Staff ReportPREPARED BY: VILCIA RODRIGUEZ
Human Resources Analyst
Reviewed by: Assistant Town Manager Town Attorney Finance
S:\COUNCIL REPORTS\2016\06-21-16\Renne Sloan Holtzman Sakai\Staff Report - Renn Sloan FINAL.doc
MEETING DATE: 06/21/16
ITEM NO: 7
COUNCIL AGENDA REPORT
DATE: JUNE 6, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN SECOND AMENDMENT
TO THE PROFESSIONAL SERVICES AGREEMENT WITH RENNE SLOAN
HOTZMAN SAKAI TO EXTEND THE CONTRACT FOR ONE YEAR AND TO
INCREASE TOTAL COMPENSATION BY AN ADDITIONAL $50,000 TO
PERFORM LABOR RELATIONS AND EMPLOYMENT MATTERS
RECOMMENDATION:
Authorize the Town Manager to execute a third amendment to the professional services agreement with
Renne Sloan Hotzman Sakai to extend the contract for one year and to increase total compensation by an
additional $50,000 to perform labor relations and employment matters.
BACKGROUND:
The current contract between the Town and Renne Sloan Holtzman Sakai LLP has been in place in July
1, 2014 through June 30, 2016 to provide employment relations services such as labor negotiations,
classification, and compensation (Attachment 1). Renne Sloan Holtzman Sakai was selected as a sole
source provider for its specialized services. In March 2016, the Town amended the agreement to
increase the contract amount by $30,000 for a total contract amount not to exceed $45,000. A one year
contract extension through June 30, 2017, as well as an increase in the contract amount by $50,000 for a
total contract amount of $95,000 is necessary for Renne Sloan Holtzman Sakai LLP to continue to assist
the Town with in progress labor negotiations without interruptions while staff conducts a formal request
for qualifications (RFQ) process (Attachment 1).
DISCUSSION:
The Town has three bargaining unions: the Town Employees’ Association (TEA); American Federation
of State, County and Municipal Employees (AFSCME); and the Police Officers’ Association (POA).
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AMENDMENT TO THE
CONSULTING SERVICE AGREEMENT WITH RENNE SLOAN HOTZMAN SAKAI
DATE: JUNE 6, 2016
DISCUSSION (cont’d):
The memoranda of agreements with the TEA and AFCSME expire on June 30, 2016, and on September
30, 2016 with the POA. Currently, the Town is in labor negotiations with all three Town bargaining
unions.
The Town planned to conduct a formal request for proposals (RFQ) before the expiration of the current
contract, but due to staff transition in the Human Resources Department, this has not been feasible.
Staff is requesting a one year contract extension through June 30, 2017 to allow staff sufficient time to
conduct a formal RFQ process.
CONCLUSION:
Under the existing contract, Renne Sloan Hotzman Sakai LLP has been highly effective in assisting the
Town with complex labor relations issues and labor negotiations support. Staff recommends that Renne
Sloan Hotzman Sakai LLP continue to provide legal consulting services around labor relations and
employment matters for an additional year, under the same terms as the original contract. This
continuation will minimize disruption with in progress labor negotiations, and will allow Town staff to
conduct a competitive bid process.
COORDINATION:
This report was coordinated with following departments: Finance Department and the offices of the
Town Manager and Town Attorney.
FISCAL IMPACT:
Agreement amendment amount of $50,000 for FY 2016/17 is included in the Human Resources
Department operating budget.
ENVIRONMENTAL ASSESSMENT:
This item is not a project defined under CEQA, and no further action is required.
Attachments:
1. Proposed Second Amendment to the Agreement
SECOND AMENDMENT TO AGREEMENT
This SECOND AMENDMENT TO AGREEMENT is dated for identification this 13 day of
June, 2016 and amends that certain CONSULTANT LEGAL SERVICES AGREEMENT dated July
1, 2014, made by and between the Town of Los Gatos, ("Town,") and RENEE SLOAN
HOLTZMAN SAKAI, ("Consultant.")
RECITALS
A. Town and Consultant entered into a Consultant Services Agreement on July 1, 2014,
("Agreement"), a copy of which is attached hereto and incorporated by reference as
Attachment 1 to this Amendment.
B. The Town and Consultant entered into a First Amendment to Agreement on March 28,
2016, a copy of which is attached hereto and incorporated by reference as Attachment 1.
