Cities Index.
06. Approval of Legal Services Agreements for General Civil Litigation Services

Downey City Council
June 24, 2025

Document
06. Approval of Legal Services Agreements for General Civil Litigation Services
Meeting
June 24, 2025
Body
Downey City Council
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4
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Text extracted from the city's file for reading and search. Open the original on lf.downeyca.org. That file is the official record.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JOHN M. FUNK, CITY ATTORNEY
DATE: JUNE 24, 2025
SUBJECT: APPROVAL OF LEGAL SERVICES AGREEMENTS WITH CARPENTER,

ROTHANS & DUMONT, LYNBERG & WATKINS, AND LAWRENCE,

BEACH, ALLEN & CHOI

EXECUTIVE SUMMARY
The City Council will consider the approval of updated Legal Services Agreements between the City of Downey and the following three law firms: Carpenter, Rothans & Dumont; Lynberg & Watkins; and Lawrence, Beach, Allen & Choi. The City utilizes all these firms for general civil litigation services. The current agreements date back to 2014, and the proposed new agreements will serve to adjust the billing rates within existing parameters established by the Independent Cities Risk Management Authority, Downey's pooled insurance carrier.
14 : [0161�,ITilt rL 0 _ tro
That the City Council:

1. Approve the Legal Services Agreement between the City of Downey and Carpenter, Rothans & Dumont;

2. Approve the Legal Services Agreement between the City of Downey and Lynberg & Watkins;

3. Approve the Legal Services Agreement between the City of Downey and Lawrence, Beach, Allen & Choi; and,

4. Authorize the City Manager to execute the above agreements.

BACKGROUND
The City of Downey is a member of the Independent Cities Risk Management Authority (ICRMA), a joint powers agency made up of 14 cities located in Los Angeles and Orange Counties. ICRMA was formed to allow member cities to pool and manage their risk and to purchase liability insurance policies at more favorable rates. ICRMA also provides

APPROVAL OF LEGAL SERVICES AGREEMENTS
JUNE 24, 2025
PAGE 2
member cities with resources on managing risk by offering training opportunities and helpful written materials for managers and supervisors.

Members of ICRMA are permitted to manage their own litigation defense matters. To assist cities in this endeavor, ICRMA maintains guidelines in its "Litigation Management Policies and Procedures" (the "ICRMA Policy"). Some important aspects of the Policy are:
• Requiring legal firms to sign an agreement to comply with the Policy; • Establishing a ceiling in the hourly rates firms can charge member cities in certain types of litigation matters;
• Requiring firms to provide a case analysis within the first 60 days of the firm's retention as defense counsel on a matter; and
• Requiring firms to provide a litigation budget within the first 60 days of the firm's retention as defense counsel on a matter.

For general civil litigation defense, the City primarily utilizes the law firms of Lawrence, Beach, Allen & Choi, Lynberg & Watkins, and Carpenter, Rothans & Dumont, all of which adhere to the ICRMA Policy. Collectively, these firms handle personal injury, property damage, police defense, and other specialty matters on behalf of the City. Their work is overseen on a day-to-day basis by the City Attorney's Office.

The City was recently approached by the firms with a request to increase the existing rates due to the rising costs of doing business. The firms stated that their costs have increased over the past few years, relative among other things to the cost of recruiting and retaining municipal lawyers. The most recent rate increases with the firms were adopted in 2022 and 2023.

Legal services are billed by the hour, or increments thereof. The current hourly rates for the firms are as follows:
*Carpenter, Rothans & Dumont:$220 for Partners, $175 for Associates, and $110 for Law Clerks/Paralegals;
•Lynberg and Watkins: $195 for Partners, $165 for Associates, and $100 for Law/Clerks/Paralegals; and
• Lawrence, Beach, Allen & Choi: $250 for Partners and Associates (this is a single blended rate) and $90 for Law/Clerks/Paralegals.

Effective July 1, 2025, the proposed new hourly rates are the following:
• For Carpenter, Rothans & Dumont and Lynberg and Watkins, $260 for Partners, $210 for Associates, and $115 for Law Clerks/Paralegals; • Lawrence, Beach, Allen & Choi, a blended rate of $275 for all attorneys and $115 for Law Clerks/Paralegals.

APPROVAL OF LEGAL SERVICES AGREEMENTS
JUNE 24, 2025
PAGE 3
For employment practice and civil rights matters, rates for these firms are slightly higher but still within the parameters of the ICRMA Policy.

