Introduction

The City Attorney�s office is requesting that the City Council adopt the attached Resolution authorizing the establishment of a checking account to be used by the City Attorney�s office to pay certain expenses associated with litigation.   These expenses would normally include jury and court reporter fees for trial, and expert witness fees for depositions.  These fees are required by law to be paid immediately upon demand, and both the amount and the timing of payment are many times not known until the very last minute, including after an attorney arrives in court.  Although the current city process for paying litigation related expenses works well most of the time and the Financial Services staff are always willing to process rush checks, we still have occasions where we need to have the flexibility to write a check on the spot.  This would not change any of the accounting procedures or processes which ensure that the money is spent from the appropriate account or for an appropriate expenditure.  As with all other City checking accounts, the checks would be kept in a secure location, and only designated members of the City Attorney�s office would be authorized to sign the checks.

Court Requirements

Litigants in a jury trial are required to pay the court for their pro rata share of the jury and court reporters� fees.  These fees vary from day to day and the daily amount is typically provided to the litigants by the court clerk.  In the past, once the trial actually started, the court clerk would give us an amount every few days or at the end of the trial and we would then deliver a check to the court within a couple of days.  About 3 years ago, the courts started requiring that we bring in a check every day, but would give us the amount at the end of the day and then allow us to bring a check in sometime during the next day.  Now the court clerks are requiring that we pay at the beginning of each day.  Although this is consistent with the code requirements¹, it is impossible to do under our current city processes, even those used for rush payments.  In the past two cases in which this was first required by the clerk, one court would allow us to use the City Attorney�s credit card, while another would not.  One court requested that we simply provide either a blank check or a check in an amount �not to exceed� $5,000.00.  One court demanded that the attorney give her a personal check for $3,000.00 or the case was going to be continued.  Obviously a city attorney checking account whereby the attorney could fill out the check on the spot once given the correct amount by the court clerk would alleviate these problems. 

Witness Fees

In order to take the deposition of an expert witness who is designated as such by the adverse party in litigation, we must pay an expert witness fee which represents his or her hourly or daily charge.  The amount of the fee must be provided to us by the other party and then must be paid to the expert at the start of his or her deposition.  If we do not have a check at that time, the expert can simply leave.  Many times, expert witness depositions are taken on very short notice right before trial and the amount of the fee provided only at the very last minute.  It would be much less strain on all involved departments if the city attorney�s office were able to directly write those checks as well.

Recommendation

Establishing a checking account to be used for litigation expenses is a practical and expedient way of dealing with last minute costs without putting additional burdens on the financial services staff or incurring unnecessary messenger charges to messenger checks to court.  It is a common practice which has been used in other city attorney�s offices for this very purpose.  By authorizing the establishment of this checking account none of the other accounting practices or standards which are in place to ensure that the money is charged to the correct account and is being spent appropriately will be changed.  No budget amendments are required, only authorization to establish the account. 

Section 13 of the Burbank City Charter provides that the City Treasurer shall only pay out warrants signed by the proper officers.  This proposed resolution will authorize designated members of the City Attorney�s office to issue checks which the City Treasurer will be authorized to pay. 

It is the recommendation of the City Attorney�s office that the City Council adopt the Resolution entitled:

�A Resolution of the City Council of the City of Burbank Authorizing the Establishment of a Checking Account for the City Attorney�s Office to Pay Litigation Related Expenses�

c:         Mary Alvord, City Manager

            Derek Hanway, Financial Services Director

            Judie Sarquiz, Management Services Director

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