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TO: MEMBERS, FORMATION COMMISSION FROM: PAUL L. HOOD, EXECUTIVE OFFICER DATE: JANUARY 17, 2008 SUBJECT: CONSIDERATION OF THE LOS ROBLES DEL MAR (LRDM) ANNEXATION TO THE CITY OF PISMO BEACH AND THE SUPPLEMENT ENVIRONMENTAL IMPACT REPORT - FILE NO. 2-R- 05 Recommendation: It is respectfully recommended that the Commission consider the following alternatives and direct Staff to prepare Findings of Fact consistent with the California Environmental Quality Act (CEQA) for one of the following actions: Alternative #1: Approve the annexation subject to the Conditions of Approval found in Attachment A1. These conditions prohibit the City of Pismo Beach from using the Los Robles Del Mar (LRDM) on-site wells or the project site to pump the underground aquifers and implement conservation measures listed in the Conditions of Approval; or Alternative #2: Conditionally approve the annexation subject to Conditions of Approval found in Attachment A2. These conditions require the City to monitor the deep aquifer, limit the pumping to 100 acre feet per year, implement the conservation measures listed, and reduce pumping if monitoring indicates that the deep aquifer is, or will soon be in an overdraft situation. Either of these alternatives would reduce the environmental impacts caused by the use of the LRDM water wells to pump the deep aquifer to a less than significant level. Denial of the proposal is not recommended, but it is also an option available to the Commission. COMMISSIONERS KATCHO ACHADJIAN CHAIR, County Member RICHARD ROBERTS Vice-Chair, Public Member DAVID BROOKS Special District Member BRUCE GIBSON County Member BARBARA MANN Special District Member Duane Picanco City Member ALLEN SETTLE City Member ALTERNATES ED EBY Special District Member TOM MURRAY Public Member GARY NEMETH City Member JAMES R. PATTERSON County Member STAFF PAUL L. HOOD Executive Officer RAYMOND A. BIERING Legal Counsel DAVID CHURCH Deputy Executive Officer DONNA J. BLOYD Commission Clerk TABLE OF CONTENTS Background……………………...2 City of Pismo Beach…………….8 Supplemental EIR……………….8 Water Assessment……………..12 Future Use of Deep Aquifer ....15 Alternatives……………….........18 LAFCO Factors…..………….…21 ATTACHMENTS A: Conditions of Approval 1. Prohibit Use of Aquifers 2. Limited Deep Aquifer Use B: Response to Comments C: Comment Letters D: Plan for Services E: Other Documents San Luis Obispo - Local Agency Formation Commission SLO LAFCO - Serving the Area of San Luis Obispo County

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Page 1: San Luis Obispo - Local Agency Formation Commissionoakparkcommunitygroup.com/Docs/1-LRDM_Staff_Repo… ·  · 2009-05-06Water Assessment……………..12 ... SLO LAFCO - Serving

TO: MEMBERS, FORMATION COMMISSION FROM: PAUL L. HOOD, EXECUTIVE OFFICER DATE: JANUARY 17, 2008 SUBJECT: CONSIDERATION OF THE LOS ROBLES DEL MAR (LRDM) ANNEXATION TO THE CITY OF PISMO BEACH AND THE SUPPLEMENT ENVIRONMENTAL IMPACT REPORT - FILE NO. 2-R-05 Recommendation: It is respectfully recommended that the Commission consider the following alternatives and direct Staff to prepare Findings of Fact consistent with the California Environmental Quality Act (CEQA) for one of the following actions: Alternative #1: Approve the annexation subject to the Conditions of Approval found in Attachment A1. These conditions prohibit the City of Pismo Beach from using the Los Robles Del Mar (LRDM) on-site wells or the project site to pump the underground aquifers and implement conservation measures listed in the Conditions of Approval; or Alternative #2: Conditionally approve the annexation subject to Conditions of Approval found in Attachment A2. These conditions require the City to monitor the deep aquifer, limit the pumping to 100 acre feet per year, implement the conservation measures listed, and reduce pumping if monitoring indicates that the deep aquifer is, or will soon be in an overdraft situation. Either of these alternatives would reduce the environmental impacts caused by the use of the LRDM water wells to pump the deep aquifer to a less than significant level. Denial of the proposal is not recommended, but it is also an option available to the Commission.

COMMISSIONERS

KATCHO ACHADJIAN CHAIR, County Member

RICHARD ROBERTS

Vice-Chair, Public Member

DAVID BROOKS

Special District Member

BRUCE GIBSON

County Member

BARBARA MANN Special District Member

Duane Picanco

City Member

ALLEN SETTLE City Member

ALTERNATES

ED EBY Special District Member

TOM MURRAY

Public Member

GARY NEMETH City Member

JAMES R. PATTERSON County Member

STAFF

PAUL L. HOOD

Executive Officer

RAYMOND A. BIERING Legal Counsel

DAVID CHURCH

Deputy Executive

Officer

DONNA J. BLOYD Commission Clerk

TABLE OF CONTENTS

Background……………………...2

City of Pismo Beach…………….8

Supplemental EIR……………….8

Water Assessment……………..12

Future Use of Deep Aquifer ....15

Alternatives……………….........18

LAFCO Factors…..………….…21

ATTACHMENTS

A: Conditions of Approval

1. Prohibit Use of Aquifers

2. Limited Deep Aquifer Use

B: Response to Comments

C: Comment Letters

D: Plan for Services

E: Other Documents

San Luis Obispo - Local Agency Formation CommissionSLO LAFCO - Serving the Area of San Luis Obispo County

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 2

BACKGROUND The San Luis Obispo Local Agency Formation Commission is considering the proposed annexation of the Los Robles Del Mar property into the City of Pismo Beach. Typically, LAFCO acts as a Responsible Agency and relies upon the Lead Agency’s (City of Pismo Beach) environmental documentation to evaluate annexations. In this case LAFCO has become the Lead Agency for preparing a Supplemental Environmental Impact Report focused on the use of the on-site wells as a municipal water supply. The City of Pismo Beach approved a Specific Plan and other entitlements that govern the future land uses to be allowed on the site. The City has also certified two Environmental Impact Reports for the Los Robles Del Mar project. LAFCO is precluded by State Law from making decisions directly related to the land use authority of a jurisdiction. The Los Robles del Mar project site involves 182 acres of vacant land located adjacent to and immediately west of Oak Park Boulevard and adjacent to the northern boundary of the City of Pismo Beach (see Figure 1, Vicinity Map). The rectangularly-shaped parcel borders the eastern portion of the City of Pismo Beach and consists of two separately owned parcels referred to as Property A and Property B. Property A involves a total of 154 acres comprising the northern and western portions of the site while Property B involves a total of 28 acres within the southeastern portion of the site. The Specific Plan approved by the City of Pismo Beach calls for the land uses of the 182 acre site as shown in the following table. It should be noted that 38% of the site, which is currently zoned Rural Lands, is proposed for Open Space. The Executive Summary of the Specific Plan can be found in Attachment E of this Staff Report:

Land Use Acres Units % of Site

Residential

Affordable Senior Housing 2.9 60 1.6% Low Density Homes 5,000 s.f. Lots 15.5 99 8.5% Estate Homes 6,000-10,000 s.f. lots 23.1 104 12.7% Custom homes 10,000 to 20,000 s.f. lots 12.3 40 6.8% Rural Estate-1 acre lots 10.2 9 5.6% Subtotal 64 312 35%

Other Uses

Open Space 69.8 0 38% Public/Semi Public/School Use 27.4 0 15% Roads 20.2 0 12% Totals 181.4 312 100%

In March 2006, during the Study Session for the LRDM annexation, the potential impacts cause by the use of the Los Robles del Mar wells as a municipal water supply and the lack of adequate analysis of the potential impacts of this use upon wells in surrounding areas were documented. As a result, consideration of the proposed

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 3

Figure 1-Vincity Map

LRDM

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 4

annexation was postponed until additional environmental documentation (DSEIR) could be prepared to specifically address the potential impacts associated with the proposed pumping of on-site wells to augment the City’s municipal water supply. LAFCO is responsible for addressing a number of factors found in the Cortese-Knox-Hertzberg Act. Water is addressed in Government Code section 56668 (k) “Timely availability of water supplies adequate for projected needs as specified in 65352.5.” Also, San Luis Obispo LAFCO has a policy regarding water supplies that requires an annexation have an adequate, reliable, and sustainable water supply;

17. In any proposal requiring water service, the Commission requires that the agency to which the annexation is proposed should demonstrate the availability of an adequate, reliable and sustainable supply of water. In cases where a phased development is proposed, the agency should demonstrate that adequate service capacity will be provided as needed for each phase. In cases where a proposed annexation will be served by an onsite water source, the proponent should demonstrate its adequacy (CKH 56668 (k)).

Code 65352.5 states that a City amending its general plan shall provide the planning agency with a variety of planning information and documentation, including the current version of its Urban Water Management Plan, Capital Improvement Plans and other water supply and demand information regarding the timely availability of a water supply for the project. The City’s Urban Water Management Plan and Capital Improvement plans were evaluated in the Municipal Service Review completed by LAFCO in 2002. The City’s policy is to serve an annexation only if a sustained, long term supply can be demonstrated. The City’s Plan for Services (Attachement D) describes how the City will serve the site. The Cortese-Knox-Hertzberg Act accords LAFCOs broad authority to apply terms and conditions. Government Code Section 56886 (j) states that LAFCO has discretion to approve terms and conditions regarding water as follows:

56886 (j) The fixing and establishment of priorities of use, or right of use, of water, or capacity rights in any public improvements or facilities or any other property, real or personal. However, none of the terms and conditions ordered pursuant to this subdivision shall modify priorities of use, or right of use, to water, or capacity rights in any public improvements or facilities that have been fixed and established by a court or an order of the State Water Resources Control Board.

This code section allows LAFCO to condition the use or non-use of the aquifers underneath the annexation site based on the information found in the SEIR and other documentation. LAFCO can apply these conditions to the proponent of the annexation, but cannot apply these conditions to other jurisdictions that are not parties to the annexation, and therefore are not within the regulatory purview of LAFCO. In this case LAFCO has been asked by the City of Pismo Beach to require the City of Arroyo Grande to restrict its use of the deep aquifer to mitigate the impacts caused by the annexation and the use of the aquifer by the City of Pismo Beach. LAFCO cannot require the City of Arroyo Grande to restrict pumping from an aquifer it has been using

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 5

since 1990 for municipal uses based on the fact that the City of Pismo Beach now proposes as part of the LRDM annexation to use this aquifer as a municipal supply. The linkage (nexus) between the City of Arroyo Grande’s existing use of the aquifer and the impacts of the City of Pismo Beach’s plan to use the wells on the annexed property overlying the aquifer as a result of the proposed annexation does not provide LAFCO with the legal basis to require the City of Arroyo Grande to reduce its pumping. Project History. In 1987, the San Luis Obispo Local Agency Formation Commission (LAFCO) placed the Los Robles del Mar site within the City of Pismo Beach’s Sphere of Influence. As a result, if the site is annexed into the City and developed, it would be under the jurisdiction of the City of Pismo Beach and would eventually obtain urban services from the City. In 1991, a Draft Specific Plan was prepared, pursuant to City of Pismo Beach requirements. The Plan proposed a mix of residential development on Property A and a private school on Property B. In 1993, the Pismo Beach City Council determined that Annexation and Fiscal Impact Studies should be completed and that the proposed Specific Plan be updated. At that time the Los Robles del Mar Specific Plan proposed development of 298 single family residences on approximately 91 acres, a private school on Property B on approximately 22 acres and public and private open space, including public parks, a private oak woodland preserve, trails, sidewalks and other open space areas on a total of 69 acres. The project applicant prepared and submitted an updated Specific Plan and Annexation Study in November 1994, accompanied by applications for a General Plan Amendment, zoning text amendment, prezoning ordinances and annexation. The potential environmental effects of that proposal were assessed in an Environmental Impact Report. In April, 1996, the Pismo Beach City Council certified the Final EIR, adopted a Statement of Overriding Considerations in response to the unavoidable adverse impacts on cumulative air quality and sensitive biological resources and approved a Zone Change, Pre-Zoning Ordinance and the proposed Los Robles del Mar Specific Plan in April, 1996. Two lawsuits were filed challenging the City’s approval of the Los Robles Del Mar Specific Plan. The Lucia Mar Unified School District filed a lawsuit challenging the adequacy of statutory school fees to mitigate the project’s impacts on school facilities. Subsequently, the Applicant and school district entered into a School Mitigation Agreement in January 1997. Under the terms of this Agreement, the aforementioned parties agreed upon the incorporation of project-specific recitals, exhibits and mitigation measures, which would minimize impacts. More specifically, the parties agreed upon the total impact to the District and equated a monetary value for which the developers would be responsible. Upon execution of this Agreement the District withdrew its lawsuit. Another lawsuit was filed by certain residents of the City of Arroyo Grande who sued the City of Pismo Beach, alleging violations of the California Environmental Quality Act (“CEQA”), the Coastal Act, and inconsistency with the General Plan. Sixty-eight issues

