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HomeMy WebLinkAboutTidelands Management Committee Agenda - May 9, 2016CITY OF NEWPORT BEACH TIDELANDS MANAGEMENT COMMITTEE AGENDA Civic Center Community Room - 100 Civic Center Drive, Newport Beach Monday, May 9, 2016 - 4:00 PM Tidelands Management Committee Members: Council Members: Ed Selich – Chair Tony Petros Duffy Duffield Citizens Advisory Panel: Linda Beimfohr Paul Blank John Corrough Jamshed Dastur John Keating Dan Mariscal Don Lawrenz Staff Members: Dave Kiff Michael Torres Chris Miller Shannon Levin The Tidelands Management Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Tidelands Management Committee agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within the subject matter jurisdiction of the Tidelands Management Committee. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. The City of Newport Beach’s goal is to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, we will attempt to accommodate you in every reasonable manner. Please contact Shirley Oborny, Executive Assistant to the City Manager, at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3001 or soborny@newportbeachca.gov. NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the City Manager’s Office 24 hours prior to the scheduled meeting. 1)CALL MEETING TO ORDER Welcome and Introductions 2)ROLL CALL 3)PUBLIC COMMENTS Public comments are invited on agenda and non-agenda items generally considered to be within the subject matter jurisdiction of the Committee. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Committee has the discretion to extend or shorten the speakers’ time limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. May 9, 2016 Page 2 Tidelands Management Committee Meeting 4)APPROVAL OF MINUTES Minutes of February 18, 2015, April 15, 2015 and January 20, 2016A. Recommendation: 1) Approve 15-02-18 DRAFT TMC Minutes 15-04-15 DRAFT TMC Minutes 16-01-20 DRAFT TMC Minutes 5)ON-GOING BUSINESS Harbor Capital Finance PlanA. Staff is requesting input on the draft Harbor Capital Finance Plan which is currently under review by the Harbor Commission. Recommendation: 1) Receive and file Item 5-A Harbor Capital Finance Plan - DRAFT Recap of Harbor Commission Agenda Action Items During the Previous Quarter B. Recommendation: 1) Receive and file Item 5-B Memo to TMC - Quarterly Review of Harbor Commission Action Items 6)CURRENT BUSINESS Balboa Island Bulkhead Cap ExtensionA. Staff will review the current plan to extend the bulkhead cap on portions of the Balboa Island seawall. Santa Cruz Dredging SolutionsB. Staff will briefly summarize the solutions that Santa Cruz Harbor uses for their sediment management program. Oil Fields in Newport BeachC. Staff will present an overview of the City’s oil well operations and future outlook. May 9, 2016 Page 3 Tidelands Management Committee Meeting 7)ROUNDTABLE OR ADDITIONAL PUBLIC COMMENTS 8)COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) 9)DATE AND TIME FOR NEXT MEETING: Wednesday, July 20, 2016 unless otherwise changed by the Committee 10)ADJOURNMENT Tidelands Management Committee Committee Action Minutes – DRAFT UNTIL APPROVED Meeting February 18, 2015 – 4:00 p.m., Civic Center Community Room 1. The meeting was called to order at 4:00 p.m. by Mayor Selich. 2. Roll Call: Council Members: Ed Selich, Diane Dixon and Tony Petros Citizen Advisory Panel (CAP) Members: John Corrough, Jamshed Dastur, Jack Keating, Dan Mariscal, Linda Beimfohr, and Paul Blank 3. Public Comments on Non-Agenda Items. None. 4. Minutes for October 29, 2014: Approved with Councilmember Petros abstaining. 5. On-Going Business A. Recap of Harbor Commission Agenda Action Items Chris Miller briefly summarized the Harbor Commission’s recent actions. Mayor Selich inquired about the timeline for catamaran Cheyenne and the submarine expedition. Petros commented on the success of the public outreach on the ferry in November 2014. A similar update will be given at Speak Up Newport on March 11, 2015 immediately preceding the March Harbor Commission meeting. Jim Mosher offered a comment regarding possible Brown Act violations when Commissioners pair up with Councilmembers. B. Tidelands Capital Plan A brief introduction was given on the TCP. The document is a planning tool and not an itemized budget. Projects are forecasted to anticipate funding and prioritization, and are ultimately approved as CIP’s by the City Council. Petros asked for RGP costs to be better defined for fiscal years 14, 15, and 16. Balboa Island seawall costs will depend on the option chosen. Selich questioned timing for Grand Canal dredging. The Park Avenue bridge will be replaced in the near future and proximal seawalls will be replaced as well. Dixon asked for the funding sources to also be explained, and commented that Tidelands are supplemented by the General Fund due to large expenditures such as the Lower Bay Dredging Project. Additional comments included the State Lands Commission regular audit of Tidelands funds and the reconciliation of Ocean Tidelands and Harbor Tidelands Capital projects. 6. Current Business A. Balboa Island Seawall Assistant City Engineer Bob Stein provided an update on the proposed Balboa Island Seawall project. A straw vote was conducted to move the item to a Study Session. 7. Date and Time for Next Meeting: April 15, 2015 The agenda for the February 18, 2015 Regular Meeting was posted on 2/13/15 at 2:38PM on the Civic Center Electronic Bulletin Board and at 10:17AM in the Binder, and at 1:44PM on the City’s website. _________________________________ Tidelands Management Committee Chair Tidelands Management Committee Committee Action Minutes – DRAFT UNTIL APPROVED Meeting April 15, 2015 – 4:00 p.m., Civic Center Community Room 1. The meeting was called to order at 4:00 p.m. by Mayor Selich. 2. Roll Call: Council Members: Ed Selich, Diane Dixon Citizen Advisory Panel (CAP) Members: John Corrough, Jamshed Dastur, Dan Mariscal, and Paul Blank 3. Public Comments on Non-Agenda Items. None. 4. Minutes for February 18, 2015: Postponed to next meeting with Mr. Petros absent and Mayor Selich abstaining due to early departure from the February meeting. 5. On-Going Business A. Tidelands Capital Plan Copies of the February and April Tidelands Capital Plan (“TCP”) were distributed. Public Works Director Dave Webb opened the topic explaining the history of the Plan, and that the document is used as a planning tool and not a budget document. Past members of the TMC had staff create the TCP to gain an understanding of ongoing, upcoming, and future projects. Tidelands projects are expensive and need forecasting. As projects are completed they are removed from the list. Oftentimes, projects are multi-year and will rollover into the following fiscal year. Detailed discussion occurred on most projects within the Plan. A short discussion ensued regarding the funding of projects between the incremental revenues from Tidelands rents and the Tidelands Fund. Finance Director Dan Matusiewicz explained that large projects such as Marina Park (around $6M) and the Lower Bay Dredging (around $9M) are on loan from the General Fund. The schedule for repayment is fifteen years. Mayor Pro Tem Dixon commented that big-ticket items like dredging need to be better identified so the City can prepare funding mechanisms. 6. Date and Time for Next Meeting: July 15, 2015. Meeting adjourned at approximately 5:35 PM. The agenda for the April 15, 2015 meeting was posted on 4/10/15 at 11:23am on the Civic Center Electronic Bulletin Board and at 11:30AM in the Binder, and at 11:19am on the City’s website. _________________________________ Tidelands Management Committee Chair Tidelands Management Committee Committee Action Minutes – DRAFT UNTIL APPROVED Meeting January 20, 2016 – 4:00 p.m., Civic Center Community Room 1. The meeting was called to order at 4:00 p.m. by Chairman Ed Selich. 2. Roll Call: Council Members: Ed Selich, Duffy Duffield Citizen Advisory Panel (CAP) Members: John Corrough, Jamshed Dastur, Dan Mariscal, Don Lawrenz and Paul Blank 3. Public Comments on Non-Agenda Items. None. 4. Minutes for February 18, 2015 and April 15, 2015: Ed Selich moved approval of the minutes to the next meeting as Tony Petros was absent. 