as being true, accurate, 6 and complete by the City Engineer or the Director of Public Works. (Source: 7 Orange County H/CD) 8 D. Non -Discrimination 9 The CITY in an activity directly or indirectly financed under this contract,i IO shall comply with: 11 1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), and the 12regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in 1311 the United States shall on the grounds of race, color, or national origin, be excluded 14 from participation in, be denied the benefits of, or be otherwise subjected to 15 discrimination under any program or activity for which the applicant receives Federal 16 financial assistance and will immediately take any measures necessary to effectuate this 17 assurance. If any real property or structure thereon is provided or improved with the 18 aid of Federal financial assistance extended to the applicant, this assurance shall 19 obligate the applicant, or in the case of any transfer of such property, any transferee, 20 for the period during which the real property or structure is used for a purpose for 21 which the Federal financial assistance is extended, or for another purpose involving the 22 provision of similar services or benefits. 23 2, Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284), as amended, 24 administering all programs and activities relating to housing and community development 25 in a manner to affirmatively further fair housing; and will take action to affirmatively 26 further fair housing in the sale or rental of housing, the financing of housing, and the 27 provision of brokerage services. 28 3. Section 109 of the Housing and Community Development Act of 1974, and -6- 7� 8 9 10 11 12, 13 I 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhile "A" to COUNTY/CITY Contract the regulations issued pursuant thereto (24 CFR Part 570.602), which provides that no person in the United States shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds provided under this part. 4. Executive Order 11063 on equal opportunity in housing and nondiscrimination in the sale or rental of housing built with Federal assistance. (Source: Title 24 CFR Part 570.601, revised April 1, 1984) E. Accessibility/Usability of Facilities and Buildings for Physically Handicapped The CITY in any activity directly or indirectly financed under this contract shall require every building or facility (other than a privately owned residential structure) designed, constructed, or altered with funds provided under this Part to comply with the "American Standard Specifications for Making Buildings and Facilities Accessible to, and Usable by, the Physically Handicapped," Number A -117.1-R 1971, subject to the exceptions contained in 41 CFR 101-19.604. The CITY will be responsible for conducting inspections to insure compliance with these specifications by any contractor or subcontractor. (Source: 24 CFR Part 570.202(x), revised April 1, 1984) F. Relocation 1. The CITY in any activity directly or indirectly financed under this contract shall: a. To the greatest extent practicable under State law, comply with Sections 301 and 302 of Title III (Uniform Real Property Acquisition Policy) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and (will comply with Sections 303 and 304 of Title III, and HUD implementing instructions at 24 CFR Part 42; and b. Inform affected persons of their rights and of the acquisition policies and procedures set forth in the regulations in 24 CFR Part 42 and 570.606 -7- Exh t "A" to COUNTY/CITY, Contract revised April 1, 1984) 2. The CITY shall also: a. Comply with Title II (Uniform Relocation Assistance) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and HDD implementing regulations at 24 CFR Part 42 and 570.606; b. Provide relocation payments and offer relocation assistance as described in Section 205 of the Uniform Relocation Assistance Act to all persons displaced as a result of acquisition of real property for an activity assisted under the Community Development Block Grant Program. Such payments and assistance shall be provided in a fair and consistent and equitable manner that insures that the relocation process does not result in different or separate treatment of such persons on account of race, color, religion, national origin, sex, or source of income; 3. Assure that, within a reasonable period to time prior to displacement, comparable decent, sate and sanitary replacement dwellings will be available to all displaced families and individuals and that the range of choices available to such persons will not vary on account of their race, color, religion, national origin, sex, or source of income; and 4. Inform affected persons of the relocation assistance, policies and procedures set forth in the regulations at 24 CFR Part 42 and 570.606. (Source: Title 24 CFR Part 570.606, revised April 1, 1984) G. Lead -Based Paint Hazards The construction or rehabilitation of residential structures with assistance provided under this Contract is subject to the HUD Lead -Base Paint regulations, 24 CFR Part 35. Any grants or loans made by the CITY or work performed by the CITY for the rehabilitation of residential structures with assistance provided under this Contract