Monday, April 4, 2011

Russo Inherits Disastrous Alameda Lawsuits

Apparently former Oakland City Attorney John Russo loves a challenge. After making many fond memories with Oakland Mayor Jean Quan (read: sarcastic), it looks as if Russo will leave the elected city attorney position for the city manager position in equally-kooky Alameda. 


Russo will inherit about half a dozen lawsuits against the city and a history of suspicious behavior from elected and appointed officials. Still, I’m hopeful that this change will help turn things around in Alameda. With fresh blood in the council, a competent mayor and a new city manager, Alameda just may have a chance to straighten things out.

Not to continually reference the impending doom of the lawsuits against the city, but Alameda has racked up quite a suite of suits:

-          Three lawsuits filed by Suncal that could amount to over $100 million dollars
-          One lawsuit filed by previous interim city manager Ann Marie Gallant
-          One lawsuit filed by previous city attorney Teresa Highsmith
-          Potential lawsuit from former Fire Chief David Kapler

A recent Island of Alameda article by Michele Ellson revealed the city’s pressing financial woes: “Alameda Facing Millions in Budget Deficits; Treasurer Says City Heading Toward Bankruptcy.” According to this article:

Alameda is facing a $6.2 million general fund budget shortfall next year and growing deficits for each of the four years that follow it; without major cuts or more money, the city will exhaust its fund balance before the end of the 2013-2014 fiscal year, the forecast showed.

What’s more, the city must pay an additional $860,000 for medical services, $622,000 in fuel and supply costs, all while they’re losing $710,000 in sales tax and $900,000 in costs from the golf complex handover.

These lawsuits filed against the city could be the straw that breaks the camel’s back. The legal costs alone would be two (well-paid) full time jobs. What exactly is all of this costing the city per month? As it stands now, there’s not a dime to spare in the City of Alameda’s budget. Are we closing down a school or cutting teachers’ salaries to pay city lawyers?

Not to mention the cost of settling these lawsuits. What if a plaintiff wins a suit against the city? Can Alameda afford to pay the settlement without declaring bankruptcy? According to the City Treasurer, the answer is no.


1 comment:

  1. Susan Stein5/02/2011

    If Russo is smart, (I don't know how smart he can be leaving Oakland to come to our fair community-but I'll save that for another time)he'll get these lawsuits behind us ASAP.

    We need to put the dark days of the old city council with both Highsmith and Gallant on the ash heap of history and move on.

    It's hard to believe that even happened.

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