TO: Mayor and Members of City Council
THRU: Kristoff Bauer, ICMA-CM-Deputy City Manager
FROM: Rob Stone, P.E. Director of Engineering and Infrastructure
Tracey Broyles, Budget and Evaluation Director
DATE: June 26, 2017
RE:
Title
Adoption of Special Revenue Project Ordinance 2017-11 to Appropriate a Grant from the U.S. Department of Agriculture, Natural Resources Conservation Service for Repairs of the Streambank at Cross Creek Cemetery
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
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:
The U.S. Department of Agriculture, Natural Resources Conservation Service (NRCS) awarded the City $267,129 of grant funds for a project to repair Hurricane Matthew related creek bank damages at the end of Lamon Street at the edge of Cross Creek Cemetery.
Special Revenue Project Ordinance (SRO) 2017-11 will appropriate $345,697 for the project, funded by the $267,129 of federal funds and the $78,268 required local match from the General Fund for the creek bank repair project.
Background:
On October 8, 2016, Hurricane Matthew caused a bank failure along Cross Creek endangering City owned property, including 25 grave sites in the Cross Creek Cemetery, an office building and two athletic storage buildings. A massive section of bank sheared off during the storm, approximately 750 feet long and 35 feet high, and caused secondary failure behind the top of the bank slope. This is a complicated project and has been overly time consuming due to complexities in funding, design and multi-jurisdictional coordination.
The National Resources Conservation Service (NRCS) awarded the City a grant totaling $267,129 toward the completion of this project. This figure includes $235,702 for construction and $31,427 for technical assistance (engineering design work). As a requirement of the grant, the City must contribute 25% of the total construction cost. The total construction cost approved by NRCS is $314,270, resulting in a required local match of at least $78,568 to the project.
City staff is seeking options to request reimbursement of the 25% portion from the State of North Carolina.
Issues/Analysis:
The erosion and damage to the bank is significant and will not be fully repaired by this limited scope project. It is expected that a complete restoration of the bank and the damaged structures may exceed $1.5 million. The engineering design to be completed with this project will provide additional information to develop repair options and estimates in order to assist in the identification of alternatives consistent with available funding.
Staff will also be pursuing options for additional funding for the additional repairs, potentially through a future Golden Leaf Foundation grant or other sources. Adoption of SRO 2017-11 will allow the City to secure the NRCS portion of the funding while it is still available and to initiate the assessment and design process.
Budget Impact:
The City’s required local match contribution will be funded by a transfer from the General Fund; however, City staff will be seeking other funding to offset that contribution. Based upon projections prepared with the development of the Fiscal Year 2018 budget, the use of these funds would not reduce the projected available fund balance in the General Fund below the goal of 12%.
Options:
1) Adopt Special Revenue Project Ordinance 2017-11 to appropriate the grant funding and move forward with the project.
2) Do not adopt Special Revenue Project Ordinance 2017-11 and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt Special Revenue Project Ordinance 2017-11 as presented to appropriate the NRCS grant funds and the required local match.
Attachments:
• Special Revenue Project Ordinance 2017-11 (Cross Creek Cemetery Streambank Repair)
• NRCS Notice of Grant and Agreement Award