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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
County Counsel
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DATE:
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October 18, 2010
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BOARD MEETING DATE:
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November 2, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Michael P. Murphy, County Counsel
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SUBJECT:
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Appropriations Transfer Request (ATR) to Fund Legal Services Agreement with the Law Firm of Keker and Van Nest
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RECOMMENDATION:
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Approve an Appropriation Transfer Request in the amount of $600,000 from Non-Departmental General Fund Reserves to Contract Legal Services to fund the legal services agreement with the law firm of Keker and Van Nest.
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BACKGROUND:
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On July 27, 2010, in closed session, it was decided by the Board to retain the law firm of Keker and Van Nest to represent the County in a potential lawsuit by several school districts with regard to the County pool investment loss due to the collapse of Lehman Brothers. At the Board’s direction, an agreement was entered into by the County Counsel’s Office with the law firm of Keker and Van Nest. More recently, on or about September 14, 2010, 13 school districts filed a government claim against the County and Treasurer-Tax Collector Lee Buffington claiming over $20 million dollars in damages due to the Lehman collapse. On October 19, the Board took action on the claim. It is expected that sometime after the Board decision, plaintiffs will file a lawsuit against the County and Mr. Buffington.
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DISCUSSION:
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Given the complex nature of the lawsuit, and the amount of damages sought in this case, this ATR seeks a transfer of $600,000 from non-departmental reserves to fund the litigation defense.
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Approval of this ATR contributes to the Shared Vision 2025 outcome of a Collaborative Community by ensuring that government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. Specifically, the County intends to prove that in managing the County investment pool, it acted responsively, effectively and collaboratively in its decision-making and in doing so, considered future impact rather than immediate gain.
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FISCAL IMPACT:
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This action will transfer an appropriation of $600,000 from Non-Departmental General Fund Reserves.
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