June 20, 2006
SUBJECT: Extension of Outside Counsel Agreement for Downtown Redevelopment Matters
REPORT IN BRIEF
Approval is requested for a third amendment to a contract with the law firm of Goldfarb & Lipman to assist the City Attorney with legal matters pertaining to the redevelopment of downtown Sunnyvale and related real estate matters. The current contract is due to expire June 30, 2006, and the third amendment would extend the contract through June 30, 2009, and provide for fees not to exceed $150,000.
BACKGROUND
Redevelopment law specialist Lee Rosenthal of the law firm of Goldfarb & Lipman was retained by the City Attorney under Section 908 of the City Charter to represent the City and the Redevelopment Agency on matters pertaining to the redevelopment of the downtown area and related real estate matters. This assistance has been particularly valuable in conjunction with the Mozart project and the Town Center Mall.
On December 18, 2003, City Council approved a special project to fund outside counsel services for the Downtown Redevelopment Project and appropriated $86,000 for a contract with Goldfarb & Lipman. The contract was amended on March 16, 2004, in the amount of $40,000 for a total contract amount of $126,000. A second amendment to the contract was approved by counsel on March 8, 2005, for a total contract amount of $138,000, of which $104,000 is remaining in Project Budget 824570.
DISCUSSION
Due to delays in developing the Sunnyvale downtown area, including numerous issues related to the Town Center Mall, it is necessary to extend the time period and increase the amount of the contract for legal services with Goldfarb & Lipman.
The specialized legal services of Lee Rosenthal in the area of redevelopment law continue to be required in the areas of redevelopment, tax increment financing, and enforcement of the DDOPA.
It is estimated that these services will require a third amendment to the professional services in the amount of $150,000 to cover legal services through June 30, 2009. The cost estimate is based on the hourly rate for partners at $250.00 per hour and estimated 600 hours of legal services. City Attorney finds this rate to be competitive with other legal firms providing similar services
FISCAL IMPACT
Total cost for a three-year extension of this contract for legal services will not exceed $150,000. Funds are available out of the current Project Budget 824570.
PUBLIC CONTACT
Public contact was made through posting of the agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the Library and the City Clerk's office.
ALTERNATIVES
1. Approve an amendment to extend the contract through June 30, 2009, with the law firm of Goldfarb & Lipman in an amount not to exceed $150,000.
2. Do not approve an amendment to the contract with Goldfarb & Lipman.
RECOMMENDATION
It is recommended that Council approve a Third Amendment to the Outside Counsel Services Agreement with Goldfarb & Lipman, LLP for legal services in an amount not to exceed $150,000 through June 30, 2009.
Prepared and reviewed by:
David E. Kahn, City Attorney
City Attorney’s Office
Attachments:
Attachment A - Draft Third Amendment to Outside Counsel Agreement
Attachment B – First and Second Amendments to Outside Counsel Agreement
Attachment C – Outside Counsel Services Agreement