City attorney proposes $850,000 lump‑sum contract after post‑storm spike in legal work

City Attorney Nevan Zimmerman proposed a lump‑sum contract for general legal services the commission should consider as the staff builds the FY26 budget, saying Hurricane Michael and the subsequent recovery created a multiyear spike in legal workload that drove billings far above ordinary levels.

“We proposed a… lump sum fee of $850,000,” Zimmerman told the commission, characterizing the figure as lower than recent annual billings and intended to provide predictable legal costs while carving out extraordinary matters for separate negotiation.

Zimmerman reviewed recent historical billing: fiscal year 2022–23 total billings from the firm were about $1.8 million, with roughly $800,000 attributable to what he called “special projects.” The next year the total dropped to roughly $1.5 million (about $500,000 in special projects). For the current year he estimated total billings near $1.2 million with special projects around $250,000. The proposed $850,000 lump sum, Zimmerman said, was a discounted figure intended to approximate the baseline legal services an in‑house team would provide; he added an illustrative $150,000 estimate for expected special projects beyond the retainer.

Commissioners expressed a mix of support and conditions. Commissioner Josh Street said a flat fee can encourage efficiency and asked that the city craft a clean new contract rather than continue to amend the older agreement. Commissioner Street suggested any carve‑out for special projects should be reserved for matters that exceed a threshold (he proposed about 10 hours of work) and that project fees be negotiated when they arise rather than hard‑coded.

Commissioner Granger urged staff to provide data showing the lump sum’s budget impact and noted the commission should set priorities for legal spending. Commissioner Hughes asked for a clear, new contract rather than repeated amendments. Commissioner Lucas emphasized the value of institutional knowledge: Zimmerman and his team have handled long, complex recovery matters and several commissioners warned that a midstream change could lose expertise the city has relied on through recovery and FEMA reimbursement work.

Zimmerman described how his firm handled the post‑storm workload and how a fixed fee is meant to mirror an in‑house option: “We would be coming to you with a lump sum fee of $850,000 if that's what you would like to go toward. That would provide certainty. It would be a lump sum. Whatever it takes to get the job done, we'd get the job done.” He said exceptional items — large financing, major public‑private partnership agreements, and specific litigation — would remain negotiable as special projects.

Budget staff told the commission the $850,000 figure had been placed in the preliminary general fund budget as a potential lump‑sum line item. Commissioners discussed how that sum would be funded if the commission wanted the retainer and whether to hold a contingency for exceptional matters rather than drawing reserves; staff noted that any amount above the allocated lump sum would come from reserves if not otherwise approved by the commission.

The workshop produced no vote. Commissioners asked staff and the city attorney to return with a clean draft contract that defines covered services, proposes a threshold and approach for special projects, and compares the lump sum to hourly‑rate scenarios and to in‑house alternatives. Several commissioners also said they wanted the lump‑sum request and any contingency for special projects to appear in the formal FY26 budget proposal so the commission could evaluate tradeoffs alongside other capital and operating needs.

Ending: The city attorney agreed to provide a revised draft that narrows the special‑project definitions and shows the budget mechanics; staff will include the proposal in the coming budget workshops so elected officials can weigh the retainer against other priorities.