DATE: March 29, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Paul Holzen, Director of Engineering
Jonathan Marston, Assistant Director of Engineering
William Banks, Staff Engineer
SUBJECT:
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Consideration of Resolution 2019-53, A Resolution Providing Staff with Funding Direction for the Home Raising Project Developed by the United States Army Corps of Engineers as Part of the Harpeth River Feasibility Study. (04/09/19 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning Resolution 2019-53.
Background
The May 2010 flood event created devastation throughout the Harpeth River Watershed and caused 4 fatalities and over $480 million in direct economic impacts in the Harpeth River Watershed alone. For this reason, the Department of the Army represented by the United States Army Corp of Engineers (USACE) conducted a preliminary reconnaissance of the Harpeth River Watershed and found over 850 structures in the regulated floodplain within the basin located in the City of Brentwood, City of Franklin, Williamson County, and Davidson County. In addition, they found aquatic ecosystem issues throughout the basin primarily involving stream bank erosion and loss of riparian buffers.
On June 13, 2013, the USACE, City of Franklin, Metropolitan Nashville and Davidson County, City of Brentwood, and Williamson County signed an initial Feasibility Study Agreement to analyze alternative flood risk management options. The feasibility study evaluated numerous flood risk management options and provided an analysis of cost and benefits associated with various projects. The USACE determined that two projects were considered economically justified. These two projects included Franklin Road channel modifications and nonstructural home raisings. With support from the Board of Mayor and Aldermen, one or both measures could have become the Feasibility Study’s recommended plan.
On September 12, 2016, the City of Franklin entered in to a second agreement with the Department of the Army (USACE) to fully develop the two flood risk management projects, the Franklin Road channel modifications and the nonstructural home raisings.
On July 10, 20189, BOMA approved Resolution 2018-53, “A Resolution Authorizing Staff to Proceed with the Home Raising Project Developed by the United States Army Corps of Engineers as part of the Harpeth River Feasibility Study”. This project is still economically justifiable to the CORP, and needs further direction from the Board of Mayor and Aldermen to finalize the Feasibility Study with just the home raisings project.
The nonstructural home raising project details are as follows:
• This program must be sponsored and administered by the City of Franklin, as part of a Project Partnership Agreement for design and construction of the project. Construction could be managed by the USACE and the individual homeowner.
• This would be a VOLUNTARY PROGRAM for the 36 homes that qualify. See Exhibit A for the locations of the eligible homes.
• Eligible homes are raised above the 100-year flood zone level, following the City’s Zoning Ordinance requirements.
• The CORP individually justified the 36 homes based on the damages they are experiencing (amount & frequency) and the cost to protect (cost of raising). They surveyed each structure’s first floor elevation.
• The preliminary cost estimate provided by the USACE is approximately $4,000,000 for all 36 properties. The USACE agrees to pay for 65% of the actual construction and temporary relocation costs ($2,600,000). The City and/or homeowner would be responsible for the remaining 35% of required construction funding ($1,400,000).
• The 35% Non-Federal cost could be paid out of the City of Franklin general fund, or come directly from the homeowners that decide to participate in the program. This 35% can also be split between the City and homeowner.
• The home construction estimates include the cost of raising the home (by a certified home raiser), the construction of new foundation (cinder block or brick), the reconnection of utilities & duct work, and restoration of landscaping/grass, etc. There is also the cost of temporary housing for up to 3 months. The duration of the temporary housing depends on the construction duration and local codes on habitation.
• The homeowner hires the construction contractor, but the Corps and the City can assist in locating qualified contractors and review proposals. The goal is to assist the homeowner to the fullest extent possible to achieve quality, sustainable flood protection.
Based off the project details above, Staff is requesting direction on how to proceed with the home raisings project. Possible scenarios include the following options:
Option 1 - City of Franklin participates in the home raisings project with the USACE through the Project Partnership Agreement for design and construction. The USACE agrees to pay for 65% of the actual construction and temporary relocation costs. The 35% of remaining Non-Federal project costs are solely paid for by the homeowner. The City only acts as the project sponsor and administrator.
Option 2 - City of Franklin participates in the home raisings project with the USACE through the Project Partnership Agreement for design and construction. The USACE agrees to pay for 65% of the actual construction and temporary relocation costs. The 35% of remaining Non-Federal project costs are solely paid for by the City.
Option 3 - City of Franklin participates in the home raisings project with the USACE through the Project Partnership Agreement for design and construction. The USACE agrees to pay for 65% of the actual construction and temporary relocation costs. The 35% of remaining Non-Federal project costs are paid for by both the City and homeowner. The City and homeowner would both pay a percentage of the remaining 35% construction costs. This City/homeowner split can be developed by the Board, e.g. 50/50, etc.
Financial Impact
The City of Franklin must decide if it supports implementation of any of the following three options:
Option 1: The USACE and homeowners pay for 100% of construction costs. The USACE would fund 65% of the cost with property owners paying the remaining 35% of the cost. The City incurs minimal staffing costs and time to administer the project.
Option 2: The City pays up to an estimated 35% of construction costs (around $1,400,000 if all homeowners volunteer to participate).
Option 3: The City and homeowners pays 50% of the required 35% remaining construction costs ($700,000).
Funding for any City financial participation could come from one of two primary sources: (1) The Stormwater Fund; or (2) The City’s General Fund/General Capital funding efforts. Recent review of the Stormwater Fund has confirmed limited capacity within this source.
Recommendation
City staff recommends Option 1. Staff is seeking direction from the Board of Mayor and Aldermen.