ITEM STATUS:
APPROVED:
DENIED:
TABLED:
DIRECTION GIVEN:
ANALYSIS
N/A
ENVIRONMENTAL
N/A
DISCUSSION
The City contribution to medical premiums for active employees and retirees will be adjusted as follows, effective January 1, 2025:
Santa Fe Springs City Employees Association, Santa Fe Springs Management & Confidential Association and Santa Fe Springs Executive Management Association:
From $2,250.07 to $2,408.95 per month
Santa Fe Springs Firefighters Association:
From $2,371.00 to $2,484.00 per month
Government Code Section 22892 requires that a resolution be adopted fixing this maximum amount of medical coverage.
SUMMARY/NEXT STEPS
Staff recommends that the City Council approve Resolution No. 9929.
Upon approval, staff will send a certified copy of the resolution to CalPERS.
ATTACHMENT(S):
A. Resolution No. 9929
RESOLUTION NO. 9929
A RESOLUTION OF THE SANTA FE SPRINGS CITY COUNCIL
FIXING THE EMPLOYER CONTRIBUTION UNDER THE PUBLIC EMPLOYEES’ MEDICAL AND
HOSPITAL CARE ACT AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS WHEREAS, (1) City of Santa Fe Springs is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”); and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; now, therefore be it
RESOLVED, (a) That the employer contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of:
Medical Group Monthly Employer Health Contribution
Self Self+1 Self+ Family
001 Miscellaneous $2,408.95 $2,408.95 $2,408.95
002 Safety $2,484.00 $2,484.00 $2,484.00
plus administrative fees and Contingency Reserve Fund assessments; and be it further
RESOLVED, (b) City of Santa Fe Springs has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further
RESOLVED, (c) That the participation of the employees and annuitants of City of Santa Fe Springs shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Santa Fe Springs would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and be it further
RESOLVED, (d) That the executive body appoint and direct, and it does hereby appoint and direct, Nicholas Razo, Assistant City Manager to file with the Board a verified copy of this resolution, and to perform on behalf of City of Santa Fe Springs all functions required of it under the Act; and be it further RESOLVED, (e) That coverage under the Act be effective on January 1, 2025.
Adopted at a regular meeting of the City Council at Santa Fe Springs, this 17th day of September 2024.
Signed: _________________________________
Jay Sarno, Mayor
ATTEST:
_________________________________
Fernando N. Munoz, CMC, City Clerk
ITEM # 15
CITY OF SANTA FE SPRINGS
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: René Bobadilla, P.E., City Manager
SUBJECT: PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
SANTA FE SPRINGS AND OLIVAREZ MADRUGA LAW
ORGANIZATION, LLP
DATE: September 17, 2024
RECOMMENDATION(S):
It is recommended that the City Council:
1) Approve the “Professional Services Agreement Between The City of Santa Fe Springs and Olivarez Madruga Law Organization, LLP (“OMLO”)” to act as the City Attorney on behalf of the City of Santa Fe Springs (“City”).
FISCAL IMPACT
The proposed Professional Service Agreement will not have a direct impact on the Budget. Legal services are included in the Budget for the 2024-2025 fiscal year.
BACKGROUND
The obligations of the City Attorney are outlined in Government Code Sections 41801- 41805, including but not limited to drafting ordinances and providing advice and counsel on all legal matters pending before the City. Pursuant to Section 33.04 of the Santa Fe Springs Municipal Code (“SFSMC”), the City may directly appoint the City Attorney to provide legal services. The level of compensation is set by the City Council. Gov. Code § 31804.
Through the approval of the Professional Services Agreement with OMLO, OMLO would act as the City Attorney for all legal matters pending before the City. Rick Olivarez will act as the City Attorney.
CITY COUNCIL AGENDA REPORT – MEETING OF SEPTEMBER 17, 2024 Professional Services Agreement with Olivarez Madruga Law Organization, LLP
ITEM STATUS:
APPROVED:
DENIED:
TABLED:
DIRECTION GIVEN:
ANALYSIS
N/A
ENVIRONMENTAL
Pursuant to the California Environmental Quality Act (“CEQA”) (Pub. Res. Code § 21000 et seq.) and CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), this action is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3) (Common Sense Exemption) because it can be seen with certainty that the approval of a professional services agreement for legal services would not have a foreseeable impact on the environment.
