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HomeMy WebLinkAbout06 - Dredging and Disposal for Lower Newport BayCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 November 10, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Chris Miller, Harbor Resources Manager, (949) 644 -3043 cmilleKr)newoortbeachca gov SUBJECT: First Amendment to Professional Services Agreement with Anchor QEA, L.P. for Engineering and Environmental Tasks Associated with Dredging and Disposal for a Lower Newport Bay Dredging Project in Newport Harbor ISSUE: Harbor Resources is submitting an update on the Lower Newport Bay dredging project which includes a rare potential opportunity to dispose all of the contaminated material from the non- federal channels in a Port of Long Beach fill project. Should the City amend the contract with Anchor QEA, L.P. to include environmental work for Port of Long Beach disposal while also focusing on other disposal solutions as a contingency plan? RECOMMENDATION: 1. Approve the First Amendment to the Professional Services Agreement ( "PSA ") with Anchor QEA, L.P. to prepare an MND and EIR for two options for the contaminated disposal component of a Lower Newport Bay dredging project, and; 2. Adopt Budget Amendment #BA- taking $50,000 in un- appropriated Tidelands Fund Balance and assigning these funds to Capital Improvement Project #7231- C4402001 (Newport Harbor Dredging Project). DISCUSSION: In July 2009, the City Council approved a contract with Anchor QEA, L.P. for $395,000 to perform the engineering and environmental work for the contaminated disposal component of the Lower Newport Bay dredging project. At that time, the City's disposal options focused on a Confined Aquatic Disposal ( "CAD ") site within Newport Harbor. Shortly thereafter, an unexpected opportunity for placing Newport Beach's non - federal contaminated material in a large fill site planned for the Port of Long Beach ( "POLB ") has potentially become available to the City, but requires an "approved" project be ready for submittal to Port officials very quickly. At this point, the City is considering the Rhine Channel dredging footprint to be from the outside of the floats on one side of the channel to the outside of the floats on the other side of the channel. It is not the City's intent to dredge within the individual property lines of each marina because of the complexities involved with some of the surrounding bulkheads, and because these waterways are the upland property owner's responsibility. However, as the project progresses, it is likely that these property owners may Anchor QEA Amendment No. 1 November 10, 2009 Page 2 have an opportunity to work with the City to take full advantage of the dredging economies of scale. It is anticipated that these plans and ideas will evolve during the permitting process. Anchor QEA, L.P. believes that CEQA requirements for the City's use of the POLB Confined Disposal Facility (CDF or Port fill) as a disposal site can be met with a Mitigated Negative Declaration ( "MIND "). They propose to complete an MIND on this limited project by June 2010, a timeline that will allow the City to meet POLB's schedule. The MIND would analyze disposal of the contaminants in the non - federal channels (i.e. Rhine Channel and RGP -54 exclusion areas) while the Army Corps of Engineers would prepare an Environmental Assessment for the federal channel contaminant disposal. Despite the appeal of the POLB fill site option, the City must also be prepared to respond to a situation where some or none of the material is accepted by the POLB and a CAD (or other alternate disposal method) is needed either in whole or combination with the POLB fill site. Thus, staff is recommending that the originally approved EIR work continue until such time that the POLB site becomes a certainty for contaminant disposal. In essence, the City will be going down two parallel tracks at the same time: 1) MIND for Long Beach disposal; and 2) EIR for Newport Beach disposal. Although this may seem redundant in some respects, much of the information gathered in the initial stages for both paths will be beneficial for the project, and it might also help the City with future projects. The attached amendment to the PSA includes preparation of the MIND for the POLE disposal, and also further clarifies the EIR tasks in the original proposal. Environmental Review: The approval of the First Amendment to the Professional Services Agreement for environmental (CEQA) and engineering work does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the public meetings at which the City Council considers the item). Financial Availability: The revised scope of work adds $50,000 for preparation of the MIND. Staff is requesting that $50,000 be transferred from the un- appropriated Tidelands Fund balance to account #7231- C4402001. Prepared by: Submitted by: ris Miller, Harbor Resources Manager Sharon Wood, Assistant City Manager Attachments: Exhibit 1: First Amendment to PSA Exhibit 2: Budget Amendment FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ANCHOR QEA, L.P. FOR CONFINED AQUATIC DISOSAL SCOPE OF WORK