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HomeMy WebLinkAbout09899 ORDINANCE NO. 9899 AN ORDINANCE APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE COUNTY OF PUEBLO RELATING TO THE PARTICIPATION IN AND CONDUCT OF THE FEDERAL HOME INVESTMENT PARTNERSHIPS PROGRAM AND PROVIDING FOR THE EXECUTION THEREOF BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Consortium Agreement between the City of Pueblo, a Municipal Corporation, and the County of Pueblo dated March 8, 2021 (“Agreement”), relating to participation in and the conduct of the Federal HOME Investment Partnerships Program for Federal fiscal years 2021-2024, incorporated herein and attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The Mayor is hereby authorized to execute the Agreement on behalf of the City, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 4. This Ordinance shall become effective immediately upon final passage and approval. Action by City Council: Introduced and initial adoption of Ordinance by City Council on March 8, 2021 . Final adoption of Ordinance by City Council on March 22, 2021 . President of City Council Action by the Mayor: ☒ Approved on March 24, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST Acting City Clerk City Clerk’s Office Item # R-5 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: March 8, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Brenda Armijo, City Clerk FROM: Bryan Gallagher, Director of Housing and Citizen Services SUBJECT: AN ORDINANCE APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND THE COUNTY OF PUEBLO RELATING TO THE PARTICIPATION IN AND CONDUCT OF THE FEDERAL HOME INVESTMENT PARTNERSHIPS PROGRAM AND PROVIDING FOR THE EXECUTION THEREOF SUMMARY: The Intergovernmental Agreement between the City of Pueblo and the County of Pueblo for a joint funding effort under the Federal HOME Investment Partnerships Act Grant to provide safe, sanitary housing, for low- and moderate-income families. PREVIOUS COUNCIL ACTION: Council has consistently renewed the HOME Consortium Intergovernmental Agreement in 2018, 2015, 2012, 2009, and 2006. BACKGROUND: The City of Pueblo and Pueblo County, since the inception of the Federal HOME Program in 1992, have operated under a Consortium Agreement whereby the HOME Funds have been shared on a percentage basis. While the City of Pueblo is the Entitlement Community there have been mutual benefits in continuing this administrative arrangement. The City as the Participating Jurisdiction acts in a representative capacity, and therefore assumes overall responsibility for ensuring that the Consortium’s HOME Program (City and County programs) is carried out in compliance with the requirements of the HOME Program regulations, including requirements concerning a Consolidated Plan. The City assumes this responsibility and there is no cost to the County. FINANCIAL IMPLICATIONS: By entering into the Consortium, the City of Pueblo receives more funding than would be allocated to it under the Entitlement Community Allocation Formula. The County receives HOME funding that it would not otherwise be eligible to receive on a non-competitive basis. The funds are split on an 86/14 basis after set-asides for administrative costs and funding of Community Housing Development Organizations (“CHDO”). BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: The City could elect not to enter into a consortium with Pueblo County. RECOMMENDATION: Approval of the Ordinance. Attachments: 2021-2024 Consortium Agreement CONSORTIUM AGREEMENT THIS AGREEMENT is made and entered into this March 8, 2021, effective as of October 1, 2021, by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as the "City"), and Pueblo County, Colorado (hereinafter referred to as the "County"). WHEREAS, Section 29-1-203, C.R.S., authorizes governments to cooperate or contract with one another to provide any function, service, or facility lawfully authorized to each of the cooperating or contracting entities; and WHEREAS, the City and the County are lawfully authorized to provide housing and community-based services of the type contemplated by this Agreement; and WHEREAS, it would serve the public welfare and be in the best interest of the citizens of Pueblo County, Colorado for the City and the County to continue in a consortium and cooperate to undertake housing assistance activities as part of the Federal HOME Investment Partnerships Program (hereinafter referred to as the "HOME Program"); and WHEREAS, the parties desire to enter into this intergovernmental agreement setting forth the terms and conditions under which the parties shall cooperate in providing home and community- based services to the citizens of Pueblo County under such HOME Program. NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. During the term of this Agreement, the City and the County agree to cooperate to undertake or to assist in undertaking housing assistance activities for the HOME Program, through the formation of a consortium consisting of the City and the County. The City or its designee shall act in a representative capacity on behalf of the consortium and all entities comprising the consortium. In such capacity, the City shall assume overall responsibility for ensuring the consortium's HOME Program is carried out in compliance with the requirements of the HOME Program including, but not limited to, those requirements concerning a Consolidated Plan ("CP"). Additionally, the City, as representative of the consortium, shall select one or more Community Housing Development Organizations ("CHDO") to receive required set aside funding, if any, and shall act as the contact person so far as all dealings with the state and federal governments concerning the HOME Investment Partnerships Program are concerned. 2. Notwithstanding the designation of the City as representative of the consortium, as between the parties hereto, each party shall retain authority over its respective housing programs and the agencies carrying out such programs on behalf of each party. As such, and subject to the terms of this Agreement, each party shall set its own priorities for the use of any grant monies received by the consortium and shall retain the right to determine how those funds attributed to each entity shall be expended in meeting those priorities. To that end, and to the extent lawful under applicable grant regulations, the parties mutually agree that, after deduction of the fifteen percent (15%) set aside for CHDO's as required by regulation, the parties will divide any and all remaining funding received by the consortium under the HOME Program, with eighty-six percent (86%) of such remaining funding being allocated to the City, and fourteen percent (14%) of such remaining funding 1 being allocated to the County. This funding allocation is based upon the population of the City and the population of those areas of Pueblo County outside of City boundaries. Currently, the contribution rate of each party's required non-federal matching funds is 25% of the eligible activity conducted by that party. The matching rate shall be determined annually in accordance with the applicable match requirements established by the U.S. Department of Housing and Urban Development ("HUD") for the eligible activities conducted by that party in accordance with the CP. 