CC 2018-08-28_09d Agreement Legal ServicesMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
SUBJECT: CONSIDERATION OF AGREEMENT FOR LEGAL SERVICES WITH
CARMEL & NACCASHA
DATE: AUGUST 28, 2018
SUMMARY OF ACTION:
Approval of this item will modestly increase rates for legal services with Carmel &
Naccasha.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
It is estimated that the revised Agreement will result in an increased annual cost of
approximately $14,000 if historical activity levels remain consistent. The current budget
of $280,000 is based on recent activity levels as well as estimated activity for the current
year. Staff will monitor utilization of the City Attorney budget and return to the Council if
any budgetary adjustments are necessary in the future.
RECOMMENDATION:
It is recommended that the City Council approve the revised Agreement for Legal
Services (“Agreement”) with Carmel & Naccasha.
BACKGROUND:
The City has had an Agreement for legal services with Carmel & Naccasha for the past
fourteen years. There has been no change in the firm’s billing rates since 2014.
ANALYSIS OF ISSUES:
Staff proposes an increase of approximately 6% in partner rates, with associate and
paralegal time being billed at 75% and 50% of partner rates (rounded to the nearest
dollar), respectively. In comparison, the California Consumer Price Index rose between
8.0% and 11.3% (depending on region) during the period since the last Legal Services
Agreement was approved. The Agreement sets forth two rate structures. One is for
general legal services and one for specialized legal services. Specialized legal services
are defined in the Agreement as services such as defending or prosecuting actions in
court, or other unusual, extraordinary or complicated matters. These services are
compensated at a slightly higher rate than the more routine general services such as
attendance at City Council meetings, review of reports, contracts, resolutions and
ordinances. The proposed increase in the rates is as follows:
Item 9.d. - Page 1
CITY COUNCIL
CONSIDERATION OF AGREEMENT FOR LEGAL SERVICES WITH CARMEL &
NACCASHA
AUGUST 28, 2018
PAGE 2
General Services Currently: General Services Proposed Increase:
$170 Partners $180 Partners
$129 Associates $135 Associates
$82 Paralegals $90 Paralegals
Specialized Services Currently: Specialized Services Proposed Increase:
$185 Partners $195 Partners
$144 Associates $146 Associates*
$98 Paralegals $98 Paralegals*
These increases will bring the rates more in line with other cities in the county, although
these rates are still well below the average. Attached is a revised Agreement, which
implements this change. All other terms of the Agreement remain the same.
*The lack of significant change in these rates is a result of implementing the 75% and
50% rate paradigm for associate and paralegal time, which was not the previous
structure, although it was close.
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 at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 9.d. - 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 rate 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 9.d. - Page 3
5. In addition to ATTORNEY’S 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
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 be 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.
9. This Agreement supersedes any and all prior agreements. This
Agreement can be terminated by either party giving (90) days written notice.
Dated: ____________, 2018
CITY OF ARROYO GRANDE
By:
_____________________________
JIM HILL, MAYOR
ATTEST:
_____________________________
KELLY WETMORE, CITY CLERK
CARMEL & NACCASHA LLP:
By:
________________________________
TIMOTHY J. CARMEL
Item 9.d. - Page 4
Exhibit A
1. Rates for regular duties and ordinary services as set forth in Section 2 are as
follows:
Partners: $180
Associates: $135
Paralegals: $90
2. Increased rates for specialized services as set forth in Section 3 are as follows:
Partners: $195
Associates: $146
Paralegals: $98
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