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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. 13 Packet Pg. 135 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) 13 Packet Pg. 136 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 13 Packet Pg. 137 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. 13 Packet Pg. 138 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 13 Packet Pg. 139 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 13 Packet Pg. 140 g - Interim Service Letter h - Addendum to AASP/MASP EIR i - Proposed Phases 13 Packet Pg. 141 C-S C-C BP-SP PF BP-SP R-1-SP PF R-1-SP BP-SP R-1-SP C-S-SP C-C-SF C-S-S R-2-SP BP-SP R-1-SP O-SP R-2-SP C/OS PF BP-SP R-2-SP C/OS R-2-SP C/OS-SP R-1-SP C/OS-SP C/OS-SP R-2-SP R-1-SP PF-SP C/OS-SP R-2-SP-PD M-S R-1-PD-SP C-S-SP PF-SP R-1-SP R-2-SP O-SP C-S-MU-PD R-3-SPR-1-SP R-2-SP R-1-SPC/OS C/OS-SP C/OS-SP C/OS C/OS-SP BP-SP C/OS-40-SP C/OS-40-SP R-2-SP R-1-SP C-S-S-SP C-S C-S C/OS-40-SP R-2-SP PF-SP C/OS-SP R-1-SP C-C-SF C/OS-40-SP B R O A D TANK FARM P O I N S E T T I A AIRPO R T FULLER SA N T A F E HOO V E R INDUSTR I A L CLARION AERO FIERO AEROV I S T A H O L L Y H O C K SPITFIR E GOLDENROD EL CAPIT A N LOBELIA L A P O S A D A BOUGAI N V I L L E A L A R K S P U R CYCLAMEN DAHLIA AZALEA S U N R O S E B L U E B E L L FELICIA AMBROSIA COLUMB I N E OLD SANTE FE CALLE D E L C A M I N O S A L Y S S U M SANT A F E VICINITY MA3 ANNX-116-2015850 FIERO LANE ¯ 13.a Packet Pg. 142 At t a c h m e n t : a - V i c i n i t y M a p ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) CLARIO N CT A E R O VIS T A L N F I E R O L N B R O A D S T SA NTA FE RD 6.83 2.29 2.13 2.3 2.2 1 2.03 2.4 2.43 1.77 1.28 1.27 1.23 0.8 0.950.88 0.62 0.4 0.54 0.48 0.46 0.30.35 0.33 0.32 0.29 0.23 0.23 0.220.22 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 0 2,0 00 4,0 00 Feet 0 0.5 10.25 Miles 1 inch = 3,000 feet Z 1.50 (Acreage) 13.b Packet Pg. 143 At t a c h m e n t : b - A n n e x a t i o n B o u n d a r y M a p ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.c Packet Pg. 144 At t a c h m e n t : c - D r a f t R e s o l u t i o n ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.c Packet Pg. 145 At t a c h m e n t : c - D r a f t R e s o l u t i o n ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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). 13.d Packet Pg. 146 At t a c h m e n t : d - M u n i c i p a l C o d e C h a p t e r 1 3 . 1 6 L e g i s l a t i v e D r a f t A m e n d m e n t s ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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: 13.e Packet Pg. 147 At t a c h m e n t : e - D r a f t O r d i n a n c e A m e n d i n g M C C h a p t e r 1 3 . 1 6 ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 Packet Pg. 148 At t a c h m e n t : e - D r a f t O r d i n a n c e A m e n d i n g M C C h a p t e r 1 3 . 1 6 ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.e Packet Pg. 149 At t a c h m e n t : e - D r a f t O r d i n a n c e A m e n d i n g M C C h a p t e r 1 3 . 1 6 ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 150 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 151 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.f Packet Pg. 152 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 153 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 154 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 155 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.f Packet Pg. 156 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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] 13.f Packet Pg. 157 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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: 13.f Packet Pg. 158 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 13.f Packet Pg. 159 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) BRO A D S T R E E T / H W Y 2 2 7 MORA B I T O P L A C E PR O S P E C T S T R E E T ALLENE W A Y K E N D A L L R O A D F U L L E R R O A D C A L L E D E L C A M I N O S A E R O V I S T A SANTA FE ROAD F I E R O L A N E FA R M H O U S E L A N E CL A R I O N C O U R T A E R O D R I V E AIR P O R T D R I V E BU C K L E Y R O A D Fi e r o L a n e M u t u a l W a t e r C o m p a n y O 1 i n c h = 5 0 0 f e e t 05 0 0 25 0 Fe e t CI V I L E N G I N E E R I N G CO N S T R U C T I O N M A N A G E M E N T LA N D S C A P E A R C H I T E C T U R E ME C H A N I C A L E N G I N E E R I N G PL A N N I N G PU B L I C W O R K S A D M I N I S T R A T I O N SU R V E Y I N G / G I S S O L U T I O N S WA T