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HomeMy WebLinkAbout16 - Confined Aquatic Disposal Site in Newport HarborCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 July 14, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager, (949) 644 -3002 d kiff(&city. newport- beach. ca. us Chris Miller, Harbor Resources Manager, (949) 644 -3043 cm i I lerOcity. newport- beach. ca. us SUBJECT: Professional Services Agreement for Environmental (CEQA) and Engineering Tasks Associated with a Confined Aquatic Disposal Site in Newport Harbor ISSUE: In recent years, the City has been preparing for a major Lower Bay dredging project which is needed to maintain proper depths in the harbor's channels. Several steps to help achieve this goal have already been taken, including: 1) Authorizing NewFields consultants to complete comprehensive sediment testing, 2) Authorizing Anchor QEA consultants to prepare a feasibility study for a Confined Aquatic Disposal (CAD) site to dispose the contaminated sediments in Newport Harbor, and 3) Authorizing Anchor QEA to perform preliminary geotechnical work at the proposed CAD site. The next step in this process is to begin the environmental (CEQA) and engineering work to design and eventually construct the CAD site. Should the City contract with Anchor QEA, L.P. to perform the initial CEQA and engineering design work for a CAD site in Newport Harbor? RECOMMENDATION: 1. Authorize the Mayor to execute a Professional Services Agreement with Anchor QEA, L.P. to conduct initial CEQA and engineering design work for a CAD in Newport Harbor, and; 2. Approve Budget Amendment #BA -- appropriating $395,000 from unappropriated reserves (tidelands) to Capital Improvement Project #7231- C4402001 (Newport Harbor Dredging Project). DISCUSSION: In an effort to dredge the Lower Bay, the City is currently performing a comprehensive sediment analysis of the entire harbor. NewFields LLC is assisting with this effort and they expect to have most of their findings compete by summer 2009. These tests are critical because they will help determine the disposal locations of the sediment, whether at the federally approved disposal site 4.5 miles off shore (LA -3) or at a CAD site located in the Lower Bay. To clarify, a CAD site is a large pit that is created below the floor of the harbor into which the contaminated material is placed. Then, a thick (about 4 -8') layer of clean sand is laid over the contaminated material PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 2 therefore forming a permanent cap that will forever be sealed. This type of solution has been tested and approved by the regulatory agencies (US Army Corps of Engineers, US EPA, California Coastal Commission, Regional Board, others) in other harbors (including most recently Port Hueneme in Ventura County), so it may be a preferred solution for Newport Harbor. At this point, it is still unknown how many cubic yards (cy) of material will need to be placed in the CAD site, but we are expecting a range between 200,000 and 500,000 cy. Alternatives Considered As previously mentioned, Anchor QEA completed a feasibility study which examined all the possible solutions to dispose the contaminated material. The full feasibility report may be found on the City's website at: htta: / /www.city.newport- beach .ca.usAowerbaydredging.htmI Click on "Lower Bay CAD Conceptual Plan." The Feasibility Study's disposal options are briefly described below. 1 — On -Site Sediment Treatment Facility. The treatment of contaminated sediments typically consists of one or more physical and /or chemical processes aimed at removing or rendering inert the target chemicals of concern. Cement based stabilization is a process where additive (e.g. cement, lime, or kiln dust) are mixed into the contaminated dredged material after it has been removed from the water and placed in a mixing barge or on -shore containment area. Another method of on -site sediment treatment is sand separation which is a process where the relatively clean sand faction is mechanically separated from the fine -grained contaminated material to produce two products: beach suitable sand and contaminated fine grained material for landfill disposal. The pros and cons of each method are summarized below. Management Alternative Pros Cons Cement -Based Stabilization • Cost effective • Lack of recipients for treated • Treats metals and organics material • Agency approved process • Unclear agency support • Removes material from • Upland treatment site water • Multiple re- handling • Adjacent land impacts significant • Slow 1,000 cy per day) Sand Separation • Process is cost effective • Process not refined • Can remove metals and • Unclear agency support for organics material reuse. • Removes material from the • Still requires disposal of fine water grained material • Creates beneficial product • Requires adjacent land for treatment facility PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 3 2 — Future Port Fill. A second potential option for disposal of contaminated dredged material would be to contribute the sediment to a current or future fill project within the Port of Los Angeles or the Port of Long Beach via barge transport. Management Alternative Pros Cons Future Port Fill • Cost effective • Limited duration of • Agency approved availability; highly schedule management approach dependent • Removes material from the • Uncertain schedule for water permits and authorizations May not be able to accept all material requiring disposal . Liability transfer agreement with port will be required • Does not provide a guaranteed solution for the City 3 — Upland Landfill Disposal. A third potential option would be to transport the material via trucks to an upland landfill. However, this option is usually considered for projects with 10,000 cy or less. Due to the salinity in sea water, the agencies usually require the use of private landfills which is costly. Management Alternative Pros Cons Upland Landfill Disposal • Removes material from the • Very expensive, >$100 /cy water a Not supported by agencies • No schedule constraints a Local landfills will not accept the material • Significant adjacent land and community impacts including air and traffic 4 — Long Beach CAD Site. A fourth potential option would be to use an existing Long Beach CAD site which has only been permitted as a pilot project to date. In other words, the Long Beach CAD site is not currently permitted for additional disposal events and the City of Long Beach is not actively promoting its use. PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 4 Management Alternative Pros Cons Long Beach CAD Site . Cost effective compared to • Not yet permitted by the City upland disposal of Long Beach • Can accept all material • Approximately 20 mile round • Could possibly tie to another trip for each barge disposal project for cap material event • Use Port Hueneme as • Not supported by LA County example for permitting and environmental advocates 4 — Lower Newport Bay CAD Site. A fifth, and possibly the most feasible option, is constructing a CAD cell in Lower Newport Bay. This process involves mechanically dredging contaminated sediment from around the Bay and placing the material inside the cell. Once completed, the cell would be capped with clean, sandy dredged material to isolate the sediment from the overlying water. Reusing clean dredged material from the bay would eliminate the costs for harvesting cap material and would also provide an in -bay beneficial use for the clean sands. Most of the material excavated from the cell could be pumped to the beach or barged and dropped in the nearshore zone and used as nourishment material. Lower Newport Bay • Cost effective compared to • Local community will be CAD Site upland disposal impacted in terms of • Can accept all material at aesthetics and disruption to once navigation • City controls schedule and • Temporary displacement of process some boaters • Use Port Hueneme as • General concern over example for permitting and disposing of contaminated design sediments in the bay • Cell excavation could provide material for beach nourishment Geotechnical Evaluation The next step in this process was to conduct a geotechnical study of the material where the CAD site would be created in Newport Harbor. The location chosen was the area in the Newport Channel, in the open water space, between Via Lido Soud and the Balboa Peninsula. (See Exhibit 1) This area was chosen because: 1. Most of the contaminated material is located in this area; 2. It is not in the main navigational channel — if it was, navigation would be impacted to a greater extent AND it would be at greater risk for an unintentional fill during a large storm event, where sediment traveling from the San Diego Creek watershed would pass close to it. 3. It is close to the Rhine Channel, which also contains sediment which must be removed. An alternative site considered is near the bay area east of the Balboa Pavilion / Fun Zone area. PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 5 The results of the geotechnical study may be found on the City's website at: http: / /www.city.newport- beach .ca.us /lowerbaydredging.html Click on "CAD Geotechnical Report." To briefly summarize, the geotech report found very clean, sandy material below about -8 Mean Lower Low Water (MLLW) to -50 MLLW. This is the material that will need to be excavated in order to create room for the contaminated material. This clean material will either be pumped across Balboa Blvd. into the nearshore zone or barged out of the harbor and dropped in the nearshore zone (this will be determined later). CAD CEQA and Engineering The current proposal under Council consideration is for Anchor QEA to begin the environmental (CEQA) process and to begin the engineering for the CAD site. As one can imagine, these tasks are complex and require much coordination among staff and the various resource agencies. In addition, the City will need to make critical decisions on some key issues before this phase can be complete. Therefore, Anchor QEA is proposing to work with the information that they have available now to move the project forward while also coordinating with the US Army Corps of Engineers who is responsible for dredging the federal channels. This proposal will use current information and will account for approximately two thirds of the effort needed. In late 2009, Anchor QEA will return with another proposal to finalize this effort after these critical decisions have been made. One decision that must be made within the next month or so is whether the City desires a Mitigated Negative Declaration (MND) or an Environmental Impact Report (EIR) for the CAD. Both reports have merit, but the decision to go one way or another will affect the costs and timing of the overall project. Therefore, this proposal suggests two paths that the consultant could take depending on that decision later this summer. Another decision that must be made is whether to hydraulically pump material from the CAD site across Balboa Blvd into the nearshore zone or to barge it out of the harbor and drop in the nearshore zone. This is also a critical decision and one that will be made after both options have been carefully vetted by the consultant and the City. There are pros and cons to each alternative that center around cost, time and public impact. Each will be fully analyzed before making a decision. The Proposal - CEQA The attached proposal details the various tasks which are summarized below. The full proposal is included in Exhibit 2. Anchor QEA is proposing to be retained on a time and materials basis (with a not -to -exceed amount per task) to complete the CEQA and engineering tasks below. Subtask 1.1: Proiect Description and Initial Study This task involves preparation of the Project Description and internal administrative draft Initial Study checklist which represent the initial checkpoint for the decision on whether to prepare an MND or an EIR. An air quality sub - consultant, iLanco, Inc., will assist with this task. Estimated costs are $115,000. PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 6 Subtask 1.2a: Mitigated Negative Declaration Option If an MND is chosen, this task involves finalizing the Initial Study and preparation of the MND including all required public notices and administrative tasks. Estimated costs are $40,000. Subtask 1.2b: Environmental Impact Report Option If an EIR is chosen, this task involves preparing the EIR including all required public notice and administrative tasks. Estimated costs are $120,000. Subtask 1.3: Miscellaneous Meetings, Agency Coordination Meetings. and Other Project Coordination This task is required regardless of the MND /EIR option selected and provides