HomeMy WebLinkAbout25zFF - LEGAL SERVICESREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 3, 2007
TITLE:
AMENDMENT TO LEGAL SERVICES
AGREEMENT WITH McCUNE &
HARBER, LLP
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1S` Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Direct the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute an amendment with the law firm of McCune
and Harber increasing the hourly rate from $155 to $175.
DISCUSSION
The City Attorney's Office provides legal services to the City, its
officials and employees, primarily through staff attorneys. However, it
is sometimes necessary to retain outside counsel for specialized fields
of practice and cases that have extraordinary staffing requirements.
The law firm of McCune and Harber has provided legal services to the City
and its employees in the specialized area of major tort liability and
police-related litigation. Funds for this activity are provided through
the Liability Fund managed by the Risk Management Division of the
Personnel Services Agency.
The City Attorney's Office has been notified by the firm that they wish
to increase their fees. McCune and Harber has provided the City with
exceptional and cost-effective representation since January of 2002.
McCune and Harber's initial hourly rate was $135.00 per hour. In May 2005
the firm's hourly fee was adjusted to $155.00. It has been more than two
years since the firm has reevaluated its hourly rate. The suggested
hourly rate of $175.00 is competitive given the firm's expertise, the
complexity of matters involved and rates charged to other municipal
clients of the firm.
The Risk Management Division also monitors billing rates paid by other
members of BICEP, the risk management pool to which the City belongs.
The firm's proposed rate is consistent with BICEP guidelines for outside
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counsel and very competitive with rates being paid by other BICEP members
for similar firms.
Legal Services Agreement with
McCune & Harber, LLP
DECEMBER 3, 2007
Page 2
Below is a matrix showing the hourly rates charged by other firms who are
providing similar services in the area of tort defense for the City. As
you will note, the requested increase in hourly rate is competitive with
the other firms' rates. Also, note that most of these firms requests
hourly fee adjustments every two years.
Firm Scope of Hourly Date First Last Contract
Practice Fee Hired endment
Bannan, Green, Municipal $265.00 January /A
Frank & Litigation 2006
Terzian
Carpenter, Tort Defense $170.00 November /A
Rothans & 2006
Dumont
Kinkle, Tort Defense $175.00 August Last amendment
RQdiger & 1976 January 2004.
Spriggs Previously rate
$155.00.
McCune & Tort Defense $175.00 January Initial rate
Harber 2002 $135.00
McCune & Harber currently has 4 cases assigned to it. Over the past 5
full fiscal years, the firm worked on 11 cases and billed a total of
$559,575 for an average of $111,915 per fiscal year.
FISCAL IMPACT
Funds are available in the Risk Management Liability Fund (account no.
80-180-6291) /`~
APPROVED AS TO FUNDS AND ACCOUNTS:
i
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
~~ ,
Enrique Alva
Executive D' ctor
Personnel Services
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