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File Number: 15-361 <br />On May 20, 2013, the City Council voted to adopt a new 13-month agreement with Meyers <br />Nave, effective June 1, 2013 through June 30, 2014, which was then extended on June 16, <br />2014 for an additional 12 months, through June 30, 2015. The current agreement utilizes the <br />fee-for-service cost structure outlined above, with annual fees for service not-to-exceed <br />$783,200 during the contract period, which includes a $50,000 set-aside for use by the City <br />Manager at his discretion to retain special counsel. <br />Analysis <br />The City of San Leandro has now been operating under the new contractual structure for <br />approximately two years, and based upon staff's analysis, the current contract structure is <br />effective in controlling costs and generated financial savings as predicted by the MRG <br />analysis. In the current fiscal year concluding on June 30, 2015, projections indicate that total <br />fees for city attorney/general counsel services will remain at least 20% below the <br />not-to-exceed threshold that was adopted by the City Council as part of the current contract. <br />Meyers Nave requests that the City Council extend the existing contract for legal services by <br />an additional 12-month period, i.e. through June 30, 2016 (see associated “Amendment No. 2 <br />to Agreement for Legal Services”). As part of this contract amendment, Meyers Nave <br />requests approval to increase the hourly billing rates (e.g. from $220/hour to $230/hour for <br />general legal services; from $145/hour to $150/hour for paralegal services; from $274/hour to <br />$280/hour for all litigation services, as well as other minor adjustments as further outlined in <br />the attached agreement). The total annual budget for legal services would increase from <br />$783,200 to $802,780. <br />Fiscal Impacts <br />For Fiscal Year 2015-16, the budget for "city attorney/general counsel services" is $802,780. <br />This amount includes a $50,000 set-aside that may be used by the City Manager at his <br />discretion for outside legal services, consistent with the existing Agreement. Per the <br />Agreement, Meyers Nave’s contract is to a not-to-exceed amount that constitutes a "hard cap" <br />in the budget that the City Council has no obligation to increase. Additional details are <br />provided in the associated Resolution, to which the draft contract Amendment No. 2 has been <br />attached. <br />Budget Authority <br />Sufficient funds for the 12-month contract extension have been included in the FY 2016-17 <br />biennial budget that was adopted by the City Council on June 1, 2015. <br />ATTACHMENT <br />Attachment to Resolution <br />·Amendment No. 2 to Legal Services Agreement <br />PREPARED BY: Eric Engelbart, Assistant to the City Manager, City Manager’s Office <br />Page 2 City of San Leandro Printed on 6/9/2015