Agmt 2000 City of Oakland Port Commissioners (2)

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Board of Port Commissioners CONFIDENTIAL: ATTORNEY - of the City of Oakland CLIENT AND ATTORNEY WORE - Oakland, California PRODUCT PRIVILEGED; November 3, 2000 EXEEST FRQ1 DISCLOSURE Page 3 ABSOLUTELY PROHIBITED FROM DISSEMINATION OUTSIDE PORT The main value of the proposed_ Settlement Agreement is the political and other practical benefits to the Port from a positive Port -San Leandro relationship. The Settlement Agreement is not expected to have any legal benefit to the Port in overcoming the remaining legal challenges by Alameda, CLASS and KJOB. But by signing the Settlement Agreement, San Leandro waives 60,000 in attorneys fees it was awarded ih the first lawsuit, it agrees to provide the Port, at no cost to the Port, an easement over any new development such as residential) .the City might approve in the future in the area west of 1 -880 which would not be compatible in a noisy. Airport environment, and it. agrees not to challenge the FAA's EIS or approval of the ADP. If San Leandro dismisses its appeal of the judgment in its second lawsuit a lawsuit claiming that a new EIR is required due to changes in circumstances), Alameda and CLASS have informed the court that they also would probably drop their remaining appeals of the judgment on their similar second lawsuit in order to expedite the Court's review of the three prior appeals on the first lawsuit which have been consolidated with the appeals in the second lawsuits. This action by Alameda and CLASS seems to be a tacit acknowledgment by them of the extreme weakness of their appeals from the judgment in their second lawsuit and an effort to get an earlier appellate decision on the merits of their first lawsuit in the hope that if the decision is unfavorable to the Port it may cause the FAA to delay completing the federal EIS on the ADP and issuing a Record of Decision approving the ADP. If Alameda and CLASS were to drop their appeals in the second lawsuit, we do not know when the Court of Appeals would issue a decision on the remaining appeals in the first lawsuit. The Court . has not yet set a date for oral argument. The Court would likely set oral argument for early 2001, and issue a decision within 30- 60 days after oral argument. We also do not know when the FAA will complete its final EIS or issue a Record of Decision but it will most likely not be before the first quarter of 2001. I do not recommend that the Board's decision on approving the Settlement Agreement with San Leandro be influenced by the highly speculative results of Alameda and CLASS dismissing their appeals from their second 'lawsuit. 3. Order of Approval and Public Announcement If the San Leandro City Council approves the Settlement Agreement at its November 6 meeting, its lawyers say the Council 30355