AR 071806 Appeal-Sims Hugo Neu West dba Colton Iron Metal

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ITEM #3 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF JULY 18, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David R. Zamora, Community Development Director SUBJECT: Appeal of the Colton Planning Commission's Approval of File Index Number D-55-01 (Pacific Rail Industries), Including the Certification of the Final Revised Environmental Impact Report Prepared for the Pacific Rail Metal Shredding Operation Project, and an Amendment to the Applicant's Conditional Use Permit to Allow 1) The Installation and Operation of a Metal Shredding Operation as an Expansion of a Scrap Metal Facility; 2) Construction of an Approximately 30' X 250' Metal Building and Related Facilities; and 3) An Increase in the Volume of Transloading (Transfer of Goods from Rail Car to Truck for Distribution) on the Project Site. A Major Variance to Exceed the Height of a Screen Wall from 8 Feet to 13 Feet on the South Portion of the Property was also approved. As Part of the Project, a Metal Shredder will be Relocated from an Existing Facility in Carson to the City of Colton where it will Shred Raw Metal Sources (Car bodies, appliances etc.) and Separate Metal and Non -Metal Material by Physical and Chemical means. Transloading from the Adjacent Railroad Yard will increase from 25,100 tons to 37,620 tons per month (approximately 50%). DATE: July 10, 2006 BACKGROUND: On November 16, 2004, the City Council approved a Modification to the Conditional Use Permit (CUP No. C-5-86) for Pacific Rail Industries to allow the relocation and re -assembly of a metal shredding facility and a fifty percent increase in transloading activity. The approval action included the Certification of an Environmental Impact Report (EIR) and Mitigation Monitoring and Reporting Program (MMRP) in compliance with the California Environmental Quality Act (CEQA). The EIR was prepared by Michel Brandman Associates, an environmental consultant under contract to the city. Pacific Rail Industries received approval of the original CUP No. C-5-86 in 1986 for the development and operation of a rail dismantling and salvage operations facility at the same location (785 East "M" Street) and has been operating at the project site under that CUP since that time. On December 2, 2004, Hugo Neu-Proler Company d.b.a. Colton Iron and Metal (CIM) filed a Petition for Writ of Mandate with the Superior Court of the State of California for the County of San Bernardino alleging the City of Colton violated CEQA and contended that the EIR does not comply with CEQA in 13 areas. Due to the legal action filed by CIM, the applicant has been unable to start with the project. On October 18, 2005, the Court issued a Statement of Decision on this matter and found that the EIR was insufficient only in the following topics: (1) Traffic, (2) Hazardous Materials, and (3)Air Quality. The trial court rejected all of the other points raised by CIM. CIM rejected all of those