CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/18/2024
1 SUBJECT:
FY 2024-25 Budget Amendment to increase the legal budget by allocating additional funds from the unassigned General Fund
RECOMMENDED ACTION:
Approve the FY 2024-25 Budget Amendment, allocating additional funds of $150,000 and appropriating an existing assigned legal reserve of $100,000 to cover legal expenses related to the potential appeal of the denial of the Rockaway Quarry Reclamation Plan project.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected]
BACKGROUND/DISCUSSION:
In the FY 2024-25 budget, legal costs were projected based on anticipated casework and legal needs. However, throughout the year, unforeseen legal matters may arise that require additional funding. These include ongoing litigation, increased demand for legal consultations, and external legal services related to recent developments in compliance, labor, and municipal law.
To ensure that the City has sufficient funds to cover unanticipated legal expenses, the City maintains a legal reserve of $100,000 as an assigned designation of the General Fund balance.
However, given the increased costs and complexity associated with defending a potential appeal to the State Mines and Geology Board (SMGB), an increase to the litigation budget is necessary. The City Attorney’s Office has stated that, while it will always endeavor to contain costs, additional legal fees for the defense of any appeal to SMGB could range between $200,000-$250,000. Given that the existing legal reserve fund only contains $100,000 for unanticipated expenses, the City Manager recommends a budget amendment to appropriate an additional $150,000 in addition to the allocation of the existing legal reserve.
This budget amendment aligns with the City's commitment to maintain strong fiscal oversight and responsiveness to emerging legal needs, preserving the City's financial stability and ensuring compliance with all legal requirements.
ALTERNATIVE ACTION:
There is no reasonable alternative to this item, given the anticipated increase in legal costs that may jeopardize the FY 2024-25 Budget. Additionally, failure to allocate adequate funds may impact the City’s ability to adequately defend against the appeals, potentially leading to delays in the legal process, with further financial or legal ramifications.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Pacifica City Council 2
November 18, 2024
This item furthers the City’s efforts toward Organizational and Fiscal Stability.
FISCAL IMPACT:
The FY 2024-25 Budget will be amended to appropriate $150,000 from the unassigned General Fund in anticipation of the increased legal cost in addition to allocating the existing $100,000 from the assigned legal reserve portion of the General Fund balance. Any unused portion of this budget allocation will be returned to the General Fund balance at the end of the fiscal year.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Pacifica City Council 3
November 18, 2024
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING A BUDGET AMENDMENT FOR FY2024-25, ALLOCATING ADDITIONAL FUNDS FOR LEGAL
COSTS RELATED TO THE DENIAL OF THE ROCKAWAY QUARRY RECLAMATION PLAN
PROJECT
WHEREAS, the City of Pacifica has budgeted legal costs for FY 2024-25 based on anticipated casework and legal needs, including ongoing litigation and external legal services; and
WHEREAS, unforeseen legal matters have arisen, specifically the potential appeal of the denial of the Rockaway Quarry Reclamation Plan project, which require additional legal support, and
WHEREAS, the City’s current legal reserve of $100,000 of the General Fund balance may be insufficient to cover the increased costs and complexities associated with this potential appeal and additional budget allocation is needed.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica that due to potential legal costs associated with the potential appeal of the Rockaway Quarry Reclamation Plan to the Surface Mining and Reclamation Board, the Council hereby approves a FY 2024-25 Budget amendment to appropriate an additional $150,000 from the unassigned General Fund balance, in addition to allocating the existing $100,000 legal reserve to the legal budget.
• • • • •
PASSED AND ADOPTED at a special meeting of the City Council of the City of Pacifica, California, held on the 18th day of November, 2024, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Vaterlaus, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney