Report Prepared by: Craig J. Cornwell, City Attorney, City Attorney’s Department
Title
SUBJECT: Approval of Richards, Watson & Gershon Third Amendment and Best Best & Krieger LLP Fourth Amendment in a Total Amount not to Exceed $110,000.00
REPORT IN BRIEF
Considers the approval of Richards, Watson & Gershon Third Amendment and Best Best & Krieger LLP Fourth Amendment in a total amount not to exceed $110,000.00.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Third Amendment to an Agreement for Legal Services with Richards, Watson & Gershon to extend the term of the contract and for additional compensation in an amount not to exceed $60,000; and,
B. Approving a Fourth Amendment to an Agreement for Legal Services with Best Best & Krieger LLP for additional compensation in an amount not to exceed $50,000; and,
C. 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 2025-26 Adopted Budget.
DISCUSSION
The following amendments to the current outside legal counsel agreements are requested as follows:
Richards, Watson & Gershon Third Amendment Request
On February 20, 2024, the City entered into a Legal Services Agreement with Richards Watson & Gershon (“RWG”) 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 and RWG entered into a First Amendment to Agreement for additional funding in the amount of $70,000. This Amendment increased the not to exceed amount of the Agreement from $125,000 to $195,000.
On June 16, 2025, the City and RWG entered into a Second Amendment to Agreement for additional funding in the amount of $36,000. This Amendment increased the not to exceed amount of the Agreement from $195,000 to $231,000.
This allocation has been sufficient to cover legal services thus far. However, additional funding in the amount of $60,000 is necessary for continuing legal services in support of the City Attorney’s Office. This Third Amendment to Agreement will increase the not to exceed amount of the Agreement from $231,000 to $291.000.
The Agreement is set to expire on February 20, 2026. The City and RWG desire to extend the term of the Agreement through June 30, 2028.
Best Best & Krieger LLP’s Fourth Amendment Request
On May 5, 2022, the City entered into an Agreement for Legal Services (“Agreement”) with the law firm of Best Best & Krieger LLP (“BBK”) in the amount of $25,000 for ERMA covered claims and labor and employment matters pursuant to the City Manager’s contract authority.
On February 6, 2023, the City and BBK entered into a First Amendment to Agreement for additional funding in the amount of $55,000. This First Amendment increased the not to exceed amount of the Agreement from $25,000 to $80,000.
On April 15, 2024, the City and BBK entered into a Second Amendment to Agreement for additional funding in the amount of $10,000. This Second Amendment increased the not to exceed amount of the Agreement from $80,000 to $90,000.
On August 5, 2024, the City and BBK entered into a Third Amendment to Agreement for additional funding in the amount of $50,000. This Second Amendment increased the not to exceed amount of the Agreement from $90,000 to $140,000.
Additional funding in the amount of $50,000 is necessary to ensure that funds are available for this firm’s assistance to the City for ERMA covered claims and labor and employment matters. This Fourth Amendment will increase the not to exceed amount of the Agreement from $140,000 to $190,000.
IMPACT ON CITY RESOURCES
Funding for these services is available within the City Attorney’s current fiscal year operating budget.
ATTACHMENTS
1. Third Amendment for Richards, Watson & Gershon
2. Fourth Amendment for Best Best & Krieger LLP