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HomeMy WebLinkAbout09/05/2000, 3 - WATER REUSE PROJECT - PROJECT APPROVAL council Sept. 5 2000 j agcnaa Report 3 CITY OF SAN LUI S O B 1 S P 0 FROM: John Moss,Utilities Directo Prepared By: Dave Pierce, Water Projects anager SUBJECT: WATER REUSE PROJECT—PROJECT APPROVAL CAO RECOMMENDATION Adopt a resolution approving the Water Reuse Project and directing staff to file a Notice of Determination. REPORT-IN-BRIEF In 1991, the City filed a Wastewater Change Petition with the State Water Resources Control Board (SWRCB) to permit a portion of the effluent from the City's Water Reclamation Facility to be used for irrigation and other suitable uses. Following the preparation of an Environmental Impact Report(EIR), and consultation with the California Department of Fish and Game and the U.S. Fish and Wildlife Service, the City certified the Final EIR on March 25, 1997. The City Council withheld project approval pending approval, by the SWRCB, of the petition to recycle the water. Subsequent to the certification of the Final EIR,the National Marine Fisheries Service (NMFS) listed the local population of steelhead as threatened, consulted with the City and EPA, and then issued a biological opinion with an extensive mitigation and monitoring plan. The California Department of Fish and Game entered into a Memorandum of Understanding with the City to provide assurance that certain mitigation measures will be completed and then withdrew its protest of the City's petition to recycle effluent from the Water Reclamation Facility. After all other protests were withdrawn, the SWRCB issued Order 2000-07 DWR, dated June 21, 2000, approving the City's request to use effluent for irrigation and other approved uses. That order requires the release of 1.7 cubic feet per second of recycled water to San Luis Obispo Creek as proposed by the City and requires the City to comply with the requirements included in the Memorandum of Understanding with Fish and Game and those in the biological opinions issued by the National Marine Fisheries Service and the U.S. Fish and Wildlife Service. To complete the Environmental Review of the Water Reuse Project, the project needs to be approved and a Notice of Determination needs to be filed. This requires Council to find that Water Reuse Project is adequately defined by the scope stated in the Final EIR and that the proposed mitigation program is equivalent to the one proposed in the EIR. The primary changes to the project from that defined in the EIR are as follows: The Water Reuse Project defined in the Final EIR delivers 1233 acre-feet of recycled water and releases a minimum discharge of 1.7 cubic feet per second to San Luis Obispo Creek. The project as currently defined will release a minimum of 1.7 cfs during the summer months and greater minimum amounts during the winter and spring as required by the NMFS. Relative to the physical project, as Council Agenda Report—Water Reuse Project—Project Approval Page 2 the preliminary design report nears completion the specific routing of pipelines may change from that originally envisioned in the EIR, but remains within existing and proposed road rights-of-way thus the pumping facilities and pipelines remain unchanged from those described in the EIR. Storage will likely be covered rather than open ponds because of the costs associated with filtration and treatment required after the water is stored in open ponds. The amount of storage will be less than originally proposed. Two general locations are being evaluated as part of the preliminary design. When Council reviews the preliminary design report, the alternatives will be discussed. A supplemental environmental review may be required when the final design configuration is selected. Attachment 1 compares the revised mitigation program to the one published as Appendix L to the Final EIR. The habitat restoration and preservation efforts are at least as great as those envisioned by the original plan and there is a significant increase in the monitoring of the steelhead resource. The SWRCB in its consideration of the City's permit and environmental review made a finding and statement of over riding considerations concerning the impacts to the steelhead which is now listed as threatened under the Endangered Species Act. However, the NMFS concludes in the 'biological opinion that, "... it is NNIFS's biological opinion the project action is not likely to jeopardize the continued existence of the federally threatened South-Central California Coast steelhead ESU , and is not likely to destroy or adversely modify proposed critical habitat." Therefore staff is of the opinion that there is a significant impact that has not been mitigated and that there is no need for a statement of overriding considerations. A resolution to approve the Water Reuse Project without making a finding of overriding considerations is included as attachment 2. If Council is more comfortable with making a statement of overriding considerations an alternate resolution is included as attachment 4. DISCUSSION The final step to completing the California Environmental Quality Act(CEQA)review of the Water Reuse Project is the filing of a Notice of Determination after the Environmental Impact Report (EIR) is certified. When the City Council certified the EIR, it stated that the project would be approved at a later date. Project approval was delayed because the key factor in defining the scope of the project is the minimum amount of water to be discharged to San Luis Obispo Creek. The EIR defined the project as releasing a minimum of 1.7 cubic feet per second (cfs)or 1.1 million gallons per day. However,until the State Water Resources Control Board approved the City's petition to recycle treated wastewater there was a possibility that the minimum discharge could be increased. Such a change would have reduced the amount of water that was available for the project and also would have reduced amount of work required to mitigate