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Home My WebLink About08. Approve Proposed Legal Fee Increase by Rutan & Tucker & Direct CM to sign Legal Svc Letter AgmtAPPROVED B rrs' TO: i i OF • FROM- OFFICE OF i. ATTORNEY DATE. ' f 2018 � • i 1. Approve the proposed legal fee increase proposed by Rutan & Tucker and direct the City Manager to sign the legal services letter agreement. 2. Direct the City Attorney to explore other cost-effective options for the provision of legal services to the City. The law firm of Rutan & Tucker has been providing the City of Downey with legal services since 2008, which relationship was formalized in April 2010 and September 2010 with two legal services agreements. The law firm provides the City with overflow city attorney work, meeting coverage (at the request of the City Attorney), specialty work and land use, real estate and environmental services for development projects in the City. The fees currently charged by the firm, which have remained unchanged since 2010, are as follows: Current Rates: General Municipal Matters/Meeting Coverage $275/hour Specialty Services (election, 1 st Amendment, intellectual property, $275/hour telecommunications) Land Use, Real Estate, Environmental Services $260/hour Litigation $275/hour 711 • In June 2018, Rutan & Tucker requested a fee increase which would bring the general municipal matters work to $325/hour and all other specialty work, including real estate and land LEGAL FEE INCREASE REQUEST BY RUTAN & TUCKER JULY 10, 2018 PAGE 2 use work, and litigation to $370/hour. The City Attorney's Office renegotiated the fee increase so that the increase would be phased -in over two (2) fiscal years as follows: Pr000sed New Rates: SERVICES FISCAL YEAR 2018-19 FISCAL YEAR 2019-2020 General Municipal Matters/Meeting Coverage $300/hour $325/hour Specialty Services (election, 1st Amendment, $325/hour "$370/hour telecommunications, intellectual property) Land Use, Real Estate, Environmental Services $325/hour $370/hour Litigation $325/hour $370/hour All matters (other than the general municipal matters)existing prior to July 1, 2018 will be billed at the old rates until July 1, 2019 when those matters will increase to $370/hour. In order to maintain continuity of pending legal matters currently handled byRutan & Tucker, it is requested that the City Council approve the proposed rates. However, in the next 12 months, the City Attorney's Office will be exploring other cost-effective options for the provision of these legal services to the City. The City Attorney's Office budget has a Tine item appropriated in Fiscal Year 2018-19 to cover the cost of these services, unless covered by another Department budget. ATTACHMENTS Attachment A: June 21, 2018 Letter Agreement. 2 RUTAN RUTAN & TUCKER, LLP Mr.Gilbert A. Livas Downey City Manager 11111 Brookshire Avenue Downey, CA 90241 Richard Montevideo Direct Dial: (714) 662-4642 E-mail: rmontevideo@rutan.com i i•a 0 I got I - 110011�1 i = 4 • ot Man &-Tu—cfe-r,=.t7"jk-ura-n"Tffy-YM-L--Iry=.B,,n MArrhri1L L in connection with various general municipal legal matters, as well as matters requiring specialty legal services, litigation, and all matters related thereto, but on revised terms. As you know, Rutan has been representing the City on a number of matters since 2008, pursuant to a April 6. 2010 Legal Services Agreement and a September 26, 2010 Amendment thereto. This new Legal Services Agreement replaces and supersedes the April 6, 2010 Legal Services Agreement and the September 28, 2010 Amendment, and shall apply to all future legal services provided by Rutan to the City, effective July 1, 2018. In particular, effective July 1, 2018, all legal services involving general municipal matter (currently Downey Matter No. 00 10), shall be billed at the composite rate of $300 per hour for a attorney time, until July 1, 2019. Effective July 1, 2019, all general municipal work (Matter N 00 10) shall be billed at the composite rate of $325 per hour for all attorney time. I Effective July 1. 