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Home My WebLink AboutS19 - Big Canyon Creek Restoration ProjectCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. S19 November 9, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 9491644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Big Canyon Creek Restoration Project — Phase II (State Coastal Conservancy Grant Portion) ISSUE: With notification of the recent receipt of a $500,000 grant for the Big Canyon Creek Restoration Project from the State Coastal Conservancy (SCC), should the City accept the grant and amend its existing contract with Community Conservancy International 10 (CCI) to complete the planning associated with the Project? RECOMMENDATIONS: 1. Direct the staff to accept a grant from the State Coastal Conservancy (SCC) in the amount of $500,000 for the Big Canyon Restoration Project, Phase 11 (Planning, Engineering, and Construction Drawings); 2. Authorize the City Manager to amend an existing Professional Services Agreement with Community Conservancy International (CCI) to reflect the SCC grant and the Phase II Scope of Work. DISCUSSION: Background: Newport Bay is Newport Beach's most treasured environmental asset. From the ecological reserve and parkland in the Upper Bay to the boating, residential, and visitor - serving uses in the Lower Bay, Newport Bay is home to six endangered species, the nation's largest small craft harbor, tour and charter boat operations, more than sixty different commercial ventures, rowing clubs, yacht races, millions of visitors annually, and more. Upper Newport Bay — including its ecological reserve (administered by the California Department of Fish and Game), its regional park (administered by the County of Orange) and the access provided by Back Bay Drive (administered by the City) — is one of California's more challenging resources to manage and protect. Several major and Big Canyon Creek Restoration Project— SCC Grant November 9, 2004 Page 2 complex Upper Bay projects involving a multitude of agencies are underway today, including: Upper Newport Bay Ecological Restoration Project. This US Army Corps of Engineers -led (US ACE) study is the "Big Dredge" set for Fall 2004. The dredging project will be about three times as large as the last dredging project, with up to $13.5 million in funds coming from Proposition 12 (approved by the voters in March 2000) and another $20 million from the federal government. This $33.5 million project is cost - shared 65 % -35% between the federal government and state/local partners. Newport Bay /San Diego Creek Watershed Feasibility Study. This US ACE -led Study looks at ways to reduce sediment and nutrient deposits in the Upper Bay by keeping the sediment at its source. The Study is identifying locations in the San Diego Creek watershed that will catch sediment, treat runoff (in part via the IRWD's Natural Treatment System or "NTS" project), and preserve and restore habitat. Sediment/Nutrient TMDL Compliance. To comply with recently- adopted total maximum daily loads (TMDLs) that limit sediment and nutrients into the Bay, the City helps fund ongoing monitoring and maintenance of upstream environments to meet the TMDLs' limits. Even with these three major efforts, the Upper Bay still faces significant problems relating to the region's heavy use of the Bay as a park, reserve, and local resource. These problems include: • Erosion of the City-, County-, and privately -owned slopes that abut the Bay; • Infestation by non - native plants; • Increased threats to endangered, threatened and species of concern; • Continued serious loss of wetland, saltmarsh, mudflat and transitional habitats; • Trespassing and vandalism in sensitive areas due to a lack of appropriate public access; and • Inputs of contaminated runoff from Bay- adjacent residential and business areas. About CCI. Aware of these concerns, representatives of the Newport Bay Naturalists and Friends discussed Upper Newport Bay's challenges with Community Conservancy International (www.ccint.org). CCI describes itself as "a non - profit organization dedicated to preserving natural lands and waters worldwide and implementing conservation- compatible projects to protect local communities..." CCI recently advocated and planned for two square miles of park and open space in the Baldwin Hills (near Ballona Creek in southwestern Los Angeles). CCI succeeded in securing $36 million in state funding for the Baldwin Hills. The Restoration Proiect. CCI has focused its attention on Big Canyon Creek, a drainage that receives runoff from two square miles of primarily urbanized watershed, the Big Canyon Country Club and adjacent