CC RESOLUTION 4557RESOLUTION NO. 4557
A RESOLUTION OF THE CITY OF EL SEGUNDO
SUPPORTING AB 2780 (LIEU) A PUBLIC ENTITY PROTECTION BILL
DEALING WITH PUBLIC AGENCY LIABILITY
BE IT RESOLVED by the Council of the City of El Segundo as follows:
SECTION 1: The City Council finds as follows:
A. Public entity liability is an area of deep concern to all local
government agencies;
B. Statutory laws have historically acted to confine and not expand
public entity liability;
C. Court decisions can act to expand public entity liability resulting in
tremendous financial exposure; as in the instance of current on-
going litigation between the City of Hermosa Beach and
Macpherson Oil Company;
D. It is unfair that public entities should be held liable for potential lost
profits damages associated with a breach of contract, as in the
Hermosa Beach case when the breach is caused by the enactment
of a valid initiative.
SECTION 2: The City of El Segundo strongly supports AB 2780 authored by
Assemblymember Ted Lieu to address public entity liability for lost profits
damages for a breach of contract where the breach is caused by passage of a
valid initiative.
SECTION 3: The City Manager is directed and authorized to communicate the
City Council's policy position on this matter to members of the Legislature, the
Governor and administrative agencies as necessary.
SECTION 4: The City Clerk is directed to certify the adoption of this Resolution;
record this Resolution in the book of the City's original resolutions; and make a
minute of the adoption of the Resolution in the City Council's records and the
minutes of this meeting.
SECTION 5: This Resolution will become effective immediately upon adoption
and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this 6th day pf May
ATTEST:
Cindy Mode n,
City Clerk
APPROVED AS
Mark D. Hensle1
m
Kaff H. Berger
Assistant City Atto
K6IIy McDowell,
Mayor
2