STAFF REPORT FOR MAJOR LAND USE PERMIT #U JULY 18, 2013 PAGE PC - 1 LULA CELLARS, LLC. JEFF HANSEN P.O. BOX 130 MENDOCINO, CA 95460

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1 STAFF REPORT FOR MAJOR LAND USE PERMIT #U JULY 18, 2013 PAGE PC - 1 OWNER/APPLICANT: AGENT: REQUEST: LOCATION: LULA CELLARS, LLC. JEFF HANSEN P.O. BOX 130 MENDOCINO, CA JIM RONCO CONSULTING JIM RONCO 700 E. GOBBI ST. #14 UKIAH, CA Use permit to convert an existing 1,600 square foot barn into a winery, producing 200 cases per year, and a 400 square foot tasting room, with limited retail sales, and establishment of an outdoor event area to hold 10 events per year, attended by up to 100 people Guntly Road (a private road), next to Highway 128, in Anderson Valley, between the Town of Philo and Town of Navarro. (Assessor Parcel Numbers: , ) SUPERVISORIAL DISTRICT: 5 GOVERNMENT CODE DATE: ENVIRONMENTAL DETERMINATION: RECOMMENDATION: Not applicable to legislative acts Mitigated Negative Declaration Approve the request EXISTING CONDITION: General Plan Land Use: Remote Residential Twenty Acres Minimum (RMR 20) Zoning: Urban Residential Twenty Acres Minimum (UR 20) Area: acres. Improvements: The property is developed with a single-family residence, built in 1972, that stands in the southeast corner of the property with a driveway entrance onto Guntly Road. The subject barn is located in the southwest corner of the parcel, next to Highway 128, and is accessed by another driveway onto Guntly Road. The remainder of the property includes a acre vineyard and a ½ acre pond. Two agricultural wells serve the vineyard. The residence is served by an on-site domestic well and septic system. Soils: Shingle Mill and Black Lock Soils are shallow to hardpan and very poorly drained. Permeability of these soils is very slow and water capacity is very low. The vegetation is mainly stunted Mendocino cypress and not conducive to redwoods, bishop pines or Douglas pines. Topography and Drainage: The parcel is moderately sloped in north-south direction and is bisected by a tributary creek that runs past the barn and the pond before it crosses under Highway 128 and enters Floodgate Creek. Biological Resources: The parcel is not located within any of the Sensitive Habitats identified in Section 4-9 of the Mendocino County General Plan.

2 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 2 SURROUNDING GENERAL PLAN / ZONING / LOT SIZE AND USES: GENERAL PLAN ZONING LOT SIZES USES NORTH RMR 20 UR /- Acres Residential/Vineyard EAST RMR 20 UR /- & /- Acres Residential/Vineyard SOUTH AG AG /-Acres Vineyard WEST State Highway 128 State HWY 128 State Highway 128 State Highway 128 SERVICES: Access: Guntly Road (private) off State Highway 128 Fire: Anderson Valley Community Services District & California Department Forestry and Fire Protection Water: Private, on-site system Sewer: Private, on-site system Schools: Anderson Valley Unified School District PROJECT DESCRIPTION: Convert the existing 1,600 square foot agricultural building (barn) into a winery and a 400 square-foot tasting room. The winery will produce 200 cases per year and will include grape crush, fermentation, aging and bottling. During the peak season, the winery and tasting room will employee three people, with hours of operation from 10 AM to 5 PM daily. The tasting room will also sell seasonal fruit and vegetables grown on-site. The area around the existing barn will accommodate 19 offstreet parking spaces. An outdoor event area, approximately 2 acres west of the pond, will be established for up to 10 events (including weddings and dinners) per year, with a maximum attendance of 100 people. Twenty unimproved parking spaces will be provided within the event area. Finally, two on-site highway signs, 64 square feet each, will be placed at either end of the property s Highway 128 frontage. RELATED CASES ON SITE: MD 63-72: Created Parcel 3 of which is the subject parcel (Exhibit, Original MD Map, PC-7) R : The previous owners requested a rezone from UR: L-20 to AG: L-40. The Planning Commission recommended the Board of Supervisors deny the rezone; the application was subsequently withdrawn. REFERRAL AGENCY COMMENTS: The project referral was sent to the agencies listed in the table below. All of the received comments are provided in Appendix B and key comments are summarized below. REFERRAL AGENCIES County Planning (Ukiah) County DOT Environmental Health County Building Services (Ukiah) Mendocino County Farm Advisor Agriculture Commissioner Archaeological Commission Sonoma State Univ. Rec. Arch. Caltrans District 1 Cal Fire Cal Depart of Fish & Wildlife RWQCB North Coast Region Anderson Valley School District Anderson Valley CSD NOT RETURNED x x x x "NO COMMENT" COMMENTS x x x x x x x x x x

