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Item 14 - Los Penasquitos Restoration ProjectJanuary 19, 2021, Item #14AGENDA RE PO RT City of Poway DATE: TO: FROM: CONTACT: SUBJECT: Summary: January 19, 2021 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services fvt Tracy Beach, Senior Civil Engineer (858) 668-4652 or tbeach@poway.org Los Penasquitos Lagoon Restoration Project CITY COUNCIL This report provides a background of stormwater regulations, presents the requirements of the Los Penasquitos Lagoon Sediment Total Maximum Daily Load (Sediment TMDL), the Los Penasquitos Lagoon Restoration Project and alternative projects to meet the requirements set forth in the Sediment TMDL. Recommended Action: It is recommended that the City Council receive the report and provide direction to staff. Discussion: Stormwater Regulatory Background The history of the City of Poway's (Poway's) stormwater program stretches back to 1948 when the Federal Water Pollution Control Act was enacted as the first major United States law to address water pollution. California enacted the state's first water protection efforts in 1969 with the Porter-Cologne Water Quality Control Act. Porter-Cologne is the cornerstone of today's water protection efforts in California and is recognized as one of the nation's strongest pieces of anti-pollution legislation. Major changes to the Federal Water Pollution Control Act were made in 1972 establishing the basic structure for regulating pollutant discharges. As amended, the law became commonly known as the Clean Water Act (CWA). The CWA was revised again in 1987 to regulate discharges of storm water associated with storm drain systems owned and operated by municipalities, also known as municipal separate storm sewer systems (MS4s). With the amendment, many municipalities throughout the United States were obligated for the first time to obtain National Pollutant Discharge Elimination System (NPDES) permits for discharges of storm water from their MS4s. In response to the CWA 1987 amendment, the San Diego Regional Water Quality Control Board (Regional Board) issued the first MS4 permit on July 16, 1990. Each subsequent revision to the federal and state water pollution laws has been more restrictive and has provided more clarification on what is considered a pollutant. For 1 of 26 January 19, 2021, Item #14example, distinctions were made between storm water (wet weather) runoff and non-storm water (dry weather) runoff. This clarification was made to prevent non-storm water runoff from being managed in the same manner as storm water runoff. The Regional Board found that non-storm water discharges resulting from over-irrigation are sources of pollutants and must be prohibited from entering the MS4. In 1996, the Los Penasquitos Lagoon (Lagoon) was placed on the CWA section 303(d) list of impaired waterbodies for sedimentation and siltation. Pursuant to the CWA, each state is required to identify impaired waters and establish a total maximum daily load (TMDL) for pollutants. A TMDL establishes the maximum amount of a pollutant allowed in a waterbody and serves as the starting point or planning tool for restoring water quality. In June 2012, the Regional Board issued the TMDL for Sedimentation in the Los Penasquitos Lagoon (Sediment TMDL). The Sediment TMDL for the Lagoon established a baseline sediment load from the 1970s, which was prior to the intense development of the watershed. Each jurisdictions' share of required sediment reduction was calculated separately by modeling the watershed and the lagoon. The total sediment load reduction target is approximately 67 percent. Poway's reduction was calculated to be 320 tons of sediment per year. The Sediment TMDL defines the required target to either mean: 1. the successful restoration of 346 acres of lagoon salt marsh habitat; or 2. to demonstrate that measures taken to reduce sediment are affecting 346 acres and will achieve lagoon salt marsh habitat restoration. In general, the Sediment TMDL requires the successful restoration of 346 acres of lagoon salt marsh habitat. This means increasing the salt marsh habitat from 262 acres (the 2010 level) by 84 acres to meet the Sediment TMDL requirements. It goes on to define the target to either mean the restoration itself, or to show that measures taken to reduce sediment are affecting 346 acres. Extensive monitoring would be required, and it could be difficult to prove that the sediment reductions are affecting 346 acres. More detail on the history of the water pollution laws, the MS4 permits, the Los Penasquitos Watershed, the Sediment TMDL, and other related items is included in Attachment A. The current MS4 permit, which is the fifth permit issued by the Regional Board, was adopted in 2013. This permit incorporated the Sediment TMDL as a part of the requirements that jurisdictions within the watershed are subject to. In this permit, the jurisdictions within the region subject to the permit, or Copermittees, were also given the responsibility of determining what will be the highest priority concerns for water quality and developing goals that can be used to measure and demonstrate progress toward addressing those priorities. In addition to the goals, the Copermittees were required to provide a schedule for achieving the goals. The measurement of progress toward achieving the goals required a better defined and more focused program of monitoring and assessment than under previous permits. This permit gave Copermittees the ability to modify the plans as additional information and data are collected from the monitoring. The current MS4 permit required establishment of the highest priority water quality concerns through development of a Water Quality Improvement Plan (WQIP) for each watershed that an agency is located within. Poway is in two watersheds, Los Penasquitos and San Dieguito. Poway staff collaborated with other Copermittees in the development of the WQIP's for each watershed. Poway entered into a memorandum of understanding (MOU) for development of each WQIP. Other agencies involved in the development of the Los Penasquitos WQIP include the Cities of San Diego and Del Mar and the County of San Diego (see Attachment B). The Final WQIP for the Los Penasquitos watershed 2 of 26 January 19, 2021, Item #14was submitted to the San Diego Regional Water Quality Control Board (Regional Board) in September of 2015 and accepted in February 2016. Poway's participation in the MOU for the WQIP development does not necessarily obligate Poway to collaboratively participate in any project listed in the WQIP. Individual MOUs are developed for each project in the WQIP that has participation by more than one Copermittee. Los Penasquitos Lagoon Restoration Project The Los Penasquitos Lagoon Restoration project (Restoration Project) is a significant regional effort created to try to meet the Sediment TMDL requirements. Since it may be difficult to prove that sediment load reductions will restore the Lagoon to have a total of 346 acres of salt marsh habitat, the Copermittees chose this project to ensure the restoration and ultimately, compliance with the Sediment TMDL. The project has been separated into two phases, as identified in Attachment C. Phase 1 of the project restores the area southwest of the railroad berm and provides guidance for restoration planned under Phase 2. Phase 2 covers the larger area of the lagoon northeast of the railroad berm and will include lessons learned from Phase 1. Phase 1 is further broken up into three sub-phases. Phase 1A includes sediment management and enhancement of the banks along the corridor where Los Penasquitos Creek and Carroll Canyon Creek converge. It also includes the reduction of upstream flood risk. Enhancement of the corridor would focus primarily on removing the large population of non-native vegetation species within the corridor. This phase also proposes sediment floodplain enhancements in three locations (Attachment D). The enhancement areas will abate sediment flows before they reach the lagoon and improve floodway management. These enhancements will expand the floodway channel width and improve channel capacity. Channel capacity is needed to better move floodwaters through Sorrento Valley while reducing sediment transport. Phase 1 B includes freshwater management. New channel alignment, side channels, and storm drain connections for freshwater are proposed as well as mosquito