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Home My WebLink About2014 CON Best Best & Krieger - Legal Services Community Youth Athletic Center - Amendment #6SIXTH AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, AND BEST BEST & KRIEGER, LLP This Sixth Amendment to Agreement is entered into this 21 st day of November, 2014, by and between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY"), THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, a public body, corporate and politic, (the "SUCCESSOR AGENCY"), and BEST BEST & KRIEGER, LLP, (the "FIRM"). RECITALS A. The CITY, the SUCCESSOR AGENCY and the FIRM (the "Parties") entered into an agreement on October 9, 2010, ("the Agreement") wherein the FIRM agreed to provide legal services in the defense of the case entitled Community Youth Athletic Association v. All Persons Interested in the Matter of the Amendment to National City's Redevelopment Plan as Adopted by Ordinance 2007-2295, Case No. 37-2007-00076404-CU-EI-CTL, in the amount of $160,000, and subject to the terms of the Agreement. B. The Parties entered into the First Amendment to the Agreement on October 18, 2011, (the "First Amendment") to increase the not -to -exceed amount of the Agreement by $134,000, for a total Agreement not -to -exceed amount of $294,000. C. The Parties entered into a Second Amendment on May 15, 2012 to increase the not -to - exceed amount by $70,000 for a total not -to -exceed amount of $364,000. D. The Parties entered into a Third Amendment on October 30, 2012 to increase the not -to - exceed amount of the Agreement by $45,000 for a total not -to -exceed amount of $409,000. E. The Parties entered into a Fourth Amendment on September 3, 2013 to increase the not -to - exceed amount of the Agreement by $53,500 for a total not -to -exceed amount of $462,500. F. The Parties entered into a Fifth Amendment on February 18, 2014 to increase the not -to - exceed amount of the Agreement by $100,000 for a total not -to -exceed amount of $562,500. G. The Parties desire to amend the Agreement to increase the not -to -exceed amount of the Agreement by $225,000 for a total not -to -exceed amount of $787,500. H. The case remains on -going as it has been remanded to the trial court for further proceedings after appeal, which has necessitated the retention of experts, the detailed review of seven years' worth of legal bills involving entries by over twenty attorneys on petitioners' side, and the trial court has requested additional briefing regarding petitioners' request for approximately $2,400,000 in attorneys' fees, thus additional funding for continued legal representation remains necessary. On February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying, performing, and enforcing the enforceable obligations of the former redevelopment agencies. J. This Sixth Amendment will require the approval of the Oversight Board to the Successor Agency and the California Department of Finance prior to being effective. NOW, THEREFORE, the Parties agree that the Agreement entered into on October 9, 2010, and amended on October 18, 2011, May 15, 2012, October 30, 2012, September 3, 2013, and February 18, 2014 shall be amended by amending Article 3 (Compensation), Section C of the Agreement by increasing the not -to - exceed amount by $225,000 for a total not -to -exceed amount of $787,500. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 9, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first above written. SUCCESSOR AGENCY TO THE COMMUNITY BEST, BEST, & KRIEGER, LLP DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY By: Ron Morrison, airman APPROVED AS TO FORM: Bv: audia G. va Successor :ency Counsel CITY OF ►ii ONAL CITY By: R=.' Morrison, Mayor APPRA VED AS TO FORM: By: dia G. Silva City Attorn y Sixth Amendment to Agreement November 18, 2014 By azuu -ea�n Bruce Beach, Esq. 2 National City, Successor Agency, and Best Best & Krieger, LLP RESOLUTION NO. 2014 — 155 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SIXTH AMENDMENT TO THE AGREEMENT FOR LEGAL SERVICES BY BEST BEST & KRIEGER, LLP, FOR THE DEFENSE IN THE CYAC LEGAL CHALLENGE TO INCREASE THE NOT TO EXCEED AMOUNT BY $225,000 FOR A TOTAL AMOUNT OF $787,500 WHEREAS, on November 23, 2010, the City Council adopted Resolution No. 2010-254 approving an Agreement between the City of National City, the CDC, and Best Best & Krieger, LLP ("BB&K"), to provide legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation in the not to exceed amount of $160,000; and WHEREAS, on October 18, 2011, the City Council adopted Resolution No. 2011-229 approving the First Amendment