ATTACHMENT 6-Description of Proposal

Transcription

1 Pajaro River Watershed IRWMP Page 1-1 ATTACHMENT 6-Description of Proposal Attachment 6 outlines the proposal for grant funding according to the requirement from the Proposal Solicitation Package for Implementation Grants, Step 1 from Integrated Regional Water Management Grant Program. Various proposal requirements were group together where common themes or discussions occurred. A table of contents followed by a document road map are provided below to guide the reviewer through the proposal. 1 Introduction Water Management Elements listed in CWC Overall IRWMP Program Project Proposals Pajaro Valley Water Supply Program Proposal Project 1. Watsonville Recycled Water Treatment Facility (WRWTF) Project 2. Coastal Distribution System Project 3. Corralitos Creek Surface Water Intake Enhancement (Fish Ladder) Project Project 4. Aromas Water District Wellhead Treatment Project Project 5. Groundwater Study & Biological Assessment of Upper Pajaro Pajaro River Flood Protection Program Project Proposals Project 6. Pajaro River Levee Reconstruction Project, Phase Project 6.A. Community Consensus, Benefit Assessment Vote, and Local Governance Action Pajaro Valley Stakeholder Process Project 6.B. Lower Pajaro River Bench Excavation Project, Phase Project 7. Soap Lake Floodplain Preservation Project Pajaro River Water Quality Program Proposal Project 8. Erosion Control, Vegetative Treatment, and Riparian Restoration Project Project Prioritization Prioritization Results Prioritization Methodology Step C1 Implementation Schedule Prioritization Step C2 Program Level Step D Overall Regional Project Element Prioritization

2 Pajaro River Watershed IRWMP Page 1-2 Required Proposal Content Page Road Map of Proposal Content Include one or more of the water management elements listed in CWC Describe the proposal as a whole and describe each individual project for which funding is requested. 1-5 and 2-19 Identify the goals and objectives of the proposal and each individual project. Be sufficiently detailed and adequately presented so that it demonstrates that the associated projects are consistent with the IRWM Plan objectives. Discuss the scientific basis of the project(s) in the proposal Be sufficiently detailed and adequately presented so that the relationship between the proposed work and the IRWM Plan is clear Identify how the integration of individual projects, along with other actions in the IRWM Plan, provide 2-19 multiple benefits and identify project linkages that are critical to the success of the proposal. Discuss the integration of the proposal with other grant funded projects in the region, as appropriate. 1-5 Section 1.1 describes the consistency of the Proposal with Water Management Elements. Section 1.2 describes the Overall Pajaro River Watershed IRWMP recommendations and provides a project matrix that defines the projects for which funding is required. Section 2 presents each of the individual projects in further detail. Section 2 presents the goals and objectives for the three programs included in the proposal as well as the individual projects elements. Section 2 describes the IRWMP objectives that are met by each of the programs and projects included in the proposal. Section 2 describes the scientific basis for each of the projects in the proposal; planning evaluations, modeling, monitoring, and various analyses provide the basis for project definition and provide justification for recommendations. Section 2 describes the relationship between proposal and the recommendations of the IRWMP. The proposal includes implementation of the projects recommended for immediate-term implementation with the exception of the Pajaro River Parkway Plan and Water Conservation. All the proposed projects come from the draft IRWMP report. Section 2 describes how the integrated projects function together to provide multiple water supply, flood protection, water quality, and environmental protection and enhancement benefits consistent with the IRWMP goals and objectives. Section 2 also identifies the linkages between projects in the proposed programs. Section 1.2 provides a project matrix that presents the integration of the proposed programs with other regional projects, which are being funded through various state and federal grants and loans.

3 Pajaro River Watershed IRWMP Page 1-3 Required Proposal Content Page Road Map of Proposal Content Prioritize the project(s) in the IRWM Plan region and within the proposal itself. The prioritization of the proposal, the individual projects, and related action should be sufficiently detailed to understand their relationship to implementation of the IRWM Plan. Discuss how the proposal provides source water protection for the region. In the case where the proposal is for one (or more) component(s) of a larger project, describe all of the components of the larger project and and 1-5 Section 3 describes the prioritization of the projects for the region as well as for the proposal itself. Section 3.1 presents the prioritization of the individual project elements. Section 3.2 discusses the overall prioritization methodology established in the IRWMP and presents the prioritization of all the IRWMP projects identified to date. Section 2 describes source water protection afforded by each project in the description of the project. Reducing the demand on the overdrafted groundwater basin through the development and preservation of alternative water supplies and drought protection for the disadvantage community of Watsonville is a primary objective of the Pajaro Valley Water Supply Program. Section 2 describes in detail each of the individual projects which make up the three integrated programs. Some of the project proposals are only for one phase of a larger project. This is true for the Soap Lake Floodplain Preservation Project and the Pajaro River Reconstruction Project. Section 1.2 contains a summary matrix of the projects in the proposal as well as projects identified in the IRWMP as elements of the recommended programs.

4 Pajaro River Watershed IRWMP Page 1-4 Required Proposal Content Page Road Map of Proposal Content For proposal affecting water quality, provide: A description of the water body that the proposal addresses and corresponding beneficial uses; A discussion of water quality problems that the proposal addresses including specific pollutants or parameters and the importance of addressing the specific water quality problems relative to the overall health of the region; A description of how the proposal relates to the development and implementation of TMDLs on an affected water body. For projects that provide pollutant load reductions, in Step 2 applicants will be required to estimate the concentration or volume reduction that will be achieved. A description of how the proposal is consistent with the applicable Regional Water Board Watershed Management Initiative Chapter, plans, and policies; and For NPS Pollution Control proposals, a description of which Management Measures will be applied Section 2.3 describes the water quality problems addressed by the Pajaro River Water Quality Program proposal and how the proposal relates to the Central Coast RWQCB s Basin Plan and TMDL process. Section describes the Erosion Control, Vegetative Treatment, and Riparian Restoration Project the will benefit Monterey Bay, Pajaro River, Llagas Creek, San Benito River, and other tributaries. Beneficial uses of these surface waters include municipal, agricultural, and industrial water supply, groundwater recharge, support of rare, threatened or endangered species, migration and spawning of aquatic organisms, and preservation of wildlife habitat, biological habitats of special significance, cold and warm freshwater habitat, as well as estuarine ecosystems. The section also describes NPS MM and RWQCB WMI element that will be addressed. A description of the metric(s) that will be used to show measurable water quality and/or water supply improvements. In Step 2, applicants will be required to present estimates of water quality and/or water supply improvement based on the methods proposed, and to develop a Project Assessment and Evaluation Plan that will outline necessary monitoring and methods that could be used to quantify improvements Section 2 describes the metrics that will be used to assess performance and success of the proposed projects. Performance measures are described for each proposed project and include monitoring, data analyses, modeling, and other technical evaluations.

5 Pajaro River Watershed IRWMP Page Introduction The initial phase of work on the Pajaro River Watershed Integrated Regional Water Management Plan (IRWMP) culminated in a draft IRWMP document. The draft IRWMP report identified three immediate term programs for implementation based on completed studies, multiple benefits, and readiness to proceed. Eight projects from those recommended programs were then selected to be included in this proposal based upon implementation requirements, need, benefit to disadvantaged communities, available matching funding, and Stakeholder consensus. The eight projects included in this proposal are: Project 1. Watsonville Recycled Water Treatment Facility (WRWTF) is a joint effort by the City of Watsonville and the Pajaro Valley Water Management Agency (PVWMA) to develop a water recycling system for the coastal Pajaro River region. This project provides a new supply to the region, offsetting the demand on the overdrafted groundwater basin and future demand for Central Valley Project (CVP) water. Project 2. Coastal Distribution System is being implemented to eliminate coastal pumping and optimize the basin without affecting current agricultural practices in coastal areas. This project includes additional pipeline necessary to deliver the WRWTF recycled water and other supplies to the coastal area. Project 3. Corralitos Creek Surface Water Intake Enhancement (Fish Ladder) Project is being implemented by the City of Watsonville to ensure long-term reliability of the City s water supply from Corralitos Creek. This project preserves an existing supply to the region, protecting the overdrafted groundwater basin from increasing demands. Project 4. Aromas Water District Wellhead Treatment Project addresses the iron and manganese issues associated with the municipal supply for the City of Aromas. The project includes construction of a wellhead treatment facility that will be supplied by two existing wells. This project reduces potential demand for CVP water, a possible alternative supply for the Aromas Water District. Project 5. Groundwater Study and Biological Assessment of the Upper Pajaro River is a project to ensure preservation and restoration of the Upper Pajaro River floodplain. This project will play an essential role in preserving the area s water quality and water storage capacity, safeguarding unique biological resources, and mitigating the impacts of flooding on downstream communities. Project 6. Lower Pajaro River Levee Reconstruction Project includes the following sub-task projects that lead to local funding and implementation of a comprehensive Army Corps of Engineers (ACE) levee reconstruction project which meet the Resource Agencies criteria multiobjective flood control programs. o Task 6.A. Community Consensus, Benefit Assessment Vote, and Local Governance (Action Pajaro Valley Stakeholder Process) involves a Proposition 218 Benefit Assessment District or equivalent local financing program to raise the local cost share of approximately $50-60 million to match the ACE s $150 million investment in the ACE Levee Reconstruction Project. o Task 6.B. Lower Pajaro River Bench Excavation Project, Phase 1 will excavate 322,000 cubic yards of excess sediment from select locations along the upper terrace benches inside the Pajaro River levees in order to improve the flood carrying capacity of the levee system. This project creates a two-year event floodplain to re-establish flow levels at bank-full capacity. This is expected to be a more self-maintaining scenario for the river, returning to

6 Pajaro River Watershed IRWMP Page 1-6 the river its natural ability to move sediment more effectively out of the river channel system by natural geomorphic processes. It is an early implementation element of the ACE Levee Reconstruction Project providing immediate flood benefits and de-stressing of the existing levee system. In conjunction with the Bench Excavation Project, a Performance Based Flood Channel Maintenance and Adaptive Management Manual will be developed to facilitate more efficient maintenance of the Pajaro River based on needs instead of time scale. The plan will be the basis for an enhanced maintenance and operations program. The planning effort will include development of a flood channel maintenance program and performance standards for the levee reconstruction project including vegetation thinning, sediment removal and sandbar breaching. Project 7. Soap Lake Floodplain Preservation Project, Phase 1 provides non-structural 100- year flood protection of approximately 9,000 acres of agricultural lands. The floodplain provides natural flood storage and attenuation characteristics for the Pajaro River watershed. Project 8. Agricultural Erosion Control, Vegetative Treatment and Riparian Restoration Project, a key land stewardship program that addresses NPS pollution in the extensive, active agriculture of the Pajaro River Watershed. Through the proposed program, agricultural communities will be involved in the protection of water quality within the Pajaro Watershed. Santa Cruz Resource Conservation District will work with the agricultural community in three counties (Santa Cruz, South Santa Clara, and San Benito) to establish and promote effective water quality management measures (grassed roads, critical area planting, stream bank stabilization, vegetative treatment and biofiltration, etc.). Through the Farm Bureau working groups, water quality protection demonstration projects will be implemented throughout the Pajaro Watershed. This program will showcase agricultural stewardship management measures (including industryled outreach and water quality protection practices). 1.1 Water Management Elements listed in CWC This section highlights the project proposal consistency with water management elements and addresses the first requirement of Attachment 6, Include one or more of the water management elements listed in CWC (shown in Section III.C of the Guidelines). This Pajaro River Watershed Proposal includes eight projects that are consistent with various water management strategies identified in Section III C of the Guidelines. All of the projects are consistent with several water management elements. Table 1-1 shows the project proposals and their consistency with water management elements.

7 Pajaro River Watershed IRWMP Page 1-7 ATTACHMENT 6 Description of Proposal July 13, 2005 Table 1-1: Project Proposals Consistency with Water Management Element Programs for water supply reliability, water conservation, and water use efficiency. Storm water capture, storage, treatment, and management. Removal of invasive non-native plants, the creation and enhancement of wetlands, and the acquisition, protection, and restoration of open space and watershed lands. NPS pollution reduction, management, and monitoring. Groundwater recharge and management projects. Contaminant and salt removal through reclamation, desalting, and other treatment technologies. Water banking, water exchange, water reclamation, and improvement of water quality Planning and implementation of multipurpose flood control programs that protect property; and improve water quality, storm water capture and percolation; and protect or improve wildlife habitat. Watershed management planning and implementation. Demonstration projects to develop new drinking water treatment and distribution methods. Water Management Element Project Project 1. Watsonville Recycled Water Treatment Facility Project 2. Coastal Distribution System Project 3. Corralitos Creek Surface Water Intake Enhancement (Fish Ladder) Project Project 4. Aromas Water District Wellhead Treatment Project Project 5. Groundwater Study and Biological Assessment of the Upper Pajaro River Project 6. Lower Pajaro River Levee Reconstruction Project, Phase 1 Project 7. Soap Lake Floodplain Preservation Project, Phase 1 Project 8. Agricultural Erosion Control, Vegetative Treatment and Riparian Restoration Project

8 Pajaro River Watershed IRWMP Page Overall IRWMP Program This section addresses the following three criteria required for Attachment 6: Describe the proposal as a whole and describe each individual project for which funding is requested. Discuss the integration of the proposal with other grant-funded projects in the region, as appropriate. In the case where the proposal is for one (or more) component(s) of a larger project, describe all of the components of the larger project. Development of the Pajaro River Watershed Integrated Regional Water Management Plan (IRWMP) was a collaborative process with multiple stakeholders with a wide range of interests. A draft report documenting the IRWMP efforts, evaluations, and recommendations to date is included as Attachment 3 of this grant application. This IRWM plan identifies three integrated programs for implementation based on completed planning efforts, multiple benefits, and readiness to proceed. The three integrated programs are: 1. Pajaro Valley Water Supply Program 2. Pajaro River Flood Protection Program 3. Pajaro River Water Quality Program These three programs comprise the initial recommendations developed through the IRWMP by the stakeholders. The Grant Funding Proposal is comprised of projects from each of these programs. Projects (program elements) were selected based on implementation requirements, need, benefit to disadvantaged communities, and available matching funding. The following matrix summarizes the overall IRWMP Program and identifies the projects for which funding is requested. The matrix is organized by the three programs identified above. Recommended program elements that are not seeking funding are also described. Each of the individual project proposals is part of a larger integrated program (i.e. the Watsonville Recycled Water Treatment Facility is a program element of the Pajaro Valley Water Supply Program). Multiple objectives addressed by each project are further outlined in the detailed description of projects in Section 2.

9 Pajaro River Watershed IRWMP July 13, 2005 ATTACHMENT 6 - Description of Proposal Page 1-9 Table 1-2: Pajaro Valley Water Supply Program Description and Grant Request Matrix PAJARO VALLEY WATER SUPPLY PROGRAM An integrated water supply program that combines a variety of management and infrastructure projects to provide a sustainable water supply for the PVWMA service area. This integrated program utilizes seven strategies to meet objectives determined through the IRWMP process. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS Water Conservation was a recommended element of the PVWMA Basin Management Plan (BMP) and is an ongoing activity in the Pajaro Valley. The PVWMA developed Water Conservation 2000 (WC 2000) to serve as a guidance document for achieving increases in water conservation. This plan identified cost-effective opportunities that will result in the conservation of approximately 4,500 AFY in agriculture water use and 500 AFY in urban water use. This project is in place, no funding is requested under this Implementation grant application. Pumping Management is a key element of the PVWMA Revised BMP program. The Pajaro Valley Integrated Groundwater Surface Water Model simulation of groundwater levels and seawater intrusion in the Pajaro Valley groundwater basin indicates that coastal groundwater pumping reductions would be more effective at preventing seawater intrusion than basin-wide pumping reductions. Provided that a supplemental water supply is available to coastal users, elimination of coastal pumping would nearly double the basin s sustainable yield. This program is currently in place and will continue to be expanded as supplies become available. The next available water supply will be produced from the Watsonville Area Water Recycling Project and distributed by the Coastal Distribution System (CDS), which will deliver an additional 4,000 AFY by This project is in place, no funding is requested under this Implementation grant application Harkins Slough Project w/ Supplemental Wells and Connection involves seasonal percolation of diverted Harkins Slough water into the Harkins Slough recharge basin for storage until the irrigation season, when it will be extracted and delivered to the Coastal Distribution System (CDS) for distribution. This project also includes the construction of additional water supply wells to supplement the deliveries of extracted Harkins Slough water. The construction of the Harkins Slough diversion structure and recharge basin was completed in Fall The expected yield from Harkins Slough is approximately 1,100 AFY, with additional water being provided by the supplemental wells. This project is in place; no funding is requested under this Implementation grant.

10 Pajaro River Watershed IRWMP Page 1-10 PAJARO VALLEY WATER SUPPLY PROGRAM An integrated water supply program that combines a variety of management and infrastructure projects to provide a sustainable water supply for the PVWMA service area. This integrated program utilizes seven strategies to meet objectives determined through the IRWMP process. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS Import Water Project involves the construction of a 23-mile import pipeline for transport of CVP water to the proposed CDS described below. The PVWMA currently has a future CVP entitlement of 19,900 AFY and an existing contract for 6,260 AFY (acquired from Mercy Springs Water District) from the United States Bureau of Reclamation (USBR). Additional CVP water could be purchased as needed from other water contractors. This recommended project presents a major opportunity for multi-purpose and multi-benefit enhancements. The Partners have initiated discussions on water transfers, groundwater banking, waste export, and other project opportunities that may be incorporated into the project. These enhancement opportunities will be developed and incorporated into the IRMWP process. The largest water supply project is the Import Water Project which has been identified by the Collaborative to have potential to be enhanced into a multi-purpose, multi-benefit project. Additional planning efforts through the IRWMP process are planned to further define the opportunities to enhance the Import Water Project. Project 1. Watsonville Recycled Water Treatment Facility (WRWTF) is a joint effort by the City of Watsonville and the PVWMA to develop a water recycling system for the coastal Pajaro Valley. The WRWTF is a major water supply element of the overall integrated PVWMA Revised BMP which is in the process of being implemented to reduce the groundwater overdraft and resultant seawater intrusion. The WRWTF would serve approximately 4,000 AFY of recycled water to coastal growers to irrigate food crops. To reduce groundwater pumping and provide an irrigation water source to growers, this project would locate recycled water treatment and pumping facilities adjacent to the existing City of Watsonville wastewater treatment facility. Recycled water would be blended with groundwater and/or surface water and delivered, via the CDS. This implementation grant requests $5 million for this project. The Total Project cost is $27 million. Project 2. The Coastal Distribution System (CDS) is being implemented in a phased approach to eliminate coastal pumping and optimize the basin without affecting current agricultural practices in coastal areas. The CDS will deliver water to those areas where coastal pumping will be eliminated. The CDS will consist of nearly 26 to 30 miles of pipeline delivering water to over 200 agricultural parcels. Portions of the CDS are in place and additional pipeline will be installed to deliver an additional 4,000 AFY of water from the Watsonville Area Water Recycling Project in This implementation grant requests $6.5 million for the CDS System. Total Project cost is $32 million.

