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HomeMy WebLinkAbout2007/09/25 Item 9 CITY COUNCIL AGENDA STATEMENT ~'Yf:. CITY OF (HULA VlSfA ITEM TITLE: 09/25/07, ItemL PUBLIC HEARING TO CONSIDER AMENDING THE FISCAL YEAR 2007-08 ANNUAL ACTION PLAN TO REALLOCATE $35,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FROM CLOSED OUT PROJECTS TO THE SAN DIEGO REVOLVING LOAN FUND SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2007-08 ANNUAL ACTION PLAN TO REALLOCATE $35,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THE SAN DIEGO REGIONAL REVOLVING LOAN FUND; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY NECESSARY DOCUMENTS; AND ESTABLISHING THE SAN DIEGO REVOLVING LOAN PROJECT AND AUTHORIZING INTERPROJECT TRANSFERS AS NECESSARY ACTING COMMUN~ITY I}E. OPMENT DIRECTO# CITY MANAGER ASSISTANT CITY NAGER 4/5THS VOTE: YES ~ NO D BACKGROUND Community Development Block Grant (CDBG) funds are central to supporting our non- profit partners in developing affordable housing, supporting essential social services, and contributing towards community enhancement and economic development programs. On May 1, 2007, the City Council approved the FY 2007-08 Annual Action Plan ("Action Plan") for three Federal Grant Programs, including CDBG, and authorized its submittal to the U.S. Department of Housing and Urban Development (HUD). HUD received the City's Action Plan on May 15,2007 and approved it in June of2007. The Action Plan is developed using significant public input and describes the City's spending priorities. It serves as the local guide for three of the HUD's grant programs (CDBG, HOME Investment Partnership, and Emergency Shelter Grant). 9-1 09/25/07,fiem~ Page 2 of3 Under the provIsIOns of CFR 570.902 of the Community Development Block Grant regulations, significant revisions made to the Action Plan require an amendment to the action plan, utilizing the public participation process outlined by HUD. Staff is proposing to amend the Action Plan to reallocate unencumbered CDBG funds to an eligible Economic Development activity. The purpose of today's public hearing is to solicit public input on the proposed reallocation and amendment to the 2007-2008 Annual Action Plan. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the National Environmental Protection Act due to the use of Federal funds, and has determined that the proposed project is deemed exempt under the National Environmental Protection Act (NEP A) Regulations. RECOMMENDATION Staff recommends the following: I. Hold the public hearing; 2. Adopt resolution amending the fiscal year 2007-08 Annual Action Plan and authorize submission of the Plan to the United States Department of Housing and Urban Development; 3. Authorize the City Manager to enter into a subrecipient agreement with the San Diego Revolving Loan Fund; and, 4. Establish a new project entitled San Diego Revolving Loan Fund and authorize the interproject transfer of$35,000 from Projects 4121314333 and 4124319333. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista receives annual entitlement grants from the U.S. Department of Housing and Urban Development (BUD) for the Community Development Block Grant, HOME Investment Partnership Act, and Emergency Shelter Grant programs to support activities, which benefit lower income households. Annual Action Plan The City of Chula Vista's Annual Action Plan is a comprehensive planning document which identifies the City's needs in housing, homelessness, community and economic development. In addition, it includes the allocation of funds for capital improvements, community enhancement projects, economic development, public services, affordable housing, frrst-time homebuyer programs and administration! planning activities. Any changes or revisions to the approved Annual Action Plan subsequent constitutes a formal amendment to the Plan. The City must comply with Citizen Participation Regulations 9-2 09/25/07, Item~ Page 3 of3 which require a 30-day comment period to allow for the public to review the proposed amendment and make comments or suggestions. The 30-day comment period to review the draft began on August 24, and ended on September 24, 2007. No comments were received. Proposed Amendment In June of 2007, the City of San Diego (dba San Diego Revolving Loan Fund) approached the City to discuss the possibility of participating in a revolving loan program targeted to Chula Vista businesses. The program would help retain or grow existing businesses, as well as help attract new businesses. The City's contribution of $35,000 will be matched 100% by additional grant funds in the San Diego Revolving Loan Fund. As a CDBG fund recipient, the Fund will have to adhere to specific beneficial and financial reporting requirements to the City to be provided to HUD. Under the BUD Regulations in order for the activity to be eligible, permanent full time positions must be created and made available to low/moderate income persons. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. FISCAL IMPACT Funds totaling $35,000 will be transferred from Projects 4121314333 and 4124319333 to thenewly established project entitled San Diego Revolving Loan Fund. The funds were previously budgeted to other activities which have subsequently been completed or cancelled, returning the funds back to the City's Line of Credit. Therefore, there will be no net impact to the General Fund or the CDBG program. ATTACHMENTS 1. New Project Worksheet 2. Subrecipient Agreement Prepared by: Angelica Davis, Community Development Specialist II J :\COMMDEV\ST AFF.REP\2007\09-25-07\CDBG Amendment Staff Report. doc 9-3 CPMPVersion 2.0 Attachment 1 Grantee Name: City of Chula Vista P ect Name: San Die 0 Revolvin Description: IDIS Project #: UOG Code: CA60720 CHULA VISTA Funds will be utilized to fund a portion of the San Diego Revolving Loari Program which wHl assist a Chula Vista business with a business expansion loan which wjJJ ultimately result in the creation of a new full time position. Location: Chula Vista Ex ected Com letion Date: 06/30/2009 Objective Category o Decent Housing o Suitable Uving Environment @ Economic Opportunity Outcome Categories o Availability/Accessibility o Affordablllty o Sustainabil1ty J5 c " " > E .!!.c , Oft 'ti= " ... "0' E .. 