3 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 3 California Department of Transportation (Caltrans) District 1 (Jamie Hostler, Associate Transportation Planner, March 19, 2013) Upgrade paving and drainage system to current commercial driveway specifications for the existing Guntley Road connection to State Route 128. Obtain an Encroachment Permit for all work completed within the State right-of-way. County Department of Transportation (Tom Peters, Deputy Director, April 9, 2013) Access to the subdivision is currently provided by an existing driveway onto Guntly Road (private) approximately 150 feet east of State Highway 128. Guntly Road is a privately maintained gravel road 18 to 20 feet in width which serves this property and approximately 60 other parcels created by Parcel Map The sign says the roads are maintained by the Holmes Ranch Road Association. The private road appears to be well-maintained and sufficient for this project, no improvements are recommended at this time. The private road approach to State Highway 128 is in Caltrans Jurisdiction. It is recommended that careful attention be given to any Caltrans comments on this project. County of Mendocino, Environmental Health Division (Dave Jensen, Director, March 12, 2013) Applicant must submit an acceptable septic design for management of wastewater. Wastewater to be managed through other method (reuse) must be approved by Regional Water Quality Control Board. A qualified person must conduct a 1,200-gallon proof of water test. North Coast Regional Water Quality Control Board (NCRWQCB) (Rhonda Raymond, conversation, May 8, 2013) Applicant shall obtain a General Winery Permit, or a waiver of a General Winery Permit from the RWQCB North Coast Region RWQCB recommends that a second septic tank be installed to accommodate only winery wastewater. KEY ISSUES General Plan and Zoning Consistency The proposed winery and tasting room are consistent with the Remote Residential Twenty Acres Minimum (RMR 20) General Plan Land Use designation and are allowed with a use permit as a Packing and Processing Winery use in the Upland Residential (UR) Zoning district. While the applicant s proposal statement suggests the winery will demonstrate wine production, the proposed winery and related tasting room can only be approved if the winery produces wine from grapes grown on- or off-site. In this regard the winery must include all aspects of wine production including grape crush, settlement and fermentation, barrel storage and bottling for this use permit to be approved. The proposal statement indicates wine production will occur on the site and therefore conforms to the general plan and zoning designation. The proposed seasonal sale of fruit and vegetables grown on the site is considered incidental to the winery and tasting room use provided this retail activity is restricted to the tasting room area as proposed. The requested events will occur in the designated outdoor event area that will be rented to private parties for a variety of activities including weddings, dinners, and similar gatherings. While this type of event does not ordinarily require a planning permit, it is associated with and incidental to the requested winery and tasting room use and therefore included in the requested use permit. As proposed, the proposed project conforms to the requirements of Section (B) and Section of the MCIZC.