the impact to the creek. On June 21, 2000 the State Water Resources Control Board (SWRCB) approved the use of recycled water with a minimum of 1.7 cubic feet per second to be released to San Luis Obispo Creek. In order to file the Notice of Determination,the City Council needs to approve the project and in so doing determine that: Council Agenda Report—Water Reuse Project—Project Approval Page 3 1. The scope of the project being approved is not significantly different than the project defined in the certified EIR. 2. The Mitigation Plan provides the same level of mitigation as the plan adopted as Appendix L of the EIR- The Mitigation Plan has been modified in response to the requirements levied by the National Marine Fisheries Service (NMFS). Some of these measures are equivalent or greater than the ones in the original plan but are different and may be at different locations. History On September 13, 1991 the City of San Luis Obispo filed Wastewater Change Petition#12 with the State Water Resources Control Board(SWRCB)requesting approval to change the point of discharge,place of use, and purpose of use of treated wastewater from the City's Water Reclamation Facility. Six parties including Fish and Game filed protests against the petition. The SWRCB determined that none of the protestants had acquired an appropriative water right and that nobody could claim a riparian water right to the effluent. The SWRCB accepted the environmental claims to be evaluated following completion of an Environmental Impact Report (EIR) for the project. On March 17, 1993 a Draft EIR was released for public comment. After reviewing the comments, City staff met with staff members of the SWRCB,the Central Coast Regional Water Quality Control Board(RWQCB), and the California Department of Fish&Game(Fish & Game)to determine which issues needed further investigation in order to resolve their concerns. On December 20, 1995 a revised Draft EIR was released for public continent. This draft included the results of a hydrologic study of San Luis Obispo Creek and additional studies of habitat for steelhead and tidewater gobies. On November 13, 1996,the U.S. Fish and Wildlife Service issued a biological opinion concerning the impacts the project might have on the tidewater goby which is listed as endangered under the Endangered Species Act. On February 22, 1997 the City published notice of a hearing on the Final EIR. On March 25, 1997 the City Council adopted Resolution No. 8643 (1997 Series)"Certifying The Environmental Impact Report For The Water Reuse Project(SCH No. 92031048)"at that time the Council resolved as follows: "SECTION 1. The Council hereby certifies,finds, and determines that the Final EIR has been completed in compliance with the California Environmental Quality Act. The Final EIR has been presented to the City Council and has been reviewed and considered by the City Council prior to approval of the project, (which approval shall occur at a subsequent meeting of the City Council). The City Council has reviewed and analyzed the Final EIR and determines that it represents and reflects the independent judgment of the City Council. Council Agenda Report—Water Reuse Project—Project Approval Page 4 SECTION 2. The City Council further certifies, finds,and determines that the Final EIR is adequate and that the potentially significant environmental impacts of the project will be reduced to a level of less than significant through the incorporation of the Mitigation and Monitoring Plan(Appendix L)into the project at the time of approval at a subsequent meeting of the City Council." On August 18, 1997 the NMFS promulgated the final rule listing the South-Central California Coast Evolutionary Significant Unit of Steelhead as threatened under the Endangered Species Act. Staff worked with the SWRCB and the Environmental Protection Agency(EPA)to complete a consultation with the National Marine Fisheries Service(NMFS)under Section 7 of the Endangered Species Act On July 28, 1999 the NMFS issued a biological opinion concerning the impacts of the project on the steelhead of San.Luis Obispo Creek. This biological opinion included an incidental take statement that defines a significant number of mitigation and monitoring measures. Staff also worked with Fish and Game to resolve its issues concerning the project. Council approved the resulting Memorandum of Understanding on October 19, 1999 and the department withdrew its protest to the City's petition to use reclaimed water for irrigation and other permitted uses. After the EIR was certified and the federal and state resource agencies had defined the mitigation measures necessary for them to withdraw their opposition,the SWRCB scheduled a hearing and the remaining protestants chose not defend their protests at a hearing. With the protests resolved, the SWRCB processed the petition and on June 21, 2000 issued Order 2000-07 DWR approving the City's petition to recycle treated wastewater. The Proiect is Similar and is within the scone of the EIR nroiect descriution The Water Reuse Project consists of pump stations, storage facilities, treatment equipment, pipelines, and appurtenances. The EIR described the project as follows: 2.1 PROJECT LOCATION AND DESCRIPTION The Water Reuse Project proposes to construct a distribution system to deliver reclaimed water to selected large volume customers throughout the San Luis Obispo area. The system will have the capacity to be expanded to serve small volume users in the future, when it becomes economically feasible to do so. Components of the distribution system will include pump stations, water storage facilities, treatment equipment,pipelines,and appurtenances. Reclaimed water will leave the Water Reclamation Facility (WRF) at the southern end of the City's property at 35 Prado Road. A portion of the reclaimed water will enter the distribution system, a portion will be diverted to the storage pond adjacent to Highway 101 (Figure 2-1), and the remainder will continue to be discharged to the San Luis Council Agenda Report—Water Reuse Project—Project Approval Page 5 Obispo Creek. The abandoned chlorination system, channel, and effluent structure will be modified to accommodate the requirements of the Water Reuse Project The storage pond will be created from the City's existing oxidation ponds. These ponds will be consolidated and enlarged into a single, six acre pond with a depth of eight feet The enlarged pond will provide wildlife habitat as well as reclaimed water storage. A two foot fluctuation of the water surface elevation will provide 12 acre-feet of usable reclaimed water storage. The inlet and outlet structures will be constructed to provide flow through the pond to.maintain water quality. The retention of the existing ponds was a mitigation measure identified during the wastewater treatment plant upgrade environmental review process. The Water Reuse Project expansion of the pond will incorporate landscaping to improve its appearance and enhance its suitability as wildlife habitat Reclaimed water may also be stored in the currently unused Reservoir lA which is located off of Highway 101 on Fox Hollow Road north of the City. Reservoir IA is a 5 million gallon concrete lined, covered storage basin that was built in 1910. The reservoir will need repairs and improvements before it can be put back into service. A pump station located at the abandoned chlorination facility near the storage pond will pump reclaimed water into a network of pipelines. The pipelines will deliver reclaimed water to customers throughout the San Luis Obispo area. Approximately 8-1/2 miles of pipeline will be installed as part of the proposed project Additionally, the City will convert approximately 2-1/2 miles of abandoned petroleum pipelines to reclaimed water use. The pipeline network will consist of three main branches, the Laguna branch, the Cal Poly branch, and the Airport Area branch. All of the branch lines will start at or near the WRF, and will terminate in the areas described by their names. The preferred route for the Cal Poly branch will require the acquisition of a pipeline easement from Caltrans along Highway 101 from Prado Road to Bianchi Lane. In route to their destinations, the branch lines will divide further to deliver reclaimed water to various customers in their respective areas. Reclaimed water pipeline routes are shown in Figure 2-1 (page 4). In order to deliver reclaimed water to customers at the proper pressure, booster pump stations will be required. The pumps will either be housed in small (6' x 10) buildings or in underground concrete vaults. Booster stations are tentatively located near the intersection of Industrial Way and Sacramento Drive,and at the Emerson School site. With 1233 acre-feet per year (af/y) of reclaimed water available for reuse,between 600. and 700 af/y of existing potable water use will be offset. The remainder may be utilized to offset private groundwater use or for new nonpotable uses. The reclaimed water distribution system may be expanded to meet future nonpotable demands of the City of San Luis Obispo as those demands develop, and as the volume of wastewater entering the WRF increases. Council Agenda Report—Water Reuse Project—Project Approval Page 6 The primary defining factor of the Water Reuse Project is the amount of water to be diverted to reuse which will no longer be discharged to the creek. Almost the entire effort in preparing the EIR was focused on defining and evaluating that impact. The project is still defined by a minimum release of 1.7 cubic feet per second. In fact the NMFS requires greater releases during the winter and spring months. Therefore the Water Reuse Project is the same as defined in the EIR. Brown and Caldwell the consultant hired to design the Water Reuse Project is nearing the completion of the preliminary design report. The pipeline routings will be different than proposed in the EIR but they remain within existing and proposed street rights-of-way. Storage will not be in open ponds and two options are being investigated for the location of this storage. . The preliminary design report will be presented to City Council within the next two months and these alternatives will be discussed. It is possible that a supplemental EIR will be needed to address the specific issues related to storage. Revised Mitigation Plan: The NMFS's biological opinion and the Memorandum of Understanding with Fish and Game specify mitigation measures that are similar but different than those defined in the Mitigation Plan contained in Appendix L of the EIR. These mitigation measures have been reviewed and the proposed Mitigation Plan has been revised to substitute the specific mitigation measures required by the regulatory agencies where appropriate for mitigations originally specified in the Appendix L. As shown in the table included as Attachment 1, the revised mitigation plan provides more mitigation and monitoring than was deemed necessary to reduce the impacts to less than significant. The tidewater goby was listed as endangered effective March 7, 1994. The U.S. Fish and Wildlife Service issued a biological opinion for the Water Reuse Project that required continued release of 1.7 cfs. On June 24, 1999 the USFWS proposed to remove the tidewater goby, except for Orange and San Diego Counties, from the endangered designation. A final rule is expected this summer that will remove the tidewater goby in San Luis Obispo County from the endangered species list. This action will have no affect on the mitigation plan because the 1.7 cfs release is required by the NMFS biological opinion on the steelhead,the MOU with Fish and Game and the Dedication has been effected by SWRCB Order 2000-07 DWR. SWRCB's Statement Of Overriding Consideration During its review,the SWRCB made a finding that because there will be"take"of endangered or threatened species,the impacts cannot be reduced to a level of less than significant. Therefore the SWRCB made a statement of overriding considerations. The following excerpt explains that position. As you read the following bear in mind that the major cause of take has been the monitoring of emigration which requires all out-migrating steelhead to be trapped,measured, and released. This action constitutes take. To date over 1,500 steelhead/rainbow trout have been trapped and released. NMFS receives monthly reports on monitory activities,is aware that take exceeds 500 as originally envisioned,has directed that the monitoring continue,and will review the program this summer to revise the biological opinion to reflect the better than anticipated out- migration of steelhead. Council Agenda Report—Water Reuse Project—Project Approval Page 7 SWRCB Finding: The EIR prepared by the City,combined with the biological opinions developed by the USFWS and the NMFS,adequately discussed the environmental relationship of the project. The SWRCB finds that the proposed project will have significant effects on the environment. The California Environmental Quality Act(CEQA) Guidelines,appendix G, state that a project that will substantially affect an endangered,rare,or threatened species of animal or plant or the habitat of the species; or interfere substantially with the movement of any resident or migratory fish or wildlife species,may be deemed to have a significant effect on the environment. Even with the mitigation measures required by the USFWS and the NMFS,there will be a"take"of these species as defined by the federal Endangered Species Act(ESA). Statement Of Overriding Consideration: CEQA requires responsible agencies to balance the benefits of a project against its unavoidable environmental risks in determining whether to approve the project. If the benefits of the project outweigh the unavoidable adverse effects,those benefits may be considered"acceptable"(CEQA Guidelines Section 15093(a)). CEQA also requires, however,that where a responsible agency decision allows the occurrence of significant effects that are identified and that are not at least substantially mitigated,the agency shall support in writing the specific reasons for its action based on the final EIR and other information in the record. This required statement is referred to as a Statement of Overriding Considerations. The SWRCB as responsible agency is proposing to approve a petition to change the point of discharge,purpose of use,and place of use of the City's wastewater treatment plant. The City has certified the EIR The following adverse impacts of the project are considered significant and unavoidable based on the EIR and the biological opinions of the USFWS and the NNffS: • The project will have a significant impact of tidewater goby by the possible extirpation of the San Luis Obispo Creek population due to reduced flows in San Luis Obispo Creek,especially during a dry year. • Juvenile steelhead will be harmed or captured. The NMFS has limited the number of juveniles to be hared or captured to 500 annually,and one juvenile may be injured or killed. The SWRCB,having reviewed and considered the information contained in the draft EIRs,final EIR,and biological opinions, finds that even with the mitigation measures identified, significant impacts to the environment will still occur. The SWRCB finds that the project will enhance the existing water supply and maximize the use of reclaimed water within the City's service area and is consistent with State policy. The SWRCB further finds that existing stream flows in San Luis Obispo Creek Council Agenda Report—Water Reuse Project—Project Approval Page 8 as a result of the discharge of treated effluent are unnatural,uncertain,and unpredictable. The significance of the identified impacts do not outweigh the overriding social, economic,and natural resources considerations which must be balanced by the SWRCB. Further,the federal agencies charged with administering the federal ESA have determined that the amount of"take"anticipated by the project will not jeopardize the continued existence of these species. The SWRCB hereby finds that the benefits associated with proceeding with the project by far outweigh the identified significant impacts to the environment because the project promotes the local and state policies supporting reclamation. Therefore,the SWRCB finds on the basis of substantial evidence in the record and the findings set forth herein above,that the benefits of, and the need for,the project substantially outweigh the significant environmental impacts identified. The SWRCB hereby adopts the Statement of Overriding Considerations. Is There a Need For Additional Findings? City staff is of the opinion that there is no need for the City Council to make a similar finding of overriding considerations. The final project with all the mitigation measures required by the NMFS will not substantially affect the steelhead population. This is supported by the conclusion of the biological opinion which states: "After reviewing the recent status of the steelhead, the environmental baseline for the action area, expected effects of the water reuse project, and potential cumulative effects, it is NNff S's biological opinion the project action is not likely to jeopardize the continued existence of the federally threatened South-Central California Coast steelhead ESU,and is not likely to destroy or adversely modify proposed critical habitat. The basis for this determination is as follows: (1) effects of the project action will be confined to seasons when relatively few juvenile steelhead are expected to be present in the project area; (2)the number of steelhead individuals potentially affected by the project action is relatively small compared to the number of individuals believed to be present in the San Luis Obispo Creek drainage; (3)the number of steelhead individuals affected by the project action is relatively small compared to the number of individuals believed to be present in the South-Central California Coast ESU; and, (4)the amount of critical habitat potentially affected by the project action is relatively small compared to the amount of critical habitat believed to be present in the South- Central California Coast ESU." Although staff recommends that there is no need for an additional environmental determination, Council may be more comfortable making a finding of overriding consideration consistent with that made by the SWRCB. If Council chooses this direction, an alternate resolution approving the project and making the finding of overriding consideration is included as attachment 4. Council Agenda Report—Water Reuse Project—Project Approval Page 9 FISCAL IlVIPACT This specific action has no fiscal impact. The preliminary design report is nearing completion and will be scheduled for Council review within the next 60 days. At that time revised cost estimates associated with a proposed project and alternatives will be presented for council review and approval. ATTACHMENTS 1. Mitigation Plan—Revised Compared to the Original. 2. Proposed Resolution 3. Excerpt of mitigation and monitoring requirements from the biological opinions 4. Alternate Resolution Copies of the following documents are available in the Council Office: 1. Final Environmental Impact Report for the Water Reuse Project 2. Biological Opinion concerning the tidewater Goby 3. Biological Opinion concerning the Steelhead 4. Memorandum of Understanding with the California Department of Fish and Game 5. SWRCB Order 2000-07 DWR Council Agenda Report—Water Reuse Project—Project Approval Attachment 1 Pagel WATER REUSE PROJECT REVISED MITIGATION PLAN Plan Approved March 25, 1997 Revised Plan Dedicate 1.7 cfs of wastewater effluent per Dedicate 1.7 cfs of wastewater effluent per Water Water Code 1212 Code 1212. (Action completed in SWRCB Order 2000-07 DWR) Discharge additional monthly minimum flows required by NMFS. Document Daily Minimum Release for six years Improve fish passage at the Marre Dam € Improve fish passage at the Marre Dam Create off-stream pool habitat. (12,000 ` Create in-stream pool habitat. (Greater of 20 pools square feet) or 12,000 square feet. Plan to be approved by NMFS.) Construct an alternative outfall for 1.7 cfs of Replace habitat lost in 5.7 miles downstream of the the effluent at a location approximately WRF by acquiring and preserving existing 3,000 feet upstream of the present outfall. habitat at a 2:1 ratio or creating new habitat at a 1:1 ratio. (Plan to be approved by NMFS) Facilitate installing groundwater well field Facilitate installing groundwater well field on on Hayashi property to replace diversion. Hayashi property to replace diversion. Enhance Riparian Communities. Contribution of$175,000 to the purchase,for Phase 1. $75,000 preservation, of a parcel that contains 3,000 feet Phase 2. $25.00 per acre-foot for the first 20 of the East Fork and 2,000 feet of the mainstem years of the project of San Luis Obispo Creek Additional work will be accomplished to restore creek habitat. Prevent rapid or instantaneous changes in flow from the WRF. (Plan to be approved by NMFS) Monitor flow in Creek for six years. Monitor emigration to validate the time of emigration for six years. (Plan approved by NMFS and work is in progress beginning March, 2000) Monitor abundance downstream of the WRF for six years. (Plan approved by NMFS and work is in progress beginning July,2000) M' -'ING AGENDA DAA c af-00 1TEiVl # A-ti�c.�rh. z: LCI NIC!L ❑CDD Diff RESOLUTION NO. (2000 Series) ❑FI;! DI^❑FI"=C:::❑PV1 D'Rl„f0^IG ❑POLICE C.:' A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN L ^+ ❑ E DAPPROVING THE WATER REUSE PROJECT, AND DIRECTf TIL DIR ❑PERS DIR A NOTICE OF DETERMINATION BE FILED WHEREAS, On March 25, 1997, the City Council adopted a resolution Certifying the Environmental Impact Report for the Water Reuse Project(SCH No. 92031048); and WHEREAS, On October 17, 1997, the National Marine Fisheries Service listed the South- Central California Coastal Evolutionary Significant Unit of steelhead as threatened and on July 28, 1999 issued a biological opinion concerning the impact of the Water Reuse Project on the steelhead; and WHEREAS, the biological opinion contained significant mitigations and monitoring requirements some of which are similar to mitigations proposed in the Mitigation Plan that was approved as appendix L of the Final EIR;and WHEREAS, a revised mitigation plan has been developed to incorporate the requirements of the biological opinion and the EIR; and WHEREAS, On June 21, 2000, the State Water Resources Control Board issued SWRCB Order 2000-07 DWR approving the City's petition to use recycled water for irrigation and other uses. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds that the Water Reuse Project as currently defined is sufficiently similar to the project described in the EIR and that the EIR adequately covers the project. SECTION 2. The City Council finds that the revised mitigation plan accomplishes all the mitigation effort envisioned by the previously approved plan. SECTION 3. The City Council approves the Water Reuse Project, incorporating the L revised mitigation plan, and directs the City Administrative Officer to file a Notice of QaoGQ Determination indicating that the project has been approved. Upon motion of , seconded by and on the following roll call vote: ECEIVED SEP - 5 2000 R_ PgeIof2 SLO CITY CLERK Resolution No. (2000 Series) Page 2 AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 92000. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: • Jeffrey G. Jorgensen, City Attorney • R_ Page 2 of 2 Attachment 2 Page 1 RESOLUTION NO. (2000 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE WATER REUSE PROJECT, AND DIRECTING THAT A NOTICE OF DETERMINATION BE FILED WHEREAS, On March 25, 1997, the City Council adopted a resolution Certifying the Environmental hnpact Report for the Water Reuse Project(SCH No. 92031048); and WHEREAS, On October 17, 1997, the National Marine Fisheries Service listed the South- Central California Coastal Evolutionary Significant Unit of steelhead as threatened and on July 28, 1999 issued a biological opinion concerning the impact of the Water Reuse Project on the steelhead;and WHEREAS, the biological opinion contained significant mitigations and monitoring requirements some of which are similar to mitigations proposed in the Mitigation Plan that was approved as appendix L of the Final EER,- and WHEREAS, a revised mitigation plan has been developed to incorporate the requirements of the biological opinion and the EIR;and WHEREAS, On June 21, 2000, the State Water Resources Control Board issued SWRCB Order 2000-07 DWR approving the City's petition to use recycled water for irrigation and other uses. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds that the Water Reuse Project as currently defined is sufficiently similar to the project described in the EIR and that the EIR adequately covers the project. SECTION 2. The City Council finds that the revised mitigation plan accomplishes all the mitigation effort envisioned by the previously approved plan. SECTION 3. The City Council approves the Water Reuse Project and directs the City Administrative Officer to file a Notice of Determination indicating that the project has been approved. Upon motion of seconded by , and on the following roll call vote: R. Page 1 of 1 Resolution No: ..—_ —. __. _ (2000.Series) Attachment 2 Page 2 AYES: NOES: ABSENT` the foregoing resolution was adopted this . day of Mayor Allen Settle ATTEST: Lee Price, City Cleric APPROVED AS TO FORM: -- Jeffrey r risen; City ofney R Page 2 of 2. Attachment 3 Page 1 WATER REUSE PROJECT MITIGATION REQUIREMENTS Agreement with the California Department of Fish and Game Terms and Conditions of the U.S. Fish and Wildlife Service Biological Opinion Terms and Conditions of the National Marine Fisheries Service Biological Opinion California Department of Fish and Game 1. City and the Department agree that,pursuant to California Water Code section 1212,they will jointly oppose the Board granting any permit or license to any person or entity other. than the City for the appropriation of the effluent discharged from City's Facility. City shall file a petition with the Board to have San Luis Obispo Creek designated as a fully appropriated stream and will list the amount of 1.7 cfs as included in that portion the effluent from City's Facility that is not available for appropriation to third parties. The Department shall assist City with such petition. 2. City shall modify the fish ladder and brush rack at Marre Dam as described in the Final Environmental Impact Report dated March 1997 for the project("FEIR"). City and the Department shall cooperate to seek, as needed, access agreements from those private property owners owning land adjacent to Marre Dam. City shall consult with the Department regarding the design and specifications of the modifications to Marre Dam prior to finalizing any plans and specifications for same. 3. City and the Department acknowledge that the NMFS Biological Opinion referenced above includes a provision requiring City to create twenty(20) instream pools,which will be approximately 12,000 square feet of pool habitat This pool habitat may be created on San Luis Obispo Creek or some other creek. City shall consult with the Department in developing its plan for the creation of pool habitat, for the purpose of ensuring that the habitat will also benefit pond turtles. City agrees that the creation of such pool habitat will be done in accordance with the methodology set forth in the California Salmonid Stream Habitat Restoration Manual (CDFG, 1998). U.S. Fish and Wildlife Service Biological Opinion The City of San Luis Obispo and State water resources control Board shall ensure that water in an amount of no less than 1.7 cubic feet per second is released continually from the City's water reclamation facility. If this amount may be reduced for any reason,the Service shall be notified to discuss reinitiation of formal consultation. Vv . r Reuse Project-Mitigation Requirements - Attachment 3 Page 2 Conservation Recommendations(not mandatory) The EPA, SWRCB, and City should develop a management plan for the San Luis Obispo Creek watershed with the objectives of restoring native habitats and natural conditions to the creek and lagoon to the greatest degree possible. The plan should seek to eliminate or manage activities that reduce the habitat value of the creek and to improve the quality and quantity of the components of the creek, including water,that provide habitat to wildlife resources. Any such plan would need to be developed in a cooperative manner among government agencies, local groups, and private landowners to achieve success. National Marine Fisheries Service Biological Opinion 1. The following Terms and Conditions implement Reasonable and Prudent Measure No. 1.' A. The City shall for the life of the project action release no less than 1.7 cfs of tertiary treated effluent from the water reclamation facility to San Luis Obispo Creek. Reinitiation of consultation would be required, see section IX(2)of this Biological Opinion, if this release is modified in anyway,including ceasing the project action. B. The City shall for the life of the project action continuously release no less than the following month-specific quantity(cfs) of tertiary treated effluent from the water reclamation facility to San Luis Obispo Creek. Reinitiation of consultation would be required, see section IX(2)of this Biological Opinion, if this release schedule, or quantity of these releases,is modified in anyway, including ceasing the project action. The month-specific quantity(cfs)of tertiary treated effluent to be released from the water reclamation facility to San Luis Obispo Creek is as follows: January February March April May June July August September October NovemberDecember 5.0 5.5 5.5 4.4 3.0 1.7 1.7 1.7 1.7 3.8 4.5 4.0 C. The City shall replace the surface water diversion(pump) in San Luis Obispo Creek adjacent to the Hayashi property with groundwater wells,before the project