0 ... U u 0< 08 Businesses Acc:ompL Type: Accompl. Type: Pro osed Outcome Select one: I Economic Development Explanation: ... Pro osed 1 Underwa Complete ... Pro osed Underwa Complete ... Proposed Underway Complete Performance Measure AccompL Type: ... Proposed Underwa Com lete ... Pro osed Underwa Com lete ... Pro osed Underway Complete Actual Outcome Acc:ompl. Type: Accompl. Type: lBC MIcro-Enterprise Assistance .... Matrix Codes .... Matrix Codes .... Matrix Codes .... Matrix Codes .... Matrix Codes .... '" CDBG Pro osed Amt. 35,000 Fund Source: .... Pro osed Amt. .. Actual Amount Actual Amount .. Pro osed Amt. " Fund Source: Fund Source: .... Pro osed Amt. > Actual Amount Actual Amount E .. 08 Businesses .... Proposed Units 1 Accompl. Type: .... Pro osed Units .. '" Actual Units Actual Units 0 .. Accompl. Type: .... Pro osed Units Acc:ompl. Type: .... Pro osed Units ... Actual Units Actual Units 9-4 Attachment 2 CI1Y OF CHULA VISTA AGREEMENT FOR MANAGEMENT AND IMPLEMENTATION OF A COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT City of San Diego San Diego Revolving Loan Fund This Contract Number by and between the City of San Diego dba San Diego Revolving Loan Fund (hereinafter referred to as "Subrecipient") and the City of Chula Vista (hereinafter referred to as "City") is effective on ("Effective Date"). WIT N E SSE T H: WHEREAS, there has been enacted into law the Housing and Community Development Act of 1974 (the "Act"), the primary objective of which is the development of viable urban communities by providing federal assistance for community development activities in urban areas; and WHEREAS, the City, is authorized to apply for and accept Community Development Block Grant funds; and WHEREAS, City incorporated the Subrecipient's proposal for the project described in Attachment "A" hereof (hereinafter referred to as the "Project") into the City's Amendment to the Community Development Block Grant/HOME Investment Partnership/Emergency Shelter Grant Annual Funding Plan which was submitted to the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, HUD has approved the Amendment to the City's Annual Funding Plan for Community Development Block Grant funds; and WHEREAS, it is the desire of the Subrecipient and the City that the Project be implemented by the Subrecipient; and WHEREAS, the Subrecipient shall undertake the same obligations to the City with respect to the Project in the City's aforesaid Annual Funding Plan for participation in the Community Development Block Grant program; NOW THEREFORE, IT IS AGREED AS FOLLOWS: 1. WORK TO BE PERFORMED: Subrecipient shall implement the scope of work COBG Contract Page 1 of 13 9-5 ["Scope of Work") described in Attachment A, hereof fully and in accordance with the terms of the Annual Funding Plan approved by the City and submitted to HUD in application for funds to carry out the Project and the Certifications which were submitted concurrently with the Annual Funding Plan. The Annual Funding Plan and Certifications form is hereby incorporated by reference into this contract fully as if set forth herein. Subrecipient shall also undertake the same obligations to the City that the City has undertaken to HUD pursuant to said Annual Funding Plan and Certifications. The obligations undertaken by Subrecipient include, but are not limited to, the obligation to as applicable comply with each of the following as may be amended from time to time: a. The Housing and Community Development Act of 1974 (Public Law 93-383, as amended, 42 USC S 5301, et seq.); b. HUD regulations relating to Community Development Block Grants [24 CFR 570.1, et seq.); c. The regulations in 24 CFR Part 58 specifying other provisions of the law that further the purposes of the National Environmental Policy Act of 1969 and the procedures by which grantees [City) must fulfill their environmental responsibilities; d. Title VI of the Civil Rights Act of 1964 (42 USC S 2000d); Title VII of the Civil Rights Act of 1964 (Public Law 88-352); Title VIII of the Civil Rights Act of 1968 (Fair Housing Act, 42 USC S 3601, et seq.); Section 109 of the Housing and Community Development Act of 1974; Executive Order 11246, as amended (equal employment opportunity); Executive Order 11063 [non-discrimination), as amended by Executive Order 12259; and any HUD regulations heretofore issued or to be issued to implement these authorities relating to civil rights; e. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.c. 1701 u. All section 3 covered contracts shall include the following clause (referred to as the "section 3 clause"): i. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, .l2 U.S.C. 1701 u [section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD- assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are 9-6 CDBG Contract Page 2 of 13 recipients of HUD assistance for housing. Ii. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. iii. The Subrecipient agrees to send to each labor organization or representative of workers with which the Subrecipient has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Subrecipient's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, Shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. iv. The Subrecipient agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the sub-contractor is in violation of the regulations in 24 CFR part 135. The Subrecipient will not subcontract with any sub-contractor where the Subrecipient has notice or knowledge that the sub contractor has been found in violation of the regulations in 24 CFR part 135. v. The Subrecipient will certify that any vacant employment positions, including training positions, that are filled (1) after the Subrecipient is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the Subrecipient's obligations under 24 CFR part 135. CDBG Contract Page 3 of 13 9-7 vi. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. vii. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7[b) of the Indian Self-Determination and Education Assistance Act 125 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian- owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7[b). f. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1979, 42 USC S 4601, et seq., and regulations adopted to implement that Act in 49 CFR Part 24; g. Office of Management and Budget ("OMB") Circular A-87 entitled "Cost Principles for State, Local. and Indian Tribal Governments" and OMB Circular A-133 entitled "Audits of States, Local Governments, and Non-Profit Organizations." Referenced is particularly made to 24 CFR 85 entitled "Administrative Requirements for Grants and Cooperative Agreements to State, Local. and Federally Recognized Indian Tribal Governments." h. Grant administrative requirements as described in 24 CFR 570.504, which requires Subrecipient to return any program income earned by the Subrecipient in carrying out the activities of the Contract with the City of Chula Vista. Upon expiration of this contract, Subrecipient shall transfer to the City any Community Development Block Grant funds on hand at the time of expiration and any accounts receivable attributable to the use of Community Development Block Grant funds. Any real property under Subrecipients control acquired or improved in whole or in part with Community Development Block Grant funds in excess of $25,000 will either be: 1. Used to meet one of the national objectives outlined by HUD until five years after the expiration of the contract: or 9-8 CDBG Contract Page 4 at 13 2. Disposed. of in a manner that results in the City being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-Community Development Block Grant funds for acquisition of, or improvement to, the property. Reimbursement is not required after the five year period pursuant to CFR 570.505. Program Income on hand at the time of closeout and subsequently received shall continue to be subject to all applicable Community Development Block Grant eligibility requirements, provisions of 24 CFR 570.489, and provisions of this contract. i. 24 CFR 570.505 concerning use of real property; j. The following iaws and regulations relating to preservation of historic places: National Historic Preservation Act of 1966 (Public Law 89-665); the Historical and Archaeological Preservation Act of 1974 (Public Law 93-291); and Executive Order 11593; k. The Labor Standards Regulations set forth in 24 CFR 570.603; I. Labor Code section 1771 concerning prevailing wages; m. The Hatch Act relating to the conduct of political activities [5 u.s.c. S 1501, etseq.); n. The Flood Disaster Protection Act of 1973 (42 U.S.C. S 4001, et seq., and the implementing regulations in 44 CFR Parts 59-78); o. The Rehabilitation Act of 1973 (Public Law 93-112) as amended, including Section 504 which relates to nondiscrimination in federal programs and HUD 24 CFR Part 8; p. The Clean Air Act [42 U.S.C. S 7401, et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.c. S 1251, et seq.) and the regulations adopted pursuant thereto (40 CFR Part 6); q. The Drug-Free Workplace Act of 1988 [Public Law 100-690); r. The Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint Hazard Reduction Act of 1992, and implementing regulations at 24 CFR Part 35; s. No member, officer or employee of the Subrecipient or its designee or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any functions or CDBG Contract Page 5 of 13 9-9 responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct, or indirect, in any contract or subcontract, or the process thereof, for work to be performed in connection with the program assisted under the Grant, and that it shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this certification. t. The Subrecipient certifies, that in accordance with Section 319 of Public Law 101-121, to the best of his or her knowledge and belief that: i. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative contract, and the extension, continuation, renewals, amendment, or modifications of any federal contract, grant loan, or cooperative contract. ii. If any funds other than federal appropriated funds have been paid or will be paid to any person for influenCing or attempting to influence an officer or employee of any agency, a member of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative contract, the undersigned shall complete and submit Standard Form-LLL "Disclosure Form to Report Lobbying", in accordance with its instructions. t. The Architectural Barriers Act of 1968 (42 U.S.c. S 4151, et seq.); u. The Americans with Disabilities Act [42 U.S.C. S 12101); and v. The bonding requirements described in 24 CFR Part 85.36 required for construction or facility improvement contracts or subcontracts that exceed the simplified acquisition threshold (defined at 41 U.S.C. 403(11 )). These requirements are further described in Attachment A, which is attached hereto and incorporated by reference. 2. COMPLIANCE WITH LAWS: Subrecipient shall comply with all applicable local, state, and federal laws, regulations, and ordinances when performing the work required by this Contract. 9-10 CDBG Contract Page 6 of 13 3. COMPENSATION: City shall reimburse Subrecipient for the costs it incurs for work performed under this Contract, not to exceed a maximum reimbursement of $35,000. Subrecipient shall not submit claims to the City nor shall City reimburse Subrecipient for costs for which Subrecipient is reimbursed from a source other than the funds allocated for work under this Contract. 4. COMPENSATION SCHEDULE: City shall pay Subrecipient monthly progress payments upon submittal by Subrecipient of a certified statement of actual expenditures incurred, provided, however, that not more than 90% of the total agreed compensation will be paid during the performance of this Contract. The balance due shall be paid upon certification by Subrecipient that all of the required services have been completed. Payment by City is not to be construed as final in the event HUD disallows reimbursement for the project or any portion thereof. The 10% retention will not apply to acquisition or service contracts. 5. INDIRECT COSTS: If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Subrecipient's share of administrative costs and shall submit such plan to the City for approval. 6. EXPENDITURE STANDARD: To insure effective administration and performance of approved Community Development Block Grant projects and to meet HUD performance standards, Subrecipient shall demonstrate reasonable progress on implementation of the project, expending all contracted funds within the term of the contract. In the event all funds are not expended within the term period, the City shall notify the Subrecipient of the expenditure deficiency. Subrecipient will have a total of 60 days from the date of the City's written notification to correct the deficiency. If the deficiency is not corrected within that time, Subrecipient agrees that the City may reallocate the amount of the expenditure deficiency. 7. TERM: This contract shall commence when executed by the parties and shall continue in effect until terminated as provided herein or until Subrecipient has carried out all its obligations under the contract. Services of the Subrecipient shall start on the 25th day of September 2007. The term of this Agreement is for one year and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other CDBG assets, including program income. 