REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
May 23, 2023
FROM
TOM BUNTON, County Counsel
SUBJECT
Title
Budget Increase to continue Legal Services with Reed Smith LLP
End
RECOMMENDATION(S)
Recommendation
1. Approve a budget adjustment in the amount of $4,000,000 to continue legal services with Reed Smith LLP in connection with insurance recovery costs related to the Chino Airport Groundwater Remediation.
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post budget adjustments, as detailed in the Financial Impact section (Four votes required).
(Presenter: Tom Bunton, County Counsel, 387-5455)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will result in the use of additional Discretionary General Funding (Net County Cost). This item will authorize the use of $4,000,000 from General Fund Contingencies. Reed Smith LLP (Reed Smith) is reimbursed for any consultants and experts retained for the services provided at specific hourly rates. At the time Agreement No. 20-1250 (Agreement) (Item No. 37) was initiated on December 15, 2020, the litigation costs were unknown. The litigation is against a major insurance company for cost recovery and has grown in breadth and scope. The additional funding will allow the County to continue to utilize Reed Smith's specialized insurance recovery services to litigate the County's case. The following recommended budget adjustments will fund anticipated legal fees for the current fiscal year and will be paid from the Litigation budget (1340001000):
Fund Center
Commitment/GL Account
Description
Action
Amount
1280001000
56006000
Contingencies
Decrease
$4,000,000
1340001000
52002449
Outside Legal Counsel
Increase
$4,000,000
BACKGROUND INFORMATION
The County tendered a claim for reimbursement from its insurer, Insurance Company of th...
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