Legal Department FY 2020 Proposed Budget Presentation May

Legal Department FY 2020 Proposed Budget Presentation May 9, 2019

Legal Department Organization Chart City Attorney (Ronald C. Lewis) Chief Administrative Officer (Marsha E. Murray) Staff Administration Section (Henry Merceron) First Assistant City Attorney (Randy Zamora) Claims & Subrogation Section (Randy Zamora) Municipal Prosecution Section (Wynetta Chaney) General Litigation Section (Judith Ramsey) Labor, Employment & Civil Rights Section (Donald Fleming) General Counsel Section (Tracy Calabrese) Office of Inspector General (Robin Curtis) Deputy City Attorney (Deidra Penny) Disaster Recovery Section (Anthony Vargas) Contracts Section Neighborhood Services Section Real Estate Section (Nirja Aiyer) (Ondrea Taylor) (Martin Buzak) 2

Department Programming/Accomplishments • Major Services and Impact Ø Contracts - Successfully negotiated multiple contracts valued at several hundred million dollars for design and construction at IAH and a design-build infrastructure spaceport project at Ellington Field. Ø Real Estate – Generated revenues of over $14 million for the General Fund by closing on a property co-owned by the City and Harris County. Ø General Counsel – Updated HFD EMS fees and billing procedures ordinances resulting in estimated revenue of $1 million annually. Ø Claims and Subrogation – Legal advocacy resulted in no payments on approximately 75% of claims filed against the City. 3

Department Programming/Accomplishments • Major Services and Impact Ø General Litigation – Successfully represented the City in protecting samesex couples’ employment benefits of employees. Ø Neighborhood Services –Addressed neighborhood blight and/or dangerous conditions for over 180 buildings. Ø OIG – Investigated over 300 cases and facilitated numerous trainings in an effort to decrease the number of necessary investigations. Ø Labor, Employment and Civil Rights- Provided counsel on implementation of Proposition B. Ø Disaster Recovery – Provided counsel facilitating the expedited delivery of home repair dollars to Hurricane Harvey impacted Houstonians. 4

Department Programming • Anticipated growth in demand for legal services from significant clients, including the Houston Airport System, Houston Public Works, Houston Planning and Development, General Services and Solid Waste Management departments. 5

FY 2020 - Revenues Highlights • General Fund revenues are primarily comprised of the recapture of salaries of personnel dedicated to specific departments. • 13 FTEs dedicated to Houston Public Works were transferred from Legal’s FY 20 budget. • Property and Casualty revenues are increasing because expenditures are increasing for legal services. 6

Revenues By Funds ($ in thousands) FY 18 Actual FY 19 Budget FY 19 Estimates FY 20 Proposed Variance FY 20 Prop/FY 19 Estimates General Fund $1, 344 $1, 515 $1, 157 $547 $(610) (53%) Property & Casualty Fund $12, 791 $23, 169 $22, 674 $26, 580* $3, 906 17% $14, 135 $24, 684 $23, 831 $27, 127 $3, 296 13. 8% Fund Total % Change *Revolving fund revenues, shown on page 7, must match fund expenditures, shown on page 8. 7

Expenditures By Funds ($ in thousands) FY 18 Actual FY 19 Budget FY 19 Estimates FY 20 Proposed Variance FY 20 Prop/FY 19 Budget % Change General Fund $14, 990 $16, 330 $15, 081 $15, 455 $(875) (5. 4%) Property & Casualty Fund $12, 791 $23, 169 $22, 674 $26, 580 $3, 411 14. 7% Workers’ Compensation Fund $239 $249 $262 $13 5. 2% Total $28, 020 $39, 748 $38, 004 $42, 297 $2, 549 6. 4% Fund 8

FY 20 Personnel vs Other Costs Fund 1011 FY 2020 Proposed Budget $262 Other Services $2. 7 10. 0% General Office Services $3. 4 12. 6% Personnel $235 89. 7% Other Costs $27 10. 3% Supplies $13. 4 49. 6% Restricted Accounts $7. 5 27. 8% 9

FY 20 Personnel vs Other Costs Fund 1000 FY 2020 Proposed Budget $15, 455 [CATEGORY NAME] $241 17. 2% Personnel Budget $14, 052 90. 9% Other Costs $1, 403 9. 1 % Supplies $321 22. 9% [CATEGORY NAME] $125 8. 9% [CATEGORY NAME] $176 12. 5% Restricted Accounts $540 38. 5% 10