11 Pajaro River Watershed IRWMP Page 1-11 PAJARO VALLEY WATER SUPPLY PROGRAM An integrated water supply program that combines a variety of management and infrastructure projects to provide a sustainable water supply for the PVWMA service area. This integrated program utilizes seven strategies to meet objectives determined through the IRWMP process. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS Project 3. Corralitos Creek Surface Water Intake Enhancement Project includes improvements to the existing fish ladder. The City of Watsonville operates a water diversion facility on Corralitos Creek to supply drinking water to the community. The facility includes a surface water intake and fish ladder that was installed over 30 years ago. Corralitos Creek maintains populations of South- Central California Coast (S-CCC) Evolutionarily Significant Unit (ESU) steelhead, listed as a threatened species pursuant to the Federal Endangered Species Act. NOAA Fisheries has informed the City that this facility may no longer meet current design criteria for surface water intakes and fish ladders, and because of this, may be impeding adult and juvenile migration of steelhead. This implementation grant requests $850,000. The total project cost is $1.1 million. Project 4. Aromas Water District Wellhead Treatment Project will address the iron and manganese issues associated with the municipal supply from the City of Aromas. The project includes construction of a wellhead treatment facility that will serve two of the Aromas Water District s wells, the San Juan Well Road Well and Pleasant Acres Well. This project reduces potential demand for CVP water which is an alternative supply that Aromas Water District could pursue. This implementation grant requests $168,000. Total Project cost is $390,000. Project 5. The Nature Conservancy (TNC) Ecosystem Preservation and Restoration Studies will evaluate habitat enhancement opportunities in the upper watershed. The following studies are proposed: Groundwater Study and Restoration Feasibility Assessment will include investigation of restoration activities on Soap Lake. The assessment will also include groundwater studies and data collection that will be used to develop a habitat restoration plan. The assessment will combine new and existing data to evaluate the degree of connectivity between instream and groundwater supplies and would relate this information to the feasibility of various restoration options including riparian, wetland, grasslands, and sustainable farming zones. Biological Assessment of Upper Pajaro River and Tributaries will identify habitat requirements for sensitive species, including steelhead, California red-legged frog, and California tiger salamander and other state and federally listed species. This analysis would include identifying the current and potential extent of suitable aquatic, riparian and terrestrial habitats, determining known and potential distributions of sensitive species, assessing suitability of soils and groundwater levels in areas where restoration project are being considered. A major component of this analysis would include identification of impacts of different restoration scenarios on steelhead populations in the upper Pajaro River Watershed. This implementation grant requests $90,000 for these two (2) studies. The total project cost is $294,000. This project will leverage an Army Corps of Engineers Watershed Study Authorization and appropriation for further study and project implementation under the ACE Eco-System restoration authorities.

12 Pajaro River Watershed IRWMP Page 1-12 Table 1-3: Pajaro River Flood Protection Program Description and Grant Request Matrix PAJARO RIVER FLOOD PROTECTION PROGRAM A comprehensive program that addresses immediate-term, near-term and long-term measures to prevent flood damage to homes, businesses and agricultural lands in the watershed and capitalizes on opportunities for addressing multiple objectives including environmental restoration, economic development, and appropriate pubic access and use of the Pajaro River corridor. The Program is developed through an integrated regional process completed by the Pajaro River Watershed Flood Prevention Authority (PRWFPA), the Army Corps of Engineers (ACE) and the Local Sponsors for the Lower Pajaro River Corps Project, Santa Cruz and Monterey Counties. The following elements are all components of the overall integrated program that will ultimately provide flood protection from the 100-year flood event and other benefits, as identified. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS The Lower Pajaro River Levee Reconstruction Project is a multi-element project that will be implemented in two phases. The ultimate project by the ACE will increase the present levee flow capacity from 22,000 cfs to 44,400 cfs. This capacity increase will provide flood conveyance of the 100-year flood event. Completion of the project will qualify the area to be mapped out of the Federal Emergency Management Agency (FEMA) 100-year floodplain and remove the requirement for National Flood Insurance Program (NFIP) insurance. This project was first federally authorized by the Flood Control Act of 1966, and the Water Resources Development Act (WRDA) of Recently, the project s planning has made great progress towards a local consensus for setback levees and attention to natural river geomorphology. The Phasing of project elements include: Phase 1 Project 6.A. Community Consensus, Benefit Assessment Vote, and Local Governance Project 6.B. Lower Pajaro River Bench Excavation Project, Phase 1 This is a $210 million ACE Project with Santa Cruz and Monterey counties as Local Sponsors. Grant funds are requested for Phase 1 of this project. Phase 1 elements are critical to reaching agreement and local share funding for implementation of this major initiative. No funding is requested for Phase 2. Phase 2 Lower Pajaro River Bench Excavation Project, Phase 2 USACE Lower Pajaro River Levee Reconstruction Project Project 6. Lower Pajaro River Levee Reconstruction Project, Phase 1 includes A) Community Consensus, Benefit Assessment Vote, and Local Governance, and B) Lower Pajaro River Bench Excavation Project, Phase 1. Project 6.A. Community Consensus, Benefit Assessment Vote, and Local Governance element involves a Proposition 218 Benefit Assessment District or equivalent local financing program to raise the local share of cost of approximately $50-60 million to match the USACE s $150 million investment in the Lower Pajaro River Levee Reconstruction Project. Due to the high level of support needed to pass a new benefit assessment and the size of the local assessment needed; a major work program will be needed if success is to be achieved. This implementation grant requests $650,000 for Project 6.A. Total project cost is $1.09 million.

13 Pajaro River Watershed IRWMP Page 1-13 PAJARO RIVER FLOOD PROTECTION PROGRAM A comprehensive program that addresses immediate-term, near-term and long-term measures to prevent flood damage to homes, businesses and agricultural lands in the watershed and capitalizes on opportunities for addressing multiple objectives including environmental restoration, economic development, and appropriate pubic access and use of the Pajaro River corridor. The Program is developed through an integrated regional process completed by the Pajaro River Watershed Flood Prevention Authority (PRWFPA), the Army Corps of Engineers (ACE) and the Local Sponsors for the Lower Pajaro River Corps Project, Santa Cruz and Monterey Counties. The following elements are all components of the overall integrated program that will ultimately provide flood protection from the 100-year flood event and other benefits, as identified. RELATED PROGRAM & PROJECT ELEMENT Project 6.B. Lower Pajaro River Bench Excavation Project, Phase 1. In conjunction with the Bench Excavation Project, an Adaptive Management Manual element will be developed to enhance the maintenance and operations manual that will facilitate more efficient maintenance of the Pajaro River based on needs as opposed to time scale. This new maintenance approach forms the foundation of long term adaptive management and habitat enhancing maintenance plans for the Pajaro Floodplain Bench Excavation Project, and for the Levee Reconstruction Project. The bench excavation project objective is to excavate 300,000 cubic yards of excess sediment from select locations along the upper terrace benches inside the Pajaro River levees in order to improve the flood carrying capacity of the existing levee system. This project creates an approximately two-year event floodplain to re-establish flow levels at bank-full capacity. This is expected to be a more self-maintaining scenario for the river, returning to the river its natural ability to move sediment more effectively out of the river channel system by natural geomorphic processes. This project is also a critical milestone toward completion of design, implementation and consensus regarding the Levee Re-Construction Project for the Lower Pajaro Valley. Without agreement on the long term operation and maintenance plan, there will be no local agreement on the Army Corps Project. The Army Corps has committed to the development of the Pajaro Levee Project Maintenance Plan as part of the Project Plan and NEPA/CEQA document. FUNDING STATUS This implementation grant requests $7.581 million for Project 6.B. Total Project cost is $ million. Project 7. Soap Lake Floodplain Preservation Project The proposed project would assist in preserving the flood protection afforded to the lower Pajaro River Watershed which is provided by the Soap Lake floodplain. The project would not reduce the magnitude of a flood flow, but would prevent downstream increases in flood flow magnitude. Working in conjunction with the Corp's proposed levee project downstream, the proposed project would provide 100-year flood protection in the City of Watsonville area and surrounding farmlands. This implementation grant requests $5 million for this project. Total Project cost is $13.95 million.

14 Pajaro River Watershed IRWMP Page 1-14 PAJARO RIVER FLOOD PROTECTION PROGRAM A comprehensive program that addresses immediate-term, near-term and long-term measures to prevent flood damage to homes, businesses and agricultural lands in the watershed and capitalizes on opportunities for addressing multiple objectives including environmental restoration, economic development, and appropriate pubic access and use of the Pajaro River corridor. The Program is developed through an integrated regional process completed by the Pajaro River Watershed Flood Prevention Authority (PRWFPA), the Army Corps of Engineers (ACE) and the Local Sponsors for the Lower Pajaro River Corps Project, Santa Cruz and Monterey Counties. The following elements are all components of the overall integrated program that will ultimately provide flood protection from the 100-year flood event and other benefits, as identified. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS Pajaro River Parkway Plan constitutes a complementary project opportunity for the Lower Pajaro River Levee Reconstruction Project. The goal is to develop a Parkway Plan identifying public access and recreational opportunities that may be folded into the design of the Levee Reconstruction Project. The plan will include an evaluation of expanding current recreational opportunities within the Pajaro River levee reconstruction project area, engaging with the public, outreach and negotiation with landowners, development of alternatives, and detailed design and cost estimates. This is an immediate-term project which will seek grant funds from other, non-chapter 8 sources including the River Parkways Program, California Coastal Conservancy, Planning and Conservation League and similar sources. Flood Warning and Damage Reduction for Isolated "Hot Spots" not protected by ACE Projects The final element in the Pajaro River Watershed Flood Management Program involves those developments within the Pajaro that even after the implementation of the above programs will be in danger of flooding, as well as those programs that will warn and evacuate threatened areas until the planned protection level is implemented. These programs include: Flood Alert and Flood Warning Systems FEMA Pre-Disaster Assistance Program FEMA home elevation and relocation assistance program NFIP Flood Plain Management FEMA Community Rating System Flood warning systems are in place. FEMA programs will be developed to address isolated area structures not protected by the ACE and Soap Lake projects. No grant funding is requested for this element of the Flood Management Program.

15 Pajaro River Watershed IRWMP Page 1-15 Table 1-4: Pajaro River Water Quality Program Description and Grant Request Matrix PAJARO RIVER WATER QUALITY PROGRAM The Program is based on two local plans. The Monterey Bay National Marine Sanctuary (MBNMS) Action Plan IV: Agriculture and Rural Lands focuses on strategies to protect water quality from potential adverse impacts of agricultural land management, while recognizing the importance of maintaining agricultural use of the lands for the long-term health of the watersheds. The Plan was developed and adopted with participation from over twenty stakeholders. The second plan, the Lower Pajaro River Enhancement Plan (December 2002), assesses erosion and sedimentation problems in several tributary watersheds in the Lower Pajaro River Watershed. The plan was supported by a grant jointly funded by the California Coastal Conservancy and the Central Coast RWQCB. A key goal of this enhancement plan is to work in cooperation with landowners, land managers, and agency staff to address the principal physical factors causing significant erosion and sedimentation problems in the areas studied. These two (2) Water Quality Plans provide an integrated regional approach to non-point source water quality improvement for agricultural and rural lands in the Planning area. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS Project 8. Agricultural Erosion Control, Vegetative Treatment and Riparian Restoration Project, led by the Santa Cruz County Resources Conservation District, addresses specific reaches and corresponding pollutants of concern including, but not limited to: Pajaro River (nutrients, sedimentation/siltation), Llagas Creek (nutrients), and San Benito River (pathogens, sedimentation/siltation). This project will address agricultural nonpoint source pollution through the implementation of management practices that are specifically designed to prevent and reduce the transport of sediment, nutrients, and pesticides into waters of the state. The proposed project demonstrates a highly effective implementation measure that will directly support TMDL implementation and agricultural waiver compliance, by reducing the transport of pollutants and restoring water quality improvement functions to drainage ditches. This implantation grant requests $615,000 for this Project. Total project cost is $910,000. The Coward Creek Watershed Stream Bank Stabilization Project will address unstable bank conditions along an 850 ft stretch of the creek. The unstable bank condition was initiated during flood events in The unprotected bank continues to erode and has impacted adjacent agricultural land and the Carlton Road, which has been reduced to one lane. The stream bank is near vertical along the 850 ft section of the creek. The goals of the project are to provide long-term bank stabilization, address erosion and sediment issues, and improve habitat. The project includes stream grading, debris removal, installation of vegetative rip-rap, construction of bank stabilization measures and re-vegetation. The project also includes plans for a long-term monitoring and maintenance program to ensure minor damages are taken care of quickly, restoration activities meet regulatory requirements, and the effectiveness of the project is assessed. No grant funding is requested for this element of the Water Quality Program.

16 Pajaro River Watershed IRWMP Page 1-16 PAJARO RIVER WATER QUALITY PROGRAM The Program is based on two local plans. The Monterey Bay National Marine Sanctuary (MBNMS) Action Plan IV: Agriculture and Rural Lands focuses on strategies to protect water quality from potential adverse impacts of agricultural land management, while recognizing the importance of maintaining agricultural use of the lands for the long-term health of the watersheds. The Plan was developed and adopted with participation from over twenty stakeholders. The second plan, the Lower Pajaro River Enhancement Plan (December 2002), assesses erosion and sedimentation problems in several tributary watersheds in the Lower Pajaro River Watershed. The plan was supported by a grant jointly funded by the California Coastal Conservancy and the Central Coast RWQCB. A key goal of this enhancement plan is to work in cooperation with landowners, land managers, and agency staff to address the principal physical factors causing significant erosion and sedimentation problems in the areas studied. These two (2) Water Quality Plans provide an integrated regional approach to non-point source water quality improvement for agricultural and rural lands in the Planning area. RELATED PROGRAM & PROJECT ELEMENT FUNDING STATUS The Green Valley Watershed Stream Bank Stabilization Project addresses unstable bank conditions in several locations adjacent to Casserly Creek. The goals of the project are to provide long-term bank stabilization, address erosion and sediment issues, and improve habitat. The project includes construction at two sites along the creek that will include creek and side slope grading, concrete removal, installation of a crib wall, and re-vegetation. The project also includes plans for a long-term monitoring and maintenance program to ensure proper operation, meet regulatory requirements, and understand the effectiveness of the project. No grant funding is requested for this element of the Water Quality Program. The Tequisquita Slough Wetland Treatment Project addresses a number of local issues including rising groundwater, impaired GW quality, ineffective flood control, and lack of steelhead passage. The project will include construction of a wetland, and components may include agricultural drainage pre-treatment measures to remove pollutants prior to discharge to the adjoining wetland area. The construction of a wetland would involve earthwork, the removal of the non-native vegetation and the establishment of native vegetation. Native vegetation would be planted to provide and enhance wildlife habitat. The earthwork would consist of a dike, levee or ditch system. Excavated material would have to be disposed of; this could be done by spreading it uniformly over adjacent fields, creating islands and raised mounds or building low dikes to separate constructed wetlands and open water areas from agricultural fields. No grant funding is requested for this element of the Water Quality Program.

17 Pajaro River Watershed IRWMP Page 1-17 Table 1-5: IRWMP Program/Proposal Integration with other Regional Grant Funding Projects PROGRAM/PROPOSAL INTEGRATION WITH OTHER REGIONAL GRANT FUNDED PROJECTS The Water Supply Program has as its base, the PVWMA Revised Basin Management Plan. PVWMA recently received a $21.6 million grant from DWR for funding of Revised BMP Program elements. These funds will be used for a variety of the projects in the Program to reduce the borrowing needed. Project 1. Watsonville Recycled Water Treatment Facility (WRWTF) 25% (approximately $18 million) of the Watsonville Area Water Recycling (WAWRP) construction project will be funded by USBR Title XVI programs. Project 2. Coastal Distribution System PVWMA has been awarded an $11 million low interest loan from the SWRCB Seawater Intrusion Control Loan Program. Approximately, $8.5 million of the $21.6 million DWR grant will go towards funding the CDS. Project 3. Corralitos Creek Surface Water Intake Enhancement No other grant funding. Project 4. Aromas Water District Wellhead Treatment Project No other grant funding. Project 5. Groundwater Study and Restoration Feasibility Assessment & Biological Assessment of Upper Pajaro River and Tributaries The Nature Conservancy (TNC) and public entities can leverage these studies into a project implementation funding partnership with the U.S. Army Corps of Engineers under its four-county Watershed Study Authorization. The ACE agreed to carry out an ecosystem restoration program parallel with the Lower Pajaro River Levee Reconstruction Project to assure that the Levee Project is constructed and operated in an overall watershed context. In a Memorandum of Understanding with the permitting agencies for the Levee Project, The ACE agreed to pursue upper watershed project opportunities to reduce sediment into the Lower River Project through the development of geomorphic and riparian restoration. Recently, TNC and the ACE visited the area and discussed the approach and strategy.

