HomeMy WebLinkAbout14 - MOA Authorizing Disposal of Lower Bay Dredged Material Into the Port's Pier G Slip Fill ProjectQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
January 14, 2025
Agenda Item No. 14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Chris Miller, Public Works Administrative Manager - 949-644-3043,
cmiller@newportbeachca.gov
TITLE: Memorandum of Agreement with the City of Long Beach Acting By
and Through the Port of Long Beach Board of Harbor Commissioners
Authorizing Disposal of Lower Bay Dredged Material Into the Port's
Pier G Slip Fill Project
ABSTRACT:
The federal government, via the U.S. Army Corps of Engineers, is planning a dredging
project within Newport Harbor. The City of Newport Beach, acting as the local sponsor
for the project, is responsible for identifying a disposal location for dredged material that
is deemed unsuitable for open ocean disposal. To that end, the City certified an
Environmental Impact Report to construct a Confined Aquatic Disposal site within
Newport Harbor and obtained the necessary entitlements to place the dredged material
within that site. However, the project was paused while the U.S. Army Corps of Engineers
refined its environmental analysis. In the meantime, City staff continued to look for an
alternative disposal solution in addition to the planned Confined Aquatic Disposal.
As a result, an opportunity to dispose unsuitable material within the Port of Long Beach's
Pier G Slip Fill Project emerged, and the City and the U.S. Army Corps of Engineers are
now preparing to use this alternate disposal site. Therefore, the Port of Long Beach
requires a Memorandum of Agreement with the City prior to the disposal of dredged
material from Newport Harbor in the Pier G Slip Fill Project.
RECOMMENDATIONS:
a) Find that, pursuant to Section 21166 of the California Public Resources Code and
Section 15162 of the CEQA Guidelines, the certified Environmental Impact Report for
the Piers G and J Terminal Redevelopment (SCH No. 2000-021021) addressed all
environmental impacts associated with the City of Newport Beach entering into this
Memorandum of Agreement, that there are no new or more severe impacts beyond
those analyzed in that document, and, as a result, no further environmental review is
required by CEQA;
b) Approve and execute the Memorandum of Agreement with the City of Long Beach
acting by and through the Port of Long Beach Board of Harbor Commissioners
authorizing disposal of Lower Bay dredged material into the Port's Pier G Slip Fill
Project; and
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Memorandum of Agreement with the City of Long Beach Authorizing Disposal of
Lower Bay Dredged Material Into the Port's Pier G Slip Fill Project
January 14, 2025
Page 2
c) Authorize the City Manager or her designee to execute any future amendments or
agreements with the City of Long Beach acting by and through the Port of Long Beach
Board of Harbor Commissioners as related to the disposal of Lower Bay dredged
material to ensure the City of Newport Beach meets the strict delivery schedule
imposed by the Port.
DISCUSSION:
Newport Harbor is one of the largest recreational harbors in the United States. Natural
processes of storm water and erosion flowing into the harbor, primarily from
San Diego Creek, result in the movement and accumulation of sediment which must be
periodically dredged to maintain the federally authorized channel depths for safe
navigation. The Federal Channels extend from the Entrance Channel to the Turning Basin
(adjacent to the Newport Boulevard Bridge), and from the east anchorage between
Bay Island and Lido Isle to the Marina Park area. These channels are the responsibility
of and are maintained by the federal government via the U.S. Army Corps of Engineers
(USACE).
In 2022, the City contributed $10 million towards the Confined Aquatic Disposal (CAD),
representing approximately 50% of the overall cost. USACE has funded the remaining
50% of the CAD, and continues to seek additional funds through the USACE federal work
plan request process.
Sediment studies are conducted to evaluate disposal options as required by the
regulatory and resource agencies. The recent sediment sampling effort conducted in
September 2024 determined that most of the material (745,000 cubic yards) in
Newport Harbor is suitable for disposal at the federally authorized ocean disposal site
located six miles from the Entrance Channel. The remaining material (approximately
191,000 cubic yards) is unsuitable for open ocean disposal; therefore, it is the City's
responsibility as the local sponsor to identify a disposal location.
In 2021, the City determined that construction of a CAD in Newport Harbor was the most
feasible and cost-effective option available at the time for disposal of unsuitable material.
Therefore, the City Council certified Environmental Impact Report (EIR)
No. EIR2021-001, and all entitlements were secured for the CAD in 2022 and 2023.
