Discussion, consideration, and possible action approving of the First Amendment to the Memorandum of Understanding (“MOU”) between Hidalgo County, through the Hidalgo County Urban County Program (“UCP”), the City of Mercedes (“City”), and Hidalgo County Drainage District No. 1(“HCDD#1”) for the City of Mercedes South Mercedes Lateral Improvements Project – Phase 3 (GLO Contract No. 23-152-010-E182), to clarify responsibilities related to real property acquisition, to modify Texas General Land Office (GLO) procurement responsibilities, and establish construction payment and reimbursement procedures in accordance with GLO requirements.

1. The existing MOU was executed to define the respective roles and responsibilities of the City, HCDD#1, and the UCP for implementation of the City of Mercedes South Mercedes Lateral Improvements Project – Phase 3, funded through the GLO CDBG-DR 2018 Infrastructure Competition.

Since execution of the original MOU, the GLO has provided additional guidance requiring clarification of responsibilities related to real property acquisition, procurement, and construction payment procedures. The proposed First Amendment updates the MOU to:

• Clarify HCDD#1's responsibilities regarding acquisition of real property in accordance with GLO, HUD, and Uniform Relocation Assistance (URA) requirements;
• Remove HCDD#1 from procurement-related responsibilities to comply with GLO guidance;
• Establish a reimbursement process allowing HCDD#1 to pay eligible construction contractors and vendors, invoice the City, and receive reimbursement after the City receives reimbursement from the GLO; and
• Reaffirm that the City remains the grant recipient and retains full responsibility for project oversight, compliance, and all reimbursement requests submitted to the GLO.

2. Approval of this amendment will ensure the MOU remains consistent with current GLO guidance and supports the continued implementation of the project.