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HomeMy WebLinkAboutC-3108 - Cost Sharing, Upper Newport Bay Feasibility StudyMAY — 2 7— 9 7 T U E 10:04 KENNETH E M A N U E L S % KENNETH EMANUELS ' LE6f8LATIVR APVOCACV r OVLANAC9T fl VLATRINS DATE: i Tuesd8y,:May27,1 1997. TO- Mayor and CoUr.4il Members, City. gfNewportbeach FROM: Ken Emanuels SUBJECT: Legislative Activi"' on your. Behalf I I A, P _ 0 1 _5)-a7)97 — ';0,$/ ;,_ cj MAY 2 7 1997 As of last Thursday and ff ke tb ee mpnths of intense lobbying and probably 6 to 8 committee hearings, boththe,proposed Assembly and Sena a versiuns.of the FY 1997 -98 State Budget inalude partial funding'far SGc�6jntation reiiioy d in the Upper Bay, $2.0 million in the Assembly and. V.9 million in the ScnAfev : sion. In 4 _446n to a'14ifference between the two versions in the �. level 'of funding, the Sources o hmi fling ar4 ifla rent; The Senate version funds us from state tidelands oil revenue;and'the asembty ve' s iin �dndg us from the Harbors and Watercraft ievolving Fund. The alifotnia Iviafte Parks end i arbors Association, the Marina Recreation Association, the Caiifomia Asid-gatigp of it 6or Mssters and Port Captains and the Western Boaters Safety Oroup vioi¢uslj! opgose.fupding from.the Harbors and Watercraft Revolving Fund, which by statufe;fs.d§si # iie for loa�LS for:iinptovements to marina operators. (In response to tttc opposition, the'ciirrent law statutory restricts ?ns on the use. pf this Fund can be easily revised in a budget trill bill, which is what'theI 4sseinbly xersion assumes:) The City of Beach pas tieen:the,leading proponent of state funding for sedimentation removal; even. though the Upgerc pdy.,1:e41ogicef )teserve is owned by the State and managed by % thi: bepartment of Fish and:(xa`tne :The Count* `$ Orange; the Planning and Conservation League, the Sietra,&A, phi �aiiQr of Audubon $8ciety,:Sea & Sage Audubon, SPON, Friends of Newport Ba and other state attd local c ivu'o"Ontal: organizations all have endorsed the proposal aitirade pfidp ca71, well as.fojir ltscal rparina operators (Newport Dunes Marina, De: Ati?� lbiarima, $wales J. otage and the. Cal&nra Recreation Company) and the Newport iarbor Yacht C1uli„ 1 heid4 sjipp4rt.letters end telephone calls. and FAXes would not have been generated in a timely maifner. bur for the et%rts'.of the City and my office. I Y Y 'K N 7 8 N 8 1' v'ITC 41hi. aA1;MA14f.NTU 1: ALI TO AN IA YA 1'tV - IRY -27 -1997 10:08 951 - P.01 MAY-27-97 T U E 10:04 K E N N E T H E M A N U E L S P-02 Special notice should be made of the efforts of both Senator Ross Johnson and Assembly Member Marilyn Brewer. Each was responsive to the City's calls for assistance when votes were about to be cast and each called upon their fellow Legislators, more than once in writing and in person, to support the project. Even though the dredging project has regional if not statewide significance, as a budget matter it is viewed As a district issue by Legislators and therefore without the commitment of both Johnson and Brewer, the project would not have been funded at the level it was. I have briefed them or their staffs on our progress at least weekly since February, It was also helpful that the City staff and council members took the time in February and March to visit Sacramento several times and to cafl on:the budget committee staff to explain the need for the project in great detail, aerial photds and all. In my opinion, it is now quite likely that the project will receive at least $2.0 million in the FY 1997 -98 State Budget.. However, the.budget conference committee, which will begin to meet next week, must reconcile the differences between the sources and level of funding. The major factor will be what.the Administration wants. Up to now, their preference has been $2.0 m. from the harbors and Watercraft Account, but when the makeup of the budget conference committee is announced, it may become apparent that -this source will be defeated, i.e. if Senator Quentin Kopp is appointed to the committee. The Administration has indicated initial opposition to the Senate version's funding source, tidelands oil revenues. A potential third source for additional funding is AB 241 (Lempert) which contains $6.3 million for a wetlands mitigation clearinghouse and mitigation bank to be operated by the Coastal Conservancy. The bill will be heard for the frsttime in the Assembly Appropriations Committee this week. the environmental orgaII&Mlons supporting the bill, the Coastal Conservancy staff and the author's siaffall have indicated potential support for designating a portion of the $6.3m. for our project. Where do we go from here? While we will ask for it, I do not expect that the two