action is implemented. The maximum combined capacity of these wells shall not exceed the maximum capacity of the Hayashi surface water diversion. D. The City shall prepare and implement a pool habitat construction plan to mitigate project action effects on steelhead. The plan shall specify construction of 20 (twenty) pools, and monitoring and maintenance of these 20 pools for the life of the project action; identify proposed locations for constructing pools; establish schedules for obtaining necessary approvals and permits (i.e., land owner or agency permission, streambed alteration agreement, section 7 consultations,404b); establish schedules and milestones for implementing this mitigation task; specify the type of pools that will be constructed and the materials required; maintenance and monitoring methods; pool performance criteria; and,any additional information NMFS believes is W aver Reuse Project-Mitigation Requirements Attachment 3 Page 3 necessary to complete the plan. The pools shall be constructed in the following locations: Stenner Creek, Reservoir Canyon Creek San Luis Obispo Creek upstream of Questa Park, and(or)any other area(s)NMFS believes would be appropriate. The City shall complete all pools before the project action is implemented. The dimensions (length,width, and depth)of each constructed pool shall be no less than the dimension of any pool existing in vicinity of a proposed pool construction area. The City shall obtain written NMFS approval for this habitat mitigation plan before the project action and plan are implemented. This pool habitat mitigation plan shall be implemented by the City no later than three years from the date of this Biological Opinion. The NMFS, at its discretion,may decrease to some extent the number of pools required by this specific Term and Condition(1D),depending on the type, quantity, quality, and location, of habitat set forth by the City to comply with Term and Condition 1 E. E. The City shall prepare and implement a habitat mitigation plan to offset project action effects on habitat. The plan shall be based on one of the following: (1) acquiring at a ration of no less than 2:1, and then preserving/conserving in perpetuity, an area of instream habitat to compensate for the area of San Luis Obispo Creek that is affected by the project action(=5.7 miles x average stream width through the project area); (2)creating at a ration of no less than 1:1 an area of instream habitat to compensate for the area of San Luis Obispo Creek that is affected by the project action(=5.7 miles x average stream width through the project area); or(3) a combination of#1 and#2. Habitat creation can include providing steelhead access to an area of historical spawning and rearing habitat that is equal to the area of habitat that is affected by the project action. Habitat mitigation can occur in the San Luis Obispo Creek drainage or in another drainage that is acceptable to NMFS. The plan shall identify the location of the preservation/conservation or creation areas; describe proposed monitoring and maintenance methods; describe biological characteristics of the mitigation area, including riparian and instream habitat; identify necessary approvals for establishing the habitat mitigation area; and describe the schedule to implement the habitat mitigation plan, including monitoring and maintenance activities. The City shall obtain written NMFS approval for this habitat mitigation plan before the project action and plan are implemented. This habitat mitigation plan shall be implemented by the City no later than three years from the date of this Biological Opinion. The NMFS, at its discretion,may decrease to some degree the amount or extent of instream habitat mitigation required by this specific Term and Condition(I E),depending on the type, quantity, quality,and location,of instream habitat set forth by the City to comply with this Term and Condition(IE). F. The City shall prepare and implement a NMFS approved plan to avoid relatively rapid or instantaneous release reductions for the purpose of minimizing the likelihood of stranding steelhead. The contents of the plan shall include protocol and schedule for gradually reducing releases to the creek,quality assurance/quality control,and contingency measures. The plan shall be prepared in collaboration with a qualified fisheries biologist(individual with expertise in the areas of salmonid biology and ecology, and life history and habitat requirements). The City shall obtain Vv amT Reuse Project-Mitigation Requirements Attachment 3 Page 4 written NMFS approval for this avoidance plan before the project action and plan are implemented. The plan shall be implemented in perpetuity by the City beginning the first day of the project action. 2. The following Terms and Conditions implement Reasonable and Prudent Measure No. 2. A. The City shall prepare and implement a plan to install a continuously recording streamflow measurement gage for the purpose of monitoring discharge in San Luis Obispo Creek for a period of ten years beginning the first day the project action is implemented. The discharge gage shall be installed in a location that is acceptable to NMFS, and before the project action is implemented. The City shall obtain written NMFS approval for this plan before the project action and plan are implemented. B. The City shall document the daily minimum release for ten years beginning the first day the project action is implemented. 