4 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 4 Transportation and Parking Access to the project site from State Highway 128 will rely on approximately 150 feet of Guntly Road, a privately maintained road that serves approximately 64 lots within Holmes Ranch Subdivision, including Handley Cellars Winery. The applicant indicated the winery would generate approximately 35 vehicle trips during the peak season. Caltrans considers winery related trips as a commercial use and therefore will require a paved commercial driveway approach and drainage improvements within the Highway 128 right of way. An encroachment permit to construct these improvements will be required by Caltrans. With respect to parking for the proposed winery, Chapter of the MCIZC specifies minimum requirements including the number and size of parking spaces as well as provisions for American with Disabilities Act (ADA) parking. Based on the square footage of the building to be used for the winery, a minimum of 14 parking spaces are required, one of which shall be ADA accessible. As shown on the revised March 27, 2013 site plan, parking for the proposed winey and tasting room would consist of 19 parking spaces, and 2 ADA parking spaces, for a total of 21 spaces. The project would be conditioned to require the submission of a final detailed and fully dimensioned parking plan and layout to ensure impacts from on-site parking would not impact circulation along Guntley Road. Winery Wastewater The existing residence on the property is currently served by an approved on-site wastewater treatment septic system. The new on-site 1,200 gallon septic system, shown on the site plan dated April 29, 2013, will be installed to serve only the guests and employees of the winery building and tasting room. As discussed above, NCRWQCB submitted comments regarding the proposed project, and indicated that the project would be subject to the requirements of obtaining a General Winery Permit or permit wavier from the NCRWQCB. Thus, the permit would be conditioned to require the applicant comply with this requirement before commencing operation. Private Events As indicated on the site plan, an 80,000 square-foot outdoor event area is proposed as a part of the project. This area will be rented for up to 10 events per year including, but not limited to, weddings and dinners. All of these events will be limited to a maximum of 100 attendees and are required to end by 10:00 PM. A shuttle service is proposed for guests staying at nearby lodging facilities. Otherwise, no additional parking is proposed on the site. Additional parking is required to help ensure adequate supply of onsite parking spaces and that spill-over parking does not occur on Guntly Road or Highway 128. Assuming 2.3 persons per vehicle, 44 on-site parking spaces are required during events. An additional 23 parking spaces are needed to fulfill event parking demand and thus help to avoid spillover parking impacts. Two conditions of approval are recommended to avoid this impact to the neighborhood. 1. The parking area for events shall be limited to only the areas surrounding the driveway area leading to the event area and the 20 parking spaces located at the winery building and tasting room, as shown on the March 27, 2013 site plan. 2. There shall be no event parking along State Highway 128, Guntley Road, or along the winery building and tasting room driveway or entrance. Failure to comply with this condition may lead to a revocation of the Use Permit. RECOMMENDATION: Staff recommends that the Planning Commission: APPROVE Use Permit # U subject to the conditions of approval recommended by staff and based on the following findings:

5 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 5 Environmental Findings: The Planning Commission finds that no significant environmental impacts would result from the proposed project that cannot be adequately mitigated through the conditions of approval; therefore, a Mitigated Negative Declaration is adopted. General Plan Consistency Finding: As discussed under pertinent sections of the staff report, the proposed project is consistent with applicable goals and policies of the General Plan as subject to the conditions of approval. Project Findings: Upon making the above findings, the Planning Commission approves Use Permit # as submitted. RECOMMENDED CONDITIONS: Conditions which must be met prior to use and/or occupancy and for the duration of this permit: 3. This permit shall be subject to the securing of all necessary permits for the proposed development and eventual use from County, State, and Federal agencies having jurisdiction. Any requirements imposed by an agency having jurisdiction shall be considered a condition of this permit. Necessary permits include, but are not limited to, Building permits issued by the County Department of Planning and Building Services, and Septic and Well permits issued by the County Environmental Health. Written verification by the Division of Building and the Environmental Health Division shall be provided to ensure that all permitting requirements have been satisfied. 4. This entitlement does not become effective or operative and no work shall be commenced under this entitlement until the California Department of Fish and Wildlife filing fees required or authorized by Section of the Fish and Game Code are submitted to the Mendocino County Department of Planning and Building Services. Said fee of $2, shall be made payable to the Mendocino County Clerk and submitted to the Department of Planning and Building Services prior to July 5, If the project is appealed, the payment will be held by the Department of Planning and Building Services until the appeal is decided. Depending on the outcome of the appeal, the payment will either be filed with the County Clerk (if project is approved) or returned to the payer (if project is denied). Failure to pay this fee by the specified deadline shall result in the entitlement becoming null and void. The applicant has the sole responsibility to insure timely compliance with this condition. 5. This permit is subject to the Conditions of Approval for a General Winery Permit as administered by the Regional Water Quality Control Board North Coast Region. The applicant shall comply with all requirements for obtaining a General Winery Permit or a General Winery Permit Waiver prior to the winery building permit final inspection. Written verification by the Regional Water Quality Control Board North Coast Region shall be provided to ensure that all permitting requirements have been satisfied. 6. Prior to the winery building permit final inspection or prior to commencing any event on the property, whichever occurs first, the applicant shall complete required driveway and drainage improvements within the Caltrans right-of-way in accordance with an encroachment permit issued by Caltrans. Written verification by Caltrans shall be provided to ensure that all permitting requirements have been satisfied. 7. Prior to the issuance of a building permit for the winery, a fully dimensioned parking plan shall be prepared and submitted to the Department of Planning and Building Services for approval, which shows adequate area for both parking and circulation movements for the proposed winery operation and tasting room. A minimum of 20 parking spaces, including 1 ADA accessible parking spaces as required pursuant to Section of the Mendocino County Inland Zoning Code, shall be provided. 8. Winery Operations and Tasting Room Hours shall be limited from 10 AM to 5 PM daily.

