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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 3, 2007 TITLE: AMENDMENT TO LEGAL SERVICES AGREEMENT WITH McCUNE & HARBER, LLP CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1S` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an amendment with the law firm of McCune and Harber increasing the hourly rate from $155 to $175. DISCUSSION The City Attorney's Office provides legal services to the City, its officials and employees, primarily through staff attorneys. However, it is sometimes necessary to retain outside counsel for specialized fields of practice and cases that have extraordinary staffing requirements. The law firm of McCune and Harber has provided legal services to the City and its employees in the specialized area of major tort liability and police-related litigation. Funds for this activity are provided through the Liability Fund managed by the Risk Management Division of the Personnel Services Agency. The City Attorney's Office has been notified by the firm that they wish to increase their fees. McCune and Harber has provided the City with exceptional and cost-effective representation since January of 2002. McCune and Harber's initial hourly rate was $135.00 per hour. In May 2005 the firm's hourly fee was adjusted to $155.00. It has been more than two years since the firm has reevaluated its hourly rate. The suggested hourly rate of $175.00 is competitive given the firm's expertise, the complexity of matters involved and rates charged to other municipal clients of the firm. The Risk Management Division also monitors billing rates paid by other members of BICEP, the risk management pool to which the City belongs. The firm's proposed rate is consistent with BICEP guidelines for outside 25FF-1