3. The consortium created under this cooperative Agreement shall prepare a CP for submittal to the appropriate entity of federal and/or state government in order to receive HOME Program funds and other federal/state funds, as applicable, and to become a participating jurisdiction in the HOME Program. The CP shall describe the consortium's five-year strategy for addressing housing, homeless, and supporting housing needs covering all of Pueblo County. The CP shall provide for a separate description of how the City and the County each intend to carry out the five- year strategy in their respective areas of jurisdiction. Such descriptions shall include, but not be limited to, the determination, by each entity, of that entity's priorities for use of grant monies and a report as to how such monies will be used to meet those priorities. Notwithstanding the fact that the CP will be submitted by the consortium, each party retains the right, subject to compliance with applicable Federal regulations, to determine its respective priorities and how that party's portion of the grant monies will be expended in meeting those priorities. In providing services hereunder, the parties each agree to affirmatively further fair housing. 4. This Agreement shall commence October 1, 2021, and, unless sooner renewed or extended by separate written document between the parties, shall terminate September 30, 2024; provided, however, that this Agreement shall continue in effect until the HOME funds from each of the three Federal fiscal years beginning with the fiscal year commencing October 1, 2021 have been expended for eligible activities. The term of this Agreement covers the period necessary to carry out all activities that will be funded from funds awarded for three Federal fiscal years beginning with the Federal fiscal year commencing October 1, 2021. Furthermore, the City and the County shall remain in the consortium for the entire term of this Agreement. The term of the Agreement notwithstanding, neither party shall be obligated to carry out its respective responsibilities under this Agreement and/or the CP until such time as the funding necessary to carry out such obligations is forthcoming and has been appropriated at the federal, state, and local levels, including, but not limited to, local funding necessary to carry out any matching funding responsibilities of the City or the County for each year during the term of this Agreement. 5. The designation of the City as the representative of the consortium notwithstanding, each party assumes full responsibility for carrying out its respective obligations under this Agreement and the CP, including, but not limited to, insuring that HOME Program funds are expended in accordance with applicable federal, state, and local laws or regulations. To that end, each party agrees to hold harmless the other party, its officers, employees and agents, from and against any and all demands by HUD for repayment of grant funds, claims, damages, liability, and court awards including costs, expenses, and attorney's fees, incurred as a result of any act or omission by that party, its officers, employees, agents, subcontractors, or assignees arising out of, or in any way connected with, the performance or non-performance of that party under this Agreement or the CP. All demands by HUD for repayment of grant funds, claims, damages, liability, and court awards including costs, expenses, and attorney's fees, incurred as a result of any act or omission of a party, its officers, employees, agents, subcontractors, or assignees arising out of, or in any way connected 2 with, the performance or non-performance of that party under this Agreement or the CP, shall be the responsibility of that party. 6. Each party certifies and warrants that none of its directors, officers, or employees have or will derive any personal or financial interest or benefit from the activity or activities conducted pursuant to this Agreement, nor have an interest in any contract or agreement with respect thereto, nor the proceeds thereunder, either for themselves or for those with whom they have family or business ties, during their tenure and for one year thereafter. Each party shall avoid all conflicts of interest which are prohibited by applicable federal regulations as presently promulgated, and as the same may be revised from time to time in the future. 7. Each party shall maintain records as to all services provided and expenses incurred in performing programs conducted pursuant to the HOME Program and keep complete accounting records. Accounting records shall be kept on a generally recognized accounting basis and as requested by either party's auditor. Each party agrees to comply with all applicable uniform administrative requirements. The City, the County, HUD, the Comptroller General of the United States, the Inspector General of HUD, and any of their authorized representatives shall have the right to inspect and copy, during reasonable business hours, all books, documents, papers, and records kept by either party which relate to this Agreement for the purpose of making an audit or examination. 8. Each party shall maintain files containing information which shall clearly document all activities performed in conjunction with this Agreement including, but not limited to, financial transactions, conformance with assurances, activity reports, and Program income. These records shall be retained by each party for a period of five years after the completion of the activities conducted under the Home Program. 9. Nothing contained herein, nor the relationship of the parties, shall make or be construed to make either party or its agents or employees the agents or employees of the other party. Each party shall be solely and entirely responsible for its acts and the acts of its agents, employees, and subcontractors. 10. This Agreement constitutes the entire agreement between the parties, and supersedes and replaces all prior and contemporaneous agreements, representations, and understandings of the parties. No variation or modification of this Agreement, and no waiver of any of this Agreement's provisions or conditions, shall be binding unless made in writing and signed by duly authorized officers of both the City and the County. This Agreement shall be binding on, and inure to the benefit of, the parties to it and their respective successors and assigns. Any delegation or assignment of this Agreement by either party without the prior written consent of the other party shall be void. The City is authorized on behalf of the parties to amend the agreement for reasons approved by HUD. This Agreement shall be governed by and construed according to the laws of the State of Colorado. 11. The program year start date for the consortium is October 1, 2021 and the City and County are on the same program year for CDBG and HOME. This Agreement does not provide for automatic renewal for any successive three-year qualification period after the term specified in paragraph 4. 3 IN WITNESS WHEREOF, the parties have entered into this Agreement the day and year first written above. ATTEST: PUEBLO OUNTY, COLORADO By: AM Clerk to e Board / Chairperson, Board of C• y Commissioners ATTEST: CITY OF PUEBLO, A MUNICIPAL CORPORATION P2th il By: '174.‘7_446./ City Clerk Nicholas A. Gradisar, ayor 4