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Hernando Today

City's legal expenses soar

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By KYLE MARTIN | Hernando Today

Published: September 18, 2009

BROOKSVILLE - The city proposes to spend $170,000 in legal expenses this upcoming year — more than four times the amount spent in the 06/07 budget year.
That's not the highest jump in recent years, however.
The budgeted amount for the 07/08 legal expenses was $45,000. In actuality, more than $226,000 was spent — almost six times the amount budgeted the year prior.
The rise in the budget coincides with the city contracting with the Hogan Law Firm, following the resignation of the city attorney David LaCroix in 2007.
The Hogan Law Firm was contracted in October 2007 for a $2,500 monthly retainer and 14 hours of work. Work done over that amount would be billed at $185 per hour, to be charged in a tenth of an hour increments, or six minutes.
Invoices show the retainer would soon prove to be not enough. The month after the contract was signed, the firm billed $18,264 over the retainer fee; in December 2007 it was $10, 536 and in January 2008, the firm would spend more than $22,683 over the retainer.
Detailed invoices show that the attorneys were billing for research, preparation for city council meetings, making phone calls, conferences with the city manager and department heads and reading e-mails.
In March 2008, six months after signing, the law firm requested the city council re-evaluate the contract.
"We recommend that the retainer hours be increased in order to lessen the overall costs for legal services given the number of hours that are being expended for the required/requested service level," a memo states.
City council approved a new retainer amount: $13,125 a month for 70 hours of work.
That seemed to calm the amounts spent over the retainer: May 2008 it was $1,942 and June was $3,101. The legal budget for the fiscal year that's about to end in October is $159,500. Finance Director Steve Baumgartner said Friday that about 89 percent of that budget has been spent, but not all the expenses have come in.
The 09/10 proposed legal budget is $170,000.
City leaders say they are aware of the spikes in legal expenses but it is money well-spent.
City Manager Jennene Norman-Vacha pointed to ongoing litigation involving the failed Levitt & Sons development, Cascades at Southern Hills. The developer filed for Chapter 11 bankruptcy protection in November 2007 and left the project incomplete, according to court records.
The city is suing in court for more than $400,000 in bonds to be returned.
The city manager and attorneys have outlined 15 projects and goals that they want to accomplish in the coming year. These include revising land development code and revamping personnel policies.
The city is also in the midst of collective bargaining talks with emergency services.
Council Member Joe Johnston III said the legal department has been doing above and beyond its traditional scope of work. While it's important to keep a handle on what's being spent, he saw no concerns with the legal expenses.
Mayor Joe Bernadini said the legal expenses did catch his eye, but he's satisfied that the payments are justified. It was obvious there were going to be costs with the added work, but it's better to bite the bullet, he said.
"It's much better to do it right the first time than have to do it several more times," he said.

Reporter Kyle Martin can be reached at 352-544-5271 or kmartin@hernandotoday.com

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