HomeMy WebLinkAboutIncrease City Attorneys Legal Services Account - Outside Leg i
- NTINGTON BEACr, '
-CITY OF HU
e.
MEETING DATE: December 15, 1997 DEPARTMENT ID NUMBER: 7 22
Council/Agency Meeting Held
Deferred/Continued to ` J
2-Ap roved ❑ Conditionally Ap roved ❑ Denied A"`5- City Clerk's ignature
Council Meeting Date December 15, 1997 Department ID Number 9W22
CITY OF HUNTINGTON BEACH ;
crj ,q,�,,fn
REQUEST FOR COUNCIL ACTION _f�,,c,
xu
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: R Y SILVER, Acting City Administrator ekd
(2 4;1-17
PREPARED BY: AIL HUTTON, City Attorney
SUBJECT: Approve Amendment of City Budget to Increase City Attorney's Legal
�- Services Account - -
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis,
Environmental Status, Attachment(s)
Statement of Issue: Whether to amend the City budget legal services account no E-AA-AT-1 31-
4-05-00 by appropriating $300,000 to Legal Services Account E-AA-AT-131-4-05-00 from the City's
General Fund
Funding Source: Unappropriated General Fund
Recommended Action: Amend the City Attorney's budget by appropriating $300,000 to the City
Attorney's legal services account no E-AA-AT-131-4-05-00 to partially fund the costs for outside
legal counsel for fiscal year 1997-98
Alternative Action(s): Do not approve $300,000 increase but instead approve $220,000 increase
to the City Attorney's budget to fund and process individual appropriation requests as each outside
counsel bill comes in for payment during the entire fiscal year
97-22.DOC -2- 12/10/97 4.05 PM
kr-QUEST FOR COUNCIL ACTS
L
MEETING DATE: December 15, 1997 DEPARTMENT ID NUMBER: 97-22
Analysis: In May 1997, at the suggestion of the City Council, a new additional legal
services account 131-4-05 was established for ongoing specific litigation funding The two legal
services accounts (130-4-05 miscellaneous legal services & 131-4-05 ongoing specific litigation
legal services) were discussed at the "budget review" with Mr Uberuaga, City Administrator Mr
Uberuaga suggested at that time that the City Attorney's Office bring back the requested City
Attorney legal services funds for ongoing specific litigation legal services(131-4-05) for council
action after the budget process
When the City Council established the 1997-98 budget, only ($7,000) was appropriated in account
(130-4-05) to pay for miscellaneous legal services Per Mr Uberuaga's request, no funds were
requested for (131-4-05) for various on-going outside council who are handling City cases However,
historically the "actual final appropriation" for the legal services account has been as follows
M
1991-92 $148,128
1992-93 386,991
1993-94 295,871
1994-95 283,702 (15 months)
1995-96 308,165
1996-97 434,344 (combination of legal services accounts 130-4-05&131-4-05,
see attached City Attorney's 97/98 Program Cost Detail, Exhibit 1)
The six (6) year average actual final appropriation for legal services is $309,534
The legal services account (see attached City Attorney's Outside Counsel 97-98 Accounts Chart,
Exhibit 2) is utilized to pay all outside counsel fees except
(1) tort, civil rights and workers' compensation cases (these are paid from the Risk
Management legal services account),
(2) the Peck Reservoir lawsuit defended by Gibbs, Giden, Locher & Acret (this is paid
from the water fund legal services account),
(3) Redevelopment special counsel Murray Kane of Kane Murray & Berkman and the
Bloom vs Redevelopment Agency lawsuit defended by Arter & Hadden law firm
(these are paid from Redevelopment legal services account a special account within
the City Attorney's budget)
97-22.DOC -3- 12/10/97 4.05 PM
RcQUEST FOR COUNCIL ACTR
MEETING DATE: December 15; 1997 DEPARTMENT ID NUMBER: 97-22
Currently, the following attorneys are handling matters for the City Attorney's office and are paid from
the legal services account (131-4-05) (see attached City Attorney's Outside Counsel 97-98 Accounts
Chart, Exhibit 2)
Attorney Matter Request Amount
James Ackerman American Trader oil spill (case in trial) $85,000
Liebert, Cassidy & Frierson various personnel matters, including the 40,000
City v PERS
Kane, Ballmer& Berkman Conflict of interest code review 20,000
Whitmore, Johnson & Bolanos Heavy Equipment Operators Grievance, 20,000
on-going advice on personnel matters
Rexon, Friedman, et al Special counsel to the Personnel Comm 5,000
Snell &Wilmer O C v Merrill Lynch- Bankruptcy 20,000
Woodruff Spradlin & Smart Personnel & Labor relations 5,000
Kinkle Rodiger& Spriggs Mamola v Lowenberg- Denial of ABC License 10,000
McNamara, Van Blarcom, et al Special counsel re water service issues 10,000
Mayer Coble & Palmer Police-related personnel matters 10,000
Gibbs, Giden, Locher&Acret Legal consultation for Public Works matters 10,000
Based upon these on-going cases and for now unknown contingent legal cases, the City Attorney
forecasts the need for an additional $300,000 for the balance of the fiscal year 1997-98 for the legal
services account (131-4-05)
As of December 4, 1997, the City Attorney's Office has $70,076 in unpaid legal
services bills that need to be paid. The,City has received a check in the amount of
$220,000 in partial settlement of attorney's fees awarded in the "Oil Spill" litigation.
