CC 2012-11-13_08.i. MOU with Coastal San Luis RCDTO:
FROM:
SUBJECT:
DATE:
MEMORANDUM
CITY COUNCIL
TERESA MCCLISH~MMUNITY DEVELOPMENT DIRECTOR
CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF ARROYO GRANDE AND THE COASTAL
SAN LUIS RESOURCE CONSERVATION DISTRICT FOR THE
CORBETT CANYON FLOODPLAIN AND STREAM RESTORATION
PROJECT
NOVEMBER 13, 2012
RECOMMENDATION:
It is recommended that the City Council approve a Memorandum of Understanding
(MOU) between the Coastal San Luis Resource Conservation District (RCD) and the
City of Arroyo Grande (City) for design and implementation of the Corbett Canyon
Floodplain and Stream Restoration Project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City has programmed funds in the amount of $45,767 in the City's annual budget
for the purpose of funding projects that meet the requirement for creek protection and
water quality restoration work (budget item 5778, Creek Preservation/Creek Ivy
removal). The City's share of the project cost is $70,000 cash and $14,000 of staff time
valued at $84,000 consistent with the RCD grant application submittal to the
Department of Water Resources (DWR). Funds will be dispersed as work performed is
invoiced and will be funded over time from the 2012 and 2013 budgets. The remainder
of the balance owed will be paid from funding in next year's budget and/or an increase
in credit for staff time.
BACKGROUND:
The project site was identified in the 2006 "Arroyo Grande Creek Erosion,
Sedimentation and Flooding Alternatives Study" as a priority site for potential floodplain
restoration and sediment retention to remedy existing and predicted problems
concerning flood control and environmental degradation within the Arroyo Grande Creek
Watershed, particularly within and downstream of our City.
Establishing a conservation easement on a portion of the 15-acre site (Clark property)
within the City of Arroyo Grande to reduce peak flows and chronic fine sediment loading
at the confluence of Tally He/Corbett Canyon and Carpenter Canyon Creeks will be
designed to achieve multiple objectives:
Item 8.i. - Page 1
CITY COUNCIL
CONSIDERATION OF MOU WITH RCD
NOVEMBER 13, 2012
• Flood protection: floodplain restoration would allow this site to detain peak flows
and fine sediment before they reach the mainstem of Arroyo Grande Creek,
thereby reducing stress on lower Arroyo Grande Creek where inadequate levees
threaten valuable farmland and adjacent urban areas with flooding.
• Restoration of riparian and floodplain habitat: the proposed project would also
have the benefit of restoring riparian and floodplain habitat within the Arroyo
Grande Creek watershed, a resource that has been impacted by channelization
and encroachment over the last 150 years.
• Water quality protection: this project would improve and protect Arroyo Grande
Creek water quality through sediment detention, and by increasing flood
protection for the South San Luis Obispo Sanitation Plant. The South SLO
Sanitation Plant is located immediately adjacent to the AG Creek flood control
channel, and a levee breach (such as in 2001) or overtopping event could
compromise operations at the Sanitation Plant. This project would help reduce
peak flows in the AG Creek flood control channel by restoring Corbett Creek's
access to the historic floodplain.
Additionally, restoring the impaired stretch of TallyHo Creek will reduce future sediment
loads to mainstem Arroyo Grande Creek, thereby protecting Central Coast steelhead
spawning habitat, as well as improving flood protection to residents adjacent to TallyHo
Creek and to landowners in the Zone 1/1A Flood Control District at the downstream end
of AG Creek. The Tally Ho project consists of arresting a large headcut (approximately
4 feet high) that is progressively moving upstream, exacerbating bank erosion, and
contributing to fine sediment deposition in the mainstem of AG Creek. The project
design will include regrading of the headcut, installation of a series of grade controls,
and revegetation of the site to stabilize the headcut and prevent further movement
upstream and consequent release of sediment. The channel is approximately 15 feet
wide. The expected reduction in sediment delivery downstream due to remediation is
expected to be approximately 250 cubic yards of material over a ten year period.
