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Agenda Item 33.

City Council Meeting

Meeting Date:	06/06/2017
FROM:	City Manager

Subject:

Amendments to Legal Services Agreements

RECOMMENDATION

Approve Amendment No. 6 to the Amended and Restated Agreement for Professional Legal Services dated July 1, 2004 between the City of Brea and Richards, Watson & Gershon, Inc. and Amendment No. 3 to the Amended and Restated Agreement for Professional Legal Services dated July 1, 2004 between the Successor Agency to the Brea Redevelopment Agency and Richards, Watson & Gershon, Inc.

BACKGROUND/DISCUSSION

The City of Brea (City) and the Successor Agency to the Brea Redevelopment Agency (Successor Agency) contract for legal services with the firm of Richards, Watson & Gershon, Inc. James Markman, a shareholder in the firm, serves as City Attorney and General Counsel to the Successor Agency. The most recent Amended and Restated Agreements for Professional Legal Services (City Agreement and Successor Agency Agreement) are dated July 1, 2004 and have been amended from time to time.

The firm maintains offices in the Brea Civic & Cultural Center. The City and Successor Agency have enjoyed an excellent relationship and have been provided with superior legal service by the firm for several years. At this time, Richards, Watson & Gershon, Inc. is requesting an adjustment to their rates for both the City and Successor Agency Agreements. The last change to the rates for legal services was July 1, 2015 (Attachment A).

ANALYSIS
The proposed changes are reflected in the attached amendments. Amendment No. 6 reflects the changes to the agreement with the City and Amendment No. 4 reflects changes to the Successor Agency Agreement.

City - Amendment No. 6

The firm currently receives $185 per hour for services rendered for the first sixty (60) hours per month of service to the City other than litigation. Services above sixty (60) hours are provided at a rate of $215 per hour for James L. Markman; $205 per hour for other shareholders and senior associates and contract attorneys (those with at least fifteen (15) years experience as licensed attorneys); $185 per hour for other firm associates; $150 for paralegals and $95 per hour for firm clerks. Amendment No. 6 proposes to increase the current hourly rates as follows:

SUMMARY CHART

	Current Hourly Rate	Proposed Hourly Rate - July 1, 2017	Percentage Increase over past 2 years
First Sixty (60) Hours of Service	$185	$190	2.7%
James L. Markman	$215	$230	7.0%
Other Shareholders, Senior Associates, and Contract Attorneys	$205	$220	7.3%
Other Associates	$185	$200	8.11%
Paralegals	$150	$165	10.0%
Clerks	$95	$110	15.8%

Successor Agency Agreement - Amendment No. 4

The current agreement with the Successor Agency provides for a monthly retainer of $2,000, plus $215 per hour for services provided by James L. Markman; $210 per hour for other shareholders and senior associates and contract attorneys (those with at least fifteen (15) years experience as licensed attorneys); $190 per hour for other firm associates; $150 for paralegals and $110 per hour for firm clerks. The proposed Amendment No. 4 increases the hourly rates by $15 per hour, with no change in the monthly retainer as follows:

SUMMARY CHART

	Current Hourly Rate	Proposed Hourly Rate - July 1, 2017	Percentage Increase over past 2 years
James L. Markman	$215	$230	7.0%
Other Shareholders, Senior Associates, and Contract Attorneys	$210	$225	7.1%
Other Attorneys	$190	$215	7.9%
Paralegals	$150	$165	10.0%
Clerks	$110	$125	13.6%

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed this Agenda Report and the proposed amendments at its regular meeting of May 30, 2017 and recommended approval.

FISCAL IMPACT/SUMMARY

For Fiscal Year 2017-2018, the City budget for general legal services is $375,000 while the Successor Agency budget for general counsel is $36,000. Based upon billing history for 2016, excluding litigation matters and public finance work, it is anticipated that the new rate structure will result in an increase of approximately $25,000 for the City and approximately $2,500 for the Successor Agency annually. It is noted, these assumptions do not include litigation matters or public finance work.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Cindy Russell

Attachments
Proposed Amendments