BOARD MEETING DATE: February 7, 2003
AGENDA NO. 8

Authorize Increase in Annual Expenditures for Outside Environmental Counsel and Transfer from Designation for Litigation/Enforcement to District Prosecutor's FY 2002-03 Budget

SYNOPSIS: 

On September 13, 2002, the Board approved a list of pre-qualified outside counsel having expertise in the California Environmental Quality Act, AQMD rulemaking and planning procedures, administrative law and related issues for both AQMD and AQMD Hearing Board. The Board also authorized up to $350,000 annually for outside counsel. The District Prosecutor's Office is undertaking two sensitive enforcement matters that will require the assistance of outside counsel and will require additional fees of up to $150,000. Consequently, staff is recommending that the Board (1) authorize an increase in the annual contract amount for environmental litigation counsel from $350,000 to $500,000; (2) authorize the District Prosecutor to enter into a contract with the law firm of Woodruff, Spradlin and Smart in the amount of $150,000 for legal services; and (3) appropriate $150,000 from the General Fund, Designation for Litigation/Enforcement to District Prosecutor's FY 2002-03 Budget, Professional and Special Services Account.

COMMITTEE: 

Administrative, January 17, 2003, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize an increase in the annual contract amount for environmental litigation counsel from $350,000 to $500,000;
   
   
2. Authorize the District Prosecutor to enter into a contract with the law firm of Woodruff, Spradlin and Smart in the amount of $150,000 for legal services; and
   
   
3. Appropriate $150,000 from the General Fund, Designation for Litigation/Enforcement to District Prosecutor's FY 2002-03 Budget, Professional and Special Services Account.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In September of 2002, the Board approved a list of prequalified counsel to assist with environmental litigation matters. At that time, staff anticipated that the outside attorneys would assist in the defense of lawsuits challenging AQMD actions related to permitting and rulemaking actions.

Recently, the Prosecutor’s Office has initiated investigations into two sensitive enforcement matters that require resources beyond those currently available. These matters involve voluminous documents, numerous witnesses, and extensive violations. It is expected that the prosecution of these matters in court will involve extensive discovery proceedings, numerous law and motion challenges, and lengthy trials. The potential civil penalty recovery is expected to more than offset legal costs. The legal expertise required for these tasks is identical to those used to select prequalified counsel in the September 13, 2002 action. The District Prosecutor’s Office has reviewed the RFP submittals, and based on that review identified the firm of Woodruff, Spradlin & Smart as the firm best able to assist with the prosecution work. The District Prosecutor has also interviewed personnel from the firm. Woodruff, Spradlin & Smart specializes in representation of local governmental bodies in Southern California. It has an environmental law group of highly experienced attorneys. For these reasons, staff recommends that the Board authorize a contract with Woodruff, Spradlin and Smart for legal services in the amount of $150,000.

Staff estimates that litigation costs may total $150,000 over three years. In the September 2002 action approving the prequalified list, the Board authorized expending up to $350,000 a year for three years. Consequently, to cover the increase in prosecution costs, staff is requesting approval to increase the authorized expenditure limit to $500,000 and to appropriate $150,000 from the Designation for Litigation/Enforcement to the District Prosecutor's FY 2002-03 Budget, Professional and Special Services account.

Proposal

Staff recommends that the Board (1) authorize increasing the annual contract amount for environmental counsel from $350,000 to $500,000, (2) authorize the District Prosecutor to enter into a contract with the law firm of Woodruff, Spradlin and Smart in the amount of $150,000 for legal services; and (3) appropriate $150,000 from the General Fund, Designation for Litigation/Enforcement to the District Prosecutor’s FY 2002-03 Budget, Professional and Special Services Account.

Resource Impacts

The sum of $150,000 will be appropriated from the Designation for Litigation/Enforcement to the District Prosecutor FY 2002-03 Budget, Professional and Special Services account.

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