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HomeMy WebLinkAboutStaff Report 14817 (2) City of Palo Alto (ID # 14817) Office of the City Attorney City Council CAO Report Meeting Date: 11/28/2022 Report Type: Consent Calendar Title: Approve an Amendment to the Legal Service Agreement with Colantuono, Highsmith & Whatley, PC (Contract S17167696) to Increase the Contract Amount by an Additional $120,000 for a new Not-to-Exceed Amount of $575,000 and Extend the Term to October 1, 2027 From: Molly Stump, City Attorney Recommendation Staff recommends that the City Council approve and authorize an increase in the contract amount of the legal services agreement with the law firm of Colantuono, Highsmith & Whatley, PC for litigation defense in the case of Green v. City of Palo Alto, et al., Court of Appeal of the State of California, Sixth Appellate District, Case No.: H049436, (Contract S17167696), by an additional $120,000 for a total not to exceed amount of $575,000 and an extension of the contract term to October 1, 2025. Discussion In October 2016, the City retained Colantuono, Highsmith & Whatley, PC (Contract S17167696) to represent the City in the case of Miriam Green v. City of Palo Alto, et al., Court of Appeal of the State of California, Sixth Appellate District, Case No.: H049436. The lawsuit was filed on October 6, 2016, decided by the Superior Court on June 24, 2021, and the City filed a notice of appeal on September 21, 2021 and Plaintiffs filed a notice of cross- appeal on October 21, 2021. The parties have jointly filed a request for stipulated reversal and approval of a settlement agreement. Additional funds are needed for briefing and oral argument at the Court of Appeal and Superior Court on the motion for stipulated reversal and approval of settlement, estimated to occur in 2023. Resource Impact The estimated additional cost for the City’s contract for legal services with Colantuono, Highsmith & Whatley, PC exceeds the City Attorney’s Department budgeted funds for contractual services. Staff recommends that the appropriation to fund needed legal defense services be offset by a reduction in the General Fund Budget Stabilization Reserve (BSR). The Page 2 BSR will remain at or above the City Council approved target level of 18.5%. This appropriation of additional funds, that requires a 2/3 super majority (5 votes) under the City’s Charter and Municipal Code, will be brought forward as part of the FY 2023 Mid-Year Budget Review in February 2023. Environmental Review Amendment of legal services contracts is not a project requiring environmental review under the California Environmental Quality Act (CEQA)