Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No. 3 for $930,000 to the Legal Services Agreement Between the City Of San Leandro And Castillo, Moriarty, Tran & Robinson for Tort Litigation Services Already Provided and to be Provided in Fiscal Year 2024-2025
Staffreport
COUNCIL PRIORITY
• Fiscal Sustainability and Transparency
SUMMARY
The Resolution before City Council sets forth amendment No. 3 to the Tort Litigation Services Agreement with Castillo, Moriarty, Tran & Robinson (CMTR) law firm for past due and continuing representation of the City of San Leandro in tort litigation matters.
RECOMMENDATIONS
City staff recommends that the City Council adopt a resolution to approve Amendment No. 3 to the Tort Litigation Services Agreement between the City of San Leandro and Castillo, Moriarty, Tran & Robinson for $930,700. This amendment will provide for payment of past due fees and costs, and future fees and costs for the remainder of the 2024-2024 fiscal year.
BACKGROUND
Since December 1, 2022 Castillo, Moriarty, Tran & Robinson have served and continue to serve as tort litigation counsel for the City of San Leandro and its employees named in any action in tort litigation matters. Legal defense in civil litigation services are provided at an hourly rate of $260 Partner; $210 Associate; and $95 Paralegal. These rates for tort litigation services are highly competitive with other Bay Area law firms, and in line with the City’s excess insurance carrier, California Joint Powers Risk Management Agency (CJPRMA), hourly rate recommendations. CJPRMA also recommended and continues to support the City’s choice to use CMTR as tort litigation defense counsel.
The Tort Litigation Services Agreement also provides that upon the City of San Leandro’s request, and in coordination with the City Attorney’s Office, counsel shall advise City staff, including the City of San Leandro Police Department, on necessary policy changes, revisions, and legal implications and provide officers with training to limit civil liability and future claims. Finally, CMTR is also representing the City on a specialized writ matter before the California First District Court of Appeal that should conclude this fiscal year.
Analysis
Since December 1, 2022, the City of San Leandro has spent $1,475,977 on CMTR’s tort litigation defense and costs.
CMTR is a law firm formed from attorneys who had previous Legal Services Agreements with the City when they were at their previous tort litigation law firms, Bertrand, Fox, Elliot, Osman & Wenzel (BFEOW), and Allen, Glaessner, Hazelwood & Werth (AGHW). These attorneys have historically provided excellent services and expertise in tort liability claims and litigation since 2012-2013. Due to successful outcomes on litigated matters, the recommendation of the City’s excess insurance carrier CJPRMA, and historical knowledge of City staff and policies, City staff requests, with the City Attorney’s concurrence, the continued use of attorneys from CMTR on tort litigation matters for the remainder of this fiscal year.
The proposed third amendment to the CMTR contract is for $930,00; which will authorize a new not to exceed limit to the contract of $2,406,700. Additionally, staff recommends Council approve the City Manager to authorize contract amendments up to 10% of the total contract amount or $100,000. This authority would allow the City Manager and Risk Management to adjust contractual spending limits to an uncertain risk landscape during this next budget cycle.
Previous Actions
BFEOW
• 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)
• 2022-301: Amendment #1 to BFEOW agreement (NTE $500K)
AGHW
• 2022-015: Authorizing an agreement with AGHW (NTE $250k)
CMTR
• 2022-657: Authorizing an agreement with CMTR (NTE $500k)
• 2023-301: Authorizing Amendment No. 1 with CMTR (NTE $1,000,000)
• 2023-580: Authorizing Amendment No. 2 with CMTR (NTE $1,450,000)
• 2024-366: Authorizing Amendment No. 3 with CMTR (NTE $2,380,000)
Legal Analysis
City Attorney approves as to form this amendment to the current legal services agreement.
Financial Impacts
Sufficient funds are included in the fiscal year 2024-2025 Self-Insurance Fund budget in account 689-19-004-5110 to cover the costs for tort defense legal services and the contract amendment.
1. This Council action will not impact fund balance because there are funds available in the FY2023-2024 and FY2024-2025 adopted budget.
ATTACHMENT
Attachment A: Resolution (Legal Services Agreement Amendment No. 3 with CMTR)
PREPARED BY: Megan Stephenson, Risk Manager, City Manager’s Office