HomeMy WebLinkAbout12-01-2015 Item 13 - Consider Memorandum of Agreement for Interim Water & Sewer for Fiero Ln & Clarion Court
Meeting Date: 12/1/2015
FROM: Michael Codron, Community Development Director
Prepared By: Marcus Carloni, Associate Planner
SUBJECT: CONSIDERATION OF A MEMORANDUM OF AGREEMENT FOR INTERIM
WATER AND SEWER SERVICE ASSOCIATED WITH THE PROPOSED
ANNEXATION OF APPROXIMATELY 40 ACRES OF PROPERTY ALONG
FIERO LANE AND CLARION COURT. PROJECT INCLUDES AN
ADDENDUM TO THE AIRPORT AREA AND MARGARITA AREA
ENVIRONMENTAL IMPACT REPORT
RECOMMENDATION:
1. Adopt a Resolution (Attachment C) approving and authorizing the Mayor to execute a
Memorandum of Agreement (Attachment F) regarding the future annexation of the Fiero
Lane and Clarion Court area and the provision of interim water and sewer service to Fiero
Lane Water Company; and
2. Approve an Addendum to the Airport Area and Margarita Area EIR (Attachment H); and
3. Introduce an Ordinance (Attachment E) amending Municipal Code Chapter 13.16 to allow
for limited interim water and sewer service outside of the City.
SITE DATA
Applicant Fiero Lane Water Company
Representative Rob Miller, Wallace Group
Zoning BP, Manufacturing, Service
Commercial per Airport Area
Specific Plan
General Plan Business Park/Services &
Manufacturing
Site Area ~40 Acres
Environmental
Status
Addendum to AASP and MASP
Environmental Impact Report
recommended for adoption.
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1.0 REPORT IN BRIEF
This is the review of a request for interim water and sewer service hookup associated with the
proposed future annexation of the Fiero Lane and Clarion Court area. The review includes a draft
Memorandum of Agreement between the City and Applicant (see section 3.4), a Municipal Code
amendment to allow service to an outside user (see section 3.2), authorization for submittal of an
outside user agreement application to the Local Agency Formation Commission, and an
addendum to the Airport Area and Margarita Area Environmental Impact Report (see section
3.3).
The future annexation is consistent with General Plan requirements for annexation in the Airport
Area (Land Use Element Policy 1.13.5) as discussed in section 3.1 below. Additionally, staff has
provided recommended language to amend Municipal Code Chapter 13.16 to allow interim
service hookup to the subject area (Section 3.2) and the prepared Addendum indicates that new
conditions have have not occurred that would require preparation of a subsequent Environmental
impact Report (Section 3.3). The subject location is within the City’s urban reserve line and is
surrounded by City incorporated property. The proposed future annexation was anticipated by
the Airport Area Specific Plan and the request for interim service is supported by staff as
discussed in section 3.0 of this report.
2.0 DISCUSSION
Background
2.1 Site Information/Setting
The project site includes approximately 40 acres of land within the City’s urban reserve line
and is bounded by property in the incorporated City on the north, east, and south. The area
currently has potable water, wastewater collection and wastewater treatment service provided
by the Fiero Lane Water Company (FLWC).
The project site is pre-zoned for Business Park, Service Commercial, and Manufacturing uses
and existing development includes approximately 500,123.5 sq. ft. of one and two story
structures accommodating light manufacturing, service commercial, and office uses.
Site Size ~40 Acres
Present Use & Development Light Manufacturing, Service Commercial, and Office Uses.
Presently developed with one and two story buildings.
Land Use/(Zoning) Services & Manufacturing/Business Park (C-S, M, BP)
Access Fiero Lane from Broad Street & Clarion Court from Tank Farm
Road
Surrounding Use/Zoning North: Self Storage and Commercial Buildings (C-S & BP
zoning)
South: Airport & Vacant Land/Commercial Buildings (County
Zoning & BP zoning)
East: Commercial Buildings and Residences ( C-S & R-1)
West: Airport (County Zoning)
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2.2 Project Description
The project proposes initiation of a proposed annexation of approximately 40 acres of
property along Fiero Lane and Clarion Court (see Attachment B, Annexation Boundary
Map). The proposed initiation (Phase 1) includes the provision of interim water and sewer
service associated with the future annexation as discussed in the draft Memorandum of
Agreement between the City and the Fiero Lane Water Company (Attachment F,
Memorandum of Agreement).
The applicant, Fiero Lane Water Company, has indicated that the need for interim service
connection is due to: 1) reliability of the existing water supply (three wells ~100 feet in
depth), 2) the time, complexity, and cost of annexation, and 3) the poor quality of the existing
water source which requires continuous and costly treatment (these items are further detailed
in Attachment G, Interim Service Letter).
The physical changes are expected to be limited to connections and improvements to existing
infrastructure, and no specific additional development is proposed. The proposed phases are
provided in Attachment I.
3.0 PROJECT ANALYSIS
The proposed annexation was anticipated and supported by previous action of the City Council
with adoption of the Airport Area Specific Plan (AASP). With adoption of the AASP, the City
preferred to annex the entire plan area but it was recognized that some properties would not be
annexed in the first phase (AASP Chapter 9.1). The Ordinance adopting the AASP (Ordinance
No. 1481, 2005 Series) recognized existing un-annexed properties within the plan boundary and
pre-zoned said properties in anticipation of their eventual annexation.
Staff supports the initiation of the proposed annexation; support for Phase 1 with Phase 2 (final
annexation) to return to the Planning Commission and City Council at a later date. Staff provides
the following for Council consideration in support of the proposal:
3.1 Future Annexation Supported by General Plan:
Although final annexation is not a part of Council’s consideration at this time, it is important
to understand General Plan policy as it relates to the proposed future annexation during this
initiation/interim service phase of the project. General Plan Land Use Element Policy 1.13.5
provides the annexation criteria for properties in the AASP boundary.
Staff finds the proposed future annexation to be consistent with the criteria outlined in 1.13.5
as provided below.
1.13.5. Annexation in Airport Area
Properties in the Airport Area Specific Plan may only be annexed if they meet the
following criteria:
a. The property is contiguous to the existing city limits; and
Staff Response: Compliant
b. The property is within the existing urban reserve line; and
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Staff Response: Compliant
c. The property is located near to existing infrastructure; and
Staff Response: Compliant. The property is surrounded by existing
infrastructure
d. Existing infrastructure capacity is available to serve the proposed development;
and
Staff Response: Compliant. See EIR Addendum (Attachment H) and
MOA (Attachment F).
e. A development plan for the property belonging to the applicant(s) accompanies
the application for annexation; and
Staff Response: No development is proposed.
f. The applicant(s) agree to contribute to the cost of preparing the specific plan and
constructing area-wide infrastructure improvements according to a cost -sharing
plan maintained by the City.
Staff Response: Compliant. The specific plan has already been prepared
and the applicant is making the required infrastructure improvements
and/or paying the established plan preparation fees as appropriate.
3.2 Amendment to Municipal Code Chapter 13.16
With some limited exceptions, General Plan Land Use Element Policy 1.13.1 “Water and
Sewer Service” prohibits the provision of water and sewer service to areas “outside the City
limits.” This policy is regulated by Municipal Code Chapter 13.16 “Water and Sewer
Service for Private Use Outside City Limits.”
Policy 1.13.1 is a core tenet of the City’s General Plan Growth Manage ment policies. The
purpose of the policy is to prevent delivery of City potable water and sewer services outside
City Limits. The policy, along with the establishment of the City’s Urban Reserve Line
(LUE Policy 1.7.1), has been effective at avoiding the growth inducing impacts that would
likely occur if the City made a practice out of providing water and sewer service to
development in County unincorporated areas.
In this instance, the applicant has submitted an annexation application and has agreed to a
Memorandum of Agreement (MOA), which establishes timeframes by which the applicant
must complete annexation or be subject to disconnection from the interim connection to City
service (for more information on the MOA see section 3.4 below). This process is consistent
with LUE Policy 1.13.3, Annexation Purpose and Timing, which permits phased annexations
when consistent with a City-approved specific plan. The proposed annexation is consistent
with the City’s annexation strategy, which was approved along with the first phase of the
Airport Area Annexation.
To support the application, the City Council would need to modify the existing “exception”
language within Municipal Code Chapter 13.16. Staff recommends adding subsection “E”
which includes language to allow water and sewer service to the Fiero Lane and Clarion
Court annexation area. A draft Ordinance to modify Chapter 13.16 is provided as
Attachment E with a legislative draft provided as Attachment D.
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3.3 Environmental Review
Staff has prepared an Addendum to the Environmental Impact Report adopted with the
Airport Area and Margarita Area Specific Plan’s in 2005. The addendum was prepared to
respond to the current drought conditions because the 2005 EIR’s water supply analysis was
evaluated based on normal precipitation (see Attachment H, Addendum to AASP/MASP
EIR).
The addendum concludes that the proposed project does not meet the criteria for preparing a
subsequent or supplemental EIR under CEQA Guidelines Section 15162 and is consistent
with the provisions of CEQA Guidelines Sections 15164 and 15183.5 (Attachment H,
Addendum to AASP/MASP EIR, section 3.0).
3.4 Memorandum of Agreement Contents
Attachment F includes a draft Memorandum of Agreement (MOA) between the applicant and
the City. The MOA sets forth the terms and condition regarding the possible annexation of
the Area into the City, including, but not limited to, the provision for interim water and sewer
service and the upgrade and transfer of certain portions of the applicant’s water and sewer
infrastructure to City. The following is a summary of the major terms and conditions of the
MOA.
1) Interim Water and Sewer Service Provision: Once the appropriate approvals are
received, the City will provide water and wastewater service at normal commercial
rates. If the company does not meet the required timing schedule or is otherwise in
default of any term or condition of the MOA the City can charge two times the
normal rates for both water and sewer. If the Company does not meet the schedule or
the terms of the MOA or the annexation does not take place, the City can remove the
interim connection at the expense of the Company.
2) Costs and Fees: The applicant is responsible for all costs and expenses for the
annexation and the required infrastructure. The water and wastewater impact fees
will be those applicable as of the effective date of the MOA. The recycled water
impact fees are capped at $80,000.
3) Responsibilities of the City: Upon final acceptance of the infrastructure and
improvements, the City will be responsible for operation and maintenance of the
accepted water and sewer infrastructure and the provision of water and wastewater
service to the Area duly annexed and served by such infrastructure. The City is also
agreeing to assist in possible land based financing.
4) Existing and Future Development: Upon annexation, the property may be further
developed consistent with City policies, rules and regulations including, but not
limited to, the General Plan, the Airport Area Specific Plan (AASP), and other
provisions of the Municipal Code and state law.
4.0 CONCURRENCES
The project has been reviewed by all pertinent City departments (Utilities, Planning, Public
Works, Engineering, Fire, Building, Natural Resources, Economic Development) and comments
have been incorporated into the staff report, MOA, Addendum, and recommended
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Resolution/Ordinance.
5.0 FISCAL IMPACT
When the Airport Area Specific Plan was adopted, it was accompanied by a fiscal impact
analysis, which found that annexation of the properties within the Airport Area Specific Plan
(AASP) boundary would result in positive fiscal impacts for the City; approximately $750,000
net fiscal benefit annually at build-out. The proposed future annexation will help the City realize
the positive fiscal impact indicated in the fiscal analysis, as anticipated by the AASP.
Water and Sewer Fund revenue associated with the proposed interim service period
(approximately January 2016 through December 2019) is $651, 446 as shown in the table below.
Historical outside the city water and sewer service rates (two times the normal commercial rate)
would generate $1,302,893.
2015/16 2016/17 2017/18 2018/19 2019/20 Total
Water Fund:40,920$ 83,033$ 86,837$ 77,567$ 39,944$ 328,301$
Sewer Fund:38,073$ 78,389$ 80,740$ 83,135$ 42,807$ 323,145$
Revenue Total:651,446$
Revenue Total at Outside City Rate:1,302,893$ NOTE:
Revenue estimates are based on the following:
1. Metered annual water consumption (approximately 11 acre feet/year) provided by the FLWC for November 2013-14,
2. Water and sewer rates adopted with the 2015-17 Financial Plan and estimated rate increases for FY 2017-18 through FY 2019-
20.
3. Drought surcharge on both volumetric and base fees For FY 2015-16 through 2017-18.
6.0 ALTERNATIVES
1. Continue the project with direction to the applicant and staff on pertinent issues.
2. Deny the Proposal. Deny the proposed annexation initiation and associated request for
interim water and sewer service to an outside user. Denial of the request is not
recommended because the project is consistent with the City’s annexation strategy for the
Airport Area and appropriate conditions have been established to ensure that the
annexation occurs in an orderly fashion.
