TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Professional Services Agreement with the Law Offices of Angel Ho, Inc. to Conduct Independent Investigations of Confidential Matters at a Cost Not-to-Exceed $300,000 (Budgeted) (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 25-0049
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RECOMMENDATION:Body
Staff recommends that the City Council approve an amendment to the agreement with the Law Offices of Angel Ho, Inc. (“Angel Ho”) increasing the compensation by $50,000 for a total not-to-exceed amount of $300,000 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 $50,000, the funds will be utilized for services rendered on an as-needed basis in response to personnel investigation needs that arise. Funds totaling $310,000 are budgeted in the Fiscal Year 2024-2025 Human Resources Legal and Contract Services Fund for investigations, employee and labor relations matters, and other consulting services. There are no additional fiscal implications at this time.
BACKGROUND:
On February 1, 2024, the City entered into an agreement with the Law Offices of Angel Ho, Inc. in order to conduct specialized confidential personnel investigations. The agreement was for $70,000 and for an initial term through June 30, 2026. On May 1, 2024, the City amended the agreement (Amendment No. 1) to increase the Maximum Compensation by $180,000, bringing the total to $250,000, which was approved by the City Council during the meeting on May 21, 2024. Staff is now proposing a second amendment (No. 2) requiring City Council approval to increase the maximum compensation by $50,000 for a not-to-exceed amount of $300,000, in order to complete pending administrative investigations.
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 attorney Angel Ho to be one of the contract investigators available to conduct personnel investigations. Currently, the contract has been utilized for $220,576.82, leaving a remaining allocated fund of $29,423.18. To ensure sufficient funding for Angel Ho’s services, which include finishing up necessary interviews and drafting and finalizing reports for pending administrative investigations, the staff recommends increasing the maximum compensation for this professional services agreement.
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 have the consultant’s services available in the future, staff recommends that Council adopt the resolution approving the second amendment to the agreement, increasing the maximum compensation by $50,000 to a new total not-to-exceed amount of $300,000.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 25-0049
2. Amendment No. 2 - Law Offices of Angel Ho, Inc.
3. Agreement and Amendment No. 1 - Law Offices of Angel Ho, Inc.