Agenda #: 5.4
Meeting Date: May 2, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: RECOGNIZE FEMA/CALOES REIMBURSEMENT IN THE PARK
DEVELOPMENT FUND 262
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
Recognize the final FEMA and CalOES reimbursement for Sycamore Canyon Park hillside repair project in the amount of $708,785.23 in the Park Development Fund 262.
FINANCIAL IMPACT:
The City received Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (CalOES) reimbursement in the amount of $708,785.23 for repair work associated with 2017 Winter Storm flood damage at Sycamore Canyon Park. The funding represents the final reimbursement to close out 2017 winter storm projects. Funding recognized in Park Development Fund 262 may be reprogrammed in the future for design or construction work associated with City parks or facilities.
BACKGROUND:
During the January 2017 winter rainstorms, the City of Diamond Bar and several jurisdictions throughout the State were significantly impacted by damage from flooding.
Sycamore Canyon Park experienced damage in several areas, including: 1) erosion of the wood chips within the playground area near the creek, and 2) a significantly undermined staircase and hillside west of the Diamond Bar Blvd trailhead. The City Council authorized submittal of a Federal Emergency Management Agency (FEMA) claim under Presidential Declaration FEMA-4305.
City staff initiated the formal review process with FEMA, California Office of Emergency Management Services (CalOES), and Los Angeles County Office of Emergency Management (OEM) staff. FEMA determined that the playground should be classified as a small project that could be repaired immediately, with reimbursement paid to the City in early 2018 in the amount of $26,811.61. FEMA classified the undermined staircase and hillside project as a large project eligible for reimbursement up to project costs if the City’s project followed the scope of work outlined in the FEMA approved project worksheet. Based on that guidance, and in collaboration with CalOES, the City received a letter of obligation in December 2018 that provided funding authorization of approximately $500,000 for the undermined staircase and hillside restoration project.
ANALYSIS:
The bid to repair Sycamore Canyon hillside and replace the undermined staircase was nearly $1 million. With Council approval, the project was approved and repair work began in early 2019. Physical construction continued through late 2019, with the notice of completion filed in early 2020. During construction, City staff submitted three reimbursement requests to ensure the City would receive funding for eligible project costs. After submittal of the third reimbursement, the City received only $459,686.
With support from CalOES, City staff submitted a Project Close Out Request in September 2020 requesting consideration to reimburse the City for project costs totaling $1.2 million. CalOES and FEMA requested additional supporting documentation over the next year, with CalOES recommending to FEMA that the project should receive a supplemental funding obligation in April 2022. It was not until early 2023 that the City received the final notification of obligation and payment of supplemental funding in the amount of $708,785.23 (Attachment 1). Combined with the three previous reimbursement requests totaling $459,686, total FEMA and CalOES funding in the amount of $1,168,471.23 was received by the City as outlined in the table below. Total reimbursements represent approximately 93% of the total repair costs at Sycamore Canyon Park as originally estimated for reimbursement by FEMA/CalOES.
Reimbursement Date FEMA
CDAA
(CalOES) Subtotal
1 Sept, 2019 $116,028.00 $29,007.00 $145,035.00
2 Nov, 2019 $128,930.00 $32,233.00 $161,163.00
3 May, 2020 $122,790.00 $30,698.00 $153,488.00
Subtotal $367,748.00 $91,938.00 $459,686.00
Closeout
Reimbursement Feb, 2023 $556,712.23 $152,073.00 $708,785.23 Total $924,460.23 $244,011.00 $1,168,471.23
Given that the project costs were previously appropriated to repair existing park facilities, it is recommended that the final reimbursement amount of $708,785.23 be recognized this fiscal year in the Park Development Fund 262. These funds would then be available for future park improvement projects that may be approved as part of any future Capital Improvement Program (CIP) budget.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a Sycamore Notification of Obligation January 2023