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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Frorn: Mark Weinberg,
Subject:
Transfer $400,000 from the unreserved
general fund to the City Attorney's budget
as follows: $328,000 to account #001-
051-5503 and $72,000 to account #001-
051-5177.
Dept: City Manager's Office
Date: December 10, 2008
MCC:
December 15, 2008
Synopsis of Previous Council action:
Recommended motion:
That the Director of Finance be authorized and directed to amend the FY 2008-2009 budget and appropriate
$400,000 from the unreserved general fund to the City Attorney's budget as follows: $328,000 to account #001-051-
5503 (Litigation - Outside Attorneys) and $72,000 to account #001-051-5177 (Litigation - Expenses).
Contact person:
Phone:
5355
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. Descriotion)
Finance:
Council Notes:
75-0262
Agenda Item No.--9
/'1.' IS - tJ8
STAFF REPORT
Council Meeting Date: December 15, 2008
TO:
FROM:
DATE:
AGENDA:
Mayor and Common Council
City Manager's Office
December 10, 2008
December 15, 2008
To help balance the City's budget last spring, the City Attorney's Office was requested to
reduce its budget by $400,000.00. Because the bulk of its budget is allocated to litigation, the
City Attorney elected to make cuts from his litigation accounts ($300,000 from outside attorney
fees and $100,000 from litigation expenses).
Workload in the City Attorney's Office is almost exclusively event-driven; the office is
required to represent the City in all litigation filed against the City. Several of the currently
pending lawsuits are complex and require considerable work by outside attorneys with expertise
and experience in specialty areas of the law. In addition to the number of complex cases filed,
costs of depositions, experts and other trial preparation have risen.
As reported by the City Attorney, as of December 9,2008, out ofa total of90 pending
cases, there are 53 wherein the City is represented by the City Attorney's Office and 37 that are
handled by outside attorneys. Largely through the efforts of the City Attorney's Office, third
parties have picked up the City's defense in 13 cases under insurance or indemnification
agreements, which leaves only 24 cases which have been "farmed out" by the City Attorney's
Office. A comparison with other years is as follows:
12/9/08
2007 2006 2005 2004 2003 1997 1987
Total Cases
Total In-House
Total Outside Counsel
Paid for by 3rd Party
City Attorney's Budget
Total Where City Defendant
Total Where City Plaintiff
90
53
37
13
24
63
27
96
61
35
85
58
27
87
5I
36
78
44
34
107 115 198
78 89 -0-
29 26 198
63
33
58
27
65
22
60
18
85 84 195
22 31 3
The City Attorney's Office contends that, without additional staff, it cannot handle many
more cases in-house and cannot handle any more complex cases. So far this year, the City has
spent $148,019 in outside attorney fees and $98,847 in litigation expenses. It is anticipated that
an additional $392,000 in outside attorney fees and $72,000 in litigation costs will be needed to
'handle just the currently pending cases through June 30, 2009.
In an effort to contain outside attorney costs, the City Attorney has agreed to participate
in the City Manager's expenditure reduction program that requests, and when possible, requires
outside contractors, consultants and vendors to accept a 5% reduction in fees and charges.
Therefore, it is recommended that the Director of Finance be authorized and directed to
amend the FY 2008-2009 budget and appropriate $400,000 from the unreserved general fund to
the City Attorney's budget as follows: $328,000 to account #001-051-5503 (Litigation - Outside
Attorneys) and$72,OOO to account #001-05I-5177 (Litigation - Expenses).