If a project is not categorically or ministerially exempt from CEQA, the applicant shall submit an environmental checklist on a form specified by the Director as part of a project application package. After a preliminary review of the checklist, the Director may require additional information of the applicant if necessary to make a determination of the environmental effects of the project.
The City shall complete the environmental checklist and prepare an initial study. Within 30 calendar days after accepting an application as complete, and based upon the findings of the initial study, the City, as lead agency, shall determine whether to prepare an EIR, a negative declaration, or reaffirm a previously prepared EIR or negative declaration. The 30 day period may be extended by 15 days, subject to the approval of the applicant and the lead agency.
The Director shall make the determination of significant effect after reviewing the initial study and any additional environmental documentation submitted relative to the project.
A. 
The Director shall find that a project will have a significant effect on the environment and require that an EIR be prepared when any of the following conditions occurs:
1. 
The project has the potential to substantially 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 major periods of California history or prehistory;
2. 
The project has the potential to achieve short-term environmental goals to the disadvantage of long-term goals;
3. 
The project has possible environmental effects which are individually limited but are cumulatively considerable;
4. 
The environmental effects of the project will cause substantial adverse effects on human beings, either directly or indirectly.
B. 
If the Director finds no substantial evidence to suggest that the project may have significant environmental effects, a draft negative declaration shall be prepared.
C. 
If the Director finds no substantial evidence to suggest that the project may have significant environment effects when the applicant has agreed to accept mitigation measures which would reduce significant impacts to a level that is less than significant, a draft mitigated negative declaration shall be prepared.
D. 
If the Director finds substantial evidence to suggest that the project scope and impacts are within the scope of a previously prepared EIR, negative declaration, or mitigated negative declaration, and if the Director determines that the previous environmental document is still relevant and adequate, the previous environmental document shall be reaffirmed.
E. 
The City Council may establish and adopt by resolution additional thresholds of significance to help determine when a proposed project or activity may have a significant effect on the environment.