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12-20-2011 - Professional Services Rate Adjustments - Item 9 Attach 1 (2).pdferely, ERT CABSIDY WHITMORE .V.ISdolt Tiede'mann aging Partner LIEBERT CASSIDY WHITMORE A PROFESSIONAL LAW CORPORATION Los ANGELES I FRESNO I SAN FRANCISCO I SAN DIEGO 6033 Wen CENTURY BOULEVARD, SurrE 500 LOS ANGELES, CALIFORNIA 90045 T: (3101981-2000 0: (3101337-0837 liTI8DEMANN@WWLEGALC0M (310) 981-2022 Andy Pasmant City Manager City of West Covina 1444 West Garvey Avenue South West Covina, CA 91793 Re: Agreement for Special Services Dear Mr. Pasrnant, For thirty years, we have built our reputation as the leading public sector labor, employment and education law firm in California by delivering positive results for our clients in the most cost-effective ways possible. At LCW, our goal is to provide you with the most valuable legal investment you can make no matter the economic environment. Our creative legal strategies, focus on labor, employment and education issues, and unmatched expertise set us apart from other law firms that serve the public sector. Expert legal counsel can make the crucial difference in your agency's successful navigation of difficult legal issues — that is why LCW remains your best ally. i Z6 We have not raised our rates for four years. Now, however, in order to continue to provide you with the very best public sector counsel, we are raising our rates effective A schedule of rates is attached. There are three compelling realities that make it necessary for us to do this now. First, we face fierce competition for our talented lawyers from the recovering private sector. Second, we have absorbed healthcare increases averaging fifteen percent per year for the past five years. And third, we face rising infrastructure costs for everything from updating our IT infrastructure to handle e-discovery requirements to increased transportation costs. Exceptional counsel saves time and money and leads to successful results. We are confident that these new rates will allow us to continue to deliver the best possible legal services. If you have any questions regarding this notice, or any other matter involving our Legal Services Agreement, please do not hesitate to contact me directly. HEBERT CASSIDY WHITMORE FEE SCHEDULE HOURLY RATES Partners $300.00 Of Counsel $265.00 Associates $180.00 - $245.00 Paraprofessionals $105.00 - $140.00 rirel ALVAREZ-GLASMAN & COLVIN rill ATTORNEYS AT LAW December 13, 2011 13181 Crossroads Parkway North Suite 400-West Tower City of Industry, CA 91746 Tel: 562.699.5500 Fax: 562.692.2244 www.agclawfirm.com Mayor and Members of the City Council City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 Re: Review of rates for legal services Dear Mayor and Members of the City Council: It has been a pleasure to serve the City of West Covina over the past 11 years and we look forward to our continued service in the years ahead. As we move forward to the New Year, we must make a request for a rate increase, something that our firm has sought only once in over 11 years of service. As you may be aware, AGC has been a conscientious partner during these tough economic times. We have received only one minor rate increase to our retainer in 11 years, and as you may remember, we reduced our rates in 2008. In seeking this increase, we are faced with operational cost increases like all other businesses. In using AGC, the City does not incur worker's compensation costs, salary, retirement and insurance benefit increases, fuel costs, rent or office operational costs. In spite of the rise in our firm's expenses, AGC is merely seeking an increase in our retainer of $1,500 per month. Additionally, we are seeking an adjustment to our hourly fee schedule to bring our firm's rates in line with the hourly rates we charge our other city clients. Even with this increase, AGC's fees are well below the hourly rates by California law firms in general and below firms providing similar services to surrounding cities and other outside counsel serving the City of West Covina. It should also be noted that these increases are below CPI increases over this period of time. Attached please find our rate schedule for 2012 and an increase for succeeding years based upon CPI. We take pride in our years of service to West Covina and will continue to provide excellent services in the years ahead. Thank you in advance for your consideration and approval. Very truly yours, ALVAREZ-GLASMAN & COLVIN Arnold M. Alvarez-Glasman City Attorney AMAG/cy Attachment Northern California • Napa Valley/Yountville Southern California • City of Industry RATE SCHEDULE FOR,ALVAREZ-GLASMAN & COLVIN FOR 2012 RETAINER $8,000 per month ($150.00/hr for first 50 hours) ESS HO Associates $165 per hour Senior Associates $175 per hour Partners $185 per hour SPECIAL SERVICES, LABOR, AND REDEVELOPMENT/ECONOMIC DEVELOPMENT SERVICES Associates $165 per hour Senior Associates $175 per hour Partners $185 per hour LITIGATION Associates $175 per hour Senior Associates $185 per hour Partners $195 per hour All law clerk or paralegal services to be billed at an hourly rate of $100 per hour. COSTS Copies $0.25 per page Facsimiles $0.55 per page Mileage $0.55 per mi All rates and costs listed above shall be adjusted annually on January 1 of each year by the increase in the Consumer Price Index Los Angeles-Riverside-Orange County All Urban Users/All Items.