BOARD MEETING DATE: May 5, 2006
AGENDA NO. 10

Approve Appropriation from General Fund, Designation for Litigation and Enforcement to District Counsel’s Budget and Authorize Amending Existing Contract with Shute, Mihaly & Weinberger 

SYNOPSIS:

AQMD is currently represented in several major lawsuits by the law firm of Shute, Mihaly & Weinberger. These include litigation on the Fleet Rules, the Railroad Rules, the Architectural Coatings Rules, the Aggregate Mining Rule, and a threatened lawsuit over a power-plant project in Romoland. This action is to appropriate $250,000 from the Designation for Litigation and Enforcement to the District Counsel Budget, Professional and Special Services account, and to authorize the Executive Officer to amend an existing contract in the amount of $250,000 with Shute, Mihaly & Weinberger.

COMMITTEE:

Administrative, April 14, 2006, Recommended for Approval

RECOMMENDED ACTION:

1. Appropriate $250,000 from the General Fund, Designation for Litigation and Enforcement to District Counsel’s FY 2005-06  Budget, Professional and Special Services account.
2. Authorize the Executive Officer to amend an existing contract with Shute, Mihaly  & Weinberger by an additional $250,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In the FY 2005-06  Budget, the Board established a Designation for Litigation and Enforcement to cover outside counsel expenses for the current fiscal year. In October 2005, the Board also authorized a contract with the law firm of Shute, Mihaly & Weinberger to represent AQMD in environmental law matters. Shute, Mihaly & Weinberger has been representing the AQMD in the litigation over the Fleet Rules, the Architectural Coatings rules, the Railroad rules, the Aggregate Mining rule, and a power-plant project in Romoland. The AQMD has paid Shute, Mihaly & Weinberger $414,668.35 through February of the current fiscal year for their representation. It is expected that expenditures of an additional $250,000 will be required to fund the ongoing litigation through the end of the fiscal year.

Proposal

In order to defend ongoing and threatened litigation, it is necessary to appropriate additional funds for expenditure by outside counsel. It is expected that ongoing lawsuits will require an additional $250,000 to be awarded to Shute, Mihaly & Weinberger.

Resource Impacts

Sufficient funds are available in the Designation for Litigation and Enforcement.