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HomeMy WebLinkAbout22 - Planning/Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging ProgramTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report PREPARED BY: PHONE: November 27, 2018 Agenda Item No. 22 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov Chris Miller, Administrative Manager, cmiller@newportbeachca.gov 949-644-3043 TITLE: Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program ABSTRACT: Over the past three years, staff has been actively working with the Federal Government, both at an agency and legislative level, to designate the Lower Bay dredging project as a current, federally funded project. In August 2018, the Los Angeles District Army Corps of Engineers (Corps) funded the first $150,000 of approximately $23 million effort, thereby officially designating the project as "active" in the federal system - a significant milestone for procuring future federal funding. In order to rigorously compete for limited federal funds in the upcoming federal budget cycles, the City greatly increases its requesting position by having a shovel -ready project (plans and permits completed), providing confidence to the legislature that any appropriated funding dollars can be immediately spent. Unfortunately, due to limited resources and financing, the Corps is unable to design, permit and environmentally review the City's project within the timeframe the City desires. Therefore, and in an effort to keep this project moving forward, the City is proposing to complete all of the necessary pre -project tasks, including those normally handled by the Corps, so the project can be shovel -ready by the end of 2019. Public Works staff requests City Council approve a Professional Services Agreement with one of our current on-call Marine Engineering firms, Anchor QEA, LLC to perform all of the tasks, concurrently, within a relatively short timeframe, to provide assurance to the legislature that Newport Harbor is ready to begin its project. The total cost for this work is estimated to be $777,000 and funding is available in the Tidelands Capital Fund. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; 22-1 Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/ Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program November 27, 2018 Page 2 b) Approve a Professional Services Agreement with Anchor QEA, LLC for pre -project Planning/Engineering Design and Support for the Federal Lower Newport Harbor Channel Maintenance Dredging Project at a not -to -exceed fee of $777,000.00, and authorize the Mayor and City Clerk to execute the Agreement; and c) Approve Budget Amendment No. 19BA-023 transferring $300,000 from Account 10101-980000-191-113 (Harbor Port Plan) to Account No. 10101-980000-18H07 and appropriating $377,000 from the unappropriated Tidelands Capital Fund, working capital to Account No. 10101-980000-18H07 for Harbor Wide Dredging/Planning. FUNDING REQUIREMENTS: This project requests a budget amendment transferring $300,000 of appropriations from the cancelled Harbor Port Plan to Harbor Wide Dredging/Planning project and $377,000 from Tidelands Capital Fund, working capital. Upon approval of the proposed Budget Amendment, and $100,000 of current appropriation in the Tidelands Capital Fund, sufficient funding is available in the current Capital Improvement Program budget for the award of this contract. The following funds will be expensed: Account Description Account Number Amount Tidelands Capital 10101-980000-18H07 $ 777,000 DISCUSSION: In Newport Harbor, the Corps is responsible for maintaining the federally authorized design depths in each of the navigational channels, collectively referred to as the Lower Bay Dredging Project. The Corps would typically be responsible for all of the pre -project tasks including design, permitting and environmental review (National Environmental Policy Act (NEPA)) for all of the sediment that is suitable for ocean disposal or beach nourishment. However, the Corps would not be responsible for funding the design, permitting, management and construction of any material that is deemed unsuitable for ocean disposal or beach nourishment — the City is responsible for paying these costs. The City desires to pursue a federally funded dredging project as soon as possible, and to achieve this goal, the City has already expended significant effort and resources in testing and characterizing the harbor's sediment along with intense local and federal lobbying efforts for the past three years. The City has requested assistance from our local Congressman and Senators for the project to be funded within the current 2019 Corps "Work Plan", and if necessary, funded in the federal fiscal year 2020 budget (beginning October 2019), and if necessary, funded within the Corps 2020 Work Plan, and so on. Therefore, in order to expedite project planning, design and permitting to shovel -ready status and take advantage of the ongoing annual funding mechanisms, staff recommends the City proactively complete all of the pre -project tasks including those traditionally completed by the Corps. Specifically, staff recommends the City complete the tasks as outlined below and within the attached scope of work. 22-2 Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/ Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program November 27, 2018 Page 3 This will ensure the highest probability of securing federal funding within the most condensed timeframe given the current administration's focus on infrastructure spending as well as the pre -determined shelf life of the City's already completed sediment characterization efforts. Anchor QEA proposes that the following tasks be completed concurrently in order to meet the condensed timeframe for a shovel -ready project by December 2019. Each task is briefly described below. Task 1: Ecological Risk Assessment Task 2: Newport Channel Sediment Sampling Program Task 3: Federal Channel Design Support Task 4: Confined Aquatic Disposal Planning and Design Task 5: Corps Environmental Assessment and Regulatory Permitting Task 6: City Environmental Document and Regulatory Permitting Task 1: Ecological Risk Assessment The biggest goal of the City's current sediment characterization study is to demonstrate that all, or the majority of the harbor's material is suitable for ocean disposal. This is especially important because, as mentioned above, the City is responsible for managing the unsuitable sediment while the Corps is responsible for managing the suitable sediment. In other words, for every cubic yard approved for open -ocean placement, the City will have one less cubic yard to manage on its own. (Note: Not all of the unsuitable material would qualify for ocean disposal. Some material will still require special management as described in Task 4 below.) Fortunately, none of the above mentioned material has proven toxic during the testing phase, but the concentration limits of some testing areas is fractionally higher than what is required for automatic approval by the regulatory agencies. The goal of Task 1 is to further analyze the sediment characterization results and hopefully prove that a significant amount, if not all of the sediment is suitable for the ocean environment. Task 2: Newport Channel Sediment Sampling Program Newport Channel is the narrow channel that runs from the eastern tip of Lido Isle at Via Lido Soud and runs past Marina Park to the Rhine Channel entrance. This channel was previously not sampled earlier this year as past testing has indicated this material would be unsuitable for ocean disposal, and therefore not worth two days of sediment sampling and weeks of analysis to prove what was already known. However, as a precautionary measure last winter to verify these assumptions, two sediment cores from this channel were sampled for a cursory analysis and review. Interestingly, the samples proved hopeful that a significant portion of the channel might be deemed suitable for ocean disposal. Therefore, staff is proposing this channel be thoroughly tested which could therefore potentially re -characterize the material from unsuitable (City responsibility) to suitable (Corps responsibility). 