City’s legal costs going up and up

Published 10:00 am Saturday, November 18, 2006

More disputes over city policy are going before the hearing examiner, officials say.

The city’s mounting legal battles could, by year’s end, bleed the city of almost twice the money budgeted for litigation.

The city earmarked $250,000 for litigation costs in the 2006 budget. But costs have already surpassed $380,000 and could top $400,000 by the end of the year, according to City Attorney Paul McMurray.

The city is currently tackling more than 20 litigation matters, including lawsuits brought about by Blakely Harbor residents over dock restrictions and Eagle Harbor liveaboards over a proposed open-water marina.

“Many more (cases), unfortunately, are expected in 2007” and the years ahead, said McMurray at a recent meeting on the city’s 2007 preliminary budget.

McMurray is asking for a $100,000 increase over this year’s $250,000 budgeted outlay to help cover expected litigation.

“Three hundred and fifty-thousand dollars is more real, based on our experience over the last year,” he said.

The City Council on Monday reduced that amount to $300,000, with the option of adding more out of contingency funds.

McMurray is the city’s first in-house, staff attorney after the island’s incorporation in 1991. He was hired last year to, in part, help the city control costs connected with a growing litigation list.

Legal services for the city had been provided for over 14 years by Rod Kaseguma of the Bellevue firm of Inslee Best Doezie Ryder. While Kaseguma has held the title of city attorney, his services were provided under contract rather than as a city employee.

The rise in litigation and cases heard before the city hearing examiner – which stem from disputes over city policy – could “reflect growing disagreement people have with the city,” said Councilman Nezam Tooloee. This trend may hint at a need for policy changes, he added.

Other preliminary legal costs for the 2007 budget include $200,000 for miscellaneous legal services. The municipal court, the city’s legal staff and other related costs are drawn from separate line items.

While the cost of litigation has grown, so has the complexity of cases brought before the hearings examiner. This year, examiner Meredith Getches heard 24 cases. In 2005, she heard 22. It’s not much of a leap, McMurray said, but many of this year’s cases stretched over multiple days. Some hearings involving the city’s dispute with Washington State Ferries over upgrades at the Eagle Harbor maintenance yard have stretched beyond four days.

These hearings, including the hundreds of hours Getches must devote to reviewing case-related information, comes at a cumulative high cost, McMurray said.

The city’s preliminary 2007 budget has slated $95,000 for the hearings examiner.