HomeMy WebLinkAbout7/28/1999 - STAFF REPORTS (12) OPU'TAN & TUCKER, L-L-P
ATTORNEYS AT LAW
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June 2, 1999
Honorable Mayor and Members of the
City Council and Redevelopment Agency
CITY OF PALM SPRINGS
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Re: Compensation For Legal Services
Dear Mayor Kleindienst and Councilmembers:
In connection with the preparation of the 1999-2000 Budget, I would like to describe the
charges for legal services to the City and Agency proposed by this office for the coming fiscal
year(s)•
Our compensation has been governed over the previous year by our Second Amendment
to Legal Services Contract dated June 20, 1996. The terms of that agreement would be
superseded by this proposal. Given the negative state of the economy over most of the last
decade and the fiscal pressures on the City, we have kept our rates stable, and since 1990 have
only asked for one general increase (2d Amendment approved July 16, 1996).
We now would propose an increase in charges for general, special, and litigation services
of Ten Dollars ($10.00) per hour, in two $5 increments (therefore averaging a 2-3% average
annualized increase). One other change is that all charges will be assessed on a blended basis.
Previously, charges were based on the rate of the individual attorney up to a cap. One other
change is that the volume of work subject to the initial discount will be reduced from 150 to 100
hours per month. This is because there has been a decline in the volume of work from 9,801
hours in 1991 to 4,230 hours in 1998.
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RUTAN & TUCKER, LLP""'
ATTORNEYS AT LAW
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Honorable Mayor and Councilmembers
June 2, 1999
Page 2
The range and sophistication of the City's legal affairs is truly numbing, and few firms
would have the breadth necessary to render the full range of services needed. Over the last
several years we have handled all of the following:
1. Personnel and labor questions;
2. Environmental litigation, including successfully defending the City's most
significant development projects: Canyon, Shadowrock, Palm Mountain;
3. Gaming issues, including a card club ordinance and defense of litigation by the
California Attorney General;
4. Native American issues, advising the City on its various negotiations with the
Agua Calienta Band;
5. Code enforcement and abatement matters;
.6. Complicated privatization management/lease arrangements for the Convention
Center, Golf Course and Wastewater Treatment Plant;
7. All airport matters, including issues involving the FAA;
8. All land acquisition and eminent domain proceedings;
9. Election and finance matters including measures concerning adoption of a charter;
the Airport and Wastewater Treatment Plant; the utility tax; Propositions 62 and
218; transient occupancy tax; public safety assessment; and similar matters;
10. Redevelopment and housing issues;
11. Economic development transactions involving developers such as John Wessman
and others, and the current Promenade Project;
12. Litigation matters such as Bridges, McMillan, Living Desert, and others;
13. Energy municipalization and contract negotiation;
14. Toxics and environmental liability issues;
749/014094-0001/3265766. W06/02199
RUTAN & TUCKER, LL) 4D
ATTORNEYS AT LAW
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Honorable Mayor and Councilmembers
June 2, 1999
Page 3
15. Major contract negotiations with Palm Springs Disposal, towing contracts,
landscape contracts and numerous others;
16. Developed a workout plan for the City's failed assessment district (AD 155);
17. Successfully handled the City's public financings; and
18. General municipal services concerning contract review; preparation of ordinances,
public bidding requirements, franchising, Brown Act issues, conflict of interest
issues, land use and planning issues, historic preservation, sign ordinance, public
records acts and similar issues.
While we do not claim perfection, in all the foregoing matters we have (a) protected the
City from any significant financial liability, (b) minimized litigation, (c) negotiated contracts and _.
arrangements which have proved favorable to the City over time. We have had no transactions
which have subsequently become an embarrassment (which occurred frequently in the era before
we were retained in 1990).
While we are proud of our work for the City, since we have only sought one increase
since 1990, and our costs continue to escalate, it is becoming more difficult to justify using our
more senior attorneys given the rate structure. When an attorney who could otherwise collect
over $250 per hour for other clients can only collect $95 per hour on Palm Springs matters, it
becomes more and more difficult. The rate increase we are proposing will help address this,
and is summarized below.
