COUNCIL AGENDA: 05/02/23
FILE:
ITEM:
23-637
2.9 T-33442.001.001.008/2014183
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Nora Frimann
City Attorney
SUBJECT: SEE BELOW DATE: April 20, 2023
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 an Eighth 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, 2023 to June 30, 2024, 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, 2024 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”).
Between December 3, 2018 and June 1, 2022, the City and RWG entered into seven amendments to the Agreement, extending the term through June 30, 2023, increasing the maximum amount of compensation to $670,000, and amending the scope of
HONORABLE MAYOR AND CITY COUNCIL
April 20, 2023
Subject: Amendment to Agreement with Richards, Watson & Gershon
T-33442.001.001.008/2014183
services to include legal services related to the negotiation, review, and drafting of real estate and planning related documents for City projects and legal services related to the City’s purchase of real property in Coyote Valley and the Google project.
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 $140,345 in unexpended funds under the Seventh Amendment to the Agreement. The purpose of the Eighth Amendment is to extend the term through June 30, 2024 to allow the firm to continue to provide on-call legal services related to complex real estate and planning projects in the City. No additional funding will be added to the Agreement as the remaining unexpended funds will roll over for the 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, 2024 with no increase in the maximum amount of compensation.
PUBLIC OUTREACH
This memorandum will be posted on the City’s website as part of the May 2, 2023 City Council Agenda.
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.