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RPVCCA_CC_SR_2011_11_01_L_Montrose_Settlements_Restoration_PgmCITY OF MEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR &CITY COUNCIL MEMBERS CAROLYNN PETRU,DEPUTY CITY MANAGER~ NOVEMBER 1,2011 MONTROSE SETTLEMENTS RESTORATION PROGRAM:KELP FOREST AND SUBTIDAL REEF RESTORATION CAROLYN LEHR,CITY MANAGER Staff Coordinator:Matt Waters,Senior Administrative Analyst~ RECOMMENDATION Authorize the Mayor to sign the attached draft letter of support for the Montrose Settlements Restoration Program's Restoration Plan to restore lost fishing opportunities in and around the Palos Verdes Shelf through kelp forest and subtidal reef restoration. BACKGROUND Local industries discharged approximately 2,000 metric tons of DDTs and PCBs into the ocean off the Palos Verdes Peninsula from the late 1940s until the early 1970s.Almost all of the DDTs came from the Montrose Chemical Corporation manufacturing plant in Torrance,reaching the ocean via the Los Angeles County Sanitation District's (LACSD) White Point sewer outfall.Wastewater treatment methods employed during those years did not contain or capture the DDTs prior to discharge into the ocean.Montrose Chemical Corporation also dumped DDT-contaminated waste from barges into deep ocean waters between the Peninsula and Santa Catalina Island.Large quantities of PCBs from numerous sources throughout the Los Angeles Basin were released into the ocean via the LACSD and City of Los Angeles wastewaters outfalls and the regional storm drain systems during this period.The Santa Monica Bay Restoration Foundation (SMBRF)states that these chemicals entered the ocean's food system,leading to breeding failures in bald eagles,peregrine falcons,and other seabirds.Chemical levels in some fish have been detected at such high levels that the State of California has issued warnings and restrictions to reduce the risk of cancer,liver disease and birth defects. In March 2001,after over ten years of litigation,the Courts approved a final settlement L-1 MSRP:Kelp Forest and Subtidal Reef Restoration Projects November 1,2011 Page 2 between the Federal and State governments and the remaining defendants in the Montrose case.Montrose and other defendants agreed to pay $140.2 million plus interest to the Federal and State governments.The trustees for the Montrose Settlements Restoration Program (MSRP)received $63.95 million.$35 million ofthe MSRP funds have gone to reimburse past damage assessment costs.The remainder of the funds,plus accumulated interest,is being used to restore the natural resources damaged by the discharge of DOTs and PCBs. MSRP Phase I Restoration efforts began in 2005.Phase I Projects include: •Restore nesting habitats for seabirds on the Channel Islands •Retore bald eagles to the Channel Islands •Mqnitor Peregrine Falcons on the Channel Islands •Restore recreational fishing in Southern California •Restore 140 acres of wetland habitat to full tidal exchange Phase I Restoration projects are in various stages of implementation. DISCUSSION MSRP trustees now propose the second and final phase of MSRP restoration efforts.The Phase 2 Restoration Plan (P2RP)contains two fish habitat restoration projects which could have a direct effect upon sections of the City's coastline:Kelp Forest Restoration and Subtidal Reef Restoration. Kelp Forest Restoration The extensive kelp forests along the Palos Verdes Peninsula shoreline have been degraded,largely because of the urchin barrens that have formed in these areas. Urchin barrens are the result of uncontrolled urchin populations caused by the loss of natural predators.The expanded urchin population overran rocky tidal areas and prevented kelp plants from anchoring to the sea floor.The P2RP has identified seven potential restoration sites,six of which are located in the waters off of Rancho Palos Verdes.The affected coastline sites extend from the City's boundary with Palos Verdes Estates to Abalone Cove.One goal of the plan is to replace fishing opportunities lost because of chemical contamination.Fish that live in kelp forests have lower levels of DDT and PCB contamination in their tissue than in that of fish living on soft-bottom habitats.By restoring kelp habitat,the MSRP will increase the number of fish known to be lower in DDT and PCBs. One of the goals of the MSRP's restoration efforts is to restore lost or diminished fishing opportunities.However,new regulations associated with the Marine Life Protection Act are scheduled to go into effect on January 1,2012 that will restrict or halt fishing in sections of Southern California's coastal waters including areas off the Palos Verdes Peninsula.These Fish and Game Commission regulations will ban fishing off of Point L-2 MSRP:Kelp Forest and Subtidal Reef Restoration Projects November 1,2011 Page 3 Vicente,including the recently re-named Pelican Cove (formerly Point Vicente Fishing Access)and will limit what fish can be taken