FOR ENGINEERING PRE- DESIGN TASKS AND CEQA COMPLIANCE THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT ( "First Amendment "), is entered into as of this day of 2009, by and between the City of Newport Beach, a California Municipal Corporation and Charter City ( "City "), and Anchor QEA, L.P., a California Limited Partnership whose address is 28202 Cabot Road, Suite 425 Laguna Niguel, California, 92677 ( "Consultant "), and is made with reference to the following: RECITALS A. On July 14, 2009 City and Consultant entered into a Professional Services Agreement ( "Agreement'), to initiate environmental analysis (CEQA) and engineering for the disposal of contaminated materials from a Lower Newport Bay dredging project into a Confined Aquatic Disposal ( "CAD ") site within Newport Harbor ( "Project "). B. City and Consultant desire to enter into this First Amendment to allow the preparation of a Mitigated Negative Declaration ( "MND ") that will analyze the potential disposal of contaminated material from non - federal areas (Rhine Channel and RGP -54 exclusion zones) in an upcoming Port of Long Beach CAD. C. City and Consultant also desire to clarify various provisions within the Agreement and to extend the Agreement's term to August 30, 2011. D. Agreement Section 34 authorizes the City and Consultant to enter into this First Amendment. NOW, THEREFORE, it is mutually agreed by and between the City and Consultant that adequate consideration has been provided and that the Agreement shall be amended as follows: 1. TERM Agreement Section 1 "Term" shall be amended to read as follows: "The term of this Agreement shall commence on the above written date, and shall terminate on the 3& day of August, 2011, unless terminated earlier as set forth herein." 2. SERVICES TO BE PERFORMED The Scope of Services attached to the Agreement as Exhibit "A" and incorporated by reference in Section 2 shall be replaced by the Scope of Services dated November 5, 2009, which is attached to this First Amendment as Exhibit "A" and incorporated herein by reference. The City may elect to delete certain tasks from the Scope of Services at its sole discretion. 3. COMPENSATION TO CONSULTANT The not to exceed total compensation dollar amount provided in Agreement Section 4 shall be increased to a not to exceed amount of Four Hundred Forty - Five Thousand and 001100 Dollars ($445,000). 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment on the date first above written. APPROVED AS TO FORM: CITY OF NEWPORT BEACH, OFFICE OF THE CITY ATTORNEY A California Municipal Corporation By: By: David R. Hunt Edward Selich, Mayor City Attorney for the City of Newport Beach ATTEST: CONSULTANT: A California Limited Partnership Leilani Brown, City Clerk 0 Print M Title: Print (Corporate Officer) (Financial Officer) Attachment: Exhibit "A" — November 5, 2009 Scope of Services ANCHOR C?EA 28211.2 Cabot Road, Suite 42S ,aguna Niguel, California 92677 Phone .949.3. 77.2780 Fax 949.347.2787. November 5, 2009 Chris Miller Manager, Harbor Resources Division City of Newport Beach 829 Harbor Island Drive Newport Beach, California 92660 Exhibit A Re: Lower Newport Bay Confined Aquatic Disposal Site/Non- Federal Dredging Areas Scope of Work and Budget for Engineering Pre -design Tasks and CEQA Compliance Dear Chris: Based on our recent telephone conversations and subsequent meetings with City Planning staff on July 31, October 16, and November 3, 2009, we have prepared the following modified scope of work to document the requested changes to the subject project for the Lower Newport Bay Confined Aquatic Disposal (CAD) site/Non- Federal Dredging Areas engineering pre- design and California Environmental Quality Act (CEQA) compliance. These modifications are required to document recent changes in project direction as they relate to a potentially new option for contaminated sediment disposal at the Port of Long Beach. Also attached is a revised project schedule and budget to reflect the revised tasks. TASK 1: PRE - DESIGN ENGINEERING TASKS AND ANALYSES Prior to the start of the actual engineering design for a CAD cell in Lower Newport Bay or for dredging any of the non - Federal areas, there are numerous pre -design engineering tasks and analyses that must be performed. This information is important to complete the initial phases of the CEQA process (e.g., selection of the preferred alternative and to provide information to assist in conducting impact analyses such as dredge footprint and equipment needs) and future engineering design. This information will also be valuable for understanding the project area and identifying physical constraints that could dictate or limit aspects of the design. Engineering design will occur later, after details such as proposed www.anchorgea.com Mr. Chris Miller November 5, 2009 construction approach and targeted contaminated sediment volumes are defined. As such, the costs for the engineering design (preparation of construction plans and specifications) are not included in the current scope of work. The sub -tasks below will be performed in parallel with the preparation of CEQA documents. Subtask 