1d. Three Year Cooperation Agreement with Hennepin County fo CDBG Program I
1 1 ci . .
CITYOF
1 s CHANHASSEN
1 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
holm !!ijt ati Nihntribtretor
1 MEMORANDUM Woes
-a0 -9
1 TO: Don Ashworth, City Manager ot
FROM: Paul Krauss, Planning Director 4 g IDS Submitted to Cowl
I DATE: April 19, 1993
1 SUBJ: Three Year Cooperation Agreement with Hennepin County for the CDBG Program
1 The Council is aware that Chanhassen receives CDBG funds through the Hennepin County
entitlement program. The process has worked very well for us and has resulted in the availability
I of funds for numerous valuable projects that may otherwise have been lost. Our continued
eligibility in the program is threatened by the loss of people residing in the Hennepin County
portion of our community. Hennepin County manages the program for area communities under
I a three -year cooperative agreement that is currently up for renewal.
As you are aware, the Mayor and City staff are continuing to pursue strategies that may resolve
I our problems with the Block Grant Program. We are making some progress but at the time of
writing our potential for success, at least in the near term, remains cloudy. However, Hennepin
County has submitted the new three -year agreement for your review and approval. I am
I recommending that you approve the attached resolution authorizing staff to enter into the
agreement. We will then be in a position to continue to participate when/if the opportunity
arises.
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c: Larry Blackstad, Hennepin County
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1 ti 41 PRINTED ON RECYCLED PAPER
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-7)-- OFFICE OF PLANNING & DEVELOPMENT
Development Planning Unit
I HENNEPIN 822 South Third Street, Suite 310
Minneapolis, MN 55415
1 (612) 348 -6418 FAX (612) 348 -6057
II April 1, 1993
II
Mr. Paul Krauss
City of Chanhassen
II
690 Coulter Drive
Chanhassen, MN 55317
1 Dear Mr. Krauss:
Earlier we mailed you a letter inviting your continued participation in the
1 Urban Hennepin County CDBG Program. At that time we were awaiting final
language required by HUD for inclusion in the Cooperation Agreement. We
have now received and incorporated the required language in the Joint
Cooperation Agreement.
II Please find enclosed one copy of the Cooperation Agreement which highlights
the changes from the previous agreement. Most of the changes are minor
1 language changes or clarifications. In addition, new HUD language regarding
the HOME Program and CDBG Program requirements are also reflected.
II We have also enclosed three copies of the Joint Cooperation Agreement and a
sample Council Resolution for your convenience to authorize participation in
the Urban Hennepin County CDBG Program for the next three years. A certi-
fied copy of the authorizing resolution must be returned with all three
II copies of the executed Cooperation Agreement by May 28, 1993 to:
Hennepin County Office of Planning and Development
II Development Planning Unit
822 South 3rd Street, Suite 310
Minneapolis, MN 55415
II This date has been adjusted from the date in our earlier letter. HUD is,
however, mandating that we adhere to this new schedule in order to assure
execution by the County Board and transmittal of a fully executed agreement
II to HUD by the July 16, 1993 deadline. One copy of the fully executed
Cooperation Agreement will be returned to you by that same date.
II
RECEIVED
1 RFC`. o 1993 HENNEPIN COUNTY
('QTY Ur crtiAiNhASSEN.
an equal opportunity employer
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April 1, 1993
Page Two
At the February 25, 1993 meeting with cooperating communities, it was suggest-
ed
that DPU staff explore support for the creation of a special initiatives
set -aside funded from a portion of any increment in CDBG funds which might be
received in Program Years XX and XXI. While a number of communities expressed
support for the concept, a sufficient level of support was lacking and we have
elected not to go forward with the Special Initiatives Program without further
discussion. We have, therefore, not included any language relative to this
matter in the Cooperation Agreement.
We look forward to your continued participation with us in the CDBG Program. II .
Should you have any questions concerning the Urban Hennepin County CDBG
Program, please feel free to contact us.
