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2. Grant Acceptance - CDBG-ED ProgramCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Doug Russell, City Manager, From: Katharine Thompson, Community Development Manager Subject: Grant Acceptance Community Development Block Grant Economic Development (CDBG-ED) for Flathead Valley Community College, Heavy Equipment Program Meeting Date: July 1, 2013 Background: The City of Kalispell has been awarded a grant of up to $359,500 on behalf of Flathead Valley Community College (FVCC) from the Montana Department of Commerce, Community Development Division for a Community Development Block Grant (CDBG)--Economic Development program. This CDBG-ED grant award is for the purchase of equipment for expanding the existing heavy equipment operator licensing program. FVCC will use the funds to acquire heavy equipment including: Caterpillar M Series 140 Grader, DC Class bulldozer, Cat 615-Size scraper, mid -size loader, 200 Class Excavator, 304 Class Excavator and a Sheep's Foot Kit for a 536 roller. Flathead Valley Community College will provide matching funds from the college's reserves as required by the grant. The project is expected to take two years to complete, primarily for tracking job placement outcomes. Equipment will be purchased within the first six months of funding availability. Reporting for the program will continue over the following four semesters. It is anticipated that this project will attract 80 students overall including at least 48 low to moderate income individuals. Recommendation: It is recommended that the City Council accept a Community Development Block Grant —Economic Development grant from the Montana Department of Commerce in an amount up to $359,500 on behalf of Flathead Valley Community College. Fiscal Impact: The City will receive an administrative fee of up to $10,000 for staff time and expenditures and $2,000 for audit fees. Alternatives: As suggested by Council. Respectfully submitted, " I 94ati-e Katharine Thompson Community Development Manager MONTANA June 11, 2013 DEPARTMENT OF COMMERCE City of Kalispell PO Box 1997 Kalispell, MT 59903 Dear Mayor Fisher: Congratulations! The Montana Department of Commerce is pleased to inform the City of Kalispell that a decision has been made to provide a tentative award of $359,500 in funding from the CDBG-ED Program. The CDBG-ED award is to be used as follows: • Up to $359,500 in CDBG-ED funding to be used as a grant to Flathead Valley Community College to be used for purchase of training vehicles by the college for the training of construction equipment operators. • Up to $10,000 in CDBG-ED funding to be used as for grant administration. Under the CDBG-ED program: The City may consider this letter as authorization to incur appropriate administrative costs effective June 11, 2013. Under 24 CFR, part 58.34, certain administrative project activities are considered environmentally exempt from NEPA and other federal laws. These exempt administrative activities include gathering information necessary for preparing the loan agreement, and publishing legal notices, etc. It is essential that the City not incur activity costs relating to the grant, or obligate funds which are intended to be reimbursed with CDBG-ED funds prior to the date the City has satisfied all contract start-up conditions, including completion of a contract between the City and the Department. No reimbursement for expenses will be made until the contract with the Department has been executed, and the CDBG-ED staff gives approval for the City to submit requests for funding. The approval of the release of start-up conditions will be submitted in writing by the Department. The Department will contact you with required start-up conditions for this CDBG-ED project under separate cover. In the meantime, if you have any questions regarding this CDBG-ED project, please contact Debra Demarais, Section Manager, at (406) 841-2736 or by e-mail at ddemarais(cD,mt.gov. Since Meg 0' 0,thW%rw&rFIathead Valley Community College 140 OR STEVE BULLOCK, GOVERNOR http://commerce.mt.gov Commerce@mt.gov 301 S. Park Ave. I P.O. Box 200501 1 Helena, MT 1 59620-0501 1 Phone: 406.841.2700 1 Fax: 406.841.2701 1 TDD: 406.841.2702