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REPORT/RECOM MEN DATION TO THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, CALIFORNIAAND RECORD OF ACTION January 8, 2002 Page 2 of 3 The staffs of the Special Districts Department, Administrative Office, County Counsel, City of Redlands, representatives of the United Donut Hole Owners Property Association (UDHOPA), as well as respective legal counsels have met continuously since September to draft an agreement acceptable to all parties pertaining to the above points. The negotiated Agreement addresses all major points and specifies a detailed and orderly plan for the provision of public services within the Donut Hole. County Service Area 70 EV-1 will supply all new properties with retail water and sewer services. The City will sell bulk water and sewer service capacity to CSA 70 EV-1 as specified in the Agreement. City and District will maintain separate infrastructure to accomplish their mutual roles, Development proposals will be processed through the County with the provision for sales tax transfer and payments related to property tax as specified in the Agreement. Developed properties will annex to the City within 5 years of the receipt of certificate of occupancy. The City will provide police and fire services to the Donut Hole for a payment of $25,000 from the County for the first year and for compensation in the future equal to the amount of sales tax generated by the new development and property tax related payments, The terms of the Agreement specify all tax actions are at no harm to previously negotiated IVDA tax increment agreements. The proposed Agreement is a project as defined by the California Environmental Quality Act (CEQA), The Agreement is a follow-on implementing action supporting the IVDA Area policy amendments, facilities plan, and revisions to the Citrus Plaza Regional Mall project approved by the County Board of Supervisors on October 23, 2001, The Subsequent Environmental Impact Report, SCH #1999101123 (SEIR), certified on October 23, 2001, addresses all potential impacts of the proposed Agreement, as follows: Water and Sewer Services: Contracting for the wholesale purchase of water and sewage treatment plant capacity from the City of Redlands is an action required to implement the IVDA Area Water and Wastewater Facilities Plan, as approved by the County Board of Supervisors on October 23, 2001. The SEIR analyzes the impacts of CSA-70 EV-1 providing water and wastewater service within lVDA Area "A" (the Donut Hole) from several alternative wholesale sources. The SEIR also incorporates by reference the original Citrus Plaza Regional Mall EIR, SCH #94082084 and the East Valley Corridor Specific Plan EIR, SCH #87091408, both: of which analyze the impacts of installing water and wastewater facilities within the Donut Hole that would supply water produced by the City of Redlands and convey wastewater to the City of Redlands sewage treatment plant. Police and Fire Services: The SEIR analyzes potential impacts on fire and police protection services, considering both County resources and facilities and the potential to contract with adjacent jurisdictions for such services, Administrative Provisions; Other provisions of the proposed Agreement, concerning tax revenue administration and clarification of administrative authority and procedures will not produce physical impacts requiring CEQA analysis. Public Resources Code section 21166 sets forth the circumstances that would require preparation of a Subsequent or Supplemental EIR, as followsi a) Substantial changes are proposed in the project, which will require major revisions of the Environmental Impact Report, b) Substantial changes occur with respect to the circumstances under which the project is being undertaken which will require major revisions in the Environmental Impact Report, c) New information, which was not known and could not have been known at the time the Rev 07/97 Environmental Impact Report was certified as complete, becomes, available,