First the questions.
So what to do first?
Start by making a scaled base map of the area as it is now with accurate elevations of the terrain.
Should I start with the creek bed, steps, or terracing? If terracing or steps, most of what I have read says to start at the bottom of the slope, …
Start with the base map. When you get to construction, structural elements that are connected should be built from the bottom up. Where they are not connected you may have a choice which to do first. Be careful you do not build one part and block access to get materials and equipment to another part. That’s just one of the reasons to have a detailed plan of the entire project before starting construction. Once the plan is finished, it will suggest an orderly progression of construction.
Your description of the backyard indicates a moderate slope of 7 to 10%. Slopes in this range are adaptable to DIY. Where the soil is a dense clay, even moderate slopes can have erosion problems due to the difficulty of establishing a grass cover. In areas that get sufficient sunlight, a permanent and healthy lawn can be had by working in bands starting at the top of the slope and establishing the grass going downward on the slope. I suggest a band width of no more that 10ft on 10% slopes and 20ft on 5% slopes. Amend the clay with sand to create a permeable soil mix of at least 6 inch depth. On a dense clay this can mean 3 inches of added sand mixed with the top 3 inches of native clay. Do not use organics in the amendment!
On moderate slopes, flat areas can be created in the landscape with low retaining walls. Many homeowners are capable of constructing walls up to 3 ft in height, but it does involve some hard labor.
Erosion abatement of tree-shaded areas of 10% slope require site specific treatment. There is no general solution.
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