BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Memorandum of Agreement with Santa Clara County and approval of a Budget Adjustment in the Amount of $1,000,000 for Fiscal Year 2018-19 (FY19) from Fund 26 Safe, Clean Water Operating and Capital Reserves for the Ogier Ponds Planning Study, Project No. 26044003 (Unincorporated Santa Clara County) (District 1).
End
RECOMMENDATION:
Recommendation
A. Authorize the Chief Executive Officer to negotiate and execute a Memorandum of Agreement with Santa Clara County solidifying the partnership based on a contribution of 2,200 in-kind labor hours of County staff time towards development of a Planning Study Report; and
B. Authorize the Chief Executive Officer to approve a FY19 budget adjustment transferring $1,000,000 from Fund 26 Safe, Clean Water Reserves to the Ogier Ponds Planning Study, Project 26044003.
Body
SUMMARY:
The Ogier Ponds Feasibility Study Evaluation Project (Project) is a partnership between the District and the Santa Clara County Parks and Recreation Department (SCC Parks). The 591-acre site is owned by Santa Clara County (SCC) and managed by SCC Parks for recreation and environmental conservation as part of the Coyote Creek Parkway recreation area. SCC Parks’ Coyote Creek Parkway Integrated Natural Resource Management Master Plan (INRMP), adopted by the Board of Supervisors in 2007, has a natural resource objective to evaluate the potential for constructing a free-flowing channel and connected floodplain through the Ogier Ponds site in cooperation with the District. To address the potential changes to the Ogier Ponds site, the District and County Parks cooperated in preparing a feasibility study.
Because SCC is the landowner, SCC Parks and the District entered a Memorandum of Agreement (May 1, 2016) to undertake the feasibility study. To evaluate the District’s potential interest in the Ogier Ponds site, staff analyzed potential benefits of pond-creek separation in the areas of stream stewardship (i.e. ecology), managed aquifer recharge, flood attenuation, and recreation. As the landowner, SCC’s objective was to preserve existing pond-based recreation, should the creek be separated from the ponds.
The results of the analysis indicated that removal of the surface hydraulic connection between Coyote Creek and Ogier Ponds is feasible and, in doing so, will likely support water-based recreation as identified in the County’s INRMP for Coyote Creek Parkway. The site is not viable for managed aquifer recharge, and minimal flood protection benefits would result if the site were used for flood attenuation. Additional ecological benefits for native fish and wildlife in Coyote Creek would be achieved by separating the creek from the ponds.
The results of the feasibility study were presented to the District Board on March 27, 2018. Staff recommended the project move to planning should SCC Parks agree. The Board directed staff to return in 6 months with a joint District-SCC Parks proposal and a budget adjustment for proceeding with the planning study.
The Ogier Ponds creek/lake separation was identified as one of the projects that can meet the key performance indicator of “complete planning and design for 2 creek/lake separations” under Project D4 Fish Habitat and Passage Improvement in Safe, Clean Water and Natural Flood Protection Program.
Although the District does not own Ogier Ponds, it has taken steps to potentially collaborate with SCC to address the fish passage and habitat concerns that have been created for the steelhead trout which inhabits Coyote Creek and has been listed under the Endangered Species Act (ESA). On August 18, 1997, the National Marine Fisheries Service listed Central California Coast winter-run steelhead as a threatened species. The Central California Coast region includes watersheds in Sonoma and Santa Cruz Counties and drainages of the San Francisco and San Pablo Bays east of the Napa River. This drainage area Includes Coyote Creek downstream of Anderson Dam to San Francisco Bay. The District, through the Fisheries and Aquatic Habitat Collaborative Effort (FAHCE) Settlement Agreement (FAHCE) committed to undertake reasonable best efforts to remediate Ogier Ponds as a fish passage barrier by providing up to 50 percent of the remediation costs and to use reasonable best efforts to work with SCC and other parties to secure additional funding.
Because the site is designated critical habitat for the Central California Coast steelhead, restoration of the creek at this location has the potential to provide for compensatory mitigation for impacts to steelhead trout and/or the habitat that supports them. District staff has approached the SCC Parks staff about utilizing the creek/lake separation as compensatory mitigation as the District is planning several large water supply and flood protection projects within the watershed.
District staff has reviewed SCC Parks plans and policies to determine if SCC Parks property can be utilized for compensatory mitigation for project impacts to either individual species (i.e. steelhead) or habitat. The following documents were reviewed by staff for relevant Santa Clara County Parks policies: Santa Clara County General Plan, California Code, County Creek Parkway INRMP, and Santa Clara County Parks Charter. After reviewing relevant plans and codes, District staff believe that a joint effort between the District and SCC Parks to restore and enhance riparian and aquatic habitat at the Ogier Ponds site within Coyote Creek Parkway and obtain mitigation credit would be consistent with applicable plans and laws. Habitat improvement at Coyote Creek Parkway would be compatible with recreational use, would be consistent with the County Parkway INRMP, and would benefit recreational uses by providing a more natural setting for park activities. District staff did not uncover any laws or policies restricting or preventing use of compensatory mitigation or conservation easements on County Parks property. Additional discussions with and authorization by SCC Parks are necessary regarding any proposals of using SCC Parks land for compensatory mitigation of District projects.
Budget Adjustment
The SCC Parks has agreed to contribute 2,200 in-kind labor hours to the development of a Planning Study and the selection of a staff recommended alterative. SCC Parks staff from management, real estate, planning, natural resources management ,and construction would contribute to the study The District in collaboration with the SCC Parks staff will develop a public outreach plan, prepare environmental documents for planning study, identify current and future recreational elements, identify water quality concerns and solutions for the ponds, identify current and future operations and maintenance activities and collaborate on identifying and evaluating conceptual and feasible alternatives. Habitat restoration and recreation would be the focus of the Planning Study which would culminate in the selection of a staff preferred alternative endorsed by both District and SCC Parks.
The District’s budget for FY 2019 does not include funding to complete the planning study for the Ogier Ponds Project. As directed by the Board, staff is bringing the proposed budget adjustment to the Board for approval.
Partnership
Staff is developing a Memorandum of Agreement (MOA) with SCC Parks for the partnership and contribution of in-kind labor hours of County staff time towards development of a Planning Study Report. Upon Board authorization and finalizing the MOA with SCC Parks, the CEO will execute the MOA with SCC Parks.
FINANCIAL IMPACT:
Execution of a Planning Study for Ogier Ponds creek/lake separation is estimated to cost $3,000,000 over a three-year timeframe, and would require an FY19 Budget Adjustment of $1,000,000 from Fund 26 Safe, Clean Water (SCW) Operating and Capital Reserves. The remaining $2,000,000 will be budgeted accordingly for FY 20 and FY 21 to complete the Ogier Ponds Planning Study, Project No. 26044003.
From the perspective of the overall 15-year Safe Clean Water Program, there are insufficient funds allocated to Project D4 to complete planning and design for the Ogier Ponds Creek/Lake Separation Project. However, funding for Project D2 - Revitalize Stream, Upland and Wetland Habitat can be reduced by $3,000,000 without affecting its key performance indicators (KPI’s), given that KPI’s 1, 2 and 3 are effectively complete, and the only remaining work on Project D2 is to manage the partnerships and update plant palettes as needed. Therefore, staff proposes transferring $3,000,000 from Project D2 to Project D4 to enable the District to satisfy Project D4 key performance indicators without impacting Project D2.
CEQA:
The recommended action does not constitute a project under the California Environmental Quality Act (CEQ) because it would be a planning study and would not have a potential to result in direct or reasonably foreseeable indirect physical change in the environment. If the Project were to proceed to design phase, the project would be evaluated in conformance with CEQA, prior to the Board consideration of a discretionary decision to approve a creek-pond separation project.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632