DISCUSSION
N/A
SUMMARY/NEXT STEPS
If approved, the Professional Services Agreement will become effective upon execution.
ATTACHMENT(S):
A. Professional Services Agreement
PROFESSIONAL SERVICES AGREEMENT
FOR CITY ATTORNEY SERVICES
CITY OF SANTA FE SPRINGS
This Professional Services Agreement for City Attorney Services (“Agreement”) is made and entered into by and between the law firm of OLIVAREZ MADRUGA LAW ORGANIZATION, LLP (“OMLO”) and the CITY OF SANTA FE SPRINGS (the “City”), a municipal corporation of the State of California. OMLO and City may be referred to hereinafter individually and/or collectively, as the context may require, as “Party” or “Parties.”
RECITALS
A. OMLO is a firm in the general practice of law with extensive municipal experience, and is fully able to carry out the duties described in this Agreement.
B. The City desires to contract with OMLO to provide contract legal services to the City.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual terms and conditions set forth in this Agreement, OMLO and the City agree as follows:
1. APPOINTMENT OF CONTRACT CITY ATTORNEY
A. Rick Olivarez is hereby designated and appointed as City Attorney ("City Attorney"), on behalf of OMLO, for the City of Santa Fe Springs and shall serve and be compensated as provided by this Agreement. The City Attorney shall process, coordinate, and direct, as necessary, all legal services provided under this Agreement in order to maximize the timeliness and usefulness of the delivery of such services. The City Attorney shall attend all City Council meetings and other meetings, as required, and be available at all reasonable times to the Mayor and City Council, the City Manager, and persons designated by the City Manager, in relationship to all legal services to be furnished by OMLO under this Agreement. The City Attorney shall also direct and coordinate all internal activities so that all services provided by OMLO, under this Agreement to the City, shall be fully competent, professional, consistent, timely, and in accordance with the standards prevalent in the industry. It is expressly understood that the experience, knowledge, capability, and reputation of the designated and appointed City Attorney are a substantial inducement for the City to enter into this Agreement. The City Attorney shall be responsible during the term of this Agreement for directing all activities of OMLO on behalf of the City and devoting such time as necessary to personally supervise such services. The primary assignment of the City Attorney shall not be changed by OMLO without the express approval of the City.
B. The City Attorney shall designate such attorneys from OMLO as are determined to be necessary to serve as assistant or deputy city attorneys for City. All attorneys assigned to perform approved City business shall, at all times while this Agreement is in effect and at their sole cost and expense, be fully qualified and licensed to practice law in the State of California and before all appropriate federal courts and other bodies and tribunals. 2 2. SCOPE OF WORK
A. OMLO agrees to perform all necessary legal services as Contract City Attorney, and shall:
1. Attend all regularly scheduled and special City Council meetings and City Council study sessions.
2. Provide legal services on-site during office hours at City Hall, with the amount and the scheduling of such hours to be determined by the City.
These hours of on-site service will be at regularly scheduled times made known to all members of the City Council and to all department heads so as to facilitate informal, direct access to legal counsel as necessary.
3. Attend Planning Commission and other meetings at City Hall or via conference call as required by the City Council or the City Manager.
4. Advise the City Council; any City Commissions, Committees, Boards, Authorities or Agencies; City staff and other City officials; on all legal matters pertaining to City business.
5. Prepare, review, and approve as to form, contracts, agreements, resolutions, ordinances, and all other standard City documents.
6. Prepare such written and oral legal opinions as shall, from time to time, be requested by the City.
7. Represent the City as the City Prosecutor for code enforcement matters;
8. Perform such other routine legal services as are required, from time to time, by the City Council or the City Manager.
9. Represent the City and the City's officials, officers, and employees in litigation and administrative proceedings as directed by the City Council or the City Manager.
10. At the request of the City, perform special projects or tasks assigned by the City Manager, or designee, or the City Council.
B. OMLO shall perform the legal services called for under this Section 2, keep the City informed of progress and development, and respond promptly to City’s inquiries and communications. City with be truthful and cooperative with OMLO and keep OMLO reasonably informed of developments.
