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2025-046 Lift TPWD Grant Pause May 9,2025 Report No. 2025-046 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Recommendation to Lift Pause on TPWD-Funded Grant Activities EXECUTIVE SUMMARY: On January 27, 2025, the Office of Management and Budget(OMB) issued memo M-25-13, directing a pause on the obligation or disbursement of federal financial assistance. This was lifted shortly after via OMB memo M-25-14 on January 29, 2025. In response, the City took proactive steps to mitigate financial risk by pausing all federally funded infrastructure and housing-related activities, as documented in ISR 2025-35. Following further federal clarification, the City issued ISR 2025-40, formally lifting the temporary pause on all HUD-funded programs and projects. Staff now recommends extending this action by lifting the pause on the Texas Parks & Wildlife Department (TPWD) funded grant activities. This recommendation is based on direct communication with TPWD, which confirmed that the City's awards under the Land and Water Conservation Fund(LWCF) are not currently at risk. DISCUSSION: The City originally paused TPWD-funded activities in response to federal uncertainty outlined in OMB Memo M-25-13. However, based on updated guidance and a direct assurance from TPWD, staff now recommends lifting the pause on all TPWD grant projects. The email from TPWD staff states: "We have had no indication that the federal funds for any of Denton's four awards is at risk. The Villages of Carmel, Bowling Green, and Briercliff all have executed grant agreements and official notices of award from NPS. We are preparing our federal submittal for Lily Cantu Playground now and NPS has indicated that they expect to process it under their normal timeline." This communication confirms that all existing agreements are not subject to the type of financial risk that originally warranted the pause. TPWD has also expressed appreciation for the City's partnership and confirmed continued coordination as they complete their federal submission process. Resuming these projects is critical to avoid local delays, support public access and recreation, and align with established timelines for construction and grant reporting. TPWD-Funded Projects to Resume: • Villages of Carmel Park Construction(Local Parks 2022 - $621,562 grant award) • Bowling Green Park Renovation (Local Parks 2023 - $598,532 grant award) • Briercliff Park Renovation (Local Parks 2024 - $750,000 grant award) May 9,2025 Report No. 2025-046 • Lily Cantu Inclusive Playground(Local Parks 2025, pending National Park Service (NPS) submission- $750,000 grant award) • Kayak Launch Planning (Boating Access 2023 — $97,500 grant award) Recommended Oversight Measures: • Continued coordination with TPWD on reimbursement submittals and approvals. • Monthly status updates between Parks & Recreation and Grants Division. • Prompt invoice review and drawdown to reduce reimbursement delays. • Documentation monitoring to ensure federal compliance and audit readiness. CONCLUSION: Based on TPWD's confirmation that no risk exists to the City's LWCF-funded awards, staff recommends resuming all paused TPWD grant activities immediately. Resuming these park and recreation improvements aligns with the City's project goals, meets state and federal compliance, and supports timely service delivery to the community. Jessica Williams, CFO Jessica.JWilliamsgcityofdenton.com Gary Packan, Director of Parks &Recreation GM.packan(c cityofdenton.com REQUESTOR: Christine Taylor, Assistant City Manager STAFF TIME TO COMPLETE REPORT: 2 hours PARTICIPATING DEPARTMENTS: Finance, Community Development, Parks &Recreation