City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00226 3/28/2023 Consent Item 1.
Agreement Approval: Two Rivers Trail Project Phase II (K15125000) File ID: 2023-00226
Location: District 4, Represented by Mayor Steinberg
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute an Agreement with Sacramento River Ranch, LLC, for an amount not to exceed $363,990.
Contact: Adam Randolph, Senior Engineer (916) 808-7803, [email protected]; Judy Matsui-Drury, Supervising Engineer (916) 808-7610, [email protected]; Ofelia Avalos, Engineering Services Manager (916) 808-5054, [email protected], Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Additional Description/Analysis
Issue Detail: The Two Rivers Trail Project is intended to provide a link between the Jedediah Smith Trail on the north side of the Parkway, the Sacramento River Parkway, the Sacramento Northern Bikeway Trail, the future Ueda Parkway trails, and the 20th Street bike connection to the Central City.
The City has completed environmental review and preliminary design for the trail project. In connection with those actions, the City received an approved biological opinion from the United States Fish and Wildlife Service (USFWS) on March 21, 2021. This opinion required that the City purchase 212 Valley Longhorn Elderberry Beetle (VELB) mitigation credits from USFWS-approved mitigation banks. Due to unavailability of that number of mitigation credits, the City recently reopened the consultation with USFWS to request modification of the terms of the credit purchase. While this consultation is revisited, the City has been advised by Caltrans staff to secure any mitigation credits while they are still available.
The only mitigation credits currently available are through Sacramento River Ranch LLC. With this action, the City will purchase the last 66.18 mitigation credits available.
File ID: 2023-00226 3/28/2023 Consent Item 1.
Policy Considerations: The Two Rivers Trail Project Phase II is consistent with the City General Plan goals and key policies of promoting safety and enhancing livability, sustainability, and economic vitality. The project promotes the development of a connected network (General Plan ERC 2.1.2), connections to other trails (General Plan ERC 2.4.3), providing multi-modal choices (General Plan M
1.2.1), and providing a continuous bikeway network (General Plan M 5.1.3). The project is consistent with the Mobility Element to create a well-connected transportation network through integration of recreation and community facilities with other public spaces. The project is a near-term goal for the bikeway implementation plan.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The City approved an Environmental Impact Report for the Two Rivers Trail Phase II project on February 4, 2020.
National Environment Policy Act (NEPA): Caltrans is the lead agency for NEPA on this project and approved a Categorical Exclusion in compliance with NEPA on August 29, 2022.
Sustainability: The Two Rivers Trail Project Phase II is consistent with the City’s sustainability goals to help improve the health of residents by promoting walking and bicycling, and to create a healthier urban environment by constructing bike paths. The project will also reduce dependence on the private automobile, decrease the use of fossil fuels, and help meet air quality standards by providing an array of transportation choices near jobs for a balanced, healthy city.
Commission/Committee Action: The Two Rivers Trail Project Phase II was presented at the Active Transportation Commission on January 17, 2019, and April 21, 2022. Recommendations, including concerns about overall paved width of the trail and the trail connection at Glenn Hall Park were taken under advisement in the final design.
Rationale for Recommendation: The Two Rivers Trail Project Phase II will achieve the following objectives:
· Provide a vital link between the Jedediah Smith Trail on the north side of the Parkway, the Sacramento River Parkway, the Sacramento Northern Bikeway Trail, the future Ueda Parkway trails, and the 20th Street bike connection to the Central City; · Provide alternative transportation access for commuters and residents in the eastern part of the City, Sacramento State University, Central City, North Sacramento, East Sacramento, and Richards Boulevard area;
· Provide opportunities for educating trail users through interpretive signage, establishing a connection to the river, and the Parkway;
File ID: 2023-00226 3/28/2023 Consent Item 1.
· Provide an acceptable project to all authoritative agencies; · Complete the project in a manner that minimizes environmental impacts, given the proposed project’s location within the environmentally sensitive Parkway; and · Where feasible, design trail access points to comply with the requirements of the Americans with Disabilities Act (ADA).
Sacramento River Ranch, LLC has 66.18 conservation credits for sale, the only conservation credits currently available in the state. In order to partially meet mitigation requirements, set by USFWS and support advancement of the project, City staff recommends purchase of the conservation credits.
Financial Considerations: The estimated cost to complete preliminary engineering and perform environmental mitigation phase of the Two Rivers Trail Phase II Project (K15125000) is approximately $2.9 million. There is sufficient funding to execute the agreement for purchase of conservation credits with Sacramento River Ranch LLC for an amount not to exceed $363,990 and complete the preliminary engineering phase of the project.
Local Business Enterprise (LBE): Not applicable.
1 AGREEMENT FOR SALE OF CONSERVATION CREDITSRIVER RANCH VELB CONSERVATION BANK Two Rivers Trail Phase II Project Service File No. 08ESMF00-2020-F-2744-1 This Agreement is made and entered into this 28th day of March 2023, by and between SACRAMENTO RIVER RANCH, LLC, a Colorado limited liability company (“Bank Owner”), and CITY OF SACRAMENTO, a municipal corporation (“Project Proponent”), jointly referred to as the “Parties,” as follows: RECITALS A. Bank Owner has developed the River Ranch VELB Conservation Bank (“Bank”) located in Yolo County, California; and B. The Bank was approved by the United States Fish and Wildlife Service (“Service”) on June 9, 2005, and is currently in good standing with this agency; and C. Bank Owner has received approval from the Service to offer Valley Elderberry Longhorn Beetle conservation credits for sale as compensation for the loss of the federally listed Valley Elderberry Longhorn Beetle’s habitat as specified in the Conservation Bank Agreement through the River Ranch VELB Conservation Bank (“Bank Agreement”); and D. Project Proponent is seeking to implement the project described on Exhibit “A” attached hereto (“Project”), which would unavoidably and adversely impact listed Valley Elderberry Longhorn Beetle habitat, and seeks to compensate for the loss of Valley Elderberry Longhorn Beetle habitat by purchasing conservation credits from Bank Owner; and E. Project Proponent has been authorized by the Service (Biological Opinion File Number 08ESMF00-2020-F-2744-1) to purchase beetle conservation credits at a Service-approved beetle conservation bank; and F. Project Proponent has reopened consultation with the Service, but has been advised to proceed with purchase of available beetle conservation credits at a Service-approved beetle conservation bank; and G. Project Proponent desires to purchase 66.18 Valley Elderberry Longhorn Beetle conservation credits from Bank Owner and Bank Owner desires to sell to Project Proponent 66.18 Valley Elderberry Longhorn Beetle conservation credits at the Bank. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Bank Owner hereby agrees to sell to Project Proponent and Project Proponent hereby agrees to purchase from Bank Owner 66.18 Valley Elderberry Longhorn Beetle conservation credits (the “Conservation Credits”) for the purchase price of $363,990.00 2 (“Purchase Price”), in accordance with the terms hereof. The Purchase Price for the Conservation Credits shall be paid by wire transfer of funds or by check payable to “Sacramento River Ranch, LLC.” Upon receipt of the Purchase Price, Bank Owner will deliver to Project Proponent an executed Bill of Sale in the form attached hereto as Exhibit “B.” 2. The sale and transfer herein is not intended as a sale or transfer to Project Proponent of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest of the foregoing. 3. Project Proponent shall have no obligation whatsoever, by reason of the purchase of the Conservation Credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated or liable for the success or continued expense or maintenance in perpetuity of either the Conservation Credits sold or the Bank. Pursuant to the Bank Agreement and any amendments thereto, Bank Owner shall monitor and make reports to the appropriate agency or agencies on the status of any Conservation Credits sold to Project Proponent. Bank Owner shall be fully and completely responsible for satisfying any and all conditions placed on the Bank or the Conservation Credits by all state or federal jurisdictional agencies. 4. The Conservation Credits sold and transferred to Project Proponent shall be non-transferable and non-assignable, and shall not be used as compensatory mitigation for any other Project or purpose, except as set forth herein. 5. Project Proponent must deliver the Purchase Price to Bank Owner within 45 days of the date of this Agreement. After the 45-day period, if the Purchase Price has not been delivered, this Agreement will be considered null and void and Bank Owner shall have no further obligation hereunder. 