DISCUSSION
The City Attorney's Office has reviewed the proposed rate increases and found them consistent with industry standards for the provision of legal services to municipalities.

Additionally, the proposed rates are all at or below the ceiling rates established by ICRMA.

Finally, the City has established a robust partnership with these firms, enabling strong and prudent legal outcomes. Each of these firms services public agencies as the main function of their practice, and they each possess the requisite skill and expertise.

Measured against standard legal rates for private sector clients, these rates are quite reasonable.

The City Attorney's Office has prepared a legal services agreement for these three firms that includes the tiered rate structures shown above and incorporates by reference the provisions and requirements of the ICRMA Policy. Each agreement is attached as Attachments A, B, and C.

CITY COUNCIL PRIORITIES
Efficiency and Adaptability
Fiscal Responsibility

FISCAL IMPACT
Approval of the recommended action will result in an expenditure to the Citywide liability fund for tort litigation in account number 76-4-1510-0471. There is sufficient funding for the recommended actions in the Fiscal Year 2025-2026 Proposed Budget.

ATTACHMENTS
Attachment A: Legal Services Agreement with Carpenter, Rothans & Dumont Attachment B: Legal Services Agreement with Lynberg & Watkins Attachment C: Legal Services Agreement with Lawrence, Beach, Allen & Choi

LEGAL SERVICES AGREEMENT
THIS LEGAL SERVICES AGREEMENT ("Agreement") is entered into this 24th day of June, 2025, by and between the CITY OF DOWNEY, a California municipal corporation and charter city (hereinafter referred to as City) with its principal place of business at 11111 Brookshire Avenue, Downey, CA 90241 and CARPENTER, ROTHANS & DUMONT, a California General Partnership (hereinafter referred to as the "Firm") with its principal place of business at 500 South Grand Avenue, 191 Floor, Los Angeles, CA 90071, collectively referred to as the "Parties".

NOW, THEREFORE, the parties hereto do hereby mutually agree as follows:

Section 1, Scope of Engagement.

Firm will represent City and its employees in civil litigation matters and such legal matters as may be assigned to the Firm by City, Firm's representation will continue under the terms of this Agreement up to and through trial, settlement, arbitration, dismissal, judgment or any other final resolution of the case. The scope of Firm's engagement will not include issues pertaining to any other matter, post judgment motions, appeals, or any other post judgment issues, unless approved by both Parties.

Section 2. Legal Fees, Billing Procedures_
Professional time is billed in increments of 1110th of an hour, Block billing will not be accepted. Legal services should be adequately described as follows:
• Date the services were rendered;
• Description of services;
• Identity of the person(s) rendering the services described; • Rate at which the person(s) rendering the services is billed out; • Amount of time expended by each person for the services described; • Calculated for that particular Milling entry; and
• The total amount paid to date.

The Firm's charges for legal services are based on the following hourly rates:

1. General Civil Litigation: $260 per hour for Partners; $210 per hour for Associates; $115 Law Clerks/Paralegals.

2. Civil Rights & Employment Practices Litigation., $275 per hour for Partners; $200 per hour for Associates; $115 Law ClerkslParalegals.

These rates shall apply on new and existing matters effective July 1, 2025. Firm agrees to follow any litigation management policies and procedures of City or its Risk Pool, a copy of which shall be provided to Firm.

Firm shall submit to City an invoice which shall itemize the services rendered and the costs advanced during the billing period and the amount due. Within fifteen 0 5) business days of receipt of each invoice, City shall notify Firm in writing of any disputed amounts included on the invoice.

Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other deductions from

Page 1 of 4 ends

payments made to Firm.

Section 3. Costs and Expenses.

Firm may incur certain costs and expenses on City's behalf. Firm will obtain consent before incurring any cost in excess of $150. Firm shall include the actual amount (without mark-up) for costs and expenses on the City's billing invoice. The costs and expenses that Firm will bill City for include, but are not limited to process server fees, fees fixed by law or assessed by courts or other agencies, court reporters' fees, long distance calls, messenger and other delivery fees, postage, parking, investigation expenses, and expert witness fees. Mileage shall be billed at the IRS approved rate and in -office photocopying and facsimiles shall be billed at no more than .10 cents per page, and other similar items. City shall not pay for expenses such as staff overtime, word processing, special publications or attendance at continuing legal education seminars.

