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AGENDA ITEM REVIEW FORM
6.E.
Regular City Council Meeting
Meeting Date:
05/28/2025
Department Head:
Kay Macuil
Submitted By:
Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion

ITEM:

Discussion and possible action on any and all matters regarding the ratification of payment for legal work of outside counsel for the lawsuit against the city in Federal Court (U.S. District Court for Arizona Civil Case No. 2:24-cv-00534-ESW), and to approve transfer of City Council contingency funds for continued legal work on the case through the end of the fiscal year as well as replenishing the legal services general ledger account through the end of the fiscal year.  (Kay Marion Macuil, City Attorney)

SUMMARY:

Costs related to Gethsemani v. San Luis
This item is to ratify this fiscal year's payments of $90,304.06 for legal fees and fund $80,000 in future services through June 30, 2025, from the law firm of Gammage & Burnham in the above-referenced case that the Gethsemani Baptist Church brought against the City of San Luis.

Other Legal Costs Unrelated to Gethsemani
This item also requests replenishing a $15,000 negative balance in the City Attorney's Office's general ledger account for legal services and providing a $10,000 fund for legal contingencies through June 30, 2025.

Council Contingency Request for both Gethsemani and Unrelated Legal Matters
A total of $105,000 in Council Contingencies is requested, which consists of:
  • $15,000 to replenish the $15,000 negative balance,
  • $80,000 for the Gethsemani case through June 30, 2025, and
  • $10,000 for all legal services contingencies through June 30, 2025.
Total Legal Expenses for Gethsemani since November 2023
This agenda item does not include another $76,140.30 in expenses incurred for the Gethsemani v. San Luis federal case, specifically:
  • FY 2024 we spent $55,175 (November 2023).
  • This FY 2025, $20,965.30 was paid to First Legal, a legal technology firm, which was necessary to properly handle digital documents, images, and e-mail for litigation. (First Legal was paid from the City Attorney's Contractual Services line.)
When combined with the current fiscal year's expenses of $90,304.06 already spent from the City Attorney's Legal Services line and an additional $80,000 anticipated through June 30, 2025, the total legal costs for this case amount to $246,444.36.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO RATIFY $90,304.06 IN LEGAL EXPENSES TO GAMMAGE AND BURNHAM AND APPROVE $105,000 FROM COUNCIL CONTINGENCIES FOR ALL LEGAL CONTINGENCIES THROUGH THE END OF THE FISCAL YEAR, JUNE 30, 2025 AND TO CONTINUE UNDER THE TERMS OF THE ATTACHED MARCH 22, 2024, ENGAGEMENT LETTER TO REPRESENT AND DEFEND THE CITY OF SAN LUIS IN ANY AND ALL MATTERS IN THE U.S. FEDERAL COURT, ARIZONA, DISTRICT CASE NO. 2:24-CV-00534-ESW.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
Yes
CITY/STATE/FEDERAL FUNDS:
City
TOTAL:
$195,304.06 ($90,304.06 Ratify & $105,000.00 transfer from Council Contingency)
BUDGETED AMOUNT:
$130,000.00 for all legal contingencies for 2024-2025 Budget Year
AVAILABLE AMOUNT TO TRANSFER:
$105,000.00 from Council Contingencies
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
GL 100-110-81000 City Council Contingencies Balance $265,000.00

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

For the current fiscal year (starting July 1, 2024), the City Attorney’s Office incurred $90,304.06 in expenses for the Gethsemani v. San Luis case from the GL Account 100-117-80003.
Along with other legal services incurred this year for investigations, condemnations for widening roads on Avenue E and Cesar Chavez Boulevard, Police Advisor services, and an inoperable trash truck, the legal services line item is overdrawn by $15,000.00.

Staff requests that the City Council authorize a budget transfer of $105,000.00 from the City Council Contingency Account (100-110-81000), to be allocated as follows:

  • $15,000.00 to cover the current negative balance in the Legal Services account;

  • $80,000.00 to cover the anticipated legal fees for the remainder of the fiscal year for Gethsemani v. San Luis (in addition to the $90,304 already incurred); and

  • $10,000.00 to provide a contingency for any additional legal expenses on any topic through June 30, 2025.

Attachments