Attachments:
a - Vicinity Map
b - Annexation Boundary Map
c - Draft Resolution
d - Municipal Code Chapter 13.16 Legislative Draft Amendments
e - Draft Ordinance Amending MC Chapter 13.16
f - Memorandum of Agreement
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g - Interim Service Letter
h - Addendum to AASP/MASP EIR
i - Proposed Phases
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RESOLUTION NO. (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AND AUTHORIZING THE
MAYOR TO EXECUTE A MEMORANDUM OF AGREEMENT
REGARDING THE PROPOSED ANNEXATION AND PROPERTY
ALONG FIERO LANE AND CLARION COURT AND THE PROVISION
OF INTERIM WATER AND SEWER SERVICE (850 FIERO LANE)
WHEREAS, on December 1, 2015, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis
Obispo, California, for the purpose of considering a Memorandum of Agreement regarding the
proposed annexation of property along Fiero Lane and Clarion Court and the provision of interim
water and sewer service; and
WHEREAS, an Addendum to the Environmental Impact Report for the Airport Area and
Margarita Area Specific Plans was prepared to review any new impacts/conditions associated
with the proposed project; and
WHEREAS, the City Council has duly considered all evidence, including testimony of
the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing.
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. That the Memorandum of Agreement between the City and the Fiero Lane Water
Company is consistent with the Airport Area Specific Plan and General Plan policies.
2. That the Memorandum of Agreement between the City and the Fiero Lane Water
Company adequately addresses the parameters of interim service and establishes
sufficient penalties/timeframes to ensure future annexation or disconnection from City
services.
3. That the Addendum to the Airport Area and Margarita Area Environmental Impact
Report (adopted August 23, 2005 and amended September 2, 2014) properly
characterizes the current drought conditions and provides substantial evidence that new
conditions have not occurred that would require preparation of a subsequent
Environmental Impact Report per CEQA Guidelines Sections 15162, 15164, and
15183.5.
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Resolution No. ________ (2015 Series) Page 2
R ______
SECTION 3. Action. The City Council hereby approves and authorizes the Mayor to
execute the Memorandum of Agreement between the City and the Fiero Lane Water Company
attached hereto as Exhibit “A” and incorporated herein by this reference.
Upon motion of _______________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2015.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Jon Ansolabehere
Interim City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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Chapter 13.16
WATER AND SEWER SERVICE FOR PRIVATE USE OUTSIDE CITY LIMITS
Sections:
13.16.010 City not to approve any provision of or entitlement to.
13.16.020 Exceptions.
13.16.010 City not to approve any provision of or entitlement to.
After the effective date of the ordinance codified in this chapter, the city shall not approve any provision or
entitlement to water or sewer service for the use or benefit of properties outside the city limits. (Ord. 951
§ 1, 1983)
13.16.020 Exceptions.
This chapter shall not appl y to:
A. Any property duly annexed after the effective date of the ordinance codified herein;
B. Any public or private party with which the city had an effective agreement for provision of services prior
to the effective date of the ordinance codified here in;
C. Properties which currently receive city water or sewer service without a previously effective agreement;
D. Provision of sewer service to the Hidden Hills Mobile Home Park, as provided in the State of California
Water Resources Control Board Order. No. WOO 824. (Ord. 951 § 2, 1983)
E. Provision of interim water and/ or sewer service to the Fiero Lane and Clarion Court annexation area,
as set forth in the Memorandum of Agreement between the City of San Luis Obispo and Fiero Lane
Water Company and adopted by City Council Resolution No. ________ (2015 Series).
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ORDINANCE NO. (2015 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA AMENDING MUNICIPAL CODE CHAPTER 13.16 TO
ALLOW INTERIM WATER AND SEWER SERVICE ASSOCIATED WITH THE
PROPOSED FUTURE ANNEXATION OF THE FIERO LANE AND CLARION
COURT AREA (850 FIERO LANE)
WHEREAS, with some limited exceptions, Chapter 13.16 of the City of San Luis
Obispo’s (“City”) prohibits the provision of water or sewer service for the use and benefit of
properties outside of the City’s limits; and
WHEREAS, on December 1, 2015, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis
Obispo, California, and adopted Resolution No. XXXX-2015 approving a Memorandum of
Agreement (the “MOA”) between the City and Fiero Lane Water Company (“FLWC”); and
WHEREAS, consistent with General Plan Land Use Element Policy 1.13.5, the MOA
contemplates the future annexation of certain real property within the City’s Airport Area
Specific Plan (the “Annexation”). Such property is currently improved with various commercial
uses and water and sewer service is currently provided by FLWC; and
WHEREAS, as part of the MOA, the City has agreed to provide interim water and sewer
service to such property until such time the property is duly annexed to the City, as well as other
terms and conditions, including, but not limited to, disconnection of such water and sewer
service in the event annexation is not successful or the failure of FLWC to comply with certain
obligations as set forth in the MOA; and
WHEREAS, by this Ordinance, the City Council desires to amend Chapter 13.16 of the
City’s Municipal Code to allow for the temporary provision of water and sewer service to the
area to be annexed consistent with the terms and conditions of the MOA; and
WHEREAS, an Addendum to the Environmental Impact Report for the Airport Area and
Margarita Area Specific Plans was prepared to review any new environmental
impacts/conditions associated with the proposed project including the modifications to the City’s
Municipal Code related to the provision of interim water and sewer service under the MOA; and
WHEREAS, the City Council has duly considered all evidence, including testimony of
the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
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Ordinance No.______ (2015 Series) Page 2
SECTION 1. Findings. Based upon all the evidence, the Council makes the following
findings:
1. That the recitals above are true and correct and incorporated herein by this reference.
2. That the proposed amendment will not significantly alter the character of the City or
cause significant health, safety or welfare concerns, since the amendments are consistent
with the intent and purpose of the General Plan.
3. That the provision of water and sewer service on an interim basis under the MOA is
necessary in order for such property to be duly annexed into the City.
4. That the provision of water and sewer service on an interim basis under the MOA is
necessary in order for certain improvements to be feasibly constructed in the area to be
annexed for ultimate acceptance into the City’s water and sewer infrastructure.
5. That the MOA between the City and the Fiero Lane Water Company adequately
addresses the parameters of interim water and sewer service and establishes sufficient
penalties/timeframes to ensure future annexation or disconnection from City services.
6. That the Addendum to the Airport Area and Margarita Area Environmental Impact
Report (adopted August 23, 2005 and amended September 2, 2014) properly
characterizes the current drought conditions and provides substantial evidence that new
conditions have not occurred that would require preparation of a subsequent
Environmental Impact Report per CEQA Guidelines Sections 15162, 15164, and
15183.5.
SECTION 2. Section 13.16.020 “Exceptions” of Municipal Code Chapter 13.16 “Water
and Sewer Service for Private Use Outside City Limits” is hereby amended to add subsection
“E” to read as follows:
E. Provision of interim water and/ or sewer service to the Fiero Lane and Clarion Court
annexation area, as set forth in the Memorandum of Agreement between the City of
San Luis Obispo and Fiero Lane Water Company and adopted by City Council
Resolution No. ________ (2015 Series).
SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase
of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this ordinance, or any other provisions of the City’s rules and regulations.
It is the City’s express intent that each remaining portion would have been adopted irrespective
of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be
declared invalid or unenforceable.
SECTION 4. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
13.e
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Ordinance No.______ (2015 Series) Page 2
the expiration of thirty (30) days after its final passage.
INTRODUCED on the_______ day of _____, 2015, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the______ day of______, 2015, on the following
vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Jon Ansolabehere
Interim City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Jon Ansolabehere
Interim City Clerk
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MEMORANDUM OF AGREEMENT BY AND BETWEEN THE
CITY OF SAN LUIS OBISPO AND THE
FIERO LANE WATER COMPANY
This Memorandum of Agreement (MOA) is made and entered into this _______ day of
___________, 20____ (the “Effective Date”) by and between the City of San Luis Obispo, a
municipal corporation and charter city, (hereinafter referred to as “CITY”) and, Fiero Lane
Water Company, a California corporation (hereinafter referred to as “COMPANY”). CITY, and
COMPANY shall hereinafter be referred to collectively as “PARTIES”.
RECITALS
WHEREAS, COMPANY is a mutual water company which provides water and sewer
service to property owners and their tenants within its service boundaries. A map depicting
COMPANY’s service area and a listing of all properties served by COMPANY is attached
hereto as Exhibit 1, and incorporated herein by this reference; and
WHEREAS, COMPANY’s service area is immediately adjacent to CITY’s municipal
boundaries, but within CITY’s urban reserve line and CITY’s Airport Area Specific Plan
annexation area; and
WHEREAS, CITY’s General Plan Water and Wastewater Element Policy No. 1.19.1A
of the Water and Wastewater Element and CITY’s Municipal Code section 13.04.030 state that
the CITY shall be the only purveyor of water and wastewater services in the CITY’s limits; and
WHEREAS, COMPANY and CITY have been negotiating the possible annexation of a
portion of COMPANY’s service area into CITY’s boundaries. A map depicting this area to be
possibly annexed is attached hereto as Exhibit 2 (the “Area”) and incorporated herein by this
reference;
WHEREAS, by this MOA, COMPANY and CITY wish to set forth certain terms and
conditions regarding the possible annexation of the Area into the CITY, including, but not
limited to, the provision for interim water and sewer service and the upgrade and transfer of
certain portions of COMPANY’s water and sewer infrastructure to CITY.
NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements stated herein, the PARTIES agree as follows:
1. Payment of Costs and Expenses – COMPANY agrees to pay for any and all
costs and expenses related to the annexation of the Area into CITY’s municipal boundaries,
including, but not limited to, all of CITY’s administrative fees, consultant fees, filing fees,
planning fees, engineering fees, attorney’s fees, surveying fees, inspection fees, construction
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costs, conditions of approval and mitigation measures related to the preparation and review of
this MOA, and all actions contemplated herein. COMPANY and CITY acknowledge and agree
that the list of permit fees attached hereto as Exhibit 3 and incorporated herein by this reference
is a fair and reasonable estimate of the anticipated permit fees associated with the Annexation.
COMPANY acknowledges and agrees that such estimate is subject to change. Within fifteen
(15) days of the Effective Date of this MOA, COMPANY shall deposit the sum of twenty five
thousand dollars ($25,000) (the “Deposit”) with CITY. Such amount may be commingled with
CITY’s other funds. CITY may deduct its expenses from such deposit and shall provide
COMPANY with regular invoices. COMPANY shall have thirty (30) days from the date of such
invoice to contest the expenses and charges so described. Whenever the Deposit declines to
$5,000 or less, or is insufficient to cover any anticipated costs or expenses, CITY may request an
additional deposit in an amount determined by CITY in its sole and absolute discretion.
COMPANY’s failure to timely deposit such funds shall be considered a material breach of this
MOA, in which case CITY may cease any further action without any liability whatsoever.
2. Annexation of Area – Subject to the terms and conditions herein, after receiving
a written request from the COMPANY, the CITY shall hold a public hearing for the
consideration of the annexation request, and if authorized by the City Council, City shall file an
application with the San Luis Obispo Local Agency Formation Commission (“LAFCO”) to
annex the Area into the CITY’s municipal boundaries (the “Annexation”). COMPANY shall
provide any and all information, plans (including a plan for services), documents or signatures
needed for such application. COMPANY acknowledges and agrees that such annexation
proceedings are subject to the discretion of LAFCO, other affected agencies and protest
proceedings, and that CITY makes no guaranties, representations or warranties whatsoever
regarding any outcome of the Annexation or related process. COMPANY further acknowledges
that the Annexation is subject to environmental review pursuant to the California Environmental
Quality Act and potentially subject to certain conditions of approval and mitigation measures.
Upon annexation of the Area into the CITY’s municipal boundaries (i.e. effective date of the
certificate of completion) and CITY’s acceptance of the water and sewer infrastructure as set
forth in Section 3.d below, COMPANY shall forever cease operating within the Area so
annexed.