22-3 Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/ Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program November 27, 2018 Page 4 Task 3: Federal Channel Design Support This task involves design, engineering and development of plans and specifications for dredging the federal channels. This task would normally be the Corps' responsibility, but unfortunately, the Corps neither has the budget nor the resources to complete this task within the City's timeframe and funding windows next year. The City will work closely with the Corps during the design process, and the Corps will have final input and approval of the plans for their project. Task 4: Confined Aquatic Disposal Planning and Design This task involves management and disposal of the previously mentioned unsuitable material. This is the challenge for many dredge projects, particularly in areas such as Southern California where alternate disposal sites for unsuitable material are virtually non-existent. Several alternatives for material disposal are potentially feasible including on-site sediment management facilities (cement stabilization or sand separation techniques), future port fill, or as a last resort, upland disposal. However, each of these methods has significant drawbacks which render them inappropriate for Newport Harbor at this time. Another alternative, a Confined Aquatic Disposal (CAD) site, is a fairly simple and straightforward approach to managing unsuitable material in the water. It involves dredging a hole at a strategic location in the harbor, then placing the unsuitable sediment into that hole, then capping it with a layer of clean sediment for encapsulation. This is a common method for sediment management, and has been used at three locations in Southern California and many others along the east coast. Because the regulatory agencies recognize that there are limited disposal options available to the region's harbors, a CAD site is the most feasible and accepted. Task 4 involves planning for and designing a CAD site within Newport Harbor. Recall that Task 1 involves reducing, but probably not totally eliminating, the quantity of unsuitable material which requires management. This task includes a geotechnical investigation, CAD engineering design and a chemical confinement analysis which models the outside forces placed up on the CAD while still confining the material. Task 5: Corps Environmental Assessment and Regulatory Permitting This task involves completing the environmental review (NEPA) and permitting for the federal channel dredging portion of the project. This task would normally be the Corps' responsibility, but unfortunately, the Corps neither has the budget nor the resources to complete this task within the City's timeframe and funding windows. The City will work closely with the Corps during the design process, and the Corps will have final input and approval for their project. 22-4 Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/ Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program November 27, 2018 Page 5 Task 6: City Environmental Document and Regulatory Permitting This task involves California Environmental Quality Act (CEQA) document preparation for the CAD site mentioned in Task 4. It also includes securing the regulatory permits for the CAD site — a separate yet related component of the overall federal channel dredging project. Selection Process Public Works staff requests the City Council award this agreement to Anchor QEA based on a recent RFP selection process for Marine Engineering services in which Anchor QEA was one of three firms awarded an on-call contract with the City. Anchor QEA specializes in marine -related projects with a local emphasis on comprehensive dredging projects both large and small. They assisted the City with the Lower Bay pre -project planning for the past two years including full sediment characterization as well as strategizing with City and local Corps staff on various conceptual approaches to dredging Newport Harbor with the understanding that some areas of the harbor will be unsuitable for open -ocean disposal. Their experience in the Southern California region and nationwide is extensive, especially with material that has varying degrees of disposal suitability. Anchor QEA is recommended for this project because of their previous sediment testing expertise both with the Lower Bay sediment and the Regional General Permit near -shore dredging program, their intimate familiarity of the permit details and nuances that will be negotiated during the entitlement process, and their ability to immediately begin work without any initial ramp -up in order to meet the City's condensed timeline. The proposed scope of work will have a not -to -exceed fee of $777,000.00. Anchor QEA fees, hours and rates are reasonable and competitive. Lower Bay Construction Costs While the Lower Bay construction costs are currently estimated to be $23M, there are many factors that could influence the overall cost including the pre -project work described above. In order to further increase the odds of securing federal funding, it is recommended the City contribute funds whether directly or in-kind. (A twenty percent contribution may be appropriate in the future.) While a decision on contribution or percentage thereof can occur at a later date, the costs incurred for the pre -project tasks in this report will be applied towards the City's overall contribution limit. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 22-5 Approval of Professional Services Agreement with Anchor QEA, LLC for Planning/ Engineering Design and Support for Lower Newport Harbor Federal Channel Maintenance Dredging Program November 27, 2018 Page 6 NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Professional Services Agreement Attachment B — Budget Amendment 22-6 ATTACHMENT A PROFESSIONAL SERVICES AGREEMENT WITH ANCHOR QEA, LLC FOR ENGINEERING AND PLANNING SUPPORT FOR LOWER NEWPORT BAY FEDERAL CHANNEL MAINTENANCE DREDGING PROGRAM THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into as of this 27th day of November, 2018 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and ANCHOR QEA, LLC, a Washington limited liability company ("Consultant'), whose address is 9700 Research Drive, Irvine, California 92618, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Consultant to provide engineering and planning support for the Lower Newport Bay Federal Channel Maintenance Dredging Program ("Program"), including agency coordination and risk assessments, sediment sampling, planning and design support, analyses, and regulatory permitting ("Project'). C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the professional services described in this Agreement. D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows.. 1. TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on October 31, 2020, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). City may elect to delete certain Services within the Scope of Services at its sole discretion. 22-7 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Consultant shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Consultant to strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.4 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand -delivery or mail. 4. COMPENSATION TO CONSULTANT 4.1 City shall pay Consultant for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Seven Hundred Seventy Seven Thousand Dollars and 00/100 ($777,000.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.2 Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant's bills shall include the name of the person who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Consultant only for those costs or expenses specifically identified in Exhibit B to this Agreement or specifically approved in writing in advance by City. Anchor QEA, LLC Page 2 22-8 4.4 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER 5.1 Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Adam Gale to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 5.3 If Consultant is performing inspection services for City, the Project Manager and any other assigned staff shall be equipped with a cellular phone to communicate with City staff. The Project Manager's cellular phone number shall be provided to City. 6. ADMINISTRATION This Agreement will be administered by the Public Works Department. City's Public Works Director or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Consultant in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's Work schedule. 8. STANDARD OF CARE 8.1 All of the Services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably Anchor QEA, LLC Page 3 22-9 competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Consultant certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws, and legally recognized professional standards. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS 9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, employees, and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this (collectively, the "Indemnified Parties"), from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), and which relate (directly or indirectly) to the negligence, recklessness, or willful misconduct of the Consultant or its principals, officers, agents, employees, vendors, suppliers, subconsultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable, or any or all of them. 9.2 Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence, active negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. Anchor QEA, LLC Page 4 22-10 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the Work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Consultant or its employees. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the Work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the Services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any Anchor QEA, LLC Page 5 22-11 of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -venture or syndicate or co -tenancy, which shall result in changing the control of Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 16. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. OWNERSHIP OF DOCUMENTS 17.1 Each and every report, draft, map, record, plan, document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally, all material posted in cyberspace by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents, including all logins and password information to City upon prior written request. 17.2 Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant, and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 17.3 CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the Work. City agrees that Consultant shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the Anchor QEA, LLC Page 6 22-12 modification or misuse by City, or anyone authorized by City, of CADD data, (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Project, excepting only such use as is authorized, in writing, by Consultant. By acceptance of CADD data, City agrees to indemnify Consultant for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by the City in .dwg file format, on a CD, and should comply with the City's digital submission requirements for improvement plans available from the City's Public Works Department. The City will provide Consultant with City title sheets as AutoCAD file(s) in .dwg file format. All written documents shall be transmitted to City in formats compatible with Microsoft Office and/or viewable with Adobe Acrobat. 17.4 All improvement and/or construction plans shall be prepared with indelible waterproof ink or electrostatically plotted on standard twenty-four inch (24") by thirty-six inch (36") Mylar with a minimum thickness of three (3) mils. Consultant shall provide to City 'As -Built' drawings and a copy of digital Computer Aided Design and Drafting ("CADD") and Tagged Image File Format (.tiff) files of all final sheets within ninety (90) days after finalization of the Project. For more detailed requirements, a copy of the City of Newport Beach Standard Design Requirements is available from the City's Public Works Department. 18. OPINION OF COST Any opinion of the construction cost prepared by Consultant represents the Consultant's judgment as a design professional and is supplied for the general guidance of City. Since Consultant has no control over the cost of labor and material, or over competitive bidding or market conditions, Consultant does not guarantee the accuracy of such opinions as compared to Consultant or contractor bids or actual cost to City. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 20. INTELLECTUAL PROPERTY INDEMNITY Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement or alleged infringement of any United States' letters patent, trademark, or copyright, including costs, contained in Consultant's Documents provided under this Agreement. 21. RECORDS Consultant shall keep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate Anchor QEA, LLC Page 7 22-13 records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 22. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue Work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 23. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in this Section is intended to limit City's rights under the law or any other sections of this Agreement. 24. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 25. CONFLICTS OF INTEREST 25.1 Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act") and/or Government Code §§ 1090 et seq., which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 25.2 If subject to the Act and/or Government Code §§ 1090 et seg., Consultant shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. Anchor QEA, LLC Page 8 22-14 26. NOTICES 26.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first- class mail, addressed as hereinafter provided. 26.2 All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Public Works Director Public Works Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 26.3 All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Attn: Steve Cappellino Anchor QEA, LLC 9700 Research Drive Irvine, CA 92618 27. CLAIMS 27.1 Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Consultant shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Consultant's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Consultant in writing as unsettled at the time of its final request for payment. Consultant and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Consultant shall be required to file any claim Consultant may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 27.2 To the extent that Consultant's claim is a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, the Parties agree to follow the dispute resolution process set forth therein. Any part of such "Claim" remaining in dispute after completion of the dispute resolution process provided for in Public Contract Code section 9204 or any successor statute thereto shall be subject to the Government Claims Act requirements requiring Consultant to file a claim in strict conformance with the Government Claims Act. To the extent that Contractor/Consultant's claim is not a "Claim" as defined in Public Contract Code section 9204 or any successor statute thereto, Anchor QEA, LLC Page 9 22-15 Consultant shall be required to file such claim with the City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 28. TERMINATION 28.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 28.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. PREVAILING WAGES 29.1 Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays and overtime Work for each craft or type of workman needed to execute the Work contemplated under the Agreement shall be paid to all workmen employed on the Work to be done according to the Agreement by the Consultant and any subcontractor. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the Work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Agreement. A copy of said determination is available by calling the prevailing wage hotline number (415) 703-4774, and requesting one from the Department of Industrial Relations. The Consultant is required to obtain the wage determinations from the Department of Industrial Relations and post at the job site the prevailing rate or per diem wages. It shall be the obligation of the Consultant or any subcontractor under him/her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 29.2 Unless otherwise exempt by law, Consultant warrants that no contractor or subcontractor was listed on the bid proposal for the Services that it is not currently registered and qualified to perform public work. Consultant further warrants that it is currently registered and qualified to perform "public work" pursuant to California Labor Code section 1725.5 or any successor statute thereto and that no contractor or Anchor QEA, LLC Page 10 22-16 subcontractor will engage in the performance of the Services unless currently registered and qualified to perform public work. 30. STANDARD PROVISIONS 30.1 Recitals. City and Consultant acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 30.2 Compliance with all Laws. Consultant shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 30.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 30.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 30.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 30.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 30.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 30.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. Anchor QEA, LLC Page 11 22-17 30.10 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 30.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 30.