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Recommendation to Accept a Status Report and Hold a Work Session on the City of Alameda’s Sub-Regional Adaptation Planning, including Consideration of the City of Alameda, Acting as Lead Agency, to Apply for a Federal Emergency Management Agency Building Resilient Infrastructure and Communities Grant of $55 Million for Sea Level Rise Adaptation Planning and Implementation on Behalf of the Oakland Alameda Adaptation Committee. (Planning Building and Transportation 10062032)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Consistent with City Council direction, the City of Alameda (City) has been leading the Oakland Alameda Adaptation Committee (OAAC) to plan for sea level rise adaptation in the Oakland-Alameda subregion since 2021. OAAC has been working on three adaptation planning efforts benefiting the Cities of Alameda and Oakland (Sub-regional Adaptation Plans). These planning efforts are currently studying and developing recommendations for consideration by the OAAC and City on important design and implementation issues, such as a specific scope of improvements, cost estimates, near- and long-term funding, phasing and staffing plans, and a governance structure for long-term management of these projects.
The grant funding for this early phase of sea level rise planning and design expires in 2025 and significant funding will be required to continue the subsequent steps of completing the adaptation design and advancing the Sub-regional Adaptation Plans to construction in 2025 and beyond. As a result, OAAC is seeking grants now to ensure funding availability in 2025 and beyond. Currently, the City, on behalf of OAAC, is preparing an application for the current Federal Emergency Management Agency (FEMA) Building Resilient Infrastructure and Communities (BRIC) grant funding cycle with a deadline of February 27, 2024. City staff, along with OAAC, are recommending that the City, acting as lead agency, apply for the grant for a total cost of $55 million to fund the next phases of one of the Sub-regional Adaptation Plans, which would provide flood protection improvements in and around the Bay Farm Island and State Route 61 (SR-61)/Doolittle Drive areas (Exhibit 1). The Port of Oakland (Port) has already made a financial commitment for their portion of the required grant match and the City of Oakland will be requesting City Council approval at their February 20, 2024 City Council meeting.
The intent of this evening’s work session is:
(1) to provide an update to the City Council on the status of the Sub-regional Adaptation Plans, including an outline of important milestones, timelines, and Council decision points on key issues over the next two years, such as a detailed project scope and approach to governance; and
(2) to seek City Council direction on staff’s and OAAC’s recommendation to apply for the BRIC grant before the Sub-regional Adaptation Plans are complete to capitalize on a time-sensitive funding opportunity.
If the City Council provides direction to staff to submit the BRIC grant application, staff will return at the February 20, 2024 meeting to request formal approval of a resolution authorizing the BRIC grant application and the City issuing a match commitment letter in the amount of $1.9 million. Additionally, staff recommends that the City continue to act as lead agency for this grant application given that the City is responsible for managing the existing grant funds.
BACKGROUND
In 2019, City Council adopted the Climate Action and Resiliency Plan (CARP), which outlines an interagency collaborative approach to prepare for sea level rise and address priority flooding locations, such as flooding on Bay Farm Island that is hydraulically connected to the SR-61/Doolittle Drive Oakland Airport area and parts of Oakland.
In 2021, the OAAC was formed by an interagency collaboration between the City, the Port, City of Oakland (Oakland), California Department of Transportation (Caltrans), East Bay Regional Park District (EBRPD), San Francisco Bay Regional Water Quality Control Board, community-based organizations (Community Partners) and other key stakeholders to plan for sea level rise adaptation in the Oakland-Alameda subregion. The City is leading this coalition in part because it needs to leverage broader interagency resources to aid its own significant adaptation planning needs. Danielle Mieler, the City’s Sustainability and Resilience Manager, serves as OAAC’s Co-Chair with Marquita Price of East Oakland Hood Planning Group, one of the project’s Community Partners.
In 2022, City Council adopted the Climate Adaptation and Hazard Mitigation Plan, and through a series of budget actions and grant authorizations, enabled funding to support OAAC’s work on the early phase of sea level rise planning and project development. Currently, OAAC is working on the Sub-regional Adaptation Plans, three adaptation planning efforts benefiting the Cities of Alameda and Oakland. These planning efforts are currently studying and developing recommendations for consideration by the OAAC and City on important design and implementation issues, such as a specific scope of improvements, cost estimates, near- and long-term funding, phasing and staffing plans, and a governance structure for long-term management of these projects.
