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4 <br />c) For all legal services for which the City is reimbursed by third parties, referred to in the <br />Agreement as “Cost Recovery Work,” Meyers Nave will be compensated at between $280 and <br />$375 per hour depending on the experience level of the Meyers Nave attorney assigned to the <br />project. <br />d) City shall separately reimburse Meyers Nave for customary costs and disbursements, <br />including deposition and witness fees, court costs, telephone, photocopying, facsimile charges, <br />computer research online fees and messenger services. <br />e) Meyers Nave shall keep a record of time spent on all matters in increments of one-tenth (0.1) <br />of an hour. Each task shall be distinctly and completely identified. The billing entry must contain <br />the name or initials of the individual performing the task, the nature of the task, the date it was <br />performed, and the length of time it took. Meyers Nave shall submit all invoices no later than the <br />last day of the month following the month in which services were performed and actual costs <br />incurred; <br />f) During the term of this Agreement, the hourly rates set forth in 4a), 4b), and 4c) for legal <br />services will be adjusted each July 1, beginning July 1, 2017, by the April percentage change in <br />the Consumer Price Index (CPI) for San Francisco-Oakland-San Jose area. Except for automatic <br />annual CPI adjustments rounded to the nearest $5.00, the hourly compensation is fixed. No <br />renegotiation of rates shall occur during the term of this Agreement. <br />g) The total amount charged to the City for services described in Section 2A for each twelve <br />month fiscal year period beginning on July 1, 2016 shall not exceed $824,415.00, exclusive of <br />reimbursable costs, subject to annual increases consistent with the April Consumer Price Index <br />(CPI) for San Francisco-Oakland-San Jose area. This amount continues to include a $50,000 set- <br />aside that may be used at the discretion of the City Manager in consultation with the City <br />Attorney for the retention of separate legal counsel. All fees and costs for each litigation case <br />assigned to Meyers Nave under Section 2B shall have a separate budget. Cost Recovery Work <br />charges shall also be separately charged, and not included within the not to exceed amount <br />referred to herein. <br />h) Compensation amounts due from City to Meyers Nave based upon the provisions of this <br />section are subject to fiscal year “volume discounts” consistent with Agreement years as follows: <br />Year 1 (commencing July 1, 2016 and ending June 30, 2017): <br />Volume Discount = $200,000. <br />Volume Discount in 12 monthly installments in the sum of $16,666.66. <br />Year 2 (commencing July 1, 2017 and ending June 30, 2018): <br />Volume Discount = $200,000. <br />Volume Discount in 12 monthly installments in the sum of $16,666.66. <br />Year 3 (commencing July 1, 2018 and ending June 30, 2019): <br />Volume Discount = $150,000. <br />Volume Discount in 12 monthly installments in the sum of $12,500.