CECW-PC  (10-1-7a)                                                                                   14 January 2003

 

 

 

MIDDLE CREEK, LAKE COUNTY, CALIFORNIA

FLOOD DAMAGE REDUCTION AND ECOSYSTEM RESTORATION

 

FINAL INTEGRATED FEASIBILITY REPORT AND

ENVIRONMENTAL IMPACT STATEMENT/REPORT

 

SEPTEMBER 2002

 

HQUSACE POLICY COMPLIANCE REVIEW TEAM ASSESSMENT

 

 

1.  Reference CESPD-CM-P memorandum of 10 October 2002, subject: Transmittal of Final Integrated Feasibility Report and EIS/EIR for the Middle Creek, Lake County, California, Flood Damage Reduction and Ecosystem Restoration Project.

 

 

2.  HQUSACE COMMENTS ON DRAFT FEASIBILITY REPORT AND EIS/EIR

 

            a.  OMRR&R Costs.  The district refers to OMRR&R costs being described in Appendix A, Basis of Design, when it may be more appropriate for this to be in the Engineering Appendix.

 

District Response:  Concur.  All references to Appendix A in the document have been changed from Basis of Design to Engineering Appendix.  See pages 3-7 and 7-3 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

            b.  Project Recommendations.  The selected plan description and discussions should contain a specific description of the portion of the existing authorized project that is to be deauthorized.

 

District Response:  Concur.  Descriptions of the recommended plan have been revised to clearly state the portion of the existing authorized project that is to be deauthorized.  See pages 3-9, 7-1, and 9-1 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

            c.  Consistency of Numbers.  Page S-5 of the report summary states that Alternative 2 provides $280,000 in average annual benefits and other locations within the main report (page 6-2 and following) indicate benefits of $285,000.  Page 6-3 of the main report indicates annual costs of $2,604,000 but Table 6-2 on the following page identifies the annual cost to be $2,609,000.  Recommend the district do a scrub of the numbers in the report to insure consistency.

 

District Response:  Concur.  Prior to issuance of the final report, all numbers will be reviewed and revised, as necessary, to ensure consistency throughout the document.  See pages S-6 and 6-2 for $285,000, and pages 6-3 and 6-4 and Table 6-2 for $2,604,000 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

d.  Net Benefits.  The report summary was succinct and informative; however, paragraph S.8.1 could lead the reader to the conclusion that the district is recommending a project with negative net NED benefits; in fact, the report concludes that flood control is economically justified.  Paragraphs S.8.2 and S.8.3 are similarly confusing.  Recommend the district clarify by including information on costs allocated to flood control and the resulting positive NED net benefits.

 

District Response:  Concur.  Paragraphs S.8.1 through S.8.3 have been revised using the allocated costs for flood control and the resulting positive NED net benefits and appropriate benefit/cost ratios.  See page S-6 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is UNRESOLVED. See paragraphs 3.e and  3.f, below.

 

e.  Separable Costs Remaining Benefits (SCRB) Method.  The district used the SCRB method to allocate joint costs to the 2 project purposes for Alternatives 2, 3, and 4.  The SCRB method requires the identification of Alternative Costs for each of the project purposes.  Once the Alternative Costs are identified, they are then used as the basis for determining the Separable Costs.  With the exception of the Alternate cost for Flood Control for Alternative 2 (which is the cost of Alternative 5), it is unclear where the Alternate Costs came from.  That makes it difficult to assess whether the analysis was done correctly.  The district should include a more detailed discussion of the source of the Alternate Costs, show first and annualized costs for each in the report, and indicate how the numbers were used in the SCRB tables.  A quick assessment of the tables provided in the report turned up some apparent discrepancies in the tables.  The outcome did not impact the identification of the NED Alternative, Alternative 4.

