HomeMy WebLinkAbout06 - Grant from the Division of Boating and Waterways for the Surrendered and Abandoned Vessel Exchange (SAVE) ProgramQ �EwPpRT
CITY OF
O �
z NEWPORT BEACH
<,FORN'P City Council Staff Report
January 28, 2020
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Kurt Borsting, City Harbormaster - 949-270-8159,
kborsting@newportbeachca.gov
PREPARED BY: Melanie Franceschini, Administrative Analyst
mfranceschini@newportbeachca.gov
PHONE: 949-644-3028
TITLE: Resolution 2020-7: Accepting a Grant from the State of California,
Division of Boating and Waterways for the Surrendered and
Abandoned Vessel Exchange (SAVE) Program
ABSTRACT:
Staff applied for and has been awarded grant funding from the State of California,
Department of Parks and Recreation, Division of Boating and Waterways to remove
abandoned and nuisance vessels from the waters of Newport Harbor. The funding
provided by the grant supplements existing City funds dedicated towards the removal of
abandoned or surrendered nuisance vessels in Newport Harbor.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Adopt Resolution No. 2020-7, A Resolution of the City Council of the City of Newport
Beach, California, Accepting a Grant from the State of California, Department of Parks
and Recreation, Division of Boating and Waterways for the Surrendered and
Abandoned Vessel Exchange Program; and
c) Approve Budget Amendment No. 20-028 recognizing $175,000 in grant revenue from
the California Division of Boating and Waterways (1 3501-431 385-20H11) and
appropriating $175,000 to Account No. 13501-980000-20H11 (Abandoned Watercraft
Abatement).
FUNDING REQUIREMENTS:
The Budget Amendment appropriates $175,000 in additional revenue from the State
Department of Boating and Waterways and $175,000 in increased expenditure
appropriations. The revenue will be posted to the Contributions Account No. 13501-
431385-20H11, and will be expensed to the Abandoned Watercraft Abatement account
in the Public Works Department, 13501-980000-20H11.
6-1
Resolution 2020-7: Accepting a Grant from the State of California, Division of Boating
and Waterways for the Surrendered and Abandoned Vessel Exchange (SAVE) Program
January 28, 2020
Page 2
DISCUSSION:
Newport Harbor is one of the largest small -craft recreational harbors on the California
Coastline, and is a welcome port to many boaters as they cruise the Pacific or tour local
waters. The City encourages public access to the water and offers slips and vacant
moorings available to rent to both locals and visitors. With approximately 1,200 public
moorings, the harbor also serves as home for a variety of permitted vessels.
While the majority of boaters and mooring permittees properly use the harbor, there are
occasional issues of vessel abandonment, illegal berthing and derelict vessels. As a
result, some vessels may face citations, impoundment or subsequent legal action (such
as liens, junking and demolition).
Left alone, such vessels may pose as harmful water hazards and can be prone to
discharges of oils, gas, sewage or other fluids; become platforms for wildlife to overrun;
or worse, take on water and sink in the harbor. Occasionally the City inherits these derelict
and abandoned vessels that result in disposal related costs for the City, and as such, the
City requires funding for proper disposal.
Considering that the process results in a necessary expenditure of public funds, City staff
is continuously exploring alternative mechanisms to reduce costs, obtain grant funding
and improve the effectiveness of the abandoned vessel remediation in Newport Harbor.
The Surrendered and Abandoned Vessel Exchange (SAVE) grant is a combination of
state grant funds for the Abandoned Watercraft Abatement Fund (AWAF) and the Vessel
Turn -In Program (VTIP), and is administered by the State of California's Department of
Parks and Recreation's Division of Boating and Waterways.
The AWAF is a reimbursement grant created in 1997 to provide state funding for the
abatement, removal, storage and disposal of abandoned vessels, wrecked or dismantled
vessels that pose a substantial hazard to navigation from navigable waterways, adjacent
public property or private property (with the landowner's consent) per Harbors and
Navigation Code (HNC) Section 525.
The VTIP grant was created by the State in 2010 as a proactive solution to prevent
abandoned vessels before they happen. By providing an easy and free alternative for
boat owners to surrender an unwanted vessel to a participating agency in lieu of
abandonment, it helps eliminate the expensive, difficult and time-consuming adjudication
and removal process that abandoned vessels require.
In March 2014, the Public Works Department, former Harbor Resources Division, applied
for, and successfully obtained SAVE grants for both AWAF and VTIP funding totaling
$125,700. In September 2016, an amendment was executed to extend the grant term to
October 2017. Over 30 vessels were removed from the harbor and disposed of with these
funds.
6-2
Resolution 2020-7: Accepting a Grant from the State of California, Division of Boating
and Waterways for the Surrendered and Abandoned Vessel Exchange (SAVE) Program
January 28, 2020
Page 3
In April 2017, the former Harbor Resources Division re-applied for, and once again
successfully obtained SAVE grants for AWAF and VTIP funding totaling $125,000. In
January 2019, an amendment was executed to extend the grant term to September 2019.
This time around, 25 vessels were removed from the harbor and properly disposed.
In March 2019, the Harbor Department submitted a new application for the next available
round of SAVE grant funding. In December 2019, the State provided notice of award for
a grant amount of $175,000.
This grant will supplement current Capital Improvement Program (CIP) funds for
abandoned vessel abatement and will allow the City to expeditiously process and
demolish vessels, and ultimately recoup the costs up to $175,000. This grant reimburses
the City for removing abandoned and surrendered vessels, while the City provides a 10
percent contribution to the overall cost of disposal.
In addition, due to the increase of grant funding of $50,000 from prior years, the City will
be able to accept more vessels under VTIP. The City has, over time, accumulated a list
of vessels that needs to be surrendered under VTIP. However, due to the limited amount
of grant funds, priority was given to vessels under AWAF that pose hazards to other
harbor users.
Due in large part to the creation of the Harbor Department, staff has been able to clean
up the harbor these past couple of years and dispose of many abandoned and derelict
vessels. With a revamped outreach program and more active code enforcement staff with
a presence on the water, there are fewer AWAF eligible vessels, providing the City with
an opportunity to accept more VTIP vessels.
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).
ATTACHMENTS:
Attachment A — Resolution No. 2020-7
Attachment B — Budget Amendment
6-3
ATTACHMENT A
RESOLUTION NO. 2020-.7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ACCEPTING A
GRANT FROM THE STATE OF CALIFORNIA,
DEPARTMENT OF PARKS AND RECREATION,
DIVISION OF BOATING AND WATERWAYS FOR THE
SURRENDERED AND ABANDONED VESSEL
EXCHANGE PROGRAM
WHEREAS, the City of Newport Beach ("City") is desirous of preserving and
promoting uses that contribute to the charm and character of Newport Harbor;
WHEREAS, the City uses local, county, state and federal regulations to remove
abandoned and surrendered vessels from City controlled areas of Newport Harbor;
WHEREAS, the State of California, Department of Parks and Recreation, Division
of Boating and Waterways ("Division") is authorized to distribute grants, through the
Surrendered and Abandoned Vessel Exchange Program ("SAVE Program"), to local
public agencies that have jurisdiction over navigable waterways in California for the
removal of abandoned and surrendered vessels;
WHEREAS, the City submitted a grant application to the Division through the
SAVE Program seeking funds for the City's vessel removal program in Newport Harbor;
WHEREAS, the Division reviewed and approved the City's grant application and
authorized the award of One Hundred Seventy -Five Thousand Dollars and 00/100
($175,000.00) ("Grant Funds") to partially fund the City's removal of abandoned and
surrendered vessels from Newport Harbor ("Grant"), subject to the terms and conditions
of the Grant Agreement, a copy of which is attached hereto as Attachment 1 and
incorporated herein by this reference; and
WHEREAS, in accordance with City Council Policy F-25 "Grant Administration",
the City Council hereby intends to approve and accept the Grant.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby approves and accepts the Grant, made
available through the SAVE Program and administered by the Division, subject to the
terms and conditions of the Grant Agreement.
Section 2: The City Manager is hereby authorized to execute the Grant
Agreement and any documents necessary for the City to secure payment of the Grant
Funds and effectuate the purposes for which the Grant was awarded.
Resolution No. 2020 -
Page 2 of 2
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 5: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 6: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 28th day of January, 2020.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment: Grant Agreement
6-5
ATTACHMENT
The Grantee agrees to the terms and conditions of this Agreement which includes Exhibit A, B, C, D,
E, F and G, hereinafter referred to as Agreement, and the State of California, acting through its
Director of the Department of Parks and Recreation, and pursuant to the State of California agrees to
fund the total State grant amount indicated below. The GRANTEE agrees to complete the tasks
identified in the STATEMENT OF NEED AND BUDGET SPREADSHEET, as defined in Exhibit G of
the Agreement and herein referred to as SCOPE OF WORK.
The General and Special Provisions attached are made a part of and incorporated into the Agreement.
Grantee: City of Newport Beach
Address: 100 Civic Center Drive,
Newport Beach, CA 92627
Authorized Signature:
Printed Name:
Title of Authorized
Representative:
Date:
Agency: Department of Parks and Recreation
Division of Boating and Waterways
ATTN: Ron Kent
Address: One Capitol Mall, Suite 500
Sacramento, CA 95814
Authorized Signature:
Printed Name: Keren Dill
Title: Staff Services Manager II
Date:
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date: 12/2012019 Page: 1 of 37
• •
State of California — Natural Resources Agency
DEPARTMENT OF PARKS AND RECREATION
DIVISION OF BOATING AND WATERWAYS
GRANT AGREEMENT - CERTIFICATE OF FUNDING
GRANTEE:
City of Newport Beach
GRANT TITLE:
SURRENDERED AND ABANDONED VESSEL EXCHANGE (SAVE -19)
GRANT AMOUNT:
$175,000.00
GRANT NUMBER:
C19SO608
GRANT TERM:
Effective: Date Fully Executed` through September 30, 2021
FULLY EXECUTED:
To be advised
The Grantee agrees to the terms and conditions of this Agreement which includes Exhibit A, B, C, D,
E, F and G, hereinafter referred to as Agreement, and the State of California, acting through its
Director of the Department of Parks and Recreation, and pursuant to the State of California agrees to
fund the total State grant amount indicated below. The GRANTEE agrees to complete the tasks
identified in the STATEMENT OF NEED AND BUDGET SPREADSHEET, as defined in Exhibit G of
the Agreement and herein referred to as SCOPE OF WORK.
The General and Special Provisions attached are made a part of and incorporated into the Agreement.