funds for Anchor QEA staff to attend any and all public outreach or workshop meetings, agency coordination meetings, and/or any other related or required meetings. Estimated costs are $32,000. This is task that City staff will play a significant role. We recognize the concern that adjacent residents, especially on Lido Isle, will have about the CAD. While all of our research shows that CADS are safe, they are unfamiliar to the west coast (except for Port Hueneme) and pose a vexing question for us all — is it safer, less expensive, and less environmentally impactful to bury and contain the existing contaminated sediment than to truck it away, dispose of it elsewhere, and make it someone else's problem? CEQA Cost Summary For this initial CEQA work, the costs could range between $187,000 to $267,000 depending on the MND /EIR option chosen. Future CEQA Costs As stated above, in later part of 2009, Anchor will submit another proposal to complete the CEQA and agency permitting tasks. This additional cost will be between $140,000 to $200,000 depending on the MND /EIR option chosen. The Proposal — Engineering Subtask 2.1: Review of Existing Literature and Additional Research This task involves review of existing information and will focus on identifying key elements necessary for design such as maps, as -built plans for existing structures, wind, waves, currents, bathymetric information etc... Estimated costs are $25,000. Subtask 2.2: Locate and Record all Utility Crossings within CAD area This task involves indentifying all utility crossings which need to be accurately identified prior to proceeding forward with a dredging design. Estimated costs are $5,000. Subtask 2.3: Hydraulic Pipeline Routing Research / Sand Placement Location PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 7 This task involves investigating the option of hydraulically placing the clean sand from the CAD construction in the nearshore zone via pipes across Balboa Blvd. The option of barging the material out of the harbor will also be considered. The sub - consultant Everest International Consultants will assist with this task. Estimated costs are $20,000. Subtask 2.4: Structural Offsets of Protection Evaluation This task identifies and reviews the position, layout and general condition of structures within or near the planned dredging areas because of the potential that dredging will create unstable conditions due to the massive removal of earth pressures. Estimated costs are $22,000. Subtask 2.5: Preliminary Modeling of Environmental Protectiveness for CAD Cell This task involves computer modeling to help design the CAD site and to simulate sediment re- suspension and loss of particulates during their descent in the water column into the CAD. Also, this modeling will simulate the required cap requirements to ensure the material under the cap will not escape. Estimates costs are $30,000. Subtask 2.6: Preliminary Production Rates This task identifies preliminary dredging production rates which can be used to provide estimates of construction duration under different scenarios. Estimated costs are $4,000. Subtask 2.7: Development of Preliminary Construction Unit Costs This task will use the existing information mentioned above to prepare a preliminary construction unit cost, including mobilization, dredging and disposal unit rates, structural protection if necessary, and capping material placement. This is necessary to assist the City in making critical, construction related decisions required to complete the initial CEQA tasks. Estimated costs are $10,000. Subtask 2.8: Coordination with US Army Corps and Other Agencies This task involves meetings with the Corps and other agencies related to engineering and design features which are critical to gauge potential unforeseen concerns early in the design phase. Estimated costs are $12,000. Future Engineering Costs As stated above, in the later part of 2009, Anchor will submit another proposal to complete the engineering tasks. This additional cost will be between $25,000 to $50,000 depending on various factors. SUMMARY The total costs from the tasks above as well as future anticipated costs are: Current Proposal: $315,000 to $395,000 Future Proposal: $165,000 to $250,000 PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 8 Projected Total CEQA and Engineering Costs at end of project: — $480,000 to $645,000 Anchor QEA is proposing to immediately begin this work in order to coordinate with the Corps schedule for dredging the entire Lower Bay. This proposal is based on Anchor QEA's expertise in successfully negotiating agency approval for a CAD site in Port Hueneme to accommodate more than 300,000 cubic yards of material. The City also feels that Anchor's experience with similar CAD projects, as well as their in -depth knowledge of Newport Harbor via several key projects in the area (US Army Corps of Engineers Lower Newport Bay, Rhine Channel Feasibility Study, Balboa Marina, Lido Anchorage, DeAnza Bayside Marina, Blurock Property, and more) provides an ideal partnership to provide this environmental and engineering project. An added benefit of designing and constructing a CAD site is that the CAD creates a location for disposal of the Rhine Channel contaminated material in the near future. In fact, this would significantly reduce the overall future cost for the Rhine Channel, therefore making the project more manageable. Environmental Review: The approval of the Professional Services Agreement for Environmental (CEQA) and engineering work does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the public meetings at which the City Council considers the item). Fiscal Impact: Previous staff reports have discussed how the CAD fits into the context of a larger Lower Newport Bay dredging project. In short, having a site for disposal of contaminated materials opens the door for the US Army Corps to do its $24 -25 million project. Today, the dredging project itself is the Corps' obligation — but we also know that securing the federal funding for the dredging project is a huge challenge. Lower Newport Bay -- Dredging Project (2010 -2012) Estimated Expenses and Estimated Fund Sources Assumes 1.4 million cubic yards @ $18 /cubic yard Expense lest) Sediment Testing $ 350,000 CAD Analysis $ 50,000 CAD Engineering/Design $ Permitting/CEQA/NEPA $ CAD - Construction, Use, Cap Dredging Totals $ 400,000 $ Sources of Funds lest) City Funds (for CAD) $ 400,000 $ Federal Funds $ Totals S 400,000 S 350,000 400,000 $ 1,500,000 $ 11500,000 600,000 $ 1,500,000 $ 1,500,000 In recent years, the City has stepped up by telling the Corps that we would be willing to participate in funding the larger project by taking responsibility for the CAD site — meaning PSA for CAD CEQA and Engineering Tasks July 14, 2009 Page 9 permitting, engineering, and construction. It is not an inexpensive endeavor, and even today the cost is uncertain given that we do not know yet how much sediment must go to a CAD site versus to LA -3 or to beach disposal. Obviously, we hope to maximize the material going to LA- 3 or to our beaches and minimize the amount going to the CAD site. Given the high priority that the Council and community place on this dredging project — a project that arguably none of us will ever have to see or do again in our lifetimes, given that most of the Harbor has not been dredged in its 70+ years of existence — we believe that we must push forward with the CAD site's engineering and CEQA work (as well as possible alternatives to the CAD, such as the cement -based stabilization option) now. With $1.78 million in the President's Budget as submitted to Congress for the Lower Bay dredging, and with Senator Feinstein asking for a "congressionally add" of another $14 million to the Corps for the federal fiscal year (FY 10), the time is now. Approving this now requires amending the just- adopted FY 2009 -10 City Budget. Staff considered asking Council to adopt a placeholder in the FY 2009 -10 Capital Improvement Plan, but the City Manager asked that we instead bring a final action and contract forward when it was ready to go with a budget amendment, given the uncertainty of the pricing and scope months ago. Therefore, this item includes a budget amendment of $395,000 from Unappropriated Reserves (Tidelands) to account CIP #7231- C4402001. The benefits of this expenditure and cost recovery options are significant for this expense. This expense meets our obligations to the Corps to assist them as they (hopefully) move forward with their dredging project. They could not do the job without this assistance. As to cost recovery, given the one -time expense of this project, and given its importance to harbor users, staff will propose recovering the cost of the CAD (permitting /CEQA, engineering /design, and construction) from harbor users, in part or in whole. Prepared by: Submitted by: k P ok/w* A)t4�/ 1= M — Chris Miller, Harbor Resources Manager D Kiff, AssistaM City Manager Attachments: Exhibit 1: CAD Site Location Exhibit 2: Anchor QEA CEQA and Engineering Proposal y. Preferred CAD Site_r"e Location Alternate CAD Site Location } c kZANCHOR QEA 28202 Cabot Road, Suite 425 Laguna Niguel, California 92677 Phone 949.347.2780 fax 949.347.2781 June 25, 2009 C0ITOTI5iii[S7 Manager, Harbor Resources Division City of Newport Beach 829 Harbor Island Drive Newport Beach, California 92660 Re: Lower Newport Bay Confined Aquatic Disposal Site Scope of Work and Budget Request for Engineering Pre - design Tasks and CEQA Compliance Dear Mr. Miller: As a follow up to our recent conversations about moving forward with the Lower Newport Bay Confined Aquatic Disposal (CAD) site development process, this letter presents our proposed Scope of Work (SOW) and cost estimate for several engineering pre - design tasks and California Environmental Quality Act (CEQA) process steps necessary to formally initiate the project. Our SOW is broken down into two main categories: CEQA and engineering pre - design. Within each category, we have identified several proposed tasks for immediate initiation along with our associated estimated costs for each item. Also within each of these categories, we have provided an estimate of future scope and budget items for the City of Newport Beach's (City's) internal planning needs. Using the attached flow chart as a visual tool for highlighting the expected development process for permitting and designing the CAD site, the shaded bar reflects the current step in the process. While data is still being collected to determine some of the key features of the project (i.e., final contaminated sediment volume to be managed and potential transportation routes and methods for excavating the CAD cell and placing the clean sand on or near the adjacent City beaches), several engineering related tasks must be initiated immediately so that the permitting process may commence. www.anchorgea.com Mr. Chris Miller June 25, 2009 Page 2 Thus, the goal for this phase of the project is to: a) begin collecting engineering - related data needed to support CEQA efforts, including information related to the potential for groundwater influence, preliminary cap design, and potential construction techniques; and b) begin the CEQA process, including preparing the project description and Initial Study (IS), evaluating the option of conducting a Mitigated Negative Declaration (MND) versus a full Environmental Impact Report (EIR), and conducting public outreach meetings to gauge initial public concerns. The following details our proposed SOW for each of these items. Estimated costs are described within each task and summarized in Table 1. As a reminder, while the CAD site is an integral part of the overall Lower Newport Bay (LNB) sediment management solution, the current engineering tasks only focus on the design and permitting of the actual CAD cell itself. Future phases of the project will need to consider engineering design for the non - project contaminated dredge areas planned for CAD disposal like the Rhine Channel. The CEQA effort contained in the current proposal does, however, include both dredging of non - project contaminated areas and construction/filling of the CAD cell. TASK 1: CALIFORNIA ENVIRONMENTAL QUALITY ACT DOCUMENT PREPARATION Construction of a CAD cell within the City requires environmental review under both state (CEQA) and federal (National Environmental Policy Act [NEPA]) guidelines. The City would act as the lead CEQA agency, and the U.S. Army Corps of Engineers ( USACE) Regulatory Program would act as the lead NEPA agency. The aforementioned construction activities are also subject to permits issued under Section 10 of the Rivers and Harbors Act (RHA), Sections 404 and 401 of the Clean Water Act (CWA), and the California Coastal Act (CCA). The USACE would be the lead agency for RHA and CWA Section 404 permits as well as associated consultations for Endangered Species Act/Essential Fish Habitat (ESA/EFH) issues, including eelgrass. The Santa Ana Regional Water Quality Control Board (SARWQCB) would be the lead agency for CWA Section 401 as well as Waste Discharge Requirements (WDRs). Mr. Chris Miller June 25, 2009 Page 3 The California Coastal Commission (CCC) would be the lead CCA agency. In addition to requiring a Coastal Development Permit, the CCC will treat the project either as a City project requiring a consistency certification or as a USACE Operations and Maintenance (O &M) project requiring a federal consistency determination. All of the above mentioned agencies, including other consulting agencies such as the U.S. Environmental Protection Agency (USEPA), use essentially the same methodology as that proposed here and have experience with review and approval of CAD site development. The decision to prepare an MND or EIR is primarily based on whether significant impacts remain after mitigation. If significant impacts cannot be avoided or substantially reduced, the City is required to adopt a statement of overriding considerations. Based on expected construction methodology, knowledge of the level of sediment contamination in the harbor, and extensive experience with CAD site development, project elements including excavation of a CAD cell, placement of clean excavated sands on City beaches, and placement and capping of contaminated sediments within the CAD cell are not anticipated to produce any significant environmental impacts. The alternative (i.e., landfill disposal of the dredged material) would entail potentially significant impacts to air and traffic due to the vast number of truck trips (more than 50,000) involved. The USACE is expected to prepare an Environmental Assessment (EA) and associated Finding of No Significant Impact (FONSI) under NEPA, which is equivalent to the City preparing an MND. While no significant impacts are foreseen with in -water CAD cell construction, and therefore an MND should be available as a CEQA document, the City may choose to pursue an EIR. The final decision to prepare an MND or EIR would occur once the CEQA IS is completed. At this time, it is assumed that a California State Lands Commission (CSLC) dredging lease will also need to be obtained for any dredging and disposal components outside the federal channel areas. In order to achieve the endpoint of a successful CEQA document for the proposed project, Anchor QEA, L.P. (Anchor QEA), proposes the following SOW and options. Please note that meeting the proposed milestones (for both an MND and EIR) requires the City, Anchor Mr. Chris Miller June 25, 2009 Page 4 QEA, and USACE to continue to make significant progress resolving key technical issues, such as final volumes of contaminated material, stakeholder issues in key affected areas throughout the Lower Newport Bay, and method of placing beach suitable dredged material. Subtask 1.1: Project Description and Initial Study Subtask 1.1 involves preparation of the Project Description (PD) and internal administrative draft IS checklist. The preparation of the PD and IS represents the initial checkpoint for the decision on whether to prepare an MND or EIR. Following completion of the PD and IS, Anchor QEA and City staff would meet and review the findings and make a decision on whether to pursue an MND or EIR. Subtask 1. 1, therefore, includes conducting a project kick -off, preparing the PD, and preparing an internal administrative draft IS. When the internal administrative draft IS has been completed, the City would decide whether to pursue Subtask 1.2a or 1.2b below (MND or EIR). Provided work is initiated in July of 2009, we would anticipate having the internal draft IS completed by October of 2009. Note that achieving this milestone anticipates relevant and necessary progress is made on required engineering tasks that are essential for the CEQA analysis. These responsibilities include deliverables prepared by Anchor QEA as well as associated approvals and input required from the City. Please also note that this task includes our use and oversight of an air quality subconsultant, iLanco, Inc., who has worked with Anchor QEA on dredging air quality issues on numerous projects, including the Port of Hueneme CAD site. Subtask 1.1 estimated costs are $115,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of the PD and IS consistent with CEQA guidelines • Attendance at meetings with City staff, as needed Mr. Chris Miller June 25, 2009 Page 5 Subtask 1.2a: Mitigated Negative Declaration Option If as a result of Subtask 1.1 the City elects to pursue an MND for the proposed project, Anchor QEA would proceed with finalizing the IS and preparation of the MND, including all required public notices and administrative tasks. We would incorporate all City comments in the administrative draft IS, publish the Notice of Availability of the MND, conduct a hearing on the IS/MND, prepare responses to comments, and prepare the final IS /MND. While a hearing on a draft MND is not required, Anchor QEA recommends and has included a public meeting at the time of the draft MND. Our estimated costs for Task 1.2a includes scope up to and including the preparation of the public draft IS/MND and conducting the hearing. Once comments are received, we would request additional scope to respond to comments on the draft, prepare the final MND, and initiate the permit process. We would anticipate filing of the final IS /MND around June of 2010. Subtask 1.2a estimated costs are $40,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of an administrative and public draft MND • Attendance at City outreach and agency meetings, as needed • Agency coordination, as needed Subtask 1.2b: Environmental Impact Report Option If as a result of Subtask 1.1 the City elects to pursue an EIR for the proposed project, Anchor QEA would proceed with preparing the EIR, including all required public notice and administrative tasks. Anchor QEA would assist the City in managing a public scoping meeting, including public notice of the project, set -up and management of the meeting, and recording the proceedings for the administrative record. Following the scoping process, Anchor QEA would prepare an internal administrative draft EIR (estimated completion is February of 2010, provided the work is initiated in July of 2009). Mr. Chris Miller June 25, 2009 Page 6 Following this step, Anchor QEA would incorporate any City comments received, prepare the public draft EIR, and manage the circulation of the public draft as well as the hearing on the draft. We would also include a draft Mitigation and Monitoring Reporting Plan (MMRP) with the EIR. Note that achieving this milestone anticipates relevant and necessary progress is made on required engineering tasks that are essential for the CEQA analysis. These responsibilities include deliverables prepared by Anchor QEA as well as associated approvals and input required from the City. Please again note that meeting the proposed milestones (for both an MND and EIR) requires the City, Anchor, QEA and USACE to continue to make significant progress resolving key technical issues, such as final volumes of contaminated material, stakeholder issues in key affected areas throughout the Lower Newport Bay, and method of placing beach suitable dredged material. At the time of the mailing of the notice of completion of the public draft EIR, we would request additional scope to respond to comments on the draft EIR, prepare the final EIR, and initiate the permit process. We would anticipate final approval of the EIR around November of 2010. Subtask 1.2b estimated costs are $120,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of an administrative and public draft EIR • Attendance at City outreach and agency meetings, as needed • Agency coordination, as needed Subtask 1.3: Miscellaneous Outreach Meetings, Agency Coordination Meetings, and Other Project Coordination Subtask 1.3 is required regardless of the EIR/MND option selected above and provides funds for Anchor QEA staff to attend any and all public outreach or workshop meetings, agency Mr. Chris Miller June 25, 2009 Page 7 coordination meetings, and/or any other related or required meeting. As part of the process of achieving a public and agency consensus in favor of constructing the CAD cell, Anchor QEA suggests conducting up to three additional formalized public workshops on the project. The City and Anchor QEA would continue to target key stakeholder groups individually with separate, focused meetings. We would also facilitate a thorough and comprehensive process of agency outreach and education leading up to the eventual permit applications. Subtask 1.3 estimated costs are $32,000. This cost estimate is based on the following assumptions: • Attendance at up to 15 additional meetings • Inclusion of mileage and other meeting material costs, as required Estimated Future Costs for California Environmental Quality Act and Agency Permitting Based on our experience with similar projects, we estimate that the remaining costs to finish the CEQA documentation process and initiate and conduct the multi- agency permitting process to be as follows. MND Option If an MND is conducted, and depending on the volume of public comment, we project an additional need of between $15,000 and $30,000 to finalize the MND. Note that this cost estimate does not include recirculation of a new public draft, if deemed necessary, or: EIR QRt ion. If an EIR is conducted, and depending on the volume of public comment, we project an additional need of between $50,000 and $75,000 to finalize the EIR. Note that this cost estimate does not include recirculation of a new public draft, if deemed necessary. These costs (summarized in Table 2) would be in addition to the total amount requested by the current scope of work. Preparation of all required agency permit applications and supporting documents for the USACE, CCC, CSLC, and SARWQCB is estimated to require approximately $125,000. This effort includes preparing application support documents and a Mr. Chris Miller June 25, 2009 Page S Biological Assessment (BA)/EFH report, fmalizing of any MMRPs, and preparing a draft USACE Regulatory EA in support of issuance of the USACE permit. This fee would also include necessary additional agency meetings. Thus, estimated potential additional permitting costs might range between $140,000 and $200,000. These additional costs would be needed in late fall of 2009 or early winter of 2010. TASK 2: PRE - DESIGN ENGINEERING TASKS AND ANALYSES Prior to the start of the actual design and engineering of the CAD cell in Lower Newport Bay, there are numerous pre -design engineering tasks and analyses that can be performed using available data. These tasks and analyses are critical for the initial phases of the CEQA process. Actual engineering design will occur later, after details such as proposed construction approach and targeted contaminated sediment volumes are defined. In addition to assisting the development of the CEQA tasks identified in Task 1, this information will be valuable for understanding the project area and identifying physical constraints that could dictate or limit aspects of the design. The following describes our proposed initial subtasks. Subtask 2.1: Review of Existing Literature and Additional Research The existing information Anchor QEA has been provided by the City will need to be reviewed in detail by the design team. This review will focus on identifying key elements necessary for design, such as maps and as -built plans for existing harbor structures; information on vessels that frequently pass through the area proposed for CAD cell construction area; wind, waves, and currents; and previous physical and chemical characterizations of sediments in Newport Bay (as may be needed to perform modeling or engineering calculations). A review of the existing bathymetric information will also be preformed in order to evaluate whether there is adequate coverage over the design areas or if data gaps exist and if a supplemental survey is needed. Additionally, time will be spent researching additional studies or reports that may exist and have yet to be identified to prevent unnecessary time and efforts for redoing design analyses or tasks. All this information will be loaded into our Mr. Chris Miller June 25, 2009 Page 9 CADD and GIS systems for use during the actual design phases. Subtask 2.1 estimated costs are $25,000. Subtask 2.2: Locate and Record all Utility Crossings within CAD Area We are aware there are underwater crossings of water and telephone lines within Lower Newport Bay. Although, these crossing do not appear to be in the vicinity of the potential CAD cell locations (determined during the field investigation phase), such locations will need to be accurately identified prior to proceeding forward with the dredging design. We can obtain this information by meeting with the appropriate utility companies and City personnel to discuss their knowledge about the utilities in Newport Bay and to review their as -built drawings. As with Subtask 2. 