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RES-2013-072RESOLUTION NO, 2013- 072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ADOPTING ADDENDUM NO.1 TO THE MITIGATED NEGATIVE DECLARATION FOR THE WATER DEMONSTRATION PROJECT. WHEREAS, on January 26, 2010, the City Council of the City of Anaheim adopted a Mitigated Negative Declaration ( "MND ") pursuant to the California Environmental Quality Act ( "CEQA ") (Public Resources Code, § 21000 et seq.) and the California Code of Regulations, title 14, section 15000 et seq. ( "State CEQA Guidelines ") addressing the potential environmental impacts associated with the Water Recycling Demonstration Project ( "Project "); and WHEREAS, subsequent to the adoption of the MND and the approval of the Project, minor modifications to the Project became necessary; and WHEREAS, those modifications were not addressed in the MND, and consist of: minor technical changes related to funding from the Metropolitan Water District; and WHEREAS, the City of Anaheim, as lead agency, has prepared an Addendum (attached hereto as Exhibit A) to the MND for the Project to evaluate the potential environmental impacts that could result from modifying the Project; and WHEREAS, the Addendum to the MND was prepared pursuant to the requirements of State CEQA Guidelines Section 15164; and WHEREAS, the City Council of the City of Anaheim has carefully reviewed the Addendum, as well as all of the information contained in the record for the proposed project, and all other legal prerequisites to the adoption of this Resolution have occurred; and WHEREAS, Section 15164 of the State CEQA Guidelines requires the City Council of the City of Anaheim to make one or more of the following findings prior to approval and adoption of the Addendum: Finding 1 . Minor technical changes or additions to the original project are necessary; Finding 2 . None of the following conditions described in Section 15162 of the State CEQA Guidelines calling for preparation of a subsequent negative declaration have occurred: A. Substantial changes are proposed in the project requiring major revisions of a previous Mitigated Negative Declaration due to the identification of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; B. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or C. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous Mitigated Negative Declaration was adopted, shows any of the following: (1) The project will have one or more significant effects not discussed in the previous Mitigated Negative Declaration; (2) Significant effects previously examined will be substantially more severe than shown in the previous Mitigated Negative Declaration; (3) Mitigation measures or alternatives previously found not be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (4) Mitigation measures or alternatives which are considerably different from those analyzed in the previous Mitigated Negative Declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. The Recitals set forth above are incorporated herein and made an operative part of this Resolution. 2. As the decision - making body for the Project, the City Council of the City of Anaheim has reviewed and considered the information contained in the Addendum and related administrative record. The City Council of the City of Anaheim finds that the Addendum contains a complete and accurate reporting of the environmental impacts associated with the proposed changes to the Project. The City Council of the City of Anaheim further finds that the Addendum has been completed in compliance with CEQA and the State CEQA Guidelines. 3. The City Council of the City of Anaheim finds that only minor technical changes or additions to the Project are necessary and that none of the conditions set forth in State CEQA Guidelines Section 15162 requiring a subsequent mitigated negative declaration have occurred. 4. The Addendum prepared for the Project reflects the independent judgment and analysis of the City of Anaheim. 5. On the basis of the whole record before it, the City Council of the City of Anaheim finds that all environmental impacts of the Project with mitigation measures incorporated are found to be below a level of significance. There is no substantial evidence in the record as a whole supporting a fair argument that the Project will have a potentially significant effect on the environment. 6. The City Council of the City of Anaheim hereby approves and adopts the Addendum to the MND prepared for the Project. 7. The City Council of the City of Anaheim directs staff to file a Notice of Determination with the County of Orange within five working days of the adoption of this Resolution. 8. A copy of the Addendum, the MND, the Initial Study, the Mitigation Monitoring and Reporting Program, and all other materials constituting the record of proceedings are located at: 201 S. Anaheim Boulevard, CA 92805. The Custodian of Records is Public Utilities Department of the City of Anaheim. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 28th Day of May , 2013, by the following vote: AYES: Mayor Tait, Council Members Eastman, Murray, Brandman and Kring NOES: None ABSTAIN: None ABSENT: None MAYOR OF THE cfry OF ANAHEIM ATTES CITY CLERK 86596 EXHIBIT "A" ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION FOR THE WATER RECYCLING DEMONSTRATION PROJECT Prepared by CITY OF ANAHEIM PUBLIC UTILTIES DEPARTMENT 201 S. ANAHEIM BOULEVARD, SUITE 601 ANAHEIM, CA 92605 1. Introduction: On January 26, 2010, the Anaheim City Council adopted a Mitigated Negative Declaration (MND) and Mitigation Monitoring Plan No. 1 for the Water Recycling Demonstration Project (WRDP). The Initial Study and Mitigated Negative Declaration evaluated the impacts of the proposed water recycling facility (WRF). The WRF is a 2,000 square foot enclosed facility that utilizes an ultrafiltration membrane system that turns wastewater into a product that can be used for landscape irrigation and in toilet flushing. The project also includes the installation of a pump station at the Lemon Street trunk sewer. The project's first phase will result in 50,000 gallons per day (gpd) and later phases of the project will result in the production of 100,000 gpd of recycled water. The project will serve as a demonstration facility that exhibits water conservation through water recycling. A copy of the document is contained in the project file on record with the City of Anaheim Public Utilities Department. 