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F'r- boo �,� ab The Board reviewed a Memorandum of December 8, 1997: TO: James E. Chandler County Administrator DEP RTMENT HEAD CONCURRENCE Obert Ki. Keating, AIC /J THROUGH: Sasan Rohani, AICP> . Chief, Long -Range Planning FROM: Peter J. Radke . Economic Development Planner DATE: December 8, 1997 RE: Amendments to Community Development Block Grant (CDBG) Application It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at its regular meeting of December 16, 1997. DESCRIPTION AND CONDITIONS In August 1996, Indian River County's Community Development Block Grant (CDBG) application was approved by the State Department of Community Affairs. The purpose of the grant is to provide for street and drainage improvements, water line extensions, and water connections to the Colored School and Whitfield subdivisions in the Wabasso area. A $750,000 CDBG was awarded to Indian River County to complete the aforementioned activities. In addition, the county committed $60,000 to the roadway and drainage improvements. To assist very low and low income households of both subdivisions with the cost of connecting to the county water system, County SHIP loans are available to eligible households. As part of the CDBG application, Indian River County pledged $200,000 from County SHIP funds to be used by households in the CDBG project area. These funds will be distributed as deferred payment, low interest loans (0% annual interest rate for very low income households and 3% annual interest rate for low income persons). With the SHIP loans, qualified applicants have the option of paying back the loans through a monthly payment schedule that is appropriate for their budget. The SHIP loans are available to qualified applicants to pay water impact fees and any needed plumbing system repairs. All other costs (line extension, fire hydrants, meters, service lines, road paving, and drainage improvements) will be paid with CDBG funds. In the past seven months, County staff have organized and attended three community meetings (04/29/97, 07/28/97, and 10/28/97) and three application workshops (06/20/97, 07/30/97, and 09/16/97) to inform residents ofthe project and to assist residents with the various application forms. Despite this effort, there has been a low response rate for completing CDBG water connection forms and applying for SHIP loans. On November 25, 1997, the CDBG Citizen Advisory Task Force voted 2-0 to recommend that the Board of County Commissioners approve the CDBG application amendments identified below. ANALYSIS On October 8, 1997. the CDBG project was awarded to the lowest bidder, Martin Paving Co. of Sebastian. Since the bid for the CDBG scope of work came in below the CDBG approved funding, the budget needs to be adjusted to match the bid of Martin Paving Co.. The proposed revised budget is identified below: DECEMBER 16, 1997 -16-