Agenda Item AGENDA STAFF REPORT ASR Control 11-001404
MEETING DATE:	12/13/11
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Rick LeFeuvre (714) 955-0124
	Michael Balsamo (714) 667-8854

Subject: Khalda Development

ceo Concur	County Counsel Review		Clerk of the Board
Concur	Approved Resolution(s) and Ordinance(s)		Public Hearing
			3 Votes Board Majority
Budgeted: N/A		Current Year Cost: N/A		Annual Cost: N/A
Staffing Impact: No		# of Positions:		Sole Source: N/A
Current Fiscal Year Revenue: N/A
Funding Source: N/A
Prior Board Action: N/A

RECOMMENDED ACTION(S):

1.	Conduct public hearing.
2.	Adopt Findings and Facts in Support of Findings for Supplemental EIR No. 608 to Final EIR 401.
3.	Adopt Mitigation Monitoring and Reporting Program for Supplemental EIR No. 608 for the Coto de Caza Estates, Khalda Development Project (Specific Plan Amendment, Area Plan, and Grant of Easement Amendment).
4.	Adopt Resolution certifying Supplemental EIR No. 608.
5.	Read the title of the Ordinance amending the Coto de Caza Specific Plan to amend Exhibits 3, 6, and 7 of the Specific Plan.
6.	Waive further reading of the Ordinance.
7.	Consider the matter and adopt the Ordinance.
8.	Read the title of the Resolution amending the Grant of Easement.
9.	Waive further reading of the Resolution.
10.	Consider the matter and adopt the Resolution.
11.	Approve Planning Application PA090036 for a Specific Plan Amendment, Area Plan, and Amendment to an existing Grant of Easement subject to the Findings and Conditions of Approval provided as Exhibit 1 to this Agenda Staff Report.

SUMMARY:

Adoption of the findings, program, resolutions, and ordinance will support development of seven rural residential estate lots and increase the acreage commitment to habitat preservation within Planning Area 10 of the Coto de Caza Specific Plan.

BACKGROUND INFORMATION:

The proposed project consists of subdividing the applicant’s 126.5-acre parcel located within Planning Area 10 in Coto de Caza into six open space lots and seven rural residential estate lots. An access road and utilities to serve the estate lots are also proposed to be extended from Van Gogh Way off-site and west of the property to the proposed rural residential estate lots.

Building pads within each estate lot would be created as part of the rough grading permit process that will follow recordation of the Tract Map. Completion of the homes and appurtenant facilities would occur either simultaneously or incrementally on a lot-by-lot basis, dependent upon market demands, and will require compliance with the CZ Master Association’s Conditions, Covenants, and Restrictions (CC&Rs). Mitigation to offset habitat losses resulting from the construction of the access road, building pads; and anticipated future fuel modification/brush management areas surrounding each home site will occur within designated areas of open space lots that will be created during the subdivision/tract map process.

On May 5, 2011, the U.S. Fish & Wildlife Service approved a Minor Amendment that removed approximately 14 acres of the subject project site out of the Habitat Reserve and replaced the land removed from the Habitat Reserve by enrolling a 68-acre parcel (located north of the project site) that the County acquired from Coto de Caza, Ltd. Additionally, the applicant committed to allow the County to enroll approximately 112.5 acres of the remaining undeveloped subject project site into the Habitat Reserve. Of the 112.5 acres that will be enrolled into the Habitat Reserve, a total of approximately 46 acres of coastal sage scrub will be dedicated within the open space area of the subject project site. For additional information, please refer to the Planning Commission Staff Report (Exhibit B)

On July 13, 2011, the Coto de Caza Estates, Khalda Development Project was presented to the Orange County Planning Commission, at which time the Planning Commission adopted Resolution No. 11-01, recommending that your Board of Supervisors approve and certify Final Supplemental EIR No. 608 to Final EIR 401 and approve Planning Application PA090036 filed by Khalda Development, Inc. The Planning Commission recommended revisions to Mitigation Measures 4.3-4c and 4.3-4d to reflect the Planning Commission's direction to ensure adequate landscape screening is included in the Conditions of Approval. The Findings and Conditions of Approval associated with the project site are included as Exhibit A.