These funds will go to the City's General Fund.
Re: Alternative Action: If you approve the action of appropriating $220,000 to account No E-AA-
AT-131-4-05-00, the City Attorney's Office will be unable to process all individual appropriation
requests as each outside counsel bill comes for payment since we will surely run out of funds
before the end of the fiscal year This will be inefficient, time consuming and create delays in
payment to special counsel
Environmental Status: N/A
Attachment(s):
Page Number No.City Clerk's
ip-
1 City Attorney's Office 1997-98 City Budget, page 118
2 City Attorney's Outside Counsel 97-98 Accounts Chart
3 Fiscal Impact Statement -
4 Letter to Gail Hutton from Attorney Ackerman, dated 12/2/97
97-22.130C -4- 12/10/97 4.05 PM
EXHIBIT ,
/
CITY OF HUNTINGTON BEACH
PROGRAM COST DETAIL
Department Function Accounting Division Proaran N
City Attorney General Government I AA-AT-130 City A
t�tTr`
<-----------Historical Data-------------> <---- Pro osed Bud et a,.,orne
Estimated Department
Acct. Actual Actual Budget Actual Re uest RAN
No. Personal Sen ices FY 94/95 FY 95/96 FY 96/97 FY 96/97 FY 1997/98 FY +
1yg� ':d a`
1 10,` Salaries,Permanent 862,149 824,561 830,292 845,859 846,612 f;nt re
120 Salaries,Temporary 49,452 50,386 72,233 50,080 58,000 to th,
130 Salaries,O%ertime 362 0 0 t t}1e'
--- Benefits,Permanent 227,515 216.866 249,694 212,651 228,667 2i j rs and
•
--- Benefits,Temporary 717 731 1,047 726 841
--- Ne%+ Positions 34,465 3 ,",FICA
Total Personal Services 1,139,833 1,092,906 1,153,266 1,109,315 1,168,585 1 17c
Operating Expense �Rs,11
210 Telephone 6.511 236 550 ERAT;
211 Postaize/Deliveries 0 2,070 2,000 2,300 2,500
221 Supplies/Equip Special Dept 4,154 4.193 5,000 5 000 5,000 t rmane
231 Supplies,Info Sys 98 300 300 996 i
9961
236 Supplies Mailing 452
._O:inio
250 Mileaee Reimbursement 1.243 1,056 2,000 1 000 1,500 1
251 Auto Allo%�ance 4,800 4 800 4.800 4.800 4.800 k r qor
320 Books 47,359 47,062 45,000 45,000 45,000 45-
321 Periodicals/Subscriptions 1,712 2 813 1,000 2.000 2,000 L
358 AdNenising 278
382 Rental Expense 6.781 8 260 6,700 6,700 6,700 4
388 Soft%+are 198 1,706 2,000 1.500 2,000 ram RE
390 Contractual Services 107 500 500 4pphcab
405 Leeal Services 283,702 296,000 27,000 434,344 7,000 21 Progr
406 Lineation Sen ices 365,040 3,385 5000 5,000 6,000
407 Printing/Reproduction 1,692 LE OF
434 Maintenance, Dept Equip 103 2,000 AGE/CI
460 Meetings 2,679 3,536 3,000 3,000 3,000 Dent 1
461 Conferences 2,621 3,802 6,000 4,000 6,000 Cir
540 Trainine&Schools 1,397 1,410 2,000 2.500 2,500 De,
545 Dues&Memberships 5,126 5,702 7,000 5,000 6,000 De,