C. The Town desires to extend the contract through June 30, 2017.
AMENDMENT
1. Section 2.2 "Time of Performance" of the Agreement is hereby amended to provide that
the term of the Agreement is for a period of one year, July 1, 2016 through June 30, 2017.
2. Section 2.6 Compensation is amended to read as follows:
Compensation by the Town for the Consultants professional services shall increase by Fifty
Thousand ($50,000) for a total amount not exceed Ninety Five Thousand ($95,000),
inclusive of all cost.
3. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.
Town of Los Gatos CONSULTANT
By: By:
Laurel Prevetti, Town Manager Charles D. Sakai, Managing Partner
Renne Sloan Holtzman Sakai
Department Approval:
Human Resources Department
Approved as to Form:
Robert Schultz, Town Attorney
1
Attachment 1
tt.-.Pfittt DEPARTMENT
At* Zk•t of ____
FIRST AMENDMENT TO AGREEMENT
This FIRST AMENDMENT TO AGREEMENT is dated for identificationLII*2-0 day of
March, 2016 and amends that certain CONSULTANT LEGAL SERVICES AGREEMENT dated
July 1, 2014, made by and between the Town of Los Gatos ("Town") and RENNE SLOAN
HOLTZMAN SAKAI ("Consultant").
RECITALS
A. Town and Consultant entered into a Consultant Services Agreement on July 1, 2014,
("Agreement"), a copy of which is attached hereto and incorporated by reference as
Attachment 1 to this Amendment.
AMENDMENT
1. Section 2.6 Compensation is amended to read as follows:
Compensation by the Town for the Consultant's professional services shall increase by
Thirty Thousand ($30,000) for a total amount not to exceed Forty Five Thousand ($45,000),
inclusive of all cost.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.
Town of Los Gatos
By:
CONSULTANT
By:
Laurel Prevetti, Town Manager Charles D. Sakai, ' anaging Partner
Renne Sloan Holtzman Sakai
Departm t Approval:
l
Hum n Resources Dep ��%Nment
Approved as to Foil.
s'1:` _
4110
Rsbert Schultz. To
rney
Attachment 1
MEMORANDUM
DATE: November 10, 2014
TO: Robert Schultz, Town Attorney
FROM: Rumi Fortillo, Human Resources Director
SUBJECT: Sole Source Approval by Attorney: Renee Sloan Holtzman Sakai
BACKGROUND:
The Town has contracted with Renne Sloan Holtzman Sakai law law firm since 2010 to provide
employment relations services to include employment matters such as negotiations,
classification, and compensation. They are familiar with our standards and have proven to be the
most qualified for said services; staff recommends that Renne Sloan Holtzman Sakai provide this
service to the Town.
Recommend Bv:
(ifibj1D!L(
Date: !
Rob: Please review. sign document. and return to Clerk Department.
Approved as to Form:
Robert Schultz, T
torney
Date:
A.+y ytYr►eni' ,y
CLERK t) 'PA NT
AGR jij, i
ilf}i
AGREEMENT FOR CONSULTANT SERVICES taRD
RLC
THIS AGREEMENT is made by and between TOWN OF LOS GATOS a Cdl'
iimunieipal
corporation, ("Town") and RENNE SLOAN HOLTZMAN SAKAI , ("Consultant"), whose address
is 350 SANSOME STREET, SUITE 300, SAN FRANCISCO, CA 94104. This Agreanag is made
with reference to the following facts. This contract will rain in effect from July 1, 2014 to June
30, 2016.
I. RECITALS
1.1 The Town desire to engage Consultant to provide consulting services in connection with
labor relations and employment manes because of Consultant's experience and
qualifications to perform the desired work.
1.2 The Consultant represents and affirms that it is qualified and willing to perform the desired
work pursuant to this Agmemcvt,
7I. AGREEMENT'S
2.1 Scope of Services, Consultant shall provide the followingservices:
advice in connection with labor relations and employment representationingnenegotiations,
add
classification and compensationA ymettt matters, including aegotiatiotls,
advice and negotiations support.
2.2 Time_of Performance. Consultant shall perform the services described in this agreement as
follows: July 1, 2014 through June 30, 2016.