breeding habitat management. The proposed channel network is designed to convey dry weather freshwater flows away from the marsh plain. Under existing conditions, the disconnected channel system results in ponding of fresh and brackish water, throughout the Phase 1 area, which has resulted in a loss of salt marsh. The conceptual design for the Lagoon channel network will provide a network of channels to improve water conveyance with vegetated islands supporting marsh habitat. Attachment E provides the conceptual location and sizing of the proposed Lagoon channel network. Phase 1 C includes 23 acres of non-native grass conversion to salt marsh native vegetation. Grading at the north end of the Phase 1 project area is designed to create additional areas of salt marsh within the 23-acre area that is dominated currently by non-native grass. After completion of the Phase 1 construction, monitoring of the vegetation and habitat in the mitigation areas is scheduled for approximately three years. This time will be used to observe the Lagoon, learn from Phase 1 and update the plans for Phase 2 appropriately based on how the Lagoon and habitat react to Phase 1. Phase 2 is anticipated to include additional freshwater management and invasive plant removal in areas north of the railroad berm to Carmel Valley Road in non-tidal historical salt marsh. Restoration of the Lagoon is a significant regional effort that will rely on key partnerships and funding amongst the Copermittees in the watershed. The City of San Diego has been designated as the lead agency for the Restoration Project and has managed the planning of the project thus far. A request 3 of 26 January 19, 2021, Item #14for proposals went out in May 2019, interviews were held, and a design consultant was selected. The other Copermittees in the watershed are expected to participate in the design and construction phases for the project moving forward. Should Poway opt to participate in the Restoration Project, Poway will be required to enter into a formal MOU and to cost share the project with the other Copermittees. The draft MOU for Phase 1 has been distributed to the Copermittees for review, approval, and signature. There has been much deliberation amongst the Copermittees regarding the cost share breakdown and the MOU language itself. Because of this, the MOU has not been executed yet and Poway has not yet agreed to participate. A separate MOU will be executed for all future phases including monitoring, Phase 2 design and construction, and long-term maintenance. Each of these phases will be negotiated separately. Once the Phase 1 MOU is executed by all Copermittees, design will proceed and is anticipated to last 33 months. The City of San Diego's original timeline projected the design to begin in early 2020 with design completion by September 2022. Construction of Phase 1 was estimated to commence in 2023 and extend through 2026. The monitoring phase was estimated to last for three years following construction completion. This timeline is extended due to delays with the MOU execution. During the implementation of Phase 1, planning of Phase 2 would commence. Implementation of Phase 2 was anticipated to begin in 2029, with an unknown length of time for completion. Final implementation and compliance with the Sediment TMDL must be achieved by December 31, 2034. Prior to the issuance of the request for proposals for design, the City of San Diego updated the projected costs for Phase 1. The total current estimate for Phase 1 construction is $35,225,451.82. The cost share breakdown for the Copermittees was calculated based on the sediment load allocation assigned to each jurisdiction through the model used in development of the WQIP. Based on this, Poway's contribution is 19.65 percent of the total, which equals $6,728,061.30. This breakdown included the City of Del Mar, City of San Diego, the County of San Diego, and Caltrans. Caltrans is not currently subject to the same permit as the other Copermittees but has indicated they will make a flat payment in 2024 for their portion of the project. City staff has questioned Poway's contribution percentage numerous times throughout the review of the draft MOU. Poway staff believes that the WQIP model used to determine the sediment loading failed to properly incorporate sediment reductions done through on-going channel maintenance within Poway. Recently an analysis was done on Poway's rigorous channel cleaning program. The channel cleaning program is permitted through the resource agencies and includes removal of sediment in Poway's concrete channels. This information is reported with the WQIP annual reports but does not appear to have been included in the original analysis to the same degree. The WQIP model included an overall average for removal of multiple types of pollutants based upon an analysis completed by the City of San Diego in 2014. The percentage load for pollutant removal used was 10.1 %. The WQIP identifies Poway as having 615 tons of sediment load annually. Per Poway's channel cleaning program reporting, the lowest volume of sediment removal reported in any one year since 2010 is 196 tons. The volume of removal has varied over the years which is likely a result of volume of rain and staff availability to run the program. Incorporating the additional sediment removal would lower Poway's sediment loading. The extent to which the loading is lowered would depend on whether any other Copermittee has a robust channel cleaning program similar to Poway. Poway staff discussed this discrepancy with the City of San Diego. Since the WQIP model is part of the currently approved WQIP, it is not likely that revisions could be made in a timely manner without significant delays to the Restoration project. The City of San Diego is amenable to adding language to the MOU that would allow for revising the cost share allocation in the future, should the sediment load methodology be updated in the WQIP and approved by the Regional Board. Any adjustments to sediment load methodology would be applied to all Copermittees. It is highly likely that the other 4 of 26 January 19, 2021, Item #14Copermittees will continue on with the project and Phase 1 MOU without Poway should the City Council decide not to participate. Potential Alternative Options As stated earlier, Poway's goal is reducing 320 tons of sediment per year. The WQIP lists the Restoration Project as one of the options that could be implemented to meet sediment reduction goals. Given the way the Sediment TMDL was written, the Restoration Project can be considered to satisfy the Sediment TMDL because it physically restores the lagoon salt marsh. The WQIP included an alternative option to try and meet the Sediment TMDL requirement by demonstrating measures taken to reduce sediment are affecting 346 acres and will achieve lagoon salt marsh habitat restoration. Poway staff reached out to the Regional Board for clarification on the alternative option. Based upon correspondence received by the Regional Board on October 12, 2020, see Attachment F, if Poway does not participate in the Restoration Project, a revised WQIP would need to be submitted and approved by the Regional Board. The revised WQIP would need to include Poway's individual implementation and a specific linkage analysis showing Poway's sediment load reductions contribute to the overall restoration of the Lagoon and equate to the City's proportional responsibility. The specific analysis would need to be verified through monitoring to demonstrate that Poway is not exceeding its proportional responsibility of total sediment load in the watershed. Part of the Restoration Project scope of work includes removal of sediment that has been deposited over time allowing for saltmarsh to take over the inundated area. Given that the Lagoon is located outside of Poway's jurisdiction and that the other Copermittees will likely proceed with the Restoration Project with or without Poway, it may be difficult if not impossible to prove that Poway's reduction of sediment load alone is physically restoring the Lagoon. It is unknown what the cost of an update to the WQIP and the associated specific analysis would be but would likely be several hundred thousand dollars. All costs would be borne by Poway since this would be part of Poway's TMDL compliance and there is no guarantee that this alternative option would be in compliance with the TMDL. It is worth noting that by choosing this alternative option, Poway may be found in non-compliance with interim goals set forth in the TMDL. It would take a significant amount of time to develop the WQIP update and associated specific analysis along with gaining approval of these documents by the Regional Board. It is unknown if the Regional Board would enforce fines related to non-compliance with interim goals. Conclusion As previously stated, the Sediment TMDL defines the required target to either mean: 1. the successful restoration of 346 acres of lagoon salt marsh habitat; or 2. to demonstrate that measures taken to reduce sediment are affecting 346 acres and will achieve lagoon salt marsh habitat restoration. The Restoration Project solely focuses on the restoration of the Lagoon's salt marsh, habitat and vegetation and is expected to ensure compliance with the Sediment TMDL completely because it will physically restore the required salt marsh habitat. However, it does not guarantee the reduction of sediment needed to prevent future pollution and water quality exceedances. The project is a costly venture for Poway with current estimates only for Phase 1 of the project. No estimates have been created for the Monitoring Phase, for Phase 2, or for maintenance in perpetuity. While staff research and analyses have shown that Poway can meet the sediment load reduction, this does not ensure restoration of the Lagoon salt marsh by 2035 as required and therefore, does not 5 of 26 January 19, 2021, Item #14ensure compliance. The Sediment TMDL also includes interim goals for achieving the Lagoon restoration. Non-compliance with the Sediment TMDL and the interim goals could be subject to fines of $10,000 per day from the Regional Board and potentially $52,000 per day from the United States Environmental Protection Agency. Staff has been in discussions with the Regional Board to clarify whether compliance with the Sediment TMDL is a watershed-wide requirement or if it will be assessed per jurisdiction. Poway is not required to participate in the Restoration project, however non-participation would mean that Poway will need to demonstrate that sediment reductions are affecting Poway's proportional share of the 346 acres and will still result in restoration of lagoon salt marsh habitat. Providing proof of the restoration may prove difficult to do especially with the other Copermittees proceeding with the Lagoon Restoration. Ultimately, there are three options related to this project for the City Council to consider. The City Council could direct staff to: 1. Participate in the Restoration Project at the full level currently proposed (approximately $6.7M) and authorize the City Managerto execute the Phase 1 MOU upon approval of the final version, or 2. Decline participation in the Restoration Project completely and continue to seek an alternative pathway to compliance, or 3. Proceed with MOU negotiations with the Copermittees, with consideration to participate in the Restoration Project, subject to City Council approval of the final MOU at a future City Council meeting. Selection of Option 2 would require Poway to prove that any alternatives selected contribute to the restoration of Lagoon salt marsh habitat. Proving this could be extremely difficult to do given that the other Copermittees will likely pursue the Lagoon Restoration with or without Poway's participation. Poway's contribution would not be readily distinguishable with the other Copermittees completing physical improvements of the Lagoon. It is also unclear how much Option 2 would cost, and staff does not know if the required specific linkage analysis would achieve compliance and be approved by the Regional Board. It should be noted that if the Regional Board determines that Poway is not in compliance with the Sediment TMDL by lack of participation in the Restoration Project, Poway could be subject to significant fines as previously mentioned. Environmental Review: The action of determining participation in the Los Penasquitos Lagoon Restoration project is not subject to California Environmental Quality Act (CEQA) review. The Los Penasquitos Lagoon Restoration project is subject to CEQA review. This review is being completed by the City of San Diego. Fiscal Impact: The future fiscal impact will depend on the direction provided by the City Council. Should the City Council direct staff to participate in the Restoration Project, Poway's currently proposed share of Phase 1 would be approximately $6.73 million or 19.1 % of $35.23 million. This has the potential of being broken down into annual payments. Attachment G is a draft cost share breakdown provided by the City of San Diego. The first several years would be based upon Poway's contribution to the cost of the project design, which is approximately $1.59 million. The first payment 6 of 26 January 19, 2021, Item #14could be due immediately after execution of the MOU and would likely include the amounts shown in the cost share breakdown as due in FY 2020 and FY 2021 for a total of $787,708.51. The remaining approximately $5.13 million would be paid via annual payments during the construction, which is currently anticipated to begin in 2023. Should the City Council direct staff to seek alternative compliance pathways, the fiscal impact would depend upon the alternative chosen. Even prior to the COVID-19 pandemic, the City did not have funding identified for this project. Should the City Council direct staff to participate in Phase 1 of the Restoration Project, General Fund unassigned fund balance could be used to fund a portion of the City's share, but alternative financing avenues, such as debt, would have to be considered. Public Notification: None. Attachments: A. Los Penasquitos History and Permit Details B. Los Penasquitos Watershed Map C. Los Penasquitos Lagoon Restoration Project Overview D. Los Penasquitos Lagoon Restoration Project Phase 1 E. Los Penasquitos Lagoon Restoration Project Phase 1 B F. San Diego Regional Water Quality Control Board Letter dated October 12, 2020 G. Draft Cost Share Breakdown Reviewed/ Approved By: Wendy Kaserman Assistant City Manager 7 of 26 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~cttk? City Manager January 19, 2021, Item #14LOS PENASQUITOS HISTORY AND PERMIT DETAILS Stormwater Regulatory Background The Federal Water Pollution Control Act of 1948 was the first major United States law to address water pollution. Growing public awareness and concern for controlling water pollution led to sweeping amendments in 1972. As amended in 1972, the law became commonly known as the Clean Water Act (CWA). The 1972 amendments established the basic structure for regulating pollutant discharges into the waters of the United States. It gave the Environmental Protection Agency (EPA) the authority to implement pollution control programs and made it unlawful for any person to discharge any pollutant from a point source into navigable waters, unless a permit was obtained under its provisions. It also required the states or the U.S. EPA to set standards for surface water quality. In 1969 the California State Legislature enacted the Porter-Cologne Water Quality Control Act, the cornerstone of today's water protection efforts in California. Porter-Cologne was recognized as one of the nation's strongest pieces of anti-pollution legislation. Through it, the State Water Resource Control Board (State Water Board) and the nine Regional Water Quality Control were established as the responsible agencies for day-to-day implementation of the law. Porter-Cologne required each regional board to establish water quality standards for each waterbody within its region. A "Water Quality Control Plan" or "Basin Plan" establishes the waters within a specified area for all of the following: 1) beneficial uses to be protected; 2) water quality objectives to reasonably protect beneficial uses and; 3) a program of implementation needed for achieving water quality objectives. Waterbodies that do not meet water quality standards are considered impaired. The new state law was so influential that Congressional authors used sections of Porter-Cologne as the bases of the CWA amendment of 1972, mentioned above. The CWA was amended again in 1987 to address and regulate discharges of storm water associated with conveyance systems owned and operated by municipalities, also known as municipal separate storm sewer systems (MS4s). With the