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COOPERATION AGREEMENTS WiTH CITIES AND RESOLUTION FOR METROPOLITAN CITY/URBAN COUNTY JOINT RECEIPIENT REQUEST FOR PARTICIPATION iN THE CDBG PROGRAM FOR FISCAL YEARS 2003-2004, 2004-2005, 2005-2006 July 2, 2002 • Page 2 of 2 CDBG regulations permit cities with a population of less than 50,000 to participate under a County CDBG program. By participating, the cities' demographics increase the County's CDBG grant. The funding received for these cities is then earmarked for those cities through a Cooperation Agreement with the County. To participate under the County's program, cities must enter into a three-year Cooperation Agreement. All of the County's cities with population of less than 50,000 have requested to participate. These cities include: Adelanto, Barstow, Big Bear Lake, Colton, Grand Terrace, Highland, Loma Linda, Montclair, Needles, Twentynine Palms, Yucaipa and the Town of Yucca Valley. Cities with populations in excess of 50,000 are recognized by HUD as Metropolitan Cities and may seek direct CDBG funding from HUD. Metropolitan Cities may also request to be included as a part of the County's CDBG program under a joint recipient application. When this occurs, the County's grant is also increased to include the amount authorized for the Metropolitan Cities. CDBG regulations require the County to serve as the sole agency responsible for the planning and implementation of the CDBG program. Each Metropolitan City must enter a Cooperation Agreement with the County for the three-year period of the County's qualification. The City of Redlands has Metropolitan City status and has requested to be included with the County. Redlands has been a joint recipient applicant with the County for the past twelve years. The City of Chino Hills recently qualified as a Metropolitan City and has decided to seek CDBG funding directly from HUD. The remaining cities within the County have previously qualified as Metropolitan cities and also receive CDBG funding directly from HUD. These include: Apple Valley, Fontana, Hesperia, Ontario, Rancho Cucamonga, Rialto, San Bernardino, Upland, and Victorville. The Cooperation Agreements listed in the recommendation, have been executed by each city. These agreements establish the terms and provisions for cooperation with the County for purposes of meeting requalification requirements. The agreements stipulate the County's authority to carry out Community Development Block Grant activities and the County's responsibility for determining the final disposition and distribution of all CDBG funds and program income. Under the agreements, each participating city is provided with a share of the County's annual CDBG allocation for eligible city activities. The Joint Recipient Request Resolution is required by HUD to permit the City of Redlands, a Metropolitan city, to participate with the County as a joint recipient. The deadline for submission of all documentation to HUD regarding the County's Urban status, including Cooperation Agreements, is July 12, 2002. REVIEWED BY OTHERS: The agreements and resolution have been approved by the City Council of the above listed Cooperating Cities; by Deputy County Counsel, Michelle Blakemore on June 17, 2002; by the Department of Economic and Community Development's Contract Compliance Designee, David Larsen, on June 18, 2002; and the County Administrative Office, Patricia M. Cole, Administrative Analyst III on June 24, 2002. FINANCIAL IMPACT: Approval and execution of these agreements is required for the County to receive an estimated $25,000,000 (twenty-five million) dollars of Community Development Block Grant funds over the next three years. This action will not affect the County General Fund. SUPERVISORIAL DISTRICT(S): All. PRESENTER: Thomas R. Laurin, Director, 909-388-0808. 7/2/2002 dy # 10