#5 Action on a mutual cooperation agreement for Neighborhood Stabilization Program
NEIGHBORHOOD SERVICES MEMORANDUM
April 13, 2009
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Mutual Cooperation Agreement Between the City of Janesville, the
City of Beloit, and Rock County Under the Neighborhood
Stabilization Program.
Summary
The State of Wisconsin has expressed a preference for the City of Beloit, County
of Rock and City of Janesville to enter into a cooperative agreement for the
administration of the Neighborhood Stabilization Program rather than
administering three separate agreements. Participation in a cooperative
agreement will simplify program monitoring for the State of Wisconsin, and will
simplify grant administration for the three participating governmental jurisdictions.
Department Recommendation
The Neighborhood Services Department recommends that the Council approve
the attached Mutual Cooperation Agreement between the City of Beloit, the
County of Rock and the City of Janesville for administration of the Neighborhood
Stabilization Program.
Suggested Motion
I move to approve the Mutual Cooperation Agreement between the City of
Janesville, the City of Beloit, and Rock County for administration of the
Neighborhood Stabilization Program.
City Manager Recommendation
I recommend approval of this intergovernmental agreement.
Background
In January 2009, the City Council authorized staff to apply for a Neighborhood
Stabilization Program (NSP) grant through the State of Wisconsin Department of
Commerce. This program allows municipalities and qualified non-profit
organizations to acquire foreclosed properties for the purpose of rehabilitation,
redevelopment, or demolition.
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During a regional grant allocation meeting on March 24, the State expressed a
preference for the City of Beloit, the City of Janesville and the County of Rock to
work together as a Consortium. This arrangement is consistent with what the
three communities have done with other programs, such as the HOME Program
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where Janesville is the Representative member and the Lead Hazard Reduction
Grant where Rock County administers the grant. These programs are operating
well under the consortium format.
Under the NSP consortium, the City of Beloit will serve as the Representative
Member and shall assume responsibility for ensuring the Consortium’s NSP
Program is carried out in compliance with the State and Federal Program. The
City of Janesville will continue to be responsible for administering the program
within the City of Janesville boundaries.
Under the NSP consortium, the City of Janesville will receive 52% of grant
funding, the City of Beloit will receive 40% of funding and Rock County will
receive 8% of funding. During the allocation meeting, a specific dollar amount
was allocated to Rock County and Jefferson County Habitat for Humanity, who
were the two non-CDBG Entitlement Communities. The remaining funds were
divided among the Entitlement Communities based upon the original HUD
formula and distribution for allocating funds.
The City is awaiting its official notice from the State, however, results of a
regional allocation meeting indicate the City will receive about $918,000 in
housing funds and $69,000 in administrative funds for this program. This level of
funding should allow for the rehabilitation of six single family and rental projects,
and the demolition of four structures (2 lots to be donated for redevelopment).
The City of Beloit Common Council is considering action regarding the proposed
mutual cooperation agreement at their meeting on April 20, 2009.
Analysis
Wisconsin State Statutes allow intergovernmental agreements, such as that
being proposed here. The City of Beloit and City of Janesville’s plan’s for utilizing
Neighborhood Stabilization funds are consistent and should make the
cooperative agreement easier to manage. The City of Beloit has staff who are
knowledgeable in the CDBG and HOME programs and who have the experience
necessary to ensure the consortium program is in compliance with the State and
Federal Requirements. The cooperation agreement is consistent with other joint
efforts between the City of Beloit, City of Janesville and Rock County.
The City of Janesville will continue to be responsible for managing the program
within the City limits. Our funding level was determined by the State through the
Regional Allocation meeting. Entering into the cooperative agreement will
facilitate the sharing of information between the participating jurisdictions, which
should in turn simply program administration.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services
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MUTUAL COOPERATION AGREEMENT
UNDER THE
NATIONAL NEIGHBORHOOD STABLIZATION PROGRAM
Federal Fiscal Years 2009-2013
This agreement entered into among the City of Janesville, a Wisconsin Municipal Corporation,
the City of Beloit, a Wisconsin Municipal Corporation, and the County of Rock, a political
subdivision of the State of Wisconsin. All collectively referred to herein as the “Consortium”
WHEREAS, the Neighborhood Stabilization Program (hereinafter called WNSP Program) is
authorized under Title III of Division B of the Housing and Economic Recovery Act (HERA),
2008 (Pub. L. 110-289, approved July 30, 2008) for emergency assistance for redevelopment of
abandoned and foreclosed homes and residential properties; and
WHEREAS, Section 66.0301 of the Wisconsin Statutes authorizes intergovernmental
agreements; and
WHEREAS, the parties are mutually developing a plan to utilize the WNSP program; and
WHEREAS, the parties have determined that obtaining funds under the WNSP program will
increase their ability to redevelop neighborhoods negatively impacted by foreclosures;
NOW THEREFORE, for good and valuable consideration the parties do agree and covenant as
follows:
SECTION 1. DEFINITIONS
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a.“Member” The City of Beloit, City of Janesville and the County of Rock
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b.“Administrative Member” The Cities of Beloit and Janesville and the County of Rock.
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c.“Representative Member” The City of Beloit shall be the Representative Member and
shall assume the responsibility for ensuring that the Consortium’s WNSP program is
carried out in compliance with the requirements of the WNSP program.
SECTION 2. FUNDING
Funds for the Consortium will be distributed as follows:
a.Forty percent (40%) of the funds shall be reserved for specific activities or projects
administered by the City of Beloit.
b.Fifty-two percent (52%) of the funds shall be reserved for specific activities or projects
administered by the City of Janesville.
c.Eight percent (8%) of the funds shall be reserved for specific activities or projects
administered by the County of Rock.
d.The above allocation of funds will be reexamined and adjust on or about October 1, 2009
of this agreement based on each member’s ability to effectively use the available funding.
SECTION 3. ACTIVITIES
a.Each member shall cooperate in undertaking, or assist in undertaking, eligible WNSP
program activities in compliance with the regulations in the National Stabilization
Program authorized under Title III of Division B of the Housing and Economic Recovery
Act.
b.Each member shall implement affirmative action to further fair housing in their
jurisdictions consistent with the requirements of this Program. Such actions may include
planning, education and outreach, and enforcement components.
SECTION 4. ADMINISTRATION
a.The City of Beloit shall be the Representative Member and shall carry out necessary
administrative
overall responsibilities for the Consortium, with the cooperation of all
members
, consistent with the WNSP program regulations. The City of Beloit will
administer the WNSP program within the municipal boundaries of the City of Beloit.
b.The City of Janesville will administer the WNSP program within the municipal
boundaries of the City of Janesville.
c.The County of Rock will administer the WNSP program within the County of Rock
excluding the Cities of Janesville and Beloit.
d.Each Administrative Member shall submit in a timely manner to the Representative
Member all information necessary for participation in the Consortium. This includes, but
is not limited to, written agreements executed with subrecipients, and performance
reports.
e.Each Administrative Member of the Consortium shall start its WNSP program years on
January 1 except in 2009 where the WNSP program year shall begin upon the date of
execution of this agreement.
SECTION 5. AMENDMENT, WAIVER
No amendment or waiver of any provisions of this Agreement shall be effective unless the same
shall be in writing, approved and signed by the legal authority of the Administrative Members.
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SECTION 6. ENTIRE AGREEMENT
This Agreement embodies the entire agreement and understanding of the parties hereto with
respect to the subject matter herein and supersedes all prior agreements and understandings of
the parties hereto relating to the subject matter herein.
SECTION 7. CONFLICTING AGREEMENT
In case of any conflict between this Agreement and any other document, this Agreement shall
control.
SECTION 8. ARBITRATION
In the event that the parties are unable to agree with respect to any action to be taken pursuant to
this Agreement, and or any matter or issue arising under this Agreement, then any of the parties
may elect to submit the issue to arbitration in accordance with Chapter 788, Wisconsin Statutes.
Each party will be responsible for their own costs for legal representation. Any costs for the
arbitrator involved in said arbitration will be borne equally by the parties involved, regardless of
the final determination.
SECTION 9. LIMITATION OF LIABILITY
None of the parties to this Agreement shall be liable to the other parties for any action or failure
to act or any error of judgment, negligence, mistakes, or oversight whatsoever on the part of such
party or such party’s agents, officers, or employees with respect to any transaction relating to the
Agreement, provided that such party has acted in good faith and has not been guilty of gross
negligence or willful misconduct.
SECTION 10. COMPLIANCE WITH ANTI-DISCRIMINATION LAWS
The WNSP grant will be conducted and administered in conformity with title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and
implementing regulations.
SECTION 11. COMPLIANCE WITH LEAD-BASED PAINT PROCEEDURES
The activities concerning lead-based paint will comply with all applicable laws, regulations, and
ordinances.
SECTION 12. DURATION OF THIS AGREEMENT
This Agreement, approved this _________day of _______________, 2009, shall be in force for
the time necessary to complete WNSP activities funded from federal fiscal years 2008, 2009,
2010, 2011, 2012, and 2013. It shall terminate when all WNSP Program funds for said years are
expended or are permanently withdrawn by the U.S. Department of Housing and Urban
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Development. The members shall remain in the Consortium and not end their participation in it
until the time of termination.
The undersigned represent that they are fully authorized under State and local law to enter this
agreement and that the Agreement provides full legal authority for the signatory parties to
undertake or assist in undertaking WNSP Consortium activities.
CITY OF JANESVILLE
By:
Eric Levitt, City Manager Date
By: __________________________________________
Jean Wulf, City Clerk-Treasurer Date
Approved as to form:
By: 4/20/09
Wald Klimczyk, City Attorney Date
CITY OF BELOIT
By:
Larry N. Arft, City Manager Date
By: __________________________________________
Carol Alexander, City Clerk, WCPC/CMC Date
By: __________________________________________
Paul York, City Comptroller Date
Approved as to form:
By:
Thomas Casper, City Attorney Date
COUNTY OF ROCK
By:
J. Russell Podzilni, County Board Chair Date
By: __________________________________________
Lori Stottler, Clerk Date
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Approved as to form:
By:
Jeffrey Kuglitsch, Corporation Counsel Date
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