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Amend Contracts for Labor and Employment Law

SYNOPSIS: 

This action is to increase two contracts for labor and employment law by the combined sum of $35,000. The increase is necessitated by litigation that was not foreseen when the contract amounts were set at $50,000 each three years ago. The increase is for the law firms of Gutierrez & Preciado and Best, Best & Krieger and will be divided among the two firms as needed. Following the increase, the total amount contracted for labor and employment law for FY 1999-00 will be $150,000, which is the amount budgeted for this year. Sufficient funds are available in the Professional and Special Services Account.

COMMITTEE: 

Administrative, March 10, 2000, Recommended for Approval

RECOMMENDED ACTION:

Increase contracts for Gutierrez & Preciado and Best, Best & Krieger by a total of $35,000 for Labor and Employment Law matters for FY 1999-00.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

This action is to increase the contracts for two law firms providing labor and employment law services by the combined amount of $35,000 for FY 1999-00.

The District has contracts for labor and employment representation with two law firms, Gutierrez & Preciado and Best, Best & Krieger. Both contracts are for three years and are in their final year. The District has budgeted $150,000 a year for labor and employment legal services for the past three years. However, the contract amounts were established three years ago. The contracts allocated less than the budgeted amount, only $100,000, for each of the years FY 1997-98 and FY 1999-00, and $125,000 for FY 1998-99.

For the past two years, the amount expended on representation in labor and employment matters has been less than the contract amounts as well as less than the budgeted amount. The expenditures for FY 1997-98 and FY 1998-99 totaled $210,000 of the total $225,000 allocated and total $300,000 budgeted.

In FY 1999-00, however, total expenditures will likely exceed the amount approved three years ago for the contracts by approximately $50,000. It was not possible to fully predict the amounts needed for this year three years ago. Pursuant to delegated authority, the Executive Officer has augmented the contract for Gutierrez & Preciado by $15,000 to cover current expenses, including a successful summary judgment motion in a case arising out of the 1994 layoffs. This proposed action is to authorize expending the remainder of the budgeted funds. In part, the extra costs in FY 1999-00 are due to shifting costs that had been expected to occur in FY 1998-99. Those costs included negotiation of a labor contract with the District’s unions.

For these reasons, we request that your Board authorize additions to the contracts of the District’s labor and employment law counsel, Gutierrez & Preciado and Best, Best & Krieger, in the total combined amount of $35,000.

Resource Impacts

Sufficient funds are available in the FY 1999-00 Budget.

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