sr-121410-3k~J
rcvor City Council Report
Santa Monica
City Council Meeting: December 14, 2010
Agenda-Item:Jd
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
Staff recommends that City Council authorize the City Manager to negotiate and
execute a 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
$300,000.
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 be depleted of funds. 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, 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. 9048 (CCS), which was entered into on or.about
June 16, 2009, and provided a total compensation amount not to exceed $250,000. It is
1
anticipated that the contract amount authorized under Agreement No. 9048 (CCS) will
be expended by December 2010.
KBB is currently assisting the City and Agency in negotiating and drafting legal
documents necessary to complete critical redevelopment, housing and economic
development projects including: the Civic Center Joint Use Project; the Civic Center
Village housing development; the Palisades Garden Walk and Town Square Project;
other Civic Center District projects; continued downtown parking structure
improvements; the AMC downtown cinema development; property acquisitions; and
other projects as needed. 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. Hourly rates for the attorneys at KBB are very reasonable,
ranging from $160 per hour for an Associate to $225 per hour for Principals and $275
for the founding partner. The Agreement would provide for the rates to be adjusted with
30 days written notice to the City, consistent. with KBB's prevailing rate.
An attorney from the City Attorney's Office would be assigned to work with KBB on all
legal matters to ensure appropriate oversight. The contract recommended includes
legal advice and consultation, written legal opinions, drafting and preparing legal
documents, legal reviews and approval of contracts, and attendance at local hearings 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 $300,000.
Financial Impacts and Budget Actions
The contract amount to be awarded to KBB is not to exceed $300,000. 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 for specific Capital
2
Improvement Projects will be charged to those corresponding accounts where
appropriate.
Prepared by: Alan Seltzer, Chief Deputy City Attorney
Approved: Forwarded to Council:
Rod Gould
City Manager
3