TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, City Manager, ICMA-CM
FROM: Kristoff Bauer, Deputy City Manager
Jay Reinstein, Assistant City Manager
DATE: August 6, 2018
RE:
Title
Hurricane Matthew Recovery Update
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 1: Safe and Secure Community
Goal 3: High Quality Built Environment
Executive Summary:
The City has been working to gain access to various funding sources to assist the community in recovering from Hurricane Matthew including:
1. Community Development Block Grant - Disaster Recover (“CDBG-DR”), $198 million statewide, $34,945,000 to Cumberland County- Council appropriated $15,325,000 on 12/11/17;
2. FEMA Hazard Mitigation (“HMGP”), $4.7 million- Council appropriated $4.7 million in May and June of 2018; and,
3. Disaster Act of 2016 administered by Golden Leaf Foundation (“Golden Leaf”), $3.8 million received to date.
Horne Consulting will be hired by the City to oversee all CDBG-DR and HMGP activities and will provide full spectrum recovery program management to include an internal audit program, compliance controls, construction management, environmental review and program closeout.
Staff will provide a brief update of hurricane related capital projects for Council’s information.
Background:
CDBG-DR:
This Housing Recovery Program provides assistance to low and moderate income homeowners and businesses who experienced major to severe damage to their homes and businesses and have remaining unmet needs, after subtracting benefits from FEMA, SBA and private insurance. This program includes reconstruction activities, acquisition and construction of new homes and insurance subsidies to eligible low and moderate income families. Affordable housing is the State’s number one priority associated with the CDBG-DR program.
City staff worked with Cumberland County to develop a proposal to carry out a variety of housing and recovery programs. The proposal includes a Homeowner Recovery Program, Small Rental Repair Program, Multi-family Rental Housing, and a Community Recovery Program that will include a Day Center and a Homeless Shelter. Businesses will have to apply directly to the North Carolina Department of Commerce for available funding.
Cumberland County was awarded the CDBG-DR funds from the NC Department of Public Safety as a sub-recipient. The State is only releasing to Cumberland County two-thirds of the funding for a two year period in the amount of $23,260,000. Of that amount, the City will receive $15,325,000 during that period from Cumberland County as a sub-sub-recipient to carry out the various programs. The additional funding of the original $34.9 million will be awarded to the County in the third year of the program. The remaining funds of $11,685,328 will be made available in year three to Cumberland County, with the City receiving $8,042,500 of that amount.
Over 300 applications have been accepted to date at our intake center during the process.
HMGP: The City of Fayetteville received three HMGP award letters (acquisition, reconstruction and elevation) in the amount of $4.7 million. Of the 210 applications received, 28 residents met the criteria accommodated under the cap of available funds.
The 28 qualified homeowners were mailed letters regarding the selection of their property under the program. Funding for this program will be available effective August 2018.
Fayetteville is eligible to receive additional CDBG-DR funding that will be awarded to North Carolina for acquisition, elevation or reconstruction similar to HMGP. It is anticipated that Fayetteville/Cumberland County will receive approximately $6.1 million in additional funding in the coming months. Residents must be low to moderate income to be considered for this funding.
Golden Leaf: The City of Fayetteville has received $3,872,000 in grants from the Golden Leaf Foundation to provide relief for projects related to Hurricane Matthew Recovery efforts. This funding has been allocated to the following projects:
1. Rayconda Connector (completed) - $920,000- Completed
2. Cross Creek Tree and Debris Removal- $300,000-Completed
3. Spruce Street Drainage- $873,000- Under construction to be completed 11/18
4. Multiple Creek Debris removal- $993,000- Completed
5. Beaver/Bones Creek Debris Removal- $786,000- Work to begin July 2018 and completed in October 2018
FEMA: The following projects are under construction:
Mirror Lake Dam Repair Project is under design. Project originally scheduled to be complete by the end of 2018, however the project has been delayed for utility relocation. Construction is now scheduled to begin in October 2018 with completion in June 2019. Utility relocation has started.
Next step: Receive bids in August 2018.
North Cool Spring Street Bridge Repair Project is under construction. Completion was delayed 60 days due to additional bridge damage that was discovered during construction.
Next Step: Ribbon Cutting in August 2018
Devonwood Lower Dam Design is underway. Construction to take place in 2019.
Next Step: Design completion December 2018.
Shawcroft Permanent Repair The temporary culvert repair was completed and Shawcroft Road is open to traffic. Design has been on hold pending direction regarding the scope of the project: i.e. a culvert or a bridge. A memorandum has been provided to Council for guidance.
Next step: Council direction regarding scope, then design can begin.
Cross Creek Bank Stabilization Design is underway. Construction is anticipated in December 2018 and be complete by May 2019.
Lafayette Ped Bridge Project is under construction. Scheduled to be completed August 2018.
Next Step: Install bridge.
Cross Creek Cemetery Steps Repair Project is under construction. Completion is expected in August 2018.
Issues/Analysis:
CDBG-DR: In accordance with the grant agreement with Cumberland County, the City will carry out the following CDBG-DR activities:
Activity #1. Housing Recovery: The CITY will undertake housing activities to include single family homeownership rehabilitation, single family homeownership reconstruction; mobile home repair; housing repair reimbursement; small rental repair; and provide affordable single family ownership in the Oakridge Estates Community in Fayetteville.
Activity #2. Multi-Family Rental Housing: The CITY and the COUNTY will jointly choose a consultant to guide the parties in selecting an experienced individual that demonstrates the capacity and ability to carry out the activities in accordance with HUD’s guidelines and contractual obligations.
Activity #3. Economic Development (Small Business Recovery): The NC Department of Commerce will oversee this activity.
Activity #4. Community Recovery: The CITY jointly with the COUNTY will collaborate as a part of the homelessness initiative in the development of a day facility to provide supportive services and shelter to homeless individuals and families.
The larger projects such as the affordable housing developments and the homeless shelter/day will come back to City Council for further consideration.
HMGP: The projects (28 qualified residents) have been delayed due to several process changes initiated by NCEM. The projects will kick-off in 30 days once the consultant has been hired. Additional dollars may be allocated by the General Assembly in the coming weeks.
Golden Leaf: There are no issues at the current time.
Private Dam Repairs: No update at this time due to pending litigation.
Budget Impact:
CDBG-DR- No General Fund dollars are used for these projects.
HMGP- No General Fund dollars are used for these projects
Golden Leaf- Golden Leaf grant dollars supplemented by General Fund dollars
FEMA - All project costs will be reimbursed by federal and state funds. A table listing all the FEMA funded projects is attached.
Options:
To receive a presentation on Hurricane Recovery efforts
Recommended Action:
To accept a presentation on Hurricane Recovery efforts
Attachments:
Hurricane and Recovery Update
HMGP- Approved list of properties and map
HMGP- Proposed list of additional properties and map
FEMA Projects Table