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Agenda 05/22/2012 Item #11K5/22/2012 Item 11.K. EXECUTIVE SUMMARY Recommendation to authorize the County Attorney to engage outside counsel for representation in the Multi- District Litigation relating to damages incurred as a result of the Deepwater Horizon Oil Spill. OBJECTIVE: To obtain Board authorization for the County Attorney to engage the services of outside counsel to represent the County's interest in the ongoing litigation relating to the Deepwater Horizon Oil Spill. CONSIDERATIONS: The County has filed a claim in the Deepwater Horizon Oil Spill litigation, seeking to recover lost tourist tax revenue and advertisement expenses resulting from the April 20, 2010, oil spill (see Agenda Item 16.F.4, April 12 -13, 2011). Three plaintiffs' firms contacted the County Attorney's Office seeking to represent the County on its claim. Those first firms, in order of preference, are: (1) Hinkle & Foran, P.A. (" "Hinkle ")(part of a consortium of mainly Florida firms); (2) Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. ( "Beasley Allen ") (an Alabama firm); and (3) Motley Rice, LLC (a South Carolina firm). All the firms claim to have a unique bargaining position, a team of experts, and state of the art economic modeling. Hinkle is the recommended firm for several reasons. First, of the three firms, Hinkle currently represents the greatest number of Florida local governments (including Lee, Escambia, Jackson, Jefferson, Leon and Wakulla Counties; cities of Pensacola, Tallahassee, Marathon; and several other Florida cities and school districts). Notably, Lee County selected Hinkle over Beasley Allen. Second, Hinkle's consortium is heavily represented in the Multi- District Litigation on both the Plaintiff's Steering Committee (the "PSC ") (4 of 15 seats) and the Plaintiff's Executive Committee (the "PEC ") (2 of 4 seats). Finally, Hinkle has been the clearest in communicating its proposed terms of representation and proposed compensation; which involves a contingency fee of 20% of the gross recovery to the County. Beasley Allen is staff's second choice in order of preference. Beasley Allen is an Alabama firm that is currently representing Gulf and Walton Counties, along with several Alabama municipalities and a few Florida municipalities. They have one attorney on the PSC (versus Hinkle's four), and none on the PEC (versus Hinkle's two). In the unlikely event that attempts to secure representation with Hinkle should fail, staff recommends retaining Beasley Allen. FISCAL IMPACT: None. The County has made a claim for lost tourist tax revenue and advertising expenses, in the amount of approximately $450,000. Any representation will be on a contingent fee basis, with no exposure to the County. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: The County Attorney's Office is in agreement with staff's recommendation. This item is legally sufficient for Board action and requires a majority vote for approval. -JW RECOMMENDATION: To authorize the County Attorney's Office to engage Hinkle & Foran, P.A., to represent the County in the Multi- District Litigation relating to the Deepwater Horizon Oil Spill. Alternatively, in the event a retainer agreement cannot be reached with Hinkle & Foran, to authorize the retention of counsel in the remaining order of preference stated above. PREPARED BY: Jack Wert, Director, Collier County Tourism Department Packet Page -798- 5/22/2012 Item 11.K. COLLIER COUNTY Board of County Commissioners Item Number: 11.K. Item Summary: Recommendation to authorize the County Attorney to engage outside counsel for representation in the Multi- District Litigation relating to damages incurred as a result of the Deepwater Horizon Oil Spill. Meeting Date: 5/22/2012 Prepared By Name: GreenKelly Title: Tourist Development Tax Coordinator,Tourism 5/9/2012 8:49:40 AM Submitted by Title: Director - Tourism,Tourism Name: Werback 5/9/2012 8:49:42 AM Approved By Name: WertJack Title: Director - Tourism,Tourism Date: 5/9/2012 11:03:54 AM Name: GreeneColleen Title: Assistant County Attorney,County Attorney Date: 5/9/2012 2:53:21 PM Name: WrightJeff Title: Assistant County Attorney,County Attorney Date: 5/10/2012 8:46:03 AM Name: KlatzkowJeff Title: County Attorney Date: 5/10/2012 11:38:10 AM Packet Page -799- Name: FinnEd Title: Senior Budget Analyst, OMB Date: 5/12/2012 3:37:10 PM Name: SheffieldMichael Title: Manager- Business Operations, CMO Date: 5/14/2012 8:43:24 AM Packet Page -800- 5/22/2012 Item 11.K.