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HomeMy WebLinkAbout27 - Maintenance Dredging in Lower Newport BayCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 27 September 9, 2008 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 cmi ller @city. newport- beach. ca. us SUBJECT: Maintenance Dredging in Lower Newport Bay ISSUE: Over the course of the next year the Newport Beach City Council, with the advice of the Harbor Commission, staff and consultants will need to make several decisions about how to implement a maintenance dredging project in Lower Newport Bay. The magnitude of this project could be the largest maintenance effort undertaken in the Lower Bay in over 70 years. During that time period the process and complexity of implementing such a project has changed significantly. The one component that has not changed has been the difficulty in financing such a large and important undertaking. To help guide in the decision making, staff has developed a guide of important accomplishments that need to be achieved and a Decision Tree to help us ensure that we meet those accomplishments. Tonight, the City Council will be asked if staff and the consultant team should embark on the process as it has been mapped out, realizing that there will be many important decisions and plan revisions that will occur as we proceed. This afternoon's study session with the Harbor Commission assists with the important collaborative approach necessary for a successful project. RECOMMENDATION: Approve conceptual approach as outlined in the Accomplishments Guide and Decision Tree. Approve the proposal to develop a Dredged Materials Management Plan (DMMP); Authorize the Mayor to execute a Professional Services Agreement with New Fields Consultants that is necessary to implement the DMMP. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 2 4. Adopt Budget Amendment #BA -- taking $200,000 in unappropriated General Fund reserves and assigning these funds to Capital Improvement Project #7014 - C4402001 (Newport Harbor Dredging Project). DISCUSSION: Through the early 1900s the City and County struggled with developing a harbor in the Lower Newport Bay that was safe for navigation. The City and County expended funds derived from both a local bond act and a developer's purchase of dredged material for island construction, to dredge navigation channels and construct a safe harbor entrance. Despite all of their efforts, it wasn't until the mid 1930s that Congress determined there was a federal interest in having a safe harbor along the Southern California Coast between Los Angeles and San Diego. In 1936, Congress approved Harbor Lines for Newport Bay and the US Army Corps of Engineers (Corps) started to make the much needed improvements to the harbor. In those early years, there was a lot of local interest in developing commerce in Lower Newport Bay. Due to many factors including World War ll, the commerce never developed. However, Newport Bay did provide important assistance in the construction of mine sweepers and Coast Guard vessels for the War effort. Newport Bay was also the site of decommissioning of many of the wartime vessels. The legacy of those and other shipbuilding and ship maintenance efforts lives on today in the sediments of Newport Bay. Because most of Newport Bay has not received maintenance dredging since the development in the mid 1930s, the legacy of past practices haunts us as we try to develop a plan to return the Bay to its original design depths created by the Corps over 70 years ago. The fact that there has not been a regular program of maintenance dredging during that period increases the difficulty in implementing a project at this time due to sediment quality and funding issues. Typically, the Corps determines how to expend limited maintenance dredging funds based on an algorithm that is heavily weighted on the amount of commerce in a harbor. Since commerce never developed here as anticipated, Newport Harbor can't compete with the big commercial ports (like the Ports of Long Beach and Los Angeles) for maintenance dredging funds; therefore, the City needs to work with our local Congressional delegates to get funds earmarked for such a project. Efforts to accomplish this have not been successful due to other national priorities, thereby forcing the City to develop other creative enticements to attract federal funding for the needed maintenance dredging. Currently, the most promising option appears to be a combination of local funding match coupled with a "one and done" approach. With this approach, Congress would de- authorize a federal interest in future dredging responsibilities in exchange for funding and authorizing dredging the federal areas of responsibility to the design depth. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 3 The sediment quality issues are even more challenging than the funding issues. The legacy of past practices in the Lower Bay, the influx of sediments from the watershed after the flood of 1969 and the rapid development and drainage changes in the watershed have each deteriorated sediment quality. These sediment quality issues were so significant that the Regional Water Quality Control Board and EPA promulgated sediment quality regulations referred to as TMDLs (Total Maximum Daily Load). Projects in the watershed and Upper Newport Bay are making great strides in trying to meet these requirements which are very important in Implementing a comprehensive sediment management plan in Newport Bay. There is more to be accomplished in the source control and completion of the dredging of the In -Bay sediment control Basins in Upper Newport Bay. These basins function to trap fine grained particles that the foothill basins and the in- channel basins do not trap up in the watershed. These In -Bay basins are effective in trapping a significant portion of the fine grained sediments as evidenced by the approximately two million cubic meters of sediment that is currently being removed as part of the Upper Newport Bay Ecosystem Restoration Project. However, there have been some unintended consequences that have resulted as part of this important sediment control program. During most storm and no -storm periods, sediment inflows from the watershed are trapped in the watershed and Upper Bay basins. The basins are fairly effective in trapping sediment in even the large storms except for the very fine grained component of the storm discharge. This very fine grained material needs salt water and slow velocity to coagulate and drop out of suspension. Unfortunately, this very fine grained component contains many of the pollutants from the watershed adsorbed on to the particles. Without the sediment basins the Lower Bay would receive more sediment input but it would be diluted with coarse grained sediments that do not carry the pollutants. The concentration of fine grained sediments in the Lower Bay, even without the adsorbed pollutant load, is toxic to some benthic animals in the Bay such as amphipods. In 2003, the Corps completed some required sediment quality analysis in preparation for a dredging project in the Lower Bay. Where they found predominantly coarse grained material (near the harbor entrance), the material was found acceptable for either beach or ocean disposal. Where they found predominately very fined grained sediments, the material failed "Tier II" tests of the Inland Testing Manual (a.k.a. "Green Book "). At this point, the Corps made a decision to only dredge the material that passed the required tests and to discontinue testing locations with fine grained materials. At about this same time, Harbor Resources and its consultants were performing sediment quality tests for dredging in the dock areas of the harbor that are not the maintenance responsibility of the Corps. This dredging has historically been performed by the adjacent upland property owner with assistance from the City in the form of a Regional General Permit known as RGP -54. The testing completed under RGP -54 showed that some areas of the Lower Bay also failed testing criteria for various reasons. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 4 The City Council approved the expenditure of funds to continue on with some of the tiered testing in any effort to find acceptable material for beach or ocean disposal in both the RGP area and the federal channels. The Sediment Management Map in Exhibit 1 is color coded to show different areas of the Bay and the issues related to sediment disposal either in the ocean or upon our beaches. Exhibit 2 shows a timeline for completing the necessary tests in each of the problem areas. These two documents are part of a proposal to develop a Dredged Materials Management Plan (DMMP) for Lower Newport Bay. Exhibit 3 shows that there are many items that need to be achieved to have a comprehensive plan for sediment management. Dredging permit acquisition is far more achievable if the regulatory agencies can see that the project proponent has a comprehensive plan. Exhibit 4 shows the decisions that need to be made as we gain information from the testing. A very important consideration is that, in proposing this approach, staff is trying to be fiscally responsible in completing a critically needed project at the lowest possible cost for federal and /or local funding. If testing demonstrates that certain areas of the harbor have contamination that would make beach or ocean disposal an unlikely option, then further testing will be discontinued and other more costly disposal options such as Contained Aquatic Disposal .