HomeMy WebLinkAbout02/21/1995, 4 - SALINAS RESERVOIR EXPANSION PROJECT STRATEGY FOR PROCEEDING WITH THE ENVIRONMENTAL IMPACT REPORT AND OTHER RELATED ISSUES IIIYAII��III ,,,,,,,I
Iul I�IuAI�l11 c�Y of san LUIS osIspo MEETING OAT21, 199
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WA COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: John Moss � M Prepared By: Gary W. Henderson A+W
Utilities for Water Division Manager
SUBJECT: Salinas Reservoir Expansion Project Strategy for Proceeding with the
Environmental Impact Report and Other Related Issues
CAO RECOMMENDATION:
By motion endorse the proposed strategy for proceeding with the Salinas Reservoir
Expansion Project and direct staff to develop a formal amendment to Woodward-Clyde's .
contract for Phase III.
REPORT IN BRIEF:
The implementation and completion of the Salinas Reservoir Expansion Project will require
resolution of three issues: the City's water rights, the transfer.of ownership of the facilities, and
the certification of the environmental impact report (EIR). Staff has developed a strategy for
proceeding with the project through a phased approach over the next several years.
The water rights issue will require a hearing before the State Water Resources Control Board.
The hearing will not be scheduled by Board staff until after certification of the EIR.
The ownership transfer of the dam, related facilities and surrounding property from the U.S.
Army Corps of Engineers (Corps) to a local agency must be accomplished prior to beginning
construction. It is currently envisioned that the ownership of the facilities would be transferred
to the San Luis Obispo County Flood Control and Water Conservation District. The transfer
of ownership will require approval of agreements by both the City Council and the Board of
Supervisors as well as additional studies/agreements with the Corps. There is some opposition
in the north county to this concept and staff recommends that additional meetings be held with
north county political bodies and staff to determine whether modifications to the draft ownership
transfer agreements can resolve or minimize the opposition.
The final issue involves the certification of the environmental impact report. There are concerns
raised by individuals and agencies relative to the process that the City was pursuing for
certification. In particular, certifying the EIR prior to the development of the detailed
mitigation/mitigation monitoring plans. Staff recommends that the strategy be modified and that
the mitigation plans be developed prior to certification of the EIR. By following a phased
approach to completion of the project, the City will be in a better position to address issues as
they arise and will avoid significant financial commitment until required preceding work is
completed.
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city of San L S OBISp0
COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 2
DISCUSSION:
The Salinas Reservoir Expansion Project is proceeding along several parallel tracks towards
project implementation but there is growing opposition to the project in the north county. The
project is being challenged by individuals and agencies on three separate, yet related areas: 1.)
the issue of the City's water rights, 2.) the ownership transfer of the dam and related facilities,
and 3.) the adequacy of the draft environmental impact report (EIR). This report will address
each of these areas and present a strategy for proceeding with the project through a phased
approach which allows for a series of "go/no-go" decision points over the next several years.
This phased approach will defer financial commitments as long as possible without impacting
the overall project schedule.
Water Rights
The City of San Luis Obispo filed for and received a permit to appropriate water from the
Salinas River in June 1941 from the State Water Resources Control Board. The City has been
exercising the water rights under our permit since the 1940's. The permit allows for the storage
of up to 45,000 acre-feet of water per year. The reservoir capacity is currently 23,843 acre-feet.
The permit issued by the State has a specific time period as one of the conditions, which has
typically been 10 year periods. Therefore, periodically the City must request a time extension
from the State for our permit. Since the City continues to pursue the expansion of the reservoir
to permitted opacity, the City filed a request for an additional time extension from the State in
1991.
One formal protest to the request for time extension was received by the State during the period
allowed for such protests. The protest was from the California Sportsfishing Protection Alliance
(CalSpa). It should be noted that dozens of protests from north county individuals and agencies
have been submitted to the State Board during the past year, but these have not been formally
accepted because they were not filed during the appropriate time period.
CalSpa had numerous issues in their initial protest, many of which State Board staff have not
accepted. The primary issue which is still before the Board involves downstream releases
necessary to protect fisheries in the Salinas River. This issue is referred to as the "public trust
doctrine". The resolution of the protest will likely require a State Board hearing. The State
Board is waiting for the City to certify the EIR for the expansion project prior to scheduling the
hearing.
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COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 3
Ownership Tmnsfer
The U.S. Army Corps of Engineers (Corps) currently owns the Salinas Dam, related facilities,
and surrounding property. The Corps has been interested for many years in transferring
ownership of the facilities to a local agency since the facilities serve no federal purpose.
Correspondence from the Corps in 1992 indicated that "Salinas Dam is being used as a local
water supply facility with no flood control function. Because of this, there is no Federal interest
in modifying the dam to allow for increased water storage." In essence, the Corps is stating that
the expansion can not occur until ownership is transferred to a local agency.
In November 1992, the San Luis Obispo City Council endorsed the concept of transferring the
ownership of the Salinas Dam, related facilities, and surrounding property to the County. This
decision was based on the City's desire to proceed with the reservoir expansion project and the
understanding that north county agencies would be opposed to the City controlling the operation
of the valves which regulate water releases required under the "live stream agreement".