6 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC Up to 10 private events per year may be held within the approximately 80,000-square-foot event area as shown and described on the March 27, 2013 site plan. Each event shall be limited to a maximum attendance of 100 people with hours limited to between 10 AM to 10 PM daily. Lighting for private events shall be downcast and shielded, and shall be limited in illumination power to only the amount required for nighttime navigation and safety of the immediate area surrounding the event area. 10. Prior to commencing any event on the property, a dimensioned parking plan shall be prepared, and submitted to the Department of Planning and Building Services for approval, which provides adequate area for both parking and circulation movements for the proposed event area. The number of total parking spaces required shall be 44 based on a maximum attendance of 100 people, a vehicle occupancy rate of 2.3 persons per vehicle. 11. During events, winery and tasting operations shall be closed to the public and related 20 parking spaces shall be available for event use. 12. The parking area for events shall be limited to only the areas surrounding the driveway area leading to the event area and the 20 parking spaces located at the winery building and tasting room, as shown on the March 27, 2013 site plan. 13. There shall be no event parking along State Highway 128, Guntley Road, or along the winery building and tasting room driveway or entrance. Failure to comply with this condition may lead to a revocation of the Use Permit. 14. Mitigation Measure Noi-1 Special Events The project would be conditioned to require that any amplified music not to be played at a level that exceeds 55dBA at the property lines of the subject parcel and that amplified music is not permitted after 10 PM. 15. Mitigation Measure AES-1: Removal of Vegetation There shall be no removal of any vegetation along State Highway 128 other then for maintenance or safety purposes as apart of the proposed project. 16. The project is subject to the requirements of Regulation 1, Rule 492 (National Emission Standards for Hazardous Air Pollutants), of the Mendocino County Air Quality Management District. The applicant is required by Part 61 Chapter 1, Title 40, of the Code of Federal Register, to submit proof of asbestos inspection to the District prior to a Demolition/Renovation Permit being issued and to properly notify the District prior to removal of asbestos containing material and payment of any fees if applicable. Written clearance form the Air Quality Management District shall be submitted to the Department of Planning and Building Services that this requirement has been met. 17. This permit shall become effective after all applicable appeal periods have been expired or appeal processes exhausted. Failure of the applicant to make use of this permit within one year of Planning Commission approval shall result in the automatic expiration of this permit. In the event that the use of the facility should cease operation for a period exceeding one year or more, the use shall be deemed invalid and a new permit will be required for the operation as approved by #U Any stationary onsite internal combustion engines over 50 horsepower (i.e. large power generator or pumps) may require a permit from the District, depending on fuel source and level of operation depending on fuel type and level of operation. Engines less than 50 horsepower are subject to registration by the District for emissions inventory purposes.

7 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC In the event that archaeological resources are encountered during construction activities at the site, work in the immediate vicinity of the find shall be halted until all requirements of Chapter of the Mendocino County Code relating to archaeological discoveries have been satisfied. 20. The applicant shall grant access to the property during hours of operation to permit County representatives or any consultants hired by the County for inspection, enforcement, or monitoring activities deemed desirable by the County. The applicant shall designate an individual who is to be available at all times for purposes of supplying information deemed necessary by the authorized County representatives in connection with such work during working hours. 21. This permit is issued without legal determination having been made upon the number, size or shape of parcels encompassed within the permit described boundaries. Should, at any time, a legal determination be made that the number, size, or shape within the permit described boundaries are different that that which is legally required by this permit, this permit shall become null and void. 22. This permit shall be subject to revocation or modification by the Planning Commission upon a finding on any one (1) or more of the following grounds: a. The permit was obtained or extended by fraud. b. One or more of the conditions upon which the permit was granted have been violated. c. The use for which the permit was granted is so conducted as to detrimental to the public health, welfare, or safety, or as to a nuisance. Any such revocation shall proceed as specified in Title 20 of the Mendocino County Code. 23. The applications along with supplemental exhibits are related materials are to be considered elements of this entitlement and compliance therewith mandatory, unless a modification has been approved by the Planning Commission. DATE MATTHEW KELLEY PLANNER II 5/21/2013 Appeal Fee - $ Appeal Period - 10 days

