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HomeMy Public PortalAboutA2011-08-23CC-SPThis Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603 -0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE SPECIAL MEETING OF THE LYNWOOD CITY COUNCIL TO BE HELD ON AUGUST 23, 2011 COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 5:00 P.M. AIDE CASTRO MAYOR JIM MORTON MAYOR PRO -TEM RAMON RODRIGUEZ COUNCILMEMBER CITY MANAGER ROGER L. HALEY CITY CLERK MARIA QUINONEZ CALL TO ORDER OPENING CEREMONIES CITY ATTORNEY FRED GALANTE CITY TREASURER SALVADOR ALATORRE CERTIFICATION OF AGENDA POSTING BY CITY CLERK 3. ROLL CALL OF COUNCIL MEMBERS Alfredo Flores Ramon Rodriguez Maria T. Santillan Jim Morton Aide Castro PLEDGE OF ALLEGIANCE 7„t Pis fi�,� DECEIVED AUb Z 2 2011 CITY OF LYNWOOD CITY CLERKS OFFICE n/Op�r: o. Qu:noh-GZ C Glc-K 6\)6'0- ALFREDO FLORES COUNCILMEMBER MARIA TERESA SANTILLAN COUNCILMEMBER 5. INVOCATION 6. COUNCIL RECESS TO: LYNWOOD REDEVELOPMENT AGENCY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT COUNCIL MAY REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) PUBLIC HEARING ADOPTION OF AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE TO COMPLY WITH PART 1.8 OF THE CALIFORNIA HEALTH AND SAFETY CODE, AS REQUIRED BY ABX1 26 . u�2T, 71IT -Tifi? On June 28, 2011, the Governor signed two budget trailer bills into law, ABX1 26 and ABX1 27, which became effective June 29, 2011. ABX1 26 eliminates redevelopment agencies in California and provides direction and guidelines for the dissolution of all redevelopment activities and functions. ABX1 27 creates an Alternative Voluntary Program for redevelopment agencies to continue to exist only if agencies pay mandated payments annually to the State. The State Department of Finance (DOF) released its final figures for all agencies to opt -in to continue to exist and operate and the City of Lynwood is required to pay $2,582,685 in FY 12 and $612,724 in FY 13. Staff has filed an appeal with the DOF to reduce these payments. Recommendation: Staff recommends that the City Council and Agency conduct a joint public hearing and adopt the attached resolution entitled: "A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND LYNWOOD REDVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO ABX1 26." CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Council or staff request specific items to be removed from the Consent Calendar for separate action. 8. CONSIDERATION OF EXTENDING TOLLING AGREEMENT WITH COUNTY OF LOS ANGELES RELATING TO CONSENT ORDER, DOCKET NO. HAS -CO 05/06 -114, ISSUED BY DTSC, AT FORMER BKK MAIN STREET LANDFILL, CARSON, CA Comments: On July 11, 2007, the City entered into a Tolling and Standstill Agreement with the County of Los Angeles regarding the former BKK Main Street Landfill in Carson. The City is only a potential party at this time. DTSC is seeking money from all parties that dumped or were the source of trash dumped in the BKK Main Street Carson Dump, which is alleged to be contaminated from the trash dumped there. The City was recently requested by Attorney John H. Holloway of Best Best & Krieger, LLP to execute a First Amended Tolling and Standstill agreement for an additional four years. The Agreement will commence July 12, 2011 and expire on July 12, 2015. Recommendation: Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDED TOLLING AND STANDSTILL AGREEMENT BETWEEN THE CITY AND THE COUNTY OF LOS ANGELES'. CITY COUNCIL ORAL AND WRITTEN COMMUNICATION AIDE CASTRO, MAYOR JIM MORTON, MAYOR PRO -TEM ALFREDO FLORES, COUNCILMEMBER RAMON RODRIGUEZ, COUNCILMEMBER MARIA T. SANTILLAN, COUNCILMEMBER CLOSED SESSION 9. CLOSED SESSION ITEMS A. With respect to every item of business to be discussed in closed session pursuant to Section 54957: PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: City Manager ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON SEPTEMBER 6, 2011 AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. AGENDA STAFF REPORT DATE: August 23, 2011 TO: Honorable Mayor and Members of the City Council Honorable Chair and Members of the Agency APPROVED BY: Roger L. Haley, City Manager /Executive Direct PREPARED BY: Robert S. Torrez, Assistant City Manager Lorry Hempe, Budget and Intergovernmental Affairs Manager Steven Avalos, Administrative Analyst II SUBJECT: Adoption of an Enforceable Obligation Payment Schedule to Comply with Part 1.8 of the California Health and Safety Code, As Required by ABx1 26 Recommendation: Staff recommends that the City Council and Agency conduct a joint public hearing and adopt the attached resolution entitled: "A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND LYNWOOD REDVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO ABX1 26." Background: On June 28, 2011, the Governor signed two budget trailer bills into law, ABX1 26 and ABX1 27, which became effective June 29, 2011. ABX1 26 eliminates redevelopment agencies in California and provides direction and guidelines for the dissolution of all redevelopment activities and functions. ABX1 27 creates an Alternative Voluntary Program for redevelopment agencies to continue to exist only if agencies pay mandated payments annually to the State. The State Department of Finance (DOF) released its final figures for all agencies to opt -in to continue to exist and operate and the City of Lynwood is required to pay $2,582,685 in FY 12 and $612,724 in FY 13. The City has complied with all requirements of ABX1 27 in order to continue operatin the Lynwood Redevelopment Agency and has undertaken the following actions: AGENDA ITEM (1) Adopted non - binding Resolution 2011.163 indicating the City's intent to "opt -in" and retain the Agency. (2) Held a public hearing for the first reading and introduced an Ordinance (Continuation Ordinance) indicating that the City of Lynwood will comply with the. provisions of ABX1 27 and participate in the Voluntary Redevelopment Program in order to continue to exist and operate, and pay the mandated remittance amount — 08 -02 -11 City Council Meeting. (3) The Continuation Ordinance was read a second time and adopted to finalize the City's participation in the voluntary program — 08 -16 -11 City Council Meeting; Ordinance 1643. In addition, under ABx1 27, cities and counties are allowed to dispute and appeal the RDA remittance amounts determined by the DOF. The City and Agency exercised this right and filed the appeal under protest and without prejudice with the DOF on August 15, 2011. Discussion & Analysis: The California League of Cities and the California Redevelopment Association filed suit in the Supreme Court of the State of California challenging the constitutionality of ABX1 26 and ABX1 27, and on August 11, 2011, the Supreme Court issued an immediate stay of ABX1 27 in its entirety and a partial stay of ABX1 26. Because ABX1 27, the statutory scheme which the City and Agency had opted into through the adoption of the Continuation Ordinance, has been stayed, it appears the Agency must adopt an Enforceable Obligation Payment Schedule (EOPS) at this time because, although the Court order stayed enforcement of Health and Safety Code Section 34169, the Court order left in place Health and Safety Code Section 34167 which relies upon and makes reference to an adopted EOPS. Adoption of the EOPS is important as the Agency may be limited to only making payments for debts and obligations listed on the EOPS during the time the stay is in place. As such, pursuant to Part 1.8 of the Health and Safety Code, as stipulated by ABX1 26, the City must adopt an EOPS within 60 days of ABX1 26 effective date, which is by August 28, 2011. According to ABX1 26, an "Enforceable Obligation" is defined as any of the following: (1) Bonds — Includes all debt service, reserve set - asides and any other payments related to the repayment of bonds, notes, interim certificates, debentures, or other obligations. (2) Loans or Moneys Borrowed by Agency — Includes loans or moneys borrowed for legal purposes. 