For the City and our own accounting purposes, we have previously established separate
categories, depending upon the nature of the services. Services are divided into general services
and special services, which include litigation, redevelopment, personnel, franchising, enterprise
and similar matters. These categories and the existing and proposed hourly rates for services
are as follows:
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7491014094-0001/3265766. m06/02/99
RUTAN & TUCKER, LL�
ATTORNEYS AT LAW
Honorable Mayor and Councilmembers 9 y
June 2, 1999
Page ,'
I General $95 (1st 150 hrs $100 (W 100 hrs; $100 (1st 100 hrs;
$155 cap thereafter) $155 Blended Rate $155 Blended Rate
thereafter) thereafter)
Special Services $115.00 - $170.00 $175 Blended Rate $180 Blended Rate
Rate
Litigation $115.00 - $170.00 $175 Blended Rate $180 Blended Rate
Redevelopment $115.00 - $170.00 $175 Blended Rate $180 Blended Rate
Financings' $115.00 - $250.00 $125-320 $125-320
or contingent at the or contingent at the or contingent at the
-option of the client option of the client option of the client
As stated previously, the above rates are blended unless otherwise indicated. It should
also be noted that within each of the above broad categories, there are many sub-accounts (i.e.,
under Litigation there are separate accounts for Etling, Living_Desert, Bridges, etc.; under
Redevelopment there are separate accounts for Plaza Theater, Bullock's, Plaza de las Flores,
etc.; and under Enterprise there are separate accounts for Airport, Municipal Golf Course,
Convention Center, Wastewater Treatment Plant, etc.)
You might wonder what the effect will be of changing to a blended rate structure.
Currently, our design rates range from $135 per hour for a first-year attorney, $225 per hour
for a junior partner, and $295 per hour for partners at the level of Bill Wynder and myself.
Now we will charge for attorney time based on a fixed blended rate. For comparison, the
In consideration of the discounted rates provided herein, this Firm does the City's finance
work. If the contingent finance option is selected, percentage fee applies as follows:
One percent (I%) of the first $1 Million executed and delivered; one-half percent (.5%) of the
next$4 Million executed and delivered; and one-quarter percent (.25%)of the balance in excess
of$5 Million subject to a minimum fee of$20,000. In the event that multiple series of Bonds
or Notes are issued, the foregoing fee schedule would be applied to each issue, subject to the
$20,000 minimum fee. Payment of the fees are entirely contingen upon the successful execution
and delivery of the Bonds or Notes and would be payable on or after delivery, except for out-of-
pocket expenses.
7491014094-000113265766. m06/02/99
RUTAN & TUCKER, LI-0
ATTORNEYS AT LAW
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Honorable Mayor and Councilmembers
June 2, 1999
Page 5
ultimate rate proposed of $100 is equivalent to a paralegal rate, while the rate of $165'is
equivalent.to a fourth-year attorney, and the rate of$180 is equivalent to a fifth-year attorney.
Thus, even with these blended rates you will be receiving services on a greatly discounted basis.
Moreover, since most of our work in Palm Springs is done by more senior attorneys whose rates
are higher than the previous caps, changing to a blended rate should not affect things (although
make it a lot easier to calculate the bills).
The hourly billing rates of the particular attorneys are based upon their background and
seniority and are subject to revision from time to time. In addition to our fees for legal services,
we also charge separately for certain costs and expense disbursements. These provisions of our
fee agreement are more specifically described in the "Description of Legal Services" attached
hereto as Exhibit "A" and incorporated herein by this reference. Exhibit "A" also includes the
hourly billing rates of the attorneys who generally work on this account. Also attached is a
revised fee agreement. The above rate structure would be effective on July 1, 1999, with the -.
adjustments shown effective July 1, 2000.
It should be recognized that this Firm may have existing or future clients who, from time
to time; have interests adverse to the City/Agency.. This firm reserves the right to represent
other clients in matters not connected with our representation of the City/Agency.
I would be happy to attend any budget or other meeting to discuss the provision of legal
services and any concerns you may have with the services being provided (so long as I am not
involved in contract negotiations in my official capacity). As a part of my professional
responsibility, 1 wish to advise you that the Council may wish to consult with outside legal
counsel concerning whether to enter into this agreement and the terms and conditions hereof.
