Motion to reconsider Playa Vista indemnification fails 7‑5 after debate

A motion to reconsider a prior council action on indemnification language tied to a Playa Vista development failed on a 7‑5 vote after members debated whether the city should seek additional protections.

Councilmember Holden moved to reconsider item 26 from the prior meeting so the matter could be referred back to the Budget and Finance Committee for further review and possible indemnification language. "I respectfully request that we reconsider item 26 ... for the purpose of referring it back to the budget and finance committee, and have them review whether or not, their ways and means to indemnify the city should such problem arise," Holden said.

Councilmember Galanter opposed reopening the matter, saying the City Attorney had previously explained the city's exposure would be limited to areas that become city property such as streets and roadways. "The city would be would not be liable for anything except the areas that would become city property, which is the streets, streets and roadways," Galanter said. She urged the council not to "rehash" matters already discussed.

The clerk recorded 7 ayes and 5 nos on the motion to reconsider; the motion therefore failed and the council did not refer item 26 back to committee at this meeting.

Members who spoke raised the specific question of what would happen if a contractor or developer declared bankruptcy or went out of business after project completion and whether indemnification obligations would transfer to subsequent property owners. The council did not take further action on indemnification, and no new legal language was adopted during the session.