Meeting Type: BCC Regular Meeting
Meeting Date: 8/2/2022
Item Status: New
From: Ron Cink, Budget Director; Cian Harrison, Clerk/Treasurer
Submitted by: Kathy McHugh, Grants Administrator
______________________________________________________________________
ITEM TITLE
Title
Response to Alabama Department of Economic and Community Affairs (ADECA) Letter Related to Closeout of Community Development Block Grant (CDBG) Project CY-CM-PF-18-009
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STAFF RECOMMENDATION
Recommendation
Approve the attached response letter to ADECA regarding closeout concerns notated in ADECA’s letter dated June 10, 2022, related to CDBG Project CY-CM-PF-18-009.
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BACKGROUND INFORMATION
Background: On 06/13/2022, the County received a letter dated 06/10/2022 from ADECA (attached) via email requesting clarification regarding closeout of CDBG Project CY-CM-PF-18-009. The letter indicated that the County did not closeout the grant by ADECA’s March 31, 2022 closeout deadline to allow for submittal of a 2022 CDBG grant application, as initially planned, and that the project cannot be closed out currently due to outstanding questions related to the number of low and moderate-income (LMI) beneficiaries and the number of LMI households to be hooked-up to the new water service based on a comparison of actual beneficiaries to those stated in the original grant application. The letter also indicates that the project’s status remains in question and details additional issues / concerns related to the use of CDBG funds to hookup non-LMI households, need for a formal amendment / revised budget, and documentation related to refusal of service by LMI households. The proposed response letter does not fully address all issues in light of a recommendation by ADECA to keep the project open while the Perdido Bay Water Sewer and Fire Protection District (PBWSF) attempts to provide additional water service hook-ups and/or secure Refusal of Service forms for those households that are not currently hooked-up to the new water service. This matter has been discussed with ADECA and the County has been advised that the proposed response is appropriate while additional efforts are being taken to achieve the original objectives of the grant application.
Previous Commission action/date:
07/07/2020 - 1) Approved local amendment to CDBG project CY-CM-PF-18-009; and 2) Authorized the Chairman to execute documents necessary to locally amend the budget from "cash" only matching funds of $378,000.00 to 60% ($227,400.00) “cash” and 40% ($150,900.00) “in-kind” to provide the household water connection services to 86 households, with no overall increase or decrease proposed to the original budget.
06/04/2019 - 1) Adopted Resolution 2019-094 accepting CDBG project CY-CM-PF-18-009 from ADECA for the extension of water service along County Road 93 and adjacent roads beginning south at U.S. Highway 98 and ending north at Bishop Trace Road near Lillian and authorize the Chairman to sign necessary documents and execute the grant agreement on behalf of the Baldwin County Commission for $350,000; and 2) Adopted Resolution #2019-95 authorizing Intergovernmental Sub-Recipient Agreement for CDBG project CY-CM-PF-18-009 with PBWSF, obligating PBWSF to provide $378,300 of matching funds.
07/17/2018 - 1) Adopted Resolution #2018-099 authorizing the PBWSF to submit a 2018 CDBG application to ADECA requesting $350,000.00 to improve and extend public water services near the Town of Lillian; and 2) Authorized the Chairman to execute all required grant application documents on behalf of the County.
06/19/2018 - Adopted Resolution #2018-091 authorizing the PBWSF to prepare the 2018 CDBG application to request funding from the Alabama Department of Economic and Community Affairs (ADECA) to improve and extend public water services near the Town of Lillian.
05/22/2018 - Mr. Mark Bohlin and Ms. Stacy McKean, on behalf of the Perdido Bay Water Sewer and Fire Protection District, came before the Commission to discuss the 2018 Community Development Block Grant (CDBG) Application to the Alabama Department of Economic and Community Affairs (ADECA), after not being funded under the 2017 competitive grant cycle.
08/15/2017 - 1) Adopted Resolution #2017-131, which authorized the PBWSF to submit a CDBG application to ADECA requesting $350,000.00 in funding and allowed the Chairman to sign all grant application documents; and 2) Adopted Resolution #2017-132 of the Baldwin County Commission, which determined that utilizing CDBG funds to provide the household connections to the new water services for the PBWSF would serve a Public Purpose.
06/06/2017 - Adopted Resolution #2017-101 of the Baldwin County Commission which authorized the PBWSF to submit a CDBG application to ADECA requesting funding under the 2017 competitive grant cycle.
FINANCIAL IMPACT
Total cost of recommendation: N/A
Budget line item(s) to be used: N/A
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
Letter approved by Brad Hicks, County Attorney, 07/25/2022 (KM)
Reviewed/approved by: N/A
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: Response to be sent to ADECA no later than 08/09/2022 (60 days from 06/10/2022).
Individual(s) responsible for follow up: Administration
Action required (list contact persons/addresses if documents are to be mailed or emailed): Print letter on letterhead and mail along with attachments to:
Mr. Kenneth W. Boswell, Director
Alabama Department of Economic and Community Affairs
Post Office Box 5690
Montgomery, Alabama 36103-5690
Electronic copy of letter via email only to:
Shabbir Olia - Shabbir.Olia@adeca.alabama.gov
Stacy McKean - stacylmckean@gmail.com
Additional instructions/notes: N/A