versions will be combined for $4:9 million, This initi0phase of funding is most likely to end up between $2.0 m. and $2.9 m. From the City's standpoint, there is no reason to favor one source over another. Therefore, after the conference committee is appointed, I will go over the newly appointed members with Ross and Marilyn and focus our.lobbying team on two members from each house, the minimum required vote for the approval of an item. At the same time, the Governor's office will have to tell us which funding source they wilt 9ccept and whether or not they will ask for an increase above the $2.0 million. Inasmuch as the Governor has line item veto authority over any item the conference committee adopts,. the Governor is now the key for this and every other item in the final budget. The budget conference eommitteemin begin meeting In earnest the first week of June and hopefully will finish In very early duly, MAY -27 -1997 10:09 95i P.02 MAY-27-97 T U E 10:05 KENNETH E M A N U E L S P. 0 3 AB 820 ftawl Re�uation in the retentionpgtigSj for video tape for routine pglice department monitoring from 24 months to 6 moths. Sno ty of Newport Beach. Already approved by the Assembly Local Government Committee and the Assembly floor, this City- sponsored bill is widely supported by the California Police Chiefs Association, California Sheriffs Association and the League of Calitbrpia Cities. It would authorize the destruction of routine video monitoring after sic months, rather than 24 months, the current law. Representatives of the Newport Beach Police Department testified in favor of the measure. It would save the City substantial storage space and reduce the cost of video tape. At this point, there is no opposition. B 573 (Johnson). Revision of the SWe Tidelands Grant to the City. This bill has also been approved by the Senate Governmental Organization Committee and is awaiting a vote on the Senate floor. There is no opposition to the bill. This bill relieves the City from the obligation to use tidelands revenue only for tidelands property acquisition and permits the city to use it for tidelands - related expenditures such a beach cleaning, pier and jetty repair, bulkhead repair, etc. In addition, the bill provides: 1) l0% of tidelands lease revenue would be paid directly to the State Lands Commission 2) The remainder would be utilized as follows: - 80% for general tidelands and/or capital projects, and - 10 for environmental restoration or activities directly related to same. 3) City can use the tidelands revenue within the corporate limits of Newport Beach. 4) City will implement an appropriate land transfer in 12 months to augment trust assets (to remedy failure to comply with acquisition provision.) 5) City will modify tideland. accounting procedures to more accurately reflect revenues and expenditures. With the agreement of the State Lands: Commission, the Legislature is expected to support SB 573 with very little discussion and no dissent. MOV -97 -1007 10:1p QC' 0 AZ 0 AUG 12r-:,O- August r -::'0 August 12, 1996 CITY COUNCIL AGENDA ITEM NO. 15 TO: MAYOR AND MEMBERS OF THE CITY COUNCIL C -3jc FROM: PUBLIC WORKS DEPARTMENT SUBJECT: UPPER NEWPORT BAY FEASIBILITY STUDY - COST SHARING AGREEMENT WITH COUNTY OF ORANGE RECOMMENDATION: Approve the Cost Sharing Agreement with the County of Orange to perform the Federal Cooperative Upper Newport Bay Feasibility Study with County of Orange and authorize the Mayor and City Clerk to execute the Agreement. Discussion In 1986, at the request of the County of Orange (County) and the City of Newport Beach (City), Congress authorized the Secretary of the Army to modify the Federal Newport Bay Harbor project, which in 1935 constructed the current harbor entrance and main navigation channels in the lower bay. The proposed modification was to extend a 15 -foot deep by 250 -foot wide channel from the Lower Bay to the boundary of the Upper Newport Bay State Ecological Reserve, and to deepen the existing channel downstream of the Pacific Coast Highway bridge. In preparing the plans for the 1988 Upper Newport Bay Unit II Sediment Control and Enhancement project, (sediment basin below saltworks dike and access channel from Lower Bay up to the basin), the City submitted a final report for the proposed modifications to the U. S. Army Corps of Engineers (Corps). The Corps determined that there was not sufficient Federal interest in the project and the authorization to modify the Federal project in the Lower Bay was not approved. Since that time, the Federal government has expressed interest in environmental projects and in 1992 initiated a 100 percent Federally- funded reconnaissance study to modify the Federal project in the Lower