The San Luis City Council voted to transfer contingency funds to cover ongoing legal costs tied to a federal lawsuit and ratified payment to outside counsel working on the case.

City attorney Kaye McQuill told council the city’s legal services account was in deficit and that litigation activity in the federal case required immediate funding to cover discovery, mediation and motions. McQuill said the city had a current legal budget deficit (about $15,000), requested roughly $80,000 to cover expected May–June work on the federal matter and an additional $10,000 for other legal issues — totaling a $105,000 request from council contingency funds.

During the meeting the mayor read into the record an item to ratify a recent invoice to the city’s outside counsel (the invoice amount was read into the record during the motion). After discussion, council approved the transfers and ratification on a roll call vote that recorded four ayes and two nays.

McQuill said the federal matter (identified in the minutes by case number) remains on a tight judicial schedule, involves discovery disputes and mediation costs, and that the city is working three tracks — litigation, mediation and other legal issues — concurrently.

Council members who opposed the transfer said they were concerned about legal spending and the broader fiscal picture; members voting for it said the city is required to defend against litigation and the funding was necessary to continue representation.