Mitigated Negative Declaration PROJECT NAME: Otay River Restoration Project Habitat Mitigation and Monitoring Plan PROJECT LOCATION: Otay River Valley ASSESSOR’S PARCEL NO.: APNs: 644-090-04 (Mitigation Site) Portions of 647-130-00, 647-130-01, 647-130-02, 647-130- 07, 647-130-08, 647-130-10, 647-130-12, and 644-100-01-9 (Weed Treatment Activities to protect Restoration Site) PROJECT APPLICANT: HomeFed Otay Land II, LLC CASE NO.: IS-15-006 DATE OF DRAFT DOCUMENT: March 14, 2016 DATE OF FINAL DOCUMENT: TBD A. Project Setting The project site, the focus of which is a 100-acre restoration site, encompasses an approximately 300-acre parcel (mitigation site) located in and owned by the City of Chula Vista in southwestern San Diego County, California (see Attachment 1 for all figures; see Figures 1 and 2, Regional and Local Vicinity Maps). The project site also includes portions of seven additional parcels upstream owned by the County of San Diego, City of San Diego, and United States of America Public Domain, that would be treated for weeds to protect the restoration site (see Figure 3, Parcels Map). The site occurs within the upper portion of the Lower Otay River Watershed, approximately 1 mile downstream from Savage Dam. It is generally south and west of the Lower Otay Reservoir and surrounded by open space largely within the Multi-Species Conservation Program (MSCP) preserve system managed in partnership by the City of Chula Vista, City of San Diego, and County of San Diego. The project site is designated as Open Space Preserve by the City of Chula Vista and Open Space Conservation and Recreation by the County of San Diego. The existing land uses surrounding the site are as follows. North: Chula Vista Water Treatment Plan and Open Space South: Mostly Open Space with the exception of a cluster of development (Otay Water District Roll Reservoir, George F. Bailey Detention Facility, City of San Diego’s Otay Treatment Plant, and Richard J. Donovan Correctional Facility) East: Mostly Open Space with the exception of a cluster of development (Otay Water District Roll Reservoir, George F. Bailey Detention Facility, and City of San Diego’s Otay Treatment Plant) West: Open Space and River Valley 1 B. Project Description The proposed project involves implementation of the Otay River Restoration Project Habitat Mitigation and Monitoring Plan (HMMP) to guide the restoration and enhancement of approximately 100 acres of aquatic and terrestrial habitat in the Otay River Valley. The HMMP would be used to mitigate unavoidable impacts on aquatic and terrestrial resources associated with the implementation of the Otay Ranch University Villages currently under review by regulatory agencies (Village 3 and Village 8 West), located adjacent to and west of the project site. In addition, a mitigation bank would be developed through the U.S. Army Corps of Engineers (USACE) and other regulatory agencies to secure the restoration acreage for projects within the watershed and approved service area, including the remaining Otay Ranch University Villages, the City of Chula Vista University Project, and other private and public projects if approved by the regulatory agencies. The purpose of the HMMP is to address impacts on waters of the United States and State associated with the Village 3 and Village 8 West project, including wetlands and riparian habitat regulated by the federal Clean Water Act (CWA), the California Fish and Game Code, and California’s Porter-Cologne Water Quality Control Act (Porter-Cologne Act). In this regard, the HMMP supports applications to discharge dredged or fill material into waters of the United States (e.g., a USACE 404 permit and a Regional Water Quality Control Board [RWQCB] 401 water quality certification) and to obstruct the natural flow of a river, stream, or lake, including changes to sediment and deposition of debris (e.g., a California Department of Fish and Wildlife [CDFW] 1602 streambed alteration agreement). The project proponent, Otay Land Company (OLC), and its contractors would be responsible for installation, maintenance, and monitoring of restoration project activities. It is currently anticipated that the project would be implemented in several phases, the first beginning in Fall 2016. Implementation of the proposed project would occur between September and February (outside the breeding season for nesting birds protected under the Migratory Bird Treaty Act [MBTA]) of each year and would be followed by the completion of a minimum 5-year maintenance, monitoring, and reporting phase. The HMMP includes a detailed description of the project design, project implementation, and project maintenance and monitoring activities associated with the proposed project. Figure 4 depicts the proposed phases for the restoration project. Figure 5 illustrates the Conceptual Plan for the parcel proposed for restoration. The project site and surrounding area are included within the City of Chula Vista General Plan, the Otay Ranch General Development and Resource Management Plan, the County of San Diego MSCP, City of Chula Vista MSCP Subarea Plan, Otay River Watershed Management Plan, the Draft Otay River Watershed Special Area Management Plan, City of Chula Vista Greenbelt Master Plan, and the Otay Valley Regional Park (OVRP) Concept Plan and Trails Guidelines. In addition, the proposed project and the HMMP have been developed in compliance with the U.S. Environmental Protection Agency and USACE Compensatory Mitigation for Losses of Aquatic Resources: Final Rule (40 Code of Federal regulations [CFR] Part 230 and 33 CFR Parts 325 and 332) and the USACE Final 2015 Regional Compensatory Mitigation and Monitoring Guidelines for South Pacific Division. 