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HomeMy WebLinkAboutRes2012-035 Sponsored by: Hunt iron CITY OF SEWARD, ALASKA RESOLUTION 2012 -035 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE EXPENDITURE OF CITY FUNDS WITH THE U.S. ARMY CORPS OF ENGINEERS FOR DREDGING IN THE SMALL BOAT HARBOR, AND APPROPRIATING FUNDS WHEREAS, dredging the Small Boat Harbor ( "SBH ") is critical to allow for safe navigation of vessels and to avoid vessel grounding incidents as have occurred due to build -up of sediment in the Small Boat Harbor; and WHEREAS, the U.S. Army Corps of Engineers has obtained funds to dredge the federal portion of the SBH and the City must pay to dredge the City's portion of the SBH; and WHEREAS, combining the City's portion of the work with the federal portion of the work appears to be the most cost effective approach; and WHEREAS, the City will utilize Commercial Passenger Vessel (CPV) tax funds to pay for a majority of the City's dredging costs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to expend City funds with the U.S. Army Corps of Engineers for the purpose of dredging in the Small Boat Harbor. Section 2. Funding in the amount of $614,000 is hereby appropriated as follows: 1) $331,560 from the Commercial Passenger Vessel Fund Account No. 807- 0000 - 3071 -0276 to the `Dredging' Contracted Services Account No. 276 - 2763 -5390, and 2) $282,440 from the Harbor Maintenance Repair and Replacement Fund ( "MRRF ") Reserves Account No. 402 - 0000 -3071 -0276 to the `Dredging' Contracted Services Account No. 276 - 2763 -5390. Section 3. This resolution shall take immediately after adoption. CITY OF SEWARD, ALASKA RESOLUTION 2012 -035 r. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29 day of May, 2012. THE CITY OF SEWARD, ALASKA David Seawar s Mayor AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: None ABSTAIN: None ATTEST: / 4, / ihanna Kinney/ C City Clerk 000000suilios� 4 0 •A < asrr it y 4 (City Seal) : av,, e ? I% ®•• • • • • if * **101e A • •rrr op irr� r y �� •,, ..,E OF ' p'P.®'. Council Agenda Statement of Meeting Date: May 29, 2012 4 y Through: City Manager Jim Hunt 4 101ris From: Harbormaster Mack Funk Agenda Item: 2012 Budget Amendment for Harbor Dredging Project BACKGROUND & JUSTIFICATION: In 2009 the Harbor made plans with the US Army Corps of Engineers (COE) to dredge the Seward Small Boat Harbor to try to eliminate vessel groundings and to provide safer navigation. That project was not initiated beyond the planning stage due to federal budget constraints. (2003 and 2009 agreements with the Corps of Engineers are attached). Due to the federal uncertainties, the harbor staff did not anticipate that the dredging might be funded in Washington D.C. and did not request anything from Council in the 2012 -2013 Harbor budgets. However, late in January 2012, City staff was informed that Congress had appropriated funds for the federal portion of the work. Part of the dredging is the federal government's responsibility and part is the City of Seward's responsibility. The City potentially could save significant money by piggybacking on the Corps project and avoiding the large mobilization and demobilization expense. In 2009, in preparation for the work, the COE sampled and tested the sediments to be dredged. It was determined that some of the dredged material is contaminated with low levels of hazardous chemicals specifically diesel range constituents (DROs) and polycyclic aromatic hydrocarbons (PAHs). After dredging, the contaminated sediments will be stored in a managed upland "land farm" operation in order to allow natural degradation. Meanwhile, the uncontaminated sediments are suitable for in -water disposal at a deep spot in Resurrection Bay just outside the harbor entrance. In accordance with the 2003 Cooperative Agreement between the COE and the City, the City has granted permission to the COE and its contractor to place the contaminated dredged materials at a four acre site on the east side of SMIC. This is the area formerly leased to the Racing Lions. The City will hire a consultant to prepare a site specific Stormwater Pollution Prevention Plan (SWPPP) under the construction general permit (CGP). At a minimum, site best management practices will include installation of storm water control measures such as silt fence which will remain in place until the new soil is stabilized or removed from the site. The sediment is expected to be placed at a distance of greater than 75 feet from waters of the United States and drinking wells are not located within 200 feet of the site perimeter. The sediments will be moved to SMIC by truck or by barge and then deposited in a shallow layer (14 inches thick or less). The dirt will be sampled and tested. There will be 40 DRO samples taken and 11 PAH samples taken. If the contaminants are above state cleanup standards, a remediation work plan that describes land spreading and re- sampling will be developed, based on the findings in the field. It is too early to estimate the extent and cost of that work. PACAB voted unanimously to support the project. dCD The COE is responsible for approximately 56% of the sediments (and 67% of the estimated cost): Uncontaminated volume Contaminated sediments COE 1852 cubic yards 4896 cubic yards City 2898 cubic yards 2304 cubic yards Total estimated volume = 11,950 cubic yards The COE will pay the contractor's mobilization and demobilization costs. The City, in addition to furnishing and preparing the dredged material disposal site, will also be required to pay for the management and disposition of the sediments. And, the City will need to pay the COE, in advance no later than July 16, 2012 for the contractor's work dredging the sediments from the local responsibility portions of the harbor. As shown on the attached bid tabulation form, the City's quantities and costs are listed as optional items. Since the cost was not included in the Harbor's budget, the 2012 budget will need to be amended to reflect that additional cost. The COE has advised the City that the contractor proposal opening date is June 1. At that time, the City will learn what our actual project costs will be. INTENT: CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here):) Page 35- 1. "Continue to support, promote, enhance and develop harbor facilities to X accommodate Seward's growing demand for marine transport facilities." 2 Strategic Plan (document source here): Page 7- X "Complete the renovation of the Small Boat Harbor." 3. Other (list): FISCAL NOTE: The COE estimates a total cost of $1.8 Million for all of the dredging. The City's work is currently estimated at $614,000 (including the upland disposal site preparation). It appears that at least 54% (331,560) of the cost can come from the Commercial Passenger Vessel (CPV) or cruise ship tax (see February 28 letter to the Borough). As you may recall, these funds can only be used for certain restricted purposes. Of the City's estimated total volume of 5150 yards, 2400 yards are in the area of Z Float that will benefit the Coast Guard cutter Mustang and the City's fire boat. These boats respond to life safety emergencies so; the City will use Commercial Passenger Vessel (CPV) Tax funds to pay for the dredging in the area of Z Float. CPV monies (Fund 807) will also be used to pay for the upland site preparation and the sampling and analysis of the contaminated sediments. The Harbor Enterprise Fund will pay the remaining costs of the project. The latest figures show that there is $724,000 in the Harbor Maintenance Repair and Replacement (MRRF) Fund. This project cost of $282,440 would reduce the MRRF balance to $441,720. Those funds are not currently encumbered, but it is planned that they will be used for the replacement of D Float in 2013. If, at the COE bid opening on June 1, the contractor prices exceed the engineer's estimated cost and the City's budget allocation, the City has several options: 1. Fund the work from the CPV account only, since these funds are restricted. 2. In addition fund the area designated as Local area 3 at the 50 -ton boat -lift. t �� Approved by Finance Department: & if -au+ ATTORNEY REVIEW: Yes N X RECOMMENDATION: 0 City Council approve Resolution 2012 - - authorizing the City Manager to expend City funds with the U.S. Army Corps of Engineers, in an amount not to exceed $564,000 representing the City's portion of the dredging costs of the project and an additional amount of $50,000 for the preparation of the dredged material site, for a total appropriation of $614,000. I 0 Y