Hermosa 2020 & Beyond

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1 City f Hermsa Beach A Cmmunity Dialgue Hw yu can be Invlved The residents f Hermsa Beach and the cmmunity are invited and encuraged t be infrmed and invlved in these prcesses. The City is cmmitted t prviding clear, factual, timely and easy t access infrmatin at and thrugh media releases, scial media, Cuncil updates, cmmunity meetings and events. There will als be pprtunities t d wrk n cmmittees and in wrking grups. Sign up fr E-Ntificatin nline at Participate in the Cmmunity Dialgue. Access infrmatin n the City s website at Hermsa 2020 and Beynd: A Cmmunity Dialgue Saturday, July 13, 2013 Cmmunity Center, 710 Pier Ave. Stp by between 9:00 a.m. & 2:00 p.m. Learn abut critical prjects frm experts wh will assist the City. Get invlved by prviding input at the frum. Shrt sessins and statins will be featured in an pen huse frmat. Hermsa 2020 & Beynd Fr mre infrmatin, cntact City f Hermsa Beach Cmmunity Develpment Dept Valley Drive, Hermsa Beach CA (310) Mn-Thu - g t City Departments The City is launching Hermsa 2020 and Beynd: A Cmmunity Dialgue t infrm and engage the cmmunity in the decisin making prcess fr imprtant upcming prjects: A cmprehensive update f the City s General Plan/Castal Land Use Plan, a Strategic Plan fr the Civic Center and Dwntwn area, and an il prductin prject prpsed by E&B Natural Resurces Management.

2 Cmprehensive update f the City s General Plan and Castal Land Use Plan Purpse: The City will update its existing General Plan and Castal Land Use Plan, bth f which were adpted in the early 1980s. These plans frm the verarching cnstitutin fr develpment and the city s plans, prgrams and activities shuld be cnsistent with and carry ut these plans. While cnditins and issues have changed, plicies and actin plans t guide the city s grwth and develpment have nt been cmprehensively updated. The City was awarded a grant by the Califrnia Strategic Grwth Cuncil t cmprehensively update and integrate these plans, with an emphasis n sustainability and a lw carbn future t reduce greenhuse gas emissins. Legal Requirements: State law requires the city t adpt a General Plan t address land use, circulatin, husing, cnservatin, pen space, nise and safety, and a Castal Land Use Plan addressing castal access, recreatin, resurce prtectin and develpment. These plans may als address and emphasize ther subjects f lcal imprtance. The updated and integrated Plan will guide hw the city shuld develp and change, and where funds and resurces fr infrastructure, services and prgrams shuld be directed. Rle f the Public: Cmmunity input is critical t the creatin f a Plan which the City and cmmunity is cmmitted t carrying ut ver the shrt and lng terms. Cmmunity invlvement at key pints and thrughut the prcess includes educatinal frums, a website designed fr this prcess, utreach t cmmunity grups, and wrkshps t infrm and seek input. Technical and cmmunity advisrs will review early prducts, fllwed by brad cmmunity input and plicy bard directin n key prducts thrughut the prcess. Prcess/Majr Milestnes/Schedule: The prcess will begin in June 2013 and a draft Plan shuld be cmpleted in abut years. Majr steps: Define existing cnditins, issues, pprtunities, and create an verarching visin statement, prviding fr public input. Identify and evaluate alternative futures, culminating in brad cmmunity utreach and directin by the City Cuncil. Develp a plicy framewrk defining the future directin f the city, prviding fr public review and plicy directin by the City Cuncil. The plicy framewrk will be bradened t include an actin plan t create the draft integrated General Plan/Castal Land Use Plan. An envirnmental impact reprt (EIR) will be prepared. The frmal public hearing prcess includes Planning Cmmissin, City Cuncil hearing and Castal Cmmissin actins. Strategic Plan fr Ecnmic Develpment f Civic Center Cmplex and Key Dwntwn Opprtunity Sites Purpse: This prcess will explre pprtunities t increase the ecnmic vitality f the dwntwn fcusing n hw City assets, including the civic center prperty and dwntwn parking lts, can be leveraged in cnjunctin with redevelpment f key privately held beachfrnt sites and fr increased ecnmic develpment generally. The plan shuld evaluate: Land use and develpment ptins that maximize the ecnmic develpment benefit and value f city wned prperty in the dwntwn area. A cnceptual plan fr redevelpment f the civic center prperties including pprtunities t stimulate ecnmic develpment in the surrunding area. Appraches t maximizing existing parking and increasing parking as a catalyst fr increased ecnmic develpment that cmplements the current emphasis n the dwntwn s late night establishments. Rma Design Grup is assisting the City in preparing a strategic plan fcusing n a plan f actin. Cnceptual ptins will be presented t the Cuncil in June 2013 fr directin and refinement, with pprtunity fr cmmunity input as the prcess prgresses. Legal Requirements: Nne, this prcess is nt legally required. Rle f the Public: The public will be prvided with an pprtunity fr input. Prcess/Majr Milestnes/Schedule: This prject started in March 2013 and a strategic plan shuld be presented t the City Cuncil within a year. Relatinship t ther Prjects: The Strategic Plan will prvide input t the General Plan/Castal Land Use Plan, while als prviding a plan f actins that can be systematically carried ut. Relatinship t ther Prjects: Many existing dcuments, plicies, prgrams and activities will help shape and prvide input int the prcess.

3 Oil Prductin Prject Histry The vters f Hermsa Beach will be asked t decide whether an il prductin prject shuld be allwed n the City s Public Wrks Maintenance Yard at th Avenue. In March 2012, the Hermsa Beach City Cuncil entered int a Settlement Agreement t reslve a lng-standing legal dispute related t an il drilling prject apprved by the City Cuncil in 1993 at the City Maintenance Yard at th Avenue. Althugh the prject was apprved 1993 thrugh a Cnditinal Use Permit (City Cuncil Reslutin which was stayed by litigatin and remains in effect), a ballt measure apprved by Hermsa Beach vters in 1995 instituted a citywide ban n il drilling. The Settlement Agreement nw presents the vters with the pprtunity t decide whether t allw a new il prductin prject prpsed by a different develper, E&B Natural Resurces Management Crp. n the same site and under the terms f the 1993 Cnditinal Use Permit. Legal Requirements: The City Cuncil must prceed t fulfill the terms f the Settlement Agreement. The agreement limits the city s maximum financial expsure t $17.5 millin. The city must submit t the vters a prpsal t verturn the existing il ban and allw an il drilling prject frm the City s Maintenance Yard. The settlement terms require a 35 year lease f the City Yard t drill 35 wells. If the ballt measure fails, the City is bligated t pay E&B $17.5 millin, the prject des nt mve frward, and the il drilling ban remains in place. If the ballt measure passes and a drill permit is issued, the City is bligated t pay E&B t $3.5 millin, likely payable frm its share f ryalties unless insufficient. In return fr dismissal f the lawsuit, the City has cnveyed t Macphersn Oil C. 3.3% f any ryalties wing t the City frm il drilled frm city prperty frever. Whether the City s financial bligatin is $17.5 millin r $3.5 millin depends n the utcme f the ballt measure and the actins f ther agencies with permit jurisdictin. Rle f the Public: Under the Settlement Agreement, Hermsa Beach vters will have the pprtunity t decide whether t allw a new il prductin prject prpsed by a E&B n the Maintenance Yard site under the terms f the 1993 Cnditinal Use Permit and any ther cnditins placed n the prject thrugh the applicatin prcess ver the next year. It is anticipated the vte will ccur in Nvember The vters and public will have an pprtunity t be infrmed abut the prject and t participate in the EIR and Cmmunity Dialgue prcesses and ther studies. The utcme f the vte will have implicatins fr the future f the city, particularly in terms f: (a) land use planning, (b) the financial resurces r bligatins f the city and t a lesser degree the Schl District and (c) the scial fabric f the cmmunity. Oil Prductin Prject Highlights f E&B s Applicatin The fllwing highlights varius aspects f E&B Natural Resurces Management Crp. (E&B) prpsed il prductin prject applicatin filed with the City in Nvember 2012 and supplemented in April Oil Prductin Prject: E&B. prpses t develp the 1.3 acre site currently ccupied by the City s Public Wrks Maintenance Yard at th St. and 15 public parking spaces as an nshre drilling and prductin site. The prject prpses t use directinal drilling f 30 wells t access il and gas reserves in the tidelands and within an nshre area knwn as the uplands. The life f the prject is 35 years. The prject wuld be develped in fur phases. Phase 1: Site preparatin f the site fr drilling and testing (6 mnths). Phase 2: Explratry drilling and testing f 4 wells t determine the ptential prductivity and ecnmic viability f the prpsed prject (12 mnths); crude il wuld be transprted frm the site by truck. Phase 3: Cnstructin f permanent il and gas prductin facilities and installatin f pipelines alng Valley Drive t existing r new pipelines utside the city (14 mnths). Phase 4: Prductin phase ver the remainder f the 35 year term. Drilling the remaining wells (including 4 wells fr the re-injectin f water extracted alng with the il and gas), wuld ccur ver a 2.5 year perid. During prject peratins, wrkver rigs may be nsite fr a maximum f 90 days per year. Oil and gas wuld be transprted thrugh pipelines t receiver lcatins utside the city. Fllwing prject terminatin, equipment wuld be remved frm the site, wells abandned per regulatry requirements, and the site wuld be graded and returned t the City. E&B prpses t utilize and perate within existing entitlements: a 1993 Cnditinal Use Permit, 1992 Oil and Gas Lease N. 2, and 2012 Settlement Agreement. Changes t the prject design and peratins will likely be required t reduce impacts and address ther issues identified thrugh the envirnmental impact reprt and ther city prcesses. These changes will be legally and permanently incrprated int the prject thrugh a legally binding Develpment Agreement. City Maintenance Yard Relcatin: As a cnsequence f the prpsed prject, if the prject were t be apprved by the vters the City wuld be required t relcate its Maintenance Yard at th Street. The City will identify a preferred site where the Maintenance Yard may be relcated. The Envirnmental Impact Reprt fr the il prductin prject will evaluate the impacts f lcating the Yard at the selected lcatin.