amendment, many municipalities throughout the United States were obligated for the first time to obtain National Pollutant Discharge Elimination System (NPDES) permits for discharges of storm water from their MS4s. In response to the CWA 1987 amendment, the San Diego Regional Water Quality Control Board (Regional Board) issued the first MS4 permit on July 16, 1990. This permit required the jurisdictions within the region, or Copermittees, to develop and implement runoff management programs but provided little specificity about what was required to be included or achieved by those programs. The flexibility provided in the first permit term was generally continued through the second permit term. The combination of the lack of specificity in the first and second permit terms, a general lack of meaningful action by the Copermittees, and a general lack of enforcement by the Regional Board during the first ten years of the storm water program, resulted in few significant steps towards achieving improvements in the quality of receiving waters or storm water discharges from the MS4s. From 2001, the regulatory approach incorporated into the third permit term was a significant departure from the regulatory approach thus far. The third permit term issued by the Regional Board included more detailed requirements that outlined the minimum level of implementation required for the Copermittees' programs to meet the standard for storm water and introduced requirements for developing and implementing watershed-based programs. It required Copermittees to comply with water quality standards based on discharge prohibitions and receiving water limitations through 8 of 26 ATTACHMENT A January 19, 2021, Item #14timely implementation of control measures and other actions to reduce pollutants in discharges. This permit was the first time to allow Copermittees to use an iterative approach to achieving compliance with water quality standards that involved ongoing assessments and revisions. The third permit was subsequently challenged in the Superior Court of the State of California and the Court of Appeal. The Court of Appeal found that the approach of the third permit to regulating discharges into the MS4 was appropriate. The State of California Supreme Court denied a review sought by the Building Industry Association in March 2005. The fourth permit was issued to the Copermittees of San Diego County in January 2007. It continued to include more detailed requirements to be implemented by each Copermittee'sJurisdictional Runoff Management Program URMP). The permit included requirements to further emphasize a watershed management approach and for more coordination amongJRMPs. It also included more requirements for assessing the effectiveness of the programs being implemented by the Copermittees. The fourth permit was the first to make a distinction between storm water (wet weather) runoff and non-storm water (dry weather) runoff. This clarification was made to prevent any potential misunderstanding that regulation under the MS4 permit is limited only to urbanized areas and to prevent non-storm water runoff from being managed in the same manner as storm water runoff. Finally, the fourth permit stated that non-storm water discharges to the MS4 from over application of irrigation water are sources of pollutants. The Regional Board found that non-storm water discharges resulting from over-irrigation must be prohibited from entering the MS4 in accordance with the requirements of the CWA. The fifth permit, our current permit, was adopted in 2013 and shifted the focus of the permit requirements from a minimum level of actions by the Copermittees to identifying outcomes to be achieved by those actions. Implementation has been based on decisions Copermittees have made in accordance with what they have identified as the highest priority water quality conditions. In this permit, the Copermittees were given the responsibility of identifying the highest priority water quality conditions and developing goals that can be used to measure and demonstrate progress or improvements toward addressing those priorities. In addition to the goals, the Copermittees were required to provide a schedule for achieving the goals for those highest priorities. The measurement of progress toward achieving the goals for those highest priorities required a better defined and more focused program of monitoring and assessment than under previous permits. The Copermittees had the ability to identify available resources and develop and implement long term plans that can organize, collect, and use those resources in the most strategically advantageous and efficient manner possible. This permit gives Copermittees the ability to modify the plans as additional information and data are collected from the monitoring and assessment programs. Lastly, the Copermittees were able to identify and utilize resources available from other agencies and entities to further augment and enhance JRMPs and/or to collectively work with those other agencies and entities toward achieving a stated desired outcome. Water Quality Improvement Plan The mechanism required through the permit to establish the highest priority water quality conditions and develop goals is the Water Quality Improvement Plan (WQIP). The permit requires agencies to collaborate on a WQIP for each watershed in which they are located. The City of Poway (Poway) is located within two watersheds, the Los Penasquitos and San Dieguito Watershed Management Areas. Poway staff participated in the development of the WQIP's for each watershed. Other agencies involved in the development of the Los Penasquitos WQIP include the Cities of San Diego and Del Mar 9 of 26 January 19, 2021, Item #14and the County of San Diego. Development of the WQIP was a process that took over a year to complete. The Copermittees of the Los Penasquitos watershed submitted the Final WQIP to the San Diego Water Board in September 2015 and it was accepted in February 2016. Los Penasquitos Watershed The Los Penasquitos Watershed Management Area (WMA) encompasses 94 square miles of undeveloped open spaces and urban areas, draining ultimately into the Los Penasquitos Lagoon (Lagoon) through three main waterways, before meeting with the Pacific Ocean. It extends from the Lagoon to beyond Highway 67 and includes several City of San Diego communities, such as Torrey Pines, Carmel Valley, Sorrento Valley, Mira Mesa, Rancho Penasquitos, Carmel Mountain, Sabre Springs as well as the Cities of Del Mar and Poway. Small finger canyons drain into three main creeks (Carmel Valley Creek, Los Penasquitos Creek, and Carroll Canyon Creek) that lead into the Lagoon, see Attachment B. Currently, about forty-six percent (46%) of the WMA remains undeveloped or has otherwise been dedicated to open space and recreational lands. The remaining fifty-four percent (54%) of the land area is being utilized as residential areas (27%), roadways and transportation (12%), and other uses (15%). The remaining 'other' 15% includes industrial, office, commercial, and agricultural land uses. According to 201 O U.S. Census data, the Los Penasquitos WMA is estimated to be home to approximately 260,000 residents. The population is most dense in the more developed urban and suburban regions of the lower watershed, which bears a disproportionate share of the pollution burden when compared to portions of the watershed upstream. Los Penasquitos Lagoon The Lagoon is currently comprised of over 200 acres of coastal salt marsh. This type of habitat has been reduced to an estimated 25 percent of its historic range in California. Urban development has altered the environmental processes that support wetland habitats, specifically coastal salt marsh in the Lagoon, in three ways: 1) increase in the volume and frequency of freshwater input, 2) increase in sediment deposition, and 3) decrease in the volume of water in the estuary between the mean high tide and mean low tide. Sources of sediment to the Lagoon include erosion of canyon banks, bluffs, scouring stream banks, and tidal influx. Some of these processes are exacerbated by disturbances such as land development within the watershed. Land development transforms the natural landscape by exposing sediment and converting pervious surfaces to impervious surfaces. This increases the volume and velocity of runoff resulting in scouring of sediment. Sediment loads are transported downstream to