to the Agreement that increased the not to exceed amount by $134,000, bringing the total not to exceed amount to $294,000; and WHEREAS, on May 15, 2012, the City Council adopted Resolution No. 2012-105 authorizing the Second Amendment to the Agreement in the amount of $70,000 for the on -going appeal process, for a total not -to -exceed amount of $364,000; and WHEREAS, on October 30, 2012, the City Council adopted Resolution No. 2012- 220 authorizing the Third Amendment to the Agreement in the amount of $45,000 for the on- going appeal process, for a total not -to -exceed amount of $409,000; and WHEREAS, on September 17, 2014, the City Council adopted Resolution No. 2013-134 authorizing the Fourth Amendment to the Agreement in the amount of $53,500 for the on -going appeal process, for a total not -to -exceed amount of $462,500; and WHEREAS, on February 18, 2014, the City Council adopted Resolution No. 2014-17 authorizing the Fifth Amendment to the Agreement in the amount of $100,000 for the on -going appeal process, for a total not -to -exceed amount of $562,500; and WHEREAS, the case remains on -going as it has been remanded to the trial court for further proceedings after appeal, which has necessitated the retention of experts, the detailed review of seven years' worth of legal bills involving entries by over twenty attorneys on petitioners' side, and the trial court has requested additional briefing regarding petitioners' request for approximately $2,400,000 in attorneys' fees, thus additional funding for continued legal representation remains necessary; and WHEREAS, this Sixth Amendment to the Agreement in the amount of $225,000 is necessary for the ongoing litigation, which will bring the total not -to -exceed amount to $787,500; and WHEREAS, the Sixth Amendment must also be approved by the Oversight Board and State Department of Finance prior to becoming effective. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Sixth Amendment to the Agreement with Best Best & Krieger, LLP ("BB&K"), to increase the not to exceed amount by $225,000, for a total not to exceed amount of $787,500, to cover legal services for the ongoing Community Youth Athletic Center ("CYAC") litigation. The Sixth Amendment to the Agreement is on file in the office of the City Clerk. Resolution No. 2014 — 155 Page Two PASSED and ADOPTED this 18th day of November, 2014. on Morrison, Mayor ATTEST: N � h el R. Dalia Mich ,'City Clerk PPROVED AS TO FORM: is Gacitu Sily City Attorn Passed and adopted by the Council of the City of National City, California, on November 18, 2014 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California CI rk of the City By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2014-155 of the City of National City, California, passed and adopted by the Council of said City on November 18, 2014. City Clerk of the City of National City, California By: Deputy of City National City, California CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 18, 2014 AGENDA ITEM Na 6 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Sixth Amendment to the Agreement for Legal Services between the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, the City of National City, and Best Best & Krieger, LLP, for the defense in the Community Youth Athletic Center legal challenge to increase the not to exceed amount by $225,000 for a total not -to -exceed amount of $787,500. PREPARED BY: Claudia Gacitua Silva PHONE: Ext. 4222 EXPLANATION: Please see attached staff report. DEPARTMENT: APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Funds are budgeted in Account 711-409-000-209-0000. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt proposed resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Staff report Sixth Amendment to the Agreement with BB&K for Legal Services Proposed resolution �,0‘,v\0\-A moo, ao\L\ ��S STAFF REPORT This matter is a result of the Community Youth Athletic Center ("CYAC") legal challenge to the 2007 Redevelopment Plan Amendment. In addition to the Plan Amendment challenge, the CYAC made other claims, including violations of the Public Records Act and due process. This lawsuit has been working its way through the legal system since the Fall of 2007. Judge Denton invalidated the 2007 Redevelopment Plan Amendment, found that the Public Records Act was not complied with when draft notes and consultant's documents were not provided, and found the CYAC was not provided due process because they did not have sufficient time to object to the plan amendment. The Court's award of attorney's fees totaling approximately two -million dollars ($2,000,000) was