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AUTHORIZE APPROVAL OF FINDINGS AND RATIFY FINAL EXPENSES FOR THE SALVAGE AND DISPOSAL OF THE DERELICT MOTOR VESSEL AURORA
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 which support and justify an exception to the competitive bidding process.
2. Ratify the final expenses in the amount of $8,290,874.96 to Lind Marine of Vallejo, California, and associated contractors, for all costs related to the salvage and disposal of the derelict, motor vessel (M/V) Aurora.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
On May 22, 2024, the derelict cruise ship, M/V Aurora, (built in Hamburg, Germany in 1955 and christened, Wappen von Hamburg) sank while moored along Empire Tract Road in the Delta. The sinking of the 297 ft., 2,500 ton vessel caused a significant spill of diesel fuel, engine oil and other pollutants into Little Potato Slough just upstream of the City’s water intake pump station (IPS). The pump station supplies raw water to the water treatment plant, which serves nearly 200,000 customers daily. Upon notification by the US Coast Guard, Municipal Utilities Department (MUD) staff immediately shut down the IPS to prevent contamination of the water supply, intake, and water treatment plant infrastructure. To accommodate the water shutdown, water was supplied from other available sources.
On May 23, 2024, a Unified Command, including the US Coast Guard (USCG), California Department of Fish & Wildlife Office of Spill Prevention Response, the San Joaquin County Sheriff’s Office, and City/MUD was established in response to the vessel sinking. The USCG, utilizing monies from the Federal Oil Spill Trust Fund, contracted with Global Diving and Salvage Inc., and gave directions to contain the spill, refloat the vessel, and remove petroleum and hazardous materials.
By June 24, 2024, the refloat of the M/V Aurora and initial pollution removal was accomplished but sinking and the release of additional pollutants into the waterway remained a significant concern. Therefore, on June 27, 2024, the City Manager approved the request for emergency procurement authorization for MUD to secure a qualified contractor to remove and salvage the vessel.
On November 19, 2024, the City/MUD noticed its jurisdiction in accordance with the law provided under California Harbors and Navigation Code sections 550 & 551 and a Memorandum of Agreement with San Joaquin County and the San Joaquin County Sheriff’s Office. This established the vessel as “Marine Debris”, which allowed the transfer of responsibility of the refloated vessel from the USCG to MUD for the removal and salvage the vessel. On final inspection and approval of the USCG, the dead ship tow was completed on December 21, 2024, and the M/V Aurora remained in drydock at Mare Island in Vallejo until pollutant abatement and all other salvage operations were completed on May 13, 2025.
Under Stockton Municipal Code section 3.68.070 and City Manager’s Emergency Contract and Procurement Policy (17.05.150), MUD is required to report to the City Council to ratify all project expenses. Staff recommend that the City Council ratify the final expenses for the removal and salvage of the M/V Aurora in the amount of $8,290,874.96.
DISCUSSION
Background
The City of Stockton already bears significant environmental burdens. CalEnviroScreen, a GIS map viewer tool maintained by the California Office of Environmental Health Hazard Assessment, shows that much of the Stockton Municipal area is in the high 90th percentile for adverse environmental burdens, indicating that these areas are among the most polluted areas in California. Many areas rate 99th percentile for Impaired Waters burdens. This is the worst one percent (1%) of water quality in the state.
The City has made major capital improvements to its drinking water supply and wastewater systems. In 2012, Stockton invested $223 million to construct the Delta Water Supply Project, including an intake on the San Joaquin River at the southwest tip of Empire Tract, 13 miles of raw water pipeline, a 30 million gallon per day advanced water treatment plant, and six miles of treated water distribution pipeline to provide high-quality drinking water to customers within the City’s service area.
When the M/V Aurora, a decommissioned cruise ship, sank in the Delta on May 22, 2024, it was moored at the defunct Herman and Helen’s Marina along Empire Tract Road levee near the end of Eight Mile Road. The sinking of the 297 ft., 2,500 ton vessel caused a significant spill of diesel fuel, engine oil and other pollutants into the waters of Little Potato Slough just upstream of the City’s water intake pump station (IPS). The IPS supplies raw water for the water treatment plant, which serves about 200,000 customers daily. 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. The MUD relied on other sources of water supply for the service area.
