City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Attorney
Meeting Date: March 16, 2026
Report #:2602-5921
TITLE
Authorization to Fully Encumber Legal Services Contract S26195211 with Atkinson Andelson Loya Ruud & Romo For a Total Not- to-Exceed Amount of $255,000; CEQA Status – Not a Project.
RECOMMENDATION
Authorize the City Attorney or designee to fully encumber the contract amount of $255,000 for claim defense services with the law firm of Atkinson Andelson Loya Ruud & Romo (Contract S26195211).
BACKGROUND
In May 2025, the City entered into an agreement (S26195211) with Atkinson Andelson Loya Ruud & Romo (AALRR) for a term of three-years in an amount not-to-exceed $255,000 to defense services in the matter of Figueroa, et al. v. City of Palo Alto, et al.. The case is currently on appeal before the Sixth District Court of Appeal (Ferreira, et al. v. City of Palo Alto, et al., Case No. H052577).
The law firm of Liebert Cassidy Whitmore defended the City in the trial court (Santa Clara County Superior Court Case No. 21-CV-383740), where the City prevailed on a summary judgment motion. The lead attorney from Liebert Cassidy Whitmore retired from practice, and the City retained AALRR to defend the case on appeal.
ANALYSIS
AALRR is a law firm representing cities in a variety of areas, with an emphasis in employment and labor matters. In May 2025, the City entered into an agreement (S26195211) with AALRR for a term of three-years in an amount not-to-exceed $255,000 for defense services in Santa Clara County Superior Court Case No. 21-CV-383740 Figueroa, et al. v. City of Palo Alto, et al..
While that agreement was within the City Attorney’s contract award authority, Council approval is required where the contract expenditures for the first year exceed $85,000, or for subsequent year, $85,000 plus any unexpended monies carried forward from a prior year.
Litigation defense is continuing in this matter and staff now seeks authority to encumber the full not to exceed amount of the contract. To date, the City has spent $84,171.17 to AALRR for their work on this case, including filing the opposition to Plaintiffs' opening brief and preparing for the oral argument before the Sixth Appellate District scheduled for March 5, 2026. If the appeal is successful, the case will be remanded to the trial court for further proceedings.
FISCAL/RESOURCE IMPACT
This action does not require additional budgetary authority as it can be accommodated within existing funding allocated to the City Attorney’s Office as part of the FY 2026 Adopted Operating Budget.
STAKEHOLDER ENGAGEMENT
The City Attorney‘s Office works closely with the City Manager and department personnel on government claims matters.
ENVIRONMENTAL REVIEW
Authorization to encumber funds under an existing legal services contract is not a project as defined by the California Environmental Quality Act (CEQA) because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines Section 15378(b)(4).
ATTACHMENTS
None
APPROVED BY:
Caio Arellano, Interim City Attorney