B

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 6

were raised in the litigation as alleged inadequacies of the EIR. In May 1997, the Superior Court upheld the adequacy of the EIR, including specifically its description, analysis, mitigation and findings regarding the various impacts. In Fall of 1998, the Superior Court reaffirmed the earlier ruling upholding the EIR, but invalidated approval of the Specific Plan, holding that the Specific Plan was inconsistent with the General Plan with regard to four specific issues: (1) no analysis was provided of the possibility of an on-site tertiary wastewater treatment plant; (2) slopes in park areas were not consistent with standards in the General Plan; (3) oak tree preservation; and (4) the fiscal impact of the project on the City. In 2001, the Applicant submitted a revised Specific Plan, which set forth the land use policies, necessary infrastructure, public facilities, public services and development standards for future development of the Los Robles del Mar site. A Supplement to the original Final EIR (certified in 1996) was prepared to address the impacts of these project revisions. The public review draft was released in 2001. This Final Supplemental EIR was reviewed by the City of Pismo Beach and was considered by the City Planning Commission in June, 2003 prior to its certification by the City of Pismo Beach City Council in February, 2004. The City Council took the following actions on February 17, 2004:

• Certified Final Supplement to the Final Environmental Impact Report;

• Approved two General Plan Amendments pertaining to parks and affordable housing issues

• Approved a Fiscal Impact Analysis for the LRDM Specific Plan

• Approved the LRDM Specific Plan, Tentative Tract Map and Development Plan On November 16, 2004. the City adopted a Resolution requesting LAFCO consider the annexation. On December 7, 2004 the City Council adopted a Prezoning Ordinance and a Pre-annexation and Development Agreement. The application and fees for annexation were submitted to LAFCO on February 28, 2005. From February 2005 to January, 2006 the applicant worked on completing water studies to comply with the City’s conditions of approval and Developers Agreement. On January 17, 2006, the City received the documentation regarding the water studies. On March 7, 2006, the City Council approved the Negotiated Tax Agreement with the County. The County Board of Supervisors also approved the Negotiated Tax Agreement on March 7, 2006. At this point, the annexation proposal was discussed by LAFCO at the March 16, 2006 Study Session. March 16, 2007 Study Session. LAFCO conducted a Study Session regarding LRDM on March 16, 2006. This study session provided the Commission with information regarding the Los Robles del Mar annexation. The key issue raised at the study session was the use of the on-site wells as a municipal water supply and the potential impacts on surrounding rural residents. The Commission considered a variety of information at the Study Session including the following attachments:

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 7

Attachment A: January 17, 2006 City of Pismo Beach Staff Report submitting the Water Studies to the City Council

Summary. The staff report provides a brief history of the project, a discussion of the Water Studies prepared, and a next steps section. Also included is a timeline that shows the projects history. This staff report indicated that one of the next steps would be to forward this information to LAFCO and activate the annexation process. Attachment B: Questions about the Los Robles del Mar Proposal

Summary. The questions were prepared by LAFCO staff based on discussions with area residents. The answers were provided by the City of Pismo Beach staff and project consultants. Attachment C: Area Residents Petition

Summary. This petition, signed by 58 area residents, requests that LAFCO postpone its annexation hearing until April, 2006 so they may have had time to analyze the water studies released by the City in late January, 2006. Attachment D: Ground Water Source Assessment Los Robles Del Mar Project Pismo Beach, Cleath and Associates, August 2003

Summary. This study analyzes the Los Robles del Mar on site ground water resources. This study defines the extent of the basin, identifies characteristics of the aquifer, assesses ground water occurrence and movement, evaluates groundwater inflow and outflow, and identifies potential impacts to neighboring rural residential water users. The key finding in this study is that the on-site LRDM wells are thought to be deeper and in a separate aquifer from other wells in the area. However, this study also indicates that there is an impact on surrounding wells. At a distance of 400 feet well levels dropped by 39 feet, at 1,700 feet a 21 foot decreased water level was noted and at 4,500 feet a decrease of 10 feet was estimated. The consultant will provide an explanation for this apparent inconsistency. Attachment E: Well Yield and Water Quality Testing Los Robles Del Mar Project , Pismo Beach, California, Cleath and Associates, June 2004

Summary. The study re-evaluated the well yield and water quality of well number two on the Los Robles del Mar site. A constant discharge test (pump test) was completed on well number two on the LRDM site over a one month period. This test concluded that well number two could pump a 160 acre feet per year on a sustainable, long-term, basis. The study also indicated that the water requires treatment for iron, manganese and hydrogen sulfide before it can be used for domestic use. Attachment F: Los Robles Well 3 on Oak Park Road, Arroyo Grande, California, Cleath and Associates, December 2, 2005

Summary. The study evaluates the well yield and water quality of new well number three constructed on the northeast corner of the Los Robles del Mar site. A constant discharge test (pump test) was completed on well number two on the LRDM site over a 72 hour period. This test provided confirmation that the deep aquifer was in the location it was estimated to be by other studies. The test recommends that this well’s annual production rate be set at 64 acre feet per year.

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 8

Attachment G: Evaluation of Meadow Creek Wells and Aquifer, Pismo Beach, CA, Fugro West, Inc., September 19, 2005

Summary. This study evaluates the Meadow Creek wells ability to produce water as a long-term reliable water supply. The study also determines that the Meadow Creek aquifer is part of the Santa Maria Basin. This Meadow Creek Aquifer was originally not identified as part of the Santa Maria Groundwater Basin. This is important because being part of the Santa Maria Groundwater Basin brings into play the settlement agreement of the Santa Maria Basin litigation and the Gentlemen’s Agreement between the Cities of Arroyo Grande, Grover Beach and the Oceano CSD.

The Commission also heard presentations from the City of Pismo Beach’s Environmental and Water consultants as well as the City’s Legal Counsel. The project applicant representative also provided testimony as did other project proponents. Numerous residents of the rural Oak Park area provided testimony that the impacts of withdrawing water from the deep aquifer by the City had not been adequately studied. The Commission determined that a Supplemental Environmental Impact Report should be prepared which focused on the use of the groundwater aquifer as a municipal supply and the impacts it may have on the wells of surrounding residents and existing water users should be prepared.

CITY OF PISMO BEACH The City of Pismo Beach submitted the proposal to LAFCO with a Resolution of Application. The City is the proponent of the project and supports the annexation into the City. The city’s comments regarding the Draft Supplemental Environmental Impact Report acknowledge that the deep aquifer is relatively small and would benefit from cooperative management approach to the resource. The City has also indicated a willingness to participate in the monitoring and management of the deep aquifer as is necessary to protect the aquifer from going into overdraft. The City also indicates that the City of Arroyo Grande should also participate in such a management program. In summary, the City is generally supportive of Alternative #2 and strongly encourages the participation of the City of Arroyo Grande in managing the deep aquifer.

SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT The proposed project involves the use (i.e. municipal pumping) of on-site wells in order to augment the City of Pismo Beach water supply in conjunction with approval of the proposed annexation of the Los Robles Del Mar site into the City of Pismo Beach. A Specific Plan for the property was approved by the City of Pismo Beach on February 17, 2004. Subsequent to these approvals, the City of Pismo Beach stated its intent to utilize these on-site wells to augment the City’s municipal water supply while also serving the Los Robles del Mar project. Two separate environmental documents were previously prepared for the proposed project, a Final EIR certified in 1996 and a Final Supplemental EIR certified in 2004. The San Luis Obispo Local Agency Formation Commission determined the need for additional environmental documentation regarding water resources in the area prior to its

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 9

consideration of annexation of the Los Robles del Mar site to the City of Pismo Beach. This aspect of the proposed project was not fully addressed within either of the prior environmental documents certified by the City for this project. These prior documents had previously indicated that the proposed project would be served by the State Water Project supplies with the on-site wells possibly being used for irrigation and emergency supply purposes. The Supplemental EIR focuses on the City’s plan to utilize the on-site water wells in order to augment the municipal water supply and the impacts of pumping of these wells upon the private (rural) wells and other municipal water wells (City of Arroyo Grande) in the area. These private on-site wells (referred to herein as LRDM Wells #1, #2 and #3) would be transferred to the City of Pismo Beach. The City intends to include them in its municipal water supply network which is currently served by water from the State Water Project, Lopez Lake and other groundwater wells. According to the City Public Works Department, the City will, at minimum, pump these wells at a volume equal to the water demand for the Los Robles del Mar project, estimated to total 151 acre-feet per year. However, the adopted Development Agreement between the City of Pismo Beach and the Los Robles del Mar property owner allows for unrestricted pumping of the LRDM wells by the City. Also addressed within the Supplemental EIR are the cumulative impacts upon the groundwater basin due to the pumping of the on-site wells in combination with the private and municipal wells (operated by the Cities of Pismo Beach and Arroyo Grande) in the vicinity. In addition, the potential impacts of the pumping of the on-site wells upon biological resources in the area as well as the land use/growth-inducing impacts of these actions were also analyzed. The proposed Los Robles del Mar Specific Plan has been the subject of several prior approvals by the City of Pismo Beach and will involve additional approvals by the San Luis Obispo Local Agency Formation Commission. Prior City of Pismo Beach approvals include: 1) certification of a Final Environmental Impact Report, Adoption of a Statement of Overriding Considerations and Approval of a Zone Change, Pre-Zoning Ordinance the Los Robles del Mar Specific Plan (April, 1996); 2) certification of a Supplemental Final Environmental Impact Report and Approval of General Plan Amendment and a Revised Los Robles del Mar Specific Plan (February, 2004) and 3) approval of a Tentative Subdivision Map, Pre-Annexation Agreement, Revised Fiscal Analysis and Development Agreement for the Los Robles del Mar Specific Plan (December, 2004). Previous LAFCO approvals include placement of Los Robles del Mar site within the Sphere of Influence and Sphere of Services of the City of Pismo Beach (1987). Approvals to be considered by the San Luis Obispo Local Agency Formation Commission include: 1) certification of this Final Supplemental Environmental Impact Report; 2) approval of a Mitigation Monitoring Program, Findings of Fact and, if necessary, a Statement of Overriding Considerations for the Final Supplemental Environmental Impact Report; 3) approval of Annexation of the 182 acre Los Robles del Mar site into the City of Pismo Beach and 4) possible consideration of a separate annexation of the 28 acre

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 10

Property B into the City of Pismo Beach prior to annexation of the remainder of the Los Robles del Mar site. Objectives. The main purpose of completing the Supplemental Environmental Impact Report is to address the potential impacts associated with the proposed use (i.e. pumping) of wells located on the Los Robles del Mar site as a municipal water source for the City of Pismo Beach. This Supplemental EIR is intended to accomplish the following objectives:

1. Evaluate the City’s plan to utilize on-site water wells to augment the municipal water supply and determine the impacts of this use upon wells in the surrounding area.

2. Analyze the cumulative impacts of this use of on-site wells in combination with private and municipal wells in the vicinity on the groundwater basin.

3. Identify any potential impacts of the pumping of on-site wells upon biological resources in the area.

4. Assess the potential land use/growth-inducing impacts of these actions.

Mitigation. The Draft Supplemental Environmental Impact Report identifies several mitigations that reduce the impacts of pumping the LRDM wells on the deep aquifer to a less than significant level. Monitoring will be conducted by LAFCO to insure the implementation of mitigation measures contained in the EIR. The EIR proposes the following mitigation measures:

A-1: A monitoring program that regularly measures the water level, pumping water level and total production from municipal wells extracting water from the deep aquifer (LRDM wells #1, #2 and #3 and AG wells #9 and #10) shall be conducted by a qualified hydrogeologist. This monitoring program shall involve recording/monitoring of pumping volumes on a monthly basis and monitoring of standing and pumping water levels in wells on a semi-annual basis (preferably in April and October). In the event that total pumping of the deep aquifer exceeds its identified safe yield, water level monitoring shall occur on a monthly basis. As one of the major users and as a junior appropriator of the deep aquifer, the City of Pismo Beach, in cooperation with the City of Arroyo Grande, should be responsible for this monitoring program. A-2: Total extraction of groundwater from the deep aquifer via the LRDM wells #1, #2 and #3 after annexation of the LRDM site shall be restricted to the identified safe yield of the deep aquifer (currently estimated at 270 afy) pursuant to the monitoring program noted in Mitigation Measure A-1 above. In the event that this limitation is exceeded, it will be necessary for the City of Pismo Beach to reduce pumping from the LRDM wells or work in cooperation with the City of Arroyo Grande to reduce withdrawal of groundwater from the deep aquifer in order to insure compliance with this limitation similar to other ongoing cooperative efforts currently undertaken by both municipalities. This will assist in prevention of the aquifer from entering into an overdraft condition. If long-term monitoring of water levels and production capability of deep aquifer wells shows no decline in groundwater in storage, pumping of the deep aquifer could be gradually increased in order to test and possibly increase its safe yield.

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San Luis Obispo LAFCO January 17, 2008 Los Robles Del Mar Annexation/SEIR Page 11

A-3: In order to reduce water demands associated with the Los Robles del Mar Specific Plan project, several water conservation measures currently proposed by the project applicant shall be implemented as part of the ultimate project design. These measures may reduce water demand from the project to 107 afy depending upon the degree of their implementation and their effectiveness.

• All homes, senior housing and the school shall utilize advanced water saving

technology for toilets (ultra low-flow toilets), showers (low-flow shower heads), faucets, washing machines, dishwashers and other appliances (water conserving models).

• All homes, senior housing and the school shall be equipped with instant hot water

technology.

• Drought tolerant landscaping, drip irrigation systems and soil preparation which minimizes surface runoff and evaporation shall be used on all non-turf irrigation.