1, this information would all be loaded into our CADD and GIS systems to assist with future design tasks. Subtask 2.2 estimated costs are $5,000. Subtask 2.3: Hydraulic Pipeline Routing Research /Sand Placement Locations A large portion of the hydraulic pipeline may potentially be routed over land, from a point near the CAD cell to the other side of the peninsula where a likely point of discharge on the beach might exist. Therefore, an implementable and cost - effective upland pipeline route will need to be identified. This pipeline will need to be routed such that it minimizes disruption to local traffic and avoids existing structural features and utility lines, among other factors. Anchor QEA would work closely with the City's Public Works Department to discuss potential pipeline placement routes and identify associated costs and challenges with each option. In addition, past and ongoing studies of the local coastal processes will be reviewed to aid in selecting potential placement locations for sand excavated from the CAD cell. Suitable, potential beach placement areas will be identified and used during meetings with representatives from the City's Public Works Department to identify potential routing locations. Because of their extensive southern California coastal modeling expertise and past working relationship with Anchor QEA on the recently completed Port Hueneme CAD site, Mr. David Cannon and Dr. Ying Poon from Everest International Consultants (Everest) will assist Anchor QEA with this task. The goal with this approach is to try and reuse as much Mr. Chris Miller June 25, 2009 Page 10 work from the successful Port Hueneme project as a way to maintain a familiar development process with the agencies and conserve funds. Subtask 2.3 estimated costs are $20,000. Subtask 2.4: Structural Offsets or Protection Evaluation Dredging near any shoreline structure has the potential for creating unstable conditions due to removal of passive earth pressures or undermining of the structure in the future. Thus, it is necessary to identify and review the position, layout, and general condition of structures within or near the planned dredging areas to determine if precautionary measures (such as dredging offsets or additional protection) will be necessary to retain the stability of the structure and avoid adverse impacts on stability. This work would include reviewing as -built drawings for all shoreline areas proposed for dredging as well as conducting field surveys to verify the current condition of the structures. Subtask 2.4 estimated costs are $22,000. Subtask 2.5: Preliminary Modeling of Environmental Protectiveness for CAD Cell Using physical and chemical characteristics of sediments available from previous studies, a series of USACE- developed computer models can be used to provide an estimate of environmental protectiveness of dredging and disposal activities (water quality modeling) and long -term containment of the chemically impacted sediments (cap breakthrough modeling) within the CAD cell. The Short-term Fate of Dredged Material Disposal model (STFATE; developed by USACE) can be run to simulate sediment resuspension and loss of particulates during their descent through the water column into the CAD cell, which can predict the concentration of total suspended solids (TSS) remaining in suspension at a particular time and their lateral spreading distance from the point of dumping. Additionally, a preliminary run of the steady -state "cap chemical breakthrough" model (developed by Reible et al.) would be beneficial for predicting the ability of surficial capping material to chemically isolate the underlying contaminated sediments from burrowing organisms and biota residing in the overlying water column under long -term scenarios. This analysis will determine the preliminary required minimum cap thickness in order to maintain environmental protectiveness. Mr. Chris Miller June 25, 2009 Page 11 Included in this subtask will be the evaluation of bioturbation on the cap surface as it relates to the potential for redistribution of buried contaminants from burrowing organisms. Scour potential from wind, wave, and currents will also be evaluated to ensure that the preliminary cap design provides protection from erosional forces as well as chemical flux and biological activity. Lastly, a preliminary evaluation of effects from future uses (e.g., mooring installations and repairs) will be evaluated and incorporated in the revised conceptual cap design. Everest staff will assist with this task as well for the same reasons mentioned under Subtask 2.3. Subtask 2.5 estimated costs are $30,000. Subtask 2.6: Preliminary Production Rates Using harbor bathymetry (i.e., available drafts), distance of travel, likely dredging volumes, and dredging equipment, a preliminary production rate can be estimated to provide estimates of construction duration under different scenarios. This preliminary production rate can in turn be compared against dredging closure windows and seasonal recreational activities (i.e,, summer sailing programs, regattas, outrigger canoes, etc.) to identify optimal construction sequences. This information will be useful in developing a range of engineer's cost estimates based on varying conditions (described below). Subtask 2.6 estimated costs are $4,000. Subtask 2.7: Development of Preliminary Construction Unit Costs Using the preliminary information gathered in the above subtasks, as well as information gathered from discussions with local contractors competent to perform the work, a preliminary set of construction unit costs will be prepared. These estimates will include rough order of magnitude costs for key construction components (such as mobilization and demobilization), dredging and disposal unit rates (hydraulic and mechanical), structural protection (if necessary), and capping material placement. The purpose for conducting this task at this phase of the project is to allow the City to make critical, construction - related decisions required to complete the initial CEQA tasks. A formal cost estimate will be developed during the latter phases of the engineering design, once dredging and filling quantities have been finalized. Subtask 2.7 estimated costs are $10,000. Mr. Chris Miller June 25, 2009 Page 12 Subtask 2.8: Coordination with USACE and other Agencies The navigational channel within Lower Newport Bay is maintained by the USACE and any dredging within that area will be their responsibility. Early discussions with the USACE will be critical in determining future roles for performing the various design tasks (i.e., the USACE may request the City's assistance with engineering design for the federal channel areas where contaminated sediments occur) and how design documents will come together in the end for bidding and also for cost sharing purposes. Meetings with other agencies related to engineering design features will also be critical to gauge potential, unforeseen, concerns early in the design process as that they may be corrected immediately, and delays may be avoided later in the review process. Subtask 2.8 estimated costs are $12,000. Estimated Future Costs for Engineering Design The above pre -design tasks will advance the scope and schedule of the 30% design effort for the CAD cell significantly. Additional discussions need to occur between the City and USACE to refine an approach for completing a consolidated design package for Lower Newport Bay. At a minimum, the City will be responsible for all design activities for the CAD cell, which forms the basis for this engineering scope of work. As such, estimated costs to complete this process once all the pre -design tasks are finished have been summarized below in Table 2 and total approximately $25,000 to $50,000. In addition to the final design steps for the CAD, it is possible that more in -depth studies of the sand placement area(s) may need to be conducted. The details of this work, if needed, would likely become evident after the public comment period, but could include coastal modeling studies to predict where sand placed on the beach during CAD excavation might ultimately be transported. These costs would be in addition to the total amount requested by the current scope of work. Further, this value does not include the collection of any additional site data within the CAD cell footprint (e.g., groundwater probes), if determined that it is needed, or design services for contaminated sediment dredging within any of the Federal channel areas, Rhine Channel or other City areas. Placeholders for some of these items have been added to Table 2 to highlight their potential need, but it is too early to estimate potential costs. These additional costs would be needed in late fall of 2009 or early winter of 2010. Mr. Chris Miller June 25, 2009 Page 13 PROPOSED SCHEDULE Upon receiving approval to proceed, we estimate that the tasks described in this proposal will be completed within approximately 4 months, provided that the City, Anchor QEA, and USACE continue to make significant progress resolving key technical issues, such as final volumes of contaminated material and stakeholder issues in key affected areas throughout the Lower Newport Bay. Our schedule is dependent on timely resolution of key issues that arise. The proposed 4 -month duration allows the project to maintain the overall development schedule depicted in the attached figure. COST SUMMARY We propose that Anchor QEA be retained on a time and materials basis (with a not -to- exceed amount per task) to complete the two main tasks described above. Table 1 summarizes our estimated costs for each item, broken down by subtask and task. Table 2 summarizes potential future tasks (late fall of 2009 or early winter 2010) that will likely be needed to finalize the permitting and engineering design tasks for the CAD once the currently scoped tasks have been completed. Billing rates for Anchor QEA staff as well as our proposed sub - consultants (Everest and iLanco) are attached to this scope of work. As a reminder, other design tasks will be required as part of the overall LNB sediment management process which are not addressed in the current proposal. For example, engineering design for sediment removal, CAD disposal and associated seawall protection within the Rhine Channel will be needed prior to that phase of the project being constructed. Similarly, engineering design for potential contaminated sediment dredging outside of the Federal project area in other areas of LNB will also be needed to allow for disposal of that material into the CAD cell. The current work (for example Subtask 2.4), however, will be beneficial for implementing these additional phases of the project and will result in significant cost savings to the City by addressing items like the CAD cell design and permitting up front. Mr. Chris Miller June 25, 2009 Page 14 Table 1 Estimated Costs for Current Scope of Work Task Estimated Cost Task 1 CEQA DOCUMENT PREPARATION Task 1.1 Project Description $115,000 Task 1.2a MND Option $40,000 Task 1.2b EIR Option $120,000 Task 1.3 Miscellaneous Meetings $32,000 Task 1 Estimated Costs $187,000 to $267,000 Task 2 PRE - DESIGN ENGINEERING TASKS Task 2.1 Review Existing Literature and $25,000 Additional Research Task 2.2 Locate and Record All Utility $5,000 Crossings within CAD Area Hydraulic Pipeline Routing Task 2.3 Research /Sand Placement $20,000 Locations Task 2.4 Structural Offsets or Protection $22,000 Evaluation Preliminary Modeling of Task 2.5 Environmental Protectiveness for $30,000 CAD Cell Task 2.6 Preliminary Production Rates $4,000 Task 2.7 Development of Preliminary $10,000 Construction Unit Costs Task 2.8 Coordination with USACE and $12,000 Other Agencies Task 2 Estimated Costs $128,000 Grand Total for Tasks 1 and 2 $315,000 to $395,000 Mr. Chris Miller June 25, 2009 Page 15 Table 2 Estimated Costs for Potential Future Scopes of Work Needed to Complete CAD Site Permitting and Design (Late Fall /Early Winter) Task Estimated Cost Task 1 CEQA DOCUMENT PREPARATION Permit applications and supporting documents $125,000 Finalize MND Option $15,000 to $30,000 Finalize EIR Option $50,000 to $75,000 Task 2 ENGINEERING TASKS Complete 30 percent, 90 percent, and Final D Design of CAD Cell $25,000 to $50,000 Possibly conduct additional modeling