By the end of 2025, the early stage planning and project scoping tasks will be complete for the Bay Farm Island Adaptation Project, but the subsequent steps of designing the adaptation infrastructure and construction details will require significant funding. To ensure funding availability in 2025 and to complete design and construction, OAAC has identified the BRIC grant as an excellent opportunity for funding with a time-sensitive application deadline of February 27, 2024. City staff, along with OAAC, are recommending that the City, acting as lead agency, apply for the grant for a total cost of $55 million to fund the next phases of the Sub-regional Adaptation Plans, which would provide flood protection improvements (e.g., a seawall or earthen berm protection) in the Bay Farm Island and SR-61/Doolittle Drive areas (Exhibit 1). The Port has already made a financial commitment for their portion of the required grant match and the City of Oakland will be requesting City Council approval at their February 20, 2024 City Council meeting.
DISCUSSION
The intent of this evening’s work session is: (1) to provide an update to the City Council on the status of the Sub-regional Adaptation Plans, including an outline of important milestones, timelines and Council decision points on key issues over the next two years, such as a detailed project scope and approach to governance; and (2) to seek City Council direction on staff’s and OAAC’s recommendation to apply for the BRIC grant before the Sub-regional Adaptation Plans are complete to capitalize on a time-sensitive funding opportunity. If the City Council provides direction to staff to submit the BRIC grant application, staff will return at the February 20, 2024 meeting to request formal approval of a resolution authorizing the BRIC grant application and the City issuing a match commitment letter in the amount of $1.9 million.
I. Status Report on Sub-regional Adaptation Plans
Approach to Governance. The City, on behalf of OAAC, is currently leading the effort to develop the Sub-regional Adaptation Plans that are addressing shoreline protection, infrastructure enhancement, and community resilience at key locations within the Cities of Alameda and Oakland. Currently, the City is working with members of the OAAC under a common mission statement and guiding principles (the OAAC Charter) that are not legally binding. There are currently no formal agreements in place with the City’s sub-regional partners regarding sharing of funding. The long-term plan for OAAC will include a sub-regional governance structure to jointly manage projects and administer funds. Recommendations for this sub-regional governance structure are expected later this year by the consultant team and legal experts.
Staff recognizes it is not sustainable for the City of Alameda alone to continue serving in a leadership role for the sub-regional partnership over the long-term. Potential governance options where the City of Alameda is no longer the designated “group leader” may include entering into memoranda of understanding (MOUs) with partner agencies, formation of a Joint Powers Authority (JPA), and/or formation of a Geologic Hazard Abatement District (GHAD) between the agencies. Following the formation of such an entity, rules will be established governing the City’s relationship with the other agencies, calculations for pro-rata shares, hold harmless and indemnification clauses, and other governance provisions. Any recommendation for governance structure will be taken to City Council for review and approval. It should be noted that the City Council could wait for more information and recommendations on governance from the Sub-regional Adaptation Plan process before directing staff to proceed with applying for funding. However, staff believes that not pursuing funding at this time creates risks that the City and OAAC would lose momentum and would increase the potential of delaying important adaptation projects. Staff is therefore seeking Council direction on pursuing the BRIC grant now before completion of the Sub-regional Adaptation Plans.
The following provides an update on each of the planning efforts and provides an outline of key milestones and Council decision points, along with associated timelines, and important considerations over the next two years.
Project 1: Sub-regional Adaptation Plan. This project consists of developing a plan to protect the Oakland-Alameda sub-region from near- and long-term sea level rise and associated shoreline hazards (Exhibit 2). Budget: $840,000 ($300,000 from San Francisco Estuary Partnership (SFEP) and $540,000 from National Fish and Wildlife Foundation (NFWF). Grant funding expires October 31, 2025. Webpage: www.alamedaca.gov/AdaptationLongTermPlan <http://www.alamedaca.gov/AdaptationLongTermPlan>
• Plan Status: In progress. Began September 2023 when City Council approved the CMG Landscape Architecture consultant agreement.
• Key Milestones and Timelines: Feasibility assessment in spring 2024, draft plan and governance structure in late 2024, two rounds of outreach in spring 2024 and early 2025, and request for City Council approval anticipated fall 2025.
• Important Considerations: While a formal governance structure has not been established, funding from BRIC is not anticipated until late 2025, giving time for OAAC to formalize its governance structure. The plan will include a sub-regional governance structure evaluation to jointly manage projects and administer funds with recommendations expected later this year by the consultant team and legal experts. Any recommendation for governance structure will be taken to City Council for review and approval.
Project 2: Oakland-Alameda Estuary Adaptation Project. This project consists of developing a design concept, which is equivalent to 10 percent design, to protect both Downtown Oakland/Jack London Square and the City’s northern shoreline near the Posey/Webster Tubes from sea level rise and flooding (Exhibit 3). Budget: $500,000 ($425,000 from Caltrans and $75,000 from the City). Grant funding expires February 28, 2025. OAAC and the City are taking initial steps to explore the potential for federal funding opportunities to continue this project beyond 2025, including requests for inclusion in the 2024 Water Resources Development Act (WRDA) legislation, which is currently being considered in the House Transportation and Infrastructure Committee. Funding from WRDA could be up to $89 Million, and staff will bring WRDA funding discussions to City Council upon receiving indication that this funding source has potential. Webpage: www.alamedaca.gov/AdaptationEstuary <http://www.alamedaca.gov/AdaptationEstuary>
• Plan Status: In progress. Began September 2023 when City Council approved the CMG Landscape Architecture consultant agreement.
