HomeMy WebLinkAboutItem 23 - City Attorney Evaluation and Restated Legal Services Agreement City Attorney Office
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Item # 23
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
November 2, 2021
TOPIC: City Attorney Evaluation and Restated Legal Services Agreement
AGENDA TITLE:
City Attorney Evaluation and Restated Legal Services Agreement with Best Best and
Krieger LLP to reflect positive performance evaluation conducted on October 5, 2021
RECOMMENDED ACTION
Authorize the Mayor, on behalf of the Council, to execute the Restated Legal Services
Agreement with Best Best and Krieger LLP for City Attorney and Special Counsel Legal
Services.
DISCUSSION
The City of Santa Ana City Charter provides that the City Council shall conduct
evaluations of its appointees on an annual basis. In addition, the City’s Legal Services
Agreement with Best Best and Krieger LLP, for City Attorney Sonia Carvalho’s services,
provides for an annual evaluation and opportunity for consideration of adjustments based
on a positive evaluation. On October 5, 2021, the City Council conducted this evaluation
of City Attorney Carvalho and agreed that Ms. Carvalho is doing an excellent job as City
Attorney. Based on their evaluation, the City Attorney has proposed adjustments to the
Legal Services Agreement, which has not been amended since 2014 and, in that
instance, compensation for the City Attorney’s annual retainer services were decreased.
The City Attorney’s Legal Services Agreement was adopted by the City Council on April
2, 2012 and provided for an annual retainer of $300,000 with provisions for hourly rates
for discretionary services to only be provided upon by written requests. In September
2014, during economically challenging times, employees were asked to take reductions
and the City Attorney took part in this effort and agreed to a reduction of her annual
retainer to $270,000 per year which the City Council approved an amendment to the
Agreement. The legal services agreement has not been adjusted or amended since 2014
and during the ten-year period, since services were initially engaged upon in 2012, other
employee bargaining units negotiated salary and benefit increases. For example and
comparison, the Santa Ana Management Association negotiated and received salary
increases of 24% and the Police Officers Association 35%. The City Attorney has
requested an adjustment. The City Council has agreed to an annual retainer in the
amount of $325,000 with a possible additional increase in six months based on continued
City Attorney Evaluation and Restated Legal Services Agreement
November 2, 2021
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positive performance. The proposed agreement also provides for terms and increased
hourly rates for the discretionary services which can only be provided upon written
approval of department directors and the City Manager. For example, additional
discretionary hourly rates depending on the type of matter and the complexity of the work
are adjusted:
General from $254 per hour to $295 per hour; and
Complex from $225-$350 per hour to $250-$375 per hour
The annual retainer amount of $325,000 for the City Attorney provides cost savings to the
City as the City does not pay any additional benefits such as medical insurance, car
allowances, retirement health plan, or any long-term CalPERS pension payments. In
comparison, see total costs for a City Attorney in the following cities:
City of Anaheim $460,516
City of Newport Beach $338,958
City of Huntington Beach $367,560
City of San Jose $629,574
City of Pasadena $416,410
City of Glendale $413,472
City of Riverside $410,652
City of Vallejo $375,100
City of Burbank $364,876
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
The City Council’s adoption of the Restated Agreement will result in an annual total
increase in costs of $55,000. There are sufficient funds in the City Attorney’s Office
Contractual Services Account to cover the increased expenses. The increase in hourly
rates will only have an impact if additional services are requested and generally the costs
for those services are covered by the department requesting the services.
EXHIBIT(S)
1. Restated Legal Services Agreement
Submitted By: Sonia Carvalho, City Attorney
Approved By: Kristine Ridge, City Manager
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RESTATED LEGAL SERVICES AGREEMENT
RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL
LEGAL SERVICES BETWEEN THE CITY OF SANTA ANA
AND
BEST BEST & KRIEGER LLP
1. PARTIES AND DATE
This Agreement is made and entered into as of the second day of November, 2021 by and
between the City of Santa Ana (“Client”) and Best Best & Krieger LLP, a limited liability
partnership engaged in the practice of law (“BB&K”).
