To: Board of Supervisors
Department or Agency Name(s): County Counsel and ACTTC
Staff Name and Phone Number: Jeremy Fonseca, 565-3730
Vote Requirement: 4/5th
Supervisorial District(s): All
Title:
Title
Legal Services Agreement with Colantuono, Highsmith & Whatley LLP
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Recommended Action:
Recommended action
A) Authorize County Counsel to execute a Legal Services Agreement with Colantuono, Highsmith & Whatley LLP, for appellate litigation and related legal services related to the North Sonoma Coast Fire Protection District Educational Revenue Augmentation Fund (ERAF) litigation, in an amount not to exceed $90,000.00. (4/5ths Vote)
B) Ratify the existing Legal Services Agreement, as amended, with Colantuono, Highsmith & Whatley LLP, for trial phase legal services and for interim appellate mediation work related to said ERAF litigation.
(4/5th Vote Required)
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Executive Summary:
The County is in active litigation due to a lawsuit filed by the North Sonoma Coast Fire Protection District (“NSCFPD”). The lawsuit challenges NSCFPD’s ERAF shift deduction. The County recently prevailed against NSCFPD in the trial court and the NSCFPD petition was fully denied. In those trial court proceedings the County was primarily represented by Colantuono, Highsmith & Whatley LLP.
NSCFPD has now filed an appeal. Because of internal resource limitations and due to the expertise and experience that the firm has developed as to the underlying litigation and the related legal issues, outside legal representation to defend against the appeal is needed and a legal services agreement with Colantuono, Highsmith & Whatley LLP is recommended.
Discussion:
The NSCFPD lawsuit is a challenge to the legally-required Educational Revenue Augmentation Fund (“ERAF”) deduction that is applied to NSCFPD’s annual property tax allocation. The ERAF deduction is mandated under the Revenue and Taxation Code as a way of off-setting fiscal impacts to school districts from prior funding challenges. In addition to attorney’s fees, the lawsuit seeks a recalculation in order to reduce the ERAF deduction-and thus result in more property tax allocation-to NSCFPD. Defending against the lawsuit is important since, among other things, any reduction to the NSCFPD ERAF deduction will likely impact property tax allocations to other entities in the County, in particular special districts and those in CSA 40.
County Counsel previously executed a Legal Services Agreement with Colantuono, Highsmith & Whatley LLP, for representation in the trial court phase of the NSCFPD lawsuit, with a contract maximum not to exceed $50,000. After extensive briefing, oral argument, and successful representation at the trial court level, that contract maximum has been exhausted.
With the filing of appeal by NSCFPD, the litigation has now continued into a subsequent phase. In order to meet unexpected, abbreviated deadlines set by the court as part of the appeal process, additional time-sensitive legal services were required and the Legal Services Agreement with Colantuono, Highsmith & Whatley LLP was amended to cover the interim need. The total amount of services under the amended Legal Services Agreement is $54,000 and that amount has been covered under existing budget appropriations.
Appellate briefing and oral argument is specialized, time-intensive, and resource-demanding legal work. Current resource limitations inhibit meeting the demands of the appeal. Due to their extensive legal work already performed in order to successfully defend the litigation at the trial court phase, Colantuono, Highsmith & Whatley LLP is highly-qualified and well-positioned to effectively defend the appeal in a cost-effective manner.
The recommended Legal Services Agreement will provide for all services needed for the current appeal, including record preparation, amicus coordination, appellate briefing, oral arguments, and travel costs, in an amount not to exceed $90,000.
Prior Board Actions:
Fiscal Summary
|
Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
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Budgeted Expenses |
$8,000 |
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|
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Additional Appropriation Requested |
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$82,000 |
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Total Expenditures |
$8,000 |
$82,000 |
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Funding Sources |
$8,000 |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
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|
|
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Use of Fund Balance |
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|
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Contingencies |
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$82,000 |
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Total Sources |
$8,000 |
$82,000 |
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Narrative Explanation of Fiscal Impacts:
The costs of this Agreement will be incurred in the Auditor-Controller-Treasurer-Tax Collector budget. FY 2019-20 costs are anticipated to be covered by existing appropriations. FY 2020-21 costs are not included in the baseline budget and will require one-time funding. A portion of actual costs will be recovered in the following year through the Property Tax Administration Fee.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Draft Legal Services Agreement
Related Items “On File” with the Clerk of the Board:
N/A