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Staff Report PREPARED BY: ROBERT SCHULTZ TOWN ATTORNEY 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: 12/19/2017 ITEM NO: 5 DATE: DECEMBER 10, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: AUTHORIZE ADDITIONAL COMPENSATION FOR LEGAL SERVICES IN AN AMOUNT OF $35,000 FOR LITIGATION DEFENSE IN THE MATTER OF EDEN HOUSING INC., SUMMERHILL HOMES LLC, AND GROSVENOR USA LIMITED V. TOWN OF LOS GATOS FOR A TOTAL CONTRACT NOT TO EXCEED AMOUNT OF $135,000 RECOMMENDATION: Authorize additional compensation for legal services in an amount of $35,000 for litigation defense services in the Matter of Eden Housing Inc., Summerhill Homes LLC, and Grosvenor USA Limited v. Town of Los Gatos for a total contract not to exceed amount of $135,000. BACKGROUND: In October 2016, the Town Council authorized the Town Attorney and Town Manager to enter into an agreement with the law firm Richards, Watson, and Gershon to provide litigation defense services in the Matter of Eden Housing Inc., Summerhill Homes LLC, and Grosvenor USA Limited v. Town of Los Gatos for a total contract not to exceed amount of $100,000. DISCUSSION: The Town Attorney’s Office is seeking Town Council approval for authorization for an additional amount of $35,000 for a total sum of $135,000 for litigation defense services in the matter of Eden Housing Inc., Summerhill Homes LLC, and Grosvenor USA Limited v. Town of Los Gatos. The additional $35,000 was needed to oppose the Petitioners’ Motion for Attorney’s Fees and Costs and to prepare the Return of the Writ for the Court. PAGE 2 OF 2 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A FIRST AMENDMENT TO THE AGREEMENT WITH RICHARDS, WATSON, AND GERSHON TO PROVIDE ADDITIONAL COMPENSATION FOR LEGAL SERVICES IN AN AMOUNT OF $35,000 FOR A TOTAL AGREEMENT AMOUNT NOT TO EXCEED $135,000 DECEMBER 10, 2017 CONCLUSION: The requested increase will allow for the payment of all legal services related to the completed North Forty litigation. FISCAL IMPACT: Funds for the services will be requested during the Town’s mid -year review. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.