1.1: Review of Existing literature Existing information provided by the City will be reviewed in detail by the design team and will focus on identifying key elements necessary for design, such as maps and as -built plans for existing harbor structures; information on vessels that frequently pass through the area proposed for CAD cell construction; wind, waves, and currents; and previous physical and chemical characterizations of sediments in Lower Newport Bay (LNB). The existing bathymetric information from the City and the USACE will also be reviewed to determine if there is adequate coverage over the design areas or if data gaps exist and if a supplemental survey is needed. Responsibility for conducting surveys within the non - Federal areas of LNB (e.g., Rhine Channel) falls upon the City and are not included in this scope of work. All data collected during this subtask will be loaded into our CADD and GIs systems for use in preparing site figures and during the actual design phases. Task Deliverable: Base maps showing project location, site bathymetry, existing conditions, land uses, potentially impacted resources, utilities, and anticipated dredge areas. Subtask 1.2: locate and Record all Utility Crossings within CAD Area There are documented underwater crossings of water and telephone lines within LNB that Anchor QEA will research and record on any future design drawings for the project. Although, these crossing do not appear to be in the vicinity of the potential CAD cell locations (determined during the field investigation phase), such locations will need to be precisely identified prior to proceeding forward with the dredging design. This information will be obtained by meeting with the appropriate utility companies and City personnel to discuss their knowledge of the locations of utilities in Newport Bay and to review their as- built drawings. As with Subtask 1. 1, this information will be loaded into our CADD and GIs systems to assist with future design tasks as well as selecting the preferred alternative. Mr. Chris Miller November 5, 2009 Task Deliverable: Data layers for internal Anchor QEA use in building the site base maps. Subtask 1.3: Hydraulic Pipeline Routing Research and Layout If, during CAD cell construction, the City chooses to pump the sediment over Balboa Peninsula, a large portion of the hydraulic pipeline will need to be routed over land, from a point near the CAD cell to the other side of the peninsula where a likely point of discharge on the beach might exist. Therefore, an implementable and cost - effective upland pipeline route will need to be identified. This pipeline will need to be routed such that it minimizes disruption to local traffic and avoids existing structural features and utility lines, among other factors. Anchor QEA will work closely with the City's Public Works Department to discuss potential pipeline placement routes and identify associated costs and challenges with each option. Alternately, if a pipeline route is selected through LNB, a similar process will be required to select potential routes and associated potential impact areas for evaluation during the CEQA process. Anchor QEA will evaluate both potential options for the project. Task Deliverable: Data layers for internal Anchor QEA use in building the site base maps. Subtask 1.4: CAD and Non - Federal Dredging Area Structural Offsets or Protection Evaluation Dredging near any shoreline structure has the potential to create unstable conditions due to removal of passive earth pressures or undermining of the structure in the future. Thus, based on information provided by the City, Anchor QEA will identify and review the position, layout, and general condition of structures within or near the planned non - Federal dredging areas and CAD cell locations to determine if precautionary measures (such as dredging offsets or additional protection) will be necessary to retain the stability of the structure and avoid adverse impacts on stability. This work includes reviewing as -built drawings for all shoreline areas proposed for dredging or CAD cell locations as well as conducting field surveys to verify the current condition of the structures. The information gathered during this step will aid in selecting a preferred location for the CAD cell, if that is the alternative selected. Mr. Chris Miller November 5, 2009 Page 4 In addition to the structural evaluation of the CAD cell, data on potential removal depths adjacent to the bulkheads within the Rhine Channel will also be critical for forecasting future design efforts to the non - Federal dredging areas. This information can be gathered by measuring the depth to the native sand layer within various areas of the Rhine Channel to compare target removal depths from the center of the channel with that for the outside perimeter along the bulkheads. This will be accomplished in the field using a hand corer from a small boat. Task Deliverable: Data layers for internal Anchor QEA use in building the site base maps and information regarding construction requirements /equipment to be used in conducting the CEQA evaluation. Subtask 