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HomeMy WebLinkAbout04/05/2005, BUS 2 - WATER REUSE PROJECT-PROPOSED REINITIATION OF CONSULTATION WITH NATIONAL MARINE FISHERIES SERVICE council wwg°� j acEnaa wpoin CITY OF SAN LUIS OBISPO FROM: John Moss,Utilities Director Prepared By: Katie DiSimone,Water Projects Manager SUBJECT: WATER REUSE PROJECT-PROPOSED REINITIATION OF CONSULTATION WITH NATIONAL MARINE FISHERIES SERVICE CAO RECOMMENDATION 1. Approve a project modification to provide a minimum daily average release of tertiary treated effluent to San Luis Obispo Creek of 2.5 cubic feet per second. 2. Direct staff to request EPA to reinitiate consultation with the National Marine Fisheries Service for the City's Water Reuse Project reflecting the modified project release and addressing the increased abundance of steelhead found in the lower main-stem of San Luis Obispo Creek. DISCUSSION The Water Reuse Project is designed to supply approximately 1000-1200 acre feet per year(afy) of recycled water (i.e., tertiary treated effluent) to customers within the City primarily for irrigation use. The City generates approximately 3.6 million gallons per day (5.5 cubic feet per second [cfs] or 4000 afy) of tertiary treated wastewater effluent (i.e., recycled water) at its Water Reclamation Facility (WRF). The effluent discharges to San Luis Obispo Creek, habitat to steelhead, a federally threatened species under the Endangered Species Act. San Luis Obispo Creek is also an effluent dependent habitat, meaning sometimes the only flow is discharge from the WRF. In order to mitigate adverse impacts caused by decreased discharge to the creek, the City must comply with the terms and conditions imposed by various resource agencies (National Marine Fisheries Service [NMFS], Department of Fish and Game [DFG], Regional Water Quality Control Board [RWQCB], etc.). Since the major use of recycled water will be for irrigation, the demand is very high in summer and practically non-existent in the winter. Since the City does not have a reservoir large enough to balance seasonal supply and demand, the ability to meet peak demand during the summer months will therefore be the limiting factor when determining water availability. Since San Luis Obispo Creek is an effluent dependent habitat, the seasonal demand for recycled water for the fishery coincides with the demand for irrigation use. NMFS originally issued a Biological Opinion for the project action in July 1999. This was minimally revised in June 2001 to increase the permitted number of steelhead allowed to be impacted (injured or killed) by surveying and monitoring activities. The Biological Opinion sets forth 17 Terms and Conditions for protection of steelhead habitat, as described in the table below. The City has been diligently working to meet the Terms and Conditions of the Biological Opinion. a - t Water Reuse Project-Proposed Reinitiation of NMFS Consultation 2 Table 1: NMFS 2001 Biological Opinion for the Water Reuse Project Term and Description Status as of March 2005 Condition Habitat Mitigations lA Minimum 1.7 cfs release Proposed for modification to 2.5 cfs with this consultation 1B Monthly minimum releases Proposed for deletion 1C Hayashi wells Completed 11) Pool habitat Compl,eted, submitted for approval I Instream habitat Conmiplieted,submitted for approval IF Stranding plan Completed,Submitted for Approval* Flow Measurements 2A Streamflow gage Submitted for Approval* 2B Document daily minimum release Will be implemented as part of project action Monitoring Requirements 3A Emigration monitoring Completed 3B Abundance monitoring Completed Reporting Requirements 4A Compliance with 1C Completed 413 Compliance with 1F Will be implemented as part of project action 4C Compliance with 2A and 2B Will be implemented as part of project action 4D Raw emigration data Completed 4E Raw abundance data Completed 4F Annual compliance report to State Water Completed,will continue as needed Resources Control Board SWRCB 4G SWRCB notification,if compliance Completed will continue as needed problems encountered *tentative NMFS approval has been received for these plans A watershed steelhead abundance study was completed in 2003 as required by Term and Condition 3B. The results of the study indicated a greater abundance of steelhead found in the lower reach of San Luis Obispo Creek than was assumed in the original Biological Opinion. This portion of the creek is the same area which is most affected by diversion of water by the Water Reuse Project, meaning potentially more steelhead could be affected by the project action. As a result of the abundance study, NMFS detailed an approach to reinitiate consultation with regards to steelhead mitigation for the Water Reuse Project. City staff agrees with the approach and has reached a tentative agreement with NNMS regarding the scope of a reinitiated formal consultation. In particular, the elements of this approach include: 1. Increase in the minimum discharge to San Luis Obispo