Exhibit,Appendix: SECURITY NATIONAL GUARANTY, INC. VS. CALIFORNIA COASTAL COMMISSION ET AL

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NOSSAMAN LLP

STEVEN H. KAUFMANN (SBN 61686)
skaufmann@nossaman.com

777 S. Figueroa Street, 34th Floor

Los Angeles, CA 90017

Telephone: 213.612.7800

Facsimile: 213.612.7801

Attorneys for Petitioner SECURITY NATIONAL

GUARANTY, INC.

ELECTRONICALLY

FILED

Superior Court of California,
County of San Francisco

04/04/2017
Clerk of the Court
BY:RONNIE OTERO.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF SAN FRANCISCO

SECURITY NATIONAL GUARANTY, INC.,
a California Corporation,

Petitioner,

vs.

CALIFORNIA COASTAL COMMISSION, a
State Agency; JOHN AINSWORTH, in his
official capacity as Executive Director of the
California Coastal Commission, and DOES 1-
25,

Respondents.

51453956.V1

Deputy Clerk
Case No: — CPF-16-515401
Assigned for all purposes to:
Hon. A. James Robertson II
[Reservation #30604 11-02]
DECLARATION OF EDMOND

GHANDOUR IN SUPPORT OF MOTION
FOR JUDGMENT

[EXHIBITS 10 - 12]
Hearing Date: April 11, 2017
Time: 9:30 a.m.

Dept.: 302

Date Action Filed: 12/14/2016
Trial Date: None Set

DECLARATION OF EDMUND GHANDOUR IN SUPPORT
OF MOTION FOR JUDGMENT — EXHIBITS 10 - 12November 11, 2015

for the

S

Sand City, Monterey Peninsula, California

EMC PLANNING GROUP INC

CCC00234CCC002351.0

2.0

3.0

4.0

TABLE OF CONTENTS

INTRODUCTION ....cccccseceeeee erect senses een eeees 1
1.1 Project approval and regulatory background 1
1.2 Project Area... 11
1.3 Project Description 11
EXISTING CONDITIONS AND EXPECTED IMPACTS... 1
2.1 Existing Conditions ...................e cece cece ee eee eee cee sees 1
2.2 Expected Changes to the Site and Potential Impacts. . 10

BIOLOGICAL DATA AND EXPECTED IMPACTS ON SPECIAL

STATUS SPECIES 1
3.1 Special Status Species Known to Occur on the Site al
3.2. Species with Potential to Occur on the Site 14

MEASURES TO AVOID, MINIMIZE AND MITIGATE IMPACTS

TO SPECIAL STATUS SPECIES ad
4.1 Biological Goals/Standards ........... 2
4.2 Description and Delineation of Management Areas ...............5 3
4.3 Biological Objectives/Standards for Specific Management Areas

7
4.4 Management Elements and Techniques.............2....e:ese serene ee 13
4.5 Specific Management Techniques for Each Management Area 32
4.6 Species-Specific Mitigation Measures ..............eeeeeee tanta ween 42,
4.7 Other Mitigation and long-term Measures .............:eceeeeeeeeeeee 45
4.8 Summary of Mitigation/Responses to USFWS Concerns....... 48
REFERENCES.. 1

CCC00236Appendices
Appendix A
Appendix B

Appendix C
Appendix D

Appendix E

Appendix F

Appendix G
Appendix H

Appendix I

Appendix J

Appendix K
Appendix L
Appendix M

Appendix N

Appendix O
Appendix P
Appendix Q

CDP (issued November 9, 2015)
Revised Findings and Addendum (Adopted August 15, 2014)

Irrevocable Offer of Dedication-Dune Conservation Area
Easement (Recorded October 27, 2015)

Irrevocable Offer of Dedication-Public Access Easement
(Recorded October 27, 2015)

Deed Restriction (Recorded October 27, 2015)

Dune Restoration Plan (Approved October 14, 2015, updated
July 2016)

Lighting Plan (Approved November 4, 2015)

Landscape Plan (Approved November 4, 2015) and
Supplemental Landscape Plan(July 7, 2016)

Public Access Management Plan
{Approved October 14, 2015)

Signage Plan (Approved November 4, 2015)

Site Photographs

Duties of the Biologist (updated August 24, 2016)
Predator Management Plan (updated August 24, 2016)

Revised Plans — Vesting Tentative Map
(Approved November 4, 2015)

Resort Pathway & Access (Approved November 4, 2015)
Grading Plan (Approved November 4, 2015)

Construction Plan (Approved November 4, 2015)

CC00237Figures
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7

Tables

Table 1

Table 2

Table 3

Site Vicinity . 113
Site Plan
Proposed Building Cluster Design

Aerial Photographry....cccccccccccseecsseseseseer cease eeeseeeanseaeneneeeeeceeeecserseeseepeses
Vegetation Map sere 25
Habitat Management Areas.....ccccceceeeesseeceereetensenseneeeenneneenee cenenaees 4-5

Land Use Easements and Open Space

Western Snowy Plover Nesting Activity on the Monterey Bay Shores
Site SINCE ZOOO™ oc ceeeeecceesseeseeseessaceecesseaeeeeeenaceesssseesseseeee 3-7

Vegetation Performance Criteria (Percent Cover by Plant

Community) 4-30
Performance Criteria, Monterey Spineflower and Seacliff
Buckwheat Lesceeetesecseesnecescesscetecenscrsrseersseteecetsetserserenstsscrsecenteees 403 1

