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HomeMy WebLinkAboutMINUTES - 10061998 - C88 acounty Centra TO: BOARD OF SUPERVISORSosta FROM: WATER COMMITTEE Supervisor Joe Canciamilla, Chair Supervisor Gayle B. Ullkema DATE: September 1, 1998 SUBJECT: REPORT FROM WATER COMMITTEE ON MAINTENANCE OF SUISUN AND NEW YORK SLOUGH CHANNELS; SHORT TERM DREDGING, DISPOSAL AND LONG TERM COUNTY/PORT OF STOCKTON LOCAL SPONSORSHIP ISSUES SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. Direct Water Agency staff to terminate work with industry on long-term local sponsorship of Suisun and New York Slough Channels, due to industry's inability to provide closure in provision of a financial indemnity agreement to the County. 2. Direct Water Agency staff to continue work with the Port of Stockton relative to sponsorship and payment mechanisms to accomplish dredging and disposal in the future. 3. Direct Water Agency staff to complete work on the short-term cost sharing for disposal of dredged materials on Winter Island, if and when industry provides funds for this purpose. FISCAL IMPACT Staff and attorney costs for work on the contract, should industry provide the funds for cost-share, as well as the longer-term issues will be paid by the Water Agency (funds have been set aside for this purpose). Staff time and attorney costs are expected to be minimal for the contract and this planning phase (up to $2,500). Some potential remains for the County to be reimbursed in the longer-term, once sponsorship and payment mechanisms have been set up by the County and/or the Port of Stockton. 3ACKGROUND/REASONS FOR RECOMMENDATIONS On August 10, 1998, the Board's Water Committee directed staff to inform industry's representatives that the Committee has no interest in continuing to work with industry unless industry is prepared to sign the Financial Indemnity Agreement or other financial mechanism at this time. The Water Committee also requested that any industry response or appeal be in writing prior to the date of this Board Report. The Water Committee will no longer discuss this issue with industry at their monthly meetings. Staff informed industry in person and in writing on August 10, 1998. CONTINUED ON ATTACHMENT: __V_YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES SUPT; VISOR JOE CANCIAMILLA S PE ISOR GAYL B. UILKEMA ACTION OF BO,�Rl)ONor�n ,�9� APPROVED AS RECOMMENDED M OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT - - - - ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN, Contact: Roberta Goulart (925-335-1226) ATTESTED octo r 6, W6 cc: Community Development Department (CDD) PHIL BATCHELOR,I CLERK OF County Counsel THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY , DEPUTY SUISUN/NEW YORK SLOUGH DREDGING WATER COMMITTEE Page 2 In 1992 at industry's request, the Board of Supervisors directed staff to work with the Corps, amending the prior agreement naming the Port of Stockton asLocal Sponsor for the Suisun and New York Slough channel sections, located in the east Contra Costa County area. The Corps has agreed to County amendments and this agreement is ready for the County to sign to become local sponsor. The last several 'years have been dedicated to a financial cost pass through agreement needed before the County will assume sponsorship. Industry has recently decided they cannot sign this agreement, and have been reevaluating their options, returning to and negotiating with the Port of Stockton. The Port has indicated to industry that the Pork may continue sponsorship if certain conditions are satisfied, but is strident in their assertion that the County should be the sponsor. Industry, to date, has paid no money toward the deepening, casts of disposal or maintenance activities in the channels from which they benefit. The Port has informed the County of the importance of the Port and County resolving this issue together, with the two agencies now expediting resolution of this issue. Board of Supervisors Water Agency 1 ��lCC (fix- }fci ,Govein g Bored) County Administration Building Costa Jim hers t Pine Street lot DISTRICT 4th Floor,North Wing Cou 1 ty y1 IS Tame TRICT Martinez,California M53-1229 ..' Morena Garber "( 3rd DISTRICT Mark to aaulnler 4th DISTRICT s Joe CanciamUia 5111 DISTRICT The Industry Group August 25, 1998 c/o Jim Pezzaglia Gordon,DeFraga,Watrous and Pezzaglia P.O. Box 630 Martinez,CA 94553 Dear Mr. Pezzaglia: At our meeting on July 13, 1998,the industry group agreed to pay$45,000 to the Winter Island Reclamation District to cost share for disposal of approximately 72,040 cubic yards of dredged material onto Winter Island levees. Industry agreed to do this cast-share basedd on two things, first,that the County would contract with Winter Island to accomplish transfer of funds, and second,that the County and/or the Port be able to use the site for disposal in 1999(we negotiated with the Reclamation District for use of the site for at least 125,000 cubic yards in 1999). No other conditions were stipulated in this agreement. County staff clearly stated at that time that we would prepare a contract after receipt of the$45,000, as we no longer have the resources to do so if no funds are forthcoming. Since the last meeting, material to be dredged has increased to over 140,000 cubic yards, almost doubling in quantity, also increasing the cost. In addition,the Winter Island Reclamation District is incurring an additional$8,404 in water quality monitoring costs, above and beyond the costs they were already incurring. It is becoming increasingly important that the Reclamation District get the funding promised to them., and soon. Can you please help in expediting this? I will be happy to share the contract with you when it has been drafted, and will consider any comments you may have. But we need to expedite this, and bring some level of closure to at least one of the issues facing us. Our contract will be short, to the point,and will not include industry, so no liability will be incurred by industry, or their representatives. I look forward to your immediate resolution of this matter. Sincerely, Roberta Goulart Executive Officer CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT TO: WATER COMMITTEE Supervisor Joe Canciamilla,Chair Supervisor Gayle B. Uilkema FROM: Roberta Goulart DATE: August 6, 1998 SUBJECT: UPDATE ON SUISUN,NEW YORK SLOUGH SHORT AND LONG TERM DREDGING AND SPONSORSHIP ISSUES LONG TERM ASSUMPTION OF LOCAL SPONSORSHIP Citing the Joint and Several Liability clause of the Financial Indemnity Agreement as impossible, (and they will not sign the agreement), industry and their representatives have met with the Port of Stockton on August 4, 1998 to explore opportunities for the Part keeping local sponsorship responsibility. Industry is reevaluating their options for assessment of fees to cover costs of channel maintenance dredging and disposal with the Port and the County over the long- term. A detailed report detailing assessment mechanisms has been prepared by our attorney, Larry Mallon(and paid by industry), and is attached. Industry has promised a report to the County(due Aug 3 and delayed for several weeks), answering the many questions which have arisen, and perhaps providing some direction. This is complicated by the fact the Corps of Engineers.Headquarters in Washington D.C. has informed the County(Aug 5)that the Amendment to the 1982 Contract with the Port of Stockton, transferring sponsorship to the County is ready for the County to sign(with the two changes we had requested). This means that if the County is to assume sponsorship, the need for a cost pass-through agreement is necessary now. SHORT TERM DREDGING AND DISPOSAL ON WINTER ISLAND IN AUGUST 1998 At the last meeting the County held with industry on July 13,we were able to get a commitment from industry to share disposal costs on Winter island. Industry agreed to pay$45,000 for preparation work to receive dredged materials and requested the County to include in their contract between the County and the Winter Island Reclamation District, a provision to use the island for disposal in 1999. Staff has negotiated this provision with the Reclamation District. We informed industry during this meeting that we would not draft a contract until such time as we receive the funds from industry. To date,we have not received these funds. CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT TO: NATER COMMITTEE Supervisor Joe Canciamilla, Chair Supervisor Gayle B. Uilkema FROM: Roberta Goulart DATE: July 14, 1998 SUBJECT: MEETING WITH INDUSTRY REGARDING COUNTY LOCAL SPONSORSHIP OF SUISUN,NEW YORK SLOUGH AND 1998 DREDGING, DISPOSAL ON WINTER ISLAND LEVEES Staff met with representatives from the seven east county industries which use the Suisun and New York Slough Channels and industry attorneys yesterday July 13, 1998. BACKGROUND On June 19, 1998, staff sent a memo (attached)to the Water Committee requesting direction on how to proceed due to the lack of progress on both the short term(upland disposal on Winter Island) and the long term(assumption of local sponsorship) issues. As you recall, the need to act arose from the inability of industry to come to closure in their contract with the Winter Island Reclamation District to cost-share for disposal of dredged materials onto Winter Island's levees. It was becoming increasingly imperative for a contract to be finalized to enable this dredging episode to go forward. In short, since that time,the reclamation district agreed to move ahead despite the lack of funds from industry, and signed a contract to enable site preparation work to begin, essentially allowing dredging,and disposal to occur, and enabling the use of the 1.2 million dollars we worked so hard to earmark for this project. This,coupled with the notable lack of progress on the financial indemnity aspect of industry's commitment to the County as local sponsor, caused staff to propose a plan of action allowing the County to assume control of the process. Staff obtained approvalfrom Supervisor Canciamilla(with Supervisor Uilkema's support)to move ahead with this plan. UPDATE In accordance with that plan of action, staff has hired attorney Larry Mallon to handle the contract aspects of both the short-term contract with Winter Island and will provide his expertise on the long-term options for assessment and collection of costs,-if the County becomes local sponsor. (I mentioned that industry has gone to the Port of Stockton to see what kind of assessment could be negotiated in the last memo). Staff and our new attorney met with industry Monday July 13, 1998, sending out a detailed agenda(attached) in advance with the request that industry be prepared to make some decisions at this meeting. We did get closure on the Winter Island issue, industry will pay the$45,000 to the reclamation district to cost share for disposal on the island. Industry funds will provide containment dikes for sediment and pay engineering costs via a contract between the County and the Reclamation District. No decisions were reached on long-term issues. Industry agreed to respond to the issues posed by staff within three weeks. The core of the continuing problem rests with the joint and several liability clause contained in the Financial Indemnity Agreement, which the County must have before we can sign the Amendment with the Corps and Port to become Local Sponsor. Industry has said they will not sign this agreement, and much discussion centered on what we can do about it. Specifically, other types of assessment mechanisms were outlined,but staff has indicated to industry that we do not have the resources to spend another two years on this problem, and staff proposed signing the F&I as an interim agreement, to be superceeded by an assessment district or other mechanism. This would allow the County to become sponsor while working toward an appropriate assessment mechanism, and while being reimbursed for our time and other expenses. Some change to the joint and several liability clause, and a commitment from the County to allow the F&I Agreement to be superceeded are integral to the success of this proposal. While industry formulates its response to the County, our attorney will be drafting the contract for Winter Island, and providing a report on assessment mechanisms(to be paid by industry,through the County.