HomeMy WebLinkAboutAGENDA REPORT 2019 0619 REG CCSA ITEM 10E CITY OF MOORPARK,
CALIFORNIA Item: 1O.E.
City Council Meeting
of June 19, 2019
ACTION Approved St of f
Recom m end at ion,
Includ ing Ad opt ion of
Resolution No.
2019-3826. BY B.Garza
E. Consider a Resolution Approving an Annual Consumer Price Index Adjustment
for Rates in the City Attorney Legal Services Agreement with Richards, Watson
& Gershon. Staff Recommendation: Approve Resolution No.
2019-3826, approving a 3.34% CPI adjustment for rates in the legal services
agreement with Richards, Watson & Gershon, effective as of July 1, 2019.
(Staff: Brian Chong)
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Brian Chong, Assistant to the City Manager
DATE: June 19, 2019 Regular Meeting
SUBJECT: Consider a Resolution Approving an Annual Consumer Price Index
Adjustment for Rates in the City Attorney Legal Services Agreement
with Richards, Watson & Gershon
BACKGROUND
On November 7, 2012, the City Council approved a legal services agreement with the
firm of Richards, Watson & Gershon (RWG) for the provision of City Attorney services.
The agreement 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 3.34%, City
Council approval of the annual adjustment for FY 2019/20 is required.
DISCUSSION
The current City Attorney agreement contains provisions for annual service rate
adjustments based on CPI from the April-to-April period, to be effective July 1, at the
start of each fiscal year. Pursuant to the contract, CPI was to be based on the Los
Angeles-Riverside-Orange County region, which was subsequently split into Los
Angeles and Orange County regions. Thus, as was done for the FY 2018/19 CPI
adjustment, the CPI for the Los Angeles-Long Beach-Glendale region (Los Angeles
County) is now used for the adjustments. The CPI adjustment for the period of April
2018 – April 2019 was +3.34%. As such, RWG is entitled to a rate increase of 3.34%,
and such increase requires prior written City Council approval.
Item: 10.E.
701
Honorable City Council
June 19, 2019 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 $183 All Attorneys $189
Excess Hours $217 Associates $224
$233 All Other Attorneys $241
Special Services $211 Associates 1-3 years of legal practice $218
$233 K. Ennis/N. Ghirelli and Associates $241
4-7 years of legal practice
$288 Senior Attorneys and Shareholders $298
$167 Paralegals $172
Code Enforcement Litigation
$217 Associates $224
$249 Senior Attorneys and Shareholders $258
General Litigation
$211 Associates 1-3 years of legal practice $218
$233 Associates 4-7 years of legal practice $241
$321 Senior Attorneys and Shareholders $332
$167 Paralegals $172
Staff has confirmed the CPI adjustment and calculations contained in the
correspondence from RWG (Attachment 1).
FISCAL IMPACT
The proposed FY 2019/20 Budget contains $79,400 for legal services. Staff will monitor
the City’s use of legal services during FY 2019/20 and seek additional budget, if
warranted, for additional legal services during the Mid-Year Budget Review in early
2020.
STAFF RECOMMENDATION
Approve Resolution No. 2019-____, approving a 3.34% CPI adjustment for rates in the
legal services agreement with Richards, Watson & Gershon, effective as of July 1,
2019.
Attachment 1 – Correspondence from RWG with Revised Exhibit A – Rates
Attachment 2 – Resolution
702
SAW
May 29, 2019
Troy Brown
City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
Kevin G. Ennis
T 213.626.8484
1~ 213.626.0078
E kennis@rwglaw.com
355 South Grand Avenue
40th Floor
Los Angeles, CA 90071-3101
rwglaw.com
Re: Annual CPI Adjustment in City Attorney Contract Rates Effective July 1, 2019
that requires City Council Approval
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%J, and any other adjustments in the rates, shall
require prior written approval of the City Council.
As you may know, in 2018 the United States Bureau of Labor Statistics eliminated the
Los Angeles-Anaheim-Riverside Consumer Price Index and replaced it with the Los Angeles-Long
Beach-Anaheim Consumer Price Index. We have therefore used the Los Angeles-Long Beach-
Anaheim Index for purposes of the rate adjustment.
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-Long Beach-Anaheim
Los Angeles San Francisco Orange County Temecula Central Coast
ATTACHMENT 1
703
Troy Brown
May 29, 2019 Page ~ 2
region) over the applicable time period (April 2018 to April 2019). A copy of the spreadsheet is
attached as Attachment A.
That spreadsheet shows the CPI changed 3.34% over the applicable time period. As it is
more than three percent (3%), the adjustment in rates by 3.34% is not automatic and does
require City Council approval. After applying a 3.34% increase to our existing rates, the old
rates (up to June 30, 2019) and the new rates (effective July 1, 2019) are shown below:
Type of Service Old Rates New Rates
General Services
First 20 Hours $183 All Attorneys $189
Excess Hours $217 Associates $224
$233 All Other Attorneys $241
Special Services
$211 Associates 1— 3 years of legal practice $218
$233 K. Ennis/N. Ghirelli and Associates 4-7 $241
years of legal practice
$288 Senior Attorneys and Shareholders $298
$167 Paralegals $172
Code Enforcement Litigation
$217 Associates $224
$249 Senior attorneys and Shareholders $258
General Litigation
$211Associates 1-3 years of legal practice $218
$233 Associates 4-7 years of legal practice $241
$321 Senior attorneys and Shareholders $332
$167 Paralegals $172
Also attached as Attachment B, is a revised version of Exhibit A to the Agreement
showing the changes in rates in legislative format.
