Title
Staff Report for Legal Services Agreement Amendment No. 1 with Bertrand, Fox, Elliot, Osman & Wenzel for Legal Representation Associated with Tort Liability Claims and Litigation and Request for Appropriation of $500,000.00 from the Self-Insurance Fund Balance
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff requests that the City Council consider and approve a Legal Services Agreement Amendment No. 1 with Bertrand, Fox, Elliot, Osman & Wenzel to continue to provide legal representation services associated with tort liability and tort claims litigation for the City through June 30, 2018. Staff requests City Council approval to appropriate $500,000.00 from the Self-Insurance fund balance to the general liability division’s legal fees account.
BACKGROUND
The City of San Leandro originally entered into a Legal Services Agreement with Bertrand, Fox, and Elliot on June 25, 2013, to provide contract legal representation services to the City for the Mengel et al. v. City of San Leandro case. The original agreement was for a not to exceed amount of $49,999.00.
On November 3, 2014, the City entered into a new agreement with Bertrand, Fox, and Elliot to provide legal representation on tort claims and litigation presented to the City on various issues for a not to exceed of $100,000.00 and an end date of June 30, 2016.
Analysis
The City contracted with the law firm of Bertrand, Fox, Elliot, Osman & Wenzel for their proven success rate and experience representing public agencies in tort litigation. The Mengel and Woody litigation budget for defense costs was originally estimated to be less than $50,000.00, and the actual defense costs totaled $42,000.00. The firm has provided excellent service on other tort claims and litigation assigned to it.
Because of these successful outcomes, City staff requested, with the City Attorney’s approval, the continued use of Bertrand, Fox, Elliot, Osman & Wenzel legal services for a variety of risk management issues and claims. Currently, the law firm is handling ten City cases. Therefore, staff requests approval of an amended legal services agreement with Bertrand, Fox, Elliot, Osman & Wenzel to use their legal expertise on as needed basis when approved by the City Attorney.
Fiscal Impacts
The agreement amendment is for a not to exceed $500,000.00 through June 30, 2018.
For 2015-16, the Self-Insurance Fund General Liability division legal fees adopted budget is $400,000.00. At present, based on the current number of claims and litigated matters, the budget for legal fees is insufficient. Accordingly, funds should be transferred from the Self Insurance Fund balance to cover unbudgeted legal costs. Any balance remaining at fiscal year-end for legal services from Bertrand, Fox, Elliot, Osman & Wenzel will be carried over to the next fiscal year, 2016-17.
Budget Authority
The Self-Insurance Fund General Liability division legal fees adopted budget is $400,000.00 for fiscal year 2015-16. Staff requests Council approval to appropriate an additional $500,000.00 from the Self-Insurance fund balance to account number 689-19-004-5110 for fiscal year 2015-16.
ATTACHMENTS
Attachment to Resolution
- Amendment No. 1 to Legal Services Agreement for general liability claims and claims litigation
PREPARED BY: David Baum, Director of Finance, Finance Department