Bay to provide environmental restoration and navigation in the Upper Bay. That study was completed in 1994 and found sufficient Federal interest in environmental enhancement in the Upper Bay to recommend moving to the next stage in developing Federal projects, a 50 percent Iocal/50 percent Federally- funded feasibility study. Ll i,_I SUBJECT: UPPER NEWPORT BAY FEASIBILITY STUDY - COST SHARING AGREEMENT WITH COUNTY OF ORANGE August 12, 1996 Page 2 The Corps has prepared a plan which provides for a $1,350,000 study to be shared 50 percent local/50 percent Federal over the next two and one -half years. The study will focus on addressing the problems and needs caused by sediment deposition in the Upper Newport Bay area. Planning objectives of the study are: 1. Develop an agency consensus related to meaningful modifications to the bay and San Diego Creek that would ensure greater species diversity and protection with the least impact to current populations; 2. Address the evolution and dynamic nature of the ecosystem through participation of the resource agencies during the first phase of the study; 3. Regulate the sediment storage within the Upper Bay; 4. Coordinate efforts of the Department of the Army and the National Oceanic and Atmospheric Administration to restore and create fish habitat; 5. Protect and enhance wetland habitat for a variety of water associated wildlife, including rare and endangered species; 6. Improve the water quality within the Upper Bay by improving tidal circulation and increasing the tidal prism; 7. Allow for continued navigation to existing marinas within the lower portion of the Upper Bay and the Federal project in the Lower Bay; 8. Make provisions for unique scientific and educational opportunities for study of wetland communities; 9. Seek regional partnerships and agencies expertise through the Coastal America Program. Preliminary alternatives to be studied will focus on reducing the uncontrolled distribution of sediment within the Upper Bay, and associated restoration of the ecosystem. Formulation of alternative plans will rely on extensive existing information about the watershed, and future planning and engineering modifications to the watershed that may reduce the volume of sediment that is transported to Newport Bay. Alternative plans will also consider improving tidal circulation by deepening channels adjacent to existing islands. Other measures to restore, enhance or create desired environmental 0 0 SUBJECT: UPPER NEWPORT BAY FEASIBILITY STUDY - COST SHARING AGREEMENT WITH COUNTY OF ORANGE August 12, 1996 Page 3 conditions and habitat for threatened and endangered species, such as the light- footed clapper rail, will be formulated and addressed during coordination efforts with other agencies. Maintaining a navigation channel from the existing Federal project in the Lower Bay to the marinas in the Upper Bay will also be addressed. Environmentally sensitive dredging methods will be explored, and alternate sites and uses for dredged material will be considered. Orange County will act as lead agency and enter into a cost sharing agreement with the Corps to prepare the study. This agreement provides for the City to share 50 percent City /50 percent County for the local share of the cooperative Federal feasibility study. One half of the local share can be "in kind services" (work performed by local agency) and it is planned that the in kind services can be accounted for with City and County work being completed for the Unit III Upper Bay project. That work includes the bioassay reports and surveys being completed for the Unit III project and additional survey work in the entire Upper Bay planned by the County. Terms of this agreement with the County are generally provided as follows: 1. Funding a. CASH City $30,000 County 50.000 TOTAL $801000 b. IN KIND SERVICES City $126,500 County J-2aAQ TOTAL $253,000 $ 80,500 $ 68,000 80.500 �4 494 $161,000 $116,000 $23,000 $29,000 23.000 29•UUO $46,000 $58,000 2. Newport Beach will provide the City's share of the funding to the County by September 30th each year; 3. City and County may terminate participation in the study by written notice; 4. The study will be managed by an Executive Committee comprised of the Los Angeles District Commander of the U.S. Army Corps of Engineers, Los Angeles Deputy District Engineer, Los Angeles District Chief of Planning, and one member each from the County of Orange and the City of Newport Beach; and L 0 SUBJECT: UPPER NEWPORT BAY FEASIBILITY STUDY- COST SHARING AGREEMENT WITH COUNTY OF ORANGE August 12, 1996 Page 4 5. If funds are not available from any cooperative local agency, the Executive Committee may amend the scope of work to continue within