553 Equipment Usage 278 245 310 300 300 De,
Lai
593 Miscellaneous 35 IIn`
Par
Ad
Sec
Sec
Of,
11� �
Total Operating Expense 735,781 386,625 119,310 522,980 103,650 Perm To
Total Capital Costs 1,874 717 Gross Program Cost .235 3
Le
1,877,488 1,480,248 1,272,576 1,632,2 1,27
Sec
Program Reimbursement
Net Program Cost 1,877,488 1,480,248 1,272,576 1,632,295 1,272,235 1,3
BGT98-AT.XLS r r118 S16y1
EXHIB IT
CITY ATTORNEY'S OUTSIDE COUNSEL 97-98 ACCOUNTS CHART
APPROPRIATION AMOUNT PAID PREVIOUSLY ESTIMATED FUTURE
OUTSIDE COUNSEL&CASE 96-97 96-97 Budget to AMOUNT DUE ENCUMBERED AMOUNT BILLINGS&REQUEST
E-AA-AT-131-4-05 Date REMAINING IN AMOUNT FOR NOW
APPROPRIATION 97-98 KNOWN CASES OR
ISSUES
Ackerman,James-American Trader Oil Spill 84,140 84,140 37,240 -0- 85,000
Liebert Cassidy&Frierson(Peter Brown, 50,000 40,566 -0- 9,434 40,000
Esq.)-PERS issues,HBFA v City and MEO/MEA
v City grievance,Graham v City(Lifeguard
challenge)
Kane Ballmer&Berkman,Michael Karger 10,000 8,945 8,338 1,055 20,000
&Murray Kane
(Various Matters:conflict of interest;financial
disclosures procedures,grievance)
Cynthia O'Neil,Esq. 10,000 8,914 -0- 1,086 10,000
Whitmore Johnson&Bolands
Heavy Equipment Operators lawsuit
Whitmore Johnson&Bolands 10,000 9,268 0 732 10,000
„ Police Grievance
Rexon Freedman Klepetar&Hambleton 7,000 3,379 -0- 3,621 5,000
Freedman,Jeffrey,Esq.
10,000 contract-Special Counsel to Personnel
Commission conflict
Jeffrey S.Marks,Esq.&Annette Sanders- 23,760 23,760 0 0 20,000
Snell&Wilmer(O.C.Bankrutpey)Subponea
documentation-under$10,000 contract for
emergency Bankruptcy Services-O C v Merrill
Lynch
Woodruff Spradling&Smart 10,000 6,225 0 3,775 5,000
Labor&Personnel matters
Kinkle Rodiger&Spriggs 0 0 8,180 10,000
Mamola v Lowenberg-Denial of ABC
License
McNamara Van Blarcom,McClendon& 0 0 4630 10,000
Leibold(Water Issues)
Mayer Coble&Palmer(Police related 0 0 5,000 approx 0 10,000
personnel matters)
Gibbs Gidden Locher&Acret(Public 0 0 6,688 0 10,000
Works matters)
TOTAL 204,900 185,197 70,076 19,703 235,000
G gig uere\budget\budgetl1 doe
EXHIBIT
3
CITY OF HUNTINGTON BEACH
Vu INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, Acting City Administrator
From: Dan T.Villella, Director of Finance
Subject: FIS 98-09 City Attorney's Outside Legal Services Account
Date: November 24, 1997
As required by Resolution 4832, a Fiscal Impact Statement has been
prepared for City Attorney's Outside Legal Services Account.
If the City Council approves this request (total appropriation
$300,000) the estimated unappropriated, undesignated General
Fund Balance at September 30, 1998 will be reduced to $4,082,885.
1,
--mil/%
Dan T.Villella,
Director of Finance
FIS9809
Adopted Current
Fund Balance -General Fund Budget Estimate
Beginning Fund Balance 10/1/97 (Est) $5,100,000 $5,100,000
Less Approved One-Time Costs (85,910)
Less: Pending Budget Amendments (631,205)
Less FIS 98-09 (300,000)
Estimated 9/30/98 Balance $5,100,000 $4,082,885
- I
Estimated General Fund Balance at September 30, 1998
$5,500,000
i
$5,000,000
$4,500,000
$4,000,000
$5,100,000
$3,500,000
i
$3,000,000 $4,082,885
ADOPTED BUDGET CURRENT ESTIMATE j
Page 1
EXHIBIT z1
LAW OFFICES
J JAMES H. ACKER.MAN
ONE WORLDCV►JrER
r SUITE
144E 44P
IAONG BEACH,CALIFORNIA 90831.1440
(562) 432.000$
(3d21 436•$$1 I
ATTQRNM AT LAw CABLE ADDRESS "JIMACK-
PRO=RS IN ADMIRALTY TELECOFIIER 0502> 435-1 897
December 2, 1997
Gail Hutton
City Attorney
City of Huntington Beach
2000 Main street
Huntington Beach, California 92648
I
Res American Tradgr Oil Spi11 1,itig Lion
Dear City Attorney Hutton:
Enclosed is a State of California check made to the City of
Huntington Beach in the amount of $219, 387. 00, dated 11/25/97.
You will note this check #07-788168 is drawn on the state of
California Litigation Deposit Fund A0920. Th;,s Fund represents
sums that have been recovered to date in this matter through
settlement. It is partial reimbursement to the City for attorney's
fees you have paid out to this office in connection with this
litigation.
The jury trial against the Only defendant 1C ft in this case,
Attransco, the owner of the vessel American Trzlder, should go to
the jury this week. As always, we will keep you informed and up to
date.
Yours truly,
�AMEIS H. ACKERMAN
JHAssm
Enclosure
'i Icl 0190 _0_11 -1=10 f,IH�
REMITTAN ADVICE THE INCH a WARRAI'T IS 7N PAYMIiNT OF INVOICIE AB SHOWN BELOW CALIF
ADVICEOF
STD,4W 1REV,11/eyl
DEPARTMENT DEPT 190, INVOICE D ITE INVOICE NUMBER
INVOICE
DEPARTMENT OE JUSTICE LITIGA110N DEP. FUND
DEPARTMENT AODREBS CLAIM SCHFO NO AMERICA✓` TRADER 11/0/97 1T9,3B7 00
13001STREET 970854
VENDOR: JAMES H ACKERMAN, ESQ.
SPECIAL COUNSEL
CITY OF HUNTINGTON BEACH
ONE WORLD TRADE CENTER SUITE 1440
LONG BEACH, CA, 90331
FEDERAL TAX ID. NO. AP TYPE TOTAL REPORTED TO IR9(SEE APt S) TOTAL 21 9,387,00
OR SSAN 4— Thh amount w)ll be reported In acoardence with Sect
of the Internal Revenue Code
07AV& coup C u u m� uA ('� WAF71FAQNTNQUMBEp�j z
' {t�..`�� I'_'� �rIr1L..A�f��n"PUND NO. FUND NAME 0 7— 1 V V 1 "E
H THE TREASURER OF THE STATE VWLL PAY OUT OFTHE0920 LITIGATION DEPOSIT FUND
IDE:NT)FICATION NO, MO DAY I YR 90.1342/1211
0820 11; 25! 1997
I I
LA ARS CENTS
---To CITY OF HUNTINGTON BEACH $ **2I9387 00
KATHLEEN CONNELL
STATE CONTROLLER t
1: 1 2 1 L 131, 231: 0 ? ?$8 L689111
r,0'=.T
RCA ROUTING SHEET
INITIATING DEPARTMENT: CITY ATTORNEY
SUBJECT: APPROVE AMENDMENT OF CITY BUDGET TO
INCREASE CITY ATTORNEY'S LEGAL SERVICES
ACCOUNT
COUNCIL MEETING DATE: December 15, 1997
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed 1n full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attomey) Not Applicable
Certificates of Insurance (Approved by the CityAttomey) Not Applicable
Financial Impact Statement (Unbudget, over$5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION O MISSING ATTACHMENTS
Waiting for Fiscal Impact Statement from Administration Services
REVIEWED RETURNED : : I"OR ED
Administrative Staff ( )
Assistant City Administrator (Initial) ( ) ( )
City Administrator (Initial)
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM: