HomeMy WebLinkAboutIdentification of City Projects to be Funded with HB645 Stimulus Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
Anna Rosenberry, Finance Director
SUBJECT: Identification of City projects to be funded with HB645 Stimulus Dollars.
MEETING DATE: August 31, 2009
AGENDA ITEM TYPE: Action
RECOMMENDATION: Identify projects to be funded with the City's HB645 allocation of
$621,000. Direct staff to make necessary applications to carryout construction of these projects.
BACKGROUND: The legislature's approval of HB645 includes an allocation stimulus
money to the City of Bozeman for $621,000. The money must be spent by September 30, 2010
or it reverts back to the State General Fund. Due to this short timeframe, and the spirit of
getting stimulus money "on the street" quickly, we need to determine which projects the city will
fund.
The Governor’s office has agreed to let us amend our original stated projects, since those
proposals were submitted under a VERY tight timeframe. A full listing of eligible project types
can be found on the HB645 Local Infrastructure Grant Program (attached, page 2 of 4)
Bozeman's current description of eligible projects include: "water system treatment project, water
reclamation facility -- water treatment plant design, recreation facility improvements, sidewalks
and restroom upgrades in parks, and debris removal."
Ineligible Project
Bogert Pool Repairs - $300,000. This CIP (GF-055) project is included in the General Fund
CIP schedule for funding in FY12. We received information from the Governor's office early
this week that swimming pools are not eligible projects under stimulus guidelines.
Previously Identified Project
1. Vehicle Maintenance Shop - $277,000. In the initial funding package for the City's Vehicle
Maintenance Shop and Remodel to Current Shop Complex, we proposed to spend this portion of
the HB645 allocation. Our partner in the project, Streamline, has also received stimulus money
to construct their portion of the project. Without these stimulus financing sources, the project
would not likely have moved forward.
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Update: We have opened bids on this joint project and the total for the apparent low-bidder on
the entire project is less than the original estimates. We are awaiting the final allocation of costs
to determine how much of this money may be necessary to complete the funding of our share of
the project.
Additional Proposed Projects (to total $344,000, or more, in case Vehicle Maintenance Shop
allocation is not needed.)
2. Curb Replacement Projects - up to $344,000+. As a part of the Curb Replacement program
details that are also being proposed on the agenda tonight, HB645 money could be utilized for all
or a portion of a curb replacement project. The list of projects in most need of repair is included
in that agenda item.
3. Bogert Park Improvements - $125,000. CIP (GF-023 in FY11) is the replacement of the
Tennis Courts & Basketball Courts at Bogert Park of $90,000. CIP (GF108 in FY11) is the
Bogert Park Sidewalk Replacement of $35,000. These items are scheduled to be funded out of
the General Fund, but FY11 taxable values/new construction dollars make funding uncertain.
Using HB645 dollars would complete the projects sooner than scheduled and provide certainty in
their funding and completion.
4. Parks Restroom Upgrades - $150,000 - $175,000. CIP (GF-084 in FY10) is the
replacement/upgrade of restrooms city parks. Bogert Restrooms were originally funded to be
replaced in FY09, but when logistical and neighborhood issues were encountered, Kirk Park
restrooms (scheduled for FY10) were completed instead. The FY10 CM Recommended Budget
does NOT include a restroom replacement, due to lack of funds. HB645 dollars could fund a
restroom replacement in a city park (Bogert, Lindley) or a new restroom (Rose Park, BMX
Park.)
FISCAL EFFECTS: Identification of these projects will result in staff aggressively working
towards their completion, due to the September 2010 deadline. We will begin incurring costs
and contracting for any necessary design/planning work immediately. Receipt and spending of
this full allocation was included in the FY10 City Manager's Recommended Budget.
ALTERNATIVES: There are many alternatives for use of this allocation. We have
based our recommendations on projects that have been included in the Adopted Capital
Improvements Plan for FY10-FY14 in the General Fund, and/or have posed recent funding
concerns.
Attachments: HB 645 Local Grant Program Details
Report compiled on: August 26, 2009
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GOVERNOR BRIAN SCHWEITZER
Home » Commerce » Local Government Grant Program
House Bill 645 Local Government Infrastructure
Grant Program
House Bill 645, the Montana Reinvestment Act passed by the 2009 Legislature, provided:
z $10 million in infrastructure grants for counties and
z $10 million for cities and towns
You can click on the appropriate link above to read the list of authorized projects and grant amounts
for counties, cities, and towns as authorized in HB 645.
All of us at the Department of Commerce are anxious to make these funds available as soon as
possible for local projects that will put Montanans back to work addressing critical local needs, while
stimulating both Montana's and the Nation's economy. We look forward to working with you to make your infrastructure project a success.
