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COMBINED NOTICE OF FINDING OF NO SIGNIFICANT IMPACT AND INTENT TO REQUEST RELEASE OF FUNDSCity of Johnson City 303 E. Pecan Drive Johnson City, TX 78636

PROJECT CONTRACT #R729310, Date of Publication: October 15, 2009. This Notice shall satisfy the above city two separate but related procedural notification requirements.REQUEST FOR RELEASE OF FUNDSSeventeen days after the date of this publication, on or about November 1, 2009, the City of Johnson City, Texas will submit a request to the Texas Department of Rural Affairs for the release of Community Development Block Grant funds under Section 104(f) of Title 1 of the Housing and Community Development Act of 1974 as amended, to undertake a Wastewater Collection System Improvements Project that will benefit 100% of the citizens of Johnson City. In accordance with regulatory requirements as identified within 24 CFR Part 55 – Floodplain Management, two public newspaper postings provided adequate notice to citizens of Johnson City to provide comment regarding replacement of undersized sewer lines. The undersized lines of 8” and 10” will be replaced with 18” lines allowing the slope to achieve at least a two foot per second flow velocity, supporting also the City’s endeavor in keeping with the Texas Commission on Environmental Quality wastewater rules and regulations. Construction is located within the floodplains of the City of Johnson City. Once work is complete, the vegetative cover will be restored. 1b.Sewer Facilities The construction location will take place in the following locations: from north of Bluebonnet Street (5th Street) to Resort Road, and Resort Road from US Highway 281 North to City Wastewater Treatment Plant. Results from these activities will benefit one thousand one hundred fifty (1,150) persons, of which six hundred ten (610) or fifty-three percent (53%) are of low-to-moderate income. Activity Construction activity shall be replacing undersized sewer lines to eliminate infiltration and inflow. The work will include: 1)Replacing 8”and 10”deteriorated wastewater lines and will consist of installation of approximately two thousand fifty linear feet (2050 l.f.) of eighteen-inch (18”) sewer main 2)Seven (7) new manholes 3)Two (2) connections to existing wastewater manhole 4)One (1) connection to existing head works at the city’s Wastewater Treatment Plant 5)Associated appurtenances. The Project Area: Construction shall take place in the following location:STREET NAME FROM TO Along US Highway 281 North North of Bluebonnet St (5th Street)Resort Road Resort Road US Highway 281 North City Wastewater Plant This project will allow the City to resolve health and regulatory issues of TCEQ and prevent a potential catastrophic wastewater spill into a nearby creek which flows directly into the Pedernales River. Alternatives The alternatives considered for dealing with deteriorated and undersized sewer lines include: 1. Doing nothing was not an acceptable alternative as infiltration and inflow does not preserve human health and the environment; 2. Removing and replacing the existing 8” and 10”sewer line with a larger 18” sewer line was selected as it is a viable solution that ensures a commitment to benefit human health and the environment extending on to preserves the integrity of the budget; and 3) Extending the line further south on Highway 281 at north of Bluebonnet (5th street) in a southerly direction to a manhole Crestview Road may be possible if funding and time permits. The City believes the cost of construction for improving the overall environmental and health impacts justifies the appropriate use of the CDBG funding and shall benefit one thousand one hundred fifty (1,150) persons, of which six hundred ten (610) or fifty-three percent (53%) are of low to moderate income. This Environmental Review has been designed to cover all construction activities funded by TDRA in the area specified in the approved construction plans and in the areas within 300 feet in all directions from the site in the proposed construction. Project Costs and Funding Sources COST ITEM COST AMOUNT FUND SOURCE FUND AMOUNT CONSTRUCTION SEWER FACILITIES $211,750.00CDBG GRANT CONTRACT R729310 $250,000.00 ENGINEERINGARCHITECTURAL, SURVEYING & INSPECTION $34,500 Other Funds $25,000.00 LOCAL CASH MATCH $25,000.00 GENERAL ADMINISTRATION $3,750.00 TOTAL$275,000.00 TOTAL $275,000.00 Public Review Process A public review process was conducted in accordance with the requirements of an environmental assessment. This included publishing of a fifteen day, Early Floodplains Notice followed by a seven day Floodplains Notice of Explanation. The Published Finding of No Significant Impact (FONSI) utilizing the Combined Notice of Finding of No Significant Impact and Intent to Request Release of Funds (RROF)in accordance with 24 CFR 58.43 and 24 CFR 58.45 was published in the local newspaper for a 15 day public notice period. No comments were collected during these specified times.NO SIGNIFICANT IMPACT Exempt Activities: (1) Administration: This activity will provide for the administrative process required to coordinate the project with other Agencies and to keep all records and manage program operations during the contract. (2) Engineering: This activity will provide for assistance in completing the Environmental Review Record, surveying, project design, plan development, bidding, construction inspection and other related services during the period. NON-EXEMPT ACTIVITIES Construction: The City of Johnson City has determined that the project will have no significant impact on the human environment. Therefore, an Environmental Impact Statement under the National Environmental Policy Act of 1969 (NEPA) is not required. Additional project information is contained in the Environmental Review Record (ERR) on file at City Hall located at 303 E. Pecan Drive, Johnson City, Texas 78636 and may be examined or copied between the hours of 9:00 A.M. to 4:00 P.M., weekdays. PUBLIC COMMENTS Any individual, group, or agency disagreeing with this determination or wishing to comment on the project may submit written comments to the City of Johnson City. All comments received by November 1, 2009, will be considered by the City of Johnson City prior to authorizing submission of a request for release of funds. Commentors should specify which part of this Notice they are addressing. RELEASE OF FUNDS The City of Johnson City certifies to the Texas Department of Rural Affairs that Kermit Roeder, in his capacity as Mayor, consents to accept the jurisdiction of the Federal Courts if an action is brought to enforce responsibilities in relation to the environmental review process and that these responsibilities have been satisfied. The Johnson City Office’s approval of the certification satisfies its responsibilities under NEPA and related laws and authorities, and allows the City of Johnson City to use Program funds. OBJECTIONS TO RELEASE OF FUNDS The Texas Department of Rural Affairs will consider objections to its release of funds and the City of Johnson City certification received by November 17, 2009, or a period of fifteen days from its receipt of the request (whichever is later) only if they are on one of the following bases: (a) the certification was not executed by the Certifying Officer or other officer of the City of Johnson City approved by the Office; (b) the (RE) has omitted a step or failed to make a decision or finding required by HUD regulations at 24 CFR Part 58; (c) the grant recipient or other participants in the project have committed funds or incurred costs not authorized by 24 CFR Part 58 before approval of a release of funds by the Office; or (d) another Federal agency acting pursuant to 40 CFR Part 1504 has submitted a written finding that the project is unsatisfactory from the standpoint of environmental quality. Objections must be prepared and submitted in accordance with the required procedures (24 CFR Part 58) and shall be addressed to the Texas Department of Rural Affairs at P.O. Box 12877, Austin, Texas 78711. Potential objectors should contact the Office to verify the actual last day of the objection period. Certifying Officer: Title: Mayor Kermit Roeder City of Johnson City 303 E Pecan Drive