DATE: November 5, 2025
TO: Honorable Mayor and City Councilmembers and Chairperson and Members of the Community Development Commission
FROM: Development Services Department
TITLE: CONFIRMATION OF CALIFORNIA ENVIRONMENTAL QUALITY ACT CATEGORICAL EXEMPTION AND CONSIDERATION OF A REGULAR COASTAL PERMIT (RRP25-00003) TO ALLOW PHASE II OF THE CITY'S DOWNTOWN WATER UTILITY AND SEWER INFRASTRUCTURE UPGRADES - DOWNTOWN SEWER REPLACEMENT PROJECT PHASE II - APPLICANT: CITY OF OCEANSIDE WATER UTILITIES DEPARTMENT
RECOMMENDATION
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Staff recommends that the City Council and Community Development Commission (CDC) adopt a resolution confirming issuance of a Categorical Exemption pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15302 (Replacement and Reconstruction) and 15303 (New Construction or Conversion of Small Structures) and approving a Regular Coastal Permit (RRP25-00003), allowing upgrades to the City's existing water and sewer infrastructure within portions of the Downtown District and Coastal areas, including 13,500 feet of water improvements and 16,800 feet of sewer improvements, and expand the City's recycled water system by installing 5,580 feet of new recycled water infrastructure within the Downtown District and Coastal areas.
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BACKGROUND AND ANALYSIS
There are approximately 500 miles of water utility distribution and transmission pipelines and 515 miles of sewer collection pipelines throughout the City of varying age, type, and size. Pipes within the existing system eventually require replacement based on age, condition, and/or size ("hydraulic capacity"). Hydraulic modeling throughout the City was performed as part of the 2015 Water Master Plan and recently updated through hydraulic modeling tasks performed this year. Hydraulic deficiencies were identified in portions of the Downtown and Coastal areas of the City, primarily for pipelines less than eight inches in diameter.
These areas require the pipe to be upsized in order to improve the hydraulic capacity and to accommodate the proper fire flow. In addition to the upsizing required to meet the City's hydraulic deficiencies, the City intends to expand the existing recycled water utility system. The Water Utilities Department maintains 6.2 miles of 16-inch diameter pipeline that would be repurposed to convey tertiary treated water along the Highway 76 corridor and through Downtown Oceanside from the San Luis Rey Water Recycling Facility.
The proposed project is a Water Utilities Capital Improvement Program (CIP) project and constitutes the second phase of the City's Downtown Water and Sewer Replacement Program ("Program"). The Program, which was approved by City Council in 2018, is a five-phase program to systematically replace the aging water and sewer infrastructure in the Downtown areas. Phase I was completed in December of 2018 and included over 2.5 miles of water infrastructure replacement and over 1.5 miles of sewer infrastructure replacement. The proposed Phase II improvements would bring water utility and sewer facilities up to current standards, thereby ensuring adequate water and sewer infrastructure needs are satisfied for existing and future development in the area. Additionally, the proposed project would expand the City's recycled water utility system into the Downtown areas.
On June 20, 2018, the City Council approved a Professional Services Agreement for the design of the proposed project (included as Attachment 2 to the Planning Commission staff report).
Prior to requesting a Regular Coastal Permit application to be submitted for the proposed project, staff consulted with the California Coastal Commission (CCC) staff to discuss whether the proposed project would require approval through the City's entitlement process. CCC staff informed City staff that the project does not qualify for a Coastal Permit exclusion nor exemption and that a Regular Coastal Permit shall be required for portions of the project located within the Coastal Zone.
PROJECT DESCRIPTION
The proposed Water Utilities CIP project includes the approval of a Regular Coastal Permit as follows:
Regular Coastal Permit (RRP25-00003) represents a request to provide upgrades to the City's existing water utility and sewer infrastructure, including 13,500 feet of water utility improvements and 16,800 feet of sewer improvements, and expand the City's recycled water utility system by installing 5,580 feet of new recycled water utility infrastructure. As illustrated in Figure 1, a majority of the proposed improvements are located in the Downtown District (indicated by a hatched line) and lie within the Coastal Zone boundary (shown in purple). The proposed water utility infrastructure improvements are shown in blue, sewer infrastructure improvements are shown in green, and recycled water utility infrastructure is shown in pink.
