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The city council shall make an environmental assessment for the following after the payment of the appropriate fee:

A. Any project which does not qualify for a categorical exemption and which may require an environmental impact report under the Environmental Quality Act of 1970 and any regulations adopted pursuant thereto;

B. Any project which is submitted by the sponsor to the city council for an environmental assessment prior to the submittal of the project to the city for governmental action. (Ord. 122 § 4.2, 1973)