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HomeMy WebLinkAbout13 - Lower Newport Bay Eelgrass Restoration ProjectITEM i3 TO: Members of the Newport Beach City Council FROM: Tony Melum, Division of Harbor Resources SUBJECT: Lower Newport Bay Eelgrass Restoration Project RECOMMENDED ACTION: Authorize the City Manager to sign a Letter of Intent authorizing the City's participation in the Lower Newport Bay Eelgrass Restoration Project as co- sponsors with the County of Orange and the Army Corps of Engineers. BACKGROUND: Eelgrass (zostera marina) has been identified as a sensitive marine resource by the California Department of Fish and Game (DF &G), the National Marine Fisheries Service (NMFS) and the U.S. Fish and Wildlife Service (USF &W) because of the many biological attributes associated with the eelgrass community. Typically, the presence of eelgrass indicates a healthy ecosystem and contributes significantly to the habitats of a wide variety of organisms. Consequently, if a proposed project may cause a reduction of eelgrass acreage, structure and function, a mapping survey must be done to determine how extensive the resource is and how the project will affect the resource. Methods to avoid disturbances or compensate for potential impacts must also be identified. One method of compensation that has been investigated over the years has been mitigation as outlined in the Southern California Eelgrass Mitigation Policy. If eelgrass is in a location that is affected by a project, the alternatives for project proponents are either to stop the project or to mitigate. Mitigation is currently accomplished either on -site or off -site. On -site mitigation can be problematic. If the project causes additional shading once the structure is built, on -site mitigation is not an option. Areas that need to be periodically dredged present similar problems in that to redredge, proponents would have to do on -site mitigation continually. Most experts agree that the most viable alternative for Lower Newport Bay would be for off -site mitigation. Currently, DF&G, NMFS, and USF &W do not believe that there are any appropriate areas in the Lower Newport Bay that would sustain off -site mitigation. This situation could be remedied by implementing a proposed Lower Newport Bay Eelgrass Restoration Project as drafted by the US Army Corps of Engineers (US ACE). The Restoration Project would substantiate the viability of eelgrass growth in the Lower Bay. In preparation for the Project, the City and County identified 14 sites to plant and grow eelgrass. Those were eventually narrowed to S sites. These eight sites, Newport Beach City Council Page 2 once planted and viable, could serve as enhanced habitat within Lower Newport Bay and may be potential locations for off -site mitigation. As currently planned, US ACE would administer the project with input from NMFS, USF &W, DF &G, the County of Orange and the City. The one -time cost of the project is estimated to be $300,000. $200,000 of that will be paid by the Corps. The $100,000 remaining will be split, with $65,000 paid again by the Corps and $35,000 paid by the City and County collectively. The City and County's share (350) can be satisfied either by direct payments or in -kind services. We anticipate placing a CIP request for the City's share in the FY 2001 -02 City Budget. Ongoing maintenance costs will be approximately $10,000 per year. The City and County (with direct assistance from harbor permittees using the Project sites for off -site mitigation) will be wholly responsible for maintenance. Once the sites were transplanted from donor beds in Lower Newport Bay, the success of the project would be determined by post - construction monitoring. Transplanted sites would be monitored and assessed in accordance with the Southern California Eelgrass Mitigation Policy. The City's participation in the project will be contingent upon the City and the County negotiating what's called a Safe Harbor Agreement with the regulatory agencies. A Safe Harbor Agreement provides an opportunity for a property owner — such as the City or County - to use their property in a way that benefits fish, wildlife and plants (particularly endangered species) without being subject to increased property-use restrictions. For instance, if the newly - planted eelgrass beds expanded beyond their design limits, work in those areas would not be subject to mitigation. Also, if the new beds became foraging areas for the endangered California Least Tern, activities around the new beds would not be restricted as they are now in the Upper Bay. To begin implementing the Eelgrass Restoration Project, this Agenda Item asks the City Council to authorize the City Manager to issue the attached Letter of Intent. The Letter allows US ACE to use current federal funds authorized for the project (funding authorization expires October 1, 2000) by carrying over the funds to FY 2001. This additional time gives the affected parties time to prepare, present, and seek approval for the Safe Harbor Agreement. ATTACHMENT. Eelgrass Project Letter of Intent Newport Beach City Council September 12, 2000 U.S. Army Corps of Engineers Los Angeles District Pam Castens 911 Wilshire Blvd. Los Angeles, Ca 90017 Re: Lower Newport Bay Eelgrass Restoration Project Letter of Intent Dear Ms. Castens: The City of Newport Beach intends to join with the County of Orange as local sponsors in concert with the Army Corps of Engineers to restore eelgrass in Lower Newport Bay. Recognizing that the beds in the Lower Bay are functional and extremely important to the local and regional ecosystem, the proposed restoration project will develop a plan that would restore and increase the total acreage of eelgrass in Lower Newport Bay. The beds would be restored beyond existing conditions and enhance the overall productivity of the Bay ecosystem — while providing locations for a mitigation bank and offsite mitigation as required by the Southern California Eelgrass Mitigation Policy. The City's participation in this project is contingent upon the City and the County negotiating a Safe Harbors Agreement with the Army Corps of Engineers and the other regulatory agencies prior to implementation of the project. The City looks forward to working with the Corps on this important project. Sincerely, Homer L. Bludau City Manager