CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Becker. Failure to promptly reimburse City is a material breach of this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Becker or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Becker hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
Enforcement of contract provisions (non estoppel). Becker acknowledges and agrees that any actual or alleged failure on the part of the City to inform Becker of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
Notice of cancellation. Becker agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
City’s right to revise requirements. The City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Becker a ninety (90)-day advance written notice of such change. If such change results in substantial additional cost to the Becker, the City and Becker may negotiate an offset of Becker’s Annual Fee.
Self-insured retentions. Any self-insured retentions must be declared to and approved by City.
City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
Timely notice of claims. Becker shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Becker’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Becker shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and fulfillment/enjoyment of the obligations/rights under this Agreement.
Attachment #6
11. Indemnification.
(a) Indemnity. Becker, as a material part of the consideration to be rendered to City under this Agreement, hereby waives all claims against City for damage to property and for injuries to persons in or about the Property, from any cause relating to Becker’s activities related to this Agreement. Becker shall indemnify, defend, and hold harmless City and each of its officers, agents, and employees (collectively the “City Parties”) from any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities, reasonable attorney’s fees and court costs (hereinafter “Indemnified Claims and Liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with this Agreement. Indemnified Claims and Liabilities shall include, but are not limited to: (i) Becker’s, or Becker’s officers, employees, agents, licensees, consultants, or contractors (collectively “Becker Parties”) negligence, recklessness, or willful misconduct in the performance of obligations under this Agreement, (ii) Becker Parties failure to comply with any provision of this Agreement, (iii) Becker Parties use of the Property, (iv) City’s approval of this Agreement, (v) City’s approval of any Permit or other City regulatory approval in connection with the Agreement, (vi) City’s approval of the Digital Displays and/or the Structure, (vii) the existence or operation of the Structure and/or the Digital Displays, (viii) the conduct of Becker’s business or from any activity, work or things done, permitted or suffered by Becker or Becker Parties in or about the Property, (ix) any legal action brought by a third party against the City where any part of said action seeks to locate offsite advertising anywhere in the City and Becker’s Structure or Digital Display is proffered as full or partial justification for said offsite advertising, (x) any legal action brought by a third party against the City where any part of said action challenges City’s approval of this Agreement, any City regulatory approval related to this Agreement, the Structure, and/or environmental/CEQA review, or (xi) any action or challenge brought for any reason by a third party against this Agreement or City Parties, directly or indirectly related to this Agreement. (b) Defense. Becker will defend, with counsel reasonably approved by the City, any action or actions filed in connection with any of said Indemnified Claims and Liabilities covered by indemnification provisions herein once notified of the existence of such claims by the City and will pay all costs and expenses, including reasonable legal costs and attorney’s fees incurred in connection therewith. (c) Exceptions. The foregoing indemnity shall not include claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents, subcontractors, or employees, who are directly responsible for the City.
12. Taxes. City hereby provides notice to Becker that a possessory interest may have been created by this Agreement which may cause this Property to be subject to taxation of the possessory interest. Pursuant to California Revenue and Taxation Code section 107.6, City hereby notifies Becker that the Property may be subject to such taxation and Becker agrees that it will pay those taxes, if any, of which Becker receives timely notice and will indemnify City from any liability therefrom.
13. Findings Required. In approving this Agreement, the City Council does hereby make the following findings in accordance with Fountain Valley Municipal Code Chapter 21.38:
(a) That Becker, by virtue of this Agreement, will have a right in the Property, described herein in Exhibit A, to wit, a right to operate the Structure in accordance with the terms of this Agreement, including the Exhibits.
(b) That this Agreement is in the best interests of the City. (c) That the status of Becker and its rights to operate the Structure on the Property have been established in this Agreement.
(d) That all applications with respect to the Structure have properly been made and all processing and review fees have been paid.
Attachment #6
(e) That the operation of the Structure will be consistent with the actions, goals, objectives and policies of the general plan, any applicable specific plan and this Agreement. (f) That this Agreement will promote the public convenience, health, interest, safety or welfare of the City.
14. Mandatory Provisions. In accordance with Government Code section 65865.2, the following provisions are incorporated:
(a) The Term of the Agreement shall be as provided in Paragraph 4. (b) The Structure may be operated on the Property as described in Exhibit B and this Agreement. The physical structure, maximum height and dimensions of the Structure, including the sign panels for on-site tenants on the Property, are set forth in Exhibit B. Further discretionary review and modifications may be allowed in accordance with the terms of this Agreement.
15. Periodic Review. In accordance with Government Code section 65865.1, this Agreement will be reviewed on at least an annual basis to ensure the terms hereof are observed. Said review may be conducted by the City Manager or by such other person as the City Manager may designate.
