(4)AR 020111Dehli Sands Flower-Loving Fly (DSF) Update

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Staff Report to the Mayor and City Council Status Report on Habitat Conservation Plan for the Delhi Sands Flower -loving Fly February 1, 2011 Page 2 upon the existing 24 acres of DSF conservation land within the West Valley area, including the Hospital, Pepper Avenue and King is Coming conservation sites. A one year building moratorium was issued for the West Valley planning area in September 2006 and was extended through September 19, 2008. During that time, the City worked to develop a HCP that would address the conservation of DSF and the economic development of Colton. The City initially (unsuccessfully) sought de -listing of the DSF during the "5 -Year Review" in 2005-2006. This was followed by preparation of a draft HCP, completed in June 2008. The Draft HCP was used as the basis for negotiations between the City and Service in 2008 and 2009. Negotiations stalled due to impasse over the amount and location of conservation lands, and were not re-initiated due to the departure of the assigned City project managers/negotiators. With the appointment of a new City Manager in late 2009, and subsequent City Council goal setting for FY2010-11, progress on addressing the DSF issue (and related West Valley Specific Plan Amendment) was reestablished as a high City priority. In order to ensure that the City had scientifically valid field data on which to base habitat values, and with which to proceed into negotiations with the Service, the City conducted on-site surveys between August 1 and September 20, 2010. A total of 75 DSF observations were logged during the 14 surveys conducted during this period. Staff used data from the August -September field surveys to prepare a proposed conservation strategy for purposes of negotiations with the Service. Discussions with the Service were re- initiated on July 6, 2010, and an initial draft conservation strategy was submitted to the Service in October 2010. Subsequent negotiations with the Service were held on December 20, 2010 and follow-up negotiations are scheduled for January 25, 2011. ISSUES/ANALYSIS The most recent DSF conservation plan under discussions with the Service consists of 35 acres of high quality habitat proposed for conservation (see Attachment 3). The size and location of the proposed conservation areas take into account both the scientific work on determining habitat quality, and the economic viability of the West Valley Specific Plan. The Service's December 2010 conservation proposal consisted of 80+ acres of high and medium quality habitat. However, their representatives have expressed sensitivity to the economic viability of the West Valley project. By federal law, the Service can only support a HCP that ensures implementation of the West Valley Specific Plan will "not appreciably reduce the likelihood of the survival and recovery of the [DSF] species in the wild," and that the project does "not jeopardize the continued existence of listed species or destroy or adversely modify listed species' critical habitat" (Section 10a and 7 of the ESA). City staff is very concerned about the amount of "high quality habitat" land being requested by the Service. There are 76 acres of high quality habitat within the West Valley Specific Plan, and only 27 acres that would be impacted by development. We anticipate that the Service will move