2 The project site is designated as Open Space Preserve by the City of Chula Vista General Plan and Open Space (Conservation) and Open Space (Recreation) by the San Diego County General Plan. The project site is zoned Residential by the City of Chula Vista’s Zoning Code and Agriculture and Special Purpose by the San Diego County Zoning Code. Figures 6 and 7 show the land use and zoning designations for the project site. The City of Chula Vista is the lead agency under the California Environmental Quality Act (CEQA) and responsible for permitting the project; USACE, CDFW, and RWQCB have some approval and/or discretionary authority over the project. Table 1, below, indicates the discretionary approvals that would be required to implement the project. Table 1. Discretionary Approvals Required Agency Role Permit/Approval City of Chula Lead Agency • Mitigated Negative Declaration Adoption Vista • Mitigation Monitoring and Reporting Program (MMRP) Adoption • HMMP Approval • Finance Plan Approval (including retaining the appropriate qualified personnel, as described in the proposed plan [e.g., landscape installation/maintenance contractor, restoration ecologist]). • Grading Permit • Habitat Loss and Incidental Take Approval U.S. Army Corps Federal Agency with • 404 Permit of Engineers Permitting Authority U.S. Fish and Federal Agency with • Section 7 Informal Consultation Letter Wildlife Service Permitting Authority California Trustee/Responsible • 1602 Streambed Alteration Agreement Department of Agency Fish and Wildlife Regional Water Responsible Agency • 401 Water Quality Certification Quality Control Board To restore the river valley, the proposed project would temporarily affect small areas of jurisdictional waters of the United States and State as well as native upland habitats, which would need to be authorized by regulatory agencies. These temporary impacts, and the project as a whole, have been evaluated by USACE in accordance with Section 404 of the CWA, the RWQCB in accordance with Section 401 of the CWA and the Porter-Cologne Act, U.S. Fish and Wildlife Service (USFWS) in accordance with Section 7 of the Endangered Species Act, and CDFW in accordance with Section 1600 of the California Fish and Game Code. The resource agencies have reviewed the proposed project in detail, visited the site on numerous occasions, and provided feedback on design and phasing. It is anticipated that USACE will authorize the proposed project through issuance of a Nationwide Permit (NWP) for unavoidable impacts associated with Otay Ranch University Village 3, conclude Section 7 and Section 106 consultation, and issue a provisional 404 permit, pending 401 certification 3 from the RWQCB. The RWQCB is also anticipating authorizing the proposed project through issuance of 401 certification for Otay Ranch University Village 3 and awaiting only the conclusion of CEQA compliance (i.e., completion of this initial study and mitigated negative declaration). CDFW has approved the proposed project as mitigation for Otay Ranch University Village 3 and issued a Streambed Alteration Agreement (SAA) for Village 3 but will also be processing a separate SAA for the proposed project. The application and fee for the project SAA have been submitted; the SAA is anticipated as soon as CEQA compliance is concluded. Trails As mentioned above, the approximately 100-acre restoration site and the larger 300-acre mitigation parcel owned by the City of Chula Vista are within a portion of the City of Chula Vista Greenbelt Master Plan boundaries and are entirely within the OVRP Concept Plan boundaries. Both of these plans identify future multi-use trails where existing dirt roads and unofficial trails1 are currently located (see Figure 8). These existing dirt roads and unofficial trails are used for a variety of purposes by the U.S. Border Patrol, San Diego Gas and Electric, City of San Diego, and Otay Water District, as well as by hikers, cyclists, and equestrians. Altogether there are approximately 5,720 linear feet of the future Greenbelt Master Plan trail and approximately 9,319 linear feet of OVRP trails that occur on the project site. To prevent the restoration site from being disturbed by existing and future users, wood split- rail fencing would be installed at key locations. The fencing, along with signage indicating the general sensitivity of the restoration site and providing wayfinding, would help to minimize trespassing from trail users who would otherwise be unaware of the sensitivity of the habitat restoration area.