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(Government Code §§ 54954.2, 54954.5.)

3. Major Reasons for Permissible Closed Sessions.

a. Real Property Transactions. Local agencies negotiating real property
transactions may meet in closed session to instruct their negotiators regarding the price and terms
of payment for the purchase, sale, exchange, or lease of property. This is a narrowly crafted
exception and does not authorize closed session discussions of any and all transactions
concerning real property. General briefings on land acquisition, engineering and architectural
work, traffic and parking developments and environmental and related impacts are not within the
Brown Act’s provision for closed sessions to instruct negotiators regarding purchase or sale of
specific real property. The focus of the negotiations should be payment related issues such as:
how low or high to start negotiations with the other party, the sequencing and strategy of offers
and counteroffers, as well as various payment alternatives.

(Government Code § 54956.8; Shapiro v. San Diego City Council (2002) 96 Cal.App.4th 904; 94
Ops.Cal.Atty.Gen. 82 (2011); 93 Ops.Cal.Atty.Gen. 51 (2010).)

b. Labor Negotiations. Closed sessions are permitted to instruct negotiators
who are meeting and conferring with represented or unrepresented employees. The term
“employee” includes officers and independent contractors who function as officers or employees,
but does not include elected officials, members of the legislative body or other independent
contractors. The agency may discuss available funds and funding priorities, but only insofar as
these discussions relate to providing instructions to the agency’s negotiator. Salaries may be
discussed under this section.

(Government Code § 54957.6.)

Project labor agreements (also sometimes called project stabilization agreements)
addressing labor on public works projects are not permissible subjects of labor negotiations
because the contractors and laborers covered by such agreements are not employees.

(98 Ops.Cal.Atty.Gen. 41 (2015).)

It should be noted that under the Educational Employment Relations Act (the
Rodda Act), Government Code section 3540, et seq., negotiations between public school
employers and employee organizations are exempt from the Brown Act. (Government Code
§ 3549.1.) Specifically, unless the parties mutually agree otherwise, the following proceedings
are exempt from the Brown Act:

• Any meeting and negotiating discussion between a public-school employer
and a recognized or certified employee organization.

• Any meeting of a mediator with either party or both parties to the meeting and
negotiating process.

• Any hearing, meeting, or investigation conducted by a fact finder or arbitrator.

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