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Item 8AAGENDA ITEM # 8A JUNE 22, 2009 STAFF REPORT City of Atlantic Beach Commission Meeting AGENDA ITEM: Public Hearing: Community Development Block Grant (Stimulus) Application DATE: June 10, 2009 SUBMITTED BY: David E. 'Thompson, Asst. City Manager BACKGROUND: Qne of the mechanisms for the Federal Government to channel stimulus funding into the community is through the established Community Development Block Grant (CDBG) process. The City of Jacksonville has submitted the necessary application for this funding, and the total allocation for Jacksonville is approximately $1.8 million. A number of organizations have expressed an interest in this funding, and Jacksonville has established an application and evaluation process to review and rank the various projects. Staffhas reviewed the various Atlantic Beach unfunded projects, and they have selected one specific project to submit for CDBG funding. Specifically, the Donner Subdivision (see attached aerial photograph) is a low income area in the Mayport Corridor. The wastewater infrastructure in this neighborhood is in poor condition and in need of significant rehabilitation. Many of the lines aze obsolete clay pipes which allow rain water intrusion during storms which has resulted in a sewer overflow in the past. The intrusion of rain water greatly increases the volume of wastewater that must be pumped and treated in the sanitary sewer system. The necessary rehabilitation is a part of the master plan for the wastewater system, but there is no local funding available at the present time to pay for the work. Completion of this project will prevent sewer overflows and prevent the public health risk and environmental damage associated with the sewage contaminated water. It will prevent contaminated water from entering the rivers, streams, and storm water system. It will also conserve energy and costs by reducing pumping of infiltrated water into the sewer system, and it will prevent cave-ins created by collapsed sewer lines. The funding will help to create/retain jobs for people who are employed in this field. The City can `piggy back" on the existing $9 million JEA contract, and the contractor has stated that they can begin immediately. HUD strongly urges organizations to use CDBG funds for hazd development costs associated with infrastructure activities that provide basic services to residents. Additionally, the activities should promote energy efficiency and conservation through rehabilitation and retrofitting infrastructure. Timing is also a significant consideration, and projects should be ready to go so that they can actually put a "shovel in the ground within sixty (60) days" of the award. The proposed project meets all of this criteria. AGENDA ITEM # 8A JUNE 22, 2009 Staff recommends that Atlantic Beach submit an application for the Donner Subdivision CDBG Sewer Rehabilitation Project for a total of $197,707. This will not cover the total cost of the entire subdivision, but it will complete a substantial portion of the project. There is no matching funding required for this application. Please note that this project is "scalable." It can be increased or decreased depending on the availability of funding. If Atlantic Beach is awarded less than $197,707, then Atlantic Beach will be able to adjust for the difference in funding and reduce the project accordingly. If more money becomes available, then Atlantic Beach will be able to increase the scope of the project proportionately to cover more of the work that needs to be done. Staff will seek as much funding as is reasonably accessible for this project. To assure compliance with the transparency requirements and public input, staff recommends that the City Commission provide an opportunity for public input at the City Commission meeting. The deadline for organizations to submit applications is June 26, 2009. BUDGET: There is no match required. If the application is approved, then Atlantic Beach will receive approximately $197,707.00 in funding for the proposed project. RECOMMENDATIONS: Authorize staff to seek the CDBG funding discussed above, and to authorize the Mayor to sign the application and subsequent documents for the grant. ATTACHMENTS: 1. Donner Subdivision CDBG Sewer Rehab Project REVIEWED BY CITY MANAGER: AGENDA ITEM NUMBER: AGENDA ITEM # 8A JUNE 22, 2009 Donner Subdivision CDBG Sewer Rehab Project