Sincerely,
Douglas A. Benson, AICP
Planning Supervisor
DAB:tf
Enclosures: Urban County CDBG Program Schedule
Joint Cooperation Agreement highlighting changes (1)
Joint Cooperation Agreement for execution (3)
Sample Resolution
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URBAN COUNTY CDBG PROGRAM SCHEDULE
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March 1, 1993 HUD notifies County that it may seek to qualify as an
1 Urban County
' April 1, 1993 County mails Cooperation Agreement to each included unit
of government
May 21, 1993 Cities wishing to be excluded must notify County and HUD
May 21, 1993 Any entitlement city that wishes to defer entitlement
status in favor of Urban County participation must notify
HUD and the County
May 28, 1993 Deadline for Cooperation Agreements from Communities
June 22, 1993* County Board Approval of Cooperation Agreement
July 16, 1993 County must submit documentation to HUD to qualify as
Urban County
Sept. 10, 1993 HUD will notify County of Urban County Status
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Urban Hennepin County Contract No. A07483
Community Development Block Grant Program
JOINT COOPERATION AGREEMENT
THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN,
State of Minnesota, hereinafter referred to as "COUNTY," A -2400 Government Center,
Minneapolis, Minnesota, 55487, and the cities executing this Master Agreement, each
hereinafter respectively referred to as "COOPERATING UNIT," said parties to this
Agreement each being governmental units of the State of Minnesota, and made pursuant
to Minnesota Statutes, Section 471.59:
WITNESSETH:
COOPERATING UNIT and COUNTY agree that it is desirable and in the interests of
their citizens that COOPERATING UNIT share its authority to carry out essential
community development and housing activities with COUNTY in order to permit COUNTY
to secure and administer Community Development Block Grant and HOME Investment
Partnership funds as an Urban County within the provisions of the Act as herein
defined and, therefore, in consideration of the mutual covenants and promises
contained in this Agreement, the parties mutually agree to the following terms and
conditions.
COOPERATING UNIT acknowledges that by the execution of this Agreement that it
understands that it:
1. May not also apply for grants under the State CDBG Program from
appropriations for fiscal years during which it is participating in
the Urban County Program; and
2. May not participate in a HOME Consortium except through the Urban
County.
I. DEFINITIONS '
The definitions contained in 42 USC 5302 of the Act and 24 CFR §570.3 of the
Regulations are incorporated herein by reference and made a part hereof, and the
terms defined in this section have the meanings given them:
A. "Act" means Title I of the Housing and Community Development Act of 1974,
as amended, (42 U.S.C. 5301 et seq.).
B. "Regulations" means the rules and regulations promulgated pursuant to the
Act, including but not limited to 24 CFR Part 570.
C. "HUD" means the United States Department of Housing and Urban Development.
D. "Cooperating Unit" means any city or town in Hennepin County which has '
entered into a cooperation agreement which is identical to this Agreement,
as well as Hennepin County which is a party to each Agreement.
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II E. "Statement of Objectives and Projected Use of Funds" means the document
bearing that title or similarly required statements or documents submitted
to HUD for authorization to expend the annual grant amount and which is
developed by the COUNTY in conjunction with COOPERATING UNITS as part of
the Community Development Block Grant program.
F. "Metropolitan City" means any city located in whole or in part in Hennepin
County which is certified by HUD to have a population of 50,000 or more
people.
II. PURPOSE
The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT to
cooperate to undertake, or assist in undertaking, community renewal and lower income
' housing assistance activities, specifically urban renewal and publicly assisted
housing and authorizes COUNTY to carry out these and other eligible activities for
the benefit of eligible recipients who reside within the corporate limits of the
COOPERATING UNIT which will be funded from annual Community Development Block Grant
' and HOME appropriations for the Federal Fiscal Years 1994, 1995 and 1996 and from any
program income generated from the expenditure of such funds.
' III. AGREEMENT
The term of this Agreement is for a period commencing on October 1, 1993, and
terminating no sooner than the end of the program year covered by the Statement of
Objectives and Projected Use of Funds for the basic grant amount for the Fiscal Year
1996, as authorized by HUD, and for such additional time as may be required for the
expenditure of funds granted to the County for such period. COUNTY shall notify
COOPERATING UNIT prior to the end of the Urban County qualification period that the
Agreement will automatically be renewed unless it is terminated in writing by either
' party. Either COUNTY or COOPERATING UNIT may exercise the option to terminate the
Agreement at the end of the Urban County qualification period. If COUNTY or
COOPERATING UNIT fail to exercise that option, it will not have the opportunity to
exercise that option until the end of a subsequent Urban County qualification period.
