16-0405_CC_Minutes_Special MeetingMINUTES
April 5, 2016
SAN JUAN CAPISTRANO CITY COUNCIL
SPECIAL MEETING
Mayor Patterson called the April 5, 2016, Special Meeting of the City Council to order at
2:02 p.m . in the City Council Chamber.
ROLL CALL
COUNCIL MEMBERS PRESENT: Mayor Pam Patterson, Esq., Mayor pro tern
Kerry K. Ferguson, and Council Members Derek Reeve (present from 3:45 p.m. to 6:15p.m.),
John M. Perry, and Sam Allevato.
COUNCIL MEMBERS ABSENT: None.
ORAL COMMUNICATIONS/PUBLIC COMMENT ON CLOSED SESSION ITEMS: None.
CLOSED SESSION (61 0.85)
A Closed Session was held for the following purposes, as authorized by statute:
a. Pursuant to Government Code Section 54956.9(a) & (d) (1 ), the
City Council conferred with legal counsel pertaining to existing litigation in the
matter of Vermuelen Ranch Center, LLC vs. City of San Juan Capistrano.
OC Superior Court Case No. 30-2015-00799138-CU-EI-CXC.
b. Pursuant to Government Code Section 54956.9(a) & (d) (1 ), the
City Council conferred with legal counsel pertaining to existing litigation in the
matter of Urban Village Development Company, LLC; Urban Capital Ventures,
LP vs . Maria Morris, in her official capacity as Clerk of City of San Juan
Capistrano; City Council of San Juan Capistrano; Neal Kelley, in his official
capacity as Orange County Registrar of Voters; and Does 1 through 100,
inclusive. OC Superior Court Case No . 30-2015-00766640.
c. Pursuant to Government Code Section 54956.9(a) & (d) (1 ), the
City Council conferred with legal counsel pertaining to existing litigation in the
matter of Save Our Historic Town Center, Mark Nielsen, Kenneth E. Friess,
and Robert J. Williams vs. City of San Juan Capistrano, at. al. OC Superior Court
Case No. 30-2014-00760231.
d. Pursuant to Government Code Section 54956.9 (a), (d)(2), and (d)(4), the
City Council conferred with Legal Counsel to discuss exposure to potential
litigation (1 item).
e. Pursuant to Government Code Section 54956 .9(a), the City Council conferred
with legal counsel pertaining to the administrative proceedings
in the Matter of the Application of San Diego Gas and Electric Company
for a Certificate of Public Convenience and Necessity for the
South Orange County Reliability Enhancement Project (CPUC Application No.
12-05-020).
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f. Pursuant to Government Code Section 54956.9(a) & (d) (1 ),
the City Council conferred with legal counsel pertaining to existing litigation in the
matter of Southwest Voter Registration Education Project, et al. v.
City of San Juan Capistrano , OC Superior Court Case No. 30-2016-00832243-
CU-CR-CJC.
g. Pursuant to Government Code Section 54956.9(d) (1 ), the City Council conferred
with Legal Counsel pertaining to existing litigation regarding petition for review of
Order No. R9-2015-01 00, State Water Resources Control Board File No . A-2456.
h. Pursuant to Government Code Section 54956.8, the City Council met with its
Real Property Negotiators (Ben Siegel, City Manager; and Jeff Ballinger,
City Attorney) concerning the price and terms of payment concerning certain real
property located at 32701 Alipaz Street.
i. Pursuant to Government Code Section 54956.9(d) (2), the City Council conferred
with legal counsel pertaining to significant exposure to litigation pertaining Claim
dated January 21, 2016, from Charles Krolikowski, on behalf of CEGG
Enterprises, LLC.
j. Pursuant to Government Code Section 54956.9 (a), (d)(2), and (d)(4), the
City Council conferred with Legal Counsel to discuss anticipated litigation and/or
may contemplate initiating litigation (1 item).
k. Pursuant to Government Code Section 54956.9(a) & (d) (1 ), the City Council
conferred with legal counsel pertaining to threatened/pending litigation in the
matter of Jeffrey Cotton, et al. vs. City of San Juan Capistrano, et al.
I. Pursuant to Government Code Section 54956.9(a) & (d) (1 ), the City Council
conferred with legal counsel pertaining to existing litigation in the matter of San
Juan Hills Golf Club, LP. vs. City of San Juan Capistrano. OC Superior Court
Case No. 30-2014-00742347.
ANNOUNCEMENT OF CLOSED SESSION ACTIONS: Council Member Perry recused
himself from Closed Session Item D due to pending litigation; and Closed Session Item L
due to the proximity of the San Juan Hills Golf Club to his residence.
Jeff Ballinger, City Attorney, reported the following for Closed Session Item D: The
City Council voted, in closed session by a 2-1-0 vote, vvith Mayor Patterson and
Mayor pro tem Ferguson voting yes, Councilmember Allevato voting no, and Councilmember
Reeve absent, to pay for the legal costs incurred by Councilmember Perry in responding to a
recent administrative investigation by the Fair Political Practices Commission (FPPC). The
investigation involves the Councilmember's May 2015 vote on the California Taxpayers
Association (CTA) Settlement Agreement.
The California Government Code provides that the City may pay for legal fees incurred by a
Councilmember, in this case because he qualifies as a "public employee" for purposes of
indemnification provisions of the Government Code and because the fees would be incurred in
connection with an administrative investigation. As such, the City may pay for the defense of
such proceeding if it determines that:
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(a) The administrative proceeding is brought on account of an act or omission in the
scope of his employment as an employee of the public entity; and,
(b) The public entity determines that such defense would be in the best interests of
the public entity and that the employee acted, or failed to act, in good faith,
without actual malice and in the apparent interests of the public entity.
In this case, Councilmember Perry's vote was within the scope of his official duties. In
addition, having this investigation resolved would be in the best interest of the City in that it
would provide the City and its taxpayers with the certainty that the City Council bargained for
under the Settlement Agreement in 2015. Attempting to re-open that Settlement Agreement
could subject the City to additional claims for attorneys' fees by the plaintiffs, as well as
potentially other legal claims. Moreover, Councilmember Perry did act in good faith by seeking
the advice of the City Attorney prior to voting on the CTA settlement. There is certainly
no evidence that he acted with actual malice. Therefore, the City Council's vote on
Closed Session is supported by the findings that are required by the Government Code.
ROLL CALL:
AYES:
NOES:
ABSENT:
RECUSED:
ADJOURNMENT:
COUNCIL MEMBER: Mayor pro tem Ferguson and Mayor Patterson
COUNCIL MEMBER: Allevato
COUNCIL MEMBER: Reeve
COUNCIL MEMBER: Perry
The Mayor recessed the Closed Session meeting at 6:22 p.m.; reconvened the
Closed Session meeting at 8:48 p.m.; and adjourned the Closed Session meeting at
10:05 p.m. to Tuesday, April 19, 2016, at 4:00 p.m. for Closed Session, and 5:00 p.m. for the
pub~ Busi ess Session, in the City Council Chamber.
Approved : April 19,2016
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