Section 4, General Responsibilities of Attorney and Client.

Firm will provide services of the type described above, and will keep City informed of the progress and timely respond to City's inquiries. City will provide Firm with such factual information and materials as Firm may require to perform the services, and Firm will make such professional or technical decisions and determinations as are appropriate for the matter.

Section 5. Discharge and Withdrawal.

City may discharge Firm at any time for any reason. In addition, it is understood that Firm may terminate its legal services and withdraw from this engagement with City's consent or for good cause. Good cause includes any breach of this Agreement, failure to pay Firm's fees and other charges promptly, refusal to cooperate with Firm or refusal to follow Firm's advice on a material matter or any other fact or circumstance that would render Firm's continuing representation unlawful or unethical.

In the event Firm's engagement is terminated for any reason, City will continue to be obligated for Firm's services and other charges incurred before the termination date.

Section 6. Insurance.

Firm shall maintain the following insurance coverage:
a. Workers' Compensation Coverage. Firm shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California.
b. General Liability Coverage. Firm shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage.
c. Automobile Liability Coverage_ Firm shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Firm arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non -owned vehicles, in an amount of not less than two million dollars ($2,000,000) combined single limit for each occurrence.

Page 2 of 4 ends

d. Professional Liability Coverage. Firm shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Firm's services under this Agreement, whether such services be by the Firm or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than two million dollars ($2,000,000) on a claims -made annual aggregate basis, or a combined single -limit per occurrence basis.
e. Policy Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language:
i. The City of Downey, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Firm, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self -insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.

V. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
f. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City. At the City's option, Firm shall demonstrate financial capability for payment of such deductibles or self -insured retentions. g. Certificates of Insurance and Endorsements. Firm shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

Section 7. Arbitration.

In any dispute arising out of, or related to, this Agreement shall be resolved by binding arbitration by an arbitrator mutually agreed upon by the Parties. In the event the Parties cannot agree, each Party shall choose an arbitrator, and those two arbitrators shall then select a single neutral arbitrator who will hear the dispute. Discovery for this binding arbitration shall be limited to that which is allowed in California Courts of limited jurisdiction, including all rights and remedies thereunder. The arbitration shall take place in the County of Los Angeles, unless otherwise agreed

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upon in writing. Each Party shall bear its own attorneys' fees and costs.

Section 8. Survival.

In the event that any provision of this Agreement is deemed to be illegal or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which shall remain in full force and effect.

Section 9. Client Documents.

Firm will maintain all documents City furnishes to Firm in its client files maintained for the matter. At the conclusion of the matter (or earlier, if appropriate), City shall advise Firm as to which, if any, of the documents in Firm's file City wishes be returned to City. Firm may keep copies thereof to the extent necessary for Firm's records.

Section 10. Assignment.

Firm may not assign, transfer, convey, pledge nor otherwise dispose of its rights or obligations hereunder, without prior written consent of City.

Section 11. Entire Agreement.

This Agreement constitutes the entire agreement between the Parties concerning the engagement described in paragraph 2. It supersedes all prior agreements and understandings, written or oral, and no representation by the Parties, written or oral, are binding unless expressly stated in this Agreement. This Agreement may be modified only in a writing signed by all Parties to this Agreement
IN WITNESS WHEREOF, this Agreement has been duly authorized and executed by the Parties hereto on the day and year first herein above written. "CITY": City of Downey
By:

Name: Roger Bradley
Title: City Manager
ATTEST:

M. Alicia Duarte, CMC
City Clerk
APPROVED AS TO FORM:

John M. Funk
City Attorney
"FIRM": Carpenter, Rothans & Dumont
By:

Name: Leven J. othans
Title: Managing Partner

Page 4 of 4 ends

1 1 �

LEGAL SERVICES AGREEMENT
THIS LEGAL SERVICES AGREEMENT ("Agreement") is entered into this 24th day of June, 2025, by and between the CITY OF DOWNEY, a California municipal corporation and charter city (hereinafter referred to as "City") with its principal place of business at 11111 Brookshire Avenue, Downey, CA 90241 and LYNBERG & WATKINS, a California Professional Corporation (hereinafter referred to as the "Firm") with its principal place of business at 1150 S. Olive Street, 181h Floor, Los Angeles, CA 90015, collectively referred to as the "Parties".

