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HomeMy WebLinkAboutC-3594 - Standard Agreement No. 04-075 (Big Canyon Creek Restoration Project)STATE OF CALIFORNIA STANDARD AGREEMENT (Grant - Rev 09/06) G- 35elq AGREEMENT NUMBER AM. NO. 04-075 1 TAXPAYERS FEDERAL EMPLOYER IDENTIFICATION NO 95-6000751 ii� THIS AGREEMENT, made and entered into this I / day of y lu V 2007, in the State of California, by and between State of California, through its duly elected or appointed, qualified and acting TITLE OF OFFICER ACTING FOR STATE AGENCY Executive Officer I State Coastal Conservancy , hereafter called the Conservancy, and UKAN I tt'J NAML City of Newport Beach hereafter called the Grantee. The Grantee, for and in consideration of the covenants, conditions, agreements, and stipulations of the Conservancy hereinafter expressed, does hereby agree as follows: The State Coastal Conservancy ("the Conservancy") and the City of Newport Beach ("the grantee") agree to amend their existing Agreement No. 04-075 as follows: TERM OF AGREEMENT The term of the agreement is extended to June 30, 2009. The completion date is extended to January 31, 2009. All other terms and conditions of the existing agreement shall remain in effect. The provisions on the following pages constitute a part of this agreement. IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written. STATE OF CALIFORNIA GRANTEE AGENCY GRANTEE (Ifo er than an individual, state whether a corporation, partnership, etc.) State Coastal Conservancy City of ewport B eich BY (Authorized Si ture) BY ( th 'z ignatu ) n � X VTITLE PRINTED N MEA OF P✓✓ERS\ON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNI Samuel Schuchat, Executive Officer Steven Rogangky, Mayor ADDRESS & PHONE NUMBER 1330 Broadway, 13th Floor ADDRESS & PHONE NUMBER 3300 Newport Boulevard Oakland, CA 94612 Phone: (510) 286-1015 Newport Beach, CA 92658-8915 AMOUNT ENCUMBERED BY THIS PROGRAM/CATEGORY (CODE AND TITLE) FUND TITLE DOCUMENT Capital Outlay CA Clean Water... (OPTIONAL USE) $ -O- Big Canyon Creek Restoration PRIOR AMOUNT ENCUMBERED ITEM '-Reapprop. by Ch. 038/05 CHAPTER STATUTE FISCAL YEAR FOR THIS AGREEMENT $500,000.00 3760-301-6029(1)* 379 2002 02/03 TOTAL AMOUNT ENCUMBERED OBJECT OF EXPENDITURE (CODE AND TITLE) TO DATE $500,000.00 Resource Enhancement 1 hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above. SIGNATURE OF A�CCOU�T/IN OFFICER t DATE i r i ` W ,mo107 0� ❑ GRANTEE ❑ ACCOUNTWG ❑ PROJECT MANAGER ❑ CONTROLLER ❑ STATE AGENCY I certify that this agreement is exempt from Department of General Services approval. iAN.DARD AGREEMENT - _zt�tsan \&YED BY THE ATTORNEY GENERAL 04 -075 tAxPATERS iiSaAAt FYPI.OfI is AGREEMENT, made and entered into this 3 r day of ` the State of California. by and baween State of California, through its duly elected or appointed, qualified and acting E OF OFFa70fi AA-11w rvn a.w.e Executive Officer State Coastal Conservancy hereafter called the State, and City of Newport Beach hereafter called the Contracto TftMSSrH: Ilm die Contracwr for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter express, its hereby agree io furnish to the Stile services and materials as follows: (Set forth service to be rerL&red by Contractdr, amowr to be paid Conrractc TIe for performance or completion, and anach plans and specifications. if any) . SCOPE OF AGREEMENT Pursuant to Chapter 6 of Division 21 of the California Public Resources Code, the State Coastal Conservancy ( "the Conservancy ") hereby grants to the City of Newport Beach (`the grantee ") a sum not to exceed five hundred thousand dollars ($500,000), subject to the terms and conditions of this agreement. These funds shall be used by the grantee to prepare final design and engineering plans, an environmental review document, and permit applications for the Big Canyon Creek Restoration Project "the project') for the lower Big Canyon, which drains to Newport Bay and lies within the City of Newport Beach, as shown on Exhibit A, which is incorporated by reference and attached. For the project, the City will refine the conceptual plan and prepare final design and engineering plans, an environmental review document, and permit applications to ready the project for implementation. 6i (Continued on following pages) CONTINUED ON SHEETS, EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER The provisions on the rcvcrseside hereof constitute a part of this agreement- U4 WITNESS WHEREOF; this agreement has been executed by the parties hereto, the date fast above written. r I �T STATE OF CALIFORNIA 1 CONTRACTOR {T J AGENCY - CONTRACTOR (a a Mrs ..,d-id.uL r+I..MMir • mporvoM1 Pr^'r�V. 1 State'Coastal Conservancy City of N wport a h BY CAATiitE1 BY (AUTHOR D PANTED KASON SIGNING PRWTED AND WIG OF PER 5 WE 1 Schuchat :�W7 RAE AwAm.3.3uv LVewporc ImuLevard ae. cutive Officer I . Newport Beach, CA 92658 -8915 $' 500, 000.00 PRIOR AYBtINT ENUMBERED FOR THIS CONTRACT TOTAL AMOIMT.ENCUMBERED TO $500,000.00 tal Ou Big Canyon Creek Restoration REM CHAPTER 3760 - 301 - 6029(1) 379 OBJECT OF EXPENDITURE (CODE AND WLE) Resource Enhancement I hateby cw* Upon ny own personal Anowkdge ftf budgeted /rods T.SA NO. ae aYaiabAe AY 87e penod and purpa oI ttre eAyendlaae stated above. I . Clean Water... II. viie'onty STATUTE FISCAL YEAR 2002 02/03 � Certify that this gram agreemenU s exempl from department of Gem,!' ervices approv. 4ax cwt DATE 05 -1305 -sT: L If.j1 O I arc tin r 0 City of Newport Beach Grant Agreement No. 04 -075 Page 2 SCOPE OF AGREEMENT (Continued) The grantee shall carry out the project in accordance with this agreement and a work program to be approved by the Executive Officer of the Conservancy ( "the Executive Officer ") pursuant to this agreement. The grantee shall provide $80,000 and in -kind services in the amount of $20,000 and any funds beyond those granted under this agreement which are needed to complete the project. CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND The grantee shall not commence the project and the Conservancy shall not be obligated to disburse any funds under this agreement unless and until the following conditions precedent have been met: 1. A resolution has been adopted by the City Council of the grantee authorizing the execution of this agreement and approving its terms and conditions. 