HomeMy WebLinkAbout6/21/2017 - STAFF REPORTS - 1.H. �pALM SA
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N° CITY COUNCIL STAFF REPORT
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DATE: June 21, 2017 Consent Calendar
SUBJECT: PROFESSIONAL SERVICES AGREEMENT, CLYDE & CO US LLP
FROM: David H. Ready, City Manager
BY: Edward Z. Kotkin, City Attorney
SUMMARY
In December 2016, under his signature authorization, the City Manager retained legal
services of a specialized attorney through the legal firm of Clyde & Co US LLP, ("Clyde &
Co.") to represent the City regarding legal matters associated with the South Coast Air
Quality Management District ("AQMD"), directly related to the operation of the City's
Municipal Co-Generation Plant. The required legal services provided by Clyde & Co. are
anticipated to exceed the City Manager's authorization, and this action will approve a
formal agreement with Clyde & Co. increasing the maximum aggregate contract fees to
be one hundred thousand dollars ($100,000.00), i.e., an additional seventy-five thousand
dollars ($75,000.00) beyond the fees previously approved by the City Manager. The
agreement covers transactional legal services as the City continues to work with AQMD.
RECOMMENDATION:
1) Approve Agreement No. , a Professional Services Agreement, with Clyde & Co.
US, LLP, for specialized legal services and representation associated with the South
Coast Air Quality Management District in a total amount not to exceed one hundred
thousand dollars ($100,000.00), in a form substantially similar to that published with this staff
report, subject to minor modification, within the reasonable discretion of the City
Attorney;
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The City of Palm Springs has established the Office of the City Attorney as an in-house
department to lead and coordinate in the direction and provision of all legal services to
the City. Prior to the current employment of the City Attorney, the City was represented
by Woodruff, Spradlin & Smart ("WSS"). In December 2016, at the recommendation of
ITEM NO. 1 • N
City Council Staff Report
June 21, 2017-- Page 2
Professional Services Agreement with Clyde& Co.
the City Manager, the City required the services of a special attorney to represent the City
regarding legal matters associated with the South Coast Air Quality Management District
("AQMD"), directly related to the operation of the City's Municipal Co-Generation Plant.
As WSS represents AQMD as another client, WSS was unable to represent the City on
this matter, and the City Manager was required to select an outside special attorney to
represent the City regarding the legal issues related to the AQMD.
The City Manager retained the specialized legal services of Clyde &Co. in an amount not
to exceed twenty-five thousand dollars ($25,000.00) under his signature authorization.
Subsequently, Clyde & Co. has represented the City with respect to ongoing work with
AQMD, and has provided legal services consistent with the City's requirements and
expectations for resolving certain legal matters relating to the operation of the City's
Municipal Co-Generation Plant.
It is anticipated that the required specialized legal services will continue for the near term,
and it is recommended that the City Council maintain this legal relationship with Clyde &
Co. to ensure successful resolution of the legal matters affecting the Co-Generation Plant.
It is recommended that City Council approve a formal agreement with Clyde & Co. in an
amount not to exceed an aggregate one hundred thousand dollars ($100,000.00).
The City is being represented by Ms. Frances Keeler, Senior Counsel with Clyde & Co.,
who was formerly employed as a legal counsel by AQMD and has a practice focused to
a degree on the technical background and legal rules and regulations adopted by AQMD
specific to the operation of the Co-Generation Plant. Legal fees associated with this
assignment are $450/hour for Senior Counsel; $315/hour for Senior Associates; and
$225/hour for Junior Associates.
The City Attorney has reviewed the agreement proposed for execution with Clyde & Co.,
and discussed its terms with Ms. Keeler. Mr. Kotkin anticipates no difficulty in securing
Clyde & Co.'s execution of this agreement as drafted, subject to minor modification, within
the reasonable discretion of the City Attorney.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
This agreement is not a "project"for purposes of the California Environmental Quality Act
(CEQA), as that term is defined by CEQA guidelines (Guidelines) section 15378. This
Ordinance is organizational or administrative activity by the City of Palm Springs in
furtherance of its police power, and will not result in a direct or indirect physical change
in the environment, per section 15378(b)(5) of the Guidelines.
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City Council Staff Report
June 21, 2017 -- Page 3
Professional Services Agreement with Clyde& Co.
FISCAL IMPACT:
Sufficient funding is budgeted and available in contractual legal services, Account No.
001-1200-43220.
SUBMITTED:
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Edward Z. Kotkin, City Attorney Marcus L. Fuller, Assistant City Manager
David H. Ready, Esq., P Manager
Attachments:
Professional Services Agreement
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