NOW, THEREFORE, the parties hereto do hereby mutually agree as follows:

Section 1. Scope of Engagement.

Firm will represent City and its employees in civil litigation matters and such legal matters as may be assigned to the Firm by City. Firm's representation will continue under the terms of this Agreement up to and through trial, settlement, arbitration, dismissal, judgment or any other final resolution of the case. The scope of Firm's engagement will not include issues pertaining to any other matter, post judgment motions, appeals, or any other post judgment issues, unless approved by both Parties.

Section 2. Legal Fees Billing Procedures.

Professional time is billed in increments of 1110th of an hour. Block billing will not be accepted. Legal services should be adequately described as follows:
• Date the services were rendered;
• Description of services;
• Identity of the person(s) rendering the services described; Rate at which the person(s) rendering the services is billed out; • Amount of time expended by each person for the services described; • Calculated for that particular billing entry; and
• The total amount paid to date.

The Firm's charges for legal services are based on the following hourly rates:

1. General Civil Litigation: $260 per hour for Partners; $210 per hour for Associates; $115 Law Clerks/Paralegals,

2. Civil Rights & Employment Practices Litigation: $275 per hour for Partners; $200 per hour for Associates; $115 Law Clerks/Paralegals.

These rates shall apply on new and existing matters effective July 1, 2025. Firm agrees to follow any litigation management policies and procedures of City or its Risk Pool, a copy of which shall be provided to Firm.

Firm shall submit to City an invoice which shall itemize the services rendered and the costs advanced during the billing period and the amount due. Within fifteen (15) business days of receipt of each invoice, City shall notify Firm in writing of any disputed amounts included on the invoice.

Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other deductions from payments made to Firm.

Page 1 of 4 ends

Section 3. Costs and Expenses.

Firm may incur certain costs and expenses on City's behalf. Firm will obtain consent before incurring any cost in excess of $150. Firm shall include the actual amount (without mark-up) for costs and expenses on the City's billing invoice. The costs and expenses that Firm will bill City for include, but are not limited to process server fees, fees fixed by law or assessed by courts or other agencies, court reporters' fees, long distance calls, messenger and other delivery fees, postage, parking, investigation expenses, and expert witness fees. Mileage shall be billed at the IRS approved rate and in -office photocopying and facsimiles shall be billed at no more than .10 cents per page, and other similar items. City shall not pay for expenses such as staff overtime, word processing, special publications or attendance at continuing legal education seminars.

Section 4. General Responsibilities of Attorney and Client.

Firm will provide services of the type described above, and will keep City informed of the progress and timely respond to City's inquiries. City will provide Firm with such factual information and materials as Firm may require to perform the services, and Firm will make such professional or technical decisions and determinations as are appropriate for the matter.

Section 5. Discharge and Withdrawal.

City may discharge Firm at any time for any reason. In addition, it is understood that Firm may terminate its legal services and withdraw from this engagement with City's consent or for good cause. Good cause includes any breach of this Agreement, failure to pay Firm's fees and other charges promptly, refusal to cooperate with Firm or refusal to follow Firm's advice on a material matter or any other fact or circumstance that would render Firm's continuing representation unlawful or unethical.

In the event Firm's engagement is terminated for any reason, City will continue to be obligated for Firm's services and other charges incurred before the termination date.

Section 6. Insurance.

Firm shall maintain the following insurance coverage:
a. Workers' Compensation Coverage. Firm shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California.
b. General Liability Coverage. Firm shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage.

C. Automobile Liability Coverage. Firm shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Firm arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non -owned vehicles, in an amount of not less than two million dollars ($2,000,000) combined single limit for each occurrence.
d. Professional Liability Coverage. Firm shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or

Page 2 of 4 ends

omissions which may arise from Firm's services under this Agreement, whether such services be by the Firm or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than two million dollars ($2,000,000) on a claims -made annual aggregate basis, or a combined single -limit per occurrence basis. e. Policy Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language:
i. The City of Downey, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Firm, including materials, parts or equipment furnished in connection with such work or operations.

H. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self -insured retention the City may have, shall be considered excess insurance only and shall not contribute with it.

III. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.

IV. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.

V. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
f. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City. At the City's option, Firm shall demonstrate financial capability for payment of such deductibles or self -insured retentions. g. Certificates of Insurance and Endorsements. Firm shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

Section 7. Arbitration.