the limits of the revised funding. The City has participated with Orange County and the Corps of Engineers during preparation of the initial reconnaissance phase of the study. City interest includes Federal participation in funding future Upper Bay work; Federal participation as a project proponent in dealing with the resource agencies; and Federal participation in acquiring permanent designation for the L.A. III ocean disposal site. The study will also provide for survey of the entire Upper Bay (not just the sediment control basins); modeling of fresh water and tidal flows in Upper Bay; additional resource enhancement; and recommendations to enhance sediment control. Under terms of the agreement, the City's share of the cost for FY 1996/97 is $30,000 and is currently available in Account No. 7011- C5100005. Respectfully submitted, PUBLIC WORKS DEPARTMENT Don Webb Director of Public Works • E 0 0 r1 L� 0 0 UPPER NEWPORT BAY UNIT III SEDIMENT CONTROL AND ENHANCEMENT PROJECT MILESTONE SCHEDULE July 19, 1996 Task N& Description 1. Complete bioassay testing 2. Submit funding applications to State Coastal Conservancy to complete project development 3. Complete Agreement to transfer administration to Orange County establish a project management committee and provide funding to complete project development 4. Obtain bioassay approvals from the EPA S. Complete California Environmental Quality Act (CEQA) documentation 6. Initiate plans and specifications 7. Submit U. S. Army Corps of Engineers (Corps), CDFG, and Regional Water Quality Control Board ( RWQCB) permit applications 8. Submit California Coastal Commission application 9. Complete plans and specifications 10. Prepare agreements for funding and funding mitigation credit 11. Obtain Corps, CDFG, and RWQCB permits 12. Coastal Commission hearings and approval 13. Bid advertisement 14. Award contract1commence construction 1tVl9A4 OM943 NEWPMTBFACM DAk July, 1996 July, 1996 August, 1996 August, 1996 August, 1996 July, 1996 August, 1996 August/September, 1996 October, 1996 October/November, 1996 November, 1996 November, 1996 December, 1996 January, 1997 John M. Tettemer & Associates, Ltd. UNIT III PROJECT FINANCIAL SUMMARY • July 19, 1996 Expenses to Date (Fiscal Years 1993194, 1994195, and 1995196) ■ Preliminary engineering, agency approvals, $236,000 project management, mitigation plan development and bioassay preliminary approvals ) ■ Fisheries report 6,000 ■ Preliminary topographic surveying 12,000 ■ California Environmental Quality Act (CEQA) 40,000 documentation ■ Resource agency coordination/permitting 10,000 ■ Bioassay 260,000 ■ Topographic surveys 32.000 Subtotal $596,000 Encumbrances to Date (Fiscal Year 1995196) ■ Project management Total Costs to Date $605,000 . Funding Available to Date and Remaining Balance ■ City of Newport Beach (Fiscal Year 1993/94) $100,000 ■ City of Newport Beach (Fiscal Year 1994/95) 100,000 ■ City of Newport Beach (Fiscal Year 1995/96) 100,000 ■ Orange County(') 75,000 ■ The Irvine Company 200,000 ■ Dover Shores(') 301000 Total Funds Available to Date $605,000 Estimated Expenses Up To Construction (Winter 1996197) ■ Project management, negotiations with EPA regarding approval of Bioassay/LA III Permanent Designation and funding agreement negotiation $35,000 ■ Complete environmental documentation permit processing and Coastal Commission approval 45,000 ■ Surveying and design to complete final plans, 60,000 specifications, cost estimates, and contract documents Total Funds Required Up To Construction $140,000 • Notes (1) Cost abating for Orange CooM}+s and Dauer Shores' portion of bioanay work John M. Tettemer & Associates, Ltd. UPPER NEWPORT BAY UNIT III SEDIMENT CONTROL AND ENHANCEMENT PROJECT May 30, 1996 Background The Upper Newport Bay Unit III project is critically needed to manage sediment moving into the Upper Bay, thereby protecting the Upper and Lower Bay environmental resources and economic interests. It is critical since all of the planned sediment capacity in the basin adjacent to Jamboree Road has been filled. There is a possibility of environmental damage downstream if the facility is not restored immediately. The City of Newport Beach (City) has been acting as the Project Manager for the Sediment Control and Enhancement Project. It has been the intent of the City, on behalf of the Executive Committee, to have all of the plans and specifications completed ' and permits and approvals obtained in order to award a dredging contract once funding is available, hopefully before the 1996 /1997 winter storms. The current status of the City's activities indicates that a contract could be awarded and construction started in January of 1997 if funds for planning and construction becomes available by September of 1996. The purpose of this report is to provide an update on activities currently underway, the work to be started, and the current schedule. Status of Current Work The following five items of work are underway. A bioassay is required to prove that the desired ocean disposal site will not be harmed by the material dredged from the Upper Bay. The bioassay consultant has completed all sediment sampling, including both chemical and bioaccumulation testing of the samples. Initial results of the analysis indicate that most of the sediment dredged from the site will be suitable for ocean disposal. A problem occurred with the initial test on the bottom seven feet of sediment in one area of the Unit III basin. Unlike other portions of the bioassay test area, these sediments have not been previously dredged. The initial testing procedure used on these sediments did not appropriately account for variations in salinity and ammonia in the samples. The re -test provided satisfactory results for one test procedure, however; a second Procedure on amphipods remains a problem. The U. S. Environmental Management MMPPP U"3 NEWPORISEAM 0 Agency (EPA) has recommended a re -test with a second species of amphipod which • provided satisfactory results on several projects in northern California. Those projects involved very fine bay muds similar to the material in the Upper Bay and it is anticipated that the additional testing and approval by EPA will be completed in July, 1997. The LA III Ocean Disposal Site located offshore of the Newport Harbor Entrance is the only practical/economically feasible site for disposal of dredge material. The site is managed by the Federal government and studies required for its permanent designation have not been completed. City and County staff have worked with Congressman Cox's office, the U. S. Army Corps of Engineers and the EPA to extend the temporary use of the site and to provide for permanent designation. The site is definitely available for the Unit III project and it appears that the efforts to obtain permanent designation of the site for future dredge disposal will be successful. Orange County has just completed surveys of the site for the EPA and the Upper Bay project will provide for post - construction surveys of the site. Progress has also been made on preparation of California Environmental Quality Act (CEQA) documentation and resource agency permits. The project description and initial • study are being completed and on -site surveys for the analysis of visual construction related impacts have been performed. It is currently anticipated that amendments of the existing environmental documentation for the original in -bay projects will be sufficient to satisfy the CEQA documentation with certification in August, 1996. Upon certification of the CEQA document, the Section 404 Permit, the Section 401 Certification, and the Coastal Commission Development permits will be issued. Resource agencies have been contacted, permitting requirements verified, and draft permits are under preparation. No exceptional problems are foreseen. 1; 31MMf.l:4t� Updated ground and aerial site surveys were completed in late July of 1995, and topographic mapping for the Unit III area and access channel was completed in mid- August. Surveys have just been completed to determine any additional sedimentation which may have occurred during the 1995/1996 storm season. Supporting data has been provided and steps are being taken to negotiate the sale of • mitigation credits resulting from the enhanced habitat to be created. $5,000,000 is required for the construction of the project and $10,000,000 is required for an annuity. Doug Wheeler's office is currently taking the lead on this activity. Agreements with the Moe"M9- M NEwronreLAM 2 . parties and funding will be required by September, 1996 if the current schedule is to be maintained. Work to be Initiated Though not complicated, the plans and specifications need to be prepared and must include modification of the stabilizer structure downstream of Jamboree Road on San Diego Creek. It is expected that the plans and specifications can be completed by November, 1996. It will be necessary for the State of California, the City of Newport Beach, the Port that purchases credits, and some of the resource agencies to enter an agreement to transfer funds to the City, to assure mitigation credits, etc. The agreement needs to be signed by September, 1996. The major agreement points have been identified. MEMBE =1 1 e • It will be necessary for the City to raise an additional $140,000 to assure completion of the steps described above in time for construction to start in January, 1997. • Current Schedule An updated schedule is attached. Update on Mitigation Credits and Negotiations with State Resources Agency on Funding is attached. Unit III Project Financial Summary is attached. NEWPORTUAC O 0 0 John M. Tettemer & Associates, Ltd: UPDATE ON MITIGATION CREDITS AND NEGOTIATIONS • WITH STATE RESOURCES AGENCY ON FUNDING May 30, 1996 The numerous steps taken are outlined below: 1. After the last Executive Committee meeting, meetings were held with California Department of Fish and Game (CDFG) senior management and concurrence was reached on project implementation and funding with mitigation credits. 2. Additional follow -up meetings were held with State Resources Agency administration and CDFG senior management to confirm CDFG's commitment to the project and to expedite project development. 3. Meetings held with CDFG, National Marine Fisheries, and U. S. Fish and Wildlife Service staff led to technical level agreement that 50 acres of project site could be used for credit. 4. Annuity estimate studies made. 5. Proposed that the 61.8 acres made up of footprint of the project that is . being lowered to -14' mean sea level for the first time and other benefitted areas was more appropriate than 50 acres. 6. 1.32 multiplier used to convert field footprint to mitigation credit acres was introduced. 7. Salinity study made that shows high quality marine habitat during all critical periods will be developed to Jamboree Road. 8. Study developed to demonstrate that 27.7 acres of non - footprint areas could be used for credit due to regional benefits downstream for improved tidal flushing and improved sediment management. Total acreage: 50 + 27.7 = 77.7 acres. 9. Calculations: 77.7 x 1.32 = 102.6 acres of marketable credits. At $140,000 /acre, project and annuity contributions would be: Project Construction Funding: $5,000,000. Project Maintenance Annuity: $10,000,000. 10. Conclusion: Any combination of acres and values that yields $15,000,000 is • acceptable. • is • John M. Tettemer & Associates, Ltd. 11 UPPER NEWPORT BAY SEDIMENT MANAGEMENT AND ENHANCEMENT PLAN UNIT III CONSTRUCTION SCHEDULE Task &. De=*Iion 1. Complete California Environmental Quality Act documentation *2. Prepare agreements for funding and funds mitigation credit *3. Receive planning/construction funding 4. Prepare final plans, specifications, and contract documents 5. Obtain permits and approval 6. Advertise for bids 7. Award construction contract Completion DA& 8/15/96 8/15/96 10/15/96, 10/15/96 12/15/96 12/15/96 01/15/97 * It is anticipated that the Resources Agency will play a major role in negotiations of the funding and mitigation agreements. John M. Tettemer & Associates, Ltd. under contract to the City of Newport Beach is available to support and assist the Resources Agency as needed. m.sauwm NEWPOM John M. Tettemer & Associates, Ltd. UNIT III PROJECT FINANCIAL_ SUMMARY • May 30, 1996 Expenses to Date (Fiscal Years 1993194, 1994195, and 1995196) ■ Preliminary engineering, agency approvals, $200,000 project management, and bioassay preliminary approvals ■ Fisheries report 6,000 ■ Preliminary topographic surveying 12,000 ■ California Environmental Quality Act (CEQA) 50,000 documentation ■ Resource agency permitting 27,000 ■ Bioassay 260,000 ■ Final topographic surveys 32.000 Subtotal $587,000 Encumbrances to Date (Fiscal Year 1995196) ■ Project management 1.8 Total Costs to Date $605,000 Funding Available to Date and Remaining Balance ■ City of Newport Beach (Fiscal Year 1993194) $100,000 ■ City of Newport Beach (Fiscal Year 1994/95) 100,000 ■ City of Newport Beach (Fiscal Year 1995196) 100,000 ■ Orange County(') 75,000 ■ The Irvine Company 200,000 ■ Dover Shores(') 30.000 Total Funds Available to Date $605,000 Estimated Expenses Up To Construction (Waiter 1996197) ■ Bioassay processing through EPA $20,000 ■ Project management, funding agreement negotiation, permit 30,000 processing, and Coastal Commission approvals ■ Plans and specifications preparation, processing 90,000 and approvals Total Funds Required Up To Construction $140,000 Nor ": (1) Con "ing for 0moSc Co ty+s and Dover Show' portion of hio=q work a 0 0 Agreement No. D -96 -067 COST SHARING AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE COUNTY OF ORANGE FOR THE UPPER NEWPORT BAY FEASIBILITY STUDY This Agreement is made and entered into this oCtl� day of , 1996 by and between the City of Newport Beach, a municipal corporation, referred to as CITY and the County of Orange /Harbors, Beaches and Parks, hereinafter referred to as COUNTY with reference to the following: RECITALS 1. Congress has authorized the Secretary of the Army to modify the project for navigation for Newport Bay Harbor, Orange County, California... to dredge and maintain a 250 -foot wide channel in the Upper Newport Bay to the boundary of the Upper Newport Bay State Ecological Reserve to a depth of 15 feet mean lower low water, and to deepen the channel below the Pacific Coast Highway bridge to a depth of 15 feet mean lower low water..., pursuant to Section 841 of Public Law 99 -642 and subject to section 903(b) of Public Law 99 -662 which requires completion of a final report of the Chief of Engineers. 