A Unified Command, including the USCG, California Department of Fish & Wildlife Office of Spill Prevention Response, the San Joaquin County Sheriff’s Office, and City/MUD, was established on May 23, 2024, to respond to the vessel sinking and spill. The USCG, utilizing the Federal Oil Spill Trust Fund, contracted with Global Diving and Salvage Inc. to contain the spill, refloat the vessel, and remove petroleum and hazardous materials.
By June 27, 2024, the USCG completed the pollution removal including the lightering of 22,000 gallons of oily water and offloading of 3,100 gallons of household hazardous waste from the refloated vessel. According to the Unified Command’s spill response objectives, once the petroleum and waste was removed, the Unified Command’s involvement with the vessel was complete. However, the vessel remained a significant hazard and danger to present and future water quality in the slough, public health and the environment unless removed.
The vessel was inoperable and unfit for any use. The engines on board had not operated since the 1980s. Vessel inspections by the USCG revealed structural deterioration, mold, rotted wood, rusted-through decks, broken pipes, leaking tanks and substantial quantities of solid waste and trash, including rolls of carpet and other construction materials soaked with oily water and other hazardous contaminants including asbestos, lead, hexavalent chromium and various organic toxins.
On August 21, 2024, MUD contracted out for an asbestos survey that found substantial asbestos-containing materials (ACM), lead and PCBs throughout the vessel. ACM was required to be properly contained and removed before the Aurora could be disassembled and disposed of, which added to the total cost (30 garbage bins removed from vessel during abatement). The MUD and State Lands Commission staff reached out for assistance to the California Department of Toxic Substances Control’s (DTSC) Emergency Response unit because DTSC has assisted on past vessel asbestos and hazardous-materials abatement projects. In this instance, however, DTSC determined that they could not assist with asbestos removal because the estimated cost “would go beyond our current budget and capabilities” and because staff were otherwise engaged at wildfire cleanups, statewide.
Allowing the sunken vessel to remain near the City’s water supply intake would present a long-term threat to the City’s drinking water quality. Therefore, on June 27, 2024, the City Manager approved the request for emergency procurement authorization for the removal and salvage of the vessel in accordance with Stockton Municipal Code section 3.68.070 and City Manager Emergency Contract and Procurement Policy (17.05.150), which provides a process for rapidly acquiring needed materials or services for critical, unforeseen government need amid emergency situations, as defined in Chapter 3.68 of the Stockton Municipal Code.
The MUD staff selected the marine contractor, Lind Marine of Vallejo, California as the qualified contractor together with several subcontractors to provide vessel removal, abatement, and salvage services. The City also retained K.D. Moore Associates to perform an initial marine survey of the vessel in accordance with the requirements of the Harbors and Navigation Code sections 550 and 551 to substantiate the motor vessel as “Marine Debris”. Global Diving and Salvage Inc. provided generators, onboard fans and submersible pumps to assist with keeping the vessel afloat over several months while the removal and salvage plans were developed. In addition, Universal Protection Service, LP provided 24 hour, 7 day a week onsite security at the temporary Empire Tract Rd closure (under an encroachment permit from San Joaquin County) while the M/V Aurora was afloat to prevent onboard vandalism and theft of equipment stationed along the roadway.
On November 19, 2024, the City/MUD noticed its jurisdiction in accordance with the law provided under California Harbors and Navigation Code sections 550 & 551 and a Memorandum of Agreement with San Joaquin County and the San Joaquin County Sheriff’s Office. No formal protests were received during the notice period from the vessel owner(s) or any other party. This established the M/V Aurora as “Marine Debris”, which allowed for the permitted transfer of the refloated vessel or hand-off from the USCG to MUD to remove and salvage the vessel through its qualified marine contractor. On final inspection and approval of the USCG, the dead ship tow was completed on December 21, 2024, and the M/V Aurora remained in drydock at Mare Island, Vallejo until pollutant abatement and all other salvage operations were completed on May 13, 2025. Following the removal of the M/V Aurora, MUD operations staff brought the Delta Water Supply Project Intake Pump Station back into service.
Present Situation
The M/V Aurora was one of four large vessels moored in Little Potato Slough, a long-standing problem area with a history of derelict and abandoned vessels in the Delta. Despite multiple failed attempts at enforcement over the years, this cluster of deteriorating ships remained largely unaddressed until recent coordinated salvage efforts began.