 

District Response: The Least Cost Alternative Plans were identified as the annual costs of both the Without Ecosystem Restoration First Cost and the Without Nonstructural Flood Damage Reduction First Cost.  As explained in the text under Variations, the Least Cost Alternative for Ecosystem Restoration was Alternative 2 (minus cultural resources mitigation costs).  The Least Cost Alternative for Flood Damage Reduction was Alternative 2 First Costs minus restoration plantings cost and the prorated 91 percent of PED and construction management costs.  Since PED and Construction Management costs were developed for a multi-purpose project, it was necessary to determine those costs for a single purpose project.  The restoration costs were compared to the total construction costs and were determined to be 9 percent of the total construction costs.  The ratio was applied to PED and Construction Management costs, resulting in single-purpose PED and Construction Management costs being 91 percent of the multi-purpose PED and Construction Management costs.  Alternative 2 was selected since it maximized NED benefits and was a cost-effective solution.  The discussion in Section 6.2.3 has been expanded to explain the source of the Alternate Costs.  See pages 6-4 through 6-7 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is UNRESOLVED. See paragraphs 3.e and 3.f, below.

 

f.  Protection of Tribal Lands.  The only alternative discussed in the report for the protection of Tribal lands was a ring levee.  The 17 September 2001 PGM and district responses contain excellent information regarding the district’s efforts to determine the best manner to protect or otherwise address the tribal lands and associated issues.  Clearly the district has evaluated the cost effectiveness and implementability of acquisition as an alternative measure.  That information should be included and the analyses documented in the formulation section of the subject report.

 

District Response:  Concur.  The plan formulation section has been revised to include a discussion of formulating alternatives to deal with protection of the Tribal lands.  However, there is still an unresolved issue regarding the tribal lands since the tribe objected in public comments to the presence of the ring levee.  Formal consultation with the tribe has been initiated and a discussion has been added to the Executive Summary under Unresolved Issues.  See Chapter 3 and pages S-18 and S-19 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is unresolved. See comments 3.a and 3.i, below.

 

g.  Trade-off Analysis.  The discussion provided in paragraph 6.5.2 regarding the “trade-off analysis” for selection of the NED/NER plan should be strengthened to remove any ambiguity concerning which plan should be selected.

 

District Response: Concur.  The following paragraph as been added to 6.5.2:

 

“Alternative 2 provides an increase of 521 AAHU’s over Alternative 4 while Alternative 4 provides an increase of $7,000 net annual NED benefits.  This essentially is the trade-off between alternatives.  A cost per habitat unit comparison shows that this difference equates to $13 per AAHU.  The subjective value of a single AAHU is much greater than $13.  The habitat value of the large number of AAHU’s gained in going from Alternative 4 to Alternative 2 is worth the relatively small decrease in NED benefits.  Therefore, Alternative 2 was identified as the combined NED/NER plan.”   See page 6-19 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is UNRESOLVED. See paragraphs 3.e and 3.f, below.

 

h.  Real Estate. 

 

(1).   Paragraph 7.1.1, page 7-1 (Main Report) states that the project now includes a ring levee, drainage pipe and flap gate, and a pump station.  There was, however, no statement regarding OMRR&R of these features by the non-Federal sponsor.  The final report should clearly state this obligation in section 7.3.  The cost estimate should also be revised to include pump station costs.

 

District Response:  Concur.  The cost estimate has been revised to include costs of these features and the additional OMRR&R cost and responsibility.  Section 7.3 has been revised to include these obligations.  See page 7-3 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is unresolved. See comment 3.k, below.

 

(2).  Page 7-2, Main Report, states "Property owners and residents would be compensated for ... cost of relocating outside the floodplain."  The words "in accordance with the requirements of P.L. 91-646, as amended" should be added at the end of the sentence to avoid an overbroad expectation of payments.

 

District Response:  Concur.  The sentence has been revised to include the recommended phrase.  See page 7-2 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

(3).   The first paragraph of numbered paragraph 7.4, Main Report, indicates that some of the 1,600 acres proposed for fee acquisition in the Real Estate Plan (REP) is not required to implement the restoration purposes of the project.  It also indicates that later analysis may show acquisition of some interest in some of this acreage may be driven by takings implications.  However, no detail is provided and no plan presented.  The paragraph, and the REP, should be revised to describe what issues and acreage are at issue together with an acceptable plan for resolving the outstanding issues consistent with law and policy. 

 

District Response:  Concur.  The first paragraph has been revised to eliminate the discussion of a takings analysis.  The non-Federal sponsor intends to acquire all lands in fee title.  No easements would be required or pursued.  See page 7-4 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is unresolved.  See comment 3.j, below.

