South Coast Air Quality Management District

Appropriate Funds and Amend Litigation Services Contract

SYNOPSIS: 

Staff recommends that the Board authorize the Executive Officer to amend the contract with the law firm of of Shute, Mihaly & Weinberger for an additional amount of up to $30,000 for FY 2001-02. In addition, this action is to appropriate $30,000 from the Designated for Litigation/Enforcement to the Services and Supplies Major Object, Professional and Special Services account for this purpose.

COMMITTEE: 

Administrative, May 10, 2002, Recommended for Approval

RECOMMENDED ACTION:

1. Appropriate $30,000 from the Designated for Litigation/Enforcement to the Services and Supplies Major Object, Professional and Special Services account;
   
   
2. Authorize the Executive Officer to amend an existing contract for legal services with Shute, Mihaly & Weinberger by increasing the total contract amount to up to $130,000 for FY 2001-02.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD has existing contracts with the law firms of Shute, Mihaly & Weinberger and Best, Best & Krieger to provide legal services in the areas of the California Environmental Quality Act, AQMD rulemaking and planning procedures, issues relating to statute and rule interpretation, air quality laws, administrative law, representation of government agencies, constitutional issues, the Brown Act, and complex environmental litigation.

Currently, the firms represent AQMD in litigation matters including the CENCO litigation brought by Communities for A Better Environment and the Fleet Rules litigation brought by the Engine Manufacturers Association. Additionally, Shute, Mihaly & Weinberger is representing AQMD on two cases challenging the most recent amendment to the architectural coatings rules as well as advising District Counsel on various environmental matters as they arise.

In October of 1999, the Board authorized three-year contracts with these two firms, authorizing the Executive Officer to make annual expenditures up to $160,000 per year. Funds for the current fiscal year have been expended ahead of schedule because of unanticipated costs involving the CENCO litigation, the Fleet Rules lawsuit brought by the Engine Manufacturers Association and the architectural coatings litigation. In particular, expenses to defend against three amicus briefs as well as the Engine Manufacturers /WSPA brief in the Fleet Rules litigation have been especially heavy. This has occurred despite District Counsel's best efforts to reduce costs by handling as much work as possible in-house. It is expected that expenses for Shute, Mihaly & Weinberger will require an additional amount of up to $30,000 beyond budget amounts in the current fiscal year. To fund these increases, it will be necessary to appropriate $30,000 from the Designated for Litigation/Enforcement.

In addition, funds of $85,000 have been allocated to Best, Best & Krieger and $75,000 to Shute, Mihaly & Weinberger, for a total of $160,000. Therefore, it is necessary for the Board to authorize the total contract amount for both firms to exceed $160,000. The amount needed for Shute, Mihaly & Weinberger is a total of $130,000, of which all but $30,000 is already budgeted in the District Counsel’s Budget for FY 2001-02.

Proposal

It is proposed that the Board appropriate $30,000 from the Designated for Litigation/Enforcement to the Services and Supplies Major Object, Professional and Special Services account. It is further proposed that the Board authorize the Executive Officer to amend the existing contract for legal services with Shute, Mihaly & Weinberger by increasing the contract amount up to a total of $130,000 for FY 2001-02.

Fiscal Impacts

Funds for this request are available due to savings from cost-cutting measures during FY 2001-02.

Attachment

None

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