1l. Recertification of Joint Coop with Hennepin County I CITYOF
.....................
I t
CHANHASSEN
1 ,kirjr, ,Hi 1 k,
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
I (612) 937-1900 • FAX (612) 937-5739
-S /
IMEMORANDUM :, x�` `
TO: Don Ashworth, City Manager .._,. _ ,
IFROM: Paul Krauss, Planning Director �C V s- •
DATE: June 25, 19 9 0 7/111.v _ ____
ISUBJ: CDBG Update/Resolution for Recertification of Joint
Cooperation Agreement with Hennepin County
II have attached a copy of the 1990 Urban Hennepin County
Subrecipient Monitoring Report for the programs ongoing in the City
I of Chanhassen, up to June 1990. The report is fairly straight
forward and simply reiterates the status of our ongoing projects.
As you are aware, work of the Senior Study is continuing at a rapid
I rate and we are proceeding towards our goal of reporting back to
the City Council late this summer. In addition, we have reserved
approximately $26, 000 of Year XVI funding for as yet unspecified
I senior activities. It is expected that proposals for expenditure
funds for senior related programs and capital expenditures will be
made along with the completed Senior Needs Study.
I We reported to the City Council in April that some $17, 000 had been
allocated in previous years for the housing rehabilitation fund
have not been expended. Staff discussed this matter with Hennepin
I County staff and concluded that although it appeared as though
there was no demand for the funding, it had not been advertised
recently. Prior to requesting a reallocation of these funds we
I wanted to give the program a fair shot and work with both
newspapers to get articles printed explaining it. The program does
have extraordinarily stiff qualification requirements. It may in
fact simply be irrelevant of virtually all housing in Chanhassen.
I I recently contacted Hennepin County staff and they indicated that
although the articles generated a few phone calls, no one appeared
to be serious in pursuing grant funding that was available. If
I there are no positive responses by July 1st, staff will ask the
Council to consider reallocation of the funding.
I The last item pertaining to the CDBG program is that the annual
certification for Hennepin County to act on behalf of the City
expires on September 30th. As the City Council may be aware,
Chanhassen is a highly unusual case in that we are covered by the
I
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11 Don Ashworth
June 25, 1990
Page 2
' Hennepin County program, although obviously only a very small
portion of our community is contained within it. This has proven
to have tremendous advantages for the City since we become eligible
' for CDBG funding as an urban community with all of the paper work
handled by Hennepin County. In addition as an urban community,
Hennepin County has guaranteed funding under the program. Were we
' to opt out, we would have to rely on our own devices to file
federal grant applications that would have to complete with other
communities in the state. The experience has been recently in
' Minnesota that virtually all of the funding is directed towards
areas such as the iron range, thus it is likely if not probable
that we would receive diminished funding and possibly no funding at
' all. Therefore, it is staff's recommendation that we continue the
arrangement that has served us well over the past twelve years.
Hennepin County has prepared a resolution supporting
recertification. It is attached with the associated Joint
Cooperative Agreement for your review.
STAFF RECOMMENDATION
' Staff recommends that the City Council approve a resolution
supporting the recertification of Hennepin County and authorize
staff to enter into the Joint Cooperative Agreement.
1
OFFICE OF PLANNING & DEVELOPMENT
-15—
Development Planning Unit
822 South Third Street, Suite 310 II
HENNEPIN Minneapolis, MN 55415
(612) 348-6418 II
1
May 25, 1990
II
The Honorable Don Chmiel
Mayor of Chanhassen I
690 Coulter Drive
Chanhassen, MN 55317
Dear Mayor Chmiel: 1
II
The certification of Hennepin County as an Urban County Community Development II Block Grant entitlement recipient of funds expires on September 30--the end
of Fiscal Year 1990. In order to gain recertification and continue to
receive CDBG funds for Fiscal Years 1991, 1992 and 1993, a new Joint Coopera-
tion Agreement must be executed between communities wishing to participate
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and Hennepin County. This process will take place this summer and be
complete by September 1.