3. COMPANY Infrastructure -
a. Existing Conditions of COMPANY Infrastructure – COMPANY acknowledges
and agrees that much of the existing water and wastewater infrastructure owned
by COMPANY being used to provide water and wastewater service to the Area
does not currently meet CITY standards for acceptance by the CITY following
Annexation. COMPANY acknowledges that the existing stormdrain infrastructure
is currently owned and maintained by the County and appears to be acceptable,
subject to the completion of specific stormdrain improvements by the County,
including cleaning and final inspection of the infrastructure prior to Annexation.
b. Required Improvements – Prior to Annexation of the Area into CITY and CITY’s
provision of water and sewer to the Area, COMPANY shall upgrade the
COMPANY’s water and sewer infrastructure to City standards as identified in
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Exhibit 4 attached hereto and incorporated herein by this reference. In addition,
COMPANY shall coordinate with the County to arrange for the inspection and
cleaning of the existing stormdrain by the County. COMPANY acknowledges and
agrees that additional improvements to COMPANY’s water and sewer
infrastructure may be needed as later determined by CITY in its sole and absolute
discretion. COMPANY further acknowledges and agrees that upon completion of
the required improvements to the water and sewer infrastructure, COMPANY
shall repair the affected right of way in its entirety to a state of good repair as
determined by the CITY’s Director of Public Works. COMPANY hereby
expressly waives Labor Code section 1781 and hereby releases, indemnifies and
holds harmless CITY from and against any claim that the infrastructure
improvements required herein are subject to the payment of prevailing wages.
c. Responsibilities of COMPANY for Upgrades – COMPANY shall be solely
responsible for all aspects of completing the required infrastructure upgrades
including, but not limited to, financing, design, permitting, bidding and
construction and inspection. CITY will consider the necessary actions to establish
land based funding opportunities or other related funding mechanisms in order to
finance those public improvements that the COMPANY elects not to self-fund,
subject to property owner approval and public hearing requirements as required
by law.
d. Transfer of Infrastructure and Facilities – Upon completion of all infrastructure
upgrades, COMPANY shall provide CITY with:
i. A complete set of record drawings prepared by a registered engineer
depicting the actual conditions and the locations of the water and sewer
facilities proposed to be transferred to CITY;
ii. All documents showing all of COMPANY’s easements and real property
located within the Area; and
iii. Executed instruments, which shall be in a form or forms to the satisfaction
of the City Attorney, transferring all water and sewer infrastructure, and
related easements and real property within the Area to the CITY.
COMPANY acknowledges that such transfer is subject to CITY accepting
such infrastructure, easement and real property. COMPANY agrees to
furnish CITY with a title insurance policy showing title to any easement or
real property to be transferred in the name of CITY with coverage in the
amount of the fair market value the property or its replacement value, as
applicable.
COMPANY acknowledges and agrees that unless and until its water and sewer infrastructure are
accepted by CITY, COMPANY shall be solely responsible for the operation and maintenance of
such infrastructure. The CITY reserves the right to determine which infrastructure it will accept
as CITY responsibility and which will remain the responsibility of COMPANY.
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4. Responsibilities of CITY – Upon final acceptance of said infrastructure and
improvements, CITY shall be responsible for operation and maintenance of the accepted water
and sewer infrastructure and the provision of water and wastewater service to the Area duly
annexed and served by such infrastructure.
5. Interim Water and Sewer Service Provision –
a. Interim Hook-Up - COMPANY represents that it has received written
confirmation of support for annexation from property owners within its service
area that represent more than 50% of the assessed value of the land within the
proposed annexation boundary. As such, COMPANY anticipates the successful
completion of Annexation. CITY and COMPANY agree that due to the time
required to complete the Annexation process, including the design and
construction of needed improvements to the infrastructure for final acceptance by
CITY, it is necessary to connect infrastructure owned and operated by
COMPANY to City’s system for interim water and sewer service to properties
served by COMPANY while the annexation process and infrastructure
improvements are being completed (the “Interim Service Period”). Prior to
providing interim sewer service, the COMPANY must demonstrate to the
satisfaction of the City’s Utilities Director, separation of the east and west side
wastewater flow. Prior to providing such interim water and sewer service
however, CITY shall, at COMPANY’s sole expense, submit an application with
LAFCO pursuant to Government Code Section 56133 to provide new services
outside its jurisdictional boundaries. CITY and COMPANY understand and agree
that approval for such extraterritorial service is within the discretion of LAFCO.
COMPANY further acknowledges and agrees that CITY’s obligation to provide
interim water or sewer service is subject to amendment of Chapter 13.16 of the
CITY’s Municipal Code in order to allow water and sewer service outside of the
City’s limits. Should LAFCO deny such application or should CITY’s Municipal
Code not be so amended, CITY shall have no obligation whatsoever to provide
COMPANY with water or sewer service prior to Annexation. During the Interim
Service Period, COMPANY shall continue to provide its customers with water
and sewer service and shall retain full and absolute responsibility for operations,
maintenance and repair of all facilities up to the point of connection of
COMPANY facilities to CITY’s system. Connection to the CITY’s water and
sewer systems will require approval of final connection plans by the CITY’s
Utilities and Public Works Directors. All discharges into the City’s sewer system
shall comply with all CITY regulations; the CITY reserves the right to prohibit
any discharge into the CITY’s sewer system from COMPANY’s service area
during the Interim Service Period.
b. Prior to interim hook-up, COMPANY shall provide CITY with written
confirmation from the Central Coast Regional Water Quality Control Board
(“RWQCB”) that East Airport, also known as the Morabito-Burke and Senn-
Glick commercial developments, can either relocate the existing wastewater
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treatment facility operated by the COMPANY or install a new wastewater
treatment facility on their premises. At a minimum, the written confirmation must
specifically reference the Fiero Lane Water Company, Wastewater Discharge and
Water Recycling Requirements Order NO. R3-2004-0154, Morabito-Burke and
Senn-Glick commercial developments or East Airport, permission to relocate and
site the Fiero Lane Water Company treatment facility or site a new wastewater
treatment facility at Morabito-Burke and Senn-Glick commercial developments,
and be signed by the RWQCB’s Executive Officer or his designee. In addition, if
the facility is not relocated prior to Annexation, the COMPANY shall also
provide to City written confirmation and documentation as required by CITY that
COMPANY is technically and financially capable of the relocation of the facility
to the location and in accordance with the RWQB’s requirements. Financial
documentation can include a bond, letter or guarantee or other documentation
acceptable to CITY.
c. During the Interim Service Period, the CITY will be designing and constructing a
replacement for the existing sewer gravity main in Fiero Lane and the Airport
sewer pump station that will serve the Area. The CITY will work with
COMPANY to identify locations for these replacement facilities and COMPANY
agrees to grant easements to the CITY for both the pump station and gravity main
in the location to be determined later as otherwise reasonably required by CITY.
d. Payment for Service - COMPANY shall be responsible for paying any and all
rates and fees associated with the provision of water or sewer service during the
Interim Service Period as described in this Section until transfer of COMPANY
sewer and water infrastructure to CITY is complete and CITY service to
individual properties served by COMPANY is established.
i. Upon connection of COMPANY to CITY water service and cessation of
COMPANY (well) water service to the properties listed in Exhibit 1,
COMPANY shall be billed for wastewater service based upon metered
water use consistent with CITY practices for billing non-residential
customers in the City.
ii. During the Interim Service Period, water service rates shall be at normal
rates in effect at the time of service unless the COMPANY is not in
compliance with the Schedule (defined below) or is otherwise in default of
any term or condition of this MOA, in which case such rates shall be two
times the normal rate in effect at the time of service or as determined by
the CITY’s Director of Utilities.
iii. During the Interim Service Period, sewer service rates shall be at normal
rates in effect at the time of service unless the COMPANY is not in
compliance with the Schedule or is otherwise in default of any term or
condition of this MOA, in which case such rates shall be two times the
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normal rate in effect at the time of service or as determined by the CITY’s
Director of Utilities.
6. Improvement and Performance Bond – Prior to COMPANY connecting to
CITY for interim water and sewer service as set forth in Section 5.a above, COMPANY shall, at
COMPANY’s sole expense, obtain improvement bonds or other similar assurances in favor of
CITY guaranteeing the costs and expenses for the following:
a. The processing of the Annexation application; and
b. The removal of the water and sewer improvements for interim water and sewer
service and restoration of the affected area.
The amount of each of the bonds shall be determined by the CITY’s Director of Utilities, in his
or her sole and absolute discretion. The CITY reserves the right to increase the amount of such
bonds in the event the anticipated costs and expenses to perform the work guaranteed by such
bond are greater than the amount so bonded.
7. Water, Wastewater, and Recycled Water Development Impact Fees –
a. Water and Wastewater Development Impact Fees. Subject to the terms and
conditions herein, COMPANY shall pay the water and sewer development impact
fees in place as of the Effective Date and the fees identified for the City’s
replacement of the Airport sewer pump station to serve the Area, which are more
particularly described in Exhibit “3 & 4” attached hereto and incorporated herein.
These fees may be financed by CITY through land based financing or other
equivalent means under terms outlined and negotiated during the financing of said
impact fees. The impact fee payment(s) shall be paid at time of Annexation.
b. Recycled Water Development Impact Fee. Subject to the terms and conditions
herein, at the time of Annexation, COMPANY shall pay CITY a recycled water
development impact fee, the amount of which shall the lesser of:
i. The recycled water portion of the water impact fee at the time of
Annexation based on an analysis of the equitable portion of the recycled
water improvements assigned to the proposed Annexation Area, but not to
exceed $80,000; or
ii. The cost of installation, as determined by CITY’s Engineer, at the time of
Annexation for a 10 inch ductile iron recycled water line fronting 4211
Broad, 850 Fiero Lane, and 845 Fiero, in Broad Street (approximately 830
feet).
8. Existing and Future Development. Upon annexation, the PROPERTY may be
further developed consistent with CITY policies, rules and regulations including, but not limited
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to, the General Plan, the Airport Area Specific Plan (AASP), and oth er provisions of the
Municipal Code and state law.
a. Non-Conforming Uses. COMPANY recognizes that certain existing uses within
the Area are not permitted or may be conditionally permitted under CITY’s
zoning regulations and land use policies and that such non-conforming uses are
entitled to remain and continue pursuant to CITY's non-conforming land use
regulations. Non-conforming uses existing as of the date of Annexation shall be
allowed to relocate within the same parcel as of the date of Annexation CITY will
endeavor to integrate such non-conforming uses into, and to provide for such uses
within the Area in the next revision of the CITY's zoning regulations and Airport
Area Specific Plan (“AASP”).
b. Expansion of Existing Uses. Nothing herein is intended to limit the addition or
expansion of otherwise conditionally allowable uses, consistent with existing City
procedures for review and approval of such additions and/or expansions.
c. Non-Conforming Structures. CITY recognizes that certain structures within the
Area lawfully existing as of the date of Annexation are legal non-conforming
structures and may remain pursuant to CITY’s non-conforming structure
regulations. CITY acknowledges that such regulations allow the right to maintain
and make reasonable repairs to such structures and to replace the structures
consistent with CITY regulations. Changes to structural elements (with the proper
CITY permit), interior partitions or other nonstructural improvements and repair
may be made to any of the structure.
9. Term and Termination of Agreement - This MOA shall become effective as of
the Effective Date and shall remain in effect until the Area is annexed and the water and sewer
infrastructure are accepted by CITY pursuant to Section 3 above, unless sooner terminated as
provided herein. CITY and COMPANY acknowledge and agree that the Annexation Task List
and Schedule (the “Schedule”) attached hereto as Exhibit “5” and incorporated herein by this
reference, represents a fair and reasonable schedule for performance of the Annexation and other
tasks and obligations as contemplated herein. This MOA may be terminated by either party upon
the other party’s failure to substantially comply with the benchmarks set forth in the Schedule
provided that, prior to such termination, the party seeking to terminate provides written notice of
such failure to comply and a reasonable opportunity to cure such failure. CITY and COMPANY
acknowledge and agree that the Schedule shall be adjusted to account for delays which are out of
the reasonable control of either CITY or COMPANY. CITY and COMPANY agree that time is
of the essence in completing the work identified in Exhibit 5 of this MOA. COMPANY and
CITY agree that all upgrades to the water and sewer infrastructure and right of way as des cribed
in Section 3 above shall be completed to CITY’s satisfaction prior to Annexation of the Area into
CITY’s municipal boundaries. This MOA may be terminated by CITY without prior notice in
the event of bankruptcy or insolvency of COMPANY. This MOA may also be terminated by
CITY upon successful protest of the Annexation.
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10. Liability and Indemnification –
a. Release of Liability – COMPANY acknowledges and agrees that CITY is not, and
shall not be, in any way liable for any damages or injuries that may be sustained
as the result of the CITY’s performance of this MOA.
b. Indemnification - To the fullest extent provided by law, COMPANY shall
indemnify, defend (with counsel reasonably acceptable to CITY) and hold
harmless CITY, its officials, employees, agents and contractors from and against
any and all liability, costs, expenses (including attorney’s fees), demands,
lawsuits, arising from or related this MOA, CITY’s provision of water or sewer
service to COMPANY and COMPANY’s customers during the Interim Service
Period or the annexation of COMPANY’s the Area to CITY. Notwithstanding the
foregoing, COMPANY shall have no duty to indemnify or defend CITY for the
proven gross negligence or willful misconduct of CITY.
11. Insurance - During the term of this MOA, COMPANY shall have in full force
and effect a commercial general liability insurance policy covering personal injury and property
damage in the minimum coverage amounts of $1,000,000 per occurrence. City shall be named an
additional insured under said policy.
12. Successors, Heirs and Assigns - This MOA shall bind and inure to the benefit of
the heirs, successors, assigns and personal representatives of the PARTIES. This MOA may not
be assigned without the prior written approval of the PARTIES.
13. Amendment and Modification - This MOA may be amended, extended, or
canceled at any time by mutual consent of the PARTIES or their successors in interest.
14. Notices – Unless otherwise specified herein, any notice which any party may or is
required to give shall be given by personal service or by depositing such notice with the U.S.
Postal Service, postage pre-paid, to the mailing address given below, or at such other place as
may be designated by the party in writing from time to time. Notice shall be effective upon the
date of personal delivery or 3 days after date of mailing.
If to City: City of San Luis Obispo
Attn: Community Development Director
919 Palm Street
San Luis Obispo, CA 93401
With copy to: City of San Luis Obispo
Attn: City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to COMPANY: Fiero Lane Water Company
[address]
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15. Implied Obligations – COMPANY and CITY shall reasonably cooperate to
achieve the purposes of this MOA, and shall execute or provide as requested such other
documents and information as are reasonably necessary to achieve those purposes.
16. Construction – When the context of any provision requires it, the singular shall
be held to include the plural, and the masculine shall be held to include the feminine gender.
Should any provisions of this MOA require judicial interpretation, it is understood by the
PARTIES and agreed that a court interpreting or construing same shall not apply a presumption
that the terms hereof shall be more strictly construed against one party by reason of the rule of
construction that the document is to be constructed more strictly against the party who prepared
it sine the parties agree that both have participated in the preparation of this document with the
assistance of counsel.
17. Authority to Sign and Binding Effect - The parties executing this MOA
personally warrant that they have the full authority to enter into this MOA on behalf of the
agency or entity for which they are signing, and that said agency or entity will be legally bound
to the MOA by their signature hereto.
18. Counterparts – This MOA may be executed in counterparts.
IN WITNESS WHEREOF, this Memorandum of Agreement is executed on the date
above stated, at San Luis Obispo, California.
CITY OF SAN LUIS OBISPO
By: __________________________________
Jan Marx, Mayor
ATTEST
By: __________________________________
Jon Ansolabehere, Interim City Clerk
APPROVED AS TO FORM
By: __________________________________
J. Christine Dietrick, City Attorney
FIERO LANE WATER COMPANY
By: __________________________________
Its:
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APN APN APN APN
076-411-054 076-413-035 076-414-023 076-414-047
076-415-007 076-413-027 076-414-021 076-414-052
076-415-006 076-413-011 076-414-007 076-414-045
076-415-012 076-413-002 076-414-039 076-414-030
076-415-013 076-413-016 076-400-010 076-414-049
076-415-015 076-413-037 076-413-023 076-414-029
076-415-009 076-414-032 076-413-009 076-400-004
076-415-014 076-413-026 076-413-013 076-414-031
076-414-009 076-413-024 076-413-003 076-414-051
076-412-001 076-413-034 076-413-019 076-414-050
076-414-016 076-400-007 076-400-005 076-415-005
076-414-012 076-400-006 076-413-020 076-415-008
076-414-013 076-413-018 076-414-041 076-412-007
076-414-014 076-413-022 076-414-037 076-412-002
076-414-011 076-413-032 076-414-038 076-412-008
076-414-015 076-413-005 076-414-042 076-411-039
076-412-009 076-413-007 076-414-043 076-415-010
076-414-010 076-413-006 076-414-036 076-415-011
076-415-016 076-413-008 076-414-034 076-400-013
076-414-006 076-413-015 076-414-033 076-401-043
076-400-014 076-400-011 076-414-025 076-401-032
076-414-022 076-413-031 076-414-026 076-401-065
076-414-019 076-413-030 076-414-054 076-411-055
076-413-010 076-400-012 076-414-027 076-415-003
076-414-017 076-400-003 076-414-053 076-415-004
076-414-008 076-413-028 076-414-028 076-415-001
076-414-003 076-413-012 076-413-033 076-415-002
076-412-003 076-413-021 076-414-024 076-401-064
076-413-004 076-413-001 076-414-001 076-414-055
076-414-004 076-414-018 076-414-044 076-413-038
076-413-029 076-414-020 076-414-040 076-400-001
076-413-017 076-413-036 076-414-035 076-415-017
076-413-014 076-414-005 076-414-048
076-413-025 076-414-002 076-414-046
Properties Served by FLWC (West Side of Broad Street)
13.f
Packet Pg. 161
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076-512-001
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076-512-017
076-512-028
076-512-015
076-512-011
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076-512-035
076-512-036
Properties Served by FLWC (West Side of Broad Street)
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CLARIO N CT
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Fiero Lane Proposed Annexation
Prop osed An nexationBoundary
Sa n L uis Obisp oCity Limits
Pa rce l Bou ndary
612 CLAR ION COURTSAN L UIS OBISPO, CA 9 340 1805 54 4-4 011 www.wallacegroup.us
CIVIL ENGINEER INGCONSTRUCTION MANAGEMENTLANDSCAPE A RCHIT ECTUREMECHANICAL ENGINEERINGPLANNINGPUBLIC WORKS ADMINISTRATIONSURVEYING/GIS SOLUTIONSWATER RESOURCESWALLACE SWANSON INT ERNATIONAL
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Required Infrastructure Improvements
Fiero Lane Water Company (FLWC) will perform a water and wastewater systems engineering
analysis and design to bring their facilities to CITY standards prior to CITY acceptance of those
facilities for CITY maintenance and operation. FLWC intends to complete the analysis prior to
annexation, so that costs can be established. Required, documents, submittals and improvements
identified to date are shown below. Additional documents, submittals, improvements or
modifications to the list of improvements may be required following completion of the analysis
and design and concurrence of the C ITY and FLWC. The CITY reserves the right to determine
which infrastructure it will accept as CITY responsibility and which will remain the
responsibility of others. FLWC will be responsible for funding, design and construction of the
required improvements.
1. General Water and Wastewater: Map of the entire FLWC service area including
parcels and owners and size of buildings. Map shall include all infrastructure
servicing the Morabito Burke service area.
2. Annual and monthly records of water pumping, distribution and consumption and
wastewater generation, treatment and disposal.
3. All permits, records, agreements and reports required by regulatory agencies for
water and wastewater such as but not limited to; Regional Water Quality Control
Board, State Water Resources Control Board, EPA, County of San Luis Obispo,
California Department of Health.
4. All letters, reports and correspondence to regulatory agencies including but not
limited to; Notice of Violation(s), violation(s), fines and penalties, settlement
agreements, inspections, Notice of Intent, application for waste discharge.
5. All records of water and wastewater infrastructure installation.
6. All records of water and wastewater maintenance and capital replacement.
7. All water meter reads for the last 3 years.
8. Monthly water and wastewater service rates.
9. Map of all infrastructure, included but not limited to water mains, valves, water
meters, water boxes, fire hydrants, air vacs, service laterals, gravity sewers, manholes,
laterals.
10. List and map of record easements.
11. Draft schedule for all submittals and construction improvements prior to annexation.
Potable Water:
1. Record easements for CITY facilities on private property.
2. Pressure and leak test existing water mains that will become CITY facilities (Fiero Lane
only).
3. Public and private water mains shall be sized to meet fire flow requirements.
4. Decommission and dismantle of groundwater collection, treatment, and pumping
facilities.
5. Replace fire hydrants with CITY standard hydrants.
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6. Replace all water meters. Meters shall be properly sized, accurate and meet City
standards.
7. Water Services shall be upgraded to current City standard.
8. Backflow preventers shall be installed where recommended by County Cross Connection
Inspector.
9. Isolation valves shall be installed.
Wastewater:
1. Work with the CITY and County Airport to facilitate the CITY takeover of that portion
of the Airport gravity sewer line in Fiero Lane.
2. Replace or rehabilitate failing portion of the Airport gravity sewer line – Manhole M17-
15 to M17-8.
3. Fiero Lane System – Manhole M17-18 – cut open pipe to expose invert and access flow.
Manhole M17-18 to M17-19 – correct grade defects.
4. Tie over eight (8) sewer laterals on Fiero Lane to the Airport gravity sewer line or new
City gravity main in Fiero Lane, if available. Any necessary repairs to private laterals
shall be made by FLWC prior to tie over.
5. Abandon existing FLWC gravity main once laterals are tied over to deeper airport gravity
line.
6. The wastewater treatment system will be decommissioned, removed and left for
COMPANY to salvage or dispose in accordance with state standards.
7. Temporary and permanent easements shall be granted to the City for replacement of the
existing gravity main in Fiero Lane and the existing Airport sewer pump station. This
may include the site of the existing FLWC wastewater treatment system site, or another
suitable site.
8. The leach fields behind Clarion Court will be abandoned in accordance with applicable
code after all Clarion properties are connected to the City wastewater collection system
via private gravity or private force main connections.
Storm Drainage Infrastructure:
The existing stormdrain within the existing County right-of-way is owned and maintained
by the County. The Company shall coordinate with the County to arrange for the
inspection and cleaning of the stormdrain system. In the event the County is unwilling to
perform the work prior to annexation, the City and Company shall work cooperatively to
arrange for an alternative means of cleaning with concurrence and permission from the
County.
Street Infrastructure:
1. The COMPANY will construct improvements and upgrades to Fiero Lane so as to bring
the street infrastructure into a “state of good repair”. For purposes of this requirement, the
definition of state of good repair includes:
a. Upgrading traffic control signs and markings to meet current federal, State
and City standards; and
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b. Upgrade street crossings to meet Federal and City ADA ramp and crossing
standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
d. Remove and replace any damaged sections of sidewalk.
2. It is the intent of the agreement that Old Santa Fe Road south of the City/County
boundary line, located immediately south of the Santa Fe Bridge, will remain under
County jurisdiction after annexation of properties on Clarion Court. If as part of the
LAFCO process, the City is required to take all, or part, of Old Santa Fe Road under City
jurisdiction, the following requirements shall be required. The COMPANY will construct
improvements and upgrades to Old Santa Fe Road, that is to be annexed to the City, so as
to bring the street infrastructure into a “state of good repair”. For purposes of this
requirement, the definition of state of good repair includes:
a. Upgrading traffic control signs and markings t o meet current federal, State
and City standards; and
b. Upgrade street crossings at Clarion Court and the mini storage property to
meet Federal and City ADA ramp and crossing standards
c. Perform pavement maintenance as needed to meet City minimum pavement
condition index requirements.
The limits of required improvements begin at the south side of the existing bridge across the East
Fork of San Luis Creek and terminate at the cul-de-sac fronting the mini storage property. No
improvements to the bridge are proposed.
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Annexation Task List and Schedule
Fiero Lane Water Company
revised 11‐24‐2015
Task No.DescriptionCompletion DateComments
1Finalize Draft MOA ‐ staff level10/16/2015
2FLWC to organize written majority support for annexationComplete Majority support to include greater than 50% of total assessed value of
western service area
3FLWC Board approves and executes MOATBD
4FLWC Submits Application for Annexation Complete
6 City Council Hearing #1 (council approves and executes MOA,starting
annextaion and ok's pursuing Land based financing)12/1/2015
7
LAFCO application submittal #1
Applicant (City) petitions LAFCO for approval of interim water and
wastewater service
December Take council reso to lafco. Lafco authorizes MOA (Interim service
agreement)
8SLO County approves use of gravity sewer main in Fiero Lane1/1/2016
9
FLWC provides City written confirmation from RWQCB that East Airport can
either relocate the existing wastewater treatment facility operated by the
COMPANY or install a new wastewater treatment facility on their premises.
Complete
10FLWC prepares plans and bonding estimate for interim service connection1/1/2016
11 FLWC posts bond or cash equivalent for removal of interim service
connection, and initiates construction 1/15/2016
12City approves interim service plans (assuming 1 round of comments)1/15/2016
13 LAFCO Review Hearing #1 February/March 20162 to 3 month timeline from application submittal to hearing
15Interim water and sewer service beginson or before 4/1/2016
14
Applicant Annexation Submittal to City
(applicant provides all materials needed by application checklist and
reviewing departments including maped infrastructure and a model
showing performance of proposed system once hooked up to City service)
7/1/2016
16 FLWC prepares Engineering Study for water and sewer infrastructure, which
forms the basis of the Assessment Engineer's Report 7/1/2016 Study includes lot by lot analysis of meter size for impact fees. City will
provide input on restoration of Fiero Lane pavement.