shall be made subject to the provisions for the elimination of lead -base paint hazards under subpart C of said regulations and the CITY shall be responsible for the inspections and certifications required under Section 35.24 thereof. (Source: H/CD -8- 21 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • i Exh* "A- to COUNTY/CITY Contract, Funding Agreement #5 and 24 CFR Part 35 and 570.608 revised April 1, 1984) H. Flood Disaster This Contract is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Contract is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards, which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of Said Act; and the use of any assistance provided under this Contract for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any Contract or Agreement for the sale, lease or other transfer of land acquired, cleared, or improved with assistance provided under this Contract shall contain, if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 D.S.C. 4001 et seq., provisions obligating the transferree and its successors or assignees to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Contract. (Source: H/CD Funding Agree- ment #3) The CITY shall comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards and Executive Order 11288 relating to the prevention, control, and abatement of water pollution. (Source: Title 24 CFR 570.605 revised April 1, 1984) Z:m 01 7 8 9 10 11 121 13 14 15 16 17 18! 19 20 21 22 23 24 25 26 27 28 Exh. t "A" to COUNTY/CITY. I. Compliance with Air and Water Acts The CITY shall cause or require to be inserted in full in all non-exempt contracts or subcontracts for work furnished in whole or in part by the grant contracts, the following requirements (provided that contracts, subcontracts and subloans not exceeding $100,000.00 (One Hundred Thousand Dollars and no/100) are exempt from this part: This Contract is subject to the requirements of the Clean Air Act, as amended 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. in compliance with said regulations, the CITY shall cause or require to be inserted in full in all contracts and subcontracts dealing with any non-exempt transaction thereunder funded with assistance provided under this contract, the following requirements: 1. A stipulation by the contractor or subcontractors that any facility to be utilized in the performance of any non-exempt contract or subcontract is not listed on the list of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20. 2. Agreement by the contractor that he will comply with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3. A stipulation that as a condition for the award of the contract prompt notice will be given of any notification received from the Director of the EPA, Office of Federal Activities or any agent of the office, that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA list of -10- e 11 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 Exh& "A" to COUNTY/CITY Contract Violating Facilities. 4. An Agreement by the contractor that he will include or cause to be included the criteria and requirements in paragraph (1) through (4) of this section in every non-exempt subcontract and requiring that the contractor will take such action as the Government may direct as a means of enforcing such provisions. In no event shall any amount of the assistance provided under this contract be utilized with respect to a facility which has given rise to a conviction under Section 113(c)(1) of the Clean Air Act of Section 309(c) of the Federal Water Pollution Control Act. (Source: H/CD Funding Agreement #6) J. Management Compliance The CITY in any activity directly or indirectly financed under this contract shall comply with regulations, policies, guidelines and requirements of OMB Circular No. A-102, Revised, and Federal Management Circular 74-4: Cost principles applicable to grants and contract with State and local governments, and Federal Management Circular 74-7: Uniform Administrative Requirements for grant-in-aid to State and local governments as they relate to the application, administration, acceptance and use of Federal funds under this Part. (Source: Title 24 CFR Part 570.200(4) revised April 1, 1984) K. Obligations of Contractor with Respect to Certain Third Party Relationships The CITY shall remain fully obligated under the provisions of this contract notwithstanding its designation of any third party or parties for the undertaking of any part of the program with respect to which assistance is being provided under this contract to the CITY. Such third party or parties shall comply with all lawful requirements of the CITY necessary to insure that the program with respect to which assistance is being provided under this contract to the CITY is carried out in accordance with the CITY's assurances and certifications, including those with respect to the assumption of environmental responsibilities of the CITY under Section 104(h) of the Housing and Community Development Act of 1974. (Source: H/CD Funding Agreement #9) -11- Ext. At "A" to COUNTY/CITY Contract, 1 L. Interest of Certain Federal Officials 2 No member of Delegate to the Congress of the United States and no Resident 3 Commissioner, shall