Grantee: City of Newport Beach
Address: 100 Civic Center Drive,
Newport Beach, CA 92627
Authorized Signature:
Printed Name:
Title of Authorized
Representative:
Date:
Agency: Department of Parks and Recreation
Division of Boating and Waterways
ATTN: Ron Kent
Address: One Capitol Mall, Suite 500
Sacramento, CA 95814
Authorized Signature:
Printed Name: Keren Dill
Title: Staff Services Manager II
Date:
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date: 12/2012019 Page: 1 of 37
• •
CERTIFICATE OF FUNDING
(FOR STATE USE ONLY)
GRANTEE: City of Newport Beach
GRANT TITLE: FY 2019/20 Surrendered and Abandoned Vessel Exchange (SAVE)
GRANT AMOUNT: $175,000.00
GRANT NUMBER: C19SO608
GRANT TERM: Effective: Date Fully Executed' through September 30, 2021
FULLY EXECUTED: To be advised
CONTRACT NO
AMENDMENT NO
SUPPLIER ID
10000011771
PROJECT NO
137900THER
C19SO608
AMOUNT
FUND DESCRIPTION
AGENCY BILLING CODE NO
ENCUMBERED BY
Abandoned Watercraft Abatement Fund (SAVE -19)
053706
THIS DOCUMENT
$175,000.00
REPORTING
Approp. Ref. Fund
CHAPTER
STATUTE
FISCAL YEAR
STRUCTURE
3790-101-0577
23
2019
2019120
37900709
BUSINESS UNIT
INDEX
PROGRAM
ACTIVITY CODE
ACCOUNT
3790
NIA
12855023
169990
15432000
T.B.A. NO
I hereby certify upon my own personal knowledge that the budgeted funds are available for this
encumbrance.
B.R.NO
ACCOUNTING OFFICER'S SIGNATURE
DATE
Contract a C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/20/2019 Page: 2 of 37
6-7
STATE OF CALIFORNIA
Department of Parks and Recreation, Division of Boating and Waterways
One Capitol Mall, Suite 500
Sacramento, CA 95814
EXHIBIT A
SURRENDERED AND ABANDONED VESSELS EXCHANGE (SAVE)
FISCAL YEAR 2019120
AUTHORIZED GRANT REPRESENTATIVES
The services shall be performed in the jurisdiction of: City of Newport Beach
State Agency:
Division of Boating and Waterways
Grantee (Agency Name):
City of Newport Beach
Name: Ron Kent
Grantee Representative': Melanie Franceschini
Title: Program Administrator
Title: Administrative Analyst
Address:
One Capitol Mall, Suite 500
Sacramento, CA 95814
Address:
100 Civic Center Drive,
Newport Beach, CA 92627
Phone: (916) 327-1825
Phone: (949) 644-3028
Fax:
Fax:
Email: ron.kent@parks.ca.gov
Email: mfranceschini@newportbeachca.gov
' Grantee representative information may only be changed by giving 30 days written notice to DBW.
Contract tf C19S0608. Ccty of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date_ 12!20!2019 Page: 3 of 37
EXHIBIT B
Surrendered and Abandoned Vessels Exchange (SAVE) Grant Program
1. NEEDS AND OBJECTIVES OF DBW
a. Pursuant to its authority under Harbors and Navigation Code section 525, the
Division of Boating and Waterways (DBW) wishes to contract with Grantee for the
removal and disposal of abandoned, wrecked or dismantled vessels, or parts thereof,
or any other partially submerged objects (hereinafter "eligible water hazards') which
pose a substantial hazard to navigation within Grantee's jurisdiction as listed on the
Questionnaire, found in Exhibit A.
b. Pursuant to its authority under Harbors and Navigation Code Section 525, the
Division of Boating and Waterways (DBW) wishes to contract with Grantee for the
removal and disposal of surrendered vessels, or parts thereof, which are in danger of
being abandoned and has a likelihood of causing environmental degradation or
becoming a hazard to navigation within Grantee's jurisdiction as specified according
to the Grantee's Work Plan, found in Exhibit A.
2. WATER HAZARDS ELIGIBLE FOR REMOVAL AND DISPOSAL
The funds provided under this Agreement shall be used for the combined purposes of
Surrendered and Abandoned Vessels Exchange (SAVE) as follows:
a. Abatement, removal, storage and/or disposal of eligible Marine Debris. For
purposes of this Agreement, "abandoned" is defined in Harbors and Navigation Code
section 522(a):
"Any hulk, derelict, wreck, or parts of any ship, vessel, or other watercraft sunk,
beached, or allowed to remain in an unseaworthy or dilapidated condition upon
publicly owned submerged lands, salt marsh, or tidelands within the corporate limits
of any municipal corporation or other public corporation or entity having jurisdiction or
control over those lands, without its consent expressed by resolution of its legislative
body, for a period longer than 30 days without a watchman or other person being
maintained upon or near and in charge of the property, is abandoned property".
Harbors and Navigation Code, Section 525 (1)(A):
"...the Abandoned Watercraft Abatement Fund, which is hereby created as a special
fund. Moneys in the fund shall be used exclusively, upon appropriation by the
Legislature, for grants to be awarded by the department to local agencies for the
abatement, removal, storage, and disposal as public nuisances of any abandoned
property as described in Section 522 or for the disposal of surrendered vessels as
defined in Section 526.1, wrecked or dismantled vessels, or parts thereof, or any
other partially submerged objects that pose a substantial hazard to navigation, from
navigable waterways or adjacent public property or private property with the
landowner's consent.
Harbors and Navigation Code, Section 550 (B):
" "Marine Debris" is a vessel or part of a vessel, including a derelict, wreck, hulk, or
part of any ship or other watercraft or dilapidated vessel. That is unseaworthy and not
reasonably fir or capable of being made fit to be used as a means of transportation
by water."
b. The funds provided under this Agreement shall not be utilized for abatement,
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date 12/20/2019 Page: 4 of 37
• O
removal, storage, or disposal of commercial vessels. Commercial vessels include
those vessels for which the most recent registration or documentation was
commercial, even though that registration or documentation may have lapsed.
C. If Grantee is reimbursed for the costs related to the abatement, removal, storage,
and/or disposal of an eligible water hazard by the registered or legal owner or other
person or entity known to have an interest in the water hazard, then the water hazard
shall no longer be eligible for funding under this Agreement. Grantee shall notify
DBW in writing of such reimbursement and shall return all funds disbursed by DBW
to Grantee with respect to such water hazard immediately.
d. Abatement, removal, storage and disposal of eligible surrendered vessels. For
purposes of this Agreement, "surrendered" is defined in Harbors and Navigation
Code section 526.1(a):
e. "'surrendered vessel' means a recreational vessel that the verified titleholder has
willingly surrendered to a willing agency under both of the following conditions:
(1) The public agency has determined in its sole discretion that the vessel is in
danger of being abandoned, and therefore has a likelihood of causing
environmental degradation or becoming a hazard to navigation.
(2) The decision to accept a vessel is based solely on the potential of the
vessel to likely be abandoned and cause environmental degradation or
become a hazard to navigation."
The funds provided under this Agreement shall not be utilized for surrender,
abatement, removal, storage, or disposal of commercial vessels. Commercial vessels
include those vessels for which the most recent registration or documentation was
commercial, even though that registration or documentation may have lapsed.
g. If Grantee is reimbursed for the costs related to the removal, storage, and/or disposal
of a surrendered vessel by the registered or legal owner or other person or entity
known to have an interest in the vessel, then the vessel shall no longer be eligible for
funding under this Agreement. Grantee shall notify DBW in writing of such
reimbursement and shall return all funds disbursed by DBW to Grantee with respect
to such vessel immediately.
3. RIGHT OF INSPECTION
Grantee shall allow DBW and other state agency representatives, at any reasonable time, to
inspect any site where Grantee or its subcontractors are performing work under this
Agreement.
4. ANNUAL MEETING
Grantee's representative or alternate shall participate in an annual one -day video or phone
conference conducted by DBW during the term of this agreement. Should the Grantee or
representative be unable to attend the meeting and cannot provide a substitute from the
agency, the Grantee must forward a letter to DBW stating the reason why they cannot attend.
DBW must grant approval in writing in order for the Grantee not to be in breach of this
Agreement for failure to attend.
5. ACTIVITY/NON ACTIVITY: REPORTING REQUIREMENTS
a. Grantee shall provide quarterly reports to DBW describing the status of existing
Contract p C19SO608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date: 12120/2019 Page' 5 of 37
6-10
issues known, pending, or in progress.
b. Lack of quarterly reporting and/or removal activity within any twelve month period
during the term of this agreement is subject to possible revocation of grant.
6. HAZARDOUS MATERIALS
Grantee shall be responsible for securing any necessary or prudent studies, permits, or
authorizations associated with treatment, removal, storage, or any other handling of
hazardous substances including, but not limited to, toxic waste, petroleum waste, asbestos,
and similar substances, prior to the removal of any vessel and water hazard pursuant to this
Agreement.
Grantee shall be responsible for the proper and lawful handling, abatement, removal,
storage, and/or disposal of any hazardous substances encountered in the execution of this
Agreement.
7. TITLES AND LIENS
a. Abandoned vessels: Grantee shall comply with all relevant provisions of the
Harbors and Navigation Code regarding notices, hearings and liens in the
performance of this Agreement. Grantee (in conjunction with local law enforcement)
shall conduct a title search for all vessels presumed to be abandoned, as provided by
Harbors and Navigation Code section 526.
b. Surrendered vessels: Grantee shall comply with all relevant provisions of Harbors
and Navigation Code section 526.1 in the performance of this Agreement, requiring
that a surrendered vessel be that of the "verified titleholder."
8. MEDIA
Grantee agrees to acknowledge DBW's financial support whenever work funded by this
Agreement is publicized in any news media, brochures, or other type of promotional material.
9. MEDIA MATERIALS RELEASE
Grantee agrees to irrevocably grant to California State Parks, Division of Boating and
Waterways, its employees, officers, agents, and assigns (hereinafter referred to as "DBW"),
the non-exclusive, royalty -free, perpetual and worldwide right and permission to use,
reproduce, publish, copy, distribute, alter, license, adapt, and display the photographs,
motion pictures, caption information, and/or written quotes (hereinafter referred to collectively
as "Photographs"), that the Grantee has submitted to DBW for art, editorial, advertising,
marketing, trade, broadcast, print, educational programs, or any other lawful purpose
whatsoever, in any and all media. In connection with the foregoing license, the Grantee
agrees not to use, reproduce, adapt, or display the Photographs, or allow others to do so, in
a manner that tends to subject DBW or its AWAF, VTIP and/or SAVE programs to ridicule,
disparagement, mockery, satire, or that could tarnish the image of the DBW's AWAF, VTIP,
and/or SAVE programs. Grantee hereby releases and discharges DBW from any and all
claims and demands arising out of or in connection with the use of the Photographs,
including without limitations, any and all claims for libel, defamation, invasion of privacy,
and/or publicity rights. DBW assumes no responsibility for lost or damaged Photographs or
for the use of same. DBW may sell, assign, license, or transfer all rights granted to it
hereunder.