18 Pajaro River Watershed IRWMP Page 1-18 PROGRAM/PROPOSAL INTEGRATION WITH OTHER REGIONAL GRANT FUNDED PROJECTS The Flood Protection Program has been developed under the auspices of the Pajaro River Watershed Flood Prevention Authority (FPA) which was established in July 2000 by State Assembly Bill 807 in order to identify, evaluate, fund, and implement flood prevention and control strategies in the Pajaro River Watershed, on an intergovernmental basis. The PRWFPA was funded through $2 million of Proposition 13 funds. Project 6. Lower Pajaro River Levee Reconstruction Project 75%, approximately $150 million, of this project will be funded by the Federal Government under the Water Resources Development Act-flood control authority. The implementation grant request funds key planning and construction elements that will lead to a local cost share financing district for the local capital cost of $60 million plus operations and maintenance funding in perpetuity. In April 2001, the California Coastal Conservancy invested approximately $350,000 in the Community Planning Process for this Project. Project 7. Soap Lake Floodplain Preservation Project The Nature Conservancy (TNC) brings $8.5 million in land conservation grants to this project. The Water Quality Program integrates with The Monterey Bay National Marine Sanctuary (MBNMS) Action Plan IV: Agriculture and Rural Land; and the Santa Cruz County Resource Conservation District Lower Pajaro River Enhancement Plan (December 2002). Project 8. Agricultural Erosion Control, Vegetative Treatment and Riparian Restoration Project The plan was supported by a grant jointly funded by the California Coastal Conservancy and the Central Coast RWQCB. Additionally, the Monterey Bay National Marine Sanctuary (MBNMS) Action Plan IV: Agriculture and Rural Lands was funded by the Sanctuary under its Federal funding.

19 Pajaro River Watershed IRWMP Page Project Proposals This section provides detailed project proposals addressing the following Attachment 6 requirements: Identify the goals and objectives of the proposal and each individual project. Be sufficiently detailed and adequately presented so that it demonstrates that the associated projects are consistent with the IRWM Plan objectives Discuss the scientific basis of the project(s) in the proposal. Identify how the integration of individual projects, along with other actions in the IRWM Plan, provide multiple benefits and identify project linkages that are critical to the success of the proposal. Discuss how the proposal provides source water protection for the region. A description of the metric(s) that will be used to show measurable water quality and/or water supply improvements. In Step 2, applicants will be required to present estimates of water quality and/or water supply improvement based on the methods proposed, and to develop a Project Assessment and Evaluation Plan that will outline necessary monitoring and methods that could be used to quantify improvements. Each Project proposal includes the discussions of the following five categories: Project Description and Tasks to Complete Goals and Objectives Scientific Basis Project Integration Environmental Review Compliance Performance Metrics 2.1 Pajaro Valley Water Supply Program Proposal The Pajaro Valley Water Supply Program proposal is comprised of five projects ready for immediate implementation. The five projects are the Watsonville Recycled Water Treatment Facility, the Coastal Distribution System, the Aromas Water District Wellhead Treatment Project, the Corralitos Creek Surface Water Intake Enhancement and the Groundwater Study & Biological Assessment of Upper Pajaro. These five projects are ready for implementation as documented in the IRWMP and the Collaborative has determined that the integrated projects meet multiple IRWMP goals and objectives. This section defines specific water supply projects for which grant funding is requested. Other water supply projects in the region are either already being implemented (e.g., conservation measures), or will be evaluated further in the next phase of the IRMWP process because of specific opportunities for integration (e.g., the Import Pipeline Project).

20 Pajaro River Watershed IRWMP Page 2-20 This section of the proposal includes five water supply projects that were developed through the initial integration phase of the IRWMP process. The five projects include: 1. Watsonville Recycled Water Treatment Facility (WRWTF) 2. Coastal Distribution System (CDS) 3. Aromas Water District (AWD) Wellhead Treatment Project 4. Corralitos Creek Surface Water Intake Enhancement 5. Groundwater Study & Biological Assessment of Upper Pajaro The WRWTF and the CDS projects were recommended through the Pajaro Valley Water Management Agency (PVWMA) adopted Revised Basin Management Plan (BMP). The Aromas Water District Wellhead Treatment Project, the Corralitos Intake Enhancement, and the Groundwater Study of the Upper Pajaro are all project enhancements to the Revised BMP and are consistent with the goals and objectives of the Revised BMP and the IRWMP. Funding is requested for each of these projects to complete implementation tasks including design (groundwater study only) and construction. The Pajaro Valley Water Supply Program also includes the following elements that are not included in this funding request: Harkins Slough Project 1,100 AFY (COMPLETED) Water Conservation efforts of 5,000 AF (ON-GOING) Construction of an import water pipeline to convey 13,400 (AFY) of Central Valley Project (CVP) water plus five supplemental wells Acquisition of 22,300 AFY of Central Valley Project (CVP) water (to allow reliable delivery of 13,400 AFY) Watershed management programs that would include water resources monitoring, water metering, nitrate management, wells management, and recharge area protection. The largest water supply project in the program is the Import Water Project. The Collaborative identified the Import Water Project s potential to be enhanced into a multi-purpose, multi-benefit project. Additional planning efforts through the IRWMP process intend to further define opportunities to enhance the Import Water Project. Therefore, this project is expected to be included as part of a future IRWMP project, as it was not ready to proceed at the time of the first IRWMP grant cycle. The Pajaro Valley Water Supply Program achieves numerous IRWMP objectives, including: Meets 100% of M&I and agriculture demand in wet to dry years including the first year of a drought. Meets 85% of M&I and 75% agriculture demands in second and subsequent years of a drought. Optimizes and sustains use of existing import surface water entitlements from the San Felipe Unit. Provides a variety of water supply source to meet current demand. Meets or exceeds all applicable water quality regulatory standards. Delivers agricultural water to meet water quality guidelines established by stakeholders. Meets or exceeds recycled water quality targets established by stakeholders. Protects groundwater basins from contamination and the threat of contamination. Prevents seawater intrusion.

21 Pajaro River Watershed IRWMP Page 2-21 Minimizes adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Targets recycled water use to make up 5% of total water use by 2010 and 10% of total water use by Optimizes the use of groundwater storage. Maintains and enhances the local environment and contributes to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin Project 1. Watsonville Recycled Water Treatment Facility (WRWTF) Project Description and Tasks to Complete The City of Watsonville is implementing a recycled water facility for the treatment and distribution of 4,000 AFY of Title 22 disinfected tertiary recycled water for agricultural use in the Pajaro Valley coastal area. The WRWTF is part of the Watsonville Area Water Recycling Project (WAWRP), which includes treatment facilities, distribution system, inland wells, and groundwater supply. Treatment facility elements will entail the design and construction of tertiary treatment facilities implementing one of several alternative technologies for tertiary treatment. The system design will also include a pipeline transmitting the tertiary effluent from the treatment plant to a blending facility. This pipeline is necessary to decrease the salinity of the treatment facility effluent to levels acceptable for agricultural use, an operations center, a water quality laboratory and a maintenance facility. Because the wastewater treatment plant is located adjacent to the Pajaro River, a recreation and public access element has also been incorporated into the WRWTF. Parking and river access are planned adjacent to the new recycled water treatment facilities. Two trails will be established from the top of the Pajaro River levee to the riverbank, creating access for kayaks. Figure 2-1 shows the boundary for the recycled water treatment facilities, including a new access road and the area for Pajaro River access.

22 Pajaro River Watershed IRWMP Page 2-22 Existing Property Line New Property Line Figure 2-1: Watsonville Recycled Water Treatment Facility The City of Watsonville is the lead agency for the implementation of the treatment facilities and has established agreements with the PVWMA for feasibility, design, construction, operation, and cost share. The City also shares a cooperative agreement with the US Bureau of Reclamation (USBR) for grant funding through Title XVI. The City is currently completing design of the WRWTF. Construction of the facility is expected to commence in February Planned financing for the project includes municipal bonds to be repaid through local water charges and grant funding from the USBR. Grant funding provided by the USBR covers 25% of total project costs up to $20 million for planning, design, and construction. Total project costs eligible for Title XVI funding include the WRWTF, CDS, and salinity control facilities (supplemental wells and salinity control pipeline). The budget for the recycled water project can be found in Attachment 7. The total budget is $27 million dollars. The non-state funding match is $22 million dollars. The request for grant funds is $5 million dollars. 82% of the costs will be funded from non-proposition 50 funding sources including Title XVI and municipal bonds. The major tasks to implement the project include: Task 1 Feasibility Study and Pilot Studies (Completed) Task 2 Environmental Compliance (Completed) Task 3 Preliminary Design (Completed) Task 4 Final Design (On-going)

23 Pajaro River Watershed IRWMP Page 2-23 Task 5 Land Acquisition (Completed) Task 6 Permitting (On-going) Task 7 - Construction The schedule for the project can be found in Attachment 8 and includes the above tasks. The project tasks above began in 2001 and are planned to be completed in July Construction begins with match funds in February Requested grant funds are for construction after July 2006 though completion in July Water production is scheduled to start in July The recycled water project is now in the final design phase and CEQA and NEPA documents are complete and adopted. The CDS system will distribute recycled water, as described in Section Goals and Objectives The goal of the WRWTF project is to reduce demand on the groundwater basin and the Central Valley Project (CVP) water and to produce 4,000 AFY of Title 22 recycled water for agricultural use. Ultimately, this project will assist with the protection of groundwater supplies by establishing a seawater intrusion barrier. These goals are consistent with the objectives of the PVWMA Revised Basin Management Plan: Balance water demand within the PVWMA service area with sustainable water supplies Prevent seawater intrusion in the area served by the PVWMA Initiate long-range programs to protect water supply and quality within the basin As an element of the Pajaro River Watershed IRWMP, the WRWTF is a recognized immediate-term project that meets numerous IRWMP objectives. To achieve IRWMP objectives, the WRWTF contributes to the following: Meets 100% of M&I and agriculture demand in wet to dry years including the first year of a drought. Meets 85% of M&I and 75% agriculture demands in second and subsequent years of a drought. Provides a variety of water supply source to meet current demand. Targets recycled water use to make up 5% of total water use by 2010 and 10% of total water use by Provides a variety of water supplies to support planned growth and anticipated increases in agricultural demand. Meets or exceeds all applicable water quality regulatory standards. Delivers agricultural water to meet water quality guidelines established by stakeholders. Meets or exceeds recycled water quality targets established by stakeholders. Protects surface waters from contamination and threat of contamination. Minimizes foreign salts and long-term levels of groundwater salinity. As described above, the project also reduces demand for CVP water, a CALFED benefit. If the recycled water project was not constructed, additional CVP water would be the likely candidate water source to make up the 4,000 AFY not provided by the recycled water project. Scientific Basis A number of evaluations have been completed to justify the selection of the recycled water project for implementation. The recycled water project was identified in the PVWMA Revised Basin Management Plan to assist in balancing the basin and eliminating seawater intrusion. The Revised Basin Management

24 Pajaro River Watershed IRWMP Page 2-24 Plan effort included modeling of the groundwater basin with the Pajaro Valley Integrated Groundwater and Surface Water Model (PVIGSM). The PVIGSM was developed to assess the behavior of the groundwater basin under current baseline conditions and to assess the merits of alternative strategies to balance the basin. It is a dynamic finite element model that simulates the balance of groundwater in the Pajaro Valley basin using geologic and hydrologic conditions, current pumping conditions, water supply and demand conditions, and other basin characteristics. The model uses numerical algorithms to solve coupled differential equations and creates a mass balance within the model grid. Model results showed that the recycled water project in conjunction with other new water supply projects and groundwater management elements would balance the basin. The WRWTF was also evaluated in a Feasibility Study that focused on required facilities to meet Title 22 water quality requirements. As part of the feasibility study, pilot testing of various pretreatment, filtration, and disinfection processes were completed. Water quality sampling and data analysis were performed to determine the viability of each process. The pilot studies were also used as an opportunity for the City staff to test out operations. The pilot study results led to the conclusion that each of the processes is feasible. Project Integration The major project integration of the WRWTF occurred during the original Revised BMP process. During the plan development, water recycling was identified as a recommended project to be included within the suite of projects and management activities aimed at meeting the goals and objectives of the Pajaro Valley. The suite of projects and management activities include various conservation activities, pumping management, the CDS, Import Water Project, Harkins Slough Project with Supplemental Wells, and watershed management activities. Since the completion of the Revised BMP and through the IRWMP process, additional project integration culminated with the incorporation of Pajaro River access and parking. This integration will enhance the benefits of the WRWTF to include recreation and public access. A connection from the City of Watsonville potable water system to the recycled water distribution wet well further enhances the project design. This connection will provide a backup water supply for recycled water should production upsets occur. The connection will also provide up to 2,000 gpm of additional peak day capacity. The WRWTF is also a recommended element of the integrated Pajaro Valley Water Supply Program identified in the draft IRWMP document. As described above the WRWTF is one element of a suite of integrated projects and management elements that will collectively help alleviate the basin imbalance in the Pajaro Valley. Environmental Review Compliance Both CEQA and NEPA documents have been completed and adopted by the PVWMA. The Notice of Determination for the Revised BMP Environmental Impact Report (EIR), covering all the WAWRP components including the WRWTF, was filed in February The Environmental Impact Statement (EIS) for the Revised BMP was issued in March 2004, and the subsequent Record of Decision (ROD) was approved in September Performance Metrics Performance of the WRWTF will be measured in relation to several key parameters relating to regulatory standard, customer standards, and quantity of supply. As part of the larger water supply program, groundwater level and quality monitoring will be analyzed as an indication of seawater intrusion reductions. Table 2-1 describes the performance measure for the project.

25 Pajaro River Watershed IRWMP Page 2-25 Table 2-1: WRWTF Performance Metrics Performance Metrics Recycled water quality will be monitored continuously or daily, depending on the regulatory requirements and constituents of concern. Recycled water quantities will be monitored continuously by the distribution pump station flow meter. Annual production and use will be compared to 4,000 AFY, which is the goal for the project. Effectiveness of reducing seawater intrusion will be measured through groundwater level and quality monitoring and analysis. (Higher groundwater levels are expected along the coast and the inward movement of the seawater intrusion front should be reduced in the area serviced by additional water supply) Project 2. Coastal Distribution System Project Description and Tasks to Complete This project is necessary to eliminate coastal pumping and optimize the groundwater basin without affecting current agricultural practices in coastal areas. Groundwater levels in the basin vary annually depending on weather conditions, recharge, groundwater pumping and other factors. However, the groundwater levels in the Pajaro Valley have generally been in long-term decline due to groundwater pumping in excess of the basin s natural recharge. To support the region s agricultural industry, wells were developed to deliver water to the coastal areas of the Pajaro Valley. Pumping the groundwater in excess of the recharge has led to reduced groundwater levels near the coast which has allowed seawater to intrude. As seawater encroaches into the fresh groundwater basin, water quality is degraded and wells must be abandoned. The CDS will deliver water to those areas where coastal pumping will be eliminated in order to reduce seawater intrusion. The project will add 26 to 30 miles of pipeline to deliver water to over 200 agricultural parcels. The PVWMA Revised BMP identified the CDS as a common element of all management strategies, leading to the CDS s implementation. The CDS must be constructed in order to supply coastal users as a part of the pumping management strategy to maximize the sustainable yield of the Pajaro Valley Groundwater Basin. This project in conjunction with water supply projects will help protect groundwater supplies by facilitating establishment of a seawater intrusion barrier. The CDS is being implemented in a phased approach in parallel with new water supply projects. It delivers water to the PVWMA supply area from the Harkins Slough recovery wells and two supplemental wells. Figure 2-2 shows the existing CDS elements and the planned expansion. Grant funding is requested to complete construction of the remaining CDS elements. PVWMA is the lead agency for implementation of the CDS. Coordination between PVWMA and the City has been an ongoing activity to locate connection points and define infrastructure requirements. Agency agreements and MOUs (Memorandum of Understanding) have been developed to define implementation responsibility and cost sharing. The budget for the CDS can be found in Attachment 7. The total budget is $32 million dollars. The nonstate funding match is $15.8 million dollars. The request for grant funds is $7.7 million dollars. Non-state funds match 49% of costs, including Title XVI, municipal bonds to be repaid through water charges, and other loans. Additionally, Proposition 13 funds provide approximately $8.5 million dollars that are not eligible to be counted towards the match. The major tasks to implement the project include:

26 Pajaro River Watershed IRWMP Page 2-26 Task 1 Project Management (On-going) Task 2 Environmental Compliance (Completed) Task 3 Conceptual Design Finalized (Completed) Task 4 Final Design (On-going) Task 5 Land Acquisition (Completed) Task 6 Bidding Process Task 7 Construction The schedule for the project can be found in Attachment 8. The project tasks above began in 2002 and are expected to be completed in April Construction is expected to begin in March Requested grant funds are for construction after July 2006 through April 2010.

27 Pajaro River Watershed IRWMP Page 2-27 Figure 2-2: Coastal Distribution System

28 Pajaro River Watershed IRWMP Page 2-28 Goals and Objectives The CDS ultimately will deliver 18,500 AFY of project water to customers along the Pajaro Valley coast to significantly reduce pumping. These goals are consistent with the PVWMA Revised BMP objectives: Balance water demand within the PVWMA service area with sustainable water supplies Prevent seawater intrusion in the area served by the PVWMA Initiate long-range programs to protect water supply and quality within the basin The CDS will be implemented in conjunction with new water supply projects as an element of the first phase of the Pajaro River Watershed IRWMP. In conjunction with new water supplies, the CDS will balance the groundwater basin and eliminate seawater intrusion. The consortium of projects will ultimately result in a sustainable water supply for the PVWMA service area. To meet and help achieve specific IRWMP objectives, the CDS: Meets 100% of M&I and agriculture demand in wet to dry years including the first year of a drought. Meets 85% of M&I and 75% agriculture demands in second and subsequent years of a drought. Optimizes and sustains the use of existing import surface water entitlements from the San Felipe Unit. Provides a variety of water supply sources to meet current demand. Meets or exceeds all applicable water quality regulatory standards. Delivers agricultural water to meet water quality guidelines established by stakeholders. Meets or exceeds recycled water quality targets established by stakeholders. Protects groundwater basins from contamination and the threat of contamination. Prevents seawater intrusion. Minimizes adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Targets recycled water use to make up 5% of total water use by 2010 and 10% of total water use by Optimizes the use of groundwater storage. Maintains, to the extent practicable, and enhances the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. Provides a variety of water supplies to support planned growth and anticipated increases in agricultural demand. Protects surface waters from contamination and threat of contamination. Minimizes foreign salts and long-term levels of groundwater salinity. Scientific Basis The CDS was identified in the PVWMA Revised BMP to assist in balancing the basin and eliminating seawater intrusion. As described above, the Revised BMP effort included modeling of the groundwater basin with the Pajaro Valley Integrated Groundwater and Surface Water Model (PVIGSM). Model results show that a pumping reduction of 18,500 AFY along the coast will develop a seawater intrusion barrier and eliminate seawater intrusion. The model also shows that implementation of this groundwater management technique would effectively increase groundwater basin yield from 24,000 AFY to about 48,000 AFY.

29 Pajaro River Watershed IRWMP Page 2-29 PVWMA developed an H2O Net model to evaluate and design the CDS. Hydraulic modeling was completed to size CDS infrastructure, identify booster pump stations, and evaluate various delivery scenarios. Water delivery from the CDS will be scheduled as the system has and will continue to be designed for an 18-hour uniform delivery. Customers will be required to schedule irrigation, allowing the PVWMA to properly balance water sources. This operations approach was taken to minimize the cost of infrastructure. Project Integration The CDS was integrated as a common element of all the coastal water management strategies in the PVWMA Revised BMP. The Revised BMP assumed that coastal pumping would be eliminated, necessitating a supplemental water supply and coastal distribution network. The CDS was developed to deliver water from all of the coastal water supply projects identified in the Revised BMP. The Harkins Slough Project with Supplemental Wells and Connection is one of the coastal water supply projects developed in the Revised BMP to integrate with the CDS project. The Harkins Slough Project has been implemented, and a portion of the CDS was constructed along with that project. The completed portion of the CDS conveys water extracted from the Harkins Slough recharge basin and associated supplemental wells to irrigators along the pipeline. The estimated yield from Harkins Slough is approximately 1,100 AFY. Implementation of the WRWTF, an additional project identified in the Revised BMP, together with the next phase of the CDS, will deliver an additional 4,000 AFY of supplemental water supplies to water users along the northern coast of the Pajaro Valley. In the Pajaro Valley Water Supply Program, the Collaborative and its stakeholders identified additional opportunities to utilize the CDS. In the long-term, the CDS will convey supplemental supplies from the various water supply projects constructed by the Collaborative through the IRWMP process. Environmental Review Compliance Both CEQA and NEPA compliance are complete for the project. Two EIRs were completed for the project. The Notice of Determination for the PVWMA Coastal Distribution System Component of the Local Water Supply and Distribution Project EIR was filed in 2000, and the Notice of Determination for the Revised BMP EIR was filed in A Revised BMP EIS was completed in March 2004 with ROD approved in September Remaining implementation tasks include detailed design and construction, an ongoing task over the next 5 years. Performance Metrics Performance of the project will be measured in relation to the goals and objective of the project. For the CDS, the primary goals are reduced seawater intrusion and balancing of water supply and use. Table 2-2 summarizes the performance measures for the project.

30 Pajaro River Watershed IRWMP Page 2-30 Table 2-2: CDS Performance Metrics Performance Metrics Collection of groundwater pumping meter data along the coast and water use data from the CDS meters will be used to assess progress toward pumping management goals in the Pajaro Valley Coastal area. Groundwater quality and level monitoring will be conducted by PVWMA. Comparison of water levels and water quality to historic records will be used to progression toward reduction of seawater intrusion Project 3. Corralitos Creek Surface Water Intake Enhancement (Fish Ladder) Project Project Description and Tasks To Complete The City of Watsonville operates a water diversion facility on Corralitos Creek to supply drinking water to the disadvantaged community of Watsonville. The facility includes a surface water intake and fish ladder installed over 30 years ago. Corralitos Creek maintains populations of South-Central California Coast (S-CCC) Evolutionarily Significant Unit (ESU) steelhead, listed as a threatened species pursuant to the Federal Endangered Species Act. NOAA Fisheries has informed the City that this facility may no longer meet current design criteria for surface water intakes and fish ladders, and that this design may impede adult and juvenile steelhead migration. The City is concerned about the water diversion facility s current condition, and in response, has developed the Corralitos Creek Fisheries Enhancement Project. This project aims to improve steelhead passage and habitat around the Corralitos Creek surface water intake. Phase 1: New Intake Screens and Flow Studies The City has already taken measures to protect steelhead in Corralitos Creek. In 2005, the City upgraded the existing surface water diversion Figure 2-3: Corralitos Creek Intake structure by replacing an outdated fish screen with a screening system that meets current CDFG and NOAA Fisheries standards. The new screen is anticipated to significantly reduce the likelihood of incidental take to juvenile steelhead. The City voluntarily initiated this project at a cost of approximately $200,000. Flow Studies. In order to properly design improvements to the fish ladder and diversion structure, fish passage flow requirements must be determined under a range of natural flow conditions. The City contributed over $10,000 to a long-term flow study of the Corralitos Creek. The City will continue to fund the Corralitos Creek flow study in 2006, which will provide another season of flow data that could be used for final design.

31 Pajaro River Watershed IRWMP Page 2-31 Fish Passage. To determine the minimum fish passage flow requirements, the City conducted an analysis of Corralitos Creek up to the fish ladder and diversion structure. This study cost $35,000 and was recently completed. Phase 2: Fish Ladder Improvements Design. With fish passage and flow analyses completed, the City can begin designing improvements to the fish ladder. The City obtained grant funding from the California Coastal Conservancy, in coordination with the Santa Cruz County Resource Conservation District, to begin design work by July The design cost is expected to be $100,000. The City expects to complete project plans by November The budget for the Corralitos Creek Fisheries Enhancement Fish Ladder Project is presented in Attachment 7. The total budget is $1.1 million dollars. The non-state funding match is $260,000 dollars. The request for grant funds is $850,000 dollars. A 21% match will be funded from the City of Watsonville Water Fund. Additionally, $100,000 dollars will be provided by state funds from the CA Coastal Conservancy (these funds are not eligible to be counted towards the match). The major tasks to implement the project include: Task 1 Project Management (On-going) Task 2 Design (On-going) Task 3 CEQA Task 4 Permits Task 5 Construction The project schedule can be found in Attachment 8.The project spans two years. Design started in June Grant funds will be used for construction that between July 2006 through October Goals and Objectives The goal of this Project is to restore and improve steelhead passage and habitat around the Corralitos Creek surface water intake. The Project also meets the following goals and objectives identified in the IRWMP: To identify opportunities to restore and enhance natural resources of streams and watersheds when developing water supply strategies Minimize adverse effects on biological and cultural resources when implementing strategies and projects To improve water supply reliability and reduce dependence on imported water Protect existing surface water rights Provide a variety of water supply sources to meet current demand Provide a variety of water supply sources to meet future demand Scientific Basis A number of studies and feasibility evaluations have been or are being completed to justify the selection of the Corralitos Creek Surface Water Intake project for implementation. Before the City of Watsonville can properly design improvements to the fish ladder and diversion structure, the required fish passage flow requirements under a range of natural flow conditions must be determined. The City has contributed over $7,000 to a long-term flow study of the Corralitos Creek to be

32 Pajaro River Watershed IRWMP Page 2-32 conducted by a professor from UC Santa Cruz. As part of the arrangement, all flow data collected will be shared with the City. This work is currently underway. To determine the minimum fish passage flow requirements necessary for the fish ladder, the City is conducting a Fish Passage analysis of Corralitos Creek up to the fish ladder and diversion structure. This study costs $35,000, and is nearly complete. The study included habitat mapping of both stream reaches to describe the location and character of potential migration barriers and habitat units, selection of approximately 18 transects in each tributary to represent both upstream migration and rearing habitat, acquisition of hydraulic data on all transects at three levels of discharge, calibration of PHABSIM hydraulic models, linkage with steelhead migration and rearing habitat suitability criteria, development of migration and rearing relationships to discharge, and preparation of a summary report. As requested by the City, resource agencies were consulted on the scope and specifics of the in-stream flow study to obtain their concurrence with methods and criteria. Work was conducted during suitable periods of weather and stream flow during the spring of The Fisheries Enhancement Project has strong support from both the National Marine Fisheries Service (NMFS) and the California Department of Fish and Game. A NMFS letter provided a scientific assessment of the existing situation, and clearly identifies the need to implement this project. Project Integration One of the key objectives of the IRWM Plan is to identify opportunities to restore and enhance natural resources of streams and watersheds when developing water supply strategies. This Project directly addresses this integration goal. PVWMA s BMP identifies and depends on the surface water supply from Corralitos Creek, providing an average of 1,100 AFY to the City of Watsonville water system. The Project protects the reliability of this important surface water source by addressing important environmental issues that could threaten its viability. Without this supply source, the PVWMA s BMP would require modifications to provide an additional 1,100 AFY of water, most likely imported from an external water source (CVP). The Project is a recommended element of the Pajaro Valley Water Supply Program, identified in the draft IRWMP document as an immediate-term project. The project improves the quality of the existing water supply, maintains regional water supply, and improves fish habitat and passage through and to an important Central Coast Steelhead spawning location. Environmental Review Compliance To comply with CEQA, the City will complete an Initial Study and Biological Assessment of the project, and will most likely use a Mitigated Negative Declaration to address any project impacts. This is expected to be completed by November The City will apply for permits from the ACE, with a Section 7 consultation from National Marine Fisheries Service; to the California Department of Fish and Game for a 1600 permit; and to the RWQCB for a 401 Water Quality permit. The City expects to have all permits completed by May Performance Metrics Performance of the Corralitos Creek Surface Water Intake Enhancement (Fish Ladder) Project will be a function of protection to fisheries and habitat improvements. Table 2-3 describes the performance measure for the project.

33 Pajaro River Watershed IRWMP Page 2-33 Table 2-3: Corralitos Creek Surface Water Intake Enhancement Project Performance Metrics Performance Metrics Comparison of habitat improvements and monitoring for fish passage flows will be used to assess performance. Biological surveys and historic comparison are the envisioned tools for assessing success Project 4. Aromas Water District Wellhead Treatment Project Project Description and Tasks to Complete The AWD is a multi-county special district that provides municipal water service to over 900 connections in Monterey County and San Benito County. The AWD is self-sufficient and relies solely on groundwater to provide water service to its community of approximately 2,700 residents. However, the district s well water contains high levels of manganese and is under mandate by the California Department of Health Services (DHS) to reduce the amount of manganese found naturally in the groundwater supply. The AWD Wellhead Treatment Project will construct an iron and manganese removal facility that will serve two of the AWD wells the San Juan Road Well and the Pleasant Acres Well. Water from the AWD wells is connected via a pipeline system that transfers water from the operating wells to a number of water storage tanks. The Carpenteria Well, an older well in the AWD system, produces a fraction of the water demand for the community and operates only in conjunctive use with one or both of the two wells that would be served by the proposed treatment plant. The wellhead treatment facility and AWD service area is shown in Figure 2-4. The AWD is the lead agency for implementation of the AWD Wellhead Treatment Project. As a water purveyor within the PVWMA jurisdiction, the AWD is governed by PVWMA and coordinates its water facility planning with the PVWMA Revised BMP. The AWD was considered in the Revised BMP. A portion of the water from the Import Water Project, one of the projects identified in the Revised BMP, is reserved for the AWD. However the AWD Wellhead Treatment Project, an add-on enhancement to the Revised BMP program, allows the AWD to continually meet its water demand through the local, inland groundwater supply and reduce the potential demand for CVP water. There are two ways to pay for the AWD Wellhead Treatment Project: borrow funds and repay the cost of the facility over time, or amass the needed funds prior to building the plant. Because the AWD does not have adequate funds to pay as you go and build the plant today, the AWD is searching financial markets to borrow the funds. This search began in earnest in August 2004 after the completion of the pilot study report. The pilot study report included the engineer s estimate to construct the Plant. A Level One plant design was completed for the wellhead treatment facility in March The purpose of this design was to complete a site plan and to evaluate the facility and its integration into the production and distribution system of the District. It also provides the necessary information to complete the environmental document. The Level Two plant design work is scheduled to begin in July Level Two design elements include all aspects of permitting and construction necessary to secure a reasonable number of bondable, competitive construction bids and are anticipated to be completed by October The Level Two design work is scheduled for completion by October During Level Two design, the District will endeavor to secure all permits necessary to construct and operate the Plant. An element of this process is to provide DHS with a completed design package for review, and to put the DHS on notice that the Plant is eminent.

34 Pajaro River Watershed IRWMP Page 2-34 Figure 2-4: Aromas Water District Wellhead Treatment Project A Level One plant design was completed for the wellhead treatment facility in March The purpose of this design was to complete a site plan and to evaluate the facility and its integration into the production and distribution system of the District. It also provides the necessary information to complete the environmental document. The Level Two plant design work is scheduled to begin in July Level Two design elements include all aspects of permitting and construction necessary to secure a reasonable number of bondable, competitive construction bids and are anticipated to be completed by October The Level Two design work is scheduled for completion by October During Level Two design, the District will endeavor to secure all permits necessary to construct and operate the Plant. An element of this process is to provide DHS with a completed design package for review, and to put the DHS on notice that the Plant is eminent. The District will compile and disseminate bid documents in early 2006 after Level Two design work is completed, financing is secured, and permits are processed or are known to be securable but in process. The budget for the Aromas Water District Wellhead Treatment Project can be found in Attachment 7. The total budget is $418,000 dollars. The non-state funding match is $250,000 dollars. The request for grant funds is $168,000 dollars. 60% funds will be matched from an Aromas Water District revenue bond.

35 Pajaro River Watershed IRWMP Page 2-35 The major tasks to implement the project include: Task 1 Project Management (On-going) Task 2 Feasibility Study (Complete) Task 3 Pilot Test (Complete) Task 4 - Design (On-going) Task 5 CEQA (On-going) Task 6 Construction The schedule for the project is presented in Attachment 8. The project spans three years from July 2004 through October Proposed work includes permitting, design, and construction tasks to implement the wellhead treatment facility. In general, because of the District s recent bankruptcy, the cost to finance the project, if possible to secure, is higher than can reasonably be accepted by water rates alone. Funding is being requested to allow for completion of the project. Requested grant funds are for construction that runs for a period of four months from July 2006 though October Once construction is completed and tested, the District will amend its DHS operating permit to include the Plant. Goals and Objectives The AWD Wellhead Treatment Project aims to improve service to existing customers and new customers within its service area by removing iron and manganese levels reliably below the Secondary Maximum Contaminant Level (SMCL). This goal is consistent with the objectives of the PVWMA Revised BMP, including: Balance water demand within the PVWMA service area with sustainable water supplies; and Initiate long-range programs to protect water supply and quality within the basin. The project will also meets or help meet the following IRWMP objectives: Meets 100% of M&I and agriculture demand in wet to dry years including the first year of a drought. Meets 85% of M&I and 75% agriculture demands in second and subsequent years of a drought. Provides a variety of water supply source to meet current demand. Meets or exceeds all applicable water quality regulatory standards. Minimizes foreign salts and long-term levels of groundwater salinity Manages groundwater levels to minimize impacts to existing land uses while preserving environmental habitats where practical. This project also reduces potential demand for CVP water an alternative supply that the AWD could pursue instead of groundwater pumping. Scientific Basis The District began looking at available technologies for reducing the manganese level in its water supply when it became evident that constructing a well outside of the manganese-laden, water-bearing stratum was not possible. Two primary methods of removing manganese were in practice in the area, both using pressure vessels with some type of filter media that adsorbed the manganese. One commonly used media is greensand; the other is typically a proprietary media. The District drilled a new well, the San Juan Well, in hopes of tapping several aquifers that showed signs of reduced manganese levels. The District invested approximately $40,000 to drill a test well to study the water table. The resulting hydrologist s report optimistically noted that water from two of the three

36 Pajaro River Watershed IRWMP Page 2-36 aquifers would meet DHS primary and secondary drinking water standards. The District designed and drilled the San Juan Well to tap these two aquifers. Water from this well met primary and secondary standards for the first two months of operations. However, after two months the manganese levels elevated above the SMCL, similar to other well levels in the District. After evaluating the levels of manganese and the removal processes proven and available for removing manganese, the District hired ATEC to perform a pilot study at the San Juan and Pleasant Acres Wells. ATEC used its proprietary media in the pilot study. Technical Report for an Iron and Manganese Treatment Facility at the San Juan Road Well Site for the Pleasant Acres and San Juan Road Wells was completed in August The pilot study showed that the aluminum pyrite was effective in removing manganese in the two wells. The performance of the project will be measured by the manganese and iron removal from the water supply. Influent and effluent flow monitoring will be used to assess removal rates. Project Integration As a water purveyor within PVWMA jurisdiction, the AWD is an important stakeholder in ensuring the reliability and quality of a municipal water supply within the Pajaro River watershed. The water supply program projects are working towards balancing the groundwater basin, eliminating seawater intrusion and meeting demands throughout the basin. The AWD Wellhead Treatment Project will address iron and manganese water quality issues associated with the local, inland groundwater supply for the City of Aromas. By implementing this project, the AWD can continue to meet the water demands within its service area and will reduce the potential demand for CVP water, which is an alternative supply that may need to be explored if no local project were implemented. The AWD Wellhead Treatment Project is a recommended element of the Pajaro Valley Water Supply Program identified in the draft IRWMP document as an immediate-term project. The project improves the quality of the existing water supply and aids in meeting regional water demands. Environmental Review Compliance AWD completed the necessary environmental documentation for the Plant. The Initial Study/Negative Declaration was completed and the Notice of Intent to Adopt was filed with the County of Monterey Clerk s Office on February 22, The District s Board of Directors will be reviewing comments generated by the document and is scheduled to adopt the environmental document at its November 2005 board meeting. It is expected that the notice of determination will then be filed in December Performance Metrics Performance of the AWD Wellhead Treatment Project will be a function of meeting water quality standards and removal efficiencies of the equipment. Table 2-4 describes the performance measure for the project. Table 2-4: AWD Wellhead Treatment Project Performance Metrics Performance Metrics AWD will measure water quality constituents including iron and manganese within the water supply. Influent and effluent flow monitoring will be conducted and compared to assess constituent removal rates. Water supply that reliably meets the Secondary Maximum Contaminant Level (SMCL).