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Anchor QEA, LLC Page 12 22-18 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By. Fro/.Aaron C. Harp &,k,*h„jrttx City Attorney ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Marshall "Duffy" Duffield Mayor CONSULTANT: Anchor QEA, LLC, a Washington limited liability company Date: By: Steve Cappellino Member Date: in John Verduin Member [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Anchor QEA, LLC Page 13 22-19 EXHIBIT A SCOPE OF SERVICES ANCHOR QEA, LLC — Engineering and Planning Support for Lower Newport Bay Federal Channel Maintenance Dredging Program Introduction/Background: Anchor QEA, LLC, is presenting this scope of work and cost estimate to continue support for the Lower Newport Bay (LNB) Federal Channel maintenance dredging program. The overall intent of this program is to dredge the harbor to its current federally authorized design depths. While the U.S. Army Corps of Engineers (USACE) is responsible for funding the engineering design, environmental review, and construction within the Federal Channel, they are not responsible for funding the design, permitting and construction of any management requirements above and beyond taking the dredge material to an approved ocean disposal site or placing the material onto a beach for nourishment. This also includes the costs associated with designing, permitting and constructing a confined disposal facility for the unsuitable material, if deemed necessary for material management. As is, Lower Newport Bay has significant quantities of impacted material which is not currently identified as suitable for ocean disposal and may require special management_ There is, however, a process by which we might be able to reduce these quantities, but further agency consultation will be required. The more material that the City of Newport Beach (City) can get approved for ocean disposal the lower the program costs will be for the City. To date, the City, with our support, has expended tremendous efforts in conducting sediment investigations of the harbor to evaluate alternative disposal options, conducted initial meetings with the USACE and U.S_ Environmental Protection Agency (USEPA), and documented the economic importance of the harbor. The steps have allowed the federal funding process to gather steam, but additional work is needed to continue to advance the project. Specifically, the City needs to assist the USACE with the engineering design and environmental review for the federal channels and complete the same for the development of disposal facility for whatever remaining material is not approved for ocean disposal. To meet the USACE budget requirements, all of these tasks must be completed by the end of calendar year 2019 so that the project is considered "shovel -ready" by the earliest time that federal funding could be made available. This will require that several tasks be completed in parallel to meet the desired schedule. The City began meeting with USACE in early 2017 to discuss the Federal Channel maintenance dredging program. Initial meetings were conducted with higher-level City and USACE staff, but eventually became focused to a smaller integrated group that identified a strategic path forward as part of the request for federal funding. Anchor QEA, LLC Page A-1 22-20 Initially, Anchor QEA prepared a Sampling and Analysis Plan (SAP) for use in assessing disposal options. The SAP was presented to and approved by the Dredge Material Management Team (DMMT) in December 2017, and sediment sampling commenced in early 2018. The City, in collaboration with USACE, presented the sediment sampling results to the DMMT in July 2018 and proposed unrestricted open -ocean disposal for most of the material including certain areas with elevated levels of mercury, dichlorodiphenyltrichloroethane (DDT), and polychlorinated biphenyls (PCBs) based on the biological testing results which showed no toxicity to aquatic organisms. While the DMMT did not agree with complete unrestricted open -ocean disposal, they were amenable to a discussion about increasing the screening thresholds based on evaluating potential ecological risks specific to Newport Bay. In addition to the areas with elevated chemical levels, there was one portion of the Lower Bay that was not tested (Newport Channel) based on high concentrations during past testing programs. Under normal circumstances, using typical threshold levels that USEPA relies on to determine if material is or is not suitable for open -ocean disposal, approximately 400,800 cubic yards (including over dredge) of the 888,100 -cubic yard dredge volume would require management through an alternate disposal location. Using a slightly higher threshold for mercury, PCBs and DDT would result in significantly less material that would require separate management. During sediment characterization efforts, Anchor QEA collected exploratory samples within the portion of the Newport Channel that was not initially included in the targeted sampling program to see if chemical concentrations had potentially been reduced as a result of past dredge events. This area was initially excluded from the Federal Channel SAP based on historical data and the 2012 Federal Channel dredging analysis which showed elevated concentrations beyond the accepted thresholds. Exploratory sampling during this recent sediment characterization in 2018 was intended to confirm that this material was indeed contaminated and unsuitable for open -ocean disposal. Unexpectedly, however, the characterization results from the exploratory sampling for the majority of Newport Channel tested as favorable with much lower than expected mercury' levels. These exploratory sampling results were then presented to the DMMT in an abbreviated SAP in June 2018, and the City requested approval to collect additional samples to complete a more comprehensive sediment investigation to assess suitability for open -ocean disposal. The DMMT approved the SAP and the City's proposal to collect additional samples from within Newport Channel. This portion of the Bay contains more than 200,000 cubic yards of material above the authorized design depth, so converting this volume to the Federal Channel maintenance dredging program would ' During previous 2012 LNB dredging, the USACE dredged a portion of the unsuitable surface layer from a portion of the Newport Channel, and disposed that material at the Port of Long Beach. Because this previously dredged material only represented a small portion of the available material needed to achieve design depths, the resulting material after 2012 was assumed to be unsuitable when developing the 2017 SAP. Anchor QEA, LLC Page A-2 22-21 be a tremendous financial benefit to the City (i.e. reduced unsuitable material decreases the City's responsibility for disposal options therefore reducing costs). Table 1 shows the combined effect of increasing the thresholds and proving that the material from the Newport Channel was suitable for ocean disposal, which reduces the volume of unsuitable material and thus reduces the City's cost contribution for the project. Note that these volumes have been calculated assuming a 1 -foot paid over dredge allowance. While the contractor will be allowed a maximum of 2 feet in overdredge allowance, they will only be paid for 1 foot, so we are assuming that for most areas they will not exceed the 1 -foot depth. This is a very common assumption and one that we typically see when looking at the final bathymetry depths. A map of lower Newport Harbor shows the dredge units listed below, authorized depths and the need for dredging required in multiple areas to achieve authorized design depths (Figure 1). Table 1 Dredge Volume and Disposal (Assumes Approved Increased Thresholds - Best Case Scenario) Dred6e Unit Dredge Unit Code Design Depth (feet MLLM ocean Suitable Unwitat;le Tota! Volume Mated Volume to Design Depth (cy) 1 -Foot overdep% Allowance Vohune (cy) Estimated Volume to Design Depth (cy) 1-Foat Overdepth Allowance Vohum (cy) Turning Basin TB -20 0 0 38,900 42,700 81,600 Main Channel North 1 MCN1 -20 37,000 13,300 0 0 50,300 Main Channel North 2 MCN2 -20 33,600 11,600 0 0 45,200 Main Channel North 3 MCN3 -20 45,700 22,200 0 0 67,900 Main Channel North 4 MCN4 -20 25,600 14,300 0 0 39,900 Main Channel North 5 MCNS -20 31600 2Q750 0 0 52,350 Bay island North BIN -15 83,700 29,850 0 0 113,550 Bay Island Middle East BIME -15 41,900 13,800 0 0 55,700 Bay Island Middle West BPM -15 43,300 12,400 0 0 55,700 Bay Island South BIS -15 49,900 15,250 0 0 65,150 Entrance Channel K -20 38,900 11,650 0 0 50,550 Newport Channel NC -15 134,000 32,800 33,000 1Q400 210,200 Total - -- 565,200 197,900 71,900 53,100 888,100 Another component