(CAD) or upland disposal will be pursued. Some level of testing is required to obtain permits for all types of disposal. Ocean disposal and beach disposal require the most comprehensive testing but lead to the least expensive disposal option and thus are worth the investment to pursue to a reasonable level. The proposed tiered testing approach will take us to critical decision points where we will make decisions about the proper path to follow. A criticism of this approach has been that the City has already performed tests and has wasted too much time, and that we should hire the contractor who is already working in the Upper Bay, therefore taking our chances with the regulatory agencies. If Newport Harbor had been regularly maintained and dredged, and without over 70 years of accumulation of past sins, then the current level of testing that we have completed thus far would probably be sufficient enough to acquire permits. However, the testing that we have completed to date has not found a "smoking gun" among the chemical constituents of concern, although some constituents appear be possible candidates. This may appear to be a problem, but the City is fortunate that the contamination is focused in limited areas, therefore narrowing the costly disposal options to these troubled areas. Another criticism to this approach is that it appears the consultants are simply creating work for themselves and /or the agencies are asking for an unreasonable level of testing. The Green Book is very clear and concise on the level of testing required for Tiers I through III. However, if you have not passed the requirements in those Tiers, then further testing becomes far more complicated and allows for some creativity to determine what causes the toxicity if you do not have the "smoking gun." Over the past few months the City has been working with the consultants on several iterations of a sampling and analysis plan that gives us options to follow different courses of action, at Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 5 different testing junctions, for specific areas of the harbor while . allowing sufficient information to pass on to the Regulatory Agencies for issuance of permits for those areas. This approach is not intended to break up the project into components that would circumvent the CEQA or NEPA process. Programmatic environmental documentation is proposed with site specific addendums based on issues found and methods of disposal selected. The bottom line is that dredging is a far more complex and costly undertaking than it was 70 years ago, and the proposed studies will assist the City in obtaining permit authorization to implement a more comprehensive dredging program in Newport Bay and thus providing safer harbor navigation while protecting the environment. Environmental Review: The approval of the Professional Services Agreement and the proposal to develop a DMMP are not projects subject to CEQA and do not require environmental review. The dredging project, when implemented, may be determined to be Categorically Exempt 15304 — Class 4: Minor Alterations to Land: Section g exempts maintenance dredging where disposal is in an area authorized by state and federal regulatory agencies. If contaminated sediments are found requiring the analysis of different disposal options, then additional environmental documentation may be required. Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meetings at which the City Council considers the item). Fiscal Impact: The extent of the technical problems with potential sediment contamination were not anticipated at the time we presented the FY 2008 -09 budget and Capital Improvement Program (CIP). At that time, the Council approved a checklist item for $100,000 for Newport Harbor Dredging (CIP #7014- C4402001). An additional $200,000 is required from the unappropriated General Fund reserve to account #7014-C4402001. Prepared by: tv i Miller, Harbor Resources Manager Attachments: Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Submitted by: Dave Kiff, Assistant City Manager Sediment Management Map Testing Timeline Comprehensive Steps to Dredge Lower Newport Harbor Dredging Decision Tree New Fields Professional Services Agreement & DMMP Budget Amendment BA #_ Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 6 Exhibit 1 Sediment Management Map `Q Newport Harbor Dredging Areas - Passed in pass fat ,passesdoing Fa derd Clibi PMIrrwhere Testing f -- lade to pass I, ocean dlspolal but may t m re i Ter II V whim, Testing. - Pallas for t.Woy In iffs, e, put Rp onlarnma s m surface Salim-, I WP a I likely W prevent sown disposal 0pdw drten0f Mudplg �e'ticd ens i node Oand May be eple 10 menage upper 3A ddlerenllYAen vndertylnp send Passed m RGP -9l but m- sealea11h,Ppd nislaill in F—I Charms 'samples. filling empMpod sludy YJpuld re(vre UioeCCUmuktm leaf n91f enpltlpM IaA pessa i Pissed In RGP56 . but ampHpps mortality in Pederel Q Immaal samples .May W 6dd..d In ampnlpod study tt TIE i''YWJ Tali blba[Nmuliii Testng if dmphip. fast passes O d Nawaa a Mgai prajaG aril. new 0 aifalmi W.Id be lapunad. +11 t't4-Tilt-%\ k WE 6 0 025 0.5 Mips Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 7 Exhibit 2 Testing Timeline off additional testing is needed, timeline may be altered. ' Timeline is dependent upon start date. O O N N D1 N U i y O N > � co Y W O {S{ ; Q O E CL �• = >1 '�. a-, = O 0) 7 V O O [Q N N C 0 i Y E L U 7 X l4 .= y U O CO L y O J Y l6 Q. Area l4 E N O> w y C L 0¢ C 0¢ B • E • Time to Sept - Nov 08 Completion' A • • • • c. C • • • • D • • F • • • G • • • Time to Sept -# Oct Jan 09 Feb 09 Completion H • • • • o Time to Sept Oct ♦ Dec —r] Feb March May 09 Completion off additional testing is needed, timeline may be altered. ' Timeline is dependent upon start date. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 8 Exhibit 3 Comprehensive Steps to Dredge Lower Newport Harbor WHAT NEEDS TO BE ACCOMPLISHED TO DREDGE LOWER NEWPORT BAY Current Efforts Neaded.Efforts 1. Draft DMMP Phased Sampling Integrated Final antl Analysis.... Programmatic Plan 2:. Draft HAMP 13. Draft Eelgrass 4. Final Rhine Channel Remediation Plan 5. Draft IRWMP r Completion of UNB Ecosystem Restoration and Watershed Sediment 8. Implementation of Source Reduction Projects to Reduce UNB Ecosystem . Currant and Future Restoration Project Deposition In Lower bay and comply with TMDL. 7. Draft Harbor Fee Federal and/or Funding Plan 8. Lobbying. for Federal Funds and Project Authorization Desired Result Programmatic Area Environmental Documentation Documentation If necessary Implena3ntable Maintenance . Dredging Projeot Vdu- CekvYWeS to a Remo SVmerrt IrnmuGOm. Renee IXAMP: �- Retuev COUnrN eoaexm a scox a Nbrk Ckanpe. 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J I L -- PeyeA COE b FRpM CD CL co ❑ CD n 0 CD 1 0 m x m N R 0 b m ti vm m F m b � � O d b 4`c Maintenance Dredging in Lower Newport Say September 9, 2008 Page 10 Exhibit 5 PROFESSIONAL SERVICES AGREEMENT WITH NEWFIELDS COMPANIES LLC FOR DEVELOPMENT OF A DREDGED MATERIAL MANAGEMENT PLAN FOR LOWER NEWPORT BAY THIS AGREEMENT is made and entered into as of this _ day of , 2008, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and NEWFIELDS COMPANIES, LLC, a Georgia Limited Liability Company whose address is 1349 West Peachtree Street, Suite 2000, Atlanta, Georgia 30309 ( "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 in the near future. However, before dredging can occur, the sediment must be tested in order to determine the appropriate disposal strategy. C. City desires to engage Consultant to develop a Dredged Material Management Plan (DMMP) which will provide the necessary data for a staged harbor wide maintenance dredging program to return the channel depths to design, or near design depth. ( "Project"). D. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member[s] of Consultant for purposes of Project, shall be Mr. William Gardiner, Dr. Jack Word and Dr. Thomas Johnson. F. 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: Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 11 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 31st day of December, 2009, 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 the services shall be performed to completion in a diligent and timely manner. The failure by Consultant to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand - delivery or mail. 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 Two Hundred Ninety Eight Thousand Two Hundred Seventy Four Dollars and nol100 ($298,274.00) without prior written authorization from City. Maintenance Dredging in Lower Newport Bay SeptemberR 2008 Page 92 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 shall 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. 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. 4.4 Notwithstanding any other provision of this Agreement, when payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made until City has accepted the final work under this Agreement. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 13 5. 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 Mr. William Gardiner 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 Department. Chris Miller, Harbor Resources Manager, shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her 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. B. Provide blueprinting and other services through City's reproduction company for bid documents. Consultant will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Consultant and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 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 Maintenance Dredging in Lower Newport Say September 9, 2008 Page 14 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 any breach of the terms and conditions of this Agreement, any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and/or willful acts, errors and/or omissions of Consultant, 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 or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 95 action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 16 A. Certificates 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 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. i. 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 Employers Liability Insurance in accordance with the laws of the State of California for all of the subcontractors 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 97 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: 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 parry except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. Maintenance Dredging In Lower Newport Say September 9, 2008 Page 18 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 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 Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 19 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 All written documents shall be transmitted to City in the City's latest adopted version of Microsoft Word, Excel, or PDF format. Consultant shall provide all project documents on a CD accompanied by one set of printed documents. 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 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 Maintenance Dredging In Lower Newport Bay September 9, 2008 Page 20 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 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 bome 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 21 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. 