HomeMy WebLinkAboutAGENDA REPORT 2018 0905 CCSA REG ITEM 10FCITY OF MOORPARK,
CALIFORNIA
City Council Meeting
of 09.05.2018
ACTION Approved staff
recommendation
BY M. Benson
F. Consider Annual Consumer Price Index (CPI) Adjustment for Rates in the City
Attorney Contract with Richards, Watson & Gershon. Staff Recommendation:
Approve a 3.97% CPI adjustment for rates in the City Attorney Contract with
Richards, Watson & Gershon, effective as of September 1, 2018.
Item: 10.F.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Brian Chong, Assistant to the City Manager
DATE: 9/5/2018 Regular Meeting
SUBJECT: Consider Annual Consumer Price Index Adjustment for Rates in the
City Attorney Contract with Richards, Watson & Gershon
BACKGROUND
On November 7, 2012, the City Council awarded a contract to the firm of Richards,
Watson & Gershon (RWG) for the provision of City Attorney services. The contract set
rates for various types of legal services provided, with an annual adjustment consistent
with the Consumer Price Index (CPI). Pursuant to the contract, any annual adjustment
of 3.00% or more requires prior written approval of the City Council. Because the
requested CPI adjustment for the current period is 3.97%, City Council approval of the
annual adjustment for FY 2018-19 is required.
DISCUSSION
The current City Attorney contract contains provisions for annual service rate
adjustments based on CPI from the April-to-April period, to be effective July 1, the start
of each fiscal year. CPI was to be based on the Los Angeles-Riverside-Orange County
region, which was recently split into Los Angeles and Orange County regions. Thus,
CPI for the Los Angeles-Long Beach-Glendale region (Los Angeles County) is used.
The CPI adjustment for the period of April 2017 – April 2018 was +3.97%. As such,
RWG is entitled to a rate increase of 3.97%, and such increase requires prior written
City Council approval.
Insofar as RWG did not request City Council approval of the rate increase prior to the
most recent July 1, 2018 adjustment date, City Attorney services have continued to be
billed at FY 2017/18 rates. Staff recommends that the proposed rate increases become
effective as of September 1, 2018. The next CPI adjustment would then become
effective on July 1, 2019.
Item: 10.F.
164
Honorable City Council
9/5/2018 Regular Meeting
Page 2
A summary of the proposed new hourly rates is shown below.
Type of Service Old Hourly Rates New Hourly Rates
General Services
First 20 Hours $176 All Attorneys $183
Excess Hours $208 Associates $217
$224 All Other Attorneys $233
Special Services $203 Associates 1-3 years of legal practice $211
$224 K. Ennis/N. Ghirelli and Associates 4-7 $233
4-7 years of legal practice
$277 Senior Attorneys and Shareholders $288
$160 Paralegals $167
Code Enforcement Litigation
$208 Associates $217
$240 Senior Attorneys and Shareholders $249
General Litigation
$203 Associates 1-3 years of legal practice $211
$224 Associates 4-7 years of legal practice $233
$309 Senior Attorneys and Shareholders $321
$160 Paralegals $167
Staff has confirmed the CPI adjustment and calculations contained in the
correspondence from RWG (Attachment 1).
FISCAL IMPACT
The adopted FY 2018/19 Budget contains $276,750 for legal services across all funds,
which includes $181,250 for legal services within the General Fund. The rate increases
are expected to increase costs to the City of up to approximately $11,000 during FY
2018/19, including up to approximately $7,000 to the General Fund. Staff will monitor
the City’s use of legal services during FY 2018/19 and seek additional budget, if
warranted, for legal services during the Mid-Year Budget Review in early 2019.
STAFF RECOMMENDATION
Approve a 3.97% CPI adjustment for rates in the City Attorney Contract with Richards,
Watson & Gershon, effective as of September 1, 2018.
