To: Sonoma County Board of Supervisors
Department or Agency Name(s): Permit Sonoma
Staff Name and Phone Number: John Mack (707) 565-1233
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
FEMA Building Resilient Infrastructure and Communities Phase 1 Grant Acceptance
End
Recommended Action:
Recommended action
A) Adopt a resolution authorizing the Director of Permit Sonoma to accept a $5,727,692 sub‐grant award from the Federal Emergency Management Agency’s Building Resilient Infrastructure and Communities program for Phase 1 of the project titled “Wildfire Resilient Sonoma County: Nature-based Mitigation to Adapt in an Era of Megafire”.
B) Authorize the transfer of $12.5M in available 2017 PG&E Settlement Funds to the Reserved Purposes Fund for the County’s grant match requirement for the full grant award.
(4/5th Vote Required)
end
Executive Summary:
Staff recommends accepting the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities (BRIC) program sub-grant award (Project No. 2020-001-0260) in the amount of $5,727,692 for Phase 1 of the project titled “Wildfire Resilient Sonoma County: Nature-Based Mitigation to Adapt in an Era of Megafire” (“WRSC Project,” or “the Project”), administered by the California Governor’s Office of Emergency Services.
The WRSC Project is a two phased project and will allow the County to develop whole-community, landscape-scale approaches to reduce wildfire risk by deploying structure hardening, defensible space, and vegetation management actions in three model representative Sonoma County communities and landscapes with the overall goal of learning how to reduce risk for the whole community of catastrophic loss of life and property due to wildfire, while promoting overall landscape resilience and health.
Phase 1 activities will include public engagement, education, and stakeholder coordination; defensible space assessments of private properties; voluntary opt-in structural hardening assessments for private properties; planning and design for a subsequent rebate program to incentivize homeowners to do defensible space and structure hardening actions; site identification for environmentally-appropriate vegetation management projects; and all required environmental and historic preservation review for selected projects. Phase 2 of the Project will implement the rebate program for defensible space and structure hardening activities on private property, as well as the selected vegetation management projects.
The Federal award for Phase 1 includes 75% of direct project costs of $5,367,772 plus up to $359,920 for a separate Sub-Recipient Management Cost (SRMC) award for grant management and indirect costs, for a total award of $5,727,692. The local match required is $1,830,624, funded with available 2017 PG&E Settlement Funds, for a total Phase 1 approved project budget of $7,558,316. The approved Phase 1 budget accounts for reimbursable project costs only and does not cover indirect costs above and beyond the SRMC award amount. Upon completion of Phase 1, the County will be eligible for the Phase 2 funds in the amount of $41.2 million for implementation of the projects defined during Phase 1. The total Phase 1 and Phase 2 project budget is $48.8 million. The grant requires a 25% match from the grant sub-recipients, which is the County of Sonoma. $12.5M is available within the 2017 PG&E Settlement fund for this purpose. With this Board action, these funds will be transferred to the Reserved Purposes fund within the Non-Departmental fund, where they will be tracked and used expressly as the match for this grant. Match amounts will be transferred to Permit Sonoma based on actuals each fiscal year.
Discussion:
Background
Since 2018, Permit Sonoma has been seeking and obtaining grant funding through the Federal Emergency Management Agency’s (FEMA) Hazard Mitigation Grant Program (HMGP) to improve conditions throughout Sonoma County that result in wildfire resiliency. Awarded grant projects have included:
1. Two major plan revisions and updates (the 2021 Sonoma County Multi-Jurisdictional Hazard Mitigation Plan, and the forthcoming 2023 Sonoma County Community Wildfire Protection Plan Update).
2. Structure resiliency through defensible space and structure hardening assessments and improvements for private properties (two Wildfire Adapted Sonoma County <https://permitsonoma.org/socoadapts> HMGP grants, approximately $9.3 million project budget between both).
3. Large-scale vegetation management around communities and critical infrastructure (Hazardous Fuels Reduction HMGP grant <https://permitsonoma.org/hazfuelsreduction>, $6 million project budget).
