South Central Reporter

City of Salem City Council met Oct. 21.

Here are the minutes provided by the council:

PUBLIC HEARING ON PROPOSED FEDERALLY FUNDED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT

I. Call to Order

The Public Hearing for the proposed federally funded Community Development Block Grant (CDBG) project was convened in the Council Chambers of Salem City Hall. Mayor Nicolas Farley called the meeting to order at 5:45 PM.

Council members present:

Councilwoman Tracy Crouch

Councilman Royce Bringwald

Councilman Jim Koehler

Mayor Nicolas Farley

Council members absent:

Councilman Craig Morton

Others present:

City Manager Annette Sola Economic Development Director Leah Dellicarpini City Clerk Tabitha Meador Finance Director Keli Barrow

Police Chief Kyle Ambuehl Deputy Police Chief Susan Miller Public Works Director Travis Sanders Assistant Public Works Director Courtney Mitchell D.O.E.M. Director Andrew Strong Mitch Hardiek, Milano and Grunloh Engineers Members of the Public

II. Public Comment

Mitch Hardiek, with Milano & Grunloh Engineers, LLC, indicated the City of Salem intends to apply for $1,000,000 in Community Block Development Grant funding for the sewer realignment project. Mr. Hardiek read the following:

THE AMOUNT OF FUNDS AVAILABLE

The City of Salem is applying for a $1,000,000 grant from the CDBG fund.

THE PROJECT ACTIVITIES THAT WILL BE UNDERTAKEN WITH CDBG FUNDING

The City of Salem is applying for a grant for CDBG construction funds to serve the residents with improvements to the sewer system. The City has a high concentration of low-to-moderate income families and there is health and safety threat to the residents. The CDBG grant is funded by the Federal Government and administered by the State. The State allocates the funds to various local government units through a competitive application process. For the Public Infrastructure Component, the applications are due December 4, 2024. The project will consist of the installation of sanitary sewer relining, manhole lining, manholes, spot repairs, traffic control, appurtenances, and all related costs in the City of Salem.

THE PROJECT ACTIVITIES THAT WILL BE UNDERTAKEN WITH ADDITIONAL PROJECT FUNDING

No additional project funding.

THE ESTIMATED AMOUNT PROPOSED FOR ACTIVITIES THAT WILL BENEFIT LOW- TO MODERATE INCOME INDIVIDUALS

Of the requested $1,000,000 public infrastructure construction CDBG grant, 54.20%, or $542,000.00 will benefit low-to-moderate income individuals.

PLANS FOR MINIMIZING DISPLACEMENT AS A RESULT OF THE CDBG GRANT- ASSISTED ACTIVITIES AND TO ASSIST PERSONS ACTUALLY DISPLACED, IF APPLICABLE

A plan to minimize displacement and provide assistance to those displaced has been prepared by the City of Salem City Council and is also available to the public. This project will result in no displacement of any persons or businesses.

A DETAILED PRIORITIZED LIST OF COMMUNITY DEVELOPMENT AND HOUSING NEEDS

It was explained that the CDBG program requires the City to discuss and determine short- and long term housing and community deve1opment needs and activities. After some discussion, these were identified as follows:

1. Upgrades to the City's sewer system.

2. Equipment purchases including a new backhoe for the City.

3. Major storm drainage improvements including new culverts, and ditch maintenance.

4. Housing rehabilitation projects of single family/owner occupied homes in the City.

5. Sidewalk improvements

6. Drainage improvements throughout the City

A NARRATIVE DISCUSSION OF THE SCOPE OF THE PROJECT INCLUDING THE PROPOSED IMPROVEMENTS, COSTS, BENEFIT AREA, IMPACT ON COMMUNITY FINANCES, ETC.

The proposed construction consists of sanitary sewer relining, ole lining, manholes, spot repair, appurtenances, and all related costs in the City of Salem. With the construction, the health and safety threat to the residents will be addressed.

The City of Salem is applying for a $1,000,000.00 grant from the Community Development Assistance Program.

According to the LMISD 2016-2020 ACS, 54.2% of the residents (1030 LMI persons) in the project area in the City of Salem, are considered low-to-moderate income. There will be no displacement of occupied households or businesses as a result of the proposed activities. The entire City will benefit. Construction will occur in Section 31 in Township 2N, Range 2E (Salem Township in Marion County), along US Route 50, McMackin Street, Church Street, Elm Street, Locust Street, Mitchell Street, Jefferson Street, and Marion Avenue.

According to the City's audit, the City of Salem had approximately $50,000 in net cash gain in the sewer fund, which is significantly less than the requested grant amount. The City does not have the funds to finance the project. The City has a financial need for this CDBG grant. In addition, an overview of the CDBG program was presented which includes:

1. The Public Infrastructure Program component is a competitive application program which has an estimated $19,500,000 allocated in its total budget.

2. The grant ceiling for public infrastructure grant is $1,000,000.

3. Eligible public infrastructure activities are for water, sanitary sewer, and storm sewer projects. Construction, reconstruction, rehabilitation, demolition, or installation of public improvements are eligible activities.

A copy of the grant application records will be available at City Hall.

There was no other comment from the public.

III. Adjournment

The public hearing on the proposed federally funded Community Development Block Grant (CDBG) project was adjourned at 5:51 PM.

https://www.salemil.us/sites/g/files/vyhlif1161/f/minutes/minutes_-_public_hearing_-_2024_10-21_cdbg_sewer_grant_app.pdf