be admitted to any share or part of this contract or to any benefit 4 to arise from the same. (Source: H/CD Funding Agreement #10) 5 M. Interest of Members, Officers or Employees of CITY, Members of Local 6 Governing Body or Other Public Officials 7i No member, officer or employee of the COUNTY or CITY its designees or $ agents, no members of the governing body of the locality in which the program is 9 situated and no other public official of such locality or localities who exercise any 10 functions or responsibilities with respect to the program during his tenure or for one 11 year thereafter, shall have any interest, direct or indirect, in any contract, 12 subcontract or the proceeds thereof, for work to be performed in connection with the 13 program assisted under this contract. The CITY shall incorporate or cause to be 14 incorporated, in all such contracts or subcontracts a provision prohibiting such 15 interest pursuant to the purpose of this section. (Source: H/CD Funding Agreement #11, 16 Title 24 CFR 570.611 and 570.458(14) (M) (X), revised April 1, 1984) 17 N. Prohibition Against Payments of Bonus or Commission 18 The assistance provided under this contract shall not be used in the payment 19 of any bonus or commission for the purpose of obtaining HUD approval of the application 20 for such assistance or HUD approval of application for additional assistance of any 21 other approval or concurrence of HUD required under this contract, provided, however, 22 that reasonable fees or bona fide technical, consultant, managerial or other such 23 services, other than actual solicitation, are not hereby prohibited if otherwise 24 eligible as program cost. (Source: H/CD Funding Agreement #12) 25 O. Hatch Act Compliance 26 The CITY and COUNTY shall comply with the omp provisions of the Hatch Act which 27 limits the political activity of employees. (Source: Title 24 CFR Part 570.458(14) (M) 28 (X1), revised April 1, 1984) -12- 4 Exhi! "A" to COUNTY/CITY Contract P. Definitions Throughout these Special Provisions the meaning of words shall be that meaning given by the act, regulation, Executive Order, Federal Management Circular, agreement, or rule cited herein as the source for the section in which the word appears. (Source: Orange County Counsel) Q. Note Federal Management Circular 74-7 has been replaced with Office of Management and Budget (OMB) A-102. J/J JM:bjgAWP2-5 -13- 06/16/86 City Boundary SC;LS: r'-3.00' \ Census Trac: Boundary _ SAV JL LV CAPISTELVO -+ i �Eti�-iRONMEtiT_iI. _!L��i �GE:+SEtiT _3GE`iCYJ V � 4-ious�ng & Re�eve.00ment MAR 3 X954 Y OF IV G1 E ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT March 30, 1994 Mary Raskin Assistant Planner City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 FILE MICHAEL M. PLANE DIRECTOR, EMA DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1200 N. MAIN STREET SUITES 600 & 618 SANTA ANA, CALIFORNIA MAILING ADDRESS, P.O. BOX 4048 SANTA ANA, CA 92702-4048 TELEPHONE: (714) 568-4199 FAX: (714) 568-4202 RE: CDBG Year XIX Contracts and Contract Amendment and Termination Dear Ms. Raskin: Transmitted herewith are CDBG Year XIX contracts executed by the Director of Housing and Redevelopment. These are: l � C41454 $70,000 C41455 $30,000 C41456 $34,000 Included are the executed Termination to Year XVII Contract No. C41047 and Amendment to Year XVIII Contract No. C41176. Please feel free to contact me at 568-4210 should you have any questions. Sinc rely yours, Michael Chiaramonte HPS-Grant Management Attachments cc: M. Manzo, Chief, HPS/GM 0 Manny Manzo -2- March 4, 1994 The contracts have been signed by the City and 5 copies of each contract are enclosed. When the contracts have been signed by the appropriate County personnel, please return one copy to the City Clerk's Office for the City's permanent files. A copy of Resolution No. 94-3-1-2 is also enclosed for your information. Very truly yours, �;7_ t7�� Cheryl Johnson City Clerk Enclosures cc: Director of Planning Mary Raskin The Mayor and City Clerk were authorized to execute the document, and the City Clerk was directed to record the document with the County Recorder. The following item was removed from the Consent Calendar at the request of Council Member Nash. RIGHT-OF-WAY ACQUISITION SERVICES AGREEMENT EXTENSION - SAN JUAN CREEK RAILROAD REALIGNMENT (BOYLE ENGINEERING) (60030) Council Member Nash inquired as to the reasons for the fee increase. Mr. Huber explained that the increase was primarily due to additional negotiations required for the boundary work on the railroad parcel and changes in policy direction. It was moved by Council Member Nash, seconded by Council Member Jones, and unanimously carried that the Right -of -Way Acquisition Services Agreement Extension be approved with Boyle Engineering for the San Juan Creek Railroad Realignment Project. The Agreement Extension increased the fee by $15,000, to a total of $61,100, for continued negotiations with the Orange County Transit Authority (OCTA) and extended the term of the Agreement from June 30, 1994, to December 31, 1994. The Mayor was authorized to sign the Agreement on behalf of the City. EXECUTIONPUBLIC HEARING 11 OF • DEVELOPMENT BLOCK CONTRACTS FOR FISCAL YEAR 1993-94 