City of Sacramento
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01549 9/13/2022 Consent Item 06.
Approval of Supplemental Contracts for the Workers’ Compensation Legal Services File ID: 2022-01549
Location: Citywide
Recommendation: Pass a Motion authorizing the City Attorney, or the City Attorney’s designee, to execute Supplemental Contracts for Workers’ Compensation legal services, each for one year and to increase the not-to-exceed amount for each by the following amounts: Hanna, Brophy, MacLean, McAleer and Jensen, LLP $119,000; Laughlin, Falbo, Levy and Moresi, LLP $40,260; Lenahan, Lee, Slater, Pearse and Majernik, LLP $251,370; Twohy, Darelle and Frye $204,700; Cuneo, Black, Ward and Missler, a Law Corporation $310,500.
Contact: Patrick Flaherty, Risk Manager, (916) 808-8587, [email protected], Human Resources Department
Presenter: None.
Attachments:
1-Description/Analysis
2-Agreement 2018-1281-2
3-Agreement 2018-1286-2
4-Agreement 2018-1287-2
5-Agreement 2018-1288-2
6-Agreement 2018-1293-2
Description/Analysis
Issue Detail: Workers’ compensation defense firms interested in working with the City are invited to submit an application to the City Attorney’s Office for review. The City Attorney’s Office reviews each firm’s application and works with the Workers’ Compensation unit to select a panel of firms qualified to provide workers’ compensation legal services to the City.
On August 28, 2018, Council Passed Motion No. 2018-0289 awarding contracts for Workers’ Compensation Legal Services as part of the WORKERS' COMPENSATION MASTER LEGAL SERVICES AGREEMENT. Ten contracts were executed on August 31, 2018, each for a period of three years with the option of two one-year extensions.
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File ID: 2022-01549 9/13/2022 Consent Item 06.
In 2021, the City exercised its first option for one-year renewals for seven of the contracts, each through 9/13/2022.
The City now seeks to exercise the second authorized one-year extension with five of the firms.
Additionally, due to much greater than expected need for these services over the last year and continued increase for services in the coming year, the City also seeks to increase the not-to-exceed amount on each contract as indicated below to retroactively cover expenditures in the past year, as well as to cover anticipated costs through the full term of these contracts, which is September 13, 2023.
· Contract 2018-1281 with Twohy, Darneille and Frye
Original Contract Amount: $285,000
Increase: $204,700
New Contract Amount: $489,700
· Contract 2018-1286 with Hanna, Brophy, MacLean, McAleer & Jensen, LLP Original Contract Amount: $450,000
Increase: $119,000
New Contract Amount: $569,000
· Contract 2018-1287 with Laughlin, Falbo, Levy and Moresi, LLP Original Contract Amount: $210,000
Increase: $40,260
New Contract Amount: $250,260
· Contract 2018-1288 with Lenahan, Lee, Slater, Pearse and Majernik, LLP Original Contract Amount: $600,000
Increase: $251,370
New Contract Amount: $851,370
· Contract 2018-1293 with Cuneo, Black, Ward and Missler, ALC Original Contract Amount: $600,000
Increase: $310,500
New Contract Amount: $910,500
For each contract, the additional NTE exceeds the 10% threshold for increases permitted without Council approval. To maintain the essential Workers’ Compensation Legal Services, a total $925,830 is needed to cover costs for essential services through the term of contracts.
Policy Considerations: Pursuant to section 3.56.290 of the City Code supplemental contracts of at least $250,000, but less than $1,000,000 that exceed 10% of the original contract price must be approved by Council.
Economic Impacts: None.
Environmental Considerations:
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File ID: 2022-01549 9/13/2022 Consent Item 06.
California Environmental Quality Act (CEQA): This report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b) (3) and 15378(b)(2).]
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Approval of this action will allow continuance of essential Workers’ Compensation legal services.
Financial Considerations: This amount is budgeted in the Workers’ Compensation Fund, 6504, and the corresponding expenditure budgets are established, subject to funding through the annual budget process for the duration of the contract.
Local Business Enterprise (LBE): Not applicable.
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