5. On-Going Business A. Tidelands Capital Plan Copies of the Tidelands Capital Plan were distributed. Public Works Director Webb and Harbor Manager Miller provided an overview of the Tidelands Capital Plan. Mr. Webb updated the Committee with project status and funding. Finance Director Dan Matusiewicz discussed the Tidelands Maintenance Fund. Resident Jim Mosher inquired about discrepancies and changes in the plan that the public saw approved in May 2015 as compared to the current document. B. Recap of Harbor Commission Agenda Action Items During the Previous Quarter Harbor Manager Miller reviewed the Harbor Commission action items from the previous quarter, including the revocation of moorings for non-payment, a review of Commission objectives, a Harbor Patrol update, and an update on the sunken barge off of Lido Isle. 6. Current Business A. Public Piers in Newport Harbor – An Overview Harbor Manager Miller discussed the City’s public pier system in Newport Harbor, with particular focus on the upcoming finial replacement program as well as time zones for each side of the public piers. B. Disposal Scow for Newport Harbor Harbor Manager Miller discussed the capital equipment necessary for dredging both the main channels and the small residential slips. A conceptual plan for the City to purchase a disposal scow was also explored. Discussions included costs, scow construction, and regulatory requirements related to dredging and disposal. 7. Date and Time for Next Meeting: April 20, 2016. Meeting adjourned at approximately 5:35 PM. The agenda for the January 20, 2016 meeting was posted on 1/15/16 at 4:34 PM on the Civic Center Electronic Bulletin Board, and at 5:35 PM in the Binder, and at 4:05 PM on the City’s website. _________________________________ Tidelands Management Committee Chair Harbor Capital Finance Plan‐ Project Chronology ‐‐ DRAFTFacility/Item Quantity UnitsUnit Cost (2016) Cost Date BuiltLast MaintenanceDate Start Construction Priority FrequencyArches Drain: Dry Weather Diversion 1 LS $ 1,100,000 $ 1,100,000 2016 2096 Every 80 yearsBalboa Yacht Basin Marina (Slips): Replace 172 Slips $ 35,000 $ 6,020,000 1985 2025 Every 40 yearsBulkhead (American Legion): Replace 328 LF $ 5,000 $ 1,640,000 1957 2037 Every 80 years.Bulkhead (Balboa Island, N, S, E & GC): Boardwalk & Perimeter Drainage System only (Little Island not include ~42k SF) 92,000 SF $ 15 $ 1,380,000 2015 Every 80 yearsBulkhead (Balboa Island, N, S, E & GC): Replace Bulkhead 7,900 LF $ 5,000 $ 39,500,000 ~1930 2015Every 80 yearsBulkhead (Balboa Island, West End): Replace 1,300 LF $ 5,000 $ 6,500,000 1930 2017 Every 80 yearsBulkhead (Balboa Yacht Basin): Replace 1,375 LF $ 5,000 $ 6,875,000 1985 2065 Every 80 yearsBulkhead (Harbor‐Wide): Replace (List specific locations)LF $ ‐ Every 80 yearsBulkhead (Marina Park): Replace 850 LF $ 5,000 $ 4,250,000 2015 2095 Every 80 yearsBulkhead (Rhine Wharf): Replace 365 LF $ 5,000 $ 1,825,000 1949 2049 Every 80 yearsBulkhead Cap (American Legion): Repair 328 LF $ 320 $ 104,960 1957 2017 Every 40 years. Responsibility?Bulkhead Cap (Balboa Island N & S): Replace 7,000 LF $ 320 $ 2,240,000 1930 2016 Every 50 yearsEntrance Jetty: Maintenance LF $ ‐ Dredging (Balboa Yacht Basin): 25,600 CY $ 50 $ 1,280,000 1985 2025 Every 40 yearsDredging (Grand Canal): 5,000 CY $ 50 $ 250,000 1962‐1998 2016 Every 5 yearsDredging Equipment: Barge and Dredge Purchase (Proposed?) 1 EA $ 2,000,000 $ 2,000,000 Dredging Equipment: Disposal Scow Purchase (Proposed?) 2 EA $ 1,000,000 $ 2,000,000 Every 20 yearsDredging: Lower Bay (Channels) 150,000 CY $ 30 $ 4,500,000 2012 2019 Every 5‐7 yearsDredging: Newport Island Area (Channels) 15,000 CY $ 50 $ 750,000 1976 2022 Every 50 yearsDredging: Upper Bay (Channels & Catch Basins) 650,000 CY $ 30 $ 19,500,000 2010 2030 Every 20 yearsFerry Landings (Agate Ave & Palm St): Replace? 1 EA $ ‐ Lower Castaways: Park & Bulkhead 1 EA $ 5,000,000 $ 5,000,000 2022 One timeMarina Park Slips: Replace 23 EA $ 40,000 $ 920,000 2015 2055 Every 40 yearsMariner's Mile Walkway: Proposed? 1 LF $ ‐ Moorings: Design Improvement & Implementation 1 EA $ ‐ Moorings: Maintenance Facility (electrical, water, recycling) 1 EA $ ‐ Moorings: Multiple Vessel Mooring System. Proposed? 1 EA $ ‐ Navigation Markers: Convert Federal Stationary Markers to Floats $ ‐ Public Beaches (Lido Isle Bridge): Install Walkway to Beach 1 EA $ 150,000 $ 150,000 One timePublic Beaches (M St, 15th St & 18/19th St): Improvements 1 EA $ ‐ Public Beaches: Investigate Vessel Launch Ramp. Proposed? 1 EA $ ‐ Public Beaches: Onshore Boat Storage. Proposed? 