1) Adopt a Resolution authorizing the City Manager to execute a six-month lease agreement, in substantially final form, between the City of Arroyo Grande and RE/MAX Success for the City-owned property at 214 East Branch Street, also known as Old City Hall, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Determine that the approval of a short-term lease agreement for 214 East Branch Street is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (c) (2)-(3), 15378). The lease of the property, where no development or demolition is proposed, constitute an administrative activity of the City. Alternatively, the adoption of resolution to enter a lease agreement is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The entering into a lease agreement is for the collection of rental fees and does not result in new construction or physical change in the environment.