Subject:  Legal Services Agreement

 

RECOMMENDATION

 

Adoption of a resolution authorizing the City Attorney to execute the Second Amendment to the legal services agreement with McCutchen Doyle Brown & Enersen to increase the compensation by $200,000 for a total not to exceed $525,000.

 

BACKGROUND

 

McCutchen Doyle Brown and Enersen (“MDBE”) 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 current agreement was entered into on April 21, 1998 for a maximum compensation of $175,000 and was amended in August 2000 for a maximum compensation not to exceed $325,000.

 

ANALYSIS

 

The maximum compensation in the current agreement has nearly been expended for services rendered by MDBE over the past year.

 

Staff anticipates that an additional $200,000 will be needed to cover expenses for the next year.  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

·        Any legal consulting, as needed

 

v     Acquisitions/Dispositions:

·        Preparation and/or review of purchase and sale agreements

·        Preparation and/or review of all closing and escrow documents

·        Formulation of title holding company

 

v     Other Legal:

·        Special projects and research

·        Unexpected legal situations

 

MDBE 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 9th 10th meetings. 

 

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.

 

BUDGET REFERENCE

 

Fund:                            Federated Retirement Fund

                                    Police and Fire Retirement Fund

Amount:                       $200,000

Budget Document:        2001-2002 Operating Budget

                                    Pages 1006-1007

 

 

EDWARD F. OVERTON

Secretary, Board of Administration