1.5: Preliminary Modeling of Environmental Protectiveness for CAD Cell Using physical and chemical characteristics of sediments available from previous studies, a series of USACE - developed computer models (or other suitable models) will be used to provide an estimate of environmental protectiveness of dredging and disposal activities (water quality modeling) and long -term containment of the chemically impacted sediments (cap breakthrough modeling) within the CAD cell. The Short-term Fate of Dredged Material Disposal model (STFATE; developed by USACE) will be run to simulate sediment resuspension and loss of particulates during their descent through the water column into the CAD cell, which can predict the concentration of total suspended solids (TSS) remaining in suspension at a particular time and their lateral spreading distance from the point of dumping. Additionally, a preliminary run of the steady -state "cap chemical breakthrough" model (developed by Reible, et al.) will also be run to predict the ability of surficial capping material to chemically isolate the underlying contaminated sediments from burrowing organisms and biota residing in the overlying water column under long -term scenarios. This analysis will determine the preliminary required minimum cap thickness in order to maintain environmental protectiveness. Mr. Chris Miller November 5, 2009 Page 5 Included in this subtask will be the evaluation of bioturbation on the cap surface as it relates to the potential for redistribution of buried contaminants from burrowing organisms. Scour potential from wind, wave, and currents will also be evaluated to ensure that the preliminary cap design provides protection from erosional forces as well as chemical flux and biological activity. Lastly, a preliminary evaluation of effects from future uses (e.g., mooring installations and repairs) will be evaluated and incorporated in the revised conceptual cap design. In addition to providing vital engineering design information, this data will also assist in comparing potential CAD site impacts to other alternatives as well as preferred site selection based on site conditions (e.g., water depth, currents, etc.). Some of the models performed during this subtask will be conducted by Everest International Consultants, operating as a subconsultant to Anchor QEA. Task Deliverable: Model results showing probable construction requirements for use in preparing the project description for the CEQA evaluation. Subtask 1.6: Preliminary CAD /Non - Federal Dredging Production Rates Using harbor bathymetry (i.e., available drafts), distance of travel, likely dredging volumes, and dredging equipment, preliminary production rates will be calculated to provide estimates of construction duration under different scenarios. This preliminary production rate will then be compared against dredging closure windows and seasonal activities to identify optimal construction sequences and will be useful in developing a range of engineer's cost estimates based on varying conditions (described below) for use in alternative selection and/or CAD cell positioning. Task Deliverable: Preliminary dredging production rates affecting probable construction requirements for use in preparing the project description for the CEQA evaluation. Subtask 1.7: Development of Preliminary CAD Cell /Non - Federal Dredging Construction Unit Costs Using the preliminary information gathered in the above subtasks, as well as information gathered from discussions with local contractors competent to perform the work, a preliminary set of construction unit costs will be prepared. These estimates will include Mr. Chris Miller November 5, 2009 Page 6 rough order of magnitude costs for key construction components (such as mobilization and demobilization), dredging and disposal unit rates (hydraulic and mechanical), structural protection (if necessary), and capping material placement. The purpose for conducting this task at this phase of the project is to allow the City to make critical, construction - related decisions required to complete the initial CEQA tasks such as optimal CAD cell location. A formal cost estimate will be developed during the latter phases of the engineering design, once dredging and filling quantities have been finalized. The cost for developing the formal engineer's cost estimate is not included in the current scope of work. Task Deliverable: Cost analysis tables. Subtask 1.8: Coordination with USACE and other Agencies Most of the navigational channels within LNB are maintained by the USACE and any dredging within those areas will be its responsibility. Close coordination with USACE staff will be critical in determining future roles for performing the various design tasks (e.g., the USACE may request the City's assistance with engineering design for the federal channel areas where contaminated sediments occur) and how design documents will come together in the end for bidding and also for cost sharing purposes. Meetings with other entities (Port of Long Beach, regulatory agencies, etc.) related to potential disposal alternatives will also be conducted to gauge