Grantee also grants DBW and its licensees the unrestricted right to use and disclose its
name in connection with use of the Photographs. The Grantee understands that it will not be
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date' 12/20/2019 Page: 6 of 37
6-11
paid for any use or right granted herein.
The Grantee understands and agrees that the Photographs may be used in whole or in part,
at any time. The license granted herein to DBW includes the right and permission to conduct
or have conducted such alterations to the Photographs as DBW deems necessary. Grantee
releases and discharges DBW and agrees to indemnify and hold DBW harmless from any
liability by virtue of any blurring, distortion, alteration, optical illusion or use in composite form,
loss or damage, whether intentional or otherwise, that may occur in the use of the
Photographs. The Grantee waives any right to inspect or approve any finished product,
advertising or other copy that may be used in connection therewith or the use to which it may
be applied.
The Grantee declares and avows that the Photographs it is submitting to DBW are its own
original work in all respects. The Grantee is the sole and exclusive owner of the
Photographs; they are free, clear, and unencumbered. No part of them is taken from or
based on any other work; no part infringes the copyright or any other right of any person; and
the reproduction, publication, exhibition, or any other use by DBW of the Photographs in any
form whatever will not in any way, directly or indirectly, infringe on the rights of any person.
The Grantee agrees to indemnify and hold DBW harmless from and against any and all loss,
damage, costs, charges, legal fees, recoveries, judgments, amounts paid in settlement,
penalties, and expenses that may be obtained against, imposed on, or suffered by DBW by
reason of (1) any violation or infringement of any proprietary right or copyright; or (2) any
libelous or unlawful matter contained in the Photographs. Grantee also agrees to indemnify
and hold DBW harmless for any such amounts arising from its breach of any covenant,
representation, or warranty of this agreement.
10. PERMITS AND DOCUMENTATION
Prior to the removal of any abandoned vessel, eligible water hazard, or surrendered vessel,
the Grantee shall obtain all necessary permits, authorizations, and documentation
necessitated by any applicable provision of law.
11. SECURING OF BIDS
Grantee shall comply with any applicable laws and regulations governing the competitive
bidding process when awarding subcontracts to marine salvage companies under this
Agreement.
12. SUBCONTRACTORS
Grantee agrees that it shall guarantee and shall be responsible for ensuring that any and all
of its contractors and subcontractors holds a valid business license and carries general
commercial liability insurance coverage sufficient to fully insure against any and all risks of
hazardous activities associated with the work to be performed under this Agreement; and
Grantee agrees that if any of Grantee's contractors or subcontractors fail to fulfill any of these
requirements, that Grantee itself carries general commercial liability insurance coverage
sufficient to fully insure against any and all risks of hazardous activities associated with the
work to be performed under this Agreement, whether performed by the Grantee, Grantee's
contractor(s), or Grantee's subcontractor(s). Grantee shall provide DBW with a certificate of
insurance from any contractor(s) and subcontractor(s) prior to the commencement of any
work under this Agreement.
13. TRAFFIC CONTROL AND TRAFFIC SAFETY
The Grantee shall provide for adequate traffic control and safety measures at any site where
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/2012019 Page: 7 of 37
6-12
Grantee and its subcontractors will perform any work under this Agreement.
14. AIR OR WATER POLLUTION VIOLATION
Grantee warrants that it is not (1) in violation of any order or resolution not subject to review
promulgated by the State Air Resources Board or an air pollution control district; (2) subject
to any cease and desist order not subject to review issued pursuant to Water Code section
13301 for violation of waste discharge requirements or discharge prohibitions; or (3) finally
determined to be in violation of provisions of federal law relating to air or water pollution.
15 ENTIRE AGREEMENT
This Agreement consists of the terms of this Agreement and all attachments, which are
expressly incorporated herein. No amendment or variation of the terms of this Agreement
shall be valid unless made in writing, signed by the parties and approved as required.
16. APPROVAL OF AGREEMENT AND AMENDMENTS
This Agreement and any variation thereto is of no force or effect until signed by both parties
and approved by the Department of General Services, if required. Commencement of
performance prior to approval of this Agreement will be at the Grantee's own risk.
17. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PARTICIPATION REQUIREMENT
There are no Disabled Veteran Business Enterprise participation requirements with this
agreement.
18. AUTHORITY TO CONTRACT
Grantee must provide DBW with evidence of its authority to enter into this Agreement.
Grantee may provide a delegation of contracting authority from its local governing body that
by law has authority to contract. Alternatively, Grantee shall provide DBW with a resolution,
order, motion, or ordinance of its local governing body that by law has authority to contract,
authorizing execution of this Agreement.
19. COMPLIANCE WITH LAW AND REGULATIONS
Grantee and its subcontractor(s) shall comply with all applicable laws and regulations of the
State of California for all work to be performed under this Agreement. By signing this
Agreement, Grantee certifies its compliance and the compliance of all subcontractors with:
(a) applicable provisions of the California Environmental Quality Act; (b) Nondiscrimination
Program requirements of Government Code section 12990 (a -f) and Title 2, California Code
of Regulations, section 8103 (and section 8113 in contracts over $5,000) along with section
7285 et. seq. of the Fair Employment and Housing Act; (c) Drug -Free Workplace requirement
of Government Code section 8350 et seq.; (d) National Labor Relations Board Certification of
Public Contract Code section 10296; (e) Workers' Compensation requirement of Labor Code
section 3700; and (f) Americans with Disabilities Act regulations issued pursuant to 42 U.S.C.
section 12101 et seq.
20. INDEPENDENT CONTRACTOR
Grantee and its employees are independent contractors and shall not be considered officers
or employees of DBW or agents of the State of California.
Contract # C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12/2012019 Page: 8 of 37
6-13
21. INSURANCE REQUIREMENTS
The abatement, removal, storage, and /or disposal of vessels under this Agreement is a
hazardous activity. Grantee therefore must maintain commercial general liability insurance in
an amount and of a type acceptable to DBW and to the Department of General Services/
Office of Risk and Insurance Management (GRIM).
GENERAL PROVISIONS APPLYING TO ALL POLICIES
a. Coverage Term
Coverage needs to be in force for the complete term of the Agreement. If
insurance expires during the term of the grant, a new certificate must be
received by the Division at least ten (10) days prior to the expiration of this
insurance. Any new insurance must still comply with the original terms of
the grant.
b. Policy cancellation or termination & notice of non -renewal
Insurance policies shall contain a provision stating coverage will not be
cancelled without 30 days prior written notice to the Division. In the event
Grantee fails to keep in effect at all times the specified insurance coverage,
the Division may, in addition to any other remedies it may have, terminate
this Agreement upon the occurrence of such event, subject to the
provisions of this Agreement.
C. Deductible
Grantee is responsible for any deductible or self-insured retention
contained within their insurance program.
d. Primary clause
Any required insurance contained in this Agreement shall be primary, and
not excess or contributory, to any other insurance carried by the State.
e. Insurance carrier required rating
All insurance companies must carry a rating acceptable to GRIM. If the
Grantee is self-insured for a portion or all of its insurance, review of
financial information including a letter of credit may be required by DBW or
ORIM.
FndompmPnts
Any required endorsements requested by the Division must be physically
attached to all requested certificates of insurance and not substituted by
referring to such coverage on the certificate of insurance.
g. Inadequate Insurance
Inadequate or lack of insurance does not negate the Grantee's obligations
under the Agreement.
h. Use of Subcontractors
In the case of Grantee's utilization of subcontractors to complete the
contracted scope of work, Grantee shall include all subcontractors as
insured's under Grantee's insurance or supply evidence of subcontractor's
insurance to the State when requested equal to policies, coverages, and
Contract # C19SO608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date 12/20/2019 Page: 9 Of 37
WE
limits required of Grantee.
2. INSURANCE REQUIREMENTS
a. Commercial General Liability
The Grantee shall maintain general liability on an occurrence form with
limits of not less than $1,000,000 per occurrence for bodily injury and
property damage liability combined with a $2,000,000 annual policy
aggregate. The policy shall include coverage for liabilities arising out of
premises, operations, independent subcontractors, products, completed
operations, personal and advertising injury, and liability assumed under an
insured contract. This insurance shall apply separately to each insured
against whom claim is made or suit is brought subject to the Grantee's limit
of liability. The policy must include:
"The State of California, its officers, agents, employees and servants as
additional insureds, but only with respect to work performed under the
contract."
This endorsement must be supplied under form acceptable to the Office of
Risk and Insurance Management.
In the case of Grantee's utilization of subcontractors to complete the
contracted scope of work, Grantee shall include all subcontractors as
insured's under Grantee's insurance or supply evidence of insurance to the
State equal to policies, coverages and limits required of Grantee.
b. Automobile Liability
The Grantee shall maintain motor vehicle liability with limits not less than
$1,000,000 combined single limit per accident. Such insurance shall cover
liability arising out of a motor vehicle including owned, hired and non -
owned motor vehicles.
C. Watercraft Liability
The Grantee shall maintain watercraft liability insurance with limits not less
than $1,000,000 combined single limit per accident. Such insurance shall
cover liability arising out of the maintenance and use of any watercraft
(owned, hired or non -owned). The policy must include:
"The State of California, its officers, agents, employees and servants as
additional insureds, but only with respect to work performed that is
connected with or related to the activities contemplated in this Agreement."
This endorsement must be supplied under form acceptable to the Office of
Risk and Insurance Management.
d. Workers Compensation and Employers Liability
The Grantee shall maintain statutory worker's compensation and
employer's liability coverage for all its employees who will be engaged in
the performance of the Agreement. Employer's liability limits of $1,000,000
are required. The insurer waives any right of recovery the insurer may have
against the State because of payments the insurer makes for injury or
damage arising out of the work done under contract with the State. A
Waiver of Subrogation or Right to Recover endorsement in favor of the
Contract K C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date: 12/2012019 Page: 10 of 37
6-15
State must be attached to certificate.
If applicable, Grantee shall provide coverage for all its employees for any
injuries or claims under the U.S. Longshoremen's and Harbor Workers'
Compensation Act, the Jones Act or under laws, regulations, or statutes
applicable to maritime employees. By signing this contract, Grantee
acknowledges compliance with these regulations.
e. Environmental/Pollution Liabil
Grantee shall maintain Pollution Liability for limits not less than $1,000,000
occurrence covering the Grantee's liability for bodily injury, property
damage and environmental damage resulting from pollution and related
cleanup costs incurred arising out of the work or services to be performed
under this contract. The policy must include:
"The State of California, its officers, agents, employees and servants as
additional insureds, but only with respect to work performed under the
contract."
