To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
CHERYL PARK, ASSISTANT CITY ATTORNEY
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APPROVE AN AMENDMENT TO THE AGREEMENT WITH BEST BEST & KRIEGER LLP FOR LEGAL SERVICES TO INCLUDE SERVICES FOR BOND COUNSEL FOR AN ADDITIONAL AMOUNT OF $35,000
APPROVE AN AMENDMENT TO THE ENGAGEMENT LETTER WITH NOSSAMAN LLP FOR LEGAL SERVICES TO DECREASE THE COMPENSATION TO $45,000
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EXECUTIVE SUMMARY
On March 18, 2025 the City Council approved an Engagement Letter for Legal Services with Nossaman LLP for the provision of bond counsel services related to the Measure FP General Obligation Bonds. On April 15, 2025, the City Council approved an Agreement for Legal Services with Best Best & Krieger LLP for the provision of disclosure counsel services also related to Measure FP Bonds.
Lolly Enriquez from Nossaman LLP, the attorney providing bond counsel services, has notified the City that she will be leaving Nossaman LLP in October 2026. As a result, she has recommended Mrunal Shah, a partner at Best Best & Krieger LLP, to provide the remaining bond counsel services. There is no conflict with Best Best & Krieger LLP providing both bond and disclosure counsel services since the City is the client.
Therefore, an amendment to the existing Agreement for Legal Services with Best Best & Krieger LLP is necessary to add Mrunal Shah as bond counsel and an amendment to the Engagement Letter for Legal Services with Nossaman LLP is necessary to modify the compensation amount and reflect the termination of services.
BACKGROUND
As you are aware, in November 2024, Measure FP was passed by the voters, which approved the issuance of City of Redondo Beach General Obligation Bonds in an amount not to exceed $93,350,000 (“Bonds”), the proceeds of which will fund the reconstruction of Fire Station #1, Fire Station #2, and the Police Headquarters, and renovation of the Police Annex facility (“Project”). If this First Amendment to the Agreement for Legal Services is approved, Best Best & Krieger LLP will act as Bond Counsel for the City of Redondo Beach.
Best Best & Krieger LLP (“BBK”) was established in Riverside, California in 1891, and has been in business for more than 130 years. BBK is a full-service law firm with 250 attorneys in 12 offices located throughout California, Oregon, Texas and Washington, D.C. As one of the largest and oldest California law firms, BBK has the resources to provide its clients with legal advice and representation in any matter related to disclosure counsel matters. Also, BBK’s municipal law practice is the largest of any firm in the State of California. BBK regularly represents cities in connection with matters outside of public finance.
Mrunal Shah is a partner in and practice group leader of Best Best & Krieger’s Public Finance Department. Mrs. Shah has over 20 years of experience as bond counsel assisting cities and other public agencies with general fund supported debt, including issuance of general obligation bonds, lease revenue bonds, installment purchase agreements and other financing structures. As bond counsel, Mrs. Shah regularly confers and consults with staff and consultants regarding financing methods that are contemplated to ensure the successful completion of the financing. Mrs. Shah will conduct all due diligence necessary for the issuance of the City’s General Obligation Bonds as tax-exempt obligations and prepare all legal agreements and related documents that are needed to complete the issuance of such bonds. Upon our satisfaction that all legal requirements have been met, we will issue an opinion regarding the validity and enforceability of the General Obligation Bonds.
$80,000 was originally set aside from the bond proceeds specifically for bond counsel. The compensation amount for the remaining bond counsel services to be provided by Best Best & Krieger LLP through bond closing scheduled for November 2026 will be $35,000, which is a flat fee payable from bond proceeds and contingent on the bond closing.
Additionally, an amendment to the Engagement Letter for Legal Services with Nossaman LLP is necessary to modify the compensation amount and reflect the termination of services due to Lolly Enriquez’s departure from the firm. The original flat fee compensation amount will be reduced to $45,000 for time incurred from March 2026 to date.
COORDINATION
The First Amendment to Agreement for Legal Services has been approved by Best Best & Krieger LLP and the City Attorney’s Office. The First Amendment to Engagement Letter for Legal Services has been approved by Nossaman LLP and the City Attorney’s Office.
FISCAL IMPACT
The amended compensation for bond counsel with Nossaman LLP is a flat fee of $45,000 payable from the bond proceeds and contingent upon bond closing. The compensation for continued bond counsel services with Best Best & Krieger LLP is a flat fee of $35,000, payable from the bond proceeds and contingent upon bond closing. The financial consultant has confirmed that $80,000 has been set aside for bond counsel services as part of the cost of issuance.
Submitted by:
Joy A. Ford, City Attorney
ATTACHMENTS
• First Amendment to Agreement for Legal Services with Best Best & Krieger LLP
• Agreement for Legal Services with Best Best & Krieger LLP
• First Amendment to Engagement Letter for Legal Services with Nossaman LLP