17 PC Review Hearing #2 (Annexation)September 2016 Date dependent on applicant submittal of complete application
materials
18City approves Engineering Study (assuming 2 rounds of comments)9/30/2016
19 City Council #2 (Council approves and executes LAFCO Annexation, Service
Authorization, Addendum November 2016 Date dependent on applicant submittal of complete application
materials and PC recommendation
20 LAFCO application submittal #2
Applicant (City) formally petitions LAFCO for approval of annexation 12/1/20164 to 6 month timeline from application submittal to hearing
21 FLWC prepares Assessment Engineer's Report for impact fees and
infrastructure upgrades 12/1/2016
23 LAFCO Review Hearing #2 4/1/17
24 If necessary, City prepares and approves master Use Permit or other
method to address existing uses 4/1/2017
25 City completes Proposition 218 process and creates assessment or financing
district 4/1/2017
26Financing District funds become available7/1/2017
27 FLWC prepares construction plans and specifications for infrastructure
improvements 10/1/2017
28City reviews and approves plans (assuming 2 rounds of comments)1/15/2018
29 Construction of water and sewer improvements is completed, along with
items referenced in MOA Section 3d.7/1/2019
30City accepts constructed improvements and sets new meters.9/1/2019
22 FLWC provides City parcel for construction of new lift station and easement
for new gravity main in Fiero Lane.9/1/2019 Replacement of the City's Airport Lift Station was identified in 2015‐17
Financial Plan, Capital Improvement Plan.
31 If necessary, FLWC relocates wastewater treatment plant to East Airport
area 12/1/2019
32Annexation completed and impact fees paid1/1/2020
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MEMORANDUM
Fiero Lane Water Company
Date: September 14, 2015
To: Lee Johnson, Economic Development Manager
From: Rob Miller, General Manager
Subject: Interim Connection to City Water and Sewer Services
Section 5 of the Memorandum of Agreement (MOA) between the City and the Fiero
Lane Water Company (FLWC) provides for interim water and sewer service prior to
the completion of annexation. This provision was one of the most important points to
the diverse business owners located in our service area, and it was instrumental in
securing a written majority of support. The key considerations that elevated interim
service to a key deal point included the following:
1. Reliability of water supply: The FLWC water supply for its western service
area consists of three wells with an average depth of 100 feet. While the wells
have maintained adequate supply to date, the severe drought and the
potential for climate change point to a need for a more reliable, redundant
supply. In economic terms, over 50 businesses within the proposed
annexation area rely on these three wells. These entities employ
approximately 1,000 people (see attached partial listing).
2. Resources required for annexation: The time, complexity, and administrative
cost of annexation have been a historical barrier to securing owner support.
With interim water and sewer service, the time and financial resources
allocated to operating a private water and sewer entity with poor source water
quality can be refocused on the many details and commitments required in the
annexation process. The use of standard City rates is a key point to ensure
the success of the process.
3. Water quality: The source water quality of FLWC wells is generally high in
both nitrate and salts. As a result, the water requires continuous and costly
treatment for nitrate removal, and the treated wastewater is an on-going
challenge with respect to salt concentration. Given that the trend is toward
poorer well water quality, FLWC will be required to invest significant capital in
the near future to ensure adequate quality. If such an investment is made, it
becomes a substantial disincentive for the property owners to annex. An
interim City connection effectively addresses this issue and allows annexation
to move forward without complication.
Please let me know if you have any questions, or if you need more information.
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Mr. Lee Johnson
September 14, 2015
Page 2 of 2
Partial Listing of Existing Businesses:
Apria Health Care
Beautiful Feet Books
Brushworks
C & C Aerial Mapping
Community Action Partnership
Computec Computer Services
Cryolab, Inc. (SAES)
Crystal Engineering
DAHN CORP
Digital Foundation
Etna Interactive
Federal Express
Floyd Mize Drywall, Inc
Fugro
Gander Publishing
InfoGard Laboratories
J.B. Dewer
JB Enterprises
Ketch-All Company
Kraftwerk Design
Lampman & Associates
Left Coast T-Shirt Co.
Lindamood-Bell Learning Processes
Marling Peterson CPA
Pacific Pulmonary Services
B&B Body Shop
Paul S. Shaner, Contractor
Performance Apparel, Inc.
Pharma Rx
Platzer Cabinets
Pristine Home Services Inc
Quaglino Properties, Quaglino Roofing
RE Properties
San Luis Obispo Condiment Co
Science Kit
Snider Precision Inc.
Specialty Construction
Straight Down Clothing Co.
Sun Run
Tap It Brewing
Taylor & Syfan
Tech Xpress
The Berry Man
The Bottle Meister
The Sign Place
Ultrex
Wallace Group
XK's Unlimited
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City of San Luis Obispo
Fiero Lane Annexation
Addendum to the Final Program Environmental Impact Report for the
Airport Area and Margarita Area Specific Plans and
Related Facilities Master Plans
SCH #2000051062
CITY OF SAN LUIS OBISPO
COMMUNITY DEVELOPMENT DEPARTMENT
919 PALM STREET
SAN LUIS OBISPO, CA 93401
November 9, 2015
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ADDENDUM TO THE EIR
FOR THE
AIRPORT AREA AND MARGARITA AREA SPECIFIC PLANS AND
RELATED FACILITIES MASTER PLANS
SCH #2000051062
Prepared for:
CITY OF SAN LUIS OBISPO
COMMUNITY DEVELOPMENT DEPARTMENT
919 PALM STREET
SAN LUIS OBISPO, CA 93401
Prepared by:
November 9, 2015
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TABLE OF CONTENTS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
i
INTRODUCTION
1.0 Introduction
1.1 Introduction ...................................................................................................................... 1.0-1
1.2 Organization and Scope ............................................................................................... 1.0-1
ENVIRONMENTAL ANALYSIS
2.0 Project Description
2.1 Proposed Fiero Lane Annexation ................................................................................ 2.0-1
2.2 California Drought Conditions ...................................................................................... 2.0-3
3.0 Environmental Analysis
3.1 Basis for Decision to Prepare Addendum .................................................................. 3.0-1
3.2 Discussion of Findings ..................................................................................................... 3.0-3
3.3 Proposed Project Impacts ............................................................................................ 3.0-4
REFERENCES ................................................................................................................................................. 3.0-8
LIST OF TABLES
Table 3.0-1 General Plan Impacts/Fiero Lane Annexation Impact Determination ..................... 3.0-5
LIST OF FIGURES
Figure 1 Project Location ......................................................................................................................... 2.0-7
Figure 2 Project Site ................................................................................................................................... 2.0-9
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INTRODUCTION
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
1.0-1
1.0 INTRODUCTION
1.1 INTRODUCTION
This Addendum was prepared in accordance with the California Environmental Quality Act
(CEQA) and the CEQA Guidelines (Article 11, Sections 15162 and 15164). The City of San Luis
Obispo adopted the Airport Area Specific Plan (AASP), the Margarita Area Specific Plan (MASP)
and certified the Airport Area and Margarita Area Specific Plans and Related Facilities Master
Plans Environmental Impact Report (AASP/MSAP EIR) (SCH No. 2000051062) on August 23, 2005.
The AASP was then comprehensively amended on September 2, 2014 in response to the
Chevron Remediation and Development project.
At the time of the EIR certification, the state was not under drought conditions and the EIR’s
water supply analysis was evaluated based on normal precipitation. However since that time,
the state is in the throws of an ongoing drought. In light of this, the City determined that although
the proposed Fiero Lane Annexation area was included and evaluated for environmental
impacts in the 2005 EIR, the changing water supply conditions required a re-evaluation of
impact determinations in the 2005 EIR. Thus, this addendum to the Airport Area and Margarita
Area Specific Plans and Related Facilities Master Plans EIR has been prepared to analyze the new
water conservation requirements.
The analysis provided in this Addendum (see Section 3.0 for the technical analysis) provides
substantial evidence supporting the City’s determination that the proposed project does not
meet the criteria for preparing a subsequent or supplemental EIR under CEQA Guidelines
Section 15162 and is consistent with the provisions of CEQA Guidelines Section s 15164 and
15183.5.
1.2 ORGANIZATION AND SCOPE
Section 1.0 – Introduction
Section 1.0 provides an introduction and overview describing the intended use of the EIR
Addendum.
Section 2.0 – Project Description
This section provides a detailed description of the proposed Fiero Lane Annexation project.
Section 3.0 – Environmental Analysis
Section 3.0 provides substantial evidence to support the conclusion that none of the
circumstances set forth in CEQA Guidelines Section 15162 would result from adoption of the
proposed project. CEQA Guidelines Section 15162 and the Addendum’s consistency with these
guidelines are addressed.
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INTRODUCTION
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
1.0-2
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ENVIRONMENTAL ANALYSIS
Fiero Lane Annexation City of San Luis Obispo
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-1
2.0 PROJECT DESCRIPTION
2.1 PROPOSED FIERO LANE ANNEXATION
The project proposes the provision of interim water and sewer service and then annexation of
approximately 40 acres of property in the Airport Area Specific Plan referred to as “Fiero Lane”.
See Figures 1 and 2. This area was analyzed for environmental impact in the 2005 Airport Area
and Margarita Area Specific Plans and Related Facilities Master Plans EIR. The property is within
the City’s urban reserve line and is bounded by property in the incorporated city on three sides.
The area currently has potable water, wastewater collection and wastewater treatment service
provided by the Fiero Lane Water Company (FLWC). The project is proposed to occur in two
phases as detailed below. The physical changes contemplated are limited to connections and
improvements to existing infrastructure, and no specific additional development is proposed.
Phase 1 (Following Initiation/approval of Memorandum of Agreement):
This phase will include an interim hookup to City water and sewer facilities after initial Council
and LAFCO authorization. The physical changes will be limited to the following:
Disconnection from the FLWC Wastewater Treatment Plant (WWTP).
Sewer system connection for the proposed annexation area, including approximately 30
feet of temporary sewer force main construction in existing disturbed street areas.
Potable water system connection for the proposed annexation area at a single point,
including minor temporary pipeline construction in existing disturbed areas.
Phase 2: (Annexation Proposal)
During this phase, City and FLWC staff will define the detailed improvements required for
permanent connections to City systems. Zoning and use consistency will also be addressed
during this phase. In order to forecast the issues and context for detailed zoning and use
discussions. During Phase 2, improvements are expected to be limited to existing disturbed areas
and may include rehabilitation of existing deteriorated asphalt concrete in Fiero Lane. A general
listing of anticipated improvements is as follows:
Decommissioning of the existing WWTP, including relocation of required plant equipment
to the East Airport development
Installation of new water meters
Installation of recycled water main on Broad Street
Reconfiguration of sewer laterals along Fiero Lane to connect to the existing airport
gravity sewer
Pavement rehabilitation and sidewalk repairs within Fiero Lane
Other improvements as contemplated in the draft Memorandum of Agreement
between the City and FLWC
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-2
Uses/Current Development to be served:
Existing development includes approximately 500,123.5 sq. ft. of structures accommodating light
manufacturing, service commercial, and office uses. No new development is proposed as a
part of the Fiero Lane Annexation project.
Wastewater:
Wastewater generation for the project site, including the 500,123.5 square feet of developed
area, is approximately 15,000 gallons per day. The Fiero Lane Annexation Area is to be served by
the Airport Lift Station and Tank Farm Lift Station. Both facilities have capacity to serve the
proposed annexation.
The AASP/MASP EIR determined that AASP/MASP would increase wastewater generation by
approximately 340,000 gallons per day (San Luis Obispo 2003, p. 3H-20). The AASP/MASP EIR
concluded that this increase resulted in a less than significant impact.
Water:
According to metering records from the FLWC, annual water demand is 8,293 units/year or 19
acre feet/year (AFY) for both indoor and outdoor landscape use. Annexation of the project by
the City would require uses in the Fiero Lane Annexation area to comply with the City’s water
conservation requirements described in Section 2.2 of this Addendum.
The AASP/MASP EIR determined that build-out of the AASP/MASP would increase water demand
by approximately 493,000 gallons per day or 552.2 AFY for the AASP and MASP (based on a per-
capita water use rate of 145 gallons per day) (San Luis Obispo 2003, p. 3H-20). The AASP/MASP
EIR concluded that this increase resulted in a less than significant impact. The current per capita
water use rate is 123.2 gallons per day based on a 10-year average (San Luis Obispo 2015, p. 8-
19).
Septic Systems:
Some parcels/uses are currently served by and will continue to use existing septic tanks.
Properties that receive access from Santa Fe Road will continue to use septic systems, with the
exception of Clarion Court and the adjoining mini storage, both of which are currently
connected to the central Fiero Lane WWTP. Properties remaining on septic tanks will be allowed
to remain on septic until the system fails or substantial additions or redevelopment of the
property is proposed. At the time of failure or substantial increase in development, those
properties will be required to connect to the sewer system.