the Lagoon during storm events causing deposits on the salt flats and in Lagoon channels. These sediment deposits have gradually built-up over the years due to increased sediment loading and inadequate flushing, which directly and indirectly affect Lagoon functions and salt marsh characteristics. These factors have reduced tidal mixing within the Lagoon channels, degraded the salt marsh, and resulted in the net loss of salt marsh vegetation within the Lagoon. It has increased the vulnerability of surrounding urban and industrial development to flooding, increased turbidity associated with siltation in Lagoon channels, and constricted wildlife corridors. Reducing watershed sediment loads is a necessary component for restoring and providing long-term protection of the Lagoon's beneficial uses. Deposition of watershed sediment contributes to elevation 10 of 26 January 19, 2021, Item #14increases within the Lagoon, leading to an increase in height relative to mean sea level. Elevation is a critical variable that determines the productivity and stability of salt marshes. The long-term existence of the salt marsh depends on the success of the dominant plants and their close relationship to sediment supply, sea level change, and tidal range. Sediment Total Maximum Daily Load Waterbodies that do not meet water quality standards are considered impaired. Pursuant to section 303(d) of the CWA, each state is required to identify impaired waters and establish a total maximum daily load (TMDL) at a level necessary to implement water quality standards. In 1996 the Lagoon was placed on the CWA section 303(d) list of impaired waterbodies for sedimentation and siltation. This required the development of a TMDL. In June 2012, the Regional Board issued the TMDL for Sedimentation in the Los Penasquitos Lagoon (Sediment TMDL). It should be noted that the watershed is also listed and impaired with a Bacteria TMDL. The purpose of a TMDL is to restore an impaired waterbody to water quality conditions under which water quality standards can once again be attained. This is done by establishing and implementing a TMDL for the impairing pollutant. A TMDL is both a calculation of the maximum level for each pollutant that the impaired waterbody can handle and still maintain water quality standards, and an implementation plan to guide actions necessary to clean up the waterbody and restore water quality standards. One or more numeric targets must be selected to calculate a TMDL for an impaired waterbody. Attainment of the selected numeric targets in the impaired waterbody represents attainment of applicable water quality standards in the waterbody. In other words, when the numeric targets are met, the TMDL should be met, and water quality objectives should be met. While it is the collective responsibility of all entities (public or private) in the Los Penasquitos Watershed to reduce their contribution of sediment pollution, the drainage system owned by the various cities and counties, also known as the municipal separate storm sewer system (MS4), collects and drains virtually the entire watershed. As such, the MS4 Copermittees are recognized as the primary source of sediment to the Lagoon. Additionally, the Copermittees have a responsibility to inspect other responsible parties, such as construction sites, for storm water Best Management Practice (BMP) compliance. The Sediment TMDL expects the Copermittees to assume the lead role in coordinating and carrying out all responsible party actions and compliance. The Sediment TMDL was the first TMDL in the San Diego region to be developed by a third party. A third-party stakeholder group was brought together to develop the technical analysis portion of the Sediment TMDL. This portion of the Sediment TMDL was developed through close collaboration between the municipalities within the Los Penasquitos Watershed (the City of San Diego, San Diego County, City of Del Mar and the City of Poway), the California Department ofTransportation (Caltrans), San Diego Coastkeeper, California State Parks, the Los Penasquitos Lagoon Foundation, the U.S. EPA, and representatives from the Regional Board. The analysis designated the early 1970s as a time when the Lagoon received relatively natural background loads of sediment from all sources and was likely attaining the sediment water quality objective. Using land-use coverage and Lagoon mapping, a "reference condition" was developed to establish watershed and Lagoon conditions present during the 1970s. The Sediment TMDL requires Copermittees to implement Best Management Practices (BMPs) to reduce the current sediment loading rate from the watershed to the level of sediment loading found 11 of 26 January 19, 2021, Item #14in 1973. The 1970s time period, which was prior to the intense development of the watershed, was identified during the Sediment TMDL development period as the time when the sediment water quality standard was met. The Sediment TMDL's sediment load reduction targets are set for all contributing MS4s as a group; they do not determine each jurisdiction's share of required load reductions. The maximum load of sediment that the Lagoon can receive from all sources and still meet the sediment water quality objective is 12,360 tons per year. A 67% load reduction (from the year 2000 to the historical mid 1970s load) was assigned to the responsible parties, lowering the allowable sediment load to 2,580 tons per year. The Sediment TMDL includes a numeric target for the Lagoon, which is expressed as "an increasing trend in the total area of tidal and non-tidal salt marsh toward 346 acres." This target acreage represents 80% of the total acreage of tidal and non-tidal salt marsh present in 1973. As of the year 2010, 262 acres of tidal salt marsh and non-tidal salt marsh were present in the Lagoon. The Sediment TMDL continues to define the numeric target to either mean: 1) the successful restoration of 80% of the 1973 acreage of lagoon salt marsh habitat (346 acres), or 2) to demonstrate that measures taken to reduce sediment are affecting 346 acres with continuous monitoring to ensure 80% target achievement. As required by law, the Sediment TMDL does not prescribe specific BMPs that must be implemented to reduce sediment and meet the Lagoon target. The responsible parties must select specific BMPs and locations for BMPs to meet the Sediment TMDL targets. The Sediment TMDL identifies the following four categories of BMPs: 1) preservation and restoration, 2) education and outreach, 3) retrofitting, new development and site management, and 4) monitoring. The Sediment TMDL states that Responsible Parties must develop a plan as a whole watershed called a Comprehensive Load Reduction Plan (CLRP) that will specify how they will comply with the required pollutant reductions and meet the lagoon numeric target in the Sediment TMDL. It also states that all responsible parties are responsible for reducing their sediment loads to the receiving waterbody or demonstrating that their discharges are not exceeding the pollutant allocation. Monitoring must be conducted to assess BMP effectiveness and progress towards achieving the pollutant load reductions in accordance with the compliance schedule contained in the Sediment TMDL. Full implementation of the Sediment TMDL must be completed within 20 years from the effective date of adoption (FY 2035). The implementation plan also includes an adaptive management approach. This approach allows the Lagoon to make progress toward attaining water quality standards while responsible parties improve their understanding of the system through research and observation of how the Lagoon responds to implemented BMPs. In addition to watershed area sediment load reduction, the Sediment TMDL suggests two alternative measures that would contribute to an increase in salt marsh habitat: 1) reduction of freshwater discharges, and 2) Lagoon restoration. 