06 Staff Report.Fourth Amendment to Agreement with LCW
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/17/2023 ITEM NO: 6
DATE: October 5, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Fourth Amendment to a Special
Services Agreement with Liebert Cassidy Whitmore (LCW) to Increase
Compensation in the Amount of $150,000 for a Total Contract Amount Not to
Exceed $430,000; and Authorize an Expenditure Budget Adjustment in the
Amount of $117,283 from the Available General Fund Capital/Special Projects
Reserve
RECOMMENDATION:
Authorize the Town Manager to execute a fourth amendment (Attachment 1) to a special
services agreement with Liebert Cassidy Whitmore (LCW) to increase compensation in the
amount of $150,000 for a total contract amount not to exceed $430,000; and authorize an
expenditure budget adjustment in the amount of $117,283 from the available General Fund
Capital/Special Projects Reserve.
BACKGROUND:
In 2018, Liebert Cassidy Whitmore (LCW) was selected as a sole source provider for labor and
employment relations services, and services were continued in 2020 as the result of a
competitive interview process. LCW provides valuable negotiations and employee relations
legal guidance and has established a good rapport with the Town’s bargaining units.
On May 17, 2022, the Town Council authorized the Town Manager to execute a First
Amendment (Attachment 2) to the Special Services Agreement with LCW to extend the term
through June 30, 2024 and to increase compensation in the amount of $15,000 for a total
contract amount not to exceed $180,000.
PAGE 2 OF 3 SUBJECT: Fourth Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: October 5, 2023
BACKGROUND (continued):
On September 20, 2022, the Town Council authorized the Town Manager to execute a Second
Amendment (Attachment 3) to the Special Services Agreement with LCW to increase
compensation in the amount of $50,000 for a total contract amount not to exceed $230,000.
On September 19, the Town Council authorized the Town Manager to execute a Third
Amendment (Attachment 4) to the Special Services Agreement with LCW to increase
compensation in the amount of $50,000 for a total contract amount not to exceed $280,000.
DISCUSSION:
As mentioned in the staff report for the third amendment, cost estimates for LCW’s support for
the upcoming labor negotiations were still being developed at that time and a fourth
amendment would return to the Town Council for consideration. LCW estimates that $150,000
will be needed to provide legal services related to labor negotiations and employment relations
matters for the remainder of the fiscal year. The Town will be negotiating with each of the
three bargaining units: the Town Employees’ Association (TEA), the American Federation of
State, County and Municipal Employees (AFSCME), and the Police Officers’ Association (POA). It
is critical to have continuity of labor representation during negotiations.
CONCLUSION:
LCW has been highly effective in assisting the Town with labor negotiations and employment
relations support.
Staff recommends that that the Town Council authorize the Town Manager to execute a fourth
amendment to the special services agreement with LCW to increase compensation in the
amount of $150,000 for a total contract amount not to exceed $430,000 to continue providing
employment relations support through June 30, 2024 (Attachment 1).
FISCAL IMPACT:
The existing agreement is for $280,000. With this agenda item, there would be a total net
increase of $150,000 for a total contract amount not to exceed $430,000. While $32,717 of this
increase has already been included in the existing Human Resources Department budget, an
expenditure budget adjustment in the amount of $117,283 from the General Fund
Capital/Special Projects Reserve is necessary to cover the remaining amount.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
PAGE 3 OF 3 SUBJECT: Fourth Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: October 5, 2023
Attachments:
1. Fourth Amendment
2. First Amendment with Original Agreement
3. Second Amendment
4. Third Amendment