2. RECITALS
2.1 Client wishes to engage the services of BB&K, and specifically, Sonia R. Carvalho,
as its City Attorney to perform all necessary legal services for the Client on the terms set forth
below. For purposes of this Agreement, the term “Client” shall include the community’s Successor
Agency, Housing Authority, and any other affiliated entities.
3. TERMS.
3.1 Term. The term of this Agreement shall commence on November 2, 2021 and shall
continue in full force and effect until terminated in accordance with Section 3.12.
3.2 Scope of Services. BB&K shall serve as City Attorney and shall perform legal
services (“Services”) as may be required from time to time by the Client as set forth by this
Agreement, unless otherwise agreed to by the Client and BB&K. As part of the Services to be
performed hereunder, BB&K shall be responsible for the following:
3.2.1 Preparation for, and attendance at, regular meetings of the Client;
3.2.2 Provision of legal counsel at such other meetings as directed by the Client;
3.2.3 Preparation or review of Client ordinances and resolutions, together with
such staff reports, orders, agreements, forms, notices, declarations, certificates, deeds, leases and
other documents as requested by the Client;
3.2.4 Rendering to the officers and employees of the Client legal advice and
opinions on all legal matters affecting the Client, including new legislation and court decisions, as
directed by the Client;
3.2.5 Researching and interpreting laws, court decisions and other legal
authorities in order to prepare legal opinions and to advise the Client on legal matters pertaining
to Client operations, as directed by the Client;
3.2.6 Performing legal work pertaining to property acquisition, property disposal,
public improvements, public rights-of-way and easements, as directed by the Client;
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3.2.7 Responding to inquiries and review for legal sufficiency ordinances,
resolutions, contracts, and administrative and personnel matters, as directed by the Client;
3.2.8 Representing and assisting on litigation matters, as directed by the Client.
Such services shall include, but shall not be limited to, the preparation for and making of
appearances, including preparing pleadings and petitions, making oral presentations, and preparing
answers, briefs or other documents on behalf of the Client, and any officer or employee of the
Client, in all federal and state courts of this State, and alternative dispute resolution officer, and
before any governmental board or commission, including reviewing, defending or assisting any
insurer of the Client or its agents or attorneys with respect to any lawsuit filed against the Client
or any officer or employee thereof, for money or damages.
ADDITIONAL SERVICES FOR AN ADDITIONAL FEE
3.2.9 BB&K’s Project 5 Program. Provides participants with memoranda
summarizing new changes in case law under the California Environmental Quality Act (“CEQA”),
an annually updated set of CEQA notices and forms to aid participants in meeting CEQA’s
requirements, an annually updated set of Local CEQA Guidelines and a draft Resolution for
adopting Local CEQA Guidelines, memoranda summarizing pending and recently passed CEQA
legislation, and other CEQA resources and materials. Memoranda, forms, and guidelines are
provided to participating agencies via the CEQA Guidelines Client Portal, a secure website
providing an on-demand and continually updating library of CEQA resources. By providing our
Project 5 Program updates to a large pool of participants, BB&K is able to divide the overall cost
of the products among all participants and charge only a fraction of the total costs to the individual
client agencies. The Project 5 services will be included within the annual retainer and no additional
charges will be billed to the City for these special services.
3.2.10 BB&K’s Advanced Records Center Services. Through its new Advanced
Records Center (“ARC”), BB&K combines its legal acumen and experience with cutting-edge
technology to provide comprehensive and cost-effective support for non-routine records-related
matters. Specifically, at the Client’s option, the ARC team will assist Client with non-routine
Public Records Act Processing and Policy Drafting, as detailed below.