12 of 26 January 19, 2021, Item #14Comprehensive Load Reduction Plan The CLRP was a joint effort amongst all the Copermittees of the watershed. It was prepared and submitted to the Regional Board as a part of the WQIP in 2015. Based on watershed modeling, each Copermittee developed their own load reduction goals. Each jurisdiction's goal was based on the jurisdiction's proportional share of the watershed area. The model was used to calculate existing and historical sediment contributions to the Lagoon from the Los Penasquitos watershed. This was used for the total allowable pollutant allocation assigned to the responsible parties and the pollutant allocation assigned to the ocean. A receiving water model was used to simulate the movement of flows and the characteristics of sediment movement within the Lagoon. The modeling was based on water year 2003, which is the October 2002 through April 2003 wet season. Based on a review of the TMDLs and other water quality regulations, the two highest priority water quality conditions established in the WQIP and CLRP are the impairment of beneficial uses (i.e. recreation, wildlife habitat, etc) in the Lagoon and the potential impairment by bacteria of beneficial uses along the Pacific Ocean Shoreline at Torrey Pines State Beach at Del Mar. To address the highest priority water quality conditions within the Los Penasquitos WMA, the WQIP includes the following goals, strategies, and schedules to improve water quality for the watershed as a whole: • Maintain water quality in the Los Penasquitos WMA and subwatersheds to protect creeks and beaches from pollution. • Reduce bacteria levels at the Pacific Shoreline near Torrey Pines State Beach (By Fiscal FY 2021 for dry weather and by FY 2031 for wet weather). • Reduce sediment inputs and freshwater discharges to the Lagoon by FY 2035, to allow significant restoration of the Lagoon. By 2020: • Develop a comprehensive restoration plan for the Lagoon that identifies schedules and potential funding resources to accomplish that effort. By 2022: • Ensure that new infrastructure projects in public rights-of-way throughout the watershed are constructed using best available "Green Infrastructure" techniques so they better intercept, capture and control pollutants. • Construct other structural BMPs as needed and as possible within Poway, including a constructed wetland and/or detention basin that will capture and slow storm water flows, helping to remove transported pollutants and sediment. • Begin construction and regular maintenance of bioretention facilities throughout the City of San Diego portions of the WMA to capture and infiltrate storm water flows so that pollutants can be filtered out as water reenters local aquifers. 13 of 26 January 19, 2021, Item #14By 2035: • Coordinate with WMA partners to complete restoration of 346 acres of habitat within the Lagoon. Responsible agencies must meet the wet weather Sediment TMDL targets within 20 years of adoption (FY 2035). Responsible agencies must meet the wet weather Bacteria TMDL targets within 20 years of adoption (FY 2031) and dry weather targets within 10 years (FY 2021 ). Within the Los Penasquitos WMA, the Sediment TMDL dictates the sediment goals that are applicable during wet weather. The Bacteria TMDL is the driver for bacteria goals, which are applicable during both dry and wet weather. WQIP goals may be met 1) in the receiving water (restoring salt marsh habitat in the Lagoon), 2) in MS4s discharges by demonstrating that the MS4 is not causing or contributing to receiving water exceedances, or 3) by implementing an approved WQIP that used a watershed model or other analysis to identify BMPs required to achieve compliance with the final receiving water goals. Poway has multiple options for complying with the WQIP and the TMDL requirements. As stated in the WQIP, Poway's compliance pathways to achieve the wet weather sediment final numeric goals (by FY 2035) are listed below. Only one goal must be met by FY 2035 to comply with the WQIP and Sediment TMDL. • Lagoon Restoration o As defined by the Sediment TMDL this can either mean: ■ Successful restoration of 80% of the 1973 acreage of Lagoon salt marsh habitat (346 acres); or ■ Demonstration that measures taken to reduce sediment are affecting 346 acres with continued monitoring to ensure 80% target achievement. • MS4 Discharges (percent sediment load reductions from MS4) 14 of 26 0 0 0 0 The percent load reduction is based on Sediment TMDL model updates completed during the development of the WQIP. It calculated the sediment loads attributed to the Responsible Agencies. During the model development, Poway staff provided data to the consultant preparing the model. Percent load reduction, rather than the mass (or tonnage) of load reduction, was selected as the WQIP numeric goal because the mass of sediment reduction is, in part, related to rainfall, which varies year by year. Percent load reduction provides a relative metric that is unaffected by wet or dry weather years. Calculation of the percent load reduction includes loading from other agencies like Caltrans (known as Phase II MS4s), general construction, and general industrial permittees within Poway's jurisdiction. The WQIP must incorporate, and Poway must implement, the BMPs or other implementation actions required to achieve the Lagoon restoration goal; and Include a compliance analysis, accepted by the Regional Board, to demonstrate that implementation of the BMPs or other implementation actions will achieve the Lagoon restoration goal; and Perform monitoring and assessments to demonstrate compliance with the Lagoon restoration goal of 346 acres. January 19, 2021, Item #14a. ro ~ "O Q) ..c V) ~ Q) ~ ro $ V) 0 -~ :::, O" V) ro C Q) 0.. 1 V) 0 .....J I • I ..... 15 of 26 ATTACHMENT 8 January 19, 2021, Item #14..li,, en 0 ..... I\) en )> --i --i )> C') :c ~ m z --i C') Los Penasquitos Lagoon Restoration Project Overview Phan 1 Construction EJ Conoepiu :11 Stagirg Concopwal Al,;c PtiaM 2 ProJtel Comp:men1, iconcepw,11 January 19, 2021, Item #14-1,, ..... 0 -4' N en )> ~ ~ )> 0 :c ~ m z ~ C • Flni>Gal<."S N<?'h St)rmdrain Pti;an 1-&lbph;i; f'"l'lil!ie 1A Prose 1B PNI~ 1C ~ Los Penasquitos Lagoon Restoration Project Phase 1 January 19, 2021, Item #14...I, 00 0 ..., "-> en )> --4 --4 )> C") :c s: m z --4 m D A N Los Penasquitos Lagoon Restoration Project Phase 1B January 19, 2021, Item #14Water Boards San Diego Regional Water Quality Control Board October 12, 2020 Mr. Chris Hazeltine City of Poway 13325 Civic Center Drive Poway, CA 92074 chazeltine@poway.org Sent Via Email Only In reply refer to/ attn: CW-794843: MGarcia Subject: Compliance with Los Penasquitos Lagoon Sediment Total Maximum Daily Load (TMDL) Requirements -Order No. R9-2013-0001, As Amended Mr. Hazeltine: The California Regional Water Quality Control Board, San Diego Region (San Diego Water Board or Board) reviewed the options available to the City of Poway for compliance with the Los Penasquitos Lagoon Sediment Total Maximum Daily Load (Sediment TMDL). The Sediment TMDL requirements and compliance options are found in provision 7 of Attachment E to Order No. R9-2013-0001 (Order). This letter clarifies the Sediment TMDL requirements and available compliance options. Consistent with the San Diego Water Board's core values of transparency and communication, this letter also articulates the Board's expectations for compliance with the Sediment TMDL requirements and follow through by the City of Poway and others on the commitments presented in the Accepted Los Penasquitos Watershed Management Area (WMA) Water Quality Improvement Plan (WQIP) dated February 2016 (Accepted WQIP). The fulfillment of commitments identified in the Accepted WQIP by the City of Poway, as well as the other Copermittees in the watershed, is an issue of vital concern to the San Diego Water Board and critical to the on-going efforts to achieve the water quality outcomes required by the Order. Although this letter specifically responds to the City of Poway's request for clarity on its options to comply with the Sediment TMDL, all Copermittees in the watershed should understand that the Board expects full compliance with the commitments in the Accepted WQIP including the implementation of a particular compliance pathway and the achievement of demonstrable water quality outcomes as soon as practicable. HENRY ABARBANEL, PH.O., CHAIR I DAVID GIBSON, EXECUTIVE OFFICER 2375 Northside Drive, Suite 100, San Diego, California 92108-2700 I www.waterboards.ca.gov/sandiego 19 of 26 ATTACHMENT F January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway - 2 -October 12, 2020 Sediment TMDL Development and Final TMDL Compliance Requirements In 2009, the San Diego Water Board initiated development of the Los Periasquitos Lagoon Sediment TMDL. This TMDL was the first third-party stakeholder driven TMDL adopted in the San Diego Region. The City of Poway was a member of the third-party