Your community has the option of continuing to be a participant in the Urban II
Hennepin County CDBG program. Your option will be exercised at the time of
execution of the new Joint Cooperation Agreement. II
As a split place- a community located partly in Hennepin County and partly in
another county--the entire area of your community will be included in the
program for the mandatory three-year period covered by the new agreement-- II Fiscal Years 1991, 1992 and 1993, or Program Years XVII, XVIII and XIX.
You will be kept informed of the recertification process as it evolves. We
look forward to your continued participation.
II
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Sincerely,
MP
II
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Robert Isaacson II Planning Supervisor
RI:tf - - -
cc: VPaul Krauss MAY 2 91993 II
HUD Area Office
CITY.OF CHAANHASSEN I
HENNEPIN COUNTY , '
an equal opportunity employer
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DATE: June 20, 1990 JUN 21 19n�
TO: Paul Krauss, City of Chanhassen �1
H EN N EPI N CM.OF CHANHASSEN
FROM: Larry Blackstad, fice f 1,,2 & Development
SUBJECT:
1990 Urban nnepin unty Subrecipient Monitoring '
Report
Attached is a copy of the 1990 Urban Hennepin County Subrecipient monitoring '
report covering current Urban Hennepin CDBG funded activities within your
community. Please review the report, and, should there be any questions,
contact me at 348-5859.
LB:tf
Enclosure '
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1 URBAN HENNEPIN COUNTY CDBG MONITORING 1989/90
COMMUNITY: Chanhassen
' CONTACT PERSON: Mr. Paul Krauss, City Planner
DATE OF MONITORING: June 19, 1990
' ACTIVITIES REVIEWED: Yr. XIV - 40009 Senior Needs Study
Yr. XV - 50014 Handicapped Accessibility/Lake Susan
Yr. XV - 50015 Rehabilitation of Private Property
' Yr. XV - 50016 South Shore Senior Center
COMMENTS: The Senior Needs Study is nearing completion. The study is
' providing the city with an expanded understanding of its senior population and
their interest in community services. The city has programed $26,112 in Year
XVI funds to start implementation of identifying needs which the community
can respond to. The Lake Susan Handicapped Accessibility project will provide
mobility impaired individuals with an accessible fishing pier and supporting
parking area. Construction of the project is scheduled for the fall of 1990.
' In cooperation with county staff, which directly administer the program, this
spring the city undertook an advertising effort for the available housing
rehabilitation grants. To date no applications have been received for the
' available funds, and if none are submitted by July 1, 1990, the city plans to
discontinue the program and reprogram the project balance.
' The Southshore Senior Center was reviewed only to ensure that the city was
aware that the center was relocating due to the Minnetonka School District's
need for the center's space.
I FINDING: The city of Chanhassen continues to discharge its subgrantee •
responsibilities in accord with the requirements of the CDBG program and the
administrative guidelines of Hennepin County.
SUBGRANTEE MONITORED BY: t�___`.Ammon/
DATE: 6/6.57 -
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OFFICE OF PLANNING & DEVELOPMENT
I
-75 Development Planning Unit
HENNEPIN 822 South Third Street, Suite 310
Minneapolis, MN 55415
_IL 612 348-6418 II
1
June 20, 1990 .
II
Mr. Don Ashworth
City Clerk-Manager I
City of Chanhassen
690 Coulter Drive
Chanhassen', MN 55317 I
Dear Mr. Ashworth:
Every three years Hennepin County must be certified by the U.S. Department of
II
Housing and Urban Development as an urban county to continue to receive an
annual entitlement grant through the Community Development Block Grant program.
The process to gain certification for Fiscal Years 1991, 1992 and 1993 is now
II
underway. The key element in the process is the execution of a Joint
Cooperation Agreement between the County and each ,community therein that wishes
to participate in the program and therefore be eligible to undertake important II local activities with CDBG.funds.
