02-0507_WOODRUFF, SPRADLIN & SMART_H1a_Agenda Report C�oc0 . 3v
5/7/2002
AGENDA ITEM H I a
TO: Honorable Mayor and City Councilmembers
FROM: George Scarborough, City Manager
SUBJECT: Consideration of Adjustment to City Attorney Services Rate Structure
(Woodruff, Spradlin and Smart)
RECOMMENDATION:
By Motion, Adopt a Resolution Adjusting City Attorney Services Rate Structure to
Reflect Rate Increase
SUMMARY:
On February 18, 1997, the City Council approved a retainer agreement for attorney
services with Woodruff, Spradlin and Smart. Legal services are to be provided to the City
and to the Capistrano Valley Water District ("the District") under this agreement.
Contracting with the firm of Woodruff, Spradlin and Smart ensures that the City and the
District have access to required legal services in connection with the City's operation as
a general law city. The retainer agreement approved in 1997 is open ended, but allows the
City to terminate the Agreement upon 60 days written notice.
BACKGROUND:
In May 2001, Woodruff, Spradlin and Smart notified the City of a rate increase effective
July 1, 2001. The new rates represent an increase of$15.00 per hour for attorneys, from
$145.00 to $160.00; and, a $10.00 increase for paralegals, from $75.00 to $85.00. This
is a 10.3% increase. For comparison, the Consumer Price Index increase for the Los
Angeles/Riverside/Orange County area for the same period of time (1997 to 2001) was
11.3%.
The rate schedule attached as Exhibit "A"to the agreement with Woodruff, Spradlin and
Smart should have been amended to reflect the new rate. City staff erred in not bringing
the amended schedule for City Council action in a timely fashion.
It is recommended that, at this time, the City Council adopt by Resolution, the rate
increase for legal services under the Agreement with Woodruff, Spradlin and Smart.
The proposed resolution is attached, for City Council consideration.
FOR CITY COUNCIL AGENDA.-S- "---,c:-::
Agenda Item - 2 - May 7, 2002
COMMISSIONIBOARD REVIEW AND RECOMMENDATIONS:
NIA
FINANCIAL CONSIDERATIONS:
Sufficient funds have been budgeted in Fiscal Year 2001-02 to cover Woodruff,
Spradlin and Smart's rate increase.
NOTIFICATION:
Woodruff, Spradlin and Smart
ALTERNATE ACTIONS:
1. By Motion, Adopt a Resolution Adjusting City Attorney Services Rate Structure to
Reflect Rate Increase.
2. By Motion, Adopt a Resolution Adjusting City Attorney Services Rate Structure to
Reflect Rate Increase, with modifications.
3. Request additional information from staff.
RECOMMENDATION:
By Motion, Adopt a Resolution Adjusting City Attomey Services Rate Structure to
Reflect Rate Increase.
4ity
ectful submitted,
ge carborough
M nager
Attachments: Proposed Resolution
Woodruff, Spradlin & Smart Letter
LAwOFFICES OF
WOODRUFF, SPRADLIN & SMART
A PROFESSIONALCORPORATION
701 SOUTH PARKER STREET,SUITE BOOP} ■ORANGE.CA 92868.4760■ (714)558-7000 a FAX(714)835-7787
OtRECT DIAL: 1714)584-2608
DIRECT FAX: (714)585-2508
E-&WIL: KRS®WSS-AW.c0M
May 15, 2001
Mr. George C. Scarborough
City Manager
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear ML.-Soarborough:
As you know, this firm has a policy of annually reviewing our incurred cost for
providing legal services to our clients, so as to establish a fair and equitable
compensation rate. In addition to evaluating our costs, we are always keeping in mind
the need for our-public agency clients, in particular, to control expenditures.
It has now been over four years (February, 1997) since we have had an
adjustment in the rate structure and, at this time, we find it necessary to move the
present rates by the amount of $95.00 to $160.00 per hour for attorneys and by $10.00
per hour to $85.00 per hour for paralegals, effective July 1, 2001. This is a 10.3%
increase and is less than the cost-of-living increase, as measured by the Consumer
Price Index, which has been 11% since the last adjustment. While our actual
expenditures for rent, salary, supplies and communications have exceeded that, we
believe we will be able to control our own operational expenses so as to avoid the need
for a•higher rate than requested.
Thank you very much for your continued assistance and support.
Sincerely,
WOODRUFF, SPRADLIN & SMART
A Professional Corporation
KE NARD R. SMART, JR.
President
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RESOLUTION NO. 02-05-07-0 (a
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO,CALIFORNIA, IMPLEMENTING AN ADJUSTMENT TO THE
RATE SCHEDULE FOR CITY ATTORNEY SERVICES U(2COOIL(I#,
WHEREAS, the City Council of the City of San Juan Capistrano wishes to
implement an adjustment to the rate schedule for City Attorney services provided by the
law firm of Woodruff, Spradlin and Smart; and,
WHEREAS, it is expressly permitted in the existing agreement that such adjustment
may be made by Resolution; and,
WHEREAS, it is the duty of the City Council to ensure that the City and the District
have access to required legal services in connection with the City's operation as a general
law city.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Juan Capistrano, does hereby implement an adjustment to the rate schedule for City
Attorney services provided by the law firm of Woodruff, Spradlin and Smart, as outlined in
"Exhibit A."
PASSED, APPROVED, AND ADOPTED this 7" day of May 2002.
"A,
DIANE BATHGATE, AY R
ATTEST:
IM rg ret R. Monahan, City Clerk
EXHIBIT "A"
WOODRUFF SPRADLIN AND SMART HOURLY RATES
$160.00 All Attorney Services
$ 85.00 Paralegal and Law Clerks
The time for legal services is billed in minimum increments of .2 hours.
STATE OF CALIFORNIA }
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO }
I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do
hereby certify that the foregoing Resolution No. 02-05-07-04 was duly adopted by the City
Council of the City of San Juan Capistrano at a regular meeting thereof, held the 7th day of
May 2002, by the following vote:
AYES, COUNCIL MEMBERS: Hart, Campbell, Swerdlin, Gelff and Mayor Bathgate
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL ME BERS: None
C�
M RET R. MONAHAN, City Clerk
i
R 02-05-07-04 3