SR-800-001 (5)
Council Meeting: September 13, 2005 Santa Monica, CA
To: Mayor and City Council
From: City Staff
Subject: Professional Services Agreement with Palmer & Dodge, LLP for Legal
Services Related to the Resolution of the Landing Fee Program and to
Assist in Future Discussions with the FAA Regarding Airport Operational
Issues.
Introduction
This report requests City Council authorization for the City Manager to negotiate and
execute an agreement with Palmer & Dodge, LLP for legal services associated with the
resolution of the dispute between the Federal Aviation Administration (FAA) and the City
over the landing fee program and to assist in future discussions with the FAA regarding
Airport operational issues.
Background/Discussion
Palmer & Dodge played a pivotal role in gaining FAA approval of the revised landing fee
program which was based upon a joint understanding reached by the City and the FAA.
The resolution addressed the FAA?s concerns set forth in its Director?s Determination of
January 4, 2005 in the Part 16 proceeding brought by National Business Aviation
Association, Bombardier Aerospace Corporation and Dassult Falcon Jet Corporation
and the City?s concern regarding development of a revenue source for Airport programs
and capital improvements.
Executing an agreement with Palmer & Dodge will allow the City Attorney?s office to
work with and obtain assistance from the firm for legal matters related to the
implementation of the Aircraft Conformance Program and in communicating with the
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FAA on a local level since they are based in Washington DC. Their experience with
FAA procedures and the reasoning for their decisions will provide needed expertise
regarding issues involving the FAA. Staff recommends that the City Council authorize
the City Manager to negotiate and execute an agreement for legal services including,
but not limited to, communicating with the FAA; rendering legal advice and consultation;
furnishing legal opinions; and drafting necessary legal documents. A city attorney will
be assigned to work with Palmer & Dodge on all legal services provided.
Budget/Financial Impact
The rates currently being charged by Palmer & Dodge range from $200 to $450 per
hour depending on the personnel involved. The amount to be spent in FY05-06 is
unknown at this time and will depend on the issues that arise involving the FAA. It is
anticipated that the amount may exceed $55,000 and will be funded from the Airport
Division budget for professional services at account 33631.555060.
Recommendation
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Palmer & Dodge, LLP for legal services on behalf of the
City.
Prepared by: Marsha Jones Moutrie, City Attorney
Jeff Mathieu, Director, Resource Management Department
Joseph Lawrence, Assistant City Attorney
Marty Tachiki, Deputy City Attorney
Bob Trimborn, Airport Manager
Reference Contract No. 8511 (CCS).
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F:\atty\muni\strpts\mjm\palmerdodge.doc
City Council Meeting 9-27-05 Santa Monica, California
SUPPLEMENTAL STAFF REPORT
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Agreement with Palmer & Dodge, LLP for Legal
Services Related to the Resolution of the Landing Fee Program and to
Assist in Future Discussions with the FAA Regarding Airport Operational
Issues
Staff prepared a report to Council which recommended authorizing a contract
with Palmer & Dodge, LLP for specialized legal services relating to Airport operational
issues regulated by federal law. Staff selected that firm through a competitive interview
process involving several firms which specialize in work before the Federal Aviation
Administration. Palm & Dodge, LLP, which is located in Washington, D.C., has
demonstrated noteworthy expertise and success in providing legal advice,
representation and lobbying services. On September 13, 2005, the Council continued
this item so that staff could formulate a recommendation as to a monetary limit on the
services contract.
Staff has considered the matter, taking into account the difficulty and likely
duration of the anticipated work, its possible outcomes and their significance to the
community, and Palmer & Dodge?s rates. Based on these considerations, staff
recommends a ?not to exceed? limit of $175,000. If that amount is approved and spent,
and staff believes that additional work is necessary and advisable, staff will return to
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Council for additional authority. Funds would be provided from the Airport Division
budget for professional services, Account Number 33631.555060.
PREPARED BY: Marsha Jones Moutrie, City Attorney
Jeff Mathieu, Director of Resource Management
Martin Tachiki, Deputy City Attorney
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