13 - Texas Community Development Block Grant Program Application for Fire-Ambulance and Services Truck - FAST FUND

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Item No. 13 TO: Mayor & City Council Grayson Path, City Manager FROM: Carla Easton, PE, Engineering & Community Development Director Thomas McMonigle, Interim Fire Chief SUBJECT: TxCDBG - FAST GRANT APPLICATION DATE: August 24, 2020 BACKGROUND: The City is eligible to apply for grant opportunities from the Texas Department of Agriculture Community Development Block Grant (TxCDBG) FAST Program, which provides funds for the purchase of fire and ambulance service vehicles. The Fire Department is in need of a Pumper Truck at Station 3 on the West Side of town, which is estimated to cost $771,500. The FAST Grant would contribute $500,000 to the purchase of this new equipment. The existing truck is a 2012; ideal rotation is every ten years. The lead time for construction of a new truck is approximately 12 months, therefore the timing to start this process is very ideal. STATUS OF ISSUE: State regulations require that the Council pass a resolution authorizing the city's application for grant funds. The grant amount is $500,000 to be used toward the purchase of a new fire engine and equipment, and the city match of $286,500 would cover the total cost of the pumper truck and grant administrator fees. BUDGET: Funding is provided by both the grant and the city's match. At this point, the Proposed FY20/21 Budget does not incorporate the match requirement as this is a highly competitive grant to pursue. However, it is the City Manager's recommendation that if the grant were to be awarded, the City Council can then at that time make a decision to pursue the grant and finance the City's portion. Financing for fire trucks can extend to upwards of 10 years. If this were to become a reality, the City could attempt to utilize existing budgeted funds in the Fire Department (repurposing if necessary), use the City's built in contingency, or pull from reserve for the first year (budgeting the subsequent payments in subsequent years). In addition, depending on the timing, it might be an option to hold off the first payment until the following fiscal year. Given the uncertainty of these types of competitive grants, the City Manager felt it best to not lock in the match amount (given it can be financed), but given it can be financed, if the City is fortunate enough to receive $500,000.00 in grant, we identify the funding available at that time.