12-20-2011 - Professional Services Rate Adjustments•
•
City of West Covina
Memorandum
TO:
FROM:
Andrew G. Pasmant, City Manager
and City Council
Chris. Freeland, Deputy City Manager
AGENDA
ITEM NO. 9
DATE December 20, 2011
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 41). 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:
1. Authorize the professional services rate increases and CPI adjustments as recommended by
City staff;
2. Deny the professional services rate increases outlined in the staff report;
3. Instruct City staff to initiate the Request for Qualifications for one or multiple legal areas
(i.e. City Attorney, Personnel, etc.); or
4. 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:
1. Letter From LCW Requesting Increase In Hourly Rates.
2. Letter From Alvarez-Glasman & Colvin Requesting Increase In Hourly Rates.
3. Survey of City Attorney Fees for West Covina Market Cities
OACHMENT I
LIEBERT CASSIDY WHITMORE
A PaorswoRA6 LAw COIlotATION
Lot ANGILR I FIRSNO I SAN FRANCISCO I SAN DINGO
6033 War Cammy VomsvAID. Swm 500
Los ANouss. CAuroaNIA 90W5
T; (3101991.20M F; 010) 3374937
STMDSMANN&C WLEGAL.COM
010) 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. Pasmant,
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.
We have not raised our rates for four years. Now, however, in order tFcontinue 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.
T CMSIDY WHITMORE
Partner
1I • • •
I
I.
1'
LIEBERT CASSIDY WHITMORE
FEE SCHEDULE
HOURLY RATES
Partners $300.00
Of Counsel $265.00
Associates $180.00 - $245.00
Paraprofessionals $105.00 - $140.00
OTACHMENT
Are ALVAREZ-GLASMAN & COLVIN
ATTORNEYS AT LAW
December 13, 2011
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:
13181 Crossroads Parkway North
Suite 400-West Tower
City of Industry, CA 91746
Tel: 562.699.5500
Fax: 562.6922244
www.agelawfirm.com
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 irate 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
4�A74
Arnold-M. Alvarez-Glasman
City Attorney
AMAG/cy Northern California • Napa VaOeyNountville Southern California • Gty of Industry
Attachment .
RATE SCHEDULE FOR ALVAREZ-GLASMAN & COLVIN FOR 2012
RETAINER
$8,000 per month
($160.00/hr for first 50 hours)
EXCESS HOURS OVER RETAINER
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 mile
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/Ail
Items.
LEGAL SERVICES COSTS
Survey of Area Labor Market Cities
AS OF 12/13/11
GENERAL LEGAL SERVICES
Current West
Covina
Proposed West
Covina
Fullerton
Monterey Park
Ontario
Pomona
Whittier
Alhambra 2009
Baldwin Park
2009
Retainer
S6,500.00
$8,000.00
n/a
$15,000.00
See Notes Below
o/a
n/a
Senior Partner
n/a
n/a
S 178.00
$203.00
$175.00
$275.00to 5325.00
S 175.00
Partner
$150.00
$185.00
$178.00
5203.00
$175.00
$175.00
Senior Associates
$140.00
$175.00
$179.00
S203.00
S175.00
$190.00toS255.00
$175.00
Associates
$135.00
S165.00
$179.00
$203.00
$175.00
S175.00
Law Clerk /Parale 1
$90.00
$100.00
$178.00
$125.00
5100.00
S125.00to$135.00
$110.00
SPECIAL SERVICES MGATIO
Retainer
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Senior Partner
n/a
n/a
S 178.00
S2104290
$203.00
$225-5475
5275.00 to $325.00
$200.00
Partner
$165.00
$195.00
S178.00
$210-$291
$203.00
$200.00
Senior Associates
$155.00
$185.00
$178.00
$210•$292
$203.00
$190.00toS255.00
$200.00
Associates
$145.00
$175.00
$178.00
S210-$293
$203.00
$20000
Law Clerk / Paralegal
$90.00 1
$100.00
$178.00 1
N/A 1
$125.00 1
1
$180.00 1
$125.00 to $135.00 1
$110.00
ADDITIONAL NOTES:
City of West Covina:
City of Fullerton:
$6,500 per month retainer currently (50 hours x $130 per hour), then hourly rates vary based on which legal team member is assigned.
No. retainer, flat hourly fee for all staff (including Agency and Special Services)
$15,000 per month flat fee for all general municipal services. If the hourly rates continue over 85 hours/month over a six month period, retainer to increase at a rate of
City of Monterey Park: $200/hour. Special Services vary between $210 and $290/hour.
City of Ontario: No retainer, flat hourly fee for all attorneys in all areas, with an annual cap of $1,400,000 for general services. Cap does not apply to Extraordinary Services such as: eminent
domain, complex personnel litigation, complex tort litigation, elective litigation at City Council's request, etc. Contract also has automatic COLA.
City of Pomona: City is billed for the first 260 hours a month at $138.60/hour for all attorneys ($36,036/month). After 260 hours, all attorneys bill at $149.00/hour. Law Clerks are at 50% of
attorney fees.
City of Whittier: Flat fee of $175.00/hour for General Law and $225.00 - $475.00 for RDA/Special Counsel.
The Following are Rates from a 2009 Survey. These cities have been non -responsive on their current rates.
City of Alhambra: No retainer, hourly rates vary based on which legal team member is assigned
City of Baldwin Park: No retainer, flat hourly fee for all attorneys
CITIES WITH IN-HOUSE CITY ATTORNEYS:
City of Burbank
City of Downey
City of El Monte
City of Pasadena
9
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