Issues discussed at the July 13, 2011 Planning Commission hearing included public noticing; visual impacts for the project; landscaping and adequate screening; and also potential lead contamination of the site due to previous use of the site as a skeet shooting range. A summary of these four issues is provided below.

1. Public Noticing - Prior to the Planning Commission hearing, public hearing notices were posted at two public places in the County (the lobbies of the Osborne building and the County Hall of Administration), mailed out to 12 property owners located within 300 feet of the project site, and published in the OC Register on Saturday, July 2, 2011, consistent with public notice requirements identified in Zoning Code Section 7-9-150.3(c)(2). The total number of property owners that were notified was low due to the remote location of the project from existing Coto de Caza residences.

The Commission inquired about any meetings that the Coto de Caza CZ Master Association may have held to discuss this project proposal. A Board member of CZ Master Association was present at the meeting and informed the Planning Commission that this project was on the agenda for past Association meetings, but that the Association does not have a specific process for notifying their members. The CZ Master Association provided a letter in support of the proposed development. It is contained in Exhibit B of this report and is Attachment 7 to the Planning Commission Staff Report. The applicant informed the Planning Commission that the applicant and agent conducted their own outreach meetings outside of the Association meetings.

The Planning Commission also requested that, in addition to the public notice requirements identified in Zoning Code Section 7-9-150.3(c)(2), prior to the Board hearing, public hearing notices be mailed out to all residents within Planning Area 10 of the Coto de Caza Specific Plan to ensure that more community residents are aware of this project proposal. On November 23, 2011, OC Planning mailed public hearing notices to all 188 property owners, the three home owner associations in Coto de Caza, and posted the public hearing notice at the project site, OC Public Works Osborne Building, and County Hall of Administration. A public hearing notice was also published in the OC Register on November 30, 2011. As of the submittal of this report, one additional response opposing the project has been received.

2. Visual Impacts - One resident whose property is at the end of Atherton Drive and is approximately 600 to 700 feet from proposed Lot 6 of the project, along the south-westerly boundary of the project site expressed concern about the visual impact of the project on her property. View simulations from different vantage points are provided within SEIR Section 4.5, Aesthetics. The Planning Commission requested that an additional view simulation be prepared from the resident's property or from the public area adjacent to her property prior to the Board hearing. The additional requested view simulations were subsequently developed and are provided as Exhibit K of this staff report.

3. Landscaping - The Planning Commission inquired about landscaping requirements and wanted to know what measures have been incorporated to ensure adequate screening. Condition of Approval No. 16 requires the Van Gogh entryway to the project site to be improved, landscaped, and equipped with irrigation. The Planning Commission was focused primarily on the potential view impact from Atherton Drive, which is located west of the southerly portion of the project site. Additionally, Mitigation Measures 4.3-4c and 4.3-4d, included as Condition of Approval No. 23, also require approval of a Landscape Plan that incorporates special edge treatments to separate development areas from open space areas and requires future residents select from a list of native landscaping materials that will be permitted within the project site. The Planning Commission requested that the Mitigation Measures be modified to state that future residents shall be responsible for preparing landscape plans that incorporate adequate screening for submittal to OC Planning for review and approval.

Subsequently, Condition of Approval No. 22 has been modified to explicitly state that a Conceptual Landscape Plan shall be required as part of the future individual lot Administrative Site Development Permit process.

4. Potential Lead Contamination – During the Planning Commission hearing and in a letter submitted by an attorney representing a Coto de Caza resident off Atherton Drive, a question was raised about potential lead contamination on the project site due to previous use of the southerly portion of the project site for a skeet shooting range. In response, the applicant retained a consultant to prepare follow-up site assessment reports. A Phase I Environmental Site Assessment and a Phase II Environmental Site Assessment and Remedial Action Plan were subsequently prepared, please see Exhibits L and M, respectively.