2 (3) Payments required by the federal and state governments or in connection with agency employees. (4) Judgments and settlements entered by a competent court of law or binding arbitration decisions against redevelopment agency. (5) Legally binding and enforceable agreements or contracts — Includes all obligations of agency not listed above, both housing and non - housing. Examples include obligations such as construction contracts, Disposition and Development Agreements (DDAs), Owner Participation Agreements (OPAs), pre - development loans, and any and all other contractual obligations entered by Agency. (6) Contracts or agreements necessary for continued administration or operation of agency such as, but not limited to, office space rent, equipment, supplies, insurance, and services. (7) Other Obligations Payment Schedule —Includes all other obligations of Agency, such as contractual and statutory pass- through payments. Also includes any other obligations required by the CRL, such as housing fund deficit repayments. The adopted EOPS must identify all outstanding obligations the Agency currently is responsible for in order to pass this information to the to -be- formed State "Successor Agency," which must honor and pay these obligations. Since the City is complying with ABX1 27 and intends to continue operation of the LRA (and subsequently will have no obligation to a successor agency), this may be moot and not necessary. However, given the California Supreme Court's stay described above, the City Attorney and staff are recommending holding a public hearing to adopt an EOPS for the Agency. If adopted, the EOPS must be posted to the City's website and sent to the DOF, State Controller, and County Auditor - Controller no later than September 30, 2011. Fiscal Impact: The action recommended in this report will not have a fiscal impact Coordinated With: Community Development City Attorney Attachment: Resolution Exhibit A — Enforceable Obligation Payment Schedule 3 RESOLUTION NO. A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND LYNWOOD REDVELOPMENT AGENCY ADOPTING AN ENFORCEABLE OBLIGATION PAYMENT SCHEDULE PURSUANT TO ABX1 26 WHEREAS, pursuant to the California Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.), the City Council of the City of Lynwood ( "City ") created the Lynwood Redevelopment Agency ( "Agency "); and WHEREAS, the Agency has been responsible for implementing the Redevelopment Plans for Project Area A and the Alameda Redevelopment Project Area covering certain properties within the City; and WHEREAS, as part of the 2011 -2012 State budget bill, the California State Legislature recently enacted, and the Governor signed, companion bills ABX1 26 and ABX1 27, which eliminate every redevelopment agency unless the community that created it adopts an ordinance ( "Continuation Ordinance ") agreeing to participate in an Alternative Voluntary Redevelopment Program ( "Alternate Redevelopment Program ") which requires the payment of an annual "community remittance" payment; and WHEREAS, ABX1 26 also requires redevelopment agencies to adopt, by August 28, 2011, an Enforceable Obligation Payment Schedule ( "EOPS ") which will serve as the basis for the payment of the Agency's outstanding financial obligations if the City does not adopt an ordinance electing to participate in the Alternate Redevelopment Program and the Agency is dissolved; and WHEREAS, the City held a first reading of the