Click on the links for other topics:
z Procedure Used to Calculate Grant Amounts
z Preparation of Contracts
z Incurring Costs
z Financial Management
z Changing the Scope of a Project
z Applicable State Laws and Regulations
z Budget and Implementation Schedule
z Name and Title of Signatory for the Grant
z Reporting Requirements
Applicable State Laws and Regulations
All the standard state statutes and regulations will apply to the use of these funds, such as current
laws for bidding thresholds and procedures, as well as applicable state prevailing wage laws. If local
officials have questions on compliance issues, such as procurement, we suggest that they refer to the
Administrative Manual for Treasure State Endowment Program (TSEP) projects, which provides a summary of the state requirements that apply to local infrastructure projects that are using state
funds only.
Please see: http://comdev.mt.gov/CDD_TSEP_AM.asp for the text of the TSEP Administrative Manual.
Procedure Used to Calculate Grant Amounts
There has been some confusion among local officials caused by the changes in the bill as it worked its way
through the Legislature. As HB 645 left the House, it included a list of projects for all counties and municipalities with a specific dollar amount listed for the grant for each local government. The Senate struck the specific amount for each project and instead substituted alternate language that tied the
allocations to each local government to the formula used by the Montana Department of Transportation to distribute gasoline taxes.
The amounts of the final allocations for cities and towns and counties shown on this webpage may be
different from the amounts that were included in earlier versions of HB 645 because of the application of this formula. In addition, HB 645 was amended to provide that “The department (of Commerce) may
retain 1.13% of the amount of the grants to counties, cities, towns, tribal governments, and school districts for administrative purposes.”
As a result, the initial allocation for each local government using the gas tax formula was reduced by
1.13% to provide funding for the administration of the local government grant program. The final figures in the Excel spreadsheets on this webpage reflect the adjustments for program administration by the
Department of Commerce, as calculated by the Governor’s Office of Budget and Program Planning.
Preparation of Contracts between Department of Commerce and Local
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Government
The Department will need to prepare a contract with each local government prior to disbursing the
funds. The contract will lay out all the financial and job creation reporting and compliance issues consistent with the requirements of the American Recovery and Reinvestment Act (ARRA). Each local
government will need to provide a budget breakdown and implementation schedule using the fill-in
the-blanks templates provided on this website).
While these funds are not technically federal "stimulus" money but rather "freed-up state general fund"
money, the Governor intends to assure that all the Montana Recovery Act projects comply with the spirit
and intent of the American Recovery and Reinvestment Act (ARRA) for transparency and accountability.
The contract will include required the monthly financial and job creation reporting and compliance issues
consistent with the requirements of the ARRA.
Department of Commerce staff hope to keep the contracting process as simple as we can since
Department staff will have to prepare contracts for 185 counties and municipalities.
Incurring Costs
Department of Commerce Director, Anthony J. Preite, has authorized local governments to begin incurring eligible costs for their HB 645 projects as of May 14th, the date Governor Brian Schweitzer signed HB 645 and the law became effective. No costs related to a HB 645 local government grant can
be incurred or reimbursed for activities that take place prior to that date. Funds will be provided to local
governments once a contract for the grant is signed between the local government and the
Department of Commerce.
Financial Management
A standard requirement for receipt of federal funds is that the recipient entity's financial management system must meet generally accepted accounting principles. For all local governments that are in compliance with the State's audit and annual financial reporting requirements, the Department of
Commerce intends to disburse the HB 645 local government grant funds on a 90/10 basis: 90% of
the local government’s HB 645 grant amount will be provided to the local government upon the
signing of the contract by both parties: the balance will be sent when the local government has provided all the final reporting information required by the ARRA requirements. We believe that this is consistent with the Obama Administration's emphasis on transparency and accountability for the
use of stimulus funds and Governor Schweitzer’s commitment to comply with the spirit of the ARRA.
Changing the Scope of a HB 645 Infrastructure Project
If local governments need to change the scope of work for their grant project from that specified in
HB 645 (see Section 57 (3)(2)(c)i-vii, pages 45-48) the law outlines the procedure for that:
3) The governing body of a county, city, or town may choose to propose to the department of commerce an alternate project to those listed in subsections (2)(a) and (2)(b) based on the criteria in subsection (2)
(c). If the alternate project meets the criteria in subsection (2)(c), the Department shall approve the project.
The criteria of subsection (2)(c) include:
(i) designing, erecting, repairing, and remodeling public buildings or making energy efficiency
improvements to public buildings;
(ii) designing, constructing, and repairing sewers, storm sewers, sewage treatment and disposal plants, waterworks, and reservoirs;
(iii) designing, constructing, and repairing bridges, docks, wharves, breakwaters, and piers;
(iv) designing, constructing, reconstructing, improving, maintaining, and repairing roads;
(v) acquiring, opening, or widening any street and improving the street by designing, constructing,
reconstructing, and repairing pavement, gutters, sidewalks, curbs, and vehicle parking strips;
(vi) designing, building, renovating, and equipping parks and other recreation facilities; and
(vii) installing street lighting.