2. The Executive Officer has approved in writing: a. The work program for the project. See "WORK PROGRAM." b. All contractors that the grantee intends to employ in connection with the project. TERM OF AGREEMENT This agreement shall be deemed executed and effective when signed by both parties and received in the office of the Conservancy together with the resolution described in the "CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT" section of this agreement. An authorized representative of the grantee shall sign the first page of the originals of this agreement in ink. This agreement shall run from its effective date through June 30, 2007 ( "the termination date ") unless otherwise terminated or amended as provided in this agreement. However, all work shall be completed by April 30, 2007 ( "the completion date "). 0 • City of Newport Beach Grant Agreement No. 04 -075 Page 3 AUTHORIZATION The signature of the Executive Officer of the Conservancy on this agreement certifies that at its June 30, 2004 meeting, the Conservancy adopted the resolution included in the staff recommendation attached as Exhibit B. This agreement is executed pursuant to that authorization. City of Newport Beach Grant Agreement No. 04 -075 Page 4 Standard Provisions WORK PROGRAM 0 Prior to commencement of the project, the grantee shall submit a detailed work program to the Executive Officer for review and written approval as to its consistency with the terms of this agreement. The work program shall include: The specific tasks to be performed. A schedule of completion for the project, specifically listing the completion date for each project component and a final project completion date. 3. A detailed project budget. The project budget shall describe all labor and materials costs to be incurred to complete each component of the project. For each project component, the project budget shall list all intended funding sources including the Conservancy's grant, the grantee's contribution and all other sources of monies, materials, or labor. If all or part of the project to be funded under this agreement will be performed by third parties ( "contractors ") under contract with the grantee, then the grantee shall, prior to initiating any request for contractor bids, submit the bid package for review and written approval of the Executive Officer. Upon approval by the Executive Officer, the grantee shall proceed with the bidding process. Prior to final selection, the grantee shall submit to the Executive Officer for written approval the names of all contractors that the grantee intends to hire. The grantee shall then comply with the above paragraph regarding submission and approval of a work program prior to implementation. The work program shall have the same effect as if included in the text of this agreement. However, the work program may be modified without amendment of this agreement upon the grantee's submission of a modified work program and the Executive Officer's written approval of it. If this agreement and the work program are inconsistent, the agreement shall control. The grantee shall carry out the project in accordance with the approved work.program. COORDINATION AND MEETINGS The grantee shall coordinate closely with Conservancy staff and other involved entities, including local, state and federal agencies, and shall participate in meetings and other communications as necessary to ensure coordination. • w City of Newport Beach Grant Agreement No. 04 -075 Page 5 WORKS PRODUCTS All material, data, information, and written, graphic or other work produced under this agreement is subject to the unqualified and unconditional right of the Conservancy to use, reproduce, publish, display, and make derivative use of all such work, or any part of it, free of charge and in any manner and for any purpose; and to authorize others to do so. If any of the work is subject to copyright, trademark, service mark or patent, the Conservancy is granted and shall have a perpetual, royalty -free, nonexclusive and irrevocable license to use, reproduce, publish, use in the creation of derivative works, and display and perform the work, or any part of it, and to grant to any third party a comparable and coextensive sublicense. The grantee shall include in any contract with a third party for work under this agreement terms that preserve the rights, interests, and obligations created by this section, and that identify the Conservancy as a third -party beneficiary of those provisions. The grantee shall not utilize the work produced under this agreement for any profit - making venture, or sell or grant rights to a third party for that purpose. COSTS AND DISBURSEMENTS Upon determination by the Conservancy that all "CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT" have been fully met, the Conservancy shall disburse to the grantee, in accordance with the approved project budget, a total amount not to exceed the amount of this grant, as follows: Disbursements shall be made on the basis of costs incurred to date, less ten percent, upon the grantee's satisfactory progress in accordance with the approved work program and upon submission of a "Request for Disbursement" form, which shall be submitted no more frequently than monthly but no less frequently than quarterly. Disbursement of the ten percent withheld shall be made upon (1) the grantee's satisfactory completion of the project, compliance with the "PROJECT COMPLETION" section of this agreement, and submission of a fully executed final "Request for Disbursement" form; and (2) the Conservancy's acceptance of the project. The grantee shall request disbursements by filing with the Conservancy fully executed "Request for Disbursement" forms (available from the Conservancy). The grantee shall include in the forms its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred, of all work done for which disbursement is requested. The forms shall also indicate cumulative 0 City of Newport Beach Grant Agreement No. 04 -075 Page 6 COSTS AND DISBURSEMENTS (Continued) expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement. The forms shall be signed by an authorized representative of the grantee. Each form shall be accompanied by any receipts and supporting invoices or other source documents from