STAFF REPORT. Kelsey Rogers, City Clerk/Administrative Analyst. Richards, Watson & Gershon Rate Increase Request

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1 STAFF REPORT TO: FROM: SUBJECT: Mayor and City Council Kelsey Rogers, City Clerk/Administrative Analyst Richards, Watson & Gershon Rate Increase Request DATE: November 16,2015 Approved for Forwarding: {r"c-<.~~... a es C. McCann, City Manager 1 Issue: Consideration of a Resolution authorizing the City Manager to execute an 2 amendment to the Professional Services Agreement with Richards, Watson & Gershon 3 4 for City Attorney services. 5 6 Recommendation: Adopt the resolution. 7 Background: The City ofmill Valley has contracted with the law firm Richards, Watson 8 & Gerson for legal services since Under the contract, City Attorney Gregory 9 Stepanicich, as well as other representatives from the firm, provide legal guidance 10 concerning City operations and represent the City in matters oflitigation Richards, Watson & Gershon currently bills the City on an hourly basis of $225, which 13 went into effect on January 1, The Firm last increased its litigation rate in 14 November, 2008, which currently stands at $250 - $300 per hour for shareholders and 15 senior attorneys, and $225 - $240 for associates Discussion: The City Attorney has approached the City with a request to increase the rate 18 to $240 per hour. Also, the Firm has requested an increase in litigation services of $ to $325 per hour for shareholders and senior attorneys and $250 for associates. Pursuant 20 to the current service agreement, Richards, Watson & Gershon may request a rate 21 increase every two years. These increases would take effect starting January 1, Before bringing this item to Council, staff researched the rates of other contract City 24 Attorneys in Marin County; five cities responded before the publication of the Council 25 packet. Ofthose who responded (note: the rates and methods ofbilling vary from City to 1 ITEM 3

2 City Council Staff Report City Attorney Rate Increase Request November 16, City), litigation rates are higher than general or basic services, and senior partners are 27 more costly than junior associates and paralegals. On average, general service rates range 28 from approximately $190 per hour to $240 per hour. Litigation fees range from $225 to 29 $271 per hour and some specialized rates are billed at $300 per hour The 2012 amendment to the service contract and the original agreement are attached for 32 review in Attachment 2. Staff recommends adoption of the draft resolution approving the 33 City Attorney's fee increase, as outlined in the attached resolution (Attachment 1) Fiscal Impact: The City has an adopted budget which is estimated to have sufficient funds to 38 accommodate this request. Funds allocated for City Attorney services in the Fiscal Year amount to $135,380. If needed, the City Manager will request a budget adjustment in spring of2016 to accommodate the rate increase. 42 Attachments: Draft resolution (with sixth amendment included as Attachment A) Professional Services Agreement and prior approved agreement amendment Letter from City Attorney Stepanicich requesting rate increase 2

3 RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILL VALLEY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RICHARDS, WATSON, & GERSHON FOR CITY ATTORNEY SERVICES WHEREAS, pursuant to an agreement approved on November 21, 2000, the City ofmill Valley currently receives City Attorney services from the firm ofrichards, Watson & Gershon; and WHEREAS, pursuant to the agreement, the firm ofrichards, Watson & Gershon may request a rate increase every two years, the last fee increase taking place in 2012 (general services) and 2008 (litigation services); and WHEREAS, the firm Richards, Watson & Gershon requests a rate increase in fees for general services from $225 per hour to $240 per hour. They request a rate increase in fees for litigation services from $250 - $300 per hour for shareholders and senior attorneys to $275 - $325. For associates working on litigation they request the fee to go from $225 - $240 per hour to $250 per hour; and WHEREAS, the City Council has determined that the proposed amendment (Attachment A) to the agreement is reasonable and wishes to approve the amended agreement; the new rates taking effect as ofjanuary 1,2016. NOW, THEREFORE, the City Council ofthe City ofmill Valley hereby authorizes and directs the City Manager to execute an amendment to the Professional Services Agreement with Richards, Watson & Gershon for City Attorney services regarding the fee increase request. PASSED AND ADOPTED at a regular meeting ofthe City Council ofthe City ofmill Valley on the 16 th day ofnovember, 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kenneth R. Wachtel, Mayor Kelsey L. Rogers, City Clerk!Administrative Analyst 1 ATTACHMENT 1

