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