C. The City specifically reserves the right to retain, at its sole option, other legal counsel for litigation and other specialized legal matters. The City Attorney will supervise outside legal counsel's work. This reservation of rights does not preclude the City from assigning these matters to OMLO as part of the scope of duties under this Section 2, or requesting recommendations concerning the selection of outside legal counsel. 3 3. COMPENSATION
OMLO shall be compensated for services rendered under this Agreement as follows:
A. General Legal Services
The City shall pay OMLO a retainer of twenty-five thousand dollars ($25,000.00) per month, which amount will cover all general legal services (those services described above in Section 2.A., numbers 1-10).
B. Specialized Legal Services/Special Projects
Specialized projects and non-litigation legal services, including but not limited to legal services that are subject to cost-recovery by third-parties, not included within the retainer shall be billed to City at the rate of $262 per hour. Any special projects billed outside of the retainer require prior approval of the City Council or City Manager, or designee. Paralegal/Legal Research Clerk services shall be billed at the rate of $145 per hour. All costs and expenses, except those set forth in Section 3.F below, shall be deemed included in the foregoing hourly billing rates.
C. Litigation Services
Litigation matters approved by the City Manager and/or City Council shall not be included in the retainer amount. Special Projects/Litigation legal services shall be billed at the rate of $262 per hour. Paralegal services shall be billed at the rate of $145 per hour. All costs and expenses, except those set forth in Section 3.F below, shall be deemed included in the foregoing hourly billing rates.
D. Summary of Billing Rates:
Basic Legal Services
Special Projects
Litigation
Paralegal/Legal Research Clerk:
$ 25,000.00 Per Month
$ 262.00 Per Hour
$ 262.00 Per Hour
$ 145.00 Per Hour
E. Billing and Rate Increases
OMLO shall provide a monthly billing report indicating actual time spent under the retainer, litigation matters, and additional specialized projects. The foregoing retainer and hourly rates shall remain in full force and effect until June 30, 2025, and annually on every July 1st thereafter, to automatically reflect any increase in the cost of living based on the Consumer Price Index (“CPI”) increase for the prior year utilizing the standard as established by the Bureau of Labor Statistics of the U.S. Department of Labor for all urban consumers in the Los Angeles-Long Beach-Anaheim area, or another mutually agreed upon index based on comparable data should the Consumer Price Index established by the Bureau of Labor Statistic be unavailable, not to exceed five percent (5%) per year.
F. Billable Activities for General Legal Services/Expenses OMLO generally does not bill mileage, fax, word processing, small reproduction matters (under 100 pages), or simple computer legal research costs. Additionally, it is agreed that the cost 4 for administrative staff to perform clerical duties including but not limited to reviewing emails, scheduling meetings or general office filing will not be billable expenditures. OMLO will charge City for actual necessary costs incurred for all of the following: all costs incurred related to any litigation (civil or criminal) or special projects, including but not limited to, court filing fees, jury fees, deposition costs, reporters' fees, witness fees, attorney services (includes service of process fees, arbitrators, and mediators), messenger services, Lexis-Nexis/Westlaw research outside of our prepaid service fee, Fed-Ex or other overnight delivery service, mileage, travel expenses, if applicable, including hotel, air travel and car rentals, parking fees, actual costs for large reproduction projects if performed by an outside service, or $0.10 per page (b/w) and $0.20 per page (color) if performed in house, title reports, and any other expense not listed above which becomes necessary to the successful resolution of a client matter.
G. Monthly Statements
OMLO shall submit statements of all payments due under this Agreement on a monthly basis to the City Manager. All work performed by OMLO shall be billed in increments of tenths of an hour. The statement shall be in a form approved by the City, and shall set forth a description of all work performed, the hours worked, the identity of each person performing the work, the rate charged, the identity of the person requesting work, and any litigation costs or expenses eligible for reimbursement.
H. Payment
All hours shall be billed by the 15th day of each month following the close of the month for which hours are being provided. Payment for hours shall be due and payable within thirty (30) days following submission of the billing statement to the City.