3.2.11 BB&K Trainings. Best Best & Krieger LLP offers a variety of trainings
to public agency and private business leadership and staff on topics required by law, as well as
preventative and educational legal topics. The trainings are interactive and can be given onsite, via
live webinar or virtual on-demand. Some of our most popular trainings include AB 1234 Ethics,
Workplace Civility and Sexual Harassment Avoidance Training, The Brown Act “Open Meetings
Law,” Crystalizing Your Agency’s CPRA Policies & Procedures and SB 1343 Sexual Harassment
Avoidance Training for Non-Supervisors.
3.2.12 BB&K’s Election Law Center Subscription Services. Participants in
BB&K’s Election Law Center will be given access to up-to-date election document templates,
including resolutions and other mandatory election documents. The annual subscription also gives
participants access to BB&K’s Election Law Center hotline, which participants can use for
guidance on day-to-day election law questions that arise during campaign and election season.
The annual fee shall be billed each December. The current fee is $1,950.
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3.3 Designated City Attorney. Sonia R. Carvalho (“Carvalho”) shall be designated as
City Attorney in accordance with the City of Santa Ana City Charter, and shall be responsible for
the performance of all Services under this Agreement, including the supervision of Services
performed by other members of BB&K. Carvalho shall be designated as Housing Authority and
Successor Agency Counsel. No change in these assignments shall be made without the consent
of the Client.
3.4 Time of Performance. The Services of BB&K shall be performed expeditiously in
the time frames and as directed by the Client.
3.5 Assistance. The Client agrees to provide all information and documents necessary
for the attorneys at BB&K to perform their obligations under this Agreement.
3.6 Independent Contractor. BB&K shall perform all legal services required under this
Agreement as an independent contractor of the Client and shall remain, at all times as to the Client,
a wholly independent contractor with only such obligations as are required under this Agreement.
Neither the Client, nor any of its employees, shall have any control over the man ner, mode or
means by which BB&K, its agents or employees, render the legal services required under this
Agreement, except as otherwise set forth. The Client shall have no voice in the selection,
discharge, supervision or control of BB&K’s employees, representatives or agents, or in fixing
their number, compensation, or hours of service.
3.7 Fees and Costs. BB&K shall render and bill for legal services in the following
categories and at rates set forth in Exhibit “A” and in accordance with the BB&K Billing Policies
set forth in Exhibit “D”, both of which are attached hereto and incorporated herein by reference.
In addition, the Client shall reimburse BB&K for reasonable and necessary expenses incurred by
it in the performance of the Services under this Agreement. Authorized reimbursable expenses
shall include, but are not limited to, printing and copying expenses, mileage expenses at the rate
allowed by the Internal Revenue Service, toll road expenses, long distance telephone and facsimile
tolls, computerized research time (e.g. Lexis or Westlaw), research services performed by BB&K’s
library staff, extraordinary mail or delivery costs (e.g. courier, overnight and express delivery),
court fees and similar costs relating to the Services that are generally chargeable to a client.
However, no separate charge shall be made by BB&K for secretarial or word processing services.
3.8 Billing. BB&K shall submit monthly to the Client a single-page invoice for the
Retainer Services and a detailed statement of account for all Special Legal Counsel Services. The
Client shall review BB&K’s monthly statements and pay BB&K for Services rendered and costs
incurred, as provided for in this Agreement, on a monthly basis.
3.9 Annual Reviews. The Client and BB&K agree that a review of performance and
the compensation amounts referenced in this Agreement should occur at least annually.
3.10 Insurance. BB&K carries errors and omissions insurance with Lloyd’s of London.
After a standard deductible, this insurance provides coverage beyond what is required by the State
of California. A declaration page containing information about BB&K’s errors and omissions
insurance policy is available upon Client’s request.
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3.11 Attorney-Client Privilege. Confidential communication between the Client and
BB&K shall be covered by the attorney-client privilege. As used in this article, “confidential
communication” means information transmitted between the Client and BB&K in the course of
the relationship covered by this Agreement and in confidence by a means that, so far as the Client
is aware, discloses the information to no third persons other than those who are present to further
the interests of the Client in the consultation or those to whom disclosure is reasonably necessary
for the transmission of the information or the accomplishment of the purpose for which BB&K is
consulted, and includes any legal opinion formed and advice given by BB&K in the course of this
relationship.