Please let me know if you need any clarification or assistance from me in my private
capacity in preparing or presenting this to the City Council. If you have any questions, please do
not hesitate to contact me.
Very truly yours,
Kevin G. Ennis
Attachments)
704
Attachment A
Spreadsheet showing CPI Changes
705
CITY OF MOORPARK
CPI INCREASE 3.34%, ADJUSTMENT IN CONTRACT RATE, EFFECTIVE JULY 1, 2019
CPI-All Urban Consumers (Current Series) CURRENT I NEW
Original Data Value RATES
$167 $172
Series Id: CUURS49ASA0 $183 $189
Not Seasonally Adjusted $211 $218
n I nci i w u i wa ry iycica-wi 19 ocai,i rru ion icu i i, La'A,
Series Title: $217 $224
nil i irknn i imcrc not ccocnnnll ,orlii nctr�rl
Area: Los Angeles-Long Beach-Anaheim, CA $233 $241
Item: All items $249 $258
Base Period: 1982-84=100 $288 $298
Years: 2009 to 2019 $321 $332
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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
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
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
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
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
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
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
2016 247.155 247.113 247.873 248.368 249.554 249.789 249.784 249.700 250.145 251.098 250.185 250.189
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
2018 261.235 263.012 264.158 265.095 266.148 265.522 266.007 266.665 268.032 269.482 268.560 267.631
2019 269.468 269.608 271.311 273.945
CPI INCREASED 8.850
INCREASED 3.34%
706
Attachment B
Revised Exhibit A to Legal Services Agreement
707
Exhibit A -Rates
(Effective July 1, 2019)
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 18 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 233 per hour for associates and 3- 241 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:
1-~ - 21 per hour for associates in the first through third year of legal practice
241 per hour for associates in the fourth through seventh year of legal practice
~~~~- 298 per hour for senior attorneys and shareholders
172 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 Page A-1
12853-0001 \1732960v7.doc 708
work may be billed as Special 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
233 per hour for associates and 258 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:
1~- 218 per hour for associates in the first through third year of legal practice
~- 241 per hour for associates in the fourth through seventh year of legal practice
- 332 per hour for senior attorneys and shareholders
~- 172 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 (4t") 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 X58.0 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 Page A-2
12853-0001 \1732960v7.doc 709
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 Page A-3
12853-0001 \1732960v7.doc 710
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 Page A-4
12853-0001 \1732960v7.doc 711
ATTACHMENT 2
RESOLUTION NO. 2019-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, APPROVING AN ANNUAL
CONSUMER PRICE INDEX ADJUSTMENT FOR RATES IN
THE CITY ATTORNEY LEGAL SERVICES AGREEMENT
WITH RICHARDS, WATSON & GERSHON
WHEREAS, the City Council approved a legal services agreement with the firm
of Richards, Watson & Gershon (RWG) on November 7, 2012, for the provision of City
Attorney services, and that Agreement was fully executed on November 16, 2012; and,
WHEREAS, said legal services agreement provides that the service rates for City
Attorney services shall be adjusted annually on July 1 consistent with the Consumer
Price Index (CPI); and,
WHEREAS, the applicable CPI adjustment for the 2019 period is 3.34%; and,
WHEREAS, said legal services agreement requires City Council approval of any
annual adjustment of 3.00% or more.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves an annual Consumer Price Index
adjustment to the rates set forth in the legal services agreement with the firm of
Richards, Watson & Gershon of 3.34%, as listed in Exhibit A, attached hereto.
SECTION 2. This resolution shall become effective on July 1, 2019.
SECTION 3. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this ____ day of June 2019.
________________________________
Janice S. Parvin, Mayor
ATTEST:
___________________________________
City Clerk
Exhibit A: New Service Rates
712
Resolution No. 2019-___
Page 2
EXHIBIT A: NEW SERVICE RATES
Type of Service Old Hourly Rates New Hourly Rates
General Services
First 20 Hours $183 All Attorneys $189
Excess Hours $217 Associates $224
$233 All Other Attorneys $241
Special Services $211 Associates 1-3 years of legal practice $218
$233 K. Ennis/N. Ghirelli and Associates $241
4-7 years of legal practice
$288 Senior Attorneys and Shareholders $298
$167 Paralegals $172
Code Enforcement Litigation
$217 Associates $224
$249 Senior Attorneys and Shareholders $258
General Litigation
$211 Associates 1-3 years of legal practice $218
$233 Associates 4-7 years of legal practice $241
$321 Senior Attorneys and Shareholders $332
$167 Paralegals $172
713