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HomeMy WebLinkAboutItem 13 - Approve Legal Services Agreement City Attorney's Office 71 www.santa-ana.gov/ca Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 4, 2026 TOPIC: Approve Legal Services Agreement AGENDA TITLE Legal Services Agreement with Fujii Law Group LLP (Non-General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Fujii Law Group, LLC for the period of August 4, 2026 through August 3, 2029, with an option to extend the term of the agreement for up to one (1) additional year, in the amount of $550,000 for legal services (Agreement No. A-2026-XXX). GOVERNMENT CODE &84308 APPLIES: Yes DISCUSSION On November 24, 2025, the City engaged Fujii Law Group City for a one-year agreement for legal services for general municipal law advisory and litigation matters, including defense of police litigation. The total amount to be expended during the term of the Agreement was $50,000. Fujii Law Group was engaged due to the vast municipal law and litigation related experience of its partner and founder, John Fujii. In his 30 years of legal experience, Mr. Fujii's expertise includes matters in State and Federal courts for civil litigation, civil rights, police, labor and employment, land use, and tort defense. Fujii Law Group was initially engaged in the matter of Hightower v City of Santa Ana. An additional matter was referred to Fujii Law Group and the work performed on this requires the new proposed agreement. City staff recommends approval by the City Council for a new three-year agreement to allow for continued services to the City. The City's joint powers authority, Independent Cities Risk Management Authority (ICRMA), has set rates that it will apply towards fulfillment of the City's self-insured retention for each lawsuit reported to it. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Legal Services Agreement August 4, 2026 Page 2 FISCAL IMPACT Funds, as detailed below, are available in the budgeted amounts for FY 2026-27, and will be budgeted in future fiscal years for City Council consideration as follows: Fiscal Year Accounting Unit- Account Amount Account # Description FY 2026-27 08009051-64050 Liability & Property $250,000 Ins. Fund, Losses Paid FY 2027-28 08009051-64050 Liability & Property $250,000 Ins. Fund, Losses Paid FY 2028-29 08009051-64050 Liability & Property $50,000 Ins. Fund, Losses Paid Total: $550,000 EXHIBIT(S) 1. Legal Services Agreement with Fujii Law Group, LLP Submitted By: Sonia R. Carvalho, City Attorney Approved By: Alvaro Nunez, City Manager LEGAL SERVICES AGREEMENT WITH FUJII LAW GROUP LLP This AGREEMENT, made and entered into this 4th day of August, 2026, by and between Fujii Law Group LLP, a limited liability partnership ("Attorneys"), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the constitution and laws of the State of California ("City"). RECITALS A. The City of Santa Ana and the City Attorney's Office desire to employ Attorneys to assist the in-house attorneys for the City("City Attorney") in the provision of legal services to the City, for general municipal law advisory and litigation matters. B. Attorneys represent that they are licensed to practice law in the State of California, have special experience and knowledge providing general municipal law advisory and litigation services and desire to undertake said service. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. RETENTION OF ATTORNEYS On an as-needed basis, and at the sole discretion of the City, City hereby agrees to and does retain Attorneys, for the compensation hereinafter specified, to assist the City Attorney with general municipal advisory and litigation matters, and to defend the City,its employees and its officials. Attorneys accept said retention and agree to perform,in a timely and efficient manner, all such services as may be requested by the City Attorney. Attorneys shall confirm their acceptance of work requested by City in writing by e-mail or letter. 2. COMPENSATION FOR SERVICES RENDERED a. City agrees to compensate Attorneys, and Attorneys agree to accept from City, rates consistent with rates pursuant to the Independent Cities Risk Management Association(ICRMA) for payment in full for all services at the rate of $275.00 an hour for partners, $265.00 an hour for attorneys, and$125.00 an hour for paralegals. Time will be billed in 1/10th of an hour increments. b. The total sum to be expended under this Agreement, shall not exceed$550,000. C. City agrees to reimburse Attorneys for out-of-pocket expenses, including but not limited to, mileage, copying costs, service of process, and mail services authorized by the Executive Director of Human Resources in connection with the performance of duties under this Agreement. In-house printing, copying, and reproduction charges will be reimbursed at the rate of 20 cents per page. Automobile travel will be reimbursed at the standard mileage rate in effect at the time of billing by the Internal Revenue Service. Any costs in excess of $5,000 require the approval of the City Attorney or designee prior to incurring the expense. All expenses must have supporting documentation submitted with the invoice. 