Alarmed at skyrocketing bills for outside attorneys, Los Angeles officials on Monday launched a review of the increased spending and whether the city has adequate controls to prevent taxpayer funds from being wasted.
City Councilman Antonio Villaraigosa, who requested the review, cited a recent story in The Times that reported the city paid $18.9 million last year to 71 law firms -- double the amount spent five years ago for outside legal counsel.
"I'm concerned about the escalating cost associated with hiring outside counsel and that there doesn't seem to be any control or accountability," Villaraigosa said.
The councilman said he was also troubled that, during the recent budget deliberations, the council was only told about spending on outside attorneys by some city departments, not by the semi-independent harbor, airport, and water and power departments.
"Upon initial review, it appears the city does not systematically monitor how much is spent on outside legal services, nor is this information reported in aggregate to the City Council," Villaraigosa wrote in a letter Monday to the city's top two administrators, who are conducting the review.
City Administrative Officer William Fujioka, who ordered his staff to begin the review, said he shared Villaraigosa's concerns that the city may rely too much on costly outside legal help.
"He is right on point," Fujioka said. "If you can do it in-house at a cheaper price, that's something I would push for."
City Atty. Rocky Delgadillo, who signs off on all outside legal contracts, said many of the requests come because the complexity of the case and the need for attorneys exceeds what the city can handle.
On Monday, Delgadillo defended the use of outside law firms, saying they helped cut the cost of settlements and judgments stemming from lawsuits against the city.
Those payouts by council-controlled departments went from $52 million five years ago to $92 million in 2000-01 fiscal year, the year before Delgadillo took office, and back down to $50 million last year. This year, Delgadillo projects the city may pay out $45 million. The city attorney's office did not have payout totals for the harbor, Los Angeles International Airport or the Department of Water and Power readily available.
"I intend to continue our record of success to free up funds for more police officers and other vital services," Delgadillo said.