The accompanying three copies of the Joint Cooperation Agreement for Fiscal II Years 1991, 1992 and 1993, Contract Number A04730, is provided for your
execution should you elect to remain a participant in the Urban Hennepin County
CDBG program for the next three years. A sample resolution for your governing
body to pass to authorize execution of the agreement is included for your
II
convenience. A certified copy of the authorizing resolution must be returned
with all three copies of the executed agreement by Friday, August 17, 1990 to:
Hennepin County Office of Planning and Development I
822 South 3rd Street
Suite 310
Minneapolis, MN 55415 I
That date is necessary to assure execution by the County Board and transmittal
of a fully executed agreement to HUD by the imposed September 4, 1990 deadline.
II
One will be returned to you by the same date.
The new agreement incorporates the amendments that were appended to the last
agreement. Also included are several changes to accommodate new requirements II
directed by HUD, such as emphasizing affirmative action to further fair housing
and clarifying the relationship between cooperating communities and the County
as subrecipient and recipient. I
HENNEPIN COUt TIYY2199j
an equal opportunity employer
L1 11,OF CHAM—tA5SEN1
June. 20, 1990
11 Page 2
il Of most significance is the elimination of the discretionary account. The
unexpended funds which made up the account will now be added to the annual basic
grant and programmed for use along with the development of the annual program.
I This change reflects the general improvement in expenditure rate and simplifies
program administration.
Should your community wish to remain in the Urban Hennepin County CDBG program
II for Fiscal Years 1991, 1992 and 1993, it need only pass a facsimile of the
sample resolution, execute the agreement and return them as instructed. Should
it decide not to execute the agreement it would not receive CDBG funding through
IIthe Urban Hennepin County program beginning with Fiscal Year 1991.
We look forward to your continued participation with us in the CDBG program.
ISincerely,
II re 16 QGC \
Ro Robert Isaacson
Planning Supervisor
IEnclosure
cc: HUD
Paul Krauss
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OFFICE OF PLANNING & DEVELOPMENT
Development Planning Unit
822 South Third Street, Suite 310
HENNEPIN
ILMinneapolis, MN 55415
(612) 348-6418
1
June 20, 1990
Mr. Don Ashworth
City Clerk-Manager
City of Chanhassen
690 Coulter Drive
Chanhassen', MN 55317 '
Dear Mr. Ashworth:
Every three years Hennepin County must be certified by the U.S. Department of '
Housing and Urban Development as an urban county to continue to receive an
annual entitlement grant through the Community Development Block Grant program.
The process to gain certification for Fiscal Years 1991, 1992 and 1993 is now
underway. The key element in the process is the execution of a Joint
Cooperation Agreement between the County and each community therein that wishes
to participate in the program and therefore be eligible to undertake important
local activities with CDBG funds.
The accompanying three copies of the Joint Cooperation Agreement for Fiscal
Years 1991, 1992 and 1993, Contract Number A04730, is provided for your
execution should you elect to remain a participant in the Urban Hennepin County
CDBG program for the next three years. A sample resolution for your governing
body to pass to authorize execution of the agreement is included for your
convenience. A certified copy of the authorizing resolution must be returned
with all three copies of the executed agreement by Friday, August 17, 1990 to:
Hennepin County Office of Planning and Development '
822 South 3rd Street
Suite 310
Minneapolis, MN 55415
That date is necessary to assure execution by the County Board and transmittal
of a fully executed agreement to HUD by the imposed September 4, 1990 deadline. '
One will be returned to you by the same date.
The new agreement incorporates the amendments that were appended to the last
agreement. Also included are several changes to accommodate new requirements
directed by HUD, such as emphasizing affirmative action to further fair housing
and clarifying the relationship between cooperating communities and the County
as subrecipient and recipient.
REGELvaLs
HENNEPIN COUNTNN 2 21993
an equal opportunity employer
CiT_x OF CHANHASSEN '
June 20, 1990
Page 2
ilOf most significance is the elimination of the discretionary account. The
unexpended funds which made up the account will now be added to the annual basic
grant and programmed for use along with the development of the annual program.
I This change reflects the general improvement in expenditure rate and simplifies
program administration.
I Should your community wish to remain in the Urban Hennepin County CDBG program
for Fiscal Years 1991, 1992 and 1993, it need only pass a facsimile of the
sample resolution, execute the agreement and return them as instructed. Should
it decide not to execute the agreement it would not receive CDBG funding through
IIthe Urban Hennepin County program beginning with Fiscal Year 1991.