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: Attention: Chris Miller City of Newport Beach, Harbor Resources 829 Harbor Island Drive Newport Beach, CA, 92660 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: Mr. William Gardiner NewFields Companies LLC 4729 NE View Dr. Port Gamble, WA 98364 Phone: (360) 297 -6080 Fax: (360) 582 -1679 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 22 Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 23 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 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. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 24 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: Aaron C. Harp, Asst City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Edward Selich, Mayor for the City of Newport Beach CONSULTANT: By: (Corporate Officer) Title: Print Name: By: (Financial Officer) Title: Print Name: Attachments: Exhibit A: Scope of Services Exhibit B: Schedule of Billing Rates Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 25 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: A' C" ff 01�_ Aaron 6. Harp, Asst City Attorney for the City of Newport Beach ATTEST: By: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Edward Selich, Mayor for the City of Newport Beach CONSULTANT: By: (Corporate Officer) Title: Print Name: By: (Financial Officer) Title, Print Name: Attachments: Exhibit A —Scope of Services Exhibit B — Schedule of Billing Rates 14 Maintenance Dredging In Lower Newport Bay September 9, 2008 Page 26 Exhibit A Scope of Services Proposal to Develop a Dredged Material Management Plan for Lower Newport Bay Prepared for City of Newport Harbor Resources Prepared by NewFields LLC Continued sedimentation and delayed maintenance dredging in Lower Newport Bay have created unsafe conditions resulting from the narrowing and shoaling of the Federal channels and decreased depths in key anchorages throughout the Bay. The City of Newport Beach (City) and the United States Army Corps of Engineers ( USACE) seek to re- establish adequate water depths throughout the Bay, including the Federal Channels, berths, mooring fields and in key anchorages. As part of a harbor -wide dredging program, the City is evaluating their own priorities for dredging within the harbor and to determine all potential disposal options for the Lower Newport Bay sediment. Historically there have been two major programs that maintain safe harbor depths for recreational and commercial boat operations in Newport Bay. The Federal Programs conducted by the USACE provides maintenance dredging between project lines adjacent to opposing bay shorelines in the authorized Federal waterways. The City of Newport Beach Harbor Resources Program maintains depths in Newport Bay tidelands granted in trust to the City by the State of California. and assists private property owners in the dredging of the private and public berths via individual permits and the Regional General Permit (RGP 54). In addition, the County of Orange is responsible for maintenance dredging in tidelands granted in trust to the County by the State of California. Since 1936, the Army Corps of Engineers has performed limited maintenance dredging, primarily focused on the Harbor Entrance and Upper Newport Bay Channel. Currently, Congress has determined that there is a federal interest in having the USACE perform an ecosystem restoration project in the Upper Newport Bay. Some of this dredged material is used for habitat creation; while the RGP -54 program provides sediment for use as beach replenishment. Both programs also provide alternatives to these beneficial uses which include disposal of SUAD (Suitable for Unconfined Aquatic Disposal) sediment in designated ocean disposal sites or confinement and isolation of UAD (Unsuitable for Unconfined Disposal) sediments in acceptable upland disposal sites. This proposed dredged material management program will provide necessary data for a staged harbor -wide maintenance dredging program to return channel depths to design, or near design depth. Within this larger program, there are smaller project areas that may be accelerated based on available information and funding. Maintenance Dredging in Lower Newport Say September 9, 2008 Page 27 Background: The proposed dredged materials may be disposed of in two ways, in -water disposal or upland disposal. In -water disposal options for Newport Bay typically include alternative reuse of acceptable shoaled sediment within the Bay or open -water disposal of SUAD materials at the LA -3 Disposal Site. In -water disposal in confined aquatic disposal (CAD) site(s) are additional in -water options that the City may wish to consider. Any in -water placement option requires an evaluation of the proposed project sediments following US Army Corps (USACE) and US Environmental Protection Agency (USEPA) guidelines. This process requires a tiered evaluation, including some or all of the following evaluations: • Historical evaluation of the potential for specific contaminants to be present based upon past history of the location and the selection of Chemicals of Potential Ecological Concern (COPECs); • Sediment chemistry analysis to document the presence of any chemicals of potential concern at concentrations that pose a potential for unacceptable risk; • Toxicity testing to determine whether the proposed dredged material may cause short - term or long -term biological effects in the receiving environment; and • Bioaccumulation potential, or the potential for COPECs to enter the food web. Sediment is only eligible for beach replenishment if it consists primarily of sand, is free of contaminants, of the correct color, and does not have unacceptable odors. Ocean disposal allows for placement of a wider range of sediment grain sizes, provided the material meets acceptability criteria for chemistry, toxicity, and bioaccumulation. Disposal at a CAD site allows for some level of chemical contamination in the dredged material, provided that the cap overlaying that sediment is deep enough for it to remain isolated from any sediment dwelling organisms. Upland disposal options include clean fill, construction materials, disposal at a landfill, or disposal at a contaminated materials waste facility. Upland disposal generally requires soil chemistry analysis and some type of leaching tests to determine if contaminants can be mobilized by rain water. The types of analyses that are required will be program and placement area dependent and would be determined in coordination with the regulatory agencies. The City and USACE have collected some of the information necessary to determine the suitability of proposed dredged material throughout the Bay. This data has been collected during the RGP -54 permit renewal in 2005 (Gardiner et al. 2006), as well as two investigations targeting the Federal Channels in 2006 and 2003 (Gardiner et al. 2006; Moore et al. 2003). While the collected data was specific to those projects, much of this information can be applied to current dredged material evaluation. However, some areas have not been previously sampled, or will require a certain amount of additional information in order to determine suitability and the appropriate disposal options. This proposal provides a roadmap for each of the proposed project areas and then describes an approach to address each of the key data gaps. The primary goal of this DMMP is to determine dredged- material options for Lower Newport Bay sediment. This will be accomplished by following a step -wise approach, developed in coordination the City, USEPA, and USACE, in order to expedite the process and minimize the amount of additional data that will be required to determine suitability. The specific objectives to develop the harbor - wide DMMP are: Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 28 1. Develop a detailed step -wise approach to evaluate the sediments throughout the Lower Newport Bay, incorporating as much of the previous data as possible. 2. Develop a sampling and analysis strategy that will provide suitability determinations for portions of the lower Bay in 2008 and early 2009, while continuing to evaluate other portions of the harbor that may have more complex data requirements. 3. Compare the current bathymetry in the lower Bay to that of 2005 to determine all locations where previous data represent current conditions. 4. Determine an appropriate amphipod species for testing toxicity of Newport sediment. Amphipod tests have been problematic in Lower Newport Bay, largely due to the unusually fine grain size of these sediments. 5. Conduct amphipod toxicity tests with the selected species. 6. Fill remaining data gaps for those locations that meet amphipod testing criteria, supporting the upcoming RGP -54 permit where possible. 7. Define the nature and extent of mercury in the West Lido Channel. 8. Refine toxicity identification evaluations (TIE) studies for the Lido Island Anchorage and nearby areas. 9. Develop reference values for the LA -3 Reference site. 10. Complete Options/Altematives analysis for each management area as sufficient data is available. In order to accomplish these objectives in a timely and cost - effective manner, NewFields will work closely with the City and regulatory agencies in developing an approach that will fulfill their regulatory requirements, while capitalizing on available data. Where possible, NewFields will conduct multiple study elements concurrently to minimize the project schedule. Furthermore, this program will be conducted in conjunction with the Marina Park sampling and analysis program to provide further time and cost savings. Management Areas: The management areas for the proposed harbor -wide dredging program are delineated based on sediment management needs, as well as the sediment quality data that is currently available. For the purposes of this DMMP, there are ten management areas defined within Lower Newport Bay. Many of these areas include a portion of the Federal Channel, as well as mooring fields; however, in order to maximize the management options for the City, there are some areas that are limited to a specific Channel reach or anchorage. The management areas and the pathway forward for each area are described in this section. A map of the areas and a proposed pathway forward with timeline are presented in Figure 1 and Table 1. The ten management areas are as follows: Area A includes portions of the eastern Newport Channel to the Entrance Channel and includes the "A ", `B ", and BYC Moorings. Area B includes the eastern and northern portion of the Balboa Island Channel from the Promontory Bay entrance to the Balboa Yacht Club, inclusive of a portion of the "D" moorings. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 29 • Area C includes the western portion of the Balboa Island Channel, from the Promontory Bay entrance to Harbor and Collins Islands, inclusive of a portion of the "D" moorings. • Area D includes the western portion of the Newport Channel inclusive of the C moorings to Collins Island. • Area E includes the nearshore portions of Linda, Harbor, and Collins Islands. This area is designed to capture shoaling areas along the edges of these islands. • Area F includes the main channel in the central harbor and west of Linda Isle, including the G moorings. • Area G includes Lido Channel from the Lido Village turning basin to the Anchorage, but not including the anchorage. • Area H is limited to the Federal Anchorage area at the eastern end of Lido Isle. • Area I includes portions of the Newport Channel east of 10`h Street and east of the "F" and NHYC Moorings. • Area J includes the West Lido Channel and Newport Channel west of 10`h Street. '1 Maintenance Dredging in Lower Newport Bay September 9, 2006 Page 30 Newport Harbor Dredging Areas --1` Passed in RGP -51 . passed damns Feoeral l]vnnel Tar IV. Woes teal[,. - - 'ji,ay IO pass for IXHen dispdsel our may requae taoaL61malabon lei - Passed fa Iou U,y In R3P -54 out R9 poroanbaliaa in alleca spat"Vol IW ] II IIIkelyloprevemoceanalsposaj,dd, (lmendy sNdymp va4cfli and Mrzonml eximal May oe able to manage upper -311 dieeraMly Man uwalti ng a ma. 1676 — I Passed in RGP -56 but madersta empn,pod labium, m Faders channel ssmplas L*alyto be eadlessea In amphlpod Mudy.'Mula rubs¢ udapp, nulanm realms d amprnpw teal passes - Passed in RGP -5c but amPNPW ma19IIIy In Fadml caennal amities May peaddressedmam apadsluayaTIE. NWIdrepnrebibacmmulaEm IesOng if empngpd lest passes Oattlswee a targelM Prged area new cnareaalssaapn would oe repureb Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 31 If additional testing is needed, timeline may be altered. Timeline is dependent upon start date. 0O 0O N C V 'a N N r-. @ _ N .> r y=„ i6 O +.. y F Z a N °ice v > Q v T'r o Q c 0 m 0 N 7 i V 7 X M �, C W V R O N L y O> Y l4 Area m a f°— W a m Z a` o a B • E • Time SepC Nov 08 p et� C m n' A • • • • C • a D • • F • • • G • a • Time to Sept Oct Jan 09 Feb 09 Completion H • • • • Time to Sept Oct ♦ Decd Feb March —+ May 09 Completion If additional testing is needed, timeline may be altered. Timeline is dependent upon start date. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 32 Pathway Forward The pathway forward for each of these areas is based on the data that currently exists, whether there has been significant shoaling within the areas, and the data gaps that exist within each area. Development of a Step -Wise Approach Based on previous investigations, the data requirements for determining disposal options vary across Lower Newport Bay. In some locations, there may be sufficient data to determine suitability. In other locations, amphipod toxicity potentially related to sediment grain size, a lack of bioaccumulation data, or a limited understanding of chemical concentrations or toxicity may be preventing a full characterization of the proposed dredged material. A step -wise approach will be developed to evaluate harbor sediments. This will maximize the amount of previous data that can be used in this evaluation despite the varied nature of that existing data. NewFields will work with the City and regulatory agencies to develop a sampling and analysis plan that will fill remaining data gaps for each management area independently but concurrently. Compositing strategies will incorporate vertical as well as horizontal groupings of stations. Bathymetry As a first step for each of the ten areas, the current bathymetry for each area will be compared to the 2005 bathymetry to determine whether significant shoaling has occurred since previous data were collected. Provided that significant shoaling has not occurred, previous data may be used to determine the suitability of proposed dredged material. If substantial sediment accumulation has occurred since 2005, those locations may require characterization of the newly deposited sediment. Development of a Step -Wise Approach Based on previous investigations, the data requirements for determining disposal options vary across Lower Newport Bay. In some locations, there may be sufficient data to determine suitability. In other locations, amphipod toxicity potentially related to sediment grain size, a lack of bioaccumulation data, or a limited understanding of chemical concentrations or toxicity may be preventing a full characterization of the proposed dredged material. A step -wise approach will be developed to evaluate harbor sediments. This will maximize the amount of previous data that can be used in this evaluation despite that varied nature of that existing data. NewFields will work with the City and regulatory agencies to develop a sampling and analysis plan that will fill remaining data gaps for each management area independently but concurrently. Compositing strategies will incorporate vertical as well as horizontal groupings of stations. This task includes the preparation of a sampling and analysis plan and coordination with agencies to facilitate the implementation of that plan. Amphipod Evaluation A number of the Study Areas have not been approved for aquatic disposal due to amphipod toxicity. These include Areas A, C, G, H, and I. The role of sediment grain size remains unclear for Newport sediment evaluations. Lower Newport Bay is somewhat unusual in that the sediment has a high proportion of very fine clay. Amphipods that are often used in Lower Newport investigations (Eohaustorius estuarius) are intolerant to high proportions of clay. Typically the role of sediment grain size is suspected when there is little if any sediment chemistry Maintenance Dredging in Lower Newport Bay Septem6er9, 2008 Page 33 contamination and moderate levels of toxicity typically manifested only in the amphipod test. This has been particularly problematic for the Federal Channels dredged material evaluations, in which a number of reaches have had moderate amphipod toxicity associated with low concentrations of contaminants of concern. Fine - grained sediments may also continue to be a factor in Newport if the trend for increasing clay deposition continues in the future. We propose to conduct a sediment grain size test using Lower Newport sediment with a suite of amphipod species that are considered acceptable for evaluating sediment. Test species would include Eohaustorius estuarius, Ampelisca abdita, Grandidieralla japonica, Leptocheirus plumulosus, and Rhepoxynius abronius. Tests will be conducted as standard 10- day.amphipod tests using a gradient of grain sizes. Test sediments will be Lower Newport sediment of varying grain size. Once a suitable amphipod species is selected, Areas A, C, G, H, and I will be reevaluated for amphipod toxicity. If the amphipod tests for a given area composite passed suitability criteria, any required additional information for that respective area would be collected. Characterizing Locations Not Included in Previous Evaluations In order to provide for a harbor -wide dredging program, USEPA indicated that the agencies will require some additional stations to characterize locations that were not included in previous investigations. These generally include some of the key moorages that were not part of the Federal Channels and are not near enough to shore to be represented by the RGP -54 investigation. At a minimum, this will include the A, B, G, H and J moorings, the confluence area between Bay and Linda Isle, and possibly the C moorings. Sediment characterizations of these areas will be required to include sediment chemistry, toxicity testing, and bioaccumulation testing. However, evaluations of these locations will be conducted in conjunction with other portions of this program to ensure that field and analyses efforts overlap, minimizing costs and ensuring similar data quality. Bioaccumulation Testing USEPA and USACE require an evaluation of the potential for COPECs in sediment to enter the food chain. Bioaccumulation is evaluated by exposing sediment- dwelling prey species (usually a clam and sand worm) to test sediments in the laboratory. After a period of 28 days, the chemical residues in the tissues are measured and compared to guidance values. While near -shore sediments in each of the project areas have not shown unacceptable bioaccumulation potential, the Federal Channels and mooring fields have not yet been evaluated for bioaccumulation potential. For those areas passing amphipod toxicity testing, bioaccumulation potential will be evaluated. The COPECs that will be analyzed in tissues will be selected in conjunction with USEPA and will be limited to those chemicals in sediment exceeding guidance levels. Mercury and TIE Investigations Based on previous sediment evaluations, sediment from two portions of the Bay have been identified that will require additional sediment evaluation due to mercury concentrations in sediments or unexplained amphipod toxicity. These investigations will need to be completed in Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 34 order to determine the disposal options for sediments. This includes sediment from Areas H, I, and J. The following sections summarize each issue and outline our approach. Mercury in West Lido and Newport Channels: Sediment evaluations in support of the City's 2005 RGP -54 permit renewal indicated three stations with mercury concentrations that exceed ER -M guidance levels. In 2007, NewFields conducted high resolution sampling in the West Lido Channel to refine the area with elevated mercury concentrations and to establish gradients to help identify a source. Mercury concentrations were unexpectedly elevated across the study area, including most of the West Lido Channel and portions of the Newport Channel. Following this result, NewFields met with the Harbor Resources staff to map a path forward. The following subtasks are proposed to determine the nature and extent of mercury contamination in Lido Channel and Newport Channel. This portion of the program will be conducted in conjunction with the Marina Park evaluation. The boundaries of the horizontal distribution of mercury contamination in Newport Channel will be determined by sampling additional stations