1 3. METHOD OF PAYMENT Attorneys shall submit a monthly statement specifying the services performed, dates and number of hours,and an itemization of expenses related thereto with supporting documentation(i.e.receipts, invoices, copy of check, etc.). City acknowledges that the fees incurred for work performed by Attorneys on its behalf are due and owing within 30 days of submitting the monthly statement to the City. City will not pay interest on unpaid monthly statements. City and Attorneys agree that all payments due and owing under this Agreement shall be made through Automated Clearing House (ACH) transfers. City acknowledges that Attorneys have executed the City's standard ACH Vendor Payment Authorization and provided required documentation, and, upon verification of the data provided, the City will be and is authorized to deposit payments directly into Attorneys' account(s)with financial institutions. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 4. CONTROL OF LEGAL MATTERS Attorneys agree that each and every matter or proceeding in which they undertake to assist the City Attorney, as aforesaid, shall be and remain under, and subject to the control and direction of said City Attorney at all stages, and that they shall at all times keep the City Attorney informed of all matters pertaining thereto. City will keep Attorneys informed of all significant developments in matters relating to any representation undertaken by Attorneys. Attorneys further agree, if and when their retention hereunder is terminated by City, as hereinafter specified, they shall return to City Attorney any and all files then in their possession concerning each and every matter or proceeding in which they represented the City pursuant to this Agreement. 5. TERM The term of this Agreement shall commence on the date first written above and terminate three years from the effective date, above, unless terminated earlier pursuant to Section 15 below. The term of this Agreement may be extended for up to one (1) year upon a writing executed by both parties, including the City Manager and the City Attorney. 6. INDEPENDENT CONTRACTORS It is mutually agreed by and between the parties that, in the performance of their covenants hereunder, Attorneys are and shall be independent contractors, and not officers or employees of City. 7. INSURANCE Prior to undertaking performance of work under this Agreement,Attorneys shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Attorneys. MINIMUM SCOPE AND LIMIT OF INSURANCE 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence"basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than 2 $1,000,000 per occurrence and $2,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. 2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), with limits no less than $1,000,000 combined single limits. In the event Attorney(s) does not maintain commercial automobile liability insurance,the City will accept evidence of Hired and Non-Owned Auto Liability coverage included on the General Liability policy by endorsement with limits no less than $1,000,000 combined single limit per occurrence. This coverage addresses the City's vicarious liability exposure when Attorney(s) operate personal, hired, or rented automobiles while conducting business on behalf of the City. Coverage may be provided through a combination of primary General Liability and umbrella/excess liability policies. Attorney(s) shall provide evidence that this endorsement is in effect on the General Liability policy. 3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident, policy or employee, for bodily injury or disease. Coverage is not required if Attorneys has no employees and signs request to waive such insurance. 4. Professional Liability Insurance: with limits no less than $1,000,000 per occurrence or claim, and$3,000,000 aggregate. If Attorneys maintain broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Attorneys. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City. Other Insurance Provisions The above required insurance policies are to contain or be endorsed to contain the following provisions: 1. City, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Attorneys' CGL, and Automobile Liability policies, with respect to any liability arising out of work or operations performed by or on behalf of the Instructor including materials,parts, equipment, and personnel furnished in connection with such work or operations. 2. Attorneys' Insurance company(ies) agrees to waive all rights of subrogation against City, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Attorneys under this Agreement. 3. For any claims related to this contract, Attorneys' insurance coverage shall be primary and any insurance maintained by City, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it. 3 4. A severability of interest provision must apply for all the additional insureds, ensuring that Attorneys' insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non-renewed by the carrier, or materially changed except after thirty(30)days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non- renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: Risk Management Office, 20 Civic Center Plaza, M-24, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate. Self-Insured Retentions Self-insured retentions must be declared to and approved by the City. The City may require the Attorneys to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than AXII, unless otherwise acceptable to City. Verification of Coverage Attorneys shall furnish City with original Certificates of Insurance including all required amendatory endorsements(or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Attorneys' obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk,prior experience, insurer, coverage, or other special circumstances. 8. INDEMNIFICATION Attorneys agree to and shall indemnify and hold harmless the City, its officers, agents, employees, and representatives from liability for personal injury, damages, restitution, judicial or equitable relief to the extent caused by Attorneys' negligent or wrongful performance or conduct related to this Agreement. 9. CONFIDENTIALITY All information and documents shared with Attorneys as well as all work performed by Attorneys in connection with this Agreement should be treated as strictly confidential. Confidential information disclosed to either parry by any subsidiary and/or agent of 4 the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Attorneys, disclosed in a publicly available source; (c) is in rightful possession of the Attorneys without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Attorneys without reference to information disclosed by the City. 10. CONFLICT OF INTEREST CLAUSE Attorneys covenant that it presently has no interests and shall not have interests, direct or indirect, that would conflict in any manner with performance of services specified under this Agreement. 11. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail,postage prepaid, or sent by telefacsimile or other telegraphic communication in the manner provided in this Section, to the following persons: To City: City Clerk City of Santa Ana 20 Civic Center Plaza(M-30) P.O. Box 1988 Santa Ana, California 92702-1988 Courtesy Copy: City Attorney's Office City of Santa Ana 20 Civic Center Plaza(M-29) P.O. Box 1988 Santa Ana, California 92702 To Attorneys: John Fujii, Esq. Fujii Law Group LLP 19200 Von Karman Ave., Ste. 360 Irvine CA 92612 A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, demand, delivery, or other communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by telefacsimile, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 12. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Attorneys, and supersedes any and all other agreements, oral or written,between the parties. In the event of a conflict between the terms of this Agreement 5 and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Attorneys. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Attorneys or the City. Each party to this Agreement acknowledges that no representations,inducements,promises or agreements,orally or otherwise,have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. 13. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Attorneys, Attorneys may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject of this Agreement performed by City personnel or by other Attorneys retained by City. 14. TERMINATION This Agreement may be terminated by City at any time. In such event, Attorneys shall be entitled to receive and the City shall pay Attorneys compensation for all services performed by Attorneys prior to receipt of such notice of termination. As a condition of such payment, Attorneys shall deliver to the City all files and records generated under this Agreement as of such date. Attorneys may terminate this agreement, subject to their obligation to provide written reasonable notice of at least thirty(30) days to arrange alternative representation. In such case, City agrees to secure new counsel as quickly as possible and to cooperate fully in the substitution of the new counsel as counsel of record in in the Actions. 15. NON-DISCRIMINATION Attorneys shall not discriminate because of race, color, creed, religion, sex,marital status, sexual orientation,gender identity,gender expression,gender,medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement.Attorneys affirm that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 16. JURISDICTION—VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of,in connection with or by reason of this Agreement. 17. MISCELLANEOUS PROVISIONS Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement,and shall indemnify City fully,including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not,in fact,held by the signatory or is withdrawn. 6 18. COUNTERPARTS; SIGNATURES This Agreement may be executed in counterparts, secured via facsimile transmission or otherwise, each of which shall be deemed to be an original. Photocopies of any executed counterpart shall have the same force and effect as an original. City further acknowledges that it has read and received a copy the full text Section 6148 of the California Business and Professions Code prior to signing this Agreement. 19. NO GUARANTEES City understands and acknowledges that there are certain risks and uncertainties in the pursuit of any matter for which Attorneys have been retained, that law is not an exact science, that Attorneys have made no representations or guarantees of success regarding the conclusion of any particular matter. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. ATTEST: CITY OF SANTA ANA Jennifer L. Hall Alvaro Nunez City Clerk City Manager APPROVED AS TO FORM: SONIA R. CARVALHO FUJII LAW GROUP, LLP City Attorney By: Tamara Bogosian 9oh"nFujiii.,'Esq/ Senior Assistant City Attorney Partner 7