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PROPOSAL:
Appropriate Funds from Designation for Litigation and
Enforcement and Authorize Amending/Initiating Contracts with Outside Counsel
SYNOPSIS:
AQMD District Counsel is currently being assisted in several
lawsuits by outside law firms, including multiple lawsuits challenging the
Architectural Coatings Rules, the recently adopted consumer products rule Rule
1143, Rule 433 Natural Gas Quality, and other matters requiring specialized
legal counsel. This action is to appropriate $375,000 from the Designation
for Litigation and Enforcement to the Legal Budget, Professional and Special
Services account, and to authorize the Executive Officer to amend or initiate
contracts to expend these funds with Woodruff Spradlin & Smart, Shute Mihaly & Weinberger, and other pre-qualified counsel approved by the Board as well as specialized legal counsel with monies to be appropriated as the need arises.
COMMITTEE:
Administrative, January 15, 2010, Recommended for Approval
RECOMMENDED ACTIONS:
- Appropriate $375,000 from the Designation for Litigation and Enforcement to Legal's FY 2009-2010 Budget, Professional and Special Services account.
- Authorize the Chairman of the Board or the Executive Officer, depending on whether the amount exceeds $75,000, to amend or initiate contracts with Woodruff Spradlin & Smart, Shute Mihaly & Weinberger, and other pre-qualified counsel approved by the Board as well as specialized legal counsel in a total amount not to exceed $700,000 in FY 2009-2010, as the need arises.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The FY 2009-2010 Budget for Legal included $325,000 for litigation expenses in environmental law cases and specialized legal counsel. Two law firms, Woodruff Spradlin & Smart and Shute Mihaly & Weinberger, have been assisting District Counsel with environmental litigation matters. The monies for environmental litigation matters have been and will be expended on lawsuits involving the Architectural Coatings Rules, the recently adopted rule for consumer paint thinners Rule 1143, the lawsuit seeking to overturn Rule 433 Natural Gas Quality, as well as other matters requiring specialized legal counsel. Although District Counsel has put cost-containment measures in place, it is expected that expenses in these matters, and the other matters handled by specialized legal counsel will require an additional amount up to $375,000 before additional authorized funding is available in July 2010. Accordingly, District Counsel is requesting the appropriation of additional funds in the amount of $375,000, for a total expected expenditure of $700,000 this fiscal year.
Proposal
In order to defend on-going and threatened litigation, it is necessary to appropriate additional funds for expenditure by outside counsel. It is expected that on-going lawsuits, and new litigation that is possible, as well as matters requiring specialized legal counsel will require an additional $375,000 to be appropriated to Woodruff Spradlin & Smart, Shute Mihaly & Weinberger, and other pre-qualified counsel approved by the Board, as well as specialized legal counsel, as the need arises.
Resource Impacts
Sufficient funds will be available in Legal's FY 2009-10 Budget following the transfer of funds from the Designation for Litigation and Enforcement.
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