 

(4).  Paragraph 8.3.2, page 8-2, Main Report, should identify what agency will serve as the non-Federal sponsor and comply with the list of requirements contained in this paragraph.  REP statements in this regard should be reconciled.

 

District Response:  Concur.  The report and REP have been revised to identify Lake County as the non-Federal sponsor.  See page 8-2 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

(5).  The project schedule for Project Cooperation Agreement (PCA) execution and construction initiation contained in paragraph 8.5 conflict with those included in the REP.  The conflict should be reconciled.

 

District Response:  Concur.  The schedules have been revised and now are consistent.  See page 8-5 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

i.  Real Estate Plan.

 

(1).  The second paragraph of numbered paragraph 1 of the REP should be revised to clearly describe what agency will serve as the non-Federal sponsor for the PCA. Descriptions of the non-Federal sponsor contained in other REP locations should be consistent with paragraph 1 (see paragraphs 7, 10, and 11, and the Non-Federal Sponsor Assessment).

 

District Response:  Concur.  Lake County will serve as the non-Federal sponsor.  All references to the non-Federal sponsor in the REP have been changed to reflect Lake County as the non-Federal sponsor.  See second paragraph under “1.  Introduction  of the REP.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is unresolved. See comment 3.h, below.

 

(2).  Information on the availability of replacement housing should be added to paragraph 10.

 

District Response:  The following text has been added to the REP:  “An analysis on the availability of replacement housing was performed by Lake County recently.  The analysis concluded that currently there are sufficient properties available in the area to relocate displaced property owners that currently live within the Project Area.”  See second paragraph under “10.  Public Law 91-646 Relocations And Benefits” of the REP.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

(3).  Paragraph 13 references a non-existent exhibit.  A map showing project features (including the ring levee) should be added to the REP or the paragraph should reference a location in the main report that contains such a map.

 

District Response:  Concur.  Exhibit 1 of the REP was inadvertently left out of the draft.  A map showing project features has been included in the REP.  See EXHIBIT A of the REP.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

(4).  Paragraph 16 contains insufficient and conflicting information regarding whether there is a need and responsibility to modify the Nice-Lucerne Road, Highway 20, or the various utilities listed.  Because safety or other policy factors may drive the inclusion of the proposed roadwork in the project rather than relocation concepts per se, it is critical that the Corps make a final decision now on whether these items should be classified as relocations.

 

District Response:  Final decisions have been made regarding relocations.  The REP will address the decisions made.  See “16. Facility/Utility Relocations” of the REP.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is unresolved. See comments 3.a and 3.f, below.

 

(5).  The REP should be revised to describe what acreage and interests are required to support the ring levee, drainage pipe, and pump station.  If the Tribe owns the lands on which these features are located, the REP should also describe the acquisition plan for such acreage and interests.

 

District Response:  The REP has been revised to the following text:  “The proposed ring levee in the selected plan does not require additional acreage or interests.  The ring levee, the drainage pipe through the levee, and the pump station will be located on project land.  The project land, as stated above, is to be acquired in Fee Simple Title.”  See second paragraph under “5. Real Estate Requirements” of the REP.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

j.  Middle Creek Restoration Project.  Section 2.2.1, Middle Creek Restoration Project, page 2-6, refers to a restoration project that will be constructed by the Robinson Band of Pomo Indians.  The first sentence is not clear what the pronoun is referencing – the restoration portion of the recommended project or something else.  Suggest substituting “a” for “this”.  The district should revise this sentence to clarify.

 

District Response:  Concur.  The sentence has been revised to clarify the project being referred to in the sentence.  See page 2-6 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

k.  Future Without Project Conditions.  Second paragraph, third line, delete “are”.

 

District Response:  Concur.  The deletion has been made.  See page 2-9 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

l.  Adaptive Management.  The draft report does not appear to follow Corps policy for monitoring and adaptive management, ER 1105-2-100, 3-5.b(8), page 3-25.  Monitoring may be necessary to determine if the predicted outputs are being achieved, not just to allow the non-Federal sponsor and the public to comment on the post-construction requirements and responsibilities as indicated in Appendix J.  Additionally, Corps policy has imposed time and cost constraints on monitoring and adaptive management.  Cost shared post-implementation monitoring will rarely be required.  If cost shared post implementation monitoring is being considered, it must be clearly defined, justified, and the period of cost shared monitoring shall not exceed five years following completion of construction.  The cost of monitoring included in the total project cost and cost shared with the non-Federal sponsor shall not exceed one percent of the total first cost of ecosystem restoration features.  The report should be revised to clearly state the purpose for and the constraints on cost shared monitoring and adaptive management.

