Amend Contract with Stradling, Yocca, Carlson & Rauth for Specialized Legal Services
Synopsis:
In response to an Administrative Committee request for advice concerning possible effects of a Los Angeles County bankruptcy on District finances, the AQMD contracted with Stradling, Yocca, Carlson & Rauth to provide the requested opinion. During performance of that work, an urgent need arose for legal assistance in connection with the potential sale of the El Monte facility and the firm's real estate department has been handling that work. Expenses to date are estimated at approximately $45,000 for these two tasks; it is estimated that an additional $15,000 will be needed in this Fiscal Year, bringing the total to $60,000.
Committee:
Administrative, March 22, 1996, Recommended for Approval
Recommended Action:
Authorize the Chairman of the Board to execute an amendment to the AQMD contract with Stradling, Yocca, Carlson & Rauth to increase the amount payable by $15,000 for a total of $60,000.
James M. Lents, Ph.D.
Executive Officer
PMG:BBB:vmr
Background
The AQMD has an existing contract in the amount of $45,000 with the law firm of Stradling, Yocca, Carlson & Rauth to provide specialized legal services in two matters. The first task was preparation and presentation at the Administrative Committee of an opinion regarding investment options and the likely effects of any possible Los Angeles County bankruptcy on District funds. That opinion has been presented to the Administrative Committee and is being provided to your Board in a separate agenda item for this meeting, Analysis of AQMD Treasury Management Options. Work on this task is essentially complete although additional questions may arise, depending on the option your Board selects for the AQMD's treasury management. $21,656.26 has been expended for this work.
The second task is ongoing, consisting of legal advice on issues relating to the possible sale or lease of the AQMD's El Monte facility. The firm has provided legal advice in the evaluation of several different contingent offers to purchase the building, has represented AQMD in negotiations with the selected offeror, and has taken the lead in review of necessary legal documents. The firm has provided us with an estimate of the additional costs to be incurred during the escrow period and during closing, if the sale is completed. As of the date of preparation of this letter, approximately $11,000 had been spent on this task. The firm estimates it will require an additional $20,000 to complete the work on this task, barring unforeseen circumstances. This would bring the total amount of the contract to approximately $52,000. To cover uncertainty of the estimate, the Board is requested to authorize an amendment increasing the total amount payable to $60,000, which is a $15,000 increase over the existing contract.
Resource Impacts
None; sufficient funds are available in the AQMD's Fiscal Year 1995-96 Budget, Professional and Special Services account.
(SYCR)