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9.a) Staff Report-Architecural Expenses for Storm Shelter Grant Staff Report Date of Meeting: July 15, 2014 To: City Council From: Kristina Handt, City Administrator Re: Architectural Services for FEMA Grant Project Background: Last October the City Council approved a resolution to enter into a sub grant agreement for a Hazard Mitigation Grant from FEMA to construct two storm shelters at the Oakhill Cottages. In April, we received notice that the City had been awarded the grant. The grant provides a reimbursement of 75% of the costs associated with constructing the storm shelters. You may remember Bill Lightner from the Washington County HRA was at our October meeting and mentioned that they have decided it would also be most efficient and economical to do some well improvements at the same time. The well improvements are outside of the grant and will be paid entirely by the HRA. However, they can get better prices by bidding the two projects together. After the grant was signed, I met with Bill and Matti Gurney from the Department of Homeland Security and Emergency Management (HSEM) as HSEM is the state agency administering the federal grant. Matti informed us that although the HRA would be paying the local share of the grant, since the grant was awarded to the City we must follow the City’s procurement procedures. As you know, the Council must approve any expenses over $5,000. Issue: Should the City approve the architectural expenses? Proposal Details: Last year the HRA requested proposals for architectural services for the storm shelter and well improvement projects. A copy of the summary of the proposals they received is included in your packet. HRA staff is recommending Miller Hanson. While the HRA board will approve the contract with Miller Hanson since they are the property owner, the City must approve the expenditure to be complaint with the grant program requirements. The City will not be paying the costs of the project; rather the HRA will be providing the local funds and the additional funds for the well. Resolution No 7-15-14-10 is included in your packet. It would authorize expenditures of $20,950 plus reimbursable expenses from Miller Hanson. If the reimbursable expenses exceeded an additional $5,000 then further Council approval would be needed. The $20,950 cover the fees for both the storm shelters and the well. Approximately $15,400 would be grant eligible for reimbursement. Fiscal Impact: $20,950 will be paid by the Washington County HRA to Miller Hanson. Invoices will be submitted and 75% of the storm shelter expenses will be reimbursed by FEMA. No fiscal impact on the City of Scandia. Options: 1) Approve Resolution No 7-15-14-10 2) Amend and then approve resolution No 7-15-14-10 3) Do not approve Resolution No 7-15-14-10 Recommendation: Option 1.