in mid - channel and along the southern shore of Lido Island between the Rbine Channel and the Anchorage. Previously collected samples that had not been analyzed individually will be analyzed as part of this task. The vertical distribution of mercury in sediment will be evaluated in both West Lido and Newport Channel by collecting cores and analyzing several pre- selected vertical layers. The potential for anthropogenic or natural sources of mercury in West Lido Channel and Newport Channel will be evaluated by conducting provenance analysis; evaluating the ratio of mercury to other metals associated with specific sources. This analysis will also provide some indication of mercury bioavailability. Toxicity Identification in Yacht Anchorage: In 2007, NewFields conducted a sediment investigation specifically targeted at determining whether pyrethroids were the source of sediment toxicity in the Yacht Anchorage area. This study is called a "Toxicity Identification and Evaluation" or TIE study. The TIE uses a series of sediment manipulations to alter the toxicity of certain classes of chemical contaminants, followed by biological testing to determine whether test sample toxicity was altered by the manipulation. Each manipulation is targeted towards a group of chemicals and by combining several manipulations, the preponderance of evidence can implicate the cause of toxicity. This method is particularly useful when working with pyrethroids, since the analytical methods for detecting pyrethroids in sediment are still under development and the detection limits for pyrethroids are near or above effects levels for amphipods. The first series of TIE manipulations were conducted in January and February 2008 with samples collected in January 2008. Experimental manipulations were limited to broad groups of organic chemicals, as well as manipulations targeted towards pyrethroids and organophosphorus pesticides. Based on the results of this first round of manipulations, there are some indications that pyrethroids play a role in toxicity. There are also positive indications that toxicity is not associated with DDT, PCBs, PAHs, or OP pesticides. However, based on the current data, it is not clear whether there are other factors that play a role in toxicity. This is partly due to the magnitude of change in toxicity from the Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 35 manipulations conducted thus far (changes in toxicity were primarily observed in porewater, changes in sediment toxicity were small) and the targeted nature of the TIE. We propose to conduct an additional set of sediment manipulations and associated testing to confirm the link between pyrethroids and toxicity and to determine if grain size, metals, or organotins are also implicated. In addition, confirmatory chemical analyses will be conducted on test sediments. Achieving detection limits at or below biological effects levels is difficult, however, recent advances in analytical methods can allow for sufficiently low detection limits (Don Weston 2006). Establishment of Reference Values for LA -3 Disposal Site Reference Site In some USEPA regions, an "environs" approach has been used to evaluate dredged material, rather than sampling the reference site during each evaluation. The environs approach uses historic data collected from the reference area to establish mean reference values for each reference site. These reference values are then used as the point of comparison for dredged material evaluations, rather than retesting the reference sediment. This approach offers the City several advantages. First, data collected previously from the reference area are used to establish the reference area values, taking into account responses and contaminants present at the reference site. Second, the reference value is a predictable, "bright line" that test results are compared against. Using the environs approach, the suitability requirements for sediment are predictable and consistent. Finally, this approach relieves the project proponent of the costs associated with collecting and testing reference sediment for each sediment evaluation. This approach has been used effectively in the San Francisco region to manage dredged material. This approach is based on a body of information collected from the reference site and establishes a range of values for the reference site that are then used in dredged material evaluations. USEPA has expressed an interest and willingness to use the environs approach for LA -3. NewFields will compile historic data for the current LA -3 disposal site and establish mean values for chemical contaminants of concern, toxicity, and bioaccumulation potential. As part of the compilation, data will be reviewed for data quality and appropriate detection limits. Options /Alternatives Analysis The disposal options for each management area will be determined as sufficient data becomes available. NewFields will prepare an Options/Alternatives Analysis, reviewing the in -water and upland disposal options available to the City. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 36 SPECIFICS OF PROPOSED TASKS: Task 1: Bathymetry In order to determine whether previous sediment evaluations reflect current conditions, bottom depths from 2008 will be compared to those of 2005 and 2006. This was a task that was requested by USEPA to determine whether there had been significant shoaling since previous data were collected. NewFields will acquire the most recent Lower Newport Bay bathymetry from USACE, as well as those from 2005 and 2006. Data will be put into a geo- referenced, 3 -D contouring and surface mapping software (SURFERg that allows similar data points to be identified and changes in depth calculated. Sediment accumulation may be expressed as an absolute change in depth, or a change in depth relative to the overall column of sediment at a given location. Based on the depth or relative depth, NewFields will consult with the City and regulatory agencies to determine whether additional samples will be required. This task would include coordination of data transfer, identification of appropriate data sets, analysis of data and supporting Figure 1. Bathymetric contour for Oceanside Harbor as calculations, and agency negotiations. an example of SURFER software output. Task 2: Development of Step -wise Approach/Sampling and Analysis Plan Once the bathymetric analysis has been completed and the suitability of previous data sets is known, NewFields will prepare a programmatic sampling and analysis plan. Working with the City and regulatory agencies, NewFields will develop a step -wise approach and decision process that will allow for all areas to be evaluated concurrently and will allow determination and disposal options for specific areas to be evaluated as data becomes available. This will facilitate expedited determinations for areas with few data requirements, while study of areas requiring further analysis continues. Under this task, a sampling and analysis plan (SAP) will be prepared for review by the City to support initial discussions with USEPA, the USACE, and other resource agencies prior to conducting the sediment evaluation. Based on previous investigations we have performed in the Newport Bay area, we would expect an initial conference call with the USEPA and USACE prior to sampling. This task would include supporting any initial agency negotiations. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 37 We anticipate two field efforts with multiple tasks being grouped into each field effort to expedite the program and minimize costs. The first field effort would support the amphipod study and would be a short, one -day sampling event. The second field effort would be the more substantial effort and would support Tasks 4, 5, and 6. NewFields will work with the City to determine the best field schedule to meet the needs of the program elements. Task 3: Amphipod Study We propose to conduct a sediment grain size test using Lower Newport Bay sediment with a suite of amphipod species that are considered acceptable for evaluating sediment. Test species would include Eohaustorius estuarius, Ampelisca abdita, Grandidieralla japonica, Leptocheirus plumulosus, and Rhepoxynius abronius. Tests will be conducted as standard 10 -day amphipod tests using a gradient of grain sizes. Test sediments will be Lower Newport Bay sediment of varying grain size. If this is not possible, a gradient may be prepared by mixing sediments to create a grain size gradient; however, this can be problematic as mixing with coarse - grained sediment could effectively dilute toxicity due to other factors. An alternative approach would be to simply analyze whole samples from areas known to have fine - grained sediment, low levels of chemical contamination, and moderate levels of toxicity during previous investigations. Once a suitable species has been identified, Areas A, C, G, H, and I would be reevaluated for amphipod toxicity. If the amphipod tests for a given area composite passed suitability criteria, any required additional information for that respective area would be collected. Task 4: Additional Characterization Based on Existing Data Locations not represented by the current datasets will require chemical and biological characterization to determine disposal options. The A, B, G, H and J moorings, the confluence area between Bay and Linda Isle, and possibly the C moorings will be sampled for chemical and biological analysis. Any locations with significant shoaling or areas that need to be more clearly defined, based on existing data will be evaluated under this task. To the extent possible, sampling and analysis for this portion of the program will be design to support the upcoming RGP -54 permit renewal. Sediments will be sampled using a vibracore sampler. This will ensure that project depth is achieved and that underlying sand layers are retained for characterization. This sampler will also allow for a vertical stratification. Previous data indicate that portions of the harbor are characterized by fine silt overlying clean sand. For those portions of the harbor, compositing sand layers separately from silt/clay layers may provide the City with more disposal options. Test composites will be evaluated following USEPA and USACE guidance for dredged material evaluation (the Ocean Testing Manual and the Inland Testing Manual). Composites will be analyzed for sediment grain size, TOC, and a suite of EPA priority pollutants: metals (including mercury), polycyclic aromatic hydrocarbons (PAHs), chlorinated pesticides (including 2,4' and 4,4' DDT groups), polychlorinated biphenyls (PCB aroclors), and organotins. Analytical Resources Inc. of Tukwila, Washington will perform the chemical analysis. This laboratory has conducted previous studies in the Newport area and we have a close working relationship with their chemists. Maintenance Dredging in Lower Newport Say September 9, 2008 Page 38 Analytical precision and accuracy will be evaluated using quality assurance /quality control (QA/QC) samples with each analytical batch. QA/QC analysis will include blanks, laboratory control spikes, and matrix spike /matrix spike duplicates. NewFields will evaluate all chemistry QA/QC data and its potential implications on the analytical results from the test samples. Biological testing for ocean disposal includes an assessment of toxicity of both the solid -phase and the suspended - particulate phase. The solid -phase tests provide an estimate of toxicity to benthic organisms at the disposal site. Solid -phase tests will include 10 -day acute tests with an amphipod and the mysid shrimp or a polychaete worm. The suspended - particulate phase (SPP) tests provide an estimate of toxicity to water column organisms exposed to sediment as it falls through the water column at the disposal site. It can also provide an indication of water - column toxicity that might be encountered during the dredging process. SPP tests will be conducted with the fish, Menidia beryllina, the mysid, Americamysis Bahia, and larval mussels (Mytilus sp.). Task 5: Bioaccumulation Testing USEPA and USACE require an evaluation of the potential for COPECs in sediment to enter the food chain. Bioaccumulation testing is required for any sediment proposed for ocean disposal. Sediment represented by the RGP -54 survey will not require further evaluation of bioaccumulation potential (provided there has not been significant shoaling), however, sediment in the Federal Channels and anchorages have not been evaluated for bioaccumulation. In order to minimize costs and schedule, sediment for bioaccumulation testing will be collected during the initial field effort. In order to evaluate the potential for sediment- associated chemicals to accumulate in tissues of benthic organisms at the disposal site, 28 -day bioaccumulation tests will be conducted with the clam, Macoma nasuta, and the marine worm, Nephtys caecoides. During the bioaccumulation test, clams and worms are exposed to test sediments for 28 days. Following the exposure period, the test organisms are held for 24 hours in clean seawater to void any sediment that may remain in the gut. A native control sediment and LA -3 Reference sediment will be tested concurrent to the test treatments. Tissues from each of the test treatment and reference replicates will be frozen and sent for chemical analysis at ARI. Alternatively, if a data base can be established for bioaccumulation data at the LA -3 Reference site (Task 8), only the native control will be tested. Tissues from the bioaccumulation tests will be analyzed for chemical residues. This proposal includes costs for conducting a broad suite of chemical analysis, however, it is likely that the analyte list can be refined following receipt of the sediment chemistry results and would dramatically reduce analytical costs. Previous investigations have indicated that the primary COPECs in Lower Newport Bay are DDTs, mercury, and possibly organotins. It is possible that the analyte list could be limited to this subset of analytes. The results of the chemical analyses for test sediments will be compared to the LA -3 Reference data to determine suitability. Task 6: Refinement of TIE Characterization In order to further narrow down the potential cause of amphipod toxicity in the anchorage area, several additional TIE manipulations will be conducted with both sediment and porewater Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 39 samples from this area. TIE manipulations will include treatments for metals, organotins, and pyrethroids. Individual treatments may include the following: Cation Exchange Resin — This resin (SIR -300) is used to bind cationic metals and is particularly effective for copper, zinc, nickel, and lead. For sediment treatments, the resin is added directly to the tests sediment. For porewater treatments, the porewater is passed through a column that has been packed with the resin beads. AVS Addition — Acid volatile sulfides aggressively bind metals, including mercury, copper, cadmium, lead, and zinc, forming insoluble precipitates. Sodium sulfide is added as a solution to test sediment. Multiple levels of sulfides will be tested to ensure that sufficient sulfides are present to bind the metals and the addition of sulfides is not causing toxicity. This manipulation will be conducted for the solid -phase evaluations. EDTA Addition — Ethyldiaminetetraacetic acid (EDTA) is a strong chelating agent, removing cationic metals and reducing toxicity associated with those metals. Powdered Coconut Charcoal and Esterase with 30% diluted test sediment: In some cases the toxicity in the baseline sediment overwhelms the TIE manipulation. These two manipulations were evaluated previously with pure and 10% diluted test sediment. Toxicity will be evaluated in more dilute test sediment and porewater. PBO at a higher concentration: Piprynol butoxide is a chemical known to increase the toxicity of pyrethroids. PBO treatments in the previous porewater tests provided an indication that pyrethroids were linked to toxicity; however, changes were not observed in sediment toxicity tests. Tests will be conducted with sediment and porewater at two higher concentrations of PBO to ensure that it is effective. In addition, sediments will be chemically analyzed for pyrethroids. In order to get sufficiently low detection limits, gas chromatography /mass spectrometry will be conducted in the negative ion detection mode. This is a more involved and somewhat experimental approach that has allowed for sufficiently low detection limits in previous sediment investigations (Don Weston 2006). Task 7. Mercury in West Lido Channel Sediments In order to determine dredging options for West Lido Channel (Area .l) sediment, the nature and extent of mercury in the area sediments needs to be defined. This task will include a delineation of the horizontal and vertical boundary of elevated mercury, as well as address potential sources of mercury and potential bioavailability. Samples to be analyzed for this task were previously collected and archived. In order to better understand the horizontal boundaries of mercury contamination in Newport Channel, NewFields previously collected samples from 13 stations using a 3" diameter piston core. Three station locations were similar to those of the CoastKeepers' recent surface sampling effort to provide a point of comparison and to provide additional information about the vertical Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 40 distribution at those locations. Samples from each station will be analyzed as a single, vertical composite, in a manner similar to the 2007 sampling effort. A second core was sectioned into vertical strata and archived for possible future analysis. In addition, 10 archived samples from stations collected during the Federal Channel program will be analyzed for total mercury to determine the potential contamination in the Yacht Anchorage, Turning Basin, and the Lido Channel. This subtask will include mercury, grain size, and TOC analysis in a total of 23 samples. The vertical distribution of mercury in the Lido and Newport Channels will be determined using 11 archived cores collected from locations already examined as composites in the West Lido and Newport Channels. Core samples were collected at stations representing the mid - channel and nearshore areas. Stations were located at each end of the respective areas, as well as a midpoint in order to detect possible differences between potential sources. Previous studies (Anchor 2005; CoastKeepers 2007; SCCWRP 2003) indicate that, in portions of the Rhine Channel and Newport Channel, elevated mercury concentrations are highest in the top 10 cm of sediment in some locations and in the middle 10 -40 cm in other locations. Elevated mercury concentrations extended to approximately 50 cm, below which they decrease to below ER -M levels. Data on vertical stratification may offer indications of ecological risk, provide management options, and demonstrate the potential for isolation by clean surface sediments. Sampling intervals will nominally be 0 -5 cm, 20 -50 cm, and 60 cm to core bottom (gaps between intervals is to ensure separation between potential layers). Cores were evaluated in the field for any obvious strata and may be sectioned based on visual observations of sediment characteristics. Additionally, stratified cores collections from stations sampled in the central portion of Newport Channel (as part of Subtask 1) will be considered for analysis based on total mercury results from whole core samples. In order to evaluate the potential sources of mercury in sediment, additional metals will be analyzed for provenance analysis. The relative distribution of certain metals is generally conservative in sediments from the source to the "sink" and can be linked to the relative distribution of metals in source materials. Crustal metals that comprise the actual grains of sediment are generally not bioavailable, but are quantified in standard metals analysis. Cinnabar from San Diego Creek and the bluffs in Upper Newport Bay is a potential source of mercury in Lower Newport Bay and will be evaluated by analyzing other metals that are indicative of crustal sources: iron, selenium, and aluminum. Other metals are more indicative of specific human activities, such as mercury plating activities (zinc), batteries (chromium), and antifouling paints (copper). Iron, aluminum, selenium, copper, chromium, and zinc will be analyzed in a subset of samples from the West Lido and Newport Channels. Specific samples collected in 2007 and 2008 will be selected in conjunction with the Harbor Resources staff. No more than 10 samples will be analyzed for this expanded suite of analyzes. Additional samples may also be analyzed for methyl mercury and total mercury to better understand bioavailability of the mercury present. Task 8: LA -3 Reference Values NewFields will compile historic data for the current LA -3 disposal site and establish mean values for chemical contaminants of concern, toxicity, and bioaccumulation