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12 Staff Report.Sixth Amendment to Agreement with LCW with Attachments PREPARED BY: Cheryl Parkman Human Resources Director 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: 08/06/2024 ITEM NO: 12 DATE: July 25, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Execute a Sixth Amendment to a Special Services Agreement with Liebert Cassidy Whitmore (LCW) to Update the Fee Schedule for Hourly Rates RECOMMENDATION: Authorize the Town Manager to execute a Sixth Amendment (Attachment 1) to a special services agreement with Liebert Cassidy Whitmore (LCW) to update the fee schedule for LCW hourly rates. 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. 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, 2023, the Town Council authorized the Town Manager to execute a Third Amendment (Attachment 4) to the Special Services Agreement with LCW to increase PAGE 2 OF 3 SUBJECT: Sixth Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: July 25, 2024 BACKGROUND (continued): compensation in the amount of $50,000 for a total contract amount not to exceed $280,000. On October 17, 2023, the Town Council authorized the Town Manager to execute a Fourth Amendment (Attachment 5) 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. On June 18, 2024, the Town Council authorized the Town Manager to execute a Fifth Amendment (Attachment 6) to the special services agreement with LCW to increase the compensation in the amount of $120,000 for a total contract not to exceed $550,000. DISCUSSION: The current agreement expires on June 30, 2025. The proposed update to the fee schedule has been provided by LCW to update the hourly rates for the different consultants that can be utilized by the Town for labor relations and human resources consultation services. LCW increased hourly rates for clients on July 1, 2024. This fee schedule update was provided to the Town after the Fifth Amendment was brought to Council on June 18th. This change does not result in an increase to the contract amount of $550,000. 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 Sixth Amendment to update the fee schedule to continue to utilize LCW’s services. FISCAL IMPACT: There is no fiscal impact to this change. Sufficient funds for this contract are already budgeted and this amendment does not increase the contract amount. Staff anticipates the existing funds will be sufficient. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Attachments: 1. Sixth Amendment 2. First Amendment with Original Agreement 3. Second Amendment 4. Third Amendment PAGE 3 OF 3 SUBJECT: Sixth Amendment to Agreement with Liebert Cassidy Whitmore (LCW) DATE: July 25, 2024 Attachments (continued): 5. Fourth Amendment 6. Fifth Amendment ATTACHMENT 1 SIXTH AMENDMENT TO AGREEMENT FOR SPECIAL SERVICES THIS SIXTH AMENDMENT TO AGREEMENT is entered into this ____ day of August, 2024, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Liebert Cassidy Whitmore, a Professional Corporation (“Attorney”), herein called the “Attorney.” RECITALS A. Town and Attorney entered into a Special Services Agreement from February 1, 2020, through February 1, 2022 (“Agreement”). B. Town and Attorney entered into a First Amendment to Agreement on May 17, 2022. C. Town and Attorney entered into a Second Amendment to Agreement on September 12, 2022. D. Town and Attorney entered into a Third Amendment to Agreement on September 19, 2023. E. Town and Attorney entered into a Fourth Amendment to Agreement on October 17, 2023. F. Town and Attorney entered into a Fifth Amendment to Agreement on June 18, 2024, AMENDMENT 1. The fee schedule associated with the hourly rates for the following consultant positions shall be increased to the following amounts: Partners $430.00 Senior Counsel $360.00 Associates $270.00 - $340.00 Labor Relations/Human Resources Consultant $280.00 Classification and Compensation Consultant $210.00 Paralegals $150.00 E-Discovery Specialists $175.00 Law Clerks $150.00 - $185.00 2. All other terms and conditions of the Agreement dated February 1, 2020, the First Amendment dated May 17, 2022, Second Amendment dated September 12, 2022, Third Amendment dated September 19, 2023, Fourth Amendment dated October 17, 2023, and Fifth Amendment dated June 18, 2024, remain in full force and effect. IN WITNESS WHEREOF, the Town and Attorney have executed the Fifth Amendment to Agreement as of the date indicated above. Town of Los Gatos: Attorney: By: By: Laurel Prevetti J. Scott Tiedemann, Managing Partner Town Manager Liebert Cassidy Whitmore ATTACHMENT 1 Department Approval: Cheryl Parkman Human Resources Director Approved as to Form: Gabrielle Whelan Town Attorney Attest: Wendy Wood Town Clerk ATTACHMENT 2 DocuSign Envelope ID: F709E150-B3B8-4C9B-994F-22D9C90698A1 LIEBERT CASSIDY WHITMORE FEE SCHEDULE Pmtners $415.00 Senior Counsel $345.00 Associates $230.00 -$325.00 Labor Relations/Human Resources Consultant $260.00 Paralegals $145.00 E-Discovery Specialists $145.00 Law Clerks $145.00 -$185.00 DocuSign Envelope ID F709E150-B3B8-4C9B-994F-22D9C90698A1 •AGR .;i.o. D.14? IHH ------ AGREEMENT FOR SPECIAL SERVICES This Agreement is entered into between the law firm of UEBERT CASSIDY WHITMORE, A Professional Corporation ("Attorney"), and the TOWN OF LOS GATOS, A Municipal Corporation ("Town"). t.Conditions This Agreement will not take effect, and Attorney will have no obligation to provide services, until Town returns a properly signed and executed copy of this Agreement. 2.Attorney's Services Attorney agrees to provide Town with consulting, representational and legal services pertaining to employment relations matters, including representation in negotiations and in administrative and court proceedings, as requested by Town or otherwise required by law. 3.Fees, Costs, Expenses Town agrees to pay Attorney the sums billed monthly for time spent by Attorney in providing the services, including reasonable travel time. to-n..\.. co_:.npe--vi S cm oor1 -hi I vv �� 6v1a;n'o n Of-Th-LS .�c.e-e ' The cunent range of hourly rates for Attorney time is from Two Hundred Ten to l� V\ot e�c..ee& Three Hundred Eighty Dollars ($210.00 • $380.00). See Schedule I for a full Fee <Et, l(,ps; ooo. Schedule. Attorney reviews its hourly rates on an annual basis and, if appropriate, adjusts them effective July l. Attorney will provide the Town with written notification of any adjustment in the range of rates. Attorney bills its time in minimum units of one­ tenth of an hour. 9120460.1 LC00l-009 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 1 FIFTH AMENDMENT TO AGREEMENT FOR SPECIAL SERVICES THIS FOURTH AMENDMENT TO AGREEMENT is entered into this ____ day of June, 2024, by and between the Town of Los Gatos, State of California, herein called the “Town,” and Liebert Cassidy Whitmore, a Professional Corporation (“Attorney”), herein called the “Attorney.” RECITALS A. Town and Attorney entered into a Special Services Agreement from February 1, 2020, through February 1, 2022 (“Agreement”). B. Town and Attorney entered into a First Amendment to Agreement on May 17, 2022. C. Town and Attorney entered into a Second Amendment to Agreement on September 12, 2022. D. Town and Attorney entered into a Third Amendment to Agreement on September 19, 2023. E. Town and Attorney entered into a Fourth Amendment to Agreement on October 17, 2023. AMENDMENT 1. Total compensation by the Town for the Attorney’s services shall increase by an additional $120,000, not to exceed $550,000 over the course of the agreement. 2. The Town desires to extend the Agreement from July 1, 2024 through June 30, 2025. 3. All other terms and conditions of the Agreement dated February 1, 2020, the First Amendment dated May 17, 2022, Second Amendment dated September 12, 2022, Third Amendment dated September 19, 2023, and Fourth dated October 17, 2023 remain in full force and effect. IN WITNESS WHEREOF, the Town and Attorney have executed the Fifth Amendment to Agreement as of the date indicated above. Town of Los Gatos: Attorney: By: By: Laurel Prevetti J. Scott Tiedemann, Managing Partner Town Manager Liebert Cassidy Whitmore Department Approval: Katy Nomura Assistant Town Manager Approved as to Form: Gabrielle Whelan ATTACHMENT 1 Town Attorney Attest: Wendy Wood Town Clerk