Charleston Peninsula CSRM Project - PED Phase

The FY23 Omnibus appropriated initial funding by Congress to begin activities in the next phase of the project, known as Preconstruction, Engineering and Design (PED). The Water Resources Development Act of 2022 provided authorization for the project to be carried out into subsequent phases in accordance with the Chief’s Report and Final Feasibility Report/Environmental Impact Statement. The PED phase may only be initiated once a Design Agreement (DA) has been executed by USACE and the City of Charleston.

The City and USACE have started the preliminary negotiations of the DA. The City’s decision to execute a DA with USACE will represent a commitment by the City to cost share the PED phase. The PED phase will address detailed engineering, technical studies, and design to include such things as continued study of the barrier alignment, prospects for additional natural and nature-based features, specifics of cultural/historic and aesthetic mitigation, refinement of gate operation procedures, advisability of higher nonstructural measure design elevations, opportunities to incorporate additional climate change resilience and other aspects of the plan.

The multi-year PED phase will require additional federal appropriations to complete and is a necessary predicate to develop the project for the Construction phase, but execution of the DA does not constitute a legal obligation on either the City’s or USACE’s part to proceed with construction.

In-Kind MOU

In-Kind Memorandum of Understanding for Design Work Performed Prior to Execution of a Design Agreement

What is an In-Kind Memorandum of Understanding (MOU)?

An In-Kind MOU is a document executed by the Corps and a non-federal sponsor (such as the City) which allows for eventual credit for the value of materials or services provided by the non-federal sponsor prior to execution of a formal project agreement (such as a design agreement).  In this case, credit for eligible in-kind contributions would go toward the City’s required non-federal cash contribution should a design agreement subsequently be executed.  The statutory authority for an In-Kind MOU is found in Section 221(a)(4) of the Flood Control Act of 1970, as amended (42 U.S.C. 1962d-5b(a)(4)).

What led to the execution of an In-Kind MOU between the Corps and the City?

By letter dated June 11, 2024, the City requested to enter into an In-Kind MOU to carry out certain proposed design work prior to the execution of a design agreement for the Charleston Peninsula CSRM project.  After some discussion regarding the scope of in-kind design work, the Corps and City executed an In-Kind MOU on October 24, 2024.  The MOU does not deviate from the standard provisions of the model MOU developed by the Corps for in-kind work prior to execution of a design agreement.

What design work is covered by the MOU?

The design work contemplated in the MOU generally consists of preliminary preconstruction engineering and design (PED) work and design-related studies regarding storm surge structure alignment and form, along with supporting data collection and assessments, as well as public engagement.

Are there requirements that the City’s design work has to meet in order to be eligible for credit?

Yes.  First, the Corps must determine that the City’s design work is integral to the Project prior to the execution of a design agreement.  The non-federal design work must constitute work that the Government would otherwise have undertaken for design of the Project in order for it to be deemed integral, and must be consistent with the general parameters of PED work outlined during the feasibility phase of the Project.  Second, creditable non-federal design work does not include activities which the City would be obligated to perform as part of a design agreement (such as serving on a design coordination team).  Third, the Corps must verify that the City’s design work was accomplished in a satisfactory manner, and in accordance with applicable Federal laws, regulations, and policies.  Fourth, after the design work is performed by the City pursuant to the In-Kind MOU, the Corps will conduct an audit to determine the reasonableness, allocability, and allowability of the City’s costs.

What if the City wants to achieve more with its design work than the Corps would otherwise do for design of the Project?

The City is not prevented from achieving complementary goals which are in addition to or which exceed those that the Corps would otherwise apply to design of the Project.  Where non-federal design work exceeds the standards that the Corps would otherwise apply to design of the Project, it is considered a “betterment”.  Design work associated with additional work or betterments is not eligible for credit under the In-Kind MOU.

Does the MOU provide a guarantee that covered design work will receive credit if a design agreement is executed?

No.  In addition to the conditions for eligibility noted above, credit for in-kind design work may be impacted by such things as project authority and funding, or by future modification of the project which could result in certain in-kind design work no longer being an integral part of the Project.

What will the perimeter storm surge barrier look like?

The project includes a storm surge barrier along the edge of the peninsula with an elevation of 12-foot NAVD88. The height of the barrier would vary depending on the ground elevation. Areas that have lower ground elevations would tend to have more barrier visible. Areas with higher ground elevations would tend to have less barrier visible. Also, the experience of the barrier would vary depending on the barrier design. For example, in locations near the Low Battery (Figure 1) where the ground elevation is around 5-feet NAVD88 the visible barrier height is around 7-feet tall. However, because the barrier is designed for people to walk on it, the experience of the barrier is almost as though it has no height. The project team will be considering a similar structure along the west side of the Peninsula through the City Marina, Medical District and Brittlebank park.