ORANGE COUNTY TRANSPORTATION AUTHORITY. Measure M2 Environmental Mitigation Program Update. Staff Report

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1 ORANGE COUNTY TRANSPORTATION AUTHORITY Measure M2 Environmental Mitigation Program Update Staff Report

2 January 4, 2016 To: From: Subject: Regional Planning and Highways Committee Darrell Johnson, Chief Executive Officer Measure M2 Environmental Mitigation Program Update Overview Measure M2 includes a program to deliver comprehensive mitigation for the environmental impacts of freeway projects in exchange for streamlined project approvals from the state and federal resources agencies. To date, the Environmental Mitigation Program has acquired a number of conservation properties and provided funding for habitat restoration projects. A status report on the release of the Trabuco and Silverado Canyons resource management plans and updates to a restoration project are presented. Recommendation Receive and file as an information item. Background Measure M2 (M2) includes an innovative Environmental Mitigation Program (EMP) where biological impacts from the M2 freeway projects are addressed through a comprehensive mitigation effort. This is achieved through the development of a Natural Community Conservation Plan/Habitat Conservation Plan (NCCP/HCP), with approval by the California Department of Fish and Wildlife, and the United States Fish and Wildlife Service. These agencies are collectively referred to as resources agencies. The Orange County Transportation Authority (OCTA) is also working with the Army Corps of Engineers and the State Water Resources Control Board to streamline the regulatory permitting process. The NCCP/HCP and associated draft environmental impact report/environmental impact statement (EIR/EIS) was released for public review from November 2014 through February The 90-day comment period afforded stakeholders and the public the opportunity to provide input on the process. The NCCP/HCP and associated EIR/EIS are expected to be finalized in early Orange County Transportation Authority 550 South Main Street / P.O. Box / Orange / California / (714) 560-OCTA (6282)

3 Measure M2 Environmental Mitigation Program Update Page 2 In May 2015, the Board of Directors (Board) considered the long-term funding strategies as the EMP moves forward. These strategies will guide future EMP expenditures to ensure consistency with the M2 Ordinance. Discussion Puma Coordination Meeting With Board direction, an inter-agency puma coordination meeting was convened in August Items discussed included the role of regulators, implementation efforts, potential funding mechanisms, and agency coordination in relation to connectivity issues for mountain lions. Dr. Winston Vickers of the University of California, Davis, gave a presentation on the Mountain Lions of Southern California Study. The study focused on the genetic relationships among populations, survival rates and causes of mortality, population trajectories, and potential solutions. The meeting included representatives from 14 local, state, and federal agencies. There was a consensus to develop a plan that focuses on connectivity between jurisdictions, outlines project costs, and identifies how the agencies can move forward with projects. Harriet Weider Restoration Project Update In May 2012, the Bolsa Chica Conservancy (BCC) received Board approval of $475,000 to fund the Harriet Weider Restoration Project. This will support the restoration of approximately eight acres of coastal sage scrub, grassland, and riparian habitat. It will also include the planting of a rare plant (southern tarplant), which is a mitigation commitment of the M2 NCCP/HCP. A status update was presented at the October 2015 Environmental Oversight Committee (EOC) meeting. The BCC has yet to initiate the project due to various challenges, such as approval from the California Coastal Commission, as well as a conservation easement to protect the restoration site in perpetuity. These requirements must be met before the resources agencies can approve the mitigation credit for the restoration work. Prior to the November 4, 2015 EOC meeting, a letter from OCTA was sent to the BCC outlining expectations for project delivery. Subsequently, the EOC requested that the BCC provide a list of key milestones for the project, along with an action plan to demonstrate how the milestones will be achieved. The EOC also requested that staff provide monthly status updates, and for the BCC to return to the EOC in three months with a project status update. In addition, staff was directed to include the refined milestone schedule in the OCTA/BCC restoration project agreement along with language that will allow OCTA to dissolve the agreement if crucial milestones are not met.

