RPVCCA_CC_SR_2011_08_02_L_Claim_Against_SCE_Port_Bend_FireCrrvOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
Staff Coordinator:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
CAROLYN LEHR,CITY MANAGER ~
AUGUST 2,2011
CLAIM AGAINST SOUTHERN CALIFORNIA EDISON FOR 2009
PORTUGUESE BEND FIRE DAMAGES AND EXPENSES
Matt Waters,Senior Administrative Analyst e
RECOMMENDATION
1.Authorize the submission of a claim by the City of Rancho Palos Verdes against
Southern California Edison for actual expenses incurred by the City and the Palos Verdes
Peninsula Land Conservancy and for the estimated cost of future habitat restoration of
damaged critical native habitat acreage due to the August 27,2009 Portuguese Bend fire.
2.Approve the attached letter of intent between the City and the Palos Verdes Peninsula
Conservancy designating the use of any claim proceeds received by the City of Rancho
Palos Verdes,including any future distributions to the Palos Verdes Peninsula Land
Conservancy.
BACKGROUNDIDISCUSSION
On August 27,2009,a fire caused significant damage in Rancho Palos Verdes and Rolling
Hills.The County of Los Angeles Fire Department Arson/Fire Investigative Unit
investigated the fire and concluded that the fire was caused by an electrical mechanical
malfunction of the electrical wiring and/or connector adjacent to a Southern California
Edison (SCE)power pole on the south side of Burma Road.
Although there was minimal structural damage from the fire,approximately 180 acres of
vegetation was destroyed in the cities of Rancho Palos Verdes and Rolling Hills.
Approximately 165 acres of the total burned area are part of the Portuguese Bend Reserve
section of the Palos Verdes Nature Preserve.The Portuguese Bend Reserve is owned by
the City and managed by the Palos Verdes Peninsula Land Conservancy (PVPLC).The
purpose of the Preserve is to conserve and restore federally protected critical habitat.
Furthermore,the City is obligated to preserve the existing habitat and restore non-habitat
6withinthePreserve.The Reserve property that was subject to the 2009 fire contained a
significant amount of high value habitat.Of the 165 burned acres,57.4 acres consisted of
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Claim Against Southern California Edison For 2009 Portuguese Bend Fire Damages and Expenses
August 2,2011
Page 2
critical native habitat before the fire.See attached Portuguese Bend Pre-fire vegetation
map.
The Natural Communities Conservation Plan (NCCP)states that every three years,15
acres of habitat needs to be restored throughout the entire Palos Verdes Nature Preserve,
not just in Portuguese Bend.The City and PVPLC are committed to perform on-going
habitat restoration throughout the Preserve during the 50-year term of the NCCP.The
NCCP requires timely restoration of habitat resulting from a disaster event.The NCCP,
however,exempts this requirement in the event a burn area resulting from a disaster is
greater than 50 acres.While the City is not contractually obligated to restore damage to
habitat caused by the 2009 fire,the extensive habitat destruction merits a timely and
comprehensive intervention in .order to restore this treasured community asset.
The PVPLC and the City have pursued and received grant funds for the Portuguese Bend
Nature Reserve.The PVPLC received $30,000 in a local assistance grant from the
California Department of Fish and Game to assist with post-fire monitoring and the
restoration of a small part of the burn area.The PVPLC used funds from this grant to
restore approximately 3 acres of the burned area,including 0.8 acres of critical native
habitat.This effort reduced the estimated total of critical native habitat in need of
significant habitat restoration from 57.4 acres to 56.6 acres.
The PVPLC and the City received $40,000 in mitigation funds from the City of EI Segundo
to restore 9.5 acres in Portuguese Bend to native habitat.The 9.5 acres are outside of the
requested 56.6 acres.
On September 15,2009,the City authorized PVPLC to submit a grant application to the
State of California's Habitat Conservation Fund for trail improvements,removal of spur
trails,and associated habitat restoration in the Portuguese Bend Nature Reserve.The
grant was approved by the State in the amount of $190,500 with a PVPLC-provided match
of $287,246.Funds received from this grant are intended for trail design and construction
and other projects that are not-related to the restoration of the 56.6 acres of critical native
habitat in the burn area.U
The Claim
There is a two-year statute of limitations window within which to file a claim for damages
against SCE.Therefore any such claim needs to be submitted to SCE no later than
August 27,2011.City and PVPLC staff have been working cooperatively to compile the
necessary information and documentation to meet this fast-approaching deadline.