6. Upon purchase of the Conservation Credits specified above, the Bank Owner shall submit to the parties listed in the Notices section of the Bank Agreement copies of: a) the Agreement for Sale of Conservation Credits; b) the Bill of Sale; c) the Payment Receipt (in the form attached hereto as Exhibit “C”); and d) an updated inventory ledger. The updated inventory ledger must detail: i) Project Proponent; ii) Project Name; iii) Status (sale complete/sale not complete); iv) Credit Sale Date; v) Service File Number; vi) U.S. Army Corps of Engineers File Number (if applicable); vii) Total Number of Credits Authorized to Sell; viii) Total Number of Credits Sold to Date (inclusive); and ix) Balance of all Credits Available. The inventory ledger should include all sales data from Bank opening/establishment to the present. **Signatures on the following pages** 3 IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first above written. BANK OWNER: SACRAMENTO RIVER RANCH, LLC, a Colorado limited liability company By: ____________________________________________ Date: _____________________ Name: Mark Heintz Its: Manager for Sacramento River Ranch, LLC PROJECT PROPONENT: CITY OF SACRAMENTO, a municipal corporation By: ____________________________________________ Date: _____________________ Name: Ryan Moore Its: Assistant City Manager Attested by: City Clerk Approved as to Form: City Attorney 4 APPROVED SERVICE: This Agreement partially fulfills the Conservation Measure to purchase Valley Elderberry Longhorn Beetle conservation credits as compensation for the permanent removal of suitable habitat/elderberry shrubs and for the temporary effects and trimming of elderberry shrubs, as specified in the Formal Consultation on the Two Rivers Trail Phase II Project, Sacramento County, California (Caltrans Fed. ID# CML 5002-155), reference Service File No. 08ESMF00-2020-F-2744-1 dated March 19, 2021. UNITED STATES DEPARTMENT OF THE INTERIOR FISH AND WILDLIFE SERVICE By: Title: Dated:
5 Exhibit “A” DESCRIPTION OF PROJECT TO BE MITIGATED Two Rivers Trail is a planned Class 1 bicycle and pedestrian trail along the south bank of the American River that extends from Tiscornia Park at Jibboom Street to the H Street Bridge in the City of Sacramento, Sacramento County, California. Phase II of the Two Rivers Trail, the proposed Project, includes the portion from the Sacramento Northern Bikeway Trail at North 18th Street through Sutter’s Landing Regional Park to the H Street Bridge. Phase I of the trail is complete and the city has completed a small portion of the Phase II trail within and as part of the Sutter’s Landing Regional Park. The proposed Project will construct the Phase II trail by extending the Class 1 trail east from the eastern right of way line of Union Pacific Railroad to the H Street Bridge. Phase II of the project has been divided into 6 trail segments. However, due to ongoing landfill closure activities and right-of-way approvals, no set timeline for the final design and construction of trail segments 1 and 2 is currently proposed. The city is only proposing to construct a portion of trail segment 3 along with trail segments 4 through 6 at the present time. ***** 6 Exhibit “B” BILL OF SALE Contract # RRVCB-23-_____ Two Rivers Trail Phase II Project Service File No. 08ESMF00-2020-F-2744-1 In consideration of $363,990.00, receipt of which is hereby acknowledged, SACRAMENTO RIVER RANCH, LLC, a Colorado limited liability company (“Bank Owner”), does hereby bargain, sell and transfer to CITY OF SACRAMENTO, a municipal corporation (“Project Proponent”), 66.18 Valley Elderberry Longhorn Beetle Conservation Credits in the River Ranch VELB Conservation Bank in Yolo County, California, developed by Bank Owner and approved by the U.S. Fish and Wildlife Service. Bank Owner represents and warrants that it has good title to the credits, has good right to sell the same, and that they are free and clear of all claims, liens, or encumbrances. Bank Owner covenants and agrees with Project Proponent to warrant and defend the sale of the credits hereinbefore described against all and every person and persons whomsoever lawfully claiming or to claim the same. DATED: _________________________ SACRAMENTO RIVER RANCH, LLC, a Colorado limited liability company By: ______________________________ Name: Its:
7 Exhibit “C” RIVER RANCH VELB CONSERVATION BANK VALLEY ELDERBERRY LONGHORN BEETLE CREDITS: PAYMENT RECEIPT PARTICIPANT INFORMATIONName: CITY OF SACRAMENTO Address: 915 I Street, Sacramento, CA 95814Telephone: 916-808-7803 Contact: Adam Randolph PROJECT INFORMATION Project Description: Two Rivers Trail Phase II Service File Number:08ESMF00-2020-F-2744-1 Habitat Affected: Valley elderberry longhorn beetle habitat/elderberry shrubs Credits Purchased: 66.18 VELB Credits Payment Amount: $363,990Project Location: 2.4 mile long multi-use path along the south bank of the American River between Sutter's Landing Park and H Street, City of Sacramento County: Sacramento PAYMENT INFORMATION Payee: Sacramento River Ranch, LLCPayer: City of SacramentoAmount: Three Hundred Sixty-Three Thousand Nine Hundred Ninety and No/100ths Dollars ($363,990.00) Method of Payment: Cash Check# Other Received by: (Signature)Name: Title: Date: m: marketing/sales agreements/saleSRRVELB-Two Rivers TrailRevised: 2/21/2023