| HOME | SEARCH | ABOUT US | CONTACT US | HELP | ||
 |
 |
|
|
| Montana Administrative Register Notice 8-94-166 | No. 13 07/05/2019 | |
|
||
| Prev | Next | ||
|
BEFORE THE DEPARTMENT OF COMMERCE OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On May 24, 2019, the Department of Commerce published MAR Notice No. 8-94-166 pertaining to the public hearing on the proposed adoption of the above-stated rule at page 562 of the 2019 Montana Administrative Register, Issue Number 10.
2. The department has adopted the above-stated rule as proposed.
3. The department has thoroughly considered the comments and testimony received. A summary of the comments received, and the department's responses are as follows:
COMMENT NO. 1: Can DLA funds be considered as match for TSEP or CDBG grants already awarded? Can other State and Federal grants or loans be considered as match for DLA?
RESPONSE NO. 1: Thank you for your comment. Yes, in both cases.
COMMENT NO. 2: We are looking for help financing a major project for our school; removing and replacing most of our old, inefficient classroom heaters. Is this eligible for DLA?
RESPONSE NO. 2: Thank you for your comment. School district projects must complete activities that will address life safety or security issues, major repairs or deferred maintenance to an existing facility, or complete a major improvement or enhancement to an existing facility.
COMMENT NO. 3: Will the new HB 652 program treat school assistance requests the same as the previous Quality Schools Program?
RESPONSE NO. 3: Thank you for your comment. The Delivering Local Assistance program is a new and distinct program that has some similarities and some differences.
COMMENT NO. 4: How might the new program help with building a new hospital in Ekalaka?
RESPONSE NO. 4: Thank you for your comment. Eligible infrastructure projects can include improvements to public safety infrastructure which includes project activities to address emergency services needs.
COMMENT NO. 5: Reviewing the Centerville Quality Schools application and heard there would be more school funding coming. Is this true?
RESPONSE NO. 5: Thank you for your comment. Yes, the Delivering Local Assistance program makes available funding for eligible school district's projects.
COMMENT NO. 6: Does the DLA Program have a planning component that can fund PERs and PARs, or is it exclusively for construction?
RESPONSE NO 6: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. The Delivering Local Assistance program funds eligible infrastructure projects to eligible local governments that are impacted by natural resource development. Eligible Infrastructure Projects are listed in the application guidelines. Eligible local governments are encouraged to include all necessary project funding uses in the application to complete a project successfully; as an example, this could include planning costs, administrative costs, and construction-related costs.
COMMENT NO. 7: If a local government project received funding from other sources (especially state sources such as TSEP or RRGL), can it still receive funding from the DLA Program?
RESPONSE NO 7: Thank you for your comment. Yes.
COMMENT NO. 8: If a project goes into construction or out to bid, prior to applying for DLA funds, is the project still eligible for DLA funds?
RESPONSE NO 8: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. The project is eligible to apply; however, the application will be ranked based on need, which includes funding. If a project does begin construction, the department has placed limitations on the duration of time a project can incur costs before application to the program.
COMMENT NO. 9: Is a fire hall and/or a DES building/facility considered a facility for government administration?
RESPONSE NO 9: Thank you for your comment. Eligible infrastructure projects can include improvements to public safety infrastructure which includes project activities to address emergency services, law enforcement, or fire protection needs as well as projects that address needs for facilities for government administration.
COMMENT NO. 10: If TSEP or DNRC funds have been awarded to a project for Phase I, is the grantee eligible to apply for DLA funds for the same phase? For example: the Town of Dodson received $362,150 in HB 11, can the town apply for $387,850 of DLA funds?
RESPONSE NO. 10: Thank you for your comment. Yes.
COMMENT NO. 11: If TSEP or DNRC funds have been awarded to a project for Phase I, is the grantee eligible to apply for DLA funds for Phase II?
RESPONSE NO. 11: Thank you for your comment. Yes.
COMMENT NO. 12: Are infrastructure improvement projects related to levees eligible to apply for DLA funds?
RESPONSE NO. 12: Thank you for your comment. Eligible infrastructure projects can include improvements to public safety infrastructure which includes project activities to address emergency services, law enforcement, or fire protection needs as well as projects that address needs for facilities for government administration. Project activities proposed must meet the intent of the program and adequately respond to the application questions to receive funding.
COMMENT NO. 13: Understanding no matching funds are required, what would be the recommended match amount? RESPONSE NO. 13: Thank you for your comment. No match is required; however, consideration of match in the project as it relates to the project activities will be considered as part of the application ranking process.
COMMENT NO. 14: Do the planning documents submitted with applications need to be comprehensive, such as a PER or PAR? Also, will a PER amendment be sufficient?
RESPONSE NO. 14: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. Planning documents specifically supporting project design, including but not limited to PERs or PARs, are not required. But if submitted, they should follow acceptable industry standards or the department's planning document standards, as applicable to the planning document.
