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Agenda Item
ASR
Control 10-000851 |
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MEETING DATE: |
06/22/10 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
County Counsel
(Approved) |
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Department contact
person(s): |
Sharon Durbin Cherney, Deputy (714) 834-2049 |
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Nicolas S. Chrisos, County Counsel (714) 834-3300 |
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Subject:
Amendment to Groom Law Group
Legal Services Contract
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A |
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Funding Source: GF:
100-025-025-4000-1900 |
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Prior Board Action: Minute
Order dated January 12, 2010; item #23 |
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RECOMMENDED ACTION(S):
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1. |
Approve an amendment to the Agreement for Professional Services with Groom Law Group extending the funding limit of the Agreement from $50,000 to $100,000. |
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2. |
Authorize County Counsel or designee, on behalf of the County, to execute the Amendment to Agreement for Professional Services in the form attached to this Agenda Staff Report. |
SUMMARY:
The County, with the assistance of Groom Law Group, has been seeking guidance from the Internal Revenue Service that would allow the implementation of a proposed pension formula election without negative tax impact for current employees. On January 12, 2010, your Board approved the initial Agreement for Professional Legal Services (the “Agreement”) with Groom with a funding limit of $50,000. The proposed amendment would increase funding under the original contract by $50,000 for a total amount of $100,000. The ongoing assistance of Groom is required to continue to pursue a positive resolution in this matter.
BACKGROUND INFORMATION:
In an effort to address increasing pension costs, the County has initiated steps towards implementing a pension formula election between the current pension formula (2.7% at 55) and a new lower pension formula (1.62% at 65) combined with access to a defined contribution plan with an employer matching contribution. As of May 7, 2010, the County has implemented this election as to new employees. Concerns exist regarding the Internal Revenue Service’s position on the tax impact of offering such an election to current employees. In an effort to resolve this issue, the County, with the assistance of Groom, has been working with the IRS and the Department of the Treasury to request guidance to allow the implementation of the election without negative tax impact for current employees.
On January, 12, 2010, your Board authorized and approved an Agreement for Professional Services between the County and Groom Law Group to obtain the assistance of Groom in this matter. The Agreement initially contained a funding limit of $50,000. As of April 30, 2010, $40,877 of those funds had been charged under the Agreement. As efforts with the IRS progress, Groom’s continued assistance is needed. In addition to assisting with pursuing IRS guidance, Groom is also providing assistance with respect to possible legislation that may be pursued in an effort to resolve this matter.
Groom Law Group is a Washington, DC based employee benefits specialty firm. The fact that Groom is a local Washington, DC based firm, with regular interaction with representatives of the IRS as well as other federal agencies and legislative committees, has facilitated their ability to assist the County. Specifically, Groom has represented the interests of the County in interactions with the IRS, the Treasury, House Ways and Means Committee staff, Senate Finance Committee staff and relevant trade groups. This Amendment will not increase the hourly rate charged. Groom is providing the County a 15% discount on hourly costs.
Accordingly, County Counsel recommends that the Board approve an Amendment to the Agreement which Amendment will allow for Groom’s continued assistance.
FINANCIAL IMPACT:
Legal services will be provided on an “as needed” basis up to the amount of $100,000.
STAFFING IMPACT:
N/A
EXHIBIT(S):
A-Agreement for Professional Services with Groom Law Group, dated January 13, 2010.
ATTACHMENT(S):
A-Proposed Amendment to Agreement for Professional
Services with Groom Law Group.