3.12 Termination of Agreement and Legal Services. This Agreement and the Services
rendered under it may be terminated at any time upon a vote of five members of the City Council
in accordance with the City of Santa Ana City Charter and with thirty (30) days’ prior written
notice from either party, with or without cause. In the event of such termination, BB&K shall be
paid for all Services authorized by the Client and performed up through and including the effective
date of termination. BB&K shall also be reimbursed for all costs associated with transitioning any
files or other data or documents to a new law firm or returning them to the Client.
3.13 Entire Agreement. This Agreement contains the entire Agreement of the parties
with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or
agreements.
3.14 Governing Law. This Agreement shall be governed by the laws of the State of
California. Venue shall be in Orange County.
3.15 Amendment; Modification. No supplement, modification or amendment of this
Agreement shall be binding unless executed, in writing, and signed by both parties.
3.16 Waiver. No waiver of any default shall constitute a waiver of any other default or
breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or
service voluntarily given or performed by a party shall give the other party any contractual rights
by custom, estoppel, or otherwise.
3.17 Invalidity; Severability. If any portion of this Agreement is declared invalid,
illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
shall continue in full force and effect.
3.18 Counterparts. This Agreement may be signed in counterparts, each of which shall
constitute an original.
3.19 Delivery of Notices. All notices permitted or required under this Agreement notices
shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after
deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable
address. Actual notice shall be deemed adequate notice on the date actual notice occurred,
regardless of the method of service. All notices permitted or required under this Agreement shall
be given to the respective parties at the following address, or at such other address as the respective
parties may provide in writing for this purpose:
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Client: City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Attention: City Manager
BB&K: Best Best & Krieger LLP
18101 Von Karmen, Suite 1000
Irvine, CA 92614
Attention: Sonia R. Carvalho
3.20 Indemnification.
(A) BB&K agrees to indemnify City / Agency, its officers, employees and agents
against, and will hold and save each of them harmless from, any and all actions, suits, claims,
damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities
(herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising
from the negligent acts or omissions of BB&K hereunder, or arising from BB&K’s negligent
performance of any term, provision, covenant or condition of this Agreement, except to the extent
such claims or liabilities arise from the negligence or willful misconduct of City, its officers, agents
or employees.
(B) City acknowledges BB&K is being appointed as City Attorney pursuant to the
authority of Government Code Section 36505, and has the authority of that office. Accordingly,
the City is responsible pursuant to Government Code Section 825 for providing a defense for the
City Attorney for actions within the scope of its engagement hereunder. Therefore, City agrees to
undertake its statutory duty and indemnify BB&K, its officers, employees and agents against and
will hold and save each of them harmless from, any and all claims or liabilities that may be asserted
or claims by any person, firm or entity arising out of or in connection with the work, operations or
activities of BB&K within the course and scope of its performance hereunder, but nothing herein
shall require City to indemnify BB&K for liability arising from its own negligence or alleged
negligence. In connection herewith:
(i) City will promptly provide a defense and pay any judgment rendered against
the City, its officers, agency or employees for any such claims or liabilities arising out of or in
connection with such work, operations or activities of City hereunder; and
(ii) In the event BB&K, its officers, agents or employees is made a party to any
action or proceeding filed or prosecuted against City for such damages or other claims solely
arising out of or in connection with the work operation or activities of City hereunder, City agrees
to pay to BB&K, its officers, agents or employees any and all costs and expenses incurred by
attorney, its officers, agents or employees in such action or proceeding, including, but not limited
to, legal costs and attorneys’ fees.
IN WITNESS WHEREOF, the Client and BB&K have executed this Agreement for City
Attorney and Special Counsel Legal Services as of the date first written above.