16. Authority. Owner represents that it is the owner of the Property and has the right to enter into this Agreement and to bind Owner hereby. City represents that it is has the right to enter into this Agreement and to bind City hereby. Becker represents that it has the right to enter into this Agreement and to bind Becker hereby. The individuals signing below warrant that they have the specific authority from their respective principals to execute this Agreement on their behalf and agree to provide such resolutions or other documents reasonably necessary to satisfy the other Party of such authority.
17. Assignment. Becker may only assign or otherwise transfer this Agreement, or its interest in the Structure, to any other person, firm, or entity, upon presentation to City of an assignment and assumption agreement in a form reasonably acceptable to City’s attorney and receipt of City’s written approval of such assignment or transfer by the City Manager provided, however, that Becker may, from time to time and one or more times, assign this Agreement, to one or more persons or entities without City approval, but with written notice to City, as long as Becker, or entities owned and controlled by Becker, Mark Becker or Joseph White, have and maintain at least fifty-one percent (51%) of ownership interest in such entities who are assignees or transferees. After a transfer or assignment as permitted by this Section, City shall look solely to such assignee or transferee for compliance with the provisions of this Agreement which have been assigned or transferred.
18. Company Status. Becker is an Arizona limited liability company registered to do business in the State of California. Becker shall provide City with evidence of its company existence and provide copies of its articles of organization and resolutions, if applicable, showing who the manager of Becker is that has authority to sign legal documents. City may request periodic updates of those documents to be assured that it is negotiating with persons with legal authority.
19. Successors. This Agreement is binding upon the heirs, assigns and successors of the Parties.
20. Further Assurances. Each Party shall execute all additional documents or instruments and take all necessary action that either Party reasonably considers necessary to carry out the proper purposes of this Agreement.
21. Notices. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent by: (a) certified mail, postage pre-paid, return receipt requested; (b) personal delivery; or (c) a recognized overnight carrier that provides proof of delivery, and shall be addressed as follows:
Attachment #6
If to City: City of Fountain Valley
Attn: City Manager
10200 Slater Avenue
Fountain Valley, California 92708
With a Copy to: Harper & Burns LLP
Attn: Attorney for the City of Fountain Valley
453 South Glassell Street
Orange, California 92866
If to Becker: Becker Boards Small, L.L.C.
Attn: Joseph White and Mark Becker
4234 E Indian School Road
Phoenix, Arizona 85018
With a Copy to: Nagle Law Group, P.C.
Attn: Robert H. Nagle
4530 East Shea Boulevard, Suite 140
Phoenix, Arizona 85028
If to Owner: BSP E405, LLC
Attn: Matthew Haugen
3501 Jamboree Rd., Ste 4200
Newport Beach, CA. 92660
If mailed, the written notice shall be deemed received and shall be effective on the earlier of the date of actual receipt by the addressee or three (3) business days after deposit in the United States mail in the State of California. If either Party gives notice in writing to the other Party of any change in said address, then and in that event such notice shall be given at the changed address specified in such notice.
22. Governing Law. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the state in which the Property is located, as the same may from time to time exist without regard to conflict of laws provisions. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought against any of the Parties only in the courts within the county in which the Property is located, or, if it has acquired or can acquire jurisdiction, in the United States District Court for the applicable district located in the applicable county where the Property is situated, and each of the Parties consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein.
23. Termination. This Agreement shall be terminated, for good cause, by a Party if a Party gives the other Parties written notice of default and if that default is not corrected (i) on or before ten (10) days after receipt of the notice for non-payment of any amount due or (ii) within sixty (60) days after receipt of the notice for any other good cause.
If this Agreement terminates due to non-performance by City, then (i) no other Annual Payment shall be due, and (ii) for only what would have been the remaining Term of this Agreement had it not been terminated (the “Remaining Term”), the Structure installed pursuant to this Agreement shall be treated as legal nonconforming uses, but the Structure shall be removed at the end of the Remaining Term or ten (10) years thereafter, whichever is shorter.
If this Agreement terminates due to non-performance by Becker, then (i) the Annual Payment shall be retained by the City, and (ii) Becker shall immediately remove the Structure installed pursuant to this Agreement; provided, that if Becker fails to remove the Structure within ninety (90) days after this Agreement is terminated pursuant to this subsection, then City shall be entitled to remove and dispose of Attachment #6
the same. If the City is required to exercise its rights due to Becker’s failure to remove the Structure, then City shall be entitled to be reimbursed by Becker any and all direct expenses incurred by City in exercising its rights under this subsection within no more than ten (10) days following City’s delivery of an invoice demanding payment for such expenses. Any such removal of the Structure by City shall not entitle Becker to any damages of any kind whatsoever against any and all City Parties and Becker hereby releases all City Parties from Indemnified Claims and Liabilities for any action by any of the City Parties in removing any and all of the Structure.