4 Measure M2 Environmental Mitigation Program Update Page 3 If the BCC is unable to meet the milestone schedule, the EOC directed staff to identify a new comparable habitat restoration project that includes the establishment of the southern tarplant. This will require additional outreach and coordination. Staff anticipates that opportunities exist within the Upper Newport Back Bay area or within other protected lands within Orange County. Trabuco and Silverado Canyons Resource Management Plans In conjunction with the preparation of the NCCP/HCP, Resource Management Plans (RMPs) are being developed for each of the conservation properties (Preserves). These plans outline management of the biological resources on the Preserves while considering complementary co-benefits, such as public access. The RMPs are not typically prepared until after the NCCP/HCP has been approved, and do not require public input. However, the Trabuco and Silverado Canyons RMPs are being prepared in parallel with the NCCP/HCP, with a public input process, since the public has a strong desire to gain access to the Preserves. It is important to note that the primary objective in acquiring the Preserves is to obtain mitigation in exchange for the construction of the M2 freeway projects. The resources agencies will approve the RMPs, including any access provision based on consistency with the NCCP/HCP. The RMPs provide guidelines for the management and monitoring of the Preserves in accordance with the goals and objectives detailed in the NCCP/HCP. Key components of the RMPs include guidance for ongoing protection, preservation, and adaptive management of the natural resources found within each Preserve. Fire prevention measures and recreational use of the site by the general public, if appropriate, are also addressed. Designated roads and trails (and uses) will be identified in each RMP. The RMPs for the OCTA Trabuco and Silverado Canyons Preserves were released on November 11, The release included the following OCTA Preserves: Ferber Ranch, Hafen, MacPherson, O Neill Oaks, and Saddle Creek South. These RMPs are available for public review for a 90-day period through February 8, OCTA held two public meetings to solicit public input on November 21, 2015 and December 9, 2015, in Rancho Santa Margarita, and a workshop at the regularly scheduled EOC meeting on December 2, The RMPs and comment forms are posted online at The RMPs for the remaining preserves (Hayashi and Aliso Canyon) will be released at a later date and will utilize a similar public outreach process. Endowment Establishment In October 2014, the Board approved a non-wasting endowment target of approximately $34.5 million to pay for the long-term management of the Preserves. This commitment demonstrates to the resources agencies that OCTA has the financial capacity to fund the management of the Preserves that are integrated into the OCTA NCCP/HCP.

5 Measure M2 Environmental Mitigation Program Update Page 4 Staff is working to determine the most effective structure and funding methods to ensure development of the endowment. This will be reviewed by the EOC, the Finance and Administration Committee, and the Board of Directors. Concurrently, staff has been working with other entities that own mitigation lands to identify comprehensive land management strategies. This approach has the potential to maximize economies of scale and create management efficiencies. Next Steps The next inter-agency puma coordination meeting is anticipated to take place in early The Transportation Corridor Agency has tentatively agreed to host the meeting. The focus will remain on mountain lions, but there will also be an overview on gnatcatcher monitoring as a model for cooperation and collaboration. Staff will continue to monitor the progress of the Harriett Wieder restoration project and provide the status to the EOC on a regular basis until the project is able to begin on-the-ground restoration activities. OCTA will continue with public outreach and will work with the resources agencies to address public input on the Trabuco and Silverado Canyon RMPs to determine if they meet the permit requirements of the NCCP/HCP. Staff will finalize the endowment parameters and seek Board approval so that the deposits can begin. Summary M2 includes an EMP that provides funding for programmatic mitigation to off-set impacts of the 13 freeway projects. To expedite the delivery of the freeway projects, this program was initiated in 2007 to implement early project mitigation through property acquisition and habitat restoration. This program is administered through a NCCP/HCCP, which will be completed in early A status report on the program, including an update on the Harriet Weider restoration project, and the release of OCTA Trabuco and Silverado Canyons RMPs are presented. Attachment None. Prepared by: Approved by: Dan Phu Manager, Environmental Programs (714) Kia Mortazavi Executive Director, Planning (714)