MEMORANDUM

TO: Timothy Navarre, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

FROM: Bonnie L. Golden, Grants Manager

DATE: November 9, 2000

SUBJECT: Resolution Authorizing Participation in the State's Community Develop Block Grant Program in Cooperation with the Nikiski Senior Citizens, Inc.

The Nikiski Senior Citizens, Inc., has requested that the Borough participate in the State's Community Development Block Grant Program ("CDBG") and file a joint application for funding. The Alaska Department of Community and Economic Development ("DCED") has notified the Borough of the availability of grant funding through their CDBG program for federal fiscal year 2000. Eligible applicants are any municipal government entity as defined by Title 29, except the Municipality of Anchorage. Municipalities may submit a CDBG grant application in cooperation with a non-municipal entity such as a non-profit corporation organized under AS 10.20 that is in good standing with the State of Alaska. In this situation, a written cooperative agreement is required between the municipality and the non-profit, and must be submitted as part of the application packet. The maximum grant award is $200,000 and must be for activities that benefit low and moderate income persons. Grants are awarded on a competitive basis for projects that fall into one of three categories: community development, planning, or special economic development. Proposed projects are subject to a threshold review to screen applications for eligibility. Applications meeting all of the threshold review requirements qualify for the project rating and selection process.

Nikiski Senior Citizens, Inc., is seeking funding assistance to expand and improve their senior center, which is located on property owned by the corporation. A project of this type falls under the community development category under the CDBG program. Generally, applicants are required to have a "low to moderate income rating" of 51% or higher, as established by the Alaska Department of Labor. The community of Nikiski and the Borough do not meet the "low to moderate income rating" requirement of 51% or more. However, this requirement can be met if the project benefits one of the groups in the "limited clientele" category. Senior citizens fall within this category.

If the Assembly provides authority to submit an application, it must be accompanied by a cooperative agreement between the Borough and the Nikiski Senior Citizens, Inc. The agreement must state that "the Borough has the ultimate responsibility to assume all obligations under the terms of the grant, including assuring compliance with all applicable laws and program regulations and performance of all work in accordance with the contract." In effect, the Borough is the grant applicant and recipient and has ultimate responsibility for the grant. Borough costs, such as project management by our Capital Projects Division, would be charged to the grant. It should be noted, however, that the Nikiski Seniors would provide any matching requirements in the form of cash or in-kind contributions. Upon completion of the project, they would also have full responsibility for operations and maintenance of the facility.

Adoption of the attached resolution allows the Borough to submit an application packet for grant funding. Completed applications are due to DCED no later than December 1, 2000. Award announcements will be made in March 2001. Upon notification of a grant award, an ordinance accepting and appropriating the grant funds will be submitted to the Assembly for action.

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