8 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 8 Exhibit A - Location Map

9 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 9 Exhibit B - Zoning Map

10 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 10 Exhibit C - General Plan Map

11 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 11 Exhibit D - Proposed Site Plan

12 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 12 Exhibit E - Overall Proposed Site Plan

13 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 13 Exhibit F - Proposed Winery Floor Plan Exhibit G - Proposed Winery Floor Plan

14 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 14 Exhibit H - Proposed Winery Elevation Exhibit I - Proposed Winery Elevation

15 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 15 Exhibit J Aerial of Subject Parcel

16 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 16 Exhibit K - Proposed Uses

17 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 17 Exhibit L - Overall Aerial

18 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 18 Exhibit M - Adjacent Wineries

19 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 19 Exhibit N - Topographic Map

20 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 20 Exhibit O - Fire Hazard Map

21 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 21 Exhibit P - Williamson Act

22 STAFF REPORT FOR MAJOR LAND USE PERMIT # U Page PC - 22 Exhibit Q Parcel Map MD 63-72

23 MENDOCINO COUNTY ENVIRONMENTAL REVIEW GUIDELINES INITIAL STUDY 1. Project Title: Lula Cellars Commercial Sustainable Organic Winery, Case Number # U Lead Agency Name and Address: County of Mendocino Department of Planning and Building Services 120 West Fir Street Fort Bragg, CA Contact Person and Phone Number: Matthew Kelley, Planner II, (707) Project Sponsor s Name and Address: Lula Cellars, LLC. Jeff Hansen P.O. Box 130 Mendocino, CA Project Location: The Project is located at 2800 Guntly Road in the Philo area of Mendocino County. The parcel is approximately 5.6 miles northwest of Philo and approximately 2.5 miles southeast of Navarro, on the north side of State Highway 128, at its intersection with Guntly Road (private road). The parcel has an Assessor s Parcel Number of & Jim Ronco Consulting Jim Ronco 700 E. Gobbi St. #14 Ukiah, CA General Plan Designation: The subject parcel is located within the Remote Residential Twenty Acres Minimum (RMR 20) General Plan Land Use designation. 6. Zoning: The subject parcel is located within the Urban Residential Twenty Acres Minimum (UR 20) Zoning District. 7. Description of Project: The applicant seeks approval of Major Land Use Permit to establish, construct, maintain, and operate a sustainable organic winery, tasting room, and outdoor event area located in the northern end of the Anderson Valley near Philo. The wine tasting area is proposed to be located within a 400- square-foot area of an existing 1,600-square-foot agricultural building as shown on the December 12, 2012 site plan and building floor plan, and revised March 27, 2013 site plan. The applicant proposes to convert the existing agricultural building to contain 400-square-foot tasting area with wine bar and bottle storage area, installation of a public restroom, case and barrel storage area, and associated grape crushing and equipment area. The commercial winery would encompass the crush of grapes, fermentation, aging and bottling, limited to 200 cases of wine per year. During the peak season, the winery would employee three people, with hours of operation from 10 AM to 5 PM daily. Associated uses would also include the planting of a seasonal organic fruit and vegetable garden for on-site sale, the establishment of 2 acre outdoor event area that would be rented for 10 annual entertainment events including private parties and weddings attended by up to 100 people, and the planting of approximately 15 acres of varietal grape vines. Water for the winery would be obtained from an existing agricultural well and existing on-site ½-acre water reservoir. Winery wastewater is proposed to be discarded into a proposed on site septic system, with winery pomace including grape skins, seeds, and stems would be broadcast spread over the vineyard. A total of 20 off-street parking spaces would be provided adjacent to the commercial winery within the existing graveled travel way and parking area. The applicant also proposes to construct two on-site highway signs approximately 64 square feet in size to be installed as shown on the submitted site plans and sign elevations plans. 8. Surrounding Land Uses and Setting: The subject site is located in the northern end of the Anderson Valley viticulture appellation region in the rural area of Mendocino County, on the north side of State Highway 128 at its intersection with Guntly Road. This area can be described as grassland and moderately sloping rolling hills,

24 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 2 with both private and commercial vineyards and wineries combined with private and commercial agricultural uses with single-family residences. Parcels in the area mostly consist of large agricultural properties ranging in size from 5 to several hundred acres. Existing Site Condition: The subject parcel is diagonally rectangular in shape, with a slight curve moving in a southeast direction towards its southern property line, and consists of acres. The parcel is moderately sloped in north-south direction and is bisected by the season headwaters of Floodgate Creek that passes out of the parcel and crosses under State Highway 128 at Post Mile The site is bound on the west side by State Highway 128 and Guntly to the south, with parcels containing single-family residences with private and commercial vineyards and agricultural uses to the north, south, and east. The existing improvements to the site include the followings: 1) A single-family residence which was built in 1972; 2) and a detached agricultural exempted approximately 1,600-square-foot barn that is proposed to be come the commercial winery building. Other existing improvements to the subject parcel include: 1) an approximately acre staked vineyard which has been contoured to the existing topography of the parcel; 2) two existing agricultural wells which serve the vineyard; 2) a domestic well which serves the existing single-family residence; 3) a septic system which services the existing single-family residence; 4) a water conservation system employing drain tiles located in swales within the vineyard that capture excess water runoff during the irrigation process; 5) a private ½ - acre reservoir which serves to collect excess water runoff from the water conservation system which is pumped to the reservoir for water reuse. 9. Other public agencies whose approval is required (e.g., permits, financing, approval or participation agreement: - Building Permit, County of Mendocino Building Division - Septic Permit, County of Mendocino Environmental Health Division - Encroachment Permit, State of California Department of Transportation - General Winery Permit State of California Regional Water Quality Control Board ENVIRONMENTAL CHECKLIST effect on the environment means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project, including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. An economic or social change by itself shall not be considered a significant effect on the environment. A social or economic change related to a physical change, may be considered in determining whether the physical change is significant (CEQA Guidelines, Section 15382). ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially " as indicated by the checklist on the following pages. Aesthetics Agriculture and Forestry Resources Air Quality Biological Resources Cultural Resources Geology /Soils Greenhouse Gas Emissions Hazards & Hazardous Materials Hydrology / Water Quality Land Use / Planning Mineral Resources Noise Population / Housing Public Services Recreation Transportation/Traffic Utilities / Service Systems Mandatory Findings of Significance

25 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 3 On the basis of this initial evaluation: ENVIRONMENTAL DETERMINATION I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Signature Date Matthew Kelley, Planner II County of Mendocino Department of Planning and Building Services

26 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 4 1. AESTHETICS. Would the project: a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? Potentially Less Than with Mitigation Incorporated Less Than No SUMMARY: a) LS: The subject site fronts on the west side of State Highway 128, and on the north side of Guntly Road, a private gravel roadway. The site contains a driveway entrance off of Guntly Road which is approximately 150 east of State Highway 128. This driveway entrance will serve the proposed winery and tasting room. Pursuant to the County of Mendocino General Plan, State Highway 128 is not a scenic route or scenic highway. Improvements include an existing single-family residence that was built in 1972, a detached approximately 1,600-square-foot agricultural exempt barn, and an existing ½-acre private reservoir which serves as an irrigation supply for the proposed vineyard. The western front property line along Highway 128 is heavily planted with various California native species of Oaks, Redwoods, and Elm trees which provide screening along the roadway of the subject site. These trees are documented in a set of photographs taken on February 6, The proposed commercial winery, tasting room, and outdoor event area, installation of two on-site signs, and installation of a new septic system to serve the proposed commercial winery will not significantly impact the visual environment adjoining the Highway 128 corridor and areas surrounding Guntly Road. b) NI: The subject site is not located within a State scenic highway. See discussion under 1(a) Aesthetics above for further information on scenic vistas. c) LSw/MI: The subject approximately acre site is currently used a private single-family residence with the layout and staking of a future vineyard. The proposed project would create a commercial winery, tasting room, and outdoor event area. The tasting room is proposed to be constructed within an existing 1,600-square-foot barn. The height of the existing barn is shown to be approximately 12 feet on the submitted plans. The applicant does not propose to alter the exterior of the barn. Furthermore, the front property line of the subject site is planted with California native Oaks, Redwoods, and Elm trees which provide screening of the barn from both Highway 128 and Guntly Road and from surrounding properties. Implementation of Mitigation Measure Aes-1: Removal of Vegetation would reduce potential impacts to a less than significant level. Mitigation Measure AES-1: Removal of Vegetation The proposed project would be conditioned to not allow the removal of any vegetation which has been planted along State Highway 128 other than for maintenance purposes which has been planted along State Highway 128. Therefore, any impacts on the visual character or quality of the site and its surroundings that may be associated with the proposed project will be less than significant. d) LS: There is no proposal for the addition of lighting, or the construction of structures which would create substantial glare as part of the proposed project. The existing agricultural barn contains existing lighting which is downcast and shielded for security and nighttime navigation of people and equipment. The existing driveway leading up to the barn contains a series of low-voltage solar powered lights which mark the edges of the driveway for nighttime navigation purposes. The existing single-family residence contains existing exterior lighting which is downcast and shielded for nighttime navigation purposes and security. Therefore, any impacts which would create a substantial source of light or glare which that may be associated with the proposed project would be less than significant.