2.3 Cotttplieneae with Laws. The Consultant shall 1 with all
ordinances, and regulations of Governing federal, state and local laws. Consultant
tepresents and warrants to Town that it has all licenses, permits, qualifications and
approvals of whatsoever nature which are legally required for Consultant to practice its
profession. Consultant shall maintain a Town of Los Gatos business license puntuant to
Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employingor en a
necessaryto engaging all persons
perform the services undo this Agreement.
2.5 lnfomati. .. Handlin . All documents furnished to Consultant by the Town and all
reports and supportive data prepared by the Consultant under this
Agment are the
Town's property and shall be delivered to the Town upon the completiont f Consultant's
services or at the Town's written request. All reports, information, data, and exhibits
prepared or assembled by Consultant in connection with the performance of its services
pursuant to this Agreement are confidential until released by the Town to the public, and the
Consultant shall not make any of the these documents or information available to any
individual or organization not employed by the Consultant or the Town without the written
consent of the Town before such release. The Town acknowledges that the reports to be
prepared by the Consultant pursuant to this Agreement are for the purpose of evaluating a
defined project, and Town's use of the information contained in the reports prepared by the
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Page 0 of6
Consultant in oonneo<son with other projects shall be solely at Town's risk, unless
Consultant expressly consents to such use in writing.. Town further agrees that it will not
appropriate any methodology ar technique of Consultant which is and has been confirmed
in writing by Consultant to be a trade secret of Consultant.
2.6 csonggimign. Compensation for Consultant's professional services S15,000, inclusive of
all ems. Payment shall be based upon Town approval of tech task.
2.7 Dining. Billing shall be monthly by invoice within thirty (30) days of then resndetittg of the
service and shall be accompanied by a detailed explanation of the work performed by whom
at what rate and on what date. Also, plans, specifications, documents or other pertinent
materials shall be submitted for Town review, even if only in partial or draft form.
Payment shall be net thirty (30) days. All invoices and statements to the Town Alt be
addressed as follow:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-O655
2.8 Availability of lteconds. Consultant shall maintain the renrds supporting this billing for
not less than three years following completion of the weak under this Agreement.
Consultant shall make these rseu✓ords available to authorized personnel of the Town at the
Consultant's offices during business hours upon written request of the Town.
2.9 Assianabi itv and ; tabaentra tiug. The services to be perforated under this Agreement are
unique and personal to the Consultant No portion of these services shall be Resigned or
subcontracted without the written consent of the Town.
2.10 fndepentent CCntraetgr. It is understood that the Consultant, in the parilumattee of the
work and services agreed to be performed, shall act as and be an independent contractor and
not an agent or employee of the Town, As an independent contractor he/she shall not obtain
any rights to retirement benefits or other benefits which accrue to Town employee(s). With
prior written consent, the Consultant may perform some obligations under this Agreement
by subcontracting, but may not delegate ultimate responsibility for performance or assign or
trnnsfer interests under this Agreement. Consultant agrees to testify in any litigation brought
regarding the subject of the work to be performed under this Agreement, Consultant shall
be compensated for its costs and expenses in preparing for, traveling to, and testifying in
such mattes et its then current hourly rates of compensation, unless such litigation is
brought by Consultant or is based on allegations of Consultanrs negligent performance or
wrongdoing.
2.11 Conflict of lntereest. Consultant understands that its professional responsibilities are solely
to the Town. The Consultant has and shall not obtain any holding or interest within the
Town of Los Gatos Consultant has no business holdings or agreements with any individual
N:'MASTERIAGREEMEWfS/AgvocmeniTesr.,lawAg;,cr timeurCnasult vivesx►f
Page l of 6
member of the Staff or management of the Town or its representatives nor shall it eater into
any such holdings or agreements. In addition, Consultant warrants that it does not presently
and shall not acquire any direct or indirect intermit adverse to those of the Town in the
subject of this Agreement, and it shall immediately disassociate itself from such an interest,
should it discover it has done so and shall, at the Town's sole discretion, divest itself of such
interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it
does not employ a parson having such an interest in this performance of this Agreement. If
after employment of a person, Consultant discovers it has employed a parson with a dire t
or indirect interest that would conflict with its performance of this Agreemean, Consultant
shall promptly notify Town of this employment relationship, and shall, at Mc Town's sole
discretion, sever any such employment relationship.