4 Oil Prductin Prject Permit Summary Existing Entitlements: E&B Natural Resurces Management Crp. prpses t utilize and perate within existing entitlements: 1993 Cnditinal Use Permit (City Cuncil Reslutin ) which placed cnditins Macphersn Oil s prject t reduce the impacts f that prject. Oil and Gas Lease N. 2 issued t the City n 1992 allwing il and gas extractin within the tidelands f Santa Mnica Bay. Settlement Agreement executed by the City Cuncil n March 2, 2012 setting frth certain respnsibilities f the City, E&B and Macphersn Oil C. E&B undertk varius studies and submitted an applicatin t the City in 2012 fr its wn redesigned il prductin prject that maintains cnsistency with the abve dcuments. An Envirnmental Impact Reprt (EIR) is being prepared by the City t evaluate the envirnmental effects f all aspects f E&B s prject. Required Entitlements: The ballt measure will encmpass mst r all f the fllwing entitlements. The specific cntent will be determined prir t ballt publicatin. Amend the Municipal Cde t lift the ban n il drilling and allw il drilling in the M-1 zne as a cnditinal use at the City Maintenance Yard. Amend the Castal Land Use Plan t change the designatin f the Maintenance Yard frm Open Space t Industrial cnsistent with present and prpsed use. Amend the Castal Land Use Plan t add plicies regulating il and gas recvery. Apprve a Develpment Agreement t permanently incrprate changes t the prject that may be required t reduce impacts and address ther issues identified thrugh the EIR and ther city prcesses int the prject. A franchise agreement t allw the prpsed il and gas pipelines may be included. Mdify Ordinance Mandating that all Funds the City derives frm Hydrcarbn Recvery g int the Park and Recreatin Facilities Fund except the first $500 f Business License Fees and any Funds Regulated by the State Lands Cmmissin, allwing funds t be used fr ther purpses. Other ptential entitlements regarding relcatin f the City s Maintenance Yard. City Review Prcess: Planning Cmmissin review: Once the EIR has been prepared, the Planning Cmmissin will hld a nticed public hearing and make recmmendatin t the City Cuncil n findings required by Califrnia Envirnmental Quality Act (CEQA), and whether the prpsed Develpment Agreement shuld be entered int including any prpsals t mdify the agreement. City Cuncil review: The Cuncil will hld a nticed public hearing make similar determinatins. The City will prepare the ballt measure fr vter cnsideratin. Pst -Vter Apprval: If apprved, the prject wuld be subject t safety and envirnmental reviews by state and reginal agencies. The City wuld be respnsible issuance f ministerial permits and nging mnitring f cmpliance. City Ordinance (Oil Cde) Regulating the Develpment and Design f Oil Recvery and Establishing a Permit System fr Drilling and Oil Recvery wuld als apply.

