HomeMy WebLinkAbout07 21 1989 City's airport legal fees top $100,000City's airport legal fees top $100,000
By George Ricker
The total spent on legal fees and
studies associated with the ordinance
required by the March 14 airport
referendum now exceeds $100,000.
When his Washington, D.C., law
firm was hired by the Sebastian City
Council on April 20, Eliot Cutler of
Cutler & Stanfield estimated charges
to draft the ordinance would be be-
tween $25,000 and $50,000.
He estimated two studies, which
he urged the council to authorize him
to commission, would cost another
$10,000.
The law firm's bill for services
rendered in June, received Tuesday
at Sebastian City Hall, was $44,211.
Total charges by the firm since April
20 are $106,252.
Including in the June billing were
charges of $8,500 for a financial
study by Apogee Research, Inc.,
$29,740 for legal services and $5,971
for related expenses.
To date, Cutler & Stanfields
charges for legal work and expenses
have amounted to $92,251. Another
$14,001 has been spent for the two
studies that Cutler said would cost
around $10,000.
The June bill was reduced $7,000
after City Manager Robb McClary
phoned Cutler on Monday and asked
him to do so.
McClary said there was nothing
specific behind the request.
"Ijust felt it was a lot of money," he
said. "I asked for the reduction on
general principles."
The $7,000 reduction is reflected
in the bill the city received Tuesday.
McClary also stated Cutler had
told him the firm's legal fees for the
next 12 months probably will not
exceed $20,000, unless the city be-
comes involved in litigation that
require his services.
All monies expended in connec-
tion with the drafting of the ordi-
nance, required by the charter
amendment, are being charged to the
airport enterprise fund.
As of 8 a.m. Tuesday, the enter-
prise fund contained $223,960 in
cash on hand and savings.
The latest bill from Cutler &
Stanfield will reduce the balance left
in the fund to $179,749.
According to Sebastian Finance
Director Carol Carswell, the fund
began this fiscal year with $246,714
in cash and investments, and had
received about $50,000 in revenue by
the end of June.
Abudgetamendment, approved by
the City Council on May 24, raised
projected operating expenses in the
airport fund from $38,370, that had
been projected in the Oct.1 budget, to
$92,425.
The line item approved for legal
expense was $50,000, up from $500
that had been budgeted for legal
expense at the beginning of the fiscal
year.
Of the $92,251 charged so far,
$82,867 is for 526 hours of legal
work, and the balance is for expenses.
At present, the ordinance Cutler
was hired to draft has been approved
M
on first reading and a public hearin
has been held.
Acting on advice from Cutler an
from Federal Aviation Administr,
tion (FAA) Attorney Bob Eisengreh
the City Council deferred final adol
tion of the ordinance imposing
noise limit and landing fees at th
airport and, instead, agreed to cor
duct a study that will form the basi
for future negotiations between th
city and the FAA.