We look forward to your continued participation with us in the CDBG program.
ISincerely,
Oro
/vw�
I
Robert Isaacson •
Planning Supervisor
IIEnclosure
cc: HUD
II Paul Krauss
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RESOLUTION NO. I
CITY OF CHANHASSEN, MINNESOTA
WHEREAS, the City of Chanhassen, Minnesota and the County of Hennepin
have in effect a Joint Cooperation Agreement, County Contract No. 70461, for
the purposes of qualifying as an Urban County under the United States Depart-
ment of Housing and Urban Development Community Development Block Grant
program; and
WHEREAS, the City and the County wish to terminate the current Agreement
and execute a new Joint Cooperation .Agreement, County Contract No. A04730, to
reconstitute Urban Hennepin County for purposes of the Community Development
Block Grant program.
BE IT RESOLVED, that the current Joint Cooperation Agreement between the
City and the County, County Contract No. 70461, be terminated effective
September 30, 1990, and a new Joint Cooperation Agreement between the City and
the County, County Contract No. A04730, be executed effective October 1, 1990,
and that the Mayor and the be authorized and
directed to sign the Agreement on behalf of the City.
The question was on the adoption of the resolution, and upon a vote being
duly taken thereon, the following voted in favor thereof:
and, - I
the following voted against the same:
WHEREUPON SAID RESOLUTION WAD DECLARED DULY PASSED AND ADOPTED THIS DAY
OF , 1990. '
ATTEST: CITY OF CHANHASSEN '
BY
ITS
1
Contract No. 1t014-730
' JOINT COOPERATION.AGREEMENT
' THIS AGREEMENT made and entered into by and between the COUNTY OF
HENNEPIN, tate of Minnesota, hereinafter referred to as "COUNTY," and the
CITY OF (Flan ha ssiri , hereinafter referred to as "COOPERATING
UNIT," said parties to this Agreement each being governmental units of the
State of Minnesota, and is made pursuant to Minnesota Statutes, Section
471.59;
' YITNESSETH;
COOPERATING UNIT and COUNTY agree that it is desirable and in the
interests of their citizens that COUNTY secure Community Development Block
IGrant 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.
I. DEFINITIONS
' The definitions contained in 42 USC 5302 of the Act and 24 CFR Part 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.sea. ) .
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.
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.
T
• II. PURPOSE it
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 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 Grants from Fiscal Years 1991, 1992 and 1993.
III. AGREEMENT • I
A. The term of this Agreement is for a period commencing on the
effective date of October 1, 1990, 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 1993 as authorized by HUD subsequent to the effective date and
for such additional time as-may be required for the expenditure of
funds granted to the County for such period.
B. Notwithstanding any other provision of this Agreement, this Agree- '
went shall be terminated at the end of the three-year program period
during which HUD withdraws its designation of COUNTY as an Urban
County under the Act. ,
C. 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
August 17, 1990.
D. COOPERATING UNIT and COUNTY shall take all actions necessary to
assure compliance with the urban county's certification required by
Section 104(b) of the Title I of the Housing and Community Develop-
went 'Act of 1974, as amended, including Title VI of the Civil Rights
Act of 1964; the Fair Housing Act, Title VIII of the Civil Rights .
Act of 1968, Section 109 of Title I of the Housing and Community
Development Act of 1974, and other applicable laws.
IV. ACTIVITIES
COOPERATING UNIT agrees that awarded grant funds will be used to under-
take 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 Agree-
ment. 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 develop-
ment of the Statement of Objectives and Projected Use of Funds pursuant to 24
CFR 570.300 et.seq.
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1 A. COOPERATING UNIT further specifically agrees as follows:
1. 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.
2. 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 Sub-
recipient Apreement set forth in 24 CFR 570.503. The Sub-
recipient 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.
3. COOPERATING UNIT acknowledges that it is subject to the same
subrecipient requirements stated in 2. 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.
' 4. 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.
(a) 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.