4 SIXTH AMENDMENT TO AGREEMENT FOR LEGAL SERVICES This Sixth Amendment to Agreement for Legal Services (the "Amendment") is entered into this ofnovember, 2015, by and between the City ofmill Valley (the "City") and Richards, Watson & Gershon, a professional corporation ("Richards"). RECITALS A. The City entered into an agreement with Richards on November 21, 2000 for the provisionofcity Attorney services by Richards (the "Agreement"), and this Agreement was amended by the parties in 2002, 2004,2006,2008 and B. The Agreementprovides for the parties to reviewthe financial provisions ofthe Agreement every two years. C. The City and Richards have conducted this financial review and agree that a modification ofthe billing rates set forth in the Agreementis appropriate. NOWTIIEREFORE in considerationofthe foregoing and other good and valuable consideration, Section 4 ofthe Agreement is amended to read as follows: "S~tion 4. Compensation for Legal Services. a. General City Attorney Services. For City Attorney services, other than litigation or cost recovery matters, Richards will bill the City on an hourly basis at the rate of$240 per hour for work performed by any attorney in the firm. Richards will not bill for time expended by attorneys in routine travel from Richards' offices to City offices. Richards will bill for travel time when attending court appearances or meetings at destinations other than City offices. b. Additional Legal Services. Services rendered on litigation matters will be billed at the rates of$275 to $325 per hour for shareholders and senior attorneys and $250 per hour for associates. Services rendered on cost. recovery matters, such as development proposals where the applicant is obligated to reimburse the City for its legal expenses, will be billed at the above rates. Work performed by paralegals and legal assistants will be billed at $135 per hour." 1. ATTACHMENT A

5 All otherprovisions of the Agreement shall remainin full force and effect.this Sixth Amendment will become effectiveon January 1,2016. IN WITNESS THEREOF, the partieshereby cause this Agreement to be executed by their duly authorized representatives as of the date first set forth above. CITY OF MILL VALLEY By: City Manager _ RICHARDS, WATSON & GERSHON A Professional Corporation By: = ~--- Gregory W. Stepanicich 2

6 ,....I AGREEMENT FOR LEGAL SERVICES (City Attorney) TIDS AGREEMENT is entered into between the City of Mill Valley, a municipal corporation (the "City"), and Richards, Watson, and Gershon, a Professional Corporation ("Richards"). Section 1. Scope of Services. Legal services shall include the/ollowing: a. Attendance at City Council meetings once each month and attendance at other meetings upon request; b. Legal research and provision of legal advice to the City Council, Planning Commission, City Manager and designated City Staff; c. Monitoring and advising the City of new legislation and case law affecting the City; d. Preparation and review ofordinances, resolutions, and agreements; e. Representation of the City and City officials and employees in all claims and litigation filed by or against the City, except those handled by outside counsel;. f. Oversight oflegal matters handled by outside counsel; and g. Such other legal services as may be directed by the City Council or City Manager from time to time. Legal services will not include matters in which "Richards" has a conflict ofinterest that precludes Richards from representing the City, members ofthe City Council, or City officers or employees. If Richards has a conflict of interest or lacks specialized expertise necessary to handle a particular assignment, Richards shall, following consultation with the City Manager, provide the City Council with a recommendation to hire outside counsel. Section 2. Term of Agreement; Biennial Review. This Agreement shall commence on the date ofexecution and continue thereafter until terminated pursuant to Section 7 hereof. City and Richards.shall review the financial provisions contained in this Agreement on or about July I, 2002, and on July 1 of each even-numbered year thereafter, to ensure that its terms and conditions are mutually satisfactory to both parties. In addition, the City Council will meet with the City Attorney on an annual basis to conduct a performance review. Richards will not bill the City for time expended by the City Attorney in conjunction with the annual performance review. Section 3. Staffing Assignments. Gregory W. Stepanicich, a shareholder with Richards, shall be assigned as City Attorney and shall be primarily responsible for the provision of legal.attachment 2

