Loading...
HomeMy WebLinkAboutItem 6c - Acceptance of State Coastal Conservancy Grant Funds for SLO Open Space Wildfire Resilience Project Item 6c Department: Administration Cost Center: 1005 For Agenda of: 8/18/2026 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: ACCEPTANCE OF STATE COASTAL CONSERVANCY GRANT FUNDS FOR THE CITY OF SAN LUIS OBISPO OPEN SPACE WILDFIRE RESILIENCE PROJECT RECOMMENDATION 1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Approving Acceptance of Grant Funds from the State Coastal Conservancy for the ‘City of San Luis Obispo Open Space Wildfire Resilience Project’”; and 2. Authorize the Mayor to sign the Resolution supporting the partnership between the City of San Luis Obispo and the State Coastal Conservancy (SCC) and delegating authority to the City Manager to accept the grant funds and sign the grant agreement and any other necessary instruments to carry out the terms of the grant; and 3. Appropriate up to $770,000 in grant funds and authorize the Finance Director to amend the budget accordingly. POLICY CONTEXT The following policy objectives support the recommended action: 1. Conservation and Open Space Element 8.5.4. Fire prevention activities. Except in an emergency, fire prevention activities such as fuel clearance or thinning, grading, prescribed burns or other activities shall be conducted pursuant to an approved Conservation Plan, and under the supervision of the Natural Resources Manager and Fire Marshal. Habitat preservation shall be given equal priority with fire prevention. 2. Climate Adaptation and Safety Element Policy FI-5.1: Reduce Wildfire Risk. The City shall reduce the risk of wildfires in city open spaces and in the wildland urban interface through timely implementation of the City’s Community Wildfire Protection Plan and the Vegetation Management Plan (VMP). Program FI-5.13: Implement the Vegetation Management Plan. Continue to implement the City’s Vegetation Management Plan, condu cting fuel reduction projects at Page 21 of 357 Item 6c the 12 large open space lands included in the plan, using vegetation management techniques appropriate for each open space including manual vegetation removal; tree removal; mechanical treatment, prescribed burning, livestock grazing, and chemical treatment. Update the Vegetation Management Plan, as needed, to incorporate regulations regarding new best practices, and new funding opportunities for vegetation management projects. Work with private property owners and Sa n Luis Obispo County to review and conduct vegetation management to ensure dead trees and vegetation are reduced to prevent fire from spreading to adjacent lands. 3. 2025-27 Financial Plan, Major City Goal for Open Space, Climate Action, and Resilience Work Program 2c. Treat at least 25 acres of vegetative fuels in high-risk areas of City creeks and Open Space. DISCUSSION Background The City of San Luis Obispo has been successful in acquiring and protecting over 4,000 acres of open space that is owned and managed by the City. Working with partners and securing grant funding to leverage General Fund dollars, the City is now the steward of a significant amount of land for habitat and sensitive species conservation and protection. With the property acquired over the years comes the need for protective management as some of the open space properties form the Wildland Urban Interface (WUI), defined as where natural open space meets the built environment. For each of the open space properties acquired by the City, a Conservation Plan is prepared with different required elements, as identified in the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo . Wildfire preparedness is a required element of the conservation plans that have been developed for each open space; however, these plans are high level and do not provide more detailed site-specific tactics for management of vegetation present in each open space. Following the City’s successful grant award that is providing resources for preparation of the Vegetation Management Plan for City-owned open space properties, staff subsequently also applied for implementation funding under the State Coastal Conservancy’s Wildfire Resiliency Program. Although the Vegetation Management Plan is not yet complete (anticipated in winter 2026-27) staff prepared a grant proposal around known priority actions that can be accomplished in the near-term. Authority to submit this grant application was provided by City Council as part of its approval of the Climate Action Plan Work Program for 2023-27. The State Coastal Conservancy approved the subject grant award on June 18, 2026. With climate change, increased wind events and prolonged drought requires more attention to the vegetation in City open space and creeks to ensure a diligent and safe approach to fuels management and defensible space requirements. With the adoption of Page 22 of 357 Item 6c the Climate Adaptation and Safety Element (2023) and in support of the Conservation and Open Space Element (2006) policy sections listed above, the funding awarded from the State Coastal Conservancy provides for physical implementation of wildfire resiliency projects. Site-specific actions, monitoring, and tracking of vegetation management efforts will occur at Bowden Ranch Open Space, Cerro San Luis Natural Reserve, and Irish Hills Natural Reserve. These sites were prioritized based on Fire Hazard Severity Zone (FHSZ) maps recently put forth from Cal Fire and adopted by the City. All three City open space properties contain areas of Very High Fire Hazard Severity