Notwithstanding the foregoing, in the event this Agreement is terminated by either Party, Owner retains the right to build a new sign that is substantially similar to the Existing Sign that is being removed.
24. Disputes.
(a) City may bring an action against Becker if it fails to pay any money when due. Such action shall include monetary damages as well as any other appropriate relief. (b) Should Becker have a dispute against City for failure to perform, Becker agrees to limit its relief to declaratory relief or writ of mandate, and no monetary damages shall be available. (c) Each Party covenants not to sue over whether the provisions of this Agreement are valid and enforceable.
(d) City shall solely look to Becker for compliance of the terms of this Agreement, including, but not limited to, the payment of the Annual Payment, Consideration or Additional Payment to City.
25. Attorney’s Fees. In the event of litigation between the parties arising out of this Agreement, each Party shall bear its own attorney’s fees and costs.
26. Waiver of Jury Trial; No Punitive Damages. Each Party irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement or the transactions contemplated hereby. No Party shall be liable for punitive damages arising under or related to this Agreement.
27. Entire Agreement; Modification. No Party shall be bound by any terms, conditions or oral representations that are not set forth in this Agreement. This Agreement represents the entire agreement of the Parties with respect to the Structure and supersedes any previous agreement. No supplement, modification or amendment of this Agreement shall be binding unless in writing and signed by the Parties.
Nothing in this Agreement shall be deemed or construed (i) to modify or amend the Site Lease, or any of Becker’s obligations thereunder; (ii) bind or restrict Owner with respect to its ownership or operation of the Property; or (iii) to impose any obligation whatsoever on Owner, including without limitation any obligation with respect to the Structure, except as expressly set forth in this Agreement.
28. Counterparts. This Agreement may be signed in counterparts.
29. Recordation. This Agreement shall be recorded in accordance with Government Code section 65868.5.
30. Local Business Discount. Becker shall provide advertising on the Digital Displays to privately owned local businesses (i.e., those having a physical address in Fountain Valley(a “Local Business”) solely with respect to the Local Business advertising its business solely for locations in the City of Fountain Valley at 30-percent off Becker’s listed advertising rates. The discount will not be available for publicly traded entities.
[SIGNATURE PAGES FOLLOWS]
Attachment #6
IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the Effective Date.
CITY: CITY OF FOUNTAIN VALLEY, a California municipal
corporation
By: __________________________
Name:
Title:
Approved as to form:
HARPER & BURNS LLP
_______________________________
Name:
Attorney for the City of Fountain Valley
Attest
_____________________________
Name:
City Clerk
[Signatures Continued on Following Pages]
Attachment #6
BECKER: BECKER BOARDS SMALL, L.L.C.,
an Arizona limited liability company
By: Garren Development, L.L.C.,
an Arizona limited liability company
By: __________________________
Name: Mark D. Becker
Its: Manager
STATE OF ARIZONA )
) SS
COUNTY OF MARICOPA )
The foregoing instrument was acknowledged before me this ______ day of _______________, 2021, by Mark D. Becker, the manager of Garren Development, L.L.C., an Arizona limited liability company, the manager of BECKER BOARDS SMALL, L.L.C., an Arizona limited liability company, for and on behalf of the company.
Notary Public in and for the State of Arizona
My commission expires:
[Signatures Continued on Following Page]
Attachment #6
OWNER: BSP E405, LLC, a Delaware limited liability company By:
Name:
Title:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
STATE OF CALIFORNIA
COUNTY OF
On __________________, 2021, before me, __________________________________________, a Notary Public, personally appeared ________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
________________________________
Signature of Notary
Attachment #6
EXHIBIT A TO AGREEMENT
EXHIBIT A
DESCRIPTION OF PROPERTY
Permanent Property Tax Number:
Legal Description:
Attachment #6
EXHIBIT B TO AGREEMENT
EXHIBIT B
SIGN SPECIFICATIONS AND DEPICTION
[SEE ATTACHED 1 PAGE]
Attachment #6
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
TO: Honorable Mayor and Agenda Date: November 15, 2022
Members of the City Council
SUBJECT: Approve Mailing of Notice of Proposition 218 Public Protest Hearing Regarding 2023-2027 Consumer Price Index (CPI) Increases for Republic (dba Rainbow) Residential Trash Collection Rates
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:
Republic/Rainbow Disposal Co., Inc., (Rainbow) provides solid waste collection and handling services to the City according to the Rubbish Collection, Disposal and Recycling Franchise Agreement (CON 06-28) and as amended between the City and Rainbow.