1 EA $ ‐ Public Beaches: Other Waterfront Facilities / Parking 1 EA $ ‐ Public Beaches: Plan to acquire more if available 1 EA $ ‐ Public Beaches: Sand Nourishment (50k yards) 50,000 CY $ 50 $ 2,500,000 2016 2031 Every 15 yearsPublic Pier (15th St): Float only 1 EA $ 50,000 $ 50,000 2000 Project Due ‐ Set dateEvery 15 yearsPublic Pier (15th St): Pier & Gangway 1 EA $ 115,000 $ 115,000 2014 2034 Every 20 yearsPublic Pier (19th St): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (29th St): Gangway & Float 1 EA $ 100,000 $ 100,000 1968 Project Due ‐ Set Date Every 15 yearsPublic Pier (Mariner's Mile): Proposed? 1 EA $ 250,000 $ 250,000 Public Pier (Balboa Marina West): Float only 1 EA $ 200,000 $ 200,000 2017 2057 Every 40 yearsPublic Pier (Central Ave): Float only 1 EA $ 100,000 $ 100,000 2016 2036 Every 15 yearsPage 1 Facility/Item Quantity UnitsUnit Cost (2016) Cost Date BuiltLast MaintenanceDate Start Construction Priority FrequencyPublic Pier (Central Ave): Gangway 1 EA $ 40,000 $ 40,000 2016 Every 40 yearsPublic Pier (Coral Ave): Gangway & Float 1 EA $ 75,000 $ 75,000 1985 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Coral Ave): Pier only 1 EA $ 75,000 $ 75,000 1985 2014 2034 Every 20 yearsPublic Pier (Emerald Ave): Gangway & Float 1 EA $ 75,000 $ 75,000 1986 2000 Project Due ‐ Set date Every 15 yearsPublic Pier (Emerald Ave): Pier only 1 EA $ 75,000 $ 75,000 1986 2014 2034 Every 20 yearsPublic Pier (Fernando St): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Fernando St): Pier only 1 EA $ 75,000 $ 75,000 2014 2034 Every 20 yearsPublic Pier (Grand Canal, Balboa Ave): Pier Platform 1 EA $ 10,000 $ 10,000 2012 2017 2032 Every 15 yearsPublic Pier (Lido Bridge): Proposed? 1 EA $ 75,000 $ 75,000 Public Pier (M St): Gangway & Float 1 EA $ 100,000 $ 100,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (M St): Pier only 1 EA $ 100,000 $ 100,000 1985 2014 2034 Every 20 yearsPublic Pier (Opal Ave): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Opal Ave): Pier only 1 EA $ 75,000 $ 75,000 2014 2034 Every 20 yearsPublic Pier (Park Ave): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Park Ave): Pier only 1 EA $ 75,000 $ 75,000 2014 2034 Every 20 yearsPublic Pier (Rhine Channel): Float only 1 EA $ 175,000 $ 175,000 2007 2007 2032 Every 25 yearsPublic Pier (Rhine Channel): Gangway only 1 EA $ 60,000 $ 60,000 2007 2047 Every 40 yearsPublic Pier (Sapphire Ave): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Sapphire Ave): Pier only 1 EA $ 75,000 $ 75,000 2014 2034 Every 20 yearsPublic Pier (Washington St): Gangway & Float 1 EA $ 75,000 $ 75,000 2000 Project Due ‐ Set Date Every 15 yearsPublic Pier (Washington St): Pier only 1 EA $ 75,000 $ 75,000 2014 2034 Every 20 yearsPublic Swim Float (10th St) 1 EA $ 35,000 $ 35,000 1986 Project Due ‐ Set date Every 15 yearsRhine Wharf Boardwalk: Major Repair 1 LF $ 150,000 $ 150,000 2009 2029 Every 20 yearsTide Gate Valves (Balboa Island): Replace 34 EA $ 50,000 $ 1,700,000 Ongoing Every 25 yearsTide Gate Valves (Peninsula): Replace 39 EA $ 50,000 $ 1,950,000 Ongoing Every 25 yearsVessel Sewage Pumpout Facilities: Replace 5 EA $ 30,000 $ 150,000 2013 2023 Every 10 yearsWater Quality: Circulation (Newport Island Area): 1 EA $ ‐ Water Quality: TMDL Compliance: 1 LS $ 350,000 $ 350,000 UnknownWater Quality: Turbidity Control 1 EA $ ‐ = Harbor Commission SuggestionsPage 2 Harbor Capital Finance PlanTidelands Management CommitteeMay 9, 2016 Tidelands Capital Plan   Public Works Department Harbor Resources Division C ITY OF N EWPORT B EACH M E M O R A N D U M TO: Tidelands Management Committee FROM: Chris Miller, Harbor Resources Manager DATE: May 9, 2016 RE: Quarterly Review of Harbor Commission Action Items The Harbor Commission took action on the following agenda items during the previous quarter. Detailed meeting Minutes are available here. January 2016 1. Harbor Patrol Update Lieutenant Mark Alsobrook, harbormaster, updated the Commission on the Harbor Patrol’s operations. Action: Receive and file. 2. Status of Shellmaker, Inc.’s Scow “Gemini” Harbor Resources Manager Chris Miller provided an update as to the status of Shellmaker’s sunken scow “Gemini” currently on mooring J-98. Action: Receive and file. 3. Pumpouts in Newport Harbor – An Overview Harbor Resources Manager Chris Miller provided an overview of pumpouts in Newport Harbor with particular focus on the City’s stations. Action: Receive and file. 4. Central Avenue Public Pier – An Operational Review Harbor Resources Manager Chris Miller provided an overview of the proposed Central Avenue public pier relating to the operational characteristics only. Action: The Harbor Commission provided comments as to the operational characteristics of the proposed Central Avenue public pier.     2  5. Marina Activities Permits and Security Plans for Charter Vessels Harbor Resources Manager Chris Miller provided an overview of the City’s Marine Activities Permits (MAP) and the proposed requirements for charter vessels to provide security plans as part of the application process. Action: The Harbor Commission provided input as to the proposed requirement for charter vessels to provide security plans as part of the application process. February 2016 1. Channel Road Marina Renovation – Appeal The Lido Peninsula Company, LLC proposed the Channel Road Marina Renovation project located along the southwestern tip of the Lido Peninsula. The applicant proposed to extend the floats to the same distance as the existing floats on the southerly side, recognizing, however, that this distance is beyond the maximum allowable distance permitted by Council Policy H1. Therefore, the applicant appealed the Harbor Resources Manager’s denial of the project. Action: The Harbor Commission approved the applicant’s proposed Channel Road Marina Renovation project to extend the floats to the same distance as the existing floats on the southerly side along with the self-imposed overhang restriction of 12 feet. 2. Tidelands Capital Plan Review and Harbor Master Plan Ad Hoc Committee Formation Staff reviewed the Tidelands Management Committee’s Tidelands Capital Plan. In addition, the Harbor Commission formed an ad hoc committee to initiate the development of a Harbor Capital Finance Plan as instructed by the City Council. Action: Receive and file. The Harbor Commission formed an ad hoc committee to initiate the development of a Harbor Capital Finance Plan. 3. Central Avenue Public Pier – Harbor Commission Letter of Support to the Coastal Commission The Harbor Commission considered sending a letter of support for the Central Avenue public pier to the California Coastal Commission. Action: The Harbor Commission approved the Central Avenue public pier support letter to the California Coastal Commission. 4. RGP-54 Publicity and Outreach The Harbor Commission discussed various ways that the City’s new RGP-54 dredging permit should be publicized throughout the community. Action: The Harbor Commission discussed outreach methods to publicize the City’s RGP-54 dredging program.     3  5. West Anchorage Review The Harbor Commission reviewed and discussed the anchorage concept in the Turning Basin, and instructed the ad hoc committee to return to the Commission at the March 2016 meeting with a recommended path forward. Action: Receive and file. March 2016 1. Harbor Commission 2016 Objectives: Quarterly Review Every quarter, the Harbor Commission reviews their 2016 Objectives. Action: Receive and file. 2. West Anchorage Review and Recommended Path Forward The Harbor Commission evaluated the need for an anchorage in the Turning Basin, and formed a recommendation which will be forwarded to the City Council. Action: The Harbor Commission recommended a trial anchorage in the Turning Basin, but will discuss enforcement and rules at the April meeting. 3. Land Use Review: 2101 West Coast Highway (Ardell Property) Planning Manager Patrick Alford reviewed the land use requirements for the 2101 West Coast Highway property and the greater Mariner’s Mile area. Action: Receive and file. Parks, Harbors & Beaches Balboa Island SeawallsDesign and CappingCapping of North and South Seawalls •Coastal Development Permit Anticipated Fall 2016•Cap Construction (including Pier & Beach Accesses) starting January 2017•4‐5 Month Construction ScheduleWest End Seawall Rehabilitation/Replacement•Processing Contract for Wall Testing.•Visual/hammer Testing for Voids, Probing to Confirm Wall Depth, Evaluate Condition of Reinforcement Steel•8 Weeks for Testing/Preliminary Results.  