stakeholder group. The stakeholder group assisted Board staff in TMDL development, technical analysis of the watershed, and decision making on the numeric targets. On June 13, 2012, the San Diego Water Board adopted Resolution No. R9-2012-0033, A Resolution Amending the Water Quality Control Plan for the San Diego Basin (9) to Incorporate the Sediment Total Maximum Daily Load for Los Peflasquitos Lagoon, and later amended the Order in 2015 to include the Sediment TMDL requirements. Provision 7 in Attachment E of the Order names the County of San Diego and the cities of San Diego, Del Mar and Poway as Responsible Copermittees for compliance with the Sediment TMDL. Pursuant to provision 7.b, the Order identifies the final Sediment TMDL compliance requirements. The Responsible Copermittees must meet the final Water Quality Based Effluent Limitations (WQBELs) by December 31, 2034. The final WQBELs provide that: (a) Discharges from the Municipal Separate Storm Sewer Systems (MS4s) must not prohibit the sustainable restoration of tidal and non-tidal salt marsh vegetation of at least 346 acres in the Los Periasquitos Lagoon; (b) Discharges from the MS4s containing pollutant loads that do not exceed 2,580 tons of sediment per wet season by December 31, 2034, will not cause or contribute to a failure of the sustainable restoration of 346 acres of tidal and non-tidal salt marsh vegetation; AND (c) The Responsible Copermittees must implement Best Management Practices (BMPs) to achieve the sustainable restoration of tidal and non-tidal salt marsh vegetation of at least 346 acres and/or the Copermittee's portion of the effluent limitation of 2,580 tons of sediment per wet season in Los Periasquitos Lagoon. Provision 7.b.(3) of the Order identifies final compliance with the Sediment TMDL WQBELs, on or after December 31, 2034, may be demonstrated through: (a) Successful restoration of 346 acres of tidal and non-tidal salt marsh in the Los Periasquitos Lagoon, OR (b) Implementation of the Los Periasquitos WQIP pursuant to the requirements in provision 7.b.(3)(b)(i) through provision 7.b.(3)(b)(v) of the Order. It is important to note that the option for implementation of the Los Periasquitos WQIP also requires the successful restoration of 346 acres of tidal and non-tidal salt marsh in the Los Periasquitos Lagoon. 20 of 26 January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway - 3 -October 12, 2020 Provision 7.b.(3)(b) of the Order allows the Responsible Copermittees to develop and implement the Los Penasquitos WQIP if: (i) The Responsible Copermittees incorporate and implement the required BMPs under the final WQBELs and/or other implementation actions to achieve compliance with the successful restoration of 346 acres of tidal and non-tidal salt marsh in the Los Penasquitos Lagoon; (ii) The Responsible Copermittees include an analysis in the WQIP, utilizing a watershed model or other watershed analytical tools, to demonstrate that the implementation of the required BMPs or other implementation actions will achieve compliance with the successful restoration of tidal and non-tidal salt marsh vegetation of at least 346 acres in the Los Penasquitos Lagoon; (iii) The results of the analysis are accepted by the San Diego Water Board as part of the WQIP; (iv) The Responsible Copermittees continue to implement the required BMPs or other implementation actions; AND (v) The Responsible Copermittees continue to perform the specific monitoring and assessments specified in Provision 7 .d to demonstrate compliance with the successful restoration of 346 acres of tidal and non-tidal salt marsh in the Los Penasquitos Lagoon. Restoration of 346 acres of tidal and non-tidal salt marsh in the Los Penasquitos Lagoon is required to meet final Sediment TMDL compliance. Since the Los Penasquitos Lagoon does not currently support 346 acres of tidal and non-tidal salt marsh, the Responsible Copermittees have planned to perform a project in the Los Penasquitos Lagoon to restore at least 84 additional acres of salt marsh vegetation. Restoration of the additional 84 acres of salt marsh is necessary to achieve the final WQBEL outcome of 346 acres required in the Order. The baseline salt marsh quantity is 262 acres, therefore the Responsible Copermittees must restore an additional 84 acres before December 31, 2034. Implementation of jurisdictional BMPs alone will not achieve compliance with the salt marsh restoration WQBEL because there is no analysis performed to date that links an amount of sediment controlled by a municipality to acres of habitat restored in the Los Penasquitos Lagoon. Therefore, the San Diego Water Board cannot assess compliance with the salt marsh restoration WQBEL from a strictly BMP strategy. Work to restore salt marsh habitat in the Los Penasquitos Lagoon is required. Further, removing historically deposited sediments from the Los Penasquitos Lagoon is necessary through the planned Project to meet the final WQBELs. The Project is necessary to restore the Los Penasquitos Lagoon's capacity to assimilate future sediment discharges from the MS4s and sustain restoration of 346 acres of salt marsh. 21 of 26 January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway -4-City of Poway's WQIP Commitments October 12, 2020 The City of Poway describes its numeric water quality goals in Table 4-6 of the Accepted WQIP. The City set a goal to restore 346 acres of salt marsh habitat as part of a collaborative effort among the Responsible Copermittees. Specifically, section H.1.1 in Appendix Hof the Accepted WQIP acknowledges the City's plans to participate in the Los Penasquitos Lagoon restoration as follows: "the final receiving water goal for this Water Quality Improvement Plan is successful restoration of 346 acres of salt marsh habitat, achieved by a collaborative effort among Responsible Agencies and other TMDL responsible parties." The Accepted WQIP confirms that Los Penasquitos Lagoon restoration efforts would be necessary in addition to implementation of jurisdictional strategies. The City of Poway describes more than 35 jurisdictional sediment load reduction strategies in the Accepted WQIP. Table H-3 of the Accepted WQIP identifies the watershed sediment load reduction required for the Los Penasquitos WMA to be 1,673 tons of sediment per wet period. The total sediment load reduction required for the City of Poway is 320 tons of sediment per wet period (i.e., 19.1 percent of the total load reduction required for the WMA). The Accepted WQIP states that the modeled sediment load reduction required in the Los Penasquitos WMA was developed with full participation and approval from all Responsible Copermittees. The San Diego Water Board expects that the City of Poway, along with the other Responsible Copermittees, will continue to follow through with the commitments made in the Accepted WQIP to complete the planned Los Penasquitos Lagoon restoration and achieve sediment load reduction in the watershed. In the 2018-2019 Los Penasquitos WQIP Annual Report (Annual Report), the City of San Diego, on behalf of the Responsible Copermittees, put forth the Los Penasquitos Lagoon Restoration Project (Project). The Project was designed to achieve final compliance with the WQBELs of the Order. In Table 4-5 and Table 4-14 of the Annual Report, the City of Poway reports it is pursuing the Los Penasquitos Lagoon Restoration pathway to meet Sediment TMDL compliance. The Project involves collaborative participation among the Responsible Copermittees and sets a trajectory to achieve 84 acres of added salt marsh habitat by December 31, 2034. The Responsible Copermittees report that phase one of the Project will consist of sediment and freshwater management, as well as pilot salt marsh restoration components. Phase one of the Project will result in approximately 23 acres of salt marsh restoration. Phase one planning and implementation will occur from fiscal year 2019 through 2026, with project design scheduled to be completed in 2023. Adaptive management and monitoring for phase one will occur between 2026 through 2029 with design for phase two beginning in 2027. Phase two of the Project will be contingent on funding availability and will use lessons learned from phase one to inform the restoration design and implementation of phase two. 22 of 26 January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway - 5 -Available Option to Meet Final Sediment TMDL Compliance October 12, 2020 The Responsible Copermittees will be able to demonstrate compliance with the Sediment TMDL through successful restoration of the required 346 acres of tidal and non-tidal salt marsh in the Los Penasquitos Lagoon via completion of the Project. However, if the City of Poway opts out of the Project, successful restoration may also be achieved through implementation of a revised WQIP and the City's individual implementation of the requirements set forth in provision 7.b.