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CC SR 20221115 I - BRIC Local Match Fund Commitment Letter CITY COUNCIL MEETING DATE: 11/15/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to commit matching funds supporting the City’s two applications for Building Resilient Infrastructure and Communities (BRIC) Grant Funding from the Federal Emergency Management Agency (FEMA). RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign two commitment letters of matching funds for the BRIC sub-applications to the California Governor’s Office of Emergency Services (CalOES) for the Portuguese Bend Landslide Infrastructure and Community Resiliency Project and the Power Line Undergrounding Fire Mitigation Utility Protection Project FISCAL IMPACT: Submitting the grant applications has no fiscal impact. However, should FEMA award the BRIC grants, a 25% (30% for the Portuguese Bend Landslide Infrastructure and Community Resiliency Project) match of up to a combined $13,750,000 may be required that may be partially or fully funded by the Capital Improvement Program Fund depending on state and county funding opportunities. 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: FEMA’s BRIC grant program provides funding to state, local, tribal and territorial governments to 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 1 is set aside to provide funding for hazard mitigation projects through BRIC. The federal funding for BRIC is provided under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). The BRIC program for California is administered through Cal OES who is responsible for identifying BRIC project priorities, reviewing applications, and forwarding recommendations for funding to FEMA, which has the final approval on funding an eligible activity or project. On September 15, 2022, the City submitted a Notice of Interest (NOI) to Cal OES seeking BRIC funds for two projects. The first NOI focuses on securing funding for the Portuguese Bend Landslide Remediation Project (referred to as the Portuguese Bend Landslide Infrastructure and Community Resiliency Project in the grant application), which includes a series of recommended mitigation measures to remediate the landslide. The second NOI addressed undergrounding of power lines within and adjacent to the City's open space areas with the intent to mitigate the threat of a fire hazard resulting from downed electrical power lines. Cal OES recently notified Staff that the City’s NOIs for the two proposed projects are eligible BRIC activities and formally invited the City to submit a full sub-application for consideration of funding. The grant application is due December 2, 2022, which includes letters from the lead agency committing to the required matching fund using non-federal dollars. The City Council is being asked this evening to authorize the Mayor to sign the required commitment letters of matching funds. DISCUSSION: The proposed BRIC projects are as follows: Portuguese Bend Landslide Infrastructure and Community Resiliency Project The Portuguese Bend Landslide Remediation Project will minimize land movement by reducing surface water entering the landslide through filling fissures , re-establishing defined runoff paths to convey storm water to the ocean via drainage swales, and by removing ground water using hydraugers. The project will, among other things, lower annual roadway repair costs on Palos Verdes Drive South, protect the integrity of the sewer trunk lines that cross the landslide, improve conditions for the many homeowners in the area, minimize fragmented and on-going disturbance to protected habitat, and provide many other benefits to the community and natural environment. Power Line Undergrounding Fire Mitigation Utility Protection Project The utility undergrounding project is intended to reduce the threat of a fire hazard caused by downed utility lines within the City's open space areas. Overhead electrical wires are vulnerable to damage caused by natural conditions (such as high winds, lightning, and human-caused conditions), resulting in power outages and the potential to ignite a wildfire if severed or broken. Undergrounding protects overhead utility lines from wind and fire damage and is the most comprehensive and effective method of reducing the risk of a significant fire caused by downed or damaged powerlines. Undergrounding utility lines is an action item in the City's Hazard Mitigation Plan and contributes to the plan's goal of "Protection of Life and Property. ” 2 BRIC Matching Fund Requirement FEMA’s BRIC program is a cost-share program that requires a non-federal match to the funding that is awarded. The current cost-ratio for BRIC grants is 75:25, meaning that the BRIC program covers 75% of an approved project’s cost, and if awarded, the City is required to fund a minimum of 25% of the cost of the project using non-federal sources. To ensure the city's competitiveness in the grant application process, it is recommended that a 30% match rather than a 25% match be made for the Portuguese Bend Landslide Infrastructure and Community Resiliency Project, as this will earn the city additional qualification points for the FEMA BRIC grant program. The proposed project amounts are as follows: • Portuguese Bend Landslide Infrastructure and Community Resiliency Project o The total project cost submitted is $33 million, of which the City’s share (30%) would be $10 million • Power Line Undergrounding Fire Mitigation Utility Protection Project o The total project cost submitted is $15 million, of which the City’s share (25%) would be $3.75 million. A non-federal match requirement will apply to the City only if FEMA approves the City's sub-application. If the City receives both grants, the City would receive $34.25 million in grant funds. If this were to occur, the City’s tota l grant matching cost-share responsibility would be $13.75 million. It is important to note that a significant portion of the required local match could be met through a combination of non-federal funding sources, including state and county funding, staff/consultant time dedicated to program management, and donated resources of in-kind materials and services to name a few. Local Match Fund Commitment Letters FEMA’s BRIC program requires the City to provide a letter affirming that the City will commit a minimum of 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 minimum 25% commitment and that if the project is approved, the City is willing to contribute that matching amount of the funding (including in-kind materials and services). Should the application be approved, Staff will return to t he City Council to accept the grant funds and 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. 3 CONCLUSION: Staff recommends the City Council authorize the Mayor to sign letters of commitment for the BRIC federal funding 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 one or both of the attached letters of commitment, thereby not authorizing the submittal of the sub -applications. 2. Take other action, as deemed appropriate. 4 November 15, 2022 California State Hazard Mitigation Officer California Governor’s Office of Emergency Services 3650 Schriever Avenue Mather, California 95655 SUBJECT: BRIC 2022 - Portuguese Bend Landslide Infrastructure and Community Resiliency Project Match Commitment Letter Dear Ms. Jennifer Hogan, This letter serves as the City of Rancho Palos Verdes’ commitment to meet the non -federal cost share requirement of the Building Resilient Infrastructure and Communities (BRIC) program for the Portuguese Bend Landslide Infrastructure and Community Resiliency Project. Source of Local Match Commitment Funds: Local Agency Funding ☒ Other Agency Funding ☐ Private Nonprofit Funding ☐ State Agency Funding ☐ Name of non-federal match commitment funding sources: Capital Improvement Program (CIP) Fund and/or any other Governmental Funds as approved by the City Council. Funds Availability Date: December 2, 2022 Requested Federal Share: $23,000,000 Non-federal Match Commitment: $10,000,000 Funding Type Combination of cash, agency personnel and donated resources. 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, David L. Bradley Mayor, City of Rancho Palos Verdes A-1 November 15, 2022 California State Hazard Mitigation Officer California Governor’s Office of Emergency Services 3650 Schriever Avenue Mather, California 95655 SUBJECT: BRIC 2022: Rancho Palos Verdes Power Line Undergrounding Fire Mitigation Utility Protection Project Dear Ms. Jennifer Hogan, This letter serves as the City of Rancho Palos Verdes’ commitment to meet the non -federal cost share requirement of the Building Resilient Infrastructure and Communities (BRIC) program for the Rancho Palos Verdes Power Line Undergrounding Fire Mitigation Utility Protection Project. Source of Local Match Commitment Funds: Local Agency Funding ☒ Other Agency Funding ☐ Private Nonprofit Funding ☐ State Agency Funding ☐ Name of non-federal match commitment funding sources: Capital Improvement Program (CIP) Fund and/or any other Governmental Funds as approved by the City Council. Funds Availability Date: December 2, 2022 Requested Federal Share: $11,250,000 Non-federal Match Commitment: $3,750,000 Funding Type Combination of cash, agency personnel and donated resources. 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, David L. Bradley Mayor, City of Rancho Palos Verdes A-2