AgdaPkt 2012-02-27 - Laserfiche WebLink

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6.6.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager February 27, 2012 SUBJECT Proposed new ordinance requiring developers to indemnify the City in the event of third party challenge RECOMMENDATION Waive Second Reading and Adopt an Ordinance Adding a New Article IV to Chapter 1 to the Municipal Code Relating to Developer Indemnification. BACKGROUND Redwood City requires that developers mitigate the fiscal impact of processing applications. This policy is embodied in the City Council resolutions requiring reimbursement of costs associated with development. Another cost is litigation. ANALYSIS Typically, the City requires as condition of project approval that the developer will defend and indemnify the City in the event a third party challenge of the project or the environmental determination. An indemnification provision has also been recently added to planning permit application forms. This puts developers on notice early on in the process. However, this requirement has not been codified. Staff recommends that this requirement be adopted as an ordinance and included in the City Code to provide additional notice to developers of the City's requirements. The City Council waived the first reading and introduced the ordinance on February 6, 2012, and it is presented at this meeting for second reading and adoption. FISCAL IMPACT In the event of litigation against the City, the developer would be required to pay the cost for attorney fees and costs for the City to defend such lawsuits. Without such indemnification, the City can either not defend its decision or might incur substantial costs for which the developer should be responsible. ALTERNATIVES 1. Make changes to the proposed ordinance. 2. Do not introduce the proposed ordinance. ENVIRONMENTAL REVIEW Not applicable.