SUBJECT
Title
Approve the Fourth Amendment to Outside Counsel Agreement with Goldfarb Lipman for Litigation Services Pertaining to the Three Lawsuits Related to the Dissolution of the Redevelopment Agency
Report
REPORT IN BRIEF
Approval is requested for a Fourth Amendment to the Outside Counsel Agreement with the law firm of Goldfarb Lipman for legal services and representation of the City in the matters of (i) Sunnyvale Successor Agency v. Ana Matasantos (Sac SC # 34-2013-800001499) (“Sunnyvale #1”); (ii) Santa Clara Office of Education et al. vs Successor Agency to the Sunnyvale Redevelopment Agency (Sac SC # 34-2013-800001627) (“Sunnyvale #2”); and (iii) Sunnyvale vs. Michael Cohen (Sac SC #34-2015-80002067) (“Sunnyvale #3”). The estimated costs related to the Fourth Amendment are associated with the filing of a Petition for Review with the California Supreme Court regarding Sunnyvale #1. Consequently, it is necessary to request additional funding in the amount of $25,000 for these services through the approval of the Fourth Amendment to the Outside Counsel Agreement.
BACKGROUND
Karen Tiedemann, a partner in the law firm Goldfarb Lipman in Oakland, is a lawyer specializing in the areas of real estate transactions, affordable housing, nonprofit organization and environmental law. Ms. Tiedemann and her firm were retained by the City Attorney under Section 908 of the City Charter to represent the City and provide legal services, consultation and advice concerning the above referenced cases in litigation. The Agreement was entered in June 24, 2013, and the First amendment was entered into in March 2016, with a not to exceed amount of $160,000. The Second amendment was entered in October 31, 2016, with a not to exceed amount of 200,000. The Third amendment was entered in April 17, 2017, with a current not to exceed amount of $220,000. The term of the Agreement expires on May 19, 2019.
DISCUSSION
Goldfarb Lipman has represented the City in many matters concerning the dissolution of the Redevelopment Agency during the past several years. In October 2014, the City Council gave authority by a 7-0 vote to pursue appellate review in Sunnyvale #1 and Sunnyvale #2. Sunnyvale #1 and Sunnyvale #2 involve approximately $13.8 million that the former RDA paid to the City in FY 2010-11 and 2011-12 under the 1977 Repayment Agreement between the City and the former RDA. The California Department of Finance (DOF) and the County of Santa Clara contend that the payments were not authorized by the 2011 law that dissolved redevelopment agencies.
On April 20, 2018, the California Court of Appeal, Third Appellate District, affirmed the trial court’s decision and denied the City and Successor Agency’s appeal in Sunnyvale #1. On May 8, 2018, the City Council authorized the filling of Petition for Review with the California Supreme Court in Sunnyvale #1 by a 7-0 vote. The estimated costs related to the Fourth Amendment are associated with the filing of a Petition for Review with the California Supreme Court regarding Sunnyvale #1. Consequently, it is necessary to request additional funding in the amount of $25,000 for these services. through the approval of the Fourth Amendment to the Outside Counsel Agreement, for a new not-to-exceed amount of $245,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b) (4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Funding for RDA Counsel Fees in FY 2017/18 has been appropriated in the General Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
City Council:
Authorize the City Attorney to execute a Fourth Amendment, in substantially the same form as Attachment 1 to the report, to the Outside Counsel Agreement with the law firm of Goldfarb Lipman to increase the not-to-exceed amount by $25,000, for a new not-to-exceed contract amount of $245,000.
Redevelopment Successor Agency:
Authorize the Agency Counsel to execute a Fourth Amendment, in substantially the same form as Attachment 1 to the report, to the Outside Counsel Agreement with the law firm of Goldfarb Lipman to increase the not-to-exceed amount by $25,000, for a new not-to-exceed contract amount of $245,000.
Staff
Prepared by: Nichole Anglin, Paralegal
Reviewed and Approved by: John A. Nagel, City Attorney and Agency Counsel
ATTACHMENT
1. Draft Fourth Amendment to Outside Counsel Agreement