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1 Click Hereto Return to AgeTM BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS ACTION AGENDA SUMMARY DEPT: Planning & Communitv Development BOARD AGENDA # 9:30 a.m. Urgent Routine X AGENDA DATE: March 30, 2004 CEO Concurs with Recommendation YES NO- 415 Vote Required YES - NO-& (Information Attached) SUBJECT: APPROVAL TO SET ASIDE AND VOlD THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT I, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1. STAFF RECOMMENDATIONS: 1. IN ACCORDANCE WITH THE OPINION FROM THE FIFTH DISTRICT COURT OF APPEAL DATED DECEMBER 8, 2003, ADOPT A RESOLUTION TO SET ASIDE AND VOlD THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DlABLO GRANDE, UNITI. (Continued on Pages 2 and 3) FISCAL IMPACT: None.... BOARD ACTION AS FOLLOWS: NO On motion of Supervisor -----!!3u'fIe_I_d _d and approved by the following vote,, Seconded by Supervisor Si_m_c)_n Ayes: Supervisors:-P_a~!~~a3Lfie_I_d~Gr_~v_e_r,~Sho_n~~n_d_C~ha_i1ma_nGa_~~s_~... Noes: Supervisors:-N_o_n&... Excused.. or Absent: Supervisors:N~ne... Abstaining: Supervisor:Now... 1) X Approved as recommended 2) Denied 3) Approved as amended 4) Other: MOTION: BASED UPON THE STAFF REPORTS, ATTACHMENTS, DOCUMENTS THAT ARE REFERENCED IN THE STAFF REPORT, THE ENTIRE RECORD OF THIS MATTER, INCLUDING THE DOCUMENTS RECEIVED LAST NIGHT FROM ROSE ZOIA, LETTER FROM WESTERN HILLS WATER DISTRICT DATED , LETTER DATED FROM STEVE BURKE INCLUDING ATTACHMENTS, LETTER DATED 3/23/00 FROM MR. BURKE TO THE BOARD OF DIRECTORS OF THE KERN COUNTY WATER AGENCY, AND, INCLUDING STAFF TESTIMONY AND THE TESTIMONY AT THE PUBLIC HEARING TODAY, THE BOARD CONSIDERED AND MADE THE FOLLOWING MOTION IN ACCORDANCE WITH THE OPINION FROM THE 5TH DISTRICT COURT OF APPEALS DATED : THE BOARD CONSIDERED AND ADOPTED THE PLANNING COMMISSION AND STAFF RECOMMENDATIONS NOS. 1 THROUGH 4 AS SET FORTH IN THE STAFF REPORT TO THE BOARD ATTEST: File No.

2 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DlABLO GRANDE, UNlT 1 Page 2 STAFF RECOMMENDATIONS CONTINUED: 2. MAKE THE FOLLOWING FINDINGS: a. THAT THE PROJECT MODIFICATION CONSISTS OF AMENDMENT TO CONDITION 57 OF TENTATIVE MAP 97-01, DIABLO GRANDE UNlT 1, TO READ AS FOLLOWS: "DIABLO GRANDE AND/OR WESTERN HILLS WATER DISTRICT SHALL OBTAIN ALL REQUIRED GOVERNMENTAL APPROVALS NECESSARY FOR SUPPLYING ALL ANTICIPATED WATER NEEDS OF PHASE I FROM THE BERRENDA MESAIKERN COUNTY WATER AGENCY (KCWA) SUPPLY OPTION"; b. THAT THIS MODIFICATION TO CONDITION 57 IS INTENDED TO ACCOMMODATE THE ASSIGNMENT BY WESTERN HILLS WATER DISTRICT OF ITS ENTITLEMENT TO 8,000 ACRE FEET PER YEAR OF WATER FROM THE BERRENDA MESA WATER DISTRICT TO THE KERN COUNTY WATER AGENCY, IN EXCHANGE FOR A LIKE AMOUNT OF WATER FROM A LOCAL GROUNDWATER BANK (THE PIONEER GROUNDWATER RECHARGE AND RECOVERY PROJECT) BEING OPERATED BY KCWA; c. THAT PHASE I OF THE DIABLO GRANDE PROJECT WILL THUS STILL DEPEND UPON THE BERRENDA MESA SUPPLY AS THE ULTIMATE SOURCE OF ITS WATER SUPPLY, AND KCWA WlLL NOT EXPERIENCE ANY NET LOSS OF WATER, DUE TO THE FACT THAT ALL WATER IT IS SUPPLYING TO PHASE I IS BEING REPLACED BY AN EQUAL AMOUNT OF WATER FROM THE BERRENDA MESA SUPPLY OPTION; d. THAT THIS MODIFICATION TO CONDITION 57 WILL NOT RESULT IN ANY NEW SIGNIFICANT ENVIRONMENTAL EFFECT, AND WlLL NOT RESULT IN A SUBSTANTIAL INCREASE IN THE SEVERITY OF A PREVIOUSLY IDENTIFIED SIGNIFICANT EFFECT, BEYOND WHAT WAS ALREADY DISCLOSED IN THE DIABLO GRANDE SPECIFIC PLAN EIR, AS SUPPLEMENTED BY THE DIABLO GRANDE WATER RESOURCES PLAN SEIR, WHICH SEIR ALREADY ADEQUATELY ANALYZED THE ENVIRONMENTAL EFFECTS OF UTILIZING THE BERRENDA MESA WATER SUPPLY; e. THAT THIS MODIFICATION TO CONDITION 57 WILL NOT HAVE ANY IMPACT ON THE FEASIBILITY OF MITIGATION MEASURES OR ALTERNATIVES FOR PHASE I, AND, SPECIFICALLY, WlLL NOT RENDER FEASIBLE MITIGATION

3 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 3 STAFF RECOMMENDATIONS CONTINUED: MEASURES OR ALTERNATIVES PREVIOUSLY FOUND INFEASIBLE, AND WILL NOT RESULT IN NEW MITIGATION MEASURES OR ALTERNATIVES CONSIDERABLY DIFFERENT FROM THOSE ANALYZED IN THE PRIOR EIR AND SEIR WHICH WOULD SUBSTANTIALLY REDUCE ONE OR MORE SIGNIFICANT EFFECTS ON THE ENVIRONMENT; f. THE BOARD FINDS THAT NONE OF THE CIRCUMSTANCES EXIST WHICH REQUIRE PREPARATION OF A SUBSEQUENT OR SUPPLEMENTAL EIR AS REQUIRED UNDER PUBLIC RESOURCES CODE SECTION AND CEQA GUIDELINES SECTION , AND, THEREFORE, PURSUANT TO CEQA GUIDELINES SECTION , AN ADDENDUM TO THE DIABLO GRANDE EIR IS AUTHORIZED AND IS THE APPROPRIATE MECHANISM TO COMPLY WITH THE PROCEDURES REQUIRED BY LAW TO ALLOW COUNTY APPROVAL OF THE PROPOSED CHANGE OF SPECIFIC WATER SOURCE FOR THE DIABLO GRANDE PHASE 1 PROJECT FROM THE BERRENDA MESA SOURCE TO THE KCWA SOURCE; AND CIS THAT THE BOARD OF SUPERVISORS HAS REVIEWED AND CONSIDERED THE MARCH 30,2004 ADDENDUM TO THE DIABLO GRANDE WATER RESOURCES PLAN SEIR, AND FINDS THAT IT REFLECTS THE INDEPENDENT JUDGMENT, ANALYSIS, AND CONCLUSIONS OF THE COUNTY. 3. RE-APPROVE THE MODIFIED ADDENDUM TO THE DIABLO GRANDE WATER RESOURCES PLAN SEIR AND ATTACH THAT ADDENDUM TO THE DIABLO GRANDE WATER RESOURCES PLAN SEIR. 4. INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, BY MODIFYING CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP AS FOLLOWS: "PRIOR TO RECORDING ANY FINAL MAP FOR PHASE 1 DEVELOPMENT THAT HAS ANTICIPATED WATER NEEDS BEYOND THAT SUPPLIED BY ON-SITE WELLS, DIABLO GRANDE AND/OR WESTERN HILLS WATER DISTRICT SHALL OBTAIN ALL REQUIRED GOVERNMENTAL APPROVALS NECESSARY FOR SUPPLYING ALL ANTICIPATED WATER NEEDS OF PHASE 1 FROM THE BERRENDA MESA /KERN COUNTY WATER AGENCY (KCWA) SUPPLY OPTION."