IYEAR 19), MODIFICATIONS TO CDBG CONTRACTS FOR R 18)* MODIFICATI[ONS TO THE CITY'S u•: HOMEu':•u:• FISCAL� ..0 POLICY AND PROCEDURE (YEARMANUAL, AND EXECUTION OFTHE HOME CONTRACT FOR FISCAL YEAR 1993-94 ..1.1 1 Proposal: Consideration of. (1) Year 19 CDBG contracts ($70,000 for mobile home rehabilitation; $30,000 for rehabilitation of private properties; and $34,000 for public facilities and improvements to the Lacouague Building); (2) Amendment to Year 18 CDBG contracts to reprogram approximately 548,560 in funds from unused contracts for the rehabilitation of mobile homes; (3) Modifications to the Mobile Home Improvement Policy and Procedure Manual to increase the maximum amount a household can receive from a CDBG from 5500 to $15,000; and (4) Year 2 HOME contract in the amount of 550,000 for the rehabilitation of owner -occupied, low- income housing per Federal HOME Guidelines. Applicant: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Written Communication: Report dated March 1, 1994, from the Planning Director, recommending approval of the Year 19 CDBG contracts and Year 2 HOME contract, amendments to Year 18 CDBG contracts, and modifications to the Mobile Home Improvement Policy and Procedure Manual. City Council Minutes -3- 3/1/94 01-1 L AGENDA ITEM March 1, 1994 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Director of Planning SUBJECT: Modifications to Fiscal Year 1992-1993 Community Development Block Grant Contract (Year 18), to the City's Mobile Home Improvement Program Policy and Procedures Manual, and Execution of the Fiscal Year 1993-1994 Community Development Block Grant (Year 19) and HOME Contracts (Year 2). By Motion, authorize the Mayor to execute the modifications to the Fiscal Year 1992-1993 Community Development Block Grant contracts and to execute the Fiscal Year 1993-1994 Community Development Block Grant and HOME contracts and adopt the resolution modifying the Mobile Home Improvement Program Policy and Procedure Manual. ----------------------------------------------------------------- ----------------------------------------------------------------- SITUATION A. Applicant or Property Owner City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation 1. Fiscal Year 1993-1994 Community Development Block Grant (CDBG): The City Council is being requested to authorize the Mayor to execute the Year 19 Community Development Block Grant contracts (fiscal year 1993-1994) for the rehabilitation of mobile homes ($70,000), the rehabilitation of private properties ($30,000) and public facilities and improvements to the Lacouague Building ($34,000) (attachment 2). 2. Fiscal Year 1992-1993 Community Development Block Grant (CDBG): The City Council is being requested to authorize the Mayor to execute an amendment to the Year 18 Community Development Block Grant contract for rehabilitation of mobile homes in order to re -program funds from unused contracts into this contract in the amount of approximately $48,560 (attachment 3). FOR CITY COUNCIL AGEN /�E / 0 Agenda Item March 1, 1994 3. Modifications to the Mobile Home Improvement Policy and Procedure Manual: The City Council is being requested to modify the City's Mobile Home Improvement Program Policy and Procedures Manual to increase the maximum amount a household can receive from a Community Development Block Grant from $5000.00 to $15,000 (attachment 4). Fiscal Year 1993-1994 HOME Contract: The City Council is being requested to authorize the Mayor to execute the Year 2 HOME contract (fiscal year 1993-1994) which is in the amount of $50,000. These funds are to be utilized primarily for rehabilitation activities of owner occupied low income housing within the City, such as the existing mobile home and single family home rehabilitation programs, per the Federal HOME Guidelines (attachment 5). C. Background Environmental Processing: This project has been reviewed in accordance with the California Environmental Quality Act by the Planning Director and a Certificate of Exemption was issued for each of the above projects as it was determined that they are categorically exempt from review (class 1) Statute 15267. D. Project Description Fiscal Year 1993-1994 CDBG contracts: These three contracts were received from the County in late January of 1994 and require execution by the Mayor before expenditure of the Federal funds can commence. The three contracts are as follows: C41454: Rehabilitation of Mobile Homes: $70,000.00. Under this ongoing CDBG program, low income grant recipients receive up to $5,000 for the correction of health and safety violations on the mobile homes. (An increase in the grant amount is being requested below under modifications to the Mobile Home Improvement Policy and Procedure Manual). All seven of the City's mobile home parks are eligible for this program. This CDBG program has been aggressively expanded this past year by no longer utilizing a consultant to administer the program and by Agenda Item 0 3 March 1, 1994 assigning a staff member to administer the program. Currently there are approximately 21 mobile homes undergoing rehabilitation as part of this program and an additional 20 mobile homes are anticipated to be completed by July of 1994. This