Title
Resolution to Approve and Authorize the City Manager to Execute Amendment No. 1 to a Consulting Services Agreement with Bertrand, Fox, Elliot, Osman & Wenzel for Legal Representation Associated with Tort Liability Claims and Litigation, increasing the contract by $500,000 with a new total not-to-exceed $1,000,000
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve Amendment No. 1 to a Legal Services Agreement with Bertrand, Fox, Elliot, Osman & Wenzel (BFEOW) to continue providing legal representation services associated with tort liability and tort claims litigation for the City through June 30, 2024.No action is needed by council to fund the amendment. The Self-Insurance Fund has enough budget for FY 2022-2023 to cover the amendment.
BACKGROUND
The City of San Leandro originally entered into a Legal Services Agreement with BFEOW on June 25, 2013 to provide contract tort litigation and claims services to the City. The original agreement was for $49,999. On June 21, 2021, the City entered into a new Agreement with BFEOW to provide legal services on tort claims and litigation on various issues for $500,000.00 and an end date of June 30, 2023. Since that time, the City has amended the contract with BFEOW three times totaling $1,885,000.
It is necessary to amend the contract with BFEOW to reflect the legal activities for the current fiscal year and to finish working on open claims and litigation. Sufficient funds are included in the current year budget to cover legal fees.
Analysis
The Bertrand, Fox, Elliot, Osman & Wenzel law firm has provided excellent service on assigned tort claims and litigation; the firm charges reasonable hourly rates for high quality service. Due to these successful outcomes on litigated matters, staff requests, with the City Attorney’s approval, the continued use of Bertrand, Fox, Elliot, Osman & Wenzel’s legal services for a variety of risk management issues, tort litigation, and claims.
The City will reach the contractual limit of $500,000 as set forth in the agreement and is set to expire June 30, 2023-and needs an amendment to conclude this fiscal year without service interruption. Therefore, staff requests approval of an Amendment No. 1 to the Agreement with BFEOW to utilize the firm’s services when approved by the City Attorney. Amendment #1 will authorize up to $500,000 of work in the current contract through Fiscal Year 2022-23.
Previous Actions
• 2014-083: Authorizing an agreement with BFEOW (NTE $50K)
• 2015-155: Amendment #1 to BFEOW agreement (NTE $285K)
• 2016-020: Amendment #2 to BFEOW agreement (NTE $500K)
• 2018-032: Amendment #3 to BFEOW agreement (NTE $1.1M)
• 2021-338: Authorizing an agreement with BFEOW (NTE $500K)
Fiscal Impacts
This Self-insurance fund amendment will cost $500,000, which requires no adjustment to the FY2021-2022 Adopted Budget, FY 2022-2023 has budget to cover the amendment.
Budget Authority
The Fiscal Year 2021-2022 Self-Insurance Fund operating budget for General Liability legal fees reflects an appropriation of $739,589 with a remaining balance of $172,000, which has sufficient funds to cover this contractual increase for legal services of tort claims and litigation for the remainder of this fiscal year.
For Fiscal Year 2022-2023, the Self-insurance fund (F689) has sufficient funds to cover the contract amendment.
ATTACHMENTS
A - Resolution BFEOW Amendment 1
B - Amendment BFEOW 1
PREPARED BY: Megan Stephenson, Interim Risk Manager