• Advanced irrigation technology utilizing moisture sensors, weather controllers, etc.

shall be provided for all private yards, parks, open space areas, streetscapes and landscaping surrounding senior housing and the school.

C-1: Total production from the LRDM wells shall not exceed the amount required to serve the Los Robles del Mar Specific Plan currently estimated to be 151 afy. This amount may be lower given the effectiveness of various developer-proposed water conservation measures.

Monitoring of groundwater levels and the amount of water pumped from the deep aquifer will be conducted by a qualified hydrogeologist who will report to the Local Agency Formation Commission. The Local Agency Formation Commission staff in cooperation with the City of Pismo Beach, will be involved in the evaluation of detailed project plans for the Los Robles del Mar Specific Plan related to design measures intended to reduce project water demands and encourage water conservation. In certain cases, the City of Pismo Beach will oversee implementation of specific design measures and will report the results of their review to the Local Agency Formation Commission. These environmental monitoring procedures are intended to insure that the proposed project fully complies with the mitigation measures put forth in the EIR. Conditions of Approval. In order to implement the above Mitigation Measures, Conditions of Approval have been prepared and are found in Attachment A of this Staff Report. The Conditions of Approval are the mechanism by which the mitigation measures are implemented and enforced. Included are two sets of conditions: 1) one to implement Alternative One (No Pumping), and 2) another to implement Alternative Two (Limited Pumping). Alternative one conditions require the recordation of a Covenant and Agreement against the property that precludes the use of the on-site wells. Alternative two conditions requires the recordation of a Covenant and Agreement against the property that establishes a monitoring program for the deep aquifer, restricts pumping to 100 afy unless the monitoring indicates an increase or decrease is allowed or needed, and an agreement that the City will reduce pumping if requested by LAFCO. The Conditions require compliance prior to the final completion of the annexation. A

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Certificate of Completion must be filed with the County Clerk in order to final the annexation. The Certificate will not be filed and the annexation not completed unless the conditions of approval are complied with.

Conclusion. The SEIR provides an adequate and accurate information base for decision making. The attached Response to Comments provides the information and responses required by CEQA to certify the SEIR. To certify the Final SEIR, the Commission is required by CEQA to make the following, conclusions, 1) the document has been completed in compliance with CEQA, 2) that the Commission has reviewed and considered the information in the EIR prior to approving the project, and 3) that the EIR reflects LAFCO’s (Lead Agency’s) independent judgment and analysis.

WATER RESOURCES ASSESSMENT

The analysis of hydrogeology/water resources in the Draft SEIR is based upon the “Water Resources Assessment for the Los Robles del Mar Supplemental Environmental Impact Report” prepared by Fugro West, Inc. (dated May, 2007). This analysis is included in its entirety as Technical Appendix B of the Draft Supplemental Environmental Impact Report. To evaluate the geologic and hydrologic conditions of the basin from which the LRDM project is proposing to extract groundwater and to assess the relative impact on groundwater conditions should project demand be extracted, the following work was conducted by Fugro West, Inc.:

• Geologic and hydrogeologic reports and maps, both published and unpublished were reviewed;

• The geological interpretation of the basin was refined by the collection and digitization of available borehole logs, field reconnaissance and review of available literature. This interpretation has included the construction of geological cross-sections, as displayed in Plates 2 to 6 of the assessment;

• Aquifer testing data in previous reports were reviewed and reanalyzed where monitoring data was available. These separate analyses are presented within the assessment, tables and in appendices B and C;

• The ability of the LRDM project wells (LRDM #1, #2 and #3) to extract a volume of water equivalent to the project demand was assessed. To achieve this previous and recent well test data were analyzed;

• The impact of pumping the deep aquifer on wells screened in a shallow aquifer in the basin (well interference) was assessed. Additional pump testing of LRDM Well #2, in February 2007, was specifically conducted for this purpose. The results of this test and previous aquifer testing were analyzed;

• Hydraulic parameters for the deep aquifer were calculated using the results of previous and recent aquifer testing. These values were compared to that derived by previous work to test their validity and consistency between reports;

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• Local precipitation data was obtained to enable the calculation of recharge to the deep aquifer by percolation (Appendix D of the Assessment). Additionally outcrop of the deep aquifer was calculated from the geological interpretation;

• Recharge to the aquifer via stream bed was assessed by identifying streams that crossed the deep aquifer and incorporating known hydraulic parameters for the deep and aquifer and alluvium. The area of contact between alluvium was determined from map interpretation, borehole logs and field reconnaissance. Seasonal alluvial sub flow was assessed from local stream flow and precipitation trends;

• An aerial photograph review was performed to identify domestic parcels located on, or in the vicinity of, the outcrop of the deep aquifer. This was required for interpretation of domestic groundwater pumpage and waste water recharge;

• Groundwater storage capacity of the deep aquifer was calculated using the outcrop and cross section maps to determine aquifer available volume and then combined with groundwater level data to determine the saturated volume; and

• A water balance for the deep aquifer was calculated, incorporating functions of input (e.g. precipitation recharge) and removal (e.g. domestic pumpage) from the deep aquifer. This has enabled an assessment of the impact of withdrawal of additional water from the aquifer for use by the City of Pismo Beach.

• Groundwater quality data was collected, assessed and compared with trends observed in the region.

The following are key findings in Water Assessment:

• Data from borehole logs of existing water wells and oil wells indicates that a dual aquifer configuration exists in the groundwater system underlying the Los Robles del Mar project site and surrounding areas. These two aquifers (referred to herein as the “shallow” and “deep” aquifers) are separated by a thick, clay-rich impermeable layer (known as an aquitard).

• The shallow aquifer is composed of sand, clay, clayey sand and sandy clay

layers with occasional gravels. The shallow aquifer reaches its greatest depth at 750 feet which corresponds to the center of lowest point of the syncline or trough-like area in the bedrock. Most rural residential users in the area pump water from the shallow aquifer.

• The deep aquifer is composed of fine sand, silty sand and clays with occasional gravels. The aquifer thickness, based on data from water and oil well logs, ranges from 250 feet to 350 feet and reaches a depth of more than 1,400 feet below sea level at the center or lowest point of the synclinal groundwater basin (see Figure 8, Cross-Section A and Figure 10, Cross-Section C in the SEIR).

• A significant clay rich “aquitard” between the shallow and deep aquifer clearly exists. An aquitard prevents or limits the flow of water between geological units. The clay-rich aquitard unit between the shallow and deep aquifers is composed

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of sandy clay or green sand and clay. When sand is encountered within the clay-rich layers, it is composed of fine or very finely grained sands. Although several wells penetrate this sandy layer within the aquitard, they are characterized as subaquifers within the aquitard with poor water production capability and water levels lower than wells pumping from either the shallow or the deep aquifers. The aquitard soil unit is 400 to 700 feet thick.

