SR-100-002 (11)
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City Council Meeting: August 13, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Resolution In Opposition To Assembly Bill 1839
Introduction
This report recommends adopting the attached resolution in opposition to Assembly Bill
1839 which seeks to place limits on the contractual indemnity provisions of public works
design contracts.
Discussion
AB 1839 seeks to limit the indemnity provisions of design contracts. Under its terms,
cities would be held harmless only against those liabilities, claims, actions, demands,
losses, and costs to those actions caused by willful misconduct, negligence, or
recklessness of the design consultant in performance of the work specified in the
contract.
AB 1839 supercedes current law which allows cities the flexibility to require
indemnification clauses that include other provisions, such as design flaws, errors or
omissions, or non-performance, the activities of the design consultant or its sub
consultants, and injury, property damage, or other losses to a third party as the result of
the design consultant actions.
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Should AB 1839 pass, the City will lose many of the existing protections against design
consultant actions.
Budget/Financial Impact
There are no budget or financial impacts as a result of adopting the attached resolution.
Recommendations
Staff recommends that the Council adopt the attached resolution in opposition of
Assembly Bill 1839.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Donald Patterson, Senior Administrative Analyst
Attachments: Resolution
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City Council Meeting: August 13, 2002 Santa Monica, California
RESOLUTION NUMBER (CCS)
CITY COUNCIL SERIES
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA IN OPPOSITION TO
ASSEMBLY BILL 1839 - AMENDMENT TO THE CIVIL CODE
WHEREAS, the City of Santa Monica currently has the authority and duty to
respond to local concerns and to provide rules that best meet the needs of the
community; and
WHEREAS, the City of Santa Monica currently negotiates indemnification
agreements with its design professionals and design/builders in a manner that protects
the City from liability for claims arising from the performance or nonperformance of the
agreement, design activities, payments to its subconsultants, personal injuries
associated with the performance or nonperformance of its activities, among others;
WHEREAS, Assembly Bill 1839 will limit the obligations of design professionals
to indemnify public agencies only to the extent claims are caused by the negligence,
recklessness or wilful misconduct of the design professionals in the performance of the
agreement;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City of Santa of Santa Monica opposes Assembly Bill 1839,
which will limit the conditions by which the City can require design professionals to
indemnify the City.
SECTION 2. The City Clerk shall certify to the adoption of the resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
__________________________
MARSHA JONES MOUTRIE
City Attorney
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