Meeting Date:

June 22, 2006





David A. Berger,




General Manager

Line Item No.:

Services & Supplies Legal Services


Prepared By:

Rick Dickhaut

Cost Estimate:



General Counsel Approval: N/A

Committee Recommendation: The Administrative Committee considered this item on June 12, 2006 and recommended approval.

CEQA Compliance: N/A


SