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SR-102-001-03 (2) City Council Meeting: September 13, 2005 Santa Monica, CA To: Mayor and City Council From: City Staff Subject: Professional Services Agreement with Kane, Ballmer & Berkman, a Law Corporation, for Legal Services for the City, Agency and the Parking Authority Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Kane, Ballmer & Berkman for legal services on behalf of the City of Santa Monica (“City”), the Santa Monica Redevelopment Agency (“Agency”) and the Parking Authority for the City of Santa Monica. Background and Discussion Kane Ballmer & Berkman (KBB), which specializes in redevelopment and real property transactions, has provided legal services to the City and Redevelopment Agency on redevelopment related matters since the 1980s. This agreement will provide legal services associated with various property transactions by the City, Agency and the Parking Authority. The agreement for legal services will include, but is not limited to, the rendering of legal advice and consultation; furnishing of written legal opinions; drafting and preparation of necessary legal documents; legal reviews and approval of contracts and attendance at local hearings or other meetings, as required. A city attorney will be assigned to work with KBB on all legal services provided. 1 Budget/Financial Impact The Agreement being recommended sets hourly rates for the attorneys at KBB that range from $145 per for an Associate to $200 per hour for the Senior Principals (partners). The Agreement provides for the rates to be adjusted with thirty (30) days written notice to the City, consistent with KBB’s prevailing rates. The number and nature of real estate and/or Redevelopment Agency transactions that require the assistance of KBB will determine the total cost of services. It is anticipated that the amount may exceed $55,000. Funds will be encumbered in the budgets for professional services for the Agency, City and the Parking Authority to cover these legal services as required. Recommendation Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with Kane, Ballmer & Berkman for legal services on behalf of the City, the Redevelopment Agency and the Parking Authority. Prepared by: Marsha Jones Moutrie, City Attorney Jeff Mathieu, Director, Resource Management Department Lyn Cacciatore, Deputy City Attorney Miriam Mack, Economic Development Division Manager Tina Rodriguez, Redevelopment Administrator Erika Cavicante, Senior Administrative Analyst Reference Contract No. 8512 (CCS). 2 F:\atty\muni\strpts\mjm\kaneballmer.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 Kane, Ballmer & Berkman, a Law Corporation, for Legal Services for the City, Agency and the Park Authority Staff prepared a report to Council which recommended authorizing a contract with the law firm of Kane, Ballmer & Berkman for assistance to the Redevelopment Agency, City and Parking Authority in matters relating to redevelopment and real estate transactions. Kane, Ballmer & Berkman specializes in these areas and is widely acclaimed for both its unique expertise and reasonable rates. The timing of staff’s recommendation reflects the fact that staff is working on matters relating to several significant, potential property transactions. On September 13, 2005, the Council continued the item so that staff could formulate a recommendation as to a monetary limit on the services contract. Staff has considered the issue, taking into account the number of transactions likely to require special expertise, the complexity of the transactions and Kane, Ballmer 3 & Berkman’s rates. Based on those considerations, staff recommends a total contract amount not to exceed $200,000. PREPARED BY: Marsha Jones Moutrie, City Attorney Jeff Mathieu, Director of Resource Management Lyn Cacciatore, Deputy City Attorney 4