PVPLC staff provided an accounting of costs incurred by PVPLC directly relating to the
fire.PVPLC's submission consists of staff costs and expenses totaling $14,528 for
immediate fire response,post-fire coordination,vegetation clearing,trail closure
signage and other related costs.City staff compiled a list of fire-related costs incurred
by the City totaling approximately $81,000 for staff time,park ranger expenses,geo-
tech review,geographil;information systems (GIS)technical support,maintenance
crew time,and other fire-related expenses.Twenty-four staff,representing all City
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Claim Against Southern California Edison For 2009 Portuguese Bend Fire Damages and Expenses
August 2,2011
Page 3
Departments,worked a combined total of over 270 hours on this incident.Maintenance
crews worked to remove debris,repair damage,and install/repair signage in the burn
area.The newly-contracted Mountain Recreation and Conservancy Authority Park
Rangers worked hundreds of hours to help restrict access to the burned areas during its
temporary closure.Zeisler Kling,the City's geo-technical consultants,performed site
visits and a geotechnical analysis of the site.PVNET provided extensive technical
support including emergency information technology services during the fire incident,
geographic information services (GIS)fire mapping,and coordination of field data with·
other City departments and with the Los Angeles County Fire Department.
The most significant component of the claim is the expected future cost of prime habitat
restoration.The PVPLC generated an estimate of the costs of restoring burned'·
acreage,which was primarily native vegetation that existed before the fire.Based on
an average per acre cost of $22,188 that resulted from two recent PVPLC-managed
habitat restoration projects,the future restoration costs are estimated at $1,255,840.80.
The PVPLC has presented information to Staff that this per acre rate of $22,188 is
significantly lower than industry standard estimates of $40,000 to $50,000 per acre.
Below is a summary of City and PVPLC incurred expenses and estimated costs of
future habitat restoration.
Summary of,2009'IPortuguese Bend Fi~e Cla.il1]lEx~ensesand IDamages
RPV Incurred Exoenses
€ateaol'V Date/sl jl.moun~
Staff Hours 8127109-3130/10 S 57,967.65
Jim Lancaster/Zeisler Kling Geo·Technical Services 913010S-11f.l0l09 S 1.488.75
PV on the NETA3IS Technical Support 8127/0S-7I10 S 9.02125
Mountain Recreation am Conservanqt Authority (MRCA)Park Rangers 12115/Ds-3f.l/10 S 11.326.90
RPV Food Expense 812812009 S 45.70
City MaIntenance Crew (contacted \eooor)8/28/09.9N 109.11/9109 S 1.370.80
RPVTOTAL $_81221.05
PVPLC Incurred Expenses
Cateaorv Date/sl Amount
SlaffHour 91Ds-3110 S 12,48250
ISUoolies,Misc.Exoenses 11/23/Ds-415/10 S 2,046.05
PVPLCTOTAL $14528:55
Future Habitat Restoration
Number of Acres Cost Per Acre Amount
56.6 acres 522.188 S 1.255.840.80
RESTORATION ;rOTAL $1,255,840.80
CLAIM TOTAL $1,351 590.40
City staff and PVPLC representatives met recently to discuss a letter of intent outlining
a plan for the management and disbursement of any claim proceeds.The City Attorney
has recommended that the letter of intent should have the approval of both the PVPLC
Board of Directors and the City Council.The letter of intent was approved by the
PVPLC Board of Directors at its July 27,2011 meeting.The letter states that proceeds
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Claim Against Southern California Edison For 2009 Portuguese Bend Fire Damages and Expenses
August 2,2011
Page 4
from this claim would first be used to reimburse both the City and PVPLC for the actual
costs that were incurred by both entities as a result of the fire.If claim proceeds are
less than actual direct costs incurred,both the City and PVPLC would be reimbursed on
a pro-rated basis.The combined direct costs that were incurred by both the City and
the PVPLC as a result of the fire are $95,749.60.
