HomeMy WebLinkAbout12 - Professional Services Agreement for U.S. Army Corps-Related Projects�EVUPQQr CITY OF
NEWPORT BEACH
CH
C1t Council Staff Report Agenda Item No. 12
p October 11, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3001, dkiff @newportbeachca.gov
PREPARED BY: Dave Kiff, City Manager
APPROVED: A \L/�\
i
TITLE: Approval of Professional Services Agreement Amendment No. 3
with Van Scoyoc Associates for U.S. Army Corps - Related Projects
and Approval of a Budget Amendment
ABSTRACT:
Should the City maintain its Washington DC -based firm to assist us in advocacy for
dredging of the Lower Newport Bay?
RECOMMENDATION:
a) Authorize the City Manager to enter into Professional Services Agreement
Amendment No. 3 for up to $48,000 with Van Scoyoc Associates to advocate for
U.S. Army Corps- related projects, including Lower Newport Bay and the Seminouk
Slough; and
b) Approve Budget Amendment No. 12BA -014 relating to appropriating $48,000 for
this effort.
FUNDING REQUIREMENTS:
The Budget Amendment records and appropriates $48,000 in increased expenditure
appropriations from Tidelands Fund Balance 230 -3605 to Harbor Resources — Services
Prof/Tech 5060 -8080.
DISCUSSION:
Since 2008, the City has worked with Van Scoyoc Associates to assist us in securing
Federal funds to complete the Upper Newport Bay dredging project and to start the
Lower Newport Bay dredging project. The $48.5 million Upper Newport Bay Project will
Approval of Professional Services Agreement Amendment No. 3 with Van Scoyoc Associates for U.S.
Army Corps - Related Projects and Approval of a Budget Amendment
October 11, 2011
Page 2
be done this fall thanks to an influx of more than $18 million in federal Stimulus funding,
if all goes according to schedule.
Lower Newport Bay. Lower Newport Bay is a commercial and recreational harbor
serving about 10,000 vessels, a US Coast Guard facility, an Orange County Sheriff's
Harbor Patrol facility that covers two other harbors (Dana Point and Huntington), small
shipbuilding, and more. The Harbor includes a Federal Navigational Channel that runs
from the Newport Harbor entrance jetties to the area near where Pacific Coast Highway
and SR -55 (Newport Boulevard) meet the Harbor.
The channel and nearby waterways receive sediment from a 154 - square mile upstream
watershed that includes the communities of Irvine, Lake Forest, Tustin, Orange, Santa
Ana, Costa Mesa, and Newport Beach. The City of Newport Beach and our upstream
partners, which include the cities listed along with the County of Orange, the Irvine
Ranch Water District, and others, continue to expend, on an annual basis, hundreds of
thousands of dollars in sediment management projects to keep the sediment where it
should be. More than $145,000,000 has been spent in this watershed over the last 30
years to control sediment. However, some sediment continues to reach the Upper and
Lower Newport Bays.
Sedimentation in the Lower Bay is a significant problem for navigation and water quality,
but primarily for navigation. Portions of Lower Bay have not been dredged to design
depth in 70 -80 years (since the Harbor's creation). Other portions have been dredged
in small bits and pieces, in amounts of $2-4 million per job. As a result, large portions of
the Bay cannot accommodate normal boats with normal drafts except at higher tides.
Dock damage is prevalent, too (see photo below). Larger boats with more significant
drafts are almost entirely unable to use the Harbor.
Lower Newport Bay, March 4, 2008
The Lower Bay's navigational channels have been an ongoing — yet unfunded —
obligation of the Federal government via the Corps. Except for brief emergency
Approval of Professional Services Agreement Amendment No. 3 with Van Scoyoc Associates for U.S.
Army Corps- Related Projects and Approval of a Budget Amendment
October 11, 2011
Page 3
dredging episodes, in past years (through Federal FY 2009), the President's Office of
Management and Budget (OMB) has not allocated any funding for this Federal
obligation. However, for the first time ever, President Obama allocated $1.78 million in
his FYI 0 budget for the Corps to start work in Lower Newport Bay.
We believe that, to properly restore the Harbor to its design depth with an overdredge of
about 2', about 1.4 million cubic yards of material needs to be removed.
As the Council is aware, disposal methods greatly affect cost. The more material that
can be used on local beaches and disposed of at LA -3, the lower the cost. The more
material that has contamination levels too high for offshore disposal, the higher the cost.
