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The City Council approved an agreement at its Aug. 4 meeting to bring in outside legal counsel to review the city’s ethics procedures. The agreement allows the city to spend up to $50,000 after council members raised questions about how the firm was selected, why the city attorney had not been consulted and what work the firm would perform.
Hyde Kelley LLP will serve as special counsel and advise the city on ethics matters. Mayor Pro Tem David Reid and council members Tina Bennett-Burton and Lupe Gonzalez requested the outside legal assistance to review the city’s ethics process, governance procedures and related issues.
The city manager had already hired Hyde Kelley under his administrative contracting authority before the matter came to the full council for approval. Staff said Hyde Kelley does not replace City Attorney David Berman and that the city, not the three council members who requested outside assistance, is the client.
The item initially appeared on the consent agenda, where matters generally are approved together without individual discussion. Gonzalez requested during the afternoon study session that it be moved to the regular agenda for separate consideration.
Council member Elizabeth Villafranca questioned why outside counsel had been hired without first consulting Berman.
When she asked whether Berman had been involved before the item was placed on the agenda, he responded, “I have absolutely no knowledge of this whatsoever.”
Villafranca also objected to what council members have called the “power of three,” referring to three council members acting together to request action from the city manager.
She said she and Council member Roger Neal had been “relegated to basically flower pots on the dais” because they were not being given an opportunity to participate in discussions before matters reached the council.
Gonzalez said she sought another legal perspective because of questions surrounding the city’s handling of ethics proceedings.
“I really wanted a second opinion,” Gonzalez said. “I want to be transparent with everyone, and I want to make sure that it’s done correctly.”
Bennett-Burton said she contacted the Texas Municipal League and received a legal opinion that differed from Berman’s guidance. Reid said he wanted an expert to examine the city’s procedures and determine whether people involved in ethics complaints are treated fairly and equitably.
Staff said the city considered three firms: Knight Law Firm, Sheets & Crossfield and Hyde Kelley. The firms were evaluated based on their experience and ability to address the council’s questions. No formal request for qualifications or proposals was conducted because of the limited scope and anticipated cost of the work.
The $50,000 is a spending cap, not an estimate of the final cost. Staff said the city has seen outside attorney costs range from about $10,000 to $25,000 depending on the research required.
Mayor Terry Lynne said he did not necessarily oppose bringing in outside legal expertise but objected to how the proposal reached the council.
“My big problem is the way this happened,” Lynne said.
He said the council should have first discussed the issue during a study session and agreed on the scope of work, expected results and how success would be measured before selecting a firm.
Lynne also criticized the “power of three.” Reid countered that different combinations of council members have used the practice and argued that criticism of it has varied depending on which members were involved.
George Hyde, who will lead the outside legal work and has more than 25 years of experience representing local governments, addressed the council before the vote.
Hyde said his role would be to provide an independent legal assessment rather than take sides in a council dispute.
“I’m not going to play favorites,” Hyde said.
The exact scope of Hyde Kelley’s work had not been fully defined before the council voted.
Hyde said he expected to begin by reviewing the city’s current ethics rules and circumstances and recommending possible improvements. The council and city administration could then determine whether additional work was necessary.
Bennett-Burton said the work should apply from the date Hyde Kelley was hired onward, and Hyde said he understood his initial review would focus on current conditions.
The council considered postponing the decision until its Aug. 18 study session to further define the scope of work, but the motion failed. The council then approved the agreement.
The decision comes amid ongoing ethics complaints and disputes involving elected officials, including council debate over how complaints should be investigated and heard.
Shortly after approving the Hyde Kelley agreement, council members voted to enter executive session to seek legal advice from the newly retained outside counsel about provisions of the city’s ethics code.
The council returned to open session more than an hour later and announced that no action would be taken as a result of the closed discussion.
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