represents a 250% increase over the number of mobile homes rehabilitated last year. It is anticipated that an additional 100-150 mobile homes have outstanding health and safety violations and households that would qualify under the Department of Housing and Urban Development's (HUD) income requirements for assistance under this program. C41455: Rehabilitation of Private Properties: $30,000.00. This is also an ongoing CDBG program which is now administered by City staff. Under this program, low income households can receive up to $5,000 in a grant and up to $5,000 in a 016 deferred interest loan to fund rehabilitations of their single family homes to address current health and safety code violations. Currently there are eight applicants on the eligibility list for these loans and grants and the processing of all of these applications is anticipated to be complete by the end of the calendar year. It is anticipated that an additional 20-30 households will be applying for assistance under this program in the next calendar year. C41456: Public Facilities and Improvements- Lacouague Building: $34,000.00. This is a continuation of a rehabilitation effort that received CDBG funding in Year 16 (fiscal year 1990-1991) for the design of the proposed rehabilitation of this building. The funds allocated in this contract are for the actual construction of the improvements and rehabilitation of the building. The City Council approved the reprogramming of funds into the Year 16 contract ($17,692.16) (CC Reso. 93-12-7-1) which are also to be used for the construction of the improvements to this building. Therefore, the total amount of grant funding available for this project under the Year 16 and Year 19 contracts is ($51,692.16). 0 • Agenda Item 4 March 1, 1994 2. Modifications to the Fiscal Year 1992-1993 CDBG Contract: Funds are being reprogrammed from three existing CDBG contracts from previous years which have never been executed and are no longer feasible. The reason for the reprogramming of these funds is that the Department of Housing and Urban Development (HUD), who issues the funding, has set new guidelines for the CDBG program which state that all funding must be utilized within 18 months from receipt of those funds (signing of the contracts). The three contracts from which funds are being reprogrammed are from Years 11 (2 of them)(Fiscal Year 1985-1986) and Year 17 (Fiscal Year 1991-1992) and as such are subject to being reassumed by HUD unless the City reprograms them into eligible and active contracts such as the Mobile Home Improvement Program. The total amount of funds to be reprogrammed are $48,560 which will enable approximately 4-9 additional mobile homes to be rehabilitated in this funding year. As stated earlier, the Mobile Home Improvement Program is the City's most active and most successful CDBG program to date and therefore HUD has determined that it is eligible to receive the reprogrammed funds described above. 3. Modification to the Mobile Home Improvement Policy and Procedure Manual: Currently this manual, which dictates how the Mobile Home Improvement program is implemented, allows for grants of up to $5,000.00 per household (attachment 4). The $5,000.00 amount was decided upon in 1989 based on the average cost of rehabilitating a mobile home. Typical correction of health and safety code violations include repair/replacement of the roof, replacement of galvanized plumbing pipes with copper pipes, pigtailing aluminum wiring at the sockets and terminals with copper wiring and replacement of porch flooring and stairs. On the average these costs run anywhere from $3,500 to $13,000 depending on the extent of the needed work. In the past any repairs over the $5,000 limit had to be paid by the coach owner, who typically did not have the money to make the repairs and therefore they went uncorrected. The County also operates a Mobile Home Improvement program and under their program does not have any limits for the amount of assistance a coach owner can receive. The requested $15,000 limit was discussed with the County, who are in support of this limit, and who have suggested that rather than going from a $5,000 limit to no limits, that the City try the $15,000 limit first to determine if it is sufficient. It is staff's experience 0 0 Agenda Item 5 March 1, 1994 thus far, that the $15,000 limit for grants will suffice for meeting the needs of the mobile home owners in the City. Therefore, staff recommends amending the current Mobile Home Improvement Policy and Procedure Manual to reflect a $15,000 grant limit. All Year 18 and 19 CDBG Mobile Home Improvement contracts with the County will be modified accordingly if this amendment is approved by the City. 4. Fiscal Year 1993-1994 HOME Contract: This contract (C41535) was received from the County on February 14, 1994 and is for a grant amount of $50,000. The County has specified that the funds are to be utilized primarily for rehabilitation activities of owner occupied low income housing within the City, such as the existing mobile home and single family home rehabilitation programs. None of the HOME funds are to be used for direct rental assistance, and if rental units are rehabilitated they will