to finalize sand placement location on beach TBD As always, we appreciate the opportunity to provide you with this proposal for continued services with this very important project. If you have any questions about our proposed approach or estimated costs, please do not hesitate to contact me at (949) 347 -2780. Sincerely, <S Q'�� Steve Cappellino Partner, Anchor QEA, L.P. ANCHOR -TeryN cases for key Mlsamrm 0c., M pamage papa(NOn. Wheft CAD Site Development Decision Process construction. o1c.l aesume real minimal desgnaeeryea era reached. Lower Newport Bay CAD Site Feasibility Study meonade Pope Pmmm am mash d, eM Ui reeshms QEA a d a� umdem gabm mAlry IMgate agency canwtbbon Collect sediment cores tar geotechnlaal proems to alert them oF - - - - - -- andch mlcal enalysasetp laordislf [) potential project site In West Lido Anchorage area Visual cbservatons ufsadiment Na Collett Pros from alternate cores s.gg.A - clean' bweh- locations in North and South suitable A.A.1 anchorage areas Yes yes Ylsual observations of sediment No cores stegast bban' beach - auttablematerlal Initiata 30 parcem Initiate CEQA process anglneeNng design Ocoordi ation M%USada engine rs eoaWinctlon with USAGE engineers Hold public workshops [o describe project and ••- •••- Aevkw available site data Yes Collect and analyse ••••••• todatermineifaddidonal additional geld data solichfeedbzck Information is needed No Pre"re draft CEQA prepare 30 percent pbna document antl submit and weelfkationa parmltepplicstlons Publk and agency ow of Newport Beach review aed USACE Internal review e CertMy CEQp dawmenta Respond a S and obtain all nasaswry Prepare to percent nprepO. fin.1 entl DreDam Anal = perrelb and apprerab plans and specifications a° forconstruNpn CEQA dowmeM a i°•ry Target date to prepare bid package ant hire wntrattor' 0 "s E BEY CAD — wnfined aquatic dbposel CEQA— California Environmental Quality Act USAGE —US. Army Cmpo of Engineers ANCHOR -TeryN cases for key Mlsamrm 0c., M pamage papa(NOn. Wheft CAD Site Development Decision Process construction. o1c.l aesume real minimal desgnaeeryea era reached. Lower Newport Bay CAD Site Feasibility Study meonade Pope Pmmm am mash d, eM Ui reeshms QEA a d a� umdem gabm mAlry Anchor QEA, LLC 2009 STANDARD BILLING RATES Professional Level Hourly Rates Principal....................................................................................................... ............................... $190 SeniorProject Manager .................................................... ............................... ...........................$177 ProjectManager ............................................................... ............................... ...........................$157 Senior Engineer /LA/Planner/ Scientist / Analyst ................ ............................... ...........................$137 Staff 3 Engineer /LA/Pl anner / Scientist / Analyst ................ .:............................. ...........................$120 Staff 2 Engineer /LA/Planner/ Scientist / Analyst ................ ............................... ...........................$110 Staff 1 Engineer /LA/ Planner / Scientist / Analyst ................................................ ............................$99 FieldTechnician ............................................................................................... ............................$80 SeniorDesigner/ CAD ....................................................................................... ............................$99 Designer/ CAD .................................................................................................. ............................$89 ProjectCoordinator .......................................................................................... ............................$79 Special Hourly Rates All work by a testifying expert ............................ ............................1.5 times professional level rate EXPENSE BILLING RATES Expense Rates Diving Services (per day) ................................. ............................... ......................... Project Specific CAD /GIS/Modeling (per hour) ....................................... ............................... .........................$10.00 Graphic Plots (varies with plot size) ....................................................... ............................... $3 -6/sf Photocopies(per copy) ..................................................... ............................... ..........................$0.10 Faxes(per page) ............................................................... ............................... ..........................$1.00 Mileage (per mile) ...................................................... ............................... Current Federal Standard FEE ON LABOR AND EXPENSE CHARGES Subcontracts/ subconsultants ........................................................................ ............................... 10% Travel and other direct costs ........................................................................ ............................... 10% Fieldequipment & supplies ......................................................................... ............................... 10% Everest International Consultants, Inc. Rate Schedule Everest International Consultants, Inc. will provide professional services at the following rates beginning January 1, 2008. Staff Category Hourly Rate Principal Engineer $170 Senior Engineer /Scientist III $157 Senior Engineer /Scientist II $145 Senior Engineer /Scientist 1 $123 Engineer /Scientist $113 Assistant Engineer $99 Staff Engineer $86 Technician /CAD Operator $75 Clerical $49 Other Direct Costs Unit Rate Plotting $0.25 /ea. Bond $1.10 /s.f. Vellums $1.60 /s.f. Mylars $2.70 /s.f. CODVIna /Bindin 8.5 x 11 b &w copy $0.10 /ea. 11 x 17 b &w copy $0.25 /ea. 8.5 x 11 color copy $1.10 /ea. 11 x 17 color copy $2.20 /ea. Binding (Reports) $2.50 /ea. Transportation Personal Car (Mileage) $0.585 /mile Other Project Related Expenses Other expenses are invoiced at cost without mark up. Subconsultant Services Subconsultants are invoiced at cost plus an agreed mark up. to EVEREST Name iLANCO ENVIRONMENTAL, LLC., WBE /SBE 2009 Billing Rate Rate Lora Granovsky $120/hour PROFESSIONAL SERVICES AGREEMENT WITH ANCHOR QEA, L.P. FOR CONFINED AQUATIC DISPOSAL SCOPE OF WORK FOR ENGINEERING PRE - DESIGN TASKS & CEQA COMPLIANCE THIS AGREEMENT is made and entered into as of this _ day of 2009, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City"), and ANCHOR QEA, L.P. a California Limited Partnership, whose address is 28202 Cabot Road, Suite 425 Laguna Niguel, California, 92677 ( "Consultant "), 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 is planning to dredge the Lower Newport Bay and construct a Confined Aquatic Disposal Site (CAD) to contain the contaminated sediment within Newport Harbor. City has conducted a Feasibility Study, developed a Dredge Material Management Plan and implemented the Sampling & Analysis Plan. C. City desires to engage Consultant to initiate the environmental (CEQA) and engineering processes ( "Project"). D. City recognizes that future CEQA and engineering work will be necessary once major decisions are made in the coming months. E. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. F. The principal member of Consultant for purposes of Project shall be Steve Cappellino. G. 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 above written date, and shall terminate on the 31't day of December, 2010, unless terminated earlier as set forth herein. The term of this Agreement shall commence on the above written date, and shall terminate on the 315t day of December, 2010, 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. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE 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. The failure by Consultant to strictly adhere to the schedule may result in termination of this Agreement by City. 4. COMPENSATION TO CONSULTANT 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 Three Hundred Ninety -Five Thousand Dollars and no /100 ($395,000) 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. 4.1 Consultant shall submit monthly invoices to City describing the work performed the preceding month. Consultant's bills shalt 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) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Consultant only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsultants for performance of any of the services that Consultant agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. 2 B. Approved reproduction charges. C. Actual costs and /or .other costs and /or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 4.3 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. 6. PROJECT MANAGER 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 STEVE CAPPELLINO 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. 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. 6. ADMINISTRATION This Agreement will be administered by the HARBOR RESOURCES DIVISION. CHRIS MILLER shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. 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. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and. local laws and the professional standard of care. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force in 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, or 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 To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers and employees (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, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to the negligence, recklessness, or willful misconduct of the Consultant or its principals, officers, agents; employees, vendors, suppliers,. consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them. 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 attorney's 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 CI insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 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. 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 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 and /or his/her duly authorized designee 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, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Cettiflcates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by 5 City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. 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. D. Coverage Requirements. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this 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 for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: L The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional 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. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS 7 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 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 cotenancy, 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 City and Consultant agree that subconsultants may be used to complete the work outlined in the Scope of Services. The subconsultants authorized by City to perform work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and 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. The City is an intended beneficiary of any work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and the 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 Each and every report, draft, map, record, plan, document and other writing produced (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. Consultant shall, at Consultant's expense, provide such Documents to City upon prior written request. 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. 18. COMPUTER DELIVERABLES L 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 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 CITY in ".dwg" file format on a CD, and should comply with the City's digital submission requirements for Improvement Plans. The City will provide AutoCAD file of City Title Sheets. All written documents shall be transmitted to City in the City's latest adopted version of Microsoft Word and Excel. 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 authorizes in writing the release of information. 20. OPINION OF COST [Optional: Only use if an opinion of costs is called for in the scope of work] Any opinion of the construction cost prepared by Consultant represents his /her 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 contractor bids or actual cost to City. 21. INTELLECTUAL PROPERTY INDEMNITY The Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. 22. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate 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 �J 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. 23. 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 his/her 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. 24. 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 paragraph is intended to limit City's rights under the law or any other sections of this Agreement. 25. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 26. CONFLICTS OF INTEREST The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Consultant shall conform to all requirements of the Act. 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. 10 27. NOTICES All notices, demands, requests or approvals 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. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Chris Miller Harbor Resources Division City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949 - 644 -3043 Fax: 949 - 723 -0589 All notices, demands, requests or approvals from CITY to Consultant shall be addressed to Consultant at: Attention: Steve Cappellino 28202 Cabot Road, Suite 425 Laguna Niguel, CA 92677 Phone: 949 - 347 -2780 Fax: 949 -347 -2781 28. TERMINATION 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. Notwithstanding the above provisions, City shall have the right, at its _sole discretion and without cause, of terminating this Agreement at anytime by giving 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. 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. 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. 31. 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. 32. 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. 33. 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. 34. 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. 35. 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. 36. CONTROLLING LAW AND VENUE 12 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. 37. 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 of race, religion, color, national origin, handicap, ancestry, sex or age. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: OFFIC OF THE CITY ATT RNEY: or" David R. Hunt City Attorney ATTEST: A Leilani Brown, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Edward Selich Mayor CONSULTANT: By: (Corporate Officer) Print Name: By: (Financial Officer) Title: Print Name: Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates 13 kzANCHOR OEA . y" 28202 Cabot Road, Suite 425 Laguna Niguel, California 92677 Phone 949.347.2780 Fax 949.347.2781 June 25, 2009 Chris Miller Manager, Harbor Resources Division City of Newport Beach 829 Harbor Island Drive Newport Beach, California 92660 Attachment A Re: Lower Newport Bay Confined Aquatic Disposal Site Scope of Work and Budget Request for Engineering Pre -design Tasks and CEQA Compliance Dear Mr. Miller: As a follow up to our recent conversations about moving forward with the Lower Newport Bay Confined Aquatic Disposal (CAD) site development process, this letter presents our proposed Scope of Work (SOW) and cost estimate for several engineering pre - design tasks and California Environmental Quality Act (CEQA) process steps necessary to formally initiate the project. Our SOW is broken down into two main categories: CEQA and engineering pre - design. Within each category, we have identified several proposed tasks for immediate initiation along with our associated estimated costs for each item. Also within each of these categories, we have provided an estimate of future scope and budget items for the City of Newport Beach's (City's) internal planning needs. Using the attached flow chart as a visual tool for highlighting the expected development process for permitting and designing the CAD site, the shaded bar reflects the current step in the process. While data is still being collected to determine some of the key features of the project (i.e., final contaminated sediment volume to be managed and potential transportation routes and methods for excavating the CAD cell and placing the clean sand on or near the adjacent City beaches), several engineering related tasks must be initiated immediately so that the permitting process may commence. www.anchorqea.com Mr. Chris Miller June 25, 2009 Page 2 Thus, the goal for this phase of the project is to: a) begin collecting engineering - related data needed to support CEQA efforts, including information related to the potential for groundwater influence, preliminary cap design, and potential construction techniques; and b) begin the CEQA process, including preparing the project description and Initial Study (IS), evaluating the option of conducting a Mitigated Negative Declaration (MND) versus a full Environmental Impact Report (EIR), and conducting public outreach meetings to gauge initial public concerns. The following details our proposed SOW for each of these items. Estimated costs are described within each task and summarized in Table 1. As a reminder, while the CAD site is an integral part of the overall Lower Newport Bay (LNB) sediment management solution, the current engineering tasks only focus on the design and permitting of the actual CAD cell itself. Future phases of the project will need to consider engineering design for the non - project contaminated dredge areas planned for CAD disposal like the Rhine Channel. The CEQA effort contained in the current proposal does, however, include both dredging of non - project contaminated areas and construction/filling of the CAD cell. TASK 1: CALIFORNIA ENVIRONMENTAL QUALITY ACT DOCUMENT PREPARATION Construction of a CAD cell within the City requires environmental review under both state (CEQA) and federal (National Environmental Policy Act [NEPA]) guidelines. The City would act as the lead CEQA agency, and the U.S. Army Corps of Engineers ( USACE) Regulatory Program would act as the lead NEPA agency. The aforementioned construction activities are also subject to permits issued under Section 10 of the Rivers and Harbors Act (RHA), Sections 404 and 401 of the Clean Water Act (CWA), and the California Coastal Act (CCA). The USACE would be the lead agency for RHA and CWA Section 404 permits as well as associated consultations for Endangered Species Act/Essential Fish Habitat (ESA/EFH) issues, including eelgrass. The Santa Ana Regional Water Quality Control Board (SARWQCB) would be the lead agency for CWA Section 401 as well as Waste Discharge Requirements (WDRs). Mr. Chris Miller June 25,2009 Page 3 The California Coastal Commission (CCC) would be the lead CCA agency. In addition to requiring a Coastal Development Permit, the CCC will treat the project either as a City project requiring a consistency certification or as a USACE Operations and Maintenance (O&M) project requiring a federal consistency determination. All of the above mentioned agencies, including other consulting agencies such as the U.S. Environmental Protection Agency (USEPA), use essentially the same methodology as that proposed here and have experience with review and approval of CAD site development. The decision to prepare an MND or EIR is primarily based on whether significant impacts remain after mitigation. If significant impacts cannot be avoided or substantially reduced, the City is required to adopt a statement of overriding considerations. Based on expected construction methodology, knowledge of the level of sediment contamination in the harbor, and extensive experience with CAD site development, project elements including excavation of a CAD cell, placement of clean excavated sands on City beaches, and placement and capping of contaminated sediments within the CAD cell are not anticipated to produce any significant environmental impacts. The alternative (i.e., landfill disposal of the dredged material) would entail potentially significant impacts to air and traffic due to the vast number of truck trips (more than 50,000) involved. The USACE is expected to prepare an Environmental Assessment (EA) and associated Finding of No Significant Impact (FONSI) under NEPA, which is equivalent to the City preparing an MND. While no significant impacts are foreseen with in -water CAD cell construction, and therefore an MND should be available as a CEQA document, the City may choose to pursue an EIR. The final decision to prepare an MND or EIR would occur once the CEQA IS is completed. At this time, it is assumed that a California State Lands Commission (CSLQ dredging lease will also need to be obtained for any dredging and disposal components outside the federal channel areas. In order to achieve the endpoint of a successful CEQA document for the proposed project, Anchor QEA, L.P. (Anchor QEA), proposes the following SOW and options. Please note that meeting the proposed milestones (for both an MND and EIR) requires the City, Anchor Mr. Chris Miller June 25, 2009 Page 4 QEA, and USACE to continue to make significant progress resolving key technical issues, such as final volumes of contaminated material, stakeholder issues in key affected areas throughout the Lower Newport Bay, and method of placing beach suitable dredged material. Subtask 1.1: Project Description and Initial Study Subtask 1.1 involves preparation of the Project Description (PD) and internal administrative draft IS checklist. The preparation of the PD and IS represents the initial checkpoint for the decision on whether to prepare an MND or EIR. Following completion of the PD and IS, Anchor QEA and City staff would meet and review the findings and make a decision on whether to pursue an MND or EIR. Subtask 1. 1, therefore, includes conducting a project kick -off, preparing the PD, and preparing an internal administrative draft IS. When the internal administrative draft IS has been completed, the City would decide whether to pursue Subtask 1.2a or 1.2b below (MND or EIR). Provided work is initiated in July of 2009, we would anticipate having the internal draft IS completed by October of 2009. Note that achieving this milestone anticipates relevant and necessary progress is made on required engineering tasks that are essential for the CEQA analysis. These responsibilities include deliverables prepared by Anchor QEA as well as associated approvals and input required from the City. Please also note that this task includes our use and oversight of an air quality subconsultant, ilanco, Inc., who has worked with Anchor QEA on dredging air quality issues on numerous projects, including the Port of Hueneme CAD site. Subtask 1.1 estimated costs are $115,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of the PD and IS consistent with CEQA guidelines • Attendance at meetings with City staff, as needed Mr. Chris Miller June 25, 2009 Page 5 Subtask 1.2a: Mitigated Negative Declaration Option If as a result of Subtask 1.1 the City elects to pursue an MND for the proposed project, Anchor QEA would proceed with finalizing the IS and preparation of the MAID, including all required public notices and administrative tasks. We would incorporate all City comments in the administrative draft IS, publish the Notice of Availability of the MND, conduct a hearing on the IS/MND, prepare responses to comments, and prepare the final IS /MND. While a hearing on a draft MND is not required, Anchor QEA recommends and has included a public meeting at the time of the draft MND. Our estimated costs for Task 1.2a includes scope up to and including the preparation of the public draft IS/MND and conducting the hearing. Once comments are received, we would request additional scope to respond to comments on the draft, prepare the final MND, and initiate the permit process. We would anticipate filing of the final IS /MND around June of 2010. Subtask 1.2a estimated costs are $40,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of an administrative and public draft MND • Attendance at City outreach and agency meetings, as needed • Agency coordination, as needed Subtask 1.2b: Environmental Impact Report Option If as a result of Subtask 1.1 the City elects to pursue an EIR for the proposed project, Anchor QEA would proceed with preparing the EIR, including all required public notice and administrative tasks. Anchor QEA would assist the City in managing a public scoping meeting, including public notice of the project, set -up and management of the meeting, and recording the proceedings for the administrative record. Following the scoping process, Anchor QEA would prepare an internal administrative draft EIR (estimated completion is February of 2010, provided the work is initiated in July of 2009). Mr. Chris Miller June 25, 2009 Page 6 Following this step, Anchor QEA would incorporate any City comments received, prepare the public draft EIR, and manage the circulation of the public draft as well as the