4 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVEA MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1 Page 4 DISCUSSION: Backaround and Need for Action: On December 7, 1999, the County of Stanislaus certified the Diablo Grande Specific Plan EIR, as supplemented by the Water Resources Plan Supplemental EIR (SEIR), for Phase I of the Diablo Grande development ( Phase I ). Western Hills Water District negotiated an agreement with Berrenda Mesa Water District ("Berrenda Mesa") to supply water to serve Phase I. The Water Resources Plan SEIR fully analyzed the above-described water exchange, and this analysis was upheld by both the Stanislaus County Superior Court and the Fifth Appellate District of the Court of Appeal. Also on December 7, 1999, the County of Stanislaus approved a vesting tentative subdivision map ( ) for a portion of the Phase I project area (313 Lots). In accordance with the Water Resources Plan SEIR, this tentative map included a condition ("Condition 57") which provided: "Diablo Grande and/or Western Hills Water District shall obtain all required governmental approvals necessary for supplying all anticipated water needs of Phase I from the Berrenda Mesa option." Use of the Berrenda Mesa supply required the approval of the State Department of Water Resources (DWR). However, DWR expressed a preference to contract through existing State Water Project (SWP) state contractors, rather than enter into a new contract with Western Hills, which was not an existing SWP contractor. To accommodate this preference and facilitate obtaining DWR approval, Western Hills negotiated an agreement with the Kern County Water Agency ("KCWA"), which is an existing SWP state contractor. This change was approved by KCWA, Western Hills, and the State Department of Water Resources. Under the terms of this agreement, Western Hills has assigned its right to the Berrenda Mesa Water to KCWA, in return for an equal amount of water from a groundwater bank being operated by KCWA: Thus, Western Hills is still ultimately relying upon the water rights it has obtained from Berrenda Mesa, but this water will now be first transferred to KCWA in exchange for an equal amount of water from KCWA. Diablo Grande later applied to the County for a modification to Condition 57 of Vesting Tentative Map 97-01, in order to reflect the involvement of KCWA as described above. Diablo Grande sought to modify Condition 57 as follows: "Diablo Grande and/or Western Hills Water District shall obtain all required governmental approvals necessary for supplying all anticipated water needs of Phase I from the Berrenda Mesa or Kern County WaterAgency (KCWAI Supply options."

5 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVEA MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 5 On December 1 1, 2001, the County adopted an addendum to the Diablo Grande Specific Plan EIR incorporating KCWAts negative declaration by reference and concurring in KCWA's finding that the above-described Berrenda Mesa-KCWA Water Exchange would have no significant impact on the environment. That action by the County was challenged by Protect Our Water, the San Joaquin Raptor Rescue Center, and Steve Burke. The Stanislaus County Superior Court found that the County acted properly, and, that decision was appealed. Following litigation, on December 8, 2003, the Fifth Appellate District Court of Appeal issued its opinion in Case No. F dated December 8, 2003 ("Opinion F042089) concluding that the County did not proceed in the manner required by law in approving the addendum. The Court held that the Addendum was not adequate because it did not, itself, identify what environmental impacts would result from this change. The Court held that it was not sufficient for the Addendum to simply rely upon the fact that the potential environmental impacts had already been analyzed in another document, and that the Addendum itself had to explain what those impacts were. However, the Court further stated: "Our intention is simply to attempt to clarify the point... that in deciding whether an addendum to the Diablo Grande Phase 1 project was appropriate, the County appears to have focused on the wrong question (whether other environmental review was done in connection with a project other than the Diablo Grande Phase 1 project) rather than on the right question (whether there is a substantial change in the project, or with respect to the circumstances under which the project is being undertaken, which will require major revisions of the Diablo Grande Phase 1 EIR)." (Opinion F042089, p. 13, fn. 3, citations omitted.) Additionally, and specifically, the Court opined that "The pertinent question was not whether 'all impacts were identified in previous environmental documents' unrelated to the Phase 1 project, or whether 'no new or increased impacts not previously disclosed [in environmental documents other than the Phase 1 EIRI will occur.' It was whether any of the conditions of Public Resources Code section (see also Guidelines, Section ) were met." (Opinion F042089, p. 16.) Based on the Court's opinion, staff concludes that if a new addendum is to be adopted, the addendum should specifically identify what the environmental effects of supplying water to Phase 1 from the KCWA may be. Additionally, the addendum should discuss whether the change from Berrenda Mesa to KCWA is or is not a substantial change.

6 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 6 It should be noted that the Court further clarified that the Diablo Grande Phase 1 project is an approved project, and that the analysis of the Berrenda Mesa water supply was adequate. No action has occurred to change that conclusion. It should also be noted that based on previous approvals, and prior to the Opinion F042089, a Final Map for Diablo Grande Unit 1A covering 193 residential lots was accepted and has been recorded as 40-M-94 in October of Building Permits for single family residences have been issued and certificates of occupancy have been completed. Additionally, Western Hills Water District is currently supplying water to Diablo Grande Unit 1 A in accordance with all applicable local, state and federal authorizations and permits. Based on the discussion above, for the Diablo Grande Phase 1 development to proceed with the existing approved KCWA water supply, and in order to comply with the requirements of the Fifth District Court of Appeal, the County must set-aside the previous approvals based on the December 2001 Addendum, and take additional action based on a new appropriate environmental review. The only approvals the County made based on the December 2001 Addendum were those that revised Condition Number 57 of Tentative Map to include KCWA as an additional water source available to the Phase 1 Diablo Grande development. The Board is therefore asked to consider setting aside its prior approval of the 2001 Addendum to the Diablo Grande EIR and the Modified Condition Number 57 for Vesting Tentative Map The Board also is asked to consider adopting a revised addendum to the Diablo Grande EIR in accordance with the directions of the Fifth District Court of Appeal opinion, and to adopt a revised Condition Number 57 for Vesting Tentative Map In adopting a revised addendum, the County must address the questions and issues identified in Opinion F Questions to be Answered in Res~onse to the Court's O~inion: After careful review of Opinion F042089, staff concludes that four questions must be answered prior to any additional Board action. 1. Does the transfer of water source from Berrenda Mesa to KCWA result in any additional impacts related to the Diablo Grande Phase 1 Development (On-Site or Off-Site)? 2. If so, what are they? 3. Are those impacts substantial enough to require an additional EIR pursuant to CEQA or CEQA Guidelines? 4. What is the appropriate mechanism for the County to modify the project in such a way as to allow WHWD to use KCWA water instead of Berrenda Mesa?

7 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 7 A revised Addendum to the Diablo Grande Specific Plan EIR has been prepared for consideration and is attached to this report. The Addendum includes both an independent analysis by staff regarding whether or not specific additional impacts can be expected from the proposed water source transfer, and a specific analysis of whether there is a substantial change in the project, or with respect to the circumstances under which the project is being undertaken, which will require major revisions of the Diablo Grande Phase 1 EIR. Available from the Clerk of the Board are Exhibits A through E to the Addendum (consisting of various contracts and agreements related to water entitlements for the Diablo Grande project), and all the prior environmental review documents for the Diablo Grande Project. Analvsis: Pursuant to the Diablo Grande Mitigation Monitoring Program, and pursuant to various court orders, Stanislaus County must be assured that the Diablo Grande development has an adequate supply of water to serve the Phase 1 development, and that all environmental impacts associated with supplying water to the Diablo Grande Phase 1 project have been evaluated adequately. Stanislaus County staff have independently reviewed the Department of Water Resources, KCWA and WHWD CEQA documents, attachments, contracts, studies, resolutions, Notices of Determination, and other relevant documentation related to the transfer of water from KCWA to WHWD to specifically serve the Diablo Grande Phase 1 project. An Addendum to the Diablo Grande Specific Plan EIR has been prepared which includes a specific analysis of possible impacts related to the transfer of water from KCWA to WHWD to specifically serve the Diablo Grande Phase 1 project. Staff concludes, based on all available documentation, contracts, resolutions, and the entire and complete records associated with the various decisions by KCWA, WHWD, and the State Department of Water Resources, that a sufficient supply of water exists to serve the Diablo Grande Phase 1 project. That supply is specifically 8,000 acre feet per year transferred from KCWA to WHWD as described in the attached documentation. Additionally, WHWD has obtained a Water Supply Permit from California Department of Health Services (DHS), subject to using California Aqueduct water, issued April 2, 2003 for the Diablo Grande Public Water System (Public Water System , Permit Number P-0041, and is subject to all conditions and provisions incorporated in that permit. Stanislaus County staff has independently evaluated the specific potential impacts of supplying water to the Diablo Grande Phase 1 project from the KCWA-WHWD contract as described, and as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. This analysis is provided in the attached Addendum to the EIR. Stanislaus County staff independently concludes, and recommends that the Board independently find, the following:

8 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWAI WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1 Page 8 Based on the analysis presented by KCWA in their initial Study dated February 18, 2000, and the associated documentation (which is all incorporated into this addendum), Stanislaus County staff independently concurs with conclusion KCWA that there will be no impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development above and beyond those already identified and discussed in the Diablo Grande Specific Plan Environmental lmpact Report as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental lmpact Report. 2. Stanislaus County staff concurs with KCWA that none of the mandatory findings of significance described in the KCWA lnitial Study can be made in relation to the KCWA- WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development. Based on the conclusions and analysis presented by WHWD in their Resolution dated March 24, 2000, and associated documentation (which is all incorporated into this addendum), WHWD is capable of supplying water as described to the Diablo Grande Phase 1 project. Additionally, Stanislaus County staff concurs with the WHWD that there will be no impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development above and beyond those already identified and discussed in the certified and approved Diablo Grande Specific Plan Environmental lmpact Report as supplemented. 4. Based on the analysis presented by KCWA in their lnitial Study dated November 13, 1996, on the Pioneer Groundwater Recharge and Recovery Project, and the associated documentation (which is all incorporated into this addendum), Stanislaus County staff concurs with KCWA that there will be no impacts to the environment from implementation of the Pioneer Groundwater Recharge and Recovery Project. Staff recognizes that nowhere in this initial study, is there any mention of the Diablo Grande Phase 1 project or any relation of the Pioneer Groundwater Recharge and Recovery Project to Diablo Grande. Therefore, County staff independently concludes, based on relevant data, and the whole of the record associated with KCWA1s adoption of the Negative Declaration, supplied in the KCWA lnitial Study and associated documents, that there are no

