HomeMy WebLinkAbout1998-172-12/15/1998-APPROVING THE EXPENDITURE OF CITY FUNDS TO DEFRAY THE COSTS OF ATTORNEYS FEES FOR THE HOUSING AUTHOR RESOLUTION 98-172
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE EXPENDITURE OF CITY FUNDS TO DEFRAY THE
COSTS OF ATTORNEYS FEES FOR THE FORT COLLINS HOUSING AUTHORITY
WHEREAS, pursuant to the provisions of state statute, the City has heretofore established
the Fort Collins Housing Authority("Housing Authority")for the purpose of providing safe,sanitary
and affordable dwelling accommodations for low income residents of the City; and
WHEREAS,the provision of affordable housing serves an important public purpose for the
City,and the City has a vital interest in the stability and ongoing existence of the Housing Authority;
and
WHEREAS, the Housing Authority has recently been involved in litigation in the Federal
District Court for the District of Colorado in which a judgment has been entered by the trial court
against the Housing Authority, its executive director and one of its commissioners; and
WHEREAS, the Housing Authority has incurred extraordinary expenses related to such
litigation including, but not limited to, attorneys' fees and costs; and
WHEREAS, the Housing Authority has filed a Notice of Appeal of the judgment entered
against the Housing Authority and may pursue such appeal, thereby incurring additional attorneys'
fees and costs; and
WHEREAS,the Housing Authority is in a state of transition,by reason of the City Council's
recent appointment of itself as the new Board of Commissioners and of certain members of City staff
to operate and advise the Housing Authority, and the ongoing operations of the Housing Authority,
as well as its response to the judgment entered in the above-referenced civil action,may require the
services of special legal counsel; and
WHEREAS, it is anticipated that the operating revenues of the Housing Authority may be
insufficient to cover the attorneys' fees previously incurred in connection with the litigation and to
be incurred by the Housing Authority with regard to the above-referenced matters; and
WHEREAS,the City Manager believes that sufficient general fund revenues exist,pursuant
to previous appropriations, to assist the Housing Authority in defraying such legal costs; and
WHEREAS, the City Council believes that it would be in the public interest to provide,
within certain limitations, such financial assistance for the above-referenced purposes as the City
Manager may deem appropriate.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Manager is hereby authorized to expend up to the amount of
$104,000 in 1998 and $100,000 in 1999 from previously appropriated General Fund revenues for
the purpose of defraying the legal fees and related costs of the Fort Collins Housing Authority.
Section 2. That the City Manager is hereby authorized to exercise his discretion, in
consultation with the City Attorney, the Financial Officer of the City and such officers and
employees of the Housing Authority as he may deem appropriate,to determine the amount and kind
of fees and costs to be paid pursuant to this authorization;provided,however,that the City Manager
shall inform the Council, in advance, of any expenditures to be made pursuant to this Resolution,
within such period of time as would permit the Council to formally review and reconsider any such
expenditure if it so chooses.
Section 3. That in no event shall the revenues authorized for expenditure pursuant to this
Resolution be used to satisfy any portion of the judgment entered against the Housing Authority or
its executive director in Civil Action No. 97K1995.
Section 4. That the City Manager is hereby directed to investigate the legal and financial
feasibility of the Housing Authority repaying all or a portion of the legal fees and related costs
advanced by the City and report back to the City Council with regard to such possibility within sixty
(60) days from the date of adoption of this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
15th day of December, A.D. 1998.
Mayor
ATTEST:
City Clerk