Memorandum
REPORT TO:
City Commission
FROM:
Brian Heaston, Engineer III
SUBJECT:
Authorize the City Manager to Sign a Memorandum of Understanding and License Agreement with Gallatin County Emergency Management for the Sourdough Fuels Reduction Grant and Project Implementation
MEETING DATE:
September 15, 2026
AGENDA ITEM TYPE:
Agreement - Agency/Non-profit
RECOMMENDATION:
Authorize the City Manager to Sign a Memorandum of Understanding and License Agreement with Gallatin County Emergency Management for the Sourdough Fuels Reduction Grant and Project Implementation
STRATEGIC PLAN:
BACKGROUND:
The City owns timbered land in the Sourdough municipal watershed beyond the Sourdough canyon trailhead. These landholdings are within the designated Gallatin County Wildland Urban Interface (WUI). Gallatin County Emergency Management (GCEM) has secured federal grant funding through the Community Wildfire Defense Grant Program to reduce the risk of fire hazards within the WUI. Fuels reduction work on the City’s timbered property in Sourdough is an eligible grant activity.
The attached Memorandum of Understanding sets forth the roles and responsibilities of the City and GCEM for the Sourdough fuels reduction grant project. The MOU was prepared by city and county legal staff. GCEM will administer the grant work and the City will provide cash payments to GCEM directly to satisfy grant match requirements. Both parties collaborated in the preparation of the fuels reduction treatment plan mentioned in the MOU. The treatment plan is provided with GCEM’s invitation for competitive sealed bids, which is attached to this memo for reference. The plan calls for reducing fuels on approximately 125 acres that are accessible by existing roads. Mechanical mastication is the primary treatment method. Bids were received on August 28, 2026 and are presently being reviewed by GCEM.
The MOU requires GCEM to obtain written consent from the City prior to officially entering a contract with the selected fuels reduction contractor. This provision provides a stop gap measure, ensuring that: 1) the value of the contracted work fits within the City’s authorized budget; and 2) indemnity and liability provisions sufficiently protective of the City’s interests are made part of the contract documents prior to execution by GCEM and the Contractor.
UNRESOLVED ISSUES:
GCEM must award and enter into a contract with a fuels reduction contractor to implement the treatment plan. The contract must contain indemnity and liability protections sufficient for the City prior to the City providing its written consent pursuant to the MOU.
ALTERNATIVES:
As suggested by the City Commission.
FISCAL EFFECTS:
The MOU establishes the City’s maximum match obligation at $120,000. The match amount provided must be at least 40% of cost of the work. GCEM’s fuels grant will provide up to 60% of the project funding to a maximum amount of $180,000. City funding is available in the FY27 adopted budget through Water Fund CIP project W172 in the amount of $120,000. Sufficient funding is in place to enter the MOU.