SR 03-22-2022 3D
City Council
Report
City Council Meeting: March 22, 2022
Agenda Item: 3.D
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To: Mayor and City Council
From: Joseph Lawrence, Interim City Attorney, City Attorney's Office, Administration
Subject: Approval of First Modification of Lawyer-Client Retainer Agreement for Liebert
Cassidy Whitmore for Personnel Related Legal Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to Contract No. 10461 (CCS) with Liebert Cassidy Whitmore
(LCW), a California-based law firm, to extend the term of the agreement for one year
and increase the compensation by $300,000, for personnel-related legal services for the
entire city, managed by the City Attorney’s Office. This modification will result in an
amended agreement providing for a six-year contract with a new total estimated amount
not to exceed $2,175,000, with future year funding contingent on Council budget
approval.
Summary
The City uses the services of outside, specialized legal counsel for assistance with
employment and labor relations advice, litigation, and training, including but not limited
to labor negotiations, ever-changing COVID-19 employment laws and regulations,
employee disciplinary matters, Personnel Board hearings and other administrative
proceedings, and personnel policies. Staff recommends that the City modify its
agreement with Liebert Cassidy Whitmore (“LCW”) as the City is about to begin labor
negotiations with most bargaining units in the City. Modifying the contract now will allow
the City to maintain needed continuity and help the City to ensure that labor
negotiations are not disrupted or negatively impacted by changing outside legal counsel
during negotiations.
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Discussion
In October 2016, the City issued a Request for Proposals (RFP) for labor and
employment services for a government entity. Nine law firms submitted proposals. The
proposals were reviewed, and three law firms were interviewed. The interviews were
conducted by the City Attorney’s Office and Human Resources. As a result, staff
recommended, and Council approved, an agreement with LCW as the City’s outside
labor and employment legal counsel.
The City entered into a five-year contract not to exceed $1,875,000 beginning on
August 3, 2017, and ending June 30, 2022. Through December 2021, the City has
spent approximately $1,200,000, for an average over four and a half years of about
$266,500 per year. Funds are charged to appropriate departments as services are
rendered.
Given LCW’s institutional knowledge, upcoming labor negotiations, and pending
litigation, the City Attorney’s Office believes that it would be more prudent, cost-
effective, and efficient to extend LCW’s contract for an additional year rather than
initiating a new procurement process and entering into a new agreement with a new law
firm at this time. Therefore, staff recommends approving a first modification to extend
the existing contract for an additional one year ending June 30, 2023. During FY 2022-
2023, the City Attorney’s Office will conduct another RFP process for outside legal
counsel to begin July 1, 2023. LCW has not increased billing rates to the City for the last
two years. Under the first modification, the rates would increase approximately 6-7%,
which remain below LCW’s current rates and are significantly lower than the majority of
law firms that specialize in public sector labor and employment law. The increase in
fiscal authority is due to pending and anticipated personnel proceedings and labor
negotiations through June 30, 2023.
Past Council Actions
05/23/2017
(Attachment A)
Staff Report Requesting Authorization of LCW agreement
following RFP process
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08/03/2017
(Attachment B)
LCW Contract
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the agreement with LCW by $300,000
for a total not to exceed of $2,175,000. These funds will be encumbered as needed and
are charged to the appropriate departments as the services are rendered. Department
budgets currently include funding for this work.
Contract Modification Request: LCW
Agreement # Current Authorized
Amount
Modified
Request Amount
FY 2022-23 Budget
Dept/Account #
Total Revised
Contract Amount
10461 $1,875,000 $300,000 Various $2,175,000
TOTAL $2,175,000
Prepared By: Bradley Michaud, Legal Operations Coordinator
Approved
Forwarded to Council
Attachments:
A. ExA-LCW 2017 Staff Report
B. ExB-LCW 2017 Contract
C. ExC-LCW First Modification
D. ExD-Oaks Initiative Disclosure Form
E. ExE-Living Wage Ordinance Certification
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City Council Report
City Council Meeting: May 23, 2017
Agenda Item: 3.G
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To: Mayor and City Council
From: Joseph Lawrence, Interim City Attorney, City Attorney's Office
Subject: Lawyer-Client Retainer Agreement for Outside Labor and Employment
Counsel
Recommended Action
1. Award RFP Number 93 to Liebert, Cassidy and Whitmore, a California
professional corporation (“LCW”), for Outside Labor and Employment Counsel
services; and
2. Authorize the City Manager to negotiate and execute a Lawyer-Client Retainer
Agreement (“Agreement”) with LCW for outside labor and employment counsel
services in an amount not to exceed $1,875,000, for a five-year term.
Executive Summary
The City, through the City Attorney’s Office and the Human Resources Department,
uses the services of outside, specialized legal counsel for assistance with labor and
employment matters, including, but not limited to, employee disciplinary matters,
training, Personnel Board hearings, litigation, and advice and counsel on specific
employment-related matters. Staff recommends that City Council approve a Lawyer-
Client Retainer Agreement with Liebert Cassidy Whitmore for such services in an
amount not to exceed $1,875,000 over five years.