27 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 5 II. AGRICULTURE AND FORESTRY RESOURCES. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to nonagricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non-forest use? e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? Potentially Less Than with Mitigation Incorporated Less Than No SUMMARY: a-b) LS: The April, 2012 County of Mendocino Important Farmland Map by the California Department of Conservation (CDC) designates the subject parcel as Unique Farmland. Unique Farmland is defined by the CDC as lesser quality soils used for the production of the State s leading agricultural crops. This land is usually irrigated, but may include non-irrigated orchards or vineyards as found in some climate zones in California. The parcel is being used as a private vineyard with a single-family residence and agricultural barn. The project proposes to establish and operate a sustainable organic winery, tasting room and outdoor event area. The parcel is zone Upland Residential Twenty Acres Minimum (UR-20), which allows for the establishment of a winery after the issuance of a Major Land Use Permit, pursuant to Section (D) of the Mendocino County Zoning Code. The subject parcel is not currently under a Williamson Act Contract. Therefore, the impact of the proposed land use would be less than significant. c) LS: No rezoning will occur. See discussion under 2(a-b) Agricultural and Forest Resources above. d) NI: The parcel is currently developed and will not result in the loss of forest land. See discussion under 2(a-b) Agricultural and Forest Resources above. e) LS: See discussion under 2(a-b) Agricultural and Forest Resources above.

28 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 6 III. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? Potentially Less Than with Mitigation Incorporated Less Than No SUMMARY: a-e) LS: The Mendocino County Air Quality Management District (MCAQMD) is the responsible agency for maintaining air quality within the California North Coast Air Basin (Basin) within Federal and State quality standards. The MCAQMD is responsible for monitoring ambient air pollutant levels throughout the basin as well as developing and implementing attainment strategies to ensure that future emission are within federal and state standards. The basin is currently designated as an attainment area for carbon monoxide (CO), sulfur dioxide (SO 2 ), nitrogen dioxide (NO 2 ), federal ozone (O 3 ) and is designated as a non-attainment for particulate matter (PM-10) and for fine particulate matter (PM-2.5). For a discussion on ozone and green house gas emissions, please refer to Section 7 Greenhouse Gas Emissions of this Initial Study. Any emission of particulate mater, and fine particulate mater would be substantially related to the construction phase of the project. Due to the relatively small scale of the project, the temporary nature of the construction work, and the absence of substantial amounts of earthwork, such impacts would not by themselves or cumulatively be significant. All construction would be required to follow County of Mendocino guidelines regulating such work. While a small increase in wine production-related odors may result from the crushing of grapes in the production of wine, these odors will not significantly affect adjoining properties or area residents, or other sensitive receptors. All such odors are regulated as agricultural odors which are exempted by Section 41705(a) of the California Health and Safety Code. Therefore, the proposed construction and operation of a commercial sustainable organic winery would be less than significant.

29 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 7 IV. BIOLOGICAL RESOURCES: Would the project: Potentially Less Than with Mitigation Incorporated Less Than Signific ant No a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? SUMMARY: a-c) LS: The approximately acre is substantially developed with a private staked vineyard, single-family residence, detached agricultural exempt barn, graveled driveway and parking area, private ½-acre agriculture reservoir, vineyard water run-off recapture system, and various other improvements. The current projects proposes to establish a commercial organic winery, and 400 square-foot tasting room within an existing approximately 1,600-square-foot detached barn. The only proposed improvement is the installation of a new septic system to serve the tasting room visitors and employees. The actual construction of the septic system and installation will require the digging of soil to accommodate the installation of a 1,200-gallon septic tank, 1,200 gallon pump chamber, and associated leach lines as shown on the submitted septic design site plan, dated received May 9, The proposed septic tank and pump chamber are to be located within an already disturbed and graveled area to the west of the proposed winery building. The septic system is proposed to be located within an area that was previously used for a portion of the private vineyard which is also a disturbed area. A portion of the seasonal headwaters of Floodgate Creek runs south of the proposed winery building and exists the parcel under State Highway 128 d-f) LS: The Mendocino County General Plan, Resource Management Element, identifies Special Plant and Wildlife Habitats, known as Sensitive Habitats. Section 4-9 identifies these areas as the following: Serpentine Soils and Rock Outcrops, Pygmy Forest, Wetlands/Waters of the United States, and Old-Growth Forest. The subject parcel is not located within any of these Sensitive

30 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 8 Habitats. The proposed project does not call for the removal of any protected tree types identified in the General Plan. The subject parcel is not part of any Habitat Conservation Plan (HCP), and the establishment of the commercial organic winery would be fully consistent with the Mendocino County General Plan Resource Management Element Chapter. There are no other adopted HCP, Natural Community Conservation Plan, or other approved local, regional, or state HCP which regulates the project site or adjacent area. V. CULTURAL RESOURCES. Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in ? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to ? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? Potentially Less Than with Mitigation Incorporated Less Than Signific ant No SUMMARY: a) LS: The proposed project does not require the modification or removal of any the existing structures that may be of historical significance. b-d) LS: Two previous Archaeological surveys (dated 1991 & 2003) cover 100 percent of the project areas were previously conducted. The California Historical Resources Information System (CHRIS) had identified the property has not having the possibility of containing unrecorded archaeological sites. CHRIS indicated that no additional studies were recommended. The project was also referred to the County of Mendocino Archaeological Commission and they held a hearing on April 10, The Commission agreed that no further archaeological studies are required for the proposed project. Thus, the impacts to Cultural Resources will be less than significant. VI. GEOLOGY AND SOILS. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is Potentially Less Than with Mitigation Incorporated Less Than Signific ant No

31 INITIAL STUDY ENVIRONMENTAL CHECKLIST PAGE 9 unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? SUMMARY: a) LS: Pursuant to California Geological and the California Division of Mines and Geology, and Figure 3-12 of the Mendocino County General Plan Mapped Seismic Faults, there are no known earthquake faults within the vicinity of the project area. Any potential ground shaking would be associated with the construction phase of the installation of the proposed septic system which would serve the winery building, and would only be temporary in nature. Figure 3-12 (Mapped Seismic Faults) of the Mendocino County General Plan indicates that the subject parcel is not located in a known area of soil liquefaction. Any potential ground shaking would be associated with the construction phase of the installation of the proposed septic system which would serve the winery building, and would only be temporary in nature. b) LS: There will not be a significant loss of topsoil resulting from the construction and operation of the proposed commercial winery. The proposed septic system installation is subject to review and approval by the Environmental Health Division. Once the septic installation is complete these areas would be properly covered according to the requirements of the Environmental Health Division. c) LS: According to the Development Chapter of the Mendocino County General Plan, the subject site does not present the known potential for landslides. d) LS: The 1999 Soil Survey of Mendocino County, California classifies the subject parcel soils as Bearwallow-Wolfey complex soil type. This soil type is described, in part as follows: This unit is on convex ridges and foot slopes of hills and mountains. The vegetation is mainly annual grasses and forbs. Elevation ranges from 300 to 2,500 feet. The average annual precipitation is 45 to 60 inches, the average annual air temperature is about 57 degrees F, and the average frost-free period is days. This unit is about 55 percent Bearwallow loam and 30 percent Wolfey loam. The Bearwallow and Woilfey soils occur as areas so intricately intermingled that it was not practical to map them separately at the scale used. This unit is used for livestock grazing, wine grape production, or wildlife habitat. The main limitations affecting wine grape production are the slope, the hazard of erosion, and the shallow depth to soft sandstone in the Wolfey soil. Contour farming and use of cover crops to help to control erosion. Managing cover crops by mowing instead of tillage helps to control erosion and reduces energy consumption. Irrigation may be needed if grapes to be established. Sprinkler and drip irrigation methods are suitable for vineyards in areas of this unit. These methods permit the even, controlled application of water, minimize runoff, and reduce the hazard of erosion. The capability classification is IVe-1(15), non-irrigated.