hearing on the draft. We would also include a draft Mitigation and Monitoring Reporting Plan (MMRP) with the EIR. Note that achieving this milestone anticipates relevant and necessary progress is made on required engineering tasks that are essential for the CEQA analysis. These responsibilities include deliverables prepared by Anchor QEA as well as associated approvals and input required from the City. Please again note that meeting the proposed milestones (for both an MND and EIR) requires the City, Anchor, QEA and USACE to continue to make significant progress resolving key technical issues, such as final volumes of contaminated material, stakeholder issues in key affected areas throughout the Lower Newport Bay, and method of placing beach suitable dredged material. At the time of the mailing of the notice of completion of the public draft EIR, we would request additional scope to respond to comments on the draft EIR, prepare the final EIR, and initiate the permit process. We would anticipate final approval of the EIR around November of 2010. Subtask 1.2b estimated costs are $120,000. This cost estimate is based on the following assumptions: • Management of all CEQA administrative tasks, including mailings, notices, and other required tasks • Preparation of an administrative and public draft EIR Attendance at City outreach and agency meetings, as needed • Agency coordination, as needed Subtask 1.3: Miscellaneous Outreach Meetings, Agency Coordination Meetings, and Other Project Coordination Subtask 1.3 is required regardless of the EIR/MND option selected above and provides funds for Anchor QEA staff to attend any and all public outreach or workshop meetings, agency Mr. Chris Miller June 25, 2009 coordination meetings, and/or any other related or required meeting. As part of the process of achieving a public and agency consensus in favor of constructing the CAD cell, Anchor QEA suggests conducting up to three additional formalized public workshops on the project. The City and Anchor QEA would continue to target key stakeholder groups individually with separate, focused meetings. We would also facilitate a thorough and comprehensive process of agency outreach and education leading up to the eventual permit applications. Subtask 1.3 estimated costs are $32,000. This cost estimate is based on the following assumptions: • Attendance at up to 15 additional meetings • Inclusion of mileage and other meeting material costs, as required Estimated Future Costs for California Environmental Quality Act and Agency Permitting Based on our experience with similar projects, we estimate that the remaining costs to finish the CEQA documentation process and initiate and conduct the multi- agency permitting process to be as follows. MM,ption If an MND is conducted, and depending on the volume of public comment, we project an additional need of between $15,000 and $30,000 to finalize the MND. Note that this cost estimate does not include recirculation of a new public draft, if deemed necessary, or: EIR If an EIR is conducted, and depending on the volume of public comment, we project an additional need of between $50,000 and $75,000 to finalize the EIR. Note that this cost estimate does not include recirculation of a new public draft, if deemed necessary. These costs (summarized in Table 2) would be in addition to the total amount requested by the current scope of work. Preparation of all required agency permit applications and supporting documents for the USACE, CCC, CSLC, and SARWQCB is estimated to require approximately $125,000. This effort includes preparing application support documents and a Mr. Chris Miller June 25, 2009 Page 8 Biological Assessment (BA)/EFH report, finalizing of any MMRPs, and preparing a draft USACE Regulatory EA in support of issuance of the USACE permit. This fee would also include necessary additional agency meetings. Thus, estimated potential additional permitting costs might range between $140,000 and $200,000. These additional costs would be needed in late fall of 2009 or early winter of 2010. TASK 2: PRE - DESIGN ENGINEERING TASKS AND ANALYSES Prior to the start of the actual design and engineering of the CAD cell in Lower Newport Bay, there are numerous pre- design engineering tasks and analyses that can be performed using available data. These tasks and analyses are critical for the initial phases of the CEQA process. Actual engineering design will occur later, after details such as proposed construction approach and targeted contaminated sediment volumes are defined. In addition to assisting the development of the CEQA tasks identified in Task 1, this information will be valuable for understanding the project area and identifying physical constraints that could dictate or limit aspects of the design. The following describes our proposed initial subtasks. Subtask 2.1: Review of Existing Literature and Additional Research The existing information Anchor QEA has been provided by the City will need to be reviewed in detail by the design team. This review will focus on identifying key elements necessary for design, such as maps and as-built plans for existing harbor structures; information on vessels that frequently pass through the area proposed for CAD cell construction area; wind, waves, and currents; and previous physical and chemical characterizations of sediments in Newport Bay (as may be needed to perform modeling or engineering calculations). A review of the existing bathymetric information will also be preformed in order to evaluate whether there is adequate coverage over the design areas or if data gaps exist and if a supplemental survey is needed. Additionally, time will be spent researching additional studies or reports that may exist and have yet to be identified to prevent unnecessary time and efforts for redoing design analyses or tasks. All this information will be loaded into our Mr. Chris Miller June 25, 2009 Page 9 CADD and GIS systems for use during the actual design phases. Subtask 2.1 estimated costs are $25,000. Subtask 2.2: Locate and Record all Utility Crossings within CAD Area We are aware there are underwater crossings of water and telephone lines within Lower Newport Bay. Although, these crossing do not appear to be in the vicinity of the potential CAD cell locations (determined during the field investigation phase), such locations will need to be accurately identified prior to proceeding forward with the dredging design. We can obtain this information by meeting with the appropriate utility companies and City personnel to discuss their knowledge about the utilities in Newport Bay and to review their as -built drawings. As with Subtask 2. 1, this information would all be loaded into our CADD and GIS systems to assist with future design tasks. Subtask 2.2 estimated costs are $5,000. Subtask 2.3: Hydraulic Pipeline Routing Research /Sand Placement Locations A large portion of the hydraulic pipeline may potentially be routed over land, from a point near the CAD cell to the other side of the peninsula where a likely point of discharge on the beach might exist. Therefore, an implementable and cost- effective upland pipeline route will need to be identified. This pipeline will need to be routed such that it minimizes disruption to local traffic and avoids existing structural features and utility lines, among other factors. Anchor QEA would work closely with the City's Public Works Department to discuss potential pipeline placement routes and identify associated costs and challenges with each option. In addition, past and ongoing studies of the local coastal processes will be reviewed to aid in selecting potential placement locations for sand excavated from the CAD cell. Suitable, potential beach placement areas will be identified and used during meetings with representatives from the City's Public Works Department to identify potential routing locations. Because of their extensive southern California coastal modeling expertise and past working relationship with Anchor QEA on the recently completed Port Hueneme CAD site, Mr. David Cannon and Dr. Ying Poon from Everest International Consultants (Everest) will assist Anchor QEA with this task. The goal with this approach is to try and reuse as much Mr. Chris Miller June 25, 2009 Page 10 work from the successful Port Hueneme project as a way to maintain a familiar development process with the agencies and conserve funds. Subtask 2.3 estimated costs are $20,000. Subtask 2A Structural Offsets or Protection Evaluation Dredging near any shoreline structure has the potential for creating unstable conditions due to removal of passive earth pressures or undermining of the structure in the future. Thus, it is necessary to identify and review the position, layout, and general condition of structures within or near the planned dredging areas to determine if precautionary measures (such as dredging offsets or additional protection) will be necessary to retain the stability of the structure and avoid adverse impacts on stability. This work would include reviewing as-built drawings for all shoreline areas proposed for dredging as well as conducting field surveys to verify the current condition of the structures. Subtask 2.4 estimated costs are $22,000. Subtask 2.5: Preliminary Modeling of Environmental Protectiveness for CAD Cell Using physical and chemical characteristics of sediments available from previous studies, a series of USACE- developed computer models can be used to provide an estimate of environmental protectiveness of dredging and disposal activities (water quality modeling) and long -term containment of the chemically impacted sediments (cap breakthrough modeling) within the CAD cell. The Short-term Fate of Dredged Material Disposal model (STFATE; developed by USACE) can be run to simulate sediment resuspension and loss of particulates during their descent through the water column into the CAD cell, which can predict the concentration of total suspended solids (TSS) remaining in suspension at a particular time and their lateral spreading distance from the point of dumping. Additionally, a preliminary run of the steady -state "cap chemical breakthrough" model (developed by Reible et al.) would be beneficial for predicting the ability of surficial capping material to chemically isolate the underlying contaminated sediments from burrowing organisms and biota residing in the overlying water column under long -term scenarios. This analysis will determine the preliminary required minimum cap thickness in order to maintain environmental protectiveness. Mr. Chris Miller June 25, 2009 Page 11 Included in this subtask will be the evaluation of bioturbation on the cap surface as it relates to the potential for redistribution of buried contaminants from burrowing organisms. Scour potential from wind, wave, and currents will also be evaluated to ensure that the preliminary cap design provides protection from erosional forces as well as chemical flux and biological activity. Lastly, a preliminary evaluation of effects from future uses (e.g., mooring installations and repairs) will be evaluated and incorporated in the revised conceptual cap design. Everest staff will assist with this task as well for the same reasons mentioned under Subtask 2.3. Subtask 2.5 estimated costs are $30,000. Subtask 2.6: Preliminary Production Rates Using harbor bathymetry (i.e., available drafts), distance of travel, likely dredging volumes, and dredging equipment, a preliminary production rate can be estimated to provide estimates of construction duration under different scenarios. This preliminary production rate can in turn be compared against dredging closure windows and seasonal recreational activities (i.e., summer sailing programs, regattas, outrigger canoes, etc.) to identify optimal construction sequences. This information will be useful in developing a range of engineer's cost estimates based on varying conditions (described below). Subtask 2.6 estimated costs are $4,000. Subtask 2.7: Development of Preliminary Construction Unit Costs Using the preliminary information gathered in the above subtasks, as well as information gathered from discussions with local contractors competent to perform the work, a preliminary set of construction unit costs will be prepared. These estimates will include rough order of magnitude costs for key construction components (such as mobilization and demobilization), dredging and disposal unit rates (hydraulic and mechanical), structural protection (if necessary), and capping material placement. The purpose for conducting this task at this phase of the project is to allow the City to make critical, construction - related decisions required to complete the initial CEQA tasks. A formal cost estimate will be developed during the latter