Figure 1: Project Location
Pending project approvals, Phase II construction is anticipated to begin in January 2026. Once materials and permits are approved by the City, the contractor would mobilize to begin recycled water portions of the work, as well as the phasing in of sewer and water infrastructure replacements. Construction is anticipated to last up to two and a half years. Construction restrictions would include a prohibition on work west of Meyers Street between Memorial Day and Labor Day. Typical Right-of-Way permit restrictions would apply to other work locations farther east, with requirements for access to residential and retail/commercial businesses to be maintained at all times. The contractor would be allowed to complete up to two pipeline alignments concurrently, as long as bi-directional traffic in streets can be facilitated and maintained. For sections of work with the potential for larger traffic impacts such as busy intersection closures, night work would be required. Through a Traffic Control Plan, approved by the City Traffic Engineer, access to private and commercial property owners would be maintained during construction.
Public outreach is a major component of the project. The Water Utilities Department has been coordinating closely with Mainstreet Oceanside to develop restrictions on construction to maintain scheduled events in the Downtown area at all times, including the weekly Farmer's and Sunset markets. In the last few months, Water Utilities staff provided Visit Oceanside and the Oceanside Coastal Neighborhood Association an overview of the proposed project and anticipated construction schedule. During construction, the City would contract with public outreach resources to provide regular construction updates, both through physical fliers and social media updates. The ultimate goal would be to keep affected parties, including residents and businesses, aware of what work is occurring and when it will take place at all times.
Key Planning Issues
The proposed project has been reviewed for compliance with the General Plan, Zoning Ordinance, Local Coastal Program, and CEQA.
1. General Plan Conformance
Staff has evaluated the project for consistency with the following goals, objectives, and policies of the City's General Plan as follows:
Community Facilities Element
Water and Sewer Systems
Objective: To provide an adequate water utility supply, storage, and distribution system, and an adequate sanitary sewage collection and treatment system to serve Oceanside's existing and future growth requirements in an efficient and cost-effective manner, while encouraging a more compact and sequenced development pattern through the phased extension of water utility and sewer systems while meeting all Federal and State mandated programs.
Policy 5.5: The sanitary sewer system shall be designed to allow for full development of each service area at the intensity allowed by the Land Use Element of the General Plan.
Policy 5.9: Throughout the community, the City shall systematically expand water utility storage capacities and service line distribution systems to keep pace with growth projections included in the City's General Plan.
Policy 5.12: The water supply and distribution system shall be designed to allow for development of each service area at the intensity allowed by the Land Use Element of the General Plan.
The proposed project is consistent with the Community Facilities Element because it would implement policies related to providing adequate sewer and water utility service to the Downtown District community. By upgrading the existing sewer and water utility infrastructure and expanding the recycled water utility system, the proposed project would help ensure the City continues to satisfy sewer and water utility infrastructure needs of Downtown District neighborhoods.
Land Use Element
1.32: Coastal Zone
Objective: To provide for the conservation of the City's coastal resources and fulfill the requirements of the California Coastal Act of 1976.
Policy A: The City shall utilize the certified Local Coastal Plan and supporting documentation for review of all proposed projects within the Coastal Zone.
Portions of the proposed project are located in the Coastal Zone and therefore the proposed project was reviewed for conformance to the City's Local Coastal Program (LCP) and California Coastal Act as further explained in the LCP Conformance section below.
2. Local Coastal Program (LCP) Conformance
Per the LCP, the proposed project is defined as a Public Works Project and is considered "Development" requiring a Regular Coastal Permit. Staff reviewed the proposed project for compliance with the LCP's requirements for development in the Coastal Zone and found it to be consistent with the coastal policies and guidelines outlined in the LCP Land Use Plan. Specifically, the proposed project conforms to the LCP's provision regarding Public Works Projects, as follows:
Policy VII: New Development and Public Works
A. The Coastal Act also limits new and expanded public works facilities to those facilities necessary to accommodate new development or uses permitted by the Act.
