TITLE
HOLD a public hearing and consider an ordinance amending the FY 2018 Annual Budget and Plan of Municipal Services of the City of Killeen by increasing expenditure accounts in the General Fund for legal services.
SUMMARY
DATE: June 12, 2018
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Budget Amendment for Legal Services
BACKGROUND AND FINDINGS:
At the June 5, 2018 City Council Workshop, staff briefed City Council regarding potential litigation with McLean Construction and Spectrum. City Council provided direction to bring both items forward for consideration. If City Council chooses to move forward and litigate both issues, a budget amendment will be needed to cover the associated legal expenses.
Staff is proposing a professional services agreement for legal services with Naman Howell Smith & Lee to assist with the litigation against McLean Construction. It is estimated that between $60,000 and $100,000 will be required in this fiscal year. If this case is fully prepared and tried in a court of law, expenditures in the next fiscal year could reach $400,000. The total estimated cost for legal services is $500,000, and staff has already identified $25,000 in the current year budget. For this reason, the recommended budget amendment to cover the McLean Construction legal expenses is $475,000.
Staff is proposing a professional services agreement for legal services with Lloyd Gosselink who will represent all interested cities that were impacted by the methodology used by Spectrum to calculate franchise fee payments. The total estimated cost to take the case through trial is $375,000. The cost will be divided among those cities that choose to participate based on the amount each city stands to recover. The City's estimated allocation of costs is $25,237.50. The recommended budget amendment to cover the Spectrum legal expenses is $25,238.
The combined budget amendment n...
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