(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 3 toward compromise on this issue at the January 25th meeting. Attachment 3 is the City's counterproposal, based on the outcome of that meeting. The following list identifies the necessary steps to reach the ultimate goal: issuance of a "10(a) permit" that will allow development to proceed. Please note that negotiations still need to address the long term funding assurances to provide ongoing maintenance of the conservation lands, and (potentially) mitigate further impacts on medium and low quality habitat. Staff will continue to seek to protect the City's interests, and ensure the economic viability of the West Valley project, as negotiations proceed. Next steps: 1. Continue negotiations with USFWS to determine a mutually agreed upon direction. 2. Revise draft HCP to reflect the agreed upon final strategy. 3. Submit draft HCP to USFWS for processing. 4. Prepare and submit a draft Environmental Assessment (NEPA equivalent as a Mitigated Negative Declaration) to USWFS for processing. 5. USFWS will conduct an internal own Section 7 Consultation with themselves before they issue the 10(a) "incidental take" permit. 6. USFWS will also develop an Implementing Agreement for the City to sign along with USFWS staff, memorializing all the agreed upon steps in the HCP and the final 10(a) permit. FISCAL IMPACTS There will be not fiscal impact to the City General Fund. This project is budgeted through Redevelopment Agency Account No. 879-9000-9700-2350. ALTERNATIVES 1. Provide alternative direction to staff. ATTACHMENTS 1. Delhi Sand Soils 2. Existing DSF Conservation Areas 3. Proposed Conservation (36 acres) — City of Colton 4. High Quality Assessment — U.S. Fish & Wildlife Service