Continuation Ordinance on August 2, 2011 and a second reading on August 16, 2011; and WHEREAS, the California League of Cities and the California Redevelopment Association filed suit in the Supreme Court of the State of California challenging the constitutionality of ABX1 26 and ABX1 27; and WHEREAS, on August 11, 2011, the Supreme Court agreed to take the case and issued an immediate stay of ABX1 27 in its entirety and a partial stay of ABX1 26; and WHEREAS, because ABX1 27, the statutory scheme which the City and Agency had opted into through the adoption of the Continuation Ordinance, has been stayed, it appears the Agency must adopt an EOPS at this time because, although the Court order stayed enforcement of Health and Safety Code Section 34169, the Court order left in place Health and Safety Code Section 34167 which relies upon and makes reference to an adopted EOPS; and WHEREAS, adoption of the EOPS is important as the Agency may be limited to only making payments for debts and obligations listed on the EOPS during the time the stay is in place. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD AND LYNWOOD REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Approval of EOPS The City and Agency hereby approves and adopts the Enforceable Obligation Payment Schedule, in substantially the form attached hereto as Exhibit A, as required by the recently enacted legislation ABX1 26. Section 3. Posting; Transmittal to Appropriate Agencies The City Manager /Executive Director is hereby authorized and directed to post a copy of the EOPS on the City's website. The City Manager /Executive Director is further authorized and directed to transmit, by mail or electronic means, to the Los Angeles County Auditor - Controller, the State Controller and the Department of Finance, notification providing the website location of the posted EOPS and other information as required by ABX1 26. PASSED, APPROVED and ADOPTED this 23rd day of August, 2011. Aide Castro Mayor and Chair ATTEST: Maria Quinonez City Clerk/Secretary APPROVED AS TO FORM: Fred Galante City Attorney /Agency Counsel Roger L. Haley City Manager /Executive Director APPROVED AS TO CONTENT: Robert S. Torrez Assistant City Manager STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby certify that the foregoing Resolution was passed and adopted by the Agency Board of the Lynwood Redevelopment Agency at a regular meeting held on the 23` day of August, 2011. AYES: NOES: ABSENT: ABSTAIN: Maria Quinonez City Clerk/ Secretary EXHIBIT A ENFORCEABLE OBLIGATION PAYMENT SCHEDULE \ \ } t. } } \ ` 3 3 § / § ! 2 4 M 0 ! \!§ « r«! ! § [\ ® �[(b EI2 2 § } ' \� \ } \ k \ (§ f i l l [G \) �( k u § ® � ! ` a � r n A D t a m $ a m a m a m a a a a m I T a D D D A O A A A A O A A D O O O D D O 3 � 2 2 ff ro 2 ff 2 3 3 3 3 3 v c mn p a 03 O yr a et _ n $ n 3 m o x o D N A a c �. `� a° m _ `° g 6 N A a D °- ° 3 a m x a - w n c 3 e. - o m m o� m o mo o c O ti m � o f _ O o O ° o ° O D o � 'o a y 3 � ° 0 0 0 o ° o o °°° b °o 0 o p O P ° ° o ° o ° m ° o '0 ° m 0 ° m 2 0 u o u 0 � � ° 3 3 0 O O o ° o z A N N D n v � � o c a n 3 3 3 v - m 2 � Z � � O m � 5 _ � m g v m m � - m � m y a 0 R O -1 n� o � OS � v� u m G m O H Try O n Z � m o w m ° N N O N T � a c O m n A a � � 3 m a s 0 o Z b O G O p d A n 3 2 O 3 3 � � F 3 x e m 3 n a 3 3 O 3 3 � mN v ' y 2 3 m 3 3 3 n r 3 n 3 O 3 3 n yv a 3 D m a y 3 0 O 3 3 � mi N O m 3, n T 3 3 3 t O 3 x 2Z ,Y w 3 '° '-2 n D 3 D O 3 3 n m� � m t A O 3 3 � nx 3 m 9 s a Z D 3 D 2 O 3 3 n x ti P m N m 2 3 C O 3 3 � 3- mm O 3 3 � m, 3 N 3 v O O 3 O 3 O 3 3 O 3 O 3 O 3 O 3 3 n 3 n 3 0 N w A � ti H ti H m m m m n C N < P C N C N 3 m D D 3 3 3 3 O 3 3 � 3- mm O 3 3 � m, 3 N 3 v m 3 m n n n 0 3 0 3 0 3 3 n 3 n 3 n m _ 3 _ 3 0 0 _ Z n y n D 2 Z D 2 ry n 0 3 3 n mN n' c� C z ¢ 3 m "s m 3 n 0 3 3 n uo n� 3 y H n n 0 3 3 n e a D ' 3 m 5 R m 3 m 0 t D m 0 0 3 3 n m � A A m 3 3 n 0 3 3 n D s 3 m 3 c D 3 n '3 n 0 3 3 n 3 D 3 m D 'n 3 5. n N 3 m C F 3 D n 0 3 3 0 I D J m 3 H L) a ry m m LYNWOOD REDEVELOPMENT AGENCY # 9 (PASS THRU ATTACHMENT (VARIOUS AGENCIES) Estimated 4.29% Pass thru (1981 1.05 Los Angeles County General Fund 1.63% 51,591.08 30.10 LA County Flood Control 2.66% 84,191.58 135,782.66 33676 H & S Area A 89 256.000 1,287,701.10 Weighted Avg. Estimated Pass - Account # Taxing Entity Name Shares thru share 1.05 Los Angeles County General Fund 0.457082705 409,508.82 1.20 L.A. County Accum Cap. Outlay 0.000104197 93.35 1.53 LA County Detention Facilities 0.000824766 738.92 3.01 LA County Library 0.026641803 23,868.88 7.31 Los Angeles County Fire - FFW 0.006761033 6,057.33 30.10 LA County Flood Control Imp. District Maint. 0.002451639 2,196.47 30.60 LA County Flood Con. Sto 0.000394526 353.46 30.61 LA County Flood (Refund Bonds 93) 0.000062573 56.06 30.70 LA County Flood Control Maint, 0.013876563 12,432.27 33.60 Firestone Garbage Disposal District 0.003590029 3,216.37 61.80 Greater LA County Vector Control 0.000503782 451.35 66.05 County Sanitation District No. 1 Operating 0.019052537 17,069.52 200.01 City- Lynwood TD #1 0.133691938 119,777.07 200.05 City- Lynwood RP #1A 0.110960540 99,411.59 315.05 Central Basin MWD 1114 0.000000000 - 350.90 Water Replenishment District of So Cal 0.000171128 153.32 400.15 County School Services 0.001292348 1,157.84 400.21 Children's Institutional Tuition Fund 0.002564846 2,297.89 793.04 Compton Community College District 0.019078761 17,093.01 793.20 Children's Center Fund Compton CC 0.006093718 5,459.47 805.04 LA City Community College District 0.002347830 2,103.46 805.20 LA Community College Children's Center Fund 0.000024279 21.75 887.03 LA Unified School District 0.017297559 15,497.20 887.06 County School Services Fund - Los Angeles 0.000000961 0.86 887.07 Dev. Ctr. Handicapped Minor- L.A. Unified 0.000097502 87.35 887.20 Los Angeles Children's Center Fund 0.000283634 254.11 891.03 Lynwood Unified School District 0.164797957 147,645.53 891.06 County School Services Fund - Lynwood 0.007428687 6,655.50 891.07 Development Center Handicapped Minor - Lynwood 0.000820078 734.72 891.20 Lynwood Children's Center Fund 0.001702081 1,524.93 895,918.44 Estimated 4.29% Pass thru (1981 1.05 Los Angeles County General Fund 1.63% 51,591.08 30.10 LA County Flood Control 2.66% 84,191.58 135,782.66 33676 H & S Area A 89 256.000 1,287,701.10 op Lpry� AGENDA STAFF REPORT t IPO4 DATE: August 23, 2011 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Robert S. Torrez, Assistant City Manager IV- Delania G. Whitaker, Administrative Analyst II SUBJECT: Consideration of Extending Tolling Agreement with County of Los Angeles Relating To Consent Order, Docket No. HAS -CO 05/06 -114, Issued By DTSC, At Former BKK Main Street Landfill, Carson, CA Recommendation: Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDED TOLLING AND STANDSTILL AGREEMENT BETWEEN THE CITY AND THE COUNTY OF LOS ANGELES ". Background: In April 2006, the California Environmental Protection Agency, through the Department of Toxic Substance Control (DTCS) issued a Settlement Agreement and Consent Order, relating to parcels of land within the City of Carson, California, containing the former Ben K. Kazarian (BKK) Main Street Carson Dump, which the DTCS alleged to be contaminated with hazardous substances. On July 11, 2007, the City entered into a Tolling and Standstill Agreement with the County of Los Angeles regarding the former BKK Main Street Landfill in Carson. The City is only a potential party at this time. DTSC is seeking money from all parties that dumped or were the source of trash dumped in the BKK Main Street Carson Dump, which is alleged to be contaminated from the trash dumped there. Discussion & Analysis: AGENDA The City was recently requested by Attorney John H. Holloway of Best Best & ITEM Krieger, LLP to execute a First Amended Tolling and Standstill agreement for an additional four years. The Agreement will commence July 12, 2011 and expire on July 12, 2015. Tolling references the understanding that the statute of limitations for the County to sue the City of Lynwood to pay for the investigation of the contamination and clean -up will not keep running while the parties are in the agreement. In other words, without the agreement, the County may be forced to file a legal action against the City to comply with the statute of limitations rather than continue efforts to informally resolve any potential legal action. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. Coordinated With: City Attorney IN, RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDED TOLLING AND STANDSTILL AGREEMENT BETWEEN THE CITY AND THE COUNTY OF LOS ANGELES WHEREAS, the City executed a Tolling and Standstill Agreement between the City and the County of Los Angeles on July 11, 2007; and WHEREAS, the City has been requested to execute a First Amended Tolling and Standstill Agreement for four years, expiring on July 11, 2015. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council of the City of Lynwood authorized the City Manager to execute the Amendment to the Tolling and Standstill Agreement with the County of Los Angeles. Section 2. This resolution shall go into effect immediately upon its adoption. Section 3. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 23rd day of August, 2011. Aide Castro Mayor ATTEST: Maria Quinonez Roger L. Haley City Clerk City Manager 3 APPROVED AS TO FORM: APPROVED AS TO CONTENT: Fred Galante City Attorney Robert S. Torrez Assistant City Manager 0 INDIAN WELLS (760) 568 -2611 IRVINE (949) 263 -2600 ONTARIO (909) 989 -8584 RIVERSIDE (951) 686 -1450 John H. Holloway (213) 617 -7495 john.holloway@bbklaw.com File No. 26345.00005 BEST BEST & KR IEGER� ATTORNEYS AT LAw 300 South Grand Avenue, 25th Floor Los Angeles, California 90071 (213) 617 -8100 (213) 617 -7480 Fax BBKlaw.com July 19, 2011 Anthony Willoughby Willoughby & Associates 200 Corporate Pointe, Suite 495 Culver City, CA 90230 SACRAMENTO (916) 325 -4000 SAN DIEGO (619) 525 -1300 WALNUT CREEK (925) 977 -3300 Re: Extension of Tolling Agreement Relating to Settlement Agreement and Consent Order, Docket No. HAS -CO 05106 -114, Issued by DTSC, at the former BKK Main Street Landfill, Carson, California. Dear Mr. Willoughby: Enclosed for your review and execution on behalf of the City of Lynwood is a First Amended Tolling and Standstill Agreement, extending for an additional four years the Tolling Agreement entered into between the County of Los Angeles, the City of Lynwood, and a number of other municipalities in July of 2007 in the above - referenced matter. Please review the same and provide me with an executed copy as soon as possible. If you have any questions about the enclosed, feel free to give me a call. Sincerely, Jo . Holloway f r ST BEST & KRIEGER LLP JHH:sr Enclosure cc: Gene Tanaka, Esq. 26345.00005 \6791104.2 FIRST AMENDED TOLLING AND STANDSTILL AGREEMENT This First Amended Tolling and Standstill Agreement ( "First Amended Tolling Agreement ") is deemed effective as of July 12, 2011 (the "Effective Date "), by and among, the County of Los Angeles ( "County "), the City of Bell, the City of Compton, the City of Culver City, the City of El Segundo, the City of Huntington Park, the City of Long Beach, the City of Lynwood, the City of Palos Verdes Estates, the City of Seal Beach, and the City of Vernon, referred to herein collectively as the "Parties" and individually as a "Party." RECITALS WHEREAS, on or about April 12, 2006, the California Environmental Protection Agency, through