potential, unforeseen concerns early in the design process. This approach would lead to a corrected course of action early on, and avoids delays later in the review process. Task Deliverable: No formal deliverables will be produced as a result of this task. TASK 2: CALIFORNIA ENVIRONMENTAL QUALITY ACT DOCUMENT PREPARATION The following details our approach to CEQA documentation. Please note that associated costs to prepare and submit applications and obtain all necessary permits for the proposed construction project have not been included in the current scope of work. Mr. Chris Miller November 5, 2009 Construction of a CAD and the non - Federal dredging activities require environmental review under both state (CEQA) and federal (National Environmental Policy Act [NEPA]) guidelines. The City would act as the lead CEQA agency, and the U.S. Army Corps of Engineers Regulatory Program (USAGE) would act as the lead NEPA agency. Anchor QEA will prepare the CEQA documentation with the understanding of the requirements of future permit applications. These construction activities are also subject to permits issued under Section 10 of the Rivers and Harbors Act (RHA), Sections 404 and 401 of the Clean Water Act (CWA), and the California Coastal Act (CCA). For this project, the USACE would be the lead agency for RHA and CWA Section 404 permits, as well as associated consultations for Endangered Species Act/Essential Fish Habitat (ESA/EFH) issues, including eelgrass. The Santa Ana Regional Water Quality Control Board (SARWQCB) would be the lead agency for CWA Section 401 as well as Waste Discharge Requirements (WDRs). The California Coastal Commission (CCC) would be the lead CCA agency. In addition to requiring a Coastal Development Permit, the CCC will treat the project as either a City project requiring a consistency certification or as a USACE Operations and Maintenance (O &M) project requiring a federal consistency determination. All of the above mentioned agencies, including other consulting agencies such as the U.S. Environmental Protection Agency (USEPA), have used essentially the same permitting strategy for developing similar CAD sites in Southern California and thus have experience with review and approval of CAD site development. Both the USACE Regulatory Division and the O &M program will prepare Environmental Assessments (EAs) to meet their own NEPA requirements for the non - Federal dredging and Federal dredging, respectively. Additionally, at this time, it is assumed that a California State Lands Commission (CSLC) dredging lease will also need to be obtained for any dredging and disposal components outside the Federal channel areas. Initially, the City intended to prepare an EIR that evaluated a range of sediment disposal options including port fill and the construction of a CAD cell in LNB, although a port fill was not at that time available and would need to be dropped as a reasonable alternative. Recently, a potential opportunity for disposing of contaminated sediments at a port fill Mr. Chris Miller November 5, 2009 Page 8 within the Port of Long Beach has become available, but requires immediate permitting and engineering attention. As such, the current plan is to prepare, in parallel with the EIR, an MND that focuses on non - Federal dredging areas only and disposal of the material within a POLB fill site. The goal is for both CEQA processes to proceed in parallel until such time that one becomes the obvious path forward. The parallel preparation of the EIR and MND is broken down into the following logical steps. Please note that tasks below group several steps into logical sub -tasks and that the Gantt chart provides further task -by -task detail. Subtask 2.1: Harbor -wide Contaminated Sediment Management Alternatives Analysis Document Prior to the preparation of the EIR, Anchor QEA will prepare a detailed, alternatives analysis document which focuses on the requirements of each alternative in terms of cost, technical/logistical issues, environmental impacts, and regulatory feasibility. This document will be provided to the City for the City's determination of which alternatives to include in the EIR. The alternatives analysis will also evaluate and select the preferred location of a CAD cell in LNB for analysis in the EIR. The analysis completed as part of task 2.1 will be referenced and included as a technical appendix to the EIR. The EIR will describe, in detail, the rationale for any alternatives that were considered but eliminated, and make extensive use of the task 2.1 deliverable. Alternatives to be considered in the subtask 2.1 deliverable are: 1. Upland Landfill Disposal 2. On -site Sediment Treatment Facility (cement stabilization and sand separation) 3. Long Beach CAD Placement in the energy island borrow pits 4. Future Port Fill only (subject of the MND) 5. Alternative CAD site locations in LNB Task Deliverable: Alternatives analysis document describing the full range of alternatives available to the City for disposal of non - Federal dredge material (including potential locations for a CAD cell in LNB). This document will identify the alternatives for CEQA analyses, and will be a technical appendix to the EIR. Mr. Chris Miller November 5, 2009 Page 9 Subtask 2.2: EIR Project Description, Table of Contents, Range of Alternatives, Preparation of an NOP, and Scoping Meeting Following the completion of subtask 2. 