Subject:
Title
Approvals, Re: State Grant and an Agreement with the U.S. Army Corps of Engineers to Conduct a Feasibility Study for Increasing Passage of Water, Fish and Wildlife under Highway 528 Across the Banana River (District 2)
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Fiscal Impact:
Up to $350,000 from the Save Our Indian River Lagoon Trust Fund (1260)
Dept/Office:
Natural Resources
Requested Action:
Recommendation
It is requested that the Board authorize the Chair to execute 1) a state grant contract, 2) a resumption letter, an agreement with the U.S. Army Corps of Engineers (USACE), a certification regarding lobbying, and a self-certification of financial capability to commit $350,000 of required match for the USACE to conduct a Feasibility Study to assess alternatives for reestablishing natural circulation and flow to support self-regeneration of marine life and habitat, including seagrass beds, within the Banana River, which is currently inhibited by the Highway 528 Causeway, 3) authorize the County Manager to execute all necessary grant amendments, USACE agreement amendments and budget amendments (BCRs).
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Summary Explanation and Background:
In 1996, Congress authorized the USACE to initiate investigations and implement projects for aquatic ecosystem restoration that improve the quality of the environment, are in the public interest, and are cost effective. Maximum federal expenditure for a project is $15,000,000.
On February 26, 2019, the County Commission sent a letter (attached) to the Florida Department of Transportation (FDOT) noting that their plans to widen SR 528 from Industry Road to Port Canaveral provide “an exceptionally rare opportunity to consider infrastructure improvements that will improve transportation in a manner that could also provide decades of improved circulation within a highly impaired and unnaturally stagnant section of the Banana River.” Resolutions of support were approved by the Space Coast Transportation Planning Organization, Canaveral Port Authority, and the Indian River Lagoon National Estuary Program Council (attached). In response, FDOT agreed to design and construct a bridge over the Banana River, allowing for removal of the earthen causeway that impedes natural circulation.
On September 21, 2021, the County Commission authorized the Chair to send a letter to USACE (attached) requesting them to determine the feasibility of an ecosystem restoration project to address the earthen causeway after FDOT elevates Highway 528 by extending the bridge spans over the Banana River. An initial Federal Interest Determination (attached) was completed at 100% federal cost. This federal effort indicated that compartmentalization of lagoon waters by the earthen causeway impedes natural hydrology and the associated movement of flora and fauna and contributes to habitat degradation in the Banana River. Increasing water circulation could reestablish flow, habitat and aquatic species richness, therefore proceeding with a Feasibility Study is federally authorized if the County partners with USACE.
During the 2026 Florida Legislative session, $175,000 of state cost share for conducting this Feasibility Study was included in the Appropriations Bill and approved by the Governor. State grant contracting typically takes several months, however terms and conditions allow reimbursement of project costs that occur after July 1, 2026, even if they precede grant contract execution.
Through the proposed Feasibility Study process, USACE will develop a range of alternatives to increase natural flow in the Banana River and determine the best option. The estimated cost of the Feasibility study is $700,000 and requires 50% non-federal funding. The state grant will provide$175,000 of the $350,000 non-federal match requirement.
Construction costs are not yet known but are expected to fall within the $15 million Section 206 federal program limit. The best, cost-effective alternative will be eligible for federal implementation at 65% federal cost up to $15 million. State funds could also be requested to assist the County’s Save Our Indian River Lagoon (SOIRL) Program with the 35% non-federal construction cost share. The recommended alternative would be brought back to the County Commission for inclusion in a future update of the SOIRL Project Plan.
The County Commission is requested to approve use of available SOIRL Program Respond funds to match the State Grant to fund the non-federal cost share of the Feasibility Study. On October 20, 2023, the SOIRL Citizen Oversight Committee voted in favor of using SOIRL Respond funds to provide the local match necessary to conduct the Feasibility Study. Modeling tools and products completed by the USACE to compare the benefits of causeway removal options are also expected to be useful for evaluating pollution sources and estimating the potential benefits and performance of SOIRL projects identified to reduce or remove pollution.
Clerk to the Board Instructions:
Execute 2 originals of the USACE Agreement, one each for the County and USACE of the Feasibility Study Agreement and the Self-Certification of Financial Capability. The state grant contract will be circulated for signature at a later date when provided by the state and after review and approval by the County Attorney, Purchasing and Risk Management.