8. TERMINATION FOR CONVENIENCE: The City may permit the agreement to be terminated for convenience in accordance with 24 CFR 85.44. 9. AUTOMATIC TERMINATION: This Contract shall terminate at the discretion of the City if the United States Government terminates the Community Development Block Grant Program or terminates the Project that is the subject of this Contract. 10. TERMINATION OF CONTRACT FOR CAUSE: Subrecipient and City CDBG Contract Page 7 of 13 9-11 recognize that the City is the governmental entity which executed the grant agreement received pursuant to the City's application and that City is responsible for the proper performance of the Project. If Subrecipient fails to fulfill in a timely and proper manner its obligations under this Contract to undertake. conduct or perform the Project identified in this Contract, or if Subrecipient violates any state laws or regulations or local ordinances or regulations applicable to implementation of the Project, or if Subrecipient violates any provisions of this contract. City shall have the right to terminate this contract by giving at least five days written notice to Subrecipient of the effective date of termination. Even if City terminates the Contract. Subrecipient shall remain liable to City for all damages sustained by City due to Subrecipient's failure to fulfill any provisions of this Contract. and City may withhold any reimbursement payments . form Subrecipient for the purpose of set-off until the exact amount of damages due to City from Subrecipient is determined. Subrecipient hereby expressly waives any and all claims for damages for compensation arising under this contract except as set forth in this section in the event of such termination. 11. CONTRACT ADMINISTRATION: The City Manager of the City of Chula Vista. shall administer this Contract on behalf of the City. The President of the San Diego Regional Revolving Loan Fund shall administer this contract on behalf of the Subrecipient. Within a reasonable time after the City makes a request. Subrecipient shall give the City progress reports or other documentation as required by the City's Administrator to audit Subrecipient's performance of this Contract. 12. RECORDS AND REPORTS: The Subrecipient shall maintain records and make such reports as required by the City of Chula Vista. to enable the City to analyze Subrecipient's project. All records of the Subrecipient related to this Contract or work performed under the Contract shall be open and available for inspection by HUD and/or City monitors and auditors during normal business hours. 13. USE AND REVERSION OF ASSETS: The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502. 570.503. and 570.504. as applicable. which include but are not limited to the following: a. The Subrecipient shall transfer to the City any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration. cancellation. or termination. b. Real property under the Subrecipient's control that was acquired or improved. in whole or in part. with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement [or such longer period of time as the Grantee (City) deems 9-12 COSG Contract Page 8 of 13 appropriate]. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the City an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the City. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period. . c. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (a) transferred to the City for the CDBG program or (b) retained after compensating the City [an amount equal to the current fair market value of the equipment less the percentage of non- CDBG funds used to acquire the equipment]. 14. RETENTION: The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the City's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. 15. DATA: The Subrecipient shall maintain data demonstrating eligibility (low-moderate locations, job creation) for services provided. Such data shall include, but not be limited to exact location of the work performed, and a description of service provided. Such information shall be made available to City monitors or their designees for review upon request. 16.. DISCLOSURE: The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the City's or Subrecipient's responsibilities with respect to services provided under this contract, is prohibited by the state of Federal law privacy laws unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. CDBG Contract Page 9 of 13 9-13 17. SEMI-ANNUAL REPORTSI ANNUAL REPORT: Subrecipient shall provide the City with a semi-annual report, submitted no later than 15 days after the last day of the reporting period, which includes a narrative of the services provided, progress towards meeting the timeline goals stated in the contract, and an itemized accounting of the expenditures of CDBG funds during the previous quarter. Failure to submit quarterly reports in a timely manner will result in withholding of CDBG funds until the report has been submitted. Performance Reports are due May 15 and November 15. 18. Close Out: The Subrecipient's obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any periOd that the Subrecipient has control over CDBG funds, including program income. 19. Proaram Income: The Subrecipient shall report semi-annually all program income (as defined at 24 CFR 570.500[a)) generated by activities carried out with CDBG funds made available under this contract. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. Program income shall be retained by the Subrecipient to use for additional business loans and direct program delivery costs. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to the City. 20. INDEMNIFICATION: City shall not be liable for, and Subrecipient shall defend, indemnify, and hold harmless the City and its officers, agents, employees and volunteers against any and all claims, deductibles, self-insured retentions, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages. expenses, changes or costs of any kind or character, including attorneys' fees and court costs by this Contract arising either directly or indirectly from any act. error, omission or negligence of Subrecipient or its officers, employees. agents. Subrecipients, licensees or servants, including without limitation. claims caused by the concurrent act, error, omission or negligence, whether active or passive, of City, and/or its agents. officers. employees or volunteers. However, Subrecipient shall have no obligation to defend or indemnify City from a claim if it is determined by a court of competent jurisdiction that such claim was caused by the sole negligence or willful misconduct of City or its agents or employees. Subrecipient and its successors, assigns, and guarantors, if any, jointly and severally agree to indemnify, defend [with counsel selected by City) reimburse 9-14 CDBG Contract Page 10 of 13 and hold City and its officers, employees and agents harmless from any claims, judgments, damages, penalties, fines, costs, liabilities (including sums paid in settlement of claims) or loss, including attorneys' fees, consultant's fees, and experts' fees which arise during or after the contract term for any losses incurred in connection with investigation of site conditions, or any cleanup, remedial, removal or restoration work required by any hazardous materials laws because of the presence of hazardous materials, in the soil, ground water or soil vapors on the premises, and the release or discharge of hazardous materials by Subrecipient during the course of any alteration or improvements of the Premises by Subrecipient, unless hazardous materials are present solely as a result of the gross negligence or willful misconduct of City, its officers, employees or agents. The indemnification provided by this section shall also specifically cover costs . incurred in responding to: a. Hazardous materials present or suspected to be present in the soil, ground water to or under the Property before the commencement date; b. Hazardous materials that migrate, flow, percolate, diffuse, or in any way move on to or under the Property following the commencement date; c. Hazardous materials present on or under the Property as a result of any discharge, release, dumping, spilling (accidental or otherwise), onto the Property during or after the term of this Contract by any person, corporation, partnership or entity other than City. The foregoing indemnities shall survive the expiration or termination of the contract any or any transfer of all or any portion of the Premises, or of any interest in this Contract and shall be governed by the laws of the State of California. 21. AUDIT COSTS: Subrecipient shall reimburse City for all costs incurred to investigate and audit Subrecipient's performance of its duties under the Contract if Subrecipient is subsequently found to have violated the terms of the Contract. Reimbursement shall include all direct and indirect expenditures incurred to conduct the investigation or audit. City may deduct all such costs from any amount due Subrecipient under this Contract. 22. ENTIRE AGREEMENT: This Contract constitutes the entire agreement of the parties and supersedes any previous oral or written understandings or contracts related to the matters covered herein. 23. MODIFICATION. This Contract may not be modified except by written amendment executed by each party. 24. ACKNOWLEDGEMENT OF FUNDING: Subrecipient shall identify the City of Chula Vista and the U.S. Department of Housing and Urban Development as the source of funding, or, if applicable, one of the sources of funding in public announcements that are made regarding the Project. Acknowledgement of CDBG Contract Page 11 of 13 9-15 the City's funding roles, for example, should be included in publicity materials related to the Project. In addition, Subrecipient agrees that the City shall be apprised of any special events linked to the Project so that a review can be made on what role, if any, the City would assume. 25. INSURANCE: Subrecipient agrees to comply with the insurance requirement set forth in Attachment "B." 26. NO WAIVER: No failure, inaction, neglect or delay by City in exercising any of its rights under this Contract shall operate as' a waiver, forfeiture or abandonment of such rights or any other rights under this Contract. 27. NOTICE: Any notice or notices required or permitted to be given pursuant to this Contract shall be personally served by the party giving notice or shall be served by certified mail. Notices shall be sufficient if personally served on or if sent by certified mail, postage prepaid, addressed to: Subrecipient: City: City of Chula Vista Community Development Director Community Development Department 276 Fourth Avenue Chula Vista, CA 91910 President San Diego Revolving Loan Fund 1200 3rd Avenue, 14the Floor San Diego, CA 92101 9-16 CDBG Contract Page 12 of 13 IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above. CITY OF CHULA VISTA David R. Garcia, City Manager, City of Chula Vista APPROVED AS TO FORM Ann Moore City Attorney ATTEST City Clerk CITY OF SAN DIEGO, a municipal corporation, dba San Diego Regional Revolving Loan Fund Print Name afExecutive Director .or DeslgrjeEi, Title. . Attachment A Scope of Work Attachment B Insurance Requirements Attachment C Income Limits City of Chula Vista 2007 Attachment D Disclosure Form CDBG Contract Page 13 of 13 9-17 ATTACHMENT A SCOPE OF WORK City of San Diego dba San Diego Revolving Loan Fund (Subrecipient) has a certain project to be implemented with Community Development Block Grant [CDBG) Program funds. The work to be accomplished includes the following: San Diego Regional Revolving Loan Program 1. Implement a business loan program within the City of Chula Vista for neighborhood-serving businesses that meets a CDBG National Objective of job creation. Funds will be used for direct program delivery costs of operating the program and for the loan pool that will assist businesses, as allocated in the estimated budget (Section B). Program funds are available for the following: . Working capital . Furniture, fixtures, equiprnent . Machinery . Supplies, rnaterials, inventory . Other start-up/expansion expenses (excluding building renovation) 2. Provide business loans using the proceeds from loan repayments. Funds shall be used for City of Chula Vista businesses for the types of activities stated in the City of San Diego's San Diego Revolving Loan Fund Policies and Procedures. The CDBG-funded businesses shall corn ply with all applicable local, State, and federal laws (i.e. licenses, permits). 