• Key Milestones and Timelines: Alternatives analysis in spring 2024, draft concept design in summer 2024, two rounds of outreach in spring and fall 2024, and final concept design requested for City Council approval in early 2025.
• Important Considerations: To continue momentum on this project, more funding will be needed in March 2025 to complete environmental clearance, permitting, design and construction.
Project 3: Bay Farm Island Adaptation Project. This project consists of developing a long-term adaptation plan for the entire Bay Farm Island as well as developing designs to address shoreline overtopping locations of Veterans Court and the Lagoon Outfall (Exhibit 4). Budget: $2 million ($1.5 million FEMA and $530,000 City of Alameda). Grant funding expires September 29, 2025. OAAC is recommending pursuing the BRIC grant to ensure continued funding for the project, which is described in greater detail below. Webpage: www.alamedaca.gov/AdaptationBayFarmIsland <http://www.alamedaca.gov/AdaptationBayFarmIsland>
• Plan Status: In progress. Began September 2023 when City Council approved the CMG Landscape Architecture consultant agreement.
• Key Milestones and Timelines: Alternatives analysis in spring 2024, draft design in fall 2024, two rounds of outreach in spring 2024 and early 2025, and request for City Council approval in fall 2025.
• Important Considerations: To continue momentum on the high priority project by Veterans Court and the Lagoon Outfall, more funding will be needed in October 2025 so as to complete environmental clearance, permitting, design and construction.
II. Council Direction on BRIC Grant Application
By 2025, the early-stage planning and project scoping tasks listed above will be complete, but the subsequent steps of developing the project designs and construction details will require additional and significant amounts of funding because sea level rise adaptation are large infrastructure projects. City staff and OAAC are recommending pursuing major grant funds and capitalizing on time-sensitive funding opportunity before completion of the Sub-regional Adaptation Plans to help ensure continuity of the sea level rise planning and implementation efforts and to build upon the momentum of the current sub-regional collaboration.
As a result, City staff and OAAC are recommending that the City, as the lead agency, apply for a $55 million BRIC grant to advance the Bay Farm Island Adaptation Project (Project 3 described above) as well as adaptation for SR-61/Doolittle Drive, East Oakland’s Columbian Gardens neighborhood, and enhancements to San Leandro Bay tidal marshes. Exhibit 5 shows the proposed scope of work for the BRIC grant, which consists of a detailed technical report that is required as part of the grant application submittal, and highlights the flood hazards along with the mitigation actions that are covered in the grant application. Letters of support for the BRIC grant application are shown in Exhibit 6.
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 tangible 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.
While the BRIC applications are open annually, OAAC believes the February 2024 opportunity is a “cannot-miss opportunity” because both the Cities of Alameda and Oakland are in a strong position to receive the grant. The 2024 BRIC grant cycle is prioritizing Community Disaster Resilience Zones (CDRZ), which are geographic areas that FEMA identifies as most in-need and at-risk. The Bay Farm Island Adaptation Project is more competitive because the City is partnering with the City/Port of Oakland and benefiting from the Oakland Airport CDRZ designation. This designation reduces the amount of non-federal matching funds from 25% to 10%, or savings of $9 million of non-federal match to OAAC. Future BRIC applications may require the full 25% local match and may not prioritize CDRZs. By pairing improvements to SR-61/Doolittle Drive and East Oakland neighborhoods, the Bay Farm Island Adaptation Project is more competitive to receive FEMA grant funds because of the priority CDRZ designation. Furthermore, the entire area is hydraulically connected and so it needs to be mitigated together to reduce flooding in Bay Farm Island, SR-61/Doolittle Drive and the Oakland Airport.
OAAC is seen as a model for the formation of other sub-regional associations in the San Francisco Bay region. Currently, OAAC is recommending the City pursue $55 million of possible federal funding on its behalf. The grant funds bring significant benefits to protecting the Alameda community, but also require the City to accept certain responsibilities associated with its role as the lead agency. These responsibilities include:
• Applicant for $55M BRIC Grant - As lead agency, the City will be the dedicated applicant and point of contact for the BRIC funds. The City must also issue a letter committing to fund $1.9 million non-federal match for the grant as part of the application.
