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Page 1 of 3 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 25, 2016 <br /> <br />SUBJECT <br />Settlement Agreement by and Between the City of Redwood City and Citizens for the <br />Public Trust and Ted. J. Hannig <br /> <br />RECOMMENDATION <br />1. By motion, approve the Settlement Agreement by and between the City of Redwood <br />City and Citizens for the Public Trust and Ted J. Hannig. <br /> <br />2. Adopt a Resolution approving a budget amendment to (1) transfer $1,500,000.00 <br />from the general fund to the general libability self-insurance fund; and (2) transfer <br />$3,000,000.00 from the general fund to the Docktown Marina Fund. <br /> <br />BACKGROUND <br />On November 9, 2015, the Citizens for the Public Trust and Ted J. Hannig filed a <br />Petition for Writ of Mandamus and Complaint for Declaratory and Injunctive Relief <br />against the City in San Mateo Superior Court (“Petition”). The Petition alleges, among <br />other things, violations of environmental law and the common law Public Trust Doctrine <br />in connection with Docktown Marina (“Docktown”). In order to resolve any and all claims <br />arising out of the Petition, the parties have negotiated a settlement which settles their <br />disputes. <br /> <br />ANALYSIS <br />The terms of the settlement involve three major components. The first component is the <br />creation of a Docktown Fund ("Fund"). The City has agreed to set aside three million <br />dollars ($3,000,000.00) in an earmarked fund to address environmental issues, <br />including any potential water and soil contamination, and public trust issues, such as <br />possible relocation assistance, associated with the public trust portion of Docktown. <br />The Fund will be administered consistent with the objective of bringing the City’s use of <br />the public trust portion of Docktown, including residential use of Docktown, into <br />compliance with the California State Lands Commission’s (“Commission”) public trust <br />policies regarding Docktown under State law. A portion of the Fund may also be used <br />to provide financial incentives for liveaboard residents in Docktown to relocate their <br />houseboats elsewhere. The Fund shall exist until the City fully performs the terms of the <br />Settlement Agreement, or December 31, 2020, whichever is earlier. If the entirety of the <br />Fund is not used by the City, the monies deposited in the Fund shall remain the <br />8.B. - Page 1