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CC 2016-08-23 Supplemental Information MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, ACTING CITY MANAGER TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 12.a. – AUGUST 23, 2016 CITY COUNCIL MEETING CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION 4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM DATE: AUGUST 23, 2016 Attached is correspondence received this afternoon regarding the above-referenced agenda item. cc: City Attorney City Clerk Public Review Binder THIS PAGE INTENTIONALLY LEFT BLANK 3427 Miguelito Court San Luis Obispo, CA 93401 805.541.4509 p 805.546.0525 f www.oasisassoc.com CP 018415 ● RLA 2248 ● CLARB 907 23 August 2016 HONORABLE CITY COUNCIL MEMBERS c/o Mr. Geoff English, Acting City Manager CITY OF ARROYO GRANDE 300 East Branch Street Arroyo Grande, CA 93420 RE: RESOLUTION AMENDING EXHIBIT ‘A’ OF RESOLUTION 4659 – DECLARED STAGE 1 WATER SHORTAGE EMERGENCY – OPTIONS FOR POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM and the EAST CHERRY AVENUE SPECIFIC PLAN Dear Council Members, Thank you, in advance, for the opportunity to address the Council regarding item # 12.a. on your agenda this evening. As you know, we represent the property owners of the parcels collectively known as the East Cherry Avenue Specific Plan. This work effort was initiated in 2014, with an application lodged in May 2015, and has been a true collaboration with City staff, the environmental consultant(s), our team of consultants, your advisory bodies and, as importantly, the community and neighbors surrounding the projects. Based upon California’s fifth year of drought and the resultant critical state of water resources in the City of Arroyo Grande, we want to acknowledge the City’s continued efforts to be at the forefront of this situation. The importance of a sustainable water supply and conservation strategies have been key components of the Specific Plan and related individual developments. With your discussion this evening regarding the Stage 1 Water Shortage Emergency and related policies, we felt compelled to bring forward one of the unique aspects of the Specific Plan properties related to water resources. Our initial water assessment analysis, the third party environmental review (i.e., the environmental impact report), and our updated analysis all conclude that the project’s water consumption will be a reduction from the current agricultural use, resulting in a net increase to the City’s water supply of upward of ten (10) acre feet/year. Attached is the revised analysis that now also reflects the City’s updated Urban Water Management Plan. This additional supply reflects the delta between the existing and long-term agricultural water usage and the projected water use of the three development proposals. In addition to increasing the City’s water supply, the Specific Plan addresses the maximum water conserving measures to be implemented in each of the three projects, ensuring compliance with the City’s goals and objectives. Again, to put the Specific Plan projects in perspective, should the City Council approve the Specific Plan and the various other entitlements during the September 27, 2016 hearing, any one of the projects would not require “wet water” for at least two (2) years. We anticipate that projects like the East Cherry Avenue Specific Plan or “pipeline” projects, would not be subject to a development moratorium for this and the next calendar year, given the current circumstances outlined by staff. As stated, the General Plan Housing and Economic Development Elements prioritize continued modest infill development to meet housing needs and achieve economic sustainability. Both priorities could be jeopardized by the implementation of a moratorium as impacts would include a housing shortfall and a further risk to the City’s image as a reliable place to invest and do business. We ask that the Council carefully consider the details and resultant ramifications of any decision that would place projects like East Cherry Avenue Specific Plan in a precarious situation. We look forward to your positive response and so appreciate your time and consideration of these important challenges. OASIS ASSOCIATES, INC. 23 August 2016 CC Item 12.a. – Stage 1 Water Shortage Emergency Page 2 of 2 3427 Miguelito Court San Luis Obispo, CA 93401 805.541.4509 p 805.546.0525 f www.oasisassoc.com CP 018415 ● RLA 2248 ● CLARB 907 Yours respectfully, OASIS ASSOCIATES, INC. C.M. Florence, AICP Agent SRK HOTELS, INC. NKT DEVELOPMENT, LLC AG VALLEY JAPANESE WELFARE ASSOCIATIONS Attachment – Memorandum E. Cherry Ave Specific Plan Subareas Water Use Assessment, RRM, July 24, 2016 c: D. Malicoat, Admin Services Director T. McClish, Community Development Director D. Hirsch, Asst. City Attorney S. Taylor, Utilities Supervisor K. Heffernon, Associate Planner SRK, NKT, AGVJWA 15-0024 15-0219 MEMORANDUM Date:July 24, 2016 To:Carol Florence Organization:Oasis Associates From:Robert Camacho Title:Project Manager Project Name:East Cherry Ave Entitlement Project Number:0144-01-RS15 Topic:East Cherry Ave Specific Plan Sub Areas Water Use Assessment Addendum The purpose of this addendum to the “Water Use Assessment” prepared by RRM Design Group, is to demonstrate how the project known as “East Cherry Avenue Specific Plan Sub Areas”, is s till in compliance with the statewide emergency conservation requirements, even when compared to the 2015 Urban Water Management Plan for the City of Arroyo Grande. (For methodology on determining residential water usage from Gross Baseline Data, see original report.) Original Data From 2010 Urban Water Management Plan Original Data From 2015 Urban Water Management Plan Gross (GPCD) Residential (GPCD) Gross * .77 Gross (GPCD) Residential (GPCD) Gross * .77 UWMP Gross Baseline Usage 186 143 191 146.7 UWMP Target Usage 149 115 153 117.8 (2010 UWMP)(2015 UWMP) Per Capita Per SFR Unit Per Capita Per SFR Unit Calculated Baseline Usage 132 317 113 271 28% Reduction 95 228 81 195 Note: Per SFR unit = Per Capita * 2.4 (2010 UWMP) GPD (2015 UWMP) GPD Project Estimated Demand GPD Total Residential Usage 349 229 204 (11% Below 2015 UWMP) Indoor Usage (39%)136 89 122 Outdoor Usage (61%)213 140 82 The project’s projected water usage (indoor + outdoor) =204 GPD (see original report for calculation) is still 11% below the 2015 Calculated Residential usage per unit. As stated in the Water Assessment Report dated Nov 2015, the City has used the following ground water sources, Santa Maria Basin and Pismo Formation, as well as Lopez Reservoir as supply sources. However, this project currently is supplied water through an on-site well that provides 35-65 AFY, which is in addition to the city groundwater entitlements. Per the Water Assessment Report dated Nov 2015, Sub Area 2 has an estimated annual water usage of 14.4 AFY, which is about one third of the existing use for farming operations. In addition, the proposed use represents approximately 0.7% of the City’s existing 2,106 AFY usage (2015 UWMP). Area (Acres +/-) Current Usage (* 3 afy per acre) Projected Water Demand (afy per acre) Δ (afy) Sub Area 1 2.2 6.48 13.8 -7.32 Sub Area 2 11.6 34.8 14.4 20.4 Sub Area 3 1.5 -2.7 -2.7 15.3 41.3 30.9 10.4 AF surplus The proposed project is projected to increase the City’s Water Supply entitlement by about 10.4 AFY (see above table). This Ag conversation adds approximately 0.3% back to the City’s existing 3,813 AFY entitlement (2015 UWMP page 5-2)