Respectfully submitted,
RUTAN & TUCKER, LLP
7--
David J. e
City Attorney and
Agency Counsel Flo
DJA:eIcc: Mr. Rob Parkins
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RUTAN & TUCKER, LLO
ATTORNEYS AT LAW _
Honorable Mayor and Councilmembers
June 2, 1999
Page 6
Exhibit "A"
STATEMENT OF BILLING PRACTICES
FOR EMPLOYMENT OF LEGAL SERVICES
Our fees will be charged on an hourly basis for all time actually expended and are
generally billed monthly with payment due within thirty (30) days after the date of the bill. Our
presently prevailing hourly design rates vary between.$135.00 per hour and $375.00 per hour,
depending upon the experience and background of the individual attorneys. The current hourly
design rate for the attorneys and staff working on this matter will be set forth in the billing
statement. At the end of this exhibit are the current hourly design rates for the attorneys who
will spend the predominate amount of time on this matter. It should be understood that hourly
rates are reviewed, and when appropriate, adjusted to reflect increases in seniority and
experience, as well as inflationary factors. These increases are generally made on an annual
basis effective on the beginning of each calendar year. Notwithstanding the foregoing, where
a blended rate is specified, you will be charged that rate, irrespective of the individual rate of
the attorney.
Rutan &Tucker, LLP will incur various costs and expenses in performing legal services.
These costs and expenses are separately billed to the client and include fees fixed by law or
assessed by public agencies, long distance telephone calls, messenger and other delivery fees,
postage, parking, and other local travel expenses, photocopying (charge of 20 cents per page),
and other reproduction costs, clerical, staff overtime, computer-assisted research fees, travel
costs beyond Southern California (including lodging, meals, and incidentals), and other similar
items, including deposition, reporter fees, and transcript fees. Unless otherwise specified,
attorney travel time is generally billed. In addition, the client will be responsible for paying the
fees of consultants and other outside experts who are retained after consultation with the client.
The monthly billing statements for fees and costs shall indicate the basis of the fees,
including the hours worked, the billable rates charged, and description of the work performed.
All bills are expected to be paid within thirty (30) days of the date of the billing statement. In
the event any statement remains unpaid for more than thirty (30) days after the date of the
statement, interest thereon at the rate of ten percent (10%) per annum shall be due and payable
thereafter on the unpaid balance.
It is expressly understood that the client may discharge Rutan & Tucker at any time.
Rutan & Tucker, LLP may withdraw from representation at any time to the extent permitted by
law under the Rules of Professional Conduct, upon reasonable notice to the client. In the event
749/014094-0001/3265766. .06/02199
RUTAN & TUCKER, LL&
ATTORNEYS AT LAW
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Honorable Mayor and Councilmembers
June 2, 1999
Page 7
of such discharge or withdrawal, client shall pay Rutan & Tucker, LLP fees and costs in
accordance with this agreement for all work done (and costs incurred) through the termination
of Rutan & Tucker's representation of client. Upon such termination withdrawal, Rutan &
Tucker, LLP shall deliver to client all of its files in this matter and any property in possession
at Rutan & Tucker, LLP belonging to client.
HOURLY RATES FOR ATTORNEYS ASSIGNED TO MATTER:
David J. Aleshire $295.00
Fred Galante $165.00
William M. Marticorena $300.00
William W. Wynder $250.00
Richard Montevideo $240.00
David B. Cosgrove $235.00
Hans Van Ligten $230.00
Ski Harrison $225.00
Bob Owen $225.00
Dan Slater $215.00
Jennifer White-Sperling $190.00
Doug Dennington $180.00
Eric L. Dunn $165.00
Jeff Melching $165.00
BLENDED RATES PREVAIL OVER THE HOURLY RATES.
