SR - AGR-6248.1 - LEGAL SERVICES LITIGATION DEFENSE1. SUBJECT
First Amendment to Attorney Services Agreement with the law firm of Kutak Rock LLP to
provide for an additional $150,000 for legal services related to litigation defense for a total
amount not to exceed $250,000.
2. SUMMARY
The City retained Kutak Rock LLP ( "Kutak ") to provide services in connection with litigation
defense in the matter of Sergio Vargas- Ludwig v. City of Orange, et. al. and are in the process of
also retaining law firm in the matter of Herco v. City of Orange.
1 3. RECOMMENDED ACTION I
1. Authorize the appropriation of $150,000 from the Liability unreserved fund balance to
expenditure account number 740.0301.51600.00000, Liability -Legal Services; and
2. Approve and authorize the Mayor and City Clerk to execute the First Amendment to
Attorney Services Agreement with Kutak Rock LLP.
14. FISCAL IMPACT
Upon appropriation, funds will be available to cover the cost of the agreement as follows:
740.0301.51600.00000 Liability -Legal Services $150,000
5. STRATEGIC PLAN GOAL(S)
1. Be a fiscally healthy community
Strategies:
b) Expend fiscal resources responsibly.
ITEM # 3-_1 1 7/12/16
6. GENERAL PLAN IMPLEMENTATION
Not Applicable.
7. DISCUSSION and BACKGROUND
The City has retained the law firm of Kutak Rock LLP to provide legal services with respect to
litigation defense in the matter of Sergio Vargas- Ludwig v. City of Orange, et. al. and a second
matter Herco v. City of Orange. While the City Attorney's Office does handle most tort liability
matters, the City contracts with outside counsel when the complexity or staff time burden
requires such. These litigation matters involve allegations of serious injury with numerous
parties and will be very time consuming for our in -house legal staff which is why outside counsel
is being retained.
18. ATTACHMENTS
• First Amendment to Attorney Services Agreement
ITEM # 2 7/12/16
CITY COUNCIL MINUTES JULY 12, 2016
3. CONSENT CALENDAR (Continued)
3.5 Award of Consultant Services Agreement to Annealta Group for as- needed
Construction Inspection Services. (A2100.0; Agr -6365)
ACTION: Awarded a contract to Annealta Group, and authorized the Mayor and City Clerk
to execute on behalf of the City.
3.6 Number not used.
3.7 First Amendment to Attorney Services Agreement with the law firm of Kutak Rock
LLP to provide for an additional $150,000 for legal services related to litigation
defense for a total amount not to exceed $250,000. (A2100.0; Agr -6248)
ACTION: Authorized the appropriation of $150,000 from the Liability unreserved fund
balance to expenditure account number 740.0301.51600.00000 Liability -Legal Services;
and approved and authorized the Mayor and City Clerk to execute the First Amendment to
Attorney Services Agreement with Kutak Rock LLP.
3.8 Lease Agreement with the East Orange County Water District to ground lease the
McPherson Resource Center located at 210 N. McPherson Road. (A2100.0; Agr -6366)
ACTION: Approved the Lease Agreement between the City of Orange and East Orange
County Water District; and authorized the Mayor to execute and the City Clerk to attest to
the Lease Agreement on behalf of the City.
APPROPRIATIONS
3.9 Appropriation of Donation from the Orange Public Library Foundation (OPLF) of
$30,000. (C2500.I)
ACTION: 1) Accepted into the City's revenue budget a $30,000 donation from OPLF into
revenue Account No. 100.2001.48390.19322 (Library Foundation Donations); and 2)
Appropriated the donation into the following expenditure accounts:
100.2001.53301.19322 - OPLF (Book Budget) $13,500
100.2004.55131.19322 - OPLF (Furniture & Machinery -Tech) $5,000
100.2016.53340.19322 — OPLF (Craft Supplies- Adult) $1,000
100.2016.55131.19322 - OPLF (Furniture & Machinery - Adult) $7,500
100.2017.51670.19322 — OPLF (Other Professional & Consulting) $3,000
$30,000
BIDS
3.10 Bid No. 167 -02; Approval of plans and specifications, and authorization to advertise
for bids for construction of Fiscal Year 2015 -16 (FY16) Community Development
Block Grant (CDBG) Alley and Street Improvements Project: Highland
Neighborhood Streets and Alleys. (S4000.S.7)
ACTION: Approved plans and specifications and authorized advertising for bids for the
CDBG FY16 Alley and Street Improvements Project.
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