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CC SR 20210615 L - Local Match Fund Commitment Letter - Hazard Mitigation Grant Program CITY COUNCIL MEETING DATE: 06/15/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to commit matching funds supporting the City’s application for Hazard Mitigation Grant Funding from the Federal Emergency Management Agency (FEMA). RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign letters of matching funds commitment for the Hazard Mitigation Grant Program (HMGP) sub-applications for the two accepted Notice of Interests (NOIs) to California Governor’s Office of Emergency Services (CalOES). FISCAL IMPACT: Submitting the grant applications has no fiscal impact. However, should FEMA approve the HMGP grants, a 25% match, up to $675,000 will be required. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jesse Villalpando, Emergency Services Coordinator REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Local Match Fund Commitment Letters (page A-1) BACKGROUND: The Federal Emergency Management Agency’s (FEMA) Hazard Mitigation Grant Program (HMGP) provides funding to state, local, tribal and territorial governments so they can reduce or mitigate future disaster losses in their communities . When a Federal Disaster Declaration is issued in the State of California, a percentage of dollars are set aside to provide funding for hazard mitigation projects through the HMGP. The federal funding for the HMGP is provided under the authority of the Rob ert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). The HMGP for California is administered through the California Governor's Office of Emergency Services (Cal OES). Cal OES is responsible for identifying HMGP priorities, reviewing applications, and 1 CITYOF RANCHO PALOS VERDES T. v. forwarding recommendation for funding to FEMA, who has the final approval on funding an eligible activity or project. As authorized by the Stafford Act, on August 22, 2020, then-President Trump declared a major disaster for California due to a series of devastating wildfires that began on August 14, 2020. This declaration, numbered DR-4558-CA (DR-4558), authorized funding through the HMGP nationwide, but is prioritizing projects in areas that were affected by these wildfires. DISCUSSION: On May 7, 2021, Staff submitted two Notice of Interests (NOIs) to Cal OES seeking HMGP funds under Disaster# DR-4558. On May 24, 2021, Cal OES notified the City that the two proposed projects are eligible HMGP activities and formally invited the City to submit a full sub-application for consideration of funding. The grant application is due June 18, 2021. The summited proposed HMGP projects are as follows: HMGP #1 – Undergrounding of overhead electrical utility lines located in the Portuguese Bend Nature Reserve: The proposed submitted project is to reduce the risk of wildfire disaster through the undergrounding of overhead electrical utility lines located in the Portuguese Bend Reserve. Overhead electrical wires and associated hardware are vulnerable to damage caused by natural conditions (such as high winds, lightning, and tree growth) and human - caused conditions (such as automobile accidents), creating power outages and, in some cases, igniting a wildfire if severed or broken. Burying power cables, or "undergrounding," protects from wind and fire damage, and is the most comprehensive and effective method of reducing the impact of overhead utility wires and reducing the risk of significant disasters caused by a down or damaged powerline. In addition, should a wildfire disaster take place, the wires would be loc ated underground, and residents would be far less likely to lose essential electric and communications services. HMGP #2 – Goat Vegetation Management Project: The Los Angeles County Fire Code requires the clearance of hazardous vegetation around structures to create “defensible space” in Fire Hazard Severity Zones and High Fire Hazard Severity Zones for effective fire protection of property, life and the environment. Fuel modification reduces the radiant and convective heat and provides valuable defensible space for firefighters to make an effective stand against an approaching fire front. The objective is to remove enough vegetation (fuel) so that when a wildfire burns, it is less severe and can be easier to manage. Historically, the City has addressed the requirement to remove, trim, or thin flammable vegetation in Fuel 2 Modification zones by contracting with third -party vendors to perform fuel modification work at the City's expense. The second proposed mitigation project is for the securing of funding for the continued use of grazing goats to consume hazardous vegetation to reduce the amount or density of fuel available to burn in a wildfire. Since 2008, the City has used goat grazing as a method of fuel modification. In comparison to more conventional methods of fuel modification, grazing performed by goats has proven to be an efficient and cost-effective way of performing fuel modification in areas of steep and difficult terrain that would otherwise be difficult and/or costly to have performed by human -operated machinery. These animals are effective in creating fuel breaks in grass and shrub fuel types and maintaining fuel breaks in grass, shrub, and timber fuel types. Strategically removing vegetation through the use of goats would allow for better defensible space for structures and allow firefighters opportunities to aggressively suppress wildland fire with ground and air resources. Fiscal Impact FEMA’s HMGP is