be subject to a 10 year affordability requirement, per HOME Guidelines. E. Issues No issues have been identified. F. Staff Analysis By reprogramming funds ($48,560) from CDBG contracts which are no longer viable, the City will be able to assist approximately 4-9 more mobile home owners this funding year than would have been possible under HUD's initial award. The low income households of the City will benefit from the increase in Federal funds allocated for their assistance. This increase in households assisted with CDBG funding also significantly increases the City's standing for future receipt of grants from HUD as these awards are largely based upon the City's demonstrated expenditure of funds and the number of households assisted. Two other facts exist which also contribute favorably to the City's likelihood of receiving additional Federal and State funding in the future and the City's increased ability to attract both non-profit and for-profit developers of low income housing. These facts are that the administration of the City's Housing Services is now being done by a City staff member and no longer by an outside consultant, and that the City's has recently exhibited a more aggressive 0 0 Agenda Item 6 March 1, 1994 approach to providing more low income related housing assistance as evidenced in the Year 20 CDBG application, the new Mortgage Credit Certificate Program and the Housing Opportunities Program, which is under development. FINANCIAL CONSIDERATION If the above requested funds are approved for reprogramming and the Year 19 CDBG and Year 2 HOME contracts are authorized for signature by the Mayor, the total for all active CDBG and HOME (Years 16, 18 and 19) grants will be $405,252 (attachment 6). The City is authorized to spend $60,050 of these funds on staff costs associated with the administration/management of these contracts. Any additional staff costs are billed to the CRA set-aside fund for low income housing related projects and do not come out of the City's General Fund. This represents a savings in staff costs to the City's General Fund. The remaining $345,202 of CDBG and HOME funds is to be utilized for project implementation costs within the next 18 months. Staff will make a presentation to the County regarding the Year 20 CABG and HOME application on February 22, 1994. The City will receive notification of the County's recommendation to HUD for funding of the Year 20 CDBG and HOME program by March 21, 1994. PUBLIC NOTIFICATION A Public Hearing Notice including the project description, date, time and location of said hearing was published in the Capistrano valley News. ALTERNATE ACTIONS Approve authorizing the Mayor to execute the modifications to the Fiscal Year 1992-1993 Community Development Block Grant contracts and to execute the Fiscal Year 1993-1994 Community Development Block Grant and HOME contracts and adopt the resolution modifying the Mobile Home Improvement Program Policy and Procedure Manual, or; Deny to authorize the Mayor to execute the modifications to the Fiscal Year 1992-1993 Community Development Block Grant contracts and to execute the Fiscal Year 1993-1994 Community Development Block Grant and HOME contracts and adopt the resolution modifying the Mobile Home Improvement Program Policy and Procedure Manual, or; Continue the item and direct staff to return with further information on specified issues. Agenda Item 7 March 1, 1994 ------------------------------------------------------------ RECOMMENDATION By Motion, authorize the Mayor to execute the modifications to the Fiscal Year 1992-1993 Community Development Block Grant contracts and to execute the Fiscal Year 1993-1994 Community Development Block Grant and HOME contracts and adopt the resolution modifying the Mobile Home Improvement Program Policy and Procedure Manual. ----------------------------------------------------------------- ----------------------------------------------------------------- Respectfully submitted, Thomas Tomlinson, Planning Director Attachments 1. Draft Resolution 94-3-1 2. Fiscal Year 1993-1994 Contracts 3. Fiscal Year 1992-1993 Contract 4. Modified Mobile Home Improvement Policy and Procedure Manual 5. Fiscal Year 1993-1994 HOME Contract 6. CDBG and HOME Funds Worksheet CP\CDBGMOAI.CC TT: MR: hs 0 RESOLUTION NO. 94-3-1-2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE MODIFICATIONS TO THE YEAR 18 COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACTS AND TO EXECUTE THE YEAR 19 COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACTS AND APPROVING MODIFICATIONS TO THE MOBILE HOME IMPROVEMENT POLICY AND PROCEDURE MANUAL TO ALLOW FOR GRANTS OF UP TO $15,000 PER HOUSEHOLD WHEREAS, the applicant, the City of San Juan Capistrano, has requested that the City Council authorize the Mayor to execute modifications to the Year 18 Community Development Block Grant contracts and to execute the Year 19 Community Development Block Grant contracts and to approve modifications to the Mobile Home Improvement Program Policy and Procedure Manual to allow for grants of up to $15,000 per household; and, WHEREAS, the Planning Director has reviewed the proposed contracts and modifications in accordance with the California Environmental