This endorsement must be supplied under form acceptable to the Office of
Risk and Insurance Management.
Coverage shall be provided for both work performed on site and during
transportation as well as proper disposal of hazardous materials.
3. Self -Insurance
If the Grantee is self-insured for a portion or all of its insurance, the Grantee shall
provide evidence of self-insurance when requested by DBW. Review of financial
information including a letter of credit may be required. The Division reserves the
right to request financial information.
4. Statement of Insurance Coverage:
Grantee certifies and agrees that they have all required insurance coverages as
stated in the grant agreement, which will be in effect for the entire term of the
agreement.
Approver initials : Date:
Name:
Title:
22. TERMINATION
a. DBW may terminate this Agreement for any reason upon thirty (30) days written
notice to Grantee.
b. If the Grantee fails to keep the required insurance in effect at all times during the term
of this agreement, DBW may, in addition to other remedies it may have, terminate
this agreement upon two days written notice.
C. DBW may, by two-day written notice to Grantee and without any prejudice to its other
remedies, terminate this agreement because of failure of Grantee to fulfill any of the
requirements of this agreement.
d. Upon receipt of any notice terminating this Agreement, Grantee shall immediately
Contract # C1980608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Dale: 1 212 01201 9 Page: 11 of 37
6-16
discontinue all removal and disposal activities affected, unless the notice directs
otherwise. In such event, DBW shall pay Grantee only for removal and disposal
activities completed prior to the termination date.
e. Upon termination of this agreement, Grantee shall promptly return all advanced
funds. At DBW's sole discretion, DBW may offer an opportunity to cure any breach
prior to terminating for default.
23. ASSIGNMENT
This Agreement is not assignable by the Grantee, either in whole or in part, without the
consent of the State in the form of a formal written amendment_
24. MATCHING 10% REQUIREMENT
a. Section 525(C) of the Harbors and Navigation Code states, "A grant awarded by the
department pursuant to subparagraph (A) shall be matched by a 10 -percent
contribution from the local agency receiving the grant."
b. The 10 -percent contribution is in addition to funds awarded in the grant and may be
made by cash and/or in-kind contributions which may include personnel hours (net
hourly rate only with no benefits included) excessive removal and/or storage fees,
and other expenses with advance DBW approval.
C. If using personnel hours for in-kind match, only net, raw hours will be accepted and
verification of in-kind contribution is required with reimbursement request(s). The
statement of in-kind hours must include:
a. Activity date
b. Vessel/issue name or description
C. Personnel name
d. Description of service provided
e. Number of hours provided by each person
f. Hourly rate and total value
Use the form provided on DBW's website at www.dbw.ca.gov under Grants & Loans,
or the online grant system, OLGA, available on DBW's website.
e. The burden of proof in complying with the 10 -percent contribution requirement is the
responsibility of the grantee. Grant funds will not be disbursed until the grantee has
provided DBW with acceptable documentation that it complied with the 10 -percent
contribution requirement for each disbursement.
25. BUDGET DETAIL AND PAYMENT PROVISIONS
a. Covered Expenses and Reimbursement Claims Processes
DBW will reimburse the Grantee for the following expenditures provided by
Grantee's service providers, contractors and/or subcontractors, within the
scope of the SAVE program for AWAF issues associated with:
i. Raising of submerged vessels and associated hazardous materials
ii. Removal of Recreational Vessels and associated hazardous materials from
navigable waterways or adjacent shorelines
iii. Removal and disposal of hazardous materials from Recreational Vessels
iv, Towing
Contract 9 C 1950608, City of Newpert Beach, surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date: 12!2012019 Page: 12 of 37
6-17
V. Storage:
1) Without lien sale: 60 days maximum
2) With lien sale: 90 days maximum with justification
3) If stored onsite at Grantee's facility, 50% of the normal rate of
charge to the public will be reimbursed, and fee schedule is
required for verification.
Vi. Lien sale expenses: fees charged by lien sale service companies, postage,
DMV fees, and advertising costs
Vii. Public notice advertising
Viii. Vessel appraisal
ix. Salvage and demolition
2. DBW will reimburse the Grantee for the following expenditures provided by Grantee's
Service providers, contractors and/or subcontractors, within the scope of the SAVE
program for VTIP issues:
i. Disposal of Surrendered Recreational Vessels
ii. Removal and Disposal of hazardous materials from Recreational Vessels
iii. Towing of Recreational Vessels from Agency to disposal site
3. Navigational hazard removal and destruction may be considered with advanced
written approval from DBW. Inquire in advance of completing work with
documentation, photos, and narrative as to why the item is a navigational hazard
4. Other items directly related to SAVE activities that could create long-term cost
efficiencies of vessel removal, disposal and turn -in may be considered for
reimbursement with pre -approval in writing from DBW.
b. Reimbursement claim forms:
Forms are available on DBW's website under the Grants & Loans tab under the
appropriate link for SAVE, AWAF and/or VTIP (until further notice, use the SAVE,
AWAF or VTIP reimbursement forms as needed for each specific type of removal):
Grantee must sign and date each reimbursement claim form in blue ink and submit
with the following documents to DBW:
C. Invoices from service providers, contractors and/or subcontractors to Grantee:
Invoices must contain the following:
1. Name and address of Grantee
2. Contract or invoice number
3. Description of service performed
4. Date the service was performed
5. Location of each service
6. Vessel name, CF# or HIN# if available; otherwise, description of vessel
7. Signature confirming the claim is accurate and true under penalty of perjury
d. Proof of payment for all invoices.
The following acceptable forms of proof are:
1. Cancelled check (with bank's cancelled stamp on back of check copy)
2. Credit card statement with charge and payment posted, along with copy of
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12/2012019 Page: 13 of 37
charge slip
3. Invoices from service provider showing zero balance
4. Proof of Accounting Clearing House (ACH) or electronic transfer showing
date, amount and transaction confirmation number.
e. 10% in-kind match contribution statement:
1. If Grantee is matching the 10% requirement with in-kind services, complete
the following form located on DBW's website and submit with each claim:
http://www.dbw.ca.gov/PDF/Funding/DPR265.pdf
2. Net, hourly rates only will be accepted. Grantee must include verification of
net rates with first claim and each time rates are changed.
f. Photos of vessels (Required)
-with CF numbers visible if available
g. (VTIP ONLY) Statement of Vessel Release of Interest and Ownership:
To be completed and signed by owner(s). Grantee may provide their own release
form to vessel owners for completion. A sample of this release form is located on our
website:
http://www.dbw.ca.gov/PDF/Funding/SAMPLE_Release_of Interest_and_Liability_F
orm.pdf
NOTE: (VTIP ONLY) Vessel ownership verification is required; however, it is not
required that boat owners bring their registration up to date in order to
surrender their vessel through the VTIP.
h. Reimbursement claims and support documents (as indicated above) are to be
submitted to DBW at:
Division of Boating and Waterways
One Capitol Mall, Suite 500
Sacramento, CA 95814
Attention: SAVE Unit
i. Submission of fraudulent invoices or other claim documentation is a breach of this
Agreement, which shall result in forfeiture of all funds advanced and provided under
this Agreement.
j. All requests for payment must be submitted to DBW no later than 30 days after the
expiration date of the agreement. DBW is not obligated to make payment on any
reimbursement request(s) received or for any services completed after this date.
Refer to "Fully Executed" letter for additional reimbursement request
requirements.
26. BUDGET CONTINGENCY CLAUSE
A. It is mutually agreed that if the Budget Act of the current year and/or any subsequent
years covered under this Agreement does not appropriate sufficient funds for the
program; this Agreement shall be of no further force and effect. In this event, DBW
shall have no liability to pay any funds whatsoever to Grantee or to furnish any other
considerations under this Agreement and Grantee shall not be obligated to perform
any provisions of this Agreement.
Contract 9 C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12/20/2019 Page: 14 of 37
6-19
B. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of
this program, DBW shall have the option to either cancel this Agreement with no
liability occurring to DBW, or offer an agreement amendment to Grantee to reflect the
reduced amount.
27. INDEMNIFICATION
Grantee shall be responsible for, and DPR shall not be answerable or accountable in any
manner for, any loss or expense by reason of any damage or injury to person or property, or
both, arising out of or related in any way to activities carried out by Grantee, its agents,
officers, contractors, subcontractors and/or employees, under this Agreement Grantee shall
protect, hold harmless, indemnify and defend DPR, its agents, officers, and/or employees
against any and all actions, claims, and damages to persons or property, penalties,
obligations and liabilities that may be asserted or claimed by any person, firm, association,
entity, corporation, political subdivision, or other organization or person arising out of or in
connection with Grantee or Grantee's contractor's or subcontractor's activities hereunder,
whether or not there is concurrent passive negligence on the part of DPR, its agents, officers,
and/or employees.
28. FUNDS ASSIST
a. PROCESS
The Funds Assist process has been developed by DBW as a method for grantees with
excessive, unused funds to assist other participating SAVE agencies in need. Funds Assist is
a voluntary action (by both agencies) until within three (3) months of the expiration date of the
grant at which time it will become a required action of those agencies with remaining grant
balances, at DBW's discretion.
The Funds Assist process works as follows:
1) An introduction is made by DBW between the agency with excessive funds (Agency A)
and the agency in need (Agency B).
2) A deadline shall be imposed by DBW for the work to be completed by Agency B.
3) Agency B pays for all contractor invoices, as is required with the SAVE grant.
4) The 10% required match is the obligation of Agency B and may be met with cash, in-
kind services, or a combination of both.
5) To obtain reimbursement, Agency B will required to supply the following to Agency A:
a. A Tax Identification Form (W-9)
b. All requirements/documents apply as outlined in this agreement under #26
C. A statement on Agency B's letterhead invoicing Agency A for the total
reimbursement request.
d. Copies of completed forms and support documents to DBW for pre -
approval.
6) Agency A completes the following actions:
a. Upon approval by DBW, pay Agency B the invoiced amount within 30 days
and record as a pass-through grant (or use your accounting method
preference).
b. Complete DBW's AWAF and/or VTIP Reimbursement Claim Form and
attach all supporting documents as listed in item b, c & d above, including
the verification of payment to Agency B i.e., cancelled check or statement
Contract k C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date. 12/20/2019 Page: 15 of 37
6-20
from Agency B of payment received.
C. Email the documents to the DBW program administrator for review. Once
reviewed and approved, send finalized claim forms to DBW for payment
processing.