The two Wildfire Adapted Sonoma County HMGP grants and the Hazardous Fuels Reduction HMGP grant are all two-phased projects with Phase 1 being delivered by early 2024. Phase 1 of these projects focuses on private property defensible space and home hardening assessments, site evaluations for environmentally appropriate vegetation management, program development, and environmental review. Phase 2 represents the on-the ground implementation of each grant project. Phase 2 of these HMGP grants is expected to begin in mid to late 2024, dependent on FEMA’s environmental review timeline and their release of Phase 2 funding.
In fall 2020, FEMA announced it had received $500 million in funding for the new Building Resilient Infrastructure and Communities (BRIC) grant program. The County submitted an application on December 15, 2020, for an approximately $50 million two-phased project titled “Wildfire Resilient Sonoma County: Nature-Based Mitigation to Adapt in an Era of Megafire” (“WRSC Project,” or “the Project”). In June 2021, the President of the United States announced that Sonoma County would be awarded this project, and in November 2022, the California Governor’s Office of Emergency Services (Cal OES) notified Sonoma County that FEMA had awarded Phase 1 of the Project. The Phase 1 award is for $5,727,692.11 in federal funds with a local match of $1,830,624.2.
The WRSC Project will develop an approach that moves beyond the ad hoc deployment of discrete home hardening, defensible space, and vegetation management and instead deploy them at the scale of whole communities and the natural landscapes they are embedded in. The long-term, “generational change” goal is to eventually make all the County’s major population centers wildfire resilient. The overall approach for how the FEMA grant projects build into a long-term wildfire resiliency program is discussed in Attachment 4, and the WRSC Project scope of work is in Attachment 6.
Funding limitations and requirements in the BRIC program required selection of three high fire risk Sonoma County communities, landscapes, and ecotypes for the WRSC Project: Guernewood-Guerneville-Rio Nido (west County redwood/fir forested landscape); Larkfield-Wikiup/Mark West Creek (east County oak woodlands and mountains); and Penngrove/Sonoma Mountain (south County grasslands and woodlands). Please see Attachments 3 and 4 for maps and detailed descriptions of the Project and the three project areas, and Attachment 6 for the Project scope of work. These project areas overlap with four out of five supervisorial districts and the Larkfield-Wikiup/Mark-West Creek project area is strongly associated with northeast Santa Rosa although it does not overlap with City boundaries. Note that the County’s other HMGP grants include many other communities in west, northwest, northeast, east and southeast Sonoma County, including Boyes Hot Springs. These other projects include on-going defensible space, structure hardening, and vegetation management project planning activities (see Attachment 2).
Coordination with other Plans, Programs, Departments, and Agencies
On May 9, 2023, your Board will receive the 2023 Update to the Sonoma County Community Wildfire Protection Plan (SC CWPP) as an Item of Significant Interest. The collaborative planning process for the SC CWPP identified 15 priorities for wildfire risk reduction in Sonoma County. The WRSC Project addresses nearly all 15 priorities, which underscores that this project is the culmination of an integrated approach to risk reduction and meets our community’s identified interests.
In addition, Permit Sonoma regularly coordinates its FEMA grant projects with the County’s Vegetation Management Grant Program (VMGP) and its associated Technical Advisory Committee (TAC) that is being implemented by the Sonoma County Agricultural Preservation and Open Space District (Ag + Open Space). Permit Sonoma also provides environmental review support and guidance to the VMGP. Permit Sonoma works closely with local fire districts and CAL FIRE for project selection of vegetation management projects under its FEMA grants.
Finally, the implementation of Permit Sonoma’s FEMA grant projects will be fully coordinated with any future County organizational efforts related to wildfire resiliency. In January 2023 Ag+ Open Space, Permit Sonoma, Sonoma Water, County Administrators Office’s Climate Action and Resiliency Division, and County Counsel's Office proposed organizational structure options that would serve as an intermediate step and inform whether a new, stand-alone wildfire resiliency entity should be formed. A Resiliency Coordination Team (RCT) comprised of County department and agency heads and their designees would provide a coordination forum and hub for all County resiliency efforts and oversee several technical advisory committees focused on vegetation management, defensible space/structure hardening, organizational structure/funding, and the Climate Action Land Strategy.
