6786-92 Engage Special Counsel to Recover City Loses

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REFERRED +0 ~'~ITE OF THE WHOLE 12/7/92. Item 7. RESOLUTION NO. 6786-92 BY: Boscia, Gallagher, George, Gibbons, Roth, Seelie, Smith A RESOLUTION authorizing and directing the Director of Law to engage special counsel to assist him i~ pursuing the City's reme- dies, including litigation, against various persons, organizations, and their bonding companies as identified by the Auditor of State in Pindings For Recovery contained in a Special Audit Of the City of Lakewood. WHEREAS, the Mayor requested the Auditor of State to per- form a Special Audit to discover whether irregularities and miscon- duct had occurred in the city's financial affairs, and WHEREAS, the Special Audit is nearly complete and a post- audit conference has been held with city officials including Lakewood city Council, and WHEREAS, the City has been advised by the Auditor of State that a complete and final report of the Special Audit &s forthcoming and will identify numerous parties and findings for recgvery in favor Of the City, and WHEREAS, the Special Audit is an unusual even~ ~nd has engaged the Director of Law in extraordinary legal servioes to an extent that cannot long be sustained without detracting from his ability to perform other necessary duties and services for the bene- fit of the ~ity, and WHEREAS, numerous persons who are potential witnesses or defendants are or have been City officials and employees with whom the regular professional staff of the Law Department have had numer- ous professional and personal contacts, and WHEREAS, the firm of Climaco, Climaco, Seminatore, Lefko- witz & Garofoli, CO., LPA is well qualified by expertise and experi- ence to counsel and advise the Law Director, represent the interests of the city and secure the most favorable result from the State Auditor's findings for recovery including the recovery of the costs of the Special Audit and the legal fees of special outside counsel; now, therefore, BE IT RESOLVED BY THE CITY OF LAKEWOOD, STATE OF OHIO: Section 1. That the Director of Law of the city of Lake- wood be and he is hereby authorized to engage the law firm of Clima- co, Climaco, Seminatore, Lefkowitz & Garofoli, Co., LPA, as special legal counsel to assist him in pursuing the City's remedies, includ- ing whatever litigation the Director and said outside counsel deem to be appropriate and advisable~ to pursue findings for recovery con- tained in the fortheoming report of the Special Audit of the Auditor of State. Section 2. That the Director of Law together with said special legal counsel are further authorized and directed to pursue recovery of the costs of the Special Audit and the reasonable legal fees of special outside counsel from those persons identified by the Auditor of State in findings for recovery and their bonding compa- nies. Section 3. That professional fses for Such special outside legal counsel are authorized, to be paid for services billed at rea- sonable hourly rates as determined by the Director of Law, in an amount not to exceed $20,000.00 without further Council authoriza- tion.