City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: June 9, 2025
Report #:2505-4674
TITLE
Approval of Contract Amendment Number 1 to Contract Number S22183280 with Sloan Sakai Yeung & Wong, LLP for Legal Services, Extending the Term to July 1, 2028 and Increasing the Amount Not to Exceed by $200,000, Bringing the New Total Not to Exceed to $455,000; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No 1. to Contract No. S22183280 (Attachment A), with Sloan Sakai Yeung & Wong, LLP to extend the term by three years and increase the amount not-to-exceed $200,000 for on-going labor negotiation legal services. This amendment results in a revised total contract not-to-exceed amount of $455,000 through July 1, 2028.
BACKGROUND
Using outside legal counsel for complex labor contract negotiations helps ensure the City follows all local, state, and federal laws while protecting its interests. Some labor agreements can be more intricate than others and may have a myriad of items involved that must comply with collective bargaining laws, employment regulations, and legal best practices. Outside counsel provides specialized expertise, helps avoid legal risks, and offers an objective perspective in negotiations. Their support ensures agreements are legally sound, fair, and in the best interest of both the City and its employees.
ANALYSIS
This report requests approval to amend the City's existing legal services contract with Sloan Sakai Yeung & Wong, LLP to support ongoing labor negotiations. With several union contracts set to expire this year, expert legal counsel is essential to navigating the complex and sensitive issues involved. The amendment increases the contract’s not-to-exceed amount from $255,000 to $455,000, adding $200,000 to cover ongoing and future legal services. Human Resources is
using exemption 2.30.360(g)1 to proceed with this amendment without a competitive solicitation. To date, nearly $200,000 has been paid under the current contract. The additional funding will support labor negotiations through July 1, 2028. Human Resources (HR) staff has recognized the value of using third-party legal counsel, and the continuation of these essential services is critical to effectively balancing the inherent tension to negotiate and close out contract negotiations while protecting City and employee interests and maintaining positive relationships with union partners.
•Duration: 3-year extension, resulting in a 6-year contract. The three-year extension includes an average annual rate increase of 7.33% for contract years 2026–2028 compared to the prior 3-year term, reflecting inflation and the value of specialized legal expertise.
•Scope of legal services including but are not limited to:
oPre labor negotiations services
oDraft policy and parameters recommendations for negotiations oConduct negotiations with bargaining units
oDraft, present and finalize final agreement
oHandle post negotiation issues and documentation
FISCAL/RESOURCE IMPACT
There is no immediate fiscal impact, sufficient funding has been appropriated to cover the remaining FY 2025 and FY 2026 costs in the Human Resources (General Fund) operating budget.
Cost of 3-year contract extension is $200,000, HR is currently using one-time funding for these legal services and will continue to exhaust these funds to support negotiations underway. HR anticipates minimal, if any, labor contract negotiation costs in FY 2027, pending contact terms with the City’s bargaining units; legal services for negotiations are expected to resume in FY 2028.
STAKEHOLDER ENGAGEMENT
As part of the amendment to the existing contract, key stakeholders including Human Resources, Administrative Services, the City Attorney’s Office, and third-party legal counsel collaborated to ensure current services have not been interrupted. Human Resources outlined requirements, while Administrative Services directed the contracting process and documentation.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because adopting an amendment to this contract for legal services is an organizational or administrative activity that 1 Legal services contracts, including, without limitation, the services of outside counsel, consultants and other experts needed for litigation, administrative or other legal proceedings. will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A: Sloan Sakai Yeung & Wong, LLP; Contract No. S22183280 Amendment No. 1 APPROVED BY:
Sandra Blanch, Human Resources Director