However, in 2023, USACE suspended the City's CAD permit so USACE could refine its
federal environmental analysis.
In the meantime, City staff initiated discussions with the Port of Long Beach (POLB) to
explore disposal options within its Pier G Slip Fill Project (Pier G Project). The
Pier G Project includes the reconfiguring of the Pier G South Slip, which requires filling
an existing container ship slip to create more land -based storage.
The POLB and the terminal operator tenant had originally planned that 100% of the
required fill material for the Pier G Project would be from existing locations within the port
complex with no external sources of material required to complete the Pier G Project.
However, earlier this year after further discussion with the POLB, the POLB agreed to
provide capacity of up to 225,000 cubic yards of material from Newport Harbor within the
Pier G Project. This is a strategically unique opportunity for the City, and it represents an
ideal option for material disposal that was otherwise not available.
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Memorandum of Agreement with the City of Long Beach Authorizing Disposal of
Lower Bay Dredged Material Into the Port's Pier G Slip Fill Project
January 14, 2025
Page 3
For reference, in 2011 and 2012, the POLB and the City collaborated in the same manner
when the POLB's Middle Harbor Fill Project was underway. Material from the
City's Rhine Channel as well as material from Phase I of the Lower Bay Federal Dredging
Project was disposed at the POLB via daily tugboat and disposal scow round trips. This
same process will be used to deliver material from the current Lower Bay Project to the
Pier G Project.
The POLB has obtained all necessary regulatory agency approvals for the Pier G Project
to be used as a placement site for the Newport Bay material. However, before disposal
can commence, the POLB requires a Memorandum of Agreement (MOA) to be executed
between the two parties. Should the City Council approve the MOA, the POLB Harbor
Commissioners will consider approval and execution at their January 27, 2025 meeting.
The attached agreement has been reviewed and approved as to form by the City
Attorney's Office, and the deal points therein are considered reasonable to both parties.
It is noted, however, that timing is critical. The disposal window to transport material to
the POLB is extremely tight, with a current delivery timeline between approximately
May 2025 to October 2025, or until an underwater containment dike at Pier G precludes
safe navigation for the tugboat and disposal scow. Therefore, the City and USACE are
diligently working together to ensure that project planning is completed on time, and the
project is bid and awarded with dredging commencing approximately May 2025.
Currently, the project is positively tracking towards those goals. However, should this
alternative disposal at the POLB not materialize or fall short of the disposal goals, the City
would resume efforts to continue proceeding with the original CAD option.
:9 k*Ta±M I M 1 :7±« 6
The Lower Bay Dredging Project is estimated to cost approximately $20 million. Of this
amount, approximately $10 million will be paid by the federal government which is also
seeking additional funds via the USACE federal work plan requests. In 2022, the City
contributed $10 million, which was expensed to the Tidelands Capital Fund in the
Public Works Department, Account Nos. 10101-980000-18H07 and 10101-980000-
22H07. The Tidelands Capital Fund was created to allow for the sequestration of
incremental increases from tidelands rent adjustments solely to finance critical in -harbor
capital improvements like seawall repairs, piers and dredging. The City's contributed
funds are currently with USACE and are immediately available.
In addition, the County has expressed interest in, but has not yet committed to,
contributing approximately $2 million to reimburse the City for dredging within
County tidelands. The City will commence negotiations with the County after the project
has been awarded and is in progress.
ENVIRONMENTAL REVIEW:
Pursuant to Section 21166 of the California Public Resources Code and Section 15162
of the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines),
when an EIR has been certified for a project, no subsequent EIR is required unless the
lead agency determines, on the basis of substantial evidence in the light of the whole
record, one or more of the following:
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Memorandum of Agreement with the City of Long Beach Authorizing Disposal of
Lower Bay Dredged Material Into the Port's Pier G Slip Fill Project
January 14, 2025
Page 4
a. Substantial changes are proposed in the project which will require major
revisions of the previous EIR due to the involvement of new significant
environmental effects or a substantial increase in the severity of previously
identified significant effects;
b. Substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous EIR due
to the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects; or
c. New information of substantial importance, which was not known and could not
have been known with the exercise of reasonable diligence at the time the
previous EIR was certified as complete, shows any of the following:
i. The project will have one or more significant effects not discussed in the
previous EIR;
ii. Significant effects previously examined will be substantially more severe
than shown in the previous EIR;
iii. Mitigation measures or alternatives previously found not to be feasible
would in fact be feasible and would substantially reduce one or more
significant effects of the Project, but the Project proponents decline to
adopt the mitigation measure or alternative; or
iv. Mitigation measures or alternatives which are considerably different from
those analyzed in the previous EIR would substantially reduce one or more
significant effects on the environment, but the project proponents decline
to adopt the mitigation measure or alternative.