• Given this relatively thick layer combined with its abundant clay-rich layers, this aquitard prevents or significantly retards hydraulic communication (i.e. water exchange) between the shallow and deep aquifers.

• Based upon the extensive review of geologic documents and the evaluation of numerous water well and oil logs, there appears to be little in the way of hydraulic communication between the shallow and deep aquifers.

• In order to test this conclusion, several recent pumping tests were conducted to monitor the potential impacts on the shallow aquifer due to pumping of wells extracting water from the deep aquifer. Based upon the results of these pumping tests, there is no evidence of measurable hydraulic communication between these two aquifers. It was concluded that there would be no significant impact on the shallow aquifer as a result of pumping of the deep aquifer.

• According to the hydrogeologist, a “reasonable estimation of perennial yield” of the deep aquifer can be made given the best available data and their experience with similar water balance equations for other basins. This perennial safe yield was, therefore, estimated to total 270 acre-feet per year. This means that 270 afy can be withdrawn each year without overdrafting the groundwater basin;

• Current demand from extraction of groundwater from the deep aquifer includes the 70 afy being withdrawn by the City of Arroyo Grande via AG Well #9 and another 20 afy being withdrawn from the 21 private residences. Assuming ongoing groundwater interception by riparian vegetation of 20 afy, a total demand of 110 afy is currently being withdrawn from the deep aquifer. This leaves a total of approximately 160 afy aquifer surplus available for extraction without causing the deep aquifer to enter into an overdraft condition where aquifer outflow exceeds inflow.

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FUTURE USE OF DEEP AQUIFER

The Draft SEIR discusses the potential for overdrafting the deep aquifer if users pump in excess of 270 acre feet. Also, several commenter’s accurately indicate that rural users have a right to pump from the deep aquifer if necessary. The City of Arroyo Grande has indicated its intent to increase pumping from the Deep Aquifer to 220 afy. While the SEIR identifies the existing demand on the basin, it did not attempt to estimate or project potential future use of the deep aquifer. The table below shows various scenarios using various assumptions in comparison to the existing water situation identified in Draft SEIR. One assumption shown in the table is to increase the water used by rural and riparian users by 10%, 20% and 30%. Another assumption used in the scenarios is to anticipate the use of City of Arroyo Grande’s well #10 at 50 afy, 100 afy and 120 afy production levels. In scenarios two and three unknown future users and agricultural users are also added to the calculation. This analysis is a rough projection of the possible future use of the basin. It is intended for use as a comparative tool, but is not a scientifically based model.

Potential Water Demand Scenarios

Deep Aquifer Users SEIR Scenario 1 (+10%)

Scenario 2 (+20%)

Scenario 3 (+30%)

Riparian 20 afy 22 afy 24 afy 26 afy

Rural Users 20 22 24 26

Arroyo Grande #9 70 70 70 100

Arroyo Grande # 10 Not included 50 100 120

Unknown Future Users 0 30 50

Agricultural Users 0 10 20

Subtotal 110 164 258 342

Safe Yield of Deep Aquifer 270 270 270 270

Water Balance for LRDM Wells 160 106 12 -72

The Fugro Water Assessment used an aerial photograph to estimate the number of parcels around the edges of the deep aquifer that might be currently using water from the deep aquifer. Using Geographic Information System technology, the map on the next page shows the rural residential area north of Los Robles Del Mar. The area has 776 parcels within the extent of the deep aquifer. Of the 776 parcels, assessor records show about 75% (579 parcels) with improvements of over $40,000. 506 parcels, 65%, have improvements of over $75,000. When improvements of $100,000 are used as a threshold, 450 parcels, or 61% of the parcels, within the area meet this level. It is likely that a residential unit exits on parcels with over $100,000 of improvements.

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According to California water law, in theory, each of the 776 parcels has the right to drill a well into the deep aquifer if needed or desired. Drilling into the deep aquifer is usually not cost effective in cases where the shallow aquifer provides an adequate water supply, however; if a well in the shallow aquifer fails it may be necessary for a property owner to drill into the deep aquifer no matter the cost. Another scenario raised is if residents choose to add a secondary unit to an existing parcel with one residence. It may be that the existing well can serve the secondary unit or that a new water source (such as the deep aquifer) would need to be developed. It is speculative to attempt to estimate how many new secondary units might be developed in the area. It is also unknown if a property owner would need to drill deeper into the deep aquifer to obtain water for these units. In the table above scenarios two and three account for Unknown Future Users as 30 afy and 50 afy respectively. Also, rural users are increased by 20% and 30% in each scenario. Summary. The shallow and deep aquifers are separated by clay layers that prevent or significantly limit the movement of water between the two aquifers. The pumping of the deep aquifer does not significantly affect the shallow aquifer. The deep aquifer has a safe yield of 270 afy. The City of Arroyo Grande has been pumping water from well #9 in the deep aquifer since it was constructed in 1990. In comment letters the City of Arroyo Grande has indicted its intent to eventually pump up to 220 afy from the deep aquifer. Add to this the documented existing demand for riparian (20 afy) and rural users (20 afy) and the total amount being pumped would be 260 afy. If unknown future users, possible agricultural users, and the Los Robles Del Mar wells are added to this equation it can be assumed that overdraft of the deep aquifer would occur in the future. The deep aquifer is a relatively small water supply with a number of potential users. While it is unknown at this time which users will be pumping from this aquifer, it is certain that municipal users such as cities will likely place the deep aquifer into an overdraft situation without proper management.

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ALTERNATIVES This section summarizes the alternatives that have been evaluated as part of the Draft SEIR.

1. NO USE OF THE ON-SITE WELLS OR DEEP AQUIFER This alternative (Alternative 1) is recommended by LAFCO Staff and involves no pumping of the LRDM wells or use of the aquifers from the Los Robes Del Mar site by the City of Pismo Beach. This Alternative assumes no pumping of the LRDM wells or use of the aquifers from the LRDM site for any purpose. This alternative has several key points for consideration:

• The shallow or deep aquifers will not be impacted by the City of Pismo Beach pumping wells as a municipal supply;

• It allows LAFCO to approve the proposed annexation while eliminating the

potential impacts caused by using the groundwater as a municipal water source;

• Under this alternative, if the San Luis Obispo LAFCO certifies the EIR as complete and adequate pursuant to the State CEQA Guidelines, these potential significant impacts have been eliminated and the City of Pismo Beach could annex the Los Robles del Mar site upon compliance with the Conditions of Approval found in Attachment A1.

• The City of Pismo Beach would either secure additional water supplies or

reallocate existing water from their current sources in order to serve the increased water demand associated with the Los Robles del Mar Specific Plan. Other sources may include the State Water Project, other groundwater sources, and/or surface water from Lopez Lake.

