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Resolution No. 6585 I RESOLUTION NO. 6585 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ACKNOWLEDGING THE AUTHORIZATION OF THE EXECUTION OF THE AGREEMENT TO FORM ASSOCIATION AND TO CONDUCT LITIGATION RESPECTING THE ALAMEDA CORRIDOR PROJECT ON JANUARY 17, 1995 4 5 6 WHEREAS, the Ports of Long Beach and Los Angeles 7 ("ports") have been engaged for the past ten years in a long-range 8 effort to plan the future development of both Ports through the 9 year 2020 known as the 2020 Plan; and 10 WHEREAS, studies have been performed due to the growing 11 concerns about the ability of the ground transportation system to 12 accommodate increasing levels of traffic from the Ports and the 13 impacts of projected train traffic and truck traffic on the 14 communities north of the Ports wherein it was determined that 15 16 consolidating all train traffic on an up-graded Southern Pacific San Pedro branch right-of-way and some truck traffic on the 17 redesigned Alameda Boulevard (hereinafter referred to as the 18 IAlamedaCorridor") would be the most cost effective alternative 19 to address the anticipated negative impacts; and 20 21 WHEREAS, the Alameda Corridor Transportation Authority ("ACTA") was formed pursuant to a Joint Exercise of Power 22 Agreement between the cities of Long Beach and Los Angeles (the 23 "JPA") on August 31, 1989 to achieve the objective of constructing 24 and developing the Alameda Corridor; and 25 WHEREAS, the JPA required ACTA to be administered by a 26 Governing Board of 15 members and all action to be taken by ACTA 27 required a majority vote by its Governing Board; and 28 I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, in recognition of the legitimate and significant concerns of the cities of Compton, Lynwood, South Gate and Vernon ("Cities"), each city, as well as various other public agencies, became equal members of ACTA's Governing Board and, therefore, the cities were able to provide input and participate equally in providing direction to the proposed development of the Alameda Corridor within their respective communities; and WHEREAS, the cities of Long Beach and Los Angeles during December of 1993 executed an Amendment to the JPA (the "Third Amendment") which delegates new and broad powers to the ACTA Finance Committee and has removed the Finance Committee from under the Governing Board's supervision and control, thereby drastically limiting the cities' involvement in important issues raised by the Alameda Corridor project; and WHEREAS, the cities contend that the Third Amendment improperly delegates power to the Finance Committee in violation of the Joint Powers Act (Gov. Code ~~ 65000 et seq.) and other relevant law and, therefore, all final action taken by the Finance Committee pursuant to said Third Amendment is invalid; and WHEREAS, the cities believe that it is necessary to initiate litigation to enjoin the cities of Long Beach and Los Angeles from taking action under the Third Amendment which does not comply with the Joint Powers Act; and WHEREAS, the cities desire to form an association in order to join together to assert common rights and privileges being affected by the actions of the cities of Los Angeles and Long Beach, the Ports of Los Angeles and Long Beach, and the Harbor Commissions of Los Angeles and Long Beach; and -2- I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the cities desire to execute an Agreement to Form Association and to Conduct Litigation to satisfy the requirements of Public Resources Code ~ 21177{c); and WHEREAS, the City Council in closed session on January 17, 1995, considered these matters and authorized the Mayor to execute the Agreement and authorized the City Attorney, in accordance with the Agreement, to file the lawsuit against the cities of Los Angeles and Long Beach, the Ports of Los Angeles and Long Beach and the Harbor Commissions of Los Angeles and Long Beach, and that this Council action would be placed in the City Council minutes after the litigation was filed; and WHEREAS, the litigation was filed in the Superior Court of the County of Los Angeles on January 30, 1995, and was assigned Case No. BS 032326. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The city council of the City of Vernon does hereby find and determine that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby acknowledges its approval of the Agreement to Form Association and to Conduct Litigation, on January 17, 1995, and the authorization to the City Attorney to file litigation pursuant to said authorization, and the City Council hereby orders said Agreement to be received and filed by the City Clerk. III III III -3- I SECTION 3: The City Clerk of the City of Vernon shall 2 3 certify to the passage of this resolution and thereupon and thereafter the same shall be in full force and effect. 4 5 this 7th day of February, 1995. ~~. ...-- EONIS C. MALBU I Mayor APPROVED AND ADOPTED 6 7 ATT^-- .~ BRUCE V. MALKENHORST, city 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -4- I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss I, BRUCE V. MALKENHORST, city Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 6585, was duly adopted by the City council of the City of Vernon at a regular meeting of the City council duly held on Tuesday, February 7. 1995, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk -5- J July.19, 1995 To: Eduardo Olivo, Es ire ~ ~ ~ From: Gloria J. Oros o Chief-Deputy City .Clerk Re: AGREEMENT TO FORM ASSOCIATION TO CONDUCT LITIGATION (ALAMEDA CORRIDOR) I have reviewed the file on the. .above referenced matter and have ` found that we have one fully executed agreement by the City of Vernon-and a FAX copy of a fully executed agreement from the City of Lynwood. We do not have anything in our files from the cities of Compton"or South Gate, and I would appreciate it, if you are able to obtain signature pages from those `cities, if you would forward them to us fore our files. If you have any questions, do not hesitate to contact me. GJO/hr Enclosure MEMORANDUM TO: Gloria Orosco, City of Vernon FROM: Eduardo Olivo DATE: July 17, 1995 SUBJECT: City of Vernon v. Los Angeles and L ng Beach/Agreement to Form the Association to Conduct~~~tigation As you will probably recall, before initiating the above lawsuit to challenge the `Third Amendment to the Joint Power's Agreement., the cities of Vernon.,. Compton,. South G to and Lynwood executed an agreement to form the Association for~tgation of Transportation Impact of Ports' Expansion. l,~ The cities who signed the agreement were supposed to send us five executed original signature pages.. We have received a set from Vernon and South Gate. However, my .files indicate that we have never received a .set from Compton or Lynwood . Did your office ever receive the executed signature pages from those cities? FEES-<1 ~-95 THU 11 ~ 20 P, O l itY ~ Y~~~l~ v~' Ctfy ../ldeettnq (~'I,aQQenges ~ r 11330 BU~~IS ROAD.. ~ ~ ~ LYNWOpp,.CAI.IFORNIA 902fi2 (310) 603~022~ FF~~~~~1lLE ~~~EF! SHEET i ~ ~itt~ntt~n' _tz~~!_ _ ors R '~1.i. ~Qv~~a~ ai~e~ct ~ ~ 1 II t1 Q FEB-16-95 THU 1120 P, 02 r i ~ EXECUTION COPY 1 AGREEMENT 'fO FORM ASSOCIATION ~ AND TO CONDUCT LI IGATION 3 THIS.. AGREEMENT is made, entered into-and executed in 4 quadruplicate originals, a copy of which may be considered and 5 used as the original, hereof for all purposes, 6 7 8Y AND.$ETWEEN CITY QF COMPTON (hereinafter referred to as $ nCOMPTON") . 205 S. Willowbrook Avenue Compton, California 90220 AND CITY.. OF LYNWOOd 10 (hereinafter referred o as li "LYNWOOD") 133p'Bullis Road 12 Lynwood, California 90262 AND CITY OF SOUTH GATE 13 (hereinafter referred to as 14 "SOUTH GATE") 8650 California-Avenue 1S South Gate, California 90280 16 AND CITY OF VERNON (hereinafter referred to as 17 "VERNON") 4305 Santa Fe Avenue 18 Vernon, California 90058-0805 19 (referred to individually as "CITY' and collectively as "CITIES") 24 RECITALS 21 A. For about ten years, the Ports of Lang Beach and Los Angeies ("PORTS") have been engaged in a long-range effort to `plan 23 the future development of both Ports through the year 2020, 24 known as the 2020 Plan. 25 8. Generally, there have been growing concerns about the ability 26 of the ground transportation system to accommodate increasing 27 levels of traffic from the•PORTS. Specifically,.there is ,28 concern over the 'impacts of~projected train traffio and truck FEB-16-95 THU 1121 P, 03 1 traffic'on the'cammunities north of the PORTS. After .various ~ studies, it was determined. that consolidating all train 3 traffic on an up-graded .Southern pacific San Pedro branch 4 right-of-way~and some truck tr~:ffic on the redesigned Alameda aoulevard (hereinafter referred to as the "Alameda Corridor") 5 8 would be the most :cost effective alternative to address the 7 anticipated negative-impacts. 