(SIGNATURES CONTAINED ON FOLLOWING PAGE)
SIGNATURE PAGE TO
AGREEME T FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES
BETWEEN THE CITY OF SANTA ANA A D BEST BEST & KRIEGER LLP
CITY OF SANTA ANA
By:
Name: Vicente F. Sarmiento
Title: Mayor
Date: November_, 2021 ATTEST: By:
Name: Daisy Gomez
Title: Clerk of the Council
Date: November_, 2021 BEST BEST & KRIEGER LLP:By: �otw:{�
Name: Sonia R. Carvalho
Title: PARTNER
Date: November _, 2021
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EXHIBIT A
TO
RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL
LEGAL SERVICES BETWEEN CITY OF SANTA ANA
AND
BEST BEST & KRIEGER LLP
BILLING ARRANGEMENTS
1. Basic Legal Services - Description. Basic legal services shall include all services provided
to Client that are not otherwise specifically identified below as either Special Legal Services, Third
Party Reimbursable Legal Services, or Public Finance Legal Services (“Basic Legal Services”).
The Client shall pay for Basic Legal Services in the amount of $325,000 per year which
will be charged as a flat rate monthly retainer with a single page invoice. The City Council agrees
to conduct an additional evaluation on or before the end of the 21-22 Fiscal Year and if the results
are announced in public as positive then the Council may also announce an increase of the annual
amount to $350,000.
The Client shall also provide for one parking space at the Ross Annex Parking Garage and
for the use of City equipment such as a desktop computer and a mobile device such as an IPad or
similar device to assist the City Attorney when working on site.
2. Discretionary Basic Legal Services at Hourly Rates. Additional legal services may be
provided by BB&K at the discretion of the members of the Santa Ana City Attorney’s Office at
the following blended rates, in an amount not to exceed One Hundred Thousand Dollars
($100,000) per year:
Attorneys $ 295.00 per hour
Paralegals & Law Clerks $ 160.00 per hour
Other Para-Professionals* $ 160.00 per hour
*Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those
other personnel titles and rates.
Utility Matters at Hourly Rates. Certain matters identified at Utility Matters, such as but
not limited to the NPDES Program and Utility Enterprise matters, shall be billed at the following
rates:
Attorneys $ 300 / 325.00 per hour
Paralegals & Law Clerks $ 160.00 per hour
Other Para-Professionals* $ 160.00 per hour
*Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those
other personnel titles and rates.
3. Special Legal Services - Description. Special Legal Services shall include the following
types of services:
A. Litigation and formal administrative or other adjudicatory hearing matters
B. Labor relations and employment matters
C. Non-routine real estate matters (e.g. CC&R’s, deed or title work)
D. Land acquisition and disposal matters (including pre-condemnation)
E. Successor Agency and housing matters
F. Taxes, fees and charges matters (e.g. Prop. 218 & Mitigation Fee Act)
G. Public construction disputes
H. Non-routine contract negotiation matters (including non-BB&K model agreements
and franchise agreements)
I. Non-routine land use and development matters (including general plan updates,
Williamson Act issues, annexations and development agreements)
J. Environmental matters (e.g. CEQA, NEPA, endangered species)
K. Water law matters (e.g. water rights & quality)
L. Tax and ERISA related matters
M. Toxic substances matters (e.g. CERCLA, RCRA)
N. Complex public utility matters (e.g. electric, natural gas, telecommunications,
water, rail or transit that involve state or federal regulatory issues)
O. Renewable energy and energy efficiency project contracts and power purchase
agreements
P. Intergovernmental Relations and Advocacy efforts (e.g. legislative and regulatory
representation) at the federal and state level.
Q. Non-routine election law matters, including election law litigation.
R. PRA Policy drafting including reviewing, assessing, and updating records-related
policies to reflect current legal standards and best practices.
S. Other matters mutually agreed upon between BBK and the City Manager.
4. Special Legal Services – Rates. The Client shall pay for Special Legal Services at the
following rates and as specified in the specific letter confirming the request for such Special Legal
Services.
