Measure M2 Freeway Environmental Mitigation Program

2 Measure M2 (M2) Mitigation Program Overview  M2-approved - November 2006  Innovative Freeway Environmental Mitigation Program  Mitigation Program part of 2007 Early Action Plan (EAP)  Environmental Oversight Committee

3 Mitigation Program Background  At least five percent of the M2 freeway program revenue  Expenditures for mitigation of the 13 M2 freeway projects  Through property acquisitions and habitat restoration  Streamlined biological permitting process in partnership with Caltrans, and state and federal wildlife agencies  Address RWQCBs and ACOE wetlands permitting requirements

4 Plan Development  Natural Community Conservation Plan/Habitat Conservation Plan (NCCP/HCP)  State and Federal mechanism for resolving development and the protection of threatened and endangered species  Integrates acquired properties and restoration projects as mitigation  Implementation agreement  Environmental Impact Report/Environmental Impact Statement  Public participation opportunities  Solidifies decision on the project  Completed by early 2013

5 Mitigation Program Forecast/Revenues Environmental Mitigation Program – 30 years (millions of nominal dollars)  Approximately 37 percent less than 2005 estimate 2005 Estimate2011 ForecastDifference $486$307$179

6 Mitigation Program Expenditures  2007 EAP provided for $55 million in funding  November 2010: Board of Directors authorized combining two tranches for acquisitions ($42 million)  By fiscal year (FY) , potential debt issuance for approximately $18 million in net bond proceeds AllocationFirst Round (in millions) Second Round (in millions) Acquisition$22 $20 Restoration $5.5 $5 Plan Development $2.5 Total$30$25

7 Acquisition Properties Status  Purchase up to $42 million of acquisition properties  Includes management cost  Acquired five properties to date  Additional 12 Group 1 properties still under consideration  Identify interim and long-term land managers

8 Acquired Properties

9 Hayashi Property

10 Saddle Creek South

11 Hafen Estates Property

12 O’Neill Oaks Property

13 Ferber Ranch Property

14 Land Management Plan Short-term  Secure agreements with interim land managers  Maintain status quo of biological resources  Address enforcement issues Intermediate-term  Develop draft interim resource management plans  Establish endowments for long-term management Long-term  Secure long-term agreements with land managers  Maintain biological resources consistent with NCCP/HCP  Provide annual status reports to Wildlife Agencies

15 First Round Restoration Proposals  30 restoration proposals submitted  Biological and non-biological criteria considered  Five restoration projects have been granted funding ($5.4 million):  City Parcel (San Juan Capistrano)  Irvine Ranch Conservancy (County)  Big Bend (Laguna Beach)  Fairview Park (Costa Mesa)  UCI Nature Preserve (Irvine)  Removal of invasive plant species  Restoration of native plant habitats

16 First Round Funded Restoration Properties

17 Agua Chinon and Bee Flat Canyon Irvine Ranch Conservancy 94.9 acres of restoration consisting of chaparral, coastal sage scrub, coast live oak, sycamore oak woodland, native grassland and riparian

18 Fairview Park City of Costa Mesa 23 acres of restoration consisting of wetlands, native grasslands, coastal sage scrub, riparian, and oak woodland

19 City Parcel City of San Juan Capistrano Before Target for After Restoration 53 acres of restoration consisting of riparian, coastal sage scrub, oak woodland, and native grassland

20 Big Bend Laguna Canyon Foundation 3.5 acres of restoration consisting of coastal sage scrub and riparian woodland

21 UCI Ecological Reserve Nature Reserve of Orange County 8.5 acres of restoration consisting of cactus scrub Photos of 2011 restoration efforts Photo - NewFields Photo- Kris Preston Photo - Peter Bowler

22 Second Round Restoration Proposals  20 restoration proposals submitted  Biological and non-biological criteria considered  $5 million authorized for funding  High-ranked first round proposals are eligible for second round funding  Board approval for funding anticipated May 2012

23 Second Round Candidate Restoration Properties

24 Aliso Creek Laguna Canyon Foundation City of Laguna Niguel 55 acres of riparian and transitional habitat

25 Chino Hills State Park City of Brea and Yorba Linda 15 acres of riparian restoration and 6 acres of cactus scrub restoration

26 Harriett Wieder Regional Park Bolsa Chica Conservancy City of Huntington Beach 8.2 acres of restoration consisting of grassland, coastal sage scrub and riparian habitat

27 Lower Silverado Canyon Irvine Ranch Conservancy City of Irvine 44 acres of restoration consisting of riparian habitat

28 North Coal Canyon Chino Hills State Park City of Yorba Linda 5.5 acres of restoration consisting of coastal sage scrub habitat

29 West Loma Irvine Ranch Conservancy City of Irvine 80 acres of restoration consisting of coastal sage scrub and riparian habitat

30 Next Steps  Complete acquisition expenditures  Seek funding approval for second round of restoration projects  Revisit program expenditures/revenues to determine potential future funding needs  Complete draft NCCP/HCP and environmental documents  Outline management scheme  Determine long-term land management cost  Develop resource management plans  Execute Implementing Agreement