NOTICE OF EXEMPTION

TO:

[g]

FROM: (Public Agency) Fallbrook Public Utility District Office of Planning and Research

P. 0. Box 3044, Room 113 Sacramento, CA 95812-3044

[g] ---C-le_r_k_o_f_th_e-'-B- o_ar_d_o_f_S_u_p-erv- is_o_r-s,-o-r-----1--A_d_dr- es_s _________ _

County Clerk 990 E. Mission Road, Fallbrook, CA 92028 1600 Pacific Highway, Suite 260, MS: A-33, San Diego, CA 92101 County of San Diego

Project Title:

Project Applicant:

Project Location-Specific:

j Memorandum of Understanding for Planning Process and I General Terms for Consideration of the Annexation of J Rainbow Municipal Water District and Fallbrook Public J Utility District into Eastern Municipal Water District for I Wholesale Imported Water Service {MOU) i

I Fallbrook Public Utility District ! ____ _ ! Fallbrook Public Utility District provides retail water i service in its area of service located within San Diego i County California, as depicted on Exhibit A. l

Project Location-County: i Fallbrook Public Utility District's service area includes 44 p . L . C . i square miles in the Fallbrook community Fallbrook Public

roJect ocatlon- ounty. I Utility District's service area is located in the County of

I ~ San Diego . . . . . . Description of nature purpose and beneficiaries of Fallbrook Pubhc Ut1hty D1stnct (Fallbrook) and Rambow

Project: ' ' Municipal Water District (Rainbow) provide retail water

Ernest J Dronenb~rg, Jr. Recorder County Clerk

SEP 2 3 2019 K.Bao BY ______ _

Notice of Exemption 09957 .00000\32294073 .1

DEPUTY

service in their respective services areas, located within the ! County of San Diego. Fallbrook and Rainbow are i wholesale water customers of the San Diego County Water i Authority (San Diego CWA). Fallbrook and Rainbow are 1 contemplating detachment/exclusion from San Diego CW A

and have initiated discussions with Eastern Municipal Water District (Eastern) regarding the potential opportunity for annexation to Eastern.

, Eastern and San Diego CW A acquire imported water from i the Metropolitan Water District of Southern California I (Metropolitan) and make imported water supplies, and other i water supplies, available on a wholesale basis to retail water l agencies within their respective service areas.

Annexation to Eastern would allow Fallbrook and Rainbow to directly receive water deliveries from Metropolitan, in lieu of water supplies currently provided to them by San Diego CWA.

1 The MOU would allow Fallbrook, Rainbow and Eastern to ! work cooperatively to explore, analyze, plan and consider i the annexation opportunity. The purpose of the MOU is to ·1' formalize the mutual understandings between Fallbrook,

Rainbow and Eastern for the exploration, planning and J consideration ofFallbrook and Rainbow's potential 1 annexation to Eastern for the receipt of wholesale water i deliveries.

I FORM "B"

r:;ame of PubHc Agenc-y- ap_p_r_o-vm-. _g_p_ro_~_ec_t_:-------l;-F_a_l_lb_r_o_ok- --------------------4 I

Name of Person or Agency undertaking the project, including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity:

Exempt status: (check one)

D Ministerial project.

Not a project.

D Emergency Project.

~ Categorical Exemption.

State type and section number:

D Declared Emergency.

D Statutory Exemption.

State Code section number:

~ Other. Explanation:

Reason why project is exempt:

Notice of Exemption 09957.00000IJ2294073.l

Fallbrook

Rainbow and Eastern are also parties to the MOU

Pub. Res. Code§ 21080(b)(l); State CEQA Guidelines§- -15268

State CEQA Guidelines§ 15378

Pub. Res. Code§ 21080(b)(4); State CEQA Guidelines § 15269(b)

State CEQA Guidelines§ 15320 (changes in organization of local agencies)

Pub. Res. Code§ 21080(b)(3); State CEQA Guidelines§ 15269(a)

-State CEQA Guidelines§ 1506l(b)(3)

i The MOU is not a "project" subject to CEQA I J The MOU is not a "project" as CEQA defines that term. J An activity is a "project" subject to CEQA only if it has the I potential to result m eitlre,c a drrect physical change to the

environment or a reasonably foreseeable indirect change to the environment. (Public Resources Code§ 21065; State

I CEQA Guidelines§ 15378). The MOU has no such

1 potential.

I

I First, the MOU does not authorize Fallbrook to take any I action that would cause any direct or reasonably foreseeable I indirect change in the environment. The MOU simply ! provides a framework for Fallbrook, Rainbow and Eastern i to engage in discussions regarding potential annexation to 1 Eastern. The MOU does not effectuate or implement either

detachment from San Diego CW A or annexation to Eastern.

Second, Fallbrook's Board of Directors has not made a decision to detach from San Diego CW A and pursue annexation to Eastern, and the MOU does not constitute

: such a decision. The MOU does not commit Fallbrook to i pursue detachment/exclusion from San Diego CW A or 1 pursue annexation to Eastern. Indeed, the MOU does not

commit Fallbrook to take any action that would have a physical impact on the environment. Rather, the MOU provides parameters for Fallbrook, Rainbow and Eastern to

! discuss possible future annexation to Eastern.

i Third, the MOU states that CEQA compliance would be required for any activities that are implemented in the future. Thus, ifFallbrook's Board of Directors decides in

FORM "B"

Notice of Exemption 0995 7 .00000\32294073. I

the future to pursue detachment/exclusion from San Diego CW A and pursue annexation to Eastern, Fallbrook will comply with any applicable CEQA requirements at that time. It is premature and speculative to conduct CEQA review before that decision has been made.

Fourth, the MOU states that if the Fallbrook Board of Directors decides to pursue detachment/exclusion from San Diego CW A and to pursue annexation to Eastern, the "obligations, commitments, and responsibilities" of Fallbrook and Eastern would be "defined through a subsequent agreement for implementation." The specific terms of that potential future agreement are currently I unknown, and as such, CEQA review at this point would be

I premature and speculative. I I Even if the MOU is a "project," it is exempt

I Even if the MOU is deemed to be a project within CEQA's ! meaning, the MOU is exempt under the catch-all "common i sense" exemption (State CEQA Guidelines§ 1506l(b)(3)) i and the categorical "change in organization" exemption 1 (State CEQA Guidelines§ 15320).

Common sense exemption: The common sense exemption applies when it can be seen with certainty that there is no possibility that the project may have a significant

i effect on the environment. Here, there is no possibility that i the MOU might have any significant effect on the i environment for the following reasons:

I 1. As explained above, the MOU provides a framework for discussions and does not authorize or commit Fallbrook to detach from San Diego CW A or seek annexation to Eastern. The MOU does not authorize or commit Fallbrook to take any action that would cause a physical change to the environment, either directly or indirectly.

! 2. The MOU does not change any existing water i allocations, alter the amount of water that Fallbrook (or i Rainbow) will receive, or make any change to the source of j Fallbrook's (or Rainbow's) water supplies.

I 3. The MOU does not create new water management I measures, authorize construction of any new facilities, or i authorize modification of any existing facilities. I I 4. The MOU authorizes discussions between Fallbrook, ! Rainbow and Eastern regarding potential annexation and i does not modify any existing physical conditions. I i Change in organization exemption: The change in I organization exemption applies to "changes in the 1 organization or reorganizations of local governmental

agencies where the changes do not change the geographical area in which" the agency exercises its existing powers.

Here, as explained above, the MOU does not constitute a ! decision by Fallbrook to pursue detachment/exclusion from I San Diego CW A and pursue annexation to Eastern, nor ! does it commit Fallbrook to detachment/exclusion and I

annexation, nor does it effectuate detachment/exclusion and annexation. Instead, it authorizes Fallbrook to discuss possible annexation with Rainbow and Eastern. Such

I discussions do not change the organization ofFallbrook or

FORM "B"

Lead Agency Contact Person:

Telephone:

Date Received for Filing: --------­

(Clerk Stamp Here)

reorganize Fallbrook.

But assuming solely for argument's sake that the discussions somehow constitute a change in organization or a reorganization, the exemption would apply because the MOU does not change to the geographical area in which Fallbrook exercises its existing powers.

Exceptions to exemptions do not apply

Finally, substantial evidence in the record, including the evidence discussed above, demonstrates that none of the exceptions identified in CEQA Guidelines§ 15300.2, which prohibit the use of an exemption, apply here. The MOU does not present any unusual circumstances that would create a significant effect on the environment. Further, the MOU would not create cumulative impacts, damage scenic resources, be utilized on a hazardous waste site, or impact any historic resources.

Jack Bebee, General Manager

(760) 728-1125

Date: g/2J/20fi

Authority cited: Sections 21065, Public Resources Code; CEQA Guidelines Sections 15061, 15268, 15269, 15320, and 15378. Reference: Sections 21080, 21084, 21152, and 21152.1, Public Resources Code.

Notice of Exemption 09957.00000\32294073.l

FILED IN THE OFFICE O!= THE COUNT! CL~RK SEP 2 3 2019 San Diego County on. _________ _

Posted SEP. 2 3 2019 RIIIOVtd OCT 2 5 2019

Oepu:1 __ ~~ Retumedto~~ 'OCT 15 1019

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FORM "B"

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