E R R E S O U R C E S WA L L A C E S W A N S O N I N T E R N A T I O N A L 61 2 C L A R I O N C O U R T SA N L U I S O B I S P O , C A 9 3 4 0 1 T 8 0 5 5 4 4 - 4 0 1 1 F 8 0 5 5 4 4 - 4 2 9 4 ww w . w a l l a c e g r o u p . u s MA P P R O D U C E D M A Y 2 0 0 9 . Le g e n d FL W C B o u n d a r y Pa r c e l B a s e M a p Se r v i c e A r e a M a p 13.f Packet Pg. 160 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) APN 076-511-040 076-512-008 076-512-030 076-511-025 076-512-024 076-512-033 076-512-023 076-512-022 076-512-004 076-512-025 076-512-026 076-512-001 076-512-002 076-512-003 076-512-006 076-512-005 076-512-009 076-512-017 076-512-028 076-512-015 076-512-011 076-512-010 076-512-012 076-512-007 076-512-029 076-512-032 076-512-031 076-511-038 076-512-034 076-511-039 076-511-041 076-512-035 076-512-036 Properties Served by FLWC (West Side of Broad Street) 13.f Packet Pg. 162 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) CLARIO N CT A E R O VIS T A L N F I E R O L N B R O A D S T SA NTA FE RD 6.83 2.29 2.13 2.3 2.2 1 2.03 2.4 2.43 1.77 1.28 1.27 1.23 0.8 0.950.88 0.62 0.4 0.54 0.48 0.46 0.30.35 0.33 0.32 0.29 0.23 0.23 0.220.22 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 0 2,0 00 4,0 00 Feet 0 0.5 10.25 Miles 1 inch = 3,000 feet Z 1.50 (Acreage) 13.f Packet Pg. 163 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) De p a r t m e n t D e s c r i p t i o n A m o u n t   Co m m e n t s Ad m i n i s t r a t i o n E c o n o m i c  Im p a c t  of  An n e x a t i o n  St u d y 7 , 5 0 0 $                                           CD D A n n e x a t i o n  ‐   Ci t y  pr o c e s s 2 1 , 4 4 7 $                                       CD D S ‐Ov e r l a y ‐ $                                                           in c l u d e d  in  an n e x a t i o n    CD D m a s t e r  us e  pe r m i t 3 , 2 5 0 $                                           CD D C E Q A 2, 5 5 6 $                                           As s u m e s  MN D Ap p l i c a n t F i s h &  Ga m e  Fe e s 2 , 2 6 0 $                                           Ap p l i c a n t L a f c o  An n e x a t i o n  Fe e s 1 0 , 0 0 0 $                                       Ut i l   La f c o  Ou s t i d e  se r v i c e s  ag r e e m e n t 3 , 5 0 0 $                                           Ap p l i c a n t St a t e  Bo a r d  of  Eq u a l i z a t i o n  fe e s  ‐   re c o r d  an n e x a t i o n   1, 2 0 0 $                                           ba s e d  on  as s u m p t i o n  of  le s s  th a n  51  ac r e s PW E n c r o a c h m e n t  Pe r m i t T B D PW R O W  im p r o v e m e n t s TB D PW U p g r a d e s  re q u i r e d  fo r  Fi r e   TB D Ut i l   Wa t e r  (C i t y w i d e ;  64 . 6  ED U s  @ $1 0 , 7 7 5 / E D U ) :                69 6 , 0 6 5 $                                   Es t i m a t e Ut i l   La n d s c a p e  me t e r s Wa i t i n g  on  de t a i l s  fr o m  ap p l i c a n t Ut i l   Se w e r  (C i t y w i d e ;  64 . 6  ED U s  @ $3 , 7 2 9 / E D U ) :                    23 4 , 4 9 8 $                                   Es t i m a t e Ut i l   Se w e r  (T a n k  Fa r m  64 . 6  ED U s  @ $3 , 6 3 0 / E D U ) :                                                  24 0 , 8 9 3 $                                   Es t i m a t e Ut i l   Se w e r  (A i r p o r t  64 . 6  ED U s  @ $2 , 7 1 0 . 5 4 / E D U ) :                  17 6 , 1 0 1 $                                   Es t i m a t e  (n o t  ap p r o v e d  by  Co u n c i l  ye t ) Ut i l   Re q u i r e d  up g r a d e  co s t s  fo r  in t e r i m  co n n e c t i o n W I P  ta r g e t  is  De c e m b e r  23 r d Ut i l   Re q u i r e d  up g r a d e  co s t s  fo r  an n e x a t i o n W I P  ta r g e t  is  De c e m b e r  23 r d Ut i l   Re c y c l e d  Wa t e r  Li n e   20 0 , 0 0 0 $                                   Ro u g h  es t i m a t e  fo r  gu i d a n c e ,  wi l l  li k l e y  ch a n g e   Ci t y  At t o r n e y ' s  Of f i c e L e g a l  Re v i e w  Fe e s 4 5 , 0 0 0 $                                       Ro u g h  es t i m a t e  fo r  gu i d a n c e Fi n a n c e C F D / L a n d b a s e d  fi n a n c i n g  fe e s 1 2 5 , 0 0 0 $                                   Ro u g h  es t i m a t e  fo r  gu i d a n c e To t a l 1, 7 6 9 , 2 7 0 $                           * 3/ 4 "  me t e r  ‐   1 ED U  = $1 0 , 7 7 5 * 1"  me t e r  = 1. 7  ED U  = $1 8 , 3 1 7    * 1 1/ 2 "  me t e r  = 3. 4  ED U =  $3 6 , 6 3 3   **  3/ 4 "  me t e r  = 1. 0  ED U  = $7 , 3 5 9  + Ai r p o r t  Li f t  St a t i o n  ad d  on  fe e  of  ap p r o x i m a t e l y  $2 , 5 0 0 / E D U   **  1"  me t e r  = 1. 7  ED U  = $1 2 , 5 1 0  + Ai r p o r t  Li f t  St a t i o n  ad d  on  fe e  of  ap p r o x i m a t e l y  $2 , 5 0 0 / E D U   **  1 1/ 2 "  me t e r  = 3. 4  ED U =  $2 4 , 6 5 5 +  Ai r p o r t  Li f t  St a t i o n  ad d  on  fe e  of  ap p r o x i m a t e l y  $2 , 5 0 0 / E D U   ** * * I n c l u d e d  in  an n e x a t i o n  co s t  as  pa r t  of  pr e ‐zo n i n g 13.f Packet Pg. 164 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.f Packet Pg. 165 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 166 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.f Packet Pg. 167 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.f Packet Pg. 168 At t a c h m e n t : f - M e m o r a n d u m o f A g r e e m e n t ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.g Packet Pg. 169 At t a c h m e n t : g - I n t e r i m S e r v i c e L e t t e r ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.g Packet Pg. 170 At t a c h m e n t : g - I n t e r i m S e r v i c e L e t t e r ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 171 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 13.h Packet Pg. 172 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 173 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 13.h Packet Pg. 174 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 175 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) This page is intentionally left blank. 13.h Packet Pg. 176 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 177 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 This page is intentionally left blank 13.h Packet Pg. 178 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 179 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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: 13.h Packet Pg. 180 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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: 13.h Packet Pg. 181 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 182 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 183 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 This page is intentionally left blank 13.h Packet Pg. 184 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) So u r c e : W a l l a c e G r o u p T:\_Figures \ Figure 1 Location FE E T 98 0 49 0 0 Sa n L u i s O b i s p o C o u n t y Re g i o n a l A i r p o r t SI T E SI T E SI T E 13.h Packet Pg. 185 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 13.h Packet Pg. 186 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) So u r c e : W a l l a c e G r o u p T:\_Figures \ FE E T 4, 0 0 0 2, 0 0 0 0 Figure 2 Project Site 13.h Packet Pg. 187 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 13.h Packet Pg. 188 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 189 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 190 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 191 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 192 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 193 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 194 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 195 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 196 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.h Packet Pg. 197 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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. 13.h Packet Pg. 198 At t a c h m e n t : h - A d d e n d u m t o A A S P / M A S P E I R ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) 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 13.i Packet Pg. 199 At t a c h m e n t : i - P r o p o s e d P h a s e s ( 1 1 8 7 : F i e r o L a n e / C l a r i o n C o u r t A n n e x a t i o n ) Page intentionally left blank. 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 4 Project Description 5 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 6 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. 7 Analysis 8 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 9 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 10 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 11 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 12 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 13 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 14 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 15 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 16 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 17 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…