Government Code Section 1090 Violation / Real Estate Development Agreement / Federal Indictment / Councilmember Jose Huizar

In the last several months, the United States Department ofJustice has brought Federal criminal
indictments against Councilmember Jose Huizar and former Councilmember Mitchell Englander.
Several other former city employees also have pled guilty or appear to be under continuing
investigation related to those indictments.

Among other things, the indictments contain allegations that real estate developers and others gave
cash, cash equivalents, lavish gifts and other benefits to Huizar, Englander and other city employees
with the intent to induce these public officials to violate their duties of trust to the people of Los

California Government Code Section 1090 prohibits public officials, such as city employees and
elected officials, from having a personal financial interest in contracts they enter into in their
official capacity on behalf of the City. Government Code section 1092 provides that a contract that
violates section 1090 may be avoided by any party.

I THEREFORE MOVE that the City Council request the City Attorney to evaluate whether
Councilmember Jose Huizar violated Government Code Section 1090 with regard to any real estate
development agreement or other contract to which the City is a party, and further evaluate whether
such development agreement or other contract is thereby void or subject to rescission, and report
back to the City Council with recommendations about the City's potential legal remedies.

I FURTHER MOVE that the City Council instruct the Chief Legislative Analyst, in consultation with
the City Attorney, the Department of City Planning and the Department of Building and Safety, to
report to the City Council with recommendations for suspending the certificate of occupancy and
reconsidering any and all discretionary approvals or entitlements for all projects referenced
directly or indirectly in the Federal indictment of Council member Jose Huizar, and any other project
for which the discretionary approval or entitlement was induced by the illegal activity of
Councilmember Jose Huizar.

I FURTHER MOVE that the City Council request the City Attorney to evaluate whether the City of
Los Angeles should pursue civil remedies against the individuals or firms referenced in the recent
Federal indictments of Councilmember Jose Huizar and Councilmember Mitchell Englander for,
among other things, depriving or conspiring to deprive the public and the City of their right to the
honest services of employees of the City, including potential causes of action for recovery of
foreseeable resulting economic harm.

I FURTHER MOVE that the City Council request the City Attorney to draft an ordinance prohibiting
any property owner or developer from seeking any discretionary approval or entitlement in the
future from the City of Los Angeles, if the City Council or any court determines that such property
owner or developer has induced or conspired to cause a violation of Government Code Section
1090 or otherwise engaged in criminal conduct to defraud the City.