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sr-121410-3p~® ~;tY°, City Council Report Santa Monica City Council Meeting: December 14, 2010 Agenda Item: 3~ To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Contract for Legal Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a contract for legal services with Crowell &Moring LLP, a Washington D.C. based firm, for aviation-related legal services, to be provided by Kirk Shaffer, in an amount not to exceed $220,000. Executive Summary The City uses the services of outside legal counsel for assistance with matters- requiring special expertise. Staff recommends that City Council approve a contract with Crowell & Moring LLP for such services so that the firm may assist the City. in dealing with the Federal Aviation Administration (FAA) on proposed changes to the instrument-departure flight track from Santa Monica Airport (SMO), in an amount not to exceed $220,000. Background The FAA has proposed and tested a modification to the departure track for piston- powered aircraft departing from SMO under instrument flight rules (IFR). At present, all IFR aircraft depart on runway heading towards the shoreline, immediately after takeoff. The FAA proposal would route piston-powered IFR departures on a new heading of 250° immediately after departure which will route aircraft over the Sunset Park and Ocean Park neighborhoods. During the six-month test period, earlier this year, City residents logged thousands of complaints about safety risks and noise impacts attendant upon this proposed heading. In response, the City assured residents that it would attempt to dissuade the FAA from making the 250° heading a permanent change. 1 Discussion Crowell &Moring LLP specializes in complex litigation, .regulatory, and corporate matters. Kirk Shaffer, Senior Counsel, would work on the project. He specializes in aviation work for public and private entities, including litigation and lobbying. He was formerly employed by the FAA as its Associate Administrator for Airports. In that capacity he oversaw administrative proceedings and personally participated in negotiations relating to the City's ordinance banning C and D aircraft to enhance runway safety. In early 2009, Mr. Shaffer left the FAA and joined the Washington D.C. office of Crowell & Moring,. which has a diverse practice, including, among other things, litigation, securities, government contracts, finance and aviation. The firm offers clients creative solutions to complex legal problems and has been recognized for offering value-based fees as an alternative to .hourly billing. Mr. Shaffer proposes to assist the City through a combination of legal analysis and interactions with the FAA intended to persuade the Agency that the proposed 250° heading for piston-powered IFR departures should be reassessed and revised. He has proposed avalue-based fee structure encompassing two components: a monthly retainer and a success fee which would be paid only if Mr. Shaffer's efforts succeed. The retainer payments would be front loaded to reflect early effort. Thus, the monthly retainer would be $30,000 for the first two months, $25,000 for the second two months and $20,000 for the last two months. The success fee would be $70,000 in the first month, declining by $5,000 per month to $45,000 in the sixth month. Success would be defined as achieving the departure track to be recommended by the City's consultants. If Mr. Shaffer does not succeed, his total retainer fee for six months would be $150,000.. In view of Mr. Shaffer's singular qualifications, the City Manager has exercised his authority to forego a competitive process for obtaining outside assistance. Legal Staff concurs and recommends retaining Mr. Shaffer. 2 Financial Impacts & Budget Actions. Actual costs will be charged to the Airport Department as services are rendered. The contract to be awarded to Crowell & Moring LLP will not exceed $220,000. Funds are included in the FY 10-11 budget at account 01202.555060. Prepared by: Marsha Jones Moutrie, City Attorney Approved: Forwarded to Council: '~.~ ~l ~ ~a ~ ~ M rs a Jon Moutrie City Attorn,~y Rod Gould City Manager 3 Reference Contract No. 9308 (CCS) .