City and County staff have negotiated the draft agreements intended to protect each agency's
interests at the lake. These draft agreements have been presented to north county agencies for
their information.
There have been concerns raised in the north county by individuals and agencies to the transfer
agreements as well as the overall concept of ownership transfer from the Corps. The opposition
revolves around two key issues. The first issue involves the fact that if the ownership of the
facilities is not transferred, the expansion of the reservoir may not be allowed by the Corps.
The second issue is the belief that the County (San Luis Obispo Flood Control and Water .
Conservation District) may not act in the best interest of the north county in the operations of
the facilities.
Prior to formally presenting the agreements to the City Council and Boards of Supervisors, staff
would like to recommend that addition consultations with north county staff and political bodies
be undertaken to see if modifications to the agreements can resolve the opposition to the concept
of property transfer to the County.
The agreements between the City and County will not transfer the property but will initiate the
process with the Corps to allow for the transfer. Significant additional studies and analysis will
have to be performed prior to property transfer. The additional consultant work necessary for
the property transfer has been estimated to cost between $100,000 and $400,000. The current
draft agreements with the County would require the County to pay for 50% of the costs related
to the ownership transfer, up to a maximum amount of $100,000. The cost estimates for the
ownership transfer will be refined during Phase III, as identified later in this report.
City Of San t s OBISPO
COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 4
Environmental Impact Report
The draft environmental impact report was completed and circulated for comments in November
1993. The public comment period closed on January 3, 1994. Numerous comments and
concerns were received from individuals and agencies. Draft responses have been prepared but
the final document has not been completed.
Numerous individuals and agencies have expressed concerns with the process originally
envisioned for certification of the EIR.• The certification of the EIR could be done prior to
development of the detailed mitigation/mitigation monitoring plans. This was the original
strategy and would allow the City Council to certify the EIR prior to preparation of the detailed
mitigation plans. The "Notice of Determination" for the project would not have been filed until
the mitigation plans were complete.
Due to concerns raised, staff would recommend that the detailed mitigation plans be developed
prior to certification of the EIR. This will require consultation with regulatory agencies and may
include discussions with interested groups in the county. Delay of the certification until after
the development of these plans may require recirculation of the draft EIR and additional
comments received would have to be responded to in the final EIR. Additionally, certain EIR
analyses may need to be updated due to the time that has elapsed since the draft EIR was issued
in 1993.
Phased Project Strategy
The Salinas Reservoir Expansion Project implementation requires additional work along two
parallel issues. The first is the certification of the EIR and the second involves the resolution
and accomplishment of the transfer of ownership from the Corps.
The certification of the EIR could be accomplished prior to development of the detailed
mitigation/mitigation monitoring plans, but strong opposition may be expected if this alternative
is pursued. Staff recommends that the certification of the EIR be postponed until the mitigation
plans have been completed. This will require consultations with regulatory agencies. The scope
of the next phase of work (Phase III) is outlined below. Following the consultations with
regulatory agencies, additional studies may be necessary to develop the mitigation plans. Prior
to completion of Phase III, the City could initiate Phase IV work which may include the
additional studies (if necessary) as well as work necessary to proceed with property transfer.
Due to the growing opposition in the north county to the project as well as the property transfer,
additional meetings with north county political bodies, as well as north county staff, seems
warranted. There may be the potential for modifications to the draft ownership agreements
which could reduce the north county opposition. Following the meetings with north county
1111►►i1IIIII11011' lU city Of San ' S OBISPO
COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 5
councils, boards, and staff, the agreements would be presented to the City Council and the Board
of Supervisors for approval. Following the execution of the agreements, the additional studies
and consultations with the Corps could begin. The additional work to support the property
transfer is outlined below in Phase IV.
