sr-032409-1m~~
City of
Santa Monica
City Council Report
City Council Meeting: March 24, 2009
Agenda Item: ~ "' t~ ~
To: Mayor and City Council
From: Marsha Jones Moutrie, City Attorney
Subject: Professional Services Agreement with Kane, Ballmer & Berkman, a Law
Corporation, for Legal Services on behalf of the City, Redevelopment
Agency and the Parking Authority
Recommended Action
The City Attorney requests authorization to enter into a new contract with Kane, Ballmer
& Berkman ("KBB") for specialized legal services on behalf of the City of Santa Monica
("City"), the Santa Monica Redevelopment Agency ("Agency") and the Parking Authority
{"Parking Authority") in an amount not to exceed $250,000.
Executive Summary
The City, Agency and Parking Authority use the services of outside legal counsel for
assistance with California redevelopment law as it relates to capital improvements,
assistance for affordable housing production, property acquisition, redevelopment plan
amendments and public and private development within the City's redevelopment
project areas. KBB has provided these specialized services on an as-needed basis
under a contract that will soon expire. Because a number of critical on-going projects
require KBB's continued legal counsel, a new contract for these specialized-services is
needed at this time.
Discussion
Due to its unique expertise in the field of redevelopment, its specific and extensive
experience with Santa Monica since the 1970s, as well as its reasonable rates, the City,
Agency, and Parking Authority have utilized the services of Kane, Ballmer, and
Berkman for complex real estate and redevelopment transactions. KBB presently
provides legal services to the City pursuant to Agreement No. 8512 (CCS), originally
authorized for $200,000 on September 27, 2005, and increased in an amount not-to-
exceed $280,000 on February 27, 2007. It is anticipated that the contract amount
authorized under Agreement No. 8512 (CCS) will be expended by April 2009.
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KBB is currently assisting the City and Agency negotiate and draft legal documents
necessary to complete critical redevelopment, housing. and economic development
projects including-the Santa Monica. Place remodel, Parking Structure 3, 7 & 8
improvements, 1.920 Ocean Way exchange and other property acquisitions. KBB's
expertise and. knowledge of these on-going projects makes it the best qualified for this
professional services contract and the most efficient and economical option. KBB has
not raised its rates and the Agreement being recommended .continues to set hourly
rates for the attorneys at KBB that range from $145 per hour 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 rate.
In addition, the Municipal Law Division of the City Attorney's Office has had three
retirements within the past 6 months, including a senior transactional attorney and a
senior deputy assigned to redevelopment matters. A recently hired deputy city attorney
will be assigned to work with KBB on all legal services provided to ensure in-house
training and to assist the Municipal Law Division assume increased responsibility for this
work. The professional services recommended for City Council authorization provide
for continuation of KBB. legal services that will include legal advice and consultation;
written legal opinions; drafting and preparation of legal documents; legal reviews and
approval of contracts, and attendance at local hearings and/or other meetings, as
required.
In consideration of several significant projects and potential property transactions that
staff is currently working on, the total contract amount with KBB is recommended not to
exceed $250,000.
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Budget/Financial Impact
The nature of real estate and/or Redevelopment Agency transactions that require the
assistance of KBB under this contract will vary by project. Actual costs will be charged
to the appropriate budget account number as services are provided. Costs charged to
the City and the Agency will be from HED's budget, account number 01263.555110.
Costs will continue to be charged to specific Capital Improvements. Project accounts
where appropriate.
Prepared by: Alan Seltzer, Chief Deputy City Attorney
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Approved: Forwarded to Council:
Reference Contract No.
9048 (CCS).