(12)AR 110309 MOU/City of Riverside

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ITEM #12 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF November 3, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY MANAGER AND CITY ATTORNEY SUBJECT: CITY OF RIVERSIDE — WELLS 30 & 31 LITIGATION — REVISED MEMORANDUM OF UNDERSTANDING DATE: OCTOBER 26, 2009 BACKGROUND: Earlier this year, the City of Colton and the City of Riverside negotiated a settlement regarding Riverside's lawsuit, which had alleged that Colton's decision to install and permit Wells 30 and 31 did not comply with the California Environmental Quality Act ("CEQA"). As part of the settlement, the City Council approved a Memorandum of Understanding ("MOU") at its June 16th meeting which addressed not only the CEQA lawsuit, but also other outstanding issues between the two cities. The parties executed the MOU in July 2009. DISCUSSION/ANALYSIS: Under the terms of the MOU, the cities contemplated the execution of a settlement agreement, which is on the closed session agenda for consideration by the City Council. One of the terms of the proposed settlement agreement requires the cities to amend the MOU to remove Section 8.5, which includes an indefinite term and a termination provision. The legal effect of removing Section 8.5 would be to prevent either party from terminating the MOU at will. By preventing the parties from terminating the MOU, the terms of the MOU will stay in full force and effect until all of the obligations have been satisfied. Approval of this revised MOU is an essential part of the proposed settlement between the two cities. Therefore, staff recommends that the City Council approve the revised MOU to remove Section 8.5. FISCAL IMPACT: No fiscal impacts are anticipated from the City Council's action to amend the MOU. ENVIRONMENTAL IMPACT: No environmental impacts are anticipated from the City Council's action to amend the MOU. CONFLICT OF INTEREST — Gift Disclosure Requirements Not applicable. ONTARIO\NSTUBB S\307205.3