Connections:
Connection to the gravity sewer will be at the WWTP located at the end of Fiero Lane. FLWC will
secure permission from the County for an easement to connect to the Airport gravity sewer that
flows from the WWTP to the City’s Airport Lift Station. A water meter will most likely be located on
Aerovista, out in front of the Regional Water Quality Control Board’s office building, where Fiero
Lane has an existing 2” well line to connect to. The other option is at Broad Street and Fiero Lane
if a larger connection is needed.
Required City Actions:
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ENVIRONMENTAL ANALYSIS
Fiero Lane Annexation City of San Luis Obispo
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-3
The application includes both interim service and a request for Council to authorize Fiero Lane to
apply to LAFCo for annexation. As such, the project will include the following City actions:
1. The City Council will be asked to adopt an ordinance (amendment to Municipal Code
Chapter 13.16) related to the provision of water and sewer service outside the city limits
on an interim basis prior to annexation of the Fiero area.
3. Resolution of Intention to Annex: The City Council will be asked to adopt a resolution that
authorizes both interim service (which also requires LAFCO approval) and application to
LAFCO to annex to the City;
4. Plan for services: Plan for public services is identified in the AASP and EIR.
5. LAFCO Application for Annexation: The Application for Annexation will be filed upon City
Council adoption of a resolution authorizing the application. LAFCO staff has indicated
support with the concept of phased annexation so that parts of the AASP could be
annexed without requiring the remaining areas as a whole to be annexed.
6. Property Tax Sharing Agreement: a tax sharing agreement occurs as a part of annexation
process. The City and San Luis Obispo County Memorandum of Understanding (MOU)
regarding annexations identifies that for substantially developed commercial and
industrial annexation areas, such as the proposed Fiero Lane Annexation project, the tax
exchange will be negotiated on a case-by-case basis and will be based upon the
principle of fiscal neutrality for the County.
2.2 CALIFORNIA DROUGHT CONDITIONS
Since 2012, California, as well as much of the western United States, has received less precipitation
than in years past. Water Year 2014 ended as the state's third driest water year based on 119 years
of record. In 2015, California received less rain than in any year since it became a state in 1850.
California set a new "low water" mark in early-April with a snowpack measurement at five percent
of the April 1st average. The early-April content was only 1.4 inches, or five percent of the 28-inch
average. The lowest previous reading since 1950 was 25 percent of average, so Water Year 2015 is
the driest winter in California's written record (SWRCB 2015a).
As a response to the continuing drought, California Governor Brown proclaimed a State of
Emergency on January 17, 2014 and directed state officials to take all necessary actions to make
water immediately available. On April 25, 2014, the Governor issued an executive order to speed
up actions necessary to reduce harmful effects of the drought, and he called on all Californians to
redouble their efforts to conserve water. Then on April 1, 2015, the Governor issued Executive
Order B-29-15 which includes a key provision ordering the State Water Resources Control Board to
impose restrictions to achieve a 25 percent reduction in potable urban water usage through
February 28, 2016.
In accordance with Governor Brown’s April 1, 2015 Executive Order, in May 2015, the State
Water Resources Control Board (SWRCB), the government agency that oversees water use in
California, adopted an emergency regulation requiring an immediate 25 percent reduction in
overall potable urban water use statewide from June 2015 through February 2016, as compared
to the amount used from those same sources for the same months in 2013 (SWRCB 2015b). To
reduce water use by 25 percent statewide, the SWRCB adopted regulations placing each urban
water supplier into one of nine tiers which are assigned a conservation standard, ranging
between four percent and 36 percent. Those standards include the following:
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-4
The conservation savings for all urban water suppliers (serving more than 3,000
connections) are allocated across nine tiers of increasing levels of residential gallons per
capita per day (R-GPCD) water use to reduce water use by 25 percent statewide and
will take effect on June 1, 2015.
Smaller water suppliers (serving fewer than 3,000 connections) must either reduce water
use by 25 percent, or restrict outdoor irrigation to no more than two days per week. These
smaller urban suppliers, that collectively serve less than 10 percent of Californians, must
submit a report on December 15, 2015 to demonstrate compliance.
Commercial, Industrial and Institutional properties that are not served by a water supplier
(or are self-supplied, such as by a groundwater well) also must either reduce water use
by 25 percent or restrict outdoor irrigation to no more than two days per week. No
reporting is required but these properties must maintain documentation of their water use
and practices (SRWCB 2015c).
The conservation standard for the City of San Luis Obispo is 12 percent (SWRCB 2015d). In
response to the SWRCB emergency regulation, the City of San Luis Obispo City Council approved
a drought response strategy on June 2, 2015. The initial program to meet the mandated
requirements and respond to the local water conditions will:
1. Be focused on achieving voluntary compliance, as opposed to a mandatory rationing
program;
2. Rely on active enforcement of the water waste prohibitions;
3. Limit outdoor watering to two days a week and only between the hours of 7:00 p.m. and
7:00 a.m.;
4. Defer landscape planting or provide modified landscape plans for new development
that significantly reduce water demand;
5. Implement an effective and engaging public information and education program.
The following is a list of the mandatory water use prohibitions:
General
Using potable water to wash sidewalks and driveways;
Allowing runoff when irrigating with potable water
Using hoses with no shutoff nozzles to wash cars
Using potable water in decorative water features that do not recirculate the water
Landscape
Irrigating outdoors during and within 48 hours following measurable rainfall
Irrigation with potable water of ornamental turf on public street medians is prohibited
Irrigation with potable water outside of newly constructed homes and buildings not delivered by drip or
micro-spray is prohibited
Limit outdoor irrigation to two days per week (recommended)
Commercial
Restaurants are prohibited from serving water to customers unless the customer requests it
Hotels and motels must offer guests the option to not have linens and towels laundered daily, and
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ENVIRONMENTAL ANALYSIS
Fiero Lane Annexation City of San Luis Obispo
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-5
prominently display this option in each guest room
If voluntary measures are not achieving the state-mandated water use reductions, mandatory
water rationing as outlined in the City’s 2010 Urban Water Management Plan, Section 8: Water
Shortage Contingency Plan may be implemented.
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
2.0-6
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ENVIRONMENTAL ANALYSIS
Fiero Lane Annexation City of San Luis Obispo
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-1
3.0 ENVIRONMENTAL ANALYSIS
3.1 BASIS FOR DECISION TO PREPARE ADDENDUM
When an environmental impact report (EIR) has been certified for a project, Public Resources
Code Section 21166 and CEQA Guidelines Sections 15162 through 15164 set forth the criteria for
determining whether a subsequent EIR, subsequent negative declaration, addendum, or no
further documentation should be prepared in support of further agency action on the project. In
determining whether an addendum is the appropriate document to analyze the modifications
to the project and its approval, CEQA Guidelines Section 15164 (Addendum to an EIR or
Negative Declaration) states, “The lead agency or a responsible agency shall prepare an
addendum to a previously certified EIR if some changes or additions are necessary but none of
the conditions described in Section 15162 calling for preparation of a subsequent EIR have
occurred.” Under the CEQA Guidelines, a subsequent EIR or negative declaration must be
prepared if any of the following criteria are met. Text in italics is from the CEQA Guidelines, while
underlined text provides the substantial evidence supporting the City’s decision to prepare an
addendum.
(a) When an EIR has been certified or negative declaration adopted for a project, no
subsequent EIR shall be prepared for that project unless the lead agency determines,
on the basis of substantial evidence in the light of the whole record, one or more of
the following:
(1) Substantial changes are proposed in the project which will require major revisions
of the previous EIR or negative declaration due to the involvement of new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects;
The proposed project does not include any changes to existing land use designations that were
not analyzed in the AASP/MASP EIR, nor does the project propose any changes to existing AASP
goals and policies. The proposed project is the annexation of the Fiero Lane Annexation Area
which was a part of the AASP. Since the certification of the AASP/MASP EIR in 2005, California is
currently within a period of drought and as such, new requirements for water conservation have
been implemented by the State and the City. All existing and future uses within the Fiero Lane
Annexation area are required to comply with these regulations. Because of this requirement,
water use in the Annexation area will be less than what was used for water supply impacts in the
AASP/MASP EIR. Therefore, the Fiero Lane Annexation Area will have less impact on water supply
than what was originally determined in the AASP/MASP EIR. All other impact determinations will
remain as identified in the AASP/MASP EIR with implementation of the Fiero Lane Annexation
project. Therefore, implementation of the proposed project would not affect the impact analysis
contained in the AASP/MASP EIR or result in a different impact determination.
(2) Substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous EIR or
negative declaration due to the involvement of new significant environmental
effects or a substantial increase in the severity of previously identified significant
effects; or
As previously stated, the AASP/MASP EIR was certified in 2005. At that time, annexation of
properties within the AASP was analyzed for environmental impacts, which resulted in
three significant and unavoidable impacts, none of which were water related.
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-2
Because of the ongoing drought in California, existing conditions are different than
they were in 2005. However, short term water supply limitations caused by prolonged
drought, natural disasters or other unanticipated water supply emergencies are
subject to short term measures intended to extend the water supplies during a
declared water supply shortage. The Urban Water Management Planning Act
requires the City to adopt a Water Shortage Contingency Plan (Plan) to deal such
emergencies. The City’s 2010 Urban Water Management plan (UWM P) which
includes the Plan was approved by the City Council in 2011 and the California
Department of Water Resources in 2014. As of October 2015, the City has not
declared a water shortage emergency which would trigger the implementation of
the Water Shortage Contingency Plan.
In response to the current drought conditions a drought response strategy was approved
and a drought emergency declared by the City Council on June 2, 2015. The
approved strategy was implemented to meet the state mandated water reduction
requirements. The City has exceeded the mandatory reduction of 12% set by the
state. The drought response strategy will remain in place until a time the City Council
rescinds the drought emergency. If drought conditions continue, the strategy
includes implementing the Water Shortage Contingency Plan if it is determined that a
critical water shortage is eminent and a water shortage emergency is declared by
the City Council.
The City uses a Water Projection Model to predict the availability of water supply based
on climatic conditions and reservoir storage capacity. The City uses the model as a
tool to forecast when to declare a water supply emergency. Under the current worst
case drought scenario, current city-wide water consumption and a residential using
the 1% residential as the indicator for growth rate consistent with the 2014 Land Use
and Circulation Element EIR, the City is not in a water supply emergency. The
projected water demand estimated to be used by the annexation is included in the
future anticipated water demand which means it was part of the water supply
reliability assessment in Section 6 of the UWMP which takes into account water supply
availability during worst case drought conditions. Though the current drought is the
new worst case drought on record (replacing the 1987-1991 drought), there is
uncertainty on how long it will last and the overall impact it will have, in the short
term, on water availability and supply. Based on the data currently available, it is
concluded that the City has enough water to serve the annexation during the
current drought conditions.
As identified in the City’s 2010 Urban Water Management Plan, 2014 Land Use and
Circulation Element EIR and the AASP/MASP EIR which was certified in 2005, the City
has adequate long term water supply to meet future build-out.
New information of substantial importance, which was not known and could not have been
known with the exercise of reasonable diligence at the time the previous EIR was certified as
complete or the negative declaration was adopted, shows any of the following:
(A) The project will have one or more significant effects not discussed in the
previous EIR or negative declaration;
As discussed in this Addendum, the proposed project does not increase the level of any
environmental impact identified in the AASP/MASP EIR. The proposed project is the
implementation of a project that was already analyzed in a previous CEQA analysis. The
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-3
proposed project would not result in one or more significant effects not discussed in a previous
EIR or negative declaration.
(B) Significant effects previously examined will be substantially more severe than
shown in the previous EIR;
The proposed project does not increase the severity of any of the environmental impacts
identified in the AASP/MASP EIR. Rather, there would be a reduction in the amount of water
needed to serve the project compared to what was identified in the AASP/MASP EIR, due to
waster conservation requirements that weren’t required in 2005.
(C) Mitigation measures or alternatives previously found not to be feasible would
in fact be feasible and would substantially reduce one or more significant
effects of the project, but the project proponents decline to adopt the
mitigation measure or alternative; or
No new mitigation measures are proposed as a result of the proposed project. The Fiero Lane
Annexation project is the implementation of a portion of the AASP that was previously analyzed
for environmental impacts. The Fiero Lane Annexation project does not result in new mitigation
measures and all mitigation measures identified in the AASP/MASP EIR were feasible and
implementable. Therefore, the proposed project would not result in mitigation measures or
alternatives previously found not to be feasible that could now be feasible.
(D) Mitigation measures or alternatives which are considerably different from
those analyzed in the previous EIR would substantially reduce one or more
significant effects on the environment, but the project proponents decline to
adopt the mitigation measure or alternative.
The proposed project does not result in the modification of mitigation measures or alternatives
contained in the AASP/MASP EIR. No new mitigation measures or alternatives are proposed with
implementation of the Fiero Lane Annexation project.
