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25-R-123 DEAA Grant Program Funding ApplicationRESOLUTION 25-R-123 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER SUBMIT A DEFENSE ECONOMIC ADJUSTMENT ASSISTANCE GRANT PROGRAM FUNDING APPLICATION FOR THE LOWER SEGUIN ROAD RECONSTRUCTION PROJECT, AND OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, City Staff identified the Defense Economic Adjustment Assistance Grant (DEAAG) as a potential funding source for construction of the Lower Seguin Road Reconstruction Project; and WHEREAS, the City Council of the City of Schertz wishes to pursue securing DEAAG funding for the Lower Seguin Road Reconstruction Project; and WHEREAS, the City Council of the City of Schertz previously approved and fully funded two Task Order agreements with Halff Associates, Inc. for the design, environmental clearance, and right-of-way acquisition for the Lower Seguin Road Reconstruction Project; and WHEREAS, the City Council of the City of Schertz previously authorized the sale of Certificates of Obligations to provide funding for the Lower Seguin Road Reconstruction Project and the funding is currently available to fund project design, right-of-way acquisition, project construction, and any future cost increases; and WHEREAS, the City Council of the City of Schertz wishes to proceed with construction of the Lower Seguin Road Reconstruction Project as soon as possible; and WHEREAS, the project call for the DEAAG funding is scheduled for October 2025 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute the DEAAG funding application in substantially the same form as attached as Exhibit A and submit the application for consideration in the October 2025 DEAAG project call for the Lower Seguin Road Reconstruction Project. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND APPROVED on the )—1 "— day of C , 2025. CITY OF S 'HE TEXAS Ralpvie z Mayor ATTEST: Sheree Courney, Deputy City Secretary EXHIBIT A DEAAG FUNDING APPLICATION DRAFT 1 ` "AREDN'Ea' DEFENSEECONOMIC ADJUSTMENT ASSISTANCE GRANT OFFICE OF THE GOVERNOR Texas Military Preparedness Commission Fall 2025 (Fiscal Year 2026) For TMPC Use Only Date Received DRAFT 1 Applicant Project DRAFT 1 Program Overview The program is administered by the Texas Military Preparedness Commission (Commission) within the Office of the Governor. The Defense Economic Assistance Adjustment Grant (DEAAG) is codified in Texas Government Code Chapter 436 and in Subchapter B of Title 1, Chapter 4 of the Texas Administrative Code. Eligible local governmental entities may be awarded a grant if the commission determines that the entity may be adversely or positively affected by an anticipated, planned, announced, or implemented action of the United States Department of Defense (DoD) to close, reduce, increase, or otherwise realign defense worker jobs or facilities. To review Texas Government Code 436, visit https:/Istatutes.capitol.texas.gov/Docs/GV/htm/GV.�i6.htrn. To review the Texas Administrative Code, visit btUi,s:lZtexre-g.sos.state.tx.us/public/readtacSext.ViewTAC?tac view= &ti=i& t=1&ch= &sch=B&rl=Y All grant funds must be expended within two years of the award date. This grant follows the Texas Grant Management Standards. A defense community is eligible for a grant from DEAAG if the commission determines that it satisfies one of the eligibility criteria as referenced in above in the Texas Government Code and Texas Administrative Code. The grant funds are administered on a reimbursement basis. Administrative costs will not be allowed for reimbursement. Please contact the Texas Military Preparedness Commission at tmpc(&gov.tcxas.gov or (512) 475-1475 should you have any questions. The grant will be scored on the following criteria: military value, project probability, relation to the National Defense Strategy, dual military/community benefit, resiliency, and efficiency. Unauthorized changes to this application will render the application and any subsequent grant void. An endorsement letter from the installation commander is required. Other support letters can be attached to application but are not part of the scoring process. This application is limited to 5o pages. Applications are due no later than 5:00 PM CT on Friday, October 17, 2025. Applications received after this time will be ineligible for consideration. Applications are accepted via email (preferred) at tmpc ftov.texas.gov, in -person, or at the addresses below postmarked by the application deadline: Mailing Address: Street Address: Texas Military Preparedness Commission Texas MilitaryPreparedness Commission Office of the Governor Office ofthe Governor P.O. Box 12428 iioo San Jacinto Austin, TX 78711 Austin, TX 787o1 For additional information on DEAAG, please refer to bM://www.gov.texas.gov/miliW/­`grants. DRAFT 1 Applicant Information Name of Applicant City of Schertz Address 1400 Schertz Pkwy Schertz, TX 78154-1634 Point of Contact Steve Williams, City Manager Point of Contact Phone 210-619-1000 Point of Contact Email steve.williams@schertz.com 1. Are all involved entities current on all obligations with the State of Texas? © Yes No If no, please explain. Attach additional pages as necessary as Attachment A. N/A I 2. Is there a pending claim or litigation against any entity involved with the project? Yes 107 No If yes, please explain. Attach additional pages as necessary as Attachment B. N/A 3. Please