Quality Act and has determined that the projects are categorically exempt from review (Class 1) Statute 15267, and therefore issued a Certificate of Exemption; and, WHEREAS, a public hearing has been duly advertised and held to review and receive public testimony on the applications; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed modifications to the Year 18 contract and the proposed Year 19 contracts for Community Development Block Grants will provide additional funding to assist low-income households within the City. 2. The proposed modification to the Mobile Home Improvement Policy and Procedure Manual increasing the maximum grant amount to $15,000 per household will enable low-income households to receive adequate funding to correct their outstanding health and safety code violations and to improve the quality of their mobile homes. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby authorize the Mayor to execute modifications to the Year 18 Community Development Block Grant contracts and to execute the Year 19 Community 9 0 Development Block Grant contracts and does approve of the proposed modifications to the Mobile Home Improvement Program Policy and Procedure Manual to allow for grants of up to $15.000 per household. PASSED, APPROVED, AND ADOPTED this 1st day of March, 1994. LLENE C BELL, AYOR ATTEST: . ice✓✓. / CITY CLEAK, STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 94-3-1-2 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 1st day of March 1994, by the following vote: AYES: Council Members Jones, Hausdorfer, Nash, Vasquez and Mayor Campbell NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOMS6N, CITY CLERK -2- 0 9 ATTACHMENTS 2 - 5 These attachments are available for public review at the City Clerk's counter and a copy is available in the City Council office for the City Council's review. CDBG AND HOME PROGRAMS • FUNDING CDBG Total Pro'. Admin Year 16: Lacouague Building: C40937: $17,692/ $14,154/ $ 3,538 Year 18: Mobile Home Rehab: C41176: $98,560/ $78,848/ $19,712 Year 18: Single Fam. Rehab: C41175: $25,000/ $20,000/ $ 5,000 Year 19: Lacouague Building: C41456: $34,000/ $27,200/ $ 6,800 Year 19: Mobile Home Rehab: C41454: $70,000/ $56,000/ $14,000 Year 19: Single Fam. Rehab: 041455: $30,000/ $24,000/ $ 6,000 Total CDBG Funds: $275,252 $220,202 $55,050 HOME Year 18: Mobile Home Rehab: C41244: $80,000/ $80,000/ none Year 19: Undetermined: C-----: $50,000/ $45,000/ $5,000 ------------------------------------------------------------------- Total HOME Funds: $130,000 $125,000 $5,000 Totals Effective 2/94 L] ATTACHMENT 6 Total Proi. Admin Lacouague Building: $ 51,692 $ 41,354 $ 10,338 Mobile Home Rehab: $168,560 $134,848 $ 33,712 Single Fam. Rehab: $ 55,000 $ 44,000 $ 11,000 HOME: ------------------------------------------------------------------ $130,000 $125,000 $ 51000 Total Funds: $405,252 $345,202 $ 60,050 Effective 2/94 L] ATTACHMENT 6 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA COUNTY OF ORANGE I am a citizen of the United States and a resident of the County aforesaid. I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the Capistrano Valley News, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on June 7, 1964, Case No. A-122949 in and for the City of San Juan Capistrano, County of Orange, State of California: that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: Feb. 17, 1994 I declare under penalty of perjury that the foregoing is true and correct. Executed at Mission Viejo, Orange County, California, on Feb. 17, 1994 ............................................................................................................. (Signature) Capistrano Valley News (A Publication o/ South Orange County News) 23811 Via Fabricante P. O. Box 3629 Mission Viejo, California 92690 (714)768-3631 0 Space below for Filing Stamp Only. Proof Proof of Publication of NOTICE OF PUBLIC HEARING ............................................................................................................. rn rn _ W M - m n rn ® m Au o -7- Proof Proof of Publication of NOTICE OF PUBLIC HEARING ............................................................................................................. 0 NOTICE OF TRANSMITTAL - LEGAL PUBLICATIONS TO: CAPISTRANO VALLEY NEWS Bea Gougeon, Legal FOR PUBLICATION ON: 11 THURSDAY, FEBRUARY 17, 1994 DOCUMENT TO BE PUBLISHED: NOTICE OF PUBLIC HEARING - MODIFICATIONS TO YEARS 16 AND 18 COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACTS, MOBILE HOME IMPROVEMENT PROGRAM POLICY AND PROCEDURES MANUAL AND EXECUTION OF THE YEAR 19 CONTRACT PROOF OF PUBLICATION AUTBORIZED BY: DATE: February 9, 1994 Date of Public Hearing Please send to: City Clerk's Division City Hall 32400 Paseo Adelanto San Juan Capistrano, California, 92675 (714) 493-1171 - 03/01/94 Date notice published - 02/171/94/ Date affidavit received - Date notice posted in designated posting places (3) - 02/17/94 Date notice posted on property - N/A Date of mailing notice to interested parties - N/A Date notice transmitted to City Manager's Office - 02/09/94 noti4p of PUBLIC HEARING CITY Of SAN JUAN CAPISTRANO NOTICE IS HEREBY GIVEN, that on the 1 st day of March, 1994, at 7:00 P.M. in the City