Title
Resolution to Accept a Hazard Mitigation Grant and Appropriate Funds from the Federal Emergency Management Agency for the Purchase and Demolition of 128 Felch Street ($399,999.00) (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a grant agreement between the City of Ann Arbor and the Federal Emergency Management Agency (FEMA) to accept a Hazard Mitigation Grant for 75% of the total project cost to (1) purchase the property at 128 Felch Street, Ann Arbor; (2) conduct demolition of a duplex house, garage, foundation and the impervious surfaces on the sites; and, (3) grade and stabilize the site. City matching funds (25% of the total project cost) are identified in the City’s Capital Improvements Plan to come from the Stormwater Capital Budget.
The structures at 128 Felch Street are located within the floodway of Allen Creek. The owner provided a notice of voluntary interest to allow City staff to make a Hazard Mitigation Grant application. The City submitted a Hazard Mitigation Grant application to FEMA in September 2015, and the City was notified by letter dated June 17, 2016 that FEMA has awarded the City of Ann Arbor $299,999.00 to fund the 128 Felch project.
Acceptance of the FEMA grant is contingent upon creating permanent open space by deed restricting the property. The site sits between Felch Street and the City-owned 721 North Main Street site. Per City Council Resolution 374-8-05, approved on August 15, 2005, the portion of this City-owned site that is within the floodway may be included in a future Allen Creek Greenway. The clearing of the 128 Felch Street property will help facilitate access to, and the potential development of a future greenway on the 721 North Main Street site.
City Council approved a Hazard Mitigation Plan in 2012 which made the City eligible to apply for Hazard Mitigation Grants. The Hazard Mitigation Plan forwards the recommendation of the 2007 Flood Mitigation Plan, which recommends the voluntary removal of structures from the floodway.
Matching funds for this project have been established in the approved City of Ann Arbor Capital Improvement Plan (FY 2017 Stormwater Utility (0069) Fund). The total estimated cost of this mitigation project as well as the federal and non-federal contribution is shown below:
Total FEMA (federal) contribution: $299,999.00
Total City (nonfederal) contribution: $100,000.00
Total estimated cost of this mitigation project: $399,999.00
Outcomes of the project include removal of one residential duplex structure and large garage from the floodway, creation of permanent open space by deed restricting the property, and improved access to the City’s 721 N. Main St. site from Felch Street.
Sale of the property to the City is conditioned upon the owner accepting the third party market value appraisal price. Sale of the property is voluntary.
Grant funds will be available for the life of the project regardless of fiscal year, and the City’s Stormwater and Floodplain Management Program Coordinator will handle grant management.
Budget Impact
The proposed work completed through this grant will implement a recommendation of the 2007 Flood Mitigation Plan, which recommends the voluntary removal of structures from the floodway. Funding for this project is available in the approved FY17 Public Services - Stormwater Capital Budget.
Sustainability Framework
The proposed work completed under this project furthers the Sustainable Systems and Safe Community goals of the City’s Sustainability Framework.
Staff
Prepared By: Jerry Hancock, Stormwater and Floodplain Programs Coordinator
Reviewed By: Craig Hupy, Public Services Area Administrator
Approved By: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor completed a Flood Mitigation Plan in March 2007, recommending opening up the floodway by preventing new structures and removing existing structures from the floodway to create greenways;
Whereas, The City submitted a Hazard Mitigation Grant application to the Federal Emergency Management Agency (FEMA) in September 2015, and the City was notified by letter dated June 17, 2016 that FEMA has awarded the City of Ann Arbor $299,999.25 which represents 75% of the total project cost;
Whereas, This grant advances the attainment of reduced flood losses, minimizes damage to public and private property and protection of public health and safety by removal of a duplex house and a large garage structure in the floodway;
Whereas, Funds for the City’s $100,000.00 match have been established in the approved City of Ann Arbor Capital Budget Stormwater Capital Budget; and
Whereas, The Stormwater and Floodplain Program Coordinator will handle project and grant management;
RESOLVED, That the City accept the Federal Emergency Management Agency grant of $299,999.00 that became effective April 27, 2016 and expires June 21, 2019;
RESOLVED, That Council approve the execution of all documents necessary to create permanent open space by deed restricting the property at 128 Felch Street;
RESOLVED, That the approval of this grant be subject to establishment of a fair market price for the property as determined by an appraisal;
RESOLVED, That the grant funds and stormwater matching funds be appropriated to the City’s Major Grants Program Fund (00CP) for the life of the project, regardless of fiscal year; and
RESOLVED, That City Council authorizes the Mayor, City Clerk and City Administrator to execute all documents necessary to complete the Grant requirements after approval as to form by the City Attorney.