1967 JUN 05 CC MINX 2323
El Segundo, California
June 5, 1967
A Special Meeting of the City Council of the City of E1 Segundo,
California, was held in the Council Chamber of the City Hall of said
City on the above date.
The meeting was called to order by Herman L. McGill, Mayor,
the hour being 4:30 o'clock p.m.
ROLL CALL
Councilmen Present: Carr, Frederick, McElhaney, Nagel and
Mayor McGill;
Councilmen Absent: None.
The City Clerk stated that a Notice of the Special Meeting of
the City Council of the City of E1 Segundo, California, had been
posted on -or near the door of the Council Chamber and that affidavit
of posting was on file.
The Mayor stated the meeting had been called for the purpose
of considering the adoption of two Resolutions in connection with the
settlement of the West Coast Pipe litigation.
City Attorney Bush reviewed the litigation regarding overcharge
for certain pipe purchased by the City during the period January 1,
1954 to August 31, 1962. On May 16, 1967, the Department of Justice
advised that on May 5, 1967, a memorandum of understanding memorial-
izing a settlement of the Western Pipe cases was entered into between
all of the plaintiffs and six of the seven defendants, and that these
settling defendants have agreed to pay to the plaintiffs, as a group,
$21, 275, 000 upon the execution and filing of certain covenants. As
of this date it would appear that each plaintiff with purchases from
the six settling defendants will receive approximately an 8. 8% recovery
on those transactions from this settlement. The City of E1 Segundo had
not purchased pipe from the seventh defendant.
City Attorney Bush then presented for the Council's consideration,
Resolution No. 2190, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA, RE DIS-
TRIBUTION OF SETTLEMENT FUNDS AMONG
PLAINTIFFS OF WEST COAST PIPE CASES.,
which was read.
Moved by Councilman Frederick, seconded by Councilman Nagel,
that Resolution No. 2190 be adopted. On roll call said motion carried
and said resolution was adopted by the following vote:
Ayes: Councilmen Carr, Frederick, McElhaney, Nagel and
Mayor McGill;
Noes: Councilmen None;
Absent: Councilmen None.
Resol'ation No. 2191, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EL SEGUNDO, CALIFORNIA, APPROVING
SETTLEMENT OF ANTITRUST DAMAGE ACTIONS
GENERALLY DESCRIBED AS WEST COAST PIPE
CASES. .
was then presented by City Attorney Bush to the Council for its con-
sideration.
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X 2324
Moved by Councilman Nagel, seconded by Councilman Frederick
that Resolution No. 2191 be adopted. On roll call, said motion carried
and said resolution was adopted by the following vote:
Ayes: Co-,., .-.cilmen Carr, Frederick, McElhaney, Nagel and
Mayor McGill;
Noes: Councilmen None;
Absent: Councilmen None.
A Covenant Not to Sue, attached to Resolution No. 2191,
authorizing the Mayor of this entity to sign for and on behalf of
the City and the City Clerk to attest, was then presented for the
Council's consideration. It was moved by Councilman Frederick,
seconded by Councilman McElhaney that the above Covenant be
approved and the Mayor be authorized to sign for and on behalf
of the City and the City Clerk to attest. Carried by the following
vote:
Ayes: Councilmen Carr, Frederick, McElhaney, Nagel and
Mayor McGill;
Noes: Councilmen None;
Absent: Councilmen None.
No other business to come before the Council at this session,
it was moved by Councilman Nagel, seconded by Councilman Carr
that the meeting adjourn. Motion carried.
APPROVED:
Respectfully submitted,
Eunice U. Creason, City Clerk
f
Mayor
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