HomeMy WebLinkAbout1993-06-08 - AGENDA REPORTS - CDBG SEPERATION AGMT (2)AGENDA REPORT
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Item to be pr sented by:
CONSENT CALENDAR
DATE: June 8, 1993
SUBJECT: CDBG Separation Agreement
from the County of Los Angeles
Community Development Commission
DEPARTMENT: Parks, Recreation and Community Services
BACKGROUND
Raquel Garcia ✓��
The City of Santa Clarita became a Community Development Block Grant program entitlement
grantee/metropolitan City in FY 91-92 and presently receives its annual CDBG funds through the
U.S. Department of Housing and Urban Development. Prior to this, the City participated in the
Los Angeles Urban County CDBG program for the three year funding cycle of Fiscal Years 88-91.
Currently, the City has three open projects, totalling $85,720, with the Los Angles County
Community Development Commission (LAC/CDC). The projects consist of the following approved
activities:
1. Paint -up Rebate Program $10,000
2. East Newhall Public Improvements Phase 1
(balance) $57,261
3. Neighborhood Clean-up (abandoned vehicle
program) $18,159
TOTAL 85 720
In FY 92-93, the City was granted extension of contract expiration periods to June 30, 1993. Staff
has been impacted greatly by participating in the CDBG program simultaneously, through
LAC/CDC and HUD. Administering two programs at once creates duplication of effort to comply
with procedural and federal requirements for both programs.
APPROVED
Agenda Item:
Section 106 (C)(3) of the Community Development Act allows for the transferring of unobligated
grant funds from an urban county to a metropolitan city. The City has contacted LAC/CDC
requesting separation from participation in the Los Angeles Urban County CDBG program.
LAC/CDC has informed the City that they can agree to transfer responsibility for the
administration of the CDBG funds being transferred from the County's Letter of Credit to the City's
Letter of Credit; however, the City cannot request a formal separation from LAC/CDC without
Council approval and execution of a legally binding agreement between LAC/CDC and the City.
Section 570.510 outlines the applicable rules which apply to the transfer of the responsibility for
an activity from an urban county to an entitlement city. These rules would need to be included
as part of the agreement.
Staff recommends that the City pursue the execution of a separation agreement. Any outstanding
issues requiring resolution that may affect transition would be addressed as part of the separation
agreement between the City and LAC/CDC. Separation from the LAC/CDC will allow the City to
complete its CDBG activities more efficiently, without jeopardizing loss of any CDBG funds. Upon
completing the formal separation process, CDBG funds would be transferred to the same
activities and would be carried out through the HUD program.
RECOMMENDATION
Council to direct staff to:
1. prepare a letter to LAC/CDC requesting formal separation from the County of Los Angeles
Urban County program, and
2. direct City Manager to execute final separation agreement to allow the transfer of $85,720
in CDBG funds to the City's Letter of Credit.
RG:tan
Councftgenda68