AgdaPkt 2018-12-17 Joint Special

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6.J. - Page 2 of 20 The retrofit of the existing pile foundation of the Peninsula 2 tank will greatly reduce future earthquake damage to the tank, prevent loss of potable water to 12,000+ people, and avoid loss of water for suppression of earthquake -induced fires. ANALYSIS Since 2011, in accordance with the City Council's Grant Management directives, staff has been aggressively pursuing grant funding from FEMA to assist in accomplishing City capital improvement goals and objectives. The FEMA Hazard Mitigation Grant Program would allow the City to complete the above- mentioned essential seismic retrofit work ahead of schedule. The high-value, therefore, highly competitive and most -sought-after federal grant is managed through the California Governor's Office of Emergency Services with a cost -share requirement of 75% Federal and 25% City. On October 8, 2018, staff received a letter of Notification of Subapplication Approval from Cal OES for the full approval of the City's application for a total requested project cost of $958,594 (without contingency per FEMA and without the escalation cost for 2019). The total estimated project cost, which includes contingency and escalation cost for the 2019 construction year, is $1,218,945.50. The Federal share is fixed at $718,945.50; therefore, the City total share is approximately $500,000.00. The City will have two years to complete the project. Staff anticipates using the funds for construction costs. In recognition of the favorable terms and benefits, staff recommends that the Grant be accepted. FISCAL IMPACT If the $718,945.5 -grant award is accepted, the Finance Division will adjust the City Fiscal Year 2018-2019 budget to accommodate the grant and the capital project fund as follows: • Transfer $500,000 of fund reserves from the Water Operations Fund to the Water Capital Project Fund and • Increase revenue in the Water Capital Projects Fund budget by a total of $1,218,945.50 ($718,945.5 -grant award and $500,000 transfer of Water Operations Fund reserves), and Increase expenditures in the Water Capital Projects Fund budget by $1,218,945.50. ENVIRONMENTAL REVIEW The grant acceptance and budget amendment proposed in this report do not constitute a "project" as defined by the California Environmental Quality Act section 15378 because the grant acceptance and budget amendment have no potential for resulting in either a direct or foreseeable physical change in the environment. Environmental review will be conducted for each construction package. PUBLIC NOTICE Public Notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 398