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HomeMy WebLinkAboutMontana Department of Commerce (4)M NTANA Department of Commerce March 14, 2008 301 S ParkAve. * BO. Box 200501 * Helena, Montana 59620-0501 Pho~e40B-841-2700 * Fax406-841*2701 * TDD:406-84142702 * http:/Icomn Kenneth OIson, Jr., Mayor P O Box 10 Laurel MT 59044 UAR I 8 008 CITY OF LAUREL Dear Mayor OIson: At the request of Rep. Jon Sesso, the Department of Commerce prepared a document outlining '~lwoptton that would altow communities awarded a TreasureState :E~rogmm t'TSEP) grant by the 2007 Legislature to potentially reduce the scope of their project (see attached document). The Legislative Finance Committee considered this option recently and unanimously voted in support of it. The above-mentioned option may allow some communities awarded a TSEP grant by the 2007 Legislature to move forward with a reduced project, subject to the discretion of the Department of Commerce. For example, this may possibly allow a community to remove components of their currently approved project in order to move forward under their existing grant award and then to apply for a new TSEP grant to construct the removed components of their project at a future time. The deadline to apply to TSEP for a new construction grant is May 21 2008, If you am considering a reduction in the scope of your project and wish to apply to TSEP for a second phase, please contact the TSEP staff listed below as soon as possible. We ask that you understand that any request for approval of a reduction in scope for your project will be closely scrutinized by TSEP staff and determinations will be acted upon accordingly. Further, please note that evaluations of proposals for reduction in scope do not indicate a favorable resolution of the request. Also, no separate priority will be given in next year's TSEP allocation to components deleted from current applications; such proposals will be evaluated and scored on the same grounds as all other applications received. Therefore, communities should carefully consider a request for reduction in scope, because requests for future TSEP funds for these projects may not be approved by future legislatures. TSEP staff is available to discuss any proposed reduction in the scope of your project, bdef you on the new TSEP application guidelines, or discuss a new application to TSEP. If you have any questions, please call Jim Edgcomb at 841-2785 or Richard Knatterud at 841-2784, or email them at jedgcomb@mt.gov or rknatterud@ mt.gev. Sincerely, Department of Commerce BRIAN SCHWEITZER, GOVERNOR New Policy Adopted by the Department of Commerce Prepared at the Request of State Representative Jori Sesso To Allow Reductions in the Scope of TSEP Projects Mamh 13, 2008 The Department of Commerce will consider requests to reduce the scope of a project under the following circumstances: When the grant recipient is not able to obtain all of the grants that were proposed in the original TSEP application to the Department; or When projects costs have increased beyond what was proposed in the original TSEP application to the Depadment. Any proposal to reduce the scope of a project will be evaluated by the Department, and the Department may, in its sole discretion, agree to a reduction in the scope of a project. The Department must agree in writing to any proposed changes before such changes may be implemented by the grant recipient. In order for the Department to consider a reduction in the scope of a project, the grant recipient must demonstrate all of the following requirements: The grant recipient will continue to contribute toward the project the same amount or more in local funds as what was stated in the application. Local funds include the proposed use of loans, reserves, in-kind, and any other non-grant sources of funds. The grant recipient will continue to provide a dollar-for-dollar match to the TSEP grant, unless a hardship grant was approved, in which case the same proportion of match will be provided. The TSEP grant will be reduced, if necessary, in order to maintain the dollar-for-dollar match. The revised project to be constructed witt-bee stand-alone project, which is not dependent upon further funding, and be fully operable upon completion of the project. After taking into consideration the amount of funds that will be available in ~he reduced budget, the revised project will resolve the most serious public health and safety problems described in the original TSEP application to the Department before other, less serious, problems are addressed. When appropriate, the grant recipient will provide the Department with the technical justification for its proposed revised project, to ensure that the most critical problems will be resolved.