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HomeMy WebLinkAbout25K - AMENDMENT WITH BURKE WILLIAMS & SORENSENREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 21, 2020 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ❑ As Recommended APPROVE AN AMENDMENT TO THE ElAmended ❑ OOrrdinance on 111 Reading AGREEMENT WITH BURKE, WILLIAMS & ❑ Ordinance on 2ntl Reading SORENSEN FOR SPECIALIZED LEGAL ❑ Implementing Resolution SERVICES IN AN AMOUNT NOT TO ❑ Set Public Hearing For_ EXCEED $500,000 (GENERAL FUND) CONTINUED TO /s/Kristine CITY MANAGER �1��►U1�1:3q:7 RECOMMENDED ACTION Authorize the City Manager to execute an amendment to the legal services agreement with the law firm of Burke, Williams & Sorensen, LLP ("BWS") to increase the agreement from $50,000 to $500,000 for litigation matters concerning the abatement of public nuisances for a two-year term with an optional one-year extension, subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION On January 13, 2020, the City of Santa Ana ("City") filed a lawsuit in Orange County Superior Court, naming as defendants the Orange County Association for Mental Health, doing business as Mental Health Association of Orange County ("MHA"), and BT Investment Properties, LLC, which is the owner of the property in question. By this action, the City is seeking to address the negative impacts to the public health, safety and welfare created by the operation of the Homeless Multi - Service Center by MHA. The City also seeks that the Homeless Multi -Service Center operated by MHA comply with the City's zoning code. Sheppard Mullin, a large nationwide law firm, is representing MHA, pro bono. On Mach 12, 2020, MHA filed an answer to the City's complaint and a cross -complaint for declaratory and injunctive relief. On April 7, 2020, the City was served with a Motion to Intervene by Disability Rights California on behalf of three of their clients that allege they would be negatively affected if MHA were closed as a result of the City's lawsuit. These filings show the difficulty and complexity of the issues involved and the need for outside resources. The law firm of Burke, Williams & Sorensen, LLP (BWS) is a well -regarded, municipal law firm specializing in litigation and abatement of public nuisances. BWS was selected from a pool of several firms based on its resources, expertise, and understanding of the pertinent legal and factual issues. BWS has more than 100 attorneys and 10 offices in California. The firm specializes in municipal law with a particular emphasis on litigation and abatement of public nuisances. The City #35393v2 25K-1 Amendment to Legal Services Agreement — Burke, Williams & Sorensen April 21, 2020 Page 2 Attorney's Office has recommended the retention of BWS based on the experience and skill of its counsel. The City entered into Agreement #N-2020-065 with BWS on March 4, 2020, to serve as special legal counsel to represent the City in the following matter: City of Santa Ana v. OC Association for Mental Health, et al., Orange County Superior Court Case No. 30-2020-01124174-CU-MC-CJC. The Agreement is for a two-year term from March 4, 2020 through March 3, 2022 and has a total not -to -exceed amount of $50,000. The Agreement is current and in effect. Due to the complex and rapidly evolving nature of the aforementioned litigation, the total amount of the proposed amendment increases the total amount to be expended under the Agreement from $50,000 to $500,000 (Exhibit 1). This amendment provides a realistic budget for outside counsel to vigorously prosecute the City's action and take all steps necessary to protect the health and safety of the City's residents. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal No. 5, Objective 4, to support neighborhood vitality and livability. FISCAL IMPACT Specialized legal services during the term for this Agreement will be paid out of the City Manager Enforcement Services (Account No. 01203010-62300) and General Non -Departmental contractual services (Account No. 01105015-62300) funds. Future budget adjustments may be necessary to provide for future year costs (Fiscal Years 20-21 through Fiscal Years 2021-22). Fiscal Year Accounting Unit- Account # Accounting Unit, Account Description Amount FY 19-20 01203010-62300 Contractual Services -Professional $120,000 FY 20-21 01105015-62300 Contractual Services -Professional $280,000 FY 21-22 01105015-62300 Contractual Services -Professional $100,000 Exhibit: 1. First Amendment for Legal Services Agreement for Burke, Williams & Sorensen 25K-2 FIRST AMENDMENT TO LEGAL SERVICES AGREEMENT WITH BURKE WILLIAMS & SORENSEN, L.LP THIS FIRST AMENDMENT to the above -referenced agreement is entered into on April 21, 2020, by and between Burke Williams & Sorensen, LLP ("Attorneys"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), collectively referred to as the "Parties". RECITALS A. The Parties entered into Agreement No. N-2020-065, dated March 4, 2020, by which Attorneys agreed to provide legal services to the City ("Agreement"). The original term of the Agreement was for a two-year term until March 3, 2022, with an option to extend the term of the Agreement for up to one (1) year. The Agreement is current and in effect. B. The Parties now wish to amend the Agreement and increase the amount of compensation. The Parties therefore agree: 1. Section 2.b., Compensation for Services Rendered, is amended to read as follows: The total sum to be expended under this Agreement shall not exceed $500,000, including any extension periods. 2. Except as modified by this First Amendment, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST Daisy Gomez Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho City Attorney By:- San a chwa amr Senior Assistant City Attorney CITY OF SANTA ANA Kristine Ridge City Manager BURKE WILLIAMS & SORENSEN LLP 434657v2 25K-3