©CC00238CCC00239I.
TRODUCT O

I.| PROJECT APPROVAL AND REGULATORY
BACKGROUND

This Habitat Protection Plan (“HPP”) for the proposed Monterey Bay Shores Resort! is a revised
version updating the previous 2008, 2011,2013, 2015 versions prepared by EMC Planning
Group. This latest updated version responds to USFW Service letter dated April 1, 2016, Dr.
Koteen’s memo dated July 29, 2016, and comments from the California Coastal Commission,

On April 11, 2014, the California Coastal Commission (“Commission” or “CCC”) approved.
Coastal Development Permit No. A-3-SNC-98-114 (the “Permit” or “CDP”) in accordance with
the provisions of the findings adopted by the Commission on August 14, 2014 and the Notice of
Intent to Issue Permit dated May 30, 2014, both of which are incorporated herein by this
reference. On October 14, 2015, the Commission Executive Director approved the Dune
Restoration Plan (“DRP”), which was prepared pursuant to the Permit and is substantially in
conformance with the October 2013 version of the Habitat Protection Plan. On July 29, 2016 the
Commission approved the Supplemental Landscape Plan prepared by Rana Creek. The Plan
provided Pre-Construction sign off on the plan note of the Dune Restoration Plan, which is in
conformance with this updated HPP. The DRP also includes updated, revised and new
measures and discussion designed to address comments by the CCC staff regarding biological

' Monterey Bay Shores Resort is a proxy name which may change when branding occurs.

ccc002401.0 INTRODUCTION

goals, descriptions of management areas, biological objectives for specific areas, management
elements and techniques, and specific measures and techniques for each management area to
protect and enhance western snowy plover, Smith’s blue butterfly, and Monterey spineflower
habitats. The Dune Restoration Plan provides for habitat restoration and stabilization for all
dune areas outside of the development areas (as well as for all dune extension and screening
areas) and has been modified to achieve compliance with Permit Special Condition 3, “Dune
Restoration Plan”, and to be consistent and integrated with this revised Habitat Protection Plan
in accordance and consistent with Permit Special Condition 15.

On October 14, 2015, the Commission Executive Director also approved the Public Access
Management Plan (“PAMP”), which describes the manner in which public access associated
with the approved project is to be provided and managed, with the objective of maximizing
public access (and recreational use of all public access areas) included in the approved project
(including, but not limited to, the public parking lot, public access pathway system, scenic
overlook, beach stairway/pathway, and the beach) and all related areas and public access
amenities (e.g., bench seating, bike parking, signs, etc.) consistent with the terms and conditions
of the Permit. On July 29, 2016 the Commission agreed to sign-off on the Pre-Construction
PAMP by adding a note to the PAMP regarding construction level plan sheets. The PAMP
describes all the areas subject to the Public Access Easement Dedication, and addresses elements
consistent with Permit Special Condition 5. Both the DRP and the PAMP have been approved
and Pre-Construction sign off has occurred by the Commission Executive Director, along with
their associated dedications of conservation and public access easements which are now on
record with the Monterey County Recorder.

The revised and updated HPP is being resubmitted to the Commission Executive Director in full
compliance and in accordance with the Permit issued on November 9, 2015 (Appendix A) and
Prior to Construction requirements of the CDP Permit, in accordance with the full
Commission’s April 11, 2014 Permit approval and satisfaction of the Prior to Construction
conditions.

In consideration of the public benefits for the protection of coastal resources being derived by the
granting of the Permit by the Commission, the Permittee has offered to dedicate to the people of
the State of California (i) a dune area conservation easement in gross and in perpetuity over a
portion of the property, and (ii) a public access easement in gross and in perpetuity over a
portion of the property, both of which have been recorded with the Monterey County Recorder
as Document Numbers 2015062067 and 2015062068, dated October 27, 2015, respectively, and
both of which contain the full legal description of the easements in Exhibit “C” contained
therein.

1-2 EMC PLANNING GROUP INC

ccco0241MOoNnTEREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

This revised and updated HPP is subject to, and consistent with, the additional following
documents approved by the CCC:

The Notice of Intent to Issue Coastal Development Permit CDP A-3-SNC-98-114
(Monterey Bay Shores Resort 2014) (NOI, Appendix E, Exhibit “B”),

Revised Findings and Addendum, adopted August 15, 2014 (Appendix B);

Revised Plans (Bestor Engineers 2015, Vesting Tentative Plan) as approved by the CCC on
November 4, 2015 as part of the CDP Issuance (Appendix N);

Irrevocable Offer of Dedication for Dune Area Conservation, approved by the CCC and
recorded with the Monterey County Recorder on October 27, 2015, Document No.
2015062067 (Appendix C);

. Irrevocable Offer of Dedication Public Access Easement, approved by the CCC and
recorded with the Monterey County Recorder on October 27, 2015, Document No.
2015062068 (Appendix D); and

Deed Restriction, approved by the CCC and recorded with the Monterey County Recorder

on October 27, 2015, Document No. 2015062069 (Appendix E).