contractors that the grantee engaged to complete any portion of the work funded under this agreement, and by written substantiation of completion of the portion of the project for which disbursement is requested. With each form, the grantee shall submit a supporting progress report summarizing the current status of the work and comparing it to the status required by the work program (budget, timeline, tasks, etc.). Failure to fully execute and submit a Request for Disbursement form, including attachment of supporting documents, will relieve the Conservancy of its obligation to disburse funds to the grantee unless and until all deficiencies are rectified. EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGETITEMS The grantee shall expend funds in the manner described in the approved project budget. The allocation of the Conservancy's total grant among the items in the project budget may vary by as much as ten percent without approval by the Executive Officer. Any difference of more than ten percent must be approved in writing by the Executive Officer. The Conservancy may withhold payment for changes in particular budget items which exceed the amount allocated in the project budget by more than ten percent and which have not received the approval required above. The total amount of this grant may not be increased except by amendment to this agreement. Any increase in the funding for any particular budget item shall mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement. PROJECT COMPLETION The grantee shall complete the project by the completion date provided in the "TERM OF AGREEMENT" section, above. Upon completion of the project, the grantee shall supply the Conservancy with evidence of completion by submitting: (1) the final design and engineering plans, the completed environmental review document, permit documentation and any other work products specified in the work program for the project; and (2) a fully executed final "Request for Disbursement" form. Within thirty days of grantee's compliance with this paragraph, the Conservancy shall determine whether the project has been satisfactorily completed. If the Conservancy determines that the project has been 0 a City of Newport Beach Grant Agreement No. 04 -075 Page 7 PROJECT COMPLETION (Continued) satisfactorily completed, the Conservancy shall issue to the grantee a letter of acceptance of the project. The project shall be deemed complete as of the date of the letter of acceptance. EARLY TERMINATION AND FAILURE TO PERFORM Prior to the completion of the project, either party may terminate this agreement for any reason by providing the other party with seven days notice in writing. If the Conservancy terminates the agreement prior to the completion of the project, the grantee shall take all reasonable measures to prevent further costs to the Conservancy under this agreement, and the Conservancy shall be responsible for any reasonable and non - cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate, but only up to the undisbursed balance of funding authorized in this agreement. If the grantee fails to complete the project in accordance with this agreement, or fails to fulfill any other obligations of this agreement prior to the termination date, the grantee shall be liable for immediate repayment to the Conservancy of all amounts disbursed by the Conservancy under this agreement. The Conservancy may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph shall not be deemed to limit any other remedies the Conservancy may have for breach of this agreement. LIABILITY The grantee shall be responsible for, indemnify and save harmless the Conservancy, its officers, agents and employees, from any and all liabilities, claims, demands, damages or costs resulting from, growing out of, or in any way connected with or incident to this agreement, except for active negligence of the Conservancy, its officers, agents or employees. The duty of the grantee to indemnify and save harmless includes the duty to defend as set forth in Civil Code Section 2778. This agreement supersedes the grantee's right as a public entity to indemnity (see Gov. Code Section 895.2) and contribution (see Gov. Code Section 895.6) as set forth in Gov. Code Section 895.4. The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the State, its officers, agents or employees, for any liability resulting from growing out of, or in any way connected with or incident to this agreement. • 1 • City of Newport Beach Grant Agreement No. 04 -075 Page 8 LIABILITY (Continued) Nothing in this agreement is intended to create in the public or any member of it rights as a third party beneficiary under this agreement. AUDITS /ACCOUNTING/RECORDS The grantee shall maintain financial accounts, documents, and records (collectively, "records ") relating to this agreement, in accordance with the guidelines of "Generally Accepted Accounting Principles" ( "GAAP ") published by the American Institute of Certified Public Accountants. The records shall include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, and disbursement of all funds related to work under the agreement. Time and effort reports are also required. The grantee shall maintain adequate supporting records in a manner that permits tracing from the request for disbursement forms to the accounting records and to the supporting documentation. Additionally, the Conservancy or its agents may review, obtain, and copy all records relating to performance of the agreement. The grantee shall provide the Conservancy or its agents with any relevant information requested and shall permit the Conservancy or its agents access to the grantee's premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations. The grantee shall retain the required records for a minimum of three years following final disbursement by the Conservancy. The records shall be subject to examination and audit by the Conservancy and the Bureau of State Audits during the retention period. If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors. The Conservancy may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement. COMPUTER SOFTWARE The grantee certifies that it has instituted and will employ systems and controls appropriate to ensure that, in the performance of this contract, state funds will not be used • a City of Newport Beach Grant Agreement No. 04 -075 Page 9 COMPUTER SOFTWARE (Continued) for the acquisition, operation or maintenance of computer software in violation of copyright laws. NONDISCRIMINATION During the performance of this agreement, the. grantee and its contractors shall not unlawfully discriminate against, harass, or allow harassment against any employee or applicant for employment because of sex, race, religion, color, national origin, ancestry, disability, medical condition, marital status, age (over 40) or denial of family -care leave, medical -care leave, or pregnancy- disability leave. The grantee and its contractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. The grantee and its contractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12900 et seq.) and the applicable regulations (California Code of Regulations, Title 2, Section 7285.0 et seq.). The regulations of the Fair Employment and Housing Commission regarding Contractor Nondiscrimination and Compliance (Chapter 5 of Division 4 of Title 2 of the California Code of Regulations), are incorporated into this agreement. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. This nondiscrimination clause shall be included in all contracts and subcontracts entered into to perform work provided for under this agreement. UNION ORGANIZING The grantee acknowledges the state policy contained in Government Code Sections 16645 through 16649, prohibiting the use of state funds disbursed as a grant to assist, promote or deter union organizing. In executing this agreement, the grantee certifies that none of the fund disbursed under this agreement shall be used to "assist, promote or deter union organizing ", as that phrase is defined by Government Code Section 16645(a). The grantee shall: (1) maintain records sufficient to show that any expenditures by the grantee to assist, promote or deter union organizing have not been made from state grant funds; and (2) provide these records to the Attorney General upon request. 0 0 City of Newport Beach Grant Agreement No. 04 -075 Page 10 INDEPENDENT CAPACITY The grantee, and the agents and employees of the grantee, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of the State of California. Without the written consent of the State, this agreement is not assignable by the grantee in whole or in part. TIMELINESS Time is of the essence in this agreement. The Executive Officer shall designate a Conservancy project manager who shall have authority to act on behalf of the Executive Officer with respect to this agreement. The Executive Officer shall notify the grantee of the designation in writing. AMENDMENT Except as expressly provided in this agreement, no change in this agreement shall be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement shall be binding on any of the parties. LOCUS This agreement is deemed to be entered into in the County of Alameda. 0 0 0 0 COASTAL CONSERVANCY Staff Recommendation June 30, 2004 BIG CANYON CREEK RESTORATION PROJECT FINAL DESIGN, ENVIRONMENTAL REVIEW, AND PERMITTING File No. 02 -104 Project Manager: Trish Chapman RECOMMENDED ACTION: Authorization to disburse up to five hundred thousand dollars ($500,000) to the City of Newport Beach to prepare final design and engineering plans, an environmental review document, and permit applications for the Big Canyon Creek Restoration Project. LOCATION: Big Canyon Creek, Newport Beach, Orange County (Exhibit 1) PROGRAM CATEGORY: Resource Enhancement EXHIBITS Exhibit 1: Project Location and Site Map Exhibit 2: Conceptual Restoration Plan Exhibit 3: Letters of Support RESOLUTION AND FINDINGS: Staff recommends that the State Coastal Conservancy adopt the following resolution pursuant to Sections 31251- 31270. of the Public Resources Code: "The State Coastal Conservancy hereby authorizes the disbursement of an amount not to exceed five hundred thousand dollars ($500,000) to the City of Newport Beach (City) to prepare final design and engineering plans, an environmental review document, and permit applications for the Big Canyon Creek Restoration Project, subject to the condition that prior to the disbursement of any funds, the City shall submit for the review and approval of the Executive Officer of the Conservancy a detailed work program, project budget, schedule and the names and qualifications of any subcontractors to be employed for these tasks." Staff further recommends that the Conservancy adopt the following findings: "Based on the accompanying staff report and attached exhibits, the State Coastal Conservancy hereby finds that: Page 1 of 7 a 0 PROJECT NAME 1. The proposed project is consistent with the purposes and criteria set forth in Chapter 6 of the Public Resources Code (31251 - 31270) regarding enhancement of coastal resources. 2. The proposed project is consistent with the guidelines and criteria set forth in the Conservancy's Project Selection Criteria and Guidelines adopted on January 24, 2001." PROJECT SUMMARY: The proposed project will enable the City of Newport Beach to complete the planning and environmental review required to make the Big Canyon Restoration Project ready for implementation. The proposed project is a Tier 2 priority on the Southern California Wetlands Recovery Project (WRP) Work Plan. Big Canyon Creek is a tributary to Upper Newport Bay, one of the highest quality tidal salt marshes in Southern California. The canyon, which is immediately adjacent to the bay, was once a functioning complex of wetland and other habitats. Big Canyon Creek has been severely degraded over several decades due to increased urbanization in the watershed. The creek suffers from loss of habitat diversity, excess erosion and sedimentation, inadequate drainage systems and resultant flooding, infestations of non - native invasive plants, and contaminated urban runoff. Degraded conditions in Big Canyon also adversely affect Upper Newport Bay through excessive sediment loading from erosion, degraded water quality from urban runoff, and periodic destruction of public trails and educational facilities from flooding. The conceptual restoration plan for Big Canyon Creek involves the following elements (Exhibit 2): • Restore historic tidal flows and five acres of tidal wetlands, mudflats and associated