To: HONORABLE MAYOR AND                                           From:   Boards of Administration for

         CITY COUNCIL                                                               Federated City Employees’ Retirement System and Police & Fire Dept.

                                                                                                            Retirement Plan           

   Subject:   Legal Services Agreement                         Date:   10-29-03

 

RECOMMENDATION

 

Adoption of a resolution authorizing the City Attorney to execute the Fourth Amendment to the legal services agreement with Bingham McCutchen to increase the compensation by $125,000 for a total not to exceed $925,000.

 

 

BACKGROUND

 

Bingham McCutchen (Formally McCutchen Doyle Brown and Enersen) has been providing real estate legal services for the Boards of Administration of the Federated City Employees’ Retirement System and the Police and Fire Department Retirement Plan since 1992.  The Third Amendment to the Agreement was entered into on September 10, 2002 adding $275,000 to the maximum compensation for a total not to exceed $800,000.

 

 

ANALYSIS

 

A Request for Proposal (“RFP”) for real estate legal services was sent out in June 2003.  However, interviews of the finalists by the joint Federated and Police and Fire Real Estate Committee have been postponed until the execution of the exit strategy of the jointly owned properties has been completed.  It is anticipated that all phases of the exit strategy will be completed by the end of the year.

 

The maximum compensation in the current agreement has nearly been expended for services rendered by Bingham McCutchen over the past year.  Staff anticipates that an additional $125,000 will be needed to cover expenses until the RFP selection process has been completed.  Those expenses will include, but not limited to the following:

 

v     General Operational Legal:

·        Preparation of property management and leasing agreements

·        Handling legal matters pertaining to tenant delinquencies

·        Attending subcommittee and Board meetings as required

v     Acquisitions/Dispositions:

v     Other Legal:

·        Special projects and research

·        Unexpected legal situations

 

Bingham McCutchen has been providing real estate related legal services to the satisfaction of the Boards since 1992.  They are familiar with Plans’ properties, asset advisors, as well as our policies and procedures.  Both Boards at their October 2nd and 9th meetings approved this item. 

 

 

PUBLIC OUTREACH

 

Not applicable.

 

 

COORDINATION

 

Preparation of the contract amendment was coordinated with the Office of the City Attorney.

 

 

COST IMPLICATIONS

 

The expenses will be paid from the Federated and Police and Fire Retirement Funds.  In accordance with the Council’s Budget Strategy, this proposal meets the following General Principle:

Ø      Continue to emphasize prevention and expenditures that reduce costs to the City and our community.

 

 

BUDGET REFERENCE

 

Fund:                            Federated Retirement Fund

                                    Police and Fire Retirement Fund

Amount:                       $125,000

Budget Document:        Proposed 2003-2004 Operating Budget

                                    Page 822 – Federated

                                    Page 861 – Police and Fire

 

CEQA

 

Not a Project.

 

EDWARD F. OVERTON

Secretary, Boards of Administration