3. Reporting requirements shall include a spreadsheet with information on each loan, including name and address of business, type of neighborhood-serving business, amount of loan, and contract terms. . Subrecipient will identify and track the success and failure of individual loan/grant recipients. . Subrecipient will monitor the businesses to ensure program compliance in accordance with CDBG regulations . Subrecipient will handle complaints resulting from loan recipients. 4. Copies of any subagreement(s) with Chula Vista businesses shall be forwarded to the City within 30 days of execution. 9-18 Attachment "A" Scope of Work 5. Completion of Loan Applications: Underwritina assessment: Subrecipient will assist for-profit businesses in completing loan applications, and will perform an assessment of each loan request to: (a) determine the CDBG eligibility of the loan, (b) evaluate the loan's job creation or job retention potential relative to meeting the National Objective and Public Benefit standards,and (c) ascertain that the loan will minimize, to the extent practicable, displacement of existing businesses and jobs in neighborhoods. The Subrecipient will perform a front-end assessment to determine whether each loan and the financing terms associated with it are appropriate, and as part of this assessment will consider the business' need for financial assistance, the feasibility of the proposed venture or business activity, the past business experience of the applicant, the reasonableness of the proposed costs and return to the applicant, the commitment of other sources of funds, and the ratio of the loan amount to the full-time equivalent jobs expected to be created. 6. Loan Review Committee: The Subrecipient will establish and maintain a Loan Review Committee, consisting of a representative of the Subrecipient, and two representatives of local financial institutions familiar with business loans. The Loan Review Committee will review all loan recommendations forwarded to it by the economic development program staff of the Subrecipient. No loan will be made under the economic development loan program without the approval of a majority of the members of the Loan Review Committee. 7. Proaram Income: The SUBRECIPIENT shall: (A) Maintain appropriate documentation on the receipt of Program Income (any principal and interest received from loans made using CDBG funds); and, (b) report all such income to the City of Chula Vista Community Development Department within 30 days of its receipt. [B) Implement a Loan Policy (hereinafter referred to as "Plan"). The Plan will contain guidelines for implementation of the project. The Plan will include the mission, objectives, and policies and procedures, including, eligible. applicants, maximum loan amount, underwriting guidelines, and eligible types of activities. Any changes to the Loan Policy must be reviewed by the City. 8. Eliaibilitv of Activitv- Businesses assisted in this program are limited to Attachment "A" Scope of Work 9-19 those Chula Vista businesses that provide goods and services to City of Chula Vista and result in job creation or job retention for low and moderate income persons. A low moderate income activity is one which creates or retains permanent jobs, at least 51 % of which, on a full time equivalent [FTE) basis, are either held by L/M income persons or considered to be available to L/M income persons (Attachment E). 9. Public BenefitTest (570.2091: All HUD CDBG Economic Development Activities must pass the "public benefit test" in addition to satisfying a national objective. The economic development public benefit test consists of a ratio measuring job creation to financial assistance provided. Assistance to all the businesses must not exceed $35,000 per job created. 10. Job Creation or Retention Activities These activities designed to create or retain permanent jobs, at least 51 % of which (computed on a full-time equivalent basis) will be made available to or held by low-and moderate-income persons. The following requirements must be met for jobs to be considered created or retained: y" If the activity which creates jobs, there must be documentation indicating that at least 51 % percent of the jobs will be held by, or made available to, low and moderate income persons. For funded activities which retain jobs, there must be sufficient information documenting that the jobs would have been lost without the CDBG assistance and that one or both of the following applies to at least 51 % of the jobs: y" The job is held by a low-or moderate-income person; or y" The job can reasonably be expected to turn over within the following two years and steps will be taken to ensure that the job will be filled by, or made available to, a low- or moderate-income person. y" The following requirements apply for jobs to be considered available to or held by low and moderate income persons. 9-20 Attachment "A" Scope ot Work . Created or retained are only considered to be available to low and moderate income persons when: v" Special skills that can only be acquired with substantial training or work experience or education beyond high school are not a prerequisite to fill such jobs, or the business agrees to hire unqualified persons and provide training; and v" The recipient and the assisted businesses take actions to ensure that low-and moderate-income persons receive first consideration for filling such jobs. Create of retain jobs are only considered held by low-or moderate income households when the job actually held by a low-and moderate-income person. 11. Written Aareements: SUBREClPIENT must enter into a written agreement with the business and must include: (1) a commitment by the business that at least 51 % of the jobs that are created or retained, on a full-time equivalent basis, are held by low- and moderate-income persons: (2) a listing by job title of the permanent jobs that will be created or retained, which identifies the part-time and full-time positions; (3) the sources and uses of all funds; and, (4) a specific timeframe for completion. In addition, the written agreement must include the loan terms established by the SUBRECIPIENT. 12. HUD Performance Measurements ReDortina: a. DUNS Number: SUBRECIPIENT must obtain a Data Universal Numbering System (DUNS) from each business that receives CDBG assistance. b. ReDort Outcomes of Economic DeveloDment Activities: For activities that involve the creation of iobs, Subrecipient will be required to report the following information: . Total number of jobs created for the program year. . The number of jobs with employer sponsored health care benefits. . The number of persons who were unemployed prior to taking jobs created by the activity. . The number of jobs created for each job type, using the Economic Development Administration (EDA) classifications. For activities that involve the retention of iobs. Subrecipient will be required to report the following information: . The total jobs retained for the program year. . The number of jobs with employer sponsored health care Attachment "A" Scope of Work 9-21 benefits. . The type of jobs retained by the EDA classifications, using the same categories as above for job creation. 