from the waters adjacent to Abalone Cove Shoreline Park.Activities such as recreational diving will be enhanced by the eventual restoration of kelp forests and reefs. The P2RP proposal calls for the 5MBRF to partner with urchin divers and local non- profit organizations to perform urchin barren control which would allow for natural kelp forest re-growth.The 5MBRF estimates that 133 acres of Peninsula-adjacent kelp beds are still in need of restoration.Divers would access the affected coastline areas by boat to remove sea urchins in phases over a three-year period.The proposed budget for Kelp Forest Restoration is $2.5 million. Subtidal Reef Restoration Subtidal rocky reefs along the southern shoreline of the Palos Verdes Peninsula have been degraded by sediment from the active Portuguese Bend Landslide and by the 1999 landslide at Trump National Golf club which covered near-shore reefs. The P2RP identifies eighty acres of degraded reefs at three potential restoration sites, two of which are located wholly or partially adjacent to Rancho Palos Verdes;a 56-acre area off Rancho Palos Verdes Beach below Trump National Golf Club;and a 12-acre area off Shoreline Park at the boundary with the City of Los Angeles.The P2RP proposes to build artificial reefs in those areas.According to the P2RP,the construction of artificial reefs in those areas could "impact various human uses," including recreation and navigation.The proposed budget for subtidal reef restoration is $6.49 million and will take an estimated seven years to complete. Other P2RP projects include reduction of seabird disturbances on the Channel Islands, restoration of seabirds to Santa Barbara Island and Scorpion Rock,and the restoration of Ashy Storm-Petrels on the Channel Islands. On Wednesday,November 9,2011,the MSRP Trustees will hold a public meeting on the P2RP at the Point Vicente Interpretive Center from 6-8pm entitled "Restoring Natural Resources Harmed by DDT and PCBs within the Southern California Marine Environment."A previous public meeting was held on October 26,2011 in Ventura. The forty-five day public comment period for the P2RP will end on December 12,2011. Staff intends to attend the November 9 meeting. Attached is a draft letter from the City of Rancho Palos Verdes,under the Mayor's signature,offering support for the MSRP Phase 2 kelp forest and sub-tidal restoration projects. FISCAL IMPACT Approval and submittal of the attached letter of support will have no discernible negative fiscal impact. L-3 MSRP:Kelp Forest and Subtidal Reef Restoration Projects November 1,2011 Page 4 ATTACHMENT: Draft Letter of Support for MSRP Kelp Forest and Subtidal Reef Restoration Projects MSRP PVIC Public Meeting Flyer MSRP Phase 1 Restoration Highlights and Phase 2 Proposed Projects 5MBRF Phase 2 Restoration Plan Information Sheet L-4 November 1,2011 Montrose Settlements Restoration Program 501 W.Ocean Boulevard.Suite 4470 Long Beach,CA 90802 Attenti?n:Jennifer Boyce,Program Manager Dear Montrose Settlements Restoration Program Trustees: On behalf of the City Council of the City of Rancho Palos Verdes,I am pleased to offer our support for the Montrose Settlements Restoration Program's (MSRP) proposed Phase II Kelp Forest and Subtidal restoration projects. The damage done to kelp forests and a wide range of bird and fish species by the release of DOTs and PCBs into the ocean waters off of the Palos Verdes coastline,combined with damage to subtidal reefs by landslides has had a profound and devastating effect. Kelp forests are one of the most diverse and productive ecosystems on the planet.Giant kelp forests in southern California support more than 716 species of marine life.Sadly,there are far fewer kelp beds around Los Angeles than there were 100 years ago.Improvements at wastewater treatment facilities have allowed some kelp beds to recover,but many other beds around the Palos Verdes Peninsula have not.Thoughtful,controlled thinning of the over- abundance of purple sea urchins from these bare rocky areas would allow the kelp beds to recover.Additionally,the artificial reef restoration project has the potential to help recover over 65 acres of degraded reefs. Please accept this letter as formal recognition of the City of Rancho Palos Verdes'support for the MSRP's Subtidal Reef and Kelp Forest Restoration Projects. Sincerely, Tom Long Mayor cc:City Council Members City Manager L-5 MONTROSE SETTLEMENTS RESTORATION PROGRAM PRESENTS "Restoring Natural Resources Harmed by DDT and PCBs within the Southern California Marine Environment" Join Us For Our Public Meeting 6-8pm at the Point Vicente Interpretive Center 31501 Palos Verdes Drive West Rancho Palos Verdes,CA 90275 (310)377-5370 You WILL LEARN ABOUT: •Restoration completed during Phase 1 involving:Bald Eagles,Peregrine Falcons,Seabirds,Fishing,and Fish Habitat •Proposed Restoration Projects within the Phase 2 Restoration Plan •How to submit a comment on the Phase 2 Plan •How to stay connected