COUNTY will notify the COOPERATING UNIT in writing of its right to elect to be
excluded by the date specified by HUD in the Urban County Qualification Notice for
the next qualification period.
This Agreement must be amended by written agreement of all parties to
incorporate any changes necessary to meet the requirements for cooperation agreements
set forth in the Urban County Qualification Notice applicable for the year in which
the next qualification of the County is scheduled. Failure by either party to adopt
such an amendment to the Agreement shall automatically terminate the Agreement
following the expenditure of all CDBG and HOME funds allocated for use in COOPERATING
' UNIT's jurisdiction.
Notwithstanding any other provision of this Agreement, this Agreement may be
' terminated at the end of the program period during which HUD withdraws its
designation of COUNTY as an Urban County under the Act.
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This Agreement shall be executed by the appropriate officers of COOPERATING UNIT
and COUNTY pursuant to authority granted them by their respective governing bodies,
and a copy of the authorizing resolution and executed Agreement shall be filed
promptly by the COOPERATING UNIT in the Hennepin County Office of Planning and
Development, and in no event shall the Agreement be filed later than May 28, 1993.
COOPERATING UNIT and COUNTY shall take all actions necessary to assure
compliance with the applicant's certifications required by Section 104(b) of the
Title I of the Housing and Community Development Act of 1974, as amended, including
Title VI of the Civil Rights Act of 1964; the Fair Housing Act, section 109 of Title
I of the Housing and Community Development Act of 1974; The Americans With
Disabilities Act of 1990; and other applicable laws.
IV. ACTIVITIES
COOPERATING UNIT agrees that awarded grant funds will be used to undertake and
carry out within the terms of this Agreement certain projects involving one or more
of the essential activities eligible for funding under the Act. COUNTY agrees and
will assist COOPERATING UNIT in the undertaking of such essential activities by
providing the services specified in this Agreement. The parties mutually agree to
comply with all applicable requirements of the Act and the Regulations and other
relevant Federal and /or Minnesota statutes or regulations in the use of basic grant
amounts. Nothing in this Article shall be construed to lessen or abrogate COUNTY's
responsibility to assume all obligations of an applicant under the Act, including the
development of the Statement of Objectives and Projected Use of Funds pursuant to 24
CFR §570.300 et seq.
COOPERATING UNIT further specifically agrees as follows:
A. COOPERATING UNIT will in accord with a COUNTY - established schedule prepare
and provide to COUNTY, in a prescribed form, an annual request for the use
of Community Development Block Grant Funds consistent with this Agreement,
program regulations and the Urban Hennepin County Statement of Objectives.
B. COOPERATING UNIT acknowledges that, pursuant to 24 CFR §570.501 (b), it is
subject to the same requirements applicable to subrecipients, including
the requirement for a written Subrecipient Agreement set forth in 24 CFR
§570.503. The Subrecipient Agreement will cover the implementation
requirements for each activity funded pursuant to this Agreement and shall
be duly executed with and in a form prescribed by COUNTY.
C. COOPERATING UNIT acknowledges that it is subject to the same subrecipient
requirements stated in paragraph B. above in instances where an agency
other than itself is undertaking an activity pursuant to this Agreement on
behalf of COOPERATING UNIT. In such instances a written Third Party
Agreement shall be duly executed between the agency and COOPERATING UNIT
in a form prescribed by COUNTY.
D. COOPERATING UNIT shall implement all activities funded for each annual
program pursuant to this Agreement within Eighteen (18) months of the
authorization by HUD to expend the basic grant amount.
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1. Funds for all activities not implemented within Eighteen (18) months
shall be added to the next annual basic grant amount received by
COUNTY and allocated according to the procedures set forth in and
comply with all conditions of this Agreement.
' 2. Implementation period extensions may be granted upon request in cases
where the authorized activity has been initiated and /or subject of a
binding contract to proceed.
