FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
8.	CONSIDER ADOPTION OF Initial Study/Mitigated Negative Declaration for Los Padres Dam Outlet modifications Project INCLUDING ADOPTION OF CEQA FINDINGS AND MITIGATION MEASURES
Meeting Date:			August 14, 2023	Budgeted:	N/A
From:			David A. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Staff Contact:			Maureen Hamilton	Cost Estimate:	N/A
General Counsel Approval: Yes.
Committee Recommendation: The Finance and Administration Committee reviewed this item on August 14, 2023 and recommended ______________________.
CEQA Compliance: Notice of Determination; Adoption of Mitigated Negative Declaration (MND), Findings of Approval, and a Mitigation Monitoring Plan.

SUMMARY: The Monterey Peninsula Water Management District (MPWMD) is acting as Lead Agency for California American Water’s (Cal-Am) proposed Los Padres Dam Outlet Modifications Project (Project) in compliance with the California Environmental Quality Act (CEQA). The proposed Project will restore functionality of the Los Padres Dam (LPD) outlet which was negatively impacted by multiple landslides. Project benefits include:

• Reliable water supply to fish passage facilities
• Reliable water supply for instream aquatic organisms
• Ability to meet California Department of Water Resources Division of Safety of Dams (CA-DWR DSOD) requirements for timely evacuation of the reservoir during an emergency

The proposed Project consists of relocating the upstream entrance to the LPD outlet away from the slide area, replacing emergency outlet valves, and installing associated new pipeline.

Staff prepared an Initial Study (IS) and determined that a Mitigated Negative Declaration (MND) is appropriate pursuant to California Public Resources Code (PRC) Section 21080.

The following documents are provided for the Board of Director’s consideration:

1. Draft-Final Initial Study/Mitigated Negative Declaration (IS/MND), Exhibit 8-A

2. Mitigation Monitoring and Reporting Program (MMRP), Exhibit 8-B

3. Comments and Responses, Exhibit 8-C

4. Draft Findings, Exhibit 8-D

5. Resolution 2023-12, Exhibit 8-E

RECOMMENDATION: Recommend that the Board of Directors take the following actions:

1) Address additional written or oral comments received at the Public Hearing

2) Adopt CEQA Findings

3) Adopt Resolution 2023-12; adopting the IS/MND and MMRP, and approving the Project

4) Direct staff to prepare and file a Notice of Determination of approval of the Los Padres Dam Outlet Modifications Project

BACKGROUND: The LPD is owned and operated by the Project proponent, Cal-Am. Cal-Am, MPWMD, the National Marine Fisheries Service, and the California Department of Fish and Wildlife (CDFW) meet regularly to agree upon the flow rate that needs to be released from Los Padres Reservoir in support of aquatic species downstream.

A fully functioning outlet is required to provide the following:

• Reliable water supply to the LPD fish passage facilities in compliance with state and federal fish passage obligations critical to restoration and recovery of the Core 1 fish population within the Carmel River
• Reliable water supply to maintain instream flow conditions and sustain existing aquatic organisms during the summer and fall months in compliance with State Water Resources Control Board license requirements and additional state mandates through the Regional Water Quality Control Board
• Ability to meet California Department of Water Resources Division of Safety of Dams (CA-DWR DSOD) requirements for timely evacuation of the reservoir during an emergency

In 2018, 2019, and 2020 landslides adjacent to Los Padres Reservoir covered the existing lower outlet with debris, reducing the outlet’s reliability and capacity. Despite Cal-Am’s attempts to clear the blockage, the lower outlet’s capacity remains diminished. A pump powered by a fuel generator must run to achieve the required flow release during the dry season. Additionally, there is a threat that future landslides could further negatively impact the existing outlet.

Cal-Am is proposing a Project to restore the LPD outlet functionality. The proposed Project includes the following:

1) Site preparation and access improvements

2) Relocation of the upstream entrance

3) Replacement of emergency outlet valves

4) Installation and connection of new pipeline to existing pipeline

5) Site restoration and demobilization

Cal-Am approached both CDFW and CA-DWR DSOD with requests to be the Lead Agency in complying with CEQA requirements. Both agencies declined the request. Subsequently, Cal Am asked MPWMD, a local agency with permitting authority for work in the Carmel River, to act as Lead Agency. The Board of Directors authorized MPWMD to act as Lead Agency for the proposed Project at the November 14, 2022 Board of Directors Meeting.