habitats at the mouth of Big Canyon by relocating Back Bay Drive and removing fill material from several locations; • Restore a natural complex of and transitions between Bay channels, tidal wetlands, riparian, freshwater marshes, wet meadows and other habitats in Big Canyon; • Remove dredge spoils and invasive non - native plants; • Develop sustainable non - structural filtration methods to improve water quality in Big Canyon Creek and Upper Newport Bay; • Repair flood damage and enhance flood protection; and • Improve public access. For the proposed project, the City will prepare final design and engineering plans, an environmental review document, and permit applications to ready the project for implementation. With funding from the State Water Resources Control Board, the City will also prepare a baseline water quality evaluation in order to design a series of non - structural water treatment components in Big Canyon. The City anticipates that restoration will begin in 2006. Funding for project construction is anticipated from the Wildlife Conservation Board (WCB). The City of Newport Beach is the property owner of the lower Big Canyon Creek watershed. It is an active partner with the County of Orange, California Department of Fish and Game, and Page 2 of 7 EXHIB O M • PROJECT NAME numerous other agencies and community organizations in the management and restoration of Upper Newport Bay. The City has made restoration of Big Canyon a high priority and partnered with Community Conservancy International (CCI) on preparation of the conceptual restoration plan. The City has experience in designing, permitting, and undertaking construction projects, including habitat restoration at Castaways Park, and it is well - qualified to undertake the proposed project. Site Description: Big Canyon Creek is a key tributary to Upper Newport Bay that drains a two - square -mile, urbanized watershed on the southeast side of the Bay in the City of Newport Beach. The 70 -acre project area covers the lower portion of Big Canyon between the Bay and Jamboree Road. The project area includes the City's Big Canyon Nature Park and is partially within the Upper Newport Bay State Ecological Reserve. The project area includes the lower 0.6 miles of Big Canyon Creek, which are unchannelized. Big Canyon Creek once supported a functioning complex of wetlands and upland habitats, including estuarine, mudflats, salt marsh, brackish and freshwater marsh, riparian woodland, and coastal sage scrub. Today, tidal circulation was been cut -off from the creek mouth, the vegetation is dominated by non - native plant species, the ponds are choked with cattails, and unfiltered urban runoff drains through the creek into Upper Newport Bay. Repeated flooding events, particularly during the 1997 El Nino storms, have caused enormous damage to Big Canyon, destroyed habitat and public access, and resulted in significant public costs for road repair and debris removal. The mouth of Big Canyon Creek is severely constricted, draining into the Bay through three 15 -inch culverts. The location of the raised roadbed of Back Bay Drive and a cement dam constructed above it prevent both historic tidal flow and creek flow. Terraces of infertile and saline soils remain barren or are dominated by invasive, non - native species. Despite its degradation, Big Canyon Creek still supports a variety of upland and wetland habitats and provides habitat for 16 endangered and special status bird and plant species. Big Canyon is a primary public access point for Upper Newport Bay and is visited by many thousands of visitors and school groups annually. There is currently one short nature trail through the lower portion of the project area. Damaged boardwalks remain off limits, and interpretive kiosks are old and degrading. The parking lot and portable toilets were constructed in the tidal wetlands area and are subject to regular damage due to storm and tidal action. Upper Newport Bay is the largest functioning full tidal wetland in southern California. The California Department of Fish and Game (DFG) manages 752 acres of the upper bay as an ecological reserve that provides valuable habitat for a diverse array of migratory and resident birds, fish, vertebrates, invertebrates and plants. The threatened and endangered species that use the bay include the salt marsh bird's beak, brown pelican, California black rail, light- footed clapper rail, western snowy plover, California least tem, coastal California gnatcatcher, and Belding's savannah sparrow. The principal threat to fish and wildlife habitat in Upper Newport Bay is from excessive inputs of sediment and nutrients. As a result, open water and subtidal habitats are being converted to mudflats and marsh. Project History: Restoration of Big Canyon has been a priority for resource agencies working at Upper Newport Bay for many years. In the mid- 1980s, serious sewage spills into the Bay via Big Canyon resulted in coordination between the Orange County Sanitation District, the City, DFG and the U.S. Fish and Wildlife Service. In 1989, DFG included Big Canyon restoration in their Page 3 of 7 i ilit. 0 0 PROJECT NAME management plan for the Bay. However, DFG has not had the resources to pursue the project. In the late 1990s, the U.S. Army Corps of Engineers (ACOE) prepared a reconnaissance study for Upper Newport Bay. This study identified Big Canyon as one of the watersheds impacting the Bay through inputs of sediment and urban runoff, but the ACOE's subsequent Ecosystem Restoration Project focuses solely on the Upper Bay and its San Diego Creek tributary. In February 2002, CCI submitted a proposal to the Coastal Conservancy to undertake technical studies and to prepare a restoration plan for Big Canyon as part of the Southern California Wetlands Recovery Project (WRP). In October 2002, the Conservancy awarded CCI a $167,000 grant to prepare a conceptual restoration plan for Big Canyon. The City of Newport Beach contributed an additional $110,000 to this planning effort. The conceptual restoration plan was completed in April 2004. The proposed project will be undertaken in coordination with several other planning and restoration projects currently underway in the Bay and its watershed. These include the Upper Newport Bay Ecosystem