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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. 1 c: Larry Blackstad, Hennepin County 1 1 1 1 Is 1 ti 41 PRINTED ON RECYCLED PAPER 1 1 -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 1 1 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 1 1 1 1 1 1 1 1 1 URBAN COUNTY CDBG PROGRAM SCHEDULE 1 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 P Y Y 1 1 1 1 1 1 1 1 1 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. II 4 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. 2 1 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. 3 1` 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. 1 4 1 1 1 L. COOPERATING UNIT has adopted and is enforcing: • 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 1 5 1 II ' 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. 6 1 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 7 1 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 8 1 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: 9 f 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 1 1 1 1 1 1 1 1 3/26/93 10 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA I 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 I 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 I directed to sign the Agreement on behalf of the City. Passed and adopted by the Chanhassen City Council this _ day of , 1993. I A'ii'EST: 1 1 Don Ashworth, City Clerk/Manager Donald J. Chmiel, Mayor YES NO ABSENT 1 1 1 1 1 1