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File Number: 20-070 <br />the City Council for consideration on February 19, 2013. <br />On May 20, 2013, the City Council voted to adopt a new 13-month agreement with Meyers Nave, <br />effective from June 1, 2013 through June 30, 2014, which was subsequently extended for several <br />additional periods, with the current agreement set to expire on June 30, 2021. The current <br />agreement continues to utilize the fee-for-service cost structure. <br />The current biennial budget provides $956,121 for 2019-20 ($944,800 appropriated for legal <br />services), and $993,913 for 2020-21 ($982,592 appropriated for legal services) for the City <br />Attorney’s Office. The proposed agreement would include a “give back” of $53,913 to the General <br />Fund 2019-20 and 2020-21 adopted budget, and additional savings between $40,000 to <br />$80,000 from the current agreement’s trend line to provide budget savings for the next biennial <br />budget. There would be no change in the level of service. <br />The Financial terms of the proposed agreement are below: <br />·Fiscal Year 2020-21: $940,000 / General Services Hourly Rate: $275 <br />·Fiscal Year 2021-22: $960,000 / General Services Hourly Rate: $280 <br />·Fiscal Year 2022-23: $980,000 / General Services Hourly Rate: $285 <br />·Fiscal Year 2023-24: CPI increase / General Services Hourly Rate: CPI increase <br />·Fiscal Year 2024-25: CPI increase / General Services Hourly Rate: CPI increase <br />·Hourly rates for Cost Recovery would increase by the CPI each year. <br />Hourly rates for Litigation work would increase by the CPI each year. Cost Recovery rates <br />are charged to land use applicants, and litigation is as assigned by the City Council. <br />Analysis <br />The City has now been operating under the new contractual structure since 2013. Based upon <br />staff's analysis, the current contract structure is effective in controlling costs and generating <br />financial savings as predicted by the MRG analysis. <br />Meyers Nave now requests that the City Council authorize a new contract for legal services for a <br />5-year period. In recognition of increased regional cost of living expenses, the proposed <br />agreement includes phased-in increases to the hourly billing rates from the current rate of <br />$275/hour for general legal services. For all litigation services, the rate would change from the <br />current cap of $395/hour to a range of between $350/hour to $450/hour. The cost of paralegal <br />services would remain flat at its current rate of $150/hour. Rates would then increase moderately <br />each year thereafter, as outlined in the above proposed schedule. In Fiscal Years 2023-24 and <br />2024-25, rates would change based on the annual percentage change in the Consumer Price <br />Index (CPI) for the San Francisco-Oakland-San Jose area. <br />Fiscal Impacts <br />The adopted 2020-21 biennial budget appropriations for legal services is $982,592. If adopted, <br />the proposed new agreement could generate up to $53,913 in budgetary savings from January 1, <br />2020 through fiscal year 2020-21. Future budget year costs are as follows: <br />Page 2 City of San Leandro Printed on 3/11/2020 <br />220