provide documentation authorizing entity to participate in program. An example is a public hearing, ordinance, or resolution. Attach as Attachment C. X DRAFT 7 Proi ect Summar- Lower Seguin Road Reconstruction Project Project Name: 4. Provide a short summary of the project to be funded. This proposal focuses on the first phase of Lower Seguin Road (LSR) Reconstruction Project and is a collaborative, joint effort between the City of Schertz, Joint Base San Antonio (JBSA), and CPS Energy. LSR is a critical traffic corridor in Schertz that borders the southern edge of JBSA-Randolph (JBSA-RND). It provides the only access to its South Gate, which is the main entry for deliveries and services supporting Air Force operations. The primary activities of this phase are to replace the overhead utility lines with underground distribution lines in the southern clear zones of JBSA-RND and to perform preliminary traffic operational improvements near the South Gate. The project will reduce air safety risks and enhance physical security. This phase will enable future improvements, including constructing a closed stormwater drainage system. This will reduce water ponding and support bird and wildlife airstrike hazard (BASH) mitigation. Additional activities include replacing the low water crossing with a bridge in the special flood hazard area, full -depth roadway reconstruction, road widening, and installing a warranted traffic signal at the South Gate. 5- Funding Source A. Requested Amount of DEAAG B. Federal If DEAAG is being used towards matching a federal grant, please note the total amount of the federal grant. C. Local Community Funding (Note if funding is in -kind). D. Other Sources Total Dollar Amount $2,000,000 [to be confirmed] [Pending] [Pending] [Pending] [Pending] Total Project ' [Pending] Percentage Share of Project DRAFT 1 Eligibility _ 6. An entity is eligible for DEAAG if it satisfies one of the following; please select which qualification applies: Municipality or county that is a defense community as defined in Local Government Code 397.001. ❑ Regional planning commission that has a defense community within its boundaries. ❑ Public junior college district that is wholly or partly located in a defense community. ❑ Campus or extension center for education purposes of the Texas State Technical College System located in a defense community. ❑ Defense base development authority created under Local Government Code 379B. ❑ Political subdivision having the power of a defense base development authority created under Local Government Code 379B. Eligibility of Adversely Affected Community This applicant is not adversely affected. Please proceed to question 8. 7. An entity is an adversely affected defense community if it has experienced: ❑ An anticipated, planned, announced, or implemented action of the Department of Defense to close, reduce, or otherwise realign defense worker jobs or facilities. Eligibility of a Positively Affected Community _ ❑ This applicant is not positively affected. Please proceed to question 9. 8. An entity is a positively affected defense community if it has experienced: ❑ Increase in military missions, including personnel gains at a military installation, within a municipality or county as a result of a Department of Defense anticipated, planned, announced, or implemented action to increase or otherwise realign defense worker jobs or facilities. DRAFT 1 Summary of Impact & Eligibility 9. Provide a Summary of Eligibility regarding status as positively or negatively affected community with documentation. Describe the impact of the change in mission or personnel in the military installation or defense facility and community or the gain that is predicted to occur. Describe the impact on housing, transportation, infrastructure, and security where applicable. Attach additional pages as necessary as Attachment D. DEAAG program consideration/eligibility is dependent on supporting documentation. In September 2018, the Air Force selected the T-7 Red Hawk as its future jet trainer to replace the aging T-38 Talon fleet. JBSA-RND was selected as the first of five installations for the T-7 transition because it conducts the majority of the Pilot Instructor Training for the Air Force. As a result, the City of Schertz is a positively impacted community. Randolph was one of four installations consolidated under the JBSA umbrella during the 2010 Base Realignment and Closure (BRAC) process, making JBSA the largest and most diverse joint base in the Department of Defense (DoD). JBSR-RND is one of the most important Air Force installations in the nation, serving as the headquarters for the Air Education and Training Command (AETC), 12th Flying Training Wing (12 FTW), 19th Air Force (19 AF), and more. AETC's mission is to recruit, train, and educate Airmen, the 19 AF manages all formal aircrew flying training, and the 12 FTW conducts specialized training for pilots and combat systems officers, including four exclusive aviation training pipelines. With two runways supporting 200,000 annual aircraft operations, JBSA-RND is one of the busiest airfields in the Air Force and plays a vital role in maintaining Total Force readiness for both homeland defense and global operations. According to the June 21, 2022, Record of Decision (ROD) regarding the T-7A Recapitalization at JBSA-RND, the Air Force anticipates flight operations to increase approximately 