COMMITMENT PERIOD: SIX (6) MONTHS TO EXPIRE JUNE 30, 2021

PROJECT FUNDING REQUEST

BOARD DATE: December 3, 2020 PRESENTED BY: Kathy Hopkins

ACTION REQUESTED

Consider approving applications for Llano County and the City of Harlingen and authorizing the Executive Administrator to negotiate and execute contracts for grant funding in an amount not to exceed $1,365,368 from the Flood Infrastructure Fund for federal grant award matching funds projects

STAFF RECOMMENDATION Approve No Action

BACKGROUND Passed by the 86th Texas Legislature and approved by voters through a constitutional amendment, the Flood Infrastructure Fund (FIF) was created to provide funding for flood mitigation projects. The purpose of the FIF, as outlined in Senate Bill 7, is to assist in financing drainage, flood mitigation, and flood control projects. FIF projects presented for consideration have been scored and ranked using prioritization criteria outlined in Texas Administrative Code Title 31 § 363.404 and further specified in the 2020 FIF Intended Use Plan. The prioritized list of projects was approved by the Board on September 17, 2020.

KEY ISSUES The selected projects represent those eligible under Category 3, Federal Award Matching Funds, of the 2020 Flood Intended Use Plan. This category of funding was designed to leverage federal funding by assisting applicants with the required local match. Category 3 projects are eligible to receive a maximum of 90% grant funds for the required match based on criteria outlined in the FIF Intended Use Plan. Recipients of financial assistance may either use their own available funds or borrow FIF funds at 0% interest for any portion of the required local share not provided through FIF grant funds.

Both the City of Harlingen and Llano County have submitted complete financial assistance applications and are eligible to receive grant funding through the FIF for a portion of the local match requirements for federal funds under the Hazard Mitigation Grant Program (HMGP). These communities have been selected to receive $1,258,783 in federal matching funds through the HMGP. Table 1 provides summary of funding sources, and application summaries are attached.

Table 1 – Summary of funding sources Applicant

name Eligible

grant Federal funding

amount Local contribution

amount FIF

grant amount Total project

cost Llano County 59% $86,640.00 $11,101.00 $15,974.00 $113,715.00 City of Harlingen 80% $1,172,143.26 $337,348.74 $1,349,394.00 $2,858,886.00 Total $1,258,783.26 $348,449.74 $1,365,368.00 $2,972,601.00

The projects recommended for approval meet all minimum requirements found in the 2020 Flood Intended Use Plan:

(1) for construction-oriented projects, the benefit/cost ratio of the project meets the requirements ofthe Flood Intended Use Plan;(2) for flood control projects where the project watershed is located outside the boundaries of theapplicant, the applicant has entered into a Memorandum of Understanding with all required entitiesrelated to management of the watershed;(3) the funding request does not include redundant funding;(4) the area to be served by the project meets the requirements of the Flood Intended Use Planrelated to the National Flood Insurance Program;(5) the project was developed using the best/most recent available data;(6) for construction projects, the applicant has planned for operation and maintenance costs; and(7) for construction projects, the applicant has considered possible floodwater capture techniquesthat could be associated with the project for water supply purposes.

The projects recommended for approval meet the statutory requirements found in Texas Water Code § 15.536:

(1) the application and the assistance applied for meet the requirements of Texas Water Code,Chapter 15, Subchapter I and 31 Texas Administrative Code Chapter 363; and(2) the application demonstrates a sufficient level of cooperation among eligible politicalsubdivisions and includes all of the eligible political subdivisions substantially affected by the floodproject;

Attachment: Application Summaries

Application Summary Llano County

PROJECT NAME Llano and San Saba County Hazard Mitigation Plan, Project 40059

PROJECT NEED AND DESCRIPTION Llano County’s Hazard Mitigation Grant Program (HMGP) application has been selected for funding by the Texas Division of Emergency Management and the Federal Emergency Management Agency and will update and consolidate the Llano and San Saba counties Hazard Mitigation Plan. Hazard Mitigation Plans must be updated every five years for the participant to receive federal disaster assistance funding. HMGP provides up to 75 percent federal funding with the remainder of project costs covered by the local (percent) match. The counties requested assistance meeting the local match requirement.