Any additional proceeds received from SCE beyond that amount would be deposited
into a restricted habitat restoration fund.The intent is for the City to use the restricted
fund to reimburse PVPLC for future actual costs of habitat restoration based upon the
submission of supporting documentation.A separate accounting of any funds received
from this claim will be maintained within the habitat restoration fund.PVPLC's estimate
is that the planned restoration effort will span approximately five years.Any interest
earnings will also be deposited to the restricted fund for future restoration work.
The following is a list of materials staff intends to submit to SCE as part of the claim
packet.
•SCE Claim Form
•SCE Claim Cover Letter
•County of LA Fire Dept.Arson/Fire Investigation Unit Report
•Portuguese Bend Grant Deed(s)(proof of ownership)
•Current City/PVPLC Agreement
•RPV Total Cost Estimates spread sheet
•RPV Spreadsheets for staff time,park rangers,maintenance crews,geotechnical,
GIS,miscellaneous.
•RPV time cards,work incident reports,meeting logs,maintenance records,geo-
technical invoices,miscellaneous receipts,PVNET/GIS invoices,MRCA (Ranger)
invoices
•PVPLC Total Cost Estimate spreadsheet
•PVPLC Timesheets
•PVPLC Invoices for supplies and PVPLC technicians
•Spreadsheet estimating future habitat restoration expense
•Industry Standards for Habitat Restoration
•Letter of Intent Outlining Management/Disbursement of Claim Proceeds
All documentation and materials are in order.If a~proved,staff intends to immediately
submit the claim,well in advance of the August 2t deadline.
ADDITIONAL INFORMATION
2005 Fire
A previous fire in the canyons below Del Cerro Park and San Clemente Drive on July 14,
2005 was also determined by the Los Angeles County Fire Department to be the
responsibility of SCE.1J\(hile this fire was similar in scope to the August 2009 fire,only 17.5
acres of the 179 acres burned were owned by the City.Those 17.5 acres were in the
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Claim Against Southern California Edison For 2009 Portuguese Bend Fire Damages and Expenses
August 2,2011
Page 5
Portuguese Bend Nature Reserve.The City received $35,000 from SCE for re-vegetation
expenses.
FISCAL IMPACT
There is no cost associated with filing this claim other than staff time.Depending on the
amount of the claim proceeds,the City and PVPLC could be reimbursed for all or a portion
of their respective incurred fire-related costs;$81,221.05 for the City,and $14,528.55 for
PVPLC.The City's reimbursement of incurred costs will be deposited into the General
Fund.If claim proceeds are less than actual direct costs incurred,both the City and
PVPLC will be reimbursed on a pro-rated basis.Additional claim proceeds would be
deposited into a restricted account in the Habitat Restoration Fund.
ATIACHMENTS:
City/PVPLC Letter of Intent
City Expense Spreadsheet
PVPLC Expense Spreadsheet
Portuguese Bend Reserve Pre-fire Vegetation Map
SCE Claim Cover Letter
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July 20,2011
CITYOF RANCHO PALOS VERDES
OFFICE OFTHE CITY MANAGER
Mary Ellen Richardson,Interim Executive Director
Palos Verdes Peninsula Land Conservancy
916 Silver Spur Road #207
Rolling Hills Estates,CA 90274
Letter of Intent:Claim Against Southern California Edison
Portuguese Bend Fire,August 27,2009
Dear Ms.Richardson:
Due to the fire on August 27,2009 in the Portuguese Bend Nature Reserve,the
City of Rancho Palos Verdes (City)intends to file a claim with Southern California
Edison (SCE).The County of Los Angeles Fire Department Arson/Fire
Investigative Unit Report 09-189 concluded that the fire was caused by an
electrical or mechanical malfunction of the electrical wiring and/or connector
adjacent to an SCE-owned pole on the south side of Burma Road.