If a local government needs to change the scope of work for their Local Government Infrastructure
Grant project from that specified in HB 645, they should submit a request for the change on their
local government's letterhead. The letter should describe the basis of the need for the change in the
scope of work and how the alternate scope of work is consistent with one of the seven criteria listed above, i through vii. The letter should be signed by the local government’s chief elected official or
chief executive officer. The letter will become an attachment to the contract. Requests should be
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submitted to Dave Cole, Administrator of the Community Development Division, at the address
shown below.
Budget and Implementation Schedule
Below are links to the formats for the HB 645 Local Government Infrastructure Grant Budget and the
Implementation Schedule that local officials can download, fill out, and e-mail back to us so we can
prepare the contract for their project.
House Bill 645 Project Budget And Implementation Schedule Formats(pdf)
House Bill 645 Project Budget And Implementation Schedule Formats (Word)
Regarding the implementation schedule, please be aware that HB 645 states:
A recipient of funds under this section must expend the funds by September 30, 2010. Unexpended funds must revert to the state and be deposited in the state general fund.
Name and Title of Signatory for the Grant Contract
In addition, please provide the proper legal name and title of your local government’s chief elected
official or chief executive officer who will be signing the contract for your grant. This will be
incorporated in the signature block for the contract.
Copies of your budget, implementation, and the proper legal name and title of your local government’s chief elected official or chief executive officer who will be signing the contract for your
grant should be either e-mailed to:
DOCLocalGrant@mt.gov
or mailed to:
HB 645 Local Government Infrastructure Grants
Community Development Division
Montana Department of Commerce
PO Box 200523 301 South Park Avenue Helena, MT 59620-0523
Reporting Requirements
(a) Quarterly Progress Reports. During the term of their HB 645 Local Government Infrastructure
Grant projects, grant recipients will need to submit periodic project progress reports to the
Department within 30 days of the end of each calendar quarter. These reports will describe
the status of the activities set forth in Section 7 of their contract, SCOPE OF WORK, including, at a minimum, the percentage completed, costs incurred, funds remaining, and projected
completion date. The report must also describe any significant problems encountered in
carrying out the Project and the scope of any necessary modifications the grant recipient is
requesting in the SCOPE OF WORK, BUDGET, or Project Implementation Schedule. Timely
quarterly reports are extremely important to the Department’s ability to submit its reports to the Governor’s Office of Budget and Program Planning for the reporting requirements of the
Montana Reinvestment Act funds. The Department, at its discretion, may decline to honor the
final 10% Request for Payment if the required quarterly progress report has not been
submitted to or approved by the Department.
(b) Recovery Funds Reports. No later than the first Friday of each month during the term of this Agreement, grant recipients must report, at a minimum, for itself and all contractors,
subcontractors, and subrecipient entities, the following information:
(1) The dollar amount of all contractor invoices;
(2) The supplies delivered and the services performed;
(3) An assessment of the completion status of the work; (4) An estimate of the number of jobs created and the number of jobs retained as a result of the
Recovery funds.
“Jobs created” means the cumulative new positions created and filled, or previously existing
unfilled positions that are filled, for each project, as a running total over the life of the project,
expressed as “full time equivalent” (FTE), calculated cumulatively as all hours worked (jobs created cumulative work hours) divided by the total number of hours in a full time schedule,
as defined by the grant recipient.
“Jobs retained” means the cumulative previously existing filled positions that are
saved/retained for each project, as a running total over the life of the project, expressed as
FTE, calculated cumulatively as all hours worked (jobs saved cumulative work hours) divided
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by the total number of hours in a full time schedule, as defined by the Grant recipient. Job
counts should be converted to full-time equivalents. Temporary construction jobs should also
be converted to annualized full-time equivalents. For example, 20 full time jobs on a three
month project count as 5 full-time equivalent annualized jobs; and (5) Name and physical location of all contractors, subcontractors, and subrecipient entities engaged in any of the activities described in Section 7 of the contract, SCOPE OF WORK.
(c) Project Completion Report. Upon completion of the final Project, the grant recipient will submit a
final Project Completion Report to the Department. The Project Completion Report will
describe the total costs incurred for the Project, identify the final completion date, summarize any significant problems encountered in carrying out the Project, and provide the final
Recovery Funds information for each item set forth in paragraph (b) in this Section. Within 15
days of receiving the Project Completion Report, the Department will issue the Notice of
Project Close-out.
If you have any questions regarding the HB 645 Local Government Grants, contact:
Dave Cole, Administrator
Community Development Division
Phone: 406.841.2776
FAX: 406.841.2771
e-mail: DOCLocalGrant@mt.gov http://recovery.mt.gov/commerce/LocalGrant/
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