 

District Response: As stated in the Introduction, the draft Monitoring and Adaptive Management Plan was included in the draft FR/EIS/DEIR to allow the non-Federal sponsor and the public to comment on the plan. The stated purpose of the plan is:  “. . . identifies and describes monitoring and adaptive management features that would ensure the protection or restoration of environmental resources present in the study area.  This plan provides necessary actions and commitments to assure the success of the restoration project.”  The District believes that this purpose is in full compliance with Corps policy.  However, the plan has been revised to clearly state the cost and time limitations of Federal participation in the monitoring and adaptive management and to clearly outline the non-Federal sponsor’s responsibilities.  See pages 9 and 10 of Appendix J.

 

HQUSACE Policy Compliance Review Team Assessment:  The issue remains UNRESOLVED; see 3.l, below.

 

m.  Federal Responsibilities.  A list or statement of Federal responsibilities is not required by law; its intent in any event is served by the text of the entire report itself and making a separate listing is redundant.  However, including such a list in close proximity to the list of non-Federal requirements is often reassuring to the non-Federal interests.  Nonetheless, such list or statement should contain language which indicates that by its listing it is not intended to imply the Government’s commitment to construction of the project prior to authorization and appropriation of funds by the Congress.  Section 8.3.1, Section 8.4, and Section 8.5 should be revised accordingly.

 

District Response:  All cited sections have been revised to state that the listing does not imply the Government’s commitment to construction prior to authorization and appropriation.  See pages 8-1, 8-2, and 8-4 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

n.  Non-Federal Responsibilities.  Current Federal law requires non-Federal participation in the financing of water resource projects in accordance with WRDA 1986, as amended, and requires that the non-Federal interest enter into written agreements with the Secretary of the Army to furnish its required cooperation for the project.  A complete and accurate list of local cooperation is required by Section 905 of WRDA 1986 and ER 1105-2-100.  The report should verify and specifically state that the flood damage reduction measures are nonstructural, and remove 8.3.2a.(6) from the items of local cooperation.  Further, the remaining items of local cooperation should be revised as follows:

 

“p.  Participate in and comply with applicable Federal flood plain management and flood insurances programs.”

 

“q.  Agree that, as between the Federal Government and the non-Federal sponsor, the non-Federal sponsor shall be considered the operator of the project for the purpose of CERCLA liability, and, to the maximum extent practicable, operate, maintain, repair, replace, and rehabilitate the project in a manner that will not cause liability to arise under CERCLA.”

 

“r.  Inform affected interests, at least annually, regarding the limitations of the protection afforded by the project.”

 

District Response:  Concur.  Item 8.3.2a (6) has been deleted.  The introduction now states specifically that the flood damage reduction measures are nonstructural.  Items p, q, and r have been added.  See page 8-4 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

            o.  Conclusions and Recommendation.  When a project is authorized by Congress, the recommendations contained in the feasibility report become the basis for proceeding with the project as a Federal undertaking.  Authorizing language normally refers to the recommendations of the Chief of Engineers, which are derived from the recommendations of the District Commander.  Accordingly, the wording of the recommendations, incorporated by reference in the authorizing act, requires special attention.  The report’s recommendation section should be revised to adequately describe the recommended plan for implementation, including any mitigation and list the items of local cooperation requirements, prefaced by a statement that the non-Federal sponsors shall, prior to implementation, agree to perform the required items of cooperation. 

 

District Response:  Chapter 9, Conclusions and Recommendations, has been revised to more adequately describe the recommended plan, including any mitigation actions.  The format has been adjusted to more accurately reflect other feasibility studies recently sent forward to HQUSACE for approval.  That format leaves the details requested in the comment in the Conclusions section.  The Recommendations section uses the standard language previously approved by HQUSACE for other studies.  Items of local cooperation are identified in Section 8.3.2 in the previous chapter and are not reiterated in Chapter 9.  This is consistent with previously approved feasibility studies prepared by the District during this fiscal year.  See pages 9-1 through 9-3 of the main report.

