HomeMy WebLinkAbout2012 CON CDC City of National City - Amendment #1 - Mazzarella Lorenzana LLP Legal Services - 1NOTE TO FILE
02-06-12
IN THE MATTER OF: Resolution of the City Council of the City of
National City authorizing the Mayor to execute a First
Amendment to the Agreement for Legal Services by and between
the City, CDC 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. Please note the
following:
A FULLY EXECUTED ORIGINAL AGREEMENT WAS
NEVER FILED WITH THE OFFICE OF THE CITY CLERK
ORIGINATING DEPARTMENT: CDC Housing & Grants
X City Attorney _ Human Resources
City Manager _ MIS
Community Svcs. _ Planning
Engineering _ Police
Finance Public Works
Fire
* City and CDC — original signatures / Firm — copy only
NTF
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
This Amendment to Agreement is entered into this 31'1day of January, 2012, by
and between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY"),
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL
CITY, a public body. corporate and politic, (the "CDC"), and MAZZARELLA
LORENZANA, LLP, (the "FIRM").
RECITALS
A. The CITY, the CDC and the FIRM (the "Parties") entered into an
agreement, 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, et 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").
B. 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. The CDC has an obligation under
ABx 126 to minimize liabilities, and the pursuit of indemnity claims is
consistent with and in furtherance of that obligation. The underlying suit
was based on and all related to the adoption of a redevelopment plan
amendment to allow the CDC to continue exercising its redevelopment
functions, including extension of the eminent domain authority conferred
upon redevelopment agencies.
C. The Parties desire to amend the Agreement to increase the not -to -exceed
amount of the Agreement by $200,000.
NOW, TI IEREFORE, the parties hereto agree the Agreement, shall be amended by
amending Article 4, Section B of the Agreement by increasing the not -to -exceed amount
by $200.000, for a total not -to -exceed amount of $250,000.
The parties further agree that with the foregoing exception, each and every term
and provision of the Agreement, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to
the Agreement on the date and year first above written.
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
NATIONAL_CITY
By:
Rd'n Morrison, Chairman
APP Fr) : S TO FORM:
ll
Claudia G va
CDC G ounsel
CITY OF NATIONAL CITY
By:
n Morrison, Mayor
APP VED AS TO FORM:
By:
laudia Silva
City A
First Amendmcrt In Agreement
MAZZARELLA LORENZANA, LLP
Luis Lorenzana, Esq.
- 2 - Mazzarella Larenzana, LI,P
and City of National Coy
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, et 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 Januaj - 012.
ATTEST:
Mic -el R. Dalla, ity Clerk
Ron Morrison, Mayor
AP ' OV_. AS TO FORM:
CI ' . is Gam va
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
a
I rk of the City f
City Clerk National 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
CALIF�d,R'N
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
ATCORpoR.AT> ? 1 Michael R. Dalia, CMC - City Clerk
619-336-4228 phone / 619-336-4229 fax
February 6, 2012
Mr. Mark Mazzarella
Mazzarella Lorenzana, LLP
550 West C Street, Suite 700
San Diego, CA 92101
Dear Mr. Mazzarella,
On January 31st, 2012, Resolution No. 2012-31 was passed and adopted by the
City Council of the City of National City and Resolution No. 2012-32 was passed
and adopted by the Community Development Commission of the City of National
City, authorizing execution of an Amendment to Agreement with Mazzarella
Lorenzana, LLP.
We are enclosing for your records certified copies of the above Resolutions and
a fully executed copy of the Amendment.
Sincerely,
Michael R. Della, CMC
City Clerk
Enclosures
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
- � 1
MEETING DATE: January 31, 2012 AGENDA ITEM NO. 1
'EM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute the First
Amendment to Agreement between the City of National City, the Community Development
Commission of the City of National City, and Mazzarella Lorenzana, LLP, to increase the not -to -
exceed amount by $200,000, for a total not -to -exceed of $250,000
PREPARED BY:
PHONE:
EXPLANATION:
Claudia Gacitua Silva DEPARTMENT:
Ext. 4222 APPROVED BY:
ity Attorney
The City, the CDC, and the law firm of Mazzarella Lorenzana, LLP (the "Firm") entered into a agre- ent,
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, et 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").
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. 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. The underlying suit was based on and related to the adoption of a
redevelopment plan amendment to allow the CDC to continue exercising its redevelopment functions, including
tension of the eminent domain authority conferred upon redevelopment agencies.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. 511-403-081-432-000 APPROVED: MIS
Tax Increment Fund/Risk Management/Liability Claim Cost
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
Finance
STAFF RECOMMENDATION:
Adopt resolution.
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
•st Amendment to Agreement
Proposed resolution
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
This Amendment to Agreement is entered into this 3151 day of January, 2012, by
and between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY"),
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL
CITY, a public body, corporate and politic, (the "CDC"), and MAZZARELLA
LORENZANA, LLP, (the "FIRM").
RECITALS
A. The CITY, the CDC and the FIRM (the "Parties") entered into an
agreement, 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, et 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").
B. 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. The CDC has an obligation under
ABxl 26 to minimize liabilities, and the pursuit of indemnity claims is
consistent with and in furtherance of that obligation. The underlying suit
was based on and all related to the adoption of a redevelopment plan
amendment to allow the CDC to continue exercising its redevelopment
functions, including extension of the eminent domain authority conferred
upon redevelopment agencies.
C. The Parties desire to amend the Agreement to increase the not -to -exceed
amount of the Agreement by $200,000.
NOW, THEREFORE, the parties hereto agree the Agreement, shall be amended by
amending Article 4, Section B of the Agreement by increasing the not -to -exceed amount
by $200,000, for a total not -to -exceed amount of $250,000.
The parties further agree that with the foregoing exception, each and every term
and provision of the Agreement, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to
the Agreement on the date and year first above written.
1
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
NATIONAL CITY
By:
Ron Morrison, Chairman
MAZZARELLA LORENZANA, LLP
By:
Mark Mazzarella, Esq.
By:
APPROVED AS TO FORM: Luis Lorenzana, Esq.
By:
Claudia G. Silva
CDC General Counsel
CITY OF NATIONAL CITY
By:
Ron Morrison, Mayor
APPROVED AS TO FORM:
By:
Claudia G. Silva
City Attorney
First Amendment to Agreement
- 2 - Mazzarella Lorenzana, LLP
and City of National City
RESOLUTION NO. 2012—
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 (CitV), the Community Development
Commission of the City of National City (CDC'), and the law firm of Mazzarella Lorenzana, LLP
(the"Firni) 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, et 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 January, 2012.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney