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HomeMy WebLinkAboutItem 4.10 CostOfLitigationLAFCO CITY CLERK File # Dl?Q]roJ[Q-a][O] AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 5,2005 SUBJECT: Agreement with Alameda County Local Agency Formation Commission (LAFCo) to IndemnifY LAFCo for the Costs of Litigation Arising from LAFCo's Approval of the Dublin Raneh West Reorganization (Report prepared by John Bakker, Assistant City Attorney) ATTACHMENTS: 1. Draft Resolution Approving Proposed Agreement (attached as Exhibit A) between LAFCo and City of Dublin Regarding Dublin Ranch West Reorganization. Letter from Chang Su~O Un's Authorized Representative Agreeing to IndemnifY City for costs associated with ehalJenge to LAFCo action. 2. RECOMMENDATION~ FINANCIAL STATEMENT: Adopt resolution approving the proposed Agreement with LAFCo and authori7.e the Mayor to execute the Agreement. This agreement would have no fiscal impact. DESCRIPTION: When the Alameda County Local Agency Formation Commission ("LAFCo") approved the Dublin Ranch West Reorganization on May 12,2005, 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 a similar LAFCo condition imposed on the Eastern Dublin Property Owners' Annexation, City Staff and LAFCo legal counsel negotiated such an agreement, and it was approved by the City Council in June of2002. LAFCo staff has proposed that the parties enter into an identical indemnification agreement to satisfY the condition imposed on the Dublin Ranch West Reorganization. This agreement wi11 have no fiscal effect on the City. Chang Su-O Lin has agreed to cover the City's costs in defending any lawsuit arising from the annexation, including challenges to the LAFCo action. Recommendation: Staffrecommends that the City Council adopt the proposed resolution approving the agreement the agreement with LAFCo and authorizing the Mayor to execute the agreement. ____________~~_~~_~_~w___~~__________________________________.__~___________________________~~___________~__ COPIES TO: lObI ITEM NO. If.to G :ICC-MTGSI2005-qtr3IJulyI07-05-05Isr-lafcu ideminficatiou.d"" cJ I~~ RESOLUTION NO. - 05 ********* APPROVING AN AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE ALAMEDA COUNTY LOCAL AGENCY FORMATION COMMISSION (LAFCO) REGARDING THE DUBLIN RANCH WEST REORGANIZA TlON AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the Alameda County Local Agency Formation Commission (LAFCo) required as a condition of approval ofthc Dublin Ranch West Reorganization that the City enter into an agreement with LAFCo to indemnifY LAFCo against any expenses arising from any legal actions chalJenging thc Dublin Ranch West Reorganization; WHEREAS, the Council is familiar with the tenns of the agreement; and WHEREAS, the City Manager has recommended approval of the agreement. NOW, THEREFORE BE IT RESOLVED, that the Agreement between the City of Dublin and the Alameda County Local Agency Fonnation Commission Regarding the Dublin Ranch West Reorganization is hereby approved and the Mayor is hereby authorized and directed to execute the Agreement in substantially the form attached as Exhibit A to the agenda statement. PASSED, APPROVED AND ADOPTED this 5th day of July 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 1-6-05 4-.10 ATTACHMENT 1 2 It> tf AGREEMENT BETWEEN ALAMEDA LOCAL AGENCY FORMATION COMMISSION and CITY OF DUBLIN REGARDING DUBLIN RANCH WEST REORGANIZATION THIS AGREEMENT dated for identification this 6th day of June, 2005, is entered into by and between the Alameda 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 12, 2005, the Alameda LAFCo approved an annexation of 188.9 ± acres of territory to the City of Dublin ("the Annexation"). 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 Annexation. 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 Annexation, or any of LAFCo's actions related thereto, Dublin shall indemnify LAFCo from any costs or liabilities 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 LAFCo'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 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 litigation, if necessary. LAFCo will do so only 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. 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. ~Dbi 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 LOCAL AGENCY FORMATION COMMISSION CITY OF DUBLIN Lou Ann Texeira, Executive Officer Janet Lockhart, Mayor Date: Date: Attest: Attest: LAFCo Clerk City Clerk Approved as to form: Approved as to form: LAFCo Legal Counsel City Attorney 4ot> Lf May 25, 2005 Mike Porto City of Dublin 100 Civic Plaza Dublin, California 94568 Re: LAFCO Re~'()l"tj()n No. 2005-003/Duhlin Ranch West lndemnification Agreement Dear Mr. Porto: Chang Su-O Lin agrees to hold the City of Dublin 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 the Alameda County Local Agency Formation Commission ("LAFCO") for LAFCO's costs of defending, LAFCO's actions in any proceeding brought in any state or federal court challenging LAFCO's actions with respect to the Dublin Ranch West Reorganization. su-O UN es Tong . zed Reprcsentative ATTACHMENT ~