 

HQUSACE Policy Compliance Review Team Final Assessment:  The issue is resolved.

 

3.  HQUSACE COMMENTS ON FINAL FEASIBILITY REPORT AND EIS/EIR

 

          a.  Justification for Project Features.

 

(1).  Ring Levee.  The report should document in more detail the purpose of, and justification for, the ring levee.  Page S-2 states the following:  “A ring levee would be constructed to provide an existing level of protection for the Tribal lands.” Page 3-9 states the following: “the ring levee would be constructed to the same height as the existing project levees plus three feet to account for settlement.  The ring levee would be approximately 3,700 feet in length and is between 10-17 feet high depending upon ground elevation.  A pump station would be constructed to provide drainage.  No cost for this pump station has been included in the M-CACES cost estimate.”  The report indicates that project area levees no longer function as designed due to subsidence.  The annual exceedence probability is reported as 0.286, or 1 chance in 3.5 of flooding in any year.  Verify that the proposed ring levee would not provide a greater level of protection to the Robinson Rancheria lands than is currently afforded by existing project levees.  What are the without-project and with-project annual exceedence probabilities associated with flooding of the Tribal land in question?  Show that the cost of any incremental flood damage reduction above existing conditions is incrementally justified.  Further, any such incremental costs should be charged to the flood damage reduction project purpose.  If not incrementally justified, provide other information in support of an exemption to policy: Is this feature required to cure impacts to the tribal lands that would be caused by the restoration project?  Given the special status of the tribal lands, are there environmental justice considerations?  How is the proposed pump station to be funded since it is not included in the project cost?  The project cost estimate should be corrected as appropriate. Also see comment 4.i.

 

            (2).  Road Raisings.  The project proposal includes raising short segments of the Nice-Lucerne Cut-Off Road and Highway 20.  The economic justification for these road raisings is not clearly documented in the report.  It does not appear that this work would be required to mitigate any induced flooding that would be caused by the proposed restoration features.  Provide information as why the road raise features are needed to realize benefits of the project proposal. See also comment 4.n.(6).

 

 (3).  Modification of Footings on PG&E Transmission Towers.  The report indicates that the footings of the PG&E Transmission towers are currently 4 to 9 feet below the elevation of the 100-year floodplain.  The report proposes that the footings of these transmission towers be raised and access to the towers be provided via a pedestrian boardwalk.  Document that this work is justified mitigation to cure impacts of the restoration project.  See also comment 4.n.(6).

 

            b.  Economic Evaluation. 

 

      (1).  Equivalent Annual Damages By Category.  The estimates of without project damages and with project benefits cannot be evaluated for reasonableness.  Provide a listing of expected equivalent annual damages by damage category: structures, contents, agriculture, automobiles, roads, and emergency response, for evaluation and inclusion in the final documentation package.

 

      (2).  Economics Appendix.  Data shown in the economic appendix call to question the validity of the economic evaluation. 

 

            (a)  Agriculture Damages.  Table 2a shows total acreage for potential crop damages as 8,753.  However, this total is obtained by summing the number of acres that would be inundated by floods of seven (7) distinct frequencies.  The total affected acreage cannot exceed that shown inundated by the 500-year frequency event, or 1,339 acres.  Based on the information provided in Table 2B, it appears that agriculture damages should not exceed about $146,600 on an equivalent annual basis.  Verify that the estimate of agriculture damages has not been over stated.

 

            (b)  Auto Damages.  Table 3 suggests that “potential total auto damages” are $1,247,000.  However, it does not appear that this number has been weighted by the probability of storm occurrence.  It appears that auto damages should not exceed about $33,700 on an equivalent annual basis.  Verify that the estimate of auto damages has not been over stated. 

 

            (c)  Road Damages.  Table 4 shows total potential roadway damages are $1,114,000.  Again, it does not appear that road damages in Table 4 have been weighted by the probability of storm occurrence.  It appears that road damages should not exceed about $30,500 on an equivalent annual basis.  Verify that the estimate of road damages has not been over stated. 

