ADMINISTRATIVE REPORT
MEETING DATE: May 28, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jena Covey, Risk Manager
DATE: May 28, 2025
SUBJECT: Attorney Services Workers’ Compensation Defense
1. Agreement with Hanna, Brophy, Maclean, McAleer & Jensen (not to exceed $1,425,000) to perform legal services
2. Agreement with Yrulegui & Roberts (not to exceed $625,000) to perform legal services
RECOMMENDATION:
Staff recommends approval of the agreements.
BACKGROUND:
The City’s contract with Yrulegui & Roberts and Hanna, Brophy, MacLean, McAleer & Jensen, LLP (Hanna Brophy) for workers’ compensation defense, and subrogation services, expires on June 30, 2025. In February 2025, a Request for Proposal was issued and the City received nine (9) proposals from interested law firms. After a thorough review of the proposals submitted, staff are recommending to enter into an agreement with two law firms, Hanna Brophy and Yrulegui & Roberts for a five year period.
Since March 2004, the City has maintained an agreement with Hanna Brophy to provide legal de fense services for the City’s workers’ compensation claims program. As Hanna Brophy specializes in the defense of workers’ compensation claims, they provide a high level of expertise for which the City does not have attorneys on staff to perform such services. Yrulegui & Roberts provides a high level of expertise in both workers’ compensation defense services and comprehensive subrogation services, which is a service not provided through Hanna Brophy, which is why the City needs to maintain retainer agreem ents with two firms to provide the needed capacity to support the workers’ compensation program.
Hanna Brophy has increased their hourly base rate by a marginal amount since 2004 going from $135 to $155, and their offices are located in the same building as the Bakersfield Workers’ Compensation Appeals Board, therefore we do not incur mileage charges for their court appearances. They do charge higher fees for some of their other services depending on the severity of the issues being litigated on a claim. Yrulegui & Roberts are also located in Bakersfield and will not charge for local travel expenses, and fees are an hourly rate of $185 for all defense services. The hourly rates foe these firms are lucrative and City staff is recommending to contract for a five (5) year term to secure the rates to control litigation costs for the workers’ compensation program.
FISCAL IMPACT:
Due to proposed pricing and the high level of expertise from Hanna Brophy and Yrulegui & Roberts, staff recommends approval of the agreement with Hanna Brophy in an amount not to exceed $275,000 for the first year, $280,000 for the second year, $285,000 for the third year, $290,000 for the fourth year, and $295,000 for the fifth year, for a f ive (5) year period not to exceed $1,425,000; and the agreement with Yrulegui & Roberts not to exceed $125,000 annually for a five (5) year period not to exceed $625,000.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
1. Hanna Brophy RFP
2. Yrulegui Roberts RFP
3. Agreement – Hanna Brophy
4. Agreement – Yrulegui Roberts