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City to cover $292,000 gap for Baxter/Millen Creek stabilization after grant lost
Summary
Staff told council that a previously anticipated Section 319 grant for the Baxter/Millen Creek stabilization project will not be received; the city will need to fill a funding gap of $292,000 from capital reserves to proceed with the design-build contract.
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Public Works staff updated council on the Baxter/Millen Creek stabilization design-build work and said a verbal indication of a Section 319 grant awarded in April did not materialize. Staff reported that the grant was lost when the funding source reduced allocations and other projects exceeded available funds, leaving a $292,000 gap that would need to be filled from the city's capital reserve if the project proceeds.
"Since then, we were informed, unfortunately, that we will not be receiving that grant... To do it, we basically to continue with the project, we would have to fill the gap with our capital reserve funds in the amount of 292,000," the Public Works representative said. The council was informed the original resolution did not make award contingent on the grant and that staff wanted to notify the council of the changed funding status.
Council did not take further action at the meeting beyond acknowledging the update; staff will return with next steps if council directs proceeding with reserve funds.