DBW will act as a courtesy liaison between the agencies to ensure (as much as possible)
that documents are correctly processed.
b. INDEMNIFICATION
Grantee and sub grantee (hereafter known an Agency A and Agency B) shall be responsible
for, and DPR shall not be answerable or accountable in any manner for, any loss or expense
by reason of any damage or injury to person or property, or both, arising out of or related in
any way to activities carried out by Agency A and B, its agents, officers, contractors,
subcontractors and/or employees, under this Agreement Agency A and B shall protect, hold
harmless, indemnify and defend DPR, its agents, officers, and/or employees against any and
all actions, claims, and damages to persons or property, penalties, obligations and liabilities
that may be asserted or claimed by any person, firm, association, entity, corporation, political
subdivision, or other organization or person arising out of or in connection with Agency A and
B's contractor's or subcontractor's activities hereunder, whether or not there is concurrent
passive negligence on the part of DPR, its agents, officers, and/or employees.
If Agency B is a recipient of a current SAVE grant, as depleted or with insufficient funds for
removal project, and receives assistance through the Funds Assist process, all provisions of
the SAVE grant applies.
Approver initials: Date:
Name:
Title:
29. 90 -DAY RETURN OF GRANT DOCUMENTS TO DBW
Grant agreements issued to the awarded agency must be completed and returned within 90
days of the date of issuance according to the instructions issued by DBW with the grant
agreement. If extenuating circumstances prevent the ability of the agency to meet this
deadline, approval from DBW must be obtained in writing. DBW retains the right to determine
approval or denial of extensions.
30. ANTI -CORRUPTION
SAVE grantees are required to report to DBW any written, suggested, or verbally implied
cases whereby a contractor, subcontractor or other service provider increases their fee(s) due
to the existence of a Grantee's SAVE grant, or inquires about the amount/balance of a SAVE
grant in order to increase their fee(s), for possible investigation of price gouging. A two year
history of charges applied to work of all known SAVE grant work by that contractor will be
required by DBW for review.
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/20/2019 Page: 16 of 37
6-21
EXHIBIT C
GENERAL TERMS AND CONDITIONS
1. APPROVAL:
This Agreement is of no force or effect until signed by both parties and approved by the
Department of General Services, if required. Grantee may not commence performance until
such approval has been obtained.
2. EFFECTIVE DATE:
Effective date means either the start date or the approval date by the Department of General
Services (DGS), whichever is later. In cases where DGS approval is not required, this
Agreement is of no force or effect until the date of the last DBW signature. No work shall
commence until the effective date.
3. AMENDMENT:
No amendment or variation of the terms of this Agreement shall be valid unless made in
writing, signed by the parties and approved as required. No oral understanding or Agreement
not incorporated in the Agreement is binding on any of the parties.
4. ASSIGNMENT:
This Agreement is not assignable by the Grantee, either in whole or in part, without the
consent of the State in the form of a formal written amendment.
I•�_��1 �l� �
Grantee agrees that the awarding department, the Department of General Services, the
Bureau of State Audits, or their designated representative shall have the right to review and
to copy any records and supporting documentation pertaining to the performance of this
Agreement. Grantee agrees to maintain such records for possible audit for a minimum
of three (3) years after final payment, unless a longer period of records retention is
stipulated. Grantee agrees to allow the auditor(s) access to such records during normal
business hours and to allow interviews of any employees who might reasonably have
information related to such records. Further, Grantee agrees to include a similar right of the
State to audit records and interview staff in any subcontract related to performance of this
Agreement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section
1896).
6. INDEMNIFICATION:
Grantee agrees to indemnify, defend and save harmless the State, its officers, agents and
employees from any and all claims and losses accruing or resulting to any and all
contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation
furnishing or supplying work services, materials, or supplies in connection with the
performance of this Agreement, and from any and all claims and losses accruing or resulting
to any person, firm or corporation who may be injured or damaged by the subcontractor or
Grantee in the performance of this Agreement.
7. DISPUTES:
Grantee shall continue with the responsibilities under this Agreement during any dispute.
8. TERMINATION FOR CAUSE:
The State may terminate this Agreement and be relieved of any payments should the
Grantee fail to perform the requirements of this Agreement at the time and in the manner
Contract # C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12120/2019 Page: 17 of 37
6-22
herein provided. In the event of such termination the State may proceed with the work in any
manner deemed proper by the State. All costs to the State shall be deducted from any sum
due the Grantee under this Agreement and the balance, if any, shall be paid to the Grantee
upon demand.
9. RECYCLING CERTIFICATION:
The Grantee shall certify in writing under penalty of perjury, the minimum, if not exact,
percentage of post consumer material as defined in the Public Contract Code Section 12200,
in products, materials, goods, or supplies offered or sold to the State regardless of whether
the product meets the requirements of Public Contract Code Section 12209. With respect to
printer or duplication cartridges that comply with the requirements of Section 12156(e), the
certification required by this subdivision shall specify that the cartridges so comply (Pub.
Contract Code §12205).
10. NON-DISCRIMINATION CLAUSE:
During the performance of this Agreement, Grantee and its subcontractors shall not
unlawfully discriminate, harass, or allow harassment against any employee or applicant for
employment because of sex, race, color, ancestry, religious creed, national origin, physical
disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age
(over 40), marital status, and denial of family care leave. Grantee and subcontractors shall
insure that the evaluation and treatment of their employees and applicants for employment
are free from such discrimination and harassment. Grantee and subcontractors shall comply
with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a -f) et seq.)
and the applicable regulations promulgated thereunder (California Code of Regulations, Title
2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing
Commission implementing Government Code Section 12990 (a -f), set forth in Chapter 5 of
Division 4 of Title 2 of the California Code of Regulations, are incorporated into this
Agreement by reference and made a part hereof as if set forth in full. Grantee and its
subcontractors shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other Agreement.
Grantee shall include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under the Agreement.
11. CERTIFICATION CLAUSES:
The GRANTEE CERTIFICATION CLAUSES contained in the document CCC 307 are hereby
incorporated by reference and made a part of this Agreement by this reference as if attached
hereto.
12. TIMELINESS:
Time is of the essence in this Agreement.
13. COMPENSATION:
The consideration to be paid Grantee, as provided herein, shall be in compensation for all of
Grantee's expenses incurred in the performance hereof, as outlined in Exhibit B, item #1.
14. GOVERNING LAW:
This Agreement is governed by and shall be interpreted in accordance with the laws of the
State of California.
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date 12/2012019 Page: 18 of 37
6-23
15. ANTITRUST CLAIMS:
The Grantee by signing this agreement hereby certifies that if these services or goods are
obtained by means of a competitive bid, the Grantee shall comply with the requirements of
the Government Codes Sections set out below.
a. The Government Code Chapter on Antitrust claims contains the following definitions:
1) "Public purchase" means a purchase by means of competitive bids of
goods, services, or materials by the State or any of its political subdivisions
or public agencies on whose behalf the Attorney General may bring an
action pursuant to subdivision (c) of
Section 16750 of the Business and Professions Code.
2) "Public purchasing body" means the State or the subdivision or agency
making a public purchase. Government Code Section 4550.
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if
the bid is accepted, it will assign to the purchasing body all rights, title, and interest in
and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of
Part 2 of Division 7 of the Business and Professions Code), arising from purchases of
goods, materials, or services by the bidder for sale to the purchasing body pursuant
to the bid. Such assignment shall be made and become effective at the time the
purchasing body tenders final payment to the bidder. Government Code Section
4552.
C. . If an awarding body or public purchasing body receives, either through judgment or
settlement, a monetary recovery for a cause of action assigned under this chapter,
the assignor shall be entitled to receive reimbursement for actual legal costs incurred
and may, upon demand, recover from the public body any portion of the recovery,
including treble damages, attributable to overcharges that were paid by the assignor
but were not paid by the public body as part of the bid price, less the expenses
incurred in obtaining that portion of the recovery. Government Code Section 4553.
d. Upon demand in writing by the assignor, the assignee shall, within one year from
such demand, reassign the cause of action assigned under this part if the assignor
has been or may have been injured by the violation of law for which the cause of
action arose and (a) the assignee has not been injured thereby, or (b) the assignee
declines to file a court action for the cause of action. See Government Code Section
4554.
16. CHILD SUPPORT COMPLIANCE ACT:
For any Agreement in excess of $100,000, the Grantee acknowledges in accordance with
Public Contract Code 7110, that:
a. The Grantee recognizes the importance of child and family support obligations and
shall fully comply with all applicable state and federal laws relating to child and family
support enforcement, including, but not limited to, disclosure of information and
compliance with earnings assignment orders, as provided in Chapter 8 (commencing
with section 5200) of Part 5 of Division 9 of the Family Code; and
b. The Grantee, to the best of its knowledge is fully complying with the earnings
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12/2012019 Page: 19 of 37
6-24
assignment orders of all employees and is providing the names of all new employees
to the New Hire Registry maintained by the California Employment Development
Department.
17. UNENFORCEABLE PROVISION:
In the event that any provision of this Agreement is unenforceable or held to be
unenforceable, then the parties agree that all other provisions of this Agreement have force
and effect and shall not be affected thereby.
18. PRIORITY HIRING CONSIDERATIONS:
If this Agreement includes services in excess of $200,000, the Grantee shall give priority
consideration in filling vacancies in positions funded by the agreement to qualified recipients
of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract
Code §10353.
19. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING
REQUIREMENTS:
a. If for this Agreement Grantee made a commitment to achieve small business
participation, then Grantee must within 60 days of receiving final payment under this
Agreement (or within such other time period as may be specified elsewhere in this
Agreement) report to the awarding department the actual percentage of small
business participation that was achieved. (Govt. Code § 14841.)
b. If for this Agreement Grantee made a commitment to achieve disabled veteran
business enterprise (DVBE) participation, then Grantee must within 60 days of
receiving final payment under this Agreement (or within such other time period as
may be specified elsewhere in this Agreement) certify in a report to the awarding
department: (1) the total amount the prime Grantee received under the Agreement;
(2) the name and address of the DVBE(s) that participated in the performance of the
Agreement; (3) the amount each DVBE received from the prime Grantee; (4) that all
payments under the Agreement have been made to the DVBE; and (5) the actual
percentage of DVBE participation that was achieved. A person or entity that
knowingly provides false information shall be subject to a civil penalty for each
violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)
20. LOSS LEADER:
If this agreement involves the furnishing of equipment, materials, or supplies then the
following statement is incorporated: It is unlawful for any person engaged in business within
this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of
the Business and Professions Code. (PCC 10344(e).)
Contract ft C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date: 1 2/2 012 01 9 Page: 20 of 37
6-25
EXHIBIT D
CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to
legally bind the prospective Grantee to the clause(s) listed below. This certification is made under the
laws of the State of California.
Grantee Agency Name (Printed)
City of Newport Beach
Federal ID Number
95-6000751
By (Authorized Signature)
Printed Name and Title of Person Signing
Date Executed
Executed in the County of
Orange
GRANTEE CERTIFICATION CLAUSES
1. STATEMENT OF COMPLIANCE:
Grantee has, unless exempted, complied with the nondiscrimination program requirements.
(Gov. Code §12990 (a -f) and CCR, Title 2, Section 8103) (Not applicable to public entities.)
2. DRUG-FREE WORKPLACE REQUIREMENTS:
Grantee will comply with the requirements of the Drug -Free Workplace Act of 1990 and will
provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution,
dispensation, possession or use of a controlled substance is prohibited and
specifying actions to be taken against employees for violations.
b. Establish a Drug -Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance programs;
and,
4) penalties that may be imposed upon employees for drug abuse violations.
C. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of
employment on the Agreement.
Failure to comply with these requirements may result in suspension of payments under the
Agreement or termination of the Agreement or both and Grantee may be ineligible for award
of any future State agreements if the department determines that any of the following has
occurred: the Grantee has made false certification, or violated the certification by failing to
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/20/2019 Page: 21 of 37
6-26
carry out the requirements as noted above. (Gov. Code §8350 et seq.)
3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION:
Grantee certifies that no more than one (1) final unappealable finding of contempt of court by
a Federal court has been issued against Grantee within the immediately preceding two-year
period because of Grantee's failure to comply with an order of a Federal court, which orders
Grantee to comply with an order of the National Labor Relations Board. (Pub. Contract Code
§10296) (Not applicable to public entities.)
4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT:
Grantee hereby certifies that Grantee will comply with the requirements of Section 6072 of
the Business and Professions Code, effective January 1, 2003.
Grantee agrees to make a good faith effort to provide a minimum number of hours of pro
bono legal services during each year of the agreement equal to the lessor of 30 multiplied by
the number of full time attorneys in the firm's offices in the State, with the number of hours
prorated on an actual day basis for any contract period of less than a full year or 10% of its
agreement with the State.
Failure to make a good faith effort may be cause for non -renewal of a state agreement for
legal services, and may be taken into account when determining the award of future
contracts/agreements with the State for legal services.
5. EXPATRIATE CORPORATIONS:
Grantee hereby declares that it is not an expatriate corporation or subsidiary of an expatriate
corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is
eligible to contract with the State of California.
6. SWEATFREE CODE OF CONDUCT:
a. All Grantees contracting for the procurement or laundering of apparel, garments or
corresponding accessories, or the procurement of equipment, materials, or supplies,
other than procurement related to a public works contract, declare under penalty of
perjury that no apparel, garments or corresponding accessories, equipment,
materials, or supplies furnished to the state pursuant to the contract have been
laundered or produced in whole or in part by sweatshop labor, forced labor, convict
labor, indentured labor under penal sanction, abusive forms of child labor or
exploitation of children in sweatshop labor, or with the benefit of sweatshop labor,
forced labor, convict labor, indentured labor under penal sanction, abusive forms of
child labor or exploitation of children in sweatshop labor. The Grantee further
declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct
as set forth on the California Department of Industrial Relations website located at
www.dir.ca.gov, and Public Contract Code Section 6108.
b. The Grantee agrees to cooperate fully in providing reasonable access to the
Grantee's records, documents, agents or employees, or premises if reasonably
required by authorized officials of the contracting agency, the Department of
Industrial Relations, or the Department of Justice to determine the Grantee's
compliance with the requirements under paragraph (a).
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Dale: 12/2012019 Page' 22 of 37
6-27
7. DOMESTIC PARTNERS:
For contracts over $100,000 executed or amended after January 1, 2007, the Grantee
certifies that Grantee is in compliance with Public Contract Code section 10295.3.
Contract # C19S0606, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date: 12/20/2019 Page: 23 of 37
EXHIBIT E
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.
CONFLICT OF INTEREST:
Grantee needs to be aware of the following provisions regarding current or former state
employees. If Grantee has any questions on the status of any person rendering services or
involved with the Agreement, the awarding agency must be contacted immediately for
clarification.
Current State Employees (PCC 10410):
1) No officer or employee shall engage in any employment, activity or enterprise from
which the officer or employee receives compensation or has a financial interest and
which is sponsored or funded by any state agency, unless the employment, activity or
enterprise is required as a condition of regular state employment.
2) No officer or employee shall contract on his or her own behalf as an independent
contractor with any state agency to provide goods or services.
Former State Employees (PCC 10411):
1) For the two-year period from the date he or she left state employment, no former
state officer or employee may enter into a contract in which he or she engaged in any
of the negotiations, transactions, planning, arrangements or any part of the decision-
making process relevant to the contract while employed in any capacity by any state
agency.
2) For the twelve-month period from the date he or she left state employment, no former
state officer or employee may enter into a contract with any state agency if he or she
was employed by that state agency in a policy-making position in the same general
subject area as the proposed contract within the 12 -month period prior to his or her
leaving state service.
If Grantee violates any provisions of above paragraphs, such action by Grantee shall
render this Agreement void. (PCC 10420)
Members of boards and commissions are exempt from this section if they do not
receive payment other than payment of each meeting of the board or commission,
payment for preparatory time and payment for per diem. (PCC 10430 (e))
2. LABOR CODE/WORKERS' COMPENSATION:
Grantee needs to be aware of the provisions which require every employer to be insured
against liability for Worker's Compensation or to undertake self-insurance in accordance with
the provisions, and Grantee affirms to comply with such provisions before commencing the
performance of the work of this Agreement. (Labor Code Section 3700)
3. AMERICANS WITH DISABILITIES ACT:
Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of
1990, which prohibits discrimination on the basis of disability, as well as all applicable
regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12120/2019 Page: 24 of 37
6-29
4. GRANTEE NAME CHANGE:
An amendment is required to change the Grantee's name as listed on this Agreement. Upon
receipt of legal documentation of the name change the State will process the amendment.
Payment of invoices presented with a new name cannot be paid prior to approval of said
amendment. Any changes of the Grantee's representative shall be notified to DBW within 30
days written notice on Grantee's letterhead.
5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting
agencies will be verifying that the Grantee is currently qualified to do business in
California in order to ensure that all obligations due to the state are fulfilled.
b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any
transaction for the purpose of financial or pecuniary gain or profit. Although there are
some statutory exceptions to taxation, rarely will a corporate Grantee performing
within the state not be subject to the franchise tax.
C. Both domestic and foreign corporations (those incorporated outside of California)
must be in good standing in order to be qualified to do business in California.
Agencies will determine whether a corporation is in good standing by calling the
Office of the Secretary of State.
6. RESOLUTION:
A county, city, district, or other local public body must provide the State with a copy of a
resolution, order, motion, or ordinance of the local governing body which by law has authority
to enter into an agreement, authorizing execution of the agreement.
7. AIR OR WATER POLLUTION VIOLATION:
Under the State laws, the Grantee shall not be: (1) in violation of any order or resolution not
subject to review promulgated by the State Air Resources Board or an air pollution control
district; (2) subject to cease and desist order not subject to review issued pursuant to Section
13301 of the Water Code for violation of waste discharge requirements or discharge
prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to
air or water pollution.
8. PAYEE DATA RECORD FORM STD. 204:
This form must be completed by all Grantees that are not another state agency or other
governmental entity.
Contract k C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/2012019 Page: 25 of 37
6-30
EXHIBIT F
Bid/Proposal Attachment regarding the Darfur Contracting Act of 2008
Effective January 1, 2009, all Invitations for Bids (IFB) or Requests for Proposals (RFP) for goods or
services must address the requirements of the Darfur Contracting Act of 2008 (Act). (Public Contract
Code sections 10475, et seq.; Stats. 2008, Ch. 272). The Act was passed by the California
Legislature and signed into law by the Governor to preclude State agencies generally from contracting
with "scrutinized" companies that do business in the African nation of Sudan (of which the Darfur
region is a part), for the reasons described in Public Contract Code section 10475.
A scrutinized company is a company doing business in Sudan as defined in Public Contract Code
section 10476. Scrutinized companies are ineligible to, and cannot, bid on or submit a proposal for a
contract with a State agency for goods or services. (Public Contract Code section 10477(a)).
Therefore, Public Contract Code section 10478 (a) requires a company that currently has (or within
the previous three years has had) business activities or other operations outside of the United States
to certify that it is not a "scrutinized" company when it submits a bid or proposal to a State agency.
(See # 1 on the sample Attachment).
A scrutinized company may still, however, submit a bid or proposal for a contract with a State agency
for goods or services if the company first obtains permission from the Department of General Services
(DGS) according to the criteria set forth in Public Contract Code section 10477(b). (See # 2 on the
sample Attachment).
The following sample Attachment may be included in an IFB or RFP to satisfy the Act's certification
requirements of bidders and proposers.
Contract # C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Dale: 12/2012019 Page: 26 of 37
6-31
EXHIBIT F — DARFUR CONTRACTING ACT
Pursuant to Public Contract Code section 10478, if a bidder or proposer currently or within the
previous three years has had business activities or other operations outside of the United States, it
must certify that it is not a "scrutinized" company as defined in Public Contract Code section 10476.
Therefore, to be eligible to submit a bid or proposal, please complete only one of the following
three paragraphs (via initials for Paragraph # 1 or Paragraph # 2, or via initials and certification
for Paragraph # 3): YOUR BID OR PROPOSAL WILL BE DISQUALIFIED UNLESS YOUR BID OR
PROPOSAL INCLUDES THIS FORM WITH EITHER PARAGRAPH #1 OR #2 INITIALED OR
PARAGRAPH #3 INITIALED AND CERTIFIED.
We do not currently have, or we have not had within the previous three years, business
activities or other operations outside of the United States.
OR
2. We are a scrutinized company as defined in Public Contract Code section 10476, but we
have received written permission from the Department of General Services (DGS) to submit
a bid or proposal pursuant to Public Contract Code section 10477(b). A copy of the written
permission from DGS is included with our bid or proposal.
OR
3. We currently have, or we have had within the previous three years, business activities or
other operations outside of the United States, but we certify below that we are not a
scrutinized company as defined in Public Contract Code section 10476.
CERTIFICATION For # 3.
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to
legally bind the prospective proposer/bidder to the clause listed above in # 3. This certification is
made under the laws of the State of California.
Grantee Agency Name (Printed)
City of Newport Beach
Federal ID Number
95-6000751
By (Authorized Signature)
Printed Name and Title of Person Signing
Date Executed
Executed in the County of
Orange
YOUR BID OR PROPOSAL WILL BE DISQUALIFIED UNLESS YOUR BID OR PROPOSAL
INCLUDES THIS FORM WITH EITHER PARAGRAPH #1 OR #2 INITIALED OR PARAGRAPH #3
INITIALED AND CERTIFIED
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date 12/2012019 Page: 27 of 37
6-32
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
General
1 Applicant Information
a. Applicant Name City of Newport Beach
b. Organizational Unit
c. Address 100 Civic Center Drive
d. Address 2
e. City Newport Beach State CA Zip 92660
f. Federal ID Number 95-6000751 Reference No.
g. Agency Type
co City
r Federally or State Recognized Native American Tribe
2 Project Information
r County
f District
a. Project Name Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year
2019/2020
b. Is implementing agency same as Applicant re Yes r No
c. Implementing Agency Name
d. Project Start Date Oct -01-2019 End Date Sep -30-2021
e. Amount of Funds Requested $175,000.00 Project Cost $192,500.00
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12/2012019 Page: 28 of 37
6-33
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
3 Contacts
a. Project Administrator
Name
Melanie Franceschini
Title
Administrative Analyst
Mailing Address
100 Civic Center Drive
City
Newport Beach State CA Zip 92660
Telephone
(949)644-3028 Fax
E-mail Address
mfranceschini@newportbeachca.gov
b. Project Administrator
Name Kurt Borsting
Title Harbormaster
Mailing Address 1600 W. Balboa Boulevard
City Newport Beach State CA Zip 92663
Telephone (949)270-8158 Fax
E-mail Address kborsting@newportbeachca.gov
Contract 9 C19S0608, City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date 12/2012019 Page: 29 of 37
6-34
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
Agency Type and Area of Responsibility (AOR)
Newport Harbor is one of the largest, small craft recreational harbors on the California Coast. Home to
approximately 4,500 vessels, Newport Harbor is a welcome port to many boaters as they cruise the Pacific or travel
within their home waters. The City of Newport Beach (City) manages many of the visitor -serving amenities within the
harbor. The goal of the City's Harbor Department is to provide information and services to harbor users whether
they are boating visitors, anchor their vessel year round or call the harbor home. The City also encourages public
access to the water, providing and maintaining slips and moorings available to rent for guests and locals alike. The
City operates five public pump outs, two marinas and twelve public docks. However, with the accessibility to these
public recreational amenities also comes abandonment, illegal berthing and derelict vessels. The City works with
vessel owners encouraging them to maintain their vessels in a seaworthy and operable manner. However, legal
action is sometimes required to handle impounds, liens, junking and demolition of vessels. Historically, the City has
assisted boaters in Newport Harbor, nearby harbors and even those with trailered boats, with the process of turning
in derelict vessels and removing those that inhibit the enjoyment and safety of harbor waters.
2. Statement of Need
The City has demonstrated both the need to remediate problem vessels through Abandoned Watercraft Abatement
Fund (AWAF), as well as the ability to assist boaters with Vessel Tum in Program (VTIP). The City was the recipient
of the SAVE 2017118 grant and is close to exhausting all funds. With the help of the SAVE grant during this most
recent cycle, the City was able to remove and demolish more than 25 vessels. In addition, through the City's Code
Enforcement efforts approximately 200 cases were managed associated with the vessels that were either
inoperable, unseaworthy or in some state of disrepair. Of those cases, approximately 30 could have resulted in
abandonment if not for the efforts of the City to work to have the vessel owner remediate their condition.
Interested parties from all over the county continue to inquire as to how the City's grant funding can be used to
assist them. We currently have a VTIP waitlist of 12 vessels, in addition to 16 other vessels owners that have
expressed interest of adding their boats to the list.
The City of Newport Beach works to address abandoned watercraft in Newport Harbor. Duties to mitigate vessels
include:
• Regular and focused communication with vessel owners;
• Relocation of problem vessels;
• Pumping out vessels that have taken on water;
• Processing DMV paperwork for liens, junking, etc.; and
• Coordination with local marine contractors and shipyards to relocate vessels for haul -out and demolition
a. List of ADV's/VTIP vessels
List of current Abandon Derelict Vessels (ADV)1VTIP vessels and estimate of cost to remove them.
ADV I VTIP
Estimated Cost
Current ADV's 15 ea
44,130
Current VTIP 7 ea
23,200
Estimate of ADV's
46,335
Estimate of VTIP
61,335
TOTAL
175,000
Contract tt C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12/2012019 Page: 30 of 37
6-35
2.
3.
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
California State Senate Districts
Select one or more of the California State Senate Districts where the proposed project activities will occur. Copy
and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your browser
to determine the State Senate district(s).
r State Senate 01 r State Senate 02 r State Senate 03 r State Senate 04 r State Senate 05
r State Senate 06
r State Senate 07
r State Senate 08
r State Senate 09
r State Senate 10
r State Senate 11
r State Senate 12
r State Senate 13
r State Senate 14
r State Senate 15
r State Senate 16
r State Senate 17
r State Senate 18
r State Senate 19
r State Senate 20
r State Senate 21
r State Senate 22
r State Senate 23
r State Senate 24
r State Senate 25
F State Senate 26
r State Senate 27
r State Senate 28
r State Senate 29
r State Senate 30
r State Senate 31
r State Senate 32
r State Senate 33
r State Senate 34
r State Senate 35
r State Senate 36
{✓ State Senate 37
r State Senate 38
r State Senate 39
r State Senate 40
California State Assembly Districts
Select one or more of the California State Assembly Districts where the proposed project activities will occur.
Copy and Paste the URL (http://www.legislature.ca.gov/legislators_and_districts/districts/districts.html) in your
browser to determine the State Assembly district(s).
I- State Assembly 01
r State Assembly 05
r State Assembly 09
r State Assembly 13
r State Assembly 17
r State Assembly 21
r State Assembly 25
r State Assembly 29
r State Assembly 33
r State Assembly 37
r State Assembly 41
r State Assembly 45
r State Assembly 49
r State Assembly 53
r State Assembly 57
r State Assembly 61
r State Assembly 65
r State Assembly 69
I- State Assembly 73
r State Assembly 77
r State Assembly 02
r State Assembly 06
r State Assembly 10
r State Assembly 14
r State Assembly 18
r State Assembly 22
I- State Assembly 26
r State Assembly 30
r State Assembly 34
r State Assembly 38
r State Assembly 42
r State Assembly 46
r State Assembly 50
r State Assembly 54
r State Assembly 58
r State Assembly 62
r State Assembly 66
r State Assembly 70
P— State Assembly 74
r State Assembly 78
California Congressional Districts
r State Assembly 03
r State Assembly 07
r State Assembly 11
r State Assembly 15
r State Assembly 19
r State Assembly 23
r State Assembly 27
r State Assembly 31
r State Assembly 35
r State Assembly 39
r State Assembly 43
r State Assembly 47
r State Assembly 51
I- State Assembly 55
r State Assembly 59
r State Assembly 63
r State Assembly 67
r State Assembly 71
F State Assembly 75
I- State Assembly 79
F State Assembly 04
F State Assembly 08
r State Assembly 12
r State Assembly 16
F State Assembly 20
F State Assembly 24
r State Assembly 28
r State Assembly 32
F State Assembly 36
r State Assembly 40
F State Assembly 44
r State Assembly 48
r State Assembly 52
r State Assembly 56
r State Assembly 60
r State Assembly 64
F State Assembly 68
r State Assembly 72
I- State Assembly 76
r State Assembly 80
Select one or more of the California Congressional Districts where the proposed project activities will occur.
Copy and Paste the URL (https://www.govtrack.us/congress/members/CA) in your browser to determine the
Congressional district(s).
r Congressional District 1
r Congressional District 4
r Congressional District 7
r Congressional District 10
r Congressional District 13
r Congressional District 16
r Congressional District 19
r Congressional District 2
r Congressional District 5
F Congressional District 8
r Congressional District 11
r Congressional District 14
r Congressional District 17
r Congressional District 20
r Congressional District 3
F Congressional District 6
r Congressional District 9
I- Congressional District 12
r Congressional District 15
r Congressional District 18
r Congressional District 21
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020, Date: 12/20/2019 Page: 31 of 37
0
4.
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
r Congressional District 22
r Congressional District 25
f— District 28
I- Congressional District 31
r Congressional District 34
r Congressional District 37
r Congressional District 40
I- Congressional District 43
r Congressional District 46
r Congressional District 49
r Congressional District 52
f— Congressional District 23
r Congressional District 26
r Congressional District 29
F- Congressional District 32
r Congressional District 35
r Congressional District 38
r Congressional District 41
r Congressional District 44
r Congressional District 47
r Congressional District 50
r Congressional District 53
r Congressional District 24
r Congressional District 27
r Congressional District 30
r Congressional District 33
F Congressional District 36
r Congressional District 39
F Congressional District 42
r Congressional District 45
r Congressional District 48
r Congressional District 51
County
Select one or more of the California Counties where the
proposed project activities will occur.
I- Alameda
r Alpine
r Amador
r Butte
r Calaveras
r Colusa
r Contra Costa
r Del Norte
r EI Dorado
r Fresno
r— Glenn
r Humboldt
r Imperial
r Inyo
r Kern
r Kings
r Lake
r Lassen
r Los Angeles
r Madera
r Marin
r Mariposa
r Mendocino
r Merced
r Modoc
r Mono
r Monterey
r Napa
r Nevada
r Orange
r Placer
r Plumas
r Riverside
r Sacramento
r San Benito
r San
Bernardino
r San Diego
r San Francisco
r San Joaquin
r San Luis
r San Mateo
r Santa Barbara
Obispo
r Santa Clara
r Santa Cruz
r Shasta
r Sierra
r Siskiyou
r Solano
r Sonoma
r Stanislaus
r Sutter
r Tehama
r Trinity
r Tulare
rTuolumne
r Ventura
r Yolo
r Yuba
Contract # C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2019/2020. Date: 12120/2019 Page: 32 of 37
6-37
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
1. Legal authority to remove abandoned vessels
The City of Newport Beach is the lead agency in Newport Harbor, according to State of California Tidelands Grant
Section 1, Chapter 74, Statutes of 1978, and partners with the Orange County Sheriffs Department to enforce
boating safety. The O.C. Sheriffs Department Harbor Patrol has jurisdiction in Newport Harbor according to Harbors
and Navigation Code 510.
2. Agency Experience
As one of the largest small craft recreational harbors on the west coast, Newport Harbor welcomes and serves
transient and local boaters alike. However, over the years, some boaters have found themselves financially unable
to maintain their vessels, opting to turn in their vessel or simply letting the vessel become derelict and/or
abandoned. Transient boaters frequently abandon vessels in Newport Harbor with the idea that the local agencies
will remediate the blight.
The City of Newport Beach has previously received funding for VTIP and AWAF through multiple grant cycles. In FY
2014-2016, the City received $125,700. In FY 2017 - 2019, the City received $125,000 in SAVE Grant aid. Apart
from serving the needs of the Newport Harbor, the City works with the County of Orange to abate vessels from
coastal waterways and receive tum -ins from the local inland areas and other counties. The City is seeking an
increase in funds in order to further assist the many boat owners who are unable to financially maintain their boats
and are currently on a waitlist for VTIP. Current remaining SAVE Grant funds only suffice for at risk Abandoned and
Derelict Vessels (ADV) that have the potential to sink and are currently occupying space on City moorings and dingy
racks, inhibiting further public use of moorings and dingy racks.
City of Newport Beach staff has extensive experience working with boaters as they request assistance turning in
vessels. Due to the cost of hauling out and maintenance, some boaters resort to abandoning their vessels. In those
cases, the City of Newport Beach takes action to relocate, investigate the case and ultimately demolish the vessels.
The current SAVE agreement between the City and the State is nearly exhausted. At this time, there are
approximately 10 impounded and abandoned boats that the City will demolish pending a new grant agreement. In
addition, there are numerous parties on waitlist who have expressed interest in taking advantage of the VTIP
program should the City receive additional funding.
3 a. Adjudication Procedures - Identifying ADV's
The City of Newport Beach's Harbor Department along with the OC Sheriffs Department Harbor Patrol work to
identify problem vessels and make contact with the vessel owners. Staff will determine whether the vessel can be
brought into compliance and vessel owners are encouraged to work on their vessels. Other vessels that are
inoperable and not seaworthy are also solicited for the VTIP program.
City Harbor Department staff patrol the waters of Newport Harbor and identify vessel condition and ownership. The
City Harbor Department staff enforce Newport Beach Municipal Code Chapter 17, also known as the Harbor Code.
Since using the SAVE grant, the intensity of abandoned vessels have decreased due to the VTIP option. Staff
encourages owners of derelict and neglected vessels to turn in their vessels, and make the process as easy as
possible for those owners. However, there are instances when vessels are abandoned in the public anchorage,
piers and mooring fields.
3 b. Adjudication Procedures - Removal Process
Large vessels that are abandoned or impounded are secured and locked to an offshore mooring. Small crafts are
hauled into dry storage. Staff attempts notification to the last owner for all vessels with identification markings (CF
Numbers or federal registration), especially those valued over $1,500. Small crafts such as dinghies, rowboats,
kayaks and other non -registered craft are auctioned to the public on a regular basis.
3 c. Adjudication Procedures - Lien proceedures
The City follows a multi -step adjudication process. The process begins by requesting vessel information from the
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020. Date: 12/20/2019 Page: 33 of 37
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
Police Department's DMV information log, in attempts to identify the registered owner of the vessel. Once the City
obtains the registered owner's name and address, the City notifies the owner, via certified mail, that their vessel has
been impounded due to code enforcement violations or for abandonment. After at least 30 days and up to 90 days,
if the registered owner has not contacted the City, the vessel is prepared for a lien sale. For vessels with a value
over $1,500, the City submits a DMV Application for Lien Sale Authorization. In addition, the City notified the owner
and any interested parties of a pending Lien Sale, in addition to outlining how the vessel may be claimed before the
auction. The City then advertises the upcoming auction on the City's website and in local newspapers. On the
auction date, if the vessel is sold, the City holds the property for 10 days before releasing it to the buyer. If the
vessel is not sold, then bids are collected from our contractors for its destruction and removal.
3 d. Adjudication Procedures - Destruction of Vessels
The City's grant funding is used specifically for the destruction and removal of larger vessels that are costly and
have had DMV or USCG documentation records. Following the auction, if a vessel is not sold and has a clear title.
the City requests bids from qualified contractors for the vessel's destruction. The City then moves forward with the
lowest qualifying bid and authorizes the destruction.
4 a. Vessel Registration
Does your agency regularly check vessels in your AOR for current registrations? (? Yes r No
4 b. Agency prevention efforts of abandoned vessels
The City of Newport Beach Harbor Department staff works with the boating community to keep vessels seaworthy
and operable. Harbor Department staff conducts patrols of the offshore mooring field, anchorage, public piers and
marinas, actively inspecting vessel conditions. Staff investigates reports of distressed vessels and when issues of
concern are discovered, they make contact with owner on record. All mooring permittees are required to submit
proof of vessel insurance. All short-term mooring renters and marina slip tenants are also required to demonstrate
proof of insurance. Annually, mooring live-aboards are required to demonstrate vessel operability and
seaworthiness, as well as showing that the holding tank is in good working order and free of leaks. The Newport
Beach Harbor Commission supports staff in the identification and remediation of problem vessels.
Contract k C19S0608. City of Newport Beach. Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date. 12/2012019 Page: 34 of 37
6-39
EXHIBIT G - Grant Application Letter of Intent, Scope of Work and Work Plan
3. Application Questionnaire
1. Does your agency have an active local enforcement program tasked with {; Yes r No
addressing abandoned vessels in your jurisdiction?
If yes, explain in detail. If no, elaborate on
City Harbor Department staff works with the City Code
your agency's efforts to create a program
Enforcement staff to identify vessels that may be a potential or
or if you utilize enforcement services from
existing problem. Owners are notified to bring vessels into
another agency and how.
compliance or utilize VTIP. Owners may be issued a Notice of
Violation if they fail to bring vessels into compliance. Other
77paf5_
vessels that are abandoned or have no identifiable owner are
put in line for AWAF. Vessel condition is taken into
t e image
Ma�r f—
consideration when prioritizing enforcement and use of SAVE
funds for demolition. Those vessels at risk of sinking or which
represent other hazardous conditions are always given priority.
2. Does your agency have a submerged navigational hazard abatement pian {: Yes r No
(SNHAP)? This may include: 1) An established internal process outlining
procedures to prevent, mitigate and process abandoned vessels; 2) Bylaws,
regulations, or ordinances that help prevent or mitigate abandoned vessels.
3
4
If Yes, provide plan documentation. Upload Submerged Navigational Hazard Abatement Plan (SNHAP)
documents here.
SNHAP Documentation Title
Attachment
City of Newport Beach Municipal Code - Harbor
22550_0_NB Municipal Code
le
If No, explain your agency's efforts to
create a SNHAP and anticipated date of
effect.
List by name and size the bodies of water or waterways in your agency's area of responsibility. If you wish
to add maps or photos, please click on the BLUE arrow below to upload.
Name
Size
Attachment
Newport Harbor Resources Map
800 Acres
22555 0 MAP
I.Rdt
Newport Harbor Main Map
1—Map
77paf5_
Newport Harbor Satellite Image
22555_2_Satel
t e image
Ma�r f—
To provide additional information, please click on the Blue
Arrow to add an attachment
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 2 01 91202 0, Date: 1212012019 Page: 35 of 37
•w/
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
Outreach / Advertising plan for implementing and ! or increase the Vessel Turn -In Program
The Newport Beach City Council and Harbor Commission have an active interest in the condition of
vessels in Newport Harbor. Staff regularly reports to Council and Commission on the progress or
remediating derelict vessels from the Harbor and those either trailered or towed for disposal. Interested
parties contact staff directly, The DBW SAVE Grant webpage directs people to contact the City on the
webpage. In the coming year, along with additional funding, the City would like to set aside a portion of the
SAVE Grant to specifically service VTIP vessels. The City has prepared a webpage and flyers for further
outreach. The City will also order VTIP flyers from the Division of Boating and Waterways.
Newport Harbor is home to 1,200 moorings, 1,200 residential piers, dry storage and 60 marinas. There is
a need in Newport Harbor to assist with a deteriorating and aging boating community. Removing problem
vessels clears the mooring field, marinas and docks, creating more open space for recreation and
providing more availability for new boaters to store vessels in Newport harbor. The City certainly works to
remediate issues specific to Newport Harbor, yet accepts vessels from the surrounding area. City staff
understands that the grant funding should not only be used in our Harbor, but also assist the boating
community in our county's region, as a whole.
Attachments:
2. Administrative Information
Screenshot of Unpublished VTIP Webpage
DRAFT City VTIP Flyer
Please state if you will accept surrendered vessels only within Area of Responsibility (AOR) or if you will
accept outside Area of Responsibility requests
r Within AOR r Within and Outside
AOR
2. Identify schedule for accepting surrendered vessels
r Daily f -Weekly r Monthly We As Needed
3. Location where vessels will be accepted
r Agency Office (' Local Landfill r Pickup by Agency or r As Needed [Agency
Salvager Office/Pickup by
Agency or Salvager]
4. Storage area: Does your agency have a storage area for surrendered (: Yes f No
vessels pending destruction?
If Yes, identify the type of storage area
r Water r Land
Contract # C19S0608, City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVES Fiscal Year 201912020, Dare: 12/2012019 Page: 36 of 37
6-41
EXHIBIT G - Grant Application: Letter of Intent, Scope of Work and Work Plan
1. Applicant Certification
Per Harbors and Navigation Code 525 (C) 'A grant awarded by the department pursuant to subparagraph (A)
shall be matched by a 10% contribution from the local agency receiving the grant." This matching fund may be
rendered in cash, or through in-kind contributions which must be verified, and are at the discretion of DBW.
These contributions may include (but are not limited to) the following: administrative costs, personnel hours.
removal. and/or storage.
Grant monies WILL NOT be reimbursed by DBW unless 10% of each reimbursement claim is met.
a• Under penalty of perjury, I certify that I have examined this application and the document(s), proposal(s),
and statement(s) submitted in conjunction herewith, and that to the best of my information and belief, the
information contained herein is true, accurate, correct, and complete.
b• f1_ I certify that I am the person authorized to submit this application on behalf of the applicant.
Prepared by: Name: Melanie Franceschini Date: 04/1212019
Reviewed by: Name: Kurt Borsting Date: 04/1212019
Approving Officer: Name: Carol Jacobs Date: 04/12/2019
Contract # C19S0608. City of Newport Beach, Surrendered and Abandoned Vessel Exchange (SAVE) Fiscal Year 201912020, Date: 12120/2019 Page: 37 of 37
6-42
SEW PART
City of Newport Beach
�r
r BUDGET AMENDMENT
CgQF0f9k 2019-20
Department: Harbor
Requestor: Melanie Franceschini
❑ CITY MANAGER'S APPROVAL ONLY
❑' COUNCIL APPROVAL REQUIRED
ONE TIME: QYes ❑No
Clerk:
BA#: 20-028
ATTACHMENT B
Date ) — R' —
Date
EXPLANATION FOR REQUEST:
o increase revenue estimates and expenditure appropriations from the approval and acceptance of the State of []from existing budget appropriations
,alifornia's Division of Boating and Waterways SAVE Grant. QFrom additional estimated revenues
❑From unappropriated fund balance
1 EX
ES
Subtotal; $175,000.00
Fund # Object Description Increase or (Decrease) $
Subtotal
No Change In Fund Balance
6-43