HomeMy WebLinkAbout10 - Advocacy for Dredging ProjectsCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 10
June 23, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, Assistant City Manager
949/644 -3002 or dkiff @city.newport- beach.ca.us
SUBJECT: Authorization to Continue a Contract with Van Scoyoc Associates
Regarding Advocacy for Dredging Projects: Upper and Lower
Newport Bay and the Santa Ana River Marsh /Newport Slough;
Budget Amendment.
ISSUE:
Should the City re -hire a Washington DC -based firm to assist us in advocacy for
dredging of the Lower Newport Bay and the Santa Ana River Marsh dredging projects?
RECOMMENDATION:
1. Authorize the City Manager to enter into an Amendment No. 1 to the Professional
Services Agreement with Van Scoyoc Associates of up to $60,000 to advocate for
dredging the Lower Bay and for funding the Upper Bay Ecosystem Restoration
Project; and
2. Approve Budget Amendment #BA- appropriating $60,000 from Tidelands
unappropriated fund balance, 230 -3605, to Harbor Resources' Professional and
Technical Services account, 2371 -8080, for this effort.
DISCUSSION:
In 2008, the City hired Van Scoyoc Associates to assist us in securing Federal funds to
complete the Upper Newport Bay dredging project and to start the Lower Newport Bay
dredging project. A summary of each project follows.
Upper Newport Bay Dredging. Before President Obama's stimulus package passed
Congress, the Upper Newport Bay Ecosystem Restoration Project (UNB ERP or
"Project') was about $14 -17 million short in funding. The UNB ERP is a cost - shared
project sponsored locally by the State and County (and its stakeholder partners like the
City) and the US Army Corps of Engineers. Cost shares for projects like this one are
65% (federal) and 35 % (state /local).
With the new Stimulus funding, here is the Project's funding status
UN3 and LAO Advocacy
June 23, 2009
Page 2
UNB Ecosystem Restoration Project
Project Cost
Initial Estimates $ 42,500,000
Fuel + Added Items $ 5,500,000
Total Project Cost (est) $ 48,000,000
Sources of Funds
Federal $ 34,500,000
State $ 13,500,000
Subtotal of Sources $ 48,000,000
Shortfall $
However, allocating a full $48 million to the UNB requires language in federal legislation
that would allow the UNB to go over its initial cost threshold (a threshold established
before fuel price hikes in 2008 and before Congress knew that this project would take
several years longer than initially estimated). US Senator Dianne Feinstein (D -CA) has
agreed to offer this language within the federal legislative process.
Lower Newport Bay. Lower Newport Bay is a commercial and recreational harbor
serving about 10,000 vessels, a US Coast Guard facility, an Orange County Sheriffs
Harbor Patrol facility that covers two other harbors (Dana Point and Huntington), small
shipbuilding, and more. The Harbor includes a Federal Navigational Channel that runs
from the Newport Harbor entrance jetties to the area near where Pacific Coast Highway
and SR -55 (Newport Boulevard) meet the Harbor (see Diagram 1).
The channel and nearby waterways receive sediment from a 154 - square mile upstream
watershed that includes the communities of Irvine, Lake Forest, Tustin, Orange, Santa
Ana, Costa Mesa, and Newport Beach. The City of Newport Beach and our upstream
partners, which include the cities listed along with the County of Orange, the Irvine
Ranch Water District, and others, continue to expend, on an annual basis, hundreds of
thousands of dollars in sediment management projects to keep the sediment where it
should be. More than $145,000,000 has been spent in this watershed over the last 30
years to control sediment. However, some sediment continues to reach the Upper and
Lower Newport Bays.
Sedimentation in the Lower Bay is a significant problem for navigation and water quality,
but primarily for navigation. Portions of Lower Bay have not been dredged to design
depth in 70 -80 years (since the Harbor's creation). Other portions have been dredged
in small bits and pieces, in amounts of $2-4 million per job. As a result, large portions of
the Bay cannot accommodate normal boats with normal drafts except at higher tides.
Dock damage is prevalent, too (see photo below). Larger boats with more significant
drafts are almost entirely unable to use the Harbor (see Diagram 2).
n
a'
UNB and LNB Advocacy
June 23, 2009
Page 3
Lower Newport Bay, March 4, 2008
The Lower Bay's navigational channels have been an ongoing — yet unfunded —
obligation of the Federal government via the Corps. Except for brief emergency
dredging episodes, in past years (through Federal FY 2009), the President's Office of
Management and Budget (OMB) has not allocated any funding for this Federal
obligation. However, for the first time ever, President Obama has identified $1.78
million in his budget for the Corps to start work in Lower Newport Bay.