We hope to place most if not all of this material at the Port of Long Beach as the POLB
expands later this year and into next.
The Corps believes that the cost estimate for the Lower Bay project is about
$29,500,000.00.
Removal of 1.4 million cubic yards should provide extensive and long -term relief to the
Lower Bay's recreational and commercial boating activities, provided that this is coupled
with a long -term effort to:
• Continue the City's commitment to cooperatively funding (with our watershed
partners) the maintenance of sediment catch basins in the Santa Ana Mountain
foothills and in San Diego Creek;
• Maintain and add to the Robinson - Skinner Annuity (currently containing $3.8 million
for the "next" Upper Newport Bay dredging effort); and
• Establish and maintain a good sediment management program for the Lower Bay,
estimated to be one that removes about 60,000 cubic yards of material a year
(possibly multiples of that every 3, 5, or 7 years), estimated now at $1,080,000 per
year. This is a Corps obligation today.
As noted, about $1.78 million was in the President's Budget for Federal FY 2010, with
about the same in the President's FY 2011 budget. These allocations are welcome, but
fall well short of the Corps' capacity. As such, we continue to work with our members of
Congress and with the California Marine Affairs and Navigation Conference (CMANC)
to add funding to the Project as appropriations bills move through Congress this
summer and fall.
Santa Ana River Marsh /Newport Slough. The Santa Ana River Marsh is an ongoing
maintenance obligation of the Corps and one that is associated with the Santa Ana
River Mainstem Flood Control Project. This Corps construction project has been
delayed or suspended because of limited funding. $1.9 Million is needed to complete
the project.
Approval of Professional Services Agreement Amendment No. 3 with Van Scoyoc Associates for U.S.
Army Corps - Related Projects and Approval of a Budget Amendment
October 11, 2011
Page 4
The 1990 construction of the Santa Ana Marsh was a project feature of the larger Santa
Ana River Mainstem Project. The Marsh is located at the mouth of the river within the
city limits of Newport Beach. The purpose of the marsh construction was to mitigate
impacts from the River project and to restore 92 acres of coastal wetlands.
Due to limited Federal Operation and Maintenance funding over the past years, the
marsh has not been appropriately maintained. The amount necessary to restore the
Marsh to its authorized project conditions is approximately $1.9 million.
The City has been willing to consider working with a local land conservancy group to
maintain and operate this Marsh area in conformance with Corps policy guidelines and
environmental maintenance requirements upon the Marsh being restored to original
design conditions.
Santa Ana River Marsh Area
To that end, this Agenda Item asks the City to continue our existing contract (with two
years completed) with Van Scoyoc Associates (VSA) in Washington DC to work on
these two efforts for us. Funding priority will be for the LNB followed by the Marsh.
Approval of Professional Services Agreement Amendment No. 3 with Van Scoyoc Associates for U.S.
Army Corps - Related Projects and Approval of a Budget Amendment
October 11, 2011
Page 5
Three years ago at this time, the City informally spoke with a number of people for
references, and staff was comfortable in recommending Mr. James Crum and Mr.
Thane Young of VSA at the time. After three years of good success, we remain
comfortable asking for another 12 -month extension.
VSA would operate under the same Professional Services Agreement at a reduced
billing rate ($4,000 per month — down from $5K/mo) for up to twelve (12) months if
Council authorizes this action.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Dave Kiff
City Manager
Attachments: A. Professional Services Agreement
B. Budget Amendment
AMENDMENT NO. 3 TO
PROFESSIONAL SERVICES AGREEMENT WITH
VAN SCOYOC ASSOCIATES FOR
GOVERNMENTAL ADVOCACY
THIS AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT, is
entered into as of this 11th day of October, 2011, by and between the CITY OF
NEWPORT BEACH, a Municipal Corporation ( "CITY "), and VAN SCOYOC
ASSOCIATES, a District of Columbia Corporation, whose address is 101 Constitution
Ave., NW, Suite 600, Washington DC 20001, ( "CONSULTANT'), and is made with
reference to the following:
RECITALS:
A. On March 26, 2008, City and Consultant entered into a Professional Services
Agreement, hereinafter referred to as "Agreement," for governmental advocacy
services related to Federal appropriations and interactions with the US Army
Corps of Engineers for the dredging projects of the Lower Newport Bay, Upper
Newport Bay and Seminouk- Newport Sloughs, hereinafter, referred to as "Project."