5 Oil Prductin Prject Envirnmental Impact Reprt (EIR) The City will hld a public Scping Meeting n Wednesday, July 24, 2013 frm 7:00 p.m. t 9:00 p.m. at the Hermsa Beach Cmmunity Theater, 710 Pier Avenue t prvide an pprtunity fr peple t learn mre abut the envirnmental review prcess. Cmments may als be submitted at that time (r at any time until August 12). Purpse: An Envirnmental Impact Reprt is an infrmatinal dcument intended t generally infrm public agency decisin-makers and the public f the ptentially significant envirnmental effects assciated with a prpsed prject, identify ways t minimize r eliminate the significant effects, and evaluate a reasnable range f alternatives that wuld meet the majr bjectives f the prpsed prject but further reduce r avid significant envirnmental effects. Legal Requirements: The EIR fr the prpsed il prductin prject applicatin will be prepared and prcessed as required by the Califrnia Envirnmental Quality Act (CEQA). The City will cnduct the prcess and prepare the EIR assisted by a qualified cnsulting firm, recmmended t be Marine Research Specialists. The EIR will evaluate all aspects f the prject including nsite and ffsite imprvements, relcatin f the City Maintenance Yard, and any effects assciated with required entitlements. The City is als launching a public educatin and invlvement prcess that will cntinue thrughut the EIR prcess, designed t facilitate the public s understanding f the prpsed il prductin prject, purpse f the EIR, the EIR prcess, and the cntents and findings f the EIR. Majr steps include: Ntice f Preparatin t prepare an EIR (Scping). One f the first steps is fr residents and interested persns t submit cmments abut the issues that shuld be addressed in the EIR. The 30-day scping perid fr submitting written cmments will be frm July 11, 2013 t August 12, The Scping Meeting is July 24. Ntice f Cmpletin f the Draft EIR: The draft EIR will be presented t the public fr a 60 day cmment perid. Availability f Final EIR: The Final EIR, which includes the prject analysis and respnses t cmments, is expected t be cmpleted by Spring The Planning Cmmissin and City Cuncil will hld nticed public hearings t cnsider the determinatins required by CEQA. Mitigatin measures t reduce prject impacts will be incrprated int a Develpment Agreement t be placed n the ballt in Nvember 2014.

6 Oil Prductin Prject Cst/Benefit Analysis Purpse: The City will retain a qualified cnsultant t assess the csts and benefits that may ccur shuld Hermsa Beach vters either apprve r reject the prpsed il prductin prject. The City is cmmitted t an independent review f the key financial cnsideratins. The Analysis will evaluate csts and benefits assciated with several scenaris: (a) the prject is apprved by the vters, (b) the prject is rejected by the vters, and (c) the prject is apprved by the vters but E&B terminates the prject after drilling and testing explratry wells. Other scenaris may be evaluated cnsistent with changes t the prject due t measures identified in the Envirnmental Impact Reprt r ther studies. The Analysis must take int accunt the terms f the existing Lease Agreement, Settlement Agreement and Cnditinal Use Permit. Oil and Gas Prductin Benefits/Revenue Analysis Prjectins f il and gas prductin and the resulting revenue stream, based n stated prductin rates and vlumes ver time. Prjected revenue based n whether il and gas cmes frm the tidelands r the uplands, and hw these revenues may be spent. Estimate f prperty taxes frm the value f the il and gas reserves received by the City. Prjected revenues t Hermsa Beach City Schl District. Ecnmic impacts f earnings and jbs generated as a result f the prject, including indirect and induced revenues (multiplier effect). Csts Analysis Oil Prductin Prject Health Impact Assessment Purpse: The bjective f the Health Impact Assessment is t identify and evaluate ptential health impacts that may ccur due t the prpsed il prductin prject. The City will retain a qualified cnsultant t prepare this analysis. The Assessment shuld fllw the Guide fr Health Impact Assessments prepared by the Califrnia Department f Health, Octber The Health Impact Assessment is intended t: Prvide infrmatin t the residents f Hermsa Beach abut the ptential health impacts f the il and gas extractin prject n residents, wrkers, visitrs and/r ther sectrs f the cmmunity identified by the Health Impact Assessment. Determine the likelihd and magnitude f ptential health impacts identified and the level f significance f the ptential health impacts. Help avid r reduce any ptential health related risks r impacts frm the il and gas extractin prject. A reprt f findings and ways that health related impacts frm the prject can be reduced will be distributed t the cmmunity. The reprt will indicate what requirements can be placed n the prject. It may als identify things that E&B culd vluntarily d t reduce impacts. The Health Impact Assessment may als prvide the cmmunity with a baseline health assessment frm available secndary data. Existing infrmatin will be evaluated t identify health issues that might exist nw r be utside the nrmal range in cmparisn with similar cmmunities. Direct csts t the City as a result f the prject, such as the City s bligatins under the Settlement Agreement, impacts n City resurces and services, relcatin f the City s Public Wrks Yard, csts f administering prject entitlements, effects n the City s insurance, r ther csts as a result f prject apprval by the vters. Payment ptins and csts t carry ut the Settlement Agreement. Other ecnmic impacts t the residents and ecnmy: real estate values and turism, use f City facilities in the vicinity, cst f prperty insurance, and csts t the City t acquire debt. Rle f the Public: The public and vters are encuraged t learn abut ptential cmmunity health impacts and the degree t which thse impacts culd be reduced thrugh cnditins applied t the il prductin prject. The cmmunity will be invited t prvide input n health issues that shuld be evaluated in the Health Impact Assessment. The Assessment will be presented t the cmmunity nline and at cmmunity frums by Spring Lng-Term Relative Csts and Benefits Revenues in relatin t annual csts ver the life f the prject. Ptential fr shrtfalls and ther fiscal cnsideratins related t the timing, duratin and magnitude f bth revenue and csts.

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