Saratoga Springs City Council approves $55,000 in outside legal contracts, funds from liability reserve

Saratoga Springs City Council on Feb. 21 authorized two contracts for outside legal counsel and approved budget amendments drawing on an existing assignment of fund balance to cover up to $55,000 in legal expenses related to DeCensus v. City of Saratoga Springs et al.

City Attorney David Harper said the city's insurer, Nimer, “disclaim[ed] coverage very unexpectedly and without warning,” creating an urgent need to retain outside counsel because the federal lawsuit is near being served and could trigger short filing deadlines. Harper said attorney Johnson, who previously represented the insurer and reviewed extensive pleadings, is familiar with the case and was recommended to represent the city on a contract not to exceed $35,000. Harper also said Johnson identified allegations within a RICO claim that are directed solely at Commissioner Moran and recommended separate counsel for the commissioner.

Harper told the council he recently met with attorney DiCenzo, who he said was preparing to serve the complaint; if service occurs, “there will be a sudden 20 day deadline.” Harper said Johnson had already reviewed the pleadings and that, in his view, separate representation for Commissioner Moran was warranted because Johnson concluded that, if the case went to deposition or trial, Commissioner Moran and former Mayor Meg Kelly “would be testifying in a contrary manner.”

Mayor Safford moved to authorize the mayor to approve a contract with Johnson and Laws LLC for legal services in the DeCensus matter not to exceed $35,000; the council approved the motion unanimously. The council then authorized a second contract — for Conway, Donovan & Manley PPLC — to represent Commissioner Moran in the same lawsuit, not to exceed $20,000; that motion also passed unanimously. Both contracts were stated as conditional on the certificate of insurance being accepted by the city’s risk and safety office.

To pay the outside counsel, the council approved a series of related budget actions. Finance staff said the city previously established an assignment of fund balance for legal liability on Nov. 28, 2023; the balance in that assignment as of Feb. 21, 2025, was $109,131.35. The council approved two resolutions to use the assignment — $35,000 for the Johnson contract and $20,000 for the Conway Donovan contract — and corresponding budget amendments. Council members stated the city may later seek reimbursement from its insurer if coverage is ultimately found to apply. After the two expenditures, finance noted the assignment balance would be $54,131.35.

All motions recorded in the meeting passed with no recorded opposition or abstentions. Council members who voted in favor were Mayor Safford and Commissioners Moran, Cole and Kosinski.

The contracts and budget amendments were added and voted on during the meeting; staff said final contracting remains subject to review of certificates of insurance by risk and safety.