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HomeMy WebLinkAbout03. Consider amending contract with District CounselCentral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 3, 2016 Subject: 3. AMEND THE CONTRACT FOR LEGAL SERVICES WITH KENTON L. ALM, ESQ. AND MEYERS, NAVE, RIBACK, SILVER & WILSON Submitted By: Teji O'Malley Human Resources Manager Initiating Dept./Div.: Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION: Roger S. Bailey General Manager ISSUE: Renewal and/or amendment of the contract for legal services with Senior Principal Kenton L. AIm, Esq. and Meyers, Nave, Riback, Silver & Wilson (Meyers Nave) requires approval by the Board of Directors. BACKGROUND: The District has been receiving general legal services and Counsel from Mr. AIm and Meyers Nave since 1985 by a contractual arrangement. The District's current contract for legal services with Mr. Alm and Meyers Nave expires on December 31, 2018; however, the Board recently concluded Mr. Alm's annual review and determined that contract amendments are warranted. The District proposes to amend the contract to increase the hourly rate of Mr. Alm from $325 to $350 and increase the monthly retainer from $20,900 for 66 hours to $25,160 for 74 hours, as well as clarify what services are included in the retainer. The proposed changes are reflected in the amended Rate Sheet (Attachment 1) of the Meyers Nave contract. The new rates would be effective retroactively to October 1. ALTERNATIVES/CONSIDERATIONS: The Board could elect not to amend the current contract as proposed. FINANCIAL IMPACTS: It is proposed that the hourly rate of Mr. Alm be increased from $325 to $350 and the monthly retainer be increased from $20,000 for 66 hours to $25,160 for 74 hours. COMMITTEE RECOMMENDATION: At its meeting on October 24, 2016, the Administration Committee recommended/did not recommend approval of the attached proposed amendments. Page 1 of 2 POSITION PAPER Board Meeting Date: November 3, 2016 Subject: AMEND THE CONTRACT FOR LEGAL SERVICES WITH KENTON L. ALM, ESQ. AND MEYERS, NAVE, RIBACK, SILVER & WILSON RECOMMENDED BOARD ACTION: Amend the contract for legal services with Kenton L. AIm, Esq. and Meyers Nave. Attached Supporting Document(s): 1. Proposed Meyers Nave Rate Sheet, effective October 1, 2016 • Page 2 of 2 ATTACHMENT 1 MEYERS, NAVE, RIBACK, SILVER & WILSON RATE SHEET Rates Effective October 1, 2016 June -1, 2015 Kenton L. Alm Senior or Equity Principal $35025 Principal $280 Sr. of Counsel $305 Sr. Associate $250 Jr. Associate $240 Paralegal $130 Law Clerk $170 $ Flat Retainer 25,160 0,900 (74& hours per month) *The hourly rates set forth above will be reviewed annually in January of each year. Changes in rates for each category may be requested by Meyers Nave and all modifications will be subject to approval of District. Retainer Services for the purposes of this Agreement are defined as those certain services that are customarily provided on a regular basis and specifically include the following: (a) Attendance at and preparation for Board meetings, agenda review meetings, Board Committee meetings (one (1) committee meeting per month), --(upon risk management meetings and CASA legislative meetings; (b) All 1Legislative review and comment and support activity for CASA Legislative Committee and other ordinary District Counsel services in support of wastewater related industry matters; gFetifF.J-Eno compensation is provided for attendance at CASA coftferences or industry conferences unless preapprovedy; (c) All telephone calls lasting less than twelve (121 minutes and/or the first twelve 021 minutes of telephone calls exceeding twelve (121 minutes in length, excepting calls on assigned litigations matters; Page 1 (d) Initial receipt and review of all correspondence, documents, faxes and e-mails, except on assigned litigations matters; (e) Preparation of and presentation of advice to Board and Board Members (including customary ancillary activities related to representing the Board); Twelve (12) hours per week of onsite (District Counsel Office Hours) legal services to be provided by Kenton L. Alm with assistance of a partner level attorney and an assigned associate level attorney, acceptable to the District. Retainer Services will initially be billed at the blended hourly rate based on seventv-four sixty six (7466) hours per month. Either party to this Agreement can on six (6) month intervals ask that this hourly amount be evaluated and adjusted to reasonably reflect ongoing use of Retainer Services including adjustments to the services included such as District onsite office hours. A commensurate adjustment to the retainer fee will be implemented at that time. Page 2 ATTACHMENT 2 MEYERS, NAVE, RIBACK, SILVER & WILSON STATEMENT OF FEE AND BILLING INFORMATION The following is a general description of our fee and billing policies. These general policies may be modified by the specific engagement letter or agreement to which this summary is attached. Professional Fees. Our fees for professional services are based on the fair value of the services rendered. To help us determine the value of our services, our attorneys and paralegals maintain time records for each client and matter. Our attorneys and paralegals are assigned hourly rates which are based on years of experience, specialization, training and level of professional attainment. We adjust our rates periodically (usually at the beginning of each year) to take into account inflation and the increased experience of our professional personnel. To keep professional fees at a minimum, legal work that does not require more experienced attorneys will be performed, where feasible, by attorneys with lower billing rates. Of course, the quality of the work is paramount and we do not sacrifice quality to economy. Before undertaking a particular assignment, we will, if requested, provide you with a fee estimate to the extent possible. Estimates are not possible for some matters; however, and cannot be relied on in many others because the scope of our work will not be clear at the outset. When a fee estimate is given, it is only an estimate; it is not a maximum or minimum fee quotation. The actual fee may be more or less than the quoted estimate. Billing and Payment Procedures. Unless other arrangements are made at the time of the engagement, invoices will be sent monthly. Invoices for outside services exceeding One Hundred Dollars ($100) may be billed separately. Occasionally, however, we may defer billing for a given month or months if the accrued fees and costs do not warrant current billing or if other circumstances would make it appropriate to defer billing. Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm's in-house administrative costs include, but are not limited to, duplicating, facsimile charges, telephone charges, email, postage, mileage and other administrative expenses. We have determined that the most effective method of accounting for these administrative costs is to charge a flat three percent (3%) of the professional fees incurred. The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all Page 3 third -party expenses, delivery charges, travel expenses outside of the San Francisco Bay Area, outside research services, filing fees, expert witness and expert consultant fees. If you have any questions regarding an invoice, the billing manager, controller or shareholder in charge are available to answer your questions. For any unresolved matters, the Bar Association has an arbitration mechanism that can be used to resolve such matters. Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. To avoid burdening those clients who pay their statements promptly with the added costs we incur as a result of late payments, a late charge will be assessed on statements not paid within thirty (30) days. The maximum monthly late payment charge will be 1.5 percent per month. In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys' fees and other costs of collection. 2458619.1 Page 4