8 C. The CITIES have no objection to .the consolidation of rail 9 movement and truck movement in one corridor, and generally 10 support the construction of the Alameda Corridor.' 31 Nevertheless, the explosive expansion of the PORTS has- ,I2 resulted in substantial adverse train and truck impacts on 13 thy.communities of each CITY. Therefore, each CITY has Z4 significant and important concerns regarding the appropriate 15 mitigation measures wh ch must be taken to reduce the 16 negative impacts Qn their respective communities. In this 17 regard, the CITIES are .concerned about the equitable setting 18 of priorities for program elements, and timely implementation 18 of .the Alameda Corridor Prc~j'ect. 20 D. The A ameda Corridor Transportation Authority {"ACTA") was 21 formed puXSUant to a Jaint Exerciser of Power Agreement 22 between. the Cities. of Long Beach and'hos Angeles (the "JPA") 23 on August 31, 1989. ACTA was farmed to achieve the objective 24 of constructing and developing thee-Alameda Corridor. The JPA 25 required ACTA to be administered by a Governing Board of 15 26 members. All. action to be taken by ACTA required a majority 27 vote by its Governing Boax-d.: 28 E. Tn recognition of the legitimate and significant concerns of -2- FEB-16-95 THU 11;22 P, 04 . , 1 the CITIES, each CI'~Y, as well as various Other public 2 agencies, became equal :members of ACTA's Governing Board. 3 Consequently, the CITIES were able tp provide input and ~ .participate equally;in providing direction to the proposed. ~ development. of the Alameda Corridor within their respective communities. 7 F. Nevertheless, the Cities of Long Beach and Los .Angeles have recently. executed an Amendment;to the:JPA ("the Third ' 9 Amendment"). The Third Amendment delegates new .and broad 10 powers to the ACTA Finance Committee. Further, the Third 13 Amendment has removed the Finance Committee from under the 12 Governing Baard.'s supervision-and control. The Governing 13 gaard is now completely blocked fxom considering, reviewing, 14 approving or voting on-..any ...actions taken by the Finance 15 Committee pursuant to the. powers delegated by the Third. 16 Amendment. Therefore,_the Third Amendment has the effect of 17 'drastically limiting the CITIES involvement in important issues raised by the Alameda Corridor project. 18 19 G• The CITIES believe that the'Third Amendment improperly 20 delegates power to the Finance Committee in violation of the ~I 21 Joirit Powers-Act (Gov.`Code §G5000,;e se and other 22 relevant. law. Hence, the CITIES believe that the Third 23 Amendment, at~d all final action taken by the Finance 24 Committee without Governing-Board approval pursuant to said Q5 Third Amendment,` is invalid. 2g H. The CITIES intend to form an association in order. to join 27 together to assert common. rights and privileges being 28 affected by the actions oP the cities of Las Angeles-and. Long -3- FEB-16-95 THU 11;22 P. 1 Beach and by the actions of the Los Angeles Harbor Commission 2 and the-Long Beach Harbor Commission. Such common rights may 3 include the initiation of legal challenges to actions 4 affecting such rights. 5 I. The CITIES believe that. it is necessary to bring a lawsuit tv 6 enjoin the Cities of Lang Beach. and Los Angeles from taking action under the Third Amendment which does not comply with the Joint Powers Act. 9 J. VERNON has agreed t4 fund and conduct the litigation 10 challenging the Third Amendment, provided that each CITY Zl agree to join in the litigation, that the`CITIES:..form an 12 association for purposes of such litigation which will 13 satisfy .the requirements of :public Resources Code Section 14 21177(c), and that.-each CITY agree to cooperate with Counsel 15 far VERNON in the conduct of such. litigation. 16 NOW, THEREFORE, FOR AND. IN CONSIpERATION OF THE MUTUAL 17 COVENANTS AND CONDITIONS HEREIN,: THE CITIES AGREE AS FOLLOWS: 18 SEC'T'ION 1: ASSOCIATION . 19 The CITIES agree to associate together as the Association 20 for the Mitigation of Transportation Impacts of port$ Expansion 2Z (the "Association"). The purpose of this Association shall be to 22 cooperate in bringing a legal challenge to unlawful action taken.. 