Hourly Rates For Legal Assistants:
Jacqueline Strain $ 85.00
Teri Ford $ 75.00
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PALM SPRINGS
LEGAL SERVICES CONTRACT
This LEGAL SERVICES CONTRACT (the "Agreement") is entered into by and
between the law firm of RUTAN & TUCKER, LLP, ("Rutan & Tucker") and the CITY OF
PALM SPRINGS, a municipal corporation ("City"). The term "City" shall also include the
PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, the PALM SPRINGS
HOUSING AUTHORITY, and all boards, commissions, and other bodies of City. This Legal
Services Contract shall supersede the prior Legal Services Contract dated September 25, 1990,
as amended June 2, 1993, and June 13, 1996; as of July 1, 1999, if approved by the City
Council.
1. SCOPE OF WORK AND DUTIES.
City Council hereby appoints David J. Aleshire as the City Attorney, and hires
Rutan & Tucker as its City. Attorney, to render such legal services as are customarily rendered
by a City Attorney, including attending meetings of the City Council, Redevelopment Agency,
Housing Authority, Planning Commission, and other boards and bodies of City, and its affiliated
agencies, as directed by the City. Representation shall include, but not necessarily be limited a_
to, reviewing ordinances and resolutions, reviewing city contracts, recommending, reviewing
and overseeing the hiring and supervising of any and all other attorneys employed by City to
perform legal work on any litigation or other matter, consulting with or advising City staff on
legal issues which arise within their areas of operation, and generally advising the City Council
and City staff concerning all legal affairs of City. With respect to pending matters handled by
attorneys previously or otherwise employed by City, Rutan & Tucker shall become responsible
for and proceed to represent City in such matters once the same are identified by the City
Council or City Manager and all files have been transferred to Rutan & Tucker.
Rutan & Tucker, as a full-service law fir ri, is prepared to, and will, provide
representation to City in all of its legal affairs, including, but not limited to, municipal law, land
use, environmental, toxics, mining, tort defense, personnel, labor representation, code
enforcement, criminal prosecution, redevelopment, housing, cable television, finance,
franchising, contracts, enterprise matters, and other matters, except where conflicts exist or
where the City Council may otherwise direct. The City Attorney shall represent City in
initiating and defending all litigation unless otherwise directed by the City Council.
All of these duties shall be performed, as directed by the City Council, and the
City Attorney will keep City informed as to the progress and status of all pending matters.
Finally, the City Attorney is expected to manage, control and oversee the delivery of legal
services in a competent,professional, and cost-effective manner. Notwithstanding the foregoing,
it is expressly understood that Rutan&Tucker shall not be responsible for any pending litigation
matter(s) until Rutan & Tucker has specifically appeared in the matter(s) as attorneys of record
on behalf of City. Notwithstanding any other provision contained herein, any legal services can
only be authorized by the City Council or City Manager.
276/099999-0084/3268055.I m06/02/99 -1- PALM SPRINGS LEGAL SERVICES CONTRACT
2. CITY DUTIES.
City agrees to provide such information, assistance, cooperation, and access to
books, records, and other information, as is necessary for Rutan & Tucker to effectively render
its professional services under this Agreement. To the extent City desires services to be
rendered on site, City, at City's expense, will make available sufficient office space, furniture,
telephones, computers, facsimile machines, and secretarial support, as approved by the City
Manager, necessary therefor.
City further agrees to abide by this Agreement, and to timely pay Rutan &
Tucker's bills for fees, costs, and expenses. In addition, City understands that the fee structure
herein represents a blending of rates, with certain services offered at discounted rates, on the
assumption that, due to the volume of work, other services will be rendered at higher rates.
Therefore, insofar as possible, it is the intent of the parties hereto that all matters
of City requiring the rendition of legal services be performed by Rutan & Tucker.- However,
nothing in this Section, or any other part of this Agreement, shall be construed in any manner
as limiting the ultimate and absolute discretion of the City Council, and the City Council solely,
at any time, to assign or reassign legal matters,of City from or to Rutan & Tucker.
3. LEGAL FEES, BILLING PRACTICES, AND PERSONNEL.
Rutan & Tucker's fees will be charged on an hourly basis for all time actually
expended, and such fees are generally billed monthly with payment due within thirty (30) days
after the date of the bill. In addition to David J. .Aleshire acting as,City Attorney, Rutan &
Tucker will provide the following additional attorneys to render the predominate legal services
hereunder:
William W. Wynder: Chief Litigation Deputy/Labor, Personnel
Fred Galante: Assistant City Attorney/Planning, Land Use, General
William M. Marticorena: Deputy City Attorney/Cable, Finance
Richard Montevideo: Deputy City Attorney/Toxics, Mining
Robert O. Owen: Deputy City Attomey/Litigation
M. Katherine Jenson: Litigation
Douglas J. Dennington: Code Enforcement
Rutan & Tucker will exercise its discretion to utilize whichever attorney(s) (and
staff) it determines to be best suited to its rendition of legal services under this Agreement,
consistent with the competent and efficient rendering of legal services, and with a view toward
rendering such services in an economically efficient manner.
Commencing July 1, 1999, a monthly retainer of Ten Thousand Dollars
($10,000.00 ($100.00 per hour)) will be paid by City for up to one hundred (100) hours of
general legal services (excluding the specified services noted hereinafter). For all hours of
general legal services above one hundred (100) hours per month, City will compensate Rutan
& Tucker at a blended hourly rate irrespective of the attorney rendering the legal services, of
One Hundred Fifty-Five Dollars ($155.W) per hour.
276/099999-00&4/3268055.1 m06/02/99 -2- PALM SPRINGS LEGAL SERVICES CONTRACT
-� 0
With respect to additional ssecial areas of legal expertise, including
redevelopment, personnel, labor, cable television, franchising, mining, toxics, major contracts,
enterprise activities, or other similar matters, City will compensate Rutan & Tucker at the
blended rate of One Hundred Seventy-Five Dollars ($175.00)per hour from July 1, 1999; which
rate will be increased to One Hundred Eighty Dollars ($180.00) per hour on July 1, 2000.
With respect to litigation services, City will compensate Rutan & Tucker at the
blended rate of One Hundred Seventy-Five Dollars($175.00)per hour from July 1, 1999; which
rate will be increased to One Hundred Eighty Dollars ($180.00) per hour on July 1, 2000.
Additional information with respect to this fee arrangement is set forth in more
detail in Exhibits "A" and "B" attached hereto and incorporated herein by this reference. In the
event of any conflict in the provisions, the terms of base document shall control over the
exhibits. Blended rates are computed based upon the hours of service irrespective of the rate
of the attorney. Blended rates are also shown for legal assistants.
The foregoing arrangement would remain in effect for at least Fiscal Years 1999-
2000 and 2001-2002. However, the hourly rates of the attorneys at Rutan & Tucker are
reviewed annually and, when appropriate, adjusted to reflect increases in expertise as well as
other appropriate factors. Such increases are made on an annual basis, effective as of the
beginning of each calendar year. While the hourly rates for services rendered by individual "
Rutan & Tucker attorneys may be adjusted as set forth herein, the "blended rates" established
in this Section shall not be adjusted except as provided here, and only upon the approval of the
City Council.
4. COSTS AND OTHER CHARGES.
Rutan & Tucker may incur various costs and expenses in rendering the legal
services required by this Agreement. These costs and expenses are set forth in more detail in
Exhibit "B" attached hereto, and incorporated herein by this reference. City agrees to reimburse
Rutan & Tucker for these costs and expenses in addition to the hourly fees for legal services.
Rutan & Tucker may determine it necessary or appropriate to use one or more
outside investigators, consultants, or experts in rendering the legal services required (particularly
if a matter goes into litigation). City will be responsible for paying such fees and charges.
Rutan & Tucker will not, however, retain the services of any outside investigators, consultants,
or experts without the prior agreement of City. Rutan & Tucker will select any investigators,
consultants, or experts to be hired only after consultation with City.
The cost and expenses referred to herein include certain travel expenses;
transportation, meals, and lodging; when incurred on behalf of the client. Generally, these win
only be charged when outside of the area, and only with the prior agreement of City.