FY 20 Personnel vs Other Costs Fund 1004 FY 2020 Proposed Budget $26, 580 Supplies $177. 95% Other Services Restricted Accounts $189 $235 General Office 1. 0% 1. 3% Services $139. 75% Legal Services Contracts/Expert Witnesses $6, 000 32. 4% Personnel Budge $8, 046 30. 3% Other Costs $18, 534 69. 7% Claims/Settlements/ Judgments/ Attorneys Fees $10, 375 55. 9% Litigation Support Services $1, 418 7. 7% 11

Functional Organizational Chart (in thousands) Ronald C. Lewis City Attorney Budget $42, 297* FTEs: 202. 7 (Attys – 116. 8) Marsha E. Murray Chief Administrative Officer Staff Administration (Henri Merceron, Division Manager) Budget: $3, 668 FTEs 17. 5 (Attys - 2) (Funds 1000 & 1011) Randy Zamora First Assistant City Attorney General Litigation (Judith Ramsey, Section Chief) Budget: $14, 443 FTEs: 28 (Attys 18) (Fund 1000 & 1004) Claims & Subrogation (Randy Zamora, Section Chief) Budget: $2, 700 FTEs: 10 (Attys - 4) (Funds 1004 & 1011 Labor, Employment & Civil Rights (Donald Fleming, Section Chief) Budget: $9, 522 FTEs: 24 (Attys 13) (Fund 1000) General Counsel (Tracy Calabrese, Section Chief) Budget: $2, 005 FTEs: 15. 7 (Attys 11) (Fund 1000) Office of Inspector General (OIG) (Robin Curtis, Section Chief) Budget: $1, 178 FTEs: 9 (Attys - 4) (Fund 1000 & 1004) Deidra Penny Deputy City Attorney Disaster Recovery (Anthony Vargas, Section Chief) Budget: FTEs: 8 (Attys - 5) (Grant Funded) Neighborhood Services Municipal Prosecution (Wynetta Chaney, Section Chief) Budget: $3, 190 FTEs: 23. 6 (Attys - 21) (Fund 1000) *The Legal Department’s total budget is $42, 297, 000; however, not all FTEs are within the department’s budget. The budgeted costs for all FTEs is $47, 448, 000. (Nirja Aiyer, Section Chief) Budget: $1, 828 FTEs: 18. 7 (Attys – 10) (Fund 1000) Contracts (Martin Buzak, Section Chief) Budget: $1, 617 FTEs: 21. 5 (Attys 13. 8) (Fund 1000 ) Real Estate (Ondrea Taylor, Section Chief) Budget: $2, 146 FTEs: 26. 7 (Attys 15) (Fund 1000 & 1004) 12

FY 2020 Budget Reductions • FY 20 budget reductions total $450, 739. • The following 3 vacant budgeted positions were eliminated: Ø First Assistant City Attorney Ø Senior Paralegal Ø Legal Investigator 13

FY 2020 - Expenditures Highlights • Insufficient resources in the Legal Department budget for technology needs. • $5, 125, 000 (12%) of budget is for the engagement of outside counsel. • Reduction due to transferred cost of HPW-work personnel to HPW’s budget totaling $1, 496, 928. 14

Questions 15

Appendix [CATEGORY Department Demographics NAME] Asian Male 2. 5% 0% 5. 5% [CATEGORY NAME] [VALUE] [CATEGORY NAME] 7. 35% Asian Female 4. 9% [CATEGORY NAME] 6. 75% [CATEGORY NAME] 27. 6% [CATEGORY NAME] 25. 15% 16

Budget History ($ in thousands) Current Budget Actual / Projection Surplus/Deficit FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 $38, 898 $39, 263 $39, 378 $39, 308 $39, 648 $42, 297 $33, 561 $27, 831 $28, 413 $28, 020 $38, 003 $42, 297 $5, 337 $11, 432 $10, 965 $11, 288 $1, 645 $0 17

Department Budget Reductions (in thousands) Fund General Fund Total FY 18 FY 19 FY 20 3 -Year Total $548 $266 $451 $1, 265 • 3 -year budget reductions Ø Eight FTEs have been eliminated consisting of four attorneys and four staff. 18

FY 2020 Performance Measures Customer Measures Priorities Neighborhood Matters handled including Deed Restrictions PS, CC, S&I EEOC /TX Workforce Commission matters handled Business Process Measures CC, SFM, S&I Priorities FY 18 Actual FY 19 Budget FY 19 Estimates FY 20 Proposed 1, 256 1, 308 1, 428 1, 342 297 350 400 700 FY 19 Budget FY 19 Estimates FY 20 Proposed FY 18 Actual Liability Claims processed SFM, S&I 1, 228 1, 100 1, 354 1, 200 Liability Claims-no payment SFM, S&I 818 900 1, 008 950 1, 056 1, 100 1, 153 Contracts prepared PS, S&I, CC, SFM 19