 

            (d)  Emergency costs.  Emergency costs (Table 5) appear to have been treated similarly to auto and road damages.  Verify that the estimate of emergency costs has not been over stated. 

 

                         (e)  Table 6.  This table shows that the expected probability of flooding (expected annual excedence probability) in any year associated with without project conditions is 0.286, or 1 chance in 3.5.  The last column of this table is labeled “Equivalent Year.”  This heading should be deleted and replaced with the more precise terminology: “1 in X Chance per Year.”  Use of the “equivalent year” terminology invites misinterpretation and misuse of the risk-based performance statistics; consequently, it should be avoided. 

 

            c.  Displays.  Provide project displays that clearly show only those components (structures to be bought out, etc.) included in the single-purpose flood damage reduction plan. 

 

            d.  Inconsistent Statements.  Paragraph S.5.5 Alternative 5 states the following;” Alternative 5 consists of measures 4, 5, and 6.  This is the non-structural alternative for flood damage reduction.”  This statement is not understood.  The report indicates that measure 4 “… maximize flood flow residence time…” in the study area.  Please include clarifying text as appropriate.

 

            e.  Separable Costs.   The report recommends Alternative 2 as the Combined NED/NER Plan for the Middle Creek area.  It is not clear whether the recommended plan is a Combined NED/NER Plan or just an ecosystem restoration plan with incidental flood damage reduction benefits.  The information provided on page 6-5 of the report shows that there are no separable costs associated with the non-structural flood damage reduction features included in the plan.  If there are no separable costs, the flood damage reduction benefits are incidental, thus the recommended plan is not a Combined NED/NER Plan and there is no need for estimating separable costs and allocating costs for formulation purposes.  However, the estimates of separable costs for flood damage reduction and ecosystem restoration are questionable based on the information presented in the report.  Responses to the following concerns will help clarify the type of plan that is being recommended and the type of analysis required.

 

(1).  The recommended plan consists of a combination of six management measures (see Table 3-1).    Four of these measures produce ecosystem restoration outputs (breaching the existing levee, planting native vegetation, creating islands and excavating sloughs, channels and ponds).  Two of the measures produce flood damage reduction benefits relocating residents out of the floodplain and constructing new cross and ring levees).  Ecosystem restoration measures cannot be implemented unless residents of the floodplain are relocated.  The new cross and ring levees are apparently provided to protect against existing conditions flooding (see Page A-22).  There is no reference in the report to the levees as mitigation features (for increased flooding due to breaching the existing levees) or as a dual-purpose feature, that is, protecting against existing floods and mitigating for increased flooding.  The cross levees were eliminated from the description of the final recommended plan but no explanation for this decision was found in the report.  The comments below assume that they are included in the recommended plan.

 

(2).  Based on this information, the flood damage reduction plan (without ecosystem restoration) first cost should include the cost of relocation, the cross levees and the ring levee and associated PED and construction management costs.  The cost of this plan was estimated by just excluding the cost of restoration plantings and associated PED and construction management) from the cost of the multipurpose project.  This results in underestimating the separable costs for ecosystem restoration.

 

(3).  On the other hand, the ecosystem restoration plan (without flood damage reduction) first costs should include the costs of breaching the levees, creating the islands, planting vegetation, relocation, creating the channels, sloughs and ponds and the associated PED and construction management costs.  The costs for this plan are based on the assumption that all measures are required for ecosystem restoration.  Unless the cross and ring levees are only needed for mitigation, the separable costs for flood damage reduction are underestimated. 

 

(4).  Issues to resolve:

 

(a).  Clarify the purpose of the cross levees and ring levee.

 

(b).  Clarify if the cross levee is or not included in the recommended plan and provide rationale.

 

(c).  Revise estimate of separable costs, clearly defining the measures included in each plan without a given purpose and the rationale for including them.

 

            f.   Cost Allocation.  The cost allocation procedure presented in the report has a major flaw.  The least cost alternative used for allocating costs to ecosystem restoration is the alternative under evaluation.  The district recognizes this limitation and requests an exception to the policy (paragraph 6, EC 1105-2-129) based on arguments that are not acceptable.  The choice of least cost alternative is a critical parameter that has a significant impact in the final distribution of costs and, in this case, the selection of the recommended plan.  The requirement to use an alternative different from the plan under evaluation is not subject to exceptions.  Identify a least cost alternative different from the plan under consideration and revise the cost allocations accordingly.

