Report Prepared by: Craig J. Cornwell, City Attorney, City Attorney’s Department
Title
SUBJECT: Approval of Hanson Bridgett, LLP Sixth Amendment, Richards, Watson & Gershon Second Amendment, and Wilke Fleury, LLP Fourth Amendment in a Total Amount not to Exceed $166,000
REPORT IN BRIEF
Considers approving the Hanson Bridgett, LLP Sixth Amendment, Richards Watson & Gershon Second Amendment, and Wilke Fleury, LLP Fourth Amendment in a total amount not to exceed $166,000.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Sixth Amendment to an Agreement for Professional Services with Hanson Bridgett LLP in an amount not to exceed $100,000, and exercise the second option to extend the Agreement; and,
B. Approving a Second Amendment to Legal Services Agreement with Richards, Watson & Gershon in an amount not to exceed $36,000; and,
C. Approving a Fourth Amendment to Legal Services Agreement with Wilke Fleury, LLP in an amount not to exceed $30,000; 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. 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 Sixth 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.
On March 3, 2025, the City entered into a Fifth Amendment to Agreement for $95,000 in additional compensation. This Fifth Amendment increased the not to exceed amount of the Agreement from $370,000 to 465,000.
This allocation has been sufficient to cover legal services thus far. However, additional funding in the amount of $100,000 is necessary to ensure that funds are available for this firm’s assistance to the City Attorney’s Office for Planning Commission advisory work. This Sixth Amendment will increase the not to exceed amount of the Agreement from $465,000 to $565,000.
The Agreement is due to expire on June 30, 2025. The City desires to exercise the second option to renew the term on the Agreement for one-year, extending the term until June 30, 2026.
Richards Watson & Gershon
On February 20, 2024, the City entered into a Legal Services Agreement with Richards Watson & Gershon to provide assistance to the City Attorney on general municipal law advisory and transactional matters in the amount of $125,000.
On April 15, 2024, the City entered into a First Amendment to Agreement for additional funding in the amount of $70,000. The First Amendment increased the not to exceed amount of the Agreement from $125,000 to $195,000.
This Second Amendment to Legal Services Agreement will increase the not to exceed amount of the Agreement from $195,000 to $231.000.
Wilke Fleury LLP’s Third Amendment Request
On January 12, 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 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 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.
On March 3, 2025, the City entered into a Third Amendment to Agreement for additional funding in the amount of $80,000. The Third Amendment increased the not to exceed amount of the Agreement from $87,000 to $167,000.
This matter requires an additional allocation to cover the legal fees to bring this matter to resolution. Staff is estimating $30,000 is necessary to cover the anticipated legal fees in this matter. This Fourth Amendment will increase the not to exceed amount of the Agreement from $167,000 to $197,000.
IMPACT ON CITY RESOURCES
Funding for these services is available within the City Attorney’s current fiscal year operating budget.
ATTACHMENTS
1. Sixth Amendment for Hanson Bridgett, LLP
2. Second Amendment for Richards, Watson & Gershon
3. Fourth Amendment for Wilke Fleury, LLP