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HomeMy WebLinkAbout09-City Manager 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).