10% once the T-7A aircraft are fully integrated. The Texas Comptroller and Texas Military Preparedness Commission reports that JBSA is home to 67,350 direct employees, including 32,333 active -duty military personnel. JBSA-RND comprises about 13% of the JBSA workforce with approximately 4,000 active -duty members and 5,000 civilian employees. The Comptroller estimated that in 2023, the population directly affiliated with JBSA contributed at least $55 billion to the Texas economy. The ROD also estimated that the T-7A mission will increase the workforce by approximately 303 new personnel. This influx of military and civilian staff will likely boost demand for housing, retail, dining, and services in Schertz and nearby areas. Furthermore, the major infrastructure upgrades for the T-7 transition, including renovation of 13 facilities and construction of 6 new ones, will generate jobs for local construction firms and suppliers. While this transition is positive for Schertz, the expected rise in flight operations increases the urgency to remove the remaining utility lines in the clear zones. Also concerning is the potential impact that the population growth, and resulting increase in traffic, will have on LSR. The 2024 LSR Traffic Projections Engineering Study reported an average of 4,200+ vehicles traveled on LSR and nearly 3,600 entered/exited through the South Gate in a single day. The study revealed that the LSR/South Gate intersection is operating at Level of Service (LOS) E on a scale from A (best) to F (worst). LOS E indicates it is functioning at capacity, with limited maneuverability, reduced speeds, and significant delays - a significant cause for concern due to the clear zones. Furthermore, between January 2021 and May 2025. the Schertz Police Department responded to 35 motor vehicle accidents on LSR and 22 (63%) of DRAFT 1 - ject Description Io. Check all that apply: Construct New Facility / Infrastructurel Expand Existing Facility / Infrastructure' © Renovate Facility / Infrastructure' Federal Grant Match2 Property Purchase3 Purchase of Insurance4 Purchase Capital Equipment ❑ Purchase Training Equipment 1 New Construction, Expansion or Renovation of Facilities or Infrastructure — Describe the use of the facility or infrastructure to be constructed or replaced, expanded, or renovated. 2 Fedem] Match Grant — Summarize the use of the DEAAG funding in obtaining federal funding. A federal award letter, Memorandum of Understanding, or agreement must be provided before the release of state grant funds. 3 Property Purchase— Describe the real or personal property to be purchased. Include general description of buildings and a map of the property to be purchased accompanied by a copy of the conveyance documents or a summary of conveyance negotiations. 4 Purchase of Insurance — Describe the insurance to be purchased including the type of coverage limits. DRAFT 1 ii. Provide a description of the project in the space below including specific details and documentation of the applicable project description as noted above. Examples include anticipated costs, project timeline, military gifting timeline, etc. Attach additional pages as necessary as Attachment E. Phase I of the LSR Reconstruction Project involves replacing the remaining [XX] linear feet of overhead utility lines in the southern JBSA-RND runway clear zones with underground distribution lines. This will continue the work started in 2021, with the support of DEAAG funding, when 25 utility poles and 8,990 linear feet of overhead utility lines were removed and replaced with underground lines in three of the four clear zones. The Air Installation Compatible Use Zone (AICUZ) guidelines restrict overhead lines in clear zones because they are vertical obstructions that increase the risk of air traffic collisions. The scope of work for the utility work includes trenching, underground conduit installation, and overhead utility removal. The scope for the preliminary traffic operational improvements on LSR near the South Gate including [pend' Anticipated Cost for this Phase: [$XX] Phase I Timeline: [Start Date] to [End Date] Military Gifting Timeline: [Is this applicable?] This work is a critical early phase of a larger roadway and infrastructure improvement effort along LSR. Future phases of the project will support BASH mitigation by installing a closed stormwater drainage system to improve drainage and reduce environmental attractants near the airfield, replacing the low water crossing with a bridge to provide 100-year unflooded access during heavy rain and flash flooding nirlen+o nnrl ...i.