Council Chamber, 32400 Paseo Adelanto, San Juan Capistrano, California, the City Council will hold a public hearing on the following: MODIFICATIONS TO YEARS 16 AND 18 CONTRACTS MOBILE HOME IMPROVEMENT PROGRAM POLICY AND PROCEDURES MANUAL AND EXECUTION OF YEAR 19 CONTRACTS (COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM) The City Council will consider the Year 19 Community Development Block Grant contracts for the rehabilitation of mobile homes ($70,000), the rehabilitation of private properties ($30,000) and public facilities and improvements to the Lacouague Building ($34,000). The City Council will also consider modifying the City's Mobile Home Improvement Program Policy and Procedures Manual to increase the maximum amount a household can receive from a Community Development Block Grant from $5,000 to $15,000. An amendment to the Year 18 Community Development Block Grant contract for rehabilitation of mobile homes will be considered in order to re -program funds from unused contracts into Year 18 contract in the amount of approximately $48,560. An amendment to the Year 16 Community Development Block Grant contract proposes to re -program $17,692.16 for the additional design costs and improvements to the Lacouague Building. This project has been processed and reviewed in accordance with the California Environmental Quality Act (1970). The Environmental Review Board has issued a categorical exemption for all of the projects because they are statutorily exempt, Section 15267 (Class 1). Those desiring to be heard in favor of, or in opposition to, this item will be given an opportunity to do so during such hearing or by writing to the City Council at 32400 Paseo Adelanto, San Juan Capistrano, California 92675, Attention: City Clerk. For further information, you may contact Mary Raskin at 493-1171, extension 205. el Mll N Eli MM • STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SAN JUAN CAPISTRANO I, CHERYL JOHNSON, declare that I am the duly appointed and qualified City Clerk of the City of San Juan Capistrano; that on February 17, 1994, I caused the above Notice to be posted in three (3) public places in the City of San Juan Capistrano, to wit: City Hall; Old Fire Station Recreation Complex; Orange County Public Library AND, that on February 17, 1994, the above Notice was published in the Capistrano Valley News newspaper. I declare under penalty of perjury that the foregoing is true and correct. CH RYL JOHNSON, CITY CLERK City of San Juan Capistrano California 2 ) 1 • UNTY OF GE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT FILE Mr. George Scarborough, City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 - Subject: CDBG Contracts - Year XIX Dear Mr. Scarborough: MICHAEL M. RUANE DIRECTOR. EMA DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1200 N. MAIN STREET SUITES 600 8 618 SANTA ANA, CALIFORNIA MAILING ADDRESS. P.O. BOX 4048 SANTA ANA. CA 92702-4048 TELEPHONE: (714) 568-4199 FAX: (714) 568-4202 January 6, 1994 Your Community Development Block Grant contracts for Fiscal Year 19934 have been prepared and are enclosed for your review and execution. Please return all sets to us promptly along with the completed signature form. We regret the delay in their delivery to you. Compliance with technical changes in content required by U.S. Department of Housing and Urban Development caused lengthy revisions in contract language. The contract terms covering program income and contract completion dates have been significantly changed. Recipients who have accumulated program income must now expend this program income first before drawing down from the new contracts. In addition, recipients are now required to complete all projects within eighteen months. The changes require extra effort by each City to use CDBG funds promptly and to complete projects without delay. The County understands that these contract terms may cause you some concern. We will be happy to discuss these issues in detail. Please contact your County representative or Manny Manzo at (714) 568-4209 as soon as possible. enclosures: CDBG Contracts Signature Authorization Form cc: A. Bye, Manager HPS M. Manzo, Chief -GM Mary Raskin Wbx NOV 2 473 °) _OUNTY OF 5 N1 3 /WFI^NCIE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT November 24, 1993 FILE Mary Raskin City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 RE: CDBG Contracts No. C41176 - Amendment and No. C41047 - Termination Dear Ms. Raskin: MICHAEL M. RUANE DIRECTOR. EMA DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1200 N. MAIN STREET SUITES 600 & 618 SANTA ANA, CALIFORNIA MAILING ADDRESS: P.O. BOX 4048 SANTA ANA, CA 92702-4048 TELEPHONE: (714)568-4199 FAX: (714) 568-4202 Transmitted herewith are the Amendment to Contract No. C41176 and Termination of Contract C41047 for execution by your City Council and attested by City Clerk. Upon City's execution, please transmit to County the authorizing resolution or minutes. Upon receipt, a Board of Supervisors hearing will be scheduled for final execution of contract amendment. Please feel free to contact me at 568-4210 should you have any questions. Attachments ow M. Manzo, Chief, HPS/GM Sincerely yours, Michael Chiaramonte HPS-Grant Management