Attachment: – Correspondence from RWG with Revised Exhibit A – Rates
165
//Rwg July 30, 2018 Troy Brown City Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Kevin G. Ennis T 213.626.8484 F 213.626.0078 E kennis@rwglaw.com 355 South Grand Avenue 40th Floor Los Angeles, CA 90071-3101 rwglaw.com RECE\VED AUG 0 \ 2018 CITY OF MOORPJ\RK OFFiCE OF THE cnv MANAGER Re: Annual Automatic CPI Adjustment in City Attorney Contract Rates Effective July 1, 2018 ·Dear Troy, As you may know, _the Legal Services Agreement between the City of Moorpark and Richards, Watson & Gershon dated November 16, 2012 ("Agreement") provides for automatic annual rate increases based on the percentage change in the Consumer Price Index. Specifically, Section 5 of the Agreement provides as follows: 5. Compensation. RWG shall be compensated for the performance of legal services in accordance with the rates for service set forth on Exhibit A, attached to this Agreement and incorporated herein as though set forth in full. The terms of this Agreement and the rates for service shall apply to legal services performed for City Agencies and other entities affiliated with the City that may be established. Commencing July 1, 2014, and. annually thereafter, the hourly rates set forth on Exhibit A, shall automatically increase by the percentage change in the Consumer Price Index (All Urban Consumers; Los Angeles-Riverside-Orange County). The calculation shall be made using the month of April in this year over the month of April in the prior year. Any such annual adjustment that equals or exceeds three percent (3%), and any other adjustments in the rates, shall require prior written approval of the City Council. (Emphasis added) Based on the foregoing, our office prepared a spreadsheet to determine the change in the Consumer Price Index (All Urban consumers for the Los Angeles-Riverside-Orange County region) over the applicable time period (April 2017 to April 2018). A copy of the spreadsheet is attached as Attachment A. Los Angeles San Francisco Orange County Temecula Central Coast RICHARDS WATSON GERSHON ATTACHMENTCHMENT 166
Troy Brown July 30, 2018 Page I 2 That spreadsheet shows the CPI changed 3.97% over the applicable time period. As it is more than three percent (3%), the adjustment in rates by 3.97% is not automatic and does require City Council approval. After applying a 3.97% increase to our existing rates, the old rates (up to June 30, 2018) and the new rates (effective July 1, 2018) are shown below: Type of Service Old Rates New Rates General Services First 20 Hours Excess Hours Special Services $176 $208 $224 $203 $224 $277 $160 Code Enforcement Litigation $208 $240 General Litigation $203 $224 $309 $160 All Attorneys Associates All Other Attorneys Associates 1-3 years of legal practice K. Ennis/N. Ghirelli and Associates 4-7 years of legal practice Senior Attorneys and Shareholders Paralegals Associates Senior attorneys and Shareholders Associates 1-3 years of legal practice Associates 4-7 years of legal practice Senior attorneys and Shareholders Paralegals $183 $217 $233 $211 $233 $288 $167 $217 $249 $211 $233 $321 $167 Also attached as Attachment B, is a revised version of Exhibit A to the Agreement showing the changes in rates in legislative format. We have also lowered the IRS mileage rate to reflect the current rate. If you have any questions, please do not hesitate to contact me. Very truly yours, L>Z~ Kevin G. Ennis Attachment(s) 12853-0001 \2204204vl.doc /~:E~7~1~.~.r.:~?,;-·,-~-. :· _-·. :'-_-__ _ _ --~-._ ·_· r~:>':?::~3 ,&it.> RI CHAH D S WATS 0 N GE RS H 0 Ni\;! ~~:~;·::':;.,_~~ ~-. ·· ·,. ~ ) ;:_:· ;_1~>•<-::_;~ --:'. -• ·'' · .. .::.·, c._ ."::,_'.!;;>--,~ < .... ;::;:, _;:_·.--· .. ·,-...,~--<>-_,->/ _,_·;,:. .-.:,:~.--: ; .;;.:}-~~<t~~ 167
Attachment A
Spreadsheet showing CPI Changes
168
M Bureau of Labor Statistics CPI-All Urban Consumers (Current Series)' CURRENT NEW Original Data Value RATES $ 160 $ 167 Series Id: CUURS49ASAO $ 176 $ 183 Not Seasonally Adjusted $ 203 $ 211 Series Title: All items in Los Angeles-Long Beach-Anaheim, CA, all $ 208 $ 217 Area: Los Angeles-Long Beach-Anaheim, CA $ 224 $ 233 Item: All items $ 240 $ 249 Base Period: 1982-84= 100 $ 277 $ 288 Years: 2008 to 2018 $ 309 $ 321 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2008 220.918 221.431 223.606 224.625 226.651 229.033 229.886 228.484 227.449 226.159 222.229 219.620 225.008 2009 220.719 221.439 221.376 221.693 222.522 223.906 224.010 224.507 225.226 225.264 224.317 223.643 223.219 2010 224.610 224.620 225.483 225.916 226.438 225.877 225.991 226.373 226.048 226.794 225.941 226.639 225.894 2011 228.652 229.729 232.241 233.319 233.367 232.328 231.303 231.833 233.022 233.049 232.731 231.567 231.928 2012 233.441 234.537 236.941 236.866 237.032 236.025 235.776 237.222 238.104 240.111 237.675 236.042 236.648 2013 238.015 239.753 239.995 239.043 239.346 239.223 238.920 239.219 239.611 239.940 238.677 238.742 239.207 2014 239.857 241.059 242.491 242.437 243.362 243.528 243.727 243.556 243.623 243.341 241.753 240.475 242.434 2015 239.724 241.297 243.738 243.569 246.093 245.459 247.066 246.328 245.431 245.812 245.711 245.357 244.632 2016 247.155 247.113 247.873 248.368 249.554 249.789 249.784 249.700 p 251.098 250.185 250.189 249.246 2017 252.373 253.815 254.525 254.971 255.674 255.275 256.023 256.739 257.890 258.883 259.135 259.220 256.210 2018 261.235 263.012 264.158 265.095 266.148 265.522 CPI INCREASED 10.124 % INCREASED 3.97% Generated on: July 17, 2018 169
Bureau of Labor Statistics HALF1 HALF2 224.377 225.638 221.943 224.495 225.491 226.298 231.606 232.251 235.807 237.488 239.229 239.185 242.122 242.746 243.313 245.951 248.309 250.184 254.439 257.982 264.195 Generated on: July 17, 2018 170
Attachment B
Revised Exhibit A to Legal Services Agreement
171
·Exhibit A-Rates (Effective July 1, 2018) RWG shall be compensated and reimbursed as follows: General Services. For General Services as defined herein, the rate for the first twenty (20) hours of time per month, irrespective of the attorney who performs the work, shall be at $476-$183 per hour. General Services include: (i) attendance of the City Attorney or Assistant City Attorney at City Council meetings and other meetings of the boards, committees and commissions of the City and City Agencies as they are directed to attend by the City Council or City Manager; (ii) services by the City Attorney or Assistant City Attorney in assigning, supervising and coordinating the work of other attorneys providing services to the City; (iii) legal services in connection with the enforcement of the municipal code, excluding Code Enforcement Litigation, as defined below; and (iv) all other communications with staff and legal services provided to the City and City Agencies except those services that are within the categories of Special Services, Code Enforcement Litigation, General Litigation or Bond Counsel and Disclosure Counsel Services, as defined below. For General Services in excess of the first twenty (20) hours of time per month, irrespective of the attorney performing the work, the rate shall be at the rate of $208 $217 per hour for associates and $224 $233 for all other attorneys. Special Services. Special Services includes: (i) real estate matters, labor and employment law services, water and water rights services, and environmental law services, including but not limited to, Hazardous Waste, Clean Air Act, and Clean Water ·Act issues; (ii) services in connection with complex land use matters, which are defined to mean the drafting and negotiation of development agreements and the drafting and negotiation of land use entitlements for land use projects of 100 or more residential units or in excess of three (3) acres; and (iii) any legal services project that the City Manager and the City Attorney agree is anticipated to require more than 20 hours of services on the project. Special Services excludes any legal services in the categories of Code Enforcement Litigation, General Litigation, and Bond Counsel and Disclosure Counsel Services, as defined below, with the exception that review of bond counsel and disclosure counsel work prepared by another firm under separate contract with the City shall be provided as special services. Except for the City Attorney and Assistant City Attorney, attorneys providing Special Services shall be billed at the following rates: $2-03-$211 per hour for associates in the first through third year of legal practice $224-$233 per hour for associates in the fourth through seventh year of legal practice $2-17-$288 per hour for senior attorneys and shareholders $460-$167 per hour for paralegal services With respect to the City Attorney and Assistant City Attorney, any services (including travel time) they provide on matters that otherwise would be defined as Special Services, shall be billed as General Services unless the City Manager provides advance written approval that specific aspects of the City Attorney's or Assistant City Attorney's Agreement between City of Moorpark and Richards, Watson & Gershon 12853-0001 \1732960v6.doc Page A-1 172
work may be billed as Spedal Services. ' Code Enforcement Litigation. For legal services provided in connection with the preparation, filing and litigating civil and criminal lawsuits to enforce the municipal code, including criminal prosecutions complaints, the rate will be a flat blended rate of $208 $217 per hour for associates and $240$249 per hour for senior attorneys and shareholders. General Litigation. General Litigation includes the representation of the City, City Agencies, or both, in court and other legal proceedings, including, without limitation, arbitration and mediation, and in administrative proceedings before other bodies, but shall exclude legal services in the category of Code Enforcement Services, as defined above. Litigation shall be provided at the following rates: $203-$211 per hour for associates in the first through third year of legal practice $224-$233 per hour for associates in the fourth through seventh year of legal practice $309--$321 per hour for senior attorneys and shareholders $460-$167 per hour for paralegal services Travel Time. Travel time to and from City Hall by the City Attorney and Assistant City Attorney will be charged as follows: (1) the first (1st) through third (3rd) round trip each calendar month will not be charged the City; and (2) the fourth (4th) and subsequent round trip in the same calendar month will be charged at the applicable hourly rate for the service. Travel time for attorneys other than the City Attorney and Assistant City Attorney to and from City Hall and any travel time to destinations other than City Hall for any attorney, including the City Attorney and Assistant City Attorney, will be charged at the applicable hourly rate for the service. Travel time for any attorney not permanently working from the Los Angeles Office will only include the time from the Los Angeles Office to City Hall or other destination and will not include time to and from the attorney's originating office. Billing Increments and Accounts. Time incurred in providing these services will be billed in increments of one-tenth of an hour to billing accounts set up as specified by City staff. Reimbursable and/or Other Costs. Mileage will be billed at the standard rate established by the IRS for deducting the operating expenses of an automobile used for business purposes. This rate established by the IRS currently is ~54.5 cents per mile. Copying costs will be charged at 5 cents per page. There will be no charge for facsimiles. All other costs, such as long distance telephone charges, messenger and delivery services, and legal research services will be charged only at the firm's actual out-of-pocket expenses, with the exception that the City will not be billed for telephone calls within Los Angeles and Ventura Counties. The firm will not charge for word processing and similar clerical tasks, and for the costs of first-class postage. Bond Counsel and Disclosure Counsel Services. Bond counsel services include a review of the proceedings for the issuance and sale of bonds, step-by-step as taken, the Exhibit A to Agreement between City of Moorpark and Richards, Watson & Gershon 12853-0001 \1732960v6.doc Page A-2 173
preparation of all resolutions and other documents relating to the issuance and sale of the bonds, the drafting of the trust indenture and all closing documents, including the appropriate certificates and receipts, and the drafting of the approving legal opinion regarding the bonds at closing and all other services customarily provided by bond counsel. Our fee for performing services as bond counsel with respect to each series of bonds will be $35,000 plus 0.20 percent of the principal amount from $5,000,000 to $10,000,000, plus 0.10 percent of the principal amount in excess of $10,000,000 up to $35,000,000, plus 0.05 percent of the principal amount of bonds in excess of $35,000,000. For disclosure counsel, our services include the preparation of the official statement and the continuing disclosure agreement. On the basis of the information that is made available to us and without undertaking to determine independently the accuracy, completeness or fairness of that information, we provide a letter at the closing and the delivery of the bonds addressed to the issuer and indicating that nothing has come to our attention that causes us to believe that the official statement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Our fee for performing services as disclosure counsel with respect to each series of bonds will be the greater of $20,000 or one-half of our bond counsel fee. The proceedings will be structured so that our fees and expenses will be paid or reimbursed from sale proceeds of the bonds. Outside Counsel, Experts and Consultants. In the event that it is necessary in the opinion of the City Attorney or City Council to retain outside legal counsel, professional consultants, experts, or other specialists, and RWG is authorized by the City Council to hire such person or entity, RWG shall pay the actual cost for the services and shall include the direct cost payment amount on RWG's regular monthly invoice or on a separate invoice, at the direction of the City Manager, for payment by the City. Such outside services shall not be retained by RWG without prior authorization of the City Council. In the event RWG hires outside legal counsel, professional consultants, experts or other specialists, City and City Agencies hereby agree that RWG shall not be liable (including without limitation, vicariously liable) or otherwise responsible for the acts, omissions, negligence, including but not limited to, professional negligence, of those persons or entities. In agreements between RWG and the outside legal counsel, professional consultant, expert or other specialist, RWG shall seek to obtain indemnification of RWG, the City and City Agencies for the acts, omissions, negligence, including but not limited to, professional negligence, of those persons or entities. RWG and City (and City Agencies in appropriate circumstances), shall meet and confer and develop a mutually agreeable form of indemnification to be used in each contract with any outside legal counsel, professional consultants, experts or other specialists. RWG shall obtain the City's (and City Agency's in appropriate circumstances) prior written consent to any revisions to a mutually agreed form of indemnification. RWG shall have no obligation to retain any legal counsel, professional consultant, expert or other specialist that refuses to accept an approved form of indemnity. Exhibit A to Agreement between City of Moorpark and Richards, Watson & Gershon 12853-0001\1732960v6.doc Page A-3 174
Shared Research or Legal Opinions. In the event of litigation or an issue that affects more than one client of RWG and RWG proposes to create a pooled billing account for that litigation or work, the City Manager shall be provided with a written statement of the method by which RWG proposes to bill for the service, including the City's or City · Agency's pro rata share of the time billed to that pooled account.. In the event that the City Manager does not accept the proposal and does not want to be included in the pooled billing account, but subsequently requests that work be done on the matter that was the subject of the proposal, the City shall be billed in accordance with this Agreement and not in accordance with the terms of the pooled billed account. Exhibit A to Agreement between City of Moorpark and Richards, Watson & Gershon 12853-0001 \1732960v6.doc Page A-4 175