City Council
Report
City Council Meeting: March 22, 2022
Agenda Item: 3.D
1 of 3
To: Mayor and City Council
From: Joseph Lawrence, Interim City Attorney, City Attorney's Office, Administration Subject: Approval of First Modification of Lawyer-Client Retainer Agreement for Liebert Cassidy Whitmore for Personnel Related Legal Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to Contract No. 10461 (CCS) with Liebert Cassidy Whitmore (LCW), a California-based law firm, to extend the term of the agreement for one year and increase the compensation by $300,000, for personnel-related legal services for the entire city, managed by the City Attorney’s Office. This modification will result in an amended agreement providing for a six-year contract with a new total estimated amount not to exceed $2,175,000, with future year funding contingent on Council budget approval.
Summary
The City uses the services of outside, specialized legal counsel for assistance with employment and labor relations advice, litigation, and training, including but not limited to labor negotiations, ever-changing COVID-19 employment laws and regulations, employee disciplinary matters, Personnel Board hearings and other administrative proceedings, and personnel policies. Staff recommends that the City modify its agreement with Liebert Cassidy Whitmore (“LCW”) as the City is about to begin labor negotiations with most bargaining units in the City. Modifying the contract now will allow the City to maintain needed continuity and help the City to ensure that labor negotiations are not disrupted or negatively impacted by changing outside legal counsel during negotiations.
2 of 3
Discussion
In October 2016, the City issued a Request for Proposals (RFP) for labor and employment services for a government entity. Nine law firms submitted proposals. The proposals were reviewed, and three law firms were interviewed. The interviews were conducted by the City Attorney’s Office and Human Resources. As a result, staff recommended, and Council approved, an agreement with LCW as the City’s outside labor and employment legal counsel.
The City entered into a five-year contract not to exceed $1,875,000 beginning on August 3, 2017, and ending June 30, 2022. Through December 2021, the City has spent approximately $1,200,000, for an average over four and a half years of about $266,500 per year. Funds are charged to appropriate departments as services are rendered.
Given LCW’s institutional knowledge, upcoming labor negotiations, and pending litigation, the City Attorney’s Office believes that it would be more prudent, costeffective, and efficient to extend LCW’s contract for an additional year rather than initiating a new procurement process and entering into a new agreement with a new law firm at this time. Therefore, staff recommends approving a first modification to extend the existing contract for an additional one year ending June 30, 2023. During FY 2022- 2023, the City Attorney’s Office will conduct another RFP process for outside legal counsel to begin July 1, 2023. LCW has not increased billing rates to the City for the last two years. Under the first modification, the rates would increase approximately 6-7%, which remain below LCW’s current rates and are significantly lower than the majority of law firms that specialize in public sector labor and employment law. The increase in fiscal authority is due to pending and anticipated personnel proceedings and labor negotiations through June 30, 2023.
Past Council Actions
05/23/2017
(Attachment A)
Staff Report Requesting Authorization of LCW agreement
following RFP process
3 of 3
08/03/2017
(Attachment B)
LCW Contract
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the agreement with LCW by $300,000 for a total not to exceed of $2,175,000. These funds will be encumbered as needed and are charged to the appropriate departments as the services are rendered. Department budgets currently include funding for this work.
Contract Modification Request: LCW
Agreement # Current Authorized
Amount
Modified
Request Amount
FY 2022-23 Budget
Dept/Account #
Total Revised
Contract Amount
10461 $1,875,000 $300,000 Various $2,175,000
TOTAL $2,175,000
Prepared By: Bradley Michaud, Legal Operations Coordinator Approved Forwarded to Council
Attachments:
A. ExA-LCW 2017 Staff Report
B. ExB-LCW 2017 Contract
C. ExC-LCW First Modification
D. ExD-Oaks Initiative Disclosure Form
E. ExE-Living Wage Ordinance Certification