HomeMy WebLinkAbout20D - AA LEGAL COSTS REIMBURSEMENTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 20, 2019
TITLE:
APPROVE AN APPROPRIATION
ADJUSTMENT NO. 2019-179 INCREASING
REVENUE AND EXPENDITURE ACCOUNTS
BY $74,000 TO COVER REIMBURSABLE
LEGAL COSTS ASSOCIATED WITH
SPECIFIC DEVELOPMENT PROJECTS FOR
FISCAL YEAR 2018-19 AND AN
APPROPRIATION ADJUSTMENT 2020-013
INCREASING REVENUE AND EXPENDITURE
ACCOUNTS BY $500,000 TO COVER
REIMBURSABLE LEGAL COSTS FOR
LEGAL SERVICES PROVIDED BY BEST
BEST AND KRIEGER LLP ASSOCIATED
WITH SPECIFIC DEVELOPMENT PROJECTS
FOR FISCAL YEAR 2019-20
(STRATEGIC PLAN NO. 4, 2A)
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY MA AGER
RECOMMENDED ACTION
1. Approve appropriation adjustment 2019-179 adding $74,000 to Account No. 05316002-
57000 Expense Reimbursement to reflect anticipated fees collected from developers to
cover outside legal costs associated with processing development projects and adding
$74,000 to Account No. 05316021-62300 Contract Services -Professional to reflect
anticipated payment of legal costs incurred by the City in processing development
projects. The total allocations are subject to non -substantive changes by the City
Manager and City Attorney.
2. Approve appropriation adjustment 2020-013 adding $500,000 to Account No. 05316002-
57000 Expense Reimbursement to reflect anticipated fees collected from developers to
cover as needed third party legal support associated with processing development
projects and adding $500,000 to Account No. 05316021-62300 Contract Services -
Professional to reflect anticipated payment of legal costs incurred by the City in
processing development projects. The total allocations are subject to non -substantive
changes by the City Manager and City Attorney.
20D-1
Appropriation Adjustment of Development -Related Legal Fees
August 20, 2019
Page 2
From time to time the City requires legal assistance that cannot be provided by in-house staff.
Best Best & Krieger LLP (BBK) has been retained to provide additional specialized legal services,
funded by the applicant, but operating under the direction of the City. The tasks undertaken by
BBK are overseen by the Planning and Building Agency and the City Attorney's Office. These
outside legal services are paid for by the developer in the following manner. Prior to beginning
work on a project, BBK provides an estimated cost for legal services. The estimated cost plus a
10% administrative fee is collected from the developer. As work on the project proceeds, staff
reviews the invoices to ensure that the estimated cost is not exceeded. If necessary, staff may
need to request additional funds from the developer to cover unanticipated additional costs.
Upon approval of the two proposed Appropriation Adjustments, revenues collected for project -
related legal fees will be deposited in Revenue Account No. 05316002-57000 Expense
Reimbursement. The 10% administrative fee will be deposited in the General Fund. Payments
for outside legal services will be appropriately charged to Expenditure Account No. 05316021-
62300 Contract Services -Professional.
ENVIRONMENTAL IMPACT
None.
STRATEGIC PLAN ALIGNMENT
Approval of the action allows the City to meet Goal #4 — City Financial Stability, Objective #2,
(provide a reliable five year financial forecast that ensures financial stability in accordance with
the strategic plan, Strategy A (adopt a budget that is in alignment with the financial forecast and
strategic plan).
FISCAL IMPACT
The appropriation adjustments will assign $574,000 to Revenue Account 05316002-57000
Expense Reimbursement and $574,000 to Expenditure Account No. 05316021-62300 Contract
Services -Professional as follows: All monies will be collected from developers. There will be a
slight increase in the General Fund from the 10% administrative fee.
20D-2
Appropriation Adjustment of Development -Related Legal Fees
August 20, 2019
Page 3
Accounting Unit,
Fiscal Year
Account Unit —
Fund Description
Account
Amount
Account #
Description
FY 2018/19
05316021-62300
City Services
Contract Services-
$74,000
Professional
FY 2019/20
05316021-62300
City Services
Contract Services-
Professional
$500,000
Minh Thai
Executive Director
Planning and Building Agency
CN/SM:Ia
S:RFCA\8-20-19
APPROVED AS TO FUNDS AND ACCOUNTS:
Kathryn Dow s, CPA
Executive Director
Finance and Management Services Agency
20D-3
20D-4