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Home My WebLink About16 - Oil Spill Settlement ProceedsITEM 16 NEWPORT BEACH CITY COUNCIL November 22, 1999 Regular Meeting TO: Members of the Newport Beach City Council FROM: Homer L. Bludau, City Manager SUBJECT: Project Prioritization for Oil Spill Settlement Proceeds RECOMMENDED ACTION: Authorize Council Member Jan Debay (as the City's representative to the American Trader Oil Spill's Trustees Council) to advocate for the list of recreation projects listed in Attachment A. EXECUTIVE On November 29th, 1999 the Trustees who successfully litigated for damages SUMMARY: after the February 7,1990 American Trader Oil Spill will meet to discuss the distribution and use of settlement proceeds resulting from the lawsuit. Council Member Debay will represent the City as a Trustee. Each plaintiff in the lawsuit- including the City, Huntington Beach, the County, State Parks and Recreation and State Fish and Game -will present a list of projects to be funded by the proceeds. The Trustees Council -a group consisting of each of the plaintiffs plus a representative from the State Lands Commission -- will then review and approve the most meritorious projects for funding. This Agenda Item asks for the Council's authorization to have Council Member Debay advocate before the Trustees Council for the proposed projects (listed in priority order in Attachment A). BACKGROUND: On February 7,1990, the American Trader oil tanker was carrying British Petroleum crude oil from the Alaska Pipeline. When the American Trader attempted to offload its oil at the Goldenwest Terminal off the coast of Huntington Beach, the tanker landed on its own anchor. It punctured its hull, spilling over 400,000 gallons of oil. The spill contaminated miles of beaches, killed or injured birds and other wildlife, and damaged the coastal recreational resources by impairing the public's right to enjoy the beach. Beaches in Newport Beach and Huntington Beach were closed for over two months. Plaintiffs Following the spill, the County of Orange, the State Departments of Fish & Game and Parks & Recreation, the California Regional Water Quality Control Board (Santa Ana Region) and the cities of Huntington Beach and Newport Beach filed a lawsuit against British Petroleum, Goldenwest Refinery, Attransco and the Trans Alaska Pipeline Fund. All the defendants except Attransco settled. Newport Beach City Council Page 2 BACKGROUND: When the lawsuit against Attransco went to trial in December 1997, the jury (cont'd) returned a verdict of over $18 million dollars. Attransco appealed. In August 1999 the parties settled the appeal for $16 million dollars. Trustees Council Under the terms of a 1994 Memorandum of Understanding (MOU), the Plaintiffs agreed to form a Trustees Council to pursue the litigation. The Plaintiffs agreed that the Trustees Council's decision - making deliberations would "focus on the Government's mutual purposes of assessing natural resource damages and restoring injured resources and foregone services rather than on control or respective Trusteeship over those resources." According to the MOU, the decisions of the Trustees Council must be unanimous. Toward that end, the Trustees agreed to apportion the proceeds remaining after litigation costs among themselves for projects related to beach recreation by using the following criteria for distribution: Criteria far Proceed Proceed Distribution Criteria Distribution 1. Quantity of Benefit - what's the total amount of benefit that the public will receive from the project? 2. Quality of Benefit -what is the quality of services or benefit provided by the project? 3. Connection to Services Lost -how does the proposed project connect to the recreation benefits lost by the public during the spill? 4. Feasibility and Certainty of Benefits -what is the technical and political feasibility of the proposed project? 5. Timeliness of Providing Benefits -the sooner the benefits are provided, the higher the score. 6. Comprehensive Package of Services -what is the extent to which the proposed project contributes to a more comprehensive array of services? 7. Cost - Effectiveness -what is the relationship between the services or benefits provided by the project and the total cost of the project? 8. Accuracy of Cost Estimate -how valid is the cost estimated for the proposed project? 9. Multiple Services and recipients -the greater the number of types of benefits provided by a proposed use and the greater the number of groups or segments of the public that receive the benefits the higher the score for this criteria. 10. Opportunities for Collaboration -what is the potential for receiving matching funds, in -kind services or volunteerism to extend or enhance the project benefits? 11. Consistency with Plans and Laws -is the proposed project consistent with local land use plans and zoning laws? 12. Documenting the Benefit to the Public -can the City document receipt or delivery of the benefits to the public as a result of the project? The Trustees Council will meet to distribute the available proceeds on Monday, November 29, 1999. 0 Page 3 • BACKGROUND: In preparation for the November 29 meeting, City staff -- using the criteria (cont'd) listed above and including the City Manager, the City Attorney, Fire and Marine, General Services, and the Public Works departments -have met and proposed the list shown in Attachment A as the City of Newport Beach's proposed project list for the panel. The projects are listed in Attachment A in priority order. If the Council approves this item, it will give Council Member Debay authorization to advocate for the list of projects on the City's behalf at the November 29,1999 meeting of the Trustees Council. ATTACHMENT: Attachment A -- Proposed Projects (in priority order) E Attachment A AMERICAN TRADER OIL SPILL SETTLEMENT Projects Submitted to Trustees Council by the City of Newport Beach Approved by the Newport Beach City Council on November 22, 1999 #1 PIER REHABILITATION ( BALBOA PIER) -A replacement of the concrete decking and handrail for the length of the pier. Includes relocation of electrical service, installation of fire protection system, replacement of fish cleaning facilities, drinking fountains, benches, signage, and communication conduit. Project life = 40+ years. #2 PIER REHABILITATION (NEWPORT PIER) -- A replacement of the concrete decking and handrail for the entire length of the pier. Includes relocation of electrical service, repair of fire protection system, fish cleaning facilities, drinking fountains, benches, signage, and communication conduit. Project life = 40+ years. #3 OCEAN SAFETY OPERATIONS IMPROVEMENTS - Restore rock revetment and timber groin wall in front of Lifeguard Headquarters. Reconfigure the communication and observation area to improve beach visibility and response to beach users needs. Install video observation system to monitor remote areas of the beach from the HQ as well as transmit beach conditions via the Internet. Install incident and resource management system. #4 RESTROOM REHABILITATION - Rehabilitate five restroom facilities serving beach users at the following locations: Balboa Pier, 15th Street, Newport Pier, 58th Street and Orange Street. Includes new fixtures, exterior showers, interior and exterior refurbishment and . improved access. #5 OCEAN FRONT SIDEWALK & STREET LIGHT REPLACEMENT - Replace segments of Oceanfront Walk with new concrete sidewalk. Replace deteriorated street lights with new lights and multiple circuit system. Project life = 50+ years. #6 CORONA DEL MAR STATE BEACH - CONCESSION AREA & RESTROOM REHABILITATION - Remodel the beach concession and restroom building to replace deteriorated structural members, fixtures and pathways. Expand concession building with lifeguard substation - substation would house a one - vehicle garage, elevated office and observation area, and first -aid station. Install new floor surface and fixture in the Buck Gully restroom. Rehabilitate shade structures at Little Corona. Improve beach access protection at Little Corona tidepools. #7 REPLACEMENT OF BALBOA PENINSULA BEACH ACCESS WALKWAYS - Replace 12 deteriorated concrete access walkways with new asphalt walkways. Includes new bike racks at ocean end of walkways. Project life = 25+ years. #8 THIRD OCEAN RESCUE BOAT -City requires one additional surf rescue vessel to ensure continuous operations during peak use times. #9 THIRD VACTOR -City is challenged to meet NPDES requirements for cleaning of storm drain catch basins. Additional vactor would allow more frequent cleaning of basins and may avoid future beach closures due to urban runoff. #10 MARINE EDUCATIONAL FACILITY -City has begun discussions with State Fish and Game to consolidate buildings at Shellmaker Island into a marine laboratory and educational facility to teach Orange County students about tidepools, estuarine environments, near -shore wildlife, and the impacts of urban runoff. Newport Beach City Council