2. The U.S. Army Corps of Engineers has conducted a reconnaissance study on modifying the project for navigation for Newport Bay Harbor for the purposes of providing environmental restoration and navigation in the Upper Bay pursuant to this authority, and has determined that further study in the nature of a "Feasibility Phase Study" (hereinafter the "Study) is required to fulfill the intent of the study authority and to 0 0 assess the extent of the Federal interest in participating in a solution to the identified problem. 3. The Study will be undertaken only to the extent of Congressional appropriations, Newport Beach City Council and Orange County Board of Supervisor's annual budgetary approval. 4. Section 105 of the Water Resources Development Act of 1986 (Public Law 99 -662, as amended) specifies the cost sharing requirements applicable to the Study. 5. The COUNTY and the CITY have the authority and capability to furnish the cooperation hereinafter set forth and are willing to participate in the cost sharing and financing of and for the Study in accordance with the terms of this Agreement. 6. The COUNTY and the CITY understand that entering into this Agreement in no way obligates either party to implement a project and that whether the COUNTY and the CITY support a project authorization and budget it for implementation depends upon, among other things, the outcome of the Study, and the extent of financial participation of the Federal Government in a proposed project implementation. 7. The U.S. Army Corps of Engineers has prepared an Upper Newport Bay Project Study Plan (Appendix A) dated October 1995 that identifies the work activities, efforts required, schedules, costs and sources of funding required to conduct the feasibility study for ecosystem restoration and watershed management. 8. The "Study" shall be performed in accordance with Appendix A upon 2. 0 0 appropriation of the necessary funds and execution by the COUNTY and the U.S. Army Corps of Engineers of that certain Agreement attached hereto as Appendix B and incorporated herein (hereinafter "Appendix B ") and shall culminate in a report prepared by the Army Corps of Engineers that will be made available to the COUNTY and the CITY. 9. The results of the Study are necessary for the determination of a federal interest for further involvement of the design and construction of a project for navigation and environmental restoration in Upper Newport Bay and will provide the COUNTY and CITY information necessary to make informed decisions related to the operation, maintenance and restoration of tidelands granted to the COUNTY and CITY by the State of California. 10. The Upper Newport Bay Ecological Reserve, COUNTY tidelands, CITY tidelands and privately maintained navigation channels have experienced problematic sedimentation and resulting hazardous shoals, changes in Ecological Reserve habitats and threats to the viability of sensitive and endangered species. NOW THEREFORE, it is agreed by and between the parties hereto as follows: 1. COUNTY and CITY agree to provide cost - sharing and financing of fifty (50 %) percent of the Non - Federal funding required under Appendix B of COUNTY and local supporting agencies. Consistent with applicable federal statues, regulations and Appendix B, approximately one half of this cost sharing may be acceptable in -kind services. The COUNTY and CITY shall equally share the Non - Federal cost - sharing responsibility provided for in Appendix B. 3. 0 0 The individual annual cash and-in -kind service contribution for the CITY and the COUNTY shall be as follows: Fiscal Year Count v Cash City Cash Count v In-Kind City In -Kind Contribution Contribution Service Service Contribution Contribution 1996 -97 $ 40,000 $ 30,000 $126,500 $126,500 1997 -98 $ 80,500 $ 80,500 $ 23,000 $ 23,000 1998 -99 $ 58,000 $ 68,000 $ 29,000 $ 29,000 Totals $178,500 $178,500 $178,500 $178,500 Applicable in -kind service contributions will include CITY and COUNTY expenditures related to the performance of bioassay analyses, aerial and hydrographic surveys and Geographical Information System (GIS) mapping in the Upper Newport Bay. It is recognized that portions of the bioassay and survey information developed by the CITY or COUNTY may not be applicable to the Federal Feasibility Study. 