| | | | | | | |  | STAFF REPORT
For Meeting of May 26, 2020
MAYOR AND MEMBERS OF THE CITY COUNCIL | Agenda Item # 10.D.
TITLE: Resolution No.- 2152 US EDA Grant |
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| | | | | | | | Subject
This resolution will direct the City Manager to apply for US Economic Development Administration grant funding and commit up to $600,000 as local match.
Summary and Background
This grant will complete a $1,187,000 project to replace approximately ½ mile of under-sized sewer main which serves as the only pathway to the sewer treatment plant from Hermiston’s southern industrial area, as well as other current users such as Wal-Mart DC, EOTEC, the Airport, BMCC, etc. Replacing and up-sizing this sewer main will greatly expand the ability to accommodate future commercial and industrial growth in the City.
This project was originally identified as part of the Regional Assessment of Industrial Sewer Expansion (RAISE) in 2017. Due to its importance in the continued growth of the City, most of this project was included in the approved 5-Year Capital Improvement Plan. However, due to the price-tag, it was broken down in to phases. The City completed the first phase of the overall project in early 2019. The next two phases, estimated to cost approximately $610,000, were slated for construction in FY ’20-’21, in the CIP.
The $2.2T Coronavirus Aid, Relief, and Economic Security (CARES) Act, approved in late March, included a substantial amount of funds for the Economic Development Administration (EDA). City Staff, in conjunction with consultants from Merchant McIntyre Associates, have been preparing since that time to develop an application for those funds using this project.
Due to this rare opportunity to leverage federal funds toward a sewer line project, the scope of next year’s work was expanded, for the purposes of application, to include an additional phase of the overall project. The additional work accounts for the increase from $610,000 to $1,187,000.
City Staff has been in direct conversations with EDA staff on this project since early April, and EDA staff is supportive of an application.
Traditional EDA grants require a minimum 50% local match. However, the Notice of Funding Opportunity (NOFO) associated with the CARES funds indicates that projects accepted through this opportunity will only have a local funding match of 20%.
Tie-In to Council Goals:
Fiscal Information
If an award is made, the federal grant will cover 80% of the project costs, or $949,000. The Utility Fund’s liability will then be $237,000. Due to the planned improvements associated with a smaller-scale version of this project next fiscal year, those funds are available.
This grant application will therefore immediately save the utility fund nearly $400,000, while accomplishing substantially more work than originally planned.
Alternatives and Recommendation
Alternatives
Approve Resolution 2152
Reject Resolution 2152
Recommendation
Approve Resolution 2152
Requested Action/Motion
Motion to approve Resolution 2152
Submitted By: Mark Morgan |
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