Although there was minimal structural damage from the fire,approximately 180
acres of brush and vegetation were destroyed in the cities of Rancho Palos
Verdes and Rolling Hills.Approximately 165 acres of the total burned area are
part of the Portuguese Bend Reserve section of the Palos Verdes Nature
Preserve.The Portuguese Bend Reserve is owned by the City and managed by
the Palos Verdes Peninsula Land Conservancy (PVPLC).The purpose of the
Preserve is to conserve and restore federally protected critical habitat.
Furthermore,the City is obligated to preserve the existing habitat and restore
non-habitat within the Preserve.The Reserve property that was subject to the
2009 fire contained a significant amount of high value habitat.Of the 165 burned
acres,57.4 acres consisted of critical native habitat before the fire.Significant
habitat restoration is still needed on 56.6 acres of that 57.4 total.See attached
Portuguese Bend Pre-fire vegetation map.There is a two-year statute of
limitations window in which to file a claim for damages against SCE.Therefore
any such claim needs to be submitted by August 27,2011.
City staff requested an accounting from PVPLC of incurred costs relating to the
fire.PVPLC staff submitted staff costs and expenses totaling $14,528 for
immediate fire response,post-fire coordination,vegetation clearing,trail closure
signage and other related costs (exhibit A).City staff also requested from
PVPLC an estimate of the costs of restoring burned acreage which was primarily
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native vegetation.Based on an average cost of two recent PVPLC-managed
restoration projects,the future restoration costs are estimated to approximate
$1,255,840.80 (exhibit A).City staff compiled a list of incurred City costs totaling
about $81,000 for staff time,park ranger expenses,geo-tech review,geographic
information systems (GIS)technical support,maintenance crew time,and other
fire-related expenses.(see attached exhibits A &B).
City Direct Costs:
PVPLC Direct Costs:
Future Estimated Restoration Costs:
Total Claim Amount:
$81,221.05
$14,528.55
$1,255,840.80
$1,351,590.40
The City intends to submit a claim to SCE by August 27,2011 for $1,351,590.40.
The intent is that any and all proceeds from this claim will be used to reimburse
both the City and PVPLC for actual costs incurred.If claim proceeds are less
than actual direct costs incurred,both the City and PVPLC will be reimbursed on
a pro-rate basis.Any additional proceeds will be deposited into a restricted
habitat restoration fund.The City intends to use the restricted fund to reimburse
PVPLC for future actual costs of habitat restoration based upon the submission
of supporting documentation.A separate accounting of any funds received from
this claim will be maintained within the habitat restoration fund.The City's
understanding is that the planned vegetation effort will span approximately five
years.Any interest earnings will also be deposited to the restricted fund for
future restoration efforts.
This letter of intent will be submitted to the PVPLC Board of Directors for
approval at its July 27,2011 meeting.Pursuant to PVPLC approval,the letter of
intent will be submitted to the City Council of Rancho Palos Verdes for approval
on August 2,2011.It is our hope that this letter of intent,designating that any
claim proceeds above the reimbursement of actual costs incurred be deposited
into a restricted habitat restoration fund,will expedite the approval of both
governing bodies in order to meet the submission deadline of August 27,2011.
Sincerely:
~pLOw0J
Carolyn Lehr
City Manager
Attachments:A)City of Rancho Palos Verdes Summary of Fire Claim Expenses
B)PVPLC Summary of Incurred and Future Fire-related Expenses
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CITY OF RANCHO PALOS VERDES PORTUGUESE BEND FIRE SCE CLAIM EXHIBIT A
Summary of Fire Claim Expenses
NalJte/,A;gency/Gategory .[])ate{~)i -,
Amount "J;?e~JliptjQI;l'i ,lDocumentation
"
Timecards Mtg Logs
RPV Staff Hours 8/27/09-3/30/10 $57,967.65 RPV Staff Hours Support 258.75 total Incident Work Reports
Review of notes--,.--
Jim Lancaster/Zeisler Kling Geo,9/30/09-11/30/09 $1,488.75 Geo-Technical Support InvoicesTechnicalServices-.--
PV on the NET/GIS Technical Support 8/27/09·7/10 $9.021.25 Technical SupporVGIS Mapping Invoices
Mountain Recreation and Conservancy 12115/09·3/3/10 $11,326.90 Enforcement of Trail Closures/Signage MRCA Time SheetsAuthority(MRCA)Park Rangers
..-
RPV Food Expense 8/28/2009 $45.70 Food and Drink for RPV staff Receipts--
City Maintenance Crew 8/28109,9/1/09,11/9/09 $1,370.80 Crews assisted PW staff with aftermath of fire invoices/work orders
..RPV'T0liAIL --"$81,221.05
,...-~'I .....