Partners & Of Counsel From $295 up to $375 per hour
Partners - Employee Benefits/CALPERS $425 per hour
Associates From $250 up to $290 per hour
Paralegals & Clerks $175 per hour
Other Para-Professionals* $175 per hour
*Other titles may be used in our legal services. Please refer to section 6 of this Exhibit for those
other personnel titles and rates.
These rates are reviewed annually and may be increased from time to time with advanced written
notice to the client.
5. Agreement Regarding Rate Categories. If BB&K believes that a matter falls within the
Special Legal Services, Third Party Reimbursable Legal Services, or Public Finance Legal
Services rate categories, BB&K shall seek written approval from the City Manager or his/her
designee. The City Manager’s or his/her designee’s approval of such a request from BB&K shall
not be unreasonably withheld.
6. Other Billing Personnel. Additional billing personnel shall bill at the following rates for
all services performed when approved in writing by the City Manager:
Muni & Litigation Analysts At applicable rates
Research Analysts At applicable rates
Administrative Assistants At applicable rates
(for docketing and audit letter responses)
7. Annual Adjustments.
Beginning July 1, 2023, and every July 1st thereafter, the above rates and retainer amounts
will be adjusted annually by the amount of the salary cost of living adjustment, if any, given to
employees who are members of the SAMA bargaining unit.
EXHIBIT B
TO
RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL
LEGAL SERVICES BETWEEN
CITY OF SANTA ANA
AND
BEST BEST & KRIEGER LLP
THIRD PARTY REIMBURSABLE BILLING POLICIES Third Party Reimbursable Legal
Services - Description. Third Party Reimbursable Legal Services shall include legal services
provided to the City for which the City receives reimbursement from a developer or other third
party. These reimbursable legal services include, but are not limited to, negotiation and review
of development agreements, planning entitlements, review of CC&Rs; establishment of
financing districts (i.e., Community Facilities Districts; Assessment Districts; Landscape and
Lighting Maintenance Districts); the processing of land use/environmental projects for which the
City is entitled to reimbursement, as well as defending any challenges to project entitlements or
any dispute or litigation related to such reimbursable legal services. Third Party Reimbursable
Legal Services - Rates. The Client shall pay for Third Party Reimbursable Legal Services at
BB&K’s then current published standard private client rates, minus ten percent (10%) or at a
lower rate agreed upon. Upon execution of this Agreement, BB&K shall provide a copy of its
published rate schedule to the Client. BB&K shall also provide annual written updates to the
Client when changes are made to the published rate schedule.
C-1
EXHIBIT C
TO
RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL
LEGAL SERVICES BETWEEN
CITY OF SANTA ANA
AND
BEST BEST & KRIEGER LLP
PUBLIC FINANCE & BOND BILLING POLICIES
1. Public Finance & Bond Rates. BB&K will provide bond counsel, special counsel or
disclosure counsel services at the request of the Client. Such bond counsel and special counsel
services include the preparation of all legislative approvals and legal documentation relating to the
appropriate sale and delivery of the bonds, notes or other obligations. BB&K will also prepare
such closing certificates and legal opinions necessary for the delivery of the bonds. As disclosure
counsel, we will prepare the disclosure documents for the Client and conduct the necessary due
diligence related to the transaction. Our fees will be determined based upon the type of financing
and the expected involvement of the attorneys involved. We will provide the Client with a detailed
description of our services and our fees and reimbursable costs upon the Client’s request.
Notwithstanding the foregoing, in those cases where the fees are reimbursable by a third party, at
BB&K’s option it may proceed on an hourly basis and utilize the Third Party Reimbursable Legal
Services category provided for in this Amendment, including with respect to services rendered for
the formation of, or annexation to, a CFD (of either the City or other local public agency), as well
as the negotiation and preparation of funding agreements and joint financing agreements. Legal
services related to the Client’s compliance with its continuing disclosure covenants and provide
such necessary advice on the Client’s compliance shall be billed as Special Legal Services, above.