3. The following Terms and Conditions implement Reasonable and Prudent Measure No. 3. A. The City shall prepare and implement a NMFS approved plan to monitor emigration of juvenile steelhead in San Luis Obispo Creek drainage(minimum of four locations in the San Luis Obispo Creek drainage)during 01 March to 31 December for a period of six years beginning 01 March 2000. The City in the context of monitoring steelhead emigration shall monitor discharge and water temperature. The City's plan shall be prepared by a qualified fisheries biologist(individual with expertise in the areas of salmonid biology and ecology,and life history and habitat requirements). Prior to preparing the plan,the City and its biologist shall meet with NMFS for the purpose of identifying the specific contents of the plan. Data collected as a result of monitoring emigration shall be submitted to and become property of NMFS. The City shall obtain written NMFS approval for this emigration monitoring plan before the project action and plan are implemented. B. The City shall prepare and implement a NMFS approved plan to monitor abundance of steelhead in the project area during 01 May to 31 October for a period of six years beginning 01 May 2000. The City's plan shall be based on a statistically valid sampling design that is acceptable to NMFS,and be prepared by a qualified fisheries biologist(individual with expertise in the areas of salmonid biology and ecology, and life history and habitat requirements). Prior to preparing the plan,the City and its biologist shall meet with NMFS for the purpose of identifying the specific contents of the plan. Data collected as a result of monitoring abundance shall be submitted to and become property of NMFS. The City shall obtain written NMFS approval for this abundance monitoring plan before the project action and plan are implemented W acr Reuse Project-Mitigation Requirements Attachment 3 Page 5 4. The following Terms and Conditions implement Reasonable and Prudent Measure No. 4. A. The City shall provide written evidence to NMFS demonstrating compliance with Term and Condition 1 C. B. For a period of two years, and on the fifth day of June, July, and August,the City shall provide written evidence to NMFS demonstrating staff compliance with Term and Condition IF (i.e., successful implementation of avoidance measures by City staff) for the pervious month. The City's correspondence shall also describe any problem achieving full compliance with Tenn and Condition IF. C. On the fifth day of each month,the City shall provide to NMFS a record of discharge and daily minimum release for the previous month,in accordance with Term and Condition 2A and B, for a period of ten years beginning the fifth day of the second month after the project action is implemented D. At the conclusion of each monthly monitoring period,the City shall submit to NMFS raw fish data(e.g., count and length), and streamtlow and temperature data, collected as a result of monitoring emigration of juvenile steelhead. E. At the conclusion of each monthly monitoring period,the City shall submit to NMFS raw fish data(e. g., count and length) collected as a result of monitoring abundance of juvenile steelhead. F. On an annual basis,the City shall prepare and submit to the SWRCB an Annual Compliance Report verifying compliance with all Terms and Conditions of this Biological Opinion applicable for the preceding year. As part of such report,the City shall provide to the SWRCB such documentation as the SWRCB shall deem necessary to verify compliance. G. The City shall document and notify the SWRCB of any dispute of problem encountered with achieving compliance with any of the Reasonable and Prudent Measures and Terris and Conditions of this Biological Opinion. Such notification shall be made to the SWRCB within a reasonable period of time,but in no case later than ten days after the City's discovery of any such problem or dispute. Attachment 4 Page 1 RESOLUTION NO. (2000 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING THE WATER REUSE PROJECT, MAKING AN ADDITIONAL ENVIRONMENTAL DETERMINATION,AND DIRECTING THAT A NOTICE OF DETERMINATION BE FILED WHEREAS, On March 25, 1997, the City Council adopted a resolution Certifying the Environmental Impact Report for the Water Reuse Project(SCH No. 92031048); and WHEREAS, On October 17, 1997, the National Marine Fisheries Service listed the South- Central California Coastal Evolutionary Significant Unit of steelhead as threatened and on July 28, 1999 issued a biological opinion concerning the impact of the Water Reuse Project on the steelhead,and WHEREAS, the biological opinion contained significant mitigations and monitoring requirements some of which are similar to mitigations proposed in the Mitigation Plan that was approved as appendix L of the Final EIR, and WHEREAS, a revised mitigation plan has been developed to incorporate the requirements of the biological opinion and the EIR;and WHEREAS, On June 21, 2000, the State Water Resources Control Board issued SWRCB Order 2000-07 DWR approving the City's petition to use recycled water for irrigation and other uses. NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council finds that the Water Reuse Project as currently defined is sufficiently similar to the project described in the EIR and that the EIR adequately covers the project. SECTION 2. The City Council finds that the revised mitigation plan accomplishes all the mitigation effort envisioned by the previously approved plan. SECTION 3. The City Council finds that because there will be unavoidable incidental take of a threatened or endangered species it is not possible to mitigate all of the significant impacts to these species. SECTION 4. The City Council finds that the project will provide additional water needed to accommodate a reasonable share of anticipated growth within the urban reserve line, that the federal resource agencies have determined that the project will not jeopardize the R Page 1 of 2 Resolution No. (2000 Series) Attachment 4 Page 2 continued existence of these species, and therefore the benefits of the project substantially outweigh the significant environmental impacts identified. SECTION 5. The City Council approves the Water Reuse Project and directs the City Administrative Officer to file a Notice of Determination indicating that the project has been approved. Upon motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 199x. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: Jeffrey G. Jorgensen, City Attorney R Page 2 of 2