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Mayor Valerie Amezcua Mayor Pro Tem Thai Viet Phan Councilmember Benjamin Vazquez Councilmember Jessie Lopez Councilmember Phil Bacerra Councilmember Johnathan Ryan Hernandez Councilmember David Penaloza City Council Chamber 20 Civic Center Plaza M-30 Santa Ana,CA 92701 Re:April 15,2024,City Council Meeting –Ordinance Prohibiting STRs Dear Mayor Amezcua and Honorable City Councilmembers, Adoption of the Ordinance Would Violate the California Environmental Quality Act If the City adopts the Ordinance without conducting any environmental analysis,as it is positioned to do on April 16,this would violate the California Environmental Quality Act (“CEQA”).Staff recommended that the City find the STR prohibition “is not subject to the requirements of [CEQA]...pursuant to (Guidelines)Section 15060(c)(2)because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3)because the activity is not a project as defined in Section 15378 of the CEQA Guidelines ...because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project.”(Staff Report,p.1 [emphasis added].)This conclusion,without any further comment or explanation,is not supported any evidence or reasoning in the record and is inconsistent with the goals and purpose of CEQA.(Davidon Homes v.City of San Jose,54 Cal.App.4th 106 (1997).)California Supreme Court case law makes clear that this type of ordinance is a “project”under CEQA requiring the City to conduct further environmental review.(Union of Medical Marijuana Patients,Inc.v.City of San Diego,7 Cal.5th 1171,1197 (2019).) The Ordinance is a “Project”Under CEQA CEQA requires a local agency acting as the CEQA “lead agency”to engage in a three tier analysis as to a proposed activity.(CEQA Guidelines §15060.)First,the lead agency determines whether a proposed activity is subject to CEQA at all –whether it is a “project.”Under CEQA,a “project”is an activity undertaken or funded by,or subject to the approval of,a public agency that may cause “either a direct physical change in the environment,or a reasonably foreseeable indirect physical change in the environment.”(Pub.Res.Code §21065;CEQA Guidelines § 15378.)“‘Project’is given a broad interpretation ...to maximize protection of the environment . ..Thus,‘[w]here it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment,the activity is not subject to CEQA.’” (Ctr.for Sierra Nevada Conservation v.Cnty.of El Dorado,202 Cal.App.4th 1156,1170 (2012).) The determination of whether an activity is a project “is made without considering whether,