Title
Department of Transportation recommending the Board take the following actions related to the Fire Hazard Mitigation Project, Capital Improvement Program project number 36106003:
1) Accept $2,055,321.75 in grant funds from the Federal Emergency Management Agency’s Hazard Mitigation Grant Program;
2) Adopt the project into the 2022 Capital Improvement Program; and
3) Approve a budget transfer of $320,636 to cover the anticipated work on the Project in Fiscal Year 22/23 (4/5 vote required).
FUNDING: Federal Emergency Management Agency’s Hazard Mitigation Grant Program Funds (68.7% Federal) and El Dorado County General Fund/Designated Reserves (22.9%), and Regional Surface Transportation Program (8.3%).
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DISCUSSION / BACKGROUND
The United States Department of Homeland Security’s Federal Emergency Management Agency (FEMA) provides grant funding through its Hazard Mitigation Grant Program (HMGP) for projects that reduce the impacts from natural disasters, including wildfire. The State of California Governor’s Office of Emergency Services (CalOES) is California's administrator for FEMA’s HMGP funding.
On March 23, 2021 (Legistar 21-0465, Item 31), the Board authorized the Department of Transportation (Transportation) to submit an application for a Hazardous Fuels Reduction Project (Project) to remove vegetation along selected roads within the El Dorado County road network and directed that matching funds for the grant would be allocated from the $1.65 million General Fund set-aside.
On February 01, 2022 (Legistar 22-0043, Item 12), the Board authorized Transportation to submit an amended application that expanded the scope of work to include vegetation removal along additional roads.
Transportation estimates a total project cost of $2,740,429. Phase 1 of the project consists of National Environmental Policy Act (NEPA) review, right of way acquisition, and finalizing contract documents. Phase 2 of the project includes project advertisement, accept bids, award contract, removal of vegetation and trees, and project closeout. Transportation anticipates completing Phase 1 in FY 22/23 and completing Phase 2 in FY 23/24.
Transportation has received notification from FEMA that $139,000 is obligated for Phase 1 of the project. It is anticipated that the funds for Phase 2 will be approved in early 2023. Transportation recommends that the Board adopt the Project into the 2022 CIP Book and approve a budget transfer adjusting the FY 22/23 budget. A budget transfer is necessary because the project was not included in the FY 22/23 budget. Transportation expects to spend $100,000 on the Project in FY 22/23. The proposed budget transfer would increase the Capital Improvement Program budgeted appropriations for FY 22/23 for professional services by $100,000. To cover these appropriations, the proposed budget transfer would increase the budgeted revenues for Federal FEMA by $39,682, add an operating transfer from the general fund of $13,228 to cover the 25% County match, and add an operating transfer from the Regional Surface Transportation Program special revenue fund equal to $47,090 to cover the indirect labor cost.
ALTERNATIVES
The Board could choose not to accept this grant and forfeit $2,055,321.75 of grant funding.
PRIOR BOARD ACTION
See Discussion/Background section above
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Community Development Finance and Administration
CAO RECOMMENDATION / COMMENTS
Approve staff recommendation.
FINANCIAL IMPACT
Transportation estimates a total project cost of $2,740,429. The grant requires a 25% match, and on March 23, 2021 (Legistar 21-0465, Item 31) the Board provided direction that the General Fund would provide the matching funds of $685,107.25. Additionally, there are approximately $228,000 in indirect costs that are not eligible for reimbursement under the grant terms, which the Regional Surface Transportation Program match will cover.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation