TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Briza Morales, Risk Manager
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 1 to the Professional Services Agreement with the Van Dermyden Makus Law Corporation to Conduct Independent Investigations of Confidential Matters at a Cost Not-to-Exceed $700,000 (City Manager Mirzakhanian).
ADOPT RESOLUTION NO. 25-0120
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RECOMMENDATION:Body
Staff recommends that the City Council adopt Resolution No. 25-0120 approving an amendment to the agreement with the Van Dermyden Makus Law Corporation (“VDM Law”), increasing the compensation by $630,000 for a total not-to-exceed amount of $700,000 and extending the agreement term to June 30, 2028.
FISCAL IMPLICATIONS:
Funds totaling $430,000 are included in the Fiscal Year 2025-2026 Human Resources Department General Fund budget for investigations and labor relations matters. The Human Resources Department anticipates submitting a funding appropriation request for City Council approval with the upcoming mid-year budget update report in February 2026.
BACKGROUND:
On February 1, 2024, the City entered into an agreement with VDM Law in order to conduct specialized confidential personnel investigations. The agreement was for $70,000 and for an initial term through June 30, 2026. Staff is now proposing a first amendment (No. 1) requiring City Council approval to increase the maximum compensation by $630,000 for a not-to-exceed amount of $700,000 and to extend the term through June 30, 2028, in order to complete pending administrative investigations and to be used in the future on an as-needed basis.
DISCUSSION:
The City maintains contracts with several firms so that investigations can be referred out for handling as needed. The City previously retained the services of VDM Law to conduct personnel investigations and entered into a contract under the City Manager’s authority. The investigations assigned to VDM Law are expected to exceed the initial contract amount. Currently, $61,453.27 of the contract has been utilized, leaving a remaining balance of $8,546.73. To ensure that VDM Law’s services can continue for current administrative investigations, staff recommends increasing the maximum compensation.
The agreement’s original term is through June 30, 2026. Staff recommends extending the term through June 30, 2028, to allow for current investigations to be completed and allow for VDM Law’s services to be used in the future on an as-needed basis.
Pursuant to Manhattan Beach Municipal Code (MBMC) Section 2.36.130, contracts for services of specially-trained and professional persons are exempt from bidding. However, if the amount equals or exceeds $75,000, such contracts can only be approved by the City Council. Due to the need to complete pending investigations and have the option to refer future related or unrelated matters to this firm, staff recommends that Council adopt the resolution approving the first amendment to the agreement, increasing the maximum compensation by $630,000 to a new total not-to-exceed amount of $700,000 and extending the term through June 30, 2028.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 25-0120
2. Amendment No. 1 - Van Dermyden Makus Law Corporation
3. Agreement - Van Dermyden Makus Law Corporation