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HomeMy WebLinkAboutItem 20 - Approve Second Amendment with Burke, Williams & Sorensen City Attorney Office www.santa-ana.org/ca Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 7, 2021 TOPIC: Approve Second Amendment with Burke, Williams & Sorensen to Amend the Term and Compensation to Not Exceed $950,000 AGENDA TITLE: Approve a Second Amendment for Specialized Legal Services with Burke, Williams & Sorensen to Amend the Term to June 30, 2023 and Set Compensation in an Amount Not to Exceed $950,000 (General Fund) 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”) for litigation matters concerning the abatement of public nuisances, to amend the term of the agreement to terminate on June 30, 2023 and increase the compensation, in an amount not to exceed $950,000, subject to non-substantive changes approved by the City Manager and the City Attorney. DISCUSSION BWS was engaged by the City Council on March 4, 2020 to represent the City in specialized nuisance cases including the City’s lawsuit against the Orange County Association for Mental Health, doing business as Mental Health Association of Orange County (“MHA”), and BT Investment Properties, LLC. Sheppard Mullin, a large nationwide law firm, is representing MHA, pro bono. On March 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. On April 21, 2020, the City Council approved a First Amendment to the Agreement to increase the compensation for its agreement with BWS to $500,000. The law firm of Burke, Williams & Sorensen, LLP is a well-regarded, municipal law firm specializing in litigation and abatement of public nuisances. BWS was selected from a Approve Second Amendment with Burke, Williams & Sorensen to Amend the Term and Compensation to not exceed $950,000 December 7, 2021 Page 2 2 3 0 6 pool of several firms based on its deep 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 Attorney’s Office retained BWS based on the experience and skill of its counsel. Due to the complex, time-intensive, and rapidly evolving nature of the aforementioned litigation and the upcoming trial date of January 24, 2022, the second amendment amends the term from March 3, 2022 to June 30, 2023 and increases the compensation for a total of $950,000 (Exhibit 1). This amendment provides a realistic budget for outside counsel to vigorously prosecute the City’s action at trial, retain the necessary experts, and take all steps necessary to protect the health and safety of the City’s residents. The term extension encompasses the possibility of a trial continuance. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Specialized legal services during the term for this Agreement will be paid out of the General Non-Departmental fund contractual services (Account No. 01105015-62300). Future budget adjustments may be necessary to provide for future year costs (FY 22- 23). Fiscal Year Accounting Unit- Account # Accounting Unit, Account Description Amount FY 19-20 01105015-62300 Contractual Services-Professional $120,000 FY 20-21 01105015-62300 Contractual Services-Professional $280,000 FY 21-22 01105015-62300 Contractual Services-Professional $525,000 FY 22-23 01105015-62300 Contractual Services-Professional $25,000 EXHIBIT(S) 1. Second Amendment for Legal Services Agreement for Burke, Williams & Sorensen Submitted By: Sonia Carvalho, City Attorney Approved By: Kristine Ridge, City Manager #163027v5 SECOND AMENDMENT TO LEGAL SERVICES AGREEMENT WITH BURKE WILLIAMS & SORENSEN, LLP THIS SECOND AMENDMENT to the above-referenced agreement is entered into on December 7, 2021, 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 entered into a First Amendment A-2020-082 on April 21, 2020 to increase the compensation to $500,000. C. The Parties now wish to amend the Agreement to extend the term from March 3, 2022 until June 30, 2023, and to increase the amount of compensation from $500,000 to $950,000. The Parties therefore agree: 1. Section 6, TERM, shall be amended to extend the term of the Agreement from March 3, 2022 to June 30, 2023. 2. 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 $950,000, including any extension periods. 3. Except as modified by this Second Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect. [CONTINUED ON NEXT PAGE] #163027v5 IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the foregoing Agreement on the date and year first written above. ATTEST CITY OF SANTA ANA _______________________________ ______________________________ Daisy Gomez Kristine Ridge Clerk of the Council City Manager APPROVED AS TO FORM BURKE WILLIAMS & SORENSEN LLP Sonia R. Carvalho City Attorney By:___________________________ _______________________________ Sandra Schwarzmann John Welsh Senior Assistant City Attorney Managing Partner For