The POLB certified the Environmental Impact Report EIR for the Piers G and J Terminal
Development (SCH No. 2000-021021), which is attached hereto as Attachment B and
incorporated herein by reference.
The EIR was prepared in compliance with California Public Resources Code Section
21000 et seq. and its implementing State regulations set forth in the CEQA Guidelines.
The EIR analyzed the potential impacts of the Pier G Project which consists of filling an
existing container ship slip to create more land -based storage with 2,550,000 cubic yards
of dredged material. Inclusion of as much as 225,000 cubic yards of dredged material
from the USACE project within the Pier G Project does not result in a substantial change
to the project that will require major revisions to the EIR, does not result in substantial
changes to the circumstances under which the project is undertaken that would require
major revisions to the EIR, nor constitute new information. Therefore, in accordance with
Section 21166 of the California Public Resources Code and Section 15162 of the CEQA
Guidelines, the adoption of the MCA does not require additional environmental review.
14-4
Memorandum of Agreement with the City of Long Beach Authorizing Disposal of
Lower Bay Dredged Material Into the Port's Pier G Slip Fill Project
January 14, 2025
Page 5
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 — Memorandum of Agreement with the Port of Long Beach
Attachment B — Web Link to Environmental Impact Report for Piers G & J Terminal
Development (SCH 2O00-021021)
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ATTACHMENT A
MEMORANDUM OF AGREEMENT
BY AND BETWEEN
THE CITY OF LONG BEACH,
ACTING BY AND THROUGH ITS
BOARD OF HARBOR COMMISSIONERS
AND THE CITY OF NEWPORT BEACH
THIS MEMORANDUM OF AGREEMENT ("MOX) is made and entered into, in duplicate,
as of the date executed by the Chief Executive Officer of the Long Beach Harbor
Department ("Chief Executive"), by and between the CITY OF LONG BEACH, a California
municipal corporation and charter city, acting by and through its Board of Harbor
Commissioners ("Port") pursuant to authority granted by said Board at its meeting of
, 202_; and the CITY OF NEWPORT BEACH, a California municipal
corporation and charter city ("City").
RECITALS:
WHEREAS, the Port owns land and water areas within the City of Long Beach Harbor
District known as Pier G;
WHEREAS the Port is undertaking a project that will, among other things, reconfigure the
Pier G South Slip ("the Project"), as depicted in Exhibit "A" attached hereto;
WHEREAS, the Port anticipates it will satisfy most of its fill material needs from materials
generated by the Project, but in the interest of advancing the regional policy of
encouraging the beneficial reuse of dredge material, the Port will endeavor to accept
dredge material from sources other than the Port by allowing that material to augment the
Port's fill material needs;
WHEREAS any import of fill material from outside the Project limits or the City of Long
Beach Harbor District shall be subject to the Port's fill material criteria, as well as the
logistical, technical, and environmental requirements of the Project, and must comply with
all applicable laws, rules, regulations, requirements, licenses, permits, and orders, as may
be amended from time to time-,
WHEREAS, the City is a grantee of state tidelands and desires to dredge and remove
approximately 225,000 cubic yards of material from the Lower Newport Bay channels
("Newport Bay Material");
01754706.DOCX A24-03370
MEMORANDUM OF AGREEMENT [12-05-2024] PIER G SLIP FILL — CITY OF NEWPORT BEACH [SNL/arh]
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WHEREAS, while the City is the local, non-federal sponsor for the Lower Newport Bay
Maintenance Dredging Project and holds the responsibility for providing a disposal
location for the dredged material, the dredging contract will be managed and executed by
the U.S. Army Corps of Engineers, Los Angeles District, through the authority granted in
the Rivers and Harbors Act of 1945 authorizing the Newport Bay Harbor federal project;
WHEREAS, some of the Newport Bay Material has been determined by regulatory
agencies to be unsuitable for unconfined open ocean disposal;
WHEREAS, the Project is available for placement of unsuitable material, and the Port
and City desire to use the Project site for the placement of the Newport Bay Material;
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions
hereinafter contained, the Port and City agree as follows:
1. The above recitals are true and correct.
2. The Port has obtained all necessary regulatory agency approvals for the
Project to be used as a placement site for the Newport Bay Material.
