Loading...
HomeMy WebLinkAboutItem 2g: Approve Additional Funding for Legal FeesROPER MINA 21192 DATE: May 7, 2013 TO: Honorable Mayor and City Council STAFF REPORT Administrative Services Department FROM: Hue C. Quach, Administrative Services Director By: Heather McDowell, Senior Human Resources Analyst SUBJECT: APPROVE AN INCREASE OF $40,000 IN THE AGREEMENT WITH LIEBERT CASSIDY WHITMORE TO FUND UNANTICIPATED PERSONNEL - RELATED LEGAL FEES Recommendation: Approve SUMMARY On June 19, 2012, the City Council authorized the City Manager to execute an agreement for personnel - related legal services with Liebert Cassidy Whitmore for Fiscal Year 2012 -13 in an amount not to exceed $42,000. During this past Fiscal Year, the City has incurred legal fees for various unanticipated personnel - related matters wherein the budgeted legal fees were exceeded. It is recommended that the City Council authorize the reallocation of unused funds in other areas of the Department budget, in the amount of $40,000, to cover the additional expenses and satisfy payment of this obligation. DISCUSSION The City has utilized the legal services of Liebert Cassidy Whitmore for many years. The expertise and services they have provided have been invaluable and have been of great assistance to the Human Resources Division. Specifically, the depth and diversity of their experience, coupled with their ability to provide practical applications to the myriad of laws in this area has proven extremely helpful. Unfortunately, the City has seen an increase in personnel related matters that have caused substantial legal fees to represent the City and provide legal opinions and guidance to City staff. The increase in legal services was due to hiring outside counsel to conduct multiple in -depth personnel investigations related to violations of City Administrative policies, engaging in various Workers Compensation and /or ADA interactive process meetings, representation of the City at Human Resources Commission appeal hearings related to Appropriation for Personnel Legal Fees May 7, 2013 Page 2 of 2 disciplinary matters, and the provision of ongoing legal counsel to Human Resources staff and Department Executives. Although the City has seen an unprecedented amount of activity in relation to personnel matters in the last Fiscal Year, it is not likely that this will be an ongoing trend. It is anticipated that additional legal fees will be required for FY 2013 -14 due to upcoming labor negotiations, but those estimates have already been built into next year's budget proposal. Contained in the Administrative Services Department's budget are cost savings of $10,000 for labor relations and additional cost savings in salaries and benefits, which will cover the remainder of the balance due. FISCAL IMPACT The original budgeted amount for personnel legal fees in FY 2012 -13 was $42,000. It is estimated that the City will incur an additional $40,000 through the end of FY 2012 -13. The additional expenditure can be reasonably funded from unspent funds in the Labor Relations account, in the amount of $10,000, and the remainder from Salary & Benefits budget savings in this Department. RECOMMENDATION It is recommended that the City Council approve an increase of $40,000 in the agreement with Liebert Cassidy Whitmore and reallocate unspent funds within the Administrative Services Department to fund the additional personnel - related legal fees. Approved: Dominic Lazzar t City Manager