2. CITY and COUNTY agree that although the Project Study Plan (Appendix A) describes a three year study program CITY and COUNTY participation shall be limited by the annual budget approval of the appropriate Council or Board of Supervisors for each fiscal year. The CITY shall remit their share of the cash contribution to the COUNTY upon approval of the CITY Council and prior to September 30 of each fiscal year. The COUNTY shall remit the combined cash contribution to the Corps of Engineers with the budgetary approval of the Board of Supervisors prior to September 30 of each fiscal year. The CITY and COUNTY shall each provide an annual written statement of completed in -kind services prior to September 30 of each fiscal year for submittal to the Corps of Engineers Project Manager. 3. CITY and COUNTY agree that either party may terminate participation in the Study if it is determined that it is not in accord with its current 4. _ . • policies and budget priorities. When such a case exists, the Study shall be terminated according to Article x of Appendix B and all data and information shall be made available to both parties. 4. If funds are not available from any cooperating local agency during the Study period, the Executive Committee, as established in Article IV of Appendix B, may amend the scope of work and plan of action to continue within the limits of revised funding schedule. 5. In accordance with Article IV of Appendix B, the COUNTY and the CITY shall have equal opportunity for overall Study management by the appointment of one member of the Executive Committee. 5. • IN WITNESS WHEREOF, COUNTY has caused this agreement to be executed by the Chairman of the Board of Supervisors, acting as the governing board of COUNTY, and attested by its Clerk, and CITY has caused this agreement to be executed by its Mayor, and attested by its Clerk, all thereunto duly authorized on the dates set forth opposite their respective signatures. ATTEST: CITY OF NEWPORT BEACH: Date: ia--.74 s('0 By: Mayor Date: �l a a IG�° AUG 2 0 1994 Date. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD: o, o C1 yln),,,� DARLENE J. LBLB J. Clerk of the Board of .Supervisors of Orange County, California By: &41 "))' rV City Clerk APPROVE AS FORM: By: City Att rney HARBORS, BEACHES AND PARKS By: t- (✓ Chairm f the Board of uper isors of OrAnggfCounty acting as the GoverWWg Board of the Orange County Harbors, Beaches and Parks APPROVED AS TO FORM: Laurence M. Watson, Acting County Counsel Orange County California By: Deputy 21 0 IN WITNESS WHEREOF, COUNTY has caused this agreement to be executed by the Chairman of the Board of Supervisors, acting as the governing board of COUNTY, and attested by its Clerk, and CITY has caused this agreement to be executed by its Mayor, and attested by its Clerk, all thereunto duly authorized on the dates set forth opposite their respective signatures. ATTEST: CITY OF NEWPORT BEACH: Date: By: Mayor Date: By: City C APPROVED AS TO FORM: • By: City Attorney ORAN Z ARBORS, BEACHES AND PARKS Date: AUG 2 D 1996-''c' By: Chair n f the Board of Supervisors of 0 n County acting as the Governing Board of the Orange County Harbors, Beaches and Parks SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD. Clerk of the Board of Supervisors of Orange County, California •APPROVED AS TO FORM: Laurence M. Watson, 11biwgb County Counsel Orange Counjo California /J 6. V2� n r County otleOrange Public Facilities & Resources Department C'�IFOR� c John W. Sibley, Director A 9M February 29,1997 Attention: Shauna Oyler, Executive Secretary City of Newport Beach Public Works Department P.O. Box 1768 Newport Beach, CA 92658 -3311 Subject: Cost Sharing Agreement Between the City of Newport Beach and the County of Orange for the Upper Newport Bay Feasibility Study Dear Ms. Oyler: Its been a long time coming, but the Clerk of the Board finally worked out the problems with executing the subject agreement. It appears that since the City Council and County Board of Supervisors both acted on the agreement about the same time, the individually executed copies passed in the mail so the Clerk had to get your copies reexecuted by the Board. I noticed that County Counsel's signature is not on the latest version so I am sending you a copy of one that he did sign to try to expedite this lingering problem. If this is not acceptable let me know and I will get County Counsel to sign again. Sorry for any inconvenience due to the delay. Sincerely, 010 t Tom Rossmiller, Coastal Engineer LOCATION: MAILING ADDRESS: TELEPHONE: 300 N. FLOWER ST. P.O. BOX 4048 (714) 834 -5302 SANTA ANA, CALIFORNIA SANTA ANA, CA 92702AO48 FAX # 834 -2395