COUNCIL AGENDA: 06-20-2023
FILE:
ITEM:
23-897
2.7 2022045_2
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Nora Frimann
SUBJECT: SEE BELOW DATE: June 8, 2023
SUBJECT: AMENDMENT TO AGREEMENT WITH HANSON BRIDGETT LLP FOR
LEGAL SERVICES RELATED TO PRESERVATION OF BENEFIT PLAN
RETIREES ASSOCIATION, ET AL V. CITY OF SAN JOSE, ET AL
RECOMMENDATION
Adopt a resolution authorizing the City Attorney to negotiate and execute a Tenth Amendment to the agreement with Hanson Bridgett LLP for legal services related to Preservation of Benefit Plan Retirees Association, et al v. City of San Jose, et al, to increase the amount of compensation by $250,000, for a total amount of compensation not to exceed $2,550,000.
OUTCOME
Execution of the Tenth Amendment to the agreement with Hanson Bridgett LLP will allow this law firm to continue to provide legal services related to the appeals of plaintiffs in Preservation of Benefit Plan Retirees Association, et al v. City of San Jose, et al.
BACKGROUND
On December 11, 2017, the City Attorney executed an agreement with the law firm of Hanson Bridgett LLP to provide legal services pertaining to the case of Preservation of Benefit Plan Retirees Association, et al v. City of San Jose, et al, in a total amount not to exceed $175,000. The agreement has been amended since that time to increase the maximum amount of compensation to $2,300,000 and extend the term through June 30, 2025. The recommended action asks to increase the maximum amount of compensation to $2,550,000.
HONORABLE MAYOR AND CITY COUNCIL
June 8, 2023
Subject: AMENDMENT TO AGREEMENT WITH HANSON BRIDGETT LLP FOR LEGAL SERVICES RELATED TO PRESERVATION OF BENEFIT PLAN RETIREES ASSOCIATION, ET AL V. CITY OF
SAN JOSE, ET AL
2022045_2
ANALYSIS
Hanson Bridgett LLP was chosen to provide specialized legal services based on the firm’s expertise in tax law and fiduciary obligations of pension boards. The purpose of the Tenth Amendment is to increase the amount of compensation by $250,000 to allow Hanson Bridgett to continue to provide legal services pertaining to the case of Preservation of Benefit Plan Retirees Association, et al v. City of San Jose, et al. The City prevailed in the trial court and the case is now on appeal.
PUBLIC OUTREACH
This memorandum will be posted on the City’s website as part of the June 20, 2023 City Council Agenda.
COORDINATION
This item has been coordinated with the City Manager’s Budget Office.
COST SUMMARY/IMPLICATION
The actions recommended in this memorandum will increase the compensation amount of the contract with Hanson Bridgett LLP by $250,000. Of the total increase, it is anticipated that approximately $20,000 will be needed for FY 2022-2023. The additional cost for this contract amendment will be absorbed within the City Attorney’s Office’s Non-Personal/Equipment appropriation in the General Fund. If the full costs cannot be absorbed, the City Attorney’s Office will bring forward recommended budget actions for City Council approval as part of a future budget process.
BUDGET REFERENCE
The table below identifies the fund and appropriation proposed to fund the contract amendment recommended as part of this memorandum.
Fund
#
Appn.
#
Appn. Name Current
Appn
Amount.
for
Contract
2022-2023
Adopted
Operating Budget
Page
Last Budget
Action (Date,
Ord. No.)
001 0442 City Attorney’s Non-
Personal/Equipment
$2,248,353 $250,000* 376 02/14/2023,
Ord. No. 30883
HONORABLE MAYOR AND CITY COUNCIL
June 8, 2023
Subject: AMENDMENT TO AGREEMENT WITH HANSON BRIDGETT LLP FOR LEGAL SERVICES RELATED TO PRESERVATION OF BENEFIT PLAN RETIREES ASSOCIATION, ET AL V. CITY OF
SAN JOSE, ET AL
2022045_2
* Of the $250,000 increase, it is anticipated that approximately $20,000 will be expended in FY 2022-2023. The 2023-2024 Proposed Operating Budget was released on May 3, 2023 and is scheduled to be reviewed on June 13, 2023 and adopted on June 20, 2023 by the City Council.
CEQA
Not a Project; File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment.
/s/ Nora Frimann
NORA FRIMANN
City Attorney
For questions, please contact Nora Frimann, City Attorney, at (408) 535-1900.
cc: Jennifer Maguire