Creek 2. Completion of items in the original Biological Opinion, and 3. Implementation of a monitoring program at Coon Creek. a - � Water Reuse Project-Proposed Reinitiation of NMFS Consultation 3 City staff have evaluated the effects on the Water Reuse Project of an increase in minimum daily average discharge from 1.7 cfs, as required by Term and Condition IA,to 2.5 cfs. This represents a significant additional dry season flow for the creek (with obvious corresponding benefits to the steelhead population). Given that dry season flows are the limiting factor for the design of the project,the impacts of this increased discharge predominately occur in June through August. Based on previous irrigation projections, it is possible that the increased discharge could mean a decrease of recycled water deliveries by 100 acre feet during the summer months. However,the project will still be able to deliver its design 1000 afy, and meet summer demands, though the following methods: • Elimination of Term and Condition 1B • Identify year-round recycled water customers, and • Supplement with potable water back-up at peak demand, as needed. Term and Condition 1B requires almost complete dedication of the WRF discharge to San Luis Obispo Creek during the winter months. This could effectively prevent the City from providing recycled water during that time. By eliminating this condition, the City will have the flexibility to identify year-round recycled water customers. Examples of year-round customers could be industrial processors or dual-plumbed buildings. Year-round customers will reduce the peak summer demand and help offset impact of the increased minimum discharge to San Luis Obispo Creek. If needed, the City also has a potable water supply back-up at.the WRF to help meet peak summer irrigation demands. NMFS has also indicated that they are willing to accept the City's efforts to comply with the Terms and Conditions of the June 2001 Biological Opinion. Specifically, Terms and Conditions 1D and IE require the creation or preservation of steelhead pool and instream habitat. The City will request NMFS approval, as currently allowed by the Biological Opinion, to consider projects completed to date as fulfillment of those Terms and Conditions. The City has already provided a detailed report to NMFS regarding those projects and their benefits. The City will still have to complete remaining Terms and Conditions, such as reporting requirements and installation of a flow gauge. Finally, the City will develop and implement a NMFS-approved steelhead monitoring program for Coon Creek. The Coon Creek project removed a fish passage barrier and allowed access to several miles of pristine steelhead habitat. The objective of the monitoring program will be to verify the re- establishment of fish passage at the project location. The monitoring program, or findings resulting from implementation of the program, would not be considered a condition of the Biological Opinion. Therefore, the City's Water Reuse Project would not be conditioned by the results of that program. The City has received a letter from NMFS, dated March 10, 2005, which confirms our understanding of the approach for reinitiation of formal consultation. NMFS has determined that sufficient information is available to proceed with, and complete, the consultation process (i.e., no further studies will be required of the City). Upon Council approval, staff will request United States Environmental Protection Agency to reinitiate consultation with NMFS for the City's Water Reuse Project reflecting the increased minimum discharge. NMFS has indicated that the consultation should be completed within the 135 day limit, allowing the project to start once construction is complete. of '� Water Reuse Project-Proposed Reinitiation of NMFS Consultation 4 CONCURRENCES The City Attorney's Office and the City's Natural Resources Manager concur with this recommendation. FISCAL IMPACT Costs for the Coon Creek monitoring program will depend on the scope of services yet to be developed The City anticipates approximately$3000 to develop the program in coordination with NMFS. Implementation of the program may be accomplished using the services of the City's biologist. No additional costs are anticipated to implement the recommended actions. Consultant services for the required monitoring could cost up to $30,000. If the scope of work requires consultant services, staff will return to Council with a recommended scope of services, agreement, and detailed cost estimate. ALTERNATIVES If Council does not support the recommendations, City staff could pursue legal actions to challenge NMFS' assertion that reinitiation is warranted based on the results of the abundance survey. In the meantime, it is possible that recycled water deliveries could not be initiated. Significant fiscal impacts could result from the legal actions and potential loss of State funding due to lack of recycled water delivery. Staff does not recommend this alternative.