Restoration Project, a $38 million project headed by the ACOE that will remove approximately 2.1 million cubic yards of sediment from the bay in order to improve tidal circulation and enhance wetland habitats. Proposition 12 (2000) directed the Conservancy to be the steward of up to $13 million for the Ecosystem Restoration Project. In addition, the ACOE, in partnership with the County, is preparing a Watershed Management Plan for the San Diego Creek watershed that includes a major focus on erosion and sediment transport within the watershed. In 2000, the Conservancy and the County completed a related enhancement plan for the lower San Diego Creek watershed. This enhancement plan looked at habitat, water quality, and recreation issues, with specific recommendations to reduce downstream sedimentation. The Conservancy has also contributed $500,000 to restoration along Serrano Creek, a tributary to San Diego Creek, which will significantly reduce sediment input to the Upper Newport Bay. PROJECT FINANCING: Coastal Conservancy $ 500,000 CA Regional Water Quality Control Board 200,000 City of Newport Beach 80,000 City of Newport Beach (in -kind) $ 20.000 Total Project Cost $ 800,000 The proposed project will be funded primarily by the Coastal Conservancy, the California Regional Water Quality Control Board (Santa Ana Region) and the City of Newport Beach. Staff anticipates that the Conservancy's contribution will be funded with monies appropriated to the Conservancy from Proposition 40, the "California Clean Water, Clean Air, Safe Neighborhood Parks and Coastal Protection Act of 2002." Allowable uses under this Act include restoration, and protection of land and water resources. The proposed project will restore and enhance Big Canyon Creek, a coastal watershed, and will further efforts of the WRP to acquire, restore, and enhance coastal wetland and coastal watersheds in Southern California. The project is included on the WRP Work Plan. Proposition 40 also requires that the Conservancy give priority to grant projects with matching funds. The proposed project is supported by the commitment of the Regional Water Quality Control Board and the City of Newport Beach to provide substantial matching contributions. Page 4 of 7 liii e 0 PROJECT NAME CONSISTENCY WITH CONSERVANCY'S ENABLING LEGISLATION: Conservancy funding of the Big Canyon Creek Restoration Project — Final Design, Environmental Review, and Permitting would be undertaken pursuant to Chapter 6' of the Conservancy's enabling legislation, Public Resources Code Sections 31251- 31270. Pursuant to Section 31251, the Conservancy may award grants to public agencies to enhance coastal resources that have lost natural or scenic value because of natural or human - induced events. The proposed project will enhance coastal resources that have been severely degraded by facilitating the restoration of wetland and riparian habitat along Big Canyon Creek, enhancing habitat connections between Big Canyon and Upper Newport Bay, and improving the quality of water entering Upper Newport Bay. The project will also facilitate enhancement of habitats along a portion of the Bay's perimeter. Section 31252 provides that the area proposed for enhancement be identified as requiring public action to resolve existing or potential resource protection problems. Consistent with Section 31252, the City of Newport Beach's Local Coastal Program calls for the preservation of environmentally sensitive habitat areas, including Big Canyon and Upper Newport Bay. This requires public action. Consistent with Section 31253, the amount of proposed Conservancy funding for this project was determined by the total amount of funding available for coastal resource enhancement projects, the fiscal resources of project partners, and the urgency of the project relative to other eligible coastal resource enhancement projects. In addition, in recommending funding of this project, staff has also considered the factors typically used to determine project eligibility and priority as described in detail in the "Consistency with Conservancy's Project Selection Criteria and Guidelines" section, below. CONSISTENCY WITH CONSERVANCY'S STRATEGIC PLAN GOAL(S) & OBJECTIVE(S): Consistent with Goal 5 Objective A, the proposed project will facilitate the restoration and enhancement of coastal wetland habitat and will further the goals of the Southern California Wetlands Recovery Project. Consistent with Goal 5 Objective C, the proposed project will result in the removal of invasive species and replacement with native vegetation. Consistent with Goal 6 Objective A, the proposed project will finalize plans to restore and enhance a coastal watershed. Consistent with Goal 6 Objective B, the proposed project will assist in the improvement of water quality in Big Canyon Creek and facilitate efforts to meet water quality standards in Upper Newport Bay. Page 5 of 7 0 a PROJECT NAME CONSISTENCY WITH CONSERVANCY'S PROJECT SELECTION CRITERIA & GUIDELINES: The proposed project is consistent with the Conservancy's Project Selection Criteria and Guidelines adopted January 24, 2001, in the following respects: Required Criteria 1. Promotion of the Conservancy's statutory programs and purposes: See the "Consistency with Conservancy's Enabling Legislation" section above. 2. Consistency with purposes of the funding source: See the "Project Financing" section above. Support of the public: The restoration of Big Canyon Creek is supported by the federal, state, and local agencies and nonprofit partners working to protect and enhance Upper Newport Bay. This includes the City of Newport Beach, the County of Orange, the California Department of Fish and Game, the U.S. Fish and Wildlife Service, Regional Water Quality Control Board (Santa Ana Region), the volunteer Newport Bay Naturalists and Friends, Orange County Conservation Corps, Sea and Sage Audubon, and numerous other conservation organizations. The conceptual restoration plan was developed with input from agency and public stakeholders. The project was selected by the 17 state and federal agency partners of the WRP for inclusion on the WRP Work Plan. Support letters are provided in Exhibit 3. 4. Location: The project area is located within the coastal zone in the City of Newport Beach, County of Orange. 