Source of Funding
Funding for the Project is from the FEMA BRIC program, which is administered by Cal OES. Sonoma County is the “subrecipient” and Cal OES is the “recipient” of the federal funding. The performance period for Phase 1 ends on April 14, 2025, unless an extension is duly granted. The total Phase 1 approved project budget is $7,558,316. The awarded federal share for Phase 1 is $5,727,692, which is comprised of $5,367,772 for direct project costs and up to $359,919 for a separate Sub-Recipient Management Cost (SRMC) award for grant management and indirect costs. The $359,919 SRMC award is provided at 100% with no local match required. The local match for the direct project costs is $1,830,624, funded with available 2017 PG&E Settlement Funds.
Indirect costs related to the WRSC Project are not eligible for the direct project cost reimbursement, and grant management costs are only reimbursable against the $359,919 SRMC award (See FEMA Policy 104-11-1, “FEMA Frequently Asked Questions: Hazard Mitigation Grant Program Management Costs Policy (Interim),” and FEMA Hazard Mitigation Assistance Guidance 2015 <https://www.fema.gov/sites/default/files/2020-04/HMA_Guidance_FY15.pdf>). Further, the FEMA guidelines for the BRIC program state that the County cannot use its local matching funds to cover any grant management or indirect costs that exceed the $359,919 SRMC allocation, because the local matching funds are only applicable to eligible direct project costs (See the list of eligible “project” versus “management” cost activities identified in the FEMA Hazard Mitigation Assistance Guidance 2015 <https://www.fema.gov/sites/default/files/2020-04/HMA_Guidance_FY15.pdf>).
The budget for the subsequent implementation phase (Phase 2) is currently estimated to be $41.2 million. However, the final Phase 2 budget amount is determined at the end of Phase 1. Should Phase 1 determine that a different Phase 2 project budget is required, the Phase 2 scope will be modified as necessary to keep the project cost-beneficial and within the maximum allowed BRIC award amount. The Phase 2 SRMC award for grant management and indirect costs will be at least $1,157,520, and could be greater depending on the final Phase 2 budget.
Project Staffing and Funding Needs
Phase 1 and 2 of the WRSC Project will require additional staffing support to successfully implement the project in the time outlined. Permit Sonoma was allocated 8.0 time-limited full time equivalent positions on May 3, 2022 until May 3, 2025. However, those positions are fully dedicated to the active FEMA HMGP grants. It is expected that these positions will be able to redirect up to 50% of their time to the WRSC Project in 2024, but will not be able to fully staff the project alone. This is because three of the awarded FEMA HMGP projects are also two-phased projects, with Phase 1 ending in early 2024 and Phase 2 beginning in 2024 and continuing for multiple years.
Therefore, Permit Sonoma has worked with the County Administrator’s Office and Human Resources to analyze the minimum amount of staff resources necessary to implement the WRSC Project, resulting in a request for 6.0 additional full-time, four-year, time-limited positions. There is a one-time funding gap of approximately $406,400 for grant management and indirect costs during Phase 1 of the WRSC Project. This funding gap includes costs for accounting staff time and audit support, one-time computer, communications, and training costs, plus allocated internal service and department-wide costs for FY23-24 and FY24-25 and are in excess of the $359,920 SRMC award for Phase 1.
Permit Sonoma will bring forward a Program Change Request during FY 2023-24 Budget Hearings for the 6.0 new time-limited positions, including a one-time funding request of $406,400 for Phase 1 indirect costs in excess of the SRMC award, for the Board’s consideration.
Staff anticipates the Phase 2 SRMC award will be sufficient to cover the estimated indirect costs for the 6.0 new positions because the allocation will be larger and a higher proportion of Phase 2 costs are for contracts versus staff, reducing the amount of indirect costs for staff labor.
Environmental Review
Acceptance of the Phase 1 WRSC Project is exempt from CEQA pursuant to the CEQA Guidelines at California Code of Regulations, Title 14, Sections 15262, which exempts feasibility and planning studies for possible future actions from the requirement to prepare an Environmental Impact Report (EIR) or negative declaration, and 15306, which exempts from CEQA basic data collection, research, and resource evaluation activities that will not disturb environmental resources. The proposed project consists of planning activities, feasibility research and analysis, and the development of recommendations for potential future action, none of which will impact environmental resources. Acceptance of and performance under the grant does not commit the County to any course of action. By evaluating implementation plans for wildfire resilience in the selected communities, the County does not foreclose potential alternatives, including electing to not move forward with Phase 2 BRIC grant funding, which is also contingent on FEMA approval.
Part of the Phase 1 tasks for the WRSC Project are to collect information or perform studies and assessments such that FEMA can determine if its requirements under NEPA are satisfied before awarding Phase 2. Phase 1 activities are prohibited by the grant guidelines from conducting ground-disturbing activities. Prior to committing to any activities under Phase 2 the County will comply with CEQA, as required. Permit Sonoma and Counsel’s Office are actively coordinating to identify CEQA pathways for the Project’s areas and activities, including the use of the CALFIRE Vegetation Treatment Program procedures.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Climate Action and Resiliency
Goal: Goal 1: Continue to invest in wildfire preparedness and resiliency strategies
Objective: Objective 2: Expand outreach and education on vegetation management and provide additional resources to land owners to help mitigate fire risk.
Prior Board Actions:
February 2, 2018: Authorization by the Board of Supervisors for multiple departments, including Permit Sonoma, to apply for FEMA HMGP funds.
September 24, 2019: Authorization to accept two grant awards from FEMA HMGP for the “Sonoma County Multi-Jurisdictional Hazard Mitigation Plan,” and the “Sonoma County Community Wildfire Protection Plan,” administered by CalOES.
April 21, 2020: Authorization to accept the grant award from FEMA HMGP for “Advance Assistance: Wildfire Adapted Sonoma County Part 1, Phase 1,” administered by CalOES.
Adopted resolution designating the Authorized Agents for CalOES and FEMA grants for up to the next three years.
December 14, 2021: Authorization to accept the grant award from FEMA HMGP for the “Sonoma County Hazardous Fuels Reduction Project,” administered by CalOES.
May 3, 2022: Authorization to accept the grant award from FEMA HMGP for “Wildfire Adapted Sonoma County Part 2, Phase 1,” administered by CalOES.
Adopted resolution to extend the term of three (3.0) existing time-limited allocations and add five (5.0) new time-limited full time equivalent positions through May 3, 2025 to support and execute federal grant award requirements.
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
|
$3,779,158 |
$3,779,158 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
$0 |
$3,779,158 |
$3,779,158 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
$2,863,846 |
$2,863,846 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
$915,312 |
$915,312 |
|
Contingencies |
|
|
|
|
Total Sources |
$0 |
$3,779,158 |
$3,779,158 |
Narrative Explanation of Fiscal Impacts:
The grant award consists of $5,727,692 in awarded federal funds, with a local match commitment of $1,830,624, for total costs of $7,558,316 to implement Phase 1 of the Project. $12,500,000 of 2017 PG&E Settlement Funds is available as a match for the full grant award (Phase 1 and Phase 2). Those funds will be moved to the Reserved Purposes Fund within Non-Departmental as part of the FY 2022-23 Q3 Consolidated Budget Adjustments. Grant match amounts will be transferred to Permit Sonoma each fiscal year during year end close of books, based on actuals, as needed.
Narrative Explanation of Staffing Impacts (If Required):
There will be no impacts to current staff for this Board action. Six new time-limited full-time positions will be proposed during FY23-24 Budget Hearings to implement the WRSC Project.
Attachments:
Attachment 1: Approval Letter from Cal OES and FEMA
Attachment 2: Map of All Project Areas for Current HMGP Grants and WRSC BRIC Grant
Attachment 3: BRIC Project Areas and Metrics
Attachment 4: White Paper: Overall Wildfire Resiliency Program Development Approach Using FEMA Grants
Attachment 5: Board of Supervisors Resolution to Accept Award
Attachment 6: WRSC BRIC Phase 1 Scope of Work
Related Items “On File” with the Clerk of the Board:
Grant Application to CalOES for the “Wildfire Resilient Sonoma County” Project