Rancho Palos Verdes City Council
   

DECEMBER 7, 2004 RETENTION OF OUTSIDE LEGAL SERVICES DECEMBER 7, 2004 RETENTION OF OUTSIDE LEGAL SERVICES

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: CITY MANAGER

DATE: DECEMBER 7, 2004

SUBJECT: RETENTION OF OUTSIDE LEGAL SERVICES

RECOMMENDATION:

Adopt Resolution No. 2004- , amending Resolution No. 2004-45, the Budget Appropriation for FY04-05, to increase the City Attorney budget for professional and technical services.

BACKGROUND AND DISCUSSION:

The City Council has previously approved the services of outside Counsel to assist in defending lawsuits or potential lawsuits against the City including:

    • Baker Botts LLP, Attorneys at Law Abrams Supreme Court Litigation
    • Thomas & Thomas LLP, Attorneys at Law Indian Ridgecrest Gardens Litigation
    • Miller & Van Eaton, Attorneys at Law Cox Negotiations and other issues

On September 7, 2004 the City Council increased the budget for outside legal expense from $4,000 to $254,000. The estimated cost of the services of the three firms currently engaged in authorized City litigation or negotiation will require an additional $120,000. The majority of the needed budget increase is related to the Indian Ridgecrest Gardens case ($100,000). The remaining $20,000 is related to the Abrams case and legal assistance from Miller & Van Eaton. Therefore, the budget for outside legal services should be increased from $254,000 to $374,000.

In addition, due to the ongoing cases that are being handled by Richards, Watson & Gershon and additional assistance with code enforcement, there is an upward trend in our litigation expenses for cases handled by Richards, Watson and Gershon that will require an increase in their budget from $696,000 to $960,000.

FISCAL IMPACT:

Authorizing additional funds for legal services will reduce the General Fund Reserves by $384,000 during the current fiscal year. A Statement of Estimated General Fund Reserves is attached for the Council’s information.

Respectfully submitted,

Les Evans

City Manager

Attachment: RESOLUTION NO. 2004 –

RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2004-45, THE BUDGET APPROPRIATION FOR FY04-05, TO INCREASE THE CITY ATTORNEY BUDGET FOR PROFESSIONAL AND TECHNICAL SERVICES

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council: and

WHEREAS, on June 1, 2004, the City Council of the City of Rancho Palos Verdes adopted Resolution 2004-45, approving a spending plan and authorizing a budget appropriation for FY04-05: and

WHEREAS, additional funds are needed for outside legal services.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustments be made to the FY04-05 budget:

Increase the General fund budget as follows:

City Attorney #101-1003-411-32-00 Professional/Technical $384,000

PASSED, APPROVED, AND ADOPTED THE 7th DAY OF DECEMBER 2004.

___________________________

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2004- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 7, 2004.

_____________________________

CITY CLERK, CITY OF RANCHO PALOS VERDES