COMMENT NO. 15: If a PER or PAR identify multiple phases for a project, but funding received is for only Phase 1, can the DLA Program be used to fund the additional phases, knowing they have already been identified in the planning document?
RESPONSE NO. 15: Thank you for your comment. Please see the response to Comment 11.
COMMENT NO. 16: Can HB 652 funds be used to assist a new Fire Hall/EMS facility in Red Lodge?
RESPONSE NO. 16: Thank you for your comment. Please see the response to Comment 9.
COMMENT NO. 17: "In regards to Polson's wastewater system needs, are the new HB 652 funds grant funds or loan funds and what are the next steps that Polson must take to access these funds?"
RESPONSE NO. 17: Thank you for your comment. The DLA Program provides grants and not loans. Please see the response to Comment 6.
COMMENT NO. 18: Can an entity apply for a DLA grant if they applied for and received a TSEP grant in the 2018 grant cycle (2019 biennium)? In the grant application guidelines under Eligible Funding, it specifically mentions applicants that apply for the DLA program who also applied for 2018 TSEP funding but did not receive legislative approval. Does that imply that projects that did receive TSEP funding would not be eligible?
RESPONSE NO. 18: Thank you for your comment. The Delivering Local Assistance program only limits the amount of funding a Treasure State Endowment project, that was submitted for approval to the 66th Legislature but did not receive approval for funding, can request from the Delivering Local Assistance program. The amount of project funding requested from the Delivering Local Assistance program must be the same as that requested from the aforementioned Treasure State Endowment program.
COMMENT NO. 19: Are grants eligible for the same amount that they would be eligible from TSEP? For example, if the applicant was eligible for a $500,000 TSEP grant, would they only be eligible for a maximum of $500,000 from the DLA program?
RESPONSE NO. 19: Thank you for your comment. Please see the response to Comment 18.
COMMENT NO. 20: How much money is available for DLA grants?
RESPONSE NO. 20: Thank you for your comment. $21.5 million is available to award to eligible applicants.
COMMENT NO. 21: For the DLA program, is planning allowed as an eligible project cost? Could both planning and construction phases be included in one application?
RESPONSE NO. 21: Thank you for your comment. Please see the response to Comment 6.
COMMENT NO. 22: Are the projects that did receive TSEP funding allowed to apply for DLA funding? If so, can DLA funding be used to meet the TSEP match?
RESPONSE NO. 22: Thank you for your comment. Please see responses to Comments 1 and 18.
COMMENT NO. 23: Will this grant be available beyond 2021?
RESPONSE NO. 23: Thank you for your comment. This program is authorized for the 2021 biennium only.
COMMENT NO. 24: Who would I contact to discuss eligible projects for the new infrastructure program grants? RESPONSE NO. 24: Thank you for your comment. Additional comments or questions can be directed to Montana Department of Commerce, Community Development Division, (406) 841-2770 or [email protected].
COMMENT NO. 25: Eligibility of a specific project. The City of Dillon has needs for their historic City Hall building. The needs include a new roof, ADA improvements, electrical, and plumbing improvements. As you know there is not much grant money out there for city administrative buildings. It appears from reading the information that city administrative buildings may be eligible. Is that the case and if so what kind of work would be eligible (i.e., roof, ADA, etc.)?
RESPONSE NO. 25: Thank you for your comment. Please see response to Comment 12.
COMMENT NO. 26: Would construction of a new water and sewer maintenance building to house the City of Dillon's department offices, lab, and equipment be eligible?
RESPONSE NO. 26: Thank you for your comment. Please see response to Comment 12.
COMMENT NO. 27: The application indicates a PER or PAR may be required, yet the intent of the dollars (authorization) is to get the money out the door for maximum impact in a timely manner. These documents are frequently 4-inch binders, take a year to produce, and cost $40,000-$50,000. Can the language be reduced to preparation of a feasibility study – outline economical and advantages of project rather than a full PER?
RESPONSE NO. 27: Thank you for your comment. Please see the response to Comment 14.
COMMENT NO. 28: If an applicant is submitting more than one application, what does it mean to prioritize? You could receive application(s) from four entities within a county – water and sewer district, county, school district, and municipality – how is the priority determined within the $1.5 million in the county? Please clarify how the prioritization will occur.
RESPONSE NO. 28: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. Individual eligible applicants must prioritize their own applications, if they are submitting more than one application with overlapping boundaries. As an example, a city must prioritize city projects applied for, but does not need to prioritize based on a school district's project.
COMMENT NO. 29: The application indicates no more than 500 words per question. Do the sub questions include the 500 words or not? 1(a) gets 500 words, 500 more for 1(b), and so on? Please clarify.
RESPONSE NO. 29: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment.