• The property owner of the LRDM would be required to record a Covenant and

Agreement against the property. The agreement would precludes the use of the existing wells and aquifers by the owner or City of Pismo Beach for municipal purposes. The conditions of approval in attachment A1 provide details for recording this deed restriction.

• The City would be required to complete a water assessment and/or update of its

Urban Water Management Plan to document that it can provide a sustainable and reliable supply to the Los Robles Del Mar project.

The No Pumping Alternative involves no pumping of the Los Robles del Mar wells or use of the deep aquifer from the annexation site. It would eliminate the following impacts that are associated with the proposed project:

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1. Hydrogeology/Water Resources – Potentially significant impacts upon the groundwater basin and on other rural wells in the surrounding area are eliminated with this Alternative.

2. Biological Resources – Impacts to existing biological resources in the project

area are eliminated with this Alternative.

3. Land Use and Planning - Potentially significant impacts related to land use and growth inducement are eliminated with this Alternative.

The City may be able to serve the project from its current water supply if it chooses to reallocate the water or obtain another source. This alternative meets the project objectives of minimizing impacts to the groundwater basin and surrounding wells, to biological resources and land use/growth inducing impacts to a level which exceeds the proposed project. This alternative would not meet the objective of augmenting the City of Pismo Beach municipal water supply and does not offset the increased water demand of the Los Robles del Mar Specific Plan project.

2. LIMITED PUMPING OF THE WELLS The Limited Pumping Alternative (Alternative 2) involves the City of Pismo Beach pumping the on-site LRDM wells in a controlled manner that does not allow the deep aquifer to go into overdraft. This alternative has several key points for consideration:

• The Limited Pumping Alternative involves transfer of the on-site wells to the City of Pismo Beach with pumping of these wells limited to 100 afy per year. This alternative also involves establishing a groundwater monitoring program to ensure that the deep aquifer is not approaching an overdraft situation.

• Within the Limited Pumping Alternative, the City of Pismo Beach would be

allowed to pump the LRDM wells at a volume not to exceed the 100 afy. If a potential overdraft situation is identified, the City would be required to reduce or stop pumping from the wells.

• The 100 afy pumping limitation could be increased or decreased depending on

the results of the monitoring program, the amount of pumping completed by the City of Arroyo Grande and other users of the deep aquifer.

• The LRDM project demand is estimated to total 151 acre-feet per year. A

reduced project demand (as low as 107 afy) may result depending upon the effectiveness of various developer-proposed water conservation measures (see Mitigation Measure A-3 in Section V.A. Hydrogeology/Water Resources of the SEIR).

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• If the City of Pismo Beach pumps a total of 100 afy this addition to the City’s water supply would help compensate for the increased consumption of water associated with development of the Specific Plan.

Environmental impacts associated with the Limited Pumping Alternative are discussed below.

1. Hydrogeology/Water Resources – Potentially significant impacts upon the groundwater basin and on other rural wells in the surrounding area are eliminated with this Alternative if the pumping monitoring and restrictions are effectively implemented.

2. Biological Resources – Existing biological resources in the project area are not

significantly impacted by this Alternative. Potential impacts to these resources are insignificant even when pumping of the LRDM wells exceeds this Alternative.

3. Land Use and Planning - Potentially significant impacts related to land use and

growth inducement are eliminated with this Alternative with the assumption that future municipal pumping of the LRDM wells does not exceed the water demand of the Los Robles del Mar Specific Plan project. With this limited pumping, a constraint upon future development in areas served by any additional water (beyond LRDM) is not eliminated.

The draft conditions of approval for this alternative are found in Attachment A2 of this staff report. The conditions call for the City to establish and pay for a monitoring program for the deep aquifer for as long as it is used as a water supply. A qualified consultant would implement the monitoring program and recommend to LAFCO when pumping of the LRDM wells should be decreased because of a potential overdraft of the aquifer. The City is limited to pumping 100 afy per year from the deep aquifer.

3. DENIAL OF THE ANNEXATION

The Commission may deny the annexation based on the impacts that would be caused by the project. Denial of the annexation eliminates all impacts and does not allow the Specific Plan to be implemented by the City of Pismo Beach. Possible findings for denial include:

• Annexation is inconsistent with the Cortese-Knox-Hertzberg Act. • Annexation is inconsistent with the policies of San Luis Obispo LAFCO. • Testimony heard at the Public Hearing

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4. APPROVAL OF THE ANNEXATION WITHOUT CONDITIONS

The Commission could decide to approve the annexation without conditions of approval. This alternative is not recommended by Staff because it could create a situation that encourages the overdrafting of the deep aquifer. To date, the City of Arroyo Grande and Pismo Beach have not been able to agree upon how to manage the deep aquifer. The risk that the deep aquifer would be significantly impacted is high. Also, the potential for a legal challenge to the LAFCO action would also increase. Alternatives one and two provide for mitigation and conditions of approval that would reduce the environmental impacts to less then significant and thus provide the greatest protection under CEQA.

LAFCO Factors Government Code 56668 (a) Population and population density; land area and land use; per capita assessed

valuation; topography, natural boundaries, and drainage basins; proximity to other populated areas; the likelihood of significant growth in the area, and in adjacent incorporated and unincorporated areas, during the next 10 years.

The Los Robles del Mar project site involves 182 acres of vacant land located adjacent to and immediately west of Oak Park Boulevard and adjacent to the northern boundary of the City of Pismo Beach. The site is currently vacant and has been within the City of Pismo Beach’s Sphere of Influence since 1987. The existing condition of the site is that of undeveloped grassy hillsides with a variety of vegetation and wildlife present. The three main types of vegetative wildlife habitats on the site are Chaparral, Oak Woodland and grasslands. There are also some wetland species located on the southeastern portion of the property and a small cluster of willows on the northeastern boundary of the property. The Specific Plan approved by the City proposes to change the zoning from Rural Lands in the County to the following zoning categories: High Density Residential, Low Density Residential, Open Space and Public/Semi Public in the City. This would allow for 312 units of housing with 60 of those units categorized as affordable senior housing. A private school is proposed on a separate 28 acre parcel.

The Los Robles del Mar site is located approximately one half mile north of U.S. Highway 101 the currently unincorporated area of San Luis Obispo County. The rectangular-shaped parcel borders the eastern portion of the City of Pismo Beach and consists of two separately owned parcels referred to as Property A and Property B (see Figure 1, Vicinity Map). Property A involves a total of 154 acres comprising the northern and western portions of the site while Property B involves a total of 28 acres within the southeastern portion of the site. The project site is located on the lower slopes of the Santa Lucia foothills adjacent to the inland (northern) boundary of the City of Pismo Beach. The vacant project site is bordered by agricultural land on the west and rural-residential lots on the north, both of which are currently under the jurisdiction of the County of San Luis Obispo. Areas to the east of the project site contain Oak Park Boulevard, which forms the eastern project boundary, Noyes Road and single family homes within the City of Arroyo Grande. Areas to the south of the site contain Sea Country Estates and other residential development within the City of Pismo Beach.

