City Council Agenda and Packet 2023 11 06

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LL Cityof CITY COUNCIL COMMUNICATION Louisville AGENDA ITEM 4G COLORADO • SINCE 1878 SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH BARON & BUDD, P.C. AND DIAB CHAMBERS LLC DATE: NOVEMBER 6, 2023 PRESENTED BY: KATHLEEN KELLY, CITY ATTORNEY SUMMARY: The City was a recipient of public assistance ("PA") funds from the Federal Emergency Management Agency ("FEMA") for damages incurred by the City due to the Marshall Fire. As a PA funds recipient, the City is obligated to take commercially reasonable measures to recoup these PA funds from third parties who may be potentially liable for the City's damages. Baron & Budd, P.C. and Diab Chambers LLC are attorneys with substantial experience representing public entities in actions for damages related to wildfires. They have proposed to represent the City on a contingency fee basis related to potential litigation arising from the Marshall Fire. The representation would also include coordination with FEMA regarding repayment of PA funds. FISCAL IMPACT: If an award or settlement is reached in this potential litigation, the attorneys will receive 16% after deducting from such award or settlement the costs of litigation. That portion of the award or settlement representing damages for which the City received PA funds (less the contingency fee amount) will be repaid to FEMA. That portion of the award of settlement representing damages incurred by the City that were not reimbursed by FEMA or covered under the City's insurance policy will be retained by the City. (The City's insurer, Travelers, has also filed a subrogation claim against Xcel Energy for payments it made under the City's policy.) RECOMMENDATION: Approve the Professional Services Agreement with Baron & Budd, P.C. and Diab Chambers LLC. ATTACHMENT(S): 1. Proposed Professional Services Agreement 2. Attorney Bios CITY COUNCIL COMMUNICATION 54