MPWMD staff prepared an Initial Study Environmental Checklist and determined that a MND should be prepared pursuant to PRC Section 21080.

Pursuant to PRC Section 21080.3.1 regarding the potential for the proposed Project to impact Tribal Cultural Resources, MPWMD staff sent formal letters to the Ohlone/Costanoan-Esselen Nation and the Indian Canyon Mutsun Band of Costanoan inviting them to consult on the proposed Project. MPWMD staff followed-up the formal invitation letters with a phone call and email to each group. No response was received.

HDR Engineering, Inc. (HDR) assisted with the preparation of environmental studies and the Draft IS/MND. MPWMD staff met with Cal-Am and HDR regularly and reviewed several versions of the IS/MND before approving the Draft-Final version in May of 2023. Proposed mitigation measures, Exhibit 8-B, reduce potentially significant impacts to less than significant impacts.

MPWMD sent a Notice of Completion and Environmental Document Transmittal to the State Clearinghouse on June 6, 2023. The State Clearinghouse set the public review period from June 8, 2023 to July 7, 2023; MPWMD advertised the public review period was from June 8, 2023 to July 9, 2023 and accepted comments until July 9, 2023. MPWMD delivered a Notice of Public Review and Intent to Adopt a Mitigated Negative Declaration (Notice) to the County of Monterey on June 6, 2023, pursuant to PRC Section 21092. The Notice was mailed to contiguous property owners, published for circulation in the Monterey County Weekly, posted at the MPWMD office and website, posted at the publicly accessible job site entrance gate, and posted in the nearest community of Cachagua on June 8, 2023.

MPWMD received written comments from CDFW, Exhibit 8-C. MPWMD provided written responses to CDFW comments and notified them of the Public Hearing. The MMRP, Exhibit 8-B, was updated to reflect the written responses to CDFW. No substantive changes were made to the Draft-Final IS/MND as a result of the comments.

CEQA Findings, Exhibit 8-D, were prepared to comply with PRC Section 21081.

Next Steps

Pursuant to California Code of Regulations Title 14 §15074:

The decision making body shall adopt the proposed negative declaration or mitigated negative declaration only if it finds on the basis of the whole record before it (including the initial study and any comments received), that there is no substantial evidence that the project will have a significant effect on the environment and that the negative declaration or mitigated negative declaration reflects the lead agency's independent judgment and analysis.

The Final IS/MND will include revisions as directed by the MPWMD Board of Directors. If the Board of Directors adopts the Resolution approving the Project, a Notice of Determination will be filed concerning the Board of Directors’ decision.

Approval of the Project and adoption of the IS/MND will allow MPWMD to issue a River Work Permit for the Project and Cal-Am to move forward with other permit applications to build the Project. Other permitting entities may use the adopted IS/MND in their decisions about issuing authorizations to carry out the Project. These entities include the following:

· U.S. Army may use portions of the adopted IS/MND to facilitate a project review and issue a Corps permit for work in the Carmel River.

· U.S. Fish and Wildlife Service may use portions of the adopted IS/MND to facilitate a project review and issue a biological opinion about impacts to California Red-legged frogs from work in the Carmel River.

· CDFW can rely on the IS/MND to issue a Stream Alteration Agreement for work in the Carmel River.

· Regional Water Quality Control Board can rely on the IS/MND to issue a 401 Water Quality Certification for work in the Carmel River.

· Monterey County can rely on the IS/MND to issue a Use Permit and grading permit to construct the Project.

Project construction is anticipated to begin in late 2023 with completion in 2024. Construction may be phased depending on the actual start date and conditions at the reservoir and in the river downstream of the dam.

EXHIBITS

8-A Draft-Final Initial Study/Mitigated Negative Declaration

8-B Mitigation Monitoring and Reporting Plan

8-C Responses to Comments

8-D CEQA Findings

8-E Draft Resolution 2023-12 Adopting the Final IS/MND and MMRP, and Approving the

Project

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