In 2007, the City received a Civil Liability Complaint Notice from the California Regional
Water Quality Control Board that a violation in the form of a sewage spill had occurred
in Arroyo Grande Creek, and the City was required to make restitution by expending
$60,000 on supplemental environmental projects (SEP) within the City's jurisdiction.
In partial response to the requirement, the City partnered with the RCD by providing
$19,000 in initial funds toward an SEP, and later $42,000 to perform preliminary studies
of the Clark property at Highway 227 and Corbett Canyon and studies of the Tally Ho
creek. Subsequently, the City also participated with the RCD in a grant application to
the Department of Water Resources for the Urban Streams Restoration Program that
would provide funds for implementation of the Clark floodplain project and provide funds
for design of a headcut project within the creek. Other partners in the grant application
included Central Coast Salmon Enhancement, California Coastal Conservancy, and
Item 8.i. - Page 2
CITY COUNCIL
CONSIDERATION OF MOU WITH RCD
NOVEMBER 13, 2012
land owner Mr. Michael Clark. The grant for $831,420 was recently awarded to RCD by
the DWR and part of the grant agreement is the City's delivery of funds and staff time.
The RCD will provide the administrative services for the project which includes
contracting the services of subconsultants to provide design plans and reports. The
City's role is to provide funds to RCD for the subconsultant services and to provide
some staff time for project review.
ANALYSIS OF ISSUES:
The City has already expended significant funds toward the design of the floodplain
project at the confluence of TallyHo/Corbett Canyon and Carpenter Canyon creeks and
for survey of the headcut project on Talley Ho Creek, yet until implementation occurs,
the project benefits will not exist. The main project objectives are important health and
safety issues designed to alleviate flooding on Tally Ho/Corbett Canyon Creek and
reduce stress on the lower Arroyo Grande Creek, with the added benefit of restoring
riparian and floodplain habitat. Staff believes these projects will take a significant step in
improving management of the watershed and water quality, and are needed to improve
and correct existing deficiencies.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve the MOU;
2. Do not approve the MOU; or
3. Provide direction to staff.
ADVANTAGES:
Approval of the MOU will allow the Community Development Director to approve
disbursement of City funds for use by the RCD to pay for services rendered by project
subconsultants.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
None required for allocation of funds.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of City Hall on Thursday, November 8, 2012. The
Agenda and report were posted on the City's website on Friday, November 9, 2012. No
public comments were received.
Attachment:
1. Project Area exhibit
Item 8.i. - Page 3
MEMORANDUM OF UNDERSTANDING
BY AND BETWEEN THE COASTAL SAN LUIS RESOURCE CONSERVATION DISTRICT
AND THE CITY OF ARROYO GRANDE REGARDING THE CORBETT CREEK
FLOODPLAIN AND STREAM RESTORATION PROJECT
This Memorandum of Understanding ("MOU") is entered into by and between the Coastal San Luis
Resource Conservation District ("RCD"), a special district of the State of California and the City of
Arroyo Grande ("CITY"), a California municipal corporation, (collectively the "Parties") with
reference to the following Recitals:
RECITALS
A. In 2007, CITY received a civil liability complaint from the California Regional Water Quality
Control Board relating to a sewage spill that occurred in or near Arroyo Grande Creek. The CITY
was required to make restitution by expending $60,000 on supplemental environmental projects
(SEP) within the CITY.
B. In response to the civil liability complaint, the CITY funded two separate SEPs: (a) an SEP to
retrofit the City Hall parking lot to include a landscaped bioswale and drainage filtration
(approximately $41,000) and (b) an SEP to combat increased runoff and sedimentation in Corbett
Canyon Creek (approximately $19,000).
C. The CITY subsequently expended an additional $42,000 (over and above the restitution
obligation) to perform a preliminary field survey, biological surveys and design for an expanded
Corbett Canyon Creek project ("Corbett Creek Floodplain and Stream Restoration Project" or
"Project").