13. Monitorina of Job Creation/Retention: The Subrecipient will monitor loan recipients on at least a quarterly basis to assess their progress in creating jobs for low- and moderate-income persons, and will institute default and foreclosure of the loan (with penalties if appropriate) in instances where the loan recipient fails to take sufficient action to satisfy the CDBG National Objective requirement. 14. Maintenance of Records: In addition to the financial records regarding loan repayment cited above, the Subrecipient will maintain sufficient records to fully document (a) the loan application and underwriting review, including the front end assessment of CDBG eligibility and appropriateness of the loan, (b) the final terms and conditions of the loan (c) satisfaction of the CDBG National Objective, and Public Benefit requirements consistent with the requirements of 24 CFR 570.208(0)(4) and 570.209 (Public Benefit Test), and (d) proper utilization of program income received. All such records will be maintained according to the general requirements of 24 CFR 570.506 and document that at least 51 percent of the jobs will be available to low- and moderate-income persons, documentation for each assisted business shall include: . A copy of a written agreement, containing: . A commitment by the business that it will make at least 51 percent of the FTE jobs available to low- and moderate- income persons and will provide training for any of those jobs requiring special skills or education; . A listing by job title of the permanent jobs to be created, indicating which jobs will be available to low- and moderate-income persons, which jobs require special skills or education, and which jobs are part-time; and, . A description of the actions to be taken by the Subrecipient and business to ensure that low- and moderate-income persons receive first consideration for these jobs; and . A listing by job title of the permanent jobs filled, and which jobs were available to low- and moderate-income persons, as well as a description of how first consideration was given to any such persons for these jobs. The description shall include what type of hiring process was used; the names of the low- and moderate- income persons interviewed for each such job; and those hired. 9-22 Attachment "A" Scope of Work . For benefit based on job creation, the following documentation must be kept: Where the Subrecipient chooses to document that at least 51 percenf of the jobs will be held by low- and moderate-income persons, documentation for each assisted business shall include: . A copy of a written agreement, containing: . A commitment by the business that at least 51 percent of the jobs created, on a full-time equivalent basis, will be held by low- and moderate-income persons; and, . A listing by job title of the permanent jobs to be created (identifying which are part-time, if any). . A listing by job title of the permanent jobs filled and which jobs were initially taken by low- and moderate-income persons; and . For each low- and moderate-income person hired, information on the size and annual income of the person's family prior to the time the person was hired for the job, or evidence that the person may be presumed to be low or moderate income based on the location of the business or the person's residence [see 3570.208(a) (4) (iv)J. For benefit based on job retention, the following documentation must be kept: . Evidence that in the absence of CDBG assistance, the jobs would be lost: and, . For each business assisted, a listing by job title of permanent jobs retained, indicating which of those jobs are part-time and (where it is known) which are held by low- and moderate- income persons at the time the assistance is provided; and, . Where applicable, identification of any of the retained jobs (other than those known to be held by low- and moderate- income persons) that are projected to become available to low- and moderate-income persons through job turnover within two years of the time CDBG assistance is provided, and information on how the turnover projections were calculated; and, Attachment "A" Scope of Work 9-23 . For each retained job claimed to be held by a low- and moderate-income person, information on the size and annual income of the person's family, or evidence that the person may be presumed to be low or moderate income based on the location of the business or the person's residence [see 3570.208(0) [4) (iv)]; and, . For jobs claimed to be available to low- and moderate-income persons based on job turnover: a description covering the items required for "available to" jobs identified above; a listing of each job that has turned over to date, indicating which of those jobs were either taken by, or made available to low- and moderate-income persons; and a description of how "first consideration" was given to low- and moderate-income persons for those jobs. A. ESTIMATED TIME SCHEDULE: SUBRECIPIENT will make all good faith and reasonable efforts to implement the project in compliance with the following estimated implementation schedule, or earlier: June 30, 2008 B. ESTIMATED BUDGET: SUBRECIPIENT shall make all good faith and reasonable efforts to complete the work under this Contract within the following estimated budget. In no case shall SUBRECIPIENT be entitled to, nor shall CITY reimburse SUBRECIPIENT, for more than $35,000 for work performed under this Contract. . Business Loans and reasonable program delivery costs up $35,000 . 1% of the loan proceeds and initial grant amount of $35,000 may be used for program delivery costs. In addition to the required quarterly reports identified in Section 12 of this CONTRACT, the Subrecipient shall document job creation/job retention mentioned above to ensure that at least 51 percent of those served are at or below 80 percent of the Area Median Income as established by the U.S. Department of Housing and Urban Development (HUD). This information is to be collected and compiled at the end of the each City of Chula Vista fiscal year (June 30th) for five (5) years, and shall be submitted to the City of Chula Vista Community Development Department upon receipt of a written request and at the time of any monitoring of project records. 