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HomeMy WebLinkAbout08.A- City Attorney DOC ID: 1545 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Budget From: James F. Penman M/CC Meeting Date: 01/23/2012 Prepared by: Stephanie Easland,(909)384- 5355 Dept: City Attorney Ward(s): Subject: City Attorney's Request for Additional Funding in the Amount of$16,400 to Pay Outstanding Defense Expert Costs in Richard "Scott" Moss,Et Al. Vs. City of San Bernardino, Et Al., United States District Court, Central District of California,EDCV 07-01027 SGL (Opx). Financial Impact: $16,400 to Account No. 001-050-5177(Litigation Expenses) from the unappropriated budget reserve balance. Motion: Authorize the Director of Finance to amend the FY 2011-12 City Attorney Office budget by transferring $16,400.00 from the unappropriated budget reserve balance to line item# 001-050-5177, (Litigation Expenses) to pay outstanding defense expert costs in Richard "Scott" Moss, et al. vs. City of San Bernardino, et al, United States District Court, Central District of California, EDCV 07-01027 SGL(Opx). Synopsis of Previous Council Action: 1. Final 2010/2011 Budget adopted on June 30, 2010 included a $410,000 loan from City Attorney's 2011/2012 budget. The City Attorney's Office had submitted a budget in the amount of$3,965.108.00,however the budget adopted for the City Attorney's Office was $3,026,000. 2. On May 25,2011 the Finance department reduced the 2011/2012 City Attorney budget by the $410,000 loan which left the revised budget at$3,026,000. 3. On August 1,2011 the City Attorney's Office requested a budget increase to pay outside counsel however the Mayor and Common Council further reduced City Attorney budget by $6000.00 in order to pay outside counsel. 4. On August 15,2011 the City Attorney's Office requested an increase of$197,000 for outside legal bills and Mayor and Common Council approved that amount to pay those bills but also further reduced the City Attorney budget by that amount. 5. On November 21,2011 the City Attorney's Office requested a budget increase to pay outside litigation fees and costs, but this request was denied. 6. On December 5,2011,the City Attorney's Office requested a budget increase to pay outside Updated: 1/19/2012 by Mayra Ochiqui 1545 litigation fees and costs,but this request was denied. Backerouud: The City Attorney's Office does not create lawsuits. People sue the City for a variety of reasons.All of these lawsuits must be defended or prosecuted by the City Attorney's Office either with in-house counsel or outside counsel. There are currently pending 123 cases in the City Attorney's Office. 83 cases are being handled by Deputy City Attorneys in-house. The City is the defendant in 106 of these lawsuits and the City is the plaintiff in 17. However,the appropriations to pay outside counsel and to pay litigation costs have not kept up with the 60% increase in lawsuits over the past two years. Due to the Council not appropriating sufficient funding to pay bona fide litigation fees and expenses for these pending cases,the City Attorney Office's discretionary budget has been completely exhausted, despite the fact these cases must still be defended on behalf of the City and its employees. A crucial part of such a defense is the hiring of expert witnesses, especially in the case of Richard "Scott"Moss, et. al. vs. City of San Bernardino, et ai., United States District Court, Central District of California,EDCV 07-01027 SGL(Opx). This is a collective action under the Fair Labor Standards Act in which approximately 150 current and former firefighters allege that the San Bernardino City Fire Department improperly calculated and paid overtime. The case was bifurcated into a liability phase and a damages phase. The liability phase is completed with the Court granting summary judgment on certain issues, namely that the City's system for determining the number of overtime hours did not comply with the Fair Labor Standards Act,and that the City did not correctly calculate the"regular rate"for determining the amount of overtime. The case shall now proceed to the damages phase to determine what monetary damages the Plaintiffs'are entitled to due to the City's incorrect calculation and payment of overtime. According to our expert witness report,the anticipated range of liability is between i $149,914 and$352,656. According to Plaintiffs' estimate,damages for the class are between $10 and $15 million, which would be doubled if there were a finding of willful violation. The amount requested is to pay an outstanding bill from the City's expert witness in the amount of$16,400.As you can see,there is quite a difference in the Plaintiffs' and Defendants' damages calculations. If the City wants the opportunity to successfully reduce its certain exposure to damages under the Fair Labor Standards Act,the retention of these expert witnesses is critical. This is not possible if the City does not agree to pay its bills for work already performed in defense of this case. Supporting Documents: Updated: 1/1912012 by Mayra Ochiqui 1545 Moss Expert Witness Billing (PDF) i 1 a Updated: 1/19/2012 by Mayra Ochiqui Economics/Statistics wryw.gelnhan.c•rnQ RECEIVED 1716 Briarcrest Drive,#700 WELCH CITY ATTORNEY Bryan,Texas 77802 CONSULTING P017 JRN 10 P(1 3 37 Facsimile: 979-846-642979-846-0303 1 To: Date James A. Odium,Esq. 12/31/2011 v Mundell, Odium&Haws,LLP LL 650 East Hospitality Lane Suite 470 C R " c Sall Bernardino,CA 92408-3595 ° - A• v Re: Richard Moss v. City of San Bernardino Fire Department to d Amouut Due Cr $16,400.00 Date Transaction E �_ _ Amount Balance 17 I!10!2fi1 I IN V 4A 16585.Orig.Amount$1,660.00. R 12,10!2011 INV#A 16684-Orig.Amount 14,740.00. 1,660.00 1,666.00 D 14,740.00 15.400.00 U 'm N N N C N a e ��___�__ g x Lu 1 To obtain a copy of an invoice,please trontact Kathi Legg at(979)846-0303 W. 2249 or via email at c I k1egg@bwe1chcon.com. Thank yowl 1 t..--------------------------------------------------------------- �1 c 1-30 DAYS 31-60DAYS 61-90 DAYS OVER 90 DAYS E C70.00 T PAST Dl It PAST'DUE PAST DUE PAST DUE AMOUNT DUE m 14,740.00 1,660.00 0.00 0.00 ffi16,400.00 Tax ID 876-0627621 ,, ..Please remit to: Welch Consulting, Ltd. ' -- '"` - - - 1716 BriarcresaDrive 8700 Bryan,TX 77802-2760 Los Angeles 12100 WiMire Boulevard,Suite 1650,Los Angeles,California 90025 Washingenn,DC. Telephone:310493-5530 Fauimlle:310.393-2503 1090 Vermont Avenue,N.W,Suite 900, xa$hjrWt Telephone:202-435-0200 Fxsionle:202-3