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Costs incurred since Portuguese Bend Fire,September 2009 through March 2010 EXHIBIT B
Name COST Activities Total cost Comments
Staff costs
press,fire seminar,website,posting info for
Olfarnes $2,800.00 residents $2,800.00 Estimate:10 days @$3S/hr
Sarabia $1,512.50 Field oversight $1,512.50 See timesheets for Individual hours;60.5 hrs @$2S/hr
fire response,post-fire response:meetings,
Verdone $5,440.00 evaluation,management $5,440.00 Estimate:20 days @ $34/hr
fire response,press,website,staff and
Vona $390.00 project management $390.00 Estimate:10 hrs @ $39jhr
Technicians $2,340.00 on sight vegetation dearing,trail work $2,340.00 See timesheets for individual hours;156 hrs @$15/hr
Total Staff cost 12,482.50
Total Supplies and contractors (see previous tab for details)2,046,05
ijita:t 't:Os(s /n:¢tte,d l'f;Szg:5S
FUTURE COSTS OF RESTORATING REMAINING BURNED AREA
Area burned (acres)165
Acres of area burned previously
dominated by native vegetation 57.4
Acres of restoration funded by LAG
grant within the 57.4 acres 0.8
Total acres of pre-fire native
vegetation to be restored 56.6
Cost per acre (based on average of White
Cost of restoring native burn area acres Point and LAWA costs;See Table 1 below)Total cost
56.6 $22,188 1,255,840.80
Table 1
cost per
acre with
Cost per water(est Cost per Cost per Average
Total cost (not acre,w/o at acre,no acre with 012
Cost of restoration Acres WCB Grant PVPLC match including water)water cost 3S00/acre irrigation irrigation projects
White Point Nature Preserve 90 1,107,500 45000 1,152,500 12805.556 15805.56 22188.5
LAWA mitigation site 21 28571.43
Industry Standard costs
Nakae Environmental 49350
NewFields Environmental 30-35,000 40-50,000
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8110·Supplies I
I Credit Card Charge 04/05/2010 04-05-10 BH004 -PVNP Managemen Trail marker dec 457.70
I Bill 1211612009 1256001 Target Specialty Products Blazon Blue Col 1.506.65
Total 8110 .Supplies I 1,964.35
8140 .Postage,shipping,delivery
I I
Bill 11123/2009 09-1129R Mail Masters,Inc.ARF mailing 81.70
Total 8140 .Postage,shipping,delivery 81.70
I I I
Total costs/supplies I I 2,046.06
•
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1
0
Acres
165
57.4
0.8
56.6
Burned
Burned Native
LAG funded restoration
Total native burned area to be restored
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1
1
CITYOF
August ,2011
Southern California Edison
Claims Department
P.O.Box 9000
Rosemead,CA 91770
Re:Claim for Damage
Portuguese Bend Fire-8/27/2009
Attn:Southern California Edison Claims Manager:
RANCHO PALOS VERDES
OFFICE OF THE CITY MANAGER
On August 27,2011 the City of Rancho Palos Verdes (City)experienced a significant
fire in the Portuguese Bend Nature Reserve.The County of Los Angeles Fire
Department Arson/Fire Investigative Unit concluded that the fire was caused by an
electrical or mechanical malfunction of the electrical wiring and/or connector adjacent
to an SCE-owned pole on the south side of Burma Road.
Although there was minimal structural damage from the fire,approximately 180 acres
vegetation was destroyed in the cities of Rancho Palos Verdes and Rolling Hills.
