TO:
FROM:
DATE:
CITY COUNCIL
CITY ADMINISTRATOR
MAY 16, 2023
Placentia Cit Council
AGENDA REPORT
SUBJECT: APPROVE THE METROPOLITAN URBAN COUNTY COOPERATION AGREEMENT AMENDMENT NO. 3 BETWEEN THE COUNTY OF ORANGE AND
THE CITY OF PLACENTIA FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FISCAL
IMPACT: POTENTIAL REVENUE OF UP TO $323,000 PER FISCAL YEAR FOR 2024-25, 2025-26, AND 2026-27
SUMMARY:
The County of Orange OC Community Resources (OCCR) is currently in the process of re -qualifying for entitlement status as an Urban County. This entitlement status and the number of cities participating are part of determining Community Development Block Grant (CDBG) funding for an Urban County. Utilizing the 2020 census data, the City's population of 51,824 qualifies the City to be categorized as a Metropolitan City. As a Metropolitan City, the amount of CDBG funding received would be established and provided directly by the U.S. Department of Housing and Urban Development (HUD). For Fiscal Year (FY) 2023-24, the anticipated funding amount is $322,998. The City will be able to allocate funding to specific programs that support viable urban communities including economic development, public service programs, public facilities improvements, housing rehabilitation, and staff administration. This action will approve the Metropolitan Urban County Cooperation Agreement Amendment No. 3 between OCCR and the City of Placentia for CDBG for FY 2024-25, 2025-26, and 2026-27 respectively.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal, under Goal #1 to Ensure Long -Term Fiscal Sustainability, under Objective #1.2, which is to Continue efforts to seek and obtain new sources of state and federal grants.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve a Metropolitan Urban County Cooperation Agreement Amendment No. 3 between the County of Orange and the City of Placentia for Community Development Block Grant Funds; and
2. Authorize the City Administrator to execute the agreement in a form approved by the City Attorney.
1.h.
May 16, 2023
City Council Agenda
May 16, 2023
DISCUSSION:
The Federal Housing and Community Development Act of 1974, provides CDBG funds for projects that promote the development of viable urban communities by providing suitable living environments for persons of low and moderate income. As a Metropolitan City, the City of Placentia will no longer be required to compete with twelve (12) other Orange County cities to apply and receive CDBG funds through the County of Orange. The City's funding allocation will be annually established and received directly by HUD. As illustrated in the following table, CDBG funds received by the County have supported several programs. These programs include the Facade Improvement Program, Old City Hall Improvements, Neighborhood Park Improvement Projects, and the Housing Rehabilitation Program.
Amount
2021/22 Housing Rehabilitation Program
$52,500
2021/22 Facade Improvement Program $55,000
2021/22 Neighborhood Park Improvement $141,744 $345,546 2021/22 Staff Salaries: Neighborhood Services, Senior Center & $96,302 Grant Admin
2022/23 Housing Rehabilitation Program
$52,500
2022/23 Facade Improvement Program $50,000
2022/23 Neighborhood Facility Improvement Project (ADA/Public $140,291 Safety)
2022/23 Staff Salaries: Neighborhood Services, Senior Center & $96,723 Grant Admin
2023/24 Housing Rehabilitation Program $52,500
2023/24 Facade Improvement Program $180,778
2023/24 Staff Salaries: Neighborhood Services, Senior Center & $89,720 Grant Admin
$339,514
$322,998
As a Metropolitan City, under the County's Urban County Program, the amount of CDBG funding received would be based on the City's total population as established by HUD. The City will be able to determine the specific programs and projects in which to allocate the funding. Eligible projects and programs must continue to adhere to the established performance objectives set by HUD. This includes creating a suitable living environment that benefits communities, families or individuals that are from designated low to moderate income areas of the City. Projects must also achieve specified performance outcomes such as improving accessibility through removal of physical barriers or promoting livable and viable neighborhoods by providing a benefit to low to moderate income residents.
Under the County's Urban County Program, the County will agree to file, on behalf of the City, several HUD mandated reports including the Annual Action Plan (AAP), Five Year Consolidated Plan, Consolidated Annual Performance and Evaluation Report (CAPER), Analysis of Impediments (Al), Citizen Participation Plan (CPP), and the Integrated Disbursement and Information System (IDIS) management report. Based on the intensive reporting requirements, the City will allocate ten percent (10%) of its allocation toward OCCR's administrative cost per fiscal year for the administration and filing of the required HUD reports.
City Council Agenda
May 16, 2023
FISCAL IMPACT:
The total CDBG amount provided to OCCR for FY 2023-24 is $35,888. The remaining CDBG amount of $322,998 will be allocated to the City for specific programs that support viable urban communities, including economic development, public service programs, public facilities improvements, housing rehabilitation, and City Staff administration.
Submitted by: Reviewed and approved:
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Jeann, t ftega JenniferLampman
Assistant to the City Administrator/ Director of Finance Economic Development Manager
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Reviewed and approved:
Damien R. Arrula
City Administrator
Attachment:
Metropolitan Urban County Cooperation Agreement Amendment No. 3 for FY 2024-25 to FY 2026-27