in developing the request for federal funding was to demonstrate the harbor's economic importance locally and at the state and federal levels. The City retained an independent economic research and consulting firm, Beacon Economics, LLC, to document regional and national economic benefits resulting from maintaining deeper channels within Newport Harbor. Based on the analysis, the harbor's commercial activities directly and indirectly generate an estimated $1 billion in economic output, support 8,394 jobs, and generate $366.4 million in labor income. Anchor QEA, LLC Page A-3 22-22 The preliminary results of the aforementioned sediment investigation and the economic analysis were included in the City's formal funding letter requesting federal allocation to dredge Newport Harbor. Funding requests were submitted to Colonel Gibbs, Los Angeles District Commander, in Spring 2018. While this initial request for federal funding was unsuccessful, the City continued to pursue various opportunities, and a small starter -fund was eventually allocated by the USACE to provide preliminary design and planning -level project review which is a positive indication for future federal support. Scope of Work The following tasks have been identified to be completed concurrently, whenever possible, to maximize efficiency with respect to the condensed timeline for a shovel -ready project. Task 1 focuses on continuing negotiations with the USACE and USEPA to increase the screening thresholds for several chemicals as a way of increasing the amount of material that can be disposed in the ocean. Task 2 focuses on formally testing the Newport Channel area in an attempt to prove that chemical concentrations have been reduced to a point where that material can also be allowed for ocean disposal. Task 3 is for completing the engineering design of the federal channels for the USACE to use in advancing the project. Task 4 is for permitting and designing a disposal facility for the material not suitable for ocean disposal. Task 5 covers the National Environmental Policy Act (NEPA) evaluation for the federal channels and Task 6 covers the CEQA evaluation for the disposal facility for unsuitable material. Each is described in more detail in the following sections. Task 1: Continued Agency Coordination and Risk Assessment Task 1.1: Continued Coordination and Risk Assessment Anchor QEA will continue coordinating with the DMMT on a sediment suitability determination as well as to evaluate alternative disposal locations for material not determined suitable for open ocean disposal. In support of that effort, we will conduct an ecological risk evaluation to derive protective screening thresholds and document the exposure assumptions, assessment methods, and risk conclusions. The risk evaluation would follow standard Guidelines for an Ecological Risk Assessment 2 and incorporate Ocean Disposal Testing Manual (OTM)3 and Inland Testing Manual (ITM)4 evaluation methods for dredged material proposed for open -ocean disposal to ensure compliance with regulations. The uncertainties around the bioavailability and effect estimates will be summarized in a weight -of evidence framework. The most appropriate screening levels will be selected. 2 USEPA, 1998. Guidelines for Ecological Risk Assessment. USEPA/630/R-95/002F. USEPA, Washington, DC. April 1998. 3 USEPA/USACE, 1991. Evaluation of Dredged Material Proposed for Ocean Disposal — Testing Manual. USEPA 503/8-91/001. USEPA Office of Water (4504F). February 1991. 4 USEPA/USACE, 1998. Evaluation of Dredged Material Proposed for Discharge in Waters of the U.S. — Testing Manual: Inland Testing Manual. USEPA-823-B-94004. USEPA Office of Water (4305). February 1998, Anchor QEA, LLC Page A-4 22-23 Following completion of the assessment, a technical memorandum will be provided to the City that details the risk assessment, including the problem formulation, exposure and effects analyses, risk characterization, and uncertainty assessment. In 2009, Anchor QEA evaluated alternative disposal options within a limited geographic extent to Newport Harbor. Some evaluated options may still be technically feasible, but these options would most likely be publicly opposed and, in our opinion, be very difficult to advance along with being cost prohibitive. In October 2018, Anchor QEA and the City met informally with USEPA to discuss an open -ocean disposal concept. The approach included constructing a confined aquatic disposal (CAD) site of sufficient size to support material in the harbor determined unsuitable and placing a cap layer with the remaining clean dredged material. USEPA`s initial response was that under the Marine Protection, Research, and Sanctuaries Act (also known as the Ocean Dumping Act) disposing of material that would "unreasonably degrade or endanger" human health, welfare, or the marine environment is prohibited within the federal territorial waters. However, the possibility for an in -harbor CAD may be feasible. Additional research and analysis on a suitable CAD location for open -ocean disposal is required, and this task would continue to explore opportunities in coordination with USEPA. Task 2. Newport Channel Sediment Sampling Program Task 2.1: Field Sediment Sampling Anchor QEA will conduct additional sediment sampling at 12 stations (representing up to three dredge units within Newport Channel), as presented and approved during the June 2018 DMMT meeting. Cores will be collected using an electric vibracore to the design depth (-15 feet mean lower low water) plus 2 feet of overdepth. Multiple cores may be required at each station to obtain a sufficient volume for analysis. Individual cores from each station will be submitted for chemical analysis. Reference sediment will be collected from the LA -3 Ocean Dredged Material Disposal Site (ODMDS) reference site and used for comparative purposes to determine suitability for ocean disposal. Site water will be collected and used to create elutriate samples for bioassay testing. This task includes costs associated with mobilization and demobilization of equipment and use of sampling vessels. Task 2.2: Laboratory Analysis Based on the proposed program, 12 discrete samples from individual stations and the LA -3 ODMDS reference sample will be submitted for sediment analysis. Based on the analytical chemistry results, up to three composite samples and the LA -3 ODMDS reference samples will be submitted for biological testing. Z -layer samples (i.e. the remaining material layer after dredging) will be archived to allow for additional analysis if needed. All testing will be performed per OTM and ITM guidelines. Sediment and tissue analyses will be performed by our subcontractor, Eurofins Calscience, Inc., and biological testing will be performed by our subcontractor, Nautilus Environmental. Sediment analyses of discrete samples from individual stations and reference samples will include Anchor QEA, LLC Page A-5 22-24 grain size, total organic carbon, total solids, metals, polycyclic aromatic hydrocarbons (PAHs), PCB congeners, organochlorine (OC) pesticides, organotins, and pyrethroids. Biological testing will include solid phase and suspended particulate phase bioassays and bioaccumulation testing. Upon completion of bioaccumulation testing, tissue samples will be submitted for chemical analysis. The final analyte list for tissue samples will be established based on sediment chemistry results. Anchor QEA will negotiate a reduced analyte list with the DMMT following the initial sediment testing. Based on previous Federal Channel data from early 2018, tissue chemistry includes lipids, mercury, PCBs, and OC pesticides; however, this list is subject to DMMT approval. Anchor QEA will perform data validation to ensure sediment and tissue chemistry meets the project data quality objectives. Task 2.3: Sampling and Analysis Report and DMMT Coordination Anchor QEA will prepare an abbreviated Sampling and Analysis Report (SAR) (or addendum) to document activities associated with collecting, processing, and analyzing sediment samples. The SAR will include chemical and biological results, statistical analyses, QA/QC summaries, and suitability assessments. Chemistry results will be compared to the LA -3 ODMDS reference sediment and appropriate sediment quality guidelines, and biological results will be compared to LA -3 ODMDS reference sediment and appropriate laboratory controls. A project map will note actual sampling locations. Sediment core logs, chain -of -custody forms, laboratory reports, and data validation reports will be included as appendices. Anchor QEA will present the SAR at the DMMT meeting to obtain final concurrence on dredged