Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00543 March 15, 2022 Consent Item 02
Title: Supplemental Legal Services Agreement: Calvine & Elk Grove Florin, LLC. et al. v.
City of Sacramento et al. [Published for 10-Day Review 03/03/2022]
Location: District 5
Recommendation: Adopt a Resolution: 1) authorizing the City Manager or City Manager’s designee to increase the expenditure budget in the Citywide Litigation (I80310000) Project by $2.5 million with a transfer from available resources in the Risk Fund; and 2) authorizing the City Attorney or City Attorney’s designee to execute a supplemental contract with Murphy Austin in an amount not to exceed $2.5 million for litigation assistance in the lawsuit Calvine & Elk Grove Florin, LLC. et al. v. City of Sacramento et al.; Sacramento County Superior Court Case No. 34-2016-00200153 (Petrovich II).
Contact: Leslie Walker, Senior Deputy City Attorney, (916) 808-5346, [email protected]
, Office of the City Attorney
Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement
3-Resolution
File ID: 2022-00543 Consent Item 02
March 15, 2022
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City of Sacramento
Description/Analysis
Issue Detail: Staff is seeking Council approval to enter into a supplemental legal services agreement with Murphy Austin, in an amount not to exceed $2.5 million for expenses associated with the litigation entitled Calvine & Elk Grove Florin, LLC. et al. v. City of Sacramento et al.
Murphy Austin has been selected as the most qualified firm to strongly represent and defend the City’s interest in this lawsuit. It is recommended that the Council authorize the City Attorney to enter into a supplemental contract for legal services with Murphy Austin in an amount of $2.5 million, for a total contract amount not to exceed $4 million.
Policy Considerations: The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1 million shall be made available to the public at least ten (10) days prior to council action. This item was published for 10-day review on March 3, 2022, in compliance with the City Code.
Economic Impacts: Not applicable.
Environmental Considerations: Contracting for outside legal services is an administrative activity that will not result in direct or indirect physical changes in the environment and is not a project subject to CEQA review. CEQA Guidelines section 15378 (b) (5).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Murphy Austin possesses the experience, skills, and resources to defend the City in the case of Calvine & Elk Grove Florin, LLC. et al. v. City of Sacramento et al.
Financial Considerations: The Citywide Litigation Project (I80310000) does not have adequate resources to cover the costs associated with this litigation. Given the nature of the litigation this is an eligible expenditure for the Risk Fund (Fund 6502). A transfer of $2.5 million from available resources in Fund 6502 to I80310000 will provide the necessary funding.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2022-
Adopted by Sacramento City Council
Budgetary Adjustment and Contract with Murphy Austin for Calvine & Elk Grove Florin, LLC et al. v. City of Sacramento et al.
BACKGROUND:
A. On September 12, 2016, Calvine & Elk Grove-Florin, LLC, Paul Petrovich, PDC Construction Company, Inc., and Petrovich Development Company, LLC filed a complaint for damages against the City. The complaint alleges the plaintiffs suffered damages as a result of the City Council 2015 denial of a Conditional Use Permit for a fuel station in Curtis Park Village. (Calvine & Elk Grove-Florin, LLC et al. v. City of Sacramento, et al.), Sacramento County Superior Court, Case Number 34-2016- 00200153.)
B. The City selected Murphy Austin Adams Schoenfeld LLP to defend the City in Calvine & Elk Grove-Florin et al. v. City of Sacramento et al. as the firm most qualified to defend the City in the lawsuit. Murphy Austin preliminarily estimated that the cost to defend the lawsuit was One Million Five Hundred Thousand Dollars ($1.5 million). Murphy Austin now requests a Two Million Five Hundred Thousand Dollar ($2.5 million) increase to defend the case, through trial, including retention of experts.
C. The Citywide Litigation Project (I80310000) does not have adequate resources to cover the costs associated with this litigation. Given the nature of the litigation this is an eligible expenditure for the Risk Fund (Fund 6502).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The expenditure budget in I80310000 shall be increased by $2.5 million from available resources in the Risk Fund (Fund 6502).
Section 2. The City Attorney or City Attorney’s designee is authorized to execute Supplemental Agreement (attached to this resolution as Exhibit A) with Murphy Austin Adams Schoenfeld LLP for $2.5 million, for a total contract amount of $4 million for litigation assistance with the Calvine & Elk Grove-Florin et al. v. City of Sacramento et al.
Table of Contents:
Exhibit A – Supplemental Agreement