15 Weeks for Final Report Existing conditions attypical dockPROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016 PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016Construct new 12"wide cap raise to6" from each sideof dock PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016Construct 11" widecap raise @ dockConstruct concretestep to width ofdock PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016 PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016Dock owner toconstruct steplanding PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016For public access at specifiedlocations, provide 3 ft widegap in cap raiseStainless steellined vertical slotsat ends PROPOSED CAP RAISE, BALBOA ISLAND SEAWALLFEB 26 2016PW personnel toinstall "stop log"during periods ofextreme high tide. Santa Cruz Dredging SolutionsTidelands Management CommitteeMay 9, 2016 Santa Cruz HarborInner Harbor Dredge at Harbor Entrance Entrance Channel Dredging•Santa Cruz owns dredging equipment because:1. 1952 Legislation specified a District‐owned dredge.2. Corps was challenged to time a project perfectly.3. After entrance channel experience, easy to justify buying smaller dredge for Inner Harbor. Entrance Channel Dredging•$6/cy without mobilization (Lower Bay ~$15/cy + $1.7 M mobilization•Pipe directly in the nearshore zone (good quality sand) and in offshore (fine grain beneficial) Entrance Channel Dredging Entrance Channel Dredging Entrance Channel Dredging Santa Cruz Harbor Dredging Santa Cruz Harbor Dredging Many Thanks to Bill Lee –Santa Cruz Port Commissioner & “The Wizard” West Newport Oil Field City of Newport Beach Oil Field Properties Background•Where are these Oil Wells?•Why does the City have Oil Wells?•How much revenue do they produce?•Why do we need to look at investing in this field? LA Basin Oil FieldsWest Newport Field Potential Surface Redevelopment(Banning Ranch EIR)•Oil Production Sites set aside in Open Spaces•Well Drilling is allowed with noise conditions•Three Production Facility Sites included in plan–Two Sites for City of Newport Beach–One 17-acre Site for West Newport Oil Company West Newport Oil Field Site Map West Newport Field Location West Newport Oil Field Sites Ownership History•Between 1953 and 1958 -16 wells drilled to access off shore Oil Assets•Early 1980’s – Dispute arose with Oil Operator (Armstrong Petroleum Company) as to their payments to the City.•1982 – Court issued judgment that Armstrong was in breech of the 1955 Oil Operating Agreement and awarded 16 wells and land lease to operate them to the City. •All Oil Revenue from these wells must be used for Tidelands Expenses.•The City retains their lease interest in Parcel A and B as long as the wells are in production. Highlights•Sixteen wells drilled from 1953 to 1958•Peak Production in 1955 at 1050 BOPD•City gain possession of the wells in 1982•12 active producers, 1 injector, and 3 shut in wells•Current Production – 65 BOPD, 40 MCFPD•Two drill sites -- 1.5 acres and 2.5 acres•Production Facilities – capable of handling 2000 BPD oil, 400-500 MCFPD gas, 5,000 BPD produced water. Water treatment facilities capable of handling 5,000 BPD of injection water. West Newport Oil Field Well Sites and Facilities West Newport Production HistoryDecline Curve Trend Oil Production Decline Curve4.5% Decline Curve Trend Impact of Dropping Oil Price2012 2013 2014Approx price per Barrell91.27 88.32 50Net Revenue1,498,080.31 1,226,082.78 361,993.2402000004000006000008000001000000120000014000001600000Net RevenueCity’s 3 Year Oil RevenueEst. Reserves•Proved Developed Producing –295 MBO (Thousand Barrels of Oil)•Probable --209 MBO•Gas Reserves (40 MCFPDconsumed by Hoag Hospital) Request for Partner Process•Council directed we put out an RFP to find a partner.•Got the OK from State Lands•Received 2 bids. Spent 5 months analyzing those bids and getting follow up information.•Negotiated a tentative agreement with bidder but did not finalize deal Next Steps•Current low Oil prices offer challenges and opportunity–Could pursue partnership idea further –or invest City money into operations –or do nothing at this time•Tough to look to a partnership until Oil prices rise•City investment requires higher degree of risk then typically taken by City Questions?