Background
The City Attorney’s Office and the Human Resources Department use the services of
outside labor and employment counsel to provide representational, litigation, advisory,
training and other employment law and labor relations services in the areas of
Harassment and Discrimination, Wage and Hour, Disability and Leave Laws (e.g.,
FMLA/CFRA), Public Safety (Police/Fire), Retirement, Workplace Investigations,
Personnel Policies, Administrative Hearings, and Labor Relations and Negotiations.
After a competitive process undertaken in 2012, the City Council previously awarded a
contract to LCW for outside labor and employment counsel services. The term of the
current contract is ending on June 30, 2017.
Discussion
The proposed contract will have a five-year term commencing on July 1, 2017. The City
will have the ability to terminate the Agreement at any time during the five-year term by
giving LCW thirty days’ written notice. Services will be requested, as needed, by both
3.D.a
Packet Pg. 297 Attachment: ExA-LCW 2017 Staff Report (5002 : Legal Services - LCW)
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the City Attorney’s Office and the Human Resources Department. The Human
Resources Department will coordinate training workshops to be conducted by outside
legal counsel, and the City Attorney’s Office will monitor legal work undertaken. Outside
legal counsel will provide legal advice and consultation, written legal opinions, and
attendance at hearings or other meetings, as needed.
Vendor/Consultant Selection
On October 25, 2016, the City issued a Request for Proposals (RFP) for labor and
employment services from outside law firms. The RFP was posted on the City’s online
bidding site, and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal Code provisions. In addition, four law firms
specializing in practice areas for government agencies were contacted and informed
about the RFP. Nine law firms submitted proposals by the deadline of November 11,
2016. The proposals were evaluated based on the criteria in SMMC 2.24.073, and
specific criteria, including experience of attorneys in the practice areas needed, client
reference list and stability of client representation, case references, law firm billing rates,
cost of all additional services, and adhering to RFP instructions. Representatives from
the City Attorney's Office and Human Resources conducted interviews with the top
three ranked firms to evaluate qualifications and experience of the proposed law firms.
Staff recommends LCW, located in Los Angeles, California, as the best qualified firm.
LCW practices exclusively in public sector labor and employment law and has extensive
experience providing labor and employment services to multiple public entities
throughout California with regard to employee disciplinary matters, workplace
investigations, Personnel Board Hearings, litigation, labor law-related training, and
preparation of legal reports. LCW’s rates are competitive with other law firms and LCW
has the best depth of services and experience suited for the City’s needs.
Financial Impacts and Budget Actions
The contract amount to be awarded to LCW is not to exceed $1,875,000 over a five-
year period. These funds will be encumbered as needed and are charged to the
appropriate departments as services are rendered.
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Packet Pg. 298 Attachment: ExA-LCW 2017 Staff Report (5002 : Legal Services - LCW)
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Prepared By: Diana Burger, Office Administrator
Approved
Forwarded to Council
Attachments:
A. Oaks Form 2017
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Packet Pg. 299 Attachment: ExA-LCW 2017 Staff Report (5002 : Legal Services - LCW)
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Packet Pg. 300 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 301 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 302 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 303 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 304 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 305 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 306 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 307 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 308 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 309 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 310 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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Packet Pg. 311 Attachment: ExB-LCW 2017 Contract (5002 : Legal Services - LCW)
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FIRST MODIFICATION OF AGREEMENT NO. 10461 (CCS)
This First Modification of Lawyer-Client Retainer Agreement Number 10461 (CCS)
(“First Modification”), entered into as of _________________ (“Execution Date”), by
and between the City of Santa Monica, a municipal corporation (“City”), and Liebert
Cassidy Whitmore (LCW) is made with reference to the following:
RECITALS
A. On or about August 3, 2017, the City and LCW entered into Lawyer-Retainer Cli-
ent Agreement Number 10461 (CCS) for specialized legal services in employment
and labor law (“Original Agreement”).
B. The City and LCW desire to modify the Original Agreement to extend the agree-
ment term for one additional year and increase the total compensation.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Origi-
nal Agreement as follows:
1. Section 1 of the Original Agreement entitled “Term” shall be deleted in its entirety
and replaced with the following paragraph:
Term. This Agreement begins on July 1, 2017, and terminates on June
30, 2023, unless terminated earlier as set forth in the Original Agree-
ment or extended by the parties in writing.
2. Section 4 of the Original Agreement entitled “Compensation” shall be deleted in
its entirety and replaced with the following paragraph:
Compensation. The City will compensate the Firm for the Services per-
formed in an amount not to exceed $2,175,000, in six years, as set
forth in Exhibit B-1.
