HomeMy WebLinkAbout41- City Attorney C17 Y OF SAN BERNAR'"1INO - REQUEST FOP COUNCIL ACTION
From: James F. Penman Subject: Approval of appropriation from
General Reserve to City Attorney budget
Dept: City Attorney to fund outside attorney costs
Date: March 11 , 1993
Synopsis of Previous Council action:
December 7, 1992 Council authorized $200,000 to be drawn down for
outside litigation as bills are received
February 15, 1993 Request to pay additional outside litigation bills
continued to March 8, 1993
March 8, 1993 Request to pay additional litigation bills approved
4-2, but vetoed by Mayor
Recommended motion:
That the Finance Director be instructed to draw down additional amounts
not to exceed $500,000, in the aggregate, from the General Fund reserve
to fund payment of outside attorney bills from the following City Attorney
budget accounts: Litigation - Outside Attorney (001-051-5-3049) and
Litigation (001-051-5-3050)
gnature
Richard J. Morillo
Contact person: Senior Assistant City Attorney Phone: 5055
Supporting data attached: Ward: All
FUNDING REQUIREMENTS: Amount: $500,000
Source: (Acct. No.)
Acct. Description) General Fund Reserve
Finance: %� ---�
:ouncil Notes:
5-0262 Agenda Item No.--�/Z-
CITY OF SAN BERNAF, JNO - REQUEST FOI COUNCIL ACTION
STAFF REPORT
On December 7, 1992, the Mayor and Council authorized the
Finance Director to draw down on a monthly basis the necessary
funds from the General Fund reserve to fund bills from outside
attorneys retained by the Mayor and Common Council in an amount not
to exceed $200, 000.
At the February 15, 1993 Council meeting, a report was
received that $163, 969 remained of that $200,000 and the City
Attorney' s Office had billings in hand totalling $266, 702.73 which
would exhaust the authorized draw and still leave a deficit of
approximately $100,000. The matter was continued to the March 8
meeting. At the March 8 Council Meeting, the Council voted 4-2 to
pay the additional outside attorney costs but the action was vetoed
by the Mayor.
Since February 15, outside counsel have continued to accrue
additional costs on City cases. We have now received additional
bills totalling approximately $61, 990.81 which leaves the account
over $160,000 beyond what the Council has previously authorized.
It is therefore requested that the Mayor and Council authorize the
payment of $200, 000 to pay the current bills and allocate an
additional $300,000 to pay the anticipated bills through the end of
the fiscal year. We must caution, of course, that legal costs
relate to the amount of time necessary in a particular case, much
of which is driven by court demands and the actions of opposing
counsel.
Although the most recent computer print-out report shows these
funds to be at zero, as of March 9, Finance has orally reported to
us that the unexpended draw actually totals $99, 282. However, this
number does not reflect several bills that have been sent to
Finance for payment but have not yet been processed.
As noted above, the Council has authorized the retention of
each of the law firms involved on -the specific cases assigned.
None of these firms were retained without Council approval. Thus,
payment of the costs incurred are very clearly City obligations.
In addition, the firms involved have all significantly reduced
their standard rates in order to accommodate the publicly funded
City litigation.
In summary, the outside litigation bills in hand exceed the
reported $99, 282 unexpended draw by over $160, 000. In addition, it
is anticipated that for the remainder of the fiscal year $300,000
additional will be required to fund such costs for bills not yet
received, for a total requested transfer from the General Fund
reserve of $500,000.
75-0264