CITY OF PACIFIC GROVE CITY COUNCIL: STATUS REPORT by Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP) RE: Formation Agreement Between City and MLCP

ABSTRACT: STATUS REPORT by Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP) RE: Formation Agreement Between City and MLCP is embedded. Importantly, the STATUS REPORT responds to the City Manager’s Arguments Against Entering Formation Agreement and states, as follows:

The City Manager's Agenda Report presents seven arguments against entering the Formation Agreement. Unfortunately, each of the arguments are flawed, for one or more of the following reasons:

1. The arguments are outside the proper scope of this meeting. The Council has already approved the agreement, subject only to the Indemnification Provision language of paragraph 15.

2. The arguments attempt to re-hash arguments that have already been considered and rejected by The Council.

3. The arguments are based upon inaccurate facts;

4. The arguments are legally and procedurally inaccurate;

5. The arguments improperly present "Opinions" as facts;

Mr. Hart concludes: “For all the reasons cited previously by The Council, the pursuit of publically controlled water for the Citizens of Pacific Grove and avoiding the exorbitantly high cost of water from the Cal Am project is in the best interest of the City. Moreover, the City can take this next step without risk of any kind and without any out-of-pocket cost.”

Agha-Hart Ltr to PG City Council Dated 6-20-12

JOHNSON, MONCRIEF & HART

A PROFESSIONAL CORPORATION

STATUS REPORT

DATE: June 20, 2012

TO: Honorable Mayor and Members of the City Council

FROM: Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP)

MEETING DATE: June 20, 2012

RE: Formation Agreement Between City and MLCP