Coastal Development Permit CDP-A-3-SNC-98-114, California Coastal Commission,

Issued November 9, 2015
This HPP addresses, responds to and addresses the concerns raised by the U.S. Fish and Wildlife
Service (USFWS) in a letters dated April 7, 2014 and April 1, 2016, which identified eight
concerns regarding western snowy plover, the Smith’s blue butterfly and Monterey spineflower.
This HPP presents a set of measures for the protection, preservation and recovery of these
species. Management actions include measures for the enhancement and restoration of the
currently damaged dune complex in accordance with the Commission's Certified Sand City
LCP and the CDP issued on November 9, 2015, and the protection and enhancement of western
snowy plover habitat. There are no further permits or authorizations legally required from the
California Department of Fish and Wildlife Service (CDFW) or the USFWS for the project.
There is no federal nexus and therefore no federal agency has Endangered Species Act (ESA)
section 7 consultation obligations with respect to this property. No other federal ESA
jurisdiction exists over this site (unless take of a listed species occurs, of which the measures in
this HPP are designed to avoid). The USFWS’ HCP Handbook and published case law make it
clear that the ESA docs not impose a mandatory obligation on a private person to obtain an

Incidental Take Permit (Nossaman 2016).

EMC PLANNING GROUP INC 1-3

ccec002421.1.1 CDP Issuance by the CCC

The Commission issued the CDP on November 9, 2015 (Appendix A) after determining that the
applicant/owner had complied with Permit conditions of approval. As part of its extensive
environmental and project review process and of its condition compliance process, the
Commission Executive Director approved and signed off on a set of plans and reports, including
the following:

1. Revised Plans, Vesting Tentative Map

2. Grading Plan

3. Height Compliance

4, Monterey Bay Shores Floor Level Plans

5. Landscape Plans — Planting and Restoration (updated July 7, 2016)
6. Construction Plan

7. Stormwater Drainage Plan

8. Public Access Management Plan (updated July 29, 2016)
9. Lighting Plan

10. Signage Plan

11. Dune Restoration Plan (updated July 7, 2016)

12. Blufftop Edge Monitor Plan

13. Preliminary Foundation Pile Layout

14. Resort Pathway Plan

15. Utility Exhibit - Plan

Some of the plans are included in the HPP as separate appendices and are referenced in various
parts of the HPP. Additionally, numerous reports and certifications have been prepared,
reviewed, issued, and recorded as a precondition to issuance of the Permit by the CCC, They
include the following:

1. Typical Hotel Condo Units

2. Condominium Hotel Plan

ccc00243MOonTEREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

we

Monterey Bay Shores Views & Existing Views,

4. — Irrevocable Offer of Dedication-Dune area Conservation (Appendix C),

5. Irrevocable Offer of Dedication-Public Access Easernent (Appendix D),

6. Geotechnical Analysis,

7. Blufftop Edge Monitoring Plan,

8. Stormwater Pollution Prevention Plan (SWPPP) (updated March 14, 2016)
9. Utilities Will Serve Letters

10. Certification of Landscape Plan and Geotechnical Analysis,

11. MPWMD-Water Distribution Permit

12. Deed Restriction (Appendix E).

13. Subordinations by lenders and parties of interest to the Offers to Dedicate Conservation
and Public Access Easements in order to facilitate CDP Issuance (Recorded by the
Monterey County Recorder)

This HPP, the Commission’s approval and sign offs, the Revised Findings, the Permit issued on
November 9, 2015 and all associated plans and reports and Prior to Construction sign offs in
2016, the Permit conditions, the Notice of Intent (NOT and Revised Plans (VTM) are designed
to be read together and in harmony with the HPP to the extent possible. If there is a material
conflict between these documents, the conditions contained in the CDP issued November 9,
2015, informed by the full Commission’s April 11, 2014 approval and hearing transcript, shall
prevail.

1.1.2. Revisions to the 1998 Project Design

As set forth in the 2009 certified Addendum to the Monterey Bay Shores Final Environmental
Impact Report (EIR), since certification of the original FEIR in 1998 there have been substantial
changes in the project design, building layout, and size, There have also been naturally-occurring
changes in the amount and distribution of biological resources. Likewise, since publication of the
2008 FEIR Addendum, further changes have been made to the resort project design, most
notably a reduction in bulk, mass and the project footprint incorporating advanced sustainable
and green elements. The current project plans site includes construction of some buildings
underground, affording more opportunity for restoration of habitat and the establishment of
native coastal species at the surface. This updated HPP addresses potential impacts associated

&

EMC PLANNING GROUP INC 1-

ecco002441.0 INTRODUCTION

with the revised 2014 resort design approved by the Coastal Commission on April 11, 2014 and
the most recent Revised Plans and Vesting Tentative Map (VTM) that meets conditions of the
CDP (Bestor Engineers 2015), approved and issued by the Commission on November 9, 2015,
including all updates and supplemental reports as part of the Prior to Construction compliance
sign off in 2016.

With respect to the project design, building layout, and building size, the 2015 Approved
Revised Plans and VTM relocated the building footprint to be set back a significantly greater
distance from the ocean than the original 1998 layout. Thus, there will be a greater buffer
between many of the construction and operational activities and the lower beach and strand,
where biologists believe that western snowy plover nesting activity is most likely to occur (if it
does occur). This additional buffer adds a layer of protection to help ensure that plovers on the
beach are not impacted during construction or operation of the resort, and will reduce significant
impacts to plover critical habitat and behavioral patterns, including breeding, feeding and
sheltering activities. The redesigned project and landscaping, including the resort pathways and
public access trails to the beach have also been specifically designed to create new, restored, and
enhanced habitat elements on or near the beach and strand that are designed to attract western

snowy plover activity.