7 ( ( I services to the City, including attendance at City Council meetings. Janet Coleson shall be assigned as Assistant City Attorney and shall be available for attendance at City Council meetings when the City Attorney is unable to attend due to vacation or a scheduling conflict. Associate attorneys and legal assistants shall be utilized where appropriate to assist in conducting legal research; preparing ordinances, resolutions and agreements; provision of legal advice; and other assignments 'appropriate for their level ofexperience. Section 4. Compensation for Legal Services. a. General City Attorney Services. For City Attorney services, other than litigation or cost recovery matters, Richards will bill the City on an hourly basis at the rate of $165 per hour for work performed by any attorney in the firm. Richards will not bill for time expended by attorneys in routine travel from Richards' offices to City offices. Richards will bill for travel time when attending court appearances or meetings at destinations other than City offices. b. Additional Legal Services. Services rendered on litigation matters will be billed at the rates of $ per hour for shareholders and $ per hour for associates. Services rendered on cost recovery matters, such as development proposals where the applicant is obligated to reimburse the City for its legal expenses, will be billed at the above rates. Work performed by paralegals and legal assistants will be billed at $110 per hour. Richards recognizes that the City is operating under budgetary constraints and agrees to make reasonable efforts to contain legal costs, including practicing preventative law to avoid unnecessary litigation. Section 5. Monthly Billings; Expense Reimbursements. Richards shall bill the City on a monthly basis. Each bill shall indicate the date of the work done, the work that was accomplished, the attorney or paralegal who performed the work, and the fee for the work. Reimbursable expenses which are generally chargeable to a client shall be separately itemized including: 1) a long distance telephone service, 2) outgoing facsimile charges, 3) extraordinary operating expenses such as messenger services, overnight mail charges, copying costs for litigation and cost recovery matters and computer-assisted research, 4)' necessary travel and subsistence expenses; 5) court costs, including filing fees, witness fees, and deposition and discovery costs not paid directly by the City. In addition, Richards will waive its normal mileage expense, except for travel to court appearances or destinations other than City offices. The City shall promptly review Richards' monthly statements. Following approval ofmonthly statements, City shall compensate Richards for services rendered and expenses incurred at the rates and in the amounts provided in this Agreement on a monthly basis. Section 6. Attendance at City Attorney Functions. The City Attorney will continue to regularly attend and participate in the activities and functions ofthe City Attorneys' Department 2

8 f ( J ofthe League ofcalifornia Cities, and will attend retreats and team-building sessions conducted by the City, at no cost to the City. Section 7. Amendment; Termination. This Agreement may be amended from time to tiine by written agreement ofcity and Richards. This Agreement may be terminated by City at any time upon written notice to Richards and by Richards upon sixty (60) days' written notice to City. In the event of termination, City shall be responsible only for fees and costs incurred through the effective date ofthe termination. Section 8. Retention of Other Counsel, Specialists or Experts. Richards will not retain or otherwise incur an obligation to pay other legal counsel, specialists or experts for services in connection with this Agreement without prior approval of'the City Council or City Manager. Section 9. Professional Liability Coverage. During the term of this Agreement, Richards shall at all times maintain insurance coverage for professional liability. A copy of the current policy shall be provided to the City,on an annual basis. CITY OF MILL VALLEY Date: ---=_---==--- _ By: Don Hunter, City Manager _ RICHARDS, WATSON, AND GERSHON. Date: 1/-~-(f7; S:\CONTRAcnAgrcementfor LegalServices- City Attorney.cioc 3

9 RESOLUTION NO RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY OF MILL VALLEY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RICHARDS, WATSON & GERSHON FOR CITY ATTORNEY SERVICES WHEREAS, pursuant to an agreement approved on November 21~ 2000~ the City of Mill Valley currently receives City Attorney services from the firm of Richards, Watson & Gershon; and WHEREAS, pursuant to the agreement, the firm of Richards, Watson & Gershon may request a rate increase every two years, the last fee increase taking place in December 2008; and WHEREAS, the firm Richards, Watson & Gershon requests an increase in fees for general legal services from $200 per hour to $225 per hour; and WHEREAS, the City Council has determined that the proposed amendment (Attachment A) to the agreement is reasonable and wishes to approve the amended agreement. NOW THEREFORE, BE IT RESOLVED, that the City Council ofthe City ofmill Valley hereby authorizes and directs the City Manager to execute an amendment to the Professional Services Agreement with Richards, Watson & Gershon for City Attorney services regarding the fee increase request PASSED AND ADOPTED at a meeting ofthe City Council ofthe City ofmill Valley on the 3 rd day ofdecember, 2012~ by the following vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers: Lion, Moulton-Peters, Wachtel, Marshall, Berman None None None Andrew Berman, Mayor

10 ATTACHMENT A FIFTH AMENDMENT TO AGREEMENT FOR LEGAL SERVICES This Fifth Amendment to Agreement for Legal Services (the "Amendment" is entered into this 3 rd day of December, 2012, by and between the City of Mill Valley (the "City") and Richards, Watson & Gershon, a professional corporation ("Richards"). RECITALS A. The City entered into an agreement with Richards on November 21, 2000 for the provision of City Attorney services by Richards (the "Agreement"), and this agreement was amended by the parties in 2002, and B. The Agreement provides for the parties to review the financial provisions of the Agreement every two years. C. The City and Richards have conducted this financial review and agree that a modificationofthe billing rates set forth in the Agreementis appropriate. NOW THEREFORE in consideration of the foregoing and other good and valuable consideration, Section 4(a) ofthe Agreementis amended to read as follows: "Sedion 4. Compensation for Legal Services. a. General City Attorney Services. For City Attorney services, other than litigation or cost recovery matters, Richards will bill the City on an hourly basis at the rate of $225 per hour for work performed by any attorney in the finn. Richards will not bill for time expended by attorneys in routine travel from Richards' offices to City offices. Richards will bill for travel time when attending court appearances or meetings at destinations other than City offices. All other provisions of the Agreement shall remain in full force and effect. This Fifth Amendment will become effective on January IN WITNESS THEREOF. the parties hereby cause this Agreement to be executed by their duly authorized representatives as ofthe date first set forth above. CITY OF MILL VALLEY By:~C.""""f'P... Manager RICHARDS, WATSON & GERSHON A Professio Corporation

11 It~~, RICHARDS IWATSON IGERSHON lc[. ATTORNEYS AT LAW -A PROFESSIONAL CORPORATION 44 MontgomelY Street,Suite3800. SanFrancisco. Callfomla Telephone Facsimile RICKARD RICKARDS November 2, 2015 ( ) BLENN R.WATSON ( ) HARRY L GERSHON ( ) STIVPI L DORSlY W1WAML STRAUS2 MITCHELL E.Allon GREGORYW. STEPANIClCH ~UINN M. IARROW CAROL W. LYNCH GREGORY M. KUNERT THOMAS M.IIMBO ROIERT Co CECCON STEVEN H. KAUfMANN I(!VIN G. ENNIS ROBIN D. HAUlS MICHAEL ESTRADA laurence S. WIENER I. TILDEN KIM SASKIA T. ASAMURA KAYSUO. SUME pmr M. THORSON lamesl MARICMAN CRAIG A. STEELE T. PETER Plua TURNCE.. BOOA USAIOND ROlIANNE M. DiAl 11MG. GRAYSON RatA. ClARKE MICHAEL f. YOSHIBA. REGINA N. DANNER PAUlAGUTIERREZ... EZA IRUCE W. GALLOWAY DIANA K. CHUANG PATRICK Ie. BOUO NORMAN A. DUPONT DAVID M. SNOW lolly A. ENRIQUEZ GINETTA L GIOVINCO TRISKA ORTIZ CANDICE Ie.LEE JENNIFER PETRUSIS STiYEN L flower TOUSSAINT S. BAILlY AMYGREYSON DEBORAH.. KAICMAN D. CRAIG lox MARICEIA E.MARltClClUrN SERITA.. YOUNG SEANB. GIIBONS AARON Co O'DELL AMANDA L CHARNE STEPHANIE CAO PATRICK D. SKANAN STEPHEN D. LEE YOUSTINA N. AZlZ BRENDAN KEARNS IM.E H. IROCHARD NICHOLAS R. GHIREW ISRASIWl CHRISTINA L BROWNING ISAAC M. ROSEN ROMTIN PARVARESH Of COUllsa. ROCHELI.E BROWNE TERESA HD-URANO BENAM. STINNETT LDBNl&1IU OffiCE TELEPHONE 21] ORAIIGE COUNTY OffiCE TELEPHONE TUlICULA orner TELEPHONE ]73 Jim McCann, City Manager Mill ValleyCity Hall 26 Corte Madera Avenue Mill Valley, CA Re: DearJim, Sixth Amendment to Agreement for Legal Services My law firm is requesting that the City Council consider an increase in our billing rates under our Agreementfor Legal Services, originally enteredinto with the Cityof Mill Valley on November21, 2000 and amended five times to reflect billing rate increases over the past 15 years. Our billingrate for General City Attorney services was last increasedon January 1,2013, to $225 per hour. Our billing rate for litigation matters and matters that can be billedto third partieswas last increased in November 2008, Currently, our billing rates for these matters are $250 to $300 for shareholders and senior attorneysand $240 per hour for associates. We are requestingthe following increases to be effective on January 1,2016: 1. For City Attorneyservices, other than litigation or matters that can be billedto third parties,the proposed billingrate is $240 per hour for workperformed by any attorney in the firm. 2. For litigationmatters and matters that can be billedto third parties, the proposedbilling rates are $275 to $325 per hour for shareholders and senior attorneys and $250 per hour for associates. We have enclosed a proposed Sixth Amendment to the Agreement for Legal Services that reflectsthe proposedbilling rate increases if approved by the City Council. ATTACHMENT 3

12 RICHARDS IWATSON IGERSHON ATTORNEYS ATLAW- A PROFESSIONAL CORPORATION Jim McCann, City Manager November 2, 2015 Page2 We have greatly enjoyed serving as City Attorney for Mill Valleyfor the past 15 years and assisting the City in servingthe community. We hope to have the privilege of continuing to servethe Cityfor manyyears to come. Very truly yours, Enclosure oo01\l898026vl.doc