9 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1 Page 9 significant impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to WHWD or Diablo Grande participation or implementation of the Pioneer Groundwater Recharge and Recovery Project in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development. 5. The current General Plan designation and zoning for the Diablo Grande Phase 1 project site is Specific Plan. The environmental review on the Diablo Grande Phase 1 project is complete, and was certified on December 7, The proposed supply of water to the Diablo Grande Phase 1 project as described in the KCWA-WHWD contract falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. Based on Stanislaus County's independent analysis of potential impacts as described in the Addendum and in other portions of the entire record, staff concludes that utilizing KCWA water to supply the Diablo Grande Phase 1 development will not result in any additional impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous Diablo Grande environmental review as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. All adopted mitigation measures from the certified environmental review will apply to the transfer of water to supply the Diablo Grande Phase 1 development. 6. A minor modification to Condition of Approval Number 57 for Tentative Map 97-01, Diablo Grande Unit 1 should be made to clarify the contractual arrangements between KCWA and WHWD specifically to provide water to the Diablo Grande Phase 1 project. The environmental review is adequate and complete and supports modifying condition number 57. This finding is based on all available and previous CEQA documentation, records of decision, notices, actions, findings and other documentation prepared for and/or certified by Stanislaus County, Kern County Water Agency and its subcontractors, Western Hills Water District, and the State Department of Water Resources in regards to the supplying water to the Diablo Grande Phase 1 project, and in regards to implementation of the Pioneer Groundwater Recharge and Recovery Project in so far as implementation of the Pioneer Groundwater Recharge and Recovery Project relates to the proposed transfer.

10 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1 Page Based on Stanislaus County's independent analysis of potential impacts as described in the Addendum and in other portions of the entire record, utilizing the Berrenda Mesa- KCWA Water Exchange to supply the Diablo Grande Phase 1 development will not result in any additional impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous Diablo Grande environmental review as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. 9. None of the circumstances set forth in Public Resources Code section , as codified in CEQA Guidelines section , requiring preparation of a subsequent or supplemental EIR, have been triggered. The addendum has been prepared to satisfy the requirements of subdivision (el of section for a brief explanation of the decision not to prepare a subsequent EIR pursuant to Section The KCWA supply of 8,000 acre-feet per year purchased by WHWD is sufficient to supply water to the full build-out of the Diablo Grande Phase 1 development, and no additional environmental review or conditions of approval for any subsequent Tentative Map will be required if WHWD provides a "will-serve" letter for subsequent Tentative Maps within the Phase 1 development area based on the KCWA supply as described. Public Resources Code Section and CEQA Guidelines Section Subsequent ElRs and Neaative Declarations: The Fifth District Court of Appeal has directed that the Addendum must address whether any of the conditions set forth in Public Resources Code section , and its implementing guideline, section of the CEQA Guidelines, are met. Thus, in the analysis provided in the Addendum, the Addendum first identifies what inquiry these sections require, and then directly answers this inquiry. Section of the Public Resources Code and Section of the CEQA Guidelines require that the County answer the question of whether use of the Berrenda Mesa- KCWA Water Exchange to serve Phase I will result in new or more severe significant environmental effects which were not identified in the prior SEIR s analysis of the Berrenda Mesa water supply option. The attached Addendum provides a detailed analysis of compliance with these Sections. The following provides a summary. Public Resources Code section provides as follows: "When an environmental impact report has been prepared for a project pursuant to this division, no subsequent or supplemental environmental impact report shall be required by the lead agency or by any responsible agency, unless one or more of the following events occurs:

11 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DlABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNIT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DlABLO GRANDE, UNIT 1 Page 11 "(a) "(b) "(c) Substantial changes are proposed in the project which will require major revisions of the environmental impact report. 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. New information, which was no known and could not have been known at the time the environmental impact report was certified as complete, becomes available." Section of the CEQA Guidelines implements the requirements in Section of CEQA which limit preparation of a subsequent EIR to certain situations. This section provides interpretation of the three situations in which the statute requires preparation of a subsequent EIR. Guideline section is set forth below, followed by an explanation of staff's conclusions based on the available record: "(a) When an EIR has been certified or a negative declaration adopted for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: "(I) Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; "(2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or "(3) 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 EIR was certified as complete or the Negative Declaration was adopted, shows any of the following: "(A) The project will have one or more significant effects not discussed in the previous EIR or negative declaration; "(B) Significant effects previously examined will be substantially more severe than shown in the previous EIR;

12 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 12 "(C) Mitigation measures or alternatives previously found not to 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 "(D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. "(b) "(c) If changes to a project or its circumstances occur or new information becomes available after adoption of a negative declaration, the lead agency shall prepare a subsequent EIR if required under subsection (a). Otherwise the lead agency shall determine whether to prepare a subsequent negative declaration, an addendum, or no further documentation. Once a project has been approved, the lead agency's role in project approval is completed, unless further discretionary approval on that project is required. Information appearing after an approval does not require reopening of that approval. If after the project is approved, any of the conditions described in subsection (a) occurs, a subsequent EIR or negative declaration shall only be prepared by the public agency which grants the next discretionary approval for the project, if any. In this situation no other responsible agency shall grant an approval for the project until the subsequent EIR has been certified or subsequent negative declaration adopted." Analvsis and Ex~lanation: Staff has reviewed the previously certified Diablo Grande EIR, the Diablo Grande Water Resources Plan Supplemental EIR, the KCWA Initial Study and Negative Declaration for the Pioneer Water Bank, the KCWA Initial Study and Negative Declaration for the KCWA-WHWD contract to transfer water, and all associated and related documents. Based on this analysis, and as presented in the Addendum, in the agreements with DWR, the DWR facilitated the delivery of KCWA local groundwater to Western Hills by exchanging KCWA's local groundwater for an equivalent amount of KCWA's SWP entitlement delivered to Western Hills at the new turnout on the California Aqueduct. While this exchange of water entitlements and the paper transactions used to facilitate them are legally more complex, the actual physical arrangement remains the same as contemplated under the 1998 Western Hills- Berrenda Mesa Contract: Western Hills is receiving water (up to 8,000 afy) from a new turnout on the California Aqueduct; and, Berrenda Mesa's entitlement to SWP water has been reduced by 8,000 afy. KCWA has facilitated this transfer and exchange through the use of its Pioneer Groundwater Bank; however, KCWA's local water delivery obligations also have been

13 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVEA MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 13 reduced by the 8,000 afy sold and transferred by Berrenda Mesa (which is a KCWA customer). Consequently, there is no net impact on KCWA. Under this arrangement, Western Hills is still ultimately relying upon the water entitlement acquired from Berrenda Mesa to supply water to serve Phase I. Based on this, and on information and data presented in the whole of the record, staff concludes that there are NO substantial changes proposed in the project, NOR any substantial changes with respect to the circumstances under which the project is undertaken, which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Additionally, staff concludes that there is NO 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 EIR and SElR were certified. Specifically, there is no evidence to suggest that the project will have one or more significant effects not discussed in the previous EIRs; there is no evidence to suggest that significant effects previously examined will be substantially more severe than shown in the previous EIRs; there is no evidence to suggest that mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, AND there is no evidence to suggest that any mitigation measures or alternatives which are considerably different from those analyzed in the previous ElRs would substantially reduce one or more significant effects on the environment. For the reasons stated in the Addendum and in the analysis above, County staff independently concludes that the use of the Berrenda Mesa-KCWA Water Exchange to provide water supply for the Diablo Grande Phase 1 development will not result in any new or substantially increased environmental effects not already disclosed in the SEIR's analysis of the Berrenda Mesa water supply option, or in the KCWA Initial Study and Negative Declaration for the Pioneer Groundwater Recharge and Recovery Project in so far as implementation of the Pioneer Groundwater Recharge and Recovery Project relates to the proposed transfer. Therefore, staff further concludes that none of the circumstances set forth in Public Resources Code section , as codified in CEQA Guidelines section , requiring preparation of a subsequent or supplemental EIR, have been triggered. CEOA Guidelines Section Addendum to an EIR or Neqative Declaration: CEQA Guidelines Section requires that: "(a) The lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section calling for preparation of a subsequent EIR have occurred.

