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CC 2014-08-12_08.g. Agreement for Legal Services MEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION OF AGREEMENT FOR LEGAL SERVICES DATE: AUGUST 12, 2014 RECOMMENDATION: It is recommended the City Council approve the revised Agreement for Legal Services (“Agreement”) with Carmel & Naccasha. IMPACT TO FINANCIAL AND PERSONNEL RESOURCES: It is estimated that the revised Agreement will result in an increased annual cost of approximately $7,000. BACKGROUND: The City has had an Agreement with Timothy J. Carmel for legal services for the past twenty-one years, currently with Carmel & Naccasha and formerly with Lyon & Carmel. There has been no change in the rate structure since 2007. ANALYSIS OF ISSUES: Staff proposes a 3% increase in rates, which would be consistent with the salary adjustment provided to management employees. The Agreement sets forth two rate structures. One is for general legal services and one for specialized legal services. The proposed increase in the rates is as follows: General Services Currently: General Services Proposed Increase: $165 Partners $170 Partners $125 Associates $129 Associates $80 Paralegals $82 Paralegals Specialized Services Currently: Specialized Services Proposed Increase: $180 All Legal Services $185 Partners $144 Associates $98 Paralegals Item 8.g. - Page 1 CITY COUNCIL AGREEMENT FOR LEGAL SERVICES AUGUST 12, 2014 PAGE2 This will bring the rates more in line with other cities in the County. Attached is a revised Agreement, which implements this change. All other terms of the Agreement remain the same. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve the Agreement; 2. Do not approve the Agreement; 3. Modify and approve the Agreement; or 4. Provide direction to staff. ADVANTAGES: Approving the Agreement will provide equitable compensation in exchange for the high quality legal services provided by the City Attorney. DISADVANTAGES: Approving the Agreement will increase the City's costs for legal services. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, August 7, 2014 and the Agenda and staff report were posted on the City's website on Friday, August 8, 2014. Item 8.g. - Page 2 AGREEMENT FOR LEGAL SERVICES THIS AGREEMENT is entered into by and between the CITY OF ARROYO GRANDE (hereinafter "CITY") and CARMEL & NACCASHA LLP (hereinafter "ATTORNEY"). This Agreement is required by Business and Professions Code Section 6148 and is intended to fulfill the requirements of that section. ATTORNEY maintains errors and omissions insurance coverage applicable to the services to be rendered pursuant hereto. 1. CITY hereby employs ATTORNEY to act as attorney for CITY as a part- time independent contractor. 2. ATTORNEY shall be paid at the hourly rates set forth in Exhibit A, attached hereto and incorporated herein by this reference, for regular duties by an attorney of the firm for ordinary services including, but not limited to. a. Drafting and review of ordinances, resolutions, contracts, leases, opinions, and similar documents; b. Attendance at City Council meetings; c. Rendering written and oral opinions to the City Council and/or City Manager; d. Reviewing contracts for correct legal form and content for insurance compliance. 3. ATTORNEY shall be paid at the increased rates set forth in Exhibit A when assigned to perform any of the following duties or services: a. Defending or prosecuting actions in all courts or administrative agencies on behalf of the CITY; b. Representing the CITY or CITY's officers before local, State or Federal Courts, boards, or commissions when there is opposing counsel, or when specifically requested to do so by the CITY; c. Any other unusual, extraordinary, or complicated matters as requested by CITY. 4. ATTORNEY shall provide the services referred to in Paragraphs 2 and 3 only as requested by CITY's Council, its Mayor, or the CITY's City Manager. Item 8.g. - Page 3 5. In addition to his hourly compensation, ATTORNEY will be reimbursed for out-of-pocket expenses for such items as court filing fees, long distance telephone calls, photocopying, fax charges and other similar out-of-pocket items. 6. It is understood and agreed that ATTORNEY may retain, on behalf of CITY, special counsel to associate with ATTORNEY in any matter customarily requiring or warranting the need of such special counsel by reason of their expertise in particular I matters, upon the recommendation of ATTORNEY and approval and authorization thereof by the City Council or City Manager. 7. ATTORNEY is employed to serve at the pleasure of the CITY's Council and shall at all times hold himself ready to perform CITY's duties pursuant to this Agreement. However, it is understood that ATTORNEY is free to engage in a full-time private practice and it will be necessary to provide adequate notice to ATTORNEY of the need for extraordinary service. 8. This Agreement supersedes any and all prior agreements. This Agreement can be terminated by either party giving (90) days written notice. Dated: , 2014 CITY OF ARROYO GRANDE By: TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK CARMEL & NACCASHA LLP: By: TIMOTHY J. CARMEL Item 8.g. - Page 4 Exhibit A 1. Rates for regular duties and ordinary services as set forth in Section 2 are as follows: Partnera: $170 Associates: $129 Paralegals: $82 2. Increased rates for specialized services as set forth in Section 3 are as follow: Partners: $185 Associates: $144 Paralegals: $98 Item 8.g. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.g. - Page 6