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ADOPT A RESOLUTION TO FINALIZE A CLAIM APPLICATION FOR REIMBURSEMENT FROM THE US COAST GUARD NATIONAL POLLUTION FUNDS CENTER
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager to take all actions, including applying for, signing, finalizing, and accepting a claim reimbursement up to $921,550.96 from the US Coast Guard National Pollution Funds Center.
2. Authorize the City Manager to certify the City has and will comply with all statutory and regulatory requirements related to any reimbursement of funds.
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
On September 4, 2023, the derelict, World War II-era tugboat Mazapeta sank in Little Potato Slough in the Sacramento San Joaquin Delta near the end of Eight Mile Road. The sinking caused a significant diesel fuel and engine oil spill in the waterway just upstream of the City’s Delta Water Treatment Plant Intake Pump Station (IPS). The Municipal Utilities Department (MUD) operations staff immediately shut down the IPS to prevent contamination of the water supply, intake, and water treatment plant infrastructure.
On October 18, 2023, the City Manager approved the MUD request for emergency procurement authorization for costs associated with the removal and salvage of the sunken vessel in accordance with the City Emergency Contract and Procurement Administrative Policy (17.05.150). By April 29, 2024, the final expenses and payments for the salvage and disposal of the tugboat Mazapeta were complete. Water supply to the City’s customers remained protected during the entire salvage effort. By June 18, 2024, by Resolution 2024-06-18-1211, the City Council ratified the emergency procurement and approved findings under Stockton Municipal Code section 3.68.070, which support and justify an exception to the competitive bidding process.
If approved, this resolution will authorize the City Manager to take all actions, including signing, applying for, accepting, and finalizing the claim application and other documentation to receive up to $921,550.96 from the US Coast Guard National Pollution Fund Center (NPFC) through the Oil Spill Liability Trust Fund (OSLTF) to partially reimburse costs for the efforts needed by MUD to remove, salvage, and dispose of the sunken tugboat Mazapeta.
DISCUSSION
Background
When the World War II-era tugboat, Mazapeta, sank on September 4, 2023, it was moored at the old Herman and Helen’s Marina along the Empire Tract Road levee near the end of Eight Mile Road in the Delta. The sinking caused a significant diesel fuel and engine oil spill into Little Potato Slough. The vessel sank outside the City’s jurisdiction but less than a mile from the City’s IPS. When notified of the spill, MUD operations staff shut down the IPS to prevent contamination of the water supply, intake, and water treatment plant infrastructure. To continue providing potable water, MUD relied on other sources of water supply for the service area.
An oil spill response team was activated including members from the United States Coast Guard (USCG) and other agencies to contain the active spill site and develop a response plan. According to the Unified Command’s spill response objectives, once the petroleum was removed, the Unified Command’s involvement with the vessel was complete.
Allowing the sunken vessel to remain near the water supply intake would present a threat to the quality of the City drinking water supply. An agreement between the City of Stockton/MUD, San Joaquin County, and the San Joaquin County Sheriff’s Office granted MUD jurisdiction, under California State Harbor and Navigation Code sections 550 and 551 to take a direct transfer of the vessel from USCG, through a qualified salvage and disposal contractor, when the vessel was refloated as part of the Unified Command’s spill removal plan.
On October 18, 2023, the City Manager approved a request for emergency procurement authority to expedite the salvage and disposal of the vessel in accordance with City Emergency Contract and Procurement Policy (17.05.150).
By January 17, 2024, the USCG team completed the work to repair the leaks, refloat the tugboat, and remove the petroleum products (est. 17,000 gallons). Once the tugboat was refloated, it was turned over to the City for salvage and disposal. On January 18, 2024, MUD contractor, Lind Marine, Inc., performed a six-hour dead ship tow to bring the tug dockside at the contractor’s shipyard at Mare Island awaiting the next dry dock availability. The Mazapeta remained dockside at Mare Island until final disposal on March 27, 2024.
Present Situation
Following the removal of the Mazapeta, MUD operations staff brought the IPS back into service. Water supply to the City’s customers remained protected during the entire salvage effort. Currently, MUD staff are working to recover the expended funds from possible responsible parties, organizations, and various State and Federal agencies. The MUD has submitted a reimbursement claim through the OSLTF that may partially reimburse costs for the efforts MUD took to remove, salvage, and dispose of the Mazapeta.
If approved by the City Council, MUD staff will communicate with the NPFC, provide all documentation needed, and complete the application to apply for up to $921,550.96 in funding from OSLTF. The funding will be used to help recover project funds expended by MUD for the removal and disposal of the Mazapeta.
FINANCIAL SUMMARY
If approved by OSLTF, funds provided under the reimbursement claim will help recover expended costs from the Water Enterprise Fund - Delta Water Treatment Plant Production and Water Purchase accounts.
This action has no impact on the General Fund or any other unrestricted funds.