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financially infeasible, as this would likely result in fewer units, <br />reduced unit sizes along First Street, or a narrower drive aisle. <br />This, in turn, would create a ripple effect, ultimately reducing <br />the size of Buildings 10, 11, and 12. The units have been <br />designed to strike a balance between common areas and <br />bedroom space, and any further reduction in unit size may <br />compromise livability for future owners. Additionally, if the <br />Project becomes financially unviable for the Applicant, it could <br />result in the loss of the five affordable townhouse units. <br />Section 2. Pursuant to the California Environmental Quality Act (CEQA) and <br />CEQA Guidelines, the proposed Project is exempt from further environmental review <br />under Section 15168 (Program EIR). This exemption applies when a previously certified <br />Program Environmental Impact Report (Program EIR) has adequately analyzed the <br />environmental effects of an activity, and no new significant impacts would result from the <br />proposed project. If the proposed Project remains within the scope of the Program EIR <br />and does not require a subsequent Environmental Impact Report (EIR), no additional <br />environmental documentation is required. <br />A CEQA Section 15168 Consistency Memorandum was prepared by First Carbon <br />Solutions, the applicant's environmental consultant. The purpose of the memorandum <br />was to determine whether the proposed project was exempt from further review, pursuant <br />to the relevant 2007 MEMU Program EIR, certified in 2007, and the MEMU Subsequent <br />EIR, certified in 2018. This memorandum was reviewed by City staff and City's <br />environmental consultant, Ardurra Consulting. Upon review, it was determined that the <br />Project does not introduce new or more severe environmental effects beyond those <br />previously identified. Additionally, there are no substantial changes in environmental <br />circumstances that would necessitate further review. Moreover, as required under CEQA <br />Guidelines Section 15168(c)(3), all applicable mitigation measures from the MEMU EIR <br />and SEIR will be incorporated into the project. Based on this analysis, the project qualifies <br />for an exemption under CEQA, and no further environmental documentation is necessary. <br />Therefore, Notice of Exemption, Environmental Review No. 2024-53, will be filed for the <br />project. <br />Section 3, The Applicant shall indemnify, protect, defend and hold the City <br />and/or any of its officials, officers, employees, agents, departments, agencies, authorized <br />volunteers, and instrumentalities thereof, harmless from any and all claims, demands, <br />lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, <br />equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute <br />resolution procedures (including, but not limited to arbitrations, mediations, and such <br />other procedures), judgments, orders, and decisions (collectively "Actions"), brought <br />against the City and/or any of its officials, officers, employees, agents, departments, <br />agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set <br />aside, void, or annul, any action of, or any permit or approval issued by the City and/or <br />any of its officials, officers, employees, agents, departments, agencies, and <br />instrumentalities thereof (including actions approved by the voters of the City) for or <br />concerning the project, whether such Actions are brought under the Ralph M. Brown Act, <br />Resolution No. 2025-XX <br />Page 4 of 10 <br />