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Council approves $424,000 amendment after months of rising legal bills
Summary
West Covina council voted to add $424,000 to the FY25–26 legal-services budget after staff reported projected legal spending of about $2.325 million — more than double last year’s $1.1 million — prompting questions about litigation drivers, retainer fees and insurance reimbursement.
The West Covina City Council voted unanimously except for one dissent to approve a $424,000 budget amendment to cover escalating legal expenses for fiscal year 2025–26. City staff told the council the amendment will use general fund reserves and takes the projected total legal spending for the year to approximately $2,325,000, up from about $1,100,000 the prior year.
"The majority of that $1.2 million is litigation," Finance staff explained, distinguishing one-time litigation costs from recurring retainer fees. Council members pressed staff for a breakdown of which firms and matters are driving the rise and asked whether any of the expense could be reimbursed by the city’s JPA or insurance. "If the matter is settled, it would stop the charges," the City Attorney said when describing ongoing court filings and response work.
Councilmember Wu urged methods to "stop this bleeding," suggesting mediation and internal negotiation where appropriate. Councilmember Diaz moved to approve the amendment and Councilman Wu seconded; the motion passed on roll call with Councilmember Gutierrez voting no and the remaining members voting aye. The staff report, as presented, covers charges through June 2026 and includes a line-item showing a single firm with roughly $1.2 million in billed services described by staff as largely related to litigation.
City staff said they are discussing potential reimbursement through the city’s joint powers insurance authority but had no confirmed recovery at the time of the meeting. The council asked staff to continue providing detailed billing breakdowns and to explore options to limit recurring legal costs as litigation matters resolve.