Finally, periodically, when on-site, Rutan & Tucker personnel may be required
to make local and long-distance telephone calls, or make photocopies, or incur other expenses
on behalf of the City as well as other clients. Rutan & Tucker will not be charged for such
276/099999-008413268055.1 mWO2199 -3- PALM SPRINGS LEGAL SERVICES CONTRACT
expenses and, in exchange, will not charge the City for calls made from Costa Mesa or other
locations to the City.
5. STATEMENTS.
Rutan & Tucker shall render to City a statement for fees, costs, and expenses
incurred on a periodic basis (generally monthly). Such statement(s) shall indicate the basis of
the fees, including the hours worked, the hourly rate(s), and a brief description of the work
performed.
6. PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT.
The experience, knowledge, capability and reputation of Rutan & Tucker, its
partners, associates, and employees, were a substantial inducement for City to enter into this
Agreement. Therefore, Rutan & Thicker shall not contract with any other person or entity to
perform, in whole or in part, the legal services required under this Agreement-without the
written approval of City. In addition, neither this Agreement, nor any interest herein, may be
transferred, assigned, conveyed, hypothecated, or encumbered voluntarily, or by operation of
law, whether for the benefit of creditors, or otherwise, without the prior written approval of
City.
7. INDEPENDENT CONTRACTOR.
Rutan & Tucker shall perform all legal services required under this Agreement
as an independent contractor of City, and shall remain, at all times as to City, a wholly
independent contractor with only such obligations as are required under this Agreement. Neither
City, nor any of its employees, shall have any control over the manner, mode, or means by
which Rutan & Tucker, its agents or employees, render the legal services required under this
Agreement, except as otherwise set forth. City shall have no voice in the selection, discharge,
supervision or control of Rutan & Tucker's employees, servants, representatives, or agents, or
in fixing their number, compensation, or hours of service.
8. INSURANCE.
Rutan & Tucker shall procure and maintain, at its sole cost and expense,
comprehensive general liability and property damage insurance, including automobile and excess
liability insurance, and professional liability insurance against all claims for injuries against
persons or damages to property resulting from Rutan & Tucker's negligent acts or omissions
rising out of or related to Rutan& Tucker's performance under this Agreement. The minimum
amount of such insurance shall be Five Million Dollars ($5,000,000.00) or such amount as the
City may determine. Rutan & Tucker shall also carry Workers' Compensation Insurance in
accordance with applicable workers' compensation laws. The insurance required hereunder shall
be kept in effect during the term of this Agreement, and shall not be subject to reduction in
coverage below the limits established herein, nor cancellation, nor termination without thirty (30)
days' prior written notice by registered letter to City. A certificate evidencing the foregoing,
and naming City as an additional insured, shall be delivered to and approved by City prior to
commencement of the services hereunder. ?JV/
27 6109 99 9 9-0084/3 2 6 8 05 5.1 m06/02/99 -4- PALM SPRINGS LEGAL SERVICES CONTRACT
9. COVENANT AGAINST DISCRINIINATION.
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Rutan&Tucker covenants that, by and for itself, its heirs, executors, assigns, and
all persons claiming under or through them, that there shall be no discrimination against, or
segregation of, any person or group of persons on account of race, color, creed, religion, sex,
marital status, national origin, or ancestry in the performance of this Agreement. Rutan &
Tucker shall take affirmative action to insure that applicants are employed, and that employees
are treated during employment, without regard to their race, color, creed, religion, sex, marital
status, national origin, or ancestry.
10. TERM, DISCHARGE AND WITHDRAWAL.
This Agreement shall continue in effect, subject to modification of fees as
provided in Section 4, until terminated by either party hereto. City may discharge Rutan &
Tucker at any time. The City Attorney shall not be deemed an employee of City, and shall have
no right to hearing or notice, and may be discharged with or without notice. Rutan & Tucker
may withdraw from City's representation at any time, to the extent permitted by law, and the
Rules of Professional Conduct, upon at least sixty (60) days' notice to City.