with MSRP in the future •The latest news from the Fish Contamination Education Collaborative www:.montroserestoration.gov L-6 MSRP Phase 1 restoration projects are in various stages ofimplementation.The foJ/owing are highlights for each project that was proposed In the Phase 1 Restoration Plan. cassin's Auklet chick during banding. (Laurie Harvey,NPS) Restore Nesting Habitat for Seabirds on the Channel Islands MSRP is restoring nesting seabird habitat on the Channel Islands,specifically on Scorpion and Orlzaba Rocks,Santa Barbara,Santa Cruz,and San Nicolas Islands.Seabird restoration projects include non-native plant and animal removal, revegetation of native plants,and social attraction.Since 2007,MSRP planted 20,000+ native plants with help from volunteers, installed 50+artificial nests,removed feral cats from San Nicolas Island,and completed several years of seabird and oceanographic monitoring surveys among the islands.In 20",biologists discovered nine Cassin's Auklets seabirds nesting in newly restored habitat on Santa Barbara Island.Seabird nesting habitat restoration work will begin on several Baja California Pacific Islands in 2012. Restore Bald Eagles to the Channel Islands MSRP implemented a feasibility study to determine whether the northern Channel Islands could support a self-sustaining population of Bald Eagles.Institute for Wildlife Studies biologists successfully released 61 eagles on Santa Cruz Island and initiated a comprehensive monitoring program.The first natural hatching of a Bald Eagle in 2006 on Santa Cruz Island was a milestone for the study.Since the first natural hatchling, biologists have continued to observe a high nesting success rate among the Channel Island Bald Eagles with breeding occurring on four of eight Channel Islands.Approximately 65 eagles live among the Channel Islands and new pairs are expected to establish breeding territories across the Channel Islands. Xantus's Murrelet chicks In nest. (Darrel Whitworth,CIES) L-7 Restore Recreational Fishing in Southem California MSRP is restoring recreational fishing by providing information to the public about fish contamination and by improving access to a diversity of healthy fish species.MSRp,along with partners,created several popular outreach products including a "Common Subsistence and Sport Fish of Southern California"Identification card with safe fishing tips and the "What~the Catch?" comic book,both in three different languages, which are distributed to the public every year. Outreach mini-grants awarded to youth fishing organizations by MSRP are spreading the word about safe fishing and how to avoid "00 Not Consume"fish species.In 2012,MSRP hopes to build artificial reef modules along the Belmont Pier in Long Beach,Cal1fornia,that will attract a greater diversity of fish species that are available for consumption. Restore Fish Habitat In Southem California MSRP focused on two major areas of fish habitat restoration for Phase 1 restoration, wetlands and Marine Protected Areas (MPA). Partial funding for Huntington Beach Wetlands was used to restore Talbert and Brookhurst Marshes In this complex and opened up approximately 140 acres of wetland habitat to full-tidal flow.MSRP funding for Bolsa Chica Wetlands allowed dredging of the ocean inlet maintaining full tidal exchange.MPA funding went to the National Park Service and to the Partnership for Interdisciplinary Studies of Coastal Oceans to collect data on the effective management of these areas. Monitor Peregrine falcons on the Channel Islands In 2007,a comprehensive Peregrine Falcon monitoring effort across all eight of the Channel Islands was Cl 'TI )l-'1'ec •I.,jC Ir girts found 25 active territories and 16 pairs successfully hatched eggs that produced 35 young.One ofthe highlights of the 2007 survey was the documentation of a successful breeding pair on Santa Barbara Island.This event was the first documented breeding on the island in over 50 years!MSRP is planning to conduct a second monitoring survey in 2013. Aerial view of Huntington Beach Wetlands restoration.(Earthcam,NOAA) Peregrine Falcon chicks in nest after banding. (Brian Latta,SCPBRGj Divers working in kelp fore (David Witting,NO/- Young girl during youth fishing derl (Gabrielle Dorf,NO/- L-8 MSRP projects proposed in the Phase 2 Restoration Plan are described below. Ashy Storm-Petrel using marine debris for nest. (Darrell Whitworth,ClES) Olver collecting urchins during removal project. (David Witting,NOAA) Restore Subtidal Reef and Kelp Forest Habitat on the Palos Verdes Shelf MSRP proposes to restore critical fish habitat on the Palos Verdes Shelf.Kelp forests and rocky reefs are known to produce more fish than other habitat types and fish that have lower levels of DDT and PCB concentrations in their tissues.MSRP is propsing to build artificial reef modules in areas that have been impacted by sediment erosion along the coast.Kelp forests in this area have been impacted by the loss of urchin