1. US Army Corps of Engineers BUILDING STRONG ® West Onslow Beach/ Topsail Beach West Onslow Beach/ Topsail Beach Coastal Storm Damage Reduction Project Town of Topsail Beach Board of Commissioners Brief July 9, 2014 Presented by U.S. Army Corps of Engineers Wilmington District

2. BUILDING STRONG ®OVERVIEW  Project Update: Current Status  Process to get to a Federal Project: Steps  Project History: How did we get where we are?  Project Description and Cost: What will the Federal Project achieve?  Fiscal Overview: How much have we spent and on what?  Project Authorization – FINALLY!  The Path to Construction 2

3. BUILDING STRONG ® PROJECT UPDATE  General Reevaluation Report defining the project was approved in final form in 2009  Preconstruction, Engineering and Design Phase of Work: preliminary design documentation completed  Project is ready for preparation of construction documents once real estate acquisition has been completed  Project authorization received in 2014 3

4. BUILDING STRONG ® PROCESS TO GET TO A FEDERAL PROJECT  Request from a local entity and, in most cases, Congressional study authority  Cost-shared study completion to identify Federal interest in a potential project  Cost-shared preconstruction, engineering and design for preparation of project plans and specifications  Project authorization (can occur at any time after study completion)  Construction appropriation/Project Partnership Agreement Execution  Real Estate Acquisition  Construction Contract Award 4

5. BUILDING STRONG ® WOB/TOPSAIL BEACH PROJECT HISTORY 5  4 Congressional study resolutions were used to undertake the original Feasibility Study that recommended a project at Topsail Beach. Feasibility Report was completed in 1990.  Project was authorized in Water Resources Development Act of 1992  Design activities were completed in 1992; Town decided not to sign the Project Cooperation Agreement  Request was received to re-look at a Federal project in late 1990s, and General Reevaluation Report (GRR) was completed between 2001-2009  Design activities for modified project were initiated in 2010 and preliminary design was completed in 2014  Locally Preferred project was authorized in WRRDA 2014

6. BUILDING STRONG ® UPDATED AUTHORIZED PROJECT 6

7. BUILDING STRONG ® UPDATED AUTHORIZED PROJECT 7 Project life: 50 years Initial construction cost: $39.4M ($25.6M Fed/$13.8M Non-Fed) Renourishment cost/life: $265.5M ($132.8M Fed/$132.8M non-Fed) 23,200 feet long Dune and Berm

8. BUILDING STRONG ® FINANCIAL SUMMARY PROJECT PHASE FEDERAL NON-FEDERAL TOTAL COST Feasibility Report (1990) $963,000 $963,000 Project Design $346,200 $115,400 $461,600 GRR (2001-2009) 75/25 cost share $2,025,750 $675,250 $2,701,000 50/50 cost share $ 499,000 $499,000 $ 998,000 $2,524,750 $1,174,250 $3,699,000 Project Design $685,500 $228,500 $914,000 TOTALS: $4,519,450 $1,518,150 $6,037,600 Available funds remaining: $25k (coordination, budget process, PPA dev) Additional funds required for Econ Update: $60k ($45 Fed/$15 non-Fed) 8

9. BUILDING STRONG ® PROJECT AUTHORIZATION AT LAST: Water Resources Reform and Development Act of 2014 9

10. BUILDING STRONG ® THE PATH TO CONSTRUCTION 10  Complete economic/project cost update  Request and receive construction funds  Develop and execute a Project Partnership Agreement  Obtain Real Estate  Finalize construction bid documents  Award construction contract and initiate construction

11. BUILDING STRONG ®QUESTIONS? BOTTOM LINE:  13 years to study, design and authorize a project  Over $4.5M Fed and $1.5 Non-Fed funds invested to date  Over $150M Fed funding share once construction has initiated  Project authorization allows us finally to request funds for construction Federal Project life: 50 years FederalNon-FedTotal Initial construction cost: $25.6M $13.8M $39.4M Renourishment cost/life: $132.8M $132.8M $265.6M TOTAL: $158.4M $146.6M $305M 11