its Department of Toxic Substances Control ( "DTSC ") issued a Settlement Agreement and Consent Order, Docket No. HAS -CO 05/06 -114 ( "Consent Order ") relating to parcels of land within the City of Carson, California, containing the former Ben K. Kazarian (`BKK ") Main Street Carson Dump aka Main Street Dump, which the DTSC alleges are contaminated with hazardous substances (the "Site "); WHEREAS, the County has executed the Consent Order and the County has retained experts and consultants and commenced the Consent Order Work; WHEREAS, the County previously entered into a Tolling and Standstill Agreement with the City of Bell, the City of Compton, the City of Culver City, the City of El Segundo, the City of Huntington Park, the City of Long Beach, the City of Lynwood, the City of Palos Verdes Estates, the City of Seal Beach, and the City of Vernon tolling the applicable statute of limitation for claims regarding the Site from July 11, 2007 through July 11, 2011 ( "Tolling Agreement'); WHEREAS, the Parties desire to extend the tolling period for the claims for an additional four years pursuant to this First Amended Tolling Agreement. THEREFORE, the Parties, for good and sufficient consideration hereto acknowledged, agree as follows: AGREEMENT 1. Tolling Period a. In accordance with this First Amended Tolling Agreement, the Parties agree to toll the running of any statutes of limitation and any other statute, law, rule, or principle of equity of similar effect (collectively, "Statutes of Limitation ") with respect to any and all rights, claims, causes of action, counterclaims, third party claims, cross - claims and defenses that could or might be asserted by the Parties, one or more of them that. are based on, arise out of, or in any way relate to the alleged contamination of the Site, including the work required under the Consent Order (collectively, the "Claims "). b. The extension tolling period shall commence on the Effective Date and continue for the earlier of a period of four years, or until such time as this Agreement is terminated ( "Extension Period "). 26345.00005\6533474.3 c. The Parties agree that the Extension Period shall be excluded from all computations of any limitations period applicable to the Claims. The Parties agree that they shall waive and shall not plead, assert, or otherwise raise any Statutes of Limitation as a bar or other limitation on any Claim, to the extent such Statute of Limitations claims includes the Extension Period. 2. Effective Against Signing Parties This First Amended Tolling Agreement shall be binding on all Parties who execute this First Amended Tolling Agreement, even if one or more Parties fail to execute it. Incorporation of Terms of Tolling Agreement Except as otherwise provided in this First Amended Tolling Agreement, the terms of the Tolling Agreement shall be incorporated into and shall apply to this First Amended Tolling Agreement. SIGNATURES ON NEXT PAGE 26345.00005 \6533474.3 2 Name of Party: County of Los Angeles By: Name: Title: Date: Notice Address: Name of Party: City of Bell Title: By: Name: Date: Notice Address: Name of Party: City of Compton By: Name: Title: Date: Notice Address: Name of Party: El Segundo Title: By: Name: Date: Notice Address: Name of Party: City of Huntington Park By: _ Name: Title: Date: Notice Address: Name of Party: City of Lynwood Title: By: Name: Date: Notice Address: 26345.00005 \6533474.3 3 Name of Party: City of Palos Verdes Estates By: Name: Title: Date: Notice Address: Name of Party: City of Vernon Title: By: Name: Date: Notice Address: Name of Party: City of Seal Beach By: Name: Title: Date: Notice Address: Name of Party: City of Culver City By: Name: Title: Date: Notice Address: Name of Party: City of Long Beach By: Name: Title: Date: Notice Address: 26345.00005 \6533474.3 4