STAFF REPORT
Operations Committee, November 5, 2009

West Cary Stream Restoration - Project Partnership Agreement (PR10-13)
Consideration of approval of the Project Partnership Agreement with the Corps of Engineers for a stream restoration project
Speaker:  Ms. Mary Henderson

From:  Mary G. Henderson, Director PRCR
Prepared by:  Doug McRainey, Parks Planning Manager
Approved by:  Benjamin T. Shivar, Town Manager
Approved by:  Michael J. Bajorek, Assistant Town Manager

Executive Summary:  The purpose of this staff report is to present to Council for approval, a Project Partnership Agreement with the Corps of Engineers to formally initiate the design of a stream restoration project along the White Oak Creek Greenway, between Davis Drive and Jenks Carpenter Road in west Cary.

Background:  On April 15, 2009 Council authorized issuance of a letter of support for the West Cary Stream Restoration Project. 

This project has been in the planning stages since 2002, when the Ferguson Group, a Washington DC lobbying group employed by the Town, coordinated discussions with the Corps of Engineers regarding the Town’s participation in a Section 206 aquatic ecosystem restoration project in western Cary.  After several feasibility studies, the Wilmington District of the Corps of Engineers chose a segment of the White Oak Creek and its tributaries located between Davis Drive and NC 55 because this area developed prior to the implementation of current stormwater Best Management Practices (BMPs).

The Corps formulated a plan to control erosion rates and restore the aquatic and riparian ecosystem along the proposed segment of the White Oak Creek.  The plan includes installation of two dry pond areas, channel restoration, and bench cuts on eight sites.  Ten acres will be required to complete the project which will provide direct restoration to approximately 950 linear feet of stream channel.  The expected total length of potential beneficial effects to the stream channels is approximately 8,700 linear feet.  Taking into account the buffer areas protected by ordinance along the project area streams, the project will benefit approximately 40 acres of greenway-related habitat, and result in estimated reductions in sediment loading to the White Oak Creek watershed by 40,200 lbs/year.  Expected life of the project is 30 years. 

Discussion: Based on the letter of support for the project that the Town submitted to the Corps in April 2009, the Corps has now provided to the Town a Project Partnership Agreement (PPA) which is the legally binding agreement between the federal government and the Town for construction of the 206 Project.  The PPA describes the project and the responsibilities of the federal government and the Town of Cary in terms of cost sharing and execution of the project work.  Features of the agreement include:

• The Corps of Engineers’ Section 206 aquatic ecosystem restoration projects are 65/35 match programs, with the local government required to assume responsibility for all necessary land, easement and right-of-way acquisitions.  The total estimated project cost is $1,800,000 which would require a Town match of $630,000.
• Town will be responsible for working with landowners and the public to obtain the necessary support and input prior to construction.
• Town will be responsible for real estate negotiation and acquisition, including any investigations for hazardous substances deemed necessary.
• The Town will have the opportunity to review all designs, drawings and bid documents prior to construction.
• The Federal Government/Corps of Engineers will coordinate all construction work associated with the project.
• Should the Federal Government’s cost for design, construction or monitoring of the project result in total project costs exceeding the estimate of $1,800,000, the Federal Government may defer the project for up to three years.
• Upon completion of the project, the Corps will provide the Town with an Operation, Maintenance, Repair, Rehabilitation, and Replacement Manual. The Town shall be responsible for the maintaining, repairing and any future replacement of the BMPs within the project area. The Corps shall monitor the project for five years after completion, unless deemed unnecessary.  Per the terms of the PPA Certificate of Authority, the Town may be obligated to pay damages as a result of failure to maintain the project area.  Despite this clause, the Corps was unaware of any cases in which a local government had to pay any damages.
• In terms of liability, the PPA does obligate the Federal Government if damages are due to either their or their contractor's fault, but limits their liability, for instance, if the project area is damaged or impacted by a natural disaster. 

Project Schedule:
     Corps completes final plans and specifications October 2009 – Sep 2010
     Town Completes Acquisition August 2010 – February 2011
     Project is bid March 2011
     Construction Begins June 2011
     Construction Substantially Complete November 2011
     Town Accepts Project December 2011

Fiscal Impact: 
Funding: $1,036,000 has been appropriated to the GG5010 West Cary Watershed Project. This funding is sufficient to meet the requirements of the agreement.  Thus, the actions requested in this staff report will not increase the overall project budget.  

Operating: When the project is completed the Town is responsible for 100 percent of the operation, maintenance, repair, replacement and rehabilitation associated with the project.  The operation and maintenance of the restored areas will be specified in an O & M manual to be provided to the Town by the Corps.  Estimated yearly maintenance costs are $1,000. The project life is 30 years.

Staff Recommendation:  Staff recommends approval of the Corps of Engineers Project Partnership Agreement and related expenditure of funds for the Western Cary Stream Restoration Project along the White Oak Creek.