a cost-share program that requires a non-federal match to the funding that is awarded. The current cost-ratio for HMGP grants is 75:25, meaning that the HMGP covers 75% of an approved project’s cost, and if awarded, the City is required to fund 25% of the cost of the project using non-federal sources. The proposed project amounts are as follows: • HMGP #1 - Undergrounding the utility lines located in the Portuguese Bend Reserve: The total project cost submitted is $1.5 million of which, the City’s share would be $375,000. • HMGP #2 – Goat Vegetation Management Project: The total project cost submitted is $1.2 million of which, the City’s share would be $300,000. There would only be a financial impact if FEMA approves the City’s sub-application. If the City received both grants, the City would receive $2,025,000 in grant funds. If this were to occur, the City’s 25% total cost share responsibility would be $675,000. A portion of the required local match could be met through a combination of non-federal funding sources including staff/consultant time dedicated to program management, and donated resources of in-kind materials and services. Local Match Fund Commitment Letter FEMA’s HMGP requires the City to provide a letter affirming that the City will commit 25% of project costs as matching funds to the federal grant (Attachment A). This letter simply tells Cal OES that the City understands there is a 25% commitment and that if the project is approved, the City is willing to contribute that 25% amount of the funding. Should the application be approved, Staff will return to City Council to accept the grant funding and 3 to determine if there are any concerning strings attached . Since grant funds are typically appropriated by the City and reimbursed by the grant source, Staff would also request an appropriation of the grant funds at the same time as requesting acceptance of the grant. The full details of the project scope would be provided at that time. Staff recommends the City Council authorize the Mayor to sign letters of commitment for the HMGP for the two accepted NOIs. This would enable Staff to proceed with submission of the two sub-applications and potentially secure funding for these two wildfire hazard mitigation projects. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not authorize the Mayor to sign the letters of commitment, thereby not authorizing the submittal of the application. 2. Take other action, as deemed appropriate. 4 LOCAL MATCH FUND COMMITMENT LETTER June 15, 2021 California Governor’s Office of Emergency Services Hazard Mitigation Grants Program Unit Attn: HMGP 3650 Schriever Avenue Mather, CA 95655 SUBJECT: DR-4558 Subapplication Funding Match Commitment Letter Dear State Hazard Mitigation Officer: As part of the Hazard Mitigation Grant Program process, a local funding match of at least 25% is required. This letter serves as City of Rancho Palos Verdes’ commitment to meet the local match fund requirements for the Hazard Mitigation Grant Program. PROJECT TITLE: Undergrounding of Power Lines to Prevent Wildfires SOURCE OF NON-FEDERAL FUNDS: LOCAL AGENCY FUNDING OTHER AGENCY FUNDING PRIVATE NON- PROFIT FUNDING STATE AGENCY FUNDING NAME OF FUNDING SOURCE: General Fund FUNDS AVAILABILITY DATE: June 15, 2021 PROVIDE EXACT MONTH/DATE/YEAR OF AVAILABILITY OF FUNDS FEDERAL SHARE AMOUNT REQUESTED: $1,125,000 MUST MATCH $ AMOUNT PROVIDED IN SUBAPPLICATION LOCAL SHARE AMOUNT MATCH: $ 375,000 MUST EQUAL A MINIMUM OF THE 25% FEDERAL SHARE REQUESTED FUNDING TYPE: Combination of cash, agency personnel and donated resources. EXAMPLES: ADMINISTRATION, CASH, CONSULTING FEES, ENGINEERING FEES, FORCE ACCOUNT LABOR, AGENCY PERSONNEL, PROGRAM INCOME, ETC. If additional federal funds are requested, an additional local match fund commitment letter will be required. Please contact Jesse Villalpando, Senior Administrative Analyst at Jvillalpando@rpvca.gov or (310) 544-5209 with any questions. Sincerely, Eric Alegria Mayor, City of Rancho Palos Verdes A-1 ~ □ □ □ LOCAL MATCH FUND COMMITMENT LETTER June 15, 2021 California Governor’s Office of Emergency Services Hazard Mitigation Grants Program Unit Attn: HMGP 3650 Schriever Avenue Mather, CA 95655 SUBJECT: DR-4558 Subapplication Funding Match Commitment Letter Dear State Hazard Mitigation Officer: As part of the Hazard Mitigation Grant Program process, a local funding match of at least 25% is required. This letter serves as City of Rancho Palos Verdes’ commitment to meet the local match fund requirements for the Hazard Mitigation Grant Program. PROJECT TITLE: City of Rancho Palos Verdes Goat Vegetation Management Project SOURCE OF NON-FEDERAL FUNDS: LOCAL AGENCY FUNDING OTHER AGENCY FUNDING PRIVATE NON- PROFIT FUNDING STATE AGENCY FUNDING NAME OF FUNDING SOURCE: General Fund FUNDS AVAILABILITY DATE: June 15, 2021 PROVIDE EXACT MONTH/DATE/YEAR OF AVAILABILITY OF FUNDS FEDERAL SHARE AMOUNT REQUESTED: $900,000 MUST MATCH $ AMOUNT PROVIDED IN SUBAPPLICATION LOCAL SHARE AMOUNT MATCH: $300,000 MUST EQUAL A MINIMUM OF THE 25% FEDERAL SHARE REQUESTED FUNDING TYPE: Combination of cash, agency personnel and donated resources. EXAMPLES: ADMINISTRATION, CASH, CONSULTING FEES, ENGINEERING FEES, FORCE ACCOUNT LABOR, AGENCY PERSONNEL, PROGRAM INCOME, ETC. If additional federal funds are requested, an additional local match fund commitment letter will be required. Please contact Jesse Villalpando, Senior Administrative Analyst at Jvillalpando@rpvca.gov or (310) 544-5209 with any questions. Sincerely, Eric Alegria Mayor, City of Rancho Palos Verdes A-2 ~ □ □ □