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HomeMy WebLinkAboutItem 09 - Amendment to Legal Services Agreement for Deputy City Attorney ServicesDepartment Name: City Attorney Cost Center: For Agenda of: Placement: Estimated Time: 1501 November 12, 2019 Consent N/A FROM: Christine Dietrick, City Attorney Prepared By: Bailey Hicks, Legal Assistant Kelly White, Legal Assistant/Paralegal SUBJECT: AMENDMENT TO LEGAL SERVICES AGREEMENT FOR CONTRACT DEPUTY CITY ATTORNEY SERVICES RECOMMENDATION 1.A Third Amendment to the Legal Services Agreement with the law firm of Hanley and Fleishman, LLP, adding an additional eight months to the agreement and increasing the cumulative not-to-exceed amount from $180,000 to $228,000. 2.The Finance Director to appropriate funds currently held in a City liability account to the City Attorney’s contract services budget in the amount of $21,707.05 and authorizing the use of those funds and funds currently available within department budget to support the contract amendment. 3.The City Attorney to re-allocate the funds approved to support this contract amendment if the City Attorney determines that the workload demand or service needs of the office can be more efficiently or cost effectively addressed by retention of temporary, part-time staffing or through different contract services arrangements. DISCUSSION Over the 30 months of the agreement, Hanley and Fleishman, LLP has consistently shown itself to be a cost-effective resource. Most notably making numerous court appearances, in support of the filing of misdemeanor criminal citations, responding to records and subpoena requests, and acting as advisor to Code Enforcement staff, in addition to providing supplemental personnel and general municipal advisory services to address increasing baseline workload. These services are provided on a flat-rate basis so that unpredictable spikes in workload do not result in unpredictable cost increases. This arrangement has proven cost effective and integral to supporting the transition of the new Assistant City Attorney, while allowing regular staff of the department to address other organizational demand for ongoing legal services on major projects and high priority and emerging issues. Because of their performance to date, the City Attorney recommends extending the term of the current flat-rate, month-to-month agreement by eight months (to May 31, 2020) and to increase the not-to-exceed amount to $228,000. The City Attorney recommends this amendment (Attachment A) as a means to accomplish the goals for which department has been given contract and staffing budget. The contract remains terminable for convenience or financial need with 30 days’ notice. Packet Page 93 Item 9 BACKGROUND Previous Council or Advisory Body Action In June 2017 the City Council authorized the First Amendment to this agreement, and in November 2018 authorized the Second Amendment (Attachment B). Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Partially (see table below) Budget Year: 2019/20 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Funding Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund: temp. salaries $8,800 (previously budgeted) $1,292.95 (previously appropriated) $7,507.05 N/A General Fund: contract services $25,000 (previously budgeted) $25,000 (previously appropriated) $0 N/A State $0 $0 $0 Federal $0 $0 $0 Fees $0 $0 $0 Other: Code Enforcement Settlements $21,707.05 (previously unbudgeted) $21,707.05 (appropriation requested) $0 N/A Total $55,507.05 $48,000 $6,200 N/A Packet Page 94 Item 9 The City Attorney Department’s contract services account was previously allocated $25,000 for code enforcement use, which is appropriated within the department’s current budget and the City Attorney is requesting it be encumbered in support of the contract extension. The City also accumulated funds in the City liability account in the amount of $21,707.05 from previous code enforcement settlements completed by the Department; the funds being previously unappropriated, but the City Attorney is requesting they be appropriated by Council for this code enforcement support use (Attachment C). The remaining funding of $1,292.95 for the contract amendment requested, will come from the existing temporary salaries account with in the City Attorney’s Department current budget. The Department is requesting to use these funds for continued and expanded support of code enforcement services that are included in this Agreement. ALTERNATIVES Do not authorize the Third Amendment to the Agreement. The consequences of this action would be to limit the department’s ability to efficiently accomplish the code enforcement, records, development review and other general municipal law support services expected of it, including the timely filing of misdemeanor criminal citations and related court appearances. Attachments: a - Third Amendment to Agreement with Hanley and Fleishman b - First & Second Amendment to Agreement with Hanley and Fleishman c - Draft Resolution Packet Page 95 Item 9 THIRD AMENDMENT TO AGREEMENT This Second Amendment to Agreement is made and entered in the City of San Luis Obispo on , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and HANLEY AND FLEISHMAN, LLP, a limited liability partnership, hereinafter referred to as Consultant. W I T N E S S E T H: WHEREAS, on April 1, 2017, the City entered into an Agreement with Consultant for professional legal services to serve as a contract deputy city attorney; and WHEREAS, on June 6, 2017, the parties executed a First Amendment to said Agreement; and WHEREAS, on November 1, 2018, the parties executed a Second Amendment to said Agreement; and WHEREAS, the City has received excellent and efficient service to date from Consultant under said Agreement; and WHEREAS, the parties seek to modify certain provisions of the Agreement between them. NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1.The “COMPENSATION.” Section is modified to read “…a sum not to exceed six thousand dollars ($6,000.00) per month, or $228,000 over the term of the Agreement. 2.The last sentence of the “TERM AND TERMINATION.” Section is modified to read “This Agreement shall continue until termination, until May 31, 2020, or until modified by written Agreement of the parties.” 3.All other terms and conditions of the Agreement, as amended hereby, remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO By:________________________________ J. Christine Dietrick, City Attorney Signed on __________________________ HANLEY AND FLEISHMAN, LLP By: ________________________________ Roy A. Hanley Its: Packet Page 96 Item 9 Packet Page 97 Item 9 Packet Page 98 Item 9 Packet Page 99 Item 9 Packet Page 100 Item 9 Packet Page 101 Item 9 Packet Page 102 Item 9 R ______ RESOLUTION NO. _____ (2019 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE LEGAL SERVICES CONTRACT WITH HANLEY AND FLEISHMAN, LLP, AND RELATED BUDGETARY APPROPRIATIONS WHEREAS, in April 2017 the law firm Hanley and Fleishman, LLP, (“H&F”) began providing professional legal services to the City through an agreement to provide contract Deputy City Attorney services related to general municipal prosecution, transactional and advisory support; and WHEREAS, H&F, as contract Deputy City Attorney, provided the City with various types of support as assigned by the City Attorney, including filing and making in-person court appearances in support of criminal misdemeanor complaints for violations of the City’s municipal code; and WHEREAS, H&F has continually proven to be a reliable and efficient source of legal services at a negotiated flat rate, as the workload of the City Attorney’s Office has increased, and the City Attorney has needed to delegate tasks to address demands in a timely manner; and WHEREAS, the workload of the City Attorney’s Office continues to require legal services in addition to those provided by its two regular staff members (the City Attorney and Assistant City Attorney); and WHEREAS, over the term of the City’s contract with H&F, funding to support the contract has come from City Attorney’s Office budget for contract services and temporary salaries; these funds being appropriated in the budget for use towards such purposes; and WHEREAS, at this time, the City Attorney requests an amendment of the H&F contract to extend the term through May 31, 2020 at the existing flat rate, which would require the encumbrance of an additional $48,000 to support the contract extension; and WHEREAS, the City has recovered $21,707.05 through settlement agreements related to various code enforcement cases, which is currently being held in a City liability account, which has not been appropriated to any other purpose; and WHEREAS, the City Attorney requests the balance of settlement agreement funds be used towards the requested contract amendment to fund continued and expanded code enforcement legal support services. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Approve and authorize the City Attorney to execute the proposed contract amendment with H&F extending the term through May 31, 2020 and approve the use of currently budgeted and appropriated contract services ($25,000) and temporary salaries ($1,292.95) funding, as well as currently unbudgeted and unappropriated code enforcement settlement agreement funds ($21,707.05), as specified in the staff report. Packet Page 103 Item 9 Resolution No. _____ (2019 Series) Page 2 R ______ SECTION 2. Direct the Finance Director to move the balance of $21,707.05 currently in a City liability account for code enforcement settlement agreements to the City Attorney contract services budget line. SECTION 3. Authorize the City Attorney to re-allocate the funds approved to support this contract amendment if the City Attorney determines that the workload demand or service needs of the office can be more efficiently or cost effectively addressed by retention of temporary, part-time staffing or through different contract services arrangements. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2019. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this __________ day of ______________________, __________. ____________________________________ Teresa Purrington City Clerk Packet Page 104 Item 9