+cninn +L.c rnnrl....... i,;r +r, n 4 in +nllinn +r WK nnn+rnl m c +n cnL.nnro 12. Does the project add military value to a military installation or defense facility? How? Attach additional pages as necessary as Attachment F. The proposed project adds military value to JBSA-RND by enhancing military readiness and safety. Removing overhead lines from the from the DoD-mandated clear zones minimizes the risk of air traffic collisions — a greater concern due to the anticipated 10% increase of flight operations. This supports uninterrupted flying missions and ensures compliance with AICUZ guidelines. Additionally, the planned future traffic operational improvements near the South Gate will improve traffic flow through the clear zones, improving safety for commercial deliveries and personnel, reducing delays and increasing reliability for mission -critical support. Together, these upgrades strengthen JBSA-RND's capacity to sustain increased training throughput and long-term operational resilience. DRAFT 1 13. Is the project consistent with the most recent National Defense Strategy? How? Attach additional pages as necessary as Attachment G. The LSR Reconstruction Project is consistent with the 2022 National Defense Strategy (NDS), which prioritizes building a resilient Joint Force and strengthening the defense ecosystem through sustained investment. By replacing overhead utility lines with underground systems and improving traffic operations near the South Gate, JBSA-RND enhances its infrastructure resilience and operational continuity — key elements of the NDS's call for "resilient basing" and "force readiness." As JBSA-RND trains approximately 20% of all new Air Force pilots, these upgrades directly support the Strategy's emphasis on modernizing the force and investing in training environments that maintain a competitive advantage. 14. Does the project have dual community/military benefit? How? Attach additional pages as necessary as Attachment H. The project offers significant dual benefits to both JBSA-RND and the City of Schertz by enhancing safety, reducing power outages, and preventing economic disruptions. Relocating overhead utility lines to underground systems in the southern clear zones improves reliability and protects critical infrastructure from weather -related damage and potential aircraft collisions. For JBSA-RND, this means uninterrupted mission operations, which are essential to pilot training and national defense readiness. For the City of Schertz, underground utilities reduce the risk of outages that affect homes, businesses, and public services. Traffic operational improvements near the South Gate will further reduce congestion and accident risk, benefiting both military personnel and local residents. By proactively addressing these vulnerabilities, the project strengthens infrastructure resilience, safeguards lives, and supports economic stability for both the installation and the surrounding community. DRAFT 7 15. Does the project add resiliency to the military installation? How? Attach additional pages as necessary as Attachment I. The project adds resiliency to JBSA-RND by enhancing both infrastructure and operational safety. According to the National Oceanic and Atmospheric Administration's Storm Events Database, between August 2003 and June 2024, JBSA-RND experienced 10 extreme weather events including high winds, excessive heat, heavy rains, and flooding. Replacing the overhead utility lines with underground distribution will improve energy reliability and reduces vulnerability to weather -related disruptions. Preliminary traffic improvements near the South Gate support smoother access and emergency response, strengthening the base's overall readiness and continuity of operations. DRAFT 7 16.Does the project help the military installation become more efficient or save resources or save money on costs such as utilities? How? Attach additional pages as necessary as Attachment J. This project will significantly enhance operational efficiency and safety while reducing long-term costs. Replacing overhead utility lines with underground distribution lines in the southern clear zones of JBSA-RND minimizes the risk of power outages caused by weather or aircraft accidents. Overhead lines in flight paths pose a serious hazard to high -value aircraft such as the T-7, which costs over $19 million each. A collision could result in catastrophic damage, loss of life, and prolonged power outages requiring extensive repairs and re-establishment of service — disrupting mission -critical operations. Similarly, this project sets the stage for traffic operational improvements near the South Gate that will reduce congestion and the likelihood of vehicle accidents. While there is no county -specific breakdown, the National Highway Traffic Safety Administration (NHTSA) estimates that motor vehicle crashes cost Texans approximately $17.04 billion annually. These include medical expenses, emergency services, property damage, lost productivity, legal and court costs, insurance administration, congestion -related costs, and environmental impacts. In severe cases, they may lead to fatalities, which carry immeasurable human costs and significant financial implications for the DoD, including investigations, compensation, and loss of workforce productivity. By proactively addressing these risks, the project supports a safer, more resilient, and cost-effective infrastructure for the installation. Projected Completion Date & Pro'ect Milestones 17. Complete the following applicable milestones: Begin Construction [Pending] Complete Construction [Pending] Purchase Machinery & Equipment N/A Begin Operations N/A Fully Operational N/A 18. Is construction on Department of Defense property? ❑ Yes F No 19. Is construction on local, city, or county owned property? Yes ❑ No 20. Please provide limited and relevant information concerning your expenses for the project. For example, provide an overview of a budget as opposed to the full budget. Please provide as attachment K. Administrative costs will not be reimbursed through this grant. The Office of the Governor follows Texas Grant Management Standards as set by the State of Texas and the Federal Government. Please review these standards before submitting your projected expenses. For more information, visit https:llcomptroller.texas.gov/Purchasinqzgrant-management/ 10 DRAFT 1 Project Expense Estimate _ Expense Estimates Schedule (Grant Funds Only) Purchase of Property [All to be determined] Professional & Consultant Services New Construction (Infrastructure) Rehabilitation & Renovation (Infrastructure) Capital Equipment 5 Facilities Insurance Training Equipment 6 Training Supplies 7 Total Cost (Grant Funds Onl) $ 0.00 Provide any clarification in the following space. [Pending — waiting on CPS cost estimate.] 