3. The Port shall allow the City, without anyfurther agreement, permit, or
easement from the Port, to place up to 225,000 cubic yards of Newport Bay Material
at the Project site. The Port shall not impose anyfee orcharge, orotherwise require
any payment from the City, for placement of that material. The City's placement of
dredge material shall be subject to all applicable conditions imposed by the
aforementioned regulatory agencies.
4. In the event that the funding for the City's dredging project is insufficient, or
if for any other reason, the City cannot deliver some or all of the 225,000 cubic yards of
Newport Bay Material to the Project, the Port will be solely responsible for making up any
deficit with its own material, and the Port shall hold the City harmless from any costs
incurred by the Port as a result, thereof.
5. The City recognizes that time is of the essence in the Project schedule and
agrees to place the Newport Bay Material at the Project at the locations and within the
time frames specified by the Port. It is agreed by the City that placement of the Newport
Bay Material shall be completed before the elevation in the Project fill reaches -10 feet
Mean Lower Low Water. If the City cannot deliver the Newport Bay Material to the Project
within the time frame specified by the Port, or if the City shall seek other disposal options,
this Agreement shall be automatically terminated, and the City shall hold the Port
harmless with respect to any costs incurred by the City as a result of such termination.
2
01754706.DOCX A24-03370
MEMORANDUM OF AGREEMENT [12-05-2024] PIER G SLIP FILL — CITY OF NEWPORT BEACH [SNL/arh]
14-7
6. The City agrees to indemnify, defend and hold harmless the Port
and its agents, officers and employees, from and against any and all liability,
expense, including defense costs and legal fees and claims arising from the City's
placement of Newport Bay Material and performance of its obligations under this
Agreement. The obligations assumed by the parties in this section shall survive the
termination of this Agreement, whether by expiration or otherwise.
7. Any notice, demand, request or formal communication required or
authorized by this Agreement to be given or made to or upon either of the parties to
this Agreement shall be deemed properly given or made if delivered, by registered
mail postage prepaid, or email to each of the following:
Port:
Port of Long Beach
Attn: Deepen Upadhyay, Senior Program Manager
P.O. Box 570
Long Beach, CA 90801
Deepen. Upad hyav(a-)-polb.com
City:
City of Newport Beach
Public Works Department
Attn: Chris Miller
100 Civic Center Drive
Newport Beach, CA 92660
cmiller@newportbeachca.gov
8. This Agreement shall terminate upon the occurrence of either: (1) the
successful completion of the proposed construction project using the Project as the
placement site for the Newport Bay Material; or (2) the commencement of the placement
of the Newport Bay Material at a site other than the Project. The foregoing
notwithstanding, either party hereto may terminate this Agreement for a material breach
of this Agreement by giving written notice to the other party ninety (90) days prior to the
effective date of such termination.
[Signatures on following page]
3
01754706.DOCX
MEMORANDUM OF AGREEMENT [12-05-2024]
A24-03370
PIER G SLIP FILL — CITY OF NEWPORT BEACH [SNL/arh]
14-8
, 2024 By:
Name:
Leilani Brown
Title:
City Clerk
2024 By:
Name:
Aaron Harp
Title:
Cit to
, 2024 By:
Name:
Joe Stapleton
Title:
Mayor
, 2024 By:
CITY OF NEWPORT BEACH, a municipal
corporation
CITY OF LONG BEACH, a municipal
corporation, acting by and through its
Board of Harbor Commissioners
Mario Cordero
Chief Executive Officer
Long Beach Harbor Department
The foregoing document is hereby approved as to form.
DAWN MCINTOSH, City Attorney
, 2024 By:
Sudhir N. Lay, Deputy
4
01754706. DOCX
MEMORANDUM OF AGREEMENT [12-05-2024]
A24-03370
PIER G SLIP FILL— CITY OF NEWPORT BEACH [SNUarh]
14-9
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Attachment B - Environmental Impact Report for Piers G & J Terminal Development
(SCH 2O00-021021) files located within the following link:
https://polb.com/documents/#cega-nepa
14-11