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Page 2 of 3 <br />property of the City and may be used thereafter for any purposes designated by the City <br />free and clear of the Settlement Agreement. <br /> <br />The second component involves a payment to Citizens for the Public Trust and Ted J. <br />Hannig in the amount of $1,500,000.00 as reimbursement to them for all of their legal <br />fees, costs, and damages arising from the Petition. In exchange, the Citizens for the <br />Public Trust and Ted J. Hannig have provided the City with a complete release of all <br />known and unknown claims related to the Petition. The Settlement Agreement also <br />explicitly states that the City’s payment is not intended, and shall not be construed, to <br />be an acknowledgment, admission, concession, or stipulation of liability or wrongdoing <br />by the City but, rather, constitutes a resolution and settlement of disputed issues without <br />admission of any fault. <br /> <br />The third component of the Settlement Agreement involves an agreement by the City to <br />undertake certain actions related to Docktown. By December 31, 2016, the City agrees <br />to adopt a Docktown Plan which shall be in conformance with the Commission’s policies <br />concerning residential use of the public trust portion of Docktown and consistent with <br />the recent letter issued by the Attorney General’s office to the State Lands Commission. <br />If, however, the Commission’s policies change, a different legal opinion is received from <br />the Attorney General’s office, or there is action by the State Legislature to modify State <br />law related to Docktown, the City’s Plan would have to be in compliance with any new <br />policies or law. The City further agrees to use its best efforts and action towards prompt <br />implementation of the Plan by December 31, 2017. Finally, the City agrees that by <br />December 31, 2016, it shall complete the environmental site assessment and sampling <br />work and prepare a report regarding any findings. Once prepared, the City agrees to <br />submit the report to relevant federal, state, and local agencies, and cooperatively work <br />with those agencies to address any findings requiring action. <br /> <br />ALTERNATIVES <br />Do not approve the Settlement Agreement and direct the City Attorney’s Office to <br />continue with its defense of the City with regard to the Petition. <br /> <br />FISCAL IMPACT <br />$3,000,000.00 will be transferred from the general fund to a Docktown Marina Fund and <br />$1,500,000.00 will be transferred from the General Fund to the General Liability Self- <br />Insurance Fund for claim settlement. <br /> <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under CEQA Guidelines 15378(b) (5) as it will not result in <br />direct or indirect physical changes in the environment. <br /> <br /> <br />MICHELLE KENYON <br />ACTING CITY ATTORNEY <br /> <br />8.B. - Page 2