5. Need: For several years, federal, state, and local agencies have recognized the need to restore the Big Canyon area, but have not had the funding or capacity to undertake the project. The City has now taken the lead on the project and secured funding from a variety of local sources, but additional funds are still needed. Without Coastal Conservancy funding, the City will not be able to undertake the project. 6. Greater - than -local interest: The proposed project will benefit the Upper Newport Bay ecosystem. Upper Newport Bay comprises the largest functioning saltmarsh ecosystem in southern California. The bay provides valuable habitat for a diverse array of migratory and resident birds, fish, vertebrates, invertebrates and plants. Several threatened and endangered species use the bay and perimeter uplands. Preservation and enhancement of the Upper Newport Bay ecosystem, including Big Canyon, is a critical element of the WRP Regional Strategy for recovery of Southern California's coastal wetlands. Additional Criteria 7. Resolution of more than one issue: The proposed project will address several issues including habitat restoration, water quality, flood management, and public access for recreation and education. 8. Leverage: See the "Project Financing" section above. 9. Readiness: The City is ready to undertake the final planning and design and the preparation of CEQA documents, permit applications, and construction documents immediately. Upon Page 6 of 7 0 PROJECT NAME 0 completion of this phase of the project, the City anticipates moving directly into project construction with funding from the Wildlife Conservation Board. 10. Realization of prior Conservancy goals: See "Project History" above. 11. Cooperation: The proposed project will be undertaken as a cooperative effort of the City and CCI. Several other agencies including the County, DFG, U.S. Fish and Wildlife Service, the Regional Water Quality Control Board, ACOE, Coastal Commission and the Newport Bay Naturalists will also participate in the project. CONSISTENCY WITH LOCAL COASTAL PROGRAM POLICIES: The City of Newport Beach's Local Coastal Program designates Upper Newport Bay and the lower reach of Big Canyon as environmentally sensitive areas (ESA), and ESA Policy 1 states that these areas should be preserved and protected. ESA Policy 4 states that the City shall continue to work with state and local partners to address sedimentation problems in the Bay. The proposed project will facilitate restoration of Big Canyon Creek, which will also enhance Upper Newport Bay by reducing inputs of sediment, nutrients, and other contaminants, and increasing the quality of wetland and upland habitats in the Bay's ecosystem. Therefore, the proposed project is consistent with the goals and objectives of the LCP. COMPLIANCE WITH CEQA: The proposed project will only involve preparation of planning documents for possible future actions and is therefore statutorily exempt from the provisions of the California Environmental Quality Act, pursuant to 14 California Code of Regulations Section 15262. Consistent with that section, the project will consider environmental factors through preparation of an environmental review document and permit applications. Recommended changes to avoid, reduce or mitigate environmental impacts will be integrated into the final construction and engineering documents. Upon approval, staff will file a Notice of Exemption for this project. Page 7 of 7 0 By THE rI OF h .zdq CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 519 November 9, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Big Canyon Creek Restoration Project— Phase 11 (State Coastal Conservancy Grant Portion) ISSUE: With notification of the recent receipt of a $500,000 grant for the Big Canyon Creek Restoration Project from the State Coastal Conservancy (SCC), should the City accept the grant and amend its existing contract with Community Conservancy International (CC[) to complete the planning associated with the Project? RECOMMENDATIONS: 1. Direct the staff to accept a grant from the State Coastal Conservancy (SCC) in the amount of $500,000 for the Big Canyon Restoration Project, Phase II (Planning, Engineering, and Construction Drawings); 2. Authorize the City Manager to amend an existing Professional Services Agreement with Community Conservancy International (CCI) to reflect the SCC grant and the Phase II Scope of Work. DISCUSSION: Background: Newport Bay is Newport Beach's most treasured environmental asset. From the ecological reserve and parkland in the Upper Bay to the boating, residential, and visitor - serving uses in the Lower Bay, Newport Bay is home to six endangered species, the nation's largest small craft harbor, tour and charter boat operations, more than sixty different commercial ventures, rowing clubs, yacht races, millions of visitors annually, and more. Upper Newport Bay — including its ecological reserve (administered by the California Department of Fish and Game), its regional park (administered by the County of Orange) and the access provided by Back Bay Drive (administered by the City) — is one of California's more challenging resources to manage and protect. Several major and • Big Canyon Creek Restoration Project — SCC Grant November 9, 2004 Page 2 complex Upper Bay projects involving a multitude of agencies are underway today, including: • Upper Newport Bay Ecological Restoration Project. This US Army Corps of Engineers -led (US ACE) study is the "Big Dredge" set for Fall 2004. The dredging project will be about three times as large as the last dredging project, with up to $13.5 million in funds coming from Proposition 12 (approved by the voters in March 2000) and another $20 million from the federal government. This $33.5 million project is cost - shared 65 % -35% between the federal government and state /local partners. • Newport Bay /San Diego Creek Watershed Feasibility Study. This US ACE -led Study looks at ways to reduce sediment and nutrient deposits in the Upper Bay by keeping the sediment at its source. The Study is identifying locations in the San Diego Creek watershed that will catch sediment, treat runoff (in part via the IRWD's Natural Treatment System or "NTS" project), and preserve and restore habitat. • Sediment/Nutrient