COUNCIL AGENDA: 05-10-2022
FILE:
ITEM:
22-663
2.7 T-33442.001.001.007/1915240_3
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Nora Frimann
City Attorney
SUBJECT: SEE BELOW DATE: April 28, 2022
SUBJECT: AMENDMENT TO AGREEMENT WITH RICHARDS, WATSON &
GERSHON FOR LEGAL SERVICES RELATED TO COMPLEX REAL
ESTATE DEVELOPMENT AND PLANNING
RECOMMENDATION
Adopt a resolution authorizing the City Attorney to negotiate and execute a Seventh Amendment to the Agreement with Richards, Watson & Gershon for legal services related to complex real estate development and planning, extending the term of the Agreement from June 30, 2022 to June 30, 2023, with no increase in the maximum amount of compensation.
OUTCOME
Execution of the amendment with Richards, Watson & Gershon (“RWG”) to extend the term through June 30, 2023 will allow the firm to continue to provide legal services related to complex real estate and planning projects in the City of San José (“City”).
BACKGROUND
On July 21, 2017, the City Attorney’s Office issued a Request for Qualifications (“RFQ”) for Real Estate Development Counsel, seeking one or more firms with expertise in complex real estate development to assist the City Attorney’s Office with the negotiation and drafting of an agreement for the sale or ground lease of City-owned property for the potential construction of a mixed-use, transit-oriented development, including office and research and development space in the Diridon Station Area. Three responses to the RFQ were received.
On December 4, 2017, the City entered into an agreement with RWG for legal services related to complex real estate development in the Diridon Station Area for a 36-month term expiring on December 3, 2020 in an amount not to exceed $50,000 (“Agreement”).
On December 3, 2018, the City and RWG entered into a First Amendment to the
HONORABLE MAYOR AND CITY COUNCIL
April 28, 2022
Subject: Amendment to Agreement with Richards, Watson & Gershon
T-33442.001.001.007/1915240_3
Agreement, increasing the maximum amount of compensation to $125,000. On March 25, 2019, the City and RWG entered into a Second Amendment to the Agreement, increasing the maximum amount of compensation to $175,000 and amending the scope of services to include legal services related to the negotiation, review, and drafting of real estate and planning related documents for City projects. On September 27, 2019, the City and RWG entered into a Third Amendment to the Agreement, increasing the maximum amount of compensation to $320,000 and amending the scope of services to include legal services related to the City’s purchase of real property in Coyote Valley.
On December 15, 2020, the City Council authorized the City Attorney to negotiate and execute a Fourth Amendment to the Agreement, increasing the maximum amount of compensation to $420,000 and extending the term through December 31, 2021. On May 25, 2021, the City Council authorized the City Attorney to negotiate and execute a Fifth Amendment to the Agreement increasing the maximum amount of compensation to $670,000. On November 10, 2021, the City and RWG entered into a Sixth Amendment to the Agreement, extending the term through June 30, 2022 with no increase in the maximum amount of compensation, in accordance with the City Attorney’s contract amendment authority under San José Municipal Code Section
4.04.055.
ANALYSIS
RWG was chosen to provide specialized legal services based on the firm’s expertise in complex real estate and planning laws. There is approximately $129,216 in unexpended funds under the Sixth Amendment of the Agreement. The purpose of the Seventh Amendment is to extend the term through June 30, 2023 to allow the firm to continue to provide legal services related to complex real estate and planning projects in the City. No additional funding will be added to the Agreement as the unexpended funds will roll over for next fiscal year.
CONCLUSION
To ensure the continued delivery of legal services in support of ongoing real estate and planning projects, staff recommends extending the term through June 30, 2023 with no increase in the maximum amount of compensation.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals.
HONORABLE MAYOR AND CITY COUNCIL
April 28, 2022
Subject: Amendment to Agreement with Richards, Watson & Gershon
T-33442.001.001.007/1915240_3
PUBLIC OUTREACH
This memorandum will be posted on the City’s website as part of the May 10, 2022 City Council Agenda.
COORDINATION
This item has been coordinated with the Office of Economic Development and the City Manager’s Budget Office.
COST SUMMARY/IMPLICATIONS
No additional funding is required for approval of the amendment.
CEQA
Not a Project; File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
NORA FRIMANN
City Attorney
By /s/ Johnny V. Phan
Johnny V. Phan
Chief Deputy City Attorney
For questions, please contact JOHNNY PHAN, CHIEF DEPUTY CITY ATTORNEY, at (408) 535-1900.