In the event of such discharge or withdrawal, City shall pay Rutan & Tucker's
professional fees and costs, in accordance with this Agreement, for all work done (and costs
incurred) through the date of cessation of legal representation. City agrees to execute, upon
request, a stipulation in such form as to permit Rutan & Tucker to withdraw as City's attorneys
of record in any legal action then pending. Rutan & Tucker shall deliver all documents and
records:of City to City, or to counsel designated by City, and assist to the fullest extent possible
in the orderly transition of all pending matters to City's new counsel.
11. CONFLICTS.
Rutan & Tucker has no present or contemplated employment which is adverse to
the City. Rutan & Tucker agrees that it shall not represent clients in matters either in litigation
or non-litigation against the City. However, Rutan &Tucker may have past and present clients
or may have future clients, which, from time to time, may have interests adverse to City, and
Rutan & Tucker reserves the right to represent such clients in matters not connected with its
representation of the City.
If a potential conflict of interest arises in Rutan &Tucker's representation of two
clients, if such conflict is only speculative or minor, Rutan & Tucker shall seek waivers from
each client with regards to such representation. However, if real conflicts exist, Rutan &
Tucker would withdraw from representing either client in the matter, and assist them in
obtaining outside special counsel.
[SIGNATURES ON NEXT PAGE]
276/099999-009413268055.1 m06/02/99 -5- PALM SPRINGS LEGAL SERVICES CONTRACT
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
of execution by the City.
"CITY"
CITY OF PALM SPRINGS,a municipal corporation
Date Will Kleindienst, Mayor
ATTEST:
City Clerk
"RUTAN & TUCKER"
RUTAN & TUCKER, LLP
Date David J. Aleshire, Esq.
[END OF SIGNATURES]
?WO
276/09 9 9 9 9-0084/3 26 8 035.1 m06102199 -6- PALM SPRINGS LEGAL SERVICES CONTRACT
0
EXHIBIT "A"
FEE ARRANGEMENT
(1) The retainer will be Ten Thousand Dollars ($10,000.00)per month ($100.00 per
hour) for up to One Hundred (100) hours of general legal service.
(2) General legal services over one hundred (100) hours per month will be billed at
the blended rate One Hundred Fifty-Five Dollars ($155.00) per hour from July
1, 1999.
(3) Special legal services shall include litigation matters, public finance, disciplinary
actions or hearings, labor negotiations, redevelopment, housing, cable television,
mining, toxics, refuse, franchising, enterprise activities, and any major contract
negotiation. Except for public finance, all such matters shall be-billed at the
blended billing rate of One Hundred Seventy-Five Dollars ($175.00) per hour
from July 1, 1999, to June 30, 2000, and One Hundred Eighty Dollars ($180.00)
per hour thereafter.
(4) For public finance the fee structure is one percent of the first$1 million executed
and delivered; one-half percent of the next$4 million executed and delivered; and
one-quarter percent of the balance in excess of $5 million subject to a minimum
fee of Twenty Thousand Dollars ($20,000.00). In the event that multiple series
of bonds or notes are issued, the foregoing fee schedule would be applied to each
issue, subject to the $20,000.00 minimum fee. Payment of the fees are entirely
contingent upon the successful execution and delivery of the bonds or notes to be
payable on or after delivery except for out-of-pocket expenses.
(5) In addition to the foregoing, we would be reimbursed for out-of-pocket expenses
including telephones, telecopier, messenger, courier, and other communication
costs; reproduction expense; computer research facilities; court reporters; travel
expense outside of Southern California (and not to Palm Springs); and other costs
and expenses incurred on your behalf.
(6) The blended rate for legal assistants, irrespective of matter, shall be Eighty
Dollars ($80.00) per hour, and for document clerks shall be Thirty-Five Dollars
($35.00) per hour.
(7) The other normal terms and conditions of our billing are set forth in the
Statement of Billing Practices attached as Exhibit "B".
(8) The foregoing fee arrangement would commence July 1, 1999, and remain in
effect until June 30, 2002, and thereafter until adjusted.
Exhibit "A"
2761099999-0084/3268055.1 .06/02/99 -7- TO IRWINDALE FEE AGREEMENT
0 0)
EXMIT "B"
STATEMENT OF BILLING PRACTICES
FOR EMPLOYMENT OF LEGAL SERVICES
Rutan & Tucker's fees are charged on an hourly basis for all time actually expended and
are generally billed monthly with payment due within thirty (30) days after the date of the bill.
Our presently prevailing hourly design rates vary between $135.00 per hour and $375.00 per
hour depending upon the experience and background of the individual attorneys and between
$45.00 and $135 for legal assistants. The current hourly design rate for the attorneys and staff
working on this matter will be set forth in the billing statement. At the end of this exhibit are
the current hourly design rates for the attorneys who will spend the predominate amount of time
on this matter. It should be understood that hourly rates are reviewed, and when appropriate,
adjusted to reflect increases in seniority and experience as well as inflationary factors. These
increases are generally made on an annual basis effective on the beginning of each calendar year.
Rutan & Tucker will incur various costs and expenses in performing legal services.
These costs and expenses are separately billed to the client and include fees fixed by law or
assessed by public agencies, long distance telephone calls, messenger and other delivery fees,
postage, parking, and other local travel expenses, photocopying (charge of twenty cents ($.20)
per page) and other reproduction costs, clerical, staff overtime, computer-assisted research fees, "
travel costs beyond Southern California (including lodging, meals, and incidentals), and other
similar items including deposition, reporter fees, and transcript fees. In addition, the client will
be responsible for paying the fees of consultants and other outside experts who are retained after
consultation with the client.
It is understood that Rutan & Tucker will not charge for actual travel time, local
telephone calls or calls made to the City. In exchange, Rutan & Tucker shall not be charged
for calls made or received at the City, whether local or long-distance, nor for copying charges
since copying on-site will reduce the charge to the client.
The monthly billing statements for fees and costs shall indicate the basis of.the fees,
including the hours worked, the billable rates charged, and description of the work performed.
All bills are expected to be paid within. thirty (30) days of the date of the billing statement. in
the event any statement remains unpaid for more than thirty (30) days after the date of the
statement, interest thereon at the rate of ten percent (10%)per annum shall be due and payable
thereafter on the unpaid balance.
It is expressly understood that the client may discharge Rutan & Tucker at any time.
Rutan & Tucker may withdraw from representation at any time to the extent permitted by law
under the Rules of Professional Conduct, upon reasonable notice to the client. In the event of
such discharge or withdrawal, client shall pay Rutan &Tucker fees and costs in accordance with
this agreement for all work done (and costs incurred) through the termination of Rutan &
Tucker's representation of client. Upon such termination withdrawal, Rutan & Tucker shall
deliver to client all of its files in this matter and any property in possession at Rutan & Tucker
belonging to client. *
Exhibit "B"
276/099999-0094/3268055.1 m06/02/99 -8- TO IRWINDALE FEE AGREEMENT
9
HOURLY RATES FOR ATTORNEYS ASSIGNED TO MATTER:
David J. Alesbire $280.00
Eric L. Dunn $165.00
William M. Marticorena $300.00
William W. Wynder $250.00
Richard Montevideo $240.00
Hans Van Ligten $230.00
Ski Harrison $225.00
Bob Owen $225.00
Dan Slater $215.00
Jennifer White-Sperling $190.00
Jeff Melching $165.00
BLENDED RATES PREVAIL OVER THE HOURLY RATES.
HOURLY RATES FOR LEGAL ASSISTANTS:
Jacqueline Strain $ 85.00
Teri Ford $ 75.00
Exhibit "B"
2761M9999-00 94/3 2 6 805 5.1 .06/02/99 -9- TO ntWINDALE FEE AGREEMENT
MINUTE ORDER NO.
APPROVING PALM SPRINGS LEGAL
SERVICES CONTRACT WITH RUTAN &
TUCKER, LLP, FOR CITY ATTORNEY
SERVICES, EFFECTIVE JULY 1, 1999
I HEREBY CERTIFY that this Minute Order, approving Palm Springs Legal
Services Contract with Rutan&Tucker, LLP, for City Attorney services, effective
July 1, 1999, was adopted by the City Council of the City of Palm Springs,
California, in a meeting thereof held on the 28th day of July, 1999.
PATRICIA A. SANDERS
City Clerk