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WOODRUFF, SPRADLIN / SMARTRETAINER AGREEMENT FOR WATER DISTRICT COUNSEL SERVICES THIS AGREEMENT is made and entered into as of the 4th day of February, 1997, by and between the CAPISTRANO VALLEY WATER DISTRICT, a municipal corporation, hereinafter the "District", and WOODRUFF, SPRADLIN & SMART, a professional corporation, hereinafter the "Attorneys". NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: The District hereby retains and employs Attorneys to provide legal services required to be performed by the District Counsel of the Capistrano Valley Water District. In this regard, John R Shaw is designated as District Counsel. He will perform the services of District Counsel assisted by other attorneys in the firm of Attorneys, some of whom may, from time to time, be designated by the District Board of Directors ("District Board") as Assistant and Deputy District Counsel. 2. ,Saone of Duties. The District retains and employs the Attorneys to provide legal services required in connection with District's operation as a water district. Attorneys shall provide those legal services reasonably required to advise and represent the District and shall take reasonable steps to keep the District informed of the progress of the representation and to respond to the inquiries of members of the District Board of Directors and District staff regarding the status of matters for which Attorneys are representing the District or where advice has been sought. 4wpw 60\wpdoc \shaw4¢ta ffmd -1- 02/20/97 following: 0 0 A. It is understood that the legal services shall include, but are not limited to, the (i) The preparation of ordinances, resolutions, orders, agreements, forms, notices, declarations, certificates and other documents; (ii) Attendance at all meetings of the District Board and attending all other meetings of District boards, commissions, and committees when so requested by the District Board or the District General Manager; (iii) Rendering legal advice and opinions concerning legal matters that affect the District, including new legislation and court decisions; (iv) Representing the District in litigation involving the District, as authorized and directed by the District Board. Attorneys understand and agree that the District Board shall determine which outside counsel are used to represent the District in civil litigation; and (v) Providing all other legal services required as District Counsel. B. The legal services to be performed by Attorneys pursuant to this Agreement shall not include serving as bond counsel for municipal financing matters. C. Through the District General Manager, the District shall cooperate with Attorneys and keep Attorneys informed of developments that pertain to Attorneys' representation of the District and providing services pursuant to this Agreement. c:\wpwinWwpdoc \shaw\rdainwmd -2- 02/20/97 0 0 3. Fees, Costs and Expenses, A. District agrees to pay Attorneys at the hourly rates set forth on Exhibit "A", attached hereto and incorporated herein by this reference. Exhibit "A" may be changed from time to time without otherwise amending this agreement by a Resolution or Minute Order adopted by the District Board at a regular meeting. B. District agrees to pay the following out-of-pocket costs and expenses associated with Attorneys' work pursuant to this Agreement: messenger deliveries; copying in excess of 25 pages; long-distance telephone calls; process servers' fees; filing fees fixed by law or assessed by the courts and other agencies; computer-assisted research of Federal cases, Federal statutes and regulations; deposition and other court reporting fees; jury fees, witness fees; costs to obtain copies of documents in litigation, and other litigation -related costs and expenses as may be required to adequately represent District, such as transportation, mileage, meals and lodging associated with out- of-town depositions or appearances. C. To aid in the preparation or presentation of litigation, it may become necessary to hire expert witnesses, consultants or investigators. Attorneys will select any expert witnesses, consultants or investigators to be hired, but shall receive District Board or District General Manager approval of the fees and charges prior to any such engagement. 4. Statements/Task-Billing. Attorneys shall prepare and present detailed monthly statements for services rendered to the District for the month preceding the statement, indicating each discrete task performed by Attorneys. District shall pay the statements upon presentation or within a reasonable time thereafter. cAwpwin60\wpdocs\s6aw\rdmna.wd -3- 02/20/97 9 0 A. Attorneys shall serve under the terms of this Agreement at the pleasure of the District Board, and the District Board hereby reserves the right to terminate this Agreement upon providing sixty (60) days' written notice to the Attorneys. B. Attorneys reserve the right to temrinate this Agreement at any time Attorneys deem it necessary or advisable to do so upon sixty (60) days' written notice to District. C. When Attorneys' services are terminated, all unpaid charges shall become immediately due and payable. 6. Entire Agreement, This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter hereof, and contains all covenants and agreements between the parties with respect to such matter. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date indicated in the preamble to this Agreement. "District" CAPISTRANO,VALLE,Y ,ATERDISTRICT Chairffia—n "Attorneys" 10 John R. Director SPRADLIN & SMART c:\wpwin60\wpdocs\shaw¢elainer.wd -4- 02/20/97 EXHIBIT "A" WOODRUFF, SP AD -IN & SMART HOURLY RATES $145.00 All Attorney Services, Including Litigation $ 75.00 Paralegal and Law Clerks $ 35.00 Messenger - direct costs incurred The time for legal services is billed in minimum increments of .2 hours. c:\wpwin60\wpdms\shaw\refainer.wd -5- 02/20/97