BEST BEST & KRIEGER LLP (SONIA R. CARVALHO)-2012

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for the issuance of City bonds, the compensation provisions set forth in Exhibit A -1 shall apply; and (ii) where legal services are subject to cost recovery from a private third party, such as a developer, the hourly rate will be Three Hundred Dollars ($300) per hour, or such other increased hourly rate as has been agreed to by such third party. 7. COSTS AND OTHER CHARGES BB &K may incur various costs and expenses in rendering the legal services required by this Agreement which, if customary and necessary for the performance of legal services hereunder, with the prior approval of the City Manager shall be reimbursable by City. These costs and expenses are described in more detail in Exhibit A. All clerical services, ordinary travel costs (e.g., from the BB &K office to court or City Hall), and miscellaneous expenses (e.g., telephone and facsimile charges) are included within the rates set forth above, and there shall be no additional charges for such expenses. City agrees to reimburse BB &K for expenses such as experts' or consultant fees, or litigation expenses such as court reporters, which shall be passed through to the City at the actual costs thereof. Reimbursable costs shall not include any overhead or administrative charge by BB &K or BB &K's cost of equipment or supplies except as provided herein. Any item of expense must be explained in writing and approved by the City Manager in advance. The City will not reimburse BB &K for costs for which no backup materials are provided. City Attorney may determine it necessary or appropriate to use one or more outside investigators, consultants, or experts in rendering the legal services required (particularly if a matter goes into litigation). City will be responsible for paying such fees and charges. City Attorney will not, however, retain the services of any outside investigators, consultants, or experts without the prior written approval of City Manager and /or the City Council. City Attorney will select any investigators, consultants, or experts to be hired only after approval of City Manager. Extraordinary travel expenses, including transportation, meals, and lodging, when incurred on behalf of the City shall be reimbursed by City only with the prior written approval of City Manager. 8. STATEMENTS BB &K shall render to City a statement for fees, costs, and expenses incurred on a monthly basis. The Statement for General legal Services shall be a single invoice for the compensation as set forth in Exhibit A. Statements for all other services shall indicate the basis of the fees, including the hours worked, the hourly rate(s), and a brief description of the work performed. Separate billing categories can be established to track costs associated with City funding categories or to track project costs, or such other basis as the City may direct. Reimbursable costs shall be separately itemized. The City reserves the right to require additional substantiation of any claimed expense or item billed by BB &K. Any work product or memoranda or other written material described in the invoices shall be produced to the City Manager as requested. Services under this Contract shall not be billed in more than one -tenth of an hour (i.e., six minute) increments and shall represent the devotion of a full six minutes to a task before such an increment is billed. Under no circumstances shall BB &K use "block billing" procedures, wherein a list or a series of activities is done with only an aggregate amount of time specified. All tasks set forth in BB &K's billing documentation shall be highly specific and highly detailed. Overly generalized listings of task descriptions such as "research," "pre -trial preparation," "review contract," or "prepare for negotiations," will not be acceptable without an additional description of the work performed. BB &K shall provide a detailed description that will provide a meaningful record to an independent auditor reviewing said task description. 4