• Responsibility for Coordinating Non-Federal Match Funds - The non-federal match for the BRIC grant is $5.5 million, and must come from non-federal funding sources. At the time of grant award, anticipated in approximately one year, the City, as the grant applicant, must demonstrate the availability of non-federal match funds totaling $5.5 million. Of that $5.5 million, the City’s pro-rata share is $1.9 million, anticipated to come from state, regional and local funding sources not yet identified. The Port has provided a commitment letter for $2.6 million. The City of Oakland will also be considering a $1 million commitment at its February 20, 2024 City Council meeting.
The non-federal matching funds can come from various agencies. The project will be competitive for transportation and other funding due to the project’s ties to SR-61/Doolittle Drive, the priority Bay Trail gap closure, as well as the Bay Farm Island’s northern shoreline that bolsters the Bay Trail, and the marsh improvements. As a result of developing an Oakland-Alameda adaptation plan consistent with State law, projects listed in this plan will also be prioritized for state funding as required under SB 272 passed in 2023.
• Staff Time Commitment - Staff is currently dedicating time to leading project management for the Sub-regional Adaptation Plans. Currently, two employees from the Planning, Building and Transportation Department are assigned to lead development of the BRIC grant application with the consultant team as well as overseeing operation of the OAAC steering committee, subarea working groups and quarterly meetings. As described above, the planning efforts will develop a more detailed governance and staffing plan among all OAAC jurisdictions for the implementation phase of the Sub-regional Adaptation Plans. The sub-regional governance structure will help determine Alameda’s future staffing needs and commitment for adaptation project delivery, which will be subject to City Council review and approval.
OAAC and City staff believe it is important to apply for the BRIC grant application now because future federal funding is uncertain and the funding criteria may change. Should there be no funding available in 2025, then the progress on the implementation of the Sub-regional Adaptation Plans will stall and work will not be able to resume until other funding sources are identified.
ALTERNATIVES
City Council can take any of the following actions:
• Authorize the FEMA BRIC Grant Application: Accept City staff and OAAC’s recommendation and direct staff to return at the next City Council meeting on February 20, 2024 with a resolution to approve submittal of a grant application including the non-federal match for the BRIC funding. Allowing this grant application to proceed increases the chances for work to continue on the Bay Farm Island Adaptation Project in 2025 with primarily federal funds. Staff will continue to bring progress reports and updates to City Council as work on the project and formalization of a governance model proceeds.
• Do not authorize FEMA BRIC Grant Application: Reject City staff and OAAC’s recommendation to apply for BRIC grant funding during this funding cycle. The City Council could wait for more information and recommendations on key issues from the Sub-regional Adaptation Plan process before directing staff to proceed with a BRIC grant application. However, not authorizing BRIC grant application at this time creates risks that the City and OAAC would lose momentum and not be as competitive for a future funding cycle, which would require OAAC to seek other funding sources that could be difficult to obtain, would likely require a higher match amount, and would increase chances of delaying this important adaptation project.
FINANCIAL IMPACT
City staff recommend returning at the next City Council meeting to request authorization to approve submittal of a grant application including the non-federal match for the BRIC funding. The BRIC grant for the Bay Farm Island/Airport CDRZ Project totaling $55 million requires a non-federal match of $5.5 million. While the City of Alameda 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.
The City share is $1.9 million or 35 percent of the project and the City will benefit directly from receiving $42.7 million for the design and construction cost of Doolittle Drive/SR-61/SF Bay Trail, Veterans Court, and BFI Lagoon and Northern Shoreline. The City will also benefit from the tidal marsh enhancement, which is mitigation for the SR-61/Doolittle Drive work and a required part of the project. The Port has agreed to provide $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.
|
Non-Federal Pro Rata Share (10%) |
% Share |
Amount |
|
Port- Match commitment letter provided |
46% |
$2,575,644 |
|
Oakland- City Council meeting on Feb 20 |
19% |
$1,051,208 |
|
Alameda |
35% |
$1,924,248 |
|
Total |
100% |
$5,551,100 |
The City’s pro-rata share is $1.9 million, and 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 the Bay Farm Island’s northern shoreline that bolsters the Bay Trail.
At the time of grant award, anticipated in approximately one year, the City, as the grant applicant, must demonstrate the availability of non-federal match funds totaling $5.5 million. After receiving the BRIC grant, staff will leverage these federal funds to obtain state and regional funds to offset the placeholder non-federal match sources. 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), 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 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
Accept a status report and hold a work session on the Sub-regional Adaptation Plans, including an outline of important milestones, timelines, and Council decision points on key issues over the next two years; and provide direction on staff’s and OAAC’s recommendation to apply for the BRIC grant before the Sub-regional Adaptation Plans are complete to capitalize on a time-sensitive funding opportunity.
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. Long-Term Adaptation Plan - CIP Sheet
3. Oakland-Alameda Estuary Adaptation Project - CARP Project Sheet
4. Bay Farm Island Adaptation Project - CARP Project Sheet
5. BRIC Grant Technical Report
cc: Erin Smith, Public Works Director