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Home My WebLink AboutUnbudgeted Expenditure - Increase City Attorneys Legal Servi (5) (°�07 - � Qhvo,g, C Council/Agency Meeting Held: "d) Deferred/Continued to: NQ= roved ❑ Conditional) Approved ❑ Denie Cle Signature Council Meeting Date: 6/4/01 Department ID Number: CA 01-013 z CITY OF HUNTINGTON BEACH c =' a Z n REQUEST FOR COUNCIL ACTION un z-<�m SUBMITTED TO: NORABLE MAYOR AND CITY COUNCIL MEMBERS > D-nm Hrn SUBMITTED BY: L HUTTON, City Attorney � a PREPARED BY: 1v �L HUTTON, City Attorney SUBJECT: S` Approve Amendment of City Budget to Increase City Attorney's Legal Services Account F atement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Whether to approve the amendment of City budget to increase City Attorney's Legal Services Account Funding Source: Name of Fund: General Fund Account Description; Unreserved/Undesignated Dollar Amount: $435,000 Recommended Action: Approve and authorize the Director of Administrative Services to appropriate $435,000 from the General Fund Balance to the City Attorney's Legal Services Account No. 10015301.69375 to fund the remainder of anticipated costs for outside legal counsel for fiscal year 2000-2001. Alternative Action(s): Do not approve $435,000 increase to the City Attorney's budget and process individual appropriation requests as each outside counsel bill comes in for payment. Analysis: The City Attorney's Office budget for Contract Legal Services for fiscal year 2000-2001 is $300,000. On March 19, 2001, the City Council approved an additional $200,000 appropriation to pay for on-going litigation. The City Attorney has now developed an estimate of anticipated litigation costs through the end of the fiscal year, as described below: REQUEST FOR COUNCIL ACl iON MEETING DATE: 6/4/01 DEPARTMENT ID NUMBER: CA 01-013 AES Proceedings before the California Energy Commission. — This case, more than any other, could not have been anticipated at the start of the fiscal year. The total cost of litigating this matter will be $250,000. Of the $435,000 requested in this appropriation, $135,000 is needed to pay outstanding invoices in this case. At the same time, it must be noted that the City was largely successful in this action. As a result of the City's efforts, the following conditions were added to AES's permit: 1. AES to sell power to the State of California, not on the "spot marker." 2. The term of the permit is limited to ten years (Historically, there has never been a term placed on Energy Commission permits.) 3. Units 3 and 4 are to be operated with selective catalytic reduction technology at all times. 4. Except when a blackout is imminent, Unit 5 (the eight gas turbines making up a peaking unit at the site) is not to operate during any hours in which Units 3 and 4 are operating. Unit 5 is to be decommissioned no later than December 31, 2002, unless air pollution technology is installed. 5. AES is required to perform a one-year monitoring study of marine life losses resulting from power plant operations and is to place $1.5 million in escrow to assure timely completion of the study. Additional funds may be required for compensation or restoration of nearby wetlands, depending on the outcome of the study. 6. AES is required to cooperate with local authorities in the completion of a study related to contributions its plant operations may make to the presence of indicator bacteria in the local surf zone and is to place $1.0 million in escrow to assure timely completion of the study. Talbert & Beach v. City of Huntington Beach — a non-tort suit brought by the Flamingo Theater challenging the City's recent amendment to the adult business ordinance. The City successfully defended an application for a preliminary injunction in the trial, but plaintiff has appealed. It is anticipated that approximately $75,000 will be needed to complete the case through the end of the fiscal year 2000/2001. Howard Jarvis Taxpayers v. City of Huntington Beach —. A final judgment was issued on April 2, 2001. It is anticipated that post-trial motions and the appeal will cost $120,000 Ionic Construction v. City of Huntington Beach — The painting contractor for City Hall sued the City. It is anticipated that $35,000 is needed for case development, pretrial pleadings and motions, and discovery during fiscal year 2000/2001. City of Huntington Beach v. K J Enterprises — After construction began on the Beach Maintenance Facility, the oil operator on the site objected. The City filed suit to quiet title. It is anticipated that $40,000 will be needed, during fiscal year 2000/2001. Increaselegal.doc -3- 5/24/01 9:02 AM REQUEST FOR COUNCIL AC) iON MEETING DATE: 6/4/01 DEPARTMENT ID NUMBER: CA 01-013 Robert J. Wheeler The City Attorney and Mr. Wheeler wish to convert his status from part-time employee to independent contractor for legal services. An RCA for 6/4/01 has been submitted for Council approval for Mr. Wheeler's contract with the City of Huntington Beach. It is anticipated that $30,000 will be needed, during fiscal year 2000/2001. COUNCIL POLICY REGARDING REQUESTS FOR AN APPROPRIATION OF FUNDS: As adopted by the City Council in March 1998, all requests for appropriation of funds must meet one of the following criteria; 1) The request is for an unanticipated emergency, 2) the request is required to implement labor negotiations, or 3) The request will be offset by related new revenues. The new appropriations being requested is for an unanticipated emergency to pay for the above- described cases that the City Attorney's Office expect to be costly and cannot be completed within existing funds. Environmental Status: Not Applicable Attachment(s): City Clerk's Page • • • Description 1 Fiscal Impact Report RCA Author: Scott Field Increaselegal.doc -4- 5/24/01 9:05 AM ATTACHMENT # 1 � Jff CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: Clay Martin, Director of Administrative Services Subject: FIS 2001-43 Approve Amendment of City Budget to Increase City Attorney's Legal Services Account Date: May 15, 2001 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve Amendment of City Budget to Increase City Attorney's Legal Services Account." If the City Council approves this request (total appropriation $435,000), the estimated unreserved General Fund balance at September 30, 2001 will be reduced to $9,349,382. Clay Ma n, Directo of Administrative Services w Fund Balance-General Fund Adopted Budget Current Estimate Beginning Fund Balance 10/1/2000 $ 9,181,000 $ 9,181,000 Plus Outstanding Encumbrances $ 3,877,000 $ 3,877,000 Plus:Estimated Revenue 127,315,000 130,586,000 Less. Estimated Expenditures (131,192,000) (130,484,000) Pending/Approved FIS's (3,375,618) Less:FIS 2001-43 (435,000) Estimated 9/30/2001 Unreserved Balance $ 9,181,000 $ 9,349,382 General Fund Balance $12,000,000 r $11,000,000 _, ...._... ___..........-...... ... ... $10,000,000 - $9 000 000 } $8,000,000 ffd;3 $7,000,000 ' H $6,000,000 '� L� $5,000,000 ADOPTED CURRENT BUDGET ESTIMATE Fiscal Year 2000-2001 RCA ROUTING SHEET INITIATING DEPARTMENT: CITY ATTORNEY'S OFFICE SUBJECT: Approve Amendment of City Budget to Increase City Attorne 's Legal Services Account COUNCIL MEETING DATE: June 4, 2001 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 in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorne ) Not Applicable Certificates of Insurance (Approved by the City Attorney) 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 FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial Ct/I� City Clerk EXPLANATION.FQR RETURN OF IT ,. 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