14 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 14 "(b) "(c) "(d) "(e) 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 calling for the preparation of a subsequent EIR or negative declaration have occurred. An addendum need not be circulated for public review but can be included in or attached to the final EIR or adopted negative declaration. The decision making body shall consider the addendum with the final EIR or adopted negative declaration prior to making a decision on the project. A brief explanation of the decision not to prepare a subsequent EIR pursuant to Section should be included in an addendum to an EIR, the lead agency's findings on the project, or elsewhere in the record. The explanation must be supported by substantial evidence. This section of the Guidelines is designed to provide clear authority for an addendum as a way of making minor corrections in ElRs and negative declarations without recirculating the EIR or negative declaration. Stanislaus County staff have reviewed the proposed changes to water supply for the Diablo Grande Phase 1 development. Staff concludes that the changes as proposed from the Berrenda Mesa supply to the KCWA supply were required by the State Department of Water Resources, and, based on the analysis presented in the Addendum, all other related documentation, and in this staff report, that none of the conditions described in Section of the CEQA Guidelines calling for preparation of a subsequent EIR have occurred. Specifically, staff concludes, based on the entirety of the record and available information, including an independent analysis of the potential impacts associated with the change, that the proposed change in the water supply for the Diablo Grande Phase 1 project from Berrenda Mesa to KCWA, is NOT substantial, and DOES NOT require major revisions of the adopted Diablo Grande EIR as supplemented. Adoption of the Addendum: The Fifth District Court of Appeal stated in Opinion F that: "We do not here hold that an addendum would be inappropriate in this case. Nor do we hold (or imply) that an addendum would be appropriate. We simply hold that the County did not comply with 'procedures required by law' in approving this (the Dec. 11, 2001) Addendum." (Opinion F042089, p. 16.)

15 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVEA MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 15 In regard to what constitutes a "substantial change" in the project, and whether there was a need for a subsequent or supplemental environmental impact report, the Court further opined: "At first blush, a change from one water source to another might appear to be a substantial change in the project which will require major revisions of the environmental impact report. (Pub. Res. Code, , subd. (a).) This is especially so since it appears that much of the water for Phase 1 was coming from the Berrenda Mesa source. Thus, with the change from the Berrenda Mesa source to the KCWA source, most of the water for Phase 1 would be coming from a source not even mentioned in the environmental documents relied on by the County when the County approved Phase 1 in December of But a change in the source of water for a project is not always, as a matter of law, an event which triggers the need for a subsequent or supplemental environmental impact report under Public Resources Code section (See City of San Jose v. Great Oaks Water Co. (1 987) 1 92 Cal.App.3d 1005, at pp ) And in Fund for Environmental Defense v. County of Orange (1 988) 204 Cal.App.3d 1538, the court emphasized that Public Resources Code section does not establish a low threshold for preparation of a subsequent or supplemental EIR. (Opinion F042089, p. 12.) The Court's opinion continued by noting that the proper standard of review is whether the record as a whole contains substantial evidence to support a determination that the changes in the project or its circumstances were not so "substantial" as to require "major" modifications to the EIR. (Opinion F042089, p. 13, quoting Fund for Environmental Defense v. County of Orange (1 988) 204 Cal.App.3d 1538, 1545.) As stated above, and as described in the Addendum, staff concludes, based on the entirety of the record and available information, including an independent analysis of the potential impacts associated with the change, that the proposed change in the water supply for the Diablo Grande Phase 1 project to transfer the Berrenda Mesa water to KCWA's and then to withdraw an equal amount of water from KCWA groundwater bank, using the same conveyance facilities as previously contemplated, is NOT substantial, and DOES NOT require major modifications to the adopted Diablo Grande EIR as supplemented. As such, staff recommends that an Addendum to the Certified Diablo Grande EIR, as supplemented by the Certified Water Resources Plan SEIR, is the appropriate mechanism to comply with the procedures required by law to allow County approval of the proposed change of specific water source for the Diablo Grande Phase 1 project from the Berrenda Mesa source to the KCWA source.

16 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 16 Summarv: Based on the discussion above, a review of all CEQA documents related to the Diablo Grande Phase 1 project, the CEQA documents related to the KCWA-WHWD water transfer, and the implementation of the Pioneer Groundwater Recharge and Recovery Project, and the whole of the record, County staff provides the following answers to the primary questions posed by the Fifth District Court of Appeal: 1. Does the transfer of water source from Berrenda Mesa to KCWA result in any additional impacts related to the Diablo Grande Phase 1 Development (On-Site or Off-Site)? No. Transfer of the California Aqueduct water source to serve the Diablo Grande Phase 1 Development from Berrenda Mesa to KCWA as proposed results in exactly the same physical impacts to the environment as those identified in the Certified Diablo Grande Specific Plan EIR as supplemented by the Diablo Grande Water Resources Plan Supplemental EIR. Implementation of the Pioneer Groundwater Recharge and Recovery Project as it relates to the KCWA-WHWD transfer will not result in any additional impacts other than those identified previously by KCWA for implementation of the Pioneer Groundwater Recharge and Recovery Project as a whole, and will not result in any additional impacts related to construction of the Diablo Grande Phase 1 development. 2. If so, what are they? The physical changes to the environment resulting from construction of the Diablo Grande Phase 1 project remain the same as those previously analyzed. Berrenda Mesa Water District will lose 8000 acre-feet per year of California Aqueduct allocation -just as analyzed in the Diablo Grande Water Resources Plan Supplemental EIR. Using the existing, previously established Pioneer Groundwater Recharge and Recovery Project will not result in any additional impacts which would not otherwise occur without implementation of the Berrenda Mesa-KCWA water exchange. 3. Are those impacts substantial enough to require an additional EIR pursuant to CEQA or CEQA Guidelines? No. Because there are no actions or activities that result in any additional impacts beyond those previously identified in relation to development of the Diablo Grande Phase 1 development, or in relation to the implementation of the Pioneer Groundwater Recharge and Recovery Project as it relates to the KCWA-WHWD transfer, none of the conditions of Public Resources Code section or CEQA Guidelines section have been met. Because these triggers have not been met, there is not a change in the project that is substantial enough to require major revisions of the Certified Diablo Grande Environmental Impact Report as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report.

17 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page What is the appropriate mechanism for the County to modify the project in such a way as to allow WHWD to use KCWA water instead of Berrenda Mesa? Because some changes or additions are necessary in the approved Diablo Grande Phase 1 project (i.e., County verification that KCWA can be used as a water source for the Phase 1 project) but none of the conditions described in Section calling for preparation of a subsequent EIR have occurred, CEQA Guidelines Section appears to require that an Addendum to the Final EIR must be prepared. Section also indicates that an addendum need not be circulated for public review but can be included in or attached to the final EIR. The Board of Supervisors must consider the addendum with the final EIR prior to making a decision on the project. Therefore, an Addendum to the Certified Diablo Grande EIR as supplemented by the Diablo Grande Water Resources Plan SElR is the appropriate mechanism for the County to modify the project in such a way as to allow WHWD to use KCWA water instead of Berrenda Mesa to serve the Diablo Grande Phase 1 development. Recommended Board of Su~ervisors Actions: It is recommended that the ~oard'of Supervisors adopt all of the Staff Recommendations set forth in this report, including making all of the recommended findings. POLICY ISSUES: The Board of Supervisors is being asked to accept the Kern County Water Agency as the primary water supplier to Western Hills Water District to serve the Diablo Grande project, which supports the Board's goal of fostering multi-jurisdictional cooperation. STAFFING IMPACT: None. ATTACHMENTS: 1. Addendum, including Appendix "Exhibits to the Addendum A through E: (Available from the Clerk) Exhibit A: Agreement to Purchase Berrenda Mesa Water District State Water Project Entitlement to Water (June 10, 1998) Exhibit B: Certificate of Transfer of Berrenda Mesa Water District Water Entitlement (June 1, 2000) Exhibit C: Contract to Transfer Water (June 5, 2000)

18 APPROVAL TO SET ASIDE AND VOID THE APPROVALS OF THE 2001 ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND THE MODIFIED CONDITION NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1, TO MAKE ADDITIONAL FINDINGS NECESSARY AND TO RE-APPROVE A MODIFIED ADDENDUM TO THE DIABLO GRANDE SPECIFIC PLAN EIR, AND TO INCORPORATE THE KERN COUNTY WATER AGENCY (KCWA) WATER SUPPLY INTO CONDITION OF APPROVAL NUMBER 57 FOR VESTING TENTATIVE MAP 97-01, DIABLO GRANDE, UNlT 1 Page 18 Exhibit D: Agreement Between the Department of Water Resources of the State of California, Kern County Water Agency, and Wester Hills Water District for Construction, Operation, and Maintenance of the Western Hills Turnout a Permanent Turnout within the California Aqueduct Right-of-way (June 8, 2000) Exhibit E: Point of Delivery Agreement Between Department of Water Resources, State of California, and the Kern County Water Agency (June 8, 2000). 2. Fifth District Court of Appeal, Opinion F042089, December 8, 2003 "3. Draft and Final Diablo Grande Specific Plan EIR. (Available from the Clerk) "4. Draft and Final Diablo Grande Water Resources Plan Supplemental EIR. (Available from Clerk) "5. December 11, 2001 Addendum to Diablo Grande Specific Plan EIR, as supplemented. (Available from Clerk) I:\BOS\Diablo Grande\2004\ BOS Documents\Addendum BOS Report Final.wpd "ATTACHMENTS AVAILABLE FROM THE CLERK OF THE BOARD

19 ADDENDUM to DIABLO GRANDE WATER RESOURCES PLAN SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT for DIABLO GRANDE SPECIFIC PLAN, PHASE I for adoption by the Stanislaus County Board of Supervisors on March 30,2004

20 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 1 INTRODUCTION On December 7, 1999, the County of Stanislaus certified the Diablo Grande Specific Plan EIR, as supplemented by the Water Resources Plan SEIR, for Phase I of the Diablo Grande development ("Phase I"). The Water Resources Plan SEIR analyzes the environmental impacts of supplying Phase I with water from the Berrenda Mesa Water District ("Berrenda Mesa"). The purpose of this Addendum is to provide additional information relating to changes in the manner in which Phase I is being supplied with water. In short, this water obtained from Berrenda Mesa is now being assigned to the Kern County Water Agency ("KCWA") in return for an equal amount of water from a groundwater bank being operated by KCWA. This addendum has been prepared to satisfy the requirements of subdivision (e) of section of the CEQA Guidelines for "[a] brief explanation of the decision not to prepare a subsequent EIR pursuant to Section " DESCRIPTION OF CHANGE IN MANNER OF SUPPLYING PHASE I WITH WATER The Western Hills Water District ("Western Hills") provides water service to Diablo Grande. In 1998, Western Hills negotiated an agreement with Berrenda Mesa Water District ("Berrenda Mesa") to supply water to serve Phase I. (Agreement to Purchase Berrenda Mesa Water District State Water Project Entitlement to Water, dated June 10, 1998; attached as Exhibit A; the "1 998 Western Hills-Berrenda Mesa Contract.") Pursuant to this agreement, Western Hills secured from Berrenda Mesa a permanent annual entitlement of 8,000 acre feet. Western Hills ultimately obtained this water from Berrenda Mesa on June 1,2000, as is reflected in the Certijcate of Transfer of Berrenda Mesa Water District Water Entitlement, attached hereto as Exhibit B. In addition, Western Hills had secured the right to 464 acre feet per year ("afy") of on-site groundwater. These water sources were more than ample to serve Phase I, which had an estimated water demand of no more than 5,000 afy. The 1998 Western Hills-Berrenda Mesa Contract provides for the following principal water supply elements: Berrenda Mesa would sell and convey to Western Hills 8,000 afy of its entitlement to water from the State Water Project ("SWP") operated by the State Department of Water Resources ("DWR"); Berrenda Mesa's entitlement to SWP water would be reduced by the same amount; Western Hills would contract with DWR for the turnout and delivery of the SWP water from the California Aqueduct at a location in Stanislaus County near Diablo Grande; and Western Hills would construct a system of pipes, pumps and other infrastructure to deliver the water to Diablo Grande.

21 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 2 The Water Resources Plan SEIR fully analyzed the above-described water exchange, and this analysis was upheld by both the Stanislaus County Superior Court and the Fifth Appellate District of the Court of Appeal. Also on December 7, 1999, the County of Stanislaus approved a vesting tentative subdivision map ("97-01") for a portion of the Phase I project area. In accordance with the Water Resources Plan SEIR, this tentative map included a condition ("Condition 57") which provided: "Diablo Grande and/or Western Hills Water District shall obtain all required governmental approvals necessary for supplying all anticipated water needs of Phase I from the Berrenda Mesa option." Use of the Berrenda Mesa supply required the approval of DWR. However, DWR expressed a preference to contract through existing SWP state contractors, rather than enter into a new contract with Western Hills, which was not an existing SWP contractor. To accommodate this preference and facilitate obtaining DWR approval, Western Hills negotiated an agreement with the Kern County Water Agency ("KCWA"), which is an existing SWP state contractor. The details of this agreement are discussed further below, but, simply put, this agreement provided for the transfer of the 8,000 afy Berrenda Mesa water supply to KCWA in exchange for the same amount of water from a groundwater bank being operated by KCWA. Because KCWA is an existing SWP state contractor, there was no obstacle in obtaining DWR approval of the transfer of the Berrenda Mesa supply to KCWA. This transfer represents no net loss of water for KCWA or its groundwater bank because all water KCWA is supplying to Western Hills is being replaced by a like amount of water from the Berrenda Mesa supply. Thus, Western Hills is still relying upon the Berrenda Mesa source as the ultimate water supply for Phase I, as this water right is being transferred to KCWA in exchange for a water right from the water bank. The transaction between Western Hills and KCWA identified above was consummated pursuant to the following principal agreements: the afore-mentioned 1998 Western Hills- Berrenda Mesa Contract; Contract to Transfer Water between Western Hills and KCWA dated June 5,2000, attached as Exhibit C; Agreement Between the Department of Water Resources of the State of California, Kern County Water Agency, and Western Hills Water Districtfor Construction, Operation, and Maintenance of the Western Hills Turnout, A Permanent Turnout Within the California Aqueduct Right-Of- Way dated June 8,2000, attached as Exhibit D; and, Point of Delivery Agreement Between Department of Water Resources, State of California, and the Kern County Water Agency dated June 8,2000, attached as Exhibit E. This transaction is referred to herein as the "Berrenda Mesa-KCWA Water Exchange." The terms of the Berrenda Mesa-KCWA Water Exchange agreements involved the following principal water supply/exchange elements: Berrenda Mesa sold and conveyed to Western Hills 8,000 afy of its entitlement to water from the SWP pursuant to the 1998 Western Hills-Berrenda Mesa Contract; Berrenda Mesa's entitlement to SWP water was reduced by the same amount;

22 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 3 Western Hills transferred and assigned to KCWA the 8,000 afy SWP entitlement that Western Hills acquired from Berrenda-Mesa; In exchange, KCWA agreed to provide Western Hills with an equivalent amount of non- SWP water from KCWA's Pioneer Groundwater Recharge and Recovery Project ("Pioneer Groundwater Bank"), a groundwater banking and supply project approved by KCWA in 1996; KCWA and Western Hills contracted with DWR for the turnout and delivery of 8,000 afy of KCWA's SWP water entitlement from a new turnout on the California Aqueduct at a location in Stanislaus County near Diablo Grande for delivery to Western Hills (the same new turnout as was contemplated under the original Berrenda Mesa supply proposal); DWR reduced the delivery of KCWA's SWP water to Kern County by the same amount (but this reduction is fully offset by the 8,000 afy SWP entitlement KCWA is obtaining instead from the water rights acquired from Berrenda Mesa, identified in the third bullet above); DWR agreed that the source of water delivered to Western Hills would be deemed local water stored in KCWA's Pioneer Groundwater Bank and not SWP water; and, Western Hills constructed a system of pipes, pumps and other infrastructure to deliver the water from the new turnout to Diablo Grande. In the agreements with DWR, the Department facilitated the delivery of KCWA local groundwater to Western Hills by exchanging KCWA's local groundwater for an equivalent amount of KCWA's SWP entitlement delivered to Western Hills at the new turnout on the California Aqueduct. While this exchange of water entitlements and the paper transactions used to facilitate them are legally more complex, the actual physical arrangement remains the same as contemplated under the 1998 Western Hills-Berrenda Mesa Contract: Western Hills is receiving water (up to 8,000 afy) from a new turnout on the California Aqueduct; and, Berrenda Mesa's entitlement to SWP water has been reduced by 8,000 afy. KCWA has facilitated this transfer and exchange through the use of its Pioneer Groundwater Bank; however, KCWA's local water delivery obligations also have been reduced by the 8,000 afy sold and transferred by Berrenda Mesa (which is a KCWA customer). Consequently, there is no net impact on KCWA. Under this arrangement, Western Hills is still ultimately relying upon the water entitlement acquired from Berrenda Mesa to supply water to serve Phase I. KCWA approved the Berrenda Mesa-KCWA Water Exchange on March 23,2000, and Western Hills approved it the following day, March 24,2000. Prior to approving this transaction, KCWA prepared a subsequent negative declaration to analyze use of the Pioneer Groundwater Bank as described above. In this negative declaration, KCWA conducted the analysis required under section of the Public Resources Code and section of the CEQA Guidelines to determine whether this change required major revisions to the EIR and

23 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 4 SEIR for Phase I. KCWA assumed this role in accordance with subdivision (c) of section , which provides that, if a change in a project occurs after the lead agency has approved it, then "a subsequent EIR or negative declaration shall only be prepared by the public agency which grants the next discretionary approval for the project, if any." Diablo Grande later applied to the County for a modification to Condition 57 of Vesting Tentative Map 97-01, in order to reflect the involvement of KCWA as described above. Diablo Grande sought to modify Condition 57 as follows: "Diablo Grande andlor Western Hills Water District shall obtain all required governmental approvals necessary for supplying all anticipated water needs of Phase I from the Berrenda Mesa or Kern County Water Anencv (KCWA) Supply options_." It should be noted that this modification to Condition 57 was not legally required. Even without the modification, Diablo Grande and Western Hills were and are in full compliance with this condition. The condition required Diablo Grande and Western Hills to obtain the governmental approvals necessary to use the Berrenda Mesa supply option to serve Phase I, and that is exactly what Western Hills has done, with the cooperation and help of KCWA. Nonetheless, in the interest of erring on the side of full public disclosure, Diablo Grande requested the modification to Condition 57 set forth above. On December 1 1,2001, the County adopted an addendum incorporating KCWA's negative declaration by reference and concurring in KCWA's finding that the above-described Berrenda Mesa-KCWA Water Exchange would have no significant impact on the environment. Following litigation, on December 8,2003, the Fifth Appellate District Court of Appeal issued an opinion concluding that the County did not proceed in the manner required by law in approving the addendum. The Court stated that it did "not hold that an addendum necessarily would or would not be appropriate for the post-certification change which occurred here (a change in a water source for the project from the Berrenda Mesa Water District to the Kern County Water Agency)." Rather, the Court held that the Addendum was not adequate because it did not, itself, identify what environmental impacts would result from this change. The Court held that it was not sufficient for the Addendum to simply rely upon the fact that the potential environmental impacts had already been analyzed in another document, and that the Addendum itself had to explain what those impacts were. This Addendum has been prepared to rectify the flaws which the Fifth District perceived in the prior Addendum.

24 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 5 Section 21166lGuidelines Section Analysis The Fifth District has directed that this Addendum must address whether any of the conditions set forth in Public Resources Code section , and its implementing guideline, section of the CEQA Guidelines, are met. Thus, in this analysis, this Addendum first identifies what inquiry these sections require, and then directly answers this inquiry. A. The Question: Section and Section require that the County answer the question of whether use of the Berrenda Mesa- KCWA Water Exchange to serve Phase I will result in new or more severe significant environmental effects which were not identified in the prior SEIR's analysis of the Berrenda Mesa water supply option. Public Resources Code section provides as follows: "When an environmental impact report has been prepared for a project pursuant to this division, no subsequent or supplemental environmental impact report shall be required by the lead agency or by any responsible agency, unless one or more of the following events occurs: "(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 environmental impact report was certified as complete, becomes available." Subdivisions (a) and (b) of section require inquiry into whether the use of the Berrenda Mesa-KCWA Water Exchange as described above is a "substantial change... which will require major revisions of the environmental impact report." This question has two subparts: First, is this a substantial change in the project requiring a major revision of the SEIR, pursuant to subdivision (a) of section ? Second, is this a substantial change with respect to the circumstances under which this project is being undertaken, pursuant to subdivision (b) of section ? Both questions will be addressed concurrently herein. CEQA Guidelines section provides additional guidance interpreting section and explaining how the County should go about asking and answering these questions. For example, with respect to the question of whether there are "substantial changes" in the project, subdivision (a)(l) provides that a subsequent or supplemental EIR is required if:

25 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 6 "Substantial changes are proposed in the project which will require major revisions of the previous EIR... due to the involvement of new signzjicant environmental effects or a substantial increase in the severity of previously identified signzjicant effects." Likewise, with respect to whether there are "substantial changes with respect to the circumstances under which the project is being undertaken," subdivision (a)(2) similarly provides that a subsequent or supplemental EIR is required if: "Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revision of the previous EIR... due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects." Thus, the question which this Addendum must answer is whether the water exchange described above will result in new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In addition, the County must also consider the question of whether the use of the Berrenda Mesa-KCWA Water Exchange constitutes "new information" within the meaning of subsection (c) of section Subdivision (a)(3) of section explains that, in order for "new information" to trigger the need for a subsequent or supplemental EIR, the new information must show "any of the following: "(A) The project will have one or more significant effects not discussed in the previous EIR or negative declaration; "(B) Significant effects previously examined will be substantially more severe than shown in the previous EIR; "(C) Mitigation measures or alternatives previously found not to 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; "(D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative." The inquiry under subdivisions (A) and (B) of subdivision (a)(3) ("new information") is the same as the inquiry under subdivision (a)(l) ("changes in project") and (a)(2) ("changes in circumstances of the project"): Whether there are new or more severe environmental effects.

26 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 7 In addition, subdivision (C) and (D) introduce a new inquiry: Whether new information shows that there are feasible mitigation measures or alternatives which were not previously identified or which were not previously found feasible. This latter inquiry (or pair of inquiries) is not relevant or applicable here, because it is only triggered where the original EIR identified unmitigatable significant environmental impacts. With respect to water supply, the Water Resources Plan SEIR concluded, and the County found, that supplying Phase I with water from the Berrenda Mesa Water District would not result in any significant unmitigated environmental effects, and thus there is now no need to consider the feasibility of additional mitigation measures or alternatives. The original Diablo Grande EIR did find that development of the project would result in some unmitigated environmental impacts in areas not having to do with water supply, but the change in the water supply from Berrenda Mesa to KCWA has no relevance to such impacts and in no way suggests the feasibility of new additional or previously rejected mitigation measures or alternatives. So, to the extent that the "new information" standard of subdivision (c) of Section or subdivision (a)(3) of section applies to this change in the project, it does not require any additional inquiry not already covered by the "changes in project" standard of (a) and (a)(l). Thus, to comply with section and CEQA Guidelines section , the County must answer the question of whether use of the Berrenda Mesa-KCWA Water Exchange will result in any new significant environmental impacts, or a substantial increase in the severity of previously identified significant effects, not already disclosed in the SEIR's analysis of the Berrenda Mesa option. B. The Answer: No, use of the Berrenda Mesa-KCWA Water Exchange will NOT result in any new significant environmental effect or a any increase in the severity of previously identified significant effects, not already disclosed in the SEIR's analysis of the Berrenda Mesa option. For the reasons stated herein, the County independently determines that the use of the Berrenda Mesa-KCWA Water Exchange will not result in any new or any increased environmental effects not already disclosed in the SEIR's analysis of the Berrenda Mesa water supply option. Thus, the County fully agrees with the prior finding of the Kern County Water Agency that no new or substantially increased effects will result from the water exchange. In analyzing the impacts of supplying water to Phase I, inquiry must be made into two areas: the impacts of supplying water at the development project site and the impacts of providing water at the location of the water source. With respect to the first question, the Berrenda Mesa-KCWA Water Exchange obviously will result in no environmental effects at the Diablo Grande project site. Phase I will continue to rely upon Berrenda Mesa as its ultimate water supply. Even with exchanging Berrenda Mesa's contract rights for rights to an equal amount of water from KCWA's Pioneer Groundwater Bank, Western Hills will withdraw water from the California Aqueduct and convey it to the Phase I site

27 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 8 by means of the same turnout, pipes, pumps, and other infrastructure contemplated under both options. Absolutely no change is being proposed in the physical water actually being delivered to Phase I. Whether the source is Berrenda Mesa directly through DWR facilities to Western Hills or Berrenda Mesa through KCWA and DWR facilities to Western Hills, Phase I will receive the same quantity of water (up to 8,000 afy) from the same SWP conveyance facilities, utilizing the same system of water infrastructure. The SEIR already analyzed the use of water from the California Aqueduct through this system of infrastructure with respect to the Berrenda Mesa option, and the potential for impacts is identical with respect to obtaining this same physical water through the same infrastructure using the Berrenda Mesa-KCWA Water Exchange. With respect to the second question, the Berrenda Mesa-KCWA Water Exchange likewise will not result in any new or more severe significant environmental impacts at the location of these sources. The net change in water use by KCWA is zero. While KCWA is agreeing to provide up to 8,000 afy from the Pioneer Groundwater Bank, KCWA's water service obligation is concurrently being reduced by 8,000 afy by the Berrenda Mesa assignment to Western Hills which Western Hills, in turn, is assigning back to KCWA. While KCWA will be receiving 8,000 afy of its SWP entitlement delivered at Western Hills, its water service obligation in Kern County also is being reduced by the same quantity. As far as KCWA is concerned, supplying water to Phase I will be a zero-sum gain. Thus, under this transaction, the only agency actually "losing" water continues to be Berrenda Mesa, and the Water Resources Plan SEIR already analyzed the impacts of Berrenda Mesa's "loss" of this water (and that analysis was upheld by both the Superior Court and the Fifth District Court of Appeal). For these reasons, the County independently concludes that the Berrenda Mesa-KCWA Water Exchange and the related operation of the Pioneer Groundwater Bank to serve Phase 1 will not involve any new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Furthermore, it bears noting that the Pioneer Groundwater Bank is an existing, operational groundwater bank which KCWA established in December KCWA's March 23,2000 Subsequent Negative Declaration concluded that the operation of the Pioneer Groundwater Bank to provide water to Phase I as described above would have no significant environmental effect. KCWA's expert opinion contained in this Negative Declaration, based upon its familiarity with and expertise in the operation of the groundwater bank, is itself sufficient evidence to support this conclusion. Further, KCWA having adopted this negative declaration, and nobody having filed suit to challenge it, KCWA's conclusions contained therein are no longer subject to legal challenge. Even if KCWA's conclusions were not thus legally binding upon this County, the County finds that they are persuasive, particularly since KCWA, rather than this County, is in a better position to analyze and evaluate environmental impacts occurring in Kern County as a result of this water exchange. But even aside from KCWA's prior analysis of this very issue in its initial study, this County finds that the use of the Pioneer Groundwater Bank for the Berrenda Mesa-KCWA Water Exchange will have no impact on the environment, because this bank will not lose one drop of water as a result of this paper transfer of water rights. The physical impacts of the Berrenda

28 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page 9 Mesa-KCWA Water Exchange will be exactly the same as the impacts of just using the Berrenda Mesa supply as originally contemplated in the SEIR. In either case, Western Hills will be withdrawing the same physical water from the California Aqueduct. In either case, Berrenda Mesa's entitlement to withdraw water from the California Aqueduct will be reduced by 8,000 afy. In either case, KCWA will withdraw the same physical water from the California Aqueduct it normally withdraws. The only difference to KCWA is that 8,000 afy its water supply will come from Berrenda Mesa's entitlement, and 8,000 afy from the Pioneer Groundwater Bank is now considered to be SWP water to replace the SWP water Western Hills withdraws from the California Aqueduct. While this exchange involves some shift in the legal definition of the different water sources being used, the physical impacts on the environment remain unchanged. Attached hereto as an Appendix is a more detailed environmental analysis of this change in the manner in which water is being supplied to Phase I. For the reasons set forth above and in the Appendix, the County of Stanislaus finds that none of the circumstances set forth in Public Resources Code section , as codified in CEQA Guidelines section , requiring preparation of a subsequent or supplemental EIR, have been triggered.

29 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page i APPENDIX SPECIFIC DISCUSSION OF POTENTIAL IMPACTS ASSOCIATED WITH USING KCWA WATER SUPPLY FOR PHASE 1 OF THE DIABLO GRANDE PROJECT On March 27,2000, the Kern County Water Agency (KCWA) filed a Notice of Determination with the County Clerk, County of Kern, regarding their approval of the of the Western Hills Water District (WHWD) Contract to transfer water specifically for use at Diablo Grande Phase 1 (SCH ). An Initial Study and subsequent Negative Declaration was prepared by Kern County Water Agency specifically to evaluate potential impacts associated with transfer of water from Kern County Water Agency to Western Hills Water District for use at the Diablo Grande Phase 1 Project ("Phase I") in Stanislaus County. That Initial Study and subsequent Negative Declaration, together with all technical documents that form the basis of the KCWA decision are hereby incorporated by reference into this analysis and administrative record of decision. According to the Initial Study and Negative Declaration: "The project is a modification of the Diablo Grande development project and the project's water resources plan approval and implementation of the Kern County Water Agency - Western Hills Water District Contract to Transfer Water, which also implements in part the Kern County Water Agency Pioneer Groundwater Recharge and Recovery Project." The KCWA-WHWD contract for Phase I is a modification to the initial project which provided for a water supply (for Diablo Grande) pursuant to a 1998 Agreement to purchase 8,000 acre-feet of Berrenda Mesa Water District water. Berrenda Mesa Water District is a subcontractor to KCWA for State Water Project (SWP) water. Complete details regarding project description, the KCWA analysis, and the subsequent negative declaration are contained in the body of the Addendum to which this Appendix is attached. Additionally, on March 24,2000, WHWD passed and adopted WHWD Resolution specifically concerning Diablo Grande Development project, and considering CEQA documents, making CEQA findings, adopting CEQA Mitigation Monitoring Program, and approving Service to the Diablo Grande project. A notice of determination was filed by WHWD with the State Clearinghouse and the County Clerks of both Stanislaus and Kern Counties. All WHWD CEQA documentation, resolutions, analyses, findings, and attachments regarding the KCWA contract are hereby incorporated into this analysis and administrative record of decision. Pursuant to the Diablo Grande Mitigation Monitoring Program, and pursuant to various court orders, Stanislaus County must be assured that the Diablo Grande development has an adequate supply of water to serve the Phase 1 development, and that it has adequately evaluated and disclosed all environmental impacts associated with supplying water Phase 1. Stanislaus County staff have independently reviewed the Department of Water Resources, KCWA and WHWD CEQA documents, attachments, contracts, studies, resolutions, Notices of Determination, and other relevant documentation related to the transfer of water from KCWA to WHWD to specifically serve the Diablo Grande Phase 1 project.

30 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page ii Staff concludes, based on all available documentation and the entire and complete records associated with the various decisions by KCWA, WHWD, and the State Department of Water Resources, that a sufficient supply of water exists to serve the Diablo Grande Phase 1 project. That supply is specifically 8,000 acre feet per year transferred from KCWA to WHWD, which WHWD is obtaining from KCWA by exchanging back to KCWA the 8,000 acre feet it has obtained from Berrenda Mesa. Additionally, WHWD has obtained a Water Supply Permit from California Department of Health Services (DHS), subject to using California Aqueduct water, issued April 2,2003 for the Diablo Grande Public Water System (Public Water System , Permit Number P-004), and is subject to all conditions and provisions incorporated in that permit. The following provides Stanislaus County staffs analysis of impacts specifically associated with using the KCWA water supply to serve the Diablo Grande Phase 1 development: Aesthetics. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, 1999, and analyzed impacts associated with aesthetics. The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The use of KCWA water will not result in any additional Aesthetics impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Aesthetics related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Aesthetics: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Aesthetics. Agricultural Resources. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Agriculture Resource impacts

31 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page iii beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Agricultural Resources related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Agricultural Resources: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Agricultural Resources. Air Oualitv. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Air Quality impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Air Quality related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Air Quality: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Air Quality. Biolonical Resources. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental

32 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page iv documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Biological Resources impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Biological Resources related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Biological Resources: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Biological Resources. Cultural Resources. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Cultural Resources impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Cultural Resources related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Cultural Resources: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Cultural Resources.

33 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page v Geolorrv and Soils. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Geology and Soils impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Geology and Soils related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Geology and Soils: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Geology and Soils. Hazards and Hazardous Materials. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Hazards and Hazardous Materials impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Hazards and Hazardous Materials related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Hazards and Hazardous Materials: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c)

34 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page vi there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Hazards and Hazardous Materials. Hydrology and Water Ouality. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Hydrology and Water Quality impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Hydrology and Water Quality related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Hydrology and Water Quality: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Hydrology and Water Quality. Land Use and Planning. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Land Use and Planning impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Land Use and Planning related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the

35 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page vii events specified in Public Resources Code Section relative to Land Use and Planning: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Land Use and Planning. Mineral Resources. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Mineral Resources impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Mineral Resources related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Mineral Resources: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Mineral Resources. Noise. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Noise impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially

36 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page viii significant impacts to Noise related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Noise: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Noise. Population and Housing. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Population and Housing impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Population and Housing related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Population and Housing: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Population and Housing. Public Services. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Public Services impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental

37 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page ix Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Public Services related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Public Services: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Public Services. Recreation. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Recreation impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Recreation related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Recreation: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Recreation. Transportation and Traffic. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Transportation and

38 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page x Traffic impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Transportation and Traffic related to the transfer of water to serve Phase 1 of Diablo Grande, and Stanislaus County staff concurs. All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Transportation and Traffic: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Transportation and Traffic. Utilities and Service Systems. The current General Plan designation and zoning for the Diablo Grande Phase 1 development is Specific Plan. The environmental review on the Diablo Grande project is complete, and was certified on December 7, The use of KCWA water falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. The transfer of water from KCWA to WHWD specifically to serve Phase 1 of the Diablo Grande development will not result in any additional Utilities and Service Systems impacts beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous project environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that there would be no new potentially significant impacts to Utilities and Service Systems related to the transfer of water to serve Phase 1 of Diablo Grande. Stanislaus County staff concurs. (KCWA did identify as insignificant a potential impact resulting from diverting water from the California Aqueduct for Diablo Grande, incrementally reducing the amount of water stored in the San Luis Reservoir between Diablo Grande and KCWA. However, this is not a new impact of the KCWA-WHWD contract, since the same amount of water was already to have been diverted under the original Berrenda Mesa option. The impact to the San Luis Reservoir is the same with or without use of the Berrenda Mesa-KCWA Water Exchange, and this impact was already addressed in the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report.) All adopted mitigation measures from the certified environmental review will apply to the project. Reviewing the events specified in Public Resources Code Section relative to Utilities and Service Systems: (a) there have been no substantial changes in the project since its adoption, as the project is consistent with the proposed Specific Plan land uses, and the

39 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page xi development type and density; (b) there have been no substantial changes in the circumstances under which the project is being undertaken; and (c) there is no new information which was not known or could not have been known at the time of project adoption. Based on the foregoing, the events set forth in Public Resources Code Section have not occurred with respect to Utilities and Service Systems. Mandatow Findings of Significance. Stanislaus County finds that there is no evidence to indicate that the transfer of water from KCWA to WHWD as described would result in the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory, beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that this Mandatory Finding of Significance could NOT be made related to the transfer of water to serve Phase 1 of Diablo Grande. Stanislaus County staff concurs. Stanislaus County finds that there is no evidence to indicate that the transfer of water from KCWA to WHWD as described would result in impacts that are individually limited, but cumulatively considerable beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that this Mandatory Finding of Significance could NOT be made related to the transfer of water to serve Phase 1 of Diablo Grande. Stanislaus County staff concurs. Stanislaus County finds that there is no evidence to indicate that the transfer of water from KCWA to WHWD as described would result in environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly beyond those already analyzed, mitigated, and/or the subject of an overriding consideration finding in the previous environmental review conducted for the Diablo Grande Specific Plan Environmental Impact Report (i.e., the original Diablo Grande Specific Plan Environmental Impact Report, as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report). Indeed, in its own Initial Study and Negative Declaration for the KCWA-WHWD contract to Transfer Water, KCWA specifically concluded that this Mandatory Finding of Significance could NOT be made related to the transfer of water to serve Phase 1 of Diablo Grande. Stanislaus County staff concurs.