(3)(b) in Attachment E of the Order. The City of Poway's individual implementation of provision 7.b.(3)(b) would require a City specific linkage analysis to be included as part of the WQIP analysis required in provision 7 .b.(3)(b )(ii). The specific analysis would need to link the City's sediment load reductions achieved in the jurisdiction to the City's proportion of the 84 acres required to be restored in the Los Penasquitos Lagoon (i.e., proportional responsibility). The City's specific analysis must demonstrate that the City's individual actions will contribute to the overall required Los Penasquitos Lagoon restoration and address the City's proportional responsibility. The City's specific analysis would need to be verified by monitoring in accordance with provision 7 .d in Attachment E of the Order. The monitoring required under provision 7.d, would need to demonstrate the City is not exceeding its proportional responsibility of the total sediment load in the watershed. Restoration Project Financing The draft Cost Share Agreement for phase one of the Los Penasquitos Project identifies the total Project cost of approximately $36 million dollars. The draft Cost Share Agreement shows the City of Poway's allocated cost share would be approximately $7 million dollars (i.e., 19.1 percent of $36 million). The City's allocation is based on the cost sharing formula, which uses the modeled load reductions assigned to each jurisdiction. The San Diego Water Board understands that the City of San Diego has offered financing options to the City of Poway to facilitate Project participation. As the municipality with the largest cost share responsibilities, the City of San Diego has already funded efforts to study and model the Los Penasquitos Lagoon, explored various restoration scenarios, developed the conceptual design, and managed all interaction with stakeholders. Since the Responsible Copermittees are reaching midway into the TMDL compliance schedule, participation in the collaborative Project would increase assurance that the City of Poway receives credit for Los Penasquitos Lagoon restoration by the December 31, 2034, final compliance date. The San Diego Water Board supports the Project and expects that the City of Poway participate, as it has represented it would, and, as appropriate, collaborate with the City of San Diego on a financing plan. The Responsible Copermittees should take advantage of the savings opportunities the Project offers and showcase the benefits of such a collaborative approach. The San Diego Water Board believes coordinated participation efforts between all the Responsible Copermittees will result in the most successful, efficient, and sustainable water quality outcomes. 23 of 26 January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway San Diego Water Board's Expectations October 12, 2020 - 6 -Municipalities regulated under the MS4 Permit have long sought a watershed-based approach that empowers the Copermittees to prioritize specific outcomes in lieu of exhaustive process and activities based permitting. The San Diego Water Board incorporated that approach in the 2013 Regional MS4 Permit. Watershed WQIPs are the backbone of the municipal storm water control program in the San Diego region. WQIPs are single comprehensive watershed plans developed by the Responsible Copermittees that focus on an agreed upon set of priorities and define a coordinated implementation of both non-storm water and storm water runoff management programs to achieve water quality outcomes in the most efficient manner. The Los Penasquitos Lagoon WQIP is a detailed, integrated, inclusive watershed planning document that identified the control of freshwater discharges and siltation/sedimentation into the Los Penasquitos Lagoon as one of the highest priority water quality conditions in the WMA. All the Responsible Copermittees actively engaged in the selection of the priorities and development of both the jurisdictional level strategies and a watershed scale lagoon restoration Project to achieve the water quality outcomes required by the Sediment TDML. The Sediment TMDL was developed using a third-party stakeholder driven approach over ten years ago. The Responsible Copermittees collaborated to develop the WQIP, which sets compliance with the Sediment TMDL as one of the highest water quality priorities in the watershed. To achieve the goals of the MS4 Permit and the outcomes approach, the San Diego Water Board expects all the Responsible Copermittees to actively engage in the WQIP process as jurisdictional strategies are implemented and watershed level projects executed. The long-term viability of a prioritized outcomes-based watershed approach is challenged if meaningful progress is not made in achieving the proposed outcomes in the WQIPs. The Responsible Copermittees represented to the San Diego Water Board that each Copermittee would commit to perform work in accordance with an established set of coordinated water quality priorities to achieve water quality standards and improve the health of the region's receiving waters. As stated in the Accepted WQIP, participation in the Los Penasquitos Lagoon Restoration Project offers benefits of efficient targeting and prioritization of Los Penasquitos Lagoon restoration activities, increased cost-effectiveness of selected BMP strategies in the watershed, and development of partnerships between the Responsible Copermittees and other Sediment TMDL responsible parties. Until the City of Poway indicates otherwise and a revised WQIP is submitted, the San Diego Water Board expects the City of Poway to continue implementing the Accepted WQIP in conjunction with the other Responsible Copermittees. As part of that collaborative effort, the San Diego Water Board encourages the City of Poway to work with the City of San Diego, as appropriate, on financing options to fulfill commitments made in the Accepted WQIP. If the City of Poway chooses to comply with the Sediment TMDL individually, revisions to the WQIP will require significant discussions with San Diego Water Board staff and the other Responsible Copermittees. 24 of 26 January 19, 2021, Item #14Mr. Chris Hazeltine City of Poway - 7 -October 12, 2020 In the subject line of any response include the reference number 794843:MGarcia. For questions pertaining to the subject matter, please contact Mireille Garcia at (619) 521-8041 or Mireille.Garcia@waterboards.ca.gov. Respectfully, David W. Gibson David W. Gibson Executive Officer San Diego Water Board Digitally signed by David W.Gibs,on Date: 2020.10.12 12:44:48 -07'00' cc: Tracy Beach, Senior Civil Engineer, City of Poway Bob Manis, Director of Development Services, City of Poway Melody Rocco, City Engineer 25 of 26 January 19, 2021, Item #14N en 0 -ti N en )> ~ ~ )> ("') :I: 3: m z ~ G') Copermittee Del Mar Poway City of San Diego County of San Diego Caltrans Total Copermittee Del Mar Poway City of San Diego County of San Diego Caltrans Total DRAFT -Copermittee Shared Cost Breakdown for Los Pen Lagoon Restoration -Phase 1 % Cost Breakdown FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 0.03% $ 362.96 $ 874.27 $ 856.20 $ 411.38 $ 2,687.14 19.10% $ 231,087.23 $ 556,621.28 $ 545,114.50 $ 261 ,913.78 $ 1,710,814.76 75.70% $ 915,879.76 $ 2,206,085.38 $ 2,160,479.99 $ 1,038,056.20 $ 6,780,559.01 2.36% $ 28,553.19 $ 68,776.24 $ 67,354.46 $ 32,362.12 $ 211 ,388.63 2.81% $ 33,997.65 $ 81,890.36 $ 80,197.47 $ 38,532.87 $ 251,695.78 100.00% $ 1,209,880.79 $ 2,914,247.54 $ 2,854,002.63 $ 1,371,276.35 $ 8,957,145.32 % Cost Breakdown FY 2025 FY 2026 FY 2027 Total FY20 -FY27 0.03% $ 2,687.14 $ 2,679.56 $ 8.96 $ 5,191.97 19.10% $ 1,710,814.76 $ 1,705,989.06 $ 5,705.93 $ 3,305,551.55 75.70% $ 6,780,559.01 $ 6,761,433.07 $ 22,614.62 $ 13,101,060.34 2.36% $ 211 ,388.63 $ 210,792.37 $ 705.03 $ 408,434.64 2.81% $ 251,695.78 $ 250,985.82 $ 839.46 $ 486,314.13 100.00% $ 8,957, 145.32 $ 8,931,879.88 $ 29,874.00 $ 17,306,552.62