Kern County to apply for $37.6 million federal grant to seismic‑retrofit Kern Valley hospital

The Kern County Board of Supervisors on Aug. 5 approved a resolution authorizing the county to prepare and submit a Hazard Mitigation Grant Program application to the California Office of Emergency Services (Cal OES) seeking up to $37,585,839 for seismic upgrades to the acute care hospital building owned by Kern Valley Healthcare District in Lake Isabella.

Stacy Kuwahara, assistant county administrative officer, told the board the grant would help the district meet the seismic safety requirements established under Senate Bill 1953 for California hospitals. Kuwahara said the healthcare district does not currently have a federally approved hazard mitigation plan, which would make it ineligible to apply directly, so the district requested that the county act as the sub‑applicant on its behalf. The district has committed to providing the required 25% local match — $9,300,000 — and to assume the administrative tasks tied to application reporting and compliance, Kuwahara said. The project is reimbursement‑based and costs would be reconciled and reimbursed to the district after approval and review.

Kuwahara outlined financial, administrative and legal risks the county would assume as the named sub‑applicant under federal grant rules, noting that county counsel had reviewed the proposed indemnification agreement and “indicated they are unable to approve to form due to the liabilities that may impose on the county.” She said the indemnification agreement in the board packet was structured to mitigate risks but still presented an unusually high liability exposure for the county under recent federal policy and reporting changes.

Board members emphasized the hospital’s role in the Kern River Valley. Supervisor Peters thanked staff and the hospital representatives for collaborating, calling the hospital “incredibly important and impactful to the residents up there” and noting the facility serves communities including Kernville, Lake Isabella and Bodfish. Supervisor Parlier also expressed support and seconded the motion. Supervisor Peters moved to adopt the resolution and authorize the indemnification agreement; Supervisor Parlier seconded. The motion passed on a unanimous vote.

County staff outlined earlier grant attempts involving the district: a 2019 Hazard Mitigation Grant Program submission for $19.2 million that was not awarded, and a 2022 Building Resilient Infrastructure and Communities (BRIC) application later revised to $32.2 million that was canceled by FEMA. Kuwahara said Cal OES staff confirmed it is common practice for counties to act as sub‑applicants for otherwise ineligible special districts, but that the county remains the accountable party under federal regulations and could be held responsible for ineligible expenditures, procurement deficiencies, or failures in reporting even if administrative duties are delegated to the district.

Representatives from Kern Valley Healthcare District were present; Kuwahara said the district provided a maintenance commitment letter to keep the facility for the useful life of the project. With board approval, the county will sign the indemnification agreement and submit the HMGP application to Cal OES on the district’s behalf, subject to finalization of contract language and any additional county counsel direction.