1, the EIR would be initiated with a CEQA kick -off meeting with City staff to develop and review the Project Description (PD), the table of contents for the EIR, and review and approval of a Notice of Preparation (NOP) for the EIR. Anchor QEA staff would prepare the draft PD, table of contents, a proposed range of alternatives, and IS/NOP for City approval. AQEA is proceeding with the plan to prepare an eventual focused EIR. Our expectation is the IS (prepared for the MND in parallel with these activities) will identify certain areas of CEQA analyses that can be "scoped out" of the future EIR. Following approval of these items, Anchor QEA will prepare the NOP for the City's approval. Anchor QEA will prepare a sufficient number of copies of the NOP to mail to the interested parties as required under CEQA. The City will provide Anchor QEA with stamped envelopes addressed to the interested parties which Anchor QEA will stuff and place in the mail. The City will be responsible for publishing the NOP. Anchor QEA will assist the City with the scoping meeting, including preparing displays and setting up the room. The City will be responsible for providing the meeting locale and the reporter, and for conducting the meeting. Anchor QEA staff will be present to answer questions or provide detail in response to questions. We would anticipate the scoping meeting to be a well attended large public forum, with substantial amounts of comments resulting from it to incorporate into the draft EIR. Anchor QEA understands the concerns of the City and the residents related to the range of alternatives. In crafting these alternatives, we will rely on our professional judgment and expertise, public input, and the results of Anchor QEA's previously completed Feasibility Study (FS) and our alternatives analysis report prepared under Task 2.1 to help determine which alternatives are carried forward for co -equal analysis, and which are discussed as not carried forward based on failing to meet the project objectives or obvious significant impacts. Mr. Chris Miller November 5, 2009 Page 10 Task Deliverables: The following deliverables (draft and final format) will be submitted under this task: project description, EIR table of contents, and Initial Study/Notice of Preparation. Subtask 23: Conduct Biological and Technical Studies, Prepare Draft and Final EIR This step includes all necessary biological and technical documentation to complete the internal draft EIR (as well as inform the MND). The document will be prepared in full consideration of the City of Newport Beach's needs and precedents, all relevant CEQA statutes, as well as the future needs of other agencies for their permitting needs, e.g., the Corps, Coastal Commission, and the Santa Ana Regional Water Quality Control Board (SA- RWQCB). The alternatives analysis will also meet the requirements of the Corps of Engineers 404(6)(1) alternatives analyses. Anchor QEA will incorporate the public comments received during the scoping process and prepare an internal administrative draft EIR. Anchor QEA will consider impacts related to the agreed range of alternatives developed in Subtask 2. 1, and will also include draft needed mitigation measures and a draft Mitigation and Monitoring Reporting Plan (MMRP), proposed best management practices (BMPs), and Water Quality Plans. Anchor QEA, in compliance with CEQA requirements, will analyze the following environmental elements: • Aesthetics • Air and Noise • Transportation • Biological Resources • Water Quality, including hydrology and chemistry • Cultural Resources • Safety /Hazardous Materials /Risk of Upset • Land Use and Utilities • Geology and soils, including soil chemistry • Recreation and public facilities Mr. Chris Miller November 5, 2009 Paae 11 Please note that any impact area "scoped out" as part of the Initial Study process would not be included in the EIR. Because an IS has not yet been prepared, our scope and budget presumes preparing technical information for all of the above listed sections. Alternatives carried forward for "co- equal' analyses will be carefully and methodically discussed. Special attention will be paid to cost, logistics, environmental protectiveness, construction related impacts (e.g. water quality), and long -term operation. All CEQA biological and technical information will be prepared in -house with the exception of our use and oversight of an air quality subconsultant, iLanco, Inc., who has worked with Anchor QEA on dredging air quality issues on numerous projects, including the Port of Hueneme CAD site. Anchor QEA will submit the document to the City for review, and then incorporate any City comments received, prepare the public draft EIR, and manage the circulation of the public draft as well as the hearing on the draft (as described in subtask 2.2). We will also include a draft Mitigation and Monitoring