(b) If changes to a project or its circumstances occur or new information becomes available
after adoption of a negative declaration, the lead agency shall prepare a subsequent
EIR if required under subdivision (a). Otherwise, the lead agency shall determine whether
to prepare a subsequent negative declaration, and addendum, or no further
documentation.
As summarized above and further discussed in this Addendum, the proposed project does not
make changes to the AASP that would require substantial revision to the AASP/MASP EIR, nor
have circumstances changed significantly since adoption of the AASP/MASP EIR in August 2005
that would require revision of the AASP/MASP EIR.
3.2 DISCUSSION OF FINDINGS
As demonstrated in this Addendum, adoption of the proposed Fiero Lane Annexation project does
not meet the criteria for preparing a supplemental or subsequent EIR. First, the Fiero Lane
Annexation project does not propose changes to the AASP and zoning that were evaluated in
the AASP/MASP EIR. None of the changes result in physical changes to the environment and
therefore do not affect the impact analysis contained in the AASP/MASP EIR. Adoption of the
proposed project is not anticipated to result in an increase in severity of any previously identified
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-4
significant impact from the AASP/MASP EIR (CEQA Guidelines Section 15162[a][1]) that would
require major revisions to the AASP/MASP EIR.
The proposed project is the annexation by the City of an area that was previously analyzed for
environmental impacts in the AASP/MASP EIR. The annexation does not include any specific
development designs or proposals, nor does it grant any entitlements for development that
would adversely affect the environment. While the majority of the Fiero Lane Annexation area is
developed, any future development must be consistent with the AASP Land Use Designations
and Zoning Designations, as well as with all codes that regulate development. Nothing in the
proposed project alters an existing policy or program regulating or permitting development.
Environmental impacts of subsequent development projects would also be considered pursuant
to CEQA on a case-by-case basis following submittal of a specific development proposal.
In addition to the San Luis Obispo General Plan policies and the AASP policies, all land
development in the city is governed by engineering standards, the California Building Code,
and state and federal permitting associated with wetlands, cultural resources, and water
quality. These requirements apply to both nondiscretionary (by right) and discretionary
development permits. Discretionary permits have the added protection of both conditions of
approval and additional CEQA analysis. The AASP/MASP EIR evaluated potential development
in the AASP and recognizes the existing permitting and approval process described above.
Second, the Fiero Lane Annexation is a step towards the completion of the AASP. The Fiero Lane
Annexation project does not propose changes in physical circumstances that would cause a
new significant impact or substantially increase the severity of a previously identified significant
impact, and there have been no other changes in the circumstances that meet this criterion
(CEQA Guidelines Section 15162[a][2]). In fact, as discussed previously, the City is required to
reduce water demand by 12 percent. According to the SWRCB, the City has reduced water
consumption by 24.5 percent, or 56.9 gallons per person per day as of August 2015 (SWRCB
2015e). Due to water conservation requirements and efforts, the Fiero Lane Annexation Area will
have less impact on water supply than what was originally determined in the AASP/MASP EIR. All
other impacts identified in the AASP/MASP EIR would remain the same with annexation of the
Fiero Lane Annexation project. Therefore, there have been no changes in the environmental
conditions contemplated and analyzed in the AASP/MASP EIR that would result in new or
substantially more severe environmental impacts.
Finally, as documented in this Addendum, there is no new information of substantial importance
(which was not known or could not have been known at the time of AASP adoption by the City
of San Luis Obispo in 2005) that identifies a new significant impact (condition “A” in CEQA
Guidelines Section 15162[a][3]); there would not be a substantial increase in the severity of a
previously identified significant impact (condition “B” in CEQA Guidelines Section 15162[a][3]);
and there are no mitigation measures or alternatives previously found infeasible that would now
be feasible and would substantially reduce one or more significant effects of the AASP, or
mitigation measures or alternatives that are considerably different from those analyzed in the
AASP/MASP EIR which would substantially reduce one or more significant effects on the
environment (conditions “C” and “D” in CEQA Guidelines Section 15162[a][3]). The Fiero Lane
Annexation project is the implementation of the AASP which was fully analyzed in the
AASP/MASP EIR. The proposed Fiero Lane Annexation project does not include any specific
development proposals, nor does it grant any entitlements for development that would
adversely affect the environment. None of the “new information” conditions listed in CEQA
Guidelines Section 15162[a][3] are present to trigger the need for a subsequent or supplemental
EIR.
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ENVIRONMENTAL ANALYSIS
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-5
3.3 PROPOSED PROJECT IMPACTS
Summary
Table 3.0-1 lists the AASP’s environmental impacts based on the analysis included in the
AASP/MASP EIR. This table also includes the proposed Fiero Lane Annexation project’s impact
determination. As shown, implementation of the proposed project would not result in any new or
increased physical impacts to the environment.
The proposed project is the annexation of an area identified within the AASP and analyzed for
environmental impacts in the AASP/MASP EIR. While the proposed project would result in the
potential demand of 19 acre feet per year on the city’s water supply system, this demand was
considered in the AASP/MASP EIR and determined to have a less than significant impact on the
City’s water supply. While environmental conditions have changed regarding the availability of
water due to the current drought in California, uses within the proposed Fiero Lane Annexation
project are subject to the City’s water conservation regulations implemented in 2015, as are all
uses in the City. As such, the proposed project would use less water than what was identified in
the AASP/MASP EIR and therefore, have less impact on water supply than what was analyzed in
the AASP/MASP EIR. This would result in a less than significant impact on water supply consistent
with the EIR analysis. The proposed project would have no affect on all other impact areas
analyzed in the AASP/MASP EIR.
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ENVIRONMENTAL ANALYSIS
TABLE 3.0-1
AASP/MASP IMPACTS/FIERO LANE ANNEXATION AREA IMPACT DETERMINATION
AASP/MASP Impact AASP/MASP EIR Determination
Fiero Lane Annexation
Area
Impact Determination
Land Use
LU-1: City Policy Consistency Less than significant Does not change the impact
LU-2: County Policy Consistency Less than significant Does not change the impact
LU-3: County Airport Policy Consistency Less than significant Does not change the impact
LU-4: Land Use Compatibility Less than significant Does not change the impact
LU-5: Agricultural land conversion Significant and unavoidable Does not change the impact
LU-6: Change in views Significant and unavoidable Does not change the impact
LU-7: Increase in light and glare Less than significant Does not change the impact
Hydrology and Water Quality
H-1: Increased Discharges of Surface Water Pollutants related to Construction Activities Less than significant Does not change the impact
H-2: Increased Discharges of Surface Water Pollutants related to Ongoing Use of the
Project
Less than significant Does not change the impact
H-3: Changes in Absorption Rates, Drainage Patterns, and the Rate and Amount of
Surface Runoff
Less than significant Does not change the impact
H-4: Changes in the Course or Direction of Water Movements Significant and unavoidable Does not change the impact
H-5: Exposure of People and/or Property to Flooding Hazards Less than significant Does not change the impact
Biological Resources
BIO-1: Loss or Temporary Disturbance of Annual Grassland Less than significant with mitigation Does not change the impact
BIO-2: Loss or Temporary Disturbance of Valley Needlegrass Grassland Less than significant with mitigation Does not change the impact
BIO-3: Loss or Temporary Disturbance of Serpentine Bunchgrass Grasslands Less than significant Does not change the impact
BIO-4: Loss or Temporary Disturbance of Coyote Brush Scrub Less than significant Does not change the impact
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ENVIRONMENTAL ANALYSIS
AASP/MASP Impact AASP/MASP EIR Determination
Fiero Lane Annexation
Area
Impact Determination
BIO-5: Loss or Temporary Disturbance of Open Water Habitat Less than significant with mitigation Does not change the impact
BIO-6: Loss or Temporary Disturbance of Freshwater Marsh Less than significant with mitigation Does not change the impact
BIO-7: Loss or Temporary Disturbance of Seasonal Wetland Less than significant with mitigation Does not change the impact
BIO-8: Loss or Temporary Disturbance of Riparian Woodland And Scrub Less than significant with mitigation Does not change the impact
BIO-9: Loss of Temporary Disturbance of Agricultural Field and Congdon’s Tarplant Less than significant with mitigation Does not change the impact
BIO-10: Loss or Temporary Disturbance of Ruderal And Developed Areas Less than significant Does not change the impact
BIO-11: Impacts to Special-Status Plant Species Less than significant with mitigation Does not change the impact
BIO-12: Impacts on Non-Listed Special-Status Wildlife Less than significant with mitigation Does not change the impact
BIO-13: Mortality or Disturbance to California Red-Legged Frogs Less than significant with mitigation Does not change the impact
BIO-14: Mortality or Indirect Effects to Vernal Pool Fairy Shrimp and California Tiger
Salamanders
Less than significant with mitigation Does not change the impact
BIO-15: Potential Disturbance of American Peregrine Falcons Less than significant Does not change the impact
BIO-16: Potential Disturbance of Least Bell’s Vireo Less than significant with mitigation Does not change the impact
BIO-17: Mortality of or Indirect Effects to Southwestern Pond Turtle Less than significant with mitigation Does not change the impact
BIO-18: Disturbance to Loggerhead Shrikes Less than significant Does not change the impact
BIO-19: Mortality of or Disturbance to California Horned Larks Less than significant Does not change the impact
Traffic and Circulation
T-1: Secondary Impacts of Road Improvements Less than significant with mitigation Does not change the impact
Air Quality
AIR-1: Short-Term Construction Emissions Less than significant with mitigation Does not change the impact
AIR-2: Long-Term Operations Emissions Less than significant with mitigation Does not change the impact
Noise
N-1: Exposure of Land Uses to Traffic Noise in Excess of the Standards for Exterior Noise Less than significant Does not change the impact
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ENVIRONMENTAL ANALYSIS
AASP/MASP Impact AASP/MASP EIR Determination
Fiero Lane Annexation
Area
Impact Determination
Exposure Specified in Table 3F-1
N-2: Increase in Permanent or Temporary Ambient Noise Levels as Indicated in Table 3F-3,
Substantial Increases in Noise Would Occur Along Some Roadways
Less than significant Does not change the impact
N-3: Exposure of Residential Uses to Aircraft Noise Less than significant Does not change the impact
Hazardous Materials
HAZ-1: Potential Construction-Related Exposure to Hazardous Materials Less than significant with mitigation Does not change the impact
HAZ-2: Potential Operations-Related Exposure to Hazardous Materials Less than significant with mitigation Does not change the impact
HAZ-3: Short-Term Surface Water Quality Degradation from Accidental Release of
Hazardous Materials during Construction-related Activities
Less than significant with mitigation Does not change the impact
Public Services and Utilities
PS-1: Impacts on Water Supply and Distribution Facilities Less than significant Does not change the impact
PS-2: Impacts on Sewer Mains and Capacity, and Expansion of Treatment Facilities Less than significant Does not change the impact
PS-3: Impacts on Storm Drainage Capacity Less than significant Does not change the impact
PS-4: Impacts on Solid Waste Landfill Capacity Less than significant Does not change the impact
PS-5: Increased Demand for Law Enforcement Services Less than significant Does not change the impact
PS-6: Increased Demand for Fire Protection Service Less than significant Does not change the impact
PS-7: Potential Inadequacy of Fire Protection Infrastructure to Maintain Acceptable Levels
of Service
Less than significant Does not change the impact
PS-8: Increased Demand for Hazardous Materials Inspection, Permitting, and Response Less than significant Does not change the impact
PS-9: Impacts on Existing School System Less than significant Does not change the impact
PS-10: Impacts on Park and Recreation Facilities Less than significant Does not change the impact
Cultural Resources
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ENVIRONMENTAL ANALYSIS
AASP/MASP Impact AASP/MASP EIR Determination
Fiero Lane Annexation
Area
Impact Determination
CR-1: Potential Damage to or Destruction of Known and/or Unknown Cultural Resources Less than significant with mitigation Does not change the impact
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REFERENCES
City of San Luis Obispo Fiero Lane Annexation
Addendum to the Airport Area and Margarita Area Specific Plans and Related Facilities Master Plans EIR
3.0-10
REFERENCES
San Luis Obispo, City of. 2003. Final Program Environmental Impact Report for the Airport Area
and Margarita Area Specific Plans and Related Facilities Master Plans - SCH #2000051062.
Certified August 23, 2005.
