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To: Honorable Mayor Adams and Council From: Julie Feier, City Manager Date: March 6, 2009 Subject: Weekly Update March 11 Study Session Due to the constraints of everyone’s schedules, the agenda will also include a discussion of the proposed ballot initiatives and the initial service cut considerations. Even with three successful ballot measures, there is a projected deficit by FY 2014. Staff will continue to reduce the City’s capital and operating budgets however; we need Council direction on the long-range service reductions and on the strategy you wish to employ to generate additional revenue. U.S. Senators Bond and McCaskill, and House Next week we plan to send letters to Representative Clay asking their input to the US Army Corp of Engineers to clarify the 1990 legislation that authorized the federal flood control project along the River Des Peres. We are asking that the Corp credit any past work on the river by MSD as local match for future projects on the river. The Draft of the Corp Study now states that the buyout or flood proofing of homes in the 5-year floodway are the only means possible to protect the health and safety of the citizens who reside there. Despite the clear intent and wording of the legislation, the Corp is resisting allowing MSD’s past work (estimated at $6 million) as credit toward future action. This is critical to the success of any future relief given the financial outlook for the City. Unlike the SEMA grant, the local matching requirement under the Corp project would be 35%. The Corp estimates that a buyout of 148 homes to cost at least $23 million. The letter also asks that the boundaries of the study area be expanded to all of University City to insure that residents who have been repeatedly affected by flooding who are not in the current study area, are considered for future buyouts. If you do not agree with us sending such a letter, please let me know as soon as possible. The draft letters are attached. flood victims Since our public meeting last week with , 16 of the 26 owners of properties on the riverside of Wilson Avenue have signed consent forms for buyout. We received 92 question/comment cards and will be responding to these in the next few weeks. MSD is also answering individual questions directed to them. We also have begun investigation of moving homes on the riverside of Wilson as an alternative to a buyout/demolition. According to SEMA, as long as the benefit-cost ratio is still 1.0 or higher, funds from the grant could be used to move a home. Of course, moving a home is a green option. To rebuild a 2000 square foot home requires 120 40-foot trees. The estimated cost of moving a home, which includes site preparation, new foundation, and