Approximately 165 acres of the total burned area are part of the Portuguese Bend
Reserve section of the Palos Verdes Nature Preserve.The Portuguese Bend
Reserve is owned by the City and managed by the Palos Verdes Peninsula Land
Conservancy (PVPLC).The purpose of the Preserve is to conserve and restore
federally protected critical habitat.Furthermore,the City is obligated to preserve the
existing habitat and restore non-habitat within the Preserve.The Reserve property
that was subject to the 2009 fire contained a significant amount of high value habitat.
Of the 165 burned acres,57.4.acres consisted of critical native habitat before the fire.
Significant habitat restoration is still needed on 56.6 acres of that 57.4 total.See
attached Portuguese Bend Pre-fire vegetation map.
This claim consists of two components.The first component is the total of actual,
incurred City and PVPLC staffing costs and expenses related to the fire.The second
component is the estimated future cost to restore the remaining 56.6 acres of critical
native habitat damaged by the fire.
PVPLC staff provided an accounting of costs incurred by PVPLC directly relating to
the fire.PVPLC's submission consists of staff costs and expenses totaling $14,528
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for immediate fire response,post-fire coordination,vegetation clearing,trail closure
signage and other related costs.City staff compiled a list of fire-related costs
incurred by the City totaling $81,221 for staff time,park ranger expenses,geo-tech
review,geographic information systems (GIS)technical support,maintenance crew
time,and other fire-related expenses.
The most significant component of the claim is the future cost of prime habitat
restoration.The PVPLC generated an estimate of the costs of restoring burned
acreage,which was primarily native vegetation that existed before the fire.Based on
an average per acre cost of $22,188 that resulted from two recent PVPLC-managed
habitat restoration projects,the future restoration costs are estimated at
$1,255,840.80.The PVPLC has presented information to Staff that this per acre rate
of $22,188 is significantly lower than industry standard estimates of $40,000 to .
$50,000 per acre.
Below is a summary of City and PVPLC incurred expenses and estimated costs of
future habitat restoration.
,Summary.of~GG9'Per'ttlguese'Bemdl'Fli~e GtI'tml~l!'enses ~tnG lJ)amag.e~....,,
RPV Incurred Expenses
Ie;"teap'j'v,".0'o•.c';;;;'",ll!l.<rtiilsC .,),Iomo,unt,...
.Staff Hours 8I27/0~3130/10 $57,967.65..--.-.~.
Jim Lancaster/Zeisler Kling Geo-Technical SelVices 9/30/0~11130109 $1,488.75...-...'."--..-....._-
PVon the NET,{JIS Technical Support 8I27/0~7/10 $9,02125....
Mountain Recreation and Conservanq-Authority (MRCA)PaI1<Rangers 12J15/0~13/10 $11,326.90
....
RPV Food Expense 8I2Bl2009 $45.70
..,..
City Mainlenance Crew (contacled "'nclorl 8128109,9/1109,11/9109 $1,370.80
RF.'V T0:tAt.5;81.~221.05
PVPLC Incurred Exoenses
C.ate.QolV bate/51 AQlOunt,..,
Staff Hour 9I~3110 $12,482.50
,
SupplieslMisc.Expenses 11/23/0~/5/10 $2,048.05
PVPIbli:T0TAIl.$141528.55''
Future Habitat Restoration
Number of Acres ~ost Per Acre Amount
56.6 acres $22,188 $1,255,840.80.
RESTORA:rION T0;rA\h .:$1,2'5;51114.'0.110'1
~1LA11VI TOTAl $1,5,51','590.40 .
The City is submitting a claim against SCE for $1,351,590.40.Additional
documentation is attached.
Please direct any questions or correspondence regarding this claim to Finance &
Information Technology Senior Administrative Analyst Matt Waters at 310-544-5218
or mattw@rpv,com.~
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Sincerely,
Carolyn Lehr
City of Rancho Palos Verdes
City Manager
Attachments:Claim Form
Portuguese Bend Preserve Pre-fire Vegetation Map
Fire Department Report
City/PVPLC Management Agreement
Spreadsheet estimating future habitat restoration expense
Portuguese Bend Grant Deed
Itemization and Documentation of City and PVPLC Expenses
Cc:Mayor and City Council
City Attorney
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