The Phase I assessment report concluded that there are potential environmental impacts from the previous use of the property as a shooting range.  It recommends following the Department of Toxic Substance Control’s recommended guidelines using the Army Corps of Engineer’s sampling method for shooting ranges, performing a background lead study at the site, and evaluating the risk to human health and the environment to determine if any potential lead contamination is within acceptable limits. The Phase II assessment report was conducted based upon the recommendation of the Phase I report.

The soil samples collected during the Phase II assessment indicate that there is soil containing Polycyclic Aromatic Hydrocarbon ("PAH"), a bi-product of the clay targets, and some lead, limited to some “hot spot areas” located along the southerly portion of the project site. The PAH concentration is limited to the surficial soils in the “hot spot areas” along a band measuring 50 feet wide and 300 feet long with portions over where proposed residential Lots 6 and 7 are located. The only on-site elevated lead concentration detected was in a sample that falls in the same area as the PAH detected area. The report suggested that any approved mitigation shall be conducted during grading activity. The report also includes a Remedial Action Plan that will be overseen by OC Health Care Agency.

Staff reviewed the additional information that was presented by a question raised during the Planning Commission hearing about potential lead contamination and the two additional studies conducted and determined that recirculation of the Supplemental EIR is not required or necessary. An additional response to comment was incorporated into the Final Supplemental EIR. The response discusses the conclusions of the Phase II Environmental Site Assessment as well as an analysis of why recirculation of the Supplemental EIR is not required.

To facilitate the removal of clay target debris and soil with PAH and lead concentrations during the grading activity, a new recommended Condition of Approval has been subsequently added to ensure that there is proper coordination with OC Health Care Agency for the remedial action plan during grading activity. This new Condition of Approval will also ensure that remedial activities occur prior to completion of construction. Recommended Condition of Approval No. 23 states: Prior to issuance of any grading permit, the applicant/property owner shall obtain an approved Remedial Action Plan from OC Health Care Agency, which will require removal of all the clay target debris from the surface of the hot spot areas. The clay debris shall be collected and transported to a County of Orange approved landfill. A copy of the approved Remedial Action Plan shall be provided to OC Planning and OC Inspection.

Approval of the Planning Application with the revised Findings and Conditions of Approval for the project as identified in Exhibit A is recommended for approval by your Board.

Compliance with CEQA:

Supplemental Environmental Impact Report No. 608, SCH No. 2010061063, has been prepared and circulated for public review. The Draft Supplemental EIR was posted for public review and comment from June 7, 2010 to July 6, 2010. After public comments were received on the Draft SEIR, responses to comments were prepared to respond to the six comment letters received during the public review period.

The public comments and responses to comments were distributed to commenting parties on June 23, 2011. On June 28, 2011, the Final Supplemental EIR was posted for public review on the County website and distributed to the Planning Commission. On July 13, 2011 the Planning Commission recommended that your Board approve and certify the Final Supplemental EIR. The EIR is included as Exhibit I of this Agenda Staff Report and contains all of the elements required by CEQA. It is attached for your consideration and must be certified prior to any action to approve the project. The Resolution is provided as Exhibit F which will certify the Project Supplemental EIR and satisfy the requirements of CEQA. Findings related specifically to the EIR are included as Exhibit D, which should be adopted to demonstrate the analytical path followed by the Board in approving the Project if it does so.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

EXHIBIT(S):

Exhibit A - Findings & Conditions of Approval
Exhibit B - Planning Commission Staff Report dated July 13, 2011
Exhibit C - Planning Commission Approved Minutes from July 13, 2011
Exhibit D - Findings and Facts in Support of Findings for Supplemental EIR No. 608
Exhibit E - Mitigation and Monitoring Report Program
Exhibit F - Resolution for Supplemental EIR No. 608
Exhibit G - Ordinance for Specific Plan Amendment
Exhibit H - Resolution for Grant of Easement Amendment
Exhibit I - Supplemental EIR No. 608
Exhibit J - Comment Letter from Mr. Steven A. Ehrlich
Exhibit K - Additional Photo Simulations
Exhibit L - Phase I Environmental Site Assessment
Exhibit M - Phase II Environmental Site Assessment

ATTACHMENT(S):

Attachment A - Planning Commission Adopted Resolution 11-01
Attachment B - Existing Grant of Easement