1.1.3 Regulatory Setting

Since 2006, there have been several changes to the regulatory regime governing the listed species
and land use onsite. In chronological order, they are as follows:

In December 2007, USFWS determined that the site would not be included in the final revised
critical habitat designation for the Monterey spineflower.

In January 2008, the California Court of Appeal held that the Sand City Local Coastal Program
Land Use Plan (LCP) does not deem the project site to be environmentally sensitive habitat area
(ESHA) and that the Coastal Commission had exceeded its jurisdiction by declaring the site to
be ESHA. (Security National Guaranty, Inc. v. California Coastal Com. (2008) 159 Cal.App.4th 402.)
The Court further held that in reviewing and approving a development project, a local
government is not required to demonstrate that “the conclusions in the LCP still ‘relate to
current conditions.” Finally, the Court remanded the CDP application to the Commission for
rehearing, based solely on the standards in the existing LCP, ie., with no ESHA on site.

In December 2011, the California Supreme Court invalidated all redevelopment agencies,
rendering Sand City’s redevelopment plan, which included the project site, moot.

In June 2012, USFWS reversed its 2005 determination that the entire site was excluded from
critical habitat, and designated the site’s beach and a portion of the western upper bluff, as well

1-6 EMC PLANNING GROUP INC

cCc0n245MONTERREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

as all of the Sand City coastline and upper bluff as critical habitat for the western snowy plover.
The upper bluff was added to allow replacement of lost lower beach due to potential future
erosion, presumably from changes in tidal action and sea level rise as a result of global warming.
(The applicant objected to the expansion of critical habitat inland based on potential sea level
tise and coastal erosion given the long-standing and consistent surveys since 1995 showing
accretion, rather than erosion, occurring on the site (Haro Kasunich 2013).)

In May 2013, the San Francisco Superior Court overturned the Commission’s 2009 denial of a
yevised Monterey Bay Shores Resort project, noting that certain members of the Commission
and staff were unlawfully hostile to any development on the site.

In June 2013, the San Francisco Superior Court ordered the project remanded back to the
Coastal Commission for a re-hearing of the CDP application.

In April 2014, the full CCC voted to approve a CDP for the revised Monterey Bay Shores Resort
that is the subject of this HPP, with the NOI as issued on May 30, 2014. Findings of Approval
were adopted by the CCC on August 15, 2014. The Commission also dismissed all appeals of
the San Francisco Superior Court decision against the Commission.

On November 9, 2015, the Commission issued the CDP for the Revised Plans (VIM) and
associated plans and reports noted above and in Appendices A - Q, CDP. Many of the plans and
reports address management and recovery plans for the listed species, in particular the Dune
Restoration Plan approved by the Commission Executive Director on October 14, 2015 and
signed off on the Supplemental Landscape Plan July 7, 2016.

No critical habitat has been designated for Smith's blue butterfly on the property. Critical habitat
for the western snowy plover is designated on approximately 10.2 acres of the site above the
Pacific Ocean mean high tide line. Grading or construction is not proposed within the beach and
strand area, where all western snowy plover nesting activity has been observed during the past 21
years, Thus, no grading will occur within the western 40 percent of the critical habitat area, and
short term (60-90 days) temporary grading is limited to the eastern 6.1 acres of designated critical
habitat, east of the 20-foot (toe of the bluff) contour line (during dune recontouring and
revegetation activities). Resort buildings are set back significantly from the critical habitat
boundary and no other designated critical habitat exists on any portion of the property.

There is no federal nexus and therefore no federal agency has ESA section 7 consultation
obligations with respect to this property. No other federal ESA jurisdiction exists over this site
unless there is take of a listed species, which is not anticipated since this HPP is designed to
avoid take, As noted above, the USFWS’ HCP Handbook and published case law make it clear
that the ESA does not impose a mandatory obligation on a private person to obtain an Incidental

Take Permit,

EMC PLANNING GROUP INC 1-7

CCC002461.0 INTRODUCTION

The Commission-certified Sand City LCP identifies certain areas along the boundary of the
property site near Highway 1 as dune stabilization/restoration areas (identified on Figure 7 in
the LCP) and encourages the creation of a dune management program concurrent with any
development proposal for the property. This updated HPP is designed to facilitate that planning
objective and to restore and protect that area, as described in the DRP and updated
Supplemental Landscape Plan.

11,4 Biological Surveys and Updates

This HPP provides an assessment of the current conditions on the site relative to the listed
species noted above, evaluates the effects of the Commission-approved Revised Plans and CDP,
resort development and operation on those species, and presents a set of management
prescriptions for the protection, preservation and recovery of these species within the context of
the CDP and associated constraints.

The existing dunes and remaining dune habitats on the Monterey Bay Shores project site remain
highly disturbed as a result of 60 years of sand mining on the site; however, the dunes are
remnants of the Flandrian Monterey sand dune complex that extends from the Salinas River
south to the Municipal Wharf.

Since 1998, there have been numerous additional biological surveys conducted on the project
site to update the data on existing conditions. The following sections outline the surveys
conducted, the results of which are contained and discussed in Section 3.0.