E. COOPERATING UNIT shall use funds provided pursuant to Section V. of this
Agreement to the extent practicable to undertake no more than Three (3)
grant- funded activities administered by the COOPERATING UNIT. Each
' activity shall have a budget of at least Seventy -five Hundred Dollars
($7,500.00), or the total amount of the planning allocation of COOPERATING
UNIT if less than Seventy -five Hundred Dollars ($7,500.00). A COOPERATING
1 UNIT may assign less than Seventy -five Hundred Dollars ($7,500.00) to an
activity when the activity is one that is programmed by at least one other
COOPERATING UNIT and administered by only one COOPERATING UNIT or the
COUNTY on behalf of the others, provided that the total activity budget is
1 at least Seventy -five Hundred Dollars ($7,500.00).
F. COOPERATING UNIT will take actions necessary to accomplish the community
development program and housing assistance goals as contained in the Urban
Hennepin County Comprehensive Housing Affordability Strategy (CHAS).
' G. COOPERATING UNIT shall ensure that all programs and /or activities funded
in part or in full by grant funds received pursuant to this Agreement
shall be undertaken affirmatively with regard to fair housing, employment
and business opportunities for minorities and women. It shall in
' implementing all programs and /or activities funded by the basic grant
amount comply with all applicable Federal and Minnesota Laws, statutes,
rules and regulations with regard to civil rights, affirmative action and
' equal employment opportunities and Administrative Rule issued by the
COUNTY.
H. COOPERATING UNIT that does not affirmatively further fair housing within
' its own jurisdiction or that impedes action by COUNTY to comply with its
fair housing certification shall be prohibited from receiving CDBG funding
for any activities.
1 I. C00PERATING UNIT shall participate in the citizen participation process as
established by COUNTY in compliance with the requirements of the Housing
and Community Development Act of 1974, as amended.
J. COOPERATING UNIT shall comply with all of the administrative guidelines of
the COUNTY now in effect or as hereafter promulgated.
K. COOPERATING UNIT shall prepare, execute, and cause to be filed all
documents protecting the interests of the parties hereto or any other
party of interest as may be designated by the COUNTY.
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L. COOPERATING UNIT has adopted and is enforcing:
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1. A policy prohibiting the use of excessive force by law enforcement
agencies within its jurisdiction against any individuals engaged in
non - violent civil rights demonstrations; and
2. A policy of enforcing applicable State and local laws against
physically barring entrance to or exit from a facility or location
which is the subject of such non - violent civil rights demonstrations
within its jurisdiction.
COUNTY further specifically agrees as follows: 1
A. COUNTY shall prepare and submit to HUD and appropriate reviewing agencies
on an annual basis all plans, statements and program documents necessary
for receipt of a basic grant amount under the Act. 1 .
B. COUNTY shall provide, to the maximum extent feasible, technical assistance
and coordinating services to COOPERATING UNIT in the preparation and
submission of the request for funding.
C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to
aid COUNTY in fulfilling its responsibility to HUD for accomplishment of
the community development program and housing assistance goals.
D. COUNTY shall upon official request by COOPERATING UNIT agree to administer 1
local housing rehabilitation grant programs funded pursuant to the
Agreement, provided that COUNTY shall receive Twelve percent (12%) of the
allocation by COOPERATING UNIT to the activity as reimbursement for costs
associated with the administration of COOPERATING UNIT activity.
E. COUNTY may, at its discretion and upon official request by COOPERATING 11 UNIT, agree to administer for a possible fee other programs and /or
activities funded pursuant to this Agreement on behalf of COOPERATING
UNIT.
F. COUNTY may, as necessary for clarification and coordination of program
administration, develop and implement Administrative Rules consistent with
the Act, Regulations, HUD administrative directives, and administrative
requirements of COUNTY.
V. ALLOCATION OF BASIC GRANT AMOUNTS
Basic grant amounts received by the COUNTY under Section 106 of the Act shall
be allocated as follows: 1
A. COUNTY shall retain Ten percent (10%) of the annual basic grant amount for
the undertaking of eligible activities. 1
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B. The balance of the basic grant amount shall be apportioned by COUNTY to
COOPERATING UNITS in accordance with the formula stated in part C of this
section for the purpose of allowing the COOPERATING UNITS to make requests
for the use of funds so apportioned. The allocation is for planning
purposes only and is not a guarantee of funding.
