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Home My WebLink About11460RESOLUTION NO. 11460 A RESOLUTION APPROVING THE ENGAGEMENT OF LEWIS M. QUIGG OF SHAW & QUIGG, P.C. AS SPECIAL COUNSEL TO ENFORCE THE CONTINUING GUARANTY OF GEORGE F. ADAM, JR. EXECUTED IN CONNECTION WITH THE ADAM AIRCRAFT INDUSTRIES INC. TRANSACTION AND AUTHORIZING PAYMENT OF SPECIAL COUNSEL COMPENSATION FROM THE 1992 -2011 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Pursuant to Section 6 -7 of the Charter of the City, the City Attorney's engagement of Lewis M. Quigg of Shaw & Quigg, P,C., as special counsel to take any and all action reasonable and necessary to enforce the Continuing Guaranty of George F. Adam, Jr. executed in connection with the Adam Aircraft Industries, Inc. transaction is hereby approved. CFrTI(lnl ') The City Council finds and determines that the services of special counsel are required to be performed in order to obtain repayment of funds advanced from the 1992 - 2011 Sales and Use Tax Capital Improvement Projects Fund ( "Fund "). Therefore, the payment of the compensation and costs of special counsel are an appropriate expenditure from the Fund and the Director of Finance is directed and authorized to pay such compensation and costs of special counsel out of the Fund upon approval thereof by the City Attorney. SECTION 3. This Resolution shall become effective upon final approval and adoption. INTRODUCED November 10, 2008 M. W,zW; WN Judy Weaver Councilperson D D O e Background Paper for Proposed RESOLUTION AGENDA ITEM # 24 DATE: November 10, 2008 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING THE ENGAGEMENT OF LEWIS M. QUIGG OF SHAW & QUIGG, P.C. AS SPECIAL COUNSEL TO ENFORCE THE CONTINUING GUARANTY OF GEORGE F. ADAM, JR. EXECUTED IN CONNECTION WITH THE ADAM AIRCRAFT INDUSTRIES INC. TRANSACTION AND AUTHORIZING PAYMENT OF SPECIAL COUNSEL COMPENSATION FROM THE 1992 -2011 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND ISSUE Should City Council approve the engagement of Lewis M. Quigg as special counsel to enforce George F. Adam, Jr.'s Continuing Guaranty? RECOMMENDATION Approve engagement of Lewis M. Quigg. BACKGROUND Since the City Attorney will probably be a witness in any litigation to enforce the Continuing Guaranty of George F. Adam, Jr., special counsel will need to be engaged to enforce the Continuing Guaranty. Mr. Quigg is a competent litigator with sufficient experience to represent the City's interest. According to City records, Mr. Adam under his Continuing Guaranty owes the City approximately $2.2 million less any recovery out of the Adam Aircraft Industries, Inc. bankruptcy. Since the purpose of litigation to enforce Mr. Adam's Continuing Guaranty would be to recover funds advanced out of the one -half cent sales and use tax fund (" "Fund "), all costs incurred in such litigation would be a proper charge and expense of the Fund. FINANCIAL IMPACT See Background.