2.12 Ewa! Employment Opportunity. Consultant warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex, color,
race, marital status, sexual orientation, ancestry, physical or mental disability, national
origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
ID. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insuranne:
Consultant agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: one million dollars ($1,000,000) combined single limit
per occurrence for bodily injury, personal injury and property damage.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring hitener and his./her stab' to
an amount not less than one million dollars (51,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Consultant shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Conaultacnt agrees that all
certificates and endorsements are to be received and approved by the Town
beforc work commences.
iv. Consultant agroes to have and maintain, for the duration of the contract,
professional liability insurance in amounts no: less than $1,000,000 which is
sufficient to insure Consultant for professional errors or omissions in the
pertormance of the particular scope of work under this agreement.
General Liability:
N:iMASTERJAGREPAFtii'SIA rce+nwtTempta;clAgreeffsmririv,CoasultantSaniccutt
Page 2 of 6
The Town, its officers, officials, employees and volunteers are to be covered
as insured es respects: liability arising out of activities performed by or Oil
behalf of the Consultant; products and completed operations of Consultant,
premises owned or used by the Consultant. This requirement does not apply
to the professional liability insurance required for professional errors and
omissions.
ii. The Consultant's insurance coverage shall be primary insurance as respects
the Town, its officers, officials, employees and volunteers. Any insurance or
self -insurances maintained by the Town, its ofl;ican, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall not
contribute with it,
Any failure to comply with reporting provisions of the policies shall not
aid coverage provided to the Town, its officers, officials, employees or
volunteers,
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage weall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
tunes during the term of this agreement with the Town Cie&
3.3 Workers' Compensation. In addition to these policies, Consultant shall have and maintain
Worm' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the required
Workers' Compensation insurunce for their respective employees.
3.4 lndexnrtifieatipn, The Consultant shall save, key, hold harmless and indemnify and defend
the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of
piefonni ng work which may be occasioned by a willful or negligent act or omissions of the
Consultant, or any of the Consultant's officers, employees, or agents or any subconsultant.
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IV. GENERAL TERMS
4. i Waiver. No failure on the pan of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
des waiver of a brew or default under this Agreement constitute a continuing waiver of a
subsequent breach of the same or any other provision of this Agreement
4.2 Governing Law. This Agreetnent, regardless of where executed, shall he governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Aare. The Town and the Consultant shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written notice
of termination. In the event of termination, the Consultant shall deliver to the Town all
plans, files, documents, reports, performed to date by the Consultant. In the event of such
termination, Town shall pay Consultant an amount that bears the same ratio to the
maximum contract }rice as the work delivered to the Town bears to completed services
contemplated under this Agreement, unless such termination is made for cause, in which
event, compensation, If any, shall be adjusted in light of the particular faces and
circumstances involved in such termination,
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Consultant,
4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorneys fees, including costs of appeal.
4.6 . Any notice required to be given shall be deemed to be dulyand properly P P Y SiVen if
mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Clerk
110 E. Main Strom
Los Gatos, CA 95030
or personally delivered to Consultant
Consultant designates in writing to Town.
Renne Sloan Holtzman Sakai LLI'
Attn: Sherry Kathleen Sly
350 Sansome Street, Suite 300
San Francisco, CA 94104
to such address or such other
address as
4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
tcrims and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attaclunents or other writings.
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4.8 Entke Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
Town of Los Gatos by: Consultant, by:
Greg Larson, Town Manager
mended
Rurr ;Portil10
Hum Resources Director
Approved as to Form;
Charles D. Sakai, Managing Partner
Renne Sloan Holtzman Sakai
4•iMAS1 .Rt AGREEMENTS AgrcenIcntTempiatc 'Agrccmc tfor( onsuluntSerkices fit
Page 5 of 6
MEMORANDUM
DATE: June 6, 2016
TO: Robert Schultz, Town Attorney
FROM: Laurel Prevetti, Town Manager
SUBJECT: Sole Source Approval by Attorney: Renne Sloan Holtzman Sakai
BACKGROUND:
The Town has contracted with Renne Sloan Holtzman Sakai law law firm since 2010 to provide
employment relations services to include employment matters such as negotiations,
classification, and compensation. They are familiar with our standards and have proven to be the
most qualified for said services; staff recommends that Renne Sloan Holtzman Sakai provide this
service to the Town.
Recommend By:
Laurel Prevetti, Town Manager Date:
Rob: Please review, sign document, and return to Clerk Department.
Approved as to Form:
Robert Schultz, Town Attorney Date: