AgdaPkt 2007-02-12 - Laserfiche WebLink

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6.1 E Page 1 REP�JRT To tMe Honorable I�layor and Ciiy Counci[ From the City Manage� February 12, 2007 Subject Amendment to Agreement for Special Counsel Services-- Recycled Water Project Recommendation By Motion, approve Amendment No. 2 to the special counsel services agreement with Hanson Bridgett Marcus Vlahos Rudy, LLP {"Hanson Bridgett") for speciafized legal services, and authorize the city manager to sign amendment to agreement. Background Construction of Phase One of the Recycled Water Project(all new facilities, pipelines and retrofits east of Highway 101)is approaching 50%completion, and the goal of serving 900 acre feet of recycled water to affset current drinking water use by 2010 is attainable. The level of effort required of the project team (city staff, South Bayside System Authority staff, and several consulting firms) is reaching its peak, as the first customer connections in the commercial area of Redwood Shores are expected in April 2007. The need for con#inued legal services will nat change over the next three years, and the City Attorney, in collaboration with staff desires to continue the agreement with Hanson Bridgett. Hanson Bridgett has brought special counsel expe�tise in the legal, technical and regulatory aspects of public water supplies. They are experienced in, knowledgeable of public works project financing and the regional water supply system which has proven invaluable to staff and has ensured that the Council's consideration of important water po{icy issues are framed #ully and properly. On February 9, 2004,the City Council approved a special counsel services agreement with Hanson Bridgett for special counsel services. On February 10, 20Q5, The Council approved Amendment No. 1 to the Agreement, increasing the not-to-exceed value of the agreement to $80,000. As of January 2007, the remaining balance of this agreement is approx. $19,000. Staff recommends that the agreement value be increased to $100,000, in order to ensure that sufficient budget is available over the next three years to cover billable hours requested by the City Attorney and/or the city's project manager. Alternative The Council cauld direct the City Attorney to find alternative means to carry out the legal work anticipated. Fiscal Impact In January 2006 the City Council approved the Water Financing Plan—2006 Update, and authorized the second issue of Water Revenue Bonds to finance the design and construction of Recycled Water Project facilities. The$56.6 million in bond proceeds were deposited into a new, separate project fund that is providing financing for these and other