Title
Adopt a Resolution to Approve and Authorize the Mayor to Execute Amendment No. 1 to the Agreement with Redwood Public Law, LLP for the Provision of Legal Services, to Increase the Fiscal Year 2025-2026 Contract Amount by $434,789 for a Total Amount Not-to-Exceed $1,387,009
Staff report
SUMMARY
Legal services expenditures in Fiscal Year 2025-2026 (FY 2026) exceeded the authorized contract amount with Redwood Public Law, LLP. Staff recommend increasing the FY 2026 contract authority to reflect the actual cost of services provided. Staff identified factors contributing to the increased expenditures and have since implemented process improvements to strengthen invoice processing, expenditure monitoring, and contract oversight.
RECOMMENDATIONS
Staff recommend the City Council adopt the resolution to approve and authorize the Mayor to execute Amendment No. 1 to the agreement with Redwood Public Law, LLP for the provision of legal services, to increase the FY 2026 contract amount by $434,789 for a total amount not-to-exceed $1,387,009.
BACKGROUND
On March 4, 2024, the City Council adopted Resolution No. 2024-020, authorizing execution of an agreement with Redwood Public Law, LLP (“Agreement”) to provide general legal services to the City of San Leandro through December 31, 2029.
The Agreement authorized compensation in the amount of $940,000 in Fiscal Year 2024-2025 (FY 2025, Year 1), with compensation in subsequent years adjusted by the April percentage change in the Consumer Price Index for the San Francisco-Oakland-San Jose area, not less than 1% and no greater than 3.5%, rounded to the nearest $5.00, resulting in authorized compensation of $952,220 for FY 2026.
In FY 2026, the cost of legal services under the Agreement totaled $1,387,009, exceeding the authorized amount of $952,220 by $434,789. Accordingly, a contract amendment is necessary to increase the spending authority to cover the expenditures.
Analysis
Staff conducted an analysis to identify factors contributing to increased legal services expenditures in FY 2026, as well as circumstances that delayed identification of those expenditures. Based on this review, staff has implemented improvements to invoice processing and identified additional measures to strengthen expenditure monitoring and contract oversight.
Factors leading to increased demand for legal services
Staff identified a sustained increase in demand for legal services associated with the growing volume and complexity of routine municipal operations. Several indicators demonstrate this increased demand:
• City Council closed session meetings increased 68.75% from FY 2023 to FY 2026
• City Council agenda items increased 11% from FY 2025 to FY 2026
• Public Records Act requests increased 34% from FY 2025 to FY 2026
• Contracts and other agreements routed through DocuSign (25% increase from FY 2025 to FY 2026)
Collectively, these trends reflect increased City activity that requires legal review, consultation, or support, contributing to greater ongoing demand for legal services.
Legal Invoice Processing Improvements
As part of its review of FY26 legal expenditures and outstanding invoices, staff identified several opportunities to improve the City's invoice review, approval, and payment processes.
Prior Process (FY 2026 and earlier)
Under the prior process, Redwood Public Law (RPL) submitted invoices to the City Finance Department Accounts Payable (AP) division and the City Clerk's Office. AP distributed invoices to individual departments, which were responsible for coordinating internal review and approval before returning approved invoices to AP for payment. Invoices requiring revisions were routed back to RPL through AP and subsequently redistributed to departments for another round of review and approval.
Staff identified three primary areas for improvement:
• Delays in departmental review and approval: Inconsistent timelines for initiating and completing departmental reviews contributed to delays in invoice processing.
• Inefficiencies in revision coordination: Routing invoice revisions through AP created additional administrative steps and extended processing timelines.
• Limited centralized tracking and oversight: The absence of a centralized tracking and follow-up process made it difficult to monitor invoice status, identify delays, and ensure timely payment.
Revised Process
To address these issues, staff implemented a revised invoice processing procedure effective July 1, 2026 that establishes clearer responsibilities, streamlines coordination, and strengthens oversight. The revised process also aligns with the City’s new ERP system and implementation.
Under the revised process, RPL submits invoices directly to the City Clerk's Office, organized by department and subject matter. The City Clerk's Office enters the invoice for payment processing pending the distribution of invoices to the appropriate departments for review and approval. Departments coordinate directly with RPL to resolve invoice discrepancies or necessary revisions, reducing administrative steps and improving efficiency. Once approved, departments notify the City Clerk’s Office for final invoice payment processing.
A key component of the revised process is the establishment of a centralized invoice tracking spreadsheet, maintained by the City Clerk's Office. The spreadsheet captures key information throughout the invoice lifecycle, including invoice receipt dates, service periods, invoice numbers, departments, matters, distribution dates, revision activity, payment submission dates, and payment dates.
The City Clerk's Office will also monitor timely invoice submission and escalate invoices not submitted for payment within 30 days of receipt.
Collectively, these changes are intended to improve accountability, reduce processing delays, and provide greater visibility into outstanding invoices, supporting more timely payments and stronger oversight of legal expenditures.
Improvements for expenditure monitoring
In addition to improving invoice processing, staff identified opportunities to strengthen expenditure monitoring and contract oversight. These measures are intended to support earlier identification of spending trends and potential shortfalls in contract authority, allowing sufficient time to seek City Council approval for necessary contract amendments before authorized limits are exceeded.
To improve oversight and monitoring, staff have implemented the following measures:
• Monthly coordination meetings between Redwood Public Law, the City Clerk's Office, Finance, and the City Manager's Office to review legal services, expenditures, spending trends, and anticipated legal needs.
• Mid-year expenditure forecasting to assess projected legal costs, identify potential contract authority shortfalls, and initiate any necessary contract amendments before authorized limits are exceeded.
Together, these improvements are intended to establish a more proactive approach to managing legal expenditures, ensuring timely invoice processing, improving financial transparency, and strengthening oversight of the City's legal services contract.
Previous Actions
• On March 4, 2024, the City Council adopted Resolution No. 2024-020, authorizing execution of an agreement with Redwood Public Law, LLP (“Agreement”) to provide general legal services to the City of San Leandro through December 31, 2029.
Legal Analysis
The City Attorney has reviewed the resolution and proposed contract amendment and has agreed to the terms.
Financial Impacts
Sufficient funds are included in the City’s FY 2026 budget. This Council action will not impact fund balance because there are funds available in the FY 2026 budget.
ATTACHMENTS
A: Resolution to Approve and Authorize the Mayor to Execute Amendment No. 1 to the Agreement with Redwood Public Law, LLP for the Provision of Legal Services
B: Original Agreement between the City of San Leandro and Redwood Public Law, LLP
PREPARED BY: Sarah Bunting, City Clerk; Jessica Lobedan, Deputy City Manager;
Nicole Gonzales, Finance Director