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The Honorable Board of Supervisors
June 2, 2004
Page 10

1 The narrow question before the County is whether the proposed designation
constitutes significant new information under state law, i.e., CEQA. Applicable case law
indicates that designation of critical habitat does not automatically constitute significant new
information.

2 The FEIR analyzed the Project's impacts to arroyo toad on a "species" basis and
on a "habitat" basis. The FEIR's analysis of the Project's impacts on the arroyo toad were
based on the 1996 Biological Assessment by BLM, the 1998 Biological Opinion by the U.S.
Fish and Wildlife Service ("USFWS"), the 2001 Supplemental Biological Assessment by BLM,
and the 2001 Supplemental Biological Opinion by USFWS. These documents analyze Project
impacts on the toad, as well as its riparian habitat. The applicant's biologist reviewed these
studies and all mitigation measures and Project Conditions in light of the proposed
designation, and concluded that: (1) the studies adequately analyzed the Project's impacts on
the proposed critical habitat, and (2) the Project as mitigated will not adversely modify the
proposed habitat. County staff concurs in this conclusion, based on their independent review
of CEMEX's most recent submittal and their independent knowledge of the Project, FEIR, and
supporting documents.

3. The FEIR adopted as CEQA mitigation measures all of the terms and conditions
from the federal biological documents and imposed Project Conditions to mitigate the
biological impacts of the Project.

After considering extensive written briefing and oral argument by Cemex, the United States,
the County, and the City, the federal court found that the FEIR and the Project entitlements
recommended for approval herein were lawful and appropriate under the applicable state and
federal environmental laws.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

Approval of the recommended actions will allow for implementation of Cemex's federally
approved mining project. These approvals have no direct impact on other projects.
Implementation of project conditions and mitigation measures will be monitored and enforced
by County departmental staff consistent with standard protocols for County approved land use
entitlements.

HOA.236756.1