Reporting Plan (MMRP) with the draft EIR. Anchor QEA will prepare 60 hard copies of the public draft EIR, as well as posting the draft to the project website. Anchor QEA's production budget assumes that all technical appendices to the draft and final EIR will be attached as CDs. Anchor QEA will then review comments received during this stage, prepare a response to comments, and finalize the document including preparation of the findings and management of the administrative processes required to file the document. Our current schedule and budget are based on responses to comments and edits to the draft that can be accomplished based on the information prepared to date, e.g. responses and edits do not require addition of new alternatives after the publication of the draft, or new technical studies not previously considered. If, for example, the City requests new alternatives be developed and included, new technical studies are requested, and/or the document needs to be re- circulated in draft form, additional funds will be required. Task Deliverables: 5 hard copies of the administrative draft; 60 hard copies of the draft and 5 copies of the final EIR document. Mr. Chris Miller November 5, 2009 Faze 12 Subtask 2.4: Prepare Draft and Final MND In parallel to the tasks above, Anchor QEA will initiate an Initial Study and Mitigated Negative Declaration for dredging and transport of all non - Federal contaminated sediments to the POLB Middle Harbor slip fill. Non - Federal contaminated material refers to the Rhine Channel and the Regional general Permit (RGP) 54 exclusion areas. This task will be conducted in parallel with Subtasks 2.1 to 2.3 above. This step is necessary to meet the aggressive planning schedule for potential use of the POLB fill site. This task also includes preparing the required public notices and management of administrative tasks. We will prepare an administrative draft IS, incorporate all City comments in the administrative draft IS, publish the Notice of Availability of the MND, and attend the hearing on the IS /MND. As with the EIR review process described in Subtask 2.3, depending on the number and diversity of comments received, or any requested additional studies, we may require additional funds to complete the MND. Our estimated cost for the MND tasks is $40,000. This cost estimate is based on the following assumptions: • Assistance and management of all CEQA administrative tasks, including the preparation of mailings and notices; stamped, addressed envelopes will be provided by the City; the City will publish the notices in the newspaper and record the MND with the County • Preparation of an administrative and public draft MND • Attendance at Council hearings on the MND, as needed • Agency coordination, as needed Task Deliverables: 5 hard copies and 10 CDs each of the administrative draft MND; 60 hard copies of the draft MND, and 5 copies of the final MND (all technical appendices will be attached to the IS/MND as CDs). Mr. Chris Miller November 5, 2009 Page 13 TASK 3: Miscellaneous Outreach Meetings, Agency Coordination Meetings, and Other Project Coordination Task 3 provides funds for Anchor QEA staff to attend any and all public outreach or workshop meetings, agency coordination meetings, and/or any other related or required meetings conducted through the end of 2010. While Anchor QEA will attend all meetings regardless of the number required for this project, this commitment is based on our recent work developing the Port Hueneme CAD cell where the meetings included approximately 2 City meetings per month, up to 2 stakeholder meetings per month and up to 1 agency meeting per month. These are in addition to the more formal scoping meetings and council updates. As part of the public outreach meetings, Anchor QEA will attend up to three formalized public workshops on the project and we have included the costs for those meetings into our budget request. These meetings would be separate from the CEQA process. As has occurred thus far, we propose that the City and Anchor QEA continue to target key stakeholder groups individually with separate, focused meetings. Anchor QEA will set up and manage a Lower Newport Bay dredging website and use that forum to post and distribute all CEQA related materials. The advantage of setting up the website early in the process is that citizens would become accustomed to viewing the site for information; when construction begins and public notices become important to safety and public information, this site will be an invaluable resource. Task Deliverables: Meeting notes; LNB dredging website. SCHEDULE AND BUDGET The overall effect of the requested changes (MND and EIR preparation in tandem and advance alternatives analysis for the CAD) on the project schedule and budget vary. The revised estimated budget ($445,000) is $50,000 higher than our previous estimate to reflect the addition of the MND deliverables listed in Subtask 2.4 and the increased production costs of the MND and EIR. A summary of our costs is provided in Table 1. Mr. Chris Miller November 5, 2009 Pape 14 The overall impact on the project schedule is mixed. While the accelerated MND path will result in an approved project by fall of 2010, the full EIR path will likely not be completed until sometime in early 2011. This is later than previously estimated because of the delays in getting the project initiated as the City decides on the appropriate path forward. The attached schedule details the anticipated work window for each of the steps and subtasks. Please note that should the MND path be taken forward to conclusion, the agency permits step would be advanced. We hope this info sufficiently and accurately details the discussions that we had regarding the requested changes. If we have missed anything, please do not hesitate to contact me or Dr. Josh Burnam at (949) 347 -2780. Sincerely, Steve Cappellino Partner, Anchor QEA, L.P. Mr. Chris Miller November 5, 2009 Page 15 Table 1: Estimated Costs for Current Scope of Work Task Estimated "Cost Task 1 PRE - DESIGN ENGINEERING TASKS AND ANALYSES Review of Existing Literature and Task 1.1 $25,000 Additional Research Locate and Record All Utility Crossings Task 1.2 $5,000 within CAD Area Hydraulic Pipeline Routing Task 1.3 $20,000 Research /Sand Placement Locations CAD and City Dredge Areas Structural Task 1.4 $22,000 Offsets or Protection Evaluation Preliminary Modeling of Environmental Task 1.5 $30,000 Protectiveness for CAD Cell Task 1.6 Preliminary Production Rates $4,000 Development of Preliminary Task 1.7 $101000 Construction Unit Costs Coordination with USAGE and Other Task 1.8 $12,000 Agencies Tosk l Estimated Costs $228,000 Task 2 CECIA DOCUMENT PREPARATION Harbor -wide Contaminated Sediment Task 2.1 $63'000 Management Alternatives Analysis Project Description, Table of Contents, Task 2.2 Range of Alternatives, Preparation of $42,000 an NOP, and Conduct Scoping Meeting Conduct Biological and Technical Task 2.3 $130,000 Studies, Prepare Draft and Final EIR Task 2.4 Prepare Draft and Final MND $45,000 Task 2 Estimated Costs $275,000 Task 3 MEETING TASKS Task 3.1 Agency Coordination & Outreach $32,000 Task 3 Estimated Costs $32,000 Grand Total far Tasks 1-3 $445,000 S Prbeesign studies 120 days Early mmach antl agenty cdnsuftadon 90 days 3 Prepare Aftcmatives Malyais Document ........ ........ ........ ...... ....... ... ... ..... 30 days ..... ..._....._ei ntal .e. ... ...... ... .. . Projttt Environmental Review .. ... '. 341 days OR 301 days Cemp list e Project Description and! Oran NOP ', 14 deys 13mlogical and! Technical Studies as needed 60 days Revise NOR and Mail NOP 45 days 3 $caPl Meaning 11 ddYa Prepare Admin Drag 90 days City severe, of Hdmin draft � 30 days ...... ..._ . nd stC ..._... ..._. Rasp :ty rHmments "�'� � 21 days 3 Prepare Pudic Drag 30 days S Not. Cadd, rvPUblmh Notice dAvailabilkY Yday Caesurae Draft and Conduits Meeting 30 days Response to Comments W days Cedtfiratwn of Final EIR - � 14 days Adopt Pintlingz and MMRP ]days CiN approves tl <Proltta )dHYa - City files Notice of Determination ) days MND 166 days -- 9oibgral and Technical Studms as needed - - 55 days Prepme admimet fve draft Initial Study 55 days City unriew of edmiNSRahve tlra% - _- - - 21 Lays -- - FIha1 fiat IStudylpred MND - - - 10 day s Nvbce to Adopt KIND _ - -- .. ........... 1'EaY public: review 30 days - -- City cnuncl approves project 14 dvOce or Dekeminanon 5 days ...... ....... ---- . 30 day filing .. Y Operiod with County Clerk ........ days 30 days Pm4 ndgn studies 7 77i Early outreach and agency consuMalion apare Aftemadves Analysis Document OR and Technical Studlea as needed ne Mail NOP 9 Adman Draft to City comments .pare Public Draft and Notice of ConsplatioNPublish Notice of Availability Public Comment Period r- easponce to Comment �—.-Cedi%cation of Final OR antl MMRP City Plans Notice of Cetermination Boilogioal and Technical Studies as needed y__:�Prepam adminiataadve draft initial Study z i ate review of aemaniHaah.e Bran �Fnabae Initial StudyMraft MND LN011ca to Adopt MIND City council approves project L35 Nadi. of Datemtmalien W day fill" perktl with County Clerk Task N — proses. Summary ^ EAemal Tasks ,ilhi'y Deadline •j Prvjevt CNBCAD vs EIR Irc _.___..._........, is Case: Wed 1114109 Split Milestone . Project Summery External Milestdoe Page 1 City of Newport Beach BUDGET AMENDMENT 2009 -10 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues Hx from unappropriated fund balance EXPLANATION: NO. BA- 10BA -019 AMOUNT: 550,000.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations to approve amendment No. 1 to the professional services agreement with ArKAV QEA Inc. for enineering and environmental tasks associated with dredging and disposal for a Lower Bay dredging project In Newport Harbor. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 230 3605 Tidelands Fund - Fund Balance $50.000.00 REVENUE ES77MATES (3601) Fund/Division Account EXPENDITURE APPROPRIATIONS (3603) � Description Division Number 7231 Tidelands Capital Account Number C4402001 Harbor Dredging Project Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Financial Approval: Administrative Services Director r rrr rr Al 6 / e ll L Dale Signed: City Council Approval: City Clerk Date