D-1
EXHIBIT D
TO
RESTATED AGREEMENT FOR CITY ATTORNEY AND SPECIAL COUNSEL LEGAL SERVICES
BETWEEN
CITY OF SANTA ANA
AND
BEST BEST & KRIEGER LLP
BB&K BILLING POLICIES
Our century of experience has shown that the attorney-client relationship works best when there is mutual
understanding about fees, expenses, billing and payment terms. Therefore, this statement is intended to explain
our billing policies and procedures. Clients are encouraged to discuss with us any questions they have about these
policies and procedures. Clients may direct specific questions about a bill to the attorney with whom the client
works or to our Accounts Receivable Department (accounts.receivable@bbklaw.com). Any specific billing
arrangements different from those set forth below will be confirmed in a separate written agreement between the
client and the firm.
INVOICE AND PAYMENT OPTIONS
Best Best & Krieger strives to meet our clients’ needs in terms of providing a wide variety of invoice
types, delivery and payment options. Please indicate those needs including the preferred method of invoice
delivery (Invoice via Email; or USPS). In addition, accounts.receivable@bbklaw.com can provide a W -9 upon
request and discuss various accepted payment methods.
FEES FOR ELECTRONICALLY STORED INFORMATION (“ESI”) SUPPORT AND STORAGE
BBK provides Electronically Stored Information (“ESI”) services for matters requiring ESI support –
typically litigation or threatened litigation matters. BBK provides services for basic ESI processing and storage
at the following rates per month based on the number of gigabytes of data (“GB”) processed and stored:
1GB -250GB: $10 per GB
251GB - 550GB: $8 per GB
551GB - 750GB: $6 per GB
751GB - 1TB: $4 per GB
The amount BBK charges for basic processing and storage of ESI allows BBK to recover the costs of
providing such services, plus a net profit for BBK. BBK believes that the rates it charges for processing and
storage are lower than comparable services available from third party vendors in the market. If you wish to
contract separately with a third party vendor for processing and storage costs, please notify BBK in writing.
[OPTIONAL BBK also provides advanced ESI processing services at hourly rates for personnel in its Litigation
Support Group. A copy of BBK’s current rates for such services will be provided upon request.] BBK shall not
incur costs for ESI support on a particular matter without first confirming by ema il or written correspondence
with the client that the client agrees such services are necessary for the matter at hand.
FEES FOR PROFESSIONAL SERVICES
Unless a flat fee is set forth in our engagement letter with a client, our fees for the legal work we will
undertake will be based in substantial part on time spent by personnel in our office on that client’s behalf. In
special circumstances which will be discussed with the client and agreed upon in writing, fees will be based upon
the novelty or difficulty of the matter, or the time or other special limitations imposed by the client.
Hourly rates are set to reflect the skill and experience of the attorney or other legal personnel rendering
services on the client’s behalf. All legal services are billed in one-tenth of an hour (0.10/hour) or six-minute
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increments. Our attorneys are currently billed at rates from $220 to $795 per hour, and our administrativ e
assistants, research assistants, municipal analysts, litigation analysts, paralegals, paraprofessionals and law clerks
are billed at rates from $150 to $290 per hour for new work. These rates reflect the ranges in both our public and
our private rates. These hourly rates are reviewed annually to accommodate rising firm costs and to reflect
changes in attorney status as lawyers attain new levels of legal experience. Any increases resulting from such
reviews will be instituted automatically and will appl y to each affected client, after advance notice.
Non-Attorney Personnel: BBK may employ the services of non-attorney personnel under the supervision
of a BBK attorney in order to perform services called for in the legal services agreement. The most common non-
attorney personnel utilized are paralegals. Other types of non-attorney personnel include, but are not limited to,
case clerks, litigation analysts, and specialty consultants. The client agrees that BBK may use such non-attorney
personnel to perform its services when it is reasonably necessary in the judgment of the responsible BBK attorney.
Hourly fees for non-attorney personnel will be charged at the rate then in effect for such personnel. A copy of
BBK’s current rates and titles for non-attorney personnel will be provided upon request.
