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HomeMy WebLinkAboutCC RESO 2012-31• • • RESOLUTION NO. 2012 — 31 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO AGREEMENT FOR LEGAL SERVICES BY AND BETWEEN THE CITY OF NATIONAL CITY, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, AND MAZZARELLA LORENZANA, LLP, FOR THE NOT -TO -EXCEED AMOUNT OF $200,000, FOR A TOTAL NOT -TO -EXCEED AMOUNT OF $250,000 WHEREAS, the City of National City ("City"), the Community Development Commission of the City of National City ("CDC"), and the law firm of Mazzarella Lorenzana, LLP (the "Firm") entered into an agreement for legal services, effective November 21, 2011, wherein the Firm agreed to provide legal services to pursue indemnity claims and other theories of recovery to minimize or eliminate the pending liability of approximately two -million dollars ($2,000,000) in the case entitled Community Youth Athletic Association v. CDC, of al. (SDSC Case No. 37-2007-00076404-CU-EI-CTL), in the amount of $50,000, and subject to the terms of that agreement (the "Agreement"); and WHEREAS, the estimated cost of pursuing the case through trial is $250,000. This estimated cost amounts to less than ten percent (10%) of the total potential liability, which consists of the pending $2,000,000 liability, currently on appeal, the litigation costs already incurred and continuing in that other suit, and the potential interest on that award; and WHEREAS, the CDC has an obligation under ABx1 26 to minimize liabilities, and the pursuit of indemnity claims is consistent with and in furtherance of that obligation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the First Amendment to Agreement by and between the City of National City, the Community Development Commission of the City of National City, and Mazzarella Lorenzana, LLP, for the not -to -exceed amount of $200,000 to provided legal services to minimize an existing liability of the Community Development Commission of the City of National City by pursuing indemnity claims, for a total not -to -exceed amount of $250,000. Said First Amendment to Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 31st day of Janua , 012. ATTEST: Mic -el R. Dalla, ity Clerk Ron Morrison, Mayor AP'"OV_I AS TO FORM: CI -.ia Galva City Attorn Passed and adopted by the Council of the City of National City, California, on January 31, 2012 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California Clerk of the City f Nati onal City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2012-31 the City of National City, California, passed and adopted by the Council of said City on January 31, 2012. City Clerk of the City of National City, California By: Deputy