HomeMy WebLinkAboutMT Department of Commerce (7)TO:
FROM:
M N TANA
epartment of Commerce
COMMUNITY DEVELOPMENT DIVISION
Local Governments and Others Interested in
the Treasure State Endowment Program
Jim Edgcomb, Manager ~
Treasure State Endowment Program
NOV 2 0 2007
DATE:
November 14, 2007
RE:
Draft Application Guidelines for the Treasure State Endowment Program
The Montana Department of Commerce is pleased to acquaint you with the proposed
changes presented in the revision of the Treasure State Endowment Program (TSEP)
Application Guidelines. The guidelines explain how cities, towns, counties, tribal
governments, and county water, sewer, and solid waste districts may apply for grants
through the program for the next two years. The guidelines also explain the policies
that the Department proposes to follow in evaluating TSEP construction grant
applications that will be received next May in 2008, and then presented to the Governor
and the 2009 Legislature. The Department will hold a public hearing on the
proposed changes on December 12, 2007, and comments will be accepted
through December 20, 2007.
The entire text of the revised TSEP Application Guidelines highlighting the changes can
be viewed on the program's web site (http:/Icomdev.mt.gov/CDD_TSEP_Grants.asp),
or a copy can be provided if requested. The following information summarizes the
substantive changes that are being proposed and the page in the guidelines that the
change can be found:
In Section Ill - Construction Grants
[] Changed date that construction grant applications are due: May 2, 2008. Pg 11
and several other locations in guidelines.
[] Added a provision that allows communities awarded a TSEP construction grant
by the 2007 Legislature to submit a new application. If the applicant is
recommended for a new grant, a condition would be submitted to the 2009
Legislature that the recommended grant woUld be terminated if the applicant
ultimately meets start-up conditions by June 30~ 2009 and receives the TSEP
grant awarded by the 2007 Legislature. Applicants will be allowed to keep the
scores for Statutory Priorities #1 and #3 that were assigned in 2006 if the project
has not changed from what was proposed to TSEP in 2006. Pg 11
[] Modified the amount that can be requested. In order to qualify for the maximum
of $750,000, the applicant must be at least 150 percent of the community's
"target rate" (based upon the projected monthly rates with TSEP assistance)
upon completion of a proposed water, wastewater project, storm drain, or solid
waste project. Applicants that are less than 150 percent of the community's
"target rate" are limited to a maximum of $500,000. Counties with bridge projects
are simply limited to a maximum of $750,000. Pg 11
[] Added a text boX to clarify that if user rates are raised beyond what is necessary
to construct the project in order to qualify for a TSEP grant, a particular funding
amount, or simply to be more competitive, the local government must agree to
maintain rates at that level. Pg 1!
[] Changed the amount allowed per benefited household from $15,000 to $20,000.
Pg 11 and other appropriate pages where referenced.
[] Eliminated the limitation of $15,000 per household for economic development
related projects, when those benefiting from the project are primarily businesses
and there are few or no households. Pg 12
[] Modified the language related to counting the value of land and materials as match
to clarify that it will be the cost actually paid for the land or materials. Pg 13
[] Added clarification to box discussing MDOC recommending additional funding
for projects previously funded (no additional funds will be requested for an
existing project unless the local government can demonstrate that it has a strong
likelihood of receiving any additional funds necessary to complete the project).
Pg 18
[] Added a requirement in the section explaining administrative procedures and
requirements that there is a limit on how long a grant can be held for the grantee
(local governments will be requir~l_~ to me_et.sta~-up ~conditions by_December 31,
2012, or the grant contract will be terminated). Pg 20
[] Added text in a box discussing capital improvement plan, clarifying what
information should be in a CIP, and how it can make the application more
competitive. Pg 21
In Section IV - Preliminary Engineering Grants
[] Added clarification to discussion of match for PER grants that local funds being
used to match other grants cannot be used to match the TSEP funds. Pg 22
[] Added a statement allowing other state grants to match a PER grant in hardship
cases. Pg 22
[] Added clarification that costs for preparing the TSEP construction application are
ineligible for reimbursement or for match in regards to PER grants. Pg 23
[] Added clarification about when PER costs are eligible for reimbursement. Pg 23
[] Added a provision for counties to submit one application to study its bridge
system and another application to study an unincorporated area that is not
served by a community water or wastewater system. Pg 23
[] Modified the dates and circumstances for applying for PER grants. Pg 23 and
24
[] Added a Section on PER grant administration. An engineer must be procured
within Six months or the contract may be terminated. Grant agreements will not
be extended unleSs the grantee can demonstrate substantial progress and show
good cause for extending the date. Pg 24
In Secfion,V - Emergency Grants
[] Added clarification that TSEP emergency grants are not for funding routine
maintenance and added an example. Pg 25
In Appendix A - Format Instructions for TSEP Construction Applications
[] Added text in a box in the instructions for submitting a construction grant
application encouraging applicants to obtain a Certified Regional Development
Corporation's letter of support. Pg 28 and 29
[] Added a statement in the instructions for submitting the application that applicants
are encouraged to place on the computer diskette, photographs of the current
project conditions, diagrams, schematics of the proposed design, etc. to help the
reviewers dudng the scoring process to visualize the project better. Pg 30
In Appendix C - TSEP-Specific Information Required for Completing the Uniform
Preliminary Engineering Report
[] Added a statement for wastewater projects that opportunities for contact with
people must be documented with photos, maps, and other supporting evidence
in order to demonstrate the level of public use of the area. Pg 35 and also in
Appendix D with two of the scoring level examples Pg 63 and 64
[] Added limitations on proposed projects in floodplains. Pg 35
[] In the PER outline, clarified the requirements for who can inspect and rate
bddges (must be performed by individuals that have met the criteria outlined in
23 CFR 650, subpart C), and the information needed to document they are
qualified (bridges that have not been properly rated or inspected by a qualified
inspector may result in a lower score). Pg 38
In Appendix D - Application Review Process
[] Added clarification regarding a change to scoring Statutory Priority #3: changing
to four levels rather than five levels to score it. Pgs 43 and 72
Added a requirement that an application must receive a minimum of 2,700 points in
orderto be recommended for a grant. Pg 44
Added Clarification to a text box at the end of Statutory Priodty ~2 about
completing the Uniform Application: the Department reserves the dght to modify
the financial information submitted by the applicant in order to ensure that the
projected user rate is computed properly and most accurately reflects what the
projected rate is likely to be. Pg 52
Added scoring level definitions for all statutory priorities (except #2), including
project specific examples for Statutory Pdodty #1 - Pgs 57 to 82. Note: scoring
levels have not previously been included in the guidelines. The requirements for
being scored at a particular level have been modified and better defined. Items
that may be of particular interest include the following:
[] Discussion of how environmental pollution is scored is discussed on Pg 58.
[] Examples of how TMDL related problems could potentially be scored are
discussed on Pgs 64 and 65.
In Appendix E - Target Rate Analysis for Water, Wastewater and Solid Waste
Projects
[] Modified the target rate discussion and example to reflect the elimination of
multiplying the target percentage times a multiplier (a percentage) when
computing the target rate, which reduced the ultimata target rate in the past.
Pgs 85 to 89
E] Added text in a box discussing the change in methodology. Pg 87
[] Added clarification to discussion in a box (note for tribes): subsidization by the
tribe is viewed as the same as user fees paid by individuals. Pg 90
In Appendix H - Conducting an Income Survey
[] Several modifications were made on conducting an income survey from Pgs 100
to 104. Items of particular interest include the following:
[] A smaller sample size will be allowed when the number of households
exceeds 200.
[] Information was added to clarify how the income survey must be
accomplished in order to be acceptable (no rounding of incomes, no surveys
older than two years, the specific information that must be submitted, and
problems must be fixed within two weeks of being requested).
Your comments ara very important to the Department. Please consider attending the
public hearing on December 12, 2007, at 1'30 p.m., at the Department of Commerce,
conference room 228, 301 S Park Ave, Helena, to provide comments on the revised
TSEP Application Guidelines. Written~ commentsere st[ongJy encouraged~ a~ri the~
Department will accept them by mail (PO Box 200523, Helena, MT 59620), email
(jedgcomb~mt.gov), or fax (841-2771). Comments can also be submitted at the public
hearing so that your concems or suggestions are clearly communicated. In order for
your comments to be considered, they must be received no later than 5:00 p.m. on
December 20, 2007.
Thank you for your time and consideration of the changes proposed in the revised
TSEP Application Guidelines. Please contact the TSEP staff at 841-2770 if we can be
of assistance to you or if you have any questions regarding the proposed changes.