TO: Board of Supervisors
FROM: Steve Lederer - Director of Public Works
REPORT BY: Andrew Butler - Senior Engineer
SUBJECT: Increase Appropriations Project 20031 FEMA House Elevation Grant
RECOMMENDATION
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Approve a Budget Amendment to increase appropriations for a new approved project funding of $1,288,815 for Project 20031 FEMA House Elevation Grant to partially fund the elevation of private homes that have generated multiple damage claims resulting from flooding. (Fiscal Impact $446,499 Revenue and Expense; General Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
On October 12, 2017 the Board approved the filing of a Hazard Mitigation grant application to CalOES and FEMA to partially fund the elevation of private homes that had generated multiple damage claims resulting from flooding in recent history in Napa County and for the Director of Public Works to serve as the Authorized Agent for the grant. Napa County received approval of this grant application on August 19, 2019. The grant provides a 75% reimbursement from FEMA, through CalOES, for eligible costs resulting from one of the approved house elevation projects. The owner of the property provides the remaining 25% of the total required funding. The grant has a maximum reimbursement cap based on estimates for the elevation projects that were produced in 2017.
Due to rapidly escalating costs of construction, particularly residential construction after the Napa fires during this timeframe, it became evident that the actual costs of the elevation projects would far exceed the original total project estimates and the estimates for the 75% federal share based on which the maximum grant reimbursement cap was set. Napa County requested a budget adjustment in December 2023 to increase the estimates and grant reimbursement cap based on the increased construction costs that were being realized at that time. This request was approved on April 24, 2024. Since the reimbursement funds must pass through Napa County before they are paid to the property owners, the reimbursement funding amount must be budgeted. This item increases the original budget amount from the grant award to the updated maximum reimbursement amount approved by FEMA on April 24, 2024.
Requested Actions:
1. Approval of a Budget Amendment for the following (4/5 vote):
a. Increase appropriations in the amount of $446,499 for Community Grants (Fund 1000, Subdivision 1220500, Project 20031, Account 54805) offset by increase of revenue; and
b. Increase revenue in the amount of $446,499 for FED-Construction (Fund 1000,
Subdivision 1220500, Project 20031, Account 43840).
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Elevation of homes within floodplain areas is an action item in the Napa County Joint Operational Area Hazard Mitigation Plan. The terms of this grant require a local project sponsor in order for individual homeowners to participate. Participation in the program also positively affects the County's rating in the FEMA Community Rating System (CRS), which has a positive impact on flood insurance rates within the County. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The grant is expected to extend to mid-2025. However, all funding paid out by Napa County is first received from CalOES after a reimbursement request is submitted. |
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Consequences if not approved: |
Homeowners will not have access to approved federal funding for elevating their homes. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This proposed action is categorically excluded from NEPA pursuant to Categorical Exclusion N7 - Federal Assistance for Structure and Facilities Upgrades, and categorically exempt from CEQA pursuant to CEQA Guidelines section 15301, as the repair or minor alteration of existing private structures or facilities involving negligible or no expansion of existing or former use.