Legislation Details

File #: 24-065    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 3/6/2024 In control: City Council
On agenda: 3/12/2024 Final action:
Title: AUTHORIZATION TO WAIVE LEGAL CONFLICTS AND ENTER INTO A JOINT DEFENSE AGREEMENT WITH THE CITY OF LA VERNE TO ALLOW THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA) TO RETAIN KUTAK ROCK, LLP TO JOINTLY DEFEND THE CITIES OF CLAREMONT AND LA VERNE IN A DEFENSE OF GOVERNMENT CLAIMS AND ANY SUBSEQUENT LITIGATION REGARDING STONE CANYON GROUNDWATER SEEPAGE AND FLOODING (FUNDING SOURCE: CJPIA)
Attachments: 1. Letter from Kutak Rock, LLP Dated February 27, 2024, 2. Draft Joint Defense, Common Interest, and Confidentiality Agreement, 3. Draft Conflict Waiver

TO:                     ADAM PIRRIE, CITY MANAGER

 

FROM:                     ALISHA PATTERSON, CITY ATTORNEY

 

DATE:                     MARCH 12, 2024

Reviewed by:

City Manager: AP

                     

SUBJECT:

 

Title

AUTHORIZATION TO WAIVE LEGAL CONFLICTS AND ENTER INTO A JOINT DEFENSE AGREEMENT WITH THE CITY OF LA VERNE TO ALLOW THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA) TO RETAIN KUTAK ROCK, LLP TO JOINTLY DEFEND THE CITIES OF CLAREMONT AND LA VERNE IN A DEFENSE OF GOVERNMENT CLAIMS AND ANY SUBSEQUENT LITIGATION REGARDING STONE CANYON GROUNDWATER SEEPAGE AND FLOODING (FUNDING SOURCE: CJPIA)

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SUMMARY

 

In April of 2023, several residents of the Stone Canyon community experienced groundwater seepage and flooding on their properties. To date, eleven of these households have submitted government claims against the Cities of Claremont and La Verne. Both Cities are members of the California Joint Powers Insurance Authority (CJPIA). Both Cities tendered these claims to the CJPIA, and the CJPIA have confirmed coverage to both Cities.

 

The CJPIA would like to retain Kutak Rock, LLP to jointly defend Claremont and La Verne with respect to these Stone Canyon claims and any subsequent litigation. To do so, the Cities of Claremont and La Verne must approve a conflict waiver and joint defense agreement.

 

RECOMMENDATION

 

Recommended Action

Staff recommends the City Council authorize the City Manager to execute a conflict waiver and joint defense agreement to allow the CJPIA to retain Kutak Rock, LLP to jointly defend the Cities of Claremont and La Verne with respect to the Stone Canyon groundwater seepage and flooding claims and any subsequent litigation.

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ALTERNATIVE TO RECOMMENDATION

 

In addition to the recommendation, there is the following alternative:

 

•                     Request additional information from staff.

 

FINANCIAL REVIEW

 

The CJPIA has determined the City has insurance coverage for the Stone Canyon groundwater seepage and flooding claims and has indicated they will not be reserving any rights for these claims. 

 

ANALYSIS

 

After record rainfall in the winter of 2023, several households in the Stone Canyon community experienced groundwater seepage and flooding in April of 2023. In October of 2023, eleven of these households submitted government claims against the Cities of Claremont and La Verne alleging the Cities’ and other agencies’ actions or inactions caused the groundwater seepage and flooding. All of the claimants are currently represented by Kiesel Law, LLP. The Cities of Claremont and La Verne are both members of CJPIA, who has confirmed coverage of the claims.

 

CJPIA has requested authorization from the Cities of Claremont and La Verne to retain Kutak Rock, LLP to jointly defend Claremont and La Verne in this dispute and any resulting litigation. Joint defense of claims of this nature is time and cost effective and is unlikely to result in conflicts. In the unlikely event that a conflict arises, either City or both Cities can terminate the agreement and obtain separate legal counsel.

 

A letter from Edwin J. Richards of Kutak Rock, LLP outlining the proposed arrangement is included as Attachment A. Drafts of a joint defense agreement and conflict waiver are included as Attachments B and C. For this arrangement to go forward, the City of La Verne would also need to approve the agreement and waiver. Staff recommends the City Council authorize the City Manager to execute the agreement and waiver in substantially the same substance and form as these attachments (with the understanding that the City of La Verne, CJPIA, and Kutak Rock, LLP may make changes to the agreement and waiver before they are executed).

 

LEGAL REVIEW

 

The City Attorney has reviewed and commented on draft versions of the conflict waiver and joint defense agreement and will review the final versions of these documents and approve as to form.

 

RELATIONSHIP TO CITY PLANNING DOCUMENTS

 

Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it does not apply to City Planning Documents.

 

CEQA REVIEW

 

This item is not subject to environmental review under the California Environmental Quality Act (CEQA).

 

PUBLIC NOTICE PROCESS

 

The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.

 

Submitted by:                     

 

Alisha Patterson                     

City Attorney                     

 

Attachments:

A - Letter from Kutak Rock, LLP, dated February 27, 2024

B - Draft Joint Defense, Common Interest, and Confidentiality Agreement

C - Draft Conflict Waiver