Re: Riparian Areas Regulation Assessment for the Phase II Strand Lake Resort Property

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February 20, 2006 Reference: 800-284.4 Mr. David Murphy S.L. Resort Management Corporation Suite 230 5824 2 nd Street SW Calgary, Alberta T2H 0H2 Via e-mail: dmurphy@foxbridgedevelopment.com Dear Mr. Murphy: Re: Riparian Areas Regulation Assessment for the Phase II Strand Lake Resort Property Summit Environmental Consultants Ltd. (Summit) is pleased to provide a letter report to summarize the Riparian Areas Assessment (RAR) conducted on the Phase II Strand Lakeside Resort property. The detailed RAR assessment was conducted by Ms. Rebekka Lindskoog, R.P.Bio. and Ms. Carrie Williamson, B.I.T. on February 3, 2006. In addition, observations from a reconnaissance visit conducted by Mr. Allen Hanson, R.P.Bio. of Summit in August 2005, were considered (i.e., during the growing season). Baseline Environment The Phase II development property is located northwest of the intersection of Lakeshore Road and Okanagan Landing Road and is fronted by Okanagan Lake. The property contains a wetland in the northwest half of the property which is fed by a stream flowing north from Okanagan Landing Road and a ditch flowing west from Lakeshore Road. The wetland is drained from the north end via a stream which flows into Okanagan Lake (Figure 1). The stream feeding and draining the wetland will be termed the stream in this assessment. As there are no fish barriers present, all waterbodies addressed in this letter are considered fishbearing or potentially fish-bearing. Twenty-five fish species have been documented in Okanagan Lake (see Attachment 1) of which six are salmonid species. Riparian vegetation along the shoreline of Okanagan Lake includes native species such as willow, cottonwood, rose, saskatoon, Douglas maple and equisetum (horsetail), as well as nonnative species such as Canada thistle. Riparian vegetation surrounding the wetland, the stream and the ditch, consists largely of cattails, rose, saskatoon and a few willows. A detailed map of

20-Feb-2006 Page 2 the vegetation on the property is provided in Figure 1 and a complete list of the plant species observed during the reconnaissance and the RAR assessment is provided in Attachment 2. The width of riparian vegetation (i.e., trees and shrubs along the shoreline) on the property is variable (5 m to 25 m) with 15 m being the average width from the natural boundary. Most of the large trees present are willows and black cottonwoods with average dbh (diameter at breast height) measurements of 1.0 m and maximum heights ranging from 20 m to 30 m. There is also a grove of mature cottonwood trees near the eastern boundary of the property (approximately 1330 m 2 ). RAR Methodology The riparian assessment was based on the assessment methods outlined in the new Riparian Areas Regulation (RAR) of the Fish Protection Act. As of this date, the City of Vernon has not adopted the RAR assessment methods; however, these methods will come into effect March 31, 2006, and will be used by Qualified Environmental Professionals (QEPs) to determine setbacks for all lakeside or creekside developments within the City of Vernon. Any development within the setback (termed the streamside protection and enhancement area or SPEA width in the RAR methods) must apply for a variance from Fisheries and Oceans Canada (DFO). The RAR assessment method determines the setback by assessing three zones of sensitivity (ZOSs) for the features, functions and conditions of the riparian area, which are: Large woody debris (LWD), bank and channel stability; Shade; and Litter fall and insect drop. In order to determine the setback, the following steps were completed: Determined the type of potential vegetation within the property. Under the RAR assessment methods, the default Site Potential Vegetation Type (SPVT) is deciduous or coniferous tree (TR) with a Site Potential Vegetation Height (SPVH) of 30 m. As mature deciduous trees (willow and cottonwood) are currently growing along Okanagan Lake and throughout the property, this default is appropriate; Determined the channel morphological type through visual observation; Determined the average channel width. This was accomplished by measuring the width of the stream and the west flowing ditch, at the top of bank. The average channel width for each was then calculated; Determined the orientation of the shoreline, the stream and the ditch using aerial photographs; and Calculated the setback using the above information and the RAR assessment methods (MOE, 2005). Results The results are summarized in Table 1. The average channel width was 4 m for the stream and 2 m for the ditch. The ditch as shown on Figure 1 has been defined using the characteristics provided in the RAR assessment methods (MOE, 2005).