TMDL Compliance. To comply with recently- adopted total maximum daily loads (TMDLs) that limit sediment and nutrients into the Bay, the City helps fund ongoing monitoring and maintenance of upstream environments to meet the TMDLs' limits. Even with these three major efforts, the Upper Bay still faces significant problems relating to the region's heavy use of the Bay as a park, reserve, and local resource. These problems include: • Erosion of the City -, County -, and privately -owned slopes that abut the Bay; • Infestation by non- native plants; • Increased threats to endangered, threatened and species of concern; • Continued serious loss of wetland, saltmarsh, mudflat and transitional habitats; • Trespassing and vandalism in sensitive areas due to a lack of appropriate public access; and • Inputs of contaminated runoff from Bay - adjacent residential and business areas. About CCI. Aware of these concerns, representatives of the Newport Bay Naturalists and Friends discussed Upper Newport Bay's challenges with Community Conservancy International (www.ccint.org). CCI describes itself as "a non - profit organization dedicated to preserving natural lands and waters worldwide and implementing conservation - compatible projects to protect local communities..." CCI recently advocated and planned for two square miles of park and open space in the Baldwin Hills (near Ballona Creek in southwestern Los Angeles). CCI succeeded in securing $36 million in state funding for the Baldwin Hills. The Restoration Project. CCI has focused its attention on Big Canyon Creek, a drainage that receives runoff from two square miles of primarily urbanized watershed, the Big Canyon Country Club and adjacent residences, and that runs through the 58- acre Big Canyon Nature Park, a City park. 489984.1 i Big Canyon Creek Restoration Project — SCC Grant November 9, 2004 Page 3 The City Council approved planning funding for the Project — called the Big Canyon Creek Restoration Project — on January 14, 2003, The Project addresses: • A restoration plan for wetlands and wetlands - related habitats • The needs of endangered and threatened species • Unfiltered urban runoff and impacts on Bay water quality • Drainage needs of golf course, City storm drains and bluffside homes • Public access and connection to Big Canyon Nature Park • Flood prevention • Public agency needs and concerns Big Canyon Creek Area After receiving Council authorization to do so via Resolution 2002 -15 on January 22, 2002, Ms. Feldman and the City jointly applied to the State Coastal Conservancy, via its Southern California Wetlands Recovery Project ( SCWRP), for a grant to complete Phase I of the Project (Planning and Technical Studies). On October 31, 2002, the SCWRP approved a grant of $167,000 for Phase I. The City matched the grant with $110,000 from the Upper Newport Bay Restoration Account. Another $27,000 in in -kind support came from the Newport Bay Naturalists and Friends and from CCI itself. About the Upper Newport Bay Restoration Account. State law and other regulatory agencies (including SB 576 [Johnson] and the National Marine Fisheries Service or • "NMFS ") direct the City to reserve a portion of the revenue it receives from the 489984.1 Big Canyon Creek t7estoration Project — SCC Grant November 9, 2004 Page 4 residences at Beacon Bay as well as mitigation for Lower Bay clockwork for restoration . projects in the Bay. These funds go into an account called the Upper Newport Bay Restoration Account. At the end of June 2002, there was $238,822.39 in this Account (technically a designation of equity within the Tidelands Fund, #230 - 3755). Phase I Work. CCI completed a majority of the Project's Phase One work in Fall 2003. The culmination of the work included public meetings and a consensus by various resources agencies that one identified alternative — called the Historic Tidal Wetlands Alternative — is the project alternative that should provide the best habitat value for Big Canyon Creek. A schematic of the Alternative is Attachment A. What's in Phase II. Phase II continues planning and design work for the Project with the Historic Tidal Wetlands Alternative. Phase II includes a comprehensive study of water quality and hydrology concerns in Big Canyon Creek and the additional public outreach, planning, engineering, and construction drawings required to bring the proposed Project to physical construction. Funding. Earlier in 2004, the State Water Resources Control Board awarded $200,000 to the water quality and hydrology component of Phase II following the submission of a grant application and a competitive statewide review of eligible grant- funded projects. CCI prepared the grant application under the City's direction. In Summer 2004, the State Coastal Conservancy awarded an additional $500,000 to complete the public outreach, planning, engineering, and construction drawings. The grant is contingent . upon a City match of $50,000 for the Phase, an amount that can be contributed in FY 2005 -06 using the Newport Bay Restoration Account or similar funding sources. Your City Council approved an action in February accepting the SWRCB grant and authorizing the City Manager to work with CCI to coordinate the work. Construction. Construction might exceed $5 million. We intend to seek construction funding from Propositions 12, 13, 40, or 50 as additional grant moneys become available. The Wildlife Conservation Board (WCB) has verbally informed us that they will fund part of the construction effort. Environmental Review: Environmental review is not required for this Council action. Public Notice: This agenda item requires standard Brown Act notice. Submitted by: Da a Kiff Assistant City Manager Attachments: Preferred Restoration Alternative • 489984.1 • Big Canyon Creek Restoration Project— SCC Grant November 9, 2004 Page 5 • Exhibit A — Historic Tidal Wetlands Alternative HISTORIC TIDAL WETLANDS ALTERNATIVE WATP M Jt4FF'OVE%�% AREA b3roRt CWTAL ftGHWATV;K WrS9 VWf MAPOW fts6k4 4 IMPROM FJPAPIAN AA1501- MO&AIT. EARTHEN CAM REMOVE NFOCTILF 50I5 L -YlaWAY C105M 0 (AWE Off-N WATER FOND H11,70KIC, WM rr OF'nE?Ai, WrTH FRESHWATER MARSH 1NFWFWZ - AWC1 N ROAD MT} PAM % ft-H M IMFWF MAPSH T lZiPARLAN FLANTA weRvE 4 imppox GREEK RIPARIAN HABITAT `—.—FS,5M -nPAL- WMANPS • 490841