AGENDA ITEM NO. 4
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AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
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| DATE: | June 16, 2026 |
TO: |
Mayor and City Council |
FROM: |
Milan Mrakich, City Manager |
SUBJECT: |
CONSIDERATION OF ADOPTING BUDGET AMENDMENT FOR LEGAL SERVICES
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RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2026-51 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2025 AND ENDING JUNE 30, 2026 (LEGAL SERVICES)
BACKGROUND:
On June 17, 2025, City Council adopted a budget for Fiscal Year 2025-26.
On September 16, 2025, City Council approved special counsel Buchalter, Gemelli Employment Law, and Plante & Moran to assist with City Council investigations.
On December 16, 2025, City Council approved the additional appropriations (Budget Amendment BA 2026-13) for legal fees in the amount of $500,000.
On September 16, 2025, City Council approved special counsel Buchalter, Gemelli Employment Law, and Plante & Moran to assist with City Council investigations.
On December 16, 2025, City Council approved the additional appropriations (Budget Amendment BA 2026-13) for legal fees in the amount of $500,000.
DISCUSSION:
This year, legal costs have been substantially higher than in prior years. See below for summary of estimated legal expenses by activity (Table 1) and firm (Table 2).
Due to ongoing legal cases, investigations, and related professional services, actual costs are anticipated to exceed the budget appropriation. Staff is requesting an additional $457,600 to cover outstanding and anticipated invoices for legal, investigative, forensic analysis, personnel reviews, and other consulting services associated with these matters.
Staff is also requesting an increase to the Human Resources legal services budget from $50,000 to $172,000, representing an additional appropriation of $122,000, to address personnel-related matters, ADA, and labor negotiations.
Collectively, these budget adjustments total $606,900 and will ensure adequate funding is available to maintain continuity of legal counsel, investigative support, and related professional services for the remainder of the fiscal year.
Total legal services for FY 2025-26 are estimated to exceed $1.9 million, compared to $1.1 million in the prior fiscal year. Due to ongoing litigation matters, staff anticipates that additional funding may be necessary to cover legal services incurred during May and June 2026. If required, staff will return to City Council no later than August 2026 with a budget amendment request to appropriate additional funds for these expenditures.
Due to ongoing legal cases, investigations, and related professional services, actual costs are anticipated to exceed the budget appropriation. Staff is requesting an additional $457,600 to cover outstanding and anticipated invoices for legal, investigative, forensic analysis, personnel reviews, and other consulting services associated with these matters.
Staff is also requesting an increase to the Human Resources legal services budget from $50,000 to $172,000, representing an additional appropriation of $122,000, to address personnel-related matters, ADA, and labor negotiations.
Collectively, these budget adjustments total $606,900 and will ensure adequate funding is available to maintain continuity of legal counsel, investigative support, and related professional services for the remainder of the fiscal year.
Total legal services for FY 2025-26 are estimated to exceed $1.9 million, compared to $1.1 million in the prior fiscal year. Due to ongoing litigation matters, staff anticipates that additional funding may be necessary to cover legal services incurred during May and June 2026. If required, staff will return to City Council no later than August 2026 with a budget amendment request to appropriate additional funds for these expenditures.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the resolution and approved it as to form.
OPTIONS:
The City Council has the following options:
- Approve staff’s recommendation; or
- Provide alternative direction.
Prepared by:
Karen Ogawa, Finance Director
Additional Approval:
Roxanne E. Lerma, Assistant City Manager
Fiscal Impact
FISCAL IMPACT:
Approval of the proposed budget amendment for Fiscal Year 2025-26 will be funded through available General Fund reserves. The proposed budget amendment will require the following funding:
| ACCOUNT | ACCOUNT NUMBER | AMOUNT REQUESTED | FUND |
| Legal Services | 110.501.11.04.00.00.61.61110. | $266,400 | General Fund (110) |
| Legal Services | 110.501.14.08.10.00.61.61110. | $122,000 | General Fund (110) |
| Litigation | 110.501.11.04.10.00.61.61130. | $191,200 | General Fund (110) |
| Retainer | 110.501.11.04.10.00.61.61780. | $27,300 | General Fund (110) |
| Total | $606,900 |
Attachments
CITY COUNCIL GOALS & OBJECTIVES:
Achieve Fiscal Sustainability and Financial Stability
Enhance City Image and Effectiveness
Enhance City Image and Effectiveness