B. City and Consultant have entered into two separate Amendments of the
Agreement, the latest dated July 1, 2010.
C. City desires to enter into this Amendment No. 3 to reflect additional services to
extend the term of the Agreement to October 11, 2012, to increase the total
compensation and update insurance requirements.
D. City desires to compensate Consultant for additional professional services
needed for the Project.
E. City and Consultant mutually desire to amend Agreement, hereinafter referred to
as "Amendment No. 3," as provided here below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. TERM
The term of the Agreement shall be extended to October 11, 2012, unless
terminated earlier as set forth in the Agreement.
2. ADDITIONAL SERVICES TO BE PERFORMED
In addition to the services to be provided pursuant to the Agreement and
Amendments No. 1 and 2, Consultant shall diligently perform all the services
described in Amendment No. 3 including, but not limited to, all work set forth in
the Scope of Services attached hereto as Exhibit A and incorporated herein by
reference. The City may elect to delete certain tasks of the Scope of Services at
its sole discretion.
3. COMPENSATION
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 as Exhibit B to this Amendment No. 3. Consultant's
compensation for all work performed in accordance with this Amendment No. 3,
including all reimbursable. items and subconsultant fees, shall not exceed Forty
Eight Thousand Dollars and No /100s ($48,000.00) without prior written
authorization from City. The total compensation for all work performed pursuant
to the Agreement, and the Amendments thereto including all reimbursable items
and subconsultant fees, shall not exceed Two Hundred and Twenty -Eight
Thousand Dollars and No /100s ($228,000.00) without prior written
authorization from City.
4. INSURANCE
Section 14 of the Agreement shall be amended hereby and the following terms are
substituted in their entirety:
"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, policies of insurance of the type and amounts described below and in
a form satisfactory to City.
A. Proof of Insurance. Consultant shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a
waiver of subrogation endorsement for workers' compensation. Insurance
certificates and endorsement must be approved by City's Risk Manager
prior to commencement of performance. Current certification of insurance
shall be kept on file with City at all times during the term of this contract.
City reserves the right to require complete, certified copies of all required
insurance policies, at any time.
Consultant shall procure and maintain for the duration of the contract
insurance against claims for injuries to persons or damages to property,
which may arise from or in connection with the performance of the work
hereunder by Consultant, his agents, representatives, employees or
subconsultants. The cost of such insurance shall be included in
Consultant's bid.
B. 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.
2
C. Coverage Requirements.
i. Workers' Compensation Coverage. Consultant shall maintain
Workers' Compensation Insurance (Statutory Limits) and
Employer's Liability Insurance (with limits of at least $1,000,000) for
Consultant's employees in accordance with the laws of the State of
California, Section 3700 of the Labor Code In addition, Consultant
shall require each subconsultant to similarly maintain Workers'
Compensation Insurance and Employer's Liability Insurance in
accordance with the laws of the State of California, Section 3700
for all of the subconsultant's employees.
Any notice of cancellation or non - renewal of all Workers'
Compensation policies must be received by City at least thirty (30)
calendar days (10 calendar days written notice of non - payment of
premium) prior to such change.
Consultant shall submit to City, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of City, its
officers, agents, employees and volunteers.
ii. General Liability Coverage. Consultant shall maintain commercial
general liability insurance in an amount not less than $1,000,000
per occurrence for bodily injury, personal injury, and property
damage, including without limitation, blanket contractual liability.
iii. Automobile Liability Coverage. Consultant shall maintain
automobile insurance covering bodily injury and property damage
for all activities of the Consultant arising out of or in connection with
work to be performed under this Agreement, including coverage for
any owned, hired, non -owned or rented vehicles, in an amount not
less than $1,000,000 combined single limit for each accident.
iv. Professional Liability (Errors & Omissions) Coverage. Consultant
shall maintain professional liability insurance that covers the
services to be performed in connection with this Agreement, in the
minimum amount of $1,000,000 limit per claim and in the
aggregate.
D. Other Insurance Provisions or Requirements.
The policies are to contain, or be endorsed to contain, the following provisions:
Waiver of Subrogation. All insurance coverage maintained or
procured pursuant to this agreement shall be endorsed to waive
subrogation against City, its elected or appointed officers, agents,
officials, employees and volunteers or shall specifically allow
Consultant or others providing insurance evidence in compliance
with these requirements to waive their right of recovery prior to a
loss. Consultant hereby waives its own right of recovery against
City, and shall require similar written express waivers and
insurance clauses from each of its subConsultants.
3
ii. Enforcement of Contract Provisions. Consultant acknowledges and
agrees that any actual or alleged failure on the part of the City to
inform Consultant of non - compliance with any requirement imposes
no additional obligations on the City nor does it waive any rights
hereunder.
iii. Requirements not Limiting. Requirements of specific coverage
features or limits contained in this Section are not intended as a
limitation on coverage, limits or other requirements, or a waiver of
any coverage normally provided by any insurance. Specific
reference to a given coverage feature is for purposes of clarification
only as it pertains to a given issue and is not intended by any party
or insured to be all inclusive, or to the exclusion of other coverage,
or a waiver of any type.
iv. Notice of Cancellation. Consultant agrees to oblige its insurance
agent or broker and insurers to provide to City with 30 days notice
of cancellation (except for nonpayment for which 10 days notice is
required) or nonrenewal of coverage for each required coverage.
E. Timely Notice of Claims. Consultant shall give City prompt and timely
notice of claims made or suits instituted that arise out of or result from
Consultant's performance under this Agreement.
F. 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."
5. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in Agreement and the prior Amendments shall remain unchanged and shall be in full
force and effect.
0
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 on
the date first above written.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By:
Aaron C. Harp
City Attorney
ATTEST:
In
Leilani I. Brown,
City Clerk
CITY OF NEWPORT BEACH,
A Municipal Corporation
L-
Michael F. Henn
Mayor
CONSULTANT:
2
H. Steward Van Scoyoc
President
M
(Financial Officer)
Title:
Print Name:
Attachments: Exhibit A — Scope of Services
Exhibit B-- Schedule of Billing Rates
5
Exhibit A
Scope of Work
VSA will:
• Continue to work with the City to develop and promote a multi- tiered strategy to
position the City for an integrated effort over the course of the coming year for
the following projects:
Lower Newport Bay Dredging (Multi -year funding, Appropriations, Pres
budget, Project coordination)
Upper Newport Bay: political awareness for project completion
Seminouk Slough — Newport Slough Dredging (Coordination with the
Corps, Appropriatons)
These efforts involve a combined federal agency and congressional strategy that
support and complement each other — linking agency policies and congressional
funding decisions.
• Work with each of the relevant members of the California delegation on filed
appropriations.
• Assist in managing the funding proposal such that it will be scored as
advantageously as possible against the appropriations outlays and federal
budget, working with relevant Committee staff to discuss the City's approach to
lower Newport Harbor and its history.
• Identify, evaluate, and assist the City in seeking any other federal grants or
funding opportunities that may also apply to the key projects.
• Work with the City to identify any opportunities to secure additional funding. At
this time, we see the approach for completely funding the dredging requirements
for lower Newport harbor as a two -three year cycle.
• Provide timely reports so that the City knows of relevant legislative and political
developments.
• Maintain a closely coordinated effort with the City by establishing regular contact
through phone calls and emails.
• Provide periodic updates on congressional activities and on the status of the
City's priority issues.
• Routinely prepare for the City of Newport Beach the following work products:
• Analyses of developments on legislation of interest;
• Summary reports and draft testimony as needed;
• Meetings with members, key congressional aides, and agency officials;
R
o A white paper(s) geared toward elected officials and their staffs justifying
the project requests in simple and straightforward language.
Provide Congress with the exact appropriations bill, agency, account, and
program from which the City is requesting funding.
3 Legislative or report language to correspond with your project requests.
7
- $4,000 per month
Exhibit B
Schedule of Billing Rates
P
City of Newport Beach
BUDGET AMENDMENT
2011 -12
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
PX from unappropriated fund balance
EXPLANATION:
NO. BA- 12BA -014
AMOUNT: 548,000.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
X 1 e
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from the Tidelands Fund Balance for advocacy of U.S. Army Corps related projects,
including Lower Newport Bay and the Seminouk Slough.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
230 3605
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Signed:
Signed:
Financial
Description
Tidelands - Fund Balance
Description
Description
5060 Harbor Resources
8080 Services - Professional & Technical NOC
Administrative Services Director
Adminis ve Approval: City an ger
City Council Approval: City Clerk
Amount
Debit Credit
$48,000.00
Automatic
$48.000.00
Date
ro15 ul
Date
Date