City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00777 4/30/2024 Consent Item 23.
Budgetary Adjustment and Supplement to Contract 2021-0758 for Legal Services File ID: 2024-00777
Location: Citywide
Recommendation: Pass a Resolution 1) authorizing the City Manager or the City Manager’s designee to increase the expenditure budget for the Accelerated Water Meter Program (Z14010000) by transferring $2,507,483 (Water Fund, Fund 6005) from available fund balance in the DOU Fund; 2) resetting the City Manager’s administrative authority for transfers from available fund balance of the DOU Water Fund (Fund 6005); and 3) amending the legal services agreement with Murphy Austin Adams Schoenfeld, LLP by $2,507,483 and authorizing the City Attorney to execute a supplemental contract with Murphy Austin Adams Schoenfeld, LLP in an amount not-to-exceed $4,720,833 for litigation assistance.
Contact: Brett Witter, Assistant City Attorney, (916) 808-5346 [email protected], Office of the City Attorney Presenter: None.
Attachments:
1-Description/Analysis
2-Supplemental Agreement-2021-0758-01
3-Resolution
Description/Analysis
Issue Detail: Staff is seeking Council approval to execute a $2,507,483 supplement to the current legal services agreement with Murphy Austin Adams Schoenfeld, LLP, for a total amount not to exceed $4,720,833 for expenses associated with the litigation entitled City of Sacramento v. A.
Teichert & Son, Inc. This supplemental contract is intended to capture additional and necessary legal services regarding the trial of this matter, which is scheduled to begin in January 2025, including but not limited to: defending against Teichert’s cross-complaint, increased number of fact and expert depositions, retention of additional experts, and costs associated with preparing for and attending trial which is now anticipated to last 60 calendar days.
Policy Considerations: This funding is required to continue the representation of the City in this litigation, initiated by the City against Teichert Construction, and assisted by outside counsel Murphy Austin Adams Schoenfeld, LLP.
Economic Impacts: Not applicable.
File ID: 2024-00777 4/30/2024 Consent Item 23.
Environmental Considerations:
California Environmental Quality Act (CEQA): 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: A lawsuit was filed by the City of Sacramento that required the assistance of outside counsel.
Financial Considerations: There are sufficient funds within the available fund balance of the DOU Water Fund (Fund 6005) to complete the transfer of funds in the amount of $2,507,483 to the Accelerated Water Meter Program (Z14010000).
Local Business Enterprise (LBE): Murphy Austin Adams Schoenfeld, LLP is an LBE.
SUPPLEMENTAL AGREEMENT
Project Title and Job Number: Legal Services Agreement/AWMP Trial Date:
Purchase Order #: Supplemental Agreement No.: 1
The City of Sacramento ("City") and Murohv Austin Adams Schoenfeld. LLP ("Contractor"), as parties to that certain Legal Services Agreement designated as Agreement Number 2021-0758 , including any and all prior supplemental agreements modifying the agreement (the agreement and supplemental agreements are hereafter collectively referred to as the "Agreement"), hereby supplement and modify the Agreement as follows:
1. The scope of Services specified in Exhibit A of the Agreement is amended as follows:
The original contract included litigation services to represent the City in the prosecution of its claims arising out of A.
Teichert & Son, Inc. dba Teichert Waterwork Services and/or Teichert Construction's (Teichert) work on the Accelerated Water Meter Program through trial on the merits, including the retention of experts. This supplemental contract is intended to capture additional necessary legal services regarding trial of this matter, which is scheduled to being in January 2025, including but not limited to: defending against Teichert's cross-complaint, increased number of fact and expert depositions, retention of additional experts, and costs associated with preparing for and attending trial which is now anticipated to last 60 calendar days.
2. The term of this agreement Is amended as follows:
There is no change in the term of the agreement.
3. In consideration of the additional and/or revised services described in section 1 and 2, above, the maximum not-to- exceed amount that is specified in Exhibit Bofthe Agreement for payment of Contractor's fees and expenses, is increased by $2,507,483, and the Agreement's maximum not-to-exceed amount Is amended as follows:
Agreement's original not-to-exceed amount: $2.213.350.00 Net change by previous supplemental agreements: Sq.qo
Not-to-exceed amount prior to this supplemental agreement: $2.213,350.00 Increase by this supplemental agreement: $2.507.483.00
New not-to exceed amount including all supplemental agreements: $4.720.833.00
4. Contractor agrees that the amount of increase or decrease In the not-to-exceed amount specified in section 2, above, shall constitute full compensation for the additional and/or revised services specified in section 1, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised services, including costs associated with any changes and/or delays in work schedules or in the performance of other services or work by Contractor.
5. Contractor warrants and represents that the person or persons executing this supplemental agreement on behalf of Contractor has or have been duly authorized by Contractor to sign this supplemental agreement and bind Contractor to the terms hereof.
6. Except as specifically revised herein, all terms and conditions of the Agreement shall remain In full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Agreement, as supplemented and modified by this supplemental agreement.
Approval Recommended By: Approved As To Form By:
Brett M. Witter, Assistant City Attorney Katherine Underwood, Senior Deputy City Attorney
Approved by Murphy Austin Adams Schoenfeld, LLP:
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Scott Alexartlijr IMar 14.;u;4 18:37 POTl
J. Scott Alexander, Partner
SUPPLEMENTAL AGREEMENT
Ap.proved by City of Sacramento: Attested To By:
City Attorney Sacramento City Clerk
RESOLUTION NO.
Adopted by the Sacramento City Council
BUDGETARY ADJUSTMENTS AND SUPPLEMENT TO CONTRACT FOR LEGAL SERVICES (Accelerated Water Meter Program (AWMP) Trial) (Z14010000)
BACKGROUND
A. Staff is seeking Council approval to execute a $2,507,483 supplement to the current legal services agreement with Murphy Austin, for a total amount not to exceed $4,720,833 for expenses associated with the litigation entitled City of Sacramento v. A. Teichert & Son, Inc. (Action)
B. This amendment is necessary to continue outside counsel representation in the Action. This supplemental contract is intended to capture additional and necessary legal services regarding trial of this matter, which is scheduled to being in January 2025, including but not limited to: defending against Teichert’s cross-complaint, increased number of fact and expert depositions, retention of additional experts, and costs associated with preparing for and attending trial which is now anticipated to last 60 calendar days.
C. The budgetary adjustment is necessary to fund the supplement in the amount of $2,507,483 (Water Fund, Fund 6005).
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to increase the expenditure budget for the Accelerated Water Meter Program (Z14010000) by transferring $2,507,483 (Water Fund, Fund 6005) from the available fund balance in the DOU Fund.
Section 2. The administrative authority for the Water Fund (Fund 6005) is reset.
Section 3. The City Attorney or the City Attorney’s designee is authorized to execute Supplemental Agreement No. 1 to contract number 2021-0758 with Murphy Austin, for a new not-to-exceed amount of $4,720,833.