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sr-012610-1b~® ~;~Yp, City Council Report Santa Monica City Council Meeting: January 26, 2010 Agenda Item: I "~ To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Amendment to Contract for Legal Services with Liebert Cassidy Whitmore Recommended Action Staff recommends that the City Council authorize the City Manager to modify the retainer agreement with Liebert Cassidy Whitmore ("Liebert") to increase the existing not to exceed amount to $200,000 to provide legal services regarding disciplinary matters, for fiscal year 2009-2010. Executive Summary Liebert provides legal services with regard to Personnel Board Hearings and some other employee disciplinary matters. This year, because the workload in this area has been larger and more challenging than anticipated, it is necessary to increase the not to exceed amount for the Liebert contract from $140,000 to $200,000. Background The City must utilize the services of outside legal counsel in administrative appeals of disciplinary. actions. In-house counsel advises the Personnel Board and, therefore, to avoid a conflict, outside counsel must be utilized to present the City's case to the Board. Additionally, the City relies upon the expertise of outside, specialized counsel in certain unusually, difficult personnel matters. Discussion This fiscal year, there was an unusual volume of complex personnel litigation early in the year. Therefore, Liebert's bills for services already rendered will soon reach the "not to exceed" threshold set by Council action at the beginning cf the fiscal year. That amount was set based on last year's billings. However, because the demands have been higher than anticipated this year, staff is recommending raising the threshold so that the City may continue to utilize Liebert's services during the remainder of the fiscal 1 year. Based on assessment of the currently pending cases, staff believes that a revised threshold of $200,000 will be adequate to meet demand during the remainder of the year. Financial Impacts & Budget Actions Total expenditures for the contract with Liebert are not expected to exceed $200,000. Actual costs will be charged to the appropriate Department when. services are rendered. Prepared by: Marsha Jones Moutrie, City Attorney 2 Approved: Forwarded to Council: Reference Amended Contract No. 9084 (CCS)