COMMENT NO. 30: Under financial capacity, it is the intent to maximize the dollars where natural resource impacts have occurred, how does analyzing the financial impact based on a budget work? There's no way to determine, from a budget, the impact in a community to all roads, bridges, and water & sewer systems to make a determination. The determination in this instance needs to be about the impacts of oil & gas, not fiscal amounts, user rates, et cetera for this program. Other programs do that but those are competitive in a different way, focus needs be on natural resource impacts.
RESPONSE NO. 30: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. The review of applications includes a review of the applicant's financial need, including those relative to the natural resource development impacts. User rates will only be reviewed if applicable.
COMMENT NO. 31: Asked again on page 7 about PER or PAR. Need to be really careful to not bog projects down with PER, PAR. Idea is to find most feasible, cost effective, efficient manner to complete projects without mound of paper.
RESPONSE NO. 31: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. Please see the response to Comment 14.
COMMENT NO. 32: Application alludes to additional points for a history of successfully managing and implementing grants for this system. What if it's a new system in the community? I don't want to see an applicant get extra points for having gotten grant money before and a community that hasn't worked with grants get penalized for never managing a grant.
RESPONSE NO. 32: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. The review of applications includes a review of the applicant's financial need, including those relative to the natural resource development impacts. Ranking considerations also includes the review of audits and, as applicable, administration of previous projects.
COMMENT NO. 33: Please respond or explain how the department will award $10.75 million to local governments other than school districts and $10.5 million to school districts as set forth in the bill.
RESPONSE NO. 33: Thank you for your comment. Once applications have been received the department will rank applications and award funding based on the ranking established in the guidelines and any limitations set forth in HB 652. HB 652 provides that "$10.75 million must be distributed to local government for school district infrastructure projects."
COMMENT NO. 34: This program is listed in HB 652 along with some TSEP projects whose awards were restricted due to target rates. This program does not have discussion about target rates. Please clarify if an applicant also received TSEP funds or have been approved for that process, are they eligible for this process or are they exempted?
RESPONSE NO. 34: Thank you for your comment. Target rates do not apply to the Delivering Local Assistance program. Yes, an applicant may be eligible for both.
COMMENT NO. 35: Along with PER/PAR question earlier, it is stated one has either been completed or will be completed, so there is no option for another type document. It was my understanding this program could be for projects that don't require a full PER/PAR and if applies could make projects more costly. Please clarify.
RESPONSE NO. 35: Thank you for your comment. Please see the response to Comment 14.
COMMENT NO. 36: Applications are being received June 1 – September 30. Unclear on how or when projects will be awarded. Will they all be saved until June 30 then awarded or will they be awarded on first come first served or how they are coming into the process? The award process may make a difference on whether the project can happen this summer or next summer.
RESPONSE NO. 36: Thank you for your comment. The department will incorporate clarifications in the guidelines related to this comment. Applications can be submitted beginning June 1, 2019 and no later than September 30, 2019. Awards will be made, and applicants will be notified of awards in late fall 2019.
COMMENT NO. 37: Reiterated comments about full PER/PAR and making the process drawn out.
RESPONSE NO. 37: Thank you for your comment. Please see response to Comment 14.
COMMENT NO. 38: General comment on having a process that is fair, equitable, expedient, and having details up front. Since the Legislation passed, hoping that answers to today's questions are received in a timely fashion and questions from legislators will come in about how the process went, meeting expectations, and legislators have answers about the process for questions they may receive locally.
RESPONSE NO. 38: Thank you for your comment.
COMMENT NO. 39: It is my understanding if you applied for TSEP and didn't receive funding, you can only apply here for the original amount. The TSEP projects listed here in HB 652 do not provide enough funding for all projects and have to meet start up conditions on a timeline, some might jump ahead of other projects in the priority order. So, if a project is low on the 652 list when and who is allowed to come in for this program. Please clarify.
RESPONSE NO. 39: Thank you for your comment. Please see responses to Comments 7 and 18.
COMMENT NO. 40: We are in substantial need for safety money to complete a security camera project, fix an aging PA system so that all staff can hear when a lock down is announced, and in need of completely re-keying the school and upgrading the locking mechanisms. However, I'm unsure if we will qualify for the new grant as we do not have coal or gas issues in our county. Can you clarify this for me when you have a moment?
RESPONSE NO. 40: Thank you for your comment. Please see the response to Comment 6.
COMMENT NO. 41: If the DLA program is administered with the same target rate requirements as the TSEP program the City of Sidney will remain ineligible for grant assistance. We strongly request that the final application delete the target rate requirement altogether or use the target rate per the 2000 Census for incomes.
RESPONSE NO. 41: Thank you for your comment. Target rates do not apply to the Delivering Local Assistance program.
/s/ Garrett Norcott /s/ Tara Rice Garrett Norcott Tara Rice Rule Reviewer Director Department of Commerce
Certified to the Secretary of State June 25, 2019. |
A directory of state agencies is available online at http://www.mt.gov/govt/agencylisting.asp.
For questions about the organization of the ARM or this web site, contact [email protected].