4. CONFLICT OF INTEREST
OMLO has no present or contemplated employment which is adverse to City. OMLO agrees it shall not represent clients in matters either involving litigation or non-litigation against City. However, OMLO may have past and present clients or may have future clients, which, from time to time, may have interests adverse to City, and OMLO reserves the right to represent such clients in matters not connected with its representation of City.
If a potential conflict of interest arises in OMLO’s representation of two clients, if such conflict is only speculative or minor, then OMLO shall seek waivers from each client with regard to such representation. However, if real conflicts exist, then OMLO would withdraw from representing either client in the matter and assist them in obtaining outside legal counsel.
Within thirty (30) days following execution of this Agreement, OMLO shall file a conflict of interest disclosure statement setting forth any information related to potential conflicts of interest to the extent such disclosure is required by law, including City's adopted conflict of interest code.
5. INDEPENDENT CONTRACTOR
OMLO shall perform all services required under this Agreement as an independent contractor of the City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. OMLO shall not at any time or in any manner 5 represent that it or any of its employees or agents are City employees.
6. DISPUTE RESOLUTION
If any dispute or disagreement arises between the City and OMLO as to any matter relating to this Agreement, including but not limited to the scope of services, the performance of the respective responsibilities of the City and OMLO, the quality of the services rendered, and the billing of such services, the City and OMLO agree to confer and attempt to resolve the matter informally. If the Parties cannot agree, they agree that they will refer the dispute for resolution to mediation to the fullest extent permitted by law. The Parties are aware that mediation is a voluntary process and pledge to cooperate fully and fairly with the mediator in an attempt to reach a mutually satisfactory compromise of any dispute or disagreement. The mediator shall be chosen by mutual agreement of the parties, and mediation shall commence within thirty (30) days of either Party's written request to the other for mediation. Any agreement reached by the mediation shall be reduced to writing, be signed by the parties, and be binding on them. This provision for mediation is an effort to protect, preserve, and respect the requisites of a productive attorney-client relationship, but shall be without prejudice to either party pursuing its other lawful remedies.
7. INSURANCE AND INDEMNIFICATION
A. Insurance
1. OMLO shall procure and maintain, at its cost:
a. Commercial General Liability insurance with limits not less than one million dollars ($1,000,000) per occurrence. Such insurance shall designate City, its elected and appointed officials, employees, and volunteers as additional insureds. Such insurance shall be primary and not contribute with any insurance or self-insurance maintained by City.
b. Business automobile liability insurance with limits not less than one million dollars ($1,000,000) per occurrence. Such insurance shall include coverage for owned, non-owned, and hired automobiles.
c. Professional liability insurance with limits not less than two million dollars ($2,000,000) per occurrence.
d. Workers' compensation insurance as required by California law and Employer's Liability insurance with limits not less than one million dollars ($1,000,000) per accident for bodily injury or disease. The workers' compensation insurance shall contain an endorsement stating the insurer waives any right of subrogation against City, its elected and appointed officials, employees and volunteers.
2. All such policies shall provide City thirty (30) days' notice of cancellation. Selfinsured retentions must be declared and approved by City.
3. Prior to commencement of work, and throughout the term of this Agreement, OMLO shall furnish City with certificates evidencing compliance with the insurance requirements above. OMLO agrees to provide complete, certified 6 copies of all required insurance policies if requested by the City.
4. Insurance shall be placed with insurers that maintain an A.M. Best rating of A-, VII or better, or otherwise meet the written approval of the City.
5. The Contractor shall ensure that subcontractors maintain insurance that complies with the requirements stated herein.
B. Indemnification
OMLO shall defend, indemnify, and hold harmless the City, and its officers and employees, from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including legal costs and attorneys' fees, for injury to person(s) or damages to property (including property owned by the City), and for errors and omissions committed by OMLO, its officers, employees, and agents, arising out of or relating to OMLO's performance under this Agreement, except to the degree such injury, damage, error(s) or omission(s) may be caused by City's negligence or willful misconduct, or that of the City's officers or employees.
8. RECORDS AND REPORTS
A. Records
OMLO shall keep such books and records as shall be necessary to perform the services required by this Agreement and to enable the City to evaluate the performance of the required services. The City shall have full and free access to such books and records that deal specifically with the services performed by OMLO for City at all reasonable times, including the right to inspect, copy, audit, and make summaries and transcripts from such records.
B. Ownership of Documents
All reports, records, documents, and other materials prepared by OMLO, its employees and agents in the performance of this Agreement shall be the property of the City and shall be delivered to the City upon request by the City or upon termination of this Agreement. OMLO shall have no claim for further or additional compensation as a result of the exercise by the City of its full rights of ownership of the documents and material hereunder. OMLO may retain copies of such documents for its own use.
C. Release of Documents
No report, record, document, or other material prepared by OMLO in the performance of services under this Agreement shall be released publicly without prior written approval of the City, except as may be required by law.
9. NONDISCRIMINATION
OMLO pledges there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry in the performance of services under this Agreement. 7 10. EFFECTIVE DATE
This AGREEMENT will govern all legal services performed by OMLO on behalf of City.
The term of this Agreement shall commence on September 17, 2024, and shall continue in effect until terminated as provided herein. City may terminate the Agreement at any time, as provided in Section 11A.
11. TERMINATION
A. Termination By City
OMLO shall at all times serve under the terms of this Agreement at the pleasure of the City Council, and the City Council hereby reserves the right to terminate this Agreement at will, with or without cause, by providing written notice to OMLO. Upon receipt of any notice of termination, OMLO shall cease all services under this Agreement except as may be specifically approved by the City. At that time, all further obligations of the City to pay OMLO for services rendered under this Agreement shall thereupon cease, except as set forth in Section 11.C below; provided, however, that the City shall be obliged to pay for all services, costs, and expenditures lawfully incurred by OMLO prior to the effective date of such termination, or subsequent to the date of termination at the direction of City.
B. Termination By OMLO
OMLO reserves the right to terminate this Agreement by giving ninety (90) days' advance written notice to City.
C. Mutual Obligations Upon Termination By Either Party
In the event of termination of this Agreement by either party, OMLO shall cooperate with the City in transferring the files and assignments to the City Clerk or other person designated by City pending the hiring of another City Attorney. OMLO shall be compensated at the hourly rates set forth in Section 3 of this Agreement should OMLO be called upon to perform any services after the effective date of termination, including the transfer of files and assignments.
12. NOTICES
Notices required pursuant to this Agreement shall be given by personal service upon the Party to be notified, or by delivery of same into the custody of the United States Postal Service, or its lawful successor; postage prepaid and addressed as follows:
To the City:
City of Santa Fe Springs
11710 E. Telegraph Rd.
Santa Fe Springs, CA 90670
Attn: René Bobadilla, City Manager
8 To OMLO:
Olivarez Madruga Law Organization, LLP
500 South Grand Avenue
12th Floor
Los Angeles, CA 90071
Attn: Rick Olivarez
Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notice given by deposit with the United States Postal Service shall be deemed to have been given two (2) consecutive business days following the deposit of the same in the custody of said Postal Service. Either Party hereto may, from time to time, by written notice to the other, designate a different address or person which shall be substituted for that specified above
13. AMENDMENT OF AGREEMENT
This Agreement contains all of the agreements of OMLO and the City. This Agreement may be amended at any time by mutual consent of the parties by an instrument in writing.
14. NO WAIVER
No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the Party making the waiver.
15. INTERPRETATION OF AGREEMENT AND FORUM
This Agreement shall be construed and interpreted both as to validity and performance of the Parties in accordance with the laws of the State of California. In the event of any dispute hereunder, forum shall be the Superior Court, Los Angeles County.
16. SEVERABILITY
If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.
17. AUTHORITY
The persons executing this Agreement on behalf of the Parties hereto warrant they are duly authorized to execute this Agreement on behalf of said Parties and that in so executing this Agreement the Parties hereto are formally bound to the provisions of this Agreement. 9 IN WITNESS WHEREOF, the duly authorized representatives of the parties have executed this Agreement in duplicate the day of September 2024.
CITY OF SANTA FE SPRINGS
B y:
Mayor, Jay Sarno
ATTEST:
City Clerk
OLIVAREZ MADRUGA LAW ORGANIZATION, LLP
By:
Rick Olivarez
Managing Partner