We believe that, to properly restore the Harbor to its design depth with an overdredge of
about 2', about 1.4 million cubic yards of material needs to be removed.
As the Council is aware, disposal methods greatly affect cost. The more material that
can be used on local beaches and disposed of at LA -3, the lower the cost. The more
material that has contamination levels too high for offshore disposal, the higher the cost.
This material will likely need to go into a confined aquatic disposal (CAD) site or trucked
somewhere inland.
The Corps believes that the cost estimate for the Lower Bay project is as follows:
Lower Newport Bay -- Dredging Project (2010 -2012)
Estimated Expenses and Estimated Fund Sources
Assumes 1.4 million cubic yards @ $18 1cubic yard
Expense lest)
Sediment Testing I $ 350,000
CAD Analysis_ _ $ 50,000
CAD Engineering/Design -
Permitting/CEQA /NEPA
CAD -Construction, Use, Cap
.:.Dredging..... _
Sources of Funds lest)
City Funds (for CAD)
Federal Funds
of oil
Totals
UNB and LNB Advocacy
June 23, 2009
Page 4
Note that this number is significantly higher than City staff recently presented to the City
Council. The updated dollar figures come from the US Army Corps' information
provided to the City on May 28th, 2009. The Corps believes that a price of $18 /cubic
yard is more appropriate to use in cost estimation than earlier estimates reflecting an
$11 -14 /cubic yard range.
Removal of 1.4 million cubic yards should provide extensive and long -term relief to the
Lower Bay's recreational and commercial boating activities, provided that this is coupled
with a long -term effort to:
• Continue the City's commitment to cooperatively funding (with our watershed
partners) the maintenance of sediment catch basins in the Santa Ana Mountain
foothills and in San Diego Creek;
• Maintain and add to the Robinson- Skinner Annuity (currently containing $3.8 million
for the "next" Upper Newport Bay dredging effort); and
• Establish and maintain a good sediment management program for the Lower Bay,
estimated to be one that removes about 60,000 cubic yards of material a year
(possibly multiples of that every 3, 5, or 7 years), estimated now at $1,080,000 per
year. This is a Corps obligation today.
As noted, about $1.78 million is in the President's Budget for Federal FY 2010. This
allocation is welcome, but falls well short of the Corps' capacity to do upwards of $14.7
million worth of work in the Lower Bay in FY 2010. As such, we will work with our
members of Congress and with the California Marine Affairs and Navigation Conference
(CMANC) to add funding to the Project as appropriations bills move through Congress
this summer and fall.
Santa Ana River Marsh /Newport Slough. The Santa Ana River Marsh is an ongoing
maintenance obligation of the Corps and one that is associated with the Santa Ana
River Mainstem Flood Control Project. This Corps construction project has been
delayed or suspended because of limited funding. $1.9 Million is needed to complete
the project.
The 1990 construction of the Santa Ana Marsh was a project feature of the larger Santa
Ana River Mainstem Project. The Marsh is located at the mouth of the river within the
city limits of Newport Beach. The purpose of the marsh construction was to mitigate
impacts from the River project and to restore 92 acres of coastal wetlands.
Due to limited Federal Operation and Maintenance funding over the past years, the
marsh has not been appropriately maintained. The amount necessary to restore the
Marsh to its authorized project conditions is approximately $1.9 million.
The City has been willing to consider working with a local land conservancy group to
maintain and operate this Marsh area in conformance with Corps policy guidelines and
environmental maintenance requirements upon the Marsh being restored to original
design conditions.
III
UNa and Wa Advocacy
June 23, 2009
Page 5
Santa Ana River Marsh Area
To that end, this Agenda Item asks the City to continue our existing 12 -month contract
with Van Scoyoc Associates (VSA) in Washington DC to work on these three efforts for
us. Funding priority will be for the LNB followed by the Marsh, but we will also seek
legislative authorization relating to the cap adjustment for the UNB.
Last year at this time, the City informally spoke with a number of people for references,
and staff was comfortable in recommending Mr. James Crum and Mr. Thane Young of
VSA at the time. After a year of remarkable success, we remain comfortable asking for
the 12 -month extension.
VSA would operate under the same Professional Services Agreement and billing rate
($5,000 per month — the same as last year) for up to twelve (12) months if Council
authorizes this action.
Environmental Review: The City Council's approval of this Agenda Item does not
require environmental review.
Public Notice: This agenda item may be noticed according to the Brown Act (72 hours
in advance of the public meeting at which the City Council considers the item).
Funding Availability:
expenditure.