5 Per TxGMS, "Equipment' means an article of nonexpendable, tangible personal property having a useful life of more than one year and a per unit acquisition cost of $5,000 or more. 6 Id. 7 Per TxGMS, items of equipment with a per unit acquisition cost of less than $5,00o are considered supplies. DRAFT 1 Project Funding Sources Funding Schedule 21. Please complete the following where applicable: Funding Amount of Type Source I Fundi!M Federal State DEAAGTMPC $2,000,000 [to be confirmed] Other State/Entity Local City of Schertz [Pending] Other Total Other Financial Partners 22. Is DEAAG the sole source of project funding? If no, please provide additional information in the section below. 11 Yes FEW No Provide a description explaining the funding types and sources identified in the funding schedule. Include a description of any ongoing efforts to acquire funding from other sources including federal agencies and other financial partners. Attach additional pages as necessary as Attachment L. In addition to the DEAAG request of $2,000,000, the City of Schertz will provide the balance of project funding, utilizing general funds and bonds issued to finance the remaining phases of the Lower Seguin Road Reconstruction Project, which amounts to [$XX], resulting in a total project cost of [$XX]. [Should we say something about pursuing DCIP here?] J 12 DRAFT I Request for Exceptional Funding 4 Applicant is not requesting exceptional funding. If requesting more than 5o of the project funds from the TMPC, the following information is needed. Only 50% of the request can be granted without the required justification. 23. Establish and provide justification if requesting greater than 50 percent grant match under Texas Government Code §436.202 and 1 TAC § 4.34; provide explanation and documentation that local community budget and resources are not adequate or available. Justification should include information on the lack of revenue and resources prompting this request. Provide specific information on local efforts to secure adequate funding. Attach additional pages as necessary as AttachmentM. N/A Additional Information If additional information specific to this project is needed, please attach pages as Attachment N. Applications are limited to 5o pages. 13 DRAFT 1 Certification of Application _ Grantee Governing Body Representative (Required) Mr. Prefix Steve First Name Williams Last Name Title City Manager City of Schertz Organization Mailing Address 1400 Schertz Pkwy 210-619-1000 Phone Number Fax Number Email Address steve.williams@schertz.com To the best of my knowledge and belief, the information contained in this Defense Economic Adjustment Assistance Grant Application is true and correct, as evidence by my signature below. Furthermore, I affirm the authorized representative, the applicant author, or contact person and the project administrator have read chapter 436 of the Texas Government Code and the program administrative rules maybe found in Subchapter B of Title 1, Chapter 4 of the Texas Administrative Code and are familiar with the provisions contained therein. Signature (Governing Body Representative) Date 14 DRAFT 1 Participating Legal Counsel (Optional) No legal counsel involved in the project. This page may be discarded from application package if not used. Prefix First Name [To be determined] Last Name Title Organization Mailing Address Phone Number Fax Number Email Address I confirm that the above -named legal counsel has been retained to participate in this application process as outlined above. Signature Date (Governing Body Representative) Printed Name Title To the best of my knowledge and belief, the information in this Defense Economic Adjustment Assistance Grant Application is true and correct. Signature (Participating Legal Counsel) Date _ Printed Name Title �5 DRAFT 1 Participating Grant Administrator (Optional) No grant administrator involved in the project. This page may be discarded from application package if not used. Prefix First Name [To be determined] Last Name Title Organization Mailing Address Phone Number Fax Number Email Address Please provide a brief description of grant administrator's role with this application: [Name] will coordinate with TMPC for the reimbursement of project costs incurred by the City of Schertz or CPS Energy and will perform all periodic reporting requirements to TMPC. I confirm that the above -named grant administrator has been retained to participate in this application process as outlined above. Signature Date (Governing Body Representative) Printed Name Steve Williams Title City Manager To the best of my knowledge and belief, the information in this Defense Economic Adjustment Assistance Grant Application is true and correct. Signature Date (Participating GrantAdministrator) Printed Name Title 16