Phase III: Follow-un to Draft EIR
■ Consultations and Negotiations with Key Permitting and Regulatory
Agencies Regarding Mitigation Needs/Requirements
■ Prepare Detailed Mitigation Program Work Plan,Including Cost Estimates
and Schedule
■ Technical Workshop Presentations to Agencies
P Design On-going Public Outreach Program (continue until construction-
decision point is reached)
■ Prepare Work Plan for Phase IV
Phase IV: PmWay Transfer and Additional Studies
■ Conduct Additional Round of Winter/Spring Biological Surveys (if
necessary)
■ Develop Detailed Property Transfer Work Plan and Initiate NEPA
Compliances and Formal Property-Transfer Program with Corps;
Negotiate Scope of NEPA Studies
■ Finalize Agreements with County and Corps Regarding Property Transfer;
Refine Recreation/Land-Use Plan
■ Perform Required Field Studies for NEPA/Corps Program (e.g.,
threatened and endangered species studies, cultural resource surveys,
hazardous materials assessment)
■ Prepare Draft Environmental Assessment (EA) for Property Transfer and
Submit to Corps for Review/Approval in Completing NEPA Compliance;
Determine Whether an Environmental Impact Study will be Required
■ Prepare Detailed Work Plan for next Phases of Work
city of San t 3 OBIspo
COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 6
The phases of work to follow Phase III and IV will be more clearly defined following
consultations with various agencies and organizations. The additional areas of work will likely
include the following major subject areas:
Phase V: Additional Field Investigations. and Detailed Mitigation Program
Development
Phase VI: Complete CEQA and NEPA Compliance
Phase VII: Implement Mitigation Plans and Complete Final Design
Phase VIII: Construction and Project Completion
Phase IX: On-Going Long-Term Mitigation Program
FISCAL IMPACT
The preliminary cost estimate for Phase III is $60,000. This estimate will be refined following
development of the detailed scope of work for an amendment to the contract with Woodward-
Clyde Consultants. The amendment will be presented to Council for approval within the next
several months. Estimates for the following phases of work will depend on the outcome of the
meetings held with regulatory agencies and other interested groups. A range of preliminary
costs for the various phases are provided below:
Phase IV: $250,000 - $350,000
Phase V: $90,000 - $190,000
Phase VI: $175,000 - $295,000
Phase VII: $8509000 - $195009000
Phase VIII: $6,000,000 - $8,700,000
Phase IX: Cost unknown until Phase VII is completed
TOTAL ESTIMATED COST RANGE $7,425,000 to $1190959000
(including Phase III)
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Vier 01
►���►►�i►i�IIIIIII�p ��Ill city of San S OBISpo
COUNCIL AGENDA REPORT
Salinas Reservoir Expansion Project
Page 7
Approval of proceeding with Phase III,as recommended in this report will not require additional
appropriation. A total of $300,000 was approved for additional studies related to the Salinas
Reservoir Expansion project as part of the 1994-95 Budget(page E-3). (Originally, the 1993-95
Financial Plan, page E-5, reflected $1.3 million for design and studies for 1993/94. This was
updated as part of the 1994 water fund analysis and 1994-95 budget. The budget was separated
into two components: $300,000 for additional studies was moved to 1994/95, and $1 million
for design was moved to 1995/96.) The table below reflects the project funding by year
included in the most recent water fund analysis. It is anticipated that the level of funding and
phasing will be revised to include the most recent information during the development of the
1995-97 Financial Plan process.
SAUNAS RESERVOIR EXPANSION PROJECT
YEAR APPROVED/INCLUDED PURPOSE
IN FINANCIAL PLAN
.1994/95 $300,000 Additional studies-
Permitting
1995/96 1,000,000 Design
1996/97 8,000,000 Construction
ALTERNATIVES
Finalize the EIR and return to Council for certification prior to development of the detailed
mitigation/mitigation monitoring plans. Even though this is allowed under CEQA guidelines,
it would likely result in opposition by those most concerned with the mitigation of environmental
impacts. If the EIR were finalized, it would allow the hearing before the State Board to be
scheduled which would allow the project to move forward in a more timely manner. Although
this alternative has the potential to reduce the overall project schedule, it may undermine the
City's attempts to build consensus with the north county political bodies and staff relative to this
project and other related projects and issues in the north county. Staff would therefore not
recommend pursuing this alternative.
r
In The Superior Court of The State of California
In and for the County of San Luis Obispo
AFFIDAVIT OF PUBLICATION
No dvl-68106-0-9
City of SLO
STATE OF CALIFORNIA,
ss.
County of San Luis Obispo
I am a citizen of the United States and a resident of the CITY or
san juts oBtspo
CITY COUNCIL
County aforesaid; I am over the age of eighteen and not PUBLIC HEARINGS.
On Tuesday, February 21,
1995, the San Luis Obispo
interested in the above-entitled matter City council wiry hold public
hearings beginning at 7:00
p.m.In the Council Chambers
I am now, and at all times embraced of City Hall,990 Palm Street,
on the Items listed below,
The reports will be available
in the publication herein mention was, the principal clerk for review In the City clerk's
Department on the Wednes.
day before the meeting. For
of the printers and publishers of the SAN LUIS OBISPO more Information, please call
781-7103.
The Council may also dis-
cuss other hearings or busi-
COUNTY TELEGRAM-TRIBUNE, a newspaper of general ness items before or after
those listed. If you challenge
any one of the proposed
circulation, printed and published daily, Sundays ex- actions described below In
court, you may be limited to
raising only those Issues you
cepted, at the City of San Luis Obispo in the above or someone else raised at the
public hearing described in
this notice, or in written
named county and state; that notice correspondence delivered to
the City Council at,or prior to,
the public hearing.
TRACT 2135-to consider a
request for an exception to
the condominium regulations
requirement for solar water
heaters for Tract 2135(Units 1
&2) located in the Islay Hill
at which the annexed clipping is a true printed copy, was area at 1105 Tank Farm Road
(TR 39-93).(10 min.),
published in the above-named newspaper and not in any CfrY OF SAN LUIS OBISPO
Diane R.Gledwell,City Clerk
supplement thereof — on the following dates, to-wit: Feb.11,1995 6118106
February 11
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 provisions of Chapter 1, Division 7, Title of the
Government Code of the State of California.
I certify (or declare) under penalty of perjury that the
foregoing is true and correct.
(Signature of Principal Clerk)
Date February 11 , 19 95_