FEES FOR OTHER SERVICES, COSTS AND EXPENSES
We attempt to serve all our clients with the most effective support systems available. Therefore, in
addition to fees for professional legal services, we also charge separately for some other services and expenses to
the extent of their use by individual clients. These charges include but are not limited to, mileage at the current
IRS approved rate per mile, extraordinary telephone and document delivery charges, copying charges,
computerized research, court filing fees and other court-related expenditures including court reporter and
transcription fees. No separate charge is made for secretarial or word processing services; those costs are included
within the above hourly rates.
We may need to advance costs and incur expenses on your behalf on an ongoing basis. These items are
separate and apart from attorneys’ fees and, as they are out-of-pocket charges, we need to have sufficient funds
on hand from you to pay them when due. We will advise the client from time to time when we expect items of
significant cost to be incurred, and it is required that the client send us advances to cover those costs before they
are due.
ADVANCE DEPOSIT TOWARD FEES AND COSTS
Because new client matters involve both a substantial undertaking by our firm and the establishment of
client credit with our accounting office, we require an advance payment from clients. The amount of this advance
deposit is determined on a case-by-case basis discussed first with the client, and is specified in our engagement
letter.
Upon receipt, the advance deposit will be deposited into the firm’s client trust account. Our monthly
billings will reflect such applications of the advance deposit to costs and not to at torney’s fees (unless otherwise
noted in our accompanying engagement letter). At the end of engagement, we will apply any remaining balance
first to costs and then to fees. We also reserve the right to require increases or renewals of these advanced deposits.
By signing the initial engagement letter, each client is agreeing that trust account balances may be
withdrawn and applied to costs as they are incurred and to our billings, when we issue our invoice to the client.
If we succeed in resolving your matter before the amounts deposited are used, any balance will be promptly
refunded.
MONTHLY INVOICES AND PAYMENT
Best Best & Krieger LLP provides our clients with monthly invoices for legal services performed and
expenses incurred. Invoices are due and payable upon receipt.
Each monthly invoice reflects both professional and other fees for services rendered through the end of
the prior month, as well as expenses incurred on the client’s behalf that have been processed by the end of the
prior month. Processing of some expenses is delayed until the next month and billed thereafter.
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Our fees are not contingent upon any aspect of the matter and are due upon receipt. All billings are due
and payable within ten days of presentation unless the full amount is covered by the balance of an advance held
in our trust account. If a bill is not paid within 30 days, a late charge of one percent per month on the unpaid
invoice may be added to the balance owed, commencing with the next statement and continuing until paid.
It is our policy to treat every question about a bill promptly and fairly. It is also our policy that if a client
does not pay an invoice within 60 days of mailing, we assume the client is, for whatever reason, refusing to pay.
We reserve the right to terminate our engagement and withdraw as attorney of record whenever our invoices are
not paid. If an invoice is 60 days late, however, we may advise the client by letter that the client must pay the
invoice within 14 days or the firm will take appropriate steps to withdraw as attorney of record. If the delay is
caused by a problem in the invoice, we must rely upon the client to raise that with us during the 14 -day period.
This same policy applies to fee arrangements which require the client to replenish fee deposits or make deposits
for anticipated costs.
From time to time clients have questions about the format of the bill or description of work performed. If
you have any such questions, please ask them when you receive the bill so we may address them on a current
basis.
CHANGES IN FEE ARRANGEMENTS AND BUDGETS
It may be necessary under certain circumstances for a client to increase the size of required advances for
fees after the commencement of our engagement and depending upon the scope of the work. Fo r example, prior
to a protracted trial or hearing, the firm may require a further advance payment to the firm’s trust account
sufficient to cover expected fees. Any such changes in fee arrangements will be discussed with the client and
mutually agreed in writing.
Because of the uncertainties involved, any estimates of anticipated fees that we provide at the request of
a client for budgeting purposes, or otherwise, can only be an approximation of potential fees.
BEST BEST & KRIEGER LLP