C. Each COOPERATING UNIT will use as a target for planning purposes an amount
which bears the same ratio to the balance of the basic grant amount as the
average of the ratios between:
' 1. The population of COOPERATING UNIT and the population of all
COOPERATING UNITS.
' 2. The extent of poverty in COOPERATING UNIT and the extent of poverty
in all COOPERATING UNITS.
' 3. The extent of overcrowded housing by units in COOPERATING UNIT and
the extent of overcrowded housing by units in all COOPERATING UNITS.
' 4. In determining the average of the above ratios, the ratio involving
the extent of poverty shall be counted twice.
' D. It is the intent of this section that said planning allocation utilize the
same basic elements for allocation of funds as are set forth in 24 CFR
§570.4. The COUNTY shall develop these ratios based upon data to be
furnished by HUD. The COUNTY assumes no duty to gather such data
independently and assumes no liability for any errors in the data
furnished by HUD.
' E. In the event COOPERATING UNIT does not request its planning allocation, or
a portion thereof, the amount not requested shall be added to the next
annual basic grant amount received by COUNTY and allocated according to
' the procedures set forth in and comply with all conditions of this
Agreement.
' VI. FINANCIAL MATTERS
A. Reimbursement to the COOPERATING UNIT for expenditures for the
' implementation of activities funded under the Act shall be made upon
receipt by the COUNTY of Summary of Project Disbursement form and Hennepin
County Warrant Request, and supporting documentation.
' B. All funds received by COUNTY under the Act as reimbursement for payment to
COOPERATING UNITS for expenditure of local funds for activities funded
under the Act shall be deposited in the County Treasury.
C. COOPERATING UNIT and COUNTY shall maintain financial and other records and
accounts in accordance with requirements of the Act and Regulations. Such
records and accounts will be in such form as to permit reports required of
the County to be prepared therefrom and to permit the tracing of grant
funds and program income to final expenditure.
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D. COOPERATING UNIT and COUNTY agree to make available all records and
accounts with respect to matters covered by this Agreement at all
reasonable times to their respective personnel and duly authorized federal
officials. Such records shall be retained as provided by law, but in no
event for a period of less than three years from the last receipt of
program income resulting from activity implementation. COOPERATING UNIT
and COUNTY shall perform all audits as may be required of the basic grant
amount and resulting program income as required under the Act and
Regulations.
E. COOPERATING UNIT shall inform COUNTY of any income generated by the
expenditure of CDBG funds it has received and shall pay to COUNTY all
program income generated except as derived from activities with an
approved revolving account. When program income is generated by an
activity that is only partially assisted with CDBG funds, the income shall
be prorated to reflect the percentage of CDBG funds used.
1. COUNTY will retain Ten percent (10%) of all program income paid to
COUNTY to defray administration expenses.
2. The remaining Ninety percent (90%) of the program income paid to
COUNTY shall be credited to the grant authority of COOPERATING UNIT
whose project generated the program income and shall be used for
fundable and eligible CDBG activities consistent with this Agreement.
3. COOPERATING UNIT and COUNTY are authorized to retain program income
derived from projects with an approved revolving account provided
such income is used only for eligible activities in accordance with
all CDBG requirements as they may apply.
4. COOPERATING UNIT shall maintain appropriate records and make reports
to COUNTY as may be needed to enable COUNTY to monitor and report to
HUD on the use of any program income.
5. Any program income that is on hand or received subsequent to the
closeout or change in status of COOPERATING UNIT shall be paid to
COUNTY.
F. Should an approved activity be determined to represent an ineligible
expenditure of grant funds, the COOPERATING UNIT responsible shall
reimburse the COUNTY for such ineligible expense.
1. All reimbursements for ineligible expenditures shall be added to the
next annual basic grant amount received by COUNTY and allocated
according to the procedures set forth in and comply with all
conditions of this Agreement unless decreed otherwise by a Federal
regulatory body or by final determination of a court of competent
jurisdiction.
2. When it is determined by the COUNTY that grant funds have been
expended on an eligible activity and through no fault of the
COOPERATING UNIT the project fails or is no longer eligible, the
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return of grant funds shall be reallocated in the same manner as
program income in Section VI.E. of this Agreement unless decreed
' otherwise by a Federal regulatory body or by final determination of
a court of competent jurisdiction.