In January 2024, a 1940s-era military tugboat Mazapeta was refloated and removed under a joint operation between the USCG and MUD. In September 2024, the owner of the decommissioned Coast Guard lighthouse tender Fir removed it. Currently, the USCG is overseeing removal operations for the sunken minesweeper Chaleur. With the successful disposal of the Aurora in May 2025 and the ongoing removal of the Chaleur, the waterway is finally on track to be fully cleared of derelict vessels, which will help improve water quality conditions, restore safe navigation, and reduce environmental hazards in the area. The MUD, along with other agencies with jurisdiction, will do its utmost to prevent any further mooring of derelict vessels in this waterway.
All City costs incurred to survey, remove, abate, salvage, and dispose of the M/V Aurora and execution of the emergency procurement are included in the following table:
|
Contractors |
Total Amount |
Services |
|
Lind Marine LLC |
$7,908,993.76 |
Primary contractor and subcontractors: Glosten Marine Engineers, Ballard Marine Diving, Terracon, Sterling Environmental, Ponder Environmental & Clean Harbors. |
|
Universal Protection Service LP |
$161,033.18 |
Onsite security services at Empire Tract Rd. closure. |
|
Marsh & McLennan Companies Inc. |
$118,335.00 |
Insurance including protection against environmental exposure and maritime liability during dead ship tow. |
|
Global Diving and Salvage Inc. |
$97,480.42 |
Submersible pumps, electric generators and fans to help keep Aurora afloat. |
|
K.D. Moore Associates Inc. |
$4,732.60 |
Marine survey. |
|
NPFC Vessel Certification Division |
$300.00 |
USCG COFR application fee for dead ship tow. |
|
Total Incurred Costs1 |
$8,290,874.96 |
|
1Total Incurred Costs does not include the offset of $999,932.09 in State Lands Commission Derelict Vessel Program funding discussed below, which brings the actual cost to the City to $7,290,942.87.
Under the City Manager’s Emergency Contract and Procurement Policy (17.05.150 Section 4), the MUD is required to make a record of all emergency purchases of supplies and services of more than $100,000 and report to the City Council for ratification at the next Council meeting or no later than sixty (60) days following execution of the emergency procurement. Based on the 60-day rule, the ratification of the M/V Aurora removal response and costs was scheduled accordingly.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, the City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support and justify an exception:
1. The City’s Delta Water Supply Project Intake Pump Station is a vital component of the City’s water supply portfolio.
2. The sinking of the M/V Aurora resulted in a significant threat to the City’s water supply, intake, and water treatment plant infrastructure.
3. Removing and salvaging the M/V Aurora was necessary to protect public health, in accordance with environmental regulations.
4. Each contractor paid is a responsive and qualified contractor that was available and capable of completing the necessary removal, abatement, salvage, and disposal of the vessel/V Aurora, which was in the best interest of the public.
5. The removal, salvage, and disposal of the M/V Aurora were completed by May 13, 2025.
Staff recommend that the City Council approve findings and ratify final expenses of $8,290,874.96 for the salvage and disposal of the M/V Aurora.
FINANCIAL SUMMARY
The immediate threat to the City's water supply and potential long-term impacts to water quality compelled MUD staff to act swiftly, under the direction of City management, to protect public health, safety, and the environment.
Despite aggressive efforts to secure outside funding to offset the emergency response and salvage costs, the City of Stockton MUD has achieved limited success due to program availability, budget restrictions, and the urgent nature of the incident. Apart from the attempt for funding from the California Department of Toxic Substances Control’s Emergency Response unit, MUD staff also submitted inquiries and applications to multiple state and federal entities including:
• California State Lands Commission Derelict Vessel Program
• BoatUS Abandoned and Derelict Vessel Grant Program
• California Department of Resources Recycling and Recovery
• California Environmental Protection Agency
• National Pollution Funds Center
Most of these agencies either lacked applicable funding, had closed funding cycles, or were unable to respond within the time frame necessary to support the salvage effort.
Fortunately, the California State Lands Commission Derelict Vessel Program provided nearly $1 million ($999,932.09) in funding, which helped offset a portion of the total project costs to the MUD Water Utility Fund. Expenditures for this work were charged against the Delta Water Operations Division account (6513-511-630006-600-000-00-65-000-000). The Water Fund was able to absorb the costs, and no additional appropriation from reserves is needed.
Staff will continue to actively pursue recovery of the funds MUD spent on the salvage and disposal of the M/V Aurora pursuant to Harbors and Navigation Code Section 551 from the people responsible, as well as seek additional reimbursement opportunities through insurance claims and all applicable legal, regulatory, and legislative channels.
This action has no impact on the General Fund or any other unrestricted funds.