40 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page xii In summary, and specifically, the transfer of water source from Berrenda Mesa Water District to KCWA to serve the Diablo Grande Phase 1 development, will not result in any new direct or indirect impacts related to the Diablo Grande Phase 1 project, nor does the transfer of water source from Berrenda Mesa Water District to KCWA to serve the Diablo Grande Phase 1 development substantially change the Diablo Grande Phase 1 project. EVALUATION OF ENVIRONMENTAL DOCUMENTATION BY KCWA RELATING TO PIONEER GROUNDWATER RECHARGE AND RECOVERY PROJECT The Berrenda Mesa-KCWA Water Exchange includes use of an existing, operational groundwater bank known as the Pioneer Groundwater Recharge and Recovery Project. In November 1996, KCWA prepared an Initial Study and adopted a Negative Declaration for the Pioneer Groundwater Recharge and Recovery Project. With sponsorship of the KCWA, the Pioneer Groundwater Recharge and Recovery Project is for the beneficial use, by groundwater recharge, conservation and subsequent recovery of water from the Kern River, Kaweah River, Kings River, Tule River, and Central Valley Project supplies, from the Friant-Kern Canal, or the California Aqueduct and State Water Project supplies consistent with applicable biological opinions. Recharge shall be performed through the coordinated operation of existing groundwater recharge facilities along with specified new facilities to be constructed on the Pioneer property. Recovery of water will be by a number of new and existing wells located throughout the project area. The project receives water in wet years from a wide variety of sources. These waters will be recharged using project facilities and stored in the groundwater basin in Kern County for subsequent use in dry years. Stored water needed by participants which overlie the groundwater basin will be pumped and used within those participating districts. Stored water needed outside the groundwater basin will be pumped by project wells and exchanged with other surface water supplies or conveyed directly to other participants. (Berrenda Mesa Water District and Western Hills Water District are participants together with KCWA) In the 1996 Initial Study, KCWA determined that operation of this groundwater bank will not result in any significant impacts to the environment. Other impacts deemed to not be significant are related to noise, traffic or air quality. The Initial Study further concluded that project activities will not disturb significant prehistoric archeological sites. Should the pioneer property be permanently fallowed, measures will be developed in cooperation with US Fish and Wildlife Service and Department of Fish and Game for endangered species habitat improvements. Measures to protect archeological sites were also developed. The study concluded that all or part of the 1996 farming operations on the Pioneer property will be interrupted by the groundwater recharge and recovery activities during future years. Farming operations will continue once groundwater recharge activities cease. Low levees constructed to pond shallow water would be farmed over. Some clean-up of the linear ditches will be required prior to use for irrigation. Since project lands were currently or had historically been farmed, no impacts would occur to threatened or endangered species.

41 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page xiii KCWA determined that the proposed Pioneer water bank project would not have a significant effect on the environment that can not be mitigated to a level of less than significant. Stanislaus County staff have reviewed the Initial Study and all supporting documents as included in this Addendum, and independently concur with KCWA's conclusions. As such, based on our independent concurrence with the data, analysis, and conclusions presented in this Addendum and in the KCWA Initial Study, Stanislaus County staff concludes that the Berrenda Mesa-KCWA Water Exchange as proposed will not result in any additional impacts associated with the participation or implementation of the Pioneer Groundwater Recharge and Recovery Project. Specifically, the implementation of the Pioneer Groundwater Recharge and Recovery Project in so much as that implementation relates to providing water to serve the Diablo Grande Phase 1 development will not result in any new impacts related to the Diablo Grande Phase 1 project, nor does implementation of the Pioneer Groundwater Recharge and Recovery Project substantially change the Diablo Grande Phase 1 project. SUMMARY Stanislaus County staff has independently evaluated the specific potential impacts of supplying water to the Diablo Grande Phase 1 project using the Berrenda Mesa-KCWA Water Exchange as described, and as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. Stanislaus County independently concludes the following: 1. Based on the analysis presented by KCWA in their initial Study dated February 18,2000, and the associated documentation (which is all incorporated into this addendum), Stanislaus County staff concurs with KCWA that there will be no impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development above and beyond those already identified and discussed in the Diablo Grande Specific Plan Environmental Impact Report as supplemented by the Diablo Grande Water Resources Plan Supplemental Environmental Impact Report. 2. Stanislaus County staff concurs with KCWA that none of the mandatory findings of significance described in the KCWA Initial Study can be made in relation to the KCWA- WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development. 3. Based on the conclusions and analysis presented by WHWD in their Resolution dated March 24,2000, and associated documentation (which is all incorporated into this addendum), WHWD is capable of supplying water as described to the Diablo Grande Phase 1 project. Additionally, Stanislaus County staff concurs with the WHWD that

42 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page xiv there will be no impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development above and beyond those already identified and discussed in the certified and approved Diablo Grande Specific Plan Environmental Impact Report as supplemented. 4. Based on the analysis presented by KCWA in their Initial Study dated November 13, 1996, on the Pioneer Groundwater Recharge and Recovery Project, and the associated documentation (which is all incorporated into this addendum), Stanislaus County staff concurs with KCWA that there will be no impacts to the environment from implementation of the Pioneer Groundwater Recharge and Recovery Project. Staff recognizes that nowhere in this initial study, is there any mention of the Diablo Grande Phase 1 project or any relation of the Pioneer Groundwater Recharge and Recovery Project to Diablo Grande. Therefore, County staff independently concludes, based on relevant data, and the whole of the record associated with KCWA's adoption of the Negative Declaration, supplied in the KCWA Initial Study and associated documents, that there are no significant impacts to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems in relation to WHWD or Diablo Grande participation or implementation of the Pioneer Groundwater Recharge and Recovery Project in relation to the KCWA-WHWD contract for transfer of water to supply the Diablo Grande Phase 1 development. 5. The current General Plan designation and zoning for the Diablo Grande Phase 1 project site is Specific Plan. The environmental review on the Diablo Grande Phase 1 project is complete, and was certified on December 7, The proposed supply of water to the Diablo Grande Phase 1 project as described in the KCWA-WHWD contract falls within the threshold of significance established in the Specific Plan and the adopted environmental documents. Based on Stanislaus County's independent analysis of potential impacts as described in the Addendum and in other portions of the entire record, staff concludes that utilizing KCWA water to supply the Diablo Grande Phase 1 development will not result in any additional impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous Diablo Grande environmental review as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and

43 Addendum to Diablo Grande Water Resources Plan Supplemental EIR Diablo Grande Specific Plan, Phase I Page xv Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. All adopted mitigation measures from the certified environmental review will apply to the transfer of water to supply the Diablo Grande Phase 1 development. 6. A minor modification to Condition of Approval Number 57 for Tentative Map 97-01, Diablo Grande Unit 1 should be made to clarify the contractual arrangements between KCWA and WHWD specifically to provide water to the Diablo Grande Phase 1 project. The environmental review is adequate and complete and supports modifying condition number 57. This finding is based on all available and previous CEQA documentation, records of decision, notices, actions, findings and other documentation prepared for and/or certified by Stanislaus County, Kern County Water Agency and its subcontractors, Western Hills Water District, and the State Department of Water Resources in regards to the supplying water to the Diablo Grande Phase 1 project, and in regards to implementation of the Pioneer Groundwater Recharge and Recovery Project in so far as implementation of the Pioneer Groundwater Recharge and Recovery Project relates to the proposed transfer. 8. Based on Stanislaus County's independent analysis of potential impacts as described in the Addendum and in other portions of the entire record, utilizing the Berrenda Mesa- KCWA Water Exchange to supply the Diablo Grande Phase 1 development will not result in any additional impacts beyond those already analyzed, mitigated, andlor the subject of an overriding consideration finding in the previous Diablo Grande environmental review as they relate to Aesthetics, Agricultural Resources, Air Quality, Biological Resources, Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation and Traffic, and Utilities and Service Systems. 9. None of the circumstances set forth in Public Resources Code section , as codified in CEQA Guidelines section , requiring preparation of a subsequent or supplemental EIR, have been triggered. The addendum has been prepared to satisfy the requirements of subdivision (e) of section for a brief explanation of the decision not to prepare a subsequent EIR pursuant to Section The KCWA supply of 8,000 acre-feet per year purchased by WHWD is sufficient to supply water to the full build-out of the Diablo Grande Phase 1 development, and no additional environmental review or conditions of approval for any subsequent Tentative Map will be required if WHWD provides a "will-serve" letter for subsequent Tentative Maps within the Phase 1 development area based on the KCWA supply as described.