D. Recently, the CITY participated with the RCD in a grant application to the Department of Water
Resources ("DWR") for the Urban Streams Restoration Program, which would provide funds for
implementation of the Corbett Creek Floodplain and Stream Restoration Project.
E. The CITY has agreed to provide $70,000 cash and $14,000 of in-kind staff time toward the
Project.
F. The DWR recently conditionally awarded a grant to the RCD in an amount not to exceed
$831 ,420 to fund the Corbett Creek Floodplain and Stream Restoration Project. The grant is
conditioned on, among other things, the DWR and RCD entering into a grant agreement. The
DWR and RCD are in the process of finalizing that certain Grant Agreement No. 4600009865.
The Grant Agreement identifies the RCD as the project sponsor and the CITY as a program
partner. Other programs partners are creek-side landowners, Central Coast Salmon Enhancement,
the State Coastal Conservancy and the Natural Resource Conservation Service.
G. As the Grant Agreement only generally sets forth the respective obligations of the RCD and
CITY, the purpose of this MOU is to more clearly define the tasks and roles of each Party as to
the other consistent with the Grant Agreement.
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Item 8.i. - Page 4
H. The Parties agree that performance of the Corbett Creek Floodplain and Stream Restoration
Project in the City of Arroyo Grande provides a public benefit. Specifically, implementation of
the Project will alleviate flooding on Corbett Canyon Creek and reduce stress on the lower
portion of Arroyo Grande Creek. The Project will also restore riparian and floodplain habitat.
NOW, THEREFORE, the Parties agree as follows:
1. CITY Contribution:
CITY agrees to provide $70,000 cash and $14,000 of in-kind staff time toward the Corbett
Creek Floodplain and Stream Restoration Project in the manner set forth in this MOU.
2. Project Administration:
RCD will perform all Project administration such as invoicing, expense and travel
reporting, tracking overhead, quarterly and final progress reports throughout the grant
contract. RCD's obligation shall specifically include grant management to revise the scope
of work as needed and administration of additional contractual documents, including
contracts with the DWR and subcontractors.
3. Easement Acquisition for Clark Property:
a) RCD will use its best efforts to obtain a conservation/flood easement for the
approximately 12.5 acres of property specifically identified in the Grant Agreement as the
Clark Property ("Conservation Easement Property"), with stream access restored to 10
acres of historic floodplain to attenuate peak storm flows and thereby increase flood
protection to urban and agricultural areas downstream ("Conservation Easement").
b) CITY will reimburse RCD, in an amount not to exceed $12,000, for the costs RCD incurs
in obtaining an appraisal, purchasing title reports and preparing, processing and recording
the Conservation Easement in accordance with the requirements set forth in the Grant
Agreement.
c) CITY will provide in-kind staff time to work with RCD to develop a Maintenance Trust
to manage the removal of increased sediment within the Conservation Easement Property
and other maintenance tasks associated with the Conservation Easement.
4. Design Floodplain/Sediment Detention and Long-term Management Plan:
a) CITY will provide in-kind staff time to attend two (2) meetings to review the engineering
designs with necessary permitting agencies and partners and receive comment.
b) CITY will work with RCD to develop a long-term management plan to support periodic
sediment removal in order to maintain the Project's usefulness for sediment capture and
revegetation of grassland areas.
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Item 8.i. - Page 5
5. Design Stream Restoration Plan:
a) CITY will provide funds necessary, not to exceed $25,000, to RCD for the preparation
of 50% design plans for a channel restoration project along 4,200 feet of stream
(immediately downstream of the Conservation Easement Property) to restore the
channel geometry, thereby increasing flow volumes. CITY engineering staff will attend
two (2) meetings to review the designs with necessary permitting agencies and partners
and receive comment.
b) RCD will coordinate access agreements and outreach to multiple landowners on the
Project trajectory.
