Purpose of Request

This item seeks Council approval of an amendment to the City�s Legal Services Agreement with Rutan & Tucker, LLP, to increase the maximum amount of compensation from $25,000 to $35,000.

Background

William Marticorena of the firm of Rutan & Tucker has served as special outside counsel to the City for a number of years on issues related to the City�s cable television franchise with Charter Communications (�Charter�).  The current Legal Services Agreement between the City and Mr. Marticorena�s firm was executed in May 2003 with a $25,000 cap on total compensation.  At the time, the City was beginning an administrative process for renewing Charter�s franchise and it was our belief that the total compensation provided for in the agreement would be sufficient for this purpose.  Since then, Mr. Marticorena has devoted substantial time and effort to franchise renewal negotiations and related issues, including several appearances before the Council, and the original $25,000 allocated for his services has been exhausted.

Today, it does not appear that a renewal of Charter�s franchise with the City is likely in that Charter appears intent on obtaining a state franchise from the California Public Utilities Commission pursuant to Assembly Bill 2987, adopted last year.  Nonetheless, we still foresee a need for Mr. Marticorena�s services through the end of this year should Charter in fact exercise its option to obtain a state franchise.  In order to do that, it is necessary to raise the cap on compensation. 

We recommend an increase of $10,000, so that the cap would become $35,000.  All other terms and conditions of the agreement would remain the same.

Necessary Action

If the Council concurs, the necessary action would be a motion to adopt the resolution entitled �RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING AND AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO LEGAL SERVICES AGREEMENT BETWEEN THE CITY OF BURBANK AND RUTAN & TUCKER, LLP.�

cc:       Mary J. Alvord, City Manager

            Michael S. Flad, Asst. City Manager

            Michael McManus, PIO

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