23 pursuant to the Third Amendment which was executed by the Cities 24 of Long Seach and Las Angeles, and any other necessary .legal" I, 25 challenges to any other. action taken with; regard to the II 26 development and construction of the: Alameda Cvx'ridor provided such 27 other legal challenges are..approved by each CITY. -4- FEB-16-95 THU 1123 _.1 SECTION 2: AUTHORIZING_ LITIGATION. 2 The City Council of e$ch CITY hereby authorizes each fiITY to enter rota joint litigation to require. the Cities of 'Long SeaCh 4 and Los Angeles to `comply with the Joint Powers Act, and other 5 law, with respect o the Third Amendment... Further, the•City g Council of each CITY may authorize any .other litigation which:-may 7 be deemed necessary:.by the CITIES pursuant t4 this Agreement as g part of the purpose of `said Association. g SECTION 3: COST-AND CONDUCT-OF LITIGATION. 14 :Upon the approval of all `CITIES, VERNON shall pay the 11 entire Cost to conduct-the litigation to require the Cities of 12 Long Beach and: Los Angeles to comply with-the Joint Pawers.Act, 13 and other law,.e~nd challenging actions taken pursuant to the Third 14 Amendment and shall be responsible for the conduct of such. 15 litigation. VERNON shall include the CITIES in any settlement lg discussions if such are requested or offered by the Cities of Long lry Beach and. Los Angeles. 1$ SECTION 4: COOPERATION WITH CONDUCT OF LITIGATION. ~lg The CITIES .agree to cooperate with counsel conducting the 'I 20 litigation by communicating with said counsel and by furnishing zl informationrelated_to the invalid acts-taken pursuant to the`' 82 Third Amendment, and any -other information necessary to the 23 conduct. of such litgat~,an. 24 SECTION 5: CONTTNUANCE_OF ASSOCIATION. 25 The CITIES intend that the Association continue in 26 existence apart from the litigation initiated to challenge .the 27 validity of the Third Amendment, and any action taken by the 28 Finance Committee pursuant to the Third Amendment. The --5- FEB-16-95 THU 11 ~ 24 P, 07 1 Association sha11 cantinu~ to exist for the purposes of taking any 2 other necessary legal challenges to anyother action taken with ~ regard to the development and construction of the Alameda 4 Corridor, provided such legal challenge is approved by each CITY. 5 SECTION 6:` NOTrCF8. g Each CITY agrees to designate an employee as contact person with respect_to the conduct of litigation initiated 8 pursuant to this Agreement, including any settlement discussions. g In addition, service of any notices shall be sent to the CITIES. 10 via United States Postal Service, postage prepaid, to the CITIES 11 aaaressea as follows: 12 ATTN CITY MANAGER :CITY OF COMPTON 13 205 S WILLOWBROOK AVE COMPTON CA 902.20 14 ATTN CITY MANAGER' 15 CITY OF LYNWOOD 11330 BULLIS ROAD 26 _LYNWOOD CA 90262 17 ATTN CITY MANAGER CITY OF 'SOUTH GATE 18 8650 CALYFORNIA-AVE- SOUTH GATE CA 9028Q ~9 ATTN CITY ADMINISTRATOR 20 CITY OF VERNON 4305 SANTA FE AVE 21 VERNON CA 9.0058-0805 22 SECTION 7: ASSIGNMENT PROHIBITED. 23 No party-to this Agreement may assign any right or 24 obligation pursuant to this Agreement except-with the. prior 25 express written consent of the other parties. Any other attempted 2g or, purported assignment of any right or obligation. pursuant to 2q this .Agreement shall be void and of no effect. 28 -6- FEB-16-95 THU 1125 P. 08 Z SECTION 8: FXECUTTON BY COUNTERPARTS. Q This agreement .may be executed by any number of 3 ..counterparts, and upon execution by all Parties, each executed 4 counterpart shall have the same .force and 'effect as an original ~ instrument and as if all Parties had signed the same instrument. 6 Any signature page of this agreement may be detached from any ~ .counterpart of this agreement without impairing the legal effect g of any signature thereon., and may be 'attached to anothex 9 counterpart of this agreement identical in form hereto but having: 10 attached to it one or more signature pages. ZZ SECTION 9: SIGNATURE CLAUSE. 12 The signatories hereto represent that they .have been 13 appropriately authorised to enter into this agreement an behalf of 14 the Party for~whom they sign. when fully executed, this agreement _15 .will be effective as of the `30th day. of :January, 1995. 