TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzkhanian, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 1 to the Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo for $50,500 to Conduct Independent Investigations of Confidential Matters for a Total Not-to-Exceed Amount of $125,000 (Budgeted) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 26-0021
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RECOMMENDATION:Body
Staff recommends that the City Council approve an amendment to the professional services agreement with Atkinson, Andelson, Loya, Ruud & Romo, a professional law corporation (“AALRR”), increasing the compensation by $50,500 for a total not-to-exceed amount of $125,000 for employee and labor relations support, specifically to conduct independent investigations of confidential personnel matters.
FISCAL IMPLICATIONS:
While the total proposed contract amendment amount is $125,000, the funds are utilized for services rendered on an as-needed basis in response to personnel investigation needs that arise. Sufficient funds are budgeted in fiscal year 2025-26 and future years will be budgeted accordingly.
BACKGROUND:
On July 1, 2025, the City entered into an agreement with AALRR in order to conduct specialized confidential personnel investigations. The agreement was for $74,500 and for an initial term through June 30, 2027.
DISCUSSION:
When complaints are made requiring investigation, the City is obligated to conduct prompt, thorough, and unbiased investigations. As such, it is helpful to have several firms available on retainer so the investigation can be referred out promptly for handling. The City previously retained the services of AALRR to conduct personnel investigations and entered into a contract under the City Manager’s authority. The investigations assigned to AALRR by the Human Resources Department are now expected to exceed the initial contract amount. Staff is now proposing a first amendment requiring City Council approval to increase the maximum compensation by $50,500 for a not-to-exceed amount of $125,000, in order to complete pending administrative investigations and to be used in the future on an as-needed basis. In addition to investigations, the professional services agreement includes specialized employment law counsel and training, which can be utilized 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 matters to this firm, staff recommends that Council adopt the resolution approving Amendment No. 1 to the Agreement increasing the maximum compensation by $50,500 to a new total not-to-exceed amount of $125,000.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0021
2. Amendment No. 1 - AALRR
3. Agreement - AALRR