material suitability. Task 2 Assumptions Assumptions are as follows: • Two Anchor QEA personnel will spend 2 days in the field performing vibracore sampling. • Vibracore sampling will be performed at 12 stations representing up to three composite areas. • Our subcontractor, Leviathan Environmental Services or Marine Taxonomic Services, Ltd., will provide vibracore equipment and a sampling vessel. • The City will provide a location to dock the sampling vessel for the duration of the sampling program (e.g. Balboa Yacht Basin, Marina Park or available mooring) • Our subcontractor, Seaventures, Inc., will collect reference sediment at LA -3 ODMDS by using a pipe dredge. Reference material was collected in January 2018 as part of the City's initial Federal Channel dredging sediment sampling program; however, standard sediment holding times have expired. Anchor QEA, LLC Page A-6 22-25 • Constituents include those typically analyzed for dredged material assessments within the region. • Twelve discrete samples from individual stations and reference sediment will be submitted for sediment chemistry. • Up to three composite samples and reference sediment will be submitted for biological testing. • Z -layer samples will be archived to allow for additional analysis if needed. • Up to 42 tissue samples will be submitted for lipids, mercury, PCBs, and OC pesticides; however, the reduced analyte list is subject to DMMT approval. • Samples will be archived at the chemistry laboratory for 6 months. Task 3: Federal Channel Design Support Anchor QEA will design the limits and extents of dredging in the Federal Channel. We will prepare a dredge cut layout that considers Federal Channel boundaries and the authorized dredge depths. The dredging design will incorporate allowable overdredge depths and stable side slopes to allow removal of sediment materials. The dredging boundaries will adhere to the boundaries developed during past dredging efforts in the Federal Channel. The dredging design documents will also specify the hauling and final disposition of the dredged material in a presumed nearby CAD site (to be designed as part of Task 4). Dredge material volumes will be estimated using existing bathymetric data, and material characteristics will be described using subsurface information gathered during sediment sampling efforts in 2018 and as described in Task 2. Design documents (including technical specifications and construction drawings) will be formatted using the current USACE design document standards and protocol. Task 4: Confined Aquatic Disposal (CAD) Planning and Design Task 4.1: Geotechnical Investigation for CAD Site One of the critical needs for designing a CAD site is an accurate understanding of the subsurface sediment conditions. This is commonly conducted through geotechnical borings. If the City is able to target a CAD location outside or the Harbor, Anchor QEA will conduct geotechnical borings at representative locations at the planned location of the CAD site. We will select a drilling subcontractor and provide oversight and record-keeping during the drilling operation. Borings will be logged, and samples will be sent to a geotechnical laboratory for analysis (e.g. grain size distribution and other geotechnical properties such as Atterberg limits) to provide the necessary parameters for designing the CAD site, conducting slope stability analyses, and modelling of the cap. Borings will also provide information on the type of materials that will be excavated to create the CAD. Anchor QEA, LLC Page A-7 22-26 If siting the CAD outside the Harbor is not feasible, the City will be forced to focus its efforts on locations inside the Harbor. These areas were already tested during previous investigations so sufficient data currently exists and these costs can be eliminated. Task 4.2: CAD Design and Chemical Confinement Analysis Anchor QEA will design the CAD, including selecting and documenting its location, dimensions, and side slopes. Design drawings will incorporate the most recent available bathymetric data performed by the USACE in summer 2018, if available. If not available, we would rely on the survey completed by the USACE in 2017. Anchor QEA will also evaluate the adequacy of the cap to provide long-term isolation of chemicals originating from sediments placed in the CAD site (after being dredged from various locations in the Federal Channels). Long-term chemical transport mechanisms will be evaluated using standard diffusion and porewater flow-through modeling calculations to assess the ability of the cap to prevent breakthrough of key chemical constituents. Hydrodynamic modeling will be used, as appropriate, to evaluate potential scour forces acting on the sediment cap and thereby to determine appropriately stable particle sizes. The scour force evaluation will include assessing wind waves, storm waves, vessel wakes, and/or propeller wash forces from vessels that are expected to travel through the area. This scope of work assumes that acceptable and permittable locations can be readily identified for the CAD site and placement location for material excavated from the CAD. Therefore, we have not budgeted significant time for rigorous review, feasibility analysis, or cost -benefit evaluations for multiple potential sites. Other potential areas of study or analysis that would require additional design budget, if necessary and/or requested by stakeholders or regulatory agencies, could include: • Evaluating deep subsurface groundwater or aquifer layers in the area of the CAD • Protecting against scour forces or vessel propeller wash acting on the CAD surface • Placing material from multiple locations (other than Newport Harbor) within the CAD site • Integrating habitat substrate or public access features at CAD site surface or at excavated material placement location • Performing a structural analyses for features in the near vicinity of the CAD site or the excavated material placement location Task 5: USA CE Environmental Assessment and Regulatory Permitting Anchor QEA, LLC Page A-8 22-27 To facilitate the project proceeding in an efficient manner and under a very tight timeline, Anchor QEA proposes supporting USACE with development of the National Environmental Policy Act (NEPA) draft Environmental Assessment (EA) and providing drafts of regulatory permit applications and supporting letters. Task 5.1: USACE Environmental Assessment USACE is the lead federal agency for maintenance dredging occurring within the Federal Channel. In collaboration with USACE, Anchor QEA will develop a draft NEPA EA for use by USACE. Development of the draft will heavily rely on the Corps' previous EA used for the 2012 Federal Channel dredging effort. The EA will focus both on the actual maintenance dredging function as well as alternate disposal options for material determined not suitable for open -ocean disposal. The alternate disposal location assessment will defer to technical studies and analysis completed as part of Task 4 and as part of the City's environmental analysis presented in Task 6. Task 5.2: USACE Maintenance Dredging Regulatory Permits Regulatory permits described in this task include only approvals for the actual maintenance dredging within Newport Harbor. Permits associated with construction, disposal, and long-term monitoring of CAD are presented in Task 6. Regulatory approvals for maintenance dredging are required under Section 401 of the Clean Water Act and Federal Consistency review. Anchor QEA will prepare a California Coastal Commission (CCC) Federal Consistency letter for USACE and a draft application for submittal to the Regional Water Quality Control Board (RWQCB). USACE is the lead federal agency under NEPA and will handle all communications with the other regulatory and resource agencies. USACE does not issue itself an actual approval; however, consultation with other resource agencies is completed as part of the project's environmental planning process. Anchor QEA will prepare drafts of the following documents to support this consultation: • Essential Fish Habitat Assessment Report and cover letter to support consultation with the National Marine Fisheries Service (NMFS) • Endangered Species Act and Marine Mammal Protection Act Compliance Report and cover letter to support consultation with the U.S. Fish and Wildlife Service and NMFS • Section 106 Consultation letter to the State Historic Preservation Officer Task 5 Assumptions Assumptions are as follows: • USACE will provide a Word file of the 2011 EA (dated September 2011). • USACE will identify alternatives to be evaluated under the EA. Anchor QEA, LLC Page A-9 22-28 • Consistent with the 2012 Federal