Laserfiche WebLink
WATER ENERGY LIFE <br />PUBLIC UTILITIES <br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIES <br />DATE: JANUARY 8, 2024 <br />SUBJECT: LEGAL BUDGET FOR THE LAW FIRM OF STRADLING YOCCA CARLSON & <br />RAUTH IN AN AMOUNT NOT TO EXCEED $60,000 AND AN INCREASE OF <br />$17,002.03 TO AN EXISTING BUDGET FOR SPECIALIZED LEGAL <br />ASSISTANCE <br />ISSUES: <br />Consider approval of a legal budget for the law firm of Stradling Yocca Carlson & Rauth in an <br />amount not to exceed $60,000 to defend the City in the appeal of the case entitled Pongs v. City <br />of Riverside, a reverse validation lawsuit challenging the validity of City -issued municipal bonds; <br />and an increase in the legal budget for the trial stage of this litigation in the amount of $17,002.03, <br />fora new total of $126,052.03. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />1. Approve a legal budget for the law firm of Stradling Yocca Carlson & Rauth in an amount <br />not to exceed $60,000 to defend the City in the appeal of the case entitled Pongs v. City of <br />Riverside, a reverse validation lawsuit challenging the validity of City -issued municipal <br />bonds; and <br />2. Approve an increase to the legal budget for the law firm of Stradling Yocca Carlson & Rauth <br />in an amount not to exceed $17,002.03, for a new total of $126,052.03, for the defense of <br />the City in the trial of the case entitled Pongs v. City of Riverside, a reverse validation <br />lawsuit challenging the validity of City -issued municipal bonds. <br />BACKGROUND: <br />On October 25, 2022, and November 8, 2022, the City approved resolutions authorizing the <br />issuance of water revenue bonds in an aggregate principal amount not to exceed $70,000,000 for <br />the benefit of the City's water utility. The law firm representing the City as bond counsel was <br />Stradling Yocca Carlson & Rauth. <br />On December 22, 2022, a lawsuit was filed against the City entitled Pongs v. City of Riverside, <br />seeking to invalidate those resolutions. This lawsuit was brought pursuant to Code of Civil <br />Procedure sections 860 et seq., and is known as a reserve validation lawsuit. <br />