16 IN WITNESS WHEREOF, each CITY has executed this 17 Agreement.. is III. zs 24 21 22 23 24 25 26 27 2~ FEB-16-95 THU 1125 P, 09 ,F GI~'Y OF LYNWOOD 1 - ~ DA'V'E OF ..EXECUTION : BY : ~~~i ~ ~ ~ ~ - ~ Tl'rLE: ~"1CA 4 5 ATTEST:', 6 BY: 7 TITLE: + 8 9 AppROVED AS TO-FORM: 10 BY : :.r 7,1 TITLE: or~rv 12 13 Seal: 14 15 16 - 17 18 19 20 21 i 22 \ 23 2A~ - 25- 26 27 28 ' -9- • February 6, 1995 To: David B. Brearley, City Attorney From: Gloria Orosco, Chief Deputy City Clerk Re: ALAMEDA CORRIDOR - AGREEMENT TO FORM ASSOCIATION- AND TO CONDUCT LITIGATION In accordance with your letter dated January 30,1995., enclosed herewith .are five (5) originally executed .signature pages from the City of Vernon.. Please remember to forward to us a conformed agreement which .includes original signature pages from each participating agency. Thank you. GJO/hr CITY COUNCIL DAVID B. BREARLEY City Attorney LEONIS C. MALBURG FAX: (818) 330-5818 Mayor VICTOR H. VAITS THOMAS A. YBARRA Director of Community Services & Water Mayor Pro-Tem FAX: (213) 588-2761 Wm. "BILL" DAVIS KENNETH J. DeDARIO Councilman Director of Light & Power H. "LARRY" GONZALES FAX: (213) 583-1983 Councilman DAVE TELFORD W. MICHAEL McCORMICK Fire Chief Councilman FAX: (213) 581-1385 LOUIS ROSENKRANTZ BRUCE V. MALKENHORST Police Chief City Administrator/City Clerk CITY BALL FAX: (213) 581-1178 FAX: (213) 581-7924 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 In Reply Refer to: TELEPHONE (213) 583-8811 MEMORANDUM TO: Mr. Chris Silva, South Gate Mr. Howard Caldwell, Compton Mr. Faustin Gonzales, Lynwood Mr. Bruce V. Malkenhorst, Vernon FROM: David B. Brearley, City Attorney, Ver n ~t~ DATE: January 30, 1995 SUBJECT: Alameda Corridor - Agreement to Form Association and to Conduct Litigation Enclosed please find the final Agreement to Form Association and to Conduct Litigation. In accordance with Section 8 of the Agreement, it is only 1 ;~n'ecessary for your city to sign a counterpart of the Agreement. Therefore, enclosed please find for signature five copies of the signature page concerning your City. Please return all signed copies to me at the following address: 2440 S. Hacienda Blvd., #223 Hacienda Heights, CA 91745 Upon execution by all parties, all of the signed signature pages from each City will be forwarded to you to attach to the Agreement. If you have any questions, please contact me. DBB:jl ® Enclosure - Via Express Mail _ I, CITY COUNCIL DAVID B. BREARLEY City Attorney LEONIS C. MALBURG FAX: (818) 330-5818 Mayor VICTOR H. VAITS THOMAS A. YBARRA Director of Community Services & Water Mayor Pro-Tem FAX: (213) 588-2761 Wm. "BILL" DAMS KENNETH J. DeDARIO Councilman Director of Light & Power H. "LARRY" GONZALES FAX: (213) 583-1983 Councilman DAVE TELFORD Fire Chief W. MICHAEL McCORMICK FAX: (213) 581-1385 Councilman LOUIS ROSENKRANTZ BRUCE V. MALKENHORST T v u A j' T Police Chief City Administrator/City Clerk CIS' 1 1it~LL FAX: (213) 581-1178 FAX: (213) 581-7924 !n Reply Refer to: 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (213) 583-8811 ` , P"'', January 17, 1995 Y: 4 CONFIDENTIAL-ATTORNEY WORK PRODUCT Honorable-Paul Richards Mayor, City of Lynwood 11330 Bullis Road Lynwood, CA 90262 Honorable Albert Robles Mayor, City of South Gate 8650 California Avenue South Gate, CA 90280 Honorable Ronald J. Green Councilman, City of Compton 205 S. Willowbrook Avenue Compton, CA 90220 Honorable Thomas A. Ybarra Mayor Pro Tem, City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058-0805 Re: Action to Contest the Validity of the Third Amendment to the Joint Powers Agreement Gentlemen: As you know, it has been our continuing collective opinion that the Third Amendment to the Joint Powers Agreement ("Third Amendment") which was executed by the Cities of Long Beach and Los Angeles, has improperly delegated powers to the Finance Committee. In fact, during the Alameda. Corridor Transportation Authority ("ACTA") Governing Board meeting on April 14, 1994, Jim Cragin, with the support of Mayor Richards, raised this issue to the Board and ACTA's general counsel, Mr. Swan. i`. Messrs. Richards, Robles, Green, and Ybarra Page 2 January 17, 1995 Originally, the Joint Powers Agreement ("JPA") required ACTA to be administered by ACTA's Governing Board.. The original JPA also established a three-member Finance Committee which was to perform certain limited duties which were subject to approval by the Governing.: Board. Therefore, although certain duties were assigned to the Finance Committee, the actions of the Committee were under the direct control and supervision of the Governing Board. This structure remained intact until the execution of the Third .Amendment. The Third Amendment now delegates a broad range of powers to the Finance .Committee. These powers include the ability to make decisions regarding the expenditure of funds, the- borrowing of money, the setting of any charges or rates .for the use of the Alameda Corridor and the awarding of contracts to be funded by funds provided by the Ports. The Third Amendment allows the Finance Committee to take these actions without any review or supervision by the Governing Board. Therefore, because our cities only have one vote on the newly created seven member Finance Committee, our representation in the decision-making process has been drastically reduced. This creates significant concern regarding our ability to assure that our interests are properly represented. The delegation of these broad powers appears to be in .violation of the Joint Powers Act (Gov. Code § 65000, et sea.), which governs the formation of all joint powers agreements. After the issue was raised at the Governing Board meeting by Jim Cragin and Mayor Richards, the City of Long Beach retained the law firm of O'Melveny and Myers to render a Tegal opinion regarding the delegation. Nevertheless, the opinion proffered by O'Melveny and Myers appears to contain an incomplete and inaccurate analysis. Therefore, we disagree with the conclusions contained in that. opinion. It is our belief that the delegation is improper and cannot be supported based on the action taken to date, and, therefore, that any action taken by the Finance Committee pursuant to the Third Amendment, without approval of the Governing Board, is. improper. The Joint Powers-Act permits the Cities of Long Beach and Los Angeles to enter into an agreement in order to create a separate public entity (ACTA) to exercise the powers common to both cities. However, the Joint Powers Act restricts the manner in which such powers may be exercised. to the manner in which a designated party to the contract may exercise similar powers; in this case, the restrictions imposed upon the City of Los Angeles are applicable. For example, the Act would permit the delegation of the powers conferred upon the Finance Committee in the Third Amendment, i.e., the power to establish policy for the expenditure of funds, the power to tax and impose rates and charges, and the power to enter into contracts, only if the City of Los .Angeles' Charter, and ~ I.: Messrs. Richards, Robles, Green, and Ybarra Page 3 January 17, 1995 general law, permits the City Council to delegate such important decisions to a "committee." Nevertheless, the delegation appears to be inconsistent with the Charter and, therefore, in violation of the Joint Powers Act. It is our belief that it is critical to take immediate action to protect our respective interests. Therefore, it is necessary to take legal action to enjoin the Cities of Long Beach and Los Angeles from taking action under the Third Amendment which does not comply with the Joint Powers Act. In that regard, we .propose that our Cities form an association in order to join together to assert common rights and privileges -being affected by the Cities of Los Angeles and Long Beach and by actions of the Los Angeles Harbor Commission and the Long Beach Harbor Commission. I have proceeded to prepare a draft of such an agreement and have enclosed it .for your review and comments.. Please contact me so we may discuss this matter as soon as possible.- Very truly yours, ~ ~ David B. Brearley City Attorney DBB:EO:jl Enclosure cc: Mr. Bruce V. Malkenhorst, City Administrator DRAFT 1 /17/95 AGREEMENT TO FORM ASSOCIATION AND TO CONDUCT LITIGATION THIS AGREEMENT is .made, entered into and executed in quadruplicate originals, a copy of which may be considered and used as the original hereof for all purposes, BY AND BETWEEN CITY OF COMPTON (hereinafter referred to as "COMPTON") 205 S. Willowbrook Avenue Compton, California 90220 AND CITY OF LYNWOOD (hereinafter referred to as "LYNWOOD") 1330 Bullis Road Lynwood, California 90262 AND CITY OF SOUTH GATE (hereinafter referred to as "SOUTH GATE") 8650 California Avenue South Gate, California 90280 AND CITY OF VERNON (hereinafter referred to as "VERNON".) 