In any dispute arising out of, or related to, this Agreement shall be resolved by binding arbitration by an arbitrator mutually agreed upon by the Parties. In the event the Parties cannot agree, each Party shall choose an arbitrator, and those two arbitrators shall then select a single neutral arbitrator who will hear the dispute. Discovery for this binding arbitration shall be limited to that which is allowed in California Courts of limited jurisdiction, including all rights and remedies thereunder. The arbitration shall take place in the County of Los Angeles, unless otherwise agreed upon in writing. Each Party shall bear its own attorneys' fees and costs.

Page 3 of 4 ends

Section 8. Survival.

In the event that any provision of this Agreement is deemed to be illegal or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which shall remain in full force and effect.

Section 9. Client Documents.

Firm will maintain all documents City furnishes to Firm in its client files maintained for the matter. At the conclusion of the matter (or earlier, if appropriate), City shall advise Firm as to which, if any, of the documents in Firm's file City wishes be returned to City. Firm may keep copies thereof to the extent necessary for Firm's records.

Section 10, Assignment.

Firm may not assign, transfer, convey, pledge nor otherwise dispose of its rights or obligations hereunder, without prior written consent of City.

Section 11. Entire Agreement.

This Agreement constitutes the entire agreement between the Parties concerning the engagement described in paragraph 2. It supersedes all prior agreements and understandings, written or oral, and no representation by the Parties, written or oral, are binding unless expressly stated in this Agreement. This Agreement may be modified only in a writing signed by all Parties to this Agreement
IN WITNESS WHEREOF, this Agreement has been duly authorized and executed by the Parties hereto on the day and year first herein above written. "CITY": City of Downey
By:

Name: Roger Bradley
Title: City Manager
ATTEST:

M. Alicia Duarte, CMC
City Clerk
APPROVED AS TO FORM:

John M.Funk
City Attorney
"FIRM": Lynberg & Watkins
By;
-) Z�LLI-
S. Frank Harrell
Title: Managing Partner

Page 4 of 4 ends

LEGAL SERVICES AGREEMENT
THIS LEGAL SERVICES AGREEMENT ("Agreement") is entered into this 24"' day of June, 2025, by and between the CITY OF DOWNEY, a California municipal corporation and charter city (hereinafter referred to as "City") with its principal place of business at 11111 Brookshire Avenue, Downey, CA 90241 and LAWRENCE, BEACH, ALLEN & CHOI, a California Professional Corporation (hereinafter referred to as the "Firm") with its principal place of business at 150 South Los Robles Avenue, Suite 660, Pasadena, CA 91101, collectively referred to as the "Parties".

NOW, THEREFORE, the Parties hereto do hereby mutually agree as follows:

Section 1. Scope of Engagement.

Firm will represent City and its employees in civil litigation matters and such legal matters as may be assigned to the Firm by City. Firm's representation will continue under the terms of this Agreement up to and through trial, settlement, arbitration, dismissal, judgment or any other final resolution of the case. The scope of Firm's engagement will not include issues pertaining to any other matter, post judgment motions, appeals, or any other post judgment issues, unless approved by both Parties.

Section 2. Legal Fees, Billing Procedures.

Professional time is billed in increments of 1/10th of an hour. Block billing will not be accepted. Legal services should be adequately described as follows:
• Date the services were rendered;
• Description of services;
• Identity of the person(s) rendering the services described; • Rate at which the person(s) rendering the services is billed out; • Amount of time expended by each person for the services described; • Calculated for that particular billing entry; and
• The total amount paid to date.

The Firm's charges for legal services are based on the following hourly rates:

1. General Civil Litigation: $275 per hour for all attorneys (blended rate); $115 per hour for Law Clerks/Paralegals,

2. Civil Rights & Employment Practices Litigation: $275 per hour for all attorneys (blended rate); $115 per hour for Law Clerks/Paralegals.

These rates shall apply on new and existing matters effective July 1, 2025. Firm agrees to follow any litigation management policies and procedures of City or its Risk Pool, a copy of which shall be provided to Firm.

Firm shall submit to City an invoice which shall itemize the services rendered and the costs advanced during the billing period and the amount due. Within fifteen (15) business days of receipt of each invoice, City shall notify Firm in writing of any disputed amounts included on the invoice.

Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other deductions from payments made to Firm.

