Council approves $2.45 million in outside‑counsel transfers after closed session; critics warn of fiscal optics
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Summary
After a closed session, the council authorized transfers to increase contracts with Nossaman LLP ($650,000) and Gibson Dunn & Crutcher ($1.8 million). Dissenting members and public commenters criticized repeated requests for outside counsel spending tied to litigation over projects including Venice Dell.
The Los Angeles City Council approved two funding transfers for outside counsel after discussing items in closed session, prompting public criticism from community members who oppose the city’s continued litigation spending.
On item 22 the council authorized an amendment to increase contract CD146250 with Nossaman LLP by $650,000, with controller instructions to transfer funds to the City Attorney’s account. The roll call recorded nine ayes and three noes. For item 23 the council approved a $1,800,000 transfer to the Gibson Dunn & Crutcher contract (contract 201616) with a roll call of nine ayes and four noes.
Council discussion on the floor included a brief reading of the recommended controller instructions by the City Attorney’s office. Council member John Lee recused himself from item 22 prior to closed session "out of an abundance of caution." The council president confirmed closed‑session procedures and that limited staff would remain for the discussions.
The transfers drew sustained public comment before and after the closed session. Several Venice community speakers asked the council to stop allocating additional funds — roughly $760,000 to $1,000,000 cited by speakers — to defend litigation related to the Venice Dell affordable‑housing project and warned that continued spending may jeopardize the city’s pro‑housing designation and the project’s ability to be built. Sarah Letts of Hollywood Community Housing disputed claims in recent briefs alleging appraisal fraud and asked the council to deny the request to spend additional funds on outside lawyers.
Council members who voted for the transfers said the contracts and litigation required legal resources; members who opposed the items registered no or raised concerns during roll call. The City Attorney’s office provided the contract numbers and the fiscal instructions on the record; both transfers passed. The council directed necessary accounting transfers and the City Attorney will proceed under the amended contracts.
The votes were: item 22 — authorize $650,000 increase to Nossaman contract (roll call recorded 9 ayes, 3 noes); item 23 — transfer $1,800,000 to Gibson Dunn & Crutcher contract (roll call recorded 9 ayes, 4 noes). Members who sought recusal or raised conflict‑of‑interest concerns asked that those be noted in the record before votes.
