REPORT TO COUNCIL
SUBJECT
Title
Approve the First Amendment to Outside Counsel Agreement with Sloan, Sakai, Yeung & Wong, LLP for Litigation Services for Litigation Services in the Matter of Michael Laurent v. City of Sunnyvale
Report
BACKGROUND & DISCUSSION
The City recently prevailed in the matter of Michael Laurent v. City of Sunnyvale, Case No. 19CV355846 in Santa Clara County Superior Court. The matter involved a case brought by Plaintiff Michael Laurent, a former City employee working in the Library and Recreation Services Department, who made claims of discrimination, failure to provide a reasonable accommodation, retaliation, failure to engage in the interactive process, and failure to prevent discrimination and retaliation. The case was set for trial four times since October 2023, but did not proceed to trial until April 2025 because no courtroom was available. The trial began on April 7, 2025, and concluded on May 5, 2025, with a jury verdict in favor of the City.
Steven P. Shaw and Ivan Delventhal are attorneys with the law firm of Sloan Sakai Yeung & Wong LLP (“Sloan Sakai”) who led the City’s defense. The firm specializes in municipal employment defense. Mr. Shaw and Mr. Delventhal are part of the firm’s litigation group that handles litigation, mediations, arbitrations, and trials for municipal clients throughout California. Before engaging Sloan Sakai, the City Council previously authorized the City Attorney to retain another law firm, Atkinson, Andelson, Loya, Ruud & Romo (RTC No. 23-0705) to handle the defense of this matter. The City Council also authorized the initial outside counsel agreement with Sloan Sakai (RTC No. 24-0211).
Approval is requested for a Second Amendment to the Outside Counsel Agreement to allow for an additional $100,000 in legal expenses associated with the protracted trial and any post-trial work, for a new not-to-exceed amount of $400,000. The City’s legal fees and costs in this case exceed $800,000 (including amounts paid to prior law firms). The City’s risk pool (California Joint Powers Risk Management Authority) will reimburse the City for its total expenditures over $500,000 when the case closes.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within 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
Funds are available for outside legal counsel in the General Fund under Program 10100 - Comprehensive Legal Services and within the Legal Contingency allocation in Fund 7080 - Liability and Property Insurance Internal Service Fund, which is funded through transfers from other funds in the form of internal service charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Attorney to execute a First Amendment to the Legal Services Agreement, in substantially the same form as Attachment 1 to the report, with the law firm of Sloan, Sakai, Yeung & Wong, LLP to increase the contract amount by $100,000, for a total new not-to-exceed contract amount of $400,000.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Anais Martinez Aquino, Senior Assistant City Attorney
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Rebecca L. Moon, City Attorney
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. (Draft) First Amendment to Legal Services Agreement