 

            g.  The comparison of alternative plans shown on Page 6-18 would need to be revised in consistency with the resolution of the comments on separable costs and cost allocation (comments 4.e and 4.f above).

 

            h.  Non-Federal Sponsor.  Comment responses, the main report, and the text of the Real Estate Plan (REP) all express that Lake County will be the non-Federal sponsor for the project.  However, the Capability Assessment included in the REP indicates in one location that it will be the Lake County Flood Control and Water Conservation District and, in another location, that it will be that local District plus the State of California Reclamation Board. In its response to this comment, Sacramento District should explain what political entity will be the sponsor.  If the local district will be the sponsor, Sacramento District should explain the authority of that district, not the County per se, to sponsor the project.  Following such response and consensus on this issue, the report including the REP should be revised accordingly.

 

i.  Tribal Lands Issue.  While the report indicates that the project will go forward without including Tribal lands, it also indicates that there is "still an unresolved concern regarding the [T]ribal lands." See District Response to Comment 3.f.  Further, the report indicates that no option preferred by the Tribe would be adversely affected by proceeding to authorization with the ring levee proposal.  See pp. 7-8 and p. S-19 of the main report.  Because the Tribe's preferred option reportedly includes acquisition of additional lands with abandonment of the ring levee proposal and includes raising its parking lot out of the floodplain, there is concern as to whether or not the Corps would have the authority to change the project after authorization unless those options are also authorized.  See Tribal Resolution No. 8-17-02A included in Appendix I.  The district should explain its position followed by report changes determined appropriate after discussions on this issue.  The district’s Office of Counsel should provide an opinion on this matter.

 

j.  Added Acreage.  The district's response to Comment 3.h.(3) and the report on page 7-4 suggests that some of the 1600 acres proposed for fee acquisition is not required to implement the project but is being acquired for other reasons related to increased flooding.  No helpful explanation is contained in the report; and the REP is silent here.  Prior to revising the report (and REP as needed), the district should advise how many acres are in this category of project LER and why it is being included.

 

k.  Pump Station.  Page 7-1 of the main report states that "[n]o cost for this pump station has been included in the M-CACES cost estimate."  The district should either provide an adequate reason for exclusion of such costs or revise the report to include them.

 

l.  Monitoring & Adaptive Management.  Page 7-3 of the main report and page 10 of Appendix J contain statements that would make the Corps responsible for maintenance of non-structural project features after construction completion but during the establishment period for plantings.  These statements should be revised to state that all features once constructed will be turned over to the Sponsor for its OMRR&R except that the Government will continue to be responsible for monitoring and plant replacement (with the costs of both activities being shared as part of total project costs) during the defined establishment period.  Further, the reference to "for the life of the project" contained in the third sentence of the “Responsibilities” section on page10 of Appendix J should be deleted and replaced with "for so long as the project remains authorized".  This sentence should also state that monitoring will continue on an as needed basis, in accordance with the O&M manual, to assure that the ecosystem restoration objectives are being met for as long as the project remains authorized.

 

m.  Borrow Sites.  Page 1-2 of the "Addendum to Geotechnical Report" included in Appendix A states that an unspecified off-site borrow source "was assumed for the project construction cost estimate."  The REP is silent on the need for a borrow area.  The district should advise how much material will be required and justify why provision of borrow material should be viewed as a construction item rather than requiring the Sponsor to provide a real estate interest to facilitate borrow.

 

n.  Real Estate Plan (REP).

 

(1).  The REP should be revised to identify the sponsor of the existing project and, to the extent that portions of that project will be required for the proposed project, identify the owner (and interest) of the existing project lands, and the plan for the sponsor of the proposed project to acquire such interests.

 

(2).  Paragraph 5 states that there are "99 privately owned parcels" but "66 ownerships."  Explain or revise as appropriate.

 

(3).  The interest owned by the Drainage District should be added to paragraph 8.

 

(4).  To avoid claims arising out of authorization, Table 10.1 should be revised to indicate that "Payment Per Owner" is an estimate only.