9-24 Attachment "A" Scope of Work ATTACHMENT B. 11 INSURANCE REQUIREMENTS FOR CONTRACTORS cnY OF CHUlA VISTA Contractor must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the Contractor, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement or work. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001) 2. Insurance Services Office Form Number CA 0001 covering Automobile Liability, code1 (any auto). 3. Workers' Compensation insurance as required by the State of Califomia and Employer's Liability Insurance. Minimum Limits of Insurance Contractor must maintain limits no less than: 1 . General Liability: (Including operations, products and completed operations, as applicable.) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Contractor will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Attachment "Bn Insurance Requirements 9-25 Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: 1. The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the contractor including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products / Completed Operations coverage. 2. The contractor's insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. 3. Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail. return receipt requested. 4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision [b) of Section 2782 of the Civil Code. 5. Contractor's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers [LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before 9-26 Attachment "B" Insurance Requirements - --~._._-_....__.._.__._-- work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors Contractor must include all subcontractors as insureds under its policies or furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors are subject to all of the requirements included in these specifications. Attachment "B" Insurance Requirements 9-27 AlTACHMENT C HUD INCOME LIMITS 2007.CITY OF CHULA VISTA $ 39,300.00 24,550.00 14.750.00 2 44,950.00 28,100.00 16,850.00 3 50,550.00 31,600.00 18,950.00 4. $ 56,150.00 35,100.00 $ 21,050.00 5 60,650.00 37,900.00 22,750.00 6 $ 65,150.00 40,700.00 $ 24.400.00 7 69,650.00 43,500.00 26,100.00 8 $ 74,1000.00 $ 46,350.00 $ 27,800.00 9-28 Attachment "C" HUD Income Limits ATTACHMENT C (Continued) CDBG FUNDED PROJECTS QUALIFYING ON THE JOB CREATION/JOB RETENTION Your cooperation in filling out this form is requested. Record keeping on income of participants in the program is a condition of receipt of federal funds for the program. The information provided on this form will remain confidential but may be subjected to verification by responsible local and federal agencies. Self-identification of race and ethnicity is voluntary. 1. What is the total number of persons in your household? 2. What is the total combined annual income of all members of your househoid? (Please check one line below.) _Below $39,300 _$60,651-$65,150 _$39,301-$44,950 _$65,151-$69,650 _$44,951-$50,550 _$69,651-$74,100 _$50,551-$56,150 _Over $74,101 _$56,151-$60,650 (NOTE: The above information is for 2007 and changes each calendar year. To obtain updated information go to htto://www.huduser.ora/datasets/il.htmland search for income limits for the San Diego area:) 3. Please check the box below tha es describes vour familv. RACE CATEGORIES HISPANIC/ ETHNICITY Check One Race Category Only Check Only If Also Hispanic White Biack/ Atrican American Asian American indian/ Aiaska Native Native Hawaiian/ Other Pacific Islander Multi-Racial: American Indian/Alaska Native AND White Asian AND White Asian AND Pacific Islander Black/African American AND White American Indian/ Alaska Native AND Black/ African American Other Multi-Racial tb t Name: Household Address: Signature: (Print) Telephone Number: Note: Name, address, telephone and signature are optional. An unique identifier may be used to trace client served to meet CDBG limited clientele requirement. Attachment "e" HUD Income Limits 9-29 Attachment "0" Oisclosure Statement Attachment "D" Disclosure Form 9-30 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2007-08 ANNUAL ACTION PLAN TO REALLOCATE $35,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THE SAN DIEGO REGIONAL REVOLVING LOAN FUND; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY NECESSARY DOCUMENTS; AND ESTABLISHING THE SAN DIEGO REVOLVING LOAN PROJECT AND AUTHORIZING INTERPROJECT TRANSFERS AS NECESSARY WHEREAS, on May I, 2007, the City CoUncil approved submittal of the Community Development Block Grant (CDBG) and the HOME Investment Partnership (HOME) Program Annual for Fiscal Year 2007-08, respectively, to the U.S. Department of Housing and Urban Development; and, WHEREAS, the City desires to amend the CDBG, HOME, and ESG Program to reallocate $35,000 of unallocated CDBG funds from closed activities to a new 2007-08 Economic Development Project, entitled San Diego Revolving Loan Fund; and, WHEREAS, Federal regulations governing the CDBG, HOME and ESG Programs state that significant programmatic and funding changes to the Plan constitute an amendment to the Plan; and, WHEREAS, in compliance with HUD regulations and the City's Citizen Participation Plan, a Plan Amendment requires a 30-day public review and comment period; and, WHEREAS, pursuant to HUD regulations City's Citizen Participation Plan, the City began a review and comment period on August 24, 2007, which ended on September 24 with no comments received; and, WHEREAS, on July 25, 2007. City Council held a noticed public hearing to consider the Plan Amendment and the reallocation of CDBG funds; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista hereby amend the 2007-08 Annual Action Plan and a\lthorizes the submission of the Amendment to the United States Department of Housing and Urban Development; and, BE IT FURTHER RESOLVED, that the City Manager is hereby authorized to execute a Subrecipient agreement and any necessary minor amendments with the San Diego Revolving Loan Fund; and, BE IT FURTHER RESOLVED, that the City Council of the City Of Chula Vista does hereby establish a new project entitled San Diego Revolving Loan Fund and authorize the interproject transfer of$35,000 from Projects 4121314333 and 4124319333. Ann Hix Acting Director of Community Development Presented by 9-31