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(b) Need for Services. If the site is to develop pursuant to the City’s approved Specific Plan, it will need for organized community services that are provided by the City.

The present cost and adequacy of governmental services and controls in the area is met by the County. The site is vacant and requires minimal service levels at this point in time. If the annexation is approved the area will require urban level services that can be provided by the City. The annexation would increase the costs of services commensurate with the increases in services. The City would provide a higher level of service to the site. Alternatively, if the annexation is not approved the level and cost of services will not be affected.

(c) The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on the local governmental structure of the county.

The proposed action would allow the Specific Plan approved by the City to be implemented upon compliance with the conditions of approval, if any. The area would be removed from the County’s unincorporated area and be within the City’s incorporated service area. The eventual impact could be an increase of population for the City. The City would be responsible for providing services to the area. The new population would contribute to local businesses, social and economic interests.

(d) The conformity of both the proposal and its anticipated effects with both the adopted commission policies on providing planned, orderly, efficient patterns of urban development, and the policies and priorities set forth in Section 56377.

San Luis Obispo LAFCO Policies for City Annexations

1. The boundaries of a proposed annexation must be definite and certain and

must conform to lines of assessment whenever possible. Analysis.

The boundaries are definite and certain and adhere to assessor parcel lines. 2. The boundaries of an area to be annexed will not result in any areas difficult

to serve.

The properties are adjacent to the City of Pismo Beach and are not difficult for the City to provide services.

3. There is a demonstrated need for governmental services and controls in the

area proposed for annexation.

The Specific Plan approved by the City requires that urban level services be provided to the properties.

4. The municipality has the resources capable of meeting the need for services

in the area proposed for annexation and has submitted studies and information documenting its ability to serve.

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The City has demonstrated its ability to serve to serve the site in the already certified Environmental Impact Reports completed for the project. The City completed an upgrade of their wastewater facility and has the capability to provide police and fire services. The City’s ability to provide water to the site shall be confirmed prior to the annexation being finaled. The conditions of approval call for the City to document in an update to its Urban Water Management Plan with regard to its ability to provide water service to the site. This is to occur prior to the annexation being finaled.

5. There is a mutual social and economic community of interest between the

residents of the municipality and the proposed territory.

The proposed Specific Plan would become part of the social and economic fabric of the City of Pismo Beach.

6. The proposed annexation is compatible with the municipality’s general plan.

The proposed annexation represents a logical and reasonable expansion of the annexing municipality.

The City has approved the Los Robles Del Mar Specific Plan and it is compatible with its General Plan. The properties have been in the Sphere of Influence for the City since 1987. The Sphere of Influence was updated in 2002 and the properties continued to be part of the SOI. A Sphere of Influence is the probable physical boundary of a jurisdiction.

(e) The effect of the proposal on maintaining the physical and economic integrity of

agricultural lands, as defined by Section 56016 is minimal.

The parcel just west and adjacent to the proposal can continue its agricultural activities. The proposal site is not productive agricultural land is not categorized as prime agricultural lands.

(f) The definiteness and certainty of the boundaries of the territory, the nonconformance

of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposed boundaries.

The annexation boundary follows lines of assessment and does not create an island or corridor of unincorporated territory.

(g) Consistency with city or county general and specific plans.

The annexation is consistent with the City’s General Plan and Policies. The City has approved the Specific Plan, Development Plan, Tentative Tract Map and two Environmental Impact Reports.

(h) The Sphere of Influence of any local agency which may be applicable to the

proposal being reviewed.

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The proposal site is within the City of Pismo Beach’s current Sphere of Influence which was updated in 2002. The proposal does not conflict with the Sphere of Influence of any other jurisdiction.

(i) The comments of any affected local agency or other public agency.

Comments regarding this proposal have been received from the following agencies: • City of Pismo Beach • City of Arroyo Grande • County of San Luis Obispo Planning Department • CalTrans • California Office of Planning and Research • San Luis Obispo County Air Pollution Control District

These responses and comment letter are found in Attachments B and C of this Staff Report.

(j) The ability of the newly formed or receiving entity to provide the services which are

the subject of the application to the area, including the sufficiency of revenues for those services following the proposed boundary change.

The City of Pismo Beach is capable of providing services to the properties. This is documented in the Specific Plan, the two previously completed EIRs, the Developers Agreement and other studies completed by the City. The property tax agreement has been approved by the City of Pismo beach and the County of San Luis Obispo.

(k) Timely availability of water supplies adequate for projected needs as specified in

Section 65352.5.

This is discussed in detail in the above sections. The City is required to document that an adequate water supply exists to serve the site prior to the annexation being finaled.

(l) The extent to which the proposal will affect a city or cities and the county in achieving

their respective fair shares of the regional housing needs as determined by the appropriate council of governments consistent with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7.

The Los Robles Del Mar Specific Plan calls for the construction of 60 affordable Senior Housing units. The required number of units called for by the General Plan is 26. The balance of the units (252) are intended to be sold at market rate prices. The Specific Plan calls for the 60 units to comply with the City’s Housing Element policy number 23 which states in part:

1. All residential projects in which the total development on the property is 20 or more units

shall be required to provide 10 percent of the total project units at a cost affordable to moderate income households plus an additional 5 percent of the total project units at a cost affordable to lower income households as defined by the most recent San Luis Obispo County regional housing affordability criteria.

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(m) Any information or comments from the landowner or owners.

Letters from the property owners are included in the Response to Comments package found in Attachment B.

(n) Any information relating to existing land use designations.

The existing land use designation in the County is Rural Lands. (o) Environmental Justice. The extent to which the proposal will promote

environmental justice. As used in this subdivision, "environmental justice" means the fair treatment of people of all races, cultures, and incomes with respect to the location of public facilities and the provision of public services.

The units are available for purchase to people of all races and cultures. It can be expected that the cost of one of the residential units would be such as to preclude lower and moderate income individuals and families. The 60 Senior Housing Units will exceed the City’s required number of affordable units as discussed above. With regard to the location of public facilities and the provision of public services, this project does not affect the fair treatment of people of all races, cultures and incomes. Facilities (pipeline and infrastructure) associated with development will be located within public roadways or on the site. The City services such as police and fire are capable of serving the site and have adequate resources to serve all residents of the City of Pismo Beach.

ATTACHMENTS Several documents are included in this Staff Report for your review and consideration.

A: Conditions of Approval

1. Prohibit Use of Aquifers

2. Limited Deep Aquifer Use

B: Response to Comments

C: Specific Plan Executive Summary

D: Plan for Services

E: Other Documents

• Petition from Rural Area

• LRDM Specific Plan Executive Summary