2018� all specialty legal work e.g.., real estate, environmental, bankrupte intellectual property, housing, CEQA, telecommunications, election law, first amendment la and all litigation work (collectively, "Non -General Work"), shall be billed at the composil rate of $325 per hour for all attorney time, until July 1, 2019. Effective July 1, 2019, all No General Work shall be billed at the composite rate for all attorney time at $37U0 per hour. I] For all current existing matters (other than the general matter no. 00 10)) the hourly attorne rates for all such existing matters will be increased to $370 per hour. Please recognize that, whenever possible, legal interns, law clerks, legal assistants and other professionals with a lower billing rate will be utilized, consistent with the proper representation of the interests of the City in connection with this matter and without sacrificing proficiency. In addition to fees, our clients are also billed for all necessary costs incurred in 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 PO Box 1950, Costa Mesa, CA 92628-1950 1 714.641.5100 1 Fax 714.546.9035 12512542.1 a06/21/1 2271028110-0010 8 Orange County I Palo Alto I www.rutan.com ATTACHMENT A RUTAN RUTAN & I kW-KEH, LLP Mr, Gilbert A. Livas June 21, 2018 Page 2 connection with the representation, such as document copying costs, clerk and reporter's transcript fees and costs, service fees, telecopying fees, long distance telephone costs, mileage, computer assisted research, filing fees,- expert and consultant fees and costs- administrative record fees. and other related costs and out-of-pocket expenses, We render our statements on a monthly basis and they are payable within 30 days from the date of the invoice. The invoices will describe the work performed during the billing period and the identity of the individuals providing services, as well as a break down of billed costs. It is customary in matters of this nature that we receive a retainer as an advance against fees and costs prior to commencing work on the matter, however, no retainer amount is being requested at this time, as Downey is an existing client of Rutan in good standing. As you know, Rutan is currently acting as legal counsel to a number of cities and school districts in Orange, San Diego, Los Angeles and Riverside counties, as well as to a large number of private clients. However, Rutan & Tucker's representations of such public and private entities in these other matters are unrelated to its representation of the City in this matter. Rutan & Tucker, therefore, reserves the right to continue to represent all such parties in these other unrelated matters, and any other parties in the future, which may become adverse to the City in matters unrelated to our representations of the City. Your signature below will confirm this understanding and will confirm your waiver, on behalf of the City, of all conflicts of interest of any parties in A�1� future, in matters unrelated to our representation of the City, who may be adverse to the City. 5 11 � ill I I Rule 3-310. Avoiding The Representation Of Adverse Interests, (C) A member shall not, without the informed written consent of each client: (1) Accept representation of more than one client in a matter in which the interests of the clients potentially conflict; or (2) Accept or continue representation of more than one client in a matter in which the interests of the clients actually conflict; or (3) Represent a client in a matter and at the same time in a separate matter accept as a client a person or entity whose interest in the first matter is adverse to the client in the first matter. 111ME01119fli RUTAN RUTAN 4 TUCKER LLP Mr. •: A. Livas June 21, 2018 Page 3 (D) A member who represents two or more clients shall 2 2w It -m -[ if i ij gaics *r 227/029110-0010 12512542 1 a06/21119 Mr. Gilbert A. Livas June 21, 2018 Page 4 If you agree to Rutan's continued representation of the City on the above outlined terms, we are requesting that you provide the City's informed written consent by signing and returning this letter to us at your earliest convenience. We encourage you to seek counsel from your City Attorney regarding the importance of this consent, and we emphasize that you remain completely free to speak to any other independent counsel at any time, even if you decide to sign this Legal Services Agreement and provide the consent requested herein. If the above terms are agreeable to the City, please execute and return this letter, indicating the City's agreement with the above and authorizing this office to act accordingly. If you have any questions or comments with respect to any of the matters set forth in this letter, please do not hesitate to contact the undersigned. We look forward to continuing to work with you and the City towards a successful representation of the City's interests. RM:pj cc: Yvette A Abich Garcia, Esq. Jeffrey Melching, Esq. Bill Ihrke, Esq, Robert Owen, Esq. Allison LeMoine-Bui, Esq. m-mm, IN I Mr. Gilbert A. Livas June 21, 2018 Page 5 I HAVE READ AND UNDERSTAND THE CONTENTS OF THIS LETTER AND CONSENT TO RUTAN & TUCKER, LLP REPRESENTING THE CITY IN ACCORDANCE WITH THE TERMS SET FORTH ABOVE. Dated: June_, 2018 By: Gilbert A. Livas City Manager I XZ4� 11, 0F*jP*1vafK-ffAF% ,