12-20-2011 - Professional Services Rate Adjustments - Item 9 (2).doc City of West Covina
Memorandum
A G E N D A
ITEM NO. 9
DATE December 20, 2011
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Chris Freeland, Deputy City Manager
SUBJECT: PROFESSIONAL SERVICES RATE ADJUSTMENTS
RECOMMENDATION:
It is recommended that the City Council authorize professional service rate adjustments and contract amendments for Liebert, Cassidy, Whitmore and Alvarez-Glasman & Colvin, as outlined
in the following staff report to be effective January 1, 2012.
DISCUSSION
In September 2006, the City Council directed City staff to develop a Request for Qualifications (RFQ) for various specialized Legal Services, including City Prosecutor, personnel/labor,
bond counsel, and other services not currently being provided by the City Attorney’s Office. In June 2007, the City of West Covina entered into contracts with Liebert, Cassidy, Whitmore
(LCW) to provide personnel/labor counsel. LCW has not raised their rates since 2007.
Personnel/Labor Law Counsel
The City of West Covina’s Human Resources Department utilizes Liebert, Cassidy, Whitmore (LCW), as their personnel/labor law counsel that provides critical support for a variety of items,
including disciplinary matters, unfair labor issues, disability claims, negotiations, and other special areas related to employment law. LCW has become the pre-eminent personnel/labor
law counsel for 74% of California's cities, 90% of California counties, and 90% of California's community college districts. In addition, LCW provides legal counsel for numerous special
districts, schools and private companies.
LCW has submitted a request to increase their hourly billing rates and a new fee structure for legal services for all of their client cities. A copy of their request is attached (Attachment
#1). The proposal includes the following rate changes (current rates in parentheses): Partners billed at $300/hour (from $250-$280/hour), Of Counsel at $265/hour (From $235-$250/hour),
Associates $180-$245/hour (from $160-$230/hour), and paraprofessionals $105-$140/hour (not previously addressed).
City staff is recommending that the City Council approve the new hourly rates for LCW, since they have provided excellent service to the City of West Covina; are very knowledgeable about
the details of current labor issues pending with the City; are considered experts in labor law, which requires little to no research, resulting in significant cost savings to the City;
and they have not had a rate adjustment in the last four and half years.
City Attorney
The City Attorney represents and advises the City Council, City Commissions, and City staff on all matters of law pertaining to the operation of the City and Community Development Commission.
The City Attorney’s Office oversees all legal matters before the City of West Covina, and also prepares/reviews all ordinances, resolutions, contract amendments, and other legal documents.
Since 2000, Alvarez-Glasman & Colvin has served as the City Attorney for the City of West Covina. Alvarez-Glasman & Colvin is a law firm specializing in representing public agency
clients in the complex fields of real estate, land use and development, environmental law, employment and labor relations, public safety and police litigation, and general liability
and risk management.
In the eleven years of representing the City of West Covina, Alvarez-Glasman & Colvin has not raised their fees. In fact, they decreased their fees in 2008.
Alvarez-Glasman & Colvin has requested an increase in their hourly billing rates for City Attorney services and legal services for their client cities. A copy of their request is attached
(Attachment #2). The proposal includes the following rate changes (current rates in parentheses): Increase in the City Retainer from $6,500 for the first 50 hours to $8,000 for the
first 50 hours; Partners billed at $185/hour (from $150/hour), Senior Associates at $175/hour (from $140/hour), Associates $165/hour (from $135/hour), and law clerks $100/hour (from
$90/hour).
In addition, Alvarez-Glasman & Colvin is requesting a rate increase for litigation services. The proposal includes the following rate changes (current rates in parentheses): Partners
billed at $195/hour (from $165/hour), Senior Associates at $185/hour (from $155/hour), Associates $175/hour (from $145/hour), and law clerks $100/hour (from $90/hour).
City staff is strongly recommending that the City Council approve the new hourly rates for Alvarez-Glasman & Colvin, since they have provided excellent service to the City of West Covina
and have not had any rate adjustments in the last several years. It is important to note that a survey of hourly rates of West Covina market cities (Attachment #3) has a range of hourly
rates of $139/hour to $325/hour, with an average hourly rate of $206/hour. The proposal being presented by Alvarez-Glasman & Colvin would remain the average rate.
In addition to the recommended rate increases, City staff is also seeking authority to implement a contract amendment to allow for annual Consumer Price Index (CPI) increases based on
the Los Angeles–Riverside-Orange County Rate published each January. Any increases will be subject to the City Manager’s discretion, with any request greater than the annual CPI to
be presented to the City Council for consideration.
OPTIONS:
The City Council has the following options available:
Authorize the professional services rate increases and CPI adjustments as recommended by City staff;
Deny the professional services rate increases outlined in the staff report;
Instruct City staff to initiate the Request for Qualifications for one or multiple legal areas (i.e. City Attorney, Personnel, etc.); or
Provide City staff with alternate direction.
FISCAL IMPACT:
If approved, the increases would only be for the remainder of the fiscal year and all additional costs can be absorbed in the current legal fee accounts.
Prepared by:
Chris Freeland
Deputy City Manager
Attachments:
Letter From LCW Requesting Increase In Hourly Rates.
Letter From Alvarez-Glasman & Colvin Requesting Increase In Hourly Rates.
Survey of City Attorney Fees for West Covina Market Cities