phases of the engineering design, once dredging and filling quantities have been finalized. Subtask 2.7 estimated costs are $10,000. Mr. Chris Miller June 25,2009 Page 12 Subtask 2.8: Coordination with USACE and other Agencies The navigational channel within Lower Newport Bay is maintained by the USACE and any dredging within that area will be their responsibility. Early discussions with the USACE will be critical in determining future roles for performing the various design tasks (i.e., the USACE may request the City's assistance with engineering design for the federal channel areas where contaminated sediments occur) and how design documents will come together in the end for bidding and also for cost sharing purposes. Meetings with other agencies related to engineering design features will also be critical to gauge potential, unforeseen, concerns early in the design process as that they may be corrected immediately, and delays may be avoided later in the review process. Subtask 2.8 estimated costs are $12,000. Estimated Future Costs for Engineering Design The above pre - design tasks will advance the scope and schedule of the 30% design effort for the CAD cell significantly. Additional discussions need to occur between the City and USACE to refine an approach for completing a consolidated design package for Lower Newport Bay. At a minimum, the City will be responsible for all design activities for the CAD cell, which forms the basis for this engineering scope of work. As such, estimated costs to complete this process once all the pre - design tasks are finished have been summarized below in Table 2 and total approximately $25,000 to $50,000. In addition to the final design steps for the CAD, it is possible that more in -depth studies of the sand placement area(s) may need to be conducted. The details of this work, if needed, would likely become evident after the public comment period, but could include coastal modeling studies to predict where sand placed on the beach during CAD excavation might ultimately be transported. These costs would be in addition to the total amount requested by the current scope of work. Further, this value does not include the collection of any additional site data within the CAD cell footprint (e.g., groundwater probes), if determined that it is needed, or design services for contaminated sediment dredging within any of the Federal channel areas, Rhine Channel or other City areas. Placeholders for some of these items have been added to Table 2 to highlight their potential need, but it is too early to estimate potential costs. These additional costs would be needed in late fall of 2009 or early winter of 2010. Mr. Chris Miller June 25, 2009 Page 13 PROPOSED SCHEDULE Upon receiving approval to proceed, we estimate that the tasks described in this proposal will be completed within approximately 4 months, provided that the City, Anchor QEA, and USACE continue to make significant progress resolving key technical issues, such as final volumes of contaminated material and stakeholder issues in key affected areas throughout the Lower Newport Bay. Our schedule is dependent on timely resolution of key issues that arise. The proposed 4 -month duration allows the project to maintain the overall development schedule depicted in the attached figure. COST SUMMARY We propose that Anchor QEA be retained on a time and materials basis (with a not -to- exceed amount per task) to complete the two main tasks described above. Table 1 summarizes our estimated costs for each item, broken down by subtask and task. Table 2 summarizes potential future tasks (late fall of 2009 or early winter 2010) that will likely be needed to finalize the permitting and engineering design tasks for the CAD once the currently scoped tasks have been completed. Billing rates for Anchor QEA staff as well as our proposed sub - consultants (Everest and iLanco) are attached to this scope of work. As a reminder, other design tasks will be required as part of the overall LNB sediment management process which are not addressed in the current proposal. For example, engineering design for sediment removal, CAD disposal and associated seawall protection within the Rhine Channel will be needed prior to that phase of the project being constructed. Similarly, engineering design for potential contaminated sediment dredging outside of the Federal project area in other areas of LNB will also be needed to allow for disposal of that material into the CAD cell. The current work (for example Subtask 2.4), however, will be beneficial for implementing these additional phases of the project and will result in significant cost savings to the City by addressing items like the CAD cell design and permitting up front. Mr. Chris Miller June 25, 2009 Page 14 Table 1 Estimated Costs for Current Scope of Work Task Estimated Cost Task 1 CEQA DOCUMENT PREPARATION Task 1.1 Project Description $115,000 Task 1.2a MND Option $40,000 Task 1.2b EIR Option $120,000 Task 1.3 Miscellaneous Meetings $32,000 Task 1 Estimated Costs $187,000 to $267,000 Task 2 PRE - DESIGN ENGINEERING TASKS Task 2.1 Review Existing Literature and $25,000 Additional Research Task 2.2 Locate and Record All Utility $5,000 Crossings within CAD Area Hydraulic Pipeline Routing Task 2.3 Research /Sand Placement $20,000 Locations Task 2.4 Structural Offsets or Protection $22,000 Evaluation Preliminary Modeling of Task 2.5 Environmental Protectiveness for $30,000 CAD Cell Task 2.6 Preliminary Production Rates $4,000 Task 2.7 Development of Preliminary $10,000 Construction Unit Costs Task 2.8 Coordination with USACE and $12,000 Other Agencies Task 2 Estimated Costs $128,000 Grand Total for Tasks 1 and 2 $315,000 to $395,000 Mr. Chris Miller June25,2009 Page 15 Table 2 Estimated Costs for Potential Future Scopes of Work Needed to Complete CAD Site Permitting and Design (Late Fall /Early Winter) Task Estimated Cost Task 1 CEQA DOCUMENT PREPARATION Permit applications and supporting documents $125,000 Finalize MND Option . $15,000 to $30,000 Finalize EIR Option $50,000 to $75,000 Task 2 ENGINEERING TASKS Complete 30 percent, 90 percent, and Final D Design of CAD Cell $25,000 to $50,000 Possibly conduct additional modeling to finalize sand placement location on beach TBD As always, we appreciate the opportunity to provide you with this proposal for continued services with this very important project. If you have any questions about our proposed approach or estimated costs, please do not hesitate to contact me at (949) 347 -2780. Sincerely, 5� Steve Cappellino Partner, Anchor QEA, L.P. Initiate agency consultation process to alert them of - - - -- potential project Hold public workshops to describe project and solicit feedback Collect sediment cores for geotechnical and chemical analyses at potential CAD site in West Lido Anchorage area Visual observations of sediment cores suggest "clean" beach - suitable material Initiate CEQA process Ongoing agency coordination Prepare draft CEQA document and submit permit applications Public and agency review Yes No Collect cores from alternat locations in North and Sou anchorage areas Yes Visual observations of sedim cores suggest "clean" beac suitable material Initiate 30 percent engineering design Coordination meeting with USACE engineers Review available site data Yes Collect to determine if additional addition information is needed No Prepare 30 percent plans and specifications City of Newport Beach and USACE internal review Attachment Anchor QEA,L[C 2009 STANDARD BILLING RATES Professional Level Hourly Rates Priucip/Q........~~......................................~~.. $190 Senior Project Manager .............................................................................................................. $l77 ProjectManager ......................................................................................................................... $l5? Senior ..............—._^.---~...... $137 Staff.................. ....................................................... $l%8 Staff 2 ...~~.~.........................$llO Staff ..............—...~.~.._~~.... $99 FieldTechnician ........................................................................................................................... $80 SeniorDe»igoeoICAD ................................................................................................................... $A9 Designer/CAD .............................................................................................................................. $89 ProjectCoordinator .............................................................................. ....................................... $?9 Special Hourly Rates All work hvw testitdng expert .............................................. ...... l.5times professional level rate EXPENSE BILLING RATES Exnense Rates Diving Services (per day) ......................................................................................... Project Specific (per hour) ............................................................................................... $l0JX) Graphic Plots (varies with plot size) ...................................................................................... $3^6/mf Photocopies (per copy) .---...~..~............~...~..~~......._.... $VJO Faxes(per page) .................................................................................. ..................................... $1J0 FEE ON LABOR AND EXPENSE CHARGES ...........~..~~.......~.....~......~...lV% Travel and other direct costs ...—._~~.~..~.~~......~.~........~._-...~l#% Fieldequipment& supplies ........................................................................................................ l0% Everest International Consultants, Inc. Rate Schedule Everest International Consultants, Inc. will provide professional servioes at the following rates beginning January 1, 2008. Staff SWAM Hourly Rate Principal Engineer $170 Senior Engineer/Scientist III $157 Senior Engineer /Scientist II $145 Senior Engineer /Scientist 1 $2.20 /ea. Engineer/Scientist $113 Assistant Engineer $99 Staff Engineer $86 Technician /CAD Operator Clerical $49 Other Direct Costs Unit Rate Plotting Bond $1.10 /$1.10/81 Vellums $1.601s.f. Mylars $2.70 /s.f. Copying/Binding 8.5 x 11 b &w copy so. 10lea. 11 x 17 b&w copy $0.25/ea. 8.5 x 11 color copy $1.10 /ea. 11 x 17 color copy $2.20 /ea. Binding (Reports) $2.50 /ea. Transportation Personal Car (Mileage) $0.585 /mile Other Project Related Expenses Other expenses are invoiced at cost without mark up. Subconsultant Services Subconsultants are invoiced at cost plus an agreed mark up. EVEREST Name iLANCO ENVIRONMENTAL, LLC., WBE /SBE 2009 Billing Rate Rate Lora Granovsky $120/hour "RECEIVED AFTER AGENDA PRINTED:" :F I la 1 -14-°C7 RECEIVED John F. Skinner, M.D. 1724 Highland Drive 2V JUL 13 PH 9: 37 Newport Beach, CA 92660 (949) 650-5588 OFFICE F iskinnermd @ m aol.co CITY OF NEWPORT BEO July 8, 2009 Newport Beach City Council 3300 Newport Boulevard Newport Beach, CA 92663 RE: Lower Newport Bay Dredging - Support for the CAD Option Dear Mayor Selich and Members of the Council: I have been briefed on the various options for dredging Lower Newport Bay and I am writing to urge your support for the Confined Aquatic Disposal (CAD) option. It appears to be safe and environmentally sound as well as being the least expensive option. I believe it is the logical choice when compared to upland disposal or barging the toxic sediments a long distance from the Bay, both of which are more costly and are accompanied with significant environmental impacts. Sincerely, ack Skinner City of Newport Beach NO. BA- 10BA -001 BUDGET AMENDMENT 2009 -10 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues qX from unappropriated fund balance EXPLANATION: AMOUNT: 53ss,000.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance COUI CIL AGENDA N0.4% 1,4004 This budget amendment is requested to provide for the following: To increase expenditure appropriations from Tidelands fund balance to the Newport Harbor Dredging Project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 231 3605 Tidelands - Fund Balance REVENUE ESTIMATES (3601) Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Signed: Signed Signed: Approval: AdminisVGptive Services Director City Manager City Council Approval City Clerk Amount Debit $395.000.00 ' Automatic Credit $395.000.00 / Date (.r 3 O D e Date Description Division Number 7231 Tidelands - Capital Projects Account Number C4402001 Newport Harbor Dredging Project Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed Signed: Approval: AdminisVGptive Services Director City Manager City Council Approval City Clerk Amount Debit $395.000.00 ' Automatic Credit $395.000.00 / Date (.r 3 O D e Date