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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES F. PENMAN
City Attorney
Subject: Transfer and Appropriation of
Or " "'. · funds Relating to the Budget of the City
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Dept: CITY ATTORNEY
Date: April 10, 2002
Synopsis of Previous Council Action:
July 9, 2001 - Resolution 2001-228 approving and adopting the FY 2001-2002 Budget.
Recommended motion:
That the Director of Finance be authorized to amend the Fiscal Year 2001-2002 adopted budget and
transfer $60,000 from salary savings (Account No. 001-051-50xx) to the City Attorney Office budget
item for Litigation Expenses (Account No. 001-051-5177) and appropriate $90,000 from the
undesignatedlunreserved General Fund balance to the City Attorney office budget item Litigation-
Outside Attorneys (001-051-5503).
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Signature
Contact person: James F. Penman
Phone:
5255
Supporting data attached:
Staff Report
Ward:
All
FUNDING REQUIREMENTS:
Amount: $150.000.00
Source: SalarY Savings 001-051-50xx ($60.000.00)
UndesignatedlUnreserved General Fund Balance ($90.000.00)
Finance:
Council Notes:
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,
Agenda Item No. 28
STAFF REPORT
Council Meeting Date: April 15. 2002
TO:
FROM:
SUBJ:
Mayor and Common Council
City Attorney's Office
Transfer and Appropriation of Funds Relating to the Budget
of the City Attorney (Agenda Item #28)
April 10, 2002
DATE:
On April 10, 2002, a request was made to the Ways and Means Committee that it
recommend to the Mayor and Common Council that the Director of Finance be authorized to amend
the Fiscal Year 2001-2002 adopted budget and transfer $60,000.00 from salary savings (Account
No. 001-051-50xx) to the City Attorney Office budget item for Litigation Expenses (Account No.
001-051-5177) and appropriate $90,000.00 from the undesignatedlunreserved General Fund balance
to the City Attorney Office budget item Litigation-Outside Attorneys (001-051-5503). The Ways
and Means Committee has forwarded this item to the Mayor and Common Council with a favorable
recommendation that it be. approved at the April 15, 2002 meeting.
Since July 1, 2001, the Mayor and Common have authorized the retention of outside counsel
on several new cases; three of them have totaled outside attorneys' fees and expenses of$63,940.81.
While new matters are factored into the calculation of Litigation Expenses and Litigation-Outside
Attorneys in the City Attorney's Office budget, this situation for this fiscal year has been
exacerbated because of three lawsuits being handled by previously authorized outside law firms
which have had a very high level of activity: Alvarez v. City of San Bernardino, Stubblefield II v.
City of San Bernardino, and Gonzales v. City of San Bernardino. Since July 1,2002, these three
cases alone have amassed outside attorneys' fees and expenses of $200,444.61 which, when added
to the afore-mentioned three new cases, results in a total dollar cost of$264,385.42 for just these six
cases. This is equal to 70.1 % of the total line item dollars for the two categories of Litigation
Expenses and Litigation-Outside Attorneys. To put it in another perspective, numerically speaking
these six cases represent 7% of the total number of cases handled or overseen by the City Attorney's
Office. While not all cases result in an equal expense to the City, to have 7% of the cases account
for over 70% of the budgeted cost for all cases is most unusual. Accordingly, the additional funds
in the form of the requested transfer and appropriation are needed for the City Attorney's Office
budget for the remainder of the current fiscal year.
Based upon the above, it is requested that the Mayor and Common Council adopt the
recommended floor motion.