CC RESOLUTION 4597RESOLUTION NO. 4597
A RESOLUTION OF THE CITY OF EL SEGUNDO
OPPOSING AB155 (MENDOZA) A BILL IMPOSING AN UNNECESSARY
PROCEDURAL BURDEN ON LOCAL GOVERNMENTS IN MANAGING THEIR
FISCAL AFFAIRS
BE IT RESOLVED by the Council of the City of El Segundo as follows:
SECTION 1: The City Council finds as follows:
A. Under current law, any taxing agency or instrumentality of the state
may file a petition and prosecute to completion bankruptcy
proceedings permitted under the laws of the United States;
B. This bill would provide that a local public entity may only file under
federal bankruptcy law with the prior approval of the California Debt
and Investment Advisory Commission;
C. This bill would impose an unnecessary procedural burden by
requiring a local government entity to obtain approval from a State
Commission before filing for Chapter 9 bankruptcy protection;
D. Most local government agencies are fiscally - responsible; unlike the
State of California whose fiscal house is in shambles and currently
has the worst credit rating among all states.
SECTION 2: The City of El Segundo is concerned that this bill is imposing an
unnecessary procedural burden on local government entities in managing their
fiscal affairs, particularly in light of the fact that municipal bankruptcy in California
has been used by only two cities in 60 years.
SECTION 3: The City of El Segundo strongly opposes AB 155 which would
require local government agencies to obtain the approval of the California Debt
and Investment Advisory Commission before filing for Chapter 9 bankruptcy
proceedings under federal law.
SECTION 4: The City Manager is directed and authorized to communicate the
City Council's policy position on this matter to members of the California
Legislature, the Governor and appropriate state agencies as necessary.
SECTION 5: 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 action of the adoption of the Resolution in the City Council's records and
the minutes of this meeting.
SECTION 6: This Resolution will become effective immediately upon adoption
and will remain effective unless repealed or superseded.
PASSED AND ADOPTED this 5t" day of May 2009.
Kelly McDowelr,
Mayor
ATTEST:
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Cindy Mortesen,
City Clerk
APPROVED AS TO WIRM- j
Mark D. Hensley, CittAttorney
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By: 7/
Karl 1. Berger
Assistant City Attorney