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Agreement for Railroad Crossing Improvements to Warner Avenue and McFadden <br />Avenue <br />April 21, 2026 <br />Page 6 <br />ENVIRONMENTAL IMPACT <br />On September 1, 2015, City Council approved the Warner Avenue Final Environmental <br />Impact Statement (EIR) (SCH No. 2012101004). The Warner Protected Bike Lanes <br />Project received Caltrans approval under the National Environmental Policy Act <br />(NEPA); a Categorical Exemption (CE) was approved on December 30, 2019. Caltrans <br />revalidated the NEPA/CEQA document on May 27, 2025. <br />Staff filed Categorical Exemptions Sections 15301(c) and 15304(h) have been recorded <br />with the Orange County Clerk -Recorder Department, as Environmental Review No. ER- <br />2020-97 for the McFadden Avenue Protected Bike Lane Project improvements project <br />document on November 25, 2020. <br />The proposed Projects are exempt from further environmental review under Warner EIR <br />and McFadden CEQA. This exemption applies when a previously certified Warner EIR <br />and McFadden CEQA has adequately analyzed the environmental effects of an activity, <br />and no new significant impacts would result from the proposed Project. If the proposed <br />Project remains within the scope of the Warner EIR and McFadden CEQA and does not <br />require a subsequent Environmental Impact Report (EIR), no additional environmental <br />documentation is required. Therefore, a Notice of Exemption, Environmental Review <br />No. 2026-XX for Warner and 2026-XX for McFadden, will be filed for the Projects. <br />(Exhibit 5). <br />FISCAL IMPACT <br />With the approval of the requested appropriation adjustments, all funds will be available <br />for expenditure in Fiscal Year 2025-26. Any remaining balances not expended at the <br />end of the fiscal year will be presented to City Council for approval of carryovers into <br />Fiscal Year 2026-2027. <br />With the approval of the requested appropriation adjustments, $776,858 of the Measure <br />M-Street Construction accumulated fund balance will be appropriated for spending in <br />the Measure M2 Local Fairshare St, Improvements Other Than Buildings expenditure <br />account (No. 03217662-66220). <br />A portion of the Transportation System Improvement Area D accumulated fund balance <br />will be appropriated for spending in the Transportation System Improvement Area D, <br />Improvements Other Than Buildings expenditure account (No. 04417660-66220). The <br />spendable portion of the fund balance is estimated to be $8,570 as of June 30, 2026, <br />which is sufficient to allow for the recommended appropriation of $8,570. <br />A portion of the Residential Street Improvements accumulated fund balance will be <br />appropriated for spending in the Residential Street Improvements, Improvements Other <br />Than Buildings expenditure account (No. 05817660-66220). The spendable portion of <br />