430.5 Santa Fe Avenue Vernon,, California 90058-0805 (referred to individually as "CITY" and collectively as "CITIES") RECITALS A. For about ten years, the Ports of Long Beach and Los Angeles ("PORTS") have been engaged in a long-range effort to plan the future development of both Ports through the year 2020, known as the 2020 Plan a B. Generally, there have been growing concerns about the ability of the ground transportation system to accommodate increasing levels of traffic from the PORTS. Specifically, there is concern over the impacts of projected train traffic and truck traffic on the communities north of the PORTS. After various studies, it was determined that consolidating all train traffic on an up-graded Southern Pacific San Pedro branch right-of-way and some truck traffic on the redesigned Alameda Boulevard (hereinafter referred to as the "Alameda Corridor") would be the most cost effective alternative to address the anticipated negative impacts. C. The CITIES-have no objection to the consolidation of rail movement and truck movement in one corridor, and generally support the construction of the Alameda Corridor. Nevertheless, the explosive expansion of-the PORTS has resulted in substantial adverse train and truck impacts on the communities of each CITY. Therefore, each CITY has significant and important concerns regarding the appropriate mitigation measures which must be taken to reduce the negative impacts on their respective communities. In this regard, the CITIES are concerned about the equitable setting of priorities for program elements, and timely implementation of the Alameda Corridor Project. D. The Alameda Corridor Transportation Authority ("ACTA") was formed pursuant to a Joint. Exercise of Power Agreement between the Cities of Long Beach and Los Angeles (the "JPA") on August 31, 1989. ACTA was formed to achieve the objective of constructing and developing the Alameda Corridor. The JPA required ACTA to be administered by a Governing Board of 15 members. All action to be taken by ACTA required a majority -2- vote by -its Governing Board. E. In recognition of the legitimate and .significant concerns of the CITIES,-each CITY, as well as various other public agencies, became equal members of ACTA's Governing Board. Consequently, the CITIES were able to provide input and participate equally in providing direction to the proposed development of the Alameda Corridor within their respective communities. F. Nevertheless, the Cities of Long Beach and Los Angeles have recently executed an Amendment to the JPA ("the Third Amendment"). The Third Amendment delegates new and broad powers to the ACTA Finance Committee. Further, the Third Amendment has removed the Finance Committee from under the Governing Board's supervision and control. The Governing Board is now completely blocked from considering, reviewing, approving or voting on any actions taken by the Finance Committee pursuant to the powers delegated by the Third Amendment. Therefore, the Third Amendment has the effect of drastically limiting the CITIES' involvement in important issues raised by the Alameda Corridor project. G. The CITIES believe that the Third Amendment improperly delegates power to the Finance Committee in violation of the Joint Powers Act (Gov. Code §65000, et seq.) and other relevant law. Hence, the CITIES believe that the Third Amendment, and all final action taken by the Finance Committee without Governing Board approval pursuant to said Third Amendment, is invalid. -3- H. The CITIES intend to-form an association in order to join together to assert common rights and privileges being affected by the actions of the Cities of Los Angeles and Long Beach and by the actions of the-Los Angeles Harbor Commission and the Long Beach Harbor Commission. Such common. rights may include the initiation of legal challenges to actions affecting such rights. I. The CITIES believe that it is necessary to bring a lawsuit to enjoin the Cities of Long Beach and Los Angeles from taking action under the Third Amendment which does not comply with the Joint Powers Act. J. VERNON has agreed to fund and conduct the litigation challenging the Third Amendment,. provided that each CITY agree to join in the litigation, that the CITIES form an association for purposes of such litigation which will satisfy the requirements of Public .Resources Code Section 21177(c), and that each CITY agree to cooperate with counsel for VERNON in-the conduct of such litigation. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL - .COVENANTS AND CONDITIONS HEREIN, THE CITIES AGREE A5 FOLLOWS: SECTION 1: ASSOCIATION. The CITIES agree to associate together as the Association for the. Mitigation of Transportation Impacts of Ports Expansion (the "Association"). The purpose of this Association shall be to cooperate in bringing a legal challenge to unlawful action taken pursuant to the Third Amendment which was executed by the Cities of Long Beach and Los Angeles, and any other necessary legal challenges to any other action taken with regard to the -4- development and construction of the Alameda Corridor provided such other legal challenges are approved by each CITY. SECTION 2: AUTHORIZING LITIGATION. The City Council of each CITY hereby authorizes-each CITY to enter into joint litigation to require the Cities of Long Beach and Los Angeles to comply with the Joint Powers Act, and other law, with respect to the Third Amendment. Further, the City Council of-each CITY may authorize any other litigation which may be deemed necessary by the CITIES pursuant to this Agreement as part of the purpose of said Association. SECTION 3: COST AND CONDUCT OF LITIGATION. Upon the approval of all CITIES, VERNON shall pay the entire cost to conduct the litigation to require the Cities of Long Beach and Los Angeles to comply with the Joint Powers Act, and other law, and challenging actions taken pursuant to the Third Amendment and shall be responsible for the conduct of such litigation. VERNON shall include the CITIES in any settlement discussions if such .are requested or offered by the Cities of Long -Beach and Los Angeles. SECTION 4: COOPERATION WITH CONDUCT OF LITIGATION. The CITIES agree to cooperate with counsel conducting the litigation by communicating with said counsel and by furnishing information related to the invalid. acts taken pursuant to the Third Amendment, and any other information necessary to the conduct of such litigation. SECTION 5: CONTINUANCE OF ASSOCIATION. The CITIES intend that the Association continue in existence apart from the litigation initiated to challenge the -5- validity of the Third Amendment, and any action taken by the Finance Committee pursuant to the Third Amendment.. The Association shall continue to exist for the purposes of taking any other necessary legal challenges to .any other action taken with regard to the development and construction of the Alameda Corridor, provided such legal challenge is approved by each CITY.. SECTION 6: NOTICES. Each CITY agrees to designate an employee as contact person with respect to the conduct of litigation initiated pursuant to this Agreement, including any settlement discussions. In addition, service of any notices shall be sent to the CITIES via United States Postal Service, postage prepaid, to the CITIES addressed as follows: ATTN CITY MANAGER CITY OF COMPTON 205 S WILLOWBROOK AVE COMPTON CA 90220 ATTN CITY MANAGER CITY OF LYNWOOD 11330 BULLIS ROAD LYNWOOD CA 90262 ATTN CITY MANAGER CITY OF SOUTH GATE 8650 CALIFORNIA AVE SOUTH GATE CA 90280 .ATTN CITY ADMINISTRATOR CITY OF VERNON 4305 SANTA FE AVE VERNON CA 90058-0805 SECTION 7: ASSLGNMENT PROHIBITED. No party to this Agreement may assign any right or obligation pursuant to this Agreement except with the prior express written consent of the other parties. Any other attempted or purported assignment of .any right or obligation pursuant to -6- this Agreement shall be void and of no effect. SECTION 8: EXECUTION BY .COUNTERPARTS. This agreement may be executed by any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page of this agreement may be detached from any counterpart of this agreement without impairing the legal effect of any signature thereon, and may be attached to another counterpart of this agreement identical in form hereto but having attached to it one or more signature pages.. SECTION 9: SIGNATURE CLAUSE. The signatories hereto represent that they have been appropriately authorized to enter into this agreement on behalf of the Party for whom they sign. When fully executed, this agreement t' will be effective as of the /5~ day of 1995. IN WITNESS WHEREOF, each CITY has executed this Agreement. -7- CITY OF COMPTON -DATE OF EXECUTION: BY: TITLE: ATTEST' BY: TITLE: APPROVED AS TO FORM: BY: TITLE: Seal: -8- CITY OF LYNWOOD DATE OF EXECUTION: BY: TITLE: ATTEST: BY: TITLE: APPROVED AS TO FORM: BY: TITLE• Seal: -9- CITY OF SOUTH GATE DATE OF EXECUTION: BY: TITLE:. ATTEST: BY: TITLE: APPROVED AS TO FORM: BY: TITLE: Seal: -10- _ _ _ _ CITY OF VERNON BY: TITLE• Mayor DATE OF EXECUTION:. ATTEST: BY: BRUCE V. MALKENHORST TITLE: City Clerk APPROVED AS TO FORM: BY: DAVID B. BREARLEY TITLE: City Attorney Seal: -11-