' VII. REAL PROPERTY ACQUISITION OR IMPROVEMENT
The following provisions shall apply to real property acquired or improved in
whole or in part using CDBG funds.
A. COOPERATING UNIT shall promptly notify COUNTY of any modification or
change in the use of real property from that planned at the time of
acquisition or improvement including disposition and comply with 24 CFR
§570.505.
' B. COOPERATING UNIT shall reimburse COUNTY an amount equal to the current
fair market value (less any portion thereof attributable to expenditures
of non -CDBG funds) of property acquired or improved with CDBG funds that
' is sold or transferred for a use which does not qualify under the CDBG
regulations. Said reimbursement shall be provided to COUNTY at the time
of sale or transfer of the property. Such reimbursement shall not be
' required if the conditions of 24 CFR §570.503(b)(8)(i) are met and
satisfied. Fair market value shall be established by a current written
appraisal by a qualified appraiser. COUNTY will have the option of
' requiring a second appraisal after review of the initial appraisal.
C. Program income generated from the disposition or transfer of property
prior to or subsequent to the closeout, change of status or termination of
' this Agreement shall be treated as stipulated in Section VI. E. of this
Agreement.
VIII. METROPOLITAN CITIES
Any metropolitan city executing this Agreement shall defer their entitlement
status and become part of Urban Hennepin County.
' IX. OPINION OF COUNSEL
The undersigned, on behalf of the Hennepin-County Attorney, having reviewed this
' Agreement, hereby opines that the terms and provisions of the Agreement are fully
authorized under State and local law and that the Agreement provides full legal
authority for COUNTY to undertake or assist in undertaking essential community
development and housing assistance activities, specifically urban renewal and
publicly assisted housing.
Assistant County Attorney
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X. HENNEPIN COUNTY EXECUTION
The Hennepin County Board of Commissioners having duly approved this Agreement '
on , 1993, and pursuant to such approval and the proper County
official having signed this Agreement, the COUNTY agrees to be bound by the
provisions herein set forth.
Upon proper execution, this COUNTY OF HENNEPIN, STATE OF MINNESOTA
Agreement will be legally
valid and binding. By:
Chairman of its County Board
And:
Deputy /Associate County Administrator
Assistant County Attorney
Attest:
Date: Deputy County Auditor
APPROVED AS TO EXECUTION:
Assistant County Attorney
Date:
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XI. COOPERATING UNIT EXECUTION
COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing
body having duly approved this Agreement on , 1993, and pursuant
to such approval and the proper city official having signed this Agreement,
' COOPERATING UNIT agrees to be bound by the provisions of this Joint Cooperation
Agreement, contract A07483
' CITY OF
By:
1 Its
And:
Its
Date:
1 CITY MUST CHECK ONE:
1 The City is organized pursuant to:
Plan A _ Plan B _ Charter
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3/26/93
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
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DATE: RESOLUTION NO:
MOTION BY: SECONDED BY: 1
RESOLUTION AUTHORIZING STAFF TO ENTER INTO THREE -YEAR COOPERATION I
AGREEMENT WITH HENNEPIN COUNTY FOR COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
WHEREAS, the City of Chanhassen, Minnesota and the County of Hennepin have in 1
effect a Joint Cooperation Agreement for purposes of qualifying as an Urban County under the
United States Department of Housing and Urban Development Community Development Block
Grant and HOME Programs; and 1
WHEREAS, the City and the County wish to execute a new Joint Cooperation Agreement
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in order to continue to operation as an Urban County for purposes of the Community
Development Block Grant and HOME Program.
BE IT THEREFORE RESOLVED, that the current Joint Cooperation Agreement between 1
the City and the County be a new Joint Cooperation Agreement between the City and County
be executed effective October 1, 1993, and that the Mayor and City Manager be authorized and
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directed to sign the Agreement on behalf of the City.
Passed and adopted by the Chanhassen City Council this _ day of , 1993.
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A'ii'EST: 1
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Don Ashworth, City Clerk/Manager Donald J. Chmiel, Mayor
YES NO ABSENT 1
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