proximate to neighborhoods and other assets at risk and are geographically situated to address potential fire events driven by both on-shore and off-shore wind events. Implementation work is generally completed using California Conservation Corps crews, City Open Space Technicians, and staff in Ranger Service for smaller vegetation management projects based on capacity and availability. The grant funding from the State Coastal Conservancy, through its Wildfire Resilience Program, will allow staff to work with other contractors and vendors to increase the speed and scale of what staff can accomplish alone. Existing resources will continue to be used to implement projects identified in the updated Vegetation Management Plan and staff will continue to work with partners and other organizations to request additional grant funding and to build capacity as needed. Previous Council Action Prior City Council actions pertaining to wildfire management and preparedness include the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002), the Conservation and Open Space Element (2006), the Open Space Maintenance Plan 2015), which included the City of San Luis Obispo Vegetatio n Management Plan: The Wildland-Urban Interface as a technical appendix, and the Climate Adaptation and Safety Element (2023). Other pertinent actions have included adoption of various property- specific open space conservation plans, and periodic updates to the Community Wildlife Protection Plan and Local Hazard Mitigation Plan. On May 6, 2025, the City Council adopted Resolution No. 11560 (2025 Series) authorizing the acceptance of grant funds from the State Coastal Conservancy for the City of San Luis Obispo’s Vegetation Management Plan. Public Engagement As part of the grant scope of work for the previously funded Vegetation Management Plan process, informational sessions and community workshops and currently being conducted in accordance with the Public Engagement and Noticing (PEN) Manual in the neighborhoods where City Open Space forms the WUI border to what activities are to be performed on the City open space property to reduce the risk of wildfire. The most recent Community Workshop took place on July 22, 2026. Page 23 of 357 Item 6c CONCURRENCE The Fire Department and Parks and Recreation Department concur with the recommendations in this report. ENVIRONMENTAL REVIEW The City recently completed registration with the State of California pursuant to the Governor’s executive order and its California Environmental Quality Act (CEQA) Suspension process for projects that reduce the risk of wildfire (Secretarial Suspension Authorization, Project ID: 3c76408c-c831-40e7-85e6-8283a118f7b9, “City of San Luis Obispo Hazardous Fuels Reduction and Wildfire Prevention Project”). This approval specifically covers invasive species treatment actions in the locations identified under the proposed scope of work. Project activities will need to comply with the Statewide Fuels Reduction Environmental Protection Plan (EPP) following submittal of a Notice of Commencement specifying the date and location where activities will actually take place. FISCAL IMPACT Budgeted: Yes Budget Year: FY 2026-27 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $110,000 $ $ $ State $770,000 Federal Fees Other: Total $880,000 $ $ $ The City’s grant award from the State Coastal Conservancy was approved by its Board of Directors on June 18, 2026. The City also has ongoing funding budgeted in the total amount of $110,000 that can be used attendant to Wildfire Resilience projects as foll ows: $20,000 for goats and sheep contractor, $20,000 for hazardous trees, $20,000 for invasive species treatments, and $50,000 for open space fencing. Because the grant funding will be paid on a reimbursable basis, a new project account may be needed to accommodate timely payments to vendors before grant funds are received. Staff from the Office of Sustainability & Natural Resources, Ranger Service, and the Fire Department will support project implementation as part of the City’s Vegetation Management Team. Page 24 of 357 Item 6c ALTERNATIVES 1. Council could request additional information or request changes to the draft Resolution required by SCC. It is unlikely however, that SCC is willing to entertain substantive changes to its standard, template form of Resolution. 2. Council could decide not to approve adopting the draft Resolution and entering into a grant agreement with SCC. This would require alternative planning to identify another funding approach for vegetation management in City Open Space and creek areas. It should also be noted that this is an opportunity for site-specific vegetation treatment projects that are “shovel ready” on City owned and managed lands. ATTACHMENTS A - Draft Resolution accepting Grant Funds from the State Coastal Conservancy B - State Coastal Conservancy Typical Grant Agreement Terms Page 25 of 357 Page 26 of 357 Resolution No. (2026 Series) Page 2 RESOLUTION NO. (2026 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING ACCEPTANCE OF GRANT FUNDS FROM THE STATE COASTAL CONSERVANCY FOR THE "CITY OF SAN LUIS OBISPO OPEN SPACE WILDFIRE RESILIENCY PROJECT" WHEREAS, the Legislature of the State of California has established the State Coastal Conservancy ("Conservancy") under Division 21 of the California Public Resources Code, and has authorized the Conservancy to award grants to public agencies and nonprofit organizations to implement the provisions of Division 21; and WHEREAS, the Conservancy awards grants for projects that it determines are consistent