3. All references in the Original Agreement to Exhibit B shall be deleted and re-
placed with Exhibit B-1.
4. Exhibit B-1 is attached hereto and incorporated herein by this reference.
5. Execution in Counterparts. This First Modification may be executed in counter-
parts with the same effect as if both parties hereto had executed the same docu-
ment. All counterparts shall be construed together and shall constitute a single
modification. Any signature to this First Modification transmitted electronically
through DocuSign or PDF shall be deemed an original signature and be binding
upon the parties hereto (it being agreed that such electronic signature shall have
the same force and effect as an original signature).
6. Except as expressly modified by this First Modification, all other terms and condi-
tions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the
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Packet Pg. 312 Attachment: ExC-LCW First Modification (5002 : Legal Services - LCW)
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date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
ABC Corporation
#VENDOR
By: _______________________________
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Packet Pg. 313 Attachment: ExC-LCW First Modification (5002 : Legal Services - LCW)
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EXHIBIT B-1
BUDGET
The range of hourly rates for Attorney time is:
1. $270 to $350 per hour for attorney staff for Years 1 and 2, with a $5 increase for
each following year in Years 3 through 5. $270 to $380 per hour for attorney staff
for Year 6.
2. $75 to $125 per hour for services provided by paraprofessional staff in Years 1 and
2, with a $5 increase for each following year in Years 3 through 5. $75 to $135 per
hour for services provided by paraprofessional staff in Year 6.
3. Telephone consultation, court litigation, and administrative proceedings and at-
tendance at the meetings will be billed at the attorney’s hourly rate.
4. Travel time will be at the attorney’s hourly rate.
5. The Firm agrees to the CAO Billing Guidelines attached hereto and incorporated
herein by reference. With the exception of the travel provision, in the event of any
conflict between the CAO Billing Guidelines and the billing terms set forth
above, the CAO Billing Guidelines shall take precedence.
The contract amount to the Firm is not to exceed $2,175,000 over a six-year period.
These funds will be encumbered as needed and are charged to the appropriate depart-
ments as services are rendered.
3.D.c
Packet Pg. 314 Attachment: ExC-LCW First Modification (5002 : Legal Services - LCW)
Office of the City Attorney
City Hall
1685 Main Street, Room 310
Santa Monica, California 90401
Joseph Lawrence
Interim City Attorney
Billing Guidelines
The City is a public entity, and the City Attorney’s Office is committed to providing the most cost-
effective legal representation.
The following are our billing guidelines:
Administrative or clerical work: Administrative, secretarial, clerical, librarian, and accounting tasks
should not be billed. This includes bill preparation/modification, proofreading, word pro-
cessing, conflicts checking, calendaring, scanning, imaging, file creation, docketing, organizing
files, bates stamping, converting data, database management, copying and data-input.
Block billing: Block billing is prohibited. Each billing entry should have a single task or activity
and time associated with it.
Costs and expenses: Costs and expenses should be submitted at their actual amounts and not
with any supplementary markup. This is especially true for subscription services, if allowed, and
experts. Interest and late charges should not be charged. Expenses over the amount of $2,500
incurred in the course of litigation, e.g. mediation and expert witness expenses, may with ad-
vance written consent from the City be billed directly to the City.
Depositions, meetings, and court hearings: Absent preapproval, only one attorney should bill for
depositions, meetings and court hearings.
Electronic billing: Firms shall submit invoices via pdf to CAO.Billing@smgov.net.
First-year associates, summer associates, and law clerks: First-year associates, summer associates, and
law clerks are assumed to be in training, and their work should not be billed.
Meals: Meals, snacks, and beverages should not be billed to file.
Overtime: Staff overtime is considered the cost of doing business and should not be billed.
Personnel turnover: All additions or changes to the legal team shall be approved in writing by the
Interim City Attorney, or Division Chief. Time spent “getting up to speed” for a legal profes-
sional due to staff turnover or vacation is not reimbursable.
Research fees: Subscription services such as Westlaw should not be billed as they are the cost of
doing business. With rare exceptions, only associates should bill for research.
Per the Santa Monica Municipal Code and pursuant to the attached forms, firms selected will be
required to obtain a City of Santa Monica Business License (see https://finance.smgov.net/doing-
business/business-license), complete a W-9 form, meet City insurance requirements, meet City Liv-
ing Wage requirements, and complete a City Oaks Initiative form.
Required documents for your contract: W-9 and Business Licens
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Packet Pg. 315 Attachment: ExC-LCW First Modification (5002 : Legal Services - LCW)
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Packet Pg. 316 Attachment: ExD-Oaks Initiative Disclosure Form (5002 : Legal Services - LCW)
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Packet Pg. 317 Attachment: ExE-Living Wage Ordinance Certification (5002 : Legal Services - LCW)
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Packet Pg. 318 Attachment: ExE-Living Wage Ordinance Certification (5002 : Legal Services - LCW)