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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