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The Honorable Board of Supervisors
June 2, 2004
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receipt of oral testimony on January 23, 2001, April 24, 2001, November 27, 2001, and
February 26, 2002, as well as the receipt of voluminous written testimony.

Your Board is required to take the recommended actions under the Consent Decree by
July 5, 2004. The Project approval documents enclosed herein, including the proposed
Project conditions, were exhibits to the Consent Decree, and are to be approved "as-is" under
the terms of the Consent Decree. The federal court has approved the specific steps called for
in this board letter and has determined that this process is substantively and procedurally
lawful under applicable federal and state laws.

Implementation of Strategic Plan Goals

The proposed actions promote the County's Strategic Plan goal of organizational effectiveness
and fiscal responsibility. They provide for the implementation of a federally-approved mining
project in an area identified by the County General Plan as a state-recognized Regionally
Significant Construction Aggregate Resource Area with the inclusion of numerous
environmental mitigation measures and project conditions intended to reduce potential Project
impacts while providing for settlement of significant litigation regarding the proposed Project.

FISCAL IMPACT/FINANCING

Approval of the recommendations will not result in direct additional net County costs. The
Project conditions require that Cemex pay certain costs to defray staff expenses in connection
with inspection and other enforcement activities and provides for Cemex to fund other
mitigation and Project-related measures. No request for financing is being made.

FACTS AND PROVISIONS/LEGAL REQUIREMENT

Project Description and Chronology

As indicated in more detail in the Project Findings (Exhibit D), Cemex's predecessor filed its
application with the County in 1991 for a surface mining permit to conduct the proposed
mining activities pursuant to Section 22.56.1240, et seq. of the County Code. The Project site
is located at 12101 Soledad Canyon Road within the Soledad Canyon Zoned District. The
zoning of the Project site is M-2 (Heavy Manufacturing). A surface mining permit is required in
this zone to conduct the proposed activities. Approximately 45 acres of the subject property
were previously mined for sand and gravel over the prior 30 years. An abandoned surface
mine remains on the Project site including an aggregate crushing mill, stockpile areas, and
access roads. The remainder of the site is predominantly undisturbed and vacant. The

HOA.236756.1