Channel dredging effort, USACE will issue a Finding of No Significant Impact (FONSI). If a more robust NEPA environmental review is required, then a new scope of work would be submitted. • Anchor QEA will assist in responding to one round of internal and public USACE review comments. • USACE will be responsible for finalizing the draft documents, posting it online for public input, responding to public comments, and developing a final draft and decision document. • The EA will rely solely on the results of 2016 harbor -wide eelgrass survey data (both deep and shallow water) and a partial shallow water eelgrass survey completed in summer/fall 2018 (shallow water only). No new surveys are proposed. • An assessment of impacts to eelgrass will be coordinated with USACE. Development of an eelgrass mitigation plan, if required, is not included in this scope of work. • Draft letters and permit applications will be provided to USACE to initiate review with other resource and regulatory agencies. • Anchor QEA will assist USACE in responding to up to two rounds of agency comments. • No new technical reports are included in this scope of work. Task 6: City of Newport Beach Environmental Document and Regulatory Permitting For CAD The City will be the lead agency under the California Environmental Quality Act (CEQA) and will be responsible for complying with CEQA and securing all regulatory agency approvals for construction and long-term monitoring of the CAD site. Task 6.1: CEQA Compliance Anchor QEA will work closely with the City's Planning Department to develop the project description, alternatives to be evaluated, and the project schedule. The project description will identify project objectives, describe construction means and methods, and provide a list of permits and approvals required to implement the project. Anchor QEA will coordinate with the City to determine whether a public scoping meeting is appropriate or not. Given the unique characteristics of the project, we believe a scoping meeting will be beneficial and have incorporated budget to support this effort. If the initial study reveals that no significant impacts would result with mitigation measures, we will prepare an Initial Study (IS) and Mitigated Negative Declaration (MND) to comply with CEQA requirements. We will prepare an Administrative Draft IS/MND, Anchor QEA, LLC Page A-10 22-29 incorporate City comments in the Administrative Draft IS/MND, produce a Public Draft IS/MND, and facilitate publication of the Notice of Availability (NOA) of the Public Draft IS/MND. Following completion of the public review period, we will assist the City in revising the IS/MND in response to comments received to produce the Final IS/MND for City approval. Following completion of the preliminary CAD design (described in Task 4), CEQA compliance is anticipated to take approximately 6 to 9 months. However, maintaining this timeline is contingent on the City's commitment to adhere to tight timelines and extent of public comments. Task 6.2: CAD Regulatory Agency Permits CAD construction will likely require permits from USACE, RWQCB, CCC, and California State Lands Commission (CSLC). Permit applications are typically prepared using preliminary (30%) designs. Obtaining all regulatory approvals is anticipated to take approximately 9 to 12 months from the time the preliminary design is available for use in assembling permit application packages; however, the final duration of the permit process and decision for issuing the permit is dependent on the agencies. To accomplish the permitting needs for this project, Anchor QEA proposes to start with a pre -application meeting with regulatory agency representatives (including continued coordination with USEPA as described in Task 1). This meeting must occur sufficiently early in the process to allow time to submit all permit applications. One key goal of the pre -application meeting is to discuss submission of the permit applications before the CEQA process is complete. Typically, we recommend submitting the permit applications shortly after receiving any comments from the public review period; however, given the tight timeline of this project, submitting applications prior to the CEQA public notice may not be feasible. Rather, the approach is to submit shortly after initial outreach meetings with key stakeholders or following the public scoping meeting. Although there is risk in submitting this early in the CEQA process, this approach may expedite the regulatory application submission dates and the overall environmental timeline. Submitting at this point in the CEQA process will be confirmed with the agencies during the pre -application meetings. Senior City staff and officials will be involved in these pre - application meetings with the agencies to demonstration the importance and time sensitive nature of the projects. The pre -application meeting will also serve as an opportunity to discuss the Project's approach and to solicit agency feedback. This communication is extremely valuable for educating agency staff about the importance of the project and for developing more robust applications that address the specific needs of the agencies. We have assumed two in-person meetings with participation from each agency. Two Anchor QEA staff will participate in the meeting to address engineering -related questions and permitting topics. Following the meeting, minutes will be assembled and distributed to all agency attendees. We will make every attempt to coordinate a single meeting with all representative agencies but have assumed and budgeted for two meetings due to the agencies' schedules. Anticipated permits are as follows: Anchor QEA, LLC Page A-11 22-30 • Coastal Development Permit: Anchor QEA will prepare a Coastal Development Permit application for submittal to the CCC. We will act as the City's representative and respond to additional information requests from CCC staff and public comments. To help expedite the review process, we could prepare a draft CCC Staff Report. This approach has shown to save considerable time, as exemplified by the Rhine Channel Sediment Cleanup. Anchor QEA will attend the Coastal Commission hearing once the project is agenized. • Standard Individual Permit: USACE will be the lead agency for the Rivers and Harbors Act Section 10 and Clean Water Act Section 404 permits as well as associated consultations for Endangered Species Act/Essential Fish Habitat (ESAIEFH). A Standard Individual Permit from USACE will likely be the appropriate permit for the project. Anchor QEA will prepare an application, a draft public notice, supporting ESAIEFH information for use by USACE, and a draft NEPA EA for the USACE Regulatory Division. • Clean Water Act Section 401 Water Quality Certification: A Clean Water Act Section 401 Water Quality Certification (WQC) will be required by the Santa Ana RWQCB. Anchor QEA will prepare a Section 401 WQC application for submittal to the RWQCB and respond to requests for information from RWQCB staff. Water quality studies, including field monitoring efforts during construction, are not included in this scope of work_ • Surface Lease Agreement: Anchor QEA will prepare a Surface Lease Agreement application for submittal to the CSLC and respond to requests for information from CSLC staff. Task 6 Assumptions Assumptions are as follows: • Anchor QEA will manage a biological survey of the proposed CAD site. • Anchor QEA will provide support to the City in management of all CEQA administrative tasks, including the preparation of mailings and notices. • Anchor QEA will prepare an Administrative Draft, Public Draft, and Final IS/MND. • Anchor QEA will attend two City Council meetings on the IS/MND, as needed. • Anchor QEA will attend up to four meetings with the City at critical parts of the CEQA process. • Costs of reproduction and mailing will be paid by the City and are not included in this scope of work. • Document filing fees, permit application fees, and newspaper advertising fees will be paid directly by the City and are not included in this scope of work. If requested, Anchor QEA, LLC Page A-12 22-31 and to save time, Anchor QEA could cover the application filing fees and then submit as a reimbursement expense to the City. • Any additional reporting or long-term monitoring, including specific permit compliance conditions, is not included in this scope of work. Attachments Figure 1 - Comparison of 2017 Harborwide Bathymetric Survey to Authorized Design Depths Anchor QEA, LLC Page A-13 22-32 I '--��-. Maira ChmiaeTNotth-29 Ali I -ti d;rw I _ L Newport Chanted -t5 -� - West Lido Ar -B-10 Bay It Land -15 cert auMt+may r>pruryu ae oa.