———. 2014a. Final Program Environmental Impact Report Land Use and Circulation Elements
Update (LUCE) (SCH# 2013121019). http://www.slocity.org/government/department-
directory/community-development/planning-zoning/general-plan
______. 2014b. Draft Program Environmental Impact Report Land Use and Circulation Elements
Update (LUCE) (SCH# 2013121019). http://www.slocity.org/government/department-
directory/community-development/planning-zoning/general-plan
———. 2015. San Luis Obispo General Plan. May 2015. http://www.slocity.org/government/
department-directory/community-development/planning-zoning/general-plan
SWRCB (State Water Resources Control Board). 2015a. Breaking News, How Low Can Snow Go?
http://www.water.ca.gov/waterconditions/
______. 2015b. Notice of Approval of Emergency Regulatory Action. OAL File No. 2015-0506-02
EE. http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/docs/
emergency_regulations/oal_approved_regs2015.pdf
______. 2015c. Media Release, State Water Board Adopts 25 Percent Mandatory Water
Conservation Regulation. http://www.swrcb.ca.gov/press_room/press_releases/2015/
pr050515_water_conservation.pdf
______. 2015d. Urban Water Suppliers and Regulatory Framework Tiers to Achieve 25% Use
Reductionhttp://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/
docs/emergency_regulations/supplier_tiers_20150428.pdf
______. 2015e. August 2015 Water Conservation Report by Supplier.
http://www.waterboards.ca.gov/water_issues/programs/conservation_portal/conservati
on_reporting.shtml.
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PHASES OF PROPOSED ANNEXATION
Phase 1 (Following Initiation/approval of Memorandum of Agreement):
This phase will include an interim hookup to City water and sewer facilities after initial Council
and LAFCO authorization. The physical changes will be limited to the following:
1. Disconnection from the FLWC Wastewater Treatment Plant (WWTP).
2. Sewer system connection for the proposed annexation area, including approximately
30 feet of temporary sewer force main construction in existing disturbed street areas.
3. Potable water system connection for the proposed annexation area at a single point,
including minor temporary pipeline construction in existing disturbed areas.
Phase 2: Annexation Proposal (will return at a later date)
Phase 2 of the project includes the annexation proposal which will include a Planning
Commission review and recommendation to the City Council. If supported by the City Council,
the project may submit to LAFCO for annexation review.
During this phase, City and FLWC staff will define the detailed improvements required for
permanent connections to City systems. During Phase 2, improvements are expected to be
limited to existing disturbed areas and may include rehabilitation of existing deteriorated asphalt
concrete in Fiero Lane. A general listing of anticipated improvements is as follows:
1. Decommissioning of the existing WWTP, including relocation of required plant
equipment to the East Airport development
2. Installation of new water meters
3. Installation of recycled water main on Broad Street
4. Reconfiguration of sewer laterals along Fiero Lane to connect to the existing airport
gravity sewer
5. Pavement rehabilitation and sidewalk repairs within Fiero Lane
6. Other improvements as contemplated in the draft Memorandum of Agreement
between the City and FLWC
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THENewspaper of the Central Coast
TMBUNE
NO V 24 2Q15
F
-- (_IT
CITY 0 -F-RK
t.
3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406-0112 • (805) 781 -7800
In The Superior Court of The State of California
In and for the County of San Luis Obispo
AFFIDAVIT OF PUBLICATION
AD # 2106446
CITY OF SAN LUIS OBISPO
OFFICE OF THE CITY CLERK
STATE OF CALIFORNIA
ss,
County of San Luis Obispo
I am a citizen of the United States and a resident of the
County aforesaid; I aln over the age of eighteen and not
interested in the above entitled matter; I am now, and at
all times embraced in the publication herein mentioned
was, the principal clerk of the printers and publishers of
THE TRIBUNE, a newspaper of general Circulation,
printed and published daily at the City of San Luis
Obispo in the above named county and state; that notice
at which the annexed clippings is a true copy, was
published in the above -named newspaper and not in any
supplement thereof — on the following dates to wit;
NOVEMBER 20, 2015 that said newspaper was duly
and regularly ascertained and established a newspaper of
general circulation by Decree entered in the Superior
Court of San Luis Obispo County, State of California, on
June 9, 1952, Case #19139 under the Government Code
of the State of California.
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
I%A.t, bUVMJt��
(Signat of Principal Clerk)
DATED: NOVEMBER 20, 2015
AD COST: $167.20
UsAnum0nvo
SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites
all interested persons to attend a public
hearing on Tuesday, December 1, 2015,
at 6:00 p.m. in the City Hall Council
Chamber, 990 Palm Street, San Luis Obi-
spo, Califorinla, relative to the following-
1. 450±1 EIIO LANE tANNX- 1166 -2 15
A public hearing to consider a Resolu-
tion approving a memorandum of agree-
ment for the terms and conditions of
the possible annexation of approximate-
ly 40 acres of property along Flero
Lane and Clarion Court, inotuding, but
not limited to the provision for interim
water and sewer service. The project al-
so includes a proposed amendment to
MurilClpal Code Chapter 13.16 for wa-
lar service to outside users. The project
also Includes addendum to the Airport
Area and Margarita Area Environmental
Impact Report..
This application Is on file at the City of
LUIS Obispo Community Development
Department. 919 Palm Street. For more
information, you are Invited to contact
Marcus Carioni, Associate Planner, at
(805) 781 -7176 or by email mcartynV
slacliv,yra.
The City Council may also discuss of
hearings or business Items before or a
the items listed above. If you challenge
proposed project in court, you may be III
ad to raising only those issues you
someone else raised at the public Bear
described In this notice, or in written coi
spondence delivered to the City Council
or prior to, the public hearing.
deports for this meeting will be available
for review in the City Clerk's Office and on-
line at w M-_S1q i .0M on Wednesday, No-
vember 25, 2415. Please call the City
Clerk's Office at (805) 781 -7100 for more
Information. The Clly Council meeting will
be televised live on Charter Cablo Channel
20 and live streaming on www.slocity.org.
Jon Ansolabehere
Interim City Clerk
City of San Luls Obispo
Nwembrr 20, 2015 2106446
1
Fiero Lane/Clarion Court
ANNX-1166-2015
December 1, 2015
Consideration of a MOA for interim water and sewer service associated
with the anticipated annexation of approximately 40 acres of property
along Fiero Lane and Clarion Court. Project includes an addendum to
the Airport Area and Margarita Area EIR.
Recommendation
2
1)Adopt a Resolution (Attachment C) approving and authorizing the
Mayor to execute a Memorandum of Agreement (Attachment F)
regarding the future annexation of the Fiero Lane and Clarion Court
area and the provision of interim water and sewer service to Fiero
Lane Water Company; and
2)Approve an Addendum to the Airport Area and Margarita Area EIR
(Attachment H); and
3)Introduce an Ordinance (Attachment E) amending Municipal Code
Chapter 13.16 to allow for limited interim water and sewer service
outside of the City.
Site Information/Setting
3
Land Use: Services/Manufacturing
& Business Park
Size: ~40 Acres
Existing: 1 & 2 story light
manufacturing, service
commercial, & office uses.
Site Information/Setting
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Project Description
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1)Review of request for interim water and sewer service hookup for
the project site which is located outside the City limits
Associated with anticipated annexation of the project site
2)Need for interim service connection:
The longer timeframe associated with annexation and issues
concerning poor water quality of the three wells and water treatment
system that serves the area
3)Physical changes expected to be limited to connections and
improvements to existing infrastructure; no specific development is
proposed.
Analysis
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1)Annexation was anticipated and supported by adoption of the
Airport Area Specific Plan:
Annexation of entire plan area was preferred but it was recognized
some properties couldn’t annex during phase 1 of the AASP (Chapter
9.1).
AASP adoption included pre-zoning of un-annexed properties within the
plan boundary.
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Analysis
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1)Annexation was anticipated and supported by adoption of the
Airport Area Specific Plan:
Annexation of entire plan area was preferred but it was recognized
some properties couldn’t annex during phase 1 of the AASP (Chapter
9.1).
AASP adoption included pre-zoning of un-annexed properties
within the plan boundary.
2)Staff supports interim service request which includes the following
for Council consideration in support of the proposal:
A.Finding that the anticipated annexation is supported by the General Plan
B.Amending MC Chapter 13.16 to allow service to an outside user
C.Approving the Memorandum of Agreement between the applicant and the City
D.Approving an Addendum to the Airport Area and Margarita Area EIR
Analysis
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A.The anticipated annexation is supported by General Plan
criteria for “Annexation in Airport Area” (LUE 1.13.5)
Property is substantially surrounded by City land;
Within the URL;
Surrounded by existing infrastructure with capacity to serve the project
site.
Analysis
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B.Amendment to MC Chapter 13.16
LUE Policy 1.13.1 / MC 13.16 prohibits provision of water/sewer
service to areas outside the city limits, and;
1.13.1 and policy establishing URL (1.7.1) aid in avoiding growth inducing
that might occur if City practice was to provide service to development in
County unincorporated areas.
Applicant has submitted application & fees for annexation
Applicant has agreed to a Memorandum of Agreement (MOA)
which establishes parameters of interim service with
timeframes/penalties to ensure annexation
Process consistent with LUE Annexation Purpose and Timing
(1.13.3), which permits phased annexations when consistent
with a City approved Specific Plan.
Analysis
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B.Amendment to MC Chapter 13.16 (continued)
In support of the proposal, City Council would need to modify MC
“exception” language.
add subsection “E” which allows water and sewer service for the
project site.
“E. Provision of interim water and/ or sewer service to the Fiero Lane and
Clarion Court annexation area, as set forth in the Memorandum of
Agreement between the City of San Luis Obispo and Fiero Lane Water
Company and adopted by City Council Resolution No. ________ (2015
Series).”
Analysis
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C.Memorandum of Agreement (between applicant and City)
Establishes terms and conditions regarding the anticipated annexation of
the project site into the City
MOA Contents:
Interim water and sewer service:
Service provided at normal commercial rates. If not in compliance with MOA
terms/timeline rates will double and interim connection can be removed at applicant’s
expense
Costs and Fees
Applicant responsible for all costs and expenses for annexation and required
infrastructure (water/wastewater impact fees and recycled water fees)
City Responsibilities
Once installed, City will operate/maintain water and sewer infrastructure.
Existing and Future Development
Once annexed, properties may be further developed per City requirements.
Analysis
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B.Memorandum of Agreement (continued)
MOA Timeline:
1.Council Hearing #1 [MOA for Interim Service] (Dec. 1, 2015)
2.LAFCO Application Submittal [Outside User Application] (Dec. 2015)
3.LAFCO Review Hearing #1 [Outside User Request] (Feb/Mar 2016)
4.Interim Service Begins [Bonds to cover City expenses] (on/before April 1, 2016)
5.Applicant Annexation Submittal [Submittal for Annexation Review] (July 1, 2016)
6.PC Review Hearing [Review Annexation Request] (Sept. 2016)
7.Council Hearing #2 [Review Annexation Request] (Nov. 2016)
8.LAFCO Submittal [Annexation Request Submittal] (Dec. 1, 2016)
9.LAFCO Review Hearing [Review Annexation Request] (April 1, 2017)
10.Improvements: financing, plans/specification for infrastructure improvements, construction of
improvements, City acceptance of improvements (~3 years)
11.Annexation Complete [Impact Fees Paid] (Jan 2020)
**Failure to follow timeline/MOA conditions: Double Fees/disconnection from interim service connection
Analysis
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D.Environmental Review
Staff prepared an Addendum to the EIR adopted with the Airport
Area and Margarita Area Specific Plan’s prepared in 2005.
Considers current drought conditions because 2005 EIR was based on
normal precipitation
Conclusion:
No new conditions exist that would require preparation of a subsequent EIR
per CEQA
Summary
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1)The anticipated annexation is supported by General Plan criteria for
Annexation in the Airport Area and was anticipated with adoption of
the AASP.
2)Language is provided to amend MC Chapter 13.16 to allow
provision of water and sewer service for the project site.
3)The MOA adequately addresses the parameters of interim service
and establishes timeframes/penalties to ensure annexation.
4)The Addendum properly characterizes current drought conditions
and indicates that preparation of a subsequent EIR is not
necessary.
Recommendation
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1)Adopt a Resolution (Attachment C) approving and authorizing the
Mayor to execute a Memorandum of Agreement (Attachment F)
regarding the future annexation of the Fiero Lane and Clarion Court
area and the provision of interim water and sewer service to Fiero
Lane Water Company; and
2)Approve an Addendum to the Airport Area and Margarita Area EIR
(Attachment H); and
3)Introduce an Ordinance (Attachment E) amending Municipal Code
Chapter 13.16 to allow for limited interim water and sewer service
outside of the City.
5. Interim Water and Sewer Service Provision
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a)Packet Page #153 …CITY shall have no obligation whatsoever to provide
COMPANY with water or sewer service prior to Annexation. COMPANY
further acknowledges and agrees that CITY shall have no obligation
whatsoever to provide interim water and/or sewer service under this
Section 5 unless and until COMPANY provides CITY with all necessary
documents for the Annexation application to initiate proceedings for the
annexation of the Area into the City’s boundaries. During the Interim
Service Period, COMPANY shall continue to provide its customers with…