Sweetwater commission hires outside counsel after former mayor signals pension lawsuit; city attorney recuses

At its Aug. 4 meeting, the Sweetwater City Commission moved to retain outside counsel after the city received a letter from former Mayor Orlando Lopez signaling his intent to sue over his pension payout. The city attorney said he would recuse himself from supervising special counsel to avoid the appearance of impropriety, and commissioners approved bringing in the law firm Gustesi, Lopez, Mestre & Cobiella to represent the city on the matter. The commission authorized communications about the matter to flow through the mayor’s office while the outside firm is engaged.

The city attorney explained the letter raises a question of legal interpretation of city code language related to pension payouts and said he has not spoken to Orlando Lopez in over a year. “I would recuse myself in this matter,” the city attorney said, citing concerns about appearances of impropriety. Commissioners agreed that supervision of outside counsel for this matter should pass to the mayor’s office while counsel performs the work.

Mayor Diaz told the commission he had already spoken with the proposed special counsel and asked the commission to authorize hiring them immediately so the city could respond promptly to the letter. The mayor said the firm previously represented the city and that the city’s insurance carrier could be involved as well. The mayor moved to retain Gustesi, Lopez, Mestre & Cobiella; the motion was seconded and approved by the commission.

Commission members said they wanted timely updates from the mayor’s office as the case develops. The city attorney said he would draft language to remove his supervisory duty over outside counsel from local ordinance if the commission desired, and commissioners indicated they want the mayor’s office to coordinate oversight until any ordinance change is completed.

Discussion: Commissioners and the mayor discussed process and timing, including that the incoming matter was currently an intent letter rather than a filed complaint, and that an immediate response and outside counsel retention was appropriate to protect the city’s interests. The city attorney explained the existing code provision that “the city attorney shall supervise and direct all special counsel,” and said he was willing to give up that responsibility in this matter.

Action: The commission authorized the mayor to retain Gustesi, Lopez, Mestre & Cobiella as special counsel to represent the city in the matter concerning former Mayor Orlando Lopez. Commissioners also agreed communications on the matter should go through the mayor’s office while supervision of outside counsel is transitioned.

Next steps: The city attorney said he would draft proposed ordinance language to remove or revise the supervision language from the city code, and the mayor said he would coordinate with outside counsel and the city’s insurance carrier and brief commissioners individually as appropriate.