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Agenda Item
ASR
Control 23-000867 |
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MEETING
DATE: |
12/19/23 |
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legal entity taking action: |
Orange
County Flood Control District |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
OC
Public Works (Approved) |
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Department contact person(s): |
Nardy
Khan (714) 647-3906 |
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Giles
Matthews (714) 647-3933 |
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Subject: Approve Soquel Canyon Mitigation
Bank Credit Reservation for Various Projects
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Consent
Calendar |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $750,000 |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 1/24/2023 #8, 6/28/2016 #36, 6/23/2015
#66, 5/21/2013 #45 |
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RECOMMENDED
ACTION(S):
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1. |
Approve the
Agreement for Reservation of Credits with Land Veritas Corp. for various
projects completed under the Countywide Long Term Maintenance Permit in an
amount not to exceed $750,000, upon fully executed agreement. |
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2. |
Authorize the
Director of OC Public Works or designee to execute Purchase Agreements
between the Orange County Flood Control District and Land Veritas Corp. to
purchase the reserved credits so long as the total sum does not exceed
$750,000. |
SUMMARY:
Approval of the Agreement for
Reservation of Credits with Land Veritas Corp. will secure mitigation credits
at the Soquel Canyon Mitigation Bank at a favorable price point and will help
meet the goal of increased flood protection to residences and businesses in
Orange County.
BACKGROUND
INFORMATION:
Sections 401 and 404 of the Federal Clean
Water Act, administered by the U.S. Army Corps Engineers (USACE), the Porter
Cologne Act, administered by the Regional Water Quality Control Board, and
Section 1602 of the California Fish and Game Code, administered by the
California Department of Fish and Wildlife (CDFW), require the Orange County
Flood Control District (District) to compensate for permanent impacts to Waters
of the U.S. and Waters of the State of California (also known as jurisdictional
waters). Compensatory mitigation can be accomplished by either purchasing
credits from an approved mitigation bank or by conducting permittee responsible
compensatory mitigation project(s). Permittee responsible compensatory
mitigation requires identifying land to conduct restoration, typically, five
years of monitoring and reporting and in perpetuity maintenance. In most cases,
this option is more expensive than purchasing credits from an approved
mitigation bank. OC Public Works makes an effort to modify a project, when
possible, to reduce or eliminate the requirement for compensatory mitigation
when planning for flood control projects.
The Soquel Canyon Mitigation Bank (Bank),
owned by Land Veritas Corp. (Veritas), is the only mitigation bank available to
Orange County that is approved by the USACE, the Santa Ana Regional Water
Quality Control Board and the CDFW. The Bank utilizes a tiered pricing model
for various credits based on the type of habitat and impact they are approved
to mitigate for, with a limited number of credits available at each price
point. Attachment A contains information regarding the Bank, located in Chino
Hills in San Bernardino County.
The Bank currently has a small number of
mitigation credits available at a price of $250,000 per acre. Additional
credits are available at a higher price point. The Bank has agreed to structure
a Reservation of Credits Agreement MA-080-24010631 (Agreement) in the amount of
$750,000, which requires a $250,000 deposit, with additional credits available
for use with the Countywide Long Term Maintenance Permit (CLTMP) as needed.
There is no penalty beyond the initial $250,000 deposit if additional credits
are not purchased. Self-performance of mitigation requirements would be more
expensive than paying money to the Bank. Similarly, forgoing the reservation in
lieu of purchasing credits at a later date would require purchasing credits at
a higher price point.
There is an immediate need for the
purchase of mitigation credits in the amount of $250,000 as significant erosion
has been identified within the Atwood Channel east of the Miller Basin and west
of Jefferson Street in the City of Anaheim. This channelized flood control
drainage is designated as “E04” under the Countywide drainage identification
system. This erosion threatens the adjacent roadway and nearby infrastructure.
The Atwood Channel Rehabilitation Project (Project) will repair the identified
erosion and safeguard against future erosion.
The Project will provide protection to the
channel slope and prevent potential significant washouts that could undermine
structures of adjacent privately-owned properties. The Project will also
involve installation of rock rip rap along both banks of the channel to protect
against future erosion. Some portions of these discrete channel segments are
already partially or completely riprap lined.
The CLTMP and pending Section 404 permit
from USACE for the Project require the District to compensate for impacts to
Waters of the United States caused by the Project and the Bank is the only
mitigation bank that is accepted by USACE for this Project and for other CLTMP
activities.
Similar projects are conducted routinely
throughout the County of Orange (County) under the umbrella of the CLTMP. These
projects are conducted at a smaller scale and do not require individual
regulatory approval. Mitigation for these routine projects is tallied at the
end of the year and included in an annual report to the regulatory agencies.
The mitigation credit required for the term of the CLTMP is anticipated to cost
approximately $500,000.
Prior Board of Supervisors (Board) actions
regarding purchase agreements with Veritas are summarized in the table below.
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Board
Date |
Project |
Amount |
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6/23/2015 |
Compensatory mitigation to convert the
Greenville Banning Channel between California Avenue and I-405 from rock rip
rap to concrete. |
$253,750 |
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6/28/2016 |
Compensatory mitigation to construct a
concrete pad in front of the Villa Park Dam to facilitate maintenance. |
$170,000 |
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1/24/2023 |
Compensatory mitigation to convert the
Carbon Canyon Diversion Channel south of Orangethorpe Avenue and east of Miller
Bain from riprap to concrete. |
$500,000 |
The mitigation requirement for the Project
and CLTMP is higher than in all of the above, prior Board actions due to the
larger impacted area when compared to the previous projects.
OC Public Works recommends District
approval of the Agreement with Veritas for the Project for reservation of
$750,000 of mitigation credits in the current fiscal year. The District has
confirmed that the required credits are available for purchase upon District
approval. OC Public Works also recommends the District authorize the Director
of OC Public Works or designee, with concurrence of the Office of County
Counsel, to execute Purchase and Sale Agreements between the District and
Veritas for various projects completed under the CLTMP with the condition that
the total sum does not exceed $750,000.
Compliance
with CEQA: This Project is a
necessarily included element of the Project considered in Final Initial
Study/Mitigated Negative Declaration (IS/MND) IP No. 11-444 Countywide
Long-Term Routine Maintenance Permitting Program prepared for OC Public Works
and the District, previously approved by the Board on May 21, 2013, and the OC
Public Works OC Engineering Countywide Routine Maintenance Manual (October 2012)
included as part of IS/MND IP No. 11-444, which collectively adequately
addressed the effects of the proposed Project. No substantial changes have been
made in the Project, no substantial changes have occurred in the circumstances
under which the Project is being undertaken and no new information of
substantial importance to the Project, which was not known or could not have
been known when the Final IS/MND IP No. 11-444 was approved has become known;
therefore, no further environmental review is required.
FINANCIAL
IMPACT:
Appropriations for this Agreement
are included in Fund 400, OC Flood, FY 2023-24 Budget for Maintenance
Improvement Projects that require the payment of compensatory mitigation.
If the credits have not been
purchased by the closing date this Agreement shall terminate, the County shall
forfeit the deposit and the bank sponsor can sell the credits to another buyer.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Soquel Canyon Mitigation Bank Brochure
Attachment B - Agreement for Reservation of Credits MA-080-24010631 with Land
Veritas Corp
Attachment C - Sections 401 and 404 of the Clean Water Act
Attachment D - Section 1602 of the California Fish and Game Code