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HomeMy WebLinkAbout4.05 LAFCO Agmt Litiga$ CITY CLERK FILE #600-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 16, 2002 SUBJECT: Agreement with LAFCO to Indemnify LAFCO for the Costs of Litigation Arising from LAFCO's Approval of the East Dublin Property Owners' Reorganization Report l~repared by John Bakker, ~issociate Attorney for Elizabeth H. Silver, City Attorney ATTACHMENTS: 1. Proposed Agreement Between Alameda County Local Agency Formation Commission and City of Dublin Regarding East Dublin Property Owners' Reorganization 2. Letter from Braddock and Logan agreeing to indemnify City for costs associated with challenge to LAFCO action RECOMMENDATION:/~~Approve the proposed Agreement with LAFCO and '~ authorize the Mayor to execute the Agreement FINANCIAL STATEMENT: This agreement would have no fiscal impact DESCRIPTION: When the Alameda County Local Agency Formation Commission ("LAFCO") approved the East Dublin Property Owners' Annexation in May, LAFCO imposed a condition that required the City to enter into an agreement with LAFCO to indemnify LAFCO against any expenses arising from any legal actions challenging the Reorganization. Pursuant to the LAFCO condition, City staff and LAFCO legal counsel negotiated the attached agreement. For efficiency, LAFCO legal counsel and the City's litigation counsel intend to work together on the present litigation matters challenging both the City's action and LAFCO's action on CEQA grounds. This agreement will have no fiscal effect on the City. The East Dublin Property Owners' have agreed to cover the City's costs in defending any lawsuit arising from the annexation, including challenges to the LAFCO action. Recommendation: Staff recommends that the City Council approve the agreement with LAFCO and authorize the Mayor to execute the agreement. COPIES TO: Jeff Lawrence, Braddock'& Logan ITEM NO.~ ~'~ G:\CC-MTGS\2002-QTR3XJULY\7-16-02~AS-LAFCO' DOC AGREEMENT BETWEEN ALAMEDA COUNTY LOCAL AGENCY FORMATION COMMISSION AND CITY OF DUBLIN REGARDING EAST DUBLIN PROPERTY OWNERS' REORGANIZATION THIS AGREEMENT dated for identification this 16th day of July, 2002, is entered into by and between the Alameda County Local Agency Formation Commission ("LAFCO"), a subdivision of the State of California, and the City of Dublin ("Dublin"), a municipal corporation. Recitals 1. Dublin applied for and, on May 9 2002, the Alameda County Local Agency Formation Commission ("LAFCO") approved a reorganization involving, among other things, the annexation of over 1500 acres of territory to the City of Dublin ("the Reorganization"). 2. LAFCO's approval was conditioned upon, among other things, Dublin and LAFCo entering into an agreement to indemnify LAFCO against any expenses arising from any legal actions challenging the Reorganization. NOW, THEREFORE, LAFCO and Dublin agree as follows: Section 1. Indemnification. In the event any legal action or proceeding is instituted against LAFCO (or naming LAFCO as a real party in interest) challenging the Reorganization, or any of LAFCO's actions related thereto, Dublin shall indemnify LAFCO from any costs or= liability incurred by LAFCo as a result of any such action or proceeding, including any award to opposing counsel of attorney's fees or costs. Dublin also agrees to reimburse LAFCO for the Commission's reasonable expenses resulting from any such legal action or proceeding. Such expenses include LAFCOo's counsel's charges for representing LAFCO in any such action, costs of preparing the administrative record in any such action (including LAFCO staff costs), and all other expenses incurred by LAFCO as a result of any such action or proceeding. LAFCO intends to use its staff counsel to represent it in this action. LAFCO will coordinate the defense of this action with the City of Dublin. LAFCO retains the right to obtain outside counsel to represent it in this litigation, if necessary. LAFCO will only do so after consultation with the City of Dublin. Section 2. Miscellaneous Provisions. A. Successors and Assigns. This agreement shall apply to, bind and inure to the benefit of successors in interest of the parties hereto, including heirs, assigns, executors, administrators and all other parties, whether they succeed by operation of law or voluntary acts. Agreement between Alameda County LAFCo and City Of Dublin Regarding East Dublin Property Owners' Reorganization B. No Third-Party Beneficiaries. This agreement is entered only for the benefit of the parties executing this agreement and not for the benefit of any other individual, entity or person. C. Amendments. This agreement may be amended in writing by the mutual agreement of the original parties or their successors in interest. D. Applicable Law. This agreement shall be construed and enforced in accordance with the laws of the State of California. E. Counterparts. This agreement may be executed and delivered in counterparts, each of which shall be an original and all of which shall constitute on and the same instrument. IN WITNESS WHEREOF, the parties have executed this agreement the day and year first above written. ALAMEDA COUNTY LOCAL AGENCY CITY OF DUBLIN FORMATION COMMISSION By: Mayor Attest: City Clerk Approved as to form: Approved as to form: LAFCO Legal Counsel City Attorney G:\CC-MTGS~002-qt r3\JU LY~7-16-02\agmt-lafco.DOC J:\wpd\Mnrsw\114\153~Agreement\LAFCO Indemnification Agreement_053102.doc Agreement between Alameda County LAFCo and City Of Dublin Page 2 of 2 Regarding East Dublin Property Owners' Reorganization DRAFT: July 9, 2002 BRADDOCK & LOGAN SERVICES, INC. BUILDERS - DEVELOPERS ESTABLISHED 1947 P. O. BOX 5300 DANVILLE, CALIFORNIA 94526-1076 .j .., ,~ ~ TELEPHONE (925) 736-4000 FACSIMILE (925) 736-4031 July 9, 2002 Andy Byde - Associate Planner City of Dublin 100 Civic Plaza Dublin, CA 94568 Dear Andy: Braddock and Logan agrees to hold City harmless for all costs and expenses, including attorneys' fees, incurred by City or held to be the liability of the City, in connection with City's defense of, or the City's indemnification of LAFCO for LAFCO's costs of defending, LAFCO's actions in any proceeding brought in any state or federal court challenging the LAFCO's actions with respect to the East Dublin Property Owners' Reorganization. Sincerely, Vice President JSL/ne ATTACHMENT 2