(b) 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.
5. COOPERATING UNIT shall use funds provided pursuant to Section
V. of this Agreement 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) , or the total amount of the planning alloca-
tion of COOPERATING UNIT if less than seventy-five hundred
dollars ($7,500) . A COOPERATING UNIT may assign less than
seventy-five hundred dollars ($7,500) to an activity when the
1 activity is one that is programmed by at •least one other
COOPERATING UNIT and administered by only one COOPERATING UNIT
on behalf of the others, provided that the total activity
' budget is at least seventy-five hundred dollars ($7,500) .
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• 6. COOPERATING UNIT will take actions necessary to accomplish the
community development program and housing assistance goals as
contained in the Urban Hennepin County Housing Assistance Plan.
7. COOPERATING UNIT shall ensure that all programs and/or activi-
ties 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. 1
8. 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 activities.
9. COOPERATING 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. ,
10. COOPERATING UNIT shall comply with all of the administrative
guidelines of the COUNTY now in effect or as hereafter promul-
gated. '
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11. .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.
B. COUNTY further specifically agrees as follows:
1. COUNTY shall prepare and submit to HUD and appropriate review-
ing agencies on an annual basis all plans, statements and
• program documents necessary for receipt of a basic grant amount
under the Act.
2. COUNTY shall pr"ovide, to the maximum extent feasible, technical
assistance and coordinating services to COOPERATING UNIT in the
preparation and submission of the request for funding.
3. COUNTY shall provide ongoing technical assistance to COOPERAT- 1
ING UNIT to aid COUNTY in fulfilling its responsibility to HUD
for accomplishment of the community development program and
housing assistance goals. '
• 4. COUNTY shall upon official request by COOPERATING UNIT agree to
administer 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. ,
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15COUNTY may, as necessary for clarification and coordination of
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' program administration, develop and implement Administrative
Rules consistent with the Act, Regulations and HUD administra-
II tive directives.
V. ALLOCATION OF BASIC GRANT AMOUNTS.
11 Basic grant amounts received by the COUNTY under the Act shall be
allocated as follows:
IA. COUNTY shall retain ten percent (10%) of the annual basic grant
amount for the undertaking of eligible activities.
1 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
I 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
II amount which bears the same ratio to the balance of the basic grant
amount as the average of the ratios between:
II 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
Ipoverty in all COOPERATING UNITS.
3. The extent of overcrowded housing by units in COOPERATING UNIT
I and the extent of overcrowded housing by units in all COOPERAT-
ING UNITS.
II 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
I 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
I 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 alloca-
tion, 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
Iall conditions of this Agreement.
VI. FINANCIAL MATTERS
1 A. Reimbursement to the COOPERATING UNIT for expenditures for the
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implementation of activities funded under the Act shall be made
II upon receipt by the COUNTY of Summary of Project Disbursement form
and Hennepin County Warrant Request, and supporting documentation.
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" 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.
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 implementa-
tion. 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. II
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 • II
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 COOPERAT-
ING UNIT whose project generated the program income and shall
be used for fundable and eligible CDBG activities consistent
with this Agreement.
3. COOPERATING UNIT is 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 II
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.
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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 -
Icourt 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 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 ACOUISITION 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 the greater of the actual
sale proceeds or 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.
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, paragraph E of this Agreement.
VIII. METROPOLITAN CITIES
' Any metropolitan city executing this Agreement shall defer their entitle-
ment status and become part of Urban Hennepin County.
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Ir IX. EXECUTION
COOPERATING UNIT, having signed this Agreement, and the Hennepin County
Board of Commissioners having duly approved this Agreement on
_, 19_, and pursuant to such approval and the proper County official
having signed this Agreement, the parties hereto agree 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
`/t Deputy/Associate County Administrator II
'-Assistant County Attorney
Attest:
Date: �. G/ Deputy County Auditor
APPROVED AS TO EXECUTION: CITY OF I
By:.
Assistant County Attorney Its '
Date: And:
Its I
CITY MUST CHECK ONE:
• The City is organized pursuant to:
_ Plan A _ Plan B Charter '
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