REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Conservation Easement in Lieu of Fees at the Regional Wastewater Facility (RWF) and a Class 25 Categorical Exemption Under CEQA
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
BACKGROUND
Santa Clara is a co-owner of the San José-Santa Clara Regional Wastewater Facility (RWF), which treats wastewater for the two cities, along with other tributary agencies. The RWF is undergoing a series of capital improvements which Santa Clara pays a portion of on an annual basis. San José is the administrator of the facility, but as a co-owner, Santa Clara must sign on to agreements regarding land and facilities at the site.
The Santa Clara Valley Habitat Agency (SCVHA) furthers protection of endangered species in the region by acquiring and managing lands to mitigate development and project impacts to those species. It was determined that land at the RWF was supporting the habitat of the Western Burrowing Owl, a Federal and State species of concern. As part of the Santa Clara Valley Habitat Conservation Plan (HCP), these lands would require the payment of development impact fees to SCVHA, or the dedication of wildlife habitat, as the capital projects at the RWF were determined to have the possibility to disrupt the existing habitat.
DISCUSSION
In 2016, San José submitted a letter of intent (Attachment 3) to SCVHA stating its intention to designate approximately 72 acres belonging to the RWF as four Capital Improvement Program projects were known to be subject to the HCP requirement to either pay fees or designate habitat. The long-term intention was to have the entire 201 acres of owl habitat covered by a conservation easement and account for all projects at the RWF that would be included in the land in-lieu arrangement with the remaining land. The letter also discussed the transfer of habitat management activities and costs to the SCVHA which was later settled in a management agreement.
On December 20, 2021, the City of San Jose submitted a new letter of intent (Attachment 4) to SCVHA that replaced the 2016 letter of intent. It updated the easement acreage and land in-lieu fees of the proposed Conservation Agreement to include the New Headworks Project as the fifth covered project and designate the 201 acres. The agreement on which staff seeks action would be an approval of this designation. The Treatment Plant Advisory Committee (TPAC) recommended approval of this agreement on November 21, 2022. The TPAC recommendation will be included in the January 10, 2023 City of San Jose Council meeting agenda.
The proposed agreement with SCVHA establishes an approximate 201-acre conservation easement to protect the Western Burrowing Owl Habitat at the RWF as land in-lieu of paying development fees of almost $3.5 million.
ENVIRONMENTAL REVIEW
The action being considered is categorically exempt from formal environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15325(a) (Class 25 - “Transfers of Ownership in Land to Preserve Existing Natural Conditions and Historical Resources”), as the action consists of the transfers of ownership of interests in land in order to preserve animal habitats.
FISCAL IMPACT
This action has no fiscal impact beyond administrative costs.
COORDINATION
The report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt Class 25 Categorical Exemption Under CEQA Guidelines section 15325(a)
2. Approve the Agreement for Conservation Easement in Lieu of Fees at the Regional Wastewater Facility (RWF)
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Proposed Agreement with SCVHA and the City of San José establishing a habitat conservation easement in lieu of fees to protect the Western Burrowing Owl
2. Map of the Western Burrowing Owl Habitat at the RWF
3. 2016 Letter of Intent Western Burrowing Owl Conservation Easement
4. 2021 Letter of Intent Western Burrowing Owl Conservation Easement