with Division 21 of the Public Resources Code and with the Conservancy's Strategic Plan and that best achieve the Conservancy's statutory objectives, in light of limited funding; and WHEREAS, at its June 18, 2026 meeting, the Conservancy adopted a resolution authorizing a grant to The City of San Luis Obispo ("grantee") for The City of San Luis Obispo Vegetation Management Project ("the project"). The resolution was adopted by the Conservancy pursuant to and is included in the Conservancy June 18, 2026 staff recommendation, a copy of which is on file with the grantee and with the Conservancy, as also noted in the Council Agenda Report; and WHEREAS, the Conservancy requires that the governing body of the grantee certify through a resolution that it approves the award of Conservancy grant funding and designates a representative to negotiate and execute a Grant Agreement with the Conservancy. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, in its capacity as grantee, hereby: 1. Approves the award of grant funding in the amount of $770,000 from the Conservancy for the project, as further described in the Grant Agreement. 2. Acknowledges that it has or will have sufficient funds to complete the project , including $770,000 awarded by the Conservancy and, if any property is acquired as part of the project to operate and maintain the property, and, if any facilities are constructed as a part of the project, to operate and maintain the facilities for a reasonable period, not less than the useful life of the facilities. 3. Agrees to be bound by all terms and conditions of the grant agreement and any other agreement or instrument as may be required by the Conservancy and as may be necessary to fulfill the terms of the grant agreement and to complete the project. Page 27 of 357 Resolution No. (2026 Series) Page 2 4. Authorizes the City Manager to negotiate and execute on behalf of the grantee all agreements and instruments necessary to complete the project, and the Sustainability and Natural Resources Official and City Biologist to act as a representative of the grantee, to carry out and comply with the Conservancy's grant requirements and scope of work, including, without limitation, the terms of the grant agreement: Whitney McDonald, City Manager Robert Hill, Sustainability & Natural Resources Official Freddy Otte, City Biologist Upon motion of Council Member , seconded by Council Member , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2026. ATTEST: Erica A. Stewart, Mayor Teresa Purrington City Clerk APPROVED AS TO FORM: __________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington City Clerk Page 28 of 357 ( (I)� State of California"11,i; Coastal Conservancy Typical Grant Agreement Terms Once the Conservancy has approved a grant at a public meeting, Conservancy staff will prepare a grant agreement setting forth the terms and conditions of the grant. The grantee must sign the grant agreement and comply with all of its conditions in order to receive funds. The grant agreement describes requirements in greater detail and will be the controlling document. Close review of and compliance with the grant agreement is essential and is the grantee's responsibility. •The Conservancy usually limits overhead to 20%. •Expenses incurred before the grant agreement with the Conservancy is executed cannot be billed to the grant. •All Conservancy grantees should expect to be audited by the State of California. It is the grantee's responsibility to maintain all necessary records to substantiate and document all payments made pursuant to a Conservancy grant. If a grantee cannot provide adequate records when they are audited, they may be required to repay grant funds. •The Conservancy reimburses grantees for expenses after they are incurred. This means the grantee will have to cover the costs of the project between the time the expenses are incurred and they get paid by the Conservancy. •Grantees are typically responsible for operation, maintenance and monitoring of completed projects for 20 years. •For grants to nonprofit organizations to construct improvements, the Conservancy will require a recorded agreement between the nonprofit, the Conservancy, and landowner if the property is not owned by the nonprofit, to protect the public interest in the project. •Federal tribes will be asked to sign a limited waiver of sovereign immunity when entering into a grant agreement with the Conservancy. •Grantees are typically required to maintain general liability, automobile, and other forms of insurance during the term of the grant agreement. •Grantees may be required to pay prevailing wages for their project in compliance with the Labor Code. General information on prevailing wage requirements can be provided upon request. •For wetland and watershed restoration and protection projects, applicants will be required to conduct a baseline report utilizing the California Rapid Assessment Method (CRAM) within the year prior to project construction, unless otherwise agreed upon in writing by the Conservancy and the grantee (http://www.cramwetlands.org/). Applicants will also be required to provide a plan for Completion of Post-Construction CRAM Assessment, including a budget and time line for the collection of at least one CRAM assessment following construction of the project and prior to the completion date of the grant agreement in order to document the change in wetland condition at the project site. Costs associated with CRAM assessment should be included in the proposed project budget. Page 29 of 357 Page 30 of 357