37 Pajaro River Watershed IRWMP Page Project 5. Groundwater Study & Biological Assessment of Upper Pajaro Project Description and Tasks To Complete Groundwater Study and Restoration Feasibility Assessment: The feasibility of many of the potential restoration activities on Soap Lake (e.g. riparian and wetland restoration) is very sensitive to groundwater levels and depth to groundwater. The study should therefore implement groundwater studies and synthesize data from existing studies and expert opinion on groundwater and other hydrological attributes that are required to develop a watershed-wide habitat restoration plan for the upper Pajaro River and tributaries. This component of the study would combine new and existing data to evaluate the degree of connectivity between instream and groundwater supplies and would relate this information to the feasibility of various restoration options including riparian, wetland, grasslands, and sustainable farming zones. Biological assessment of the Upper Pajaro River and its tributaries: Identify habitat requirements for sensitive species, including steelhead, California red-legged frog, and California tiger salamander and other state and federally listed species. This analysis would include identifying the current and potential extent of suitable aquatic, riparian and terrestrial habitats, determining known and potential distributions of sensitive species, assessing suitability of soils and groundwater levels in areas where restoration projects are being considered, and identifying limiting factors for habitat restoration. Such factors might include soil types, presence of invasive species, lack of vegetative cover, flow Figure 2-5: Upper Pajaro River Tributaries levels, and fish passage barriers on the upper Pajaro River and its tributaries. A major component of this analysis would include a comprehensive analysis of the impacts of different restoration scenarios on steelhead populations in the upper Pajaro River and tributaries. Reestablishing floodplains and riparian habitat at strategic points along the river corridor will restore ecosystem function and provide additional benefits by reducing sedimentation in any new flood control project. The budget for the Groundwater Study & Biological Assessment of the Upper Pajaro project is presented in Attachment 7. The total budget is $294,000 dollars. The non-state funding match is $204,000 dollars. The request for grant funds is $90,000 dollars. The 70% match was funded by the San Benito County Water District s expenditure for the Final EIR for this project, completed in The major tasks to implement the project include: Task 1 Project Management (On-going) Task 2 Groundwater Management Plan Update EIR Studies and Assessments (Complete) Task 3 Bid Solicitation Process for Additional Studies Task 4 Groundwater Study Task 5 Biological Assessment Task 6 Finalized Report

38 Pajaro River Watershed IRWMP Page 2-38 Goals and Objectives The Groundwater Study and Biological Assessment of the Upper Pajaro meet the following environmental goal and objectives established in the IRWMP: Environmental Protection and Enhancement Goal: During the IRWMP effort, the partners will work with the community and environmental stewards to preserve the environmental wealth and well-being of the Pajaro River watershed by identifying opportunities to restore and enhance natural resources of streams and watersheds when developing water supply, water quality, and flood protection strategies. Objectives: o Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies. o Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. o Identify opportunities for open spaces, trails and parks along creeks and other recreational projects in the watershed to be incorporated with water supply, water quality or flood protection projects. o Project elements should maintain and, to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. o Identify opportunities to protect, enhance, or restore habitat to support Monterey Bay marine life in conjunction with water supply, water quality or flood protection projects. Scientific Basis This Project will provide the scientific basis necessary for the further integration of eco-system restoration within all of the water management strategies and projects in the Planning area. Project Integration These studies are critical to the accomplishment of integration of environmental restoration into Planning Area water management strategies. Additionally, these studies bring very high leverage. The Nature Conservancy (TNC) partnership in the Planning Collaborative is invaluable. In addition to bringing credibility and conservation funding investment to the IRWMP, TNC along with the public entities can leverage these studies into a project implementation funding partnership with the US Army Corps of Engineers (ACE) under its four county Watershed Study Authorization. The ACE has agreed to carryout an eco-system restoration program parallel with the Lower Pajaro River Levee Reconstruction Project to assure that the Levee Project is constructed and operated in an overall watershed context. The ACE, in a Memorandum of Understanding with the permitting agencies for the Levee Project, agreed to pursue upper watershed project opportunities to reduce sediment into the Lower River Project through the development of geomorphic and riparian restoration. Recently, TNC and the ACE have flown the area and begun dialog on the approach and strategy. These studies are critical to the development of viable projects and will provide the basis necessary for the further integration of eco-system restoration within all of the water management strategies and projects in the planning area. Environmental Review Compliance Studies are categorically exempt from CEQA. Performance Metrics These technical assessments are studies that will provide the basis for further integration of eco-system restoration within all of the water management strategies and projects in the planning area. The only metric for the project is completion of the study.

39 Pajaro River Watershed IRWMP Page Pajaro River Flood Protection Program Project Proposals The Pajaro River Flood Protection Program addresses flood management and protection and was developed through an integrated regional process completed by the Pajaro River Watershed Flood Prevention Authority (PRWFPA), the Army Corps of Engineers (ACE), the Local Sponsors for the Corps Project, Santa Cruz and Monterey Counties, and the Action Pajaro Valley Pajaro River Task Force. The Program aims to provide a 100-year level of protection and aquatic and riparian habitat to support the Central Coast Steelhead recovery effort. This program resulted in recommendations for intergovernmental action that, when integrated with the U.S. ACE Lower Pajaro River Levee Reconstruction project, will provide 100-year storm level of flood protection, including environmental enhancements, open space preservation, stormwater detention, and groundwater recharge. The PRWFPA recommendation and the community planning process for the ACE Levee Reconstruction project serves as the basis for implementing the projects described in sections 3.1 and 3.2. Stakeholders were and continue to be integral to the implementation of flood management strategies for the watershed. Overall, more than $2 million was invested in FPA planning efforts and over $13 million was spent by the Federal government, Santa Cruz and Monterey counties, and other stakeholders in planning of the Lower Pajaro Levee Reconstruction Project. PRWFPA and SCCFC&WCD studies have led to a number of flood management projects for the Pajaro River watershed, including the Lower Pajaro Floodplain Bench Excavation Project, the Lower Pajaro USACE Levee Reconstruction Project, the Performance Based Maintenance Program and Adaptive Management Manual, Voter approval of the local share of cost for these projects, and the Soap Lake Floodplain Preservation Project. Both the PRWFPA and SCCFC&WCD efforts were developed consistent with the intent of IRWMP guidelines. The resulting projects provide multiple benefits, and are ready for immediate implementation. Flooding in the Pajaro watershed is a major water management conflict for the planning area. A recent Arreola State Appellate Court decision found local counties liable for flood damage caused by failures in the current Lower Pajaro levee system. Average annualized damages to private and public property from flooding along the lower Pajaro is in excess of $40 million. Second only to seawater intrusion as the local agricultural economy s largest threat, flooding accounts for direct losses to property of $27 million per year. FLOOD MANAGEMENT IS A FOUR-COUNTY WATERSHED ISSUE The Pajaro River Watershed, comprising 1,310 square miles over 4 counties, provides a unique opportunity for Integrated Flood Management. 44,500 cfs of river flows from the upper reach of the watershed in Santa Clara and San Benito Counties and drains into the ocean through the lower reach of the river that runs through Santa Cruz and Monterey Counties during the 100-year storm event.

40 Pajaro River Watershed IRWMP Page 2-40 Figure 2-6: Pajaro River Watershed THE LOWER PAJARO RIVER IS CHANNELIZED The downstream portion of the river that runs between Monterey and Santa Cruz was channelized in 1949 when the ACE constructed a levee between Santa Cruz and Monterey, extending approximately 11.3 miles upstream from the river mouth at Monterey Bay. The ACE deemed the levee inadequate when it first flooded in Another major flood occurred in 1995, resulting in a renewed urgency to increase the levee s level of flood protection. Monterey and Santa Cruz Counties provide annual maintenance of the levee system. The Counties perform ongoing vegetation and sediment maintenance activities to provide as much flood conveyance capacity as possible within the existing levee system. The levee system suffers from restricted flood carrying capacity caused by accumulated sediment deposition. Figure 2-7: Pajaro River Levee Failure, Monterey County, Flood of March, 1995

41 Pajaro River Watershed IRWMP Page 2-41 FLOODS WITHIN THE LOWER PAJARO LEVEE SYSTEM The ACE documented inadequate flood conveyance capacity within the Pajaro River levee system, in the San Francisco District internal administrative draft report, Alternative Formulation Briefing F4 Milestone Report, AFB Report, April The threat of significant flooding is the primary problem identified in the study area. The city of Watsonville, the unincorporated town of Pajaro, and surrounding agricultural areas in Monterey and Santa Cruz Counties, are subject to flooding from the Pajaro River. In addition, the City of Watsonville and surrounding agricultural areas in Santa Cruz County are also subject to separate and independent flooding from Salsipuedes and Corralitos Creeks. Hydrologic analysis subsequent to flood flows in 1955, 1958, and 1995 indicate the design capacity of the project constructed in 1949 is only equivalent to an expected annual exceeding probability of 7% (14-year event) on Pajaro River, 12% (8-year event) on Salsipuedes Creek, and 18% (6-year event) on Corralitos Creek. The Pajaro River flood in March 1995 resulted in significant urban and agricultural damages in Monterey County. Agricultural crop damages were estimated at $67 million for 3,280 flooded acres; urban damages in the unincorporated town of Pajaro were estimated at $28 million. The flood resulted in at least one death. EXISTING LEVEE CAPACITY IS FAR BELOW THE 100-YEAR FLOOD The existing channel capacity in the lower reaches of Pajaro River is approximately 22,000 cfs, which is well below the expected 100-year flood event of 44,400 cfs. The following figures and data are excerpted from the Pajaro River Watershed Study Phase 2 Report, RMC, April 2003, produced for the four-county FPA. Figure 2-8: 100-Year Return Period Peak Design Flows on the Lower Pajaro River RECENT LEGAL SETTLEMENT In June, 2002, the Arreola case, a State of California appellate court decision, held that Santa Cruz and Monterey Counties, together with Cal-Trans CA Department of Transportation, were liable for approximately $51 million in flood damages to over 300 residential, agricultural and commercial land owners for property destruction resulting from the 1995 flood. This caused the two counties to research the possibility of formally relinquishing the levee maintenance duties to the California Department of

42 Pajaro River Watershed IRWMP Page 2-42 Water Resources. Relinquishment proceedings have since ceased while the counties struggle to maintain an aged levee with a limited budget and reach agreement on final design and local funding for the Levee Reconstruction Project. TWO COORDINATED PROJECTS PROVIDE FLOOD PROTECTION High flood risk on the lower Pajaro River demands immediate implementation of flood protection projects. This implementation grant request is comprised of two immediate flood management projects that together form one comprehensive and integrated flood management program. Following is a discussion of how each of the flood management projects meets the need for flood protection in the Pajaro River watershed. Figure 2-9: Monterey County, Flood of March, 1995

43 Pajaro River Watershed IRWMP Page Project 6. Pajaro River Levee Reconstruction Project, Phase 1 Project Description and Tasks to Complete Until the ACE Levee Reconstruction Project is completed, the Lower Pajaro River area will be alarmingly under-protected. While the present levee capacity is estimated to be just 22,000 CFS, the Levee Reconstruction Project aims to provide flood conveyance of the 100- year flood (44,400 CFS). Completion of the project will qualify the area to be mapped out of the FEMA 100-year flood plain and the requirement for NFIP insurance. The project was first federally authorized by the Flood Control Act of 1966, and the Water Resources Development Act (WRDA) of 1990, with WRDA 1986 cost sharing ratios. Recently, the project s planning has made great progress towards a local consensus for set-back levees and attention to natural river geomorphology. Figure 2-10: Levee Reconstruction Project Area The ACE has designated the Tentatively Recommended Plan for the levee design as Alternative 2A for the River s mainstem, and Alternative T4 for the tributary creeks. This is also the Locally Preferred Plan

44 Pajaro River Watershed IRWMP Page 2-44 that was approved by the Boards of Supervisors of both Local Sponsor counties, Monterey and Santa Cruz. These alternatives both provide a 100 year level of protection. The following ACE plan and Local Sponsor Preferred Plan is headed to a draft EIR for Public review in early 2006: Alternative 2A- Main stem of the River: 2A involves removing the existing levee and replacing it with an enlarged levee setback 100 feet on both sides of the river. The levee will be raised approximately 4 feet. Manning s roughness value n varies from.04 to.075 (n = 0.04 in Reaches 2 & 3; n= in Reach 4) Alternative T4 -Tributary streams: T4 involves removal of the existing levee on Salsipuedes Creek and replacing it with (1) enlarged levees, (2) setback levees to a maximum of 100 feet (an average 75 foot setback), (3) floodwalls, or (4) a floodwall/levee combination. There will be a newly constructed levee on Corralitos Creek. In addition to a new levee on Corralitos, construction will also include a small amount of floodwall on the right bank. For Salsipuedes n =0.04 For Corralitos n =0.06 Budget: $157 Million dollars; Non-Federal (Local) Share 25.8%, $40.5 million dollars. Figure 2-11: Alternative 2A Features (100 ft Setback)

45 Pajaro River Watershed IRWMP Page 2-45 Figure 2-12: Alternative T4 Features (Hybrid 100 ft Setbacks) Phase 1 of the Levee Reconstruction Project requests funds for two Tasks A. and B. Task A. is a stakeholder process that includes community consensus building; a benefit assessment vote; and local governance structure development. Task B implements Phase 1 of excavation of sediment form the levee benches plus development of an Adaptive Management Manual. Phase 2 of the Levee Reconstruction Project does not seek funds in this grant application, but is discussed here as information regarding future grant funding. The ACE Project will be funded under a cost sharing agreement between the Local Sponsors: Santa Cruz and Monterey counties and the ACE. Under the Project Cooperation Agreement, the locals will pay all lands, easements, utility and bridge relocation costs and ongoing operation and maintenance of the Project, estimated at $40.5 million dollars in capital costs and $1 to 2 million per year for O&M. The Federal government will pay for channel work, environmental mitigation and levee reconstruction costs. Goals and Objectives The Pajaro River Levee Reconstruction Project, Phase 1 meets the following goal and objectives established in the IRWMP:

46 Pajaro River Watershed IRWMP Page 2-46 Flood Protection Goal: Lead Integrated Regional Water Management Planning effort to ensure flood protection strategies are developed and implemented through a collaborative and watershed-wide approach and are designed to maximize opportunities for comprehensive management of water resources. Objectives: o Reach consensus on a project necessary to protect existing infrastructure from flooding and erosion from the 100-year flood event. o Develop approaches for adaptive management to minimize maintenance requirements and protect quality and availability of water while preserving ecologic and stream functions, and enhancing when appropriate. o Provide community benefits beyond flood protection, such as public access, open space, recreation, agricultural preservation, and economic development. o Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies. o Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. o Identify opportunities for open spaces, trails and parks along creeks and other recreational projects in the watershed to be incorporated with water supply, water quality or flood protection projects. o Project elements should maintain and, to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. o Identify opportunities to protect, enhance, or restore habitat to support Monterey Bay marine life in conjunction with water supply, water quality or flood protection projects. Project Integration The Levee Reconstruction Project integrates multiple objectives for the planning and implementation of flood protection projects as recommended in the California Floodplain Task Force. The Flood Management Program is a classic example of a multi-objective project, as it considers and incorporates all of the recommended elements of the State's Floodplain Task Force's Multi-Objective Approach to Floodplains. The project maintains groundwater recharge basins, improves the natural geomorphology of the River, provides flood protection, storm water detention, land use controls, improves water quality and terrestrial and aquatic habitat. The project implements setback levees and develops explicit adaptive management tools and systems as recommended in the California Floodplain Management Task Force. Environmental Review Compliance The NEPA/CEQA EIR/EIS analysis is proceeding to evaluate all the alternatives for the ACE Levee Reconstruction Project. A public Review for the draft EIR/EIS is planned for the near future. Coordination with U.S. Fish and Wildlife Service and Biological Assessment. With the exception of some channel excavation of Salsipuedes Creek, all construction will be accomplished outside the existing riparian area. Potential environmental impact could result from annual maintenance, which will be fully analyzed in the EIR/EIS.