C.3 New or expanded public works facilities shall be sized to serve new development and uses allowed pursuant to the LCP Land Use Plan.
The LCP identified "Sewer line improvements per the Sewer and Water Master Plan" as one of the necessary Coastal Zone Public Works Projects. Per the LCP, "The purpose of this project is to correct existing deficiencies, and allow new development consistent with Coastal Act policies. This will allow densities which can facilitate transit and reduce energy consumption." The proposed project is intended to correct the existing deficiencies identified through the hydraulic modeling completed for the City's Water Master Plan. The proposed project would expand the existing water utility and sewer infrastructure as deemed necessary to accommodate existing and projected development in the Downtown District.
Furthermore, the proposed project complies with public access and recreation policies of the Coastal Act because the proposed project would not restrict public access to and along the shoreline. CCC staff expressed concerns with limited beach and pedestrian access along The Strand and suggested that the project be conditioned to not permit any work along The Strand or within the immediate vicinity of The Strand during peak summer months. To avoid any potential beach or pedestrian access constraints during peak summer months, a Condition of Approval has been placed on the project to limit construction activities occurring within close proximity to the coast to not take place during peak summer months. Additionally, Water Utilities staff will inform the public of the proposed construction schedule and road closures once available. Through a Traffic Control Plan, approved by the City Traffic Engineer, access to private and commercial property owners would be maintained during construction.
The proposed project is subject to Planning Commission and CDC approvals. The portion of the proposed project located outside the Downtown District and within the Coastal Zone is subject to consideration of a Regular Coastal Permit by the Planning Commission. The portion of the proposed project located inside the Downtown District and within the Coastal Zone is subject to CDC consideration of a Regular Coastal Permit, with a prior recommendation from the Downtown Advisory Committee. Here, in lieu of having two separate approvals of portions of the project, staff determined that it was appropriate for the Planning Commission to consider the entire project for recommendation to the City Council and CDC. On August 25, 2025, the Planning Commission considered the entire project and voted 5-0 (Commissioners Rosales and Dodds absent) to recommend City Council and CDC approval of the Regular Coastal Permit. Following the Planning Commission's recommendation to approve or deny the Regular Coastal Permit, the proposed project is subject to approval by the City Council and CDC.
3. Zoning Ordinance Compliance
Pursuant to the City's Zoning Ordinance the proposed project, which includes underground water utility and sewer lines, falls under the use classification of Minor Utilities. Minor Utilities are a permitted use throughout the City since they are facilities that provide necessary infrastructure to support the City.
4. CEQA Conformance
See the Environmental Review section below.
ENVIRONMENTAL REVIEW
Staff finds that the proposed project is Categorically Exempt pursuant to CEQA Guidelines Article 19 (Categorical Exemptions), Sections 15302 "Replacement or Reconstruction" and 15303 (New Construction or Conversion of Small Structures).
FISCAL IMPACT
The proposed project is a Water Utilities Capital Improvement Program Project. There is approximately $40 million of funding available for the proposed project.
COMMISSION OR COMMITTEE REPORT
On August 25, 2025, the Planning Commission was presented with the proposed project and voted 5-0 (Commissioners Rosales and Dodds absent) to recommend City Council and CDC approval of a Regular Coastal Permit.
CITY ATTORNEY'S ANALYSIS
The City Council and CDC are authorized to hold a joint public hearing in this matter. Consideration of the matter should be based on the testimony and evidence presented at the hearing. The supporting documents have been reviewed and approved as to form by the City Attorney.
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Prepared by: Shannon Vitale, Senior Planner
Reviewed by: Darlene Nicandro, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. City Council and CDC Resolution
3. Plans
4. Planning Commission Staff Report dated August 25, 2025
5. Notice of Exemption
6. CEQA Exemption Memo