Laguna Beach opts to bring its legal counsel in house

Laguna Beach has made a move to establish its own legal department, as the City Council on Tuesday unanimously approved an employment agreement for Megan Garibaldi to served as city attorney.

The city had a decades-long track record of contracting for its legal services and had entered into a five-year agreement with Best Best & Krieger, LLP on Sept. 11, 2023.

Garibaldi has represented the city as its lead legal counsel since the agreement. The council’s move on Tuesday will provide for in-house legal services and make Garibaldi a city employee.

City staff estimated the contracted legal services cost the city between $2.4 and $2.5 million annually. Financial analysis shown in a staff report projected the in-house model to come at a cost of approximately $2.1 million.

“I think anytime you can save $400,000 a year and ensure a faster and more effective legal support system, it’s a good move,” Mayor Alex Rounaghi said. “I think this strategically is the right way. We live in an increasingly complicated and legalistic world...and so I think this is going to ultimately do right by the residents, the taxpayers, and the City Council as we navigate the complicated but also exciting opportunities ahead over the next few years.”

The city’s legal department will include a city attorney, two assistant city attorneys and a paralegal. Special counsel services would include human resources and risk management, outside litigation and administrative support.

Garibaldi will earn an initial annual salary of $297,000, with a cost-of-living adjustment of up to 4% each year. The top step salary for the position of assistant city attorney was noted at $256,000, while a paralegal could earn $110,000 before benefits.

Aggie Nesh, the city’s director of human resources and risk management, said the city would coordinate a transition with Best Best & Krieger. Garibaldi’s anticipated start date is April 28. Human resources staff and Garibaldi will work together to recruit and fill the remaining positions in the legal department.

Councilman Bob Whalen requested a comparative analysis at the end of fiscal year 2025-26 to determine the actual costs within the legal department as compared to the presented projections.

The retirement of Phil Kohn, who had represented the city in legal matters since 1982, set off the search for the next city attorney. Kohn worked with Rutan & Tucker, LLP, which the city contracted with for legal services beginning in 1979.