Trustees approve outside general counsel after review of legal spending and risks

Conroe ISD trustees on Sept. 16 approved a contract to retain the law firm O'Hanlon, Demerath & Castillo to serve as the district’s general counsel and heard a staff report on three‑year averages of legal spending and possible cost‑saving measures.

Acting under a board policy change that removed the requirement for a full‑time in‑house general counsel, the board considered proposals for an outside flat‑fee general‑counsel arrangement and received a three‑year aggregate report from Chief Financial Officer Miss Garza on historical legal expenditures. Garza reported an annual three‑year average for total legal expenditures at just over $1.1 million and identified categories that could be folded into a flat fee versus those that fluctuate year to year, chiefly litigation and due‑process expenses.

Miss Baloo, representing the outside firm under temporary contract, outlined advantages of a flat‑fee model: 24/7 access to a team with specialized attorneys, delegation of public‑information requests, and training for district staff. The firm proposed a $30,000 per month flat fee and said litigation costs would remain separate. Garza showed a breakdown of prior spending that included general counsel compensation, outside counsel for real‑property matters (approximately $90,000/year average over three years), and a fluctuating litigation subtotal the district estimated at roughly $175,000 per year in recent years.

Trustees voted 7–0 to engage O'Hanlon, Demerath & Castillo to serve as general counsel. The board and staff discussed oversight and the need to track hours, ensure continuity of service and maintain confidentiality around special‑education matters that may later trigger litigation and higher costs. Some trustees asked staff to prepare metrics so the board can monitor whether the flat fee yields projected savings without reducing service levels.

Why it matters: Legal costs can be a multi‑hundred‑thousand‑dollar line item in the district budget, and recent high‑profile controversies have raised the prospect of increased litigation. Trustees framed the decision as both a cost‑control and a capacity move: the firm provides a team that can handle public‑records workload, policy drafting and training while the district retains the ability to budget separately for major litigation.

What’s next: Staff will finalize the contract and return metrics on legal spending and response times. Trustees directed administration to report periodically on litigation spend and to work with counsel to reduce preventable legal exposure.