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(hourly rate). Basic Services generally consist of those services normally provided by the
<br />City Attorney as the City's general counsel. These services are compensated at a fixed
<br />monthly fee (retainer) currently set at $26,844 p/mo. Special Services are services
<br />beyond the scope of the basic services, generally requiring specialized skills such as
<br />litigation, eminent domain, redevelopment and environmental law. These services are
<br />billed at an hourly rate, currently set at $174.00 p/hr. and $200.00 p/hr. For
<br />redevelopment services. Cost Recovery services are services that are paid by a third party
<br />other than the City. The fees for those services are $231.00 p/hr. Other Services are
<br />legal services "ordinarily provided to City by specialized outside legal counsel either
<br />because of the infrequency with which such services are needed by the City, the level of
<br />exposure to liability, or the highly specialized nature of the procedural or substantive law
<br />such services involve." When it is determined that a service falls within this category, in
<br />consultation with the City Manager, these matters are billed at a higher "market" rate.
<br />The City's long standing attorney client relationship with Meyers Nave has been
<br />excellent and the firm has provided valuable sand cost effective service to the City.
<br />However, the current Agreement has been challenging to administer because of its
<br />complexity, outdated provisions, and changes in the law and City operations over the
<br />years. To remedy this situation, a comprehensive amendment to the existing Agreement
<br />is proposed that more clearly sets forth the legal services to be provided in three (3)
<br />categories: Basic Services (retainer); Additional Services (non-retainer); and Cost
<br />Recovery (third-parties), and adjusts the rates.
<br />The rates proposed will continue to be less than neighboring cities that contract for City
<br />Attorney services. By way of comparison, Attachment "A" provides a matrix of rates
<br />charged by cities that similarly contract for City Attorney services, as compared to the
<br />current and proposed rates for San Leandro.
<br />In 2005 the City's Finance Department conducted a review of legal costs of neighboring
<br />cities and found that it is not possible for the City to operate afull-service legal
<br />department with the current level of expertise at a lower cost. It remains our opinion that
<br />the total cost for all legal services will continue to be substantially less than neighboring
<br />cities with an "in-house" legal staff under the proposed amended Agreement.
<br />City and Redevelopment Agency expenditures for legal, litigation and cost recovery
<br />services over the past five (5) years have been as follows:
<br />Me ers Nave Ci Attorne Le al Services - Cost Summar
<br />Fees and Costs Paid for Fiscal Years 2003 - 2008
<br />Iiscal Monthly Annual Non-Retainer
<br />Year Retainer Retainer General RDA Liti ~alion~ ~ cove " * Total
<br />2002-03 25,182.00 302,184 29,700 63,696 4.82;1,75 877,756
<br />2003-04 25,598.00 307,176 51,885 84,678 277"'131 39;'763 760,653
<br />2004-OS 25,694.00 308,328 41,019 131,060 344TE;4 a~-637 826,763
<br />2005-06 26,]02.15 313,226 71,256 182,183 325;42k 41b7 900,497
<br />2006-07 26,189.00 314,268 53,922 143,869 3~Z7;fl07 14e2fi7 903,332
<br />2007-08 26,844.00 322,]28 70,597 161,296 419;443 2$;888 1,202,043
<br />*LITIGATION IS PAID BYTHE CITY'S THIRD PARTY
<br />ADJUSTER -GEORGE RILLS CO. FROM FUNDS
<br />CONTAINED IN TAE CITY'S LIABILITYAND WORKERS
<br />COMPENSATION FUND; COST RECOVERY IS PAID BY
<br />THIRD PARTIES
<br />1115066-1 -2-
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