Through the Hazard Mitigation planning process, participants will identify, assess, and propose mitigation solutions to reducing long-term risks to life and property from both man-made and natural hazards. The counties of Llano and San Saba, along with the cities of Llano, Horseshoe Bay, Sunrise Beach Village, San Saba, and Richland Springs, will be participating in the planning effort. The Hazard Mitigation Plan will consider flooding, hurricanes, tropical systems, drought, hailstorms, tornadoes, severe winds, wildfires, winter weather, lightning, extreme cold, and extreme heat disasters. Once approved by FEMA and adopted by the participants, the Hazard Mitigation Plan will assist the participants in becoming more resilient to disasters by identifying mitigation solutions that, once implemented, will reduce local risks to future disasters.

PROPOSED PROJECT FUNDING TOTAL PROJECT COST $113,715.00 Grant amount requested from FIF $15,974.00 Local contribution $11,101.00 Local in-kind $0 Federal funding $86,640.00

PROJECT SCHEDULE Task Estimated schedule date Closing/contract execution January 25, 2021 Planning phase (ending date) February 1, 2022 Submit plan to FEMA February 1, 2022 Adopt approved Hazard Mitigation Plan July 1, 2022

FINANCIAL The funding being provided by the TWDB is in the form of a grant and therefore is not subject to our internal risk score analysis that is applied to loans. For this request, staff reviewed Llano County’s annual audit and funding application information to assess the entity’s ability to manage existing obligations and business practices. Based on this analysis, staff believes Llano County has adequate capabilities to manage its obligations.

SPECIAL CONDITION Prior to closing, the county must submit documentation evidencing receipt of a federal award contingent on the availability of local matching funds.

Attachment 1a

Application Summary City of Harlingen

PROJECT NAME City of Harlingen 9th & 13th Street Drainage Improvements, Project 40115

PROJECT NEED AND DESCRIPTION The City of Harlingen (City) has been awarded by the Texas Division of Emergency Management and the Federal Emergency Management Agency a Hazard Mitigation Grant Program (HMGP) grant to address the effects of multiple severe storm events over the past 28 months that were declared federal disasters. These events affected thousands of homes, disrupted transportation along arterial roadways, and resulted in millions of dollars in damages. HMGP provides up to 75 percent federal funding with the remainder of project costs covered by the local (percent) match. The City requested assistance meeting the local match requirement.

This project proposes to upgrade storm sewer systems, which will mitigate 327 commercial and residential lots and streets within the city’s main retail/commercial zones from future flood risk. The upgrades consist of removing of the undersized drainage system and replacing it with 5,803 linear feet of reinforced concrete pipe, 27 junction boxes, and 46 inlets. In addition, the city will implement Storm Water Pollution Prevention Plan measures for water quality control as part of the upgrades. Any utility adjustments and restoration of street pavement will be completed as needed. The proposed storm sewer lines will increase capacity of the upstream section of the existing drainage system, and the downstream system has enough capacity to handle the increase, thus reducing flooding.

PROPOSED PROJECT FUNDING TOTAL PROJECT COST $2,858,886.00 Grant amount requested from FIF $1,349,394.00 Local contribution $337,348.74 Local in-kind $0.00 Federal funding $1,172,143.26

PROJECT SCHEDULE Task Estimated schedule date Closing/contract execution January 29, 2021 Planning phase (ending date) August 31, 2020 Design phase (beginning date) August 31, 2020 Start of construction November 30, 2020 Construction completion September 7, 2021

FINANCIAL The funding being provided by the TWDB is in the form of a grant and therefore is not subject to our internal risk score analysis that is applied to loans. For this request, staff reviewed the City of Harlingen’s annual audit and funding application information to assess the entity’s ability to manage existing obligations and business practices. Based on this analysis, staff believes the City of Harlingen has adequate capabilities to manage its obligations.

SPECIAL CONDITIONS Prior to closing, when any portion of financial assistance is to be held in escrow or in trust, the city must execute an escrow agreement or trust agreement, approved as to form and substance by the Executive Administrator, and shall submit that executed agreement to the TWDB.

Attachment 1b

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Agenda Item 1 FIFCat 3HarlingenLlanoAttachment 2a Map Llano CountyAttachment 2b Map City of Harlingen