 

(5).  The fee acquisition proposal contained in paragraph 15 should be revised to read:  ",subject to existing easements that are determined to not be inconsistent with the project purposes,".

 

(6).  Utility/Facility Relocations.

 

            (a).  Nice-Luzerne Road:  Page A-23 of Appendix A to the report contains the following statements regarding the bridge over Rodman Slough on Nice-Lucerne Cut-Off Road:  "This design requirement [ie/ a new bridge] addresses the restoration objective to Reduce Flood Damages and Restore Fish and Wildlife Habitat."  "The new bridge provides passage of lake water both into and out of the restoration area.  Currently, Nice-Luzerne Cut-Off Road is subject to flooding ... .  The bridge will provide a transfer of water between the restoration area and reducing water level elevations."  Paragraph 16 of the REP simply states that a new bridge "will be placed" and that the new bridge will be located above the 100-year storm level.  Further, the REP says the road, owned by Lake County, "will have to be raised to avoid having a large dip between bridges."  The report must provide persuasive reasoning why these work items are required for implementation of the project.  Following discussion on these issues, the district should make appropriate revisions to the report and the REP.

 

            (b).  Other Relocations Mentioned in the REP:  Similar to the discussion for the Nice-Luzerne Road, the REP contains no information regarding why any proposed relocation work is required as a result of the project.  Absent the requisite degree of impact on the project or on the facility at issue, or a driving policy rationale, ownership of a "compensable interest" is immaterial to inclusion of the work in the project.  The District must provide persuasive reasoning why these work items are required for implementation of the project. Following discussion of these issues, the District should make appropriate revisions to the report and the REP.

 

 

 

                                                                                     JOHN W. BELLINGER

                                                                                     Policy Compliance Review Manager

 

 

 

CECW-PC (10-1-7a)                                                                                     March 5, 2003

 

Middle Creek, Lake Co., Calif – Flood Damage Red. and Ecosystem Restoration

Final Feas. Report and FEIS

 

Legal Comments – from CECC-G

 

1.  The report contains a description and discussion of the existing authorized project and states that the existing authorized project is to be deauthorized.  It does not necessarily follow that authorization of the Middle Creek project in fact “deauthorizes” the existing flood control project.  Nor is it readily apparent that a deauthorization is necessary.  Instead, it seems as if the existing flood control project will be modified to provide nonstructural flood protection.  While several sections of levee will be breached, residences will be relocated out of the floodplain to limit flood damages.  In essence, the Corps is changing from structural to non-structural, but the Middle Creek project will still serve the same purpose of flood damage reduction.  Recommend revising the report to change the terminology from de-authorizing the previous project to modify the project.  In particular, revise Section 9 page S-17, Section 3.4.1 page 3-4, Section 3.6.2 page 3-9 and 3-12, Section 3.6.3 page 3-13, Section 3.6.4 page 3-15, and Section 7.1.1 page 7-1.

 

2.  In various sections the report recommends monitoring in the project area; however there seems to be no connection to subsequent adaptive management.  Please review and make sure that the recommended plan complies with Corps policy (ER 1165-2-501, EP 1165-2-502).

 

3.  Section 6.2.2 Costs does not accurately describe the cost sharing for this project.  Section 103 of WRDA 1986 as amended provides that at anytime during the construction of a project, if the Secretary determines that the costs of land, easements, rights-of-way, dredged material disposal areas, and relocations for the project, will exceed 35 percent, any additional costs for the project shall be a Federal responsibility and shall be contributed during construction as part of the Federal share.  Section 103 does not provide for reimbursement.  In addition, cultural resources will not be cost shared 100% Federal.  Instead cultural resources data recovery costs in excess of 1 percent of the authorized total project costs will be cost shared.

 

4.  Full resolution/compliance with all laws and regulations and Executive Orders must occur prior to approval of the report.

 

5.  Recommend revising the first paragraph of section 8.4 as follows:

 

            Should Congress authorize the Middle Creek Flood Damage Reduction and Ecosystem Restoration project and appropriate funds for the construction, Federal and non-Federal obligations and requirements will be further defined in a PMP and a Project Cooperation Agreement (PCA).  The non-Federal funds will not need to be provided until after Congress has appropriated construction funds and the PCA is signed.

 

6.  Section 8.5 the project schedule should be revised.