1999 AGN FEB 02 I12 misc - Laserfiche WebLink

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LAW OFFICES OF BEST BEST & KRIEGER LLP February 9, 1999 Page 2 • Second, that we reduce outside counsel costs by bringing as much work in house as possible. Eventually, we were able to bring most, although not all, of the pending " matters in house. Based in large part on these efforts, outside counsel costs were reduced in fiscal year 1997-1998 by over $700,000 from the previous year. (See Tab 3.) In the current fiscal year, outside counsel costs have been reduced even further (Tab 3), and we project a reduction of nearly $900,000 over the total fiscal year 1996-1997 expenditures. • Third, that we reduce the number of pending matters. (See Tab 4.) Based on a vigorous campaign to implement the City Manager's new policy, the total number of pending lawsuits has been dramatically reduced from 53 in October of 1997 to only 14 at the end of the last calendar year. (See Tab 4.) Since October of 1997, the City has disposed of 38 cases. Of those 38 cases, 12 were dismissed at a projected total savings of over $450,000 in fees and costs alone. (See Tabs 5 and 6.) In terms of risk management, we have seen some definite trends over the last several years regarding the types of claims made. (See Tab 7.) In many instances, such as streets, claims are often an inherent part of managing any modern City. For example, in approximately 50% of the street claims involve minor damage attributed to potholes. However, the City has recently invested a -- significant amount of money in street repair which should dramatically reduce the number of these types of claims. Sewer back-ups have also posed problems in the last few years. The City has allocated $300,000 for a sewer line maintenance program which will help reduce those types of °�- claims. We will continue our efforts to assist the City's risk management staff and claims administrator to identify target areas and reduce the potential for future claims wherever possible. In summary (See Tab 8), we are encouraged by the dramatic progress that the City has made over the last 16 months to reduce its legal costs, to more effectively manage its litigation, and to reduce claims. RELPIIVLWW212