7.1 EPA Water and Wastewater Extension Project Grant
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
12/19/11 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
7
NO:
BY:
Development Services
FINAL APPROVAL:
ITEM
NO:1
BY: Gary Hobbie BY:
Page
1
ITEM:
Consider acceptance of the 2011 Environmental Protection Agency Water and Wastewater
Extension Project Grant Funds Agreement for a Workforce Housing Project within the City of Salina
and authorizing the City Manager to execute documents related to the 2011 EPA Grant Project.
BACKGROUND:
The construction and rehabilitation of affordable housing for the area workforce
has been identified as a need by the Salina Area Chamber of Commerce and City of Salina in recent
years. The added cost of water and sewer infrastructure improvements, including the replacement of
existing pipes, limit the number of families able to afford new or redeveloped housing. Therefore the
City of Salina is working with multiple agencies to develop a program to meet the needs for Workforce
Housing within the community. Multiple agencies have agreed to assist in funding a project where 18
building lots will be developed to support a new home construction project having a final value of up to
$130,000 per dwelling. City staff has worked on this program for nearly a year and with the
assistance of the Chamber of Commerce Director has secured grant funds from threeagencies.
These grant funds are sought to help limit the cost of such infrastructure for new and redevelopment.
APPLICATION PROPOSAL SUMMARY
Environmental Protection Agency grant funds, as provided by Congress, will be used to partially fund
construction of potable water lines and sanitary se wer mains for existing or new housing lots.
Additional funds from North Central Regional Planning Commission, Housing & Urban Development
and private investment funds will be included in the housing project. The EPA grant outputs will
include approximately 1,800 lineal feet of water lines, includi ng water valves and meters; and
approximately 2,000 lineal feet of sewer lines, including necessary manholes. The newly constructed
infrastructure will be connected to the existing City water and sewer systems. The cost of the
construction project is estimated to be well over $750,000, with the balance of the project costs over
the grant funds allotted are to be funded through Private Investm ent Financing. If a development
agreement cannot be completed, grant funds are to be used with matching funds from the City Capital
Improvement Plan Funds to complete a previously recognized project from the Utilities Department.
The outcomes of the grant project will be to provide new or redeveloped housing lots with adequate
quantity and quality of drinking water, which will protect public health and safety, and adequate
wastewater transport and treatment, which will protect water q uality and the public health. The
baseline for measuring the results of this project indicates that limited drinking water and sewer
systems are currently available for the newly planned and/or redevelopm ent areas within the
community.
PROPOSED EPA AGREEMENT BUDGET
Environmental Protection Agency $ 243,000
Required EPA Match from Developer $ 198,819
WATER-WASTEWATER FUNDS $ 441,819
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
12/19/11 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
7
NO:
BY:
Development Services
FINAL APPROVAL:
ITEM
NO:1
BY: Gary Hobbie BY:
Page
2
ADDITIONAL PROJECT GRANT FUNDING AVAILABLE
North Central Regional Planning Commission $ 130,000
Housing and Urban Development $ 118,750
Total Additional Grant Fund $ 248,750
SUMMARY of GRANT FUNDS and PRIVATE INVESTMENT FUNDS IN THIS PROJECT
Source Amount Specific Use
NCRPC $130,000 Project Land Purchase, Engineering or Infrastructure Funding
HUD $118,750 Project Design, Engineering and Land Purchase
EPA $243,000 Grant Funds for Water and Waste Water Upgrade or
extensions for new housin g units in this project area.
Private $198,819 Privat e investment funding Required to be used as matching
funds for the Water and wa ste Water Upgrade Or Extension of
new lines for this particular housing project.
UNDETERMINED FUNDS NEEDED BY DEVELOPER
1. Developer Matching Funds Remaining Water & Wastewater Lines
2. Balance of Land Cots above Grant Funds Available
3. Street Improvement Costs for the Subdivision
4. Utility Improvements by outside agencies (Gas, Electric, Communications)
FISCAL NOTE:
Grant expenses are recoverable at key points throughout the grant cycle, with frequent fund draw
downs allowed as invoices come due. The City will be reimbur sed expended funds as they are
requested from the Environmental Protection Agency, except all matching funds will be paid from the
developers previously agreed to bank loan funds. If the City is unable to use grant award funds
completely, any unused funds will be used to rehabilitate water and wastewater lines as previously
programmed in the Water-Wastewater Utility’s Capital Improvement Fund.
CONFORMANCE WITH STRATEGIC PLAN:
The Salina City Commission will have committed to providing the highest quality of city services
possible within available resources. The City Commission recognizes their role and responsibility to
provide the needed policy direction and resources to its administration. At the same time, the city’s
administrative personnel are committed daily to tran sforming this direction and resources into the
highest possible quality of munici pal services, consistent with t he expectations of both the City
Commission and the citizens of Salina
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
12/19/11 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
7
NO:
BY:
Development Services
FINAL APPROVAL:
ITEM
NO:1
BY: Gary Hobbie BY:
Page
3
COMMISSION ACTION OR RECOMMENDED ACTION:
The following options have been identified for consideration by the City Commission:
1. Approve supporting the Wo rkforce Housing Water and Wastewater Extension and
Rehabilitation Program Agreement on behalf of eligible Salina homeowners in the amount of
$441,000, with the required $198,819 of private matching funds or Capital Improvement Funds
and authorize the City Manager to sign the Grant Agreement documents in support of these
agencies.
2. Take no action, thus declining to approve t he Work Fore Housing Water and Wastewater
Extension and Rehabilitation Program Agreement for 2011.
STAFF RECOMMENDATION:
It is recommended that the Commission support city staff in accepting for the EPA Workforce Housing
Water and Wastewater Extension and Rehabilitation Grant funds on behalf of the citizens of Salina for
2011.
Enclosures: 2011 EPA Grant Agreement Summary
EPA Grant Work Plan