HomeMy WebLinkAbout152-05 RESOLUTION• •
RESOLUTION NO. 152-05
A RESOLUTION TO APPROVE AN AMENDMENT TO THE
CONTRACT FOR PROFESSIONAL SERVICES WITH CROSS,
GUNTER, WITHERSPOON & GALCHUS, P.C. IN AN AMOUNT
NOT TO EXCEED $50,000.00 TO CONTINUE REPRESENTATION
OF THE CITY IN THE PETER T. REAGAN, ET AL v. CITY OF
FAYETTEVILLE LAWSUIT; AND APPROVING A BUDGET
ADJUSTMENT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves an Amendment to the Contract For Professional Services with
Cross, Gunter, Witherspoon & Galchus, P.C. in an amount not to exceed
$50,000.00 (attached as Exhibit A) and authorizes Mayor Coody to sign this
contract.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a Budget Adjustment in the amount of $50,000.00
PASSED and APPROVED this 2nd day of August, 2005.
ATTEST.
.,� 4(.. E 0,• SG9
=V••
•�'
;FAY ETT EVILLE
•
t•. :s.
gatiFisfP TON ‘-‘100
By: QtAI c a1
SONDRA SMITH, City Clerk
APPROVED:
By:
DAN COODY, Mayor
• •
rt NIE:NDMENT TO THE Cf)NTRA(_'h FOR
PROFESSIONAL SERVICES
(--n this ,r: ani of August, 2005, the Ciro t)f Fsvettt'•.-ill:, and the law
Non el Cre t..
Gunter, Witherspoon i! & i:eal<h1:5, P.C. agree ti+ 1{7!? t;)i1t+43.•i[la�
0
a oi:t.i'tenl to the contract for :lt ot.s i.Slai labor lr service ti timed ;Aprli 19
I. Eh:, initiallY authorized amount t of bU_ tit . for these services 1•:iiis-
a20,000.00. and sziid. a usnunt hits bean exhausted. Crc, Gunter, er, \ ittserx,.nn K,
(.tali'hus, 1'.t.. is harc't)1' air' thonytqi to t-j;f; toy strvica or c: ensu not til exceed
an additional amount of 55O.0t)I U. Ara, bi Lng for '9rvic s ilr ("knenses. in i:XCeS'
:f !his a-n?it; itt shall require the prior approval of the Fayetteville City Council.
2. Cit': iontr. cr; and documents rents -+-t�p�lre<.I ::-fiih' fl.'lrft+rn in)tt city
i:n'
ontrric al v c)rl< an subject to the Arkansas, Frcedon, Of information Act 11 u
!'rt:'t.`ili`ti: a; 7Y;i Tttt:Ilion rift i'Qtluest !S presctnteci u) the C.I"i of Fayetteville,
Gunter, :$ttfl'rs x'o" & (.;3tchts. P.C. will a`C? everything possible to
nn -wide the i.R.cu: ent'i in 3 ;irCtni?t and timely manner : prescriix.'ii :n the
Ari....: M ' fiTi'ti't2Jiti ink..'•nna:'ioii 'Act til.(. .:i. ���-i`1-illi ct 5t`ii.i unit,
atth(`rited t itotoc pjj .'•a i i`itt:s pur-ina,it , .e..! FOIA Inai? tic a.!:esset`
Lir this ,': ilil`liani.i'.
ti(Y :L1t.7Si11 :ti.lp and venue t
%hail it:: Iliuo;tt:n Cltatnv L.iri:lit C':rgrt.
ute bettveen thi parties
. .. .+}"Tc'td tha: the raj hare tit ilii:' party :.-)ice any '.4 the
a;:aiirlhr' rentedit'a• under this Amendment or under la:i in the L'''ent at ont. aa'
1lo l: breaches .>r dr4anits he an pari}' under c elgement Steal! not he
construed in: e .'.'aP?r Of SUth pritaistoirs and CP'nliltic'flS and Rhifi net prevent
thy rtntti.> 11 a''Tn tn.Vn!c ng such i'cincdicii in the' +':'i`"`i 1:{ .arty future breach or
ili•Javlt .
Lad l 41raa:r<tnli Sa: '.fY''. .r\ endriu,nt is :sip:a ble from all other
paragr.tt`hs. In the t'vt t: aTIv CCIi!rt of :'itn pe,,'ltl E tiri(.dicuon doer/nines that ;Inv
paragraph or Subparagraph is invalid or tale,Ytora'i'a?ie t(H' any reason, aF
i 'mini 1,_ rarngraphs and subparagraphs Bl d 1. rernam to is t 'E?'a'tand oiled
0. This An1Cltal nset1L skit hC S11 i!'i'p1'r'2a.ii <S:CsI'ilti t? i;+ 3fti.7 a'fi(01+.'i7ii
under tilt' f:nv. r]f the Slate or ?rkatt>a,;.
9
1
•
The p.1T"Uc`F i :) ittlil unclerst.tnci tha` th1'; t\tnelitiniert 15
Stl;''ctiafnellti k. it?t't(r:la atd that it rules not alter, aillm,nd (1'
abridge an 4>t :hi: ri?(lit!:, et:lig:` oils. i`.T tliltit':5 et {ht? pier :s 11Ui eXprt.'SSi'.
l ie!'C`i 11.
F11Ch 'a tla.. ,1!`.C' i)r51t;t:r't.` tv'arIants that he.. i7T shy. has the itll' tight,
tiet t:r and autnarn S' tb i:Si':`ii;4r this ?.2112ttii Ctl i'tlt C71? behalf •'f the park' tx d c atcd
the 201-;'!osttti
3r. r.c;rt'tsmt nt t. ith ails tilt, above ;.mini the Cite It i'avettev lle iv: Nltn:or
Dan L.•h1til' and Gunter, \ ithcirspoon & Gaii:hu . !'.0 13. !Richard A.
,Vile"'t k •nair >rnoines
CROSS. GUNT} R,
WITHERSPOONcit GALCHLS, P (.. C:'i7"l' C_' VAYFTTFVII.I E
RICHARD :'t. It(JDLRICK
i t...sC teat
triSt
DAN C000Y
M
SO`DRA SMITE C'le'rk
‘.....................
U` • •G\TY c .10
coll
: FAYE1TEVILLE •
i.' fftANS:•Nt
• City of Fayetteville, Arkansas
Budget Adjustment Form
•
Budget Ycar
2005
Department: Finance & Internal Services
Division: Human Resources
Program: Human Resources
Date Requested
7/15/2005
Adjustment Number
Project or Item Added/Incrcased:
The Legal Services account in the HR program needs to
be increased by $50,000 to pay legal costs associated
with the Peter T. Reagan, et al v. City of Fayetteville
lawsuit in Federal District Court and the Department of
Labor supervised settlement.
Project or Item Deleted/Reduced:
Fund Balance
Justification of this Increase:
Funds are necessary to pay attorney's fees.
Justification of this Decrease:
There is sufficient fund balance remaining to comply with
City policy.
Increase Expense Budget (Decrease Revenue Budget)
Account Name Account Number Amount Project Number
Legal services
Account Name
1010 1210 5314 01 50,000
Decrease Expense Budget (Increase Revenue Budget)
Account Number Amount
Use of fund balance
1010 0001 4999 99 50,000
Project Number
cqucst
Approval Si. natures
/• 4
01
Budget- tanager
l loos
Date
Date
Department Director Date
Finance & Internal
Mayor
ervices 1)1
•
or
rS
ate
Date
Budget Office Use Only
Type: A B C ` D E
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
Initial Date
Initial Date
Initial Date
Initial Date
•
a e evi -le
y AH KAN SAS
•
City Council Meeting of August 2, 2005
CITY COUNCIL AGENDA MEMO
TO: Mayor Dan Coody and City Council
THRU: Stephen Davis, Finance & Internal Services Director
FROM: Michele Bechhold, Human Resources Directo
DATE: July 14, 2005
SUBJECT: Professional Services Agreement with Cross, Gunter, Witherspoon
& Galchus, P.C.
Recommendation
Staff recommends approval of a change order in the amount of $50,000 to the professional
services agreement for legal services with Cross, Gunter, Witherspoon & Galchus, P.C.
(CGWG) On April 19, 2005 Council approved a contract in an amount not to exceed $20,000
with this firm for legal services associated with the City's defense in the Peter T. Reagan, et al v.
City of Fayetteville, Case No. 05-5045, Federal District Court. The firm is also working with the
Department of Labor (DOL) to facilitate the supervised settlement process which covers the
employees who are not party to the lawsuit.
Discussion
Initial legal services focused heavily on the DOL supervised settlement. CGWG attorneys met
several times with City staff to become familiar with how the City calculated payroll and to
identify all the components of employee pay. Numerous hours were spent researching how the
provisions of the Fair Labor Standards Act should be applied to the City's payroll practices,
exploring the supervised settlement process with the Department of Labor, making contact with
DOL personnel and discussing our case at length to facilitate the settlement.
Moving forward in the supervised settlement process, the attorneys and City staff prepared for
the DOL investigator to be on-site and arranged for him to interview approximately forty-three
employees from divisions throughout the City with the exception of the Fire Department. Due to
the pending lawsuit, the DOL will not include the Fire Department in the settlement process.
Numerous hours were spent researching DOL opinions and case law. The DOL investigator
was consulted regarding the proposed method of calculating pay within the capabilities of the
City's software system.
The attorneys coordinated their efforts with Kit Williams and met with City staff in preparation for
mediation. Several meetings were held to determine how data should be gathered to facilitate
the calculation of any back pay that might be owed.
During June, a tremendous amount of effort was expended by both the staff of CGWG and the
City to compile all the materials/information needed for the mediation process. Basically two
and one-half years of payroll were recreated and analyzed for each of the eighty-four plaintiffs.
Staff anticipates that this change order will cover legal expenses through the month of August if
67-Vd5
45.a
• •
the lawsuit is settled.
This firm was selected through a professional selection process based on their extensive
experience in the specialized field of labor law.
Budget Impact
A budget adjustment is required to fund this change order. $50,000 would be taken from Fund
Balance and transferred to the Legal Services account in the Human Resources program. The
budget adjustment form is attached.
Staff is available to answer any questions you may have.
• •
RESOLUTION NO.
A RESOLUTION TO APPROVE AN AMENDMENT TO THE
CONTRACT FOR PROFESSIONAL SERVICES WITH CROSS,
GUNTER, WITHERSPOON & GALCHUS, P.C. IN AN AMOUNT
NOT TO EXCEED $50,000.00 TO CONTINUE REPRESENTATION
OF THE CITY IN THE PETER T. REAGAN, ET. AL. v. CITY OF
FAYETTEVILLE LAWSUIT; AND APPROVING A BUDGET
ADJUSTMENT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves an Amendment to the Contract For Professional Services with
Cross, Gunter, Witherspoon & Gakhus, P.C. in an amount not to exceed
$50,000.00 (attached as Exhibit A) and authorizes Mayor Coody to sign this
contract.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a Budget Adjustment in the amount of $50,000.00
PASSED and APPROVED this 2nd day of August, 2005.
APPROVED:.--
ATI-EST:
PPROVED
ATTEST:
B:
ayor
By
tyd
• •
AMENDMENT TO THE CONTRACT FOR
PROFESSIONAL SERVICES
On this end day of August, 2005, the City of Fayetteville and the law
firm of Cross, Gunter, Witherspoon & Galchus, P.C. agree to the following
amendment to the contract for professional labor law services dated April 19,
2005:
1. The initially authorized amount of budget for these services was
$20,000.00, and said amount has been exhausted. Cross, Gunter, Witherspoon Sr
Galchus, P.C. is hereby authorized to bill for services or expenses not to exceed
an additional amount of $50,000.00. Any billing for services or expenses in excess
of this amount shall require the prior approval of the Fayetteville City Council.
2. City contracts and documents prepared while performing city
contractual work are subject to the Arkansas Freedom of Information Act. If a
Freedom of Information Act request is presented to the City of Fayetteville,
Cross, Gunter, Witherspoon & Galchus, P.C. will do everything possible to
provide the documents in a prompt and timely manner as prescribed in the
Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.) Only
legally authorized photocopying costs pursuant to the FOIA may be assessed
for this compliance.
3. The jurisdiction and venue for any dispute between the parties
shall be Washington County Circuit Court.
4. It is agreed that the failure of any party to invoke any of the
available remedies under this Amendment or under law in the event of one or
more breaches or defaults by any party under the agreement shall not be
construed as a waiver of such provisions and conditions and shall not prevent
the parties from invoking such remedies in the event of any future breach or
default.
5. Each paragraph of this Amendment is severable from all other
paragraphs. In the event any court of competent jurisdiction determines that any
paragraph or subparagraph is invalid or unenforceable for any reason, all
remaining paragraphs and subparagraphs shall remain in full force and effect.
6. This Amendment shall be interpreted according to and enforced
under the laws of the State of Arkansas.
• •
7. The parties agree and understand that this Amendment is
supplemental to the original Contract, and that it does not alter, amend or
abridge any of the rights, obligations, or duties of the parties not expressly
addressed herein.
8. Each of the undersigned warrants that he or she has the full right,
power and authority to execute this Amendment on behalf of the party indicated
for the purposes herein contained.
In agreement with all the above terms the City of Fayetteville by Mayor
Dan Coody and Cross, Gunter, Witherspoon & Galchus, P.C. by Richard A.
Roderick sign their names below.
CROSS, GUNTER,
WITHERSPOON & GALCHUS, P.C. CITY OF FAYETTEVILLE
By: By:
RICHARD A. RODERICK DAN COODY
President Mayor
Attest:
SONDRA SMITH, City Clerk
Michele Bechhold
Submitted By
• •
City of Fayetteville
Staff Review Form
City Council Agenda Items
Contracts
2 -Aug -05
City Council Meeting Date
Human Resources
Division
Action Required:
07-15-05°05:04 RCVD
Finance & Internal Services
Department
To approve a change order in the amount of $50,000 to the professional services agreement with Cross, Gunter,
Witherspoon & Galchus P.C. for legal services.
550,000.00
Cost of this request
1010.1210.5314.01
Account Number
Project Number
$
297,349.00
Category/Project Budget (2005)
118,873.00
Services & Charges
Program Category / Project Name
Human Resources
Funds Used to Date Program / Project Category Name
178,476.00 General Fund
Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
X
mLL%ta, lfig/6s
DeDirector
Date
City Attorney
7/s/s
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in Mayor's Office
Comments:
Clarice Pearman - Res. 152-05
• 1
From: Clarice Pearman
To: Bechhold, Michele
Date: 8/9/05 3:O6PM
Subject: Res. 152-05
Page 1
Michele,
Attached is a copy of the resolution passed the City Council August 2, 2005 Also attached is a copy of
the agreement with the law firm and the budget adjustment. I will return to you via interoffice mail one of
two originals. I will also forward the budget adjustment to Budget & Research via interoffice mail.
Thanks.
Clarice
CC: Deaton, Vicki; Fell, Barbara