Title
Adoption of Resolution Approving Application for Federal Emergency Management Agency Building Resilient Infrastructure and Communities (BRIC) Grant Funds Totaling $55.5 Million Including Matching Funds in the Amount of $1,924,248, If Awarded. (Planning Building and Transportation 10062032)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On February 6, 2024, the Alameda City Council considered a recommendation from City staff and the Oakland Alameda Adaptation Committee (OAAC) for the City of Alameda (City) to apply as the lead agency for the Federal Emergency Management Agency (FEMA) Building Resilient Infrastructure and Communities (BRIC) grant. Per the direction of City Council, the purpose of this staff report is to request City Council approval of a resolution authorizing the FEMA BRIC grant application and to commit to pro-rata matching funds, if the grant is awarded.
BACKGROUND
The OAAC is requesting that the City, as the lead agency, apply for a BRIC grant which advances the currently funded Bay Farm Island Adaptation Project from concept design through construction. The OAAC letter is included as Exhibit 1. On February 6, 2024, City Council directed staff to present the resolution authorizing the FEMA BRIC grant application and to commit to pro-rata matching funds if the grant is awarded: <https://alameda.legistar.com/LegislationDetail.aspx?ID=6496770&GUID=A51D0C85-24C6-4E61-A541-2CAE19C79C65&Options=&Search=&FullText=1>.
DISCUSSION
The BRIC grant is important for the Bay Farm Island Adaptation Project because a major benefit of the project to the City is the removal of the lagoon area of Bay Farm Island from the FEMA 100-year floodplain, which would potentially alleviate these lagoon area property owners from flood insurance requirements. The project will also bring tangential benefits such as protecting the SR-61/Doolittle Drive transportation corridor, closing the gap in the San Francisco Bay Trail (Bay Trail) on Doolittle Drive to create a 17-mile continuous trail, bolstering the Bay Trail along Bay Farm Island’s northern shoreline from erosion and enhancing marsh habitat and access to the San Leandro Bay shoreline.
The BRIC grant application, for the Bay Farm Island/Airport Community Development Resiliency Zone (CDRZ) Project totals $55.5 million and requires a non-federal match of $5.5 million. While the City is the submitting agency for these grants, the non-federal cost is expected to be shared on a pro-rata basis with the City of Oakland and the Port of Oakland. The City share is expected to be $1.9 million or 35 percent of the matching funds required for the project.
There are currently no formal agreements in place with the City’s sub-regional partners regarding sharing of funding, but there is sufficient time between now and when the grant is awarded to formalize OAAC, which could include various governance options. Staff will return to City Council at a later date for direction on the rules governing the City’s relationship with the other agencies, calculations for pro-rata share of the non-federal match, hold harmless and indemnification clauses, and other governance provisions.
At this time, staff recommends City Council approve the attached resolution, which would authorize staff to submit an application for FEMA BRIC grant funds totaling $55.5 million including City matching funds in the amount of $1,924,248, if awarded.
ALTERNATIVES
City Council may consider a number of alternatives, including:
• Adopt the Resolution to apply for the FEMA BRIC grant. This action will allow the Bay Farm Island Adaptation Project to continue the subsequent steps of completing the adaptation design and advancing the project to construction without delay after current funding terminates in 2025. This alternative also leverages existing partnerships and available funding sources and opportunities with the Airport CDRZ for a reduced local match.
• Take no action on the Resolution and the FEMA BRIC grant application will not be submitted. Staff does not recommend this alternative, because to do so would jeopardize this federal funding opportunity as well as existing partnerships including the subregional approach. Staff would need to seek alternate sources of funding for the project, which will likely require a higher non-federal funding contribution and will delay implementation of this important project.
FINANCIAL IMPACT
The BRIC grant, which totals $55.5 million, requires a non-federal match of $5.5 million. While the City is the submitting agency for these grants, the non-federal cost is expected to be shared on a pro-rata basis with the City of Oakland and the Port of Oakland. The City’s share is expected to be $1.9 million or 35 percent of the local match required for the project. The Port of Oakland has agreed to provide up to $2.6 million of the match or 46 percent. The City of Oakland is requesting Oakland City Council approval for their share of the match totaling $1 million or 19 percent on February 20, 2024.
|
BRIC Construction Costs |
% Share |
Amount |
|
Total Construction Cost |
100% |
$41,700,000 |
|
1. Doolittle Drive / SR-61 / SF Bay Trail |
42% |
$17,648,300 |
|
2. Northern Shoreline (Bay Farm Island) |
18% |
$7,357,000 |
|
3. Veterans Court (Bay Farm Island) |
6% |
$2,486,400 |
|
4. Columbian Gardens Stormwater Flooding (East Oakland Equity Priority Community) |
19% |
$7,896,700 |
|
5. BFI Lagoon (Bay Farm Island) |
11% |
$4,611,600 |
|
6. Tidal Marsh Enhancement |
4% |
$1,700,000 |
|
Design, Environmental, Permitting & Mgmt. |
$13,811,000 |
|
Total project cost |
$55,511,000 |
|
Non-Federal Pro Rata Share (10%) |
% Share |
Amount |
|
Port (#1 and #6) - Match commitment letter provided |
46% |
$2,575,644 |
|
Oakland (#4) - City Council meeting on Feb 20 |
19% |
$1,051,208 |
|
Alameda (#2, #3, #5) |
35% |
$1,924,248 |
|
Total |
100% |
$5,551,100 |
The City’s pro-rata share is anticipated to come from state, regional and local funding sources not yet identified. However, staff believes the project will be competitive for state and regional transportation and other funding due to the project’s ties to SR-61/Doolittle Drive, the priority gap closure segment of the Bay Trail along SR-61/Doolittle Drive as well as Bay Farm Island’s northern shoreline that bolsters the Bay Trail. It is anticipated that the City will have three years to identify and secure the majority of the necessary funds for the pro-rata share since construction is expected to begin in 2028.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed actions described in this report are consistent with CARP (2019), the Climate Adaptation and Hazard Mitigation Plan (2022) and 2040 General Plan (2022), in particular:
General Plan Policy HS-16 Funding and Partnerships. Develop partnerships with local, regional, and state agencies to expedite adaptation projects and ensure a healthy watershed that protects and restores water quality, habitat and community vitality along San Leandro Bay and the Oakland-Alameda Estuary.
ENVIRONMENTAL REVIEW
These actions do not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required. Further environmental review will be conducted for the individual resilience projects upon completion of infrastructure design work.
CLIMATE IMPACT
The project will improve the resiliency to the impacts of climate change as described earlier in this report.
RECOMMENDATION
Adopt a resolution approving application for FEMA BRIC grant funds totaling $55.5 million including matching funds in the amount of $1,924,248, if awarded.
Respectfully submitted,
Allen Tai, Director of Planning, Building and Transportation
By,
Danielle Mieler, Sustainability and Resilience Manager
Gail Payne, Project Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. OAAC Letter to City Council
2. BRIC Technical Report