2. Project Modification Description: Since the approval of the original project (as described in Section 1 of this addendum), a minor project modification has occurred that needs to be addressed within the context of CEQA and the State CEQA Guidelines. The City of Anaheim is proposing to obtain financial assistance for the approved project through the Local Resources Program (LRP) that is administered by The Metropolitan Water District of Southern California (Metropolitan). The LRP provides a funding mechanism to member agencies to encourage local development of recycled water and recovered groundwater. This funding mechanism emphasizes cost - efficiency to Metropolitan, while timing new production according to regional water supply needs. Metropolitan provides assistance of up to $250 per acre -foot of production to its partners within Metropolitan's service area for agreement terms up to 25 years. A competitive Request for Proposal process is conducted periodically, dependent on the need to meet the targets established in the Integrated Resources Plan (IRP)'. Metropolitan's Integrated Resource Plan (IRP) identifies goals for a diverse mix of local and imported water resource elements optimized to meet future supply reliability in a cost - effective manner. The IRP sets initial targets for resource development that the region must achieve for water supply reliability through the year 2020. IRP studies show reduced long -term costs to the region when local resources are developed due to downsizing or deferral of Metropolitan's capital improvements, reduction in operating costs for importation, treatment and distribution, and reduction in costs for developing alternative regional supplies. These benefits are realized by all Metropolitan member agencies through improved regional water supply reliability. Key objectives of the LRP are to: 1. Reduce future demand on Metropolitan's imported water supplies through direct replacement of potable water; 2. Assist local projects that improve regional water supply reliability; and 3. Meet periodically updated IRP local resource targets. As part of a consortium of agencies participating in the LRP process, the City of Anaheim is proposing to partner with Metropolitan ( "proposed project modification ") in conjunction with the WRDP. As the Lead Agency, the City of Anaheim has prepared this addendum to the previously adopted Mitigated Negative Declaration in support of its discretionary action to comply with CEQA and the State CEQA Guidelines. For this proposed project modification, Metropolitan will act as a Responsible Agency. 3. Minor Technical Additions: Since partnering in the original project would require a discretionary action by the Lead Agency's decision making body, it is necessary to clarify the text in the Mitigated Negative Declaration as originally prepared by the Lead Agency. This addendum has been prepared to address this minor change in the Utility and Service Systems (Water) section of the Mitigated Negative Declaration. In light of the foregoing discussion in the project description, starting on page 4 -57, in section 4.17, Utilities and Service Systems in the Mitigated Negative Declaration, after the text under the discussion "Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new expanded entitlements needed ?" the following text is hereby added: On September 29, 2010, the City of Anaheim submitted the proposal on the WRDP to Metropolitan. As the Responsible Agency, Metropolitan's Board of Directors will review and consider the proposal and environmental documentation prepared by the City of Anaheim in determining whether or not to approve financial assistance for the project within the Local Resources Program (LRP) administrative process. The proposed project modification (i.e., a partnership with Metropolitan in the LRP for the WRDP) would be consistent with Metropolitan's commitment to develop LRP activities that would increase water supply reliability. The proposed project modification would have up to a 25 -year term as negotiated between the Lead Agency and Metropolitan. This minor technical change and further clarification to the original project does not affect water supplies or water quality within the Lead Agency's service area. Instead, the proposed project modification is an administrative and fiscal action. For Metropolitan, the proposed project modification would be beneficial in terms of being consistent with the objectives of the LRP. Accordingly, this activity would not result in a tangible change in the physical environment. Therefore, no impact to utility and service systems would result from the implementation of the proposed project modification. 2 4. Basis for Preparation of Addendum: Section 15164(b) of the State CEQA Guidelines states "An addendum to an adopted negative declaration may be prepared if only minor technical changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred." As the Lead Agency for the proposed project modification, the City of Anaheim is issuing this addendum in accordance with the State CEQA Guidelines (Section15164). The proposed modification to the original project would not result in a tangible change to the physical environment, therefore, the minor textual additions provided herein are not considered to: 1) constitute a substantial change in the project as originally proposed by the City of Anaheim, 2) lead to substantial changes in the circumstances under which the project is undertaken, or 3) constitute new information of substantial importance. Accordingly, an addendum was prepared as opposed to a negative declaration or a subsequent environmental impact report. Signature Date Printed Name Title 3