BEST BEST & KRIEGER LLP (SONIA R. CARVALHO) 1A-2014

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Agreement. City Attorney shall also, in accordance with City's rules and regulations, have authority to hire staff in the Office of the City Attorney, 5. COMPENSATION A. Compensation shall be as set forth in Exhibit A. B. Payment of Compensation shall be as set forth in Exhibit B. 6. BOND OR FINANCIAL SERVICES Notwithstanding the foregoing, (i) in the event City Council requests that BB&K serve separately as Bond Counsel for the issuance of City bonds, the compensation provisions set forth in Exhibit A -I shall apply. where legal services are subject to cost recovery from a third party, such as a developer, the hourly rate for BB&K's legal services will be the applicable private hourly rate of the respective BB&K attorney, with or without a discount as negotiated at the tune the new matter is approved. 7. COSTS AND OTHER CIIARGh)S 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 Council 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 when BB&K is providing General City Attorney services, pursuant to section 2(A), above. When BB&K is providing Special Legal Services or Additional Specialized Legal Services, pursuant to sections (B) or (C), above, City agrees to reimburse BB&K for travel or parking and 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 or Council 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 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 investigators, consultants, or experts without the prior written approval of the City Manager. 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. -4- 55394.00000A9187497,1