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CITY COUNCIL AGENDA ITEM NO. 10


Meeting Date: January 9, 2001

Subject/Title: Authorization to Execute a Community Development Block Grant (CDBG) Project Agreement, a Program Implementation Agreement with Contra Costa County Building Inspection Department Neighborhood Preservation Program, and a Cooperation Agreement between the City of Brentwood and Brentwood Redevelopment Agency 

Submitted by: J. Stevenson/K. Wahl

Approved by: Jon Elam, City Manager


RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute a Community Development Block Grant (CDBG) Agreement with Contra Costa County for the Brentwood Utility Connection Assistance Program (attached) and allocate $104,333 from the Low and Moderate Income Housing Fund to fulfill the matching fund requirement; authorizing the execution of a Cooperation Agreement for this project between the Redevelopment Agency and the City of Brentwood; and authorizing the City Engineer to execute an agreement with Contra Costa County for implementation and operation of the Utility Connection Assistance Program through the Neighborhood Preservation Program.

PREVIOUS ACTION
On November 25, 1997 the City Council authorized the submittal of an application for CDBG funds for a Utility Connection Assistance Program to assist very-low and low-income homeowners with water and sewer service connections. The required 25% minimum matching funds were identified at that time as a combination of Enterprise and Redevelopment Funds. The City has been awarded a total of $146,750 in CDBG funds for the program.

BACKGROUND
This project involves providing zero-interest loans for connection of City water and sanitary sewer service to existing very-low and low-income households residing in identified target areas. The loans will be targeted to residents in rural portions of the City currently utilizing wells and septic tanks for household water and sewer needs (see Attachment #2). It is anticipated that this program will assist up to 25 households based upon a maximum $12,000 loan.

The execution of a project agreement between the County and the City is required to begin to implement the program. The CDBG funds will be used for construction costs and one-half of the connection fees. The City funds will be used for the remainder of the connection fees, any cultural resource evaluations needed and program administration. A Cooperation Agreement between the Redevelopment Agency and the City must be executed to provide the necessary matching funds.

In order to implement the program, staff proposes to partner with the County Building Inspection Department’s Neighborhood Preservation Program, which currently provides rehabilitation loans throughout the County. Neighborhood Preservation Program staff will provide technical assistance to property owners in assessing construction and utility connection requirements, financial analysis to determine project feasibility and applicant eligibility, and initiate and track loans. Part of the matching funds required by the terms of the grant will be utilized for the costs billed to the City by the County Building Inspection Department.

The County Neighborhood Preservation Program has personnel with extensive expertise, experience and background to provide implementation and operating services for the Utility Connection Assistance Program, and now provides similar services for other Contra Costa County cities. The City will be billed by the County Building Inspection Department for their services at $75.00 per hour; the maximum compensation for any utility connection case is limited to $3,500. The charge per hour is for all administrative and technical service in connection with the utility connection program, including the salary of the Rehabilitation Specialist, administrative oversight, clerical assistance and overhead costs. 

The budget for the program is as follows:
City
Redevelopment
CDBG Funds Funds Total

Utility Connection Loans $146,750 $59,250 $206,000
Program Delivery Costs 45,083 45,083

Total $146,750 $104,333 $251,083


Attachments:
Resolution 
Site Map
Agreements
§ Community Development Block Grant Program Project Agreement HSG 99-07
§ County Building Inspection Department Utility Connection Assistance Program 
Implementation Agreement
§ Cooperation Agreement

RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT BETWEEN THE CITY AND CONTRA COSTA COUNTY, A PROGRAM IMPLEMENTATION AGREEMENT BETWEEN THE CITY AND THE CONTRA COSTA COUNTY BUILDING DEPARTMENT FOR THE UTILITY CONNECTION ASSISTANCE PROGRAM AND A COOPERATION AGREEMENT BETWEEN THE CITY OF BRENTWOOD AND THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD

WHEREAS, on November 25, 1997, the City Council approved the submittal of an application for Community Development Block Grant (CDBG) funds for a Utility Connection Assistance Program; and

WHEREAS, the City has been awarded $146,750 in Community Development Block Grant funds for the Utility Connection Assistance Program; and

WHEREAS, an agreement must be executed with Contra Costa County to obtain the awarded CDBG funds; and

WHEREAS, required matching funds for the Utility Connection Assistance Program will be provided to the City of Brentwood by the Redevelopment Agency of the City of Brentwood; and 

WHEREAS, a Cooperation Agreement must be executed between the City and the Redevelopment Agency of the City of Brentwood in order to use Agency Low and Moderate Income Housing Funds for the Utility Connection Assistance Program; and

WHEREAS, in order to implement the program, the City wishes to enter into an agreement with the Contra Costa County Building Inspection Department.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood, as follows:

1) authorize the City Manager to execute Project Agreement HSG 99-07 for Community Development Block Grant (CDBG) funds between the City of Brentwood and Contra Costa County; and

2) authorize the Mayor to execute a Cooperation Agreement between the City and the Redevelopment Agency to provide matching funds from the Low and Moderate Income Housing Fund, as per the attached Cooperation Agreement; and

3) authorize the City Engineer to execute an agreement between the City of Brentwood and the Contra Costa County Neighborhood Preservation Program for implementation of the Utility Connection Program.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9th day of January, 2001, by the following vote:
AYES: 
NOES: 
ABSENT: 

City Administration
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