TO: Mayor and Members of City Council
THRU: Kristoff Bauer, Deputy City Manager
FROM: Rob Stone, PE, Public Services Director
Tracey Broyles, Budget and Evaluation Director
DATE: March 19, 2018
RE:
Title
Adoption of Budget Ordinance Amendment (BOA) 2018-20 (General Fund) and Capital Project Amendments (CPOA’s) 2018-46, 2018-47, 2018-48 and 2018-49 to Provide Funding for Design and Project Management Contracts for the Devonwood Lower Dam Reconstruction
end
COUNCIL DISTRICT(S):
Council District(s)
District 9
b
Relationship To Strategic Plan:
Goal 1: Safe and secure community
Goal 3: High quality built environment
Goal 4: Desirable place to live work and recreate
Executive Summary:
Contracts for design and initial project management costs for the repair and reconstruction of Devonwood Lower Dam are projected to total $318,989. To provide initial funding for these contracts, staff recommends that Council adopt Budget Ordinance Amendment (BOA) 2018-20 to appropriate $145,329 from General Fund fund balance, and Capital Project Amendments (CPOA’s) 2018-46, 2018-47 and 2018-48 to release a total of $173,660 from available balances from existing projects for resurfacing and downtown streetscape projects. These amendments will provide the source of funds for CPOA 2018-49 to fund the design and initial project management costs for Devonwood Lower Dam from local funds. Staff is still seeking funds from the Federal Emergency Management Agency (FEMA) and the North Carolina Department of Public Safety (NC DPS), but the project has not been accepted yet an alternate funding source must be identified until that approval is received.
Background:
Devonwood Lower Dam, located on McFadyen Drive, was damaged by Hurricane Matthew on October 8, 2016. The dam impounds Fleetwood Lake and is maintained by the City of Fayetteville.
Initial site visits by FEMA and City staff identified the damage to the dam and it was placed on the list of structures to be repaired under the FEMA Public Assistance program. The City performed repairs to ensure traffic safety on McFadyen Drive and prevent erosion on the face of the dam. These repairs were emergency in nature to maintain traffic flow and prevent further damage to the dam.
On April 24, 2017, the Council appropriated $3,279,200 under Capital Project Ordinance 2017-52 for the project, with the expectation that the project would be reimbursed by FEMA and NC DPS. At this time, FEMA has not provided approval for funding of the dam reconstruction.
A follow-up FEMA site visit concluded that the emergency repairs constituted a permanent repair. When City staff explained more work was required, FEMA requested the City conduct an additional engineering evaluation of the dam to demonstrate there was still damage. An engineering evaluation was conducted and submitted to FEMA in October 11, 2017. No response to that submission has been received from FEMA and reimbursement funding for the permanent repair of the Devonwood Lower Dam remains uncertain.
The North Carolina Dam Safety Office reviewed the engineering evaluation and directed that the dam be reconstructed to repair the Hurricane Matthew damage and bring the dam into compliance with current standards and requirements. Consideration of funding sources is not a factor in this directive since it is based on standard dam safety requirements and is not specific to Hurricane Matthew damage.
On February 26, 2018, as noted in the attached City Council Action Memorandum, Council directed staff to move forward with the execution of contracts for the design and initial project management contracts for the repair and reconstruction of Devonwood Lower Dam with the understanding that the City’s General Fund would be required to fund the costs should FEMA not approve the project. The City’s Chief Financial Officer, Cheryl Spivey, has advised that a CPOA amending the source of funds for the project from FEMA & NC DPS to General Fund funding is required in order to pre-audit the contracts.
On February 28, Representatives from FEMA, North Carolina Dam Safety Office, and federal House of Representatives met with staff to review the status of the project. Information was exchanged and FEMA committed to developing and submitting a revised FEMA Project Worksheet (“PW”) for the dam repair. That PW was submitted March 12, 2018, and if approved would make reimbursement funding for project costs available. This would include the design contract for which this agenda item seeks a revised appropriation.
Issues/Analysis:
As presented on February 26, 2018, the City is under a time constraint to complete the repair to this dam to avoid potential wetland mitigation costs. Failing to complete the repairs identified by North Carolina Dam Safety Office could result in a directive to repair or breach the dam. That breach activity would be at the City’s cost as the City’s ownership and maintenance responsibility for this dam is well established.
As mentioned, a revised PW has been submitted seeking reimbursement funding from FEMA and NC DPS. If approved, the appropriation for this project would be brought back to Council and amended to identify that funding source for the project. If it is disapproved, however, then that City’s current Dam Funding Policy would require that most of the dam repair costs, including design, be recovered from benefitted property owners in the area of the lake.
Budget Impact:
Budget Ordinance Amendment 2018-20 will appropriate $145,329 from General Fund fund balance to transfer for the Devonwood Dam project.
Funds previously appropriated from the General Fund and remaining available in the following projects will also be re-appropriated to the Devonwood Dam project as listed below:
- CPOA 2018-46 $90,724 from the FY2016 street resurfacing project
- CPOA 2018-47 $18,135 from the FY2017 street resurfacing project
- CPOA 2018-48 $64,801 from the downtown streetscape project
Options:
1. Adopt BOA 2018-20 and CPOA’s 2018-46, 2018-47, 2018-48 and 2018-49 to provide funding for execution of the contracts for project management and design of the Devonwood Lower Dam and authorize the City Manager to execute the contracts with Freese & Nichols, Inc. and WK Dickson.
2. Do not adopt BOA 2018-20, CPOA’s 2018-46, 2018-47, 2018-48 or 2018-49, or authorize the City Manager to execute the contracts with Freese & Nichols, Inc. and WK Dickson and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt BOA 2018-20 and CPOA’s 2018-46, 2018-47, 2018-48 and 2018-49 for initial project management and design of the Devonwood Lower Dam as presented.
Attachments:
• February 26, 2018 City Council Action Memorandum
• Budget Ordinance Amendment 2018-20
• Capital Project Ordinance Amendment 2018-46 (FY16 Street Resurfacing)
• Capital Project Ordinance Amendment 2018-47 (FY17 Street Resurfacing)
• Capital Project Ordinance Amendment 2018-48 (Downtown Streetscape)
• Capital Project Ordinance 2017-49 (Devonwood Lower Dam Reconstruction)
• Project Management Contract with Freese & Nichols
• Engineering Design Contract with WK Dickson