Page 1 of 4 ends

Section 3. Costs and Expenses.

Firm may incur certain costs and expenses on City's behalf. Firm will obtain consent before incurring any cost in excess of $150. Firm shall include the actual amount (without mark-up) for costs and expenses on the City's billing invoice. The costs and expenses that Firm will bill City for include, but are not limited to process server fees, fees fixed by law or assessed by courts or other agencies, court reporters' fees, long distance calls, messenger and other delivery fees, postage, parking, investigation expenses, and expert witness fees. Mileage shall be billed at the IRS approved rate and in -office photocopying and facsimiles shall be billed at no more than .10 cents per page, and other similar items. City shall not pay for expenses such as staff overtime, word processing, special publications or attendance at continuing legal education seminars.

Section 4, General Responsibilities of Attorney and Client.

Firm will provide services of the type described above, and will keep City informed of the Progress and timely respond to City's inquiries. City will provide Firm with such factual information and materials as Firm may require to perform the services, and Firm will make such professional or technical decisions and determinations as are appropriate for the matter.

Section 5. Discharge and Withdrawal.

City may discharge Firm at any time for any reason. In addition, it is understood that Firm may terminate its legal services and withdraw from this engagement with City's consent or upon at least ninety (90) days' written notice to City.

In the event Firm's engagement is terminated for any reason, City will continue to be obligated for Finn's services and other charges incurred before the termination date.

Section 6. Insurance.

Firm shall maintain the following insurance coverage:
a. Workers' Compensation Coverage. Firm shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California.
b. General Liability Coverage. Firm shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage.

C. Automobile Liability Coverage. Firm shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Firm arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non -owned vehicles, in an amount of not less than two million dollars ($2.000,000) combined single limit for each occurrence.
d. Professional Liability Coverage. Firm shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Firm's services under this Agreement, whether such services be by the Firm or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than two million dollars ($2,000,000) on a claims -made annual aggregate basis, Wage 2 of 4

or a combined single -limit per occurrence basis.
e. Policy Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than ANN and shall be endorsed with the following specific language.
i. The City of Downey, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Firm, including materials, parts or equipment furnished in connection with such work or operations.

H. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self -insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.

V. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
f. Deductibles and Self -insured Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City. At the City's option, Firm shall demonstrate financial capability for payment of such deductibles or self -insured retentions. g. Certificates of Insurance and Endorsements. Firm shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

Section 7. Arbitration.

In any dispute arising out of, or related to, this Agreement shall be resolved by binding arbitration by an arbitrator mutually agreed upon by the Parties. In the event the Parties cannot agree, each Party shall choose an arbitrator, and those two arbitrators shall then select a single neutral arbitrator who will hear the dispute. Discovery for this binding arbitration shall be limited to that which is allowed in California Courts of limited jurisdiction, including all rights and remedies thereunder. The arbitration shall take place in the County of Los Angeles, unless otherwise agreed upon in writing. Each Party shall bear its own attomeys' fees and costs.

Section 8. Survival.

In the event that any provision of this Agreement is deemed to be illegal or unenforceable,

Page 3 of 4 ends

such determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which shall remain in full force and effect.

Section 9. Client Documents.

Firm will maintain all documents City furnishes to Firm in its client files maintained for the matter. At the conclusion of the matter (or earlier, if appropriate), City shall advise Firm as to which, if any, of the documents in Firm's file City wishes be returned to City. Firm may keep copies thereof to the extent necessary for Firm's records.

Section 10, Assignment.

Firm may not assign, transfer, convey, pledge nor otherwise dispose of its rights or obligations hereunder, without prior written consent of City.

Section 11. Entire Agreement.

This Agreement constitutes the entire agreement between the Parties concerning the engagement described in paragraph 2. It supersedes all prior agreements and understandings, written or oral, and no representation by the Parties, written or oral, are binding unless expressly stated in this Agreement. This Agreement may be modified only in a writing signed by all Parties to this Agreement
IN WITNESS WHEREOF, this Agreement has been duly authorized and executed by the Parties hereto on the day and year first herein above written. "CITY": City of Downey "FI "• Lawre e, 8 len & Choi
By: By:

Name. Roger Uradley e: Christin er
Title: City Manager Title: Shareholder
ATTEST:

M. Alicia Duarte, CMC
City Clerk
APPROVED AS TO FORM:

John M_ Funk
City Attorney

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