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05-0920_WOODRUFF, SPRADLIN & SMART_D12_Agenda Report 9/20/2005 D12 AGENDA REPORT TO: Honorable Mayor and City Council Members FROM: Dave Adams, City Manager 9'01- SUBJECT: SUBJECT: Consideration of Rate Adjustment for City Attorney Services RECOMMENDATION: By motion, adopt the attached resolution adjusting rate structure for City Attorney services. BACKGROUND: In 1997, the City retained the law firm of Woodruff, Spradlin and Smart to provide contract City Attorney services. The current hourly rate for services is $160 per hour and $85 per hour for paralegal services. This rate was set in 2001 and has not been adjusted since then. We have received the attached letter dated September 13, 2005 from the firm's managing partner Ken Smart indicating that the firm now proposes a $15 increase to $175 per hour. As the letter indicates, the consumer price index since 2001 has increased cumulatively by 13%, whereas the $15 per hour increase amounts to a 9.4%. The hourly rate for paralegals would increase by $10 to $95 per hour. In addition, the firm is requesting that firm rates be adjusted each year, effective July 1, based on the percentage increase in the cost of living for the previous year. We find that the proposed increase is fair particularly in light of the fact that the firm has not requested any rate increase since 2001. Therefore, it is recommended that the City Council adopt the attached resolution. FINANCIAL CONSIDERATIONS: Sufficient funds have been budgeted for the current fiscal year to cover the proposed rate increase. Agenda Report September 20, 2005 Page Two RECOMMENDATION: By motion, adopt the attached resolution adjusting rate structure for City Attorney services. Respectfully submitted, Dave Adams City Manager DA:sc Attachments: 1. Woodruff, Spradlin, Smart Letter 2. Resolution SEP-13-2005 TUE 1019 AM W� 'r u f f Sprad l i n Smart FAX N0. X 835 7787 P. 02 LAw OFFICeS nF WOODRUFF, SPRADLKN & SMART A PnflFC SMUNAI,CoRP{1RATIUN 701 SOUTH PARK61t STP GET.SUITE NOW N ORANGE.CA 92969-4760■(714)SSS+-7000■ FAX(714)8]5.7787 OrRECT MAL: (7141504-2506 DIRECT FAX! (Ila)565.2508 E-MAIL: KRS@WSS•LAW.COM September 13, 2005 Mr. Dave Adams City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Mr. Adams, Our firm has a policy of annually reviewing our costs for providing legal services to our clients, so as to establish fair and equitable fees. 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(July 1, 2001) since we have had an adjustment in the fee structure and, at this time, we find it necessary to move the present fees by the amount of $15.00 to $175.00 per hour for attorneys and by $10.00 to $95.00 per hour for paralegals, effective November 1. 2005. This is a 9.4% adjustment and is less than the cost-of-living increase, as measured by the Consumer Price Index, which has been 13% since the last adjustment. While our actual expenditures for rent, salaries, supplies and communications have exceeded that percentage increase, we believe we will be able to control our operational expenses so as to avoid the need for higher fees than requested. We also desire to adjust our fees each year, effective July 1, based on the percentage increase in the cost of living for the previous year. This will benefit the City in providing known and measurable adjustments. Thank you very much for your continued assistance and support. Sincerely, WOODRUFF, SPRADLIN S SMART A Professional Corporation KENNARD R. SMART, JR. President 2077%; TERRYC.ANIIRUS■STEPIIEN.I.BrATON 0 M,ION BOBAK r CAROLNEA.14YI1NE■KIM 1'.DAWLEY PATRICK M.DISM(IND N)AMPS K 00NICH■JAMES H,EGGART O RA0112.1.1-L•NiOS M CRAI(:G FARRINGTUN J09EPI1 W.r0RUA114■BRARIJ,Y rL 110GIN rI I)nLJGLASC.IIULLAND r IDIS E JUTRriY N DAVID r KUNOIG ATTACHMENT 1 JJOBERTAA.ILILAuS■MAGDAI.1,NA LJONA-WIAN1'M MARKM,MONAC1RNo P IAURA A MORGAN■TI10MAS F NC RARS&RA RA1I.F1%TRJ I1 JASON C,RGTTEWt 0 UMAR SAN11nVAL a J01 IN It SHAW n(IREWRY B.SIMONIAN KENNAltV It SMART.JR N IJANIEL 1C SPHAI)UN 0 CINI IY R S rA1TI:I EACH N T[10M AS L WOODRUFF RESOLUTION NO. 02-05-07-0 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO,CALIFORNIA,IMPLEMENTING AN ADJUSTMENTT�T RATE SCHEDULE FOR CITY ATTORNEY SERVICES (UXOO -L, r 610k 7,©Z-1N A1(J,0 5197?1'W7-) 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 Attomey services provided by the law firm of Woodruff, Spradlin and Smart, as outlined in t "Exhibit A." PASSED, APPROVED, AND ADOPTED this 7'day of May 2002. DIANE BATHGATE, AY R ATTEST: v JMrg 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 Cf M RET R. MONAHAN, City Clerk R 02-05-07-04 3