appealed to the 4th District Court of Appeals. The case remains on- going as it has been remanded to the trial court for further proceedings after appeal, and the trial court has requested additional briefing regarding petitioners' most recent request for approximately $2,400,000 in attorneys' fees (which does not include the amount of attorney time CYAC has spent on the latest legal issue), thus continued legal representation remains necessary. Given the number of years this case has spanned, an extensiveamount of legal work has been required to examine CYAC's attorneys' bills (involving entries by over twenty attorneys on petitioners' side) in light of the Court of Appeals ruling. The extensive bill review and supplemental briefings for the trail court has exceeded the previously authorized amounts. Bruce Beach and Rebecca Andrews of Best Best & Krieger, LLP ("BB&K") have been our outside counsel in this case. Given the nature and 7 year length of the case, additional funds in the amount of $225,000 are needed to fund the current opposition to the attorneys' fees motion. The Successor Agency and City Council have previously approved a total of $562,500 for legal services in this case. This Sixth Amendment to the Agreement in the amount of $225,000 is necessary to pay for the ongoing litigation, which will bring the total not -to -exceed amount to $787,500. This is anticipated to be the last amendment as the attorneys' fees motions are the last outstanding issues in this matter. The Sixth Amendment will also require the approval of the Oversight Board and State Department of Finance prior to becoming effective. SIXTH AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, AND BEST BEST & KRIEGER, LLP This Sixth Amendment to Agreement is entered into this 21' day of November, 2014, by and between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY"), THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY, a public body, corporate and politic, (the "SUCCESSOR AGENCY"), and BEST BEST & KRIEGER, LLP, (the "FIRM"). RECITALS A. The CITY, the SUCCESSOR AGENCY and the FIRM (the "Parties") entered into an agreement on October 9, 2010, ("the Agreement") wherein the FIRM agreed to provide legal services in the defense of the case entitled Community Youth Athletic Association v. All Persons Interested in the Matter of the Amendment to National City's Redevelopment Plan as Adopted by Ordinance 2007-2295, Case No. 37-2007-00076404-CU-EI-CTL, in the amount of $160,000, and subject to the terms of the Agreement. B. The Parties entered into the First Amendment to the Agreement on October 18, 2011, (the "First Amendment") to increase the not -to -exceed amount of the Agreement by $134,000, for a total Agreement not -to -exceed amount of $294,000. C. The Parties entered into a Second Amendment on May 15, 2012 to increase the not -to - exceed amount by $70,000 for a total not -to -exceed amount of $364,000. D. The Parties entered into a Third Amendment on October 30, 2012 to increase the not -to - exceed amount of the Agreement by $45,000 for a total not -to -exceed amount of $409,000. E. The Parties entered into a Fourth Amendment on September 3, 2013 to increase the not -to - exceed amount of the Agreement by $53,500 for a total not -to -exceed amount of $462,500. F. The Parties entered into a Fifth Amendment on February 18, 2014 to increase the not -to - exceed amount of the Agreement by $100,000 for a total not -to -exceed amount of $562,500. G. The Parties desire to amend the Agreement to increase the not -to -exceed amount of the Agreement by $225,000 for a total not -to -exceed amount of $787,500. H. The case remains on -going as it has been remanded to the trial court for further proceedings after appeal, which has necessitated the retention of experts, the detailed review of seven years' worth of legal bills involving entries by over twenty attorneys on petitioners' side, and the trial court has requested additional briefing regarding petitioners' request for approximately $2,400,000 in attorneys' fees, thus additional funding for continued legal representation remains necessary. I. On February 1, 2012, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying, performing, and enforcing the enforceable obligations of the former redevelopment agencies. J. This Sixth Amendment will require the approval of the Oversight Board to the Successor Agency and the California Department of Finance prior to being effective. NOW, THEREFORE, the Parties agree that the Agreement entered into on October 9, 2010, and amended on October 18, 2011, May 15, 2012, October 30, 2012, September 3, 2013, and February 18, 2014 shall be amended by amending Article 3 (Compensation), Section C of the Agreement by increasing the not -to - exceed amount by $225,000 for a total not -to -exceed amount of $787,500. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 9, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment to the Agreement on the date and year first above written. SUCCESSOR AGENCY TO THE CO1VI IUN1TY BEST, BEST, & KRIEGER, LLP DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY By: By: Ron Morrison, Chairman Bruce Beach, Esq. APPROVED AS TO FORM: By: Claudia G. Silva Successor Agency Counsel CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: By: Claudia G. Silva City Attorney Sixth Amendment to Agreement 2 National City, Successor Agency, November 18, 2014 and Best Best & Krieger, LLP RESOLUTION NO. 2014 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SIXTH AMENDMENT TO THE AGREEMENT FOR LEGAL SERVICES BY BEST BEST & KRIEGER, LLP, FOR THE DEFENSE IN THE CYAC LEGAL CHALLENGE TO INCREASE THE NOT TO EXCEED AMOUNT BY $225,000 FOR A TOTAL AMOUNT OF $787,500 WHEREAS, on November 23, 2010, the City Council adopted Resolution No. 2010-254 approving an Agreement between the City of National City, the CDC, and Best Best & Krieger, LLP ("BB&K"), to provide legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation in the not to exceed amount of $160,000; and WHEREAS, on October 18, 2011, the City Council adopted Resolution No. 2011-229 approving the First Amendment to the Agreement that increased the not to exceed amount by $134,000, bringing the total not to exceed amount to $294,000; and WHEREAS, on May 15, 2012, the City Council adopted Resolution No. 2012-105 authorizing the Second Amendment to the Agreement in the amount of $70,000 for the on -going appeal process, for a total not -to -exceed amount of $364,000; and WHEREAS, on October 30, 2012, the City Council adopted Resolution No. 2012- 220 authorizing the Third Amendment to the Agreement in the amount of $45,000 for the on- going appeal process, for a total not -to -exceed amount of $409,000; and WHEREAS, on September 17, 2014, the City Council adopted Resolution No. 2013-134 authorizing the Fourth Amendment to the Agreement in the amount of $53,500 for the on -going appeal process, for a total not -to -exceed amount of $462,500; and WHEREAS, on February 18, 2014, the City Council adopted Resolution No. 2014-17 authorizing the Fifth Amendment to the Agreement in the amount of $100,000 for the on -going appeal process, for a total not -to -exceed amount of $562,500; and WHEREAS, the case remains on -going as it has been remanded to the trial court for further proceedings after appeal, which has necessitated the retention of experts, the detailed review of seven years' worth of legal bills involving entries by over twenty attorneys on petitioners' side, and the trial court has requested additional briefing regarding petitioners' request for approximately $2,400,000 in attorneys' fees, thus additional funding for continued legal representation remains necessary; and WHEREAS, this Sixth Amendment to the Agreement in the amount of $225,000 is necessary for the ongoing litigation, which will bring the total not -to -exceed amount to $787,500; and WHEREAS, the Sixth Amendment must also be approved by the Oversight Board and State Department of Finance prior to becoming effective. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Sixth Amendment to the Agreement with Best Best & Krieger, LLP ("BB&K"), to increase the not to exceed amount by $225,000, for a total not to exceed amount of $787,500, to cover legal services for the ongoing Community Youth Athletic Center ("CYAC") litigation. The Sixth Amendment to the Agreement is on file in the office of the City Clerk. Resolution No. 2014 — Page Two PASSED and ADOPTED this 18th day of November, 2014. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk December 2, 2014 Mr. Bruce Beach Best, Best & Krieger, LLP 655 West Broadway, 15th Floor San Diego, CA 92101 Dear Mr. Beach, On November 18th, 2014, Resolution No. 2014-155 was passed and adopted by the City Council of the City of National City and Resolution No. 2014-56 was passed and adopted by the Successor Agency to the Community Development Commission as the National City Redevelopment of the City of National City, authorizing execution of a Sixth Amendment to an Agreement with Best, Best & Krieger, LLP. We are enclosing for your records certified copies of the above Resolutions and a fully executed original copy of the Amendment. Sincerely, Michael R. Dalla, CMC City Clerk Enclosures