6. Permitting and Environmental Compliance:
a) Permitting for Floodplain/Sediment Detention Basin.
(1) CITY will provide staff time necessary, not to exceed a $7,000 value, to review
permit applications and prepare California Environmental Quality Act ("CEQA")
documents. Permits include those required by the Department of Fish and Game,
Regional Water Quality Control Board, U.S. Army of Corps of Engineers, and the
CITY. The CITY will prepare a Negative Declaration or a Mitigated Negative
Declaration based on the existing initial study and 100% designs of the floodplain
project.
b) Permitting for Stream Restoration.
(1) CITY will provide the staff time necessary, not to exceed a $7,000 value, to prepare
an initial study to determine what CEQA documents may be required for the stream
restoration project.
(2) CITY will provide up to $33,000 in cash to cover the costs to write and submit
permits and environmental compliance documents beyond the initial study subject
to the option set forth below. RCD will complete permit applications and lead the
permit conversations with the various responsible agencies. RCD will complete the
CEQA documents after the initial study is performed. The CITY may, at its option,
decide to prepare the needed CEQA documents as an in-kind match and advise
RCD in writing if it intends to do so.
7. General Provisions of this MOU:
a) The Parties recognize that grant disbursement is subject to fund availability and
potential withholding by the State. In the event that the grant is not disbursed, the
Parties are excused from the performance of this MOU except as set forth herein.
b) CITY agrees to provide any information necessary for RCD to establish compliance
with the terms set forth in the Grant Agreement.
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Item 8.i. - Page 6
c) CITY agrees to perform all work set forth in this MOU in accordance with the
requirements and standards set forth in the Grant Agreement and applicable
provisions of the law.
d) All coordination, assistance, and services rendered under this MOU will be carried
out in compliance with the objectives, roles and responsibilities of the Parties.
e) The Parties will exchange information and consult with each other before
implementing the provisions hereof that may affect the ability of the other party to
perform under this MOU.
f) The Parties acknowledge that this MOU must be implemented through a complex
series of steps that include several governmental approvals requiring compliance
with the CEQA. Notwithstanding the obligations of CITY set forth in Paragraph 6
above, RCD shall be identified as the Lead Agency with respect to CEQA for all
environmental issues related to all actions described in this MOU.
8. Roles and Responsibilities:
The Parties shall each designate in wntmg a single point of contact to ensure their
respective responsibilities are satisfied. All future correspondence regarding this MOU and
the rights and responsibilities hereunder shall be directed to the designated single points of
contact.
9. Effective Date, Termination and Modification:
This MOU will become effective when executed by the Parties. This MOU may terminate
by the mutual written consent of the Parties or by operation of law. This MOU may be
amended by written instrument executed by the Parties.
10. Mutual Indemnification:
Each party shall, to the fullest extent permitted by law, indemnify, defend and hold the
other party harmless against any and all costs, expenses, losses, claims, suits, damages, and
liabilities (including reasonable attorney's fees) for acts or omissions arising out of or in
connection with their respective acts or omissions performed under this MOU.
11///////II/INOTHING FURTHER BEYOND THIS POINT EXCEPT SIGNATURES///////////
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Item 8.i. - Page 7
IN WITNESS WHEREOF, the parties hereto have executed this MOU effective upon the date
of last signature below.
COASTAL SAN LUIS RESOURCE
CONSERVATION DISTRICT:
By: ------------------------Neil Havlik, President
Date: ----------------------
ATTEST:
APPROVED AS TO FORM AND
LEGAL EFFECT:
Erica A. Stuckey, Deputy County Counsel
Date: ------------------------
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CITY OF ARROYO GRANDE:
By: ------------------------Tony Ferrara, Mayor
Date: ---------------------
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
Timothy J. Carmel, City Attorney
Date: ____________________ _
APPROVED AS TO CONTENT:
Steven Adams, City Manager
Date: ---------------------
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ATTACHMENT 1
APN 007-791-032 (Aerial) Scale = 1 :500
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