Submitted by:
Dave
Assistant City Manager
UNB and LNB Advocacy
June 23, 2009
Page 6
A budget amendment of $60,000 is required to fund this
Attachments: Amendment No. 1 to Professional Services Agreement
Budget Amendment
r
AMENDMENT NO. 1
TO
PROFESSIONAL SERVICES AGREEMENT WITH
VAN SCOYOC ASSOCIATES FOR
GOVERNMENTAL ADVOCACY
THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, is
entered into as of this _ day of June, 2009, by and between the CITY OF
NEWPORT BEACH, a Municipal Corporation ( "CITY"), and VAN SCOYOC
ASSOCIATES, a District of Columbia Corporation, whose address is 101 Constitution
Ave., NW, Suite 600, Washington DC 20001, ( "CONSULTANT "), and is made with
reference to the following:
RECITALS:
A. On March 26, 2008 CITY and CONSULTANT entered into a Professional
Services Agreement, hereinafter referred to as "AGREEMENT," for
governmental advocacy services related to Federal appropriations and
interactions with the US Army Corps of Engineers for the dredging projects of the
Lower Newport Bay, Upper Newport Bay and Seminouk Sloughs.
B. CITY desires to enter into this AMENDMENT NO. 1 to reflect additional services
not included in the AGREEMENT and to extend the term of the AGREEMENT to
June 30, 2010.
C. CITY desires to compensate CONSULTANT for additional professional services
needed for PROJECT.
D. CITY and CONSULTANT mutually desire to amend AGREEMENT, hereinafter
referred to as "AMENDMENT NO. 1," as provided here below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. In addition to the services to be provided pursuant to the AGREEMENT,
CONSULTANT shall diligently perform all the services described in
AMENDMENT NO. 1 including, but not limited to, all work set forth in the Scope
of Services attached hereto as Exhibit A and incorporated herein by reference.
The City may elect to delete certain tasks of the Scope of Services at its sole
discretion.
2. 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 to the AGREEMENT. Consultant's compensation for all
work performed in accordance with this AMENDMENT NO. 1, including all
reimbursable items and subconsultant fees, shall not exceed Sixty Thousand
Dollars and no /100 ($60,000.00) without prior written authorization from City.
3. The term of the AGREEMENT shall be extended to June 30, 2010.
4. Except as expressly modified herein, all other provisions, terms, and covenants
set forth in AGREEMENT shall remain unchanged and shall be in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 1
on the date first above written.
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
By:
David R. Hunt
City Attorney
ATTEST:
0
Leilani I. Brown,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
M
Edward D. Selich
Mayor
CONSULTANT:
By:
H. Steward Van Scoyoc
President
0
(Financial Officer)
Title:
Print Name:
Attachments: Exhibit A — Scope of Services
Exhibit B— Schedule of Billing Rates
i.
VSA Krill:
Exhibit A
Scope of Work
Continue to work with the city to develop a promote a muiti4ered strategy to posiUo" the city
for an integrated effort over the of the coming year. for the following projects:
• Lower Ne"ort Bay Dredging (lnittattunding, Appropriations: Pres�BUdget...)
• Upper Newport Bay Ecosystem Restoration Project (Appropriations, Stimulus
fun(Ang, 900 policy..)
• Seminouk Slough- Newport Slough. Dredging
These efforts involve a combined federal agency and congressional strategy that support and
comptemW each other — fiolgg agency policies and congressional funding decisions.
Work Yft each of the releuant•members of the Calitornl-a: delegation on file appropriations.
ol Identify; evaluate; and
gppoturiifres that may
needs.-
vantageo tas.
with n"
and its history
O"WE're wr}#t tiaet?sta�q?Ins tiny agKrrl :aacount,an41 prAgraut Wit;
wFnefjt� � rattaes�niirta,
i
• Appropriations and authorization request letters from.your delegation to use with the. House
and Senate. Appropriations Committees.
• E- talking points for your delegation -to use as you discuss requests with members of the
appropriations and authorizing committees.
10
Exhibit B
Schedule of Wing Rates
- $5,000 per month.
City of Newport Beach
BUDGET AMENDMENT
2008 -09
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND �X
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
qX from unappropriated fund balance
EXPLANATION:
NO. BA- 09BA -059
AMOUNT: $60,000.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from Tidelands unappropriated fund balance to fund a contract with a
Washington DC -based firm to assist the City in advocacy for dredging of the Lower Newport Bay and the Santa Ana River
Marsh dredging projects.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
230 3605 Tidelands Fund - Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Signed:
Signed:
Description
2371 City Manager - Harbor Resources
8080 Services: Professional & Technical
Approval: Administrative Services Director
Manager
City Council Approval: City Clerk
Amount
Debit Credit
$60,000.00 `
Date
ate D
Date
?n