residences, and that runs through the 58- acre Big Canyon Nature Park, a City park. 0 Big Canyon Creek Restoration Project— SCC Grant November 9, 2004 Page 3 The City Council approved planning funding for the Project — called the Big Canyon Creek Restoration Project — on January 14, 2003. The Project addresses: • A restoration plan for wetlands and wetlands - related habitats • The needs of endangered and threatened species • Unfiltered urban runoff and impacts on Bay water quality • Drainage needs of golf course, City storm drains and bluffside homes • Public access and connection to Big Canyon Nature Park • Flood prevention • Public agency needs and concerns Big Canyon Creek Area After receiving Council authorization to do so via Resolution 2002 -15 on January 22, 2002, Ms. Feldman and the City jointly applied to the State Coastal Conservancy, via its Southern California Wetlands Recovery Project ( SCWRP), for a grant to complete Phase I of the Project (Planning and Technical Studies). On October 31, 2002, the SCWRP approved a grant of $167,000 for Phase I. The City matched the grant with $110,000 from the Upper Newport Bay Restoration Account. Another $27,000 in in -kind support came from the Newport Bay Naturalists and Friends and from CCI itself. About the Upper Newport Bay Restoration Account. State law and other regulatory agencies (including SB 576 [Johnson] and the National Marine Fisheries Service or M"NMFS ") direct the City to reserve a portion of the revenue it receives from the 489984 1 Big Canyon Creek Restoration Project— SCC Grant November 9, 2004 Page 4 residences at Beacon Bay as well as mitigation for Lower Bay dockwork for restoration projects in the Bay. These funds go into an account called the Upper Newport Bay Restoration Account. At the end of June 2092, there was $238,822.39 in this Account (technically a designation of equity within the Tidelands Fund, #230- 3755). Phase I Work. CCI completed a majority of the Project's Phase One work in Fall 2003. The culmination of the work included public meetings and a consensus by various resources agencies that one identified alternative — called the Historic Tidal Wetlands Alternative — is the project alternative that should provide the best habitat value for Big Canyon Creek. A schematic of the Alternative is Attachment A. What's in Phase II. Phase II continues planning and design work for the Project with the Historic Tidal Wetlands Alternative. Phase II includes a comprehensive study of water quality and hydrology concerns in Big Canyon Creek and the additional public outreach, planning, engineering, and construction drawings required to bring the proposed Project to physical construction. Funding. Earlier in 2004, the State Water Resources Control Board awarded $200,000 to the water quality and hydrology component of Phase II following the submission of a grant application and a competitive statewide review of eligible grant- funded projects. CCI prepared the grant application under the City's direction. In Summer 2004, the State Coastal Conservancy awarded an additional $500,000 to complete the public outreach, planning, engineering, and construction drawings. The grant is contingent upon a City match of $50,000 for the Phase, an amount that can be contributed in FY 2005 -06 using the Newport Bay Restoration Account or similar funding sources. Your City Council approved an action in February accepting the SWRCB grant and authorizing the City Manager to work with CCI to coordinate the work. Construction. Construction might exceed $5 million. We intend to seek construction funding from Propositions 12, 13, 40, or 50 as additional grant moneys become available. The Wildlife Conservation Board (WCB) has verbally informed us that they will fund part of the construction effort. Environmental Review: Environmental review is not required for this Council action. Public Notice: This agenda item requires standard Brown Act notice. Submitted by: Da /e Kiff" Assistant City Manager Attachments: Preferred Restoration Alternative 48"".1 Big Canyon Creek Restoration Project— SCC Grant November 9, 2004 Page 5 . Exhibit A — Historic Tidal Wetlands Alternative HISTORIC TIDAL WETLANDS ALTERNATIVE WATER 4VAt7TYI�� IMPRDVEMEWr AREA , WOKE 06M. PRESERYF$IMPROVE (MSHWATERMARsk WET MEAW W rd� ANl RADMAT M06AT6 EARTHEN Pkm ! -REMOVE INFWTIIxsoeh i sPlu wny twsER ro HisTOBIC.I.IMTTOF'17DAL 0 Q(FATE OPEN WA1ER FbNr7 WTiN FI;ESIiWATERMARI INFWENGE' ALIEN ROAD WTiFI DAM ,A �t' . r^ VIA, PR�ERVE IMPRAVE n FItESN W K MA RIPARIAN HAe MAT FkTS,ERVE 41MPtiGYE' �: M AI-0NG CREEK RIPARIAN HABITAT r T n I A!' Ffsrwe TIDAL � •�• ,: WMANDS ,r ., r.i' n3l•Dn's . v vy.t G ^:LRiR n 0 489984.1