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FEMA Grant_North Catfish Creek InterceptorTHE CITY OF DUB E Masterpiece on the Mississippi MEMORANDUM October 10, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Application for FEMA Hazard Mitigation Grant Program Funds City Engineer Gus Psihoyos recommends City Council authorization to submit an application for $1,428,187.50 in FEMA Hazard Mitigation Grant Program funds and committing to the allocation of the necessary $285,637.50 in matching City funds for the sanitary sewer improvements associated with the North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project. I want to offer my thanks to ECIA Executive Director Kelley Deutmeyer and Community Development Director Mark Schneider for making the City aware of this funding opportunity. This is another example of the value of the City's partnership with ECIA. I concur with the recommendation and respectfully request Mayor and City Council approval. r Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer Kelley Deutmeyer, ECIA Executive Director Mark Schneider, ECIA Community Development Director THE CITY OF DuB E Masterpiece on the Mississippi MEMORANDUM October 5, 2007 TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer . --~ SUBJECT: Application for FEMA Hazard Mitigation Grant Program Funds INTRODUCTION The purpose of this memo is to seek authorization to apply for Hazard Mitigation Grant Program (HMGP) funds for the North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project. BACKGROUND In March of 2004, the City funded an evaluation of the sewer referred to as the "Key Way sanitary sewer system." Based on the recommendations of the study prepared by Veenstra & Kimm, Inc., the City Council established $1,904,250 to upsize the Catfish Creek interceptor sewer line from University Avenue Extension at US20 to the Northwest Arterial. The project consists of replacing the existing 12-inch diameter clay sewer with a 24-inch diameter ductile iron sewer from University Avenue to Key Way and replacing it with an 18-inch diameter ductile iron sewer from Key Way to the Northwest Arterial. The City has completed a topographical survey from University Avenue to Key Way. On November 6, 2006, the City Council authorized an application and subsequently approved the use of State Revolving Loan funds for the project. In December of 2006 the State approved the City's application, placing the project on the Iowa Finance Authority State Revolving Fund (SRF) loan program intended use plan. DISCUSSION Authorized under Section 404 of the Stafford Act, the Hazard Mitigation Grant Program (HMGP) administered by the Federal Emergency Management Agency (FEMA) provides grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration. The purpose of the program is to reduce the loss of life and property due to natural disasters and to enable mitigation measures to be implemented during the immediate recovery from a disaster. HMGP funds can pay up to 75 percent of the project cost. The State covers 10 percent and the City must cover the remaining 15 percent, though it need not be in cash. In August of 2007, the City submitted a "Notice of Interest" (NOI) for grant funding to Iowa Department of Homeland Security & Emergency Management (IHS) for the City's North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project. In September, IHS concluded that the sanitary sewer portion, $1,904,250, of the City's project is eligible for funding under the Hazard Mitigation Grant Program (HMGP). They invited the City to submit a formal application for HMGP Project grant funding. The application (see attachment) will enable the City to compete in the state-wide competitive "post disaster" Hazard Mitigation Grant Program. It is designed to capture the necessary information to meet the program requirements. Submission of an application does not automatically guarantee a grant award. The application process is another step in the review and certification phase of the grant program that ensures both state and federal funding requirements are met. Applications must be submitted to IHS by November 16, 2007. However, IHS recommends that the application be completed as soon as possible to allow adequate time for changes or corrections that may need to be made before the deadline date. City staff has enlisted the help of ECIA to complete the application. Application materials have been assembled and ECIA is seeking input from IHS, the Iowa Department of Natural Resources, and the State Historical Preservation Office while working through the process of filling out the application. RECOMMENDATION I recommend that the City apply for FEMA Hazard Mitigation Grant Program funds to upsize the Catfish Creek interceptor sewer line from University Avenue Extension at US20 to the Northwest Arterial. BUDGET IMPACT The HMGP funds can pay up to 75 percent of the project cost and the State can pay 10 percent, leaving the City responsible for 15 percent. With the North Fork sanitary sewer improvements estimated at $1,904,250, funding through the program would be as follows: Federal (75%) State (10%) City (15%) $1,428,187.50 $ 190,425.00 $ 285,637.50 With the adoption of the FY08 budget, $1,904,250 was established for the sanitary sewer improvements with project financing through the State Revolving Loan Fund. The project was to be funded by borrowing the money and financing it at 3.25% over 20 years. If the application is approved, the City will save $1,618,612.50 and the interest paid over the life of the loan. ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolution authorizing the City Manager to submit an application for FEMA Hazard Mitigation Grant Program funds and committing to the allocation of the necessary $285,637.50 in matching city funds for the sanitary sewer improvements associated with the North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project. cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jenny Larson, Budget Director Ken TeKippe, Finance Director Deron Muehring, Civil Engineer II Attach. RESOLUTION NO. 506-07 AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR HAZARD MITIGATION GRANT PROGRAM FUNDS FOR THE SANITARY SEWER IMPROVEMENTS ASSOCIATED WITH THE NORTH FORK CATFISH CREEK SANITARY AND STORMWATER DRAINAGE IMPROVEMENTS PROJECT Whereas, the Iowa Department of Homeland Security & Emergency Management has announced the availability of Hazard Mitigation Grant Program (HMGP) funds. Whereas, the sanitary sewer improvements associated with the North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project are eligible activities for HMGP funding. Whereas, the Iowa Department of Homeland Security & Emergency Management has invited the City to submit a formal application for HMGP Project grant funding for the project. Whereas, the HMGP requires fifteen percent (15%) local matching funds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the submission of an application for Hazard Mitigation Grant Program (HMGP) funds for the sanitary sewer improvements associated with the North Fork Catfish Creek Sanitary and Stormwater Drainage Improvements Project is hereby authorized. Section 2. That the City of Dubuque agrees to allocate the local matching funds as required by the HMGP. Passed, approved and adopted this 15th day of october, 2007 Roy D. Buol, Mayor Attest: Jeanne F. Schneider, CMC, City Clerk