47 Pajaro River Watershed IRWMP Page Project 6.A. Community Consensus, Benefit Assessment Vote, and Local Governance Action Pajaro Valley Stakeholder Process Local funding for flood protection cannot be raised without a vote of property owners and/or voters under the Proposition 218 law. Given the recent California Supreme Court Arreola decision, the Counties are in no financial position to fully fund the local share of a new project. Additionally, the Arreola case and the events leading up to this landmark court decision has left an extremely polarized community over the subject of flood control. The Pajaro River is a key to Central Coast Steelhead recovery and NOAA Fisheries, Central Coast Regional Water Quality Control Board, and California Fish and Game are adamant that the flood Project must be multi-objective in nature-providing flood protection and eco-system improvement. These realities call for the continuation of an extensive Stakeholder consensus process to achieve real solutions. This element of the Project involves three major Tasks and an administration task necessary for the successful local share financing, design concurrence and construction of the ACE Levee Reconstruction Project including: 1. Task A.1 - Community Consensus 2. Task A.2 - Benefit Assessment Vote 3. Task A.3 - Local Governance 4. Task A.4 Program Administration Task A.1, A.2, and A.3 are described in greater detail below. Task A.1 Community Consensus for ACE Levee Reconstruction Project Action Pajaro Valley, a nonprofit land use mediation organization, formed in 1999 to facilitate disparate interests on an agreement of a 25 year growth plan for the City of Watsonville. Ultimately, Action Pajaro Valley lead a successful outreach effort toward the passage of a local voter initiative in November Since then, the Pajaro River Stakeholder Process lead by the two local sponsors was winding down and Action Pajaro Valley saw the need to convene stakeholders in the Pajaro Valley to discuss, develop and deliver a consensus agreement on the ACE Levee Reconstruction Project. The Action Pajaro Valley Pajaro River Task Force and the Technical Stream Teams were formed and have been focused on that goal. Funded foundations, community, and local government, the organization's Board of Directors and committees represent the divergent stakeholders from business, agriculture, commerce, residential, environment and government. The organization enjoys high credibility in the planning area in addressing highly contentious local issues. Support of the tentative ACE design by the Monterey and Santa Cruz Counties Board of Supervisors, regulatory agencies as well as key community organizations involved in the APV Pajaro River Task Force is conditioned upon further refinements to the Levee Reconstruction Project preferred alternative 2A and T4. Continued work of the APV Task Force is critical to achieving final agreement with key community constituencies, regulatory and permitting agencies on final modifications to the design to address 100- year flood protection, geomorphic stability of the Pajaro River, sediment loading and movement from the upper Pajaro watershed, riparian and aquatic habitat for special species and endangered Central Coast

48 Pajaro River Watershed IRWMP Page 2-48 Steelhead, amount of agricultural land take to accomplish these objectives (levee set-back distances), and ongoing flood channel maintenance planning. The Mission of the APV Task Force is to continue to convene a collaborative planning process to develop a recommended Locally Preferred Plan for modification, operation, and maintenance of the Pajaro River Flood Control Project that: Is fair and equitable; Is sustainable regarding carrying capacity, economic viability, environmental sensitivity; Develops a local funding program supportable by local landowners; and Addresses a new governance structure for Pajaro Valley flood protection. The APV Task Force conducts critical and successful consensus-building processes bringing together divergent viewpoints regarding flood protection on the Pajaro River from various stakeholder groups within the community. Represented sectors include agricultural, environmental, business and residential community members together with members from local state and federal government, regulatory agencies and elected officials. This consensus process has included twenty formal public meetings and project issue sub-committees headed by a panel of stakeholders, government agencies and permitting agencies. The APV Task Force also sponsors the Technical Stream Team to provide independent technical review and analysis of the Army Corps of Engineers final planning and enviromental analysis of the flood control project in the Lower Pajaro River. The work of the Stream Team is described below in the section for Scientific Basis. Stream Team participants include: APV (facilitator and convenere), Santa Cruz and Monterey Counties; the CA Department of Fish & Game; the CA Regional Water Quality Control Board, the CA Coastal Commission, NOAA fisheries, the U.S. Army Corps of Engineers; Dr. Jeff Mount (U.C. Davis), Dr, Bob Curry (CA State University at Montery Bay), Dr. A.L Riley (SFRWQCB), Eugene Tsuji representing the local farming community, and Jim Van Houten of Watsonville Wetlands Watch and the Sierra Club. The Stream Team has directed additional analysis and modeling of hydrologic, hydraulic, and sediment transport and other fluvial geomorphology aspects of the tentatively adopted ACE Project design as well as identifing watershed-wide studies and sedimentation modeling to assure the ACE design is acceptable to the local comunities and the Regulatory and permitting agencies with jurisdiction over the project. The Stream Team and Task Force are integral in the development of the Performance Based Maintenance Plan. Establishing a workable maintenance plan for the new project plays a major role in developing a locally acceptable design. Consultants contributing to the modelling and anlyses include: Phillip Williams & Associates Inc, Northwest Hydraulic Consultants Inc., and Moore Iacofano & Goltsman Inc., Dr. Jeff Mount (U.C. Davis), and Dr Bob Curry, of the CSUMB Watershed Institute Continuation of the APV Task Force and Stream Team effort is critical to reaching widespread agreement on the final project design and agreement on a locally approved benefit assessment district for the local share cost of this project. This project element will fund facilitation and administrative support to this community based process. One of the goals is an agreement not to litigate by the any of the APV parties, which will assure an unobstructed path to project implementation. The work program for this sub-task includes: Bi-Monthly Meetings of the APV Task Force through certification of the Final EIR for the Levee Reconstruction Project and Benefit Assessment District Vote.

49 Pajaro River Watershed IRWMP Page 2-49 Quarterly Meetings of the APV "Stream Team" through Final Certification of the Project EIR Deliverable: Consensus document for the adopted and approved ACE Levee Reconstruction Project. Task A.2 Benefit Assessment Vote for Local Financing This Program element involves a Proposition 218 driven Benefit Assessment District or equivalent local financing program to raise the local share of cost estimated to be $40.5 million (25%) to match the US Army Corps of Engineers estimated share of $116.5 million (75%) investment in the ACE Levee Reconstruction Project discussed in the prior section. Because of the high level of support needed to pass a new benefit assessment and the size of the local assessment needed; a major work program will be needed if success is to be achieved. The local sponsors (Monterey and Santa Cruz Counties, and Action Pajaro Valley will be working together to implement a successful benefit engineering and public information campaign over the next two years. The two-year campaign includes the following tasks: Benefit Assessment Engineering to determine appropriate apportionment of local cost to benefiting property types. Involvement of the property owners and/or voters to provide input to and finally agree to the benefit assessment. Public and Property Owner Opinion Surveying to determine levels of support for a variety of tax or property assessment methods to raise the local share of cost for the Project and ongoing maintenance, as well as determine public opinions, attitudes and perceptions regarding flood control to determine an appropriate public education effort prior to a vote. Development and execution of a Community Outreach and Information Plan which will effectively communicate the design, cost, and benefits of the flood project and its maintenance plan. Ballot Design and Vote. Task A.3 Local Governance Structure Development This governing body must be able to make decisions that are in the best interest of the localized area that is most vulnerable to flooding. This program seeks to create a new or modified governing body that represents the specific tax benefit assessment zones for the Pajaro River in both Santa Cruz (Zone 7) and Monterey County (Zones 1 and 1A). The Work Program needed in this element includes: Develop consistent benefit assessment rates for similar land use categories in both Santa Cruz and Monterey counties' zones of benefit Develop consistent operational policies for the 2 county Lower Pajaro 100 year floodplain Research governance organizational structures and adopt the appropriate governance structure that approaches the boundaries necessary for consistent implementation of programs and projects. Goals and Objectives - Task A. The goals of this project are: To plan and implement a multipurpose flood control program that protects property, improves water quality, improves storm water capture and percolation, removes invasive species and improves wildlife habitat

50 Pajaro River Watershed IRWMP Page 2-50 To create a Proposition 218 Benefit Assessment District or equivalent local financing program to raise the local share of cost estimated to be $40.5 million dollars for the Levee Reconstruction Project. To develop a benefit engineering and public information campaign. To develop a performance based maintenance program and Adaptive Management Manual for the ongoing O&M of the Levee Reconstruction Project and the Local Financing for its implementation in perpetuity Deliverables: 1. Consensus among the ACE, Local Sponsors, Agricultural Property owners, residential and commercial property owners and the Regulatory Agencies to agree on a Final Project Design and Maintenance Program. 2. Benefit Assessment Engineering to determine appropriate apportionment of local cost to benefiting property types. 3. Public and Property Owner Opinion Surveying to determine levels of support for a variety of tax or property assessment methods to raise the local share of cost for the Project and for ongoing maintenance. 4. Development and Execution of a Community Outreach and Information Plan. 5. Ballot Design and a Prop 218 Vote. 6. A Project maintenance plan permissible by and affordable to local sponsors (ACE, NOAA Fisheries, USFWS, CA DFG, CA RWQCB, and the Coastal Commission), Santa Cruz and Monterey counties. As an element of the Pajaro River Watershed IRWMP, the Community Consensus, Benefit Assessment Vote, and Local Governance, is a key flood management project that meets numerous IRWMP objectives including: Aid in meeting TMDLs for the Pajaro River watershed. Reach consensus on a project necessary to protect existing infrastructure from flooding and erosion from the 100-year flood event. Develop approaches for adaptive management to minimize maintenance requirements and protect quality and availability of water while preserving ecologic and stream functions, and enhancing where appropriate. Provide community benefits beyond flood protection such as public access, open space, recreation, agriculture preservation and economic. Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies. Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Identify opportunities for open spaces, trails, parks along creeks and other recreational projects in the watershed to be incorporated with water supply, water quality or flood protection projects. Project elements should maintain and to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. Scientific Basis - Task A. This program will be developed under the guidance of the APV Stream Team, a Committee comprised of world respected river geomorphologists within the regulatory agencies holding jurisdiction over the Pajaro River and the University of California, including Dr Jeffrey Mount of UC Davis. The Stream Team recommended such a performance based system and a river corridor performance standards

51 Pajaro River Watershed IRWMP Page 2-51 matrix. This matrix suggests developments for reach maintenance and adaptive management methods to maximize flood conveyance, minimize local cost, and maximize the improvement of aquatic and riparian habitat. Project Integration Task A. The Community Consensus, Benefit Assessment Vote, and Local Governance is an integral element of the Lower Pajaro River Levee Reconstruction Project and the Pajaro River Flood Protection Program. This project is a critical step in the implementation of the ACE Levee Reconstruction Project as local funding is necessary. Environmental Review Compliance - Task A. Not applicable. Benefit Assessment Districts and Planning are Categorically Exempt from CEQA. As a purely administrative program, this project has no negative environmental impacts. Selected to meet the community s flood protection need because Proposition 218 is a CA State legal requirement for constructing public works projects, this project is integral to the approval of the Levee Reconstruction Project. Performance Metrics Success of the Community Consensus, Benefit Assessment Vote, and Local Governance Project will be measured by approval of local funding to support implementation of the ACE Lower Pajaro River Reconstruction Project. Table 2-5 describes the performance measure for the project. Table 2-5: Community Consensus, Benefit Assessment Vote, and Local Governance Performance Metrics Performance Metrics Voter approval of a local funding measure will demonstrate community consensus. Local financing generated for the USACE Lower Pajaro Levee Reconstruction Project and on-going operations and maintenance of the flood channel system will demonstrate project support Project 6.B. Lower Pajaro River Bench Excavation Project, Phase 1 The local sponsor Counties, together with the ACE, are responsible for developing a maintenance regime for the new levee reconstruction project that is permitted by the federal and state agencies overseeing levee operations and maintenance. The ACE, the two local sponsor Counties, and the permitting agencies focused adaptive management planning on the excavation of bench sediment and the relocation of maintenance out from the channel bottom to the new floodplain. This project involves two tasks necessary for maintaining the existing and newly reconstructed levee channel: the development of a Performance Based Adaptive Management Manual and the sediment excavation. Establishing a workable maintenance plan for the new project plays a major role in developing a locally acceptable design. Under an agreement with the ACE, Monterey and Santa Cruz Counties are responsible for levee system maintenance. Without agreement on the maintenance plan, there will be no local agreement on the Project. The goal is to complete an Adaptive Management Manual that will lead to securing permits including a Section 1600 Permit from the CA Department of Fish & Game, and Section 401 Water Quality Permit from the Regional Water Quality Control Board.

52 Pajaro River Watershed IRWMP Page 2-52 The second element of this project is the excavation of excess sediment from select locations along the upper terrace benches inside the existing Pajaro River levees in order to improve the flood carrying capacity of the levee system. This project creates a two-year floodplain to reestablish flow levels at bank-full capacity. This is expected to be a more self-maintaining scenario, returning the river to its natural ability to effectively move sediment from the river channel system by natural geomorphic processes. This project creates more lateral room for the Figure 2-13: Bench Area at the Hwy 1 river to meander over a wider floodplain area within the levee channel. This is a departure from historical operations, where sediment removal from the channel bottom caused greater environmental impacts. By creating a two-year floodplain, this project enhances the environmental characteristics of the stream, restores the channelized stream to a more naturally functioning ecosystem and provides an immediate improvement for flood conveyance capacity. The following figures depict a typical cross section for a bench excavation site, and show the locations of the work sites.

53 SBCWD, PVWMA, and SCVWD Page 2-53 Figure 2-14: Lower Pajaro River Levee Bench Sediment Excavation Project, Typical Cross Section

54 Pajaro River Watershed IRWMP Page 2-54 Figure 2-15: Bench Excavation Sites, Right Bank R and Left Bank L

55 Pajaro River Watershed IRWMP Page 2-55 This sediment excavation project is also specifically designed to relieve the magnitude and severity of potential future flooding of the Pajaro River levees. This project will help protect property and resources from levee failure by "de-stressing" the existing levee system until the levee reconstruction project is implemented. Two urban communities are centered in this project area. The north side of the River runs through the City of Watsonville in Santa Cruz County and the south side through the town of Pajaro in Monterey County. Both communities have an urgent need for improved flood carrying capacity of the existing levee system. Modeling results have determined that a volume up to 322,000 cubic yards can be excavated from eleven locations along 7.5 miles of the levee benches in order to widen the two-year floodplain. Based on current analyses, 322,000 cubic yards of sediment is roughly equivalent to sixty years of sediment accumulation. ENVIRONMENTALLY BENEFICIAL This project benefits fish and wildlife by decreasing velocity in the channel, and creating velocity refuge in the widened floodplain. This project creates overbank resting areas and still water areas. Steelhead trout use this section of the River s main stem as a migration corridor to the tributaries of Corralitos and Salsipuedes Creeks for spawning, and to the lagoon as a rearing area. PROVIDING A JUMP-START FOR THE LEVEE RECONSTRUCTION PROJECT The ACE Levee Reconstruction Project plans to reconstruct the levees and set them back 100 feet wider than each of the current levee sides. Phase 1 excavation of bench areas within the current levee footprint will be a pilot project and test large-scale Phase 2 bench excavation concepts within the future proposed wider footprint. The same scenario of excavating the uppermost terrace bench areas will be used in the newly setback areas to widen the floodplain up to the location of the existing levees. Thus, Phase 1 bench excavation project provides a jump-start for Phase 2 excavation work in the future project setback area. The major tasks to implement the project include: Task B.1 Adaptive Management Manual (On-going) Task B.2 Bench Excavation Planning and Design (Complete) Task B.3 Bench Excavation Environmental Review (On-going) Task B.4 Bench Excavation Permitting (On-going) Task B.5 Bench Excavation Construction and Implementation Task B.6 Project Management (On-going) The schedule for the project is presented in Attachment 8. Goals and Objectives The goals of this project are: To develop a maintenance manual that is acceptable to the federal and local sponsor that has local community acceptability and that is permissible for the future project operations and maintenance. To excavate excess sediment from the Pajaro River levee benches in order to improve the flood carrying capacity of the existing levee system. To lower benches to the two-year floodplain to re-establish channel flow levels at two-year bankfull capacity. To return the river its natural ability to move sediment more effectively out of the river channel system by natural geomorphic processes.

56 Pajaro River Watershed IRWMP Page 2-56 To create more lateral room for the river to meander over a wider floodplain area within the levee channel. To reduce flooding and associated property damage by increasing flood conveyance capacity of the levee system. To benefit fish and wildlife by decreasing velocity in the channel and creating velocity refugia, overbank resting areas, and still water areas in the widened floodplain. Deliverables: 1. Agreement on a Maintenance Manual for the levee reconstruction project. 2. Excavation of 322,000 cubic yards of bench sediment. 3. CEQA documentation and necessary permits. 4. Digital photo documentation of the project before, during and after implementation. 5. Advertisement of the project and its status on the Pajaro River website, 6. A Final Project Summary in a PowerPoint format for public relations and educational citizen outreach, including summary information, maps and photos. As an element of the Pajaro River Watershed IRWMP, the Lower Pajaro River Bench Excavation Project meets numerous IRWMP objectives, including: Aid in meeting TMDLs for the Pajaro River watershed. Reach consensus on a project necessary to protect existing infrastructure from flooding and erosion from the 100-year flood event. Develop approaches for adaptive management to minimize maintenance requirements and protect quality and availability of water while preserving ecologic and stream functions, and enhancing where appropriate. Provide community benefits beyond flood protection such as public access, open space, recreation, agriculture preservation and economic development Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies. Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Identify opportunities for open spaces, trails, parks along creeks and other recreational projects in the watershed to be incorporated with water supply, water quality or flood protection projects. Project elements should maintain and to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. Scientific Basis The San Francisco District ACE recommended the excavation of the Pajaro River bench in the Pajaro River Stable Platform Study ( Pajaro River Stable Platform Study Pajaro River Channel Planform and Channel Forming Discharge Analysis, July 28, 2003). This report calls for lowering bench elevations as one of four methods recommended for restoring the channel to its original bank-full dimensions. The technical analysis for this bench excavation project, phase 1, is contained in three letter reports by Northwest Hydraulic Consultants (NHC) Inc.:

57 Pajaro River Watershed IRWMP Page 2-57 Pajaro River Bench Excavation Analysis 1. File #50275; Northwest Hydraulic Consultants Inc.; Prepared for Santa Cruz County Flood Control and Conservation District Zone 7; January 27, Pajaro River Bench Excavation Analysis 1. Supplemental; File #50275; Northwest Hydraulic Consultants Inc.; Prepared for Santa Cruz County Flood Control and Conservation District Zone 7; February 17, Pajaro River Bench Excavation Analysis 2. File #50275; Northwest Hydraulic Consultants Inc.; Prepared for Santa Cruz County Flood Control and Conservation District Zone 7; October 20, Together, these three letter reports determine that over 322,000 cubic yards of bench sediment can be removed from the system. This would result in an overall increase in conveyance capacity for the model reaches. TREE PLANTING PLAN Approximately 100 mature native riparian trees could be impacted by the excavation work. Modifying the grading plan in the immediate vicinity of several trees could reduce this impact. In November 2004, the County of Santa Cruz is identifing the best measures for reducing grading impacts to the trees on the right bank. The result of this work was a report, Pajaro River Bench Excavation Project, Tree Resource Evaluation/Sediment Excavation Impact Assessment; James P. Allen & Associates; Prepared for Santa Cruz County Public Works Department; May 5, This report locates trees within or in close proximity to proposed excavation areas on the right bank. This work: Located and mapped trees using GIS technology Evaluated the condition, suitability for preservation and potential impacts for each tree located within or in proximity to excavation sites Recommended alterations to excavation areas, preconstruction treatments and preservation techniques Created preservation specifications, including a Tree Preservation Map Determined the quantity of trees to be removed Established mitigation criteria as per California State Fish and Game Department requirements. A similar tree analysis is now being completed by Monterey County for the left bank of the project area. This report is expected to be complete before Fall Additionally, in February 2005, the County of Santa Cruz commissioned a study of bench excavation for the leveed section of Salsipuedes Creek. This study addresses concerns expressed by the regulatory agencies NOAA fisheries and CA Dept of Fish and Game as part of the adaptive management strategy for permitting annual maintenance work on the Salsipuedes Creek levee channel and bench area. The report is: Salsipuedes Creek Maintenance Analysis; File #50275; Northwest Hydraulic Consultants Inc.; Prepared for Santa Cruz County Flood Control and Conservation District Zone 7; February 14, The purpose of this work was to review hydrologic and hydraulic characteristics, evaluate sedimentation trends, and review historical sediment removal activities with respect to the project design and provide suggested maintenance activities. The analysis determined that bench excavation is not advised for Salsipuedes Creek levee benches. Excavation of benches does not appear to be an option for increasing project capacity due to inadequate channel capacity upstream of the existing project reach. Cross

58 Pajaro River Watershed IRWMP Page 2-58 sectional areas were analyzed in the project reach to verify changes in channel capacity from design conditions. Project Integration The Bench Excavation Project, Phase 1 is an integrated element of the Lower Pajaro River Levee Reconstruction Project and the Pajaro River Flood Protection Program. The project will be a major step in the effort to provide 100-year flood protection for the lower Pajaro River. In addition, the performnac of the Benches will be monitored and evaluated to facilitate development of an Adaptive Management Manual. This element of the will be used in the design process of the ultimate ACE Levee Reconstruction Project. Environmental Review Compliance The Project s planning process is complete. Applications for permitting authorizations were submitted to the appropriate agencies and are under review. Notably, we have received a draft 1600 Streambed Alteration Agreement from Dept. of Fish & Game. A Section 404 permit is not needed for this project. The CEQA process is underway for an anticipated mitigated Negative Declaration. The environmental impact of implementing this project is beneficial. This project moves sediment removal efforts out of the channel bottom and away from the vegetated riparian corridor. This project creates a wider floodplain that increases stream meander lengths and reduces flow velocities for fish. If this project is not implemented, then the levees will remain at their current under-protected level, and the community will remain vulnerable to another catastrophic flood such as occurred in 1995, with no remedy available to fight back that flood risk. Performance Metrics Performance of the project is related to increased flood protection, enhancement of habitat, and successful development of an Adaptive Management Manual. Table 2-6 describes the performance measure for the project. Table 2-6: Lower Pajaro River Bench Excavation Project Performance Metrics Performance Metrics Cross-sectional surveys will be repeated at specific locations that have identified and established as part of the adaptive management approach to maintenance; Changes in cross sectional area of the repeat survey stations will be monitored every other year to track changes in channel capacity over time; Changes in sinuosity, river length and grade will be monitored and analyzed; Photo documentation of tree canopy and understory canopy will occur; A temperature monitoring program will also be implemented; and, Velocity profiling across the cross sectional areas is being conducted by the USACE to influence both design and performance standards for which the lower Pajaro River flood protection projects will be judged. Flood Damage reduction benefits, as defined by ACE. Habitat units generated under the HEP-CAR report for the ACE Project. Completion of a performance based Adaptive Management Manual.

59 Pajaro River Watershed IRWMP Page Project 7. Soap Lake Floodplain Preservation Project Project Description and Tasks to Complete The Soap Lake area serves as temporary storage for the Pajaro River. The lower Pajaro River communities (Watsonville, Pajaro, and surrounding farms) experience flooding at flows near 25,000 cubic feet per second (cfs), equivalent to a 14-year flood event. Flooding would increase if the existing floodplain storage at Soap Lake was lost. Without the floodplain, the 100-year flood event would presumably increase the peak downstream Pajaro River discharge by up to 15,600 cfs (from 44,400 to 60,000 cfs). This would cause additional property damage and possibly loss of life. The proposed project would maintain flood protection provided by the Soap Lake floodplain. The project would not reduce the magnitude of a flood flow, but would prevent increases in flood flow magnitude. Working in conjunction with the ACE proposed levee project downstream, the proposed project would provide 100-year flood protection. Therefore, the 100-year discharge is expected to remain at 44,400 cfs between the Murphy Road Crossing and the Salsipuedes Creek confluence. The project would not decrease expected average annual flood damage, however, the project would prevent increases in average annual flood damages. The project would maintain the current hydrologic and hydraulic conditions at the project site and adjacent properties. The floodplain limits would not be changed. As flood frequency and magnitude increase due to urbanization elsewhere in the watershed, a protected Soap Lake would continue to provide the current level of flood protection afforded by this floodplain. Methods for Preserving Soap Lake Several methods for preserving the Soap Lake Floodplain were examined with a focus on preservation of agricultural land. A recent report titled Farmland Protection Action Guide: 24 Strategies for California identifies strategies for agricultural land preservation that are also consistent with the objectives of the Soap Lake Floodplain Preservation project (Institute of Local Self Government 2002). The project for which grant funds are being requested will exclusively entail purchases of land in fee title and the purchase of conservation easements. As described below, several conservation easements have already been purchased on properties within the Soap Lake floodplain. Easement acquisition has proven to be a successful method for reaching the goal of floodplain function while allowing for simultaneous agricultural use and for riparian conservation and enhancements. Conservation Easement In this case, the land ownership would be retained by the existing owner, or sold to a new owner, with the purchase of an easement by a third party to allow third party control of land use in the area. Due to the productive agricultural land in the watershed, this will likely be the most attractive option for land acquisition. The easement purchase would allow land to be temporarily flooded and would restrict the building of structures or facilities that could impede the flood attenuation benefits of the floodplain and that could be damaged by the flood or cause damage to the surrounding area. These structures include buildings, fill materials, and septic tanks. Obtaining easements would also complement the land management efforts of parks, open space agencies, private land trusts and other land conservation organizations including the San Benito Agricultural Land Trust, Land Trust for Santa Clara County, Santa Clara County Open Space Authority, American Farmland Trust, and The Nature Conservancy.

60 Pajaro River Watershed IRWMP Page 2-60 Figure 2-16: Land Acquisition and Conservation Easements Conservation easements and land purchases totaling over 1,200 acres have already been obtained by these groups within the Soap Lake project area. In addition, funding has been secured to obtain another 1,200 acres. The easements and land obtained are described below: Carnadero Preserve 478 acres acquired with 198 acres purchased by SCVWD for mitigation and enhancement purposes and the remainder by the Land Trust for Santa Clara County to be sold for continued agricultural use, with an easement precluding future development. The portion owned by SCVWD will be used in part for mitigation purposes under the Stream Maintenance Program s Stream and Watershed Protection Program. Portions of this land, nearest the largest streams, will be retired from farming and form an expanded buffer between the existing riparian forest and adjacent disturbance. Silacci Property 301 acres of a conservation easement purchased by the Santa Clara County Open Space Authority. Protection will include passive wetland restoration by fencing out cattle from the river and allowing some limited access (water gaps). The property also includes a multiuse trail corridor along Bloomfield Road that follows the historic De Anza Trail. Halperin Property 200-acres of conservation easement for continued agricultural use that includes a 25-acre wetland area running adjacent to the Pajaro River. The purpose of the easement is to maintain the wetland and floodplain areas and to protect and enhance plant and animal habitat. This easement is managed by the California Department of Fish and Game.

61 Pajaro River Watershed IRWMP Page 2-61 Wildlands Property 300 acres in San Benito County within the Soap lake Floodplain purchased by Wildlands, Inc., a habitat development and management company, to create wetlands and improve grazing land. It is estimated that approximately $60 million will be necessary to permanently protect the Soap Lake floodplain, as defined by the PRWFPA s Phase III analysis. The requested funds will not complete this project, but will assist in a major step in funding easements for the floodplain s permanent protection. The schedule for property and easement acquisition partially relies on the availability of lands for sale and on the readiness of landowners to accept the conditions of a conservation easement. As discussed in the project description, there are several agencies that have actively partnered in this region for such acquisitions and made efforts to inform agricultural landowners of easement opportunities. The Implementation Plan for the Soap Lake Floodplain Preservation Project is included in the Initial Study/Negative Declaration prepared for this project by the Pajaro River Flood Prevention Authority. The implementation plan suggests that three acquisitions per year are reasonable, though perhaps a conservative estimate of the acquisition rate. The highest priority areas consist of parcels between 100 and 150 acres. At this acquisition rate, it would take approximately years to acquire approximately 3,550 acres of the Floodplain. The major tasks to implement the project include: Task 1 Program Administration (On-going) Task 2 Appraisal Process (On-going) Task 3 Property Owner Negotiations (On-going) Task 4 Obtain Appraisal (On-going) Task 5 Enter into Purchase Agreement for Property Rights (On-going) Task 6 Close Escrow (On-going) The schedule for the project is presented in Attachment 8. The tasks above are all on an on-going basis as properties will be purchased as they become available. Goals and Objectives The proposed project would assist in permanently protecting the flood protection afforded to the lower Pajaro River Watershed by the Soap Lake floodplain. The project would not reduce the magnitude of a flood flow, but would prevent downstream increases in flood flow magnitude. Working in conjunction with the Corp's proposed levee project downstream, the proposed project would provide 100-year flood protection in the City of Watsonville area and surrounding farmlands. Therefore, the 100-year discharge is expected to remain at 44,400 cfs between the Murphy Road Crossing and the Salsipuedes Creek confluence. IRWMP objectives met include: Aid in meeting TMDLs for the Pajaro River watershed. Work with stakeholders to preserve existing flood attenuation by implementing land management strategies throughout the watershed. Develop approaches for adaptive management to minimize maintenance requirements and protect quality and availability of water while preserving ecologic and stream functions, and enhancing where appropriate. Provide community benefits beyond flood protection such as public access, open space, recreation, agriculture preservation and economic.

62 Pajaro River Watershed IRWMP Page 2-62 Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies. Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Identify opportunities for open spaces, trails, parks along creeks and other recreational projects in the watershed to be incorporated with water supply, water quality or flood protection projects. Project elements should maintain and to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. The Soap Lake Preservation Project integrates the water management strategy of groundwater recharge with Flood Management and Environmental Restoration. Through the preservation of 9,000 acres for natural floodplain storage and floodwater detention, one area, under intense development pressure, will be maintained and restored. Scientific Basis Phase 1 of the study included development and calibration of a hydrologic and sediment model to evaluate flood conditions, various land use scenarios, and sediment impacts. The models were also developed to facilitate evaluation of flood protection alternatives and to inform decision makers on the hydraulic aspects of alternatives. The hydrologic model developed for the watershed study was named the Pajaro River to the Ocean Flood Model (PRO- FLO). PRO-FLO is a combination of two existing models, Hydrologic Engineering Center Flood Hydrograph Package (HEC-1) and Hydrologic Engineering Center River Analysis System (HEC-RAS). These models were chosen for their proven track record as being appropriate tools in cases such as this study, for their general acceptance by the public, engineers and planning experts, and also because they are publicly available (RMC July 2002). The sediment model developed for the watershed study was named the Pajaro River to the Ocean Sediment Generation and Transport Model (PRO-SED). The model was designed to generate river reach profiles to determine where sediment scour and deposition occur during flooding events of various intensities. The model creates a hydrograph and, based on initial sediment data, calculates the location and magnitude of the sediment transport. PRO-SED uses MIKE11 software to model the sediment transport. MIKE11 consists of a one-dimensional, unsteady-flow hydrodynamic module coupled with a sediment transport module. The model is widely accepted, both internationally and within California, and has been approved by FEMA for use in flood studies (RMC July 2002). Phase 2 of the watershed study included development and analysis of project alternatives. Fourteen projects were identified, package with the Corps projects, and evaluated with respect to flood protection level, benefits, impacts, implementation issues, and costs. Of the fourteen projects, the Soap Lake Preservation Project was identified as a key component to maintain the existing level of downstream discharge. From the Phase 2 evaluation, nine alternatives packages were identified (each alternative package included the Soap Lake Preservation Project and a Corps Project with varying levels of flood protection) with potential to meet the desired 100-year flood protection. With the Soap Lake Preservation Project as a common element of all the alternatives, implementation of the preservation project was

63 Pajaro River Watershed IRWMP Page 2-63 recommended. However, an overall recommended alternative could not be selected, as the overall alternative is dependent on the ultimate project that the Corp selects for implementation. Project Integration The Soap Lake Floodplain Preservation Project is a recommended project of the Pajaro River Watershed Flood Prevention Authority (PRWFPA) which is an eight-agency Joint Powers Authority that spans the four counties of Santa Clara, San Benito, Santa Cruz, and Monterey created under AB807 and tasked to identify, evaluate, fund and implement flood prevention and control strategies in the Pajaro River Watershed, on an intergovernmental, cooperative basis. In April 2003, PRWFPA approved the Phase 2 Pajaro River Watershed Study, which identified the preservation of the Soap Lake floodplain as a necessary component of downstream flood protection. The project was recommended after a thorough evaluation of dozens of alternatives throughout the watershed. Project implementation will involve the acquisition of land or conservation/flood easements to protect Soap Lake from land use changes that would negatively impact the area s natural flood attenuation capacity. This non-structural 100-year flood protection project covers approximately 9,000 acres of agricultural lands to be used for their natural flood storage and attenuation characteristics for the Pajaro River watershed. There are several benefits associated with this project. They include: Surface water quality: Suspended particles will fall out of suspension as the water velocity and turbulence decreases. This minimizes the sediment deposition in the Pajaro River channel and sediment transported downstream. Groundwater recharge: Flooding of the Soap Lake floodplain will continue to provide percolation into the groundwater and recharge the aquifer. Regulatory compliance: Both San Benito and Santa Clara counties have language in their General Plans to encourage agricultural and open space preservation and to discourage development with detrimental effects downstream. Open space preservation: Land currently held as open space would remain open space. Protected open space preserves the complex natural habitats necessary to sustain native plant and animal life, especially endangered species. Where possible, trails could be included in conservation easements as long as there are no conflicts with regulatory constraints. Riparian corridor protection: The proposed project would prevent future encroachment near the riparian corridor. Where possible, some riparian corridors might be enhanced for environmental restoration. Agricultural preservation: Farms and ranches are essential economic and cultural resources of our communities. Agricultural conservation easements and leasebacks support continued use and preservation of agriculturally viable land that might otherwise be lost to development. Creation & Enhancement of Wetlands: Protection of this floodplain will promote such opportunities, particularly at the confluence of the creeks found there, including the Pajaro River and the Carnadero Creek confluence, Pajaro River and Llagas Creek confluence, and the San Felipe Lake and Tequisquita Slough confluence. Where riparian corridor encroachments have occurred, opportunities may arise for wetland creation where permitted by protective easements. Environmental Review Compliance The Authority has prepared an Initial Study/Negative Declaration (IS/ND) in compliance with CEQA to provide the public and Responsible and Trustee Agencies reviewing this project with information about the potential effects of the Soap Lake Floodplain Preservation Project on the local and regional environment. The IS analyzes the program level impacts of preserving the Soap Lake Floodplain.

64 Pajaro River Watershed IRWMP Page 2-64 Specific projects in the future may need additional environmental documentation and could tier off this document. A public meeting was held on October 13, 2004 at 6:30 pm at the Gilroy City Hall, Council Chambers at 7351 Rosanna Street in Gilroy. The public review period began on September 27 th, 2004 and ended on October 27 th, For more information on the project please visit our website at The Final IS/ND for the Soap Lake Floodplain Preservation Project, dated March 2005 will be certified by the Pajaro River Flood Prevention Authority. Performance Metrics Performance of the Soap Lake Floodplain Preservation Project will be measured in relation to acquisition of parcels or associated development rights. Schedule for completing the acquisition of all the property could also be established as a performance measure. Table 2-7 describes the performance measure for the project. Table 2-7: Soap Lake Floodplain Preservation Project Performance Metrics Performance Metrics Demonstration of progress toward acquisition of property or development rights in the Soap Lake area. 2.3 Pajaro River Water Quality Program Proposal The Erosion Control, Vegetative Treatment, and Riparian Restoration project is the water quality project is being proposed for funding. However, it should be recognized that this is really an integration of three types of projects as described in the title. This section describes the water quality proposal and also meets the following Attachment 6 requirement: For proposal affecting water quality, provide: A description of the water body that the proposal addresses and corresponding beneficial uses; A discussion of water quality problems that the proposal addresses including specific pollutants or parameters and the importance of addressing the specific water quality problems relative to the overall health of the region; A description of how the proposal relates to the development and implementation of TMDLs on an affected water body. For projects that provide pollutant load reductions, in Step 2 applicants will be required to estimate the concentration or volume reduction that will be achieved. A description of how the proposal is consistent with the applicable Regional Water Board Watershed Management Initiative Chapter, plans, and policies; and For NPS Pollution Control proposals, a description of which Management Measures will be applied.

