HomeMy WebLinkAbout03/21/2000, C4 - AMENDMENT TO CONTRACT FOR LEGAL SERVICES RELATIVE TO HEARINGS FOR THE CITY'S WATER RIGHTS PERMIT AT SALINAS RESERVOIR counat
March 21. 2000
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C I T Y O F SAN LU I S OBISPO
FROM: John Moss, Utilities Director
Prepared By: Gary Hendersy,Water Division Manager 44%-)
SUBJECT: AMENDMENT TO CONTRACT FOR LEGAL SERVICES RELATIVE
TO HEARINGS FOR THE CITY'S WATER RIGHTS PERMIT AT
SALINAS RESERVOIR
CAO RECOMMENDATION
By motion, (1) Approve the amendment to the contract with Hatch and Parent-for legal services-
relative to hearings for the City's water rights permit for an additional amount of$10,000 for a
total compensation not to exceed $100,000, and, (2) Approve advancing project funding
identified as second year CIP project funding for this project in the amount of$10,000.
DISCUSSION
The State Water Resources Control Board hearing relative to the City's water right permit for
Salinas Reservoir was completed on Monday, October 18, 1999. The hearing was originally
scheduled for one day and was rescheduled to two days shortly before the hearing date. Due to
the length of the proceedings, a third day was required and the hearing was continued to the
Monday of the following week.
The extended hearing dates and significant number of witnesses and testimony resulted in the
necessity to amend the original contract'for legal services with Hatch and Parent. The original
contract was for$30,000 with an additional $10,000 for contingencies. Amendment No. 1 to the
contract approved an additional $50,000 for a total compensation of$90,000. The total funding
was estimated for completion of the legal work through final closing briefs and rebuttals. This
work has been completed and final billings have been submitted.
Upon receipt of the last billing from Hatch and Parent, the total billings significantly exceeded
the budgeted amount. Staff contacted Hatch and Parent and discussed remedies for the costs
which exceed the approved amounts. Through these discussions, Hatch and Parent agreed to
reduce the billings to the city, but the final amount still exceeds the available budget by
$6,248.81. Staff believes that these additional expenses are appropriate. The additional
requested funds, above the current billings, will cover expenses during the final hearing in
Sacramento when the State Board will be making their final decision on this issue.
FISCAL IMPACT
The original contract plus amendment 1 provide funding up to $90,000. An additional $10,000
will cover expenses to date as well as costs to complete the remaining work discussed above.
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Council Agenda.Report—Salinas Reservoir Water Rights Hearing Expenses
Paget
Staff recommends that the $10;000 6e advanced from the $578;800 -approved f6r the project: _
design in the 2000-01 budget. This will reduce design funding ,to $568;800; which ;should be
adequate to proceed with the additional design work associated with the next phase of this
project.
ATTACHMENTS' 1. AmendrnentNo. 2 to Agreement foi Legal Services between the City
of San Luis Obispo and Hatch and Parent
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AMENDMENT NO.2
AGREEMENT FOR LEGAL SERVICES
BETWEEN CITY OF SAN LUIS OBISPO
AND HATCH AND PARENT
THIS AMENDMENT NO. 2, made in duplicate and entered into this day of
March, 2000, by and between the City of San Luis Obispo(herein referred to as City) and Hatch
and Parent (herein referred to as Counsel), provides for changes to the Agreement for Legal
Services dated September 1, 1999,as follows:
WITNESSETH:
WHEREAS,Counsel was retained to provide legal repres entation at the hearings before the
State Water Resources Control Board relative to the Salinas Reservoir Expansion Project and the
City's water rights permit;
WHEREAS, the scope of work associated with preparation for the hearings and
participation in the proceedings increased significantly from original estimates;
WHEREAS, additional work was necessary relative to preparation of closing statements
and review of other parties closing statements;
NOW,THEREFORE,in consideration of their mutual covenants the parties hereto agree as
follows:
1. Compensation Cap. The compensation cap in Amendment No. 1 (dated November 30,
1999) to the original contract (dated September 1, 1999) shall be changed to increase
the maximum compensation by$10,000 for a total compensation of$100,000.
IN WITNESS.WHEREOF, the parties hereto have executed this AMENDMENT on the
year and date first written above.
CITY OF SAN LUIS OBISPO
By:
Allen Settle
Mayor
1
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COUNSEL
APPROVED AS TO-FORM: Attorneys atlaw
By:
mo
or e.
2
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