Vegetation

In 2006, 2008, 2011, 2013, 2014, and 2015 EMC Planning Group completed new vegetation
mapping, including surveys for seacliff and coast buckwheat (host plants for the Smith’s blue
butterfly) and for Monterey spineflower, when in bloom. Surveys and mapping were also
conducted by URS Corporation in 2014 (URS 2014b). Due to the less than average rainfall year
and limited germination occurring within the Monterey area, the most recent acreage
calculations are considered lower than would likely occur in the absence of drought conditions.
Changes in the vegetation on site have been taken into account in preparing this HPP,

1-8 EMC PLANNING GROUP INC

ccec00247MONTEREY BAY SHORES RESORT: HABITAT PROT! ION PLAN NOVEMBER 2015

Smith’s Blue Butterfly

Surveys for Smith’s blue butterfly were first conducted in 1987 by Dr. Richard Arnold. Surveys
were updated in 1988, 1989, and 2006 and most recently by EMC Planning Group in 2014 and
2016. Since establishing the presence of Smith’s blue butterfly on the site in the swale area and
due to the species’ close association with its two host plants, seacliff and coast buckwheat, this
species is assumed to occur where buckwheat plants are present on the site. Vegetation mapping
has documented any changes to the location and extent of buckwheat plants found on the site,
and has been updated as described above,

Western Snowy Plover

Nesting snowy plovers have been monitored along the central California coast between Laguna
Creek and the south end of Monterey Bay since 1984. Beginning in 2005, the City of Sand City
co-sponsored annual systematic breeding season sutveys of the Sand City coastline for the
western snowy plover. These surveys are conducted by Point Blue Conservation Science
(PBCS), formerly known as the Point Reyes Bird Observatory (PRBO).

Additional surveys were conducted in 2014 by URS Corp (URS 2014a) and in 2014 and 2016 by
EMC Planning Group. In May 2014, the USFWS conducted an independent, unannounced
inspection/survey of the entire site. No plovers were observed. No take of listed species was
identified by the USFWS. The nesting survey conducted in 2016 by EMC Planning Group
observed nesting activity in three locations along the lower beach area and no activity inland of
the toe of the bluff.

1.1.5 Information and Data Reviewed in Preparation
of this HPP
The following documents were reviewed during the preparation of this revised HPP:

Addendum to the Final Environmental Impact Report, Monterey Bay Shores Resort (City
of Sand City 2008, as Certified 2009)

Final Environmental Impact Report, Monterey Bay Shores Resort (City of Sand City
1998)

Final Environmental Impact Report for The Sands of Monterey (EIP 1990)

Biotic Assessment, Monterey Bay Shores EIR Addendum, Sand City, California (Zander
Associates 2008)

EMC PLANNING GROUP INC 1-9

CCC00248.0 INTRODUCTION

Annual Western Snowy Plover Surveys and Reports, PRBO/Zander Associates 1994-2015

Peer Review, Review of Mitigation Measures for Potential Impacts to the Western Snowy
Plover; Proposed Monterey Bay Shores Eco-resort, Sand City. California (Wildlife Science
International 2008)

Peer Review, Monterey Bay Shores EIR Addendum, Sand City, CA (URS 2008)
Monterey Bay Shores Botanical Survey Update Results (EMC Planning Group 2008)
Monterey Bay Shores Botanical Survey Update Results (EMC Planning Group 2011)
Monterey Bay Shores Botanical Survey Update Results (EMC Planning Group 2013)
Monterey Bay Shores Botanical Survey Update Results (EMC Planning Group 2014)
Monterey Bay Shores Survey for Western Snowy Plover (EMC Planning Group 2015)
Monterey Bay Shores Survey for Western Snowy Plover (EMC Planning Group 2016)
Monterey Bay Shores Monterey Spineflower Survey (URS 2014b)

Letter from USFWS to Mike Watson, Califomia Coastal Commission, April 7, 2014.
Information conveyed by USFWS documenting a random site visit (May 2014)
Landscaping Plan (Rana Creek 2015)

Dune Restoration Plan (EMC Planning Group 2015)

Vesting Tentative Map, Monterey Bay Shores and Revised Plans (Bestor Engineers 2015)
Public Access Management Plan (EMC Planning Group 2015)

Excess Sand Disposition from the Monterey Bay Shores (Haro Kasunich 2013)
Engineering Surveys of Site (Bestor Engineers 2014)

Signage Plan (EMC Planning 2015)

Lighting Plan (EMC Planning 2015)

Construction Plan (SNG & Bestor Engineers 2014)

Resort Pathways (Bestor Engineers, SNG, EMC Planning 2015)

Grading Plan (Bestor Engineers, 2015)

°

EMC PLANNING GROUP INC

ccc00249MONTEREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

Revised Findings and Addendum, California Coastal Commission (Adopted August 15,
2014)

Notice of Intent to Issue Coastal Development Permit, CDP-A-3-SNC-98-114 (May 30,
2014)

Letter from USFWS to Mike Watson, California Coastal Commission, April 1, 2016.

Memoranda by Dr. Koteen, California Coastal Commission (July & August, 2016)

The Monterey Bay Shores Resort property (APN 011-501-14) is located along the southern
Monterey Bay coastline at the northern city jurisdictional boundary of Sand City, approximately
one mile north of the City of Monterey and about 28 miles south of Santa Cruz (Figure 1, Site
Vicinity) in an urbanized area of the Monterey Peninsula. Lands of the former Fort Ord military
base, which is now Ford Ord Dunes State Park, and the City of Marina are to the north. Lands
owned by regional and state parks, the U.S. Naval Postgraduate School and shoreline portions
of the cities of Sand City, Seaside, and Monterey occur to the south, and large commercial and
shopping centers and residential development exist nearby across Highway I to the east.

For approximately 60 years Lonestar Industries conducted sand mining at the site and the site
remains in a degraded state. Minimal to no reclamation activities have occurred since the mine
closure. The site encompasses a gross area of 39.04 acres, of which approximately 32 acres lie
above the mean high tide line.

The beaches and dunes extending from the Salinas River to the mouth of the Monterey Harbor
once formed an extensive complex that has been heavily affected by long-term historical
industrial use and development, Sand mining, military use, and other development have all
affected the continuity and integrity of this shoreline dune complex. Sand City’s LCP seeks to
encourage restoration of the dunes within its jurisdiction as part of any coastal projects in two
nodes of development. One of those nodes is the Monterey Bay Shores Resort site, with the rest
of the coastal zone designated as open space or parks.

The revised and CCC-approved project includes the construction of a 368-unit mixed-use resort
with a hotel, visitor. serving condominiums (condominium hotel units), residential
condominiums, amenities and programs including restaurants, a conference center, spa and

EMC PLANNING GROUP INC 1-111.0 INTRODUCTION

wellness center as well as public parking, public access trails to the beach as well as dedicated
resort pathways. Emphasis in the design has been placed on extensive ecological and sustainable
elements, as well as numerous smart building and resort systems. Further details are provided in
Appendix A, CDP, and the plans approved by the CCC upon CDP issuance on November 9,
2015. The project is designed to integrate development within the dunes and as such, parking has
been designed to be underground. A good portion of the resort in the northern section is
designed below or at existing grade, stepping up as you move down-coast in order to protect
coastal resources, including views, and enhance open space through habitat restoration and
enhancement. Dune restoration on the east side of the property extends about two thirds up-
coast on the property. The project includes a subdivision of the property into three parcels per
the Revised Plans and a subsequent subdivision of the condo-hotel and residential units.

Main access to the resort begins at the terminus of California Avenue at the main entry driveway
and through a tunnel ending on the westerly side of a plaza in front of the lobby, with direct
access to underground parking both for the hotel and residential units. Secondary access for
service to the hotel and the residential condominiums is on the north-easterly end of the resort
below existing grade along with emergency and fire vehicle access provided on the north end of
the resort wrapping westward in front of the resort with a turnaround, all connecting to guest
trails to the beach. The resort will include the following uses:

A 184-room hotel located south of the central lobby building area;

92 visitor-serving condominium units (rental program condo hotel) located south of the
lobby building area enveloping a courtyard in the backside and above the hotel units;

92 residential condominium units located north of the lobby and a main program building
enveloping a courtyard;

A program facilities building including a reception/lobby, restaurants, retail and wellness
spa center;

Auxiliary facilities including conference center, meeting rooms, theater and parking all
located in the underground building at levels 22’ and above; and

Open space, public access and surface parking on the easterly side, resort pathways and
public trails to the beach, three vista points, and habitat and dune restoration areas,

1-12 EMC PLANNING GROUP INC

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CCC002521.0 INTRODUCTION

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cCC00253Monterey BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

1.3.1 Grading, Site Preparation, and “No-Grade” Areas

As described below, portions of the site, except for areas on the beach below (seaward) of the 20-
foot MSL (toe of the bluff) contour line, will be graded to re-contour, stabilize, and restore the
dunes. That activity will result in the removal of more than 400,000 cubic yards of sand, which is
a 50% reduction in sand removal compared with the 1998 design. In part, the reason that sand
removal is necessary is because:

The Commission required setting the project back to the 75 year/2.6-foot setback line
(exceeding the LCP requirements and approved by the CCC);

2, The legal requirement for the emergency access road;
3. The placement of the garages and resort parking under the buildings;

4, The construction of an underground building to preserve views as approved by the
Commission; and

5 The CCC requirement that bulk and mass of the buildings be centered in the SE portion of
the development envelope and pushed to a lower MSL.

Disposal of excess sand would be accomplished outside of the Coastal Zone in one of the
following three ways, or a combination thereof:

Contract with an excavation or grading company(ies) to remove the sand from the site and
stockpile the sand outside the Coastal Zone for commercial use and beach nourishment
projects [consistent with the 2008 Southern Monterey Bay Coastal Regional Sediment
Management Plan (CRSMP) and/or Sand Compatibility and Opportunistic Use Plan
(SCOUP)];

2 Sale for upland uses or to private contractors and aggregate companies; or
3 Disposal at the Marina Landfill or other upland location

Further details on sand removal ate provided in the Construction Plan and VT'M (2015), which
is included in Appendix Q, VTM, and Appendix N, respectively.

Of the site's 32 acres above the mean high tide line, approximately 19.0 acres will be modified by
grading, excavation, and recontouring, including rehabilitation, restoration and stabilization of
the sand dunes degraded by historical sand mining.

Approximately 10.2 acres of the site above the mean high tide has been designated as critical
habitat for the western snowy plover. Of that area, approximately 4.0 acres includes the beach
and strand area below 20 feet mean sea level (MSL), which will not be subject to grading or

EMC PLANNING GROUP INC

ecc002541.0 INTRODUCTION

development. In addition, the swale area along the northern property line, has been set aside to
protect existing buckwheat plants and will not be subject to any grading.

As approved by the CDP dated November 9, 2015, an area totaling approximately 6.1 acres
within the higher elevation western snowy plover critical habitat (not on the beach) will be
graded, recontoured and enhanced to include foredune habitats with native dune species
preferred by western snowy plover. Western snowy plover nesting activity has not been observed
in this 6 acre area during the past 22 years. Grading activity in this elevated area will be limited
to 60-90 days and will be timed to occur outside of the plover nesting period, if feasible. Other
grading on the site will maintain a buffer of at least a distance of 100 ft from the existing blufftop
during western snowy plover breeding season

All construction activities are subject to all of the plover protection measures detailed later in this
HPP, including surveys by the biologist and on-going monitoring by the biologist, cessation of
work in the affected area if any plover nests are discovered, and other measures designed to
ensure no plover take and no significant damage or degradation to western snowy plover critical
habitat, ensuring that any such habitat impact does not rise to the level of "significant habitat
modification or degradation where it actually kills or injures wildlife by significantly impairing
essential behavioral patterns, including breeding, feeding or sheltering." 50 C.F.R. § 17.3. There
will be no alterations or effects that preclude or significantly delay the development of the
physical or biological features that support the life-history needs of the western snowy plover for
recovery. The recontoured and enhanced area will be designed to make the area more attractive
to plovers than the existing area that has been subject to, and damaged by, 60 years of intensive
sand mining,

The remainder of the site, also subject to the plover and buckwheat protection and recovery
measures, will be recontoured for construction of the buildings and infrastructure as shown in
Figure 2, Site Plan, with a portion of the site surface restored above the underground buildings
after completion of construction. Restored areas will include stabilized sand dunes and coastal
habitat, At project completion, the maximum elevation on the site will be about 150 feet above
MSL at the southeast corner of the site, which will be recontoured for dune stabilization. (The
highest sand dune on the site currently is 150 feet MSL.) Most existing dunes will be preserved
with minor berming or minimal disturbance, other than what is needed for habitat restoration or
stabilization of the dunes.

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1-18 EMC PLANNING GROUP INC

©CC00257MONTEREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMB

1.3.2 Site Layout and Project Design

‘The Monterey Bay Shores resort has been designed using an ecologically protective approach
that integrates site conditions and capacity with the layout and structure design in order to
achieve long-term sustainability. Dune topography, native plant assemblages and ecological
functions will be restored on the site to correct degradation due to decades of mining operations

The proposed development is clustered towards the central and southern portions of the site
(with an expanded setback from the mean high tide line) and oriented towards Monterey Bay.
Physical conditions that influenced the layout of the project include the desire to meet or exceed
the required shoreline setback requirements, coastal and biological resources and habitat, site
topography, dune stabilization and restoration requirements and policies, and conditions
imposed by the Coastal Commission. In addition, the site design accounted for the LCP’s land
use requirements, regulations and policies, including public access to the shoreline, public
recreation opportunities, open space, dune stabilization and habitat restoration areas, height
limitations, and protection of specific views of Monterey Bay, in accordance with the
Commission-certified LCP. The revised project also emphasizes visitor-serving uses, as those are
a priority in the LCP.

The development will be built "into the dunes," including the underground buildings, in order to
conform to, and blend with, the dune environment, reduce the project's impacts to views of the
site and of Monterey Bay, and reduce noise impacts to the project, all of which are consistent
with the policies of the LCP. Architectural forms are intended to conform to the topography,
shore orientation, and scale of natural dune formations. The proposed hotel, resort, and
condominium units all will be integrated into what appears as stepped buildings, starting with
two and three stories in the west and cascading up the dunes going east as well as stepping up
going south, with the bulk of the massing concentrated south towards the large dune area. The
approved buildings on the site will be constructed in a stepped fashion, beginning on the west
side and stepping up into higher elevations to the east, to fit the dune topography and screen
buildings (Figure 3, Proposed Building Cluster Design). The elevation of the main entry plaza
and reception area will be at 65 feet above MSL and will provide access both to the hotel and
visitor serving condominiums portion on the south and the residential portion on the north of
the building as well as to the conference area, wellness spa center and restaurants in the lower
and underground building. The highest building elevation will not exceed 122 feet above MSL
and is located in the southeast corner. Most of the building roofs will be “green roofs” allowing
for stormwater management and rain harvesting. The hotel units, visitor-serving residential
units, and the underground facilities will be located on the southera end and central portion of
the proposed buildings and the residential units will be located in the northern end. The main
lobby/reception area and main program area building will separate the hotel/visitor serving
units and the residential units, and steps down to an elevation of 32 feet. All of the buildings
provide for vertical circulation, daylighting and ventilation towers.

EMC PLANNING GROUP INC 1-19

ccc002581,0 INTRODUCTION

1.3.3 Site Access and Parking

Vehicular access to the project site will be via an entry driveway with main access through a
tunnel to the plaza in front of the lobby area. The main entrance to the proposed building will be
located approximately 500 feet from the current terminus of California Avenue. The main
entrance will provide access to the conference area, restaurants, spa and wellness center and
building lobby/reception and underground parking garages. Two secondary access roads used
for delivery truck access, employee parking, residential condominium owners and emergency
vehicle access will be provided on the north end of the project.

All underground parking will be located behind and below the buildings in an underground
garage. The parking garage will provide approximately 947 parking spaces for the development.
An additional 46 public parking spaces will be located along the entry drive on the northeast side
of the project site beyond the main tunnel. The revised project maximizes covered and
underground parking, which fulfills the LCP policy of encouraging a layout that buffers parking
from Monterey Bay.

1.3.4 Public Access

The project will include a public access easement on the eastern portion of the site, along the
entry road. A public access pathway (6’ wide) with a scenic overlook will be provided from the
parking areas on the eastern side along the property line, then turning to the beach along the
north end of the property in the swale, Access ways are sited away from the large dune areas that
will be stabilized and where habitat will be restored. Pathways are designed to avoid restored
vegetation and include exclusion measures such as signage and fencing to protect these areas.

An additional public easement will cover the entire beach area below the toe of the bluff ( 20 feet
MSL) to ensure lateral access along the coast on dry sand. Vertical access to the shore, two resort
pathways and one public access trail, has been provided at three locations on the site to prevent
crowding and overuse of coastal resources.

Public access will be coordinated and controlled based on recommendations of an approved
biologist to avoid or minimize impacts to biological resources. Visitors, guests, owners, and the
public visiting the beach will be provided with educational handouts on the Western snowy
plover and “Birds on West Coast Beaches” published by Point Blue Conservation Science,
available at the resort and at the coastal access parking and vista points. Beach rules will be
posted on the three public and private trails to the beach at the beach stairs and in the public
parking area.

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1-22 EMC PLANNING GROUP INC

CCc00261MONTEREY BAY SHORES RESORT: HABITAT PROTECTION PLAN NOVEMBER 2015

A joint pedestrian and bike path will be constructed along the eastern property boundary to the
public parking area, designed to connect with the regional bike path. The project proposes a
public access easement on the site that would connect the public parking area at the northeast
corner of the site with the beach and vista point through a trail located along the northern side of
the underground buildings.

In addition, a 16.70-acre conservation easement will surround the proposed buildings on the site.
Visitors will be allowed within some areas of the conservation easement associated with public
access, subject to restrictions and signage needed to protect biological resources, including
Monterey spineflower, western snowy plover, and Smith's blue butterfly, as described herein.
Additional details are provided in the Dune Restoration Plan (Appendix F), the Public Access
Management Plan (Appendix I), the Signage Plan (Appendix J), the Irrevocable Offer of
Dedication-Dune Conservation Area (Appendix C), the Irrevocable offer of Dedication-Public
Access Easement (Appendix D), and the Deed Restriction (Appendix E).

1.3.5 Utilities and Infrastructure

The proposed project will obtain utility services from the Seaside County Sanitation District,
California American (Cal-Am) Water Company utilizing SNG’s water rights and allocation,
Pacific Gas & Electric and other service providers. An eight-inch sanitary sewer line will be
located along the ocean side of the proposed project and will connect with a sewage lift station in
the southwest portion of the project site. The lift station will connect with a four-inch sanitary
sewer force main through the project site out to the main entry. The sanitary sewer line will be
extended in California Avenue to an existing six-inch main sewer line at the Edgewater
Shopping Center. The project site has been annexed into the Cal-Am service area, such that
water lines will be extended from the Edgewater Shopping Center to the project site. Additional
details are provided in the revised plans and VTM in Appendix A, CDP.

The revised project will use cutting-edge sustainable energy demand-reducing technologies and
smart systems in order to reduce overall energy use, decrease fossil fuel use, and decrease the
project's carbon footprint. The revised project proposes to capture stormwater for on-site use and
allow infiltration on the site. The revised project includes cisterns and a retention pond, located
on the east portion of the site adjacent to the main entry driveway. Storm drainage lines ranging
from 12 inches to 24 inches will be located throughout the site. See Stormwater Drainage Plan
(Appendix A, CDP and Appendix N) for further details. Water conservation will be a significant
component of the utility systems and operation of the resort. Since the project is designed to
avoid stormwater runoff, the project will not connect with off-site storm drainage lines and will
not discharge stormwater from the site but rather use drywells to recharge the aquifer.

EMC PLANNING GROUP INC 1-23

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1-24 EMC PLANNING GROUP INC

CCC002632.0
XIST G OND TIONS AND
XPECTED MPACTS

2.1 EXISTING CONDITIONS

This section details the existing biological site conditions. The biological resources on the project
site have been documented through numerous studies and biological surveys conducted for the
Permittee, the City of Sand City and for previous project applicants, as well as frequent
biological surveys during the project application process.

An EIR was prepared for the Monterey Bay Shores property by David Powers Associates and
approved and certified by the lead agency, the City of Sand City (Sand City/David Powers
1998). An addendum was completed in August 2008 (Certified 2009) to update this EIR based
on a revised design and smaller project (Sand City/David Powers 2008).

To update the biological resources section of the EIR, Zander Associates prepared a biotic
assessment to compare the findings for the previous project with the impacts of the revised
project and to identify any substantial changes in impacts or requirements for new mitigation
measures. Additionally, two independent peer reviews of the proposed plover mitigation strategy
were conducted (URS 2008, Wildlife Science International 2008).

In addition, numerous biological surveys have been conducted. Beginning in 2005, the City of
Sand City co-sponsored annual systematic breeding season surveys of the Sand City coastline for
the western snowy plover. These surveys are conducted by Point Blue Conservation Science
(PBCS), formerly known as the Point Reyes Bird Observatory (PRBO).

Additional surveys were conducted in 2014 by URS Corp (URS 2014a) and by EMC Planning
Group in 2014, 2015 and 2016. In May 2014, the USFWS conducted an independent,
unannounced inspection/survey of the entire site, No plovers were sighted on the entire site. No
take of listed species was identified by the USFWS. The EMC Planning Group surveys did not

ccco02642.0

XISTING CONDITIONS AND EXPECTED IMPACTS

observe plover occurring inland of the toe of the bluff. The 2016 survey found three plover nests
on the lower beach, which were also reported indepe