July 19, 2022
City Council
DATE: July 19, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Mayor Tom Butt, Councilmember Demnlus Johnson III,
and Councilmember Gayle McLaughlin
Subject:
Approval of the Agreement with Aleshire and Wynder for
City Attorney Services
FINANCIAL IMPACT: The legal services will cost approximately $400,000 per quarter, for a total of annual contract amount of
$1,600,000. In the adopted Fiscal Year 2022-2023 the
City Council appropriated $1,500,000 for legal services; therefore, $100,000 shall be funded from account string 01151014-400206. Salary savings and the reduction of
other outside counsel costs is required and shall reduce the cumulative fiscal impact of legal service expenditures.
PREVIOUS COUNCIL
ACTION:
On December 21, 2021, and May 17, 2022, the City
Council approved an agreement and an amendment for
interim city attorney services.
STATEMENT OF THE
ISSUE:
The City Council is appointing a City Attorney. The
proposed agreement between the City and Aleshire &
Wynder, LLP provides for a full range of city attorney
services, inclusive of a team of attorneys, and will
improve cost efficiency by limiting the use of other
outside counsel, while maintaining the current staff in the City Attorney’s Office. This approach provides for a
hybrid legal services delivery model.
AGENDA
REPORT
July 19, 2022
RECOMMENDED ACTION:
APPROVE a sole source legal services agreement with
Aleshire and Wynder for City Attorney services, with an agreement term beginning July 1, 2022, with a quarterly cost of approximately $400,000, and a total of
$1,600,000 per year; and APPOINT Dave Aleshire as
City Attorney – Councilmembers Demnlus Johnson III
(510-620-6861) and Gayle McLaughlin (510-620-6565),
and Mayor Tom Butt (510-620-6503).
DISCUSSION:
The law firm of Aleshire & Wynder, LLP has been successfully serving as Interim City Attorney since the end of December 2021. Having Dave Aleshire, a named partner at Aleshire & Wynder continue to serve as City Attorney will best serve the City’s needs at this time. He will continue to review and assess outside counsel costs, risk management, and general liability practices in order to reduce costs, improve efficiency, and increase service delivery.
The proposed agreement contemplates fees in the amount of $400,000 per quarter, for a total contract amount of $1,600,000. The fees shall be reviewed by City Council each quarter. The cost of the agreement shall be offset by salary savings in current vacant positions in the City Attorney’s Office, and by the reduction of outside counsel costs
The proposed agreement with Aleshire & Wynder, LLC will enable Dave Aleshire to provide city attorney services with the backing of a team of attorneys from his firm and from the existing City Attorney’s in-house attorneys and administrative staff, in a hybrid service delivery model.
Below is a breakdown of types of legal services, proposed hourly rates and the average hourly rates for other law firms that provide comparable services.
Services Current A&W
Hourly Rates
Proposed
A&W Hourly
Rates
Average
Outside
Hours1
City Attorney General Services $250
Associate
$265 Partner
$250
Associate
$265 Partner
$272
Associate
$365 Partner
Special Services/Litigation* $265
Associate
$325
Partner
$265
Associate
$345 Partner
$338
Associate
$388 Partner
1 Rates obtained from 2021 RFQ responses for the following law firms: Burke Williams; Downey Brand; Colantuono; Goldfarb; Meyers Nave; Jarvis Fay & Gibson; Remy, Moose, Manley; Best, Best & Krieger
July 19, 2022
Risk Management/Code
Enforcement
(or JPA rate)
$250
Associate
$265 Partner
$250
Associate
$265 Partner
$306
Associate
$352 Partner
Public Finance Matters $280
Associate
$350 Partner
$300
Associate
$450 Partner
$585-$625
Reimbursable
(When Developer or 3rd Party
is Paying)
$280
Associate
$350 Partner
$295
Associate
$385 Partner
Paralegals and Law Clerks $150 $160 $166
Document Clerks $75 $75
The agreement includes the following provisions among others:
1. Term: The term begins on July 1, 2022, and continues until terminated.
2. Termination: Either party may terminate the services without cause, but the firm is required to provide notice and comply with Rules of Professional Conduct of the State Bar. This would allow the time to find another attorney if necessary.
3. The fees for services shall be reviewed on a quarterly basis by the City Council.
DOCUMENT ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Sole Source