potential. Based on the size of the available data sets, the environs approach may not apply to all analytes for bioaccumulation at this time. As part of the compilation, data will be reviewed for data quality Maintenance Dredging in Lower Newport Say September 9, 2008 Page 41 and appropriate detection limits. All data will be entered into an electronic spreadsheet and summary statistics generated. Summary statistics will be generated from qualified data sets and we will coordinate with the City and agency staff to determine if additional sampling or analyses are required. Task 9: Permitting Support, Options/Alternatives Analysis As sufficient data becomes available, NewFields will prepare an Options /Alternatives Analysis for each management area, reviewing each of the potential in -water and upland disposal options available to the City. This task is critical to the success of the City's program and the approach for each management will vary depending upon the chemical and biological characteristics of the sediment. NewFields and Thomas Johnson will provide as needed permitting support, including meetings with the City, USACE, USEPA, RWQCB, Coastal Commission, and stakeholders to help define feasible disposal options. Task 10: Technical Support far Agency Review During previous investigations, NewFields staff members have assisted clients in presenting the results of sediment investigations to USEPA, USACE, and other resource agencies. This is particularly helpful for project with a short timeline. At your request, we will facilitate joint meetings to report the results of this investigation and to work with USEPA in determining disposal options for the proposed dredged material. It is difficult to determine the total cost for this task, as it will depend largely on the data generated during the study. This task is typically billed as time and materials based on rates of $130/hr for Mr. William Gardiner, $135/hr for Dr. Thomas Johnson, and $160/hr for Dr. Jack Word. Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 42 Estimated Costs This section outlines the estimated costs, by task, as described in the section above. Summary of Proposed Cost Summary by Task Task Name and Number Cost for Task 1. Bathymetry $6,020 2. Approach Development, Sampling and Analysis Plan and Agency Coordination $20,838 3. Amphipod Study $25,600 4. Additional Characterization based on Existing Data: Toxicity Testing and Chemistry (includes field sampling for Tasks 4 and 5) $88,000 5. Bioaccumulation (includes tissue chemistry) $68,826 6. Toxicity Identification in Yacht Anchorage $24,690 7. Mercury in West Lido and Newport Channels $17,000 8. Environs Approach for Reference Sites $12,300 9. Options Analysis and Reporting $25,000 10. Technical Support in Agency Negotiations $10,000 Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 43 Exhibit B Schedule of Billing Rates NeWFlelds Port Gamble, WA Billing Rates Labor category Personnel Hourly Rate Principal Investigator Dr. Jack Word 160 Project Managers Senior Scientists Susie Watts 150 William Gardiner M,eg.Pinz,a 130 Proect Scientists Brien Hester 95 Lucinda Word 85 Bridget Gregg 85 Jade D Word 85 Staff Scientists Tracy Schuh 75 Collin Ray 65 Mary Bacon 65 NMFI,d& PXX BO 216- 4729MIAKW DXWE PokeCb KZW7isntiucTON98364 360.297,6080 tea' --- 36Q297.7MPm WWW.N8WP16LMMM .4, .Hourly rate. FEE SCHEDULE Maintenance Dredging in Lower Newport Bay September 9, 2008 Page 44 13426 6 AXEL" AVENUE, SUITE 425 FAAns A DEL Rev,. CA 90292 $135 TEL: 310 6305.0454 FAR: 310-574-9983 E All-: TL?MJOHVYERIIOH.HET City of Newport Beach NO. BA- 09BA -011 BUDGET AMENDMENT 2008 -09 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Iq Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: AMOUNT: $200,000.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase expenditure appropriations for maintenance dredging in Lower Newport Bay. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 010 3605 General Fund - Fund Balance $200,000.00 " REVENUE ESTIMATES (3601) Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Description Division Number 7014 General Fund - Misc Capital Project Account Number C4402001 Harbor Dredging Project $200,000.00 Division Number Account Number Division Number Account Number Division Number Account Number * Automatic System Entry. Signed: 4 Q � Financial Approval: AdministTPVe Services Director Date Signed: v dministrative Appr al: City Manager ate Signed: City Council Approval: City Clerk Date 0 • Maintenance Dredging jn Lower Newport Bay •J_ Joint City ouncil / Harbor Gomm si sio Study Session September 9, 2008 What We'll Discuss This Afternoon y Considerations to most efficiently and effectively implement a dredging project in Lower Newport Bay; Important accomplishments that have been made thus far and need to be achieved in the near future; A Decision Tree to guide the City Council, with the assistance of the Harbor Commission, staff and consultants, in determining the best course of action for one or more phases of project implementation; Consideration of a proposal to develop a Dredged Materials Management Plan (DMMP) that includes a phased sediment testing protocol; How the Harbor Area Management Plan (RAMP) relates to implementation of a successful Lower Bay dredging Project. Ihange Count .Y Ha rbor; I 1 J tOn.wi[tic� • Even in 1919 wheffIRETYRM w for a bond issue to dredge Newport Harbor, funding for such a large and important project was difficult to secure. • The Commerce that was envisioned in this flyer never developed. • World War II brought war related construction activities to Newport Harbor such as mine sweepers and Coast Guard vessels. • • 0 • In the early years of harbor development, the County and the City dredged some channels and sold material to developers to build islands to supplement the bond issue funds. • However, it wasn't until Congress approved the harbor lines in 1936 and authorized the Corps of Engineers to make improvements did a safe and navigable harbor really materialize. • • • k I M W. r Not I I I • After the initial dredging in the 1930's, very few maintenance dred projects were accomplished other than in the entrance channel. • The low frequency of dredging makes it difficult to attract federal funds when the Corps' economic analysis considers such factors as historical pending and commerce. he non - existent maintenance dredging in many areas also creates difficulties in permit acquisition due to over 70 years of accumulation of past sins. • • 0 CR4MEL STABLIZATICN IN-MY FOOTHU BASINS CONSTRICTION SRE BW s 549 a After the disastrous floods of 1969, San Diego Creek flowed continuously into the Bay bringing sediment and pollutants resulting in water quality regulations and sediment control projects in the Upper Bay and Watershed. • • 0 T • There have been some unintended consequences resulting from the watershed and Upper Bay sediment control projects. • The most critical unintended consequence has been that the sediment control basins in the watershed have removed much of they coarse grained material and the Upper Bay basins have removed much of the fine grained material; however, the very fine grained material does not coagulate and fall out of suspension until it hits the salty and lower velocity areas of the Lower Bay. • Unfortunately, many of the pollutants adsorb onto these very fine grained particles and even without the pollutants the very fine grained particles are toxic to some benthic organisms. M003 the Army Corps completed some of the required tiered testing for dredging the Lower Bay. They found course grained material near the harbor entrance that passed the testing criteria. Elsewhere in the harbor, they encountered very fine grained material that failed testing criteria. Hence, they did not pursue additional tiered testing. • As a result of these testing results, the harbor entrance was the only area dredged in 2003. • • 0 About the same time, the City began testing sediments between the Pierhead and Bulkhead Lines for the RGP -54 permit. Some areas within the zone of local responsibility also failed testing criteria and the City Council authorized further testing in an effort to obtain dredging permit authorization for as much of the harbor as possible. 16,The additional testing was carried out according to the nationally applicable Inland Testing Manual and delineated problems by individual areas within the harbor. ir 1 rAeR t\ N WE s 0 0.25 0.5 Miles 0 �i IJ Newport Harbor Dredging Areas Passed In RGP -54, passed during Federal Channel Tier IV, where tested. Likely to pass for ocean disposal but may require bioaccumulation testing. - Passed for toxicity in RGP -54, but Hg concentrations in surface sediment (top 3 ft.l likely to prevent ocean disposal option. Currently studying vertical and horizontal extent. May be able to manage upper -311. differently than underlying sand. - Passed in RGP -54. but moderate amphipod mortality in Federal Channel samples. Likely to be addressed in amphipod study. Would require bioaccumulatlon testing if amphipod test passes. _ Passed in RGP -54, but amphipod mortality in Federal Channel samples. Ma,, be addressed in amphipod study or TIE. Would require bioaccumulation testing if amphipod test passes. = If this was a targeted project area, new characterization would be required. Ow filli.,._ up a � `1= N . J 0 • If additional testing is needed, timeline may be altered. Timeline is dependent upon start date. O al is >1 O N i--• d -O Y C N L Q t6 N W t ii o d -C; O fs N a Q_ >1 �'. O U> E U _ O O N 4U CU i Area m Q ►°–w QF- m �Q C) -x 13 • E • Ti me to Sept --pop Nov 08 Completion' A • • • • C • • • • D • • F G • • • Ti me to Sept Oct Jan u9 Feb 09 Co metion Time to Sept ♦ Oct .1p, Dec Feb March —fo- May 09 Completion If additional testing is needed, timeline may be altered. Timeline is dependent upon start date. _E • In 2006, The Army Corps, and County successfully permanent designation of disposal site for clean material. EPA, City completed LA -3 as a dredged • This was a critical accomplishment in providing a relatively low cost disposal site for material dredged from local harbors. LA-3 (Sediment Disposal Site) is • is • Armed with some data and some accomplishments, staff initiated discussions with the Resources Agencies to determine what was necessary to implement an area -wide Lower Bay dredging program. • Many unresolved issues related to contaminants, amphipod mortality and eelgrass hampered permit acquisition and pointed to the need to have a comprehensive Dredged Materials Management Plan (DMMP) and Harbor Area Management Plan (RAMP). E Current Efforts 1 1. Draft DMMP I 1 2. Draft HAMP I 3. Draft Eelgrass j 4. Final Rhine Channel Remediation Plan 5. Draft IRWMP 6. Implementation of UNB Ecosystem Restoration Project 7. Draft Harbor Fee Study 8. Lobbying for Federal Funds and Project Authorization 0 WHAT NEEDS TO BE ACCOMPLISHED TO DREDGE LOWER NEWPORT BAY Phased Sampling and Analysis Plan Needed Efforts Integrated Final Programmatic Plan Completion of UNB Ecosystem Restoration and Watershed Sediment Source Reduction Projects to Reduce Current and Future Deposition in Lower Bay and comply with TMDL. Federal and /or Local Funding Plan Desired Result Programmatic Environmental Documentation Area Specific Environmental Documentation If necessary Implementable Maintenance Dredging Project C` A 0 • • As you can see, we've worked on a lot of fronts to develop that comprehensive plan which will enable us to dredge and properly manage the Lower Bay but "we still aren't digging dirt yet." • This next slide shows that because of various issues in different areas of the harbor, it is not likely that one dredging and disposal option will fit the entire harbor. • Our optimized solution would result in all sediments qualifying for disposal at LA -3. Based on previous test results, we are fairly confident that this option is not likely to be achieved. • We need to accomplish further testing to maximize the amount of sediment that is allowed to be deposited in LA -3 and to minimize the cost in disposing of other non - qualifying sediments. 