Report Prepared by: Craig J. Cornwell, City Attorney, City Attorney’s Department
Title
SUBJECT: Approval of the Fifth Amendment with Hanson Bridgett, LLP, the Third Amendment with Wilke Fleury, LLP, and the Second Amendment with Prentice Long, PC for a Total Amount not to Exceed $235,000
REPORT IN BRIEF
Considers approving the Fifth Amendment with Hanson Bridgett, LLP, the Third Amendment with Wilke Fleury, LLP, and the Second Amendment with Prentice Long, PC for a total amount not to exceed $235,000.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Fifth Amendment to an Agreement for Professional Services with Hanson Bridgett LLP in an amount not to exceed $95,000; and,
B. Approving a Third Amendment to an Agreement with Wilke Fleury, LLP in an amount not to exceed $80,000; and,
C. Approving a First Amendment to a Legal Services Agreement with Prentice Long, PC in an amount not to exceed $60,000; and,
D. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than as recommended by staff; or,
3. Deny; or,
4. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
The Office of the City Attorney is responsible for representing the City of Merced in all legal actions involving the City unless the City Council determines contracting with a specialized law firm is prudent. Currently, the City Attorney’s Office has two out of three attorney positions vacant, leaving the City Attorney to handle all matters requested of his office. The previous and current recruitments for the two attorney positions have been unsuccessful thus far. Up to now these two vacancies have created salary savings of approximately $325,000 for this fiscal year 2024/2025. This salary savings is being used to increase the funding to the current outside legal counsel agreements. These firms provide valuable assistance to the understaffed City Attorney’s Office.
The following amendments to the current outside legal counsel agreements are requested as follows:
Hanson Bridgett’s Fifth Amendment Request
On July 3, 2023, the City entered into an Agreement for Professional Services (“Agreement”) with the law firm of Hanson Bridgett, LLP for legal services in support of the City Attorney’s Department. The initial budget allocation was $36,000.
On September 18, 2023, the City entered into a First Amendment to Agreement for additional funding in the amount of $64,000. This First Amendment increased the not to exceed amount of the Agreement from $36,000 to $100,000.
On March 19, 2024, the City entered into a Second Amendment to Agreement for additional funding in the amount of $20,000. This Second Amendment increased the not to exceed amount of the Agreement from $100,000 to $120,000.
On April 15, 2024, the City entered into a Third Amendment to Agreement to exercise the first option to renew the term of the Agreement for one-year and for additional funding in the amount of $150,000. This Third Amendment increased the not to exceed amount of the Agreement from $120,000 to $270,000.
On October 17, 2024, the City entered into a Fourth Amendment to Agreement for $100,000 in additional compensation funded by the Police Department to cover the rising Pitchess defense costs. This Fourth Amendment increased the not to exceed amount of the Agreement from $270,000 to $370,000.
This allocation has been sufficient to cover legal services thus far. However, additional funding in the amount of $95,000 is necessary to ensure that funds are available for this firm’s assistance to the City Attorney’s Office for Pitchess Motions, Planning Commission advisory work, and Personnel Board appeal hearings. This Fifth Amendment will increase the not to exceed amount of the Agreement from $370,000 to $465,000.
Wilke Fleury LLP’s Third Amendment Request
On January 10, 2023, the City entered into an Agreement for Legal Services with Wilke Fleury, LLP to assist the City with a Transient Occupancy Tax (TOT) collection matter. A TOT, also commonly known as “bed tax”, is authorized under California State Revenue and Taxation Code Section 7280 and is charged to any person who occupies a room at a hotel, motel, inn, etc. for a period of less than thirty (30) consecutive calendar days.
On March 27, 2024, the City entered into a First Amendment to Legal Services Agreement for additional funding in the amount of $25,000. The First Amendment increased the not to exceed amount of the Agreement from $36,000 to $61,000.
On April 15, 2024, the City entered into a Second Amendment to Legal Services Agreement for additional funding in the amount of $26,000. The Second Amendment increased the not to exceed amount of the Agreement from $61,000 to $87,000.
This matter requires an additional allocation to cover the legal fees to bring this matter to resolution. Staff is estimating $80,000 is necessary to cover the anticipated legal fees in this matter. This Third Amendment will increase the not to exceed amount of the Agreement from $87,000 to $167,000.
Prentice Long, PC’s Second Amendment Request
On February 20, 2024, the City entered into a Legal Services Agreement with Prentice Long, PC to provide assistance to the City Attorney on code enforcement and other legal matters in the amount of $75,000.
On April 15, 2024, the City entered into a First Amendment to Legal Services Agreement for additional funding in the amount of $40,000. The First Amendment increased the not to exceed amount of the Agreement from $75,000 to $115,000.
This Second Amendment to Legal Services Agreement will increase the not to exceed amount of the Agreement from $115,000 to $175,000.
IMPACT ON CITY RESOURCES
Funding for these services is available within the City Attorney’s current fiscal year operating budget.
ATTACHMENTS
1. Fifth Amendment for Hanson Bridgett, LLP
2. Third Amendment for Wilke Fleury, LLP
3. Second Amendment for Prentice Long, PC