TO: Board of Supervisors
FROM: Thomas Zeleny, Interim County Counsel
REPORT BY: Sherri Kaiser, Chief Deputy County Counsel
SUBJECT: Amendment No. 4 to Napa County Agreement No. 200210B with Renne Public Law Group, LLP
RECOMMENDATION
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County Counsel requests approval of and authorization for the Chair to sign Amendment No. 4 to Agreement No. 200210B with Renne Public Law Group LLP for specialized legal services to represent the County in litigation and related work in connection with leases at the Napa County Airport, increasing the maximum compensation from $825,000 to $890,000.
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EXECUTIVE SUMMARY
On December 12, 2019, the County entered into a Professional Services Agreement ("Agreement") with Renne Public Law Group, LLP ("Renne") for specialized legal services in representing the County in litigation and related work in connection with leases at the Napa County Airport, specifically two lawsuits pending between the County and 3030 Airport Road, LLC ("3030").
On January 14, 2020, Amendment No. 1 was approved increasing the contract maximum for services from $33,000 to $200,000 after Renne provided a budget estimate of up to $182,000 for legal services prior to trial in the pending litigation. The 3030 litigation required Renne to conduct and participate in significant written discovery and depositions, to engage in significant law and motion activities, and to perform other significant pre-trial and trial preparation work.
On October 20, 2020, Amendment No. 2 to the Renne contract was approved to increase the contract maximum for services from $200,000 to $475,000 to cover services for litigation to include trial time in the 3030 litigation and to cover legal assistance on other lease issues. This amendment did not include Renne's efforts to assist in responding to 3030's Part 13 Complaint it filed with the FAA that was received by the airport on October 16, 2020.
On March 23, 2021, Amendment No. 3 retroactive to January 1, 2021, to the Renne contract was approved to increase the contract maximum for services from $475,000 to $825,000 to cover additional post-trial and litigation services and extended the term of the agreement from June 30, 2021 to June 30, 2024.
Staff recommends that the County enter into Amendment No. 4 to the Renne contract to increase the contract maximum for services from $825,000 to $890,000 to cover the final costs of resolving all disputes between the parties in both lawsuits and the Part 13 Complaint.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Airport Fund Available Fund Balance |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Renne Public Law Group, LLP, has secured a favorable settlement and invested substantial time and resources in negotiating, drafting, and executing a complicated settlement arrangement. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
No. These are the final expenses associated with the 3030 litigation. |
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Consequences if not approved: |
Upon exhausting the law firm's present maximum compensation level under the Agreement, then legal services would have to be provided solely by County Counsel staff which may not provide the Airport with adequate specialized expertise in these matters. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The County has been engaged in two lawsuits with a tenant at the Napa County Airport known as 3030 Airport Road, LLC ("3030") for several years. In March 2018, the County declared a default by 3030 under its lease and under a related self-fueling agreement due to 3030's practice of allowing aircraft owned by third parties to use 3030's hangar space and to refuel using 3030's self-fueling facilities. On August 28, 2018, the Board of Supervisors authorized County staff to give notice of termination of 3030's lease based on 3030's failure to cure its defaults. Staff issued a notice of termination of the lease, which was effective on February 15, 2019.
On December 12, 2019, the County engaged the services of the Renne Public Law Group ("Renne") to take over handling of the 3030 lawsuits from Burke Williams & Sorensen, whose contract with the County had been terminated. The Agreement with Renne was approved by the County Executive Officer as purchasing agent, with an initial contract maximum of $33,000.
On January 14, 2020, Amendment No. 1 was approved based on Renne's projections of litigation costs in the two actions up to but not including trial. The amendment increased the contract amount to $200,000, which was intended to also cover any miscellaneous legal assistance Renne may provide to the Airport on other lease issues. Based on Renne's projections of litigation costs through trial, staff requested an increase to the maximum contract amount to $475,000.
Renne successfully represented the County at trial of the unlawful detainer action, and on March 23, 2021, Amendment No. 3 increased maximum contract amount to $825,000 to cover post-trial and appellate costs, as well as the response to a Part 13 Complaint that 3030 Airport Road, LLC, filed with the Federal Aviation Administration. Amendment No. 3 also extended the term from June 30, 2021 to June 30, 2024.
Staff requests Amendment No. 4 to increase the maximum contract amount to $890,000 to ensure there are sufficient funds to fully compensate Renne for its post-trial and settlement services.