20-Feb-2006 Page 3 Table 1. Width of Zones of Sensitivity. Zone of Sensitivity LWD, bank and channel stability Stream (Flows S-N) Ditch (Flows E-W) 12 m from top of bank 5 m Shade 12 m due south 5 m due south Litter fall and insect drop 12 m from top of bank 5 m Final Setback 12 m 5 m Lake/Wetland 15 m from HWM 30 m due south from HWM 15m from HWM Defaults to the widest ZOS, from 15 m to 30 m. Summary The RAR assessment provides the setback required to protect riparian areas. The applicable setback for the property ranges from 5 to 30 m and is illustrated on Figure 1. Any development within the setback must apply for a variance from DFO; therefore, this setback should be considered during the design phase of the resort development on the property. In addition to this assessment, a detailed environmental impact assessment should also be conducted to determine potential impacts and recommend mitigation measures for the protection of wildlife (specifically the rare and endangered species on the property). Finally, an environmental management plan and a stormwater management plan should be prepared and implemented to minimize impacts during construction of the resort. We trust this completes our assignment to your satisfaction. Please call if you have any questions. Yours truly, Summit Environmental Consultants Ltd. Rebekka Lindskoog, B.Sc., R.P.Bio. Biologist Attachments: Attachment 1 Fish species known to inhabit Okanagan Lake. Attachment 2 Plant species identified in the subject property. Figure 1

20-Feb-2006 Page 4 References: BC Fisheries and Fisheries and Oceans Canada. 2005. Fish Wizard website. http://pisces.env.gov.bc.ca/ Ministry of Environment (MOE). 2005. Environmental Stewardship Division. Riparian Areas Regulation Website. http://www.env.gov.bc.ca/habitat/fish_protection_act/riparian/ riparian_areas.html (methods update from the Participant s Manual. Malaspina University College. October 2005.)

Attachment 1 Fish species known to inhabit Okanagan Lake. Scientific Name Common Name Oncorhynchus mykiss Steelhead * Oncorhynchus clarki Cutthroat trout * Oncorhynchus nerka Kokanee * Salvelinus fontinalis Brook trout * Oncorhynchus mykiss Rainbow trout * Salvelinus namaycush Lake trout * Lota lota Burbot Ciprinus carpio ssp. Carp Perca flavescens Yellow perch Acrocheilus alutaceus Chiselmouth Rhinichthys spp. Dace Rhinichthys falcatus Leopard Dace Rhinichthys cataractae Longnose Dace Prosopium williamsoni Mountain Whitefish Coregonus clupeaformis Lake Whitefish Prosopium coulteri Pygmy Whitefish Ptycheilus oregonensis Northern Pikeminnow Catostomus spp. Sucker Catostomus catostomus Longnose sucker Catostomus macrocheilus Largescale sucker Mylocheilus caurinus Peamouth chub Lepomis gibbosus Pumpkinseed Cottus asper Prickly sculpin Cottus cognatus Slimy sculpin Richardsonius balteatus Redside shiner Source: Fisheries BC and DFO, 2005 * salmonids

Attachment 2 Plant species identified in the subject property. Common Name Scientific Name Alder Black Cottonwood Boxelder Bull Thistle Canada thistle Cattail Common Duckweed Common Snowberry Common Toadflax Douglas Fir Douglas Maple European Bittersweet Field Mint Great Bullrush Great Burdock Great Mullien Horsetail Northern Black Currant PacificWillow Pondweed Red Osier Dogwood Reed Canary Grass Rose Saskatoon Scouring Rush Sedge Stinging Nettle Weeping Willow Whorled Water Milfoil Willow Alnus sp. Populus tricocarpa Acer negundo Cirsium vulgare Cirsium arvense Typha latifolia Lemna minor Symphoricarpos albus Linaria vulgaris Pseudotsuga menziesii Acer glabrum Solanum dulcamara Mentha arvensis Scirpus lacustris Arctium lappa Verbascum thapsus Equisetum spp. Ribes hudsonianum Saix lucida Potamogeton spp. Cornus stolonifera Phalaris aruninacea Rosa spp. Amelanchier alnifolia Equisetum hyemale Carex sp. Urtica dioica Salix babylonica Myriophyllum verticillatum Salix sp.