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Posted on: November 18, 2022

Updated GLO CDBG-MIT Regional Method of Distribution Application for Funding

 Proposed Project: 59th Street Water Storage Tank


Planned Activity Budget Amount:        $17,489,505.50


               CDBG-MIT Funding:                   $15,761,400.00

               Other Funds:                                $1,728,105.50


Project Type: Water Facilities


Scope of Work:

The City of Galveston proposes to mitigate the risks of water failure during future cold or other weather driven events by constructing a new water storage tank with 7.5M gallons of storage capacity. In addition to providing sufficient pressure to reduce the likelihood of the water system going down during extended cold periods, it will also provide additional emergency storage that is needed during other emergency events which is especially critical in Galveston as water sources on the island are scarce. The addition of the new tank will increase the Island's water storage capacity from 11.5 M gallons to 19M gallons. 

As existing water tanks 2, 3, and 4 are not currently in service and are unrepairable, they would be demolished and removed. A new tank will be constructed within the newly opened space. The new 7.5M gallon tank will be hardened to protect it from weather related failures.  

The concrete tank will provide additional storage capacity and pressure and will be able to withstand cold temperatures much better than the current steel tanks that are in place. The new tank will be robust enough to withstand most hurricane weather events and will be built with telemetry for better data capture and automated controls. The City believes that the new water storage tank will be able to tie into most of the existing piping and electrical.

Work will include the development of design level engineering documents, an Environmental Assessment, demolition and removal of tanks 2, 3, and 4, the construction of the new tank and any piping or electrical tie in work that is needed.

Operations and Maintenance: 

The 59th Street Water Storage Tank Project will result in the construction of a new 7.5M gallon water storage tank with a useful life of 50 years. Annual maintenance costs are projected to be $20,000 annually, consisting of four quarterly inspections per year at an estimated $5,000 per inspection. Maintenance costs will be more fully understood and updated during the design phase of the project. The City will fund long term operations and maintenance of the new water storage tank as part of its annual budget process.


The proposed project, if fully funded by GLO through the CDBG-MIT Regional MOD application process will result in CDBG-MIT funding of $15,761,400.00, the maximum amount for which the City may qualify. The total cost of the project is projected to be $17,489,505.50, leaving a local cost share requirement of $1,728,105.50 that will be paid by City funds. Table 1 below outlines the proposed budget. 

GLO will provide up to 8 percent of the available grant funds for grant administration. The 8 percent must include costs for environmental review. The original proposed budget did not account for the environmental review costs within the 8 percent administrative cap. Therefore, costs were realigned to bring the proposed budget into GLO program compliance. Reallocation of cost across budget line items has not changed the total proposed budget nor the total cost share that must be borne by the City.

To bring the budget into eligibility compliance, the following changes were made:

  • $100,000 has been removed from the Grant Administration line-item budget. This reduced the previous amount of $1,260,912.00 to $1,160,912.00. 
  • $100,000 has been added to the Construction Cost funded by CDBG-MIT. This increased the CDBG-MIT Construction budget from $14,250,488.00 to $14,350,488.00.
  • $100,000 was reduced from the City’s cost share in Construction. This reduced the Other Funds Construction budget from $1,728,105.50 to $1,628,105.50.
  • $100,000 was added to the City’s cost share in Engineering. This increases the engineering budget from $150,000.00 to $250,000.00. 

Table 1: Proposed Budget for the 59th Street Water Storage Tank Project



Other Funds


Percent of Total











Grant Administration





Special Environmental


























Project Area

Figure 1, below, illustrates the location of the proposed project, which is at 333 59th Street. Figure 2 is the same image but is zoomed in to provide additional detail. It includes latitude and longitude coordinates of the site and numbering of the existing water storage tanks at the site. Tanks 2, 3, and 4 are proposed to be demolished and replaced by a single tank. 

Text Box: Figure 1: Latitude/Longitude of Site and Tank Identification Text Box: Figure 2: Aerial Image of Project LocationText Box: 29.29386 N<br/>94.83623 W

Text Box: Tanks 2, 3, and 4





This project will meet the HUD Low- to Moderate-Income (LMI) National Objective. It has a City-wide benefit that will impact all Galveston residents. With a population of 50,307 residents (2020 data) and 28,484 LMI beneficiaries, the City has determined that 56.62 percent of the population meets the HUD definition of LMI. This exceeds the minimum threshold of 51% established by HUD and allows the City to meet the LMI National Objective. This determination is based on the most currently available U.S. Census statistics from the American Community Survey, which relies on 2020 data. 


Text Box: Figure 3: Map of Galveston with GIS Polygon Overlay Outlining Galveston IslandWebsite</p><p>Description automatically generated with low confidenceThe maps below, produced using the GLO’s Geographic Information Systems (GIS) CDBG-MIT Mapping Viewer demonstrate the population LMI population by use of HUD’s 2021 income limits applied City-wide. Figure 3 simply shows the GIS polygon for the City of Galveston. It is included here to provide easier reference to Figure 4, which shows the same polygon with LMI by place layer added.  Figure 4, further demonstrates the City’s qualification for the HUD LMI National Objective.  





 Text Box: Figure 4: City of Galveston LMI by PlaceA picture containing arrow</p><p>Description automatically generated

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