PLAN IMPLEMENTATION

AGREEMENTS AND COST SHARING REQUIREMENTS

Section 101 of Public Law 99-662, the Water Resources Development Act of 1986 (WRDA 86), requires that, before initiation of construction of a deep draft navigation project, the Assistant Secretary of the Army (Civil Works) (ASA (CW)) and non-Federal interests shall enter into a cooperative agreement. In the agreement required for deepening Savannah Harbor, as described in this report, Chatham County, Georgia, acting as the local sponsor for the project, would be required to:

(1) Pay 25 percent of the cost of construction of the general navigation features of the NED component of the Selected Plan (the cost of the NED component of the Selected Plan is equal to "Plan 1-40", which is identified as the NED Plan);

(2) Pay an additional 10 percent of the cost of the general navigation features of the NED component of the Selected Plan in cash over a period not to exceed 30 years, at an interest rate determined pursuant to Section 106 of Public Law 99-662. The value of lands, easements, rights of way, relocations, and dredged material disposal areas needed for the NED component of the Selected Plan would be credited toward this required payment;

(3) Pay 100 percent of the differential between the cost of construction for the general navigation features of the NED component of the Selected Plan and the total cost of the Selected Plan (the Selected Plan being the locally preferred "Plan 1-42");

(4) Pay 25 percent of that portion of total historic preservation mitigation and data recovery costs which is in excess of one percent of the Federal first cost appropriation for the project, not including historic preservation mitigation and data recovery, and pay 10 percent of the historic preservation mitigation and data recovery costs above the one percent of the Federal first cost appropriation, in cash over a period not to exceed 30 years, at an interest rate determined pursuant to Section 106 of Public Law 99-662;

(5) Hold and save the United States free from damages due to the construction, operation, maintenance, repair, replacement and rehabilitation of the project, except for damages due to the fault or negligence of the United States or its contractors;

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(6) Acquire the necessary lands, easements, rights of way, including suitable borrow and dredged material disposal areas with all necessary retaining dikes, bulkheads, and embankments, or the cost of such retaining works necessary for the construction, operation, and maintenance of the project; (7) Perform, or assure the performance, of all relocations and alterations of utilities, piers, dikes, pipelines, cables, and sewer outlets necessary to carry out the project;

(8) Provide and maintain adequate public docks, terminals, and transfer facilities open to the use of all on equal terms;

(9) Provide and maintain depths in the berthing areas and local access channels serving the terminals commensurate with project depths;

(10) Prohibit erection of any structure or berthing of any vessels that would encroach on the Federal channel as authorized, and prohibit erection of any structure within such distances from the authorized channel as may be determined by the District Engineer;

(11) Perform

as are determined
and extent of any

environmental investigations necessary to identify the existence hazardous substances regulated under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. 9601-9675 on all lands necessary for project construction, operation, and maintenance; (12) Assume

complete financial responsibility for all costs incurred in cleanup of hazardous materials located on project lands and regulated under CERCLA and be responsible for operating, maintaining, repairing, replacing, and rehabilitating the project (including the dredging of berthing areas or access channels, and operating and maintaining any required disposal facilities) in a manner so that liability will not arise under CERCLA;

(13) Comply with the provisions of the Uniform Relocations Assistance and Real Property Policies Act of 1970 (Public Law 91-646), as amended; and,

(14) Comply with Section 601 of Title VI of the Civil Rights Act of
1964 (Public Law 88-352), and Department of Defense Directive
5500.11 issued pursuant thereto and published as Part 300 of
Title 32, Code of Federal Regulations,
as well as Army
Regulation 600-7 entitled "Nondiscrimination on the Basis of
Handicap in Programs and Activities Assisted or Conducted by
the Department of the Army", in connection with construction,
operation, maintenance, repairing, rehabilitating, and
replacing the project.

FEDERAL AND NON-FEDERAL COSTS

Public Law 99-662 requires cost sharing for the construction of the general navigation features of the Savannah Harbor deepening project. The Feasibility Study has determined that there will be no additional long term average dredging requirements for the Selected Plan. Therefore, the total cost of subsequent maintenance dredging of the Selected Plan would be borne by the Federal

Government.

Table 53 presents a summary of the first costs of Plans 1-40 and 1-42. Interest during construction is not cost-shared since it is not a financial cost. The table also shows the increase in total costs of Plan 1-42 over Plan 1-40.

(3) Includes engineering, design, & construction management costs.
(4) Total costs do not include Interest During Construction, and are not
escalated to reflect inflation.

Table 54 shows Federal and non-Federal cost sharing of Plan 1-40 based upon cost sharing policy for deep-draft navigation projects.

(1) Costs are rounded to nearest $1,000.
(2) These costs are for sloughing easements.

(3) One percent of Federal appropriation not including Historic Preservation Mitigation & Data Recovery.

(4) Includes engineering, design, & construction management costs.

(5) The value of lands, easements, rights of way, relocations, and dredged material disposal areas provided are credited toward the 10 percent additional non-Federal cost share to be paid in cash over a period not to exceed 30 years.

Table 55 shows the total non-Federal costs for Plan 1-42, which include the cost sharing of Plan 1-40 and the additional cost differential between Plan 1-40 and Plan 1-42.

(1) Costs are rounded to nearest $1,000.

(2) Costs are for NED component of Selected Plan, with no additional incremental costs for Plan 1-42, which is the Selected Plan and the Locally Preferred Plan.

(3) These costs are for sloughing easements.

(4) Includes engineering, design, & construction management costs.

(5) The value of lands, easements, rights of way, relocations, and dredged material disposal areas provided are credited toward the 10 percent additional non-Federal cost share to be paid in cash over a period not to exceed 30 years.