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Home My WebLink AboutS6- City Attorney CITY OF SAN BERNA tp INO - REQUEST FO" COUNCIL ACTION. From: James F. Penman Subject: Approval of appropriation from General Reserve to City Attorney Budget to Fund Dept: City Attorney Outside Attorney and Litigation Costs. Date: 6-17-93 Synopsis of Previous Council action: 12-7-92 -- Approved transfer of $190, 549 from General Reserve to pay for outside counsel bills and litigation costs incurred through November 30, 1992 ; authorized Finance Director to draw an additional $200, 000 from General Reserve to fund payment of outside counsel bills. 3-11-93 -- Authorized Finance Director to draw an additional $200,000 from General Reserve to fund payment of outside counsel bills. Recommended motion: That the Finance Director be instructed to draw dawn additional amounts not to exceed $200,000 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), plus an additional stun to cover estimated expenses for June as indicated by the City Attorney. Signature J s F. Penman Contact person: RICHARD J. MORTLLO, Sr. Asst. City Attorneyphone: 5055 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: $200,000 Source: Acct. No. Acct. Description) General Fund Reserve Finance: Council Notes: (�% /��- (�I,(I`1"�' �j .� !�` ► �:✓ lS Ci<:t/�' 1^J,f'� I/iCr-a b6ld't r�1 75-0262 Agenda Item No. S-6 CITY OF SAN BERNAPnINO - REQUEST FOR ;COUNCIL ACTION STAFF REPORT The City Attorney's budget contains two accounts out of which litigation expenses are paid. The "Litigation -- Outside Counsel" Account (No. 001-051-5-3049 ) is used to pay fees charged by outside counsel. The "Litigation" Account (No. 001-051-5-3050) is used to pay litigation expenses such as depositions and expert witness fees in all cases (that is, cases handled in-house and by outside counsel ) . In the 1992-93 budget, the Mayor and Council approved the combined sum of $314,379 for the two accounts. This was $664,000 less than this office requested. The original allocation was exhausted as of November, 1993, and so on December 7, 1992, the Mayor and Council approved a transfer of $390, 549 to these accounts from the general reserve. The transfer of an additional $200,000 was approved on March 11, 1993. Presently, we have bills in hand that exceed the amount left to draw from reserves. A summary is as follows: Fees $187, 702.25 Costs 73, 751.88 Total Bills to be Paid $261,454. 13 Remaining additional allocation 73, 818. 18 Shortfall ($187, 635.95) These bills do not include expenses for the month of June. We are in the process of preparing an estimate of this, which we will have available on Friday. We note that a substantial portion of the litigation expenses incurred this fiscal year is subject to reimbursement by the Economic Development Agency. On April 27, 1993, EDA was billed $333, 681 .08 as its reasonable share of the fees incurred in pending litigation. That bill has not yet been paid. (We note that once it is paid, the total general fund expenditures for litigation will be less than the amount we originally requested. ) We have asked that this item be placed on the supplemental agenda so the Mayor and Council can act on it before the end of the fiscal year. We did not have all of the figures available in time to place it on the regular agenda. 75.0264 CITY OF SAN BERNArq)INO = REQUEST FO' COUNCIL ACTION From: James F. Penman Subject: Approval of appropriation from General Reserve To City Attorney Budget to Fund Dept: City Attorney Outside Attorney and Litigation Costs. Date: 6-18-93 (REVISED STAFF REPORT) Synopsis of Previous Council action: 12-7-92 -- Approved transfer of $190, 549 from General Reserve to pay for outside counsel bills and litigation costs incurred through November 30, 1992; authorized Finance Director to draw-an additional $200, 000 from General Reserve to fund payment of outside counsel bills. 3-22-93 -- Authorized Finance Director to draw an additional $500, 000 from General Reserve to fund payment of outside counsel bills. Recommended motion: That the Finance Director be instructed to draw down additional amounts not to exceed $319, 635. 95 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) . � G Signature J mes F. Penman Contact person: RICHARD J. MDRILLO, Sr.Asst. City Attorney phone: 5355 Supporting data attached: YeS Ward: FUNDING REQUIREMENTS: Amount: $319,635.95 Source: (Acct. No. Acct. Description) sera- Fund Reserve Finance-&_ � C13 14 taVt Council Notes: Cury 'i/I ep" _ �i Q c✓ 6i3 �� l Gl� fY1c�Jc�J (� �� 1rr(Pr.F� "►�i� �Irt �ctJ ,f -�v X33 5,6-3' 75-0262 REVISED Agenda Item No. S CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT The City Attorney's budget contains two accounts out of which litigation expenses are paid. The "Litigation -- Outside Counsel" Account (No. 001-051-5-3049 ) is used to pay fees charged by outside counsel. The "Litigation" Account (No. 001-051-5-3050) is used to pay litigation expenses such as depositions and expert witness fees in all cases (that is, cases handled in-house and by outside counsel ) . In the 1992-93 budget, the Mayor and Council approved the combined sum of $314, 379 for the two accounts. This was $664,000 less than this office requested. The original allocation was exhausted as of November, 1993, and so on December 7, 1992, the Mayor and Council approved a transfer of $390, 549 to these accounts from the general reserve. The transfer of an additional $500,000 was approved on March 22, 1993. Presently, we have bills in hand that exceed the amount left to draw from reserves. A summary is as follows: Fees $187, 702.25 Costs 73, 751 . 88 Total Bills to be Paid $261, 454. 13 Remaining additional allocation 73, 818. 18 Shortfall ( $187, 635. 95 ) These bills do not include expenses for the month of June. We estimate those expenses to be $132, 000. ( See attached memo. ) Thus, the total amount required is: Shortfall $187, 635. 95 Estimated June Expenses 132,000.00 Total Amount Required: $319, 635. 95 We note that a substantial portion of the litigation expenses incurred this fiscal year is subject to reimbursement by the Economic Development Agency. On April 27, 1993, EDA was billed $333, 681 .08 as its reasonable share of the fees incurred in pending litigation. That bill has not yet been paid. We have asked that this item be placed on the supplemental agenda so the Mayor and Council can act on it before the end of the fiscal year. We did not have all of the figures available in time to place it on the regular agenda. 75-0264 CITY 0 SAN BERNARD .INQ INTEROFFICE MEMORANDUM TO: James F. Penman City Attorney FROM: Ric d . Morillo Sr. sistant City Attorney DATE: June 18, 1993 RE: Estimate of Litigation Expenses for June, 1993 The following is an estimate of additional litigation expenses the City can expect to incur for the month of June. The estimate includes both in-house and outside counsel cases, and reflects those expenses we expect to incur in addition to the billings "in hand" mentioned in our request to the Mayor and Council for additional funds. Firm/Source In-house $ 21,000 MacLachlan, Burford & Arias Armendariz 85,000 All Others 22, 500 Wilson, Borror, Dunn, Scott & Davis All cases 2, 500 Ferguson, Praet & Sherman Maryanne Johnson v. City 1, 000 Total $132,000 The estimate, excluding Armendariz is: $132, 000 -85, 000 $ 47, 000 S _ 6 . TO: James F. Penman, City Attorney FROM: Richard J. Morillo, Sr. Assistant City Attorney DATE: June 18, 1993 RE: Estimate of Litigation Expenses for June, 1993 Page 2 Recapping the total amount required to pay litigation costs through the end of the fiscal year results in the following computation: Current Shortfall $187, 635.95 Estimated June Expenses: 132,000.00 Total Amount Required: $319, 635.95 Please let me know if you need any additional information. S - �