0 • LOWER BAY DREDGING DECISION TREE Council CornpNe Sakdia EPAd C.'mplele Complete TIE Approval of Bethymeinc of COE amanmod and Hg Testing. S Dredgetl Evaluation to Preferred n Appwe Metenel Mgl Funding Estimetes Dredghfl Senlpling � a Plan and Show EPA Met Dews �� o and n Sedment Duality LJ'' Per Area Analysis ° N I Has Na Changed Plan Since Prenous I Sung Efforts. I I 1 I I I I I I I I Nat'l alNO Nagatn t$on» Nagetw l5oma I Request I � 5urvrvalt Nrs FaNaal Frees Faibdi Fetlefal Sgniacere Cnange , Footling end I in Dept, ' ' ' COE Preparation of I � Canplere Tests ConplNe local Determine Local OMMP end I eufic Volume I Necessaryfor Nee Testing la Area Sp SAP. I Calculations Show ' CAD a Upland tA-3, CAD a Plans I Large Recent i Psposei Upland Disposal. I Sediment � 1 Accumulation. 1 ' , I I , I I Refine Nee Refine Area ' I , Bandanas. Boundaries. i Revise DMMP- ' L - Request Council °---------------- °----- i Approval of Scope ' of Work Change ' - - -- Perform Options I Perform Options I PMam Opfims Arad . Analysts Ana y5la Council Final RAMP i ' ' i ' Appiof _ -- a's -------- -_ -_1 1 I I HAMP I Prepare Aree Prepare Area f Perform Area I I Specific i Specific i Specific ' ApCparwncaJ l ' -�_j I EnNronmentel ' Enhonmenlal Fsvronm Fermi Eel 9'e ss Dau mantalon Damentebon Of ____ ED -- ____ -- MenegeN - - - - ' Eelgess StrB1egY 1 Mfamaeon I I ' ' I p1 Council vn Final Harbor Fee Seek Funding Mr i Seek Funding for See Funding for Approve] of -- - - 0 - -- - - - -- Schedule - - - -1 I -550 M- Deposit , -52040 M- I $1530M- 1 Harbor Fee I I el Materiel in I Deposit Area I Deposit Area I ' Upland a CAD ' SpecificCepth ' SpedaclDepth sites. i Si Material i Specific Material Council Approval of vas Final - - - -I 1 in Upland a CAD I in Upland. LAr3or Programmalic EnfronmeMN -�- Progammalic Sites. CADSItes. ' Documentation Prep. Elwonmental Doament I I I L -- Request COE to Prepare All Prepare Develop Freers All Funding Ppsllrve A'eas - P18n fa .Passed Emvm 12 -15 M mental Door- Deposit men- all reta MaIM01 in LA-3 0 0 • 2008 Bathymetric Data for Areas Within the Corps of Engineers Project Lines — Project Line Depth in Feet 0 -3 3 -6 • Our preliminary tests show the sedimen 6 -9 does not have consistent quality through -9-12 the full range of depth that needs to be - 12 -15 removed. - 15 -18 18 -21 • Knowing the horizontal and vertical extent -21 -24 24 -24 of contamination will help optimize our 27 -30 dredging solution. Quantity calculations M 30 -40 will be made for different areas and 0 • The Decision Tree obviously requires many decisions to be made as results from the tiered testing becomes available for individual areas. • Because of that complexity, the City Council's Bay Issues Committee requested estimates of cost and approximate timelines for a couple of scenarios that may develop as we proceed with the testing. • The following slide shows the staff's estimate of best and worst case scenarios in terms of time it takes to complete dredging in a given area and an estimate of cost. The scenarios are based on technical issue resolution and not on delays due to nding availability. 0 • BEST CASE SCENARIO TIMELINE & COST FOR THE SPECIFIC AREAS NOTED Areas B and E (City completes up to 100,000 cy project without Corps assistance)' Task Start Task End Task End ' With Corps assistance, this first phase could be completed at about the same cost, the 2 phases of permit application preparation and approval could be reduced by 3 to 4 months, but timeline would not start until Oct '09 (at best) Oct '10 (most likely) WORST CASE SCENARIO TIMELINE & COST FOR THE SPECIFIC AREAS NOTED Areas H, I and J (City completes approximately 300,000 cy project with Corps assistance) Additional sampling Publish results CEQA determination Resource agencies review and Award Construction Bid and and testing and discuss (exempt 15304 -Class 4) approval of application. Bid projects period (dredging) Task (portions of with agencies. and prepare and submit project contingent on testing portions discuss with agencies. proposal tasks funding permit applications. acquisition of permits. Task of tasks 1 thru 1,2,3 Prepare programmatic specific for areas H, I for this $25,000 $15,000 (staff $20,000 (staff and $5,000 (staff and consultant) $2.5 million phase Cost (consultant) and consultant) consultant) documentation for Time Sept Nov Jan Mar July Sept Dec Line '08 108 09 109 109 109 109 Task Start Task End Task End ' With Corps assistance, this first phase could be completed at about the same cost, the 2 phases of permit application preparation and approval could be reduced by 3 to 4 months, but timeline would not start until Oct '09 (at best) Oct '10 (most likely) WORST CASE SCENARIO TIMELINE & COST FOR THE SPECIFIC AREAS NOTED Areas H, I and J (City completes approximately 300,000 cy project with Corps assistance) Task Start Task End 7 asK tna Additional Publish Perform options NEPA/CEQA Secure Corps Bid and Construction sampling and results and analysis and negotiate preparation and Federal acquisition award testing portions discuss with agencies. determination (site funding of permits contract Task of tasks 1 thru with Prepare programmatic specific for areas H, I for this 8) agencies. environmental and J). phase documentation for entire project $200,000 (City) $15,000 $125,000 (possible $100,000 (possible $30,000 (Corps (Corps $6 -30 million (City) early start funds for early start funds for (City staff time) staff time) depending on Cost Corps or City match) Corps or City match) lobbyist) disposal option allowed for these areas. Time Sept May July Sept Jan Oct Jan Mar Dec Line 108 W 109 109 110 110 '11 '11 11 Task Start Task End 7 asK tna LMJ 0 9 CRITICISMS The City has already performed tests and has wasted time. We should our chances and use the contractor currently working in the Upper Bay. Response: If the harbor had been maintained without 70 years of past sin then the current level of testing might be sufficient However, current testing not found the "smoking gun" among the chemical constituents of concern. The consultants are creating work for themselves, and /or the agencies are asking for an unreasonable level of testing. Response: The "Green Book" is very clear on the process for testing for Tie through III. If these tests do not pass, then further testing becomes more complicated, allowing for some creativity to determine what causes the toxicii Staff has been working with the consultants to develop a plan that gives us options at different testing junctions, to help satisfy the demands of the A agencies. The City is moving too slow and we risk losing our momentum. Response: In fact, this proposal represents a giant step forward after many years of thought and planning. Assuming funding is procured, it is conceivabi dredging could occur within a reasonable time frame. There are many beneficial uses in Lower Newport Bay that are impacted by maintenance dredging the Harbor. A goal of the HAMP is to show the combined benefit of an integrated approach of maintenance and management of the harbor. • • Project Assessment and Integrated Benefit ,m Beneficial Use Criteria d J O m E '++ `C U1 — N a Z O N OT O d �E O— O a f > 'Q OO _ y G a '� 0 0 bo F y d 0 d Off. iy7 v a f—rW C' Sc.� xccu VG¢ 3V U wV m x0 N eg s 010 co 010 010 01010 m m enu/ / Sentiment Fehrass 0 0 0 0 0 41 4 4 0 0 Beach Replenish- 0 0 0 0 0 0 0® 0 0 Mont Water Quality 0 0 0 0 0 0 0 0 0 0 Harbor Channel/ Pierlread 010 ® 0 1 0 0 0 010 Lines iivdro- dvnamic 0 0 0 0 0 0 0 0 0 0 Models Reponal General 0 0 0 0 0 0 0 0 0 0 Pe milt Srd I m,41 Iv FuJ k... 0 0 0 0 0 0 0 0 010 Control Control 0 0 0 0 0 0 010 0 0 upper Newport 0 0 0 0 0 0 0 0 0 0 ea}' Combined BengT of Irate ratet e d 0 0 0 0 0 0 0 0 0 0 Approach Beneficial Use Criteria Is 0 HAM P I ntegrate� Approach 1, P R N B T d it the benefits that can be achieved through this integration. 0 redain (center circle) Eelgrass each Replenishment ater Quality BMPs ydrodynamic & Water Quality Modeling Upper Bay Sediment Control Upper Bay Restoration lea Level Rise / Flood Management arbor Channel Lines egion General Permit (RGP -54) E 0 • In an agendized item tonight, the City Council will be requested to consider the following staff recommendatic 1. Approve conceptual approach as outlined in the Accomplishn Guide and Decision Tree. 2. Approve the proposal to develop a Dredged Materials Management Plan (DMMP). 3. Authorize the Mayor to execute a Professional Services Agreement with New Fields Consultants that is necessary to implement the DMMP. 4. Adopt Budget Amendment #BA- taking $200,000 in unappropriated General Fund reserves and assigning these funds to Capital Improvement Project #7014- C4402001 (Newport Harbor Dredging Project). 0 0 • With the advice and coordination with the Harbor Commission, staff and consultants, the City Council's seemingly daunting task of developing a comprehensive sediment management plan and implementing an area wide dredging program for the Lower Bay will soon become a successful reality.