Under the Franchise Agreement, Rainbow is entitled to request a Consumer Price Index (CPI) adjustment for residential, commercial, and industrial customers.
City Staff and Rainbow negotiated in good faith in response to Rainbow’s request for a CPI adjustment for the 2023 calendar year starting January 1, 2023 through December 31, 2023.
According to Rainbow, the Republic labor strike, additional fuel costs along with supply chain challenges directly affected their operational cost. As a result of those discussions, and per Sections 6, 7, and 9 of the Franchise Agreement, the City and Republic negotiated/agreed to the CPI adjustment of 4.63%. This negotiation is equitable, and appropriate and should take effect on January 18, 2023, after a successful Proposition 218 Protest Hearing and council approval on January 17, 2023.
Any successive CPI adjustments from 2024 to 2027 will occur on January 1 of those years negotiated in good faith and equitably.
Notification of the rate increase is preceded via direct mailing paid for by Rainbow. Increases to the residential trash rates are preceded by a Proposition 218 Public Protest Hearing. If Council approves this item, notices will be mailed to all residential properties informing them of the proposed increase of the trash collection fees.
Council Action Request
Approval of CPI Increase for Rainbow Trash Collection Rates November 15, 2022
The CPI adjustment of 4.63% is from the National Garbage and Trash Collection index published by the US Bureau of Labor and Statistics. Similarly, the local Los Angeles-Long Beach-Anaheim CPI index is 7.87%. Rainbow will be absorbing the cost of escalation of containers, tires, fuel, and other key purchases to continue to provide the services and accommodate the SB 1383 organic recycling program, which was negotiated in good faith before these escalations are realized/published in Consumer Price Index.
RECOMMENDATION:
Approve Mailing of Notice of Proposition 218 Public Protest Hearing Regarding 2023-2027 Consumer Price Index (CPI) Increases for Republic (dba Rainbow) Residential Trash Collection Rates.
Prepared By: HyeJin Lee, Director of Public Works
Reviewed By: Colin Burns, Attorney for the City
Approved By: Ryan Smith, Finance Director
Approved By: Maggie Le, City Manager
Attachment:
1. Notice of Prop 218 Protest Hearing - Proposed Republic CPI Rate Increases
2. Republic CPI Rate Increase Request letter and CPI calculations a. Republic Services Rate Increase Request – Residential b. Republic Services Rate Increase Request – Commercial c. 2022-2021 BLS CPI All Urban Customers -LA-Long Beach-Anaheim
NOTICE OF PROPOSITION 218 PROTEST
HEARING REGARDING PROPOSED
RESIDENTIAL TRASH COLLECTION RATE
INCREASES
NOTICE is hereby given that the Fountain Valley City Council will conduct a public hearing on Tuesday, January 17, at 6:00 p.m., in the City Council Chambers, 10200 Slater Avenue, Fountain Valley, to consider annual CPI adjustments to
residential trash collection rates established in the solid waste handling services contract between the City and Republic Services. If approved, the new rate becomes effective January 18, 2023. The pending rate adjustment is based on the annual CPI Index for Garbage and Trash Collection published by the U.S. Department of Labor which has increased 4.63% over the past year.
The proposed CPI adjustment, to become effective January 18, 2023 and each January 1 thereafter over a 5-year period, was requested by Republic Services in accordance with the terms of the contract between Repubic and the City of Fountain Valley. The contract authorizes annual adjustments to service rates based on the change in CPI. The last adjustment would occur effective January 1, 2027. The monthly charges are charged bimonthly and collected through water bills. Revenue generated will fund all costs associated with residential trash collection, disposal and processing, as well as compliance with regulatory agency requirements.
Questions or comments regarding the proposed rate may be directed to the City of Fountain Valley Public Works Department at (714) 593-4441 or e-mailed to [email protected].
Under Proposition 218, protests to the proposed increase in residential trash collection rates must be delivered in writing to the City Clerk, the City of Fountain Valley, 10200 Slater Avenue, Fountain Valley, CA, 92708, prior to the conclusion of the Public Protest Hearing on January 17, 2023. Please include the Fountain Valley address of the affected property with any correspondence.
Proposed Standard Residential Monthly Rate
Current Rate Proposed Rate
Trash: $21.46 $22.45
MRF rate: $ 3.45 $ 3.61
Admin fee*: $ 1.34 $ 1.34
Total: $26.25 $27.40
*Admin fee billed to residents by the City to cover City’s administrative costs.
Effective Date Proposed 5-Year Residential Trash Collection Rates (per dwelling unit per month)
January 18, 2023 $27.40
January 1, 2024 $27.40 plus/minus 2023 CPI for Garbage and Trash January 1, 2025 2024 rate plus/minus 2024 CPI for Garbage and Trash January 1, 2026 2025 rate plus/minus 2025 CPI for Garbage and Trash January 1, 2027 2026 rate plus/minus 2026 CPI for Garbage and Trash Proposed Senior Citizen Discount Residential Monthly Rate (62 years and above)
Current Rate Proposed Rate
Trash: $18.24 $19.08
MRF rate: $ 3.45 $ 3.61
Admin fee*: $ 1.34 $ 1.34
Total: $23.03 $24.03
*Admin fee billed to residents by the City to cover City’s administrative costs.
Effective Date Proposed 5-Year Senior Citizen Discount
Residential Trash Collection
January 18, 2023 $24.03
January 1, 2024 $24.03 plus/minus 2018 CPI for Garbage and Trash January 1, 2025 2024 rate plus/minus 2024 CPI for Garbage and Trash January 1, 2026 2025 rate plus/minus 2025 CPI for Garbage and Trash January 1, 2027 2026 rate plus/minus 2026 CPI for Garbage and Trash
CITY OF FOUNTAIN VALLEY
10200 Slater Avenue
Fountain Valley, CA 92708-4736
Resident
Billing Address
Fountain Valley, CA 92708
ATTACHMENT #1
(542.564-518.579)/518.579 = 4.63%
ATTACHMENT #1
(542.564-518.579)/518.579 = 4.63%
April to April (308.302-285.808)/285.808 = 7.87%
Sept to Sept (315.033-292.209)/292.209 = 7.81%
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: November 15, 2022
Members of the City Council
SUBJECT: Approval of Amendment Number One with Harper and Burns LLP, Approving an Increase in Fees
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:
In September 2021, the City Council approved an agreement with Harper & Burns to provide legal services to the City. The current agreement with Harper and Burns runs until September 30, 2024. Harper & Burns, LLP has served the city since 1982 and has provided exceptional legal and customer service. The Amendment to Contract Number 21- 45 is to allow an increase of 7% to the existing fees charged by Harper and Burns for legal services. The last increase in fees that was approved for Harper and Burns occurred on June 1, 2020. Staff recommends the City Council approve the Amendment for Consultant Services with Harper & Burns, LLP to continue to provide City Attorney services to the City.
DISCUSSION:
Pursuant to Harper and Burns contract with the City from September 7, 2021, the firm may request “City consideration of a CPI adjustment based on a year-to-year comparison of prices on the Consumer Price Index – All Items – Riverside Area on the anniversary date of the legal services agreement. Any CPI adjustment requires approval of the City, subject to the City’s sole and absolute discretion.”
Harper and Burns LLP is requesting a CPI increase of 7%, which is what the recent staff increases were capped at. The 7% CPI increase would result in the following increases:
Position Current Rate Adjusted Rate (7.0%
increase)
Partner $175.00 $187.00
Senior Attorney $160.00 $171.00
Associate $145.00 $155.00
Law Clerk $95.00 $101.00
Paralegal $95.00 $101.00
FINANCIAL ANALYSIS:
The amendment to the agreement calls for a 7% increase in hourly rates beginning on November 1, 2022. Currently, it is projected that sufficient funds exist in the 2022/2023 budget to pay for legal services, thus no additional funding is needed at this time. It will be expensed to 100.10.10106.53000.
The City’s actual legal expenses for “City Attorney” type work for fiscal year 2021/2022 was approximately $332,925. The estimated legal expense for fiscal year 2022/2023 is estimated to be approximately $375,000 inclusive of approval of the 7% CPI increase.
ATTORNEY REVIEW:
The amendment was reviewed by outside Counsel Michael Daudt from Woodruff Spradlin.
ALTERNATIVES:
Alternative No.1: Approve the Amendment to contract number 21-45 for Consultant Services with Harper and Burns.
Alternative No. 2: Do not approve the Amendment to contract number 21-45 for Consultant Services.
RECOMMENDATION:
Staff recommends the City Council approve Amendment number one to contract number 21-45 for Consultant Services with Harper and Burns.
Prepared & Approved By: Rick Miller, City Clerk Administrator Fiscal Review By: Ryan Smith, Finance Director/Treasurer Approved By: Maggie Le, City Manager
Attachment 1: Professional Services Agreement 21-45 with Harper and Burns Attachment 2: Amendment Number 1 to contract 21-45 for City Legal Services