predators which resulted In an increase in urchins essentially wiping out kelp forests. For this project MSRP would partner with commercial urchin divers and local non-profit organizations to perform urchin barren control allowing for natural kelp recruitment and growth. Monitor Bald Eagles on the Channel Islands MSRP proposes to monitor Bald Eagles on the Channel Islands to determine if a self- sustaining population is feasible.The proposed monitoring program would continue to focus on breeding activities,investigation of diet,survival and contaminant analysis.The program would shift from extensive year- round monitoring to a more directed focus of understanding the eagle's annual population status. Monitor the Recovery of Peregrine Falcons on the Channel Islands MSRP proposes to conduct two additional comprehensive monitoring efforts on the Channel Islands .during Phase 2.Biologists would monitor active Peregrine Falcon territories to determine their reproductIve success and levels of DDT and PCBs will be measured from egg and blood samples. Restore Seabirds to Santa Barbara Island and Scorpion Rock MSRP proposes to continue and expand the restoration work on Santa Barbara Island and Scorpion Rock.On Santa Barbara Island,biologists would expand existing restoration sites and add new sites. Ifthls project moved forward,MSRP would continue removal of non-native vegetation and planting of native plants on Scorpion Rock until native plants can fully establish and outcompete non-native plants.Biologists would also install nest boxes and social attraction devices on Santa Barbara Island and continue monitoring of seabirds at both areas. Restore Ashy Storm-Petrels on the Channel Islands MSRP identified projects on Anacapa and Santa Cruz Islands In Phase 1 but was unable to complete this work.Ifthis project moved forward,biologists would continue to work on these projects In Phase 2 but also may expand to include restoration projects throughout the Channel Islands as appropriate.MSRP proposes to improve nesting habitat,Install social attraction devices,install artificial nesting boxes,perform annual monitoring at nest sites,and perform contaminant analysis. Reduce Seabird Disturbance on the Channel Islands This proposed project will build upon on-going seabird disturbance reduction efforts that have been developed by other groups.Primarily this project would focus on developing and enforcing appropriate seabird colony protective measures,educating the public and specific user groups about protective measures,and evaluating program effectiveness for integration into statewide seabird management programs. L-9 MSRP PHASE II RESTORATION PLAN Meeting Dates October 26 (Ventura)and November 9,2011 (Rancho Palos Verdes) Email Scott Valor (svalor@santamonicabay.org)for details The federal government will soon be accepting comments on the Montrose Settlements Restoration Program (MSRP)plan to restore lost fishing opportunity in and around the Palos Verdes Shelf.The plan includes $2.4 million for the Santa Monica Bay Restoration Foundation (SMBRF)to restore 60 acres of rocky subtidal habitat. As a member of the 5MBRC Governing Board,we hope you will write a letter supporting the 5MBRF project as part of the overall MSRP restoration plan. BACKGROUND What is the MSRP? The MSRP was formed by several federal and state agencies to oversee restoration activities funded by a settlement agreement between these agencies and several chemical companies in the Los Angeles area. What was the settlement about? Between the 1940s and 1970s chemical companies, including the Montrose Chemical Corporation,disposed nearly 2000 metric tons of DDT and PCBs through the Los Angeles County Sanitation Districts wastewater outfall. These chemicals have been incorporated into the ocean food web causing breeding failures in bald eagles, peregrine falcons and other seabirds.These chemicals are now found in some fish at levels so high the state has issued restrictions and warnings to reduce the human health risk of cancer,liver disease,and birth defects. What is the 5MBRF's rocky subtidal restoration project? The Palos Verdes Peninsula historically supported hundreds of acres of large,productive,and stable kelp beds.Some kelp beds have recovered due to restoration in the early 1970's and improvements in wastewater treatment (decreased turbidity). However,133 acres of former beds are still bare due to the development of extensive and persistent urchin barrens. 5MBRF plans to partner with the Santa Monica Baykeeper and local commercial urchin divers to restore these kelp beds.Sites already restored by Baykeeper now have persistent kelp forests that support abundant and diverse marine life.Kelp Forest Urchin Barren Why should MSRP fund 5MBRF's kelp restoration? The contaminated sediments on the Palos Verdes shelf represent lost fish habitat services. 5MBRF's project will restore critical fish habitat to compensate for these lost services. L-10