�utr ncvacira.a ra. r ANCHOR � QZrAA Bay Eland -10 '' Main Channel 5anth -to a Channel -10 r, �1 1 001-1- bM— E..Iln Bathynretry (B—) .,rd Authorized Depth IConeparisonl D..qn E3—t. on 9elow Co Bathy Itt1 Ar cr Aho t E.song ELarhy 001-1.0 •1010.20 -20 t0-30 �0 to -50 _50., ■ 0 0 1,:00 L� E.U.— Ch—el -20 AER At SOURCE: B,rsg Maps 2015 SURVEY SOURCE- US Amry Cups d EOgo— -y dared J m 2017. Dredge depths aW 6—"'.ns Itom US. A," Cops 0!EK'net" HORIZONTAL DATUM: C Y ma Stat+plane. .:ane 6. NADU U S. Feet VERTICAL DATUK-M63, L, 1v Lv Water Figure 1 Comparison of 2057 Harhonvide BathymetriC Survey to Authorized Design Depths I— r4,;.n Bay FWval Ctunrxis Dredgug 22-33 !A NIM111:1 SCHEDULE OF BILLING RATES ANCHOR QEA, LLC — Engineering and Planning Support for Lower Newport Bay Federal Channel Maintenance Dredging Program Task Description Estimated Cost 1 Continued Agency Coordination and Risk Assessment $30,000 2 Newport Channel Sediment Sampling Program $155,000 3 Federal Channel Design Support $150,000 4 1 Confined Aquatic Disposal Planning and Design $130,000 5 USACE Environmental Assessment and Regulatory Permitting $137,000 6 City of Newport Beach Environmental Document and Regulatory Permitting $175,000 Total $777,000 Anchor QEA, LLC Page B-1 22.34 Anchor QEA, LLC 010-314l>11l4,12Y11111131IN] ilk [0A-111 IV Professional Level Hourly Rates Principal................................................................................................................................................................................. $256 SeniorManager.................................................................................................................................................................. $229 Manager................................................................................................................................................................................ $213 SeniorStaff........................................................................................................................................................................... $190 Staff3 .............. ...................................................................................... ........ ......... ............................................................... $167 Staff2..................................................................................................................................................................................... $149 Staff1................................................................................................................................................................ . .................... $126 SeniorCAD' Designer...................................................................................................................................................... $132 CADDesigner...................................................................................................................................................................... $110 Technician............................................................................................................................................................................ $107 SeniorTechnical Editor.................................................................................................................................................... $130 TechnicalEditor.................................................................................................................................................................. 5110 Senior Project Coordinator............................................................................................................................................ $124 ProjectCoordinator.......................................................................................................................................................... $106 Special Hourly Rates Nationalexpert consultant............................................................................................................................................ $424 All work by a testifying expert .................................................................................1.5 times professional level rate EXPENSE BILLING RATES Expense Rates ComputerModeling (per hour)................................................................................................................................$10.00 Graphic Plots (varies with plot size).................................................................................................................... $3-$6/sf Mileage (per mile) ................................................ .......Current Federal Standard ......................................................... FEE ON LABOR AND EXPENSE CHARGES Subcontracts/subconsultants.........................................................................................................................................10% Travel and other direct costs..........................................................................................................................................10% Fieldequipment and supplies........................................................................................................................................10% CAD: Computer Aided Design Anchor QEA, LLC Page B-2 22-35 EXHIBIT C INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES 1. Provision of Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existing coverage to comply and that coverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement. B. General Liability Insurance. Consultant shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Anchor QEA, LLC Page C-1 22-36 Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. D. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and two million dollars ($2,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation (except for nonpayment for which ten (10) calendar days' notice is required) or nonrenewal of coverage for each required coverage_ 5. Additional Agreements Between the Parties. The parties hereby agree to the following: Anchor QEA, LLC Page C-2 22-37 A. Evidence of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant sixty (60) calendar days' advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation. C. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. D. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. E. Self-insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. F. City Remedies for Non -Compliance. If Consultant or any subconsultant fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand. Anchor QEA, LLC Page C-3 22-38 G. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. H. Consultant's Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Anchor QEA, LLC Page C-4 22-39 ATTACHMENT B City of Newport Beach BUDGET AMENDMENT 2018-19 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations X Transfer Budget Appropriations SOURCE: X from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 19BA-023 AMOUNT:J $677,000.00 This budget amendment is requested to provide for the following: To increase expenditure appropriations from Tidelands Capital unappropriated fund balance and transfer funds from the cancelled Habor Port Plan to be used for the Harbor wide Dredging/Planning proiect. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 101 300000 REVENUE ESTIMATES Org Object Project Description Tidelands Fund Balance Descripti EXPENDITURE APPROPRIATIONS 0 rg Object Project Description 10101 980000 19H13 Tideland Capital - Harbor Port Plan 10101 980000 18H07 Tideland Capital - Harbor Dredging Signed: Signed Fiihaa6ial Approval: - Finance Di City Council Approval: City Clerk Amount Debit Credit $377,000.00 $300,000.00 * Automatic $677,000.00 11-ICy,- l(2 Date Date 22-40 Increase in Budgetary Fund Balance ANDX Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? FXI Yes No This budget amendment is requested to provide for the following: To increase expenditure appropriations from Tidelands Capital unappropriated fund balance and transfer funds from the cancelled Habor Port Plan to be used for the Harbor wide Dredging/Planning proiect. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 101 300000 REVENUE ESTIMATES Org Object Project Description Tidelands Fund Balance Descripti EXPENDITURE APPROPRIATIONS 0 rg Object Project Description 10101 980000 19H13 Tideland Capital - Harbor Port Plan 10101 980000 18H07 Tideland Capital - Harbor Dredging Signed: Signed Fiihaa6ial Approval: - Finance Di City Council Approval: City Clerk Amount Debit Credit $377,000.00 $300,000.00 * Automatic $677,000.00 11-ICy,- l(2 Date Date 22-40