65 Pajaro River Watershed IRWMP Page Project 8. Erosion Control, Vegetative Treatment, and Riparian Restoration Project Project Description and Tasks to Complete Between the farms of the Pajaro Valley and the wetlands and estuaries around Monterey Bay, the Santa Cruz County RCD worked to establish various on-farm vegetative management practices including grassed waterways, stream bank planting, filter strips, and cover crops. These on-farm crop management practices led to a reduction of nutrient, sediment, and pesticide loading to surface waters. Vegetated waterways provide a variety of mechanisms for the degradation of pesticide and nutrients, and the high surface area of the plant community provides many adsorption sites to retain dissolved and colloidal compounds; it is an ideal environment for fine sediment retention. The result of choosing not to vegetate areas that come in contact with off-farm runoff can lead to serious consequences. For example, without implementation of bank stabilization projects, ditches are left unmanaged and quickly become colonized with weeds and pests. In response to these concerns, farmers regularly apply pesticides to control weeds, leaving banks unprotected - allowing for the mobilization of pesticide residues with bank erosion. Mechanical channel maintenance eliminated the remaining vegetation and further destabilized the banks. Bank erosion combined with unmanaged sediment sources upstream led to the blockage of culverts, causing flooding. The disturbed soils left behind are prime habitat for weeds and pests, necessitating the further use of chemical and mechanical control. By planting stabilizing vegetation, these projects will be able to break this cycle. The project timeline for this project is from July 1, 2006 to October 31, Currently, planting projects established by SCCRCD in 2003, 2004 and 2005 are growing strong. Vigorous stands of vegetation now suppress weed populations, and have reduced pest problems. The plants also control dust, decrease sedimentation into surface waters, and reduce costs by reducing maintenance for the farmer. These plantings are strong examples for other growers, and are key to the development of future projects. As a result of the SWRCB Ag Waiver requirements, and the development of grower s Farm Water Quality Plans, demand for these practices is increasing. Through collaboration with various partners the Program will extend the utilization of established management practices. Collaborative partners include the following: Santa Cruz County RCD San Benito RCD Loma Prieta RCD (Southern Santa Clara county) University of California-Santa Cruz Water districts Central Coast Agriculture Water Quality Coalition Monterey Bay National Marine Sanctuary The Erosion Control, Vegetated Treatment, and Riparian Restoration Project address specific reaches and corresponding pollutants of concern including, not limited to: the Pajaro River (nutrients, sedimentation/siltation), Llagas Creek (nutrients), and San Benito River (pathogens, sedimentation/siltation). Beneficial uses of these surface waters include municipal, agricultural, and industrial water supply, groundwater recharge, support of rare, threatened or endangered species, migration and spawning of aquatic organisms, and preservation of wildlife habitat, biological habitats of special significance, cold and warm freshwater habitat, as well as estuarine ecosystems. This project will address agricultural non-point source pollution through the implementation of best management practices that are specifically designed to prevent and reduce the transport of sediment, nutrients, and pesticides into waters of the state. The proposed project demonstrates a highly effective implementation measure

66 Pajaro River Watershed IRWMP Page 2-66 that will directly support TMDL implementation and agricultural waiver compliance by reducing the transport of pollutants and restoring water quality improvement functions to drainage ditches. LOCAL/POLITICAL SUPPORT: The Central Coast agricultural industry mobilized to assess sources of water quality impairment and implement management measures to abate pollutant levels. Over 600 growers attended the University of California Cooperative Extension Short Courses and are developing Farm Water Quality Plans. Twentythree Watershed Working Groups have formed throughout the Region. Furthermore, these projects are consistent with the priorities of the Central Coast RWQCB s Basin Plan. The Board also identifies irrigated agriculture as a major land use and potential source of impairment for many of the water-bodies on the 303(d) list. It specifies priorities for the Pajaro Watershed, including agricultural waiver implementation (monitoring, education, and implementation). The proposed projects implement water quality protection practices also known a Management Measures (MMs) consistent with Tier I of the TMDL process. The Board also specifically targets the Pajaro River Watershed where these projects will be located for sediment and nitrate water quality concerns. The proposed on-farm vegetative management practices including grassed waterways, stream bank planting, filter strips, and cover crops will address Agriculture MM 1A, Erosion and Sediment Control, which addresses NPS problems associated with soil erosion and sedimentation. These on-farm practices will remove solids and associated pollutants in runoff. The Project also meets several Central Coast RWQCB Water Management Initiative (WMI) Chapter priorities including: Implementation of management measures consistent with existing plans. Projects to reduce agricultural impacts to coastal water quality. Establish conservation buffers on agricultural lands. Implement erosion control management practices (natural/non-structural e.g. buffer zones) to reduce erosion while increasing wildlife habitat. Stormwater and runoff pollution reduction program for protection of coastal water quality. The major tasks to implement the project include: Task 1 Program Administration (On-going) Task 2 Design (On-going) Task 3 CEQA (Complete) Task 4 Permits (On-going) Task 5 Construction The schedule for the project is presented in Attachment 8. Goals and Objectives The goal of the Erosion Control, Vegetative Treatment, and Riparian Restoration Project is to implement agricultural management practice projects that will reduce the amount of pollutant loading to surface waters, while serving as education/outreach demonstration projects to garner additional support for the widespread implementation of these practices. Growers on the Central Coast, including those throughout the Pajaro Watershed, are currently attending Farm Water Quality Planning courses. As a result of the courses, growers develop Farm Water Quality Plans to improve the water quality of surface waters (like the Pajaro River and its tributaries) draining into the Monterey Bay National Marine Sanctuary. This

67 Pajaro River Watershed IRWMP Page 2-67 project directs resources to implement agricultural management practices specified within Farm Water Quality Plans. Additionally, the projects are integral to the implementation of several local plans, including: Pajaro River Watershed Water Quality Management Plan (AMBAG 1999), Lower Pajaro Enhancement Plan (2001), Monterey Bay National Marine Sanctuary s Water Quality Protection Program Action Plan IV: Agriculture and Rural Lands ( Ag Plan ). As an element of the Pajaro River Watershed IRWMP, the Erosion Control, Vegetative Treatment, and Riparian Restoration Project meets numerous IRWMP objectives. The Project meets or helps to achieve the following IRWMP objectives: Aid in meeting TMDL's established for the Pajaro River watershed. Protect surface waters from contamination and threat of contamination. Develop approaches for adaptive management to minimize maintenance requirements and protect quality and availability of water while preserving ecologic and stream functions, and enhancing where appropriate. Identify opportunities to protect, enhance, and/or restore natural resources when developing water management strategies Minimize adverse effects on biological and cultural resources, including riparian habitats, habitats supporting sensitive plant or animal species and archaeological/historic sites when implementing strategies and projects. Project elements should maintain and to the extent practicable, enhance the local environment and contribute to the long-term sustainability of agricultural, commercial, industrial and urban land uses and activity within the basin. Identify opportunities to protect, enhance, or restore habitat to support Monterey Bay marine life in conjunction with water supply, water quality or flood. Scientific Basis A number of studies and feasibility evaluations have been completed to justify the selection of project for implementation, including: Monterey Bay National Marine Sanctuary Action Plan IV: Agriculture and Rural Lands The Pajaro River Watershed Water Quality Management Plan (AMBAG 1999) addresses the critical need for agricultural community involvement in watershed protection and enhancement. The Plan advises a multifaceted approach to water quality protection, including technical assistance, education and outreach to farmers and ranchers, as well as the establishment of demonstration projects for water quality improvement. The Plan further recommends that Agricultural Runoff Control Programs be developed on a watershed level, such that agencies may share information and resources across city/county jurisdictions. RWQCB Basin Plan: The proposed project is consistent with the priorities of the Central Coast RWQCB s Basin Plan. The goals of the proposed projects include assisting farmers in the identification and implementation of agricultural management practices through the implementation of site-specific Farm Plans and the implementation of vegetative treatment systems. Project Integration The Erosion Control, Vegetative Treatment, and Riparian Restoration Project is one element of the Pajaro River Water Quality Program which integrates various projects to improve surface water quality in the watershed. The project in itself is integrated in that it incorporates various established best management practices that can be used conjunctively to meeting water quality goals.

68 Pajaro River Watershed IRWMP Page 2-68 Environmental Review Compliance CEQA is completed for this project under the Santa Cruz County Resource Conservation District s Permit Coordination Program. The Permit Coordination Program supports local farmers, ranchers and landowners who are interested in improving water quality and wildlife habitat on their lands in Santa Cruz County by coordinating the complex regulatory review process for conservation projects requiring permits. The Program will provide a single contact point for farmers, ranchers and landowners interested in improving natural resource conditions on their lands in Santa Cruz County using one or more of the fifteen proven, standardized conservation practices. These practices will be conditioned and authorized in advance by federal, state and local agencies through programmatic approvals entered into with the NRCS and the SCCRCD. These agreements authorize the NRCS and the SCCRCD to provide cooperators and land managers with design and construction specifications for projects utilizing the pre-approved conservation practices. The agencies involved in the coordinated permit process include: County of Santa Cruz, U.S. Fish and Wildlife Service, California Department of Fish and Game, NOAA Fisheries, California Coastal Commission, State Historic Preservation Office, U.S. Army Corps of Engineers, and the Central Coast Regional Water Quality Control Board. The County acts as the lead agency for CEQA review (California Environmental Quality Act). Performance Metrics Performance of the Erosion Control, Vegetative Treatment, and Riparian Restoration Project will be measured in relation to the goals and objectives of the project which are generally focused on water quality improvements and habitat enhancements. Table 2-7 describes the performance measure for the project. Table 2-8: Erosion Control, Vegetative Treatment, and Riparian Restoration Project Performance Metrics Performance Metrics Performance measures, such as sediment load monitoring, will be coordinated by the Agriculture Water Quality Alliance (AWQA) and NRCS. Water quality monitoring and data analysis will be used to assess constituent reductions in surface waters adjacent to the project site.

69 Pajaro River Watershed IRWMP Page Project Prioritization This section describes the IRWMP prioritization process and establishes the priority of projects. This section also meets the follow Attachment 6 requirement: Prioritize the project(s) in the IRWM Plan region and within the proposal itself. The prioritization of the proposal, the individual projects, and related action should be sufficiently detailed to understand their relationship to implementation of the IRWM Plan. Strategies and projects that meet multiple objectives are generally considered to be of higher benefit and priority. A prioritization assessment of existing projects ready for implementation was used to identify strategies or projects that would definitely be recommended in the IRWMP. The immediate strategies and projects to be implemented were identified based on existing planning recommendations and through a collaborative approach with the Partners and stakeholders consistent with IRWMP standards. This section is organized into the follow two sections: Prioritization Results Prioritization Methodology 3.1 Prioritization Results Table 3-1 summarizes the overall project ranking justification for the immediate-term projects. Description for justification of each project is described in greater detail below.

70 Pajaro River Watershed IRWMP Page 3-70 Table 3-1: Overall Prioritization (Immediate-Term Priorities) Element Economic Benefit Impact of not Implementing Project Regional Needs Multi- Agency/Entity Benefits Disadvantaged Community Benefit Overall Ranking Project 1. Watsonville Recycled Water Treatment Facility Very High Very High Very High Very High 1 Project 2. Coastal Distribution System Very High Very High Very High Very High 2 Project 6. Pajaro River Levee Reconstruction Project Very High Very High Very High Very High 3 Project 8. Erosion Control, Vegetative Treatment, and Medium High High High 4 Riparian Restoration Project 7. Soap Lake Floodplain Preservation Project, Phase 1 High Medium High High 5 Project 3. Corralitos Creek Surface Water Intake Medium Medium High High 6 Enhancement (Fish Ladder) Project 4. Aromas Water District Wellhead Treatment Medium Medium Low Medium 7 Project 5. Groundwater Study and Biological Assessment of Upper Low Medium Medium Low 8 Pajaro River Pajaro River Parkway Plan a Low Low Low Low 9 Footnote: a. The Pajaro River Parkway Plan does not request funding but is shown as it is a planned immediate term project. 1. PRIORITY 1 - Project 1. Watsonville Recycled Water Treatment Facility Project - In combination with the Coastal Distribution System, this project is considered the highest local priority because of the potential threat to the Pajaro Valley agricultural economy. Should the program for halting further seawater intrusion of the area aquifer be delayed, an estimated $372 million in agricultural production and 11,530 jobs (USBR, August 2003) would be lost. Seawater intrusion is an immediate and direct threat to this economic system. The Project provides 4,000 AFY of new water supply, brings very high leverage of other grant and local funds, has a very high direct benefit to the Disadvantaged community of Watsonville, and is widely supported by the local community. 2. PRIORITY 2 - Project 2. Coastal Distribution System - This Project provides 18,500 acre-feet in water distribution capacity in the Coastal Region. It is the key infrastructure for the combat and mitigation of seawater intrusion and its threat to the agricultural economy of the Lower Pajaro Valley as described in the previous section. The Project has very high leverage, has high benefit to the disadvantaged community of Watsonville and is widely supported and accepted as the key strategy in the seawater intrusion action plan contained in adopted BMP of PVWMA. 3. PRIORITY 3 - Project 6. Lower Pajaro River Levee Reconstruction Project: This project is a very high priority for the planning area given the threat to human life and safety and economic damage that will occur in the region without implementation of 100-year storm flood protection in the Lower Pajaro Valley. Average annualized direct losses to property are over $30 million per year. Indirect losses to the agricultural economy in flood years are over $26 million. This project has very high leverage. The project elements funded under this grant request will leverage an estimated amount of $157 million from the Federal Government ($116.5 million) and local benefit assessment funding ($40.5 million). The project has a very high benefit to the disadvantaged community of Watsonville

71 Pajaro River Watershed IRWMP Page PRIORITY 4 - Project 8. Erosion Control, Vegetative Treatment, and Riparian Restoration - This project advances agricultural Best Management Practices through targeted demonstration of erosion control, vegetative treatment and riparian restoration methods on agricultural properties in key locations in the planning area to reduce erosion, and NPS contaminants before they get into the Pajaro River System and flow into the Monterey Bay National Marine Sanctuary. This project enjoys very large leverage in that it promotes proper land stewardship on actively farmed floodplain lands. 5. PRIORITY 5 - Project 7. Soap Lake Floodplain Preservation Project - This project is a critical and central element of the Pajaro 4 County flood Management strategy. Without protection of the Soap Lake lands for flood storage, the downstream flood protection will be rendered inadequate. Additionally, the project provides one of the best locations in the watershed to accomplish major eco-system restoration in concert with the water management strategies of flood management and groundwater recharge. The only reason this Project is ranked behind the above 4 is that the acquisition of Soap Lake floodplain properties can be accomplished over a longer timeline. Its urgency is somewhat less than the Projects ranked before it. 6. PRIORITY 6 - Project 3. Corralitos Creek Surface Water Intake Enhancement Project (Fish Ladder) - This Project is necessary for the preservation of 1,100 AFY of water for the City of Watsonville. It is only ranked below the other projects because its relative size (cost and supply) and its urgency is somewhat less than the Projects ranked before it. 7. PRIORITY 7 - Project 4. Aromas Wellhead Treatment Project - This Project is necessary for the preservation of 300 AFY of water per year in the PVWMA BMP. It is as critical as the Corralitos Project but is given a lesser priority because the volume of water preserved is less. 8. PRIORITY 8 - Project 5. Groundwater Study and Biological Assessment of Upper Pajaro River - The studies included in the Proposal are ranked lowest of the projects seeking funding because they are studies, not actual implementation Projects. Nevertheless, these studies are critical to the accomplishment of integration of environmental restoration into Planning Area water management strategies. Additionally, these studies bring very high leverage. The Nature Conservancy partnership in the Planning Collaborative is invaluable. In addition to bringing credibility and conservation funding investment to the IRWMP, TNC along with the public entities can leverage these studies into a project implementation funding partnership with the US Army Corps of Engineers under its 4 county Watershed Study Authorization. The ACE has agreed to carry-out an eco-system restoration program parallel with the Lower Pajaro River Levee Reconstruction Project to assure that the Levee Project is constructed and operated in an overall watershed context. The ACE in a memorandum of Understanding with the permitting agencies for the Levee Reconstruction Project agreed to pursue upper watershed project opportunities to reduce sediment into the Lower River through the development of geomorphic and riparian restoration. Recently, TNC and the ACE have flown the area and begun dialog on the approach and strategy. These studies are critical to the development of viable projects. 9. PRIORITY 9 - Pajaro River Parkway Plan (No Funding is being requested for this Project) This plan ranks the lowest of the Immediate-term projects as it is a plan and does not implement a project. However, the plan will identify parkway, recreation, and public access opportunities that may be incorporated into the Levee Reconstruction Project. Overall Element Prioritization (Near-Term Priorities) 1. Import Water Project (with enhancements to be defined in ongoing IRWMP process) 2. Lower Pajaro River Levee Reconstruction Project, Phase 2 3. Coward Creek Watershed Stream Bank Stabilization 4. Soap Lake Floodplain Preservation Project, Phase 2 5. Green Valley Watershed Stream Bank Stabilization 6. Tequisquita Slough Wetland Treatment Project 7. Pajaro River Flood Warning and Damage Reduction Project

72 Pajaro River Watershed IRWMP Page 3-72 Overall Element Prioritization (Long-Term Priorities) 1. Soap Lake Floodplain Preservation Project (Preservation of flood attenuation), Phase 3 The top nine projects (immediate-term projects) are all expected to be implemented as long as funding for the projects can be established. It should be recognized that implementation of the projects above will be completed by a number of agencies with different levels of resources. Therefore, the priority list should not be construed as the order in which project are to be implemented, rather it is a list of recommended top priorities in the region for which efforts toward implementation should be made. 3.2 Prioritization Methodology A two-phased approach was developed to screen, integrate and prioritize projects: first for those projects ready for immediate implementation (in the next one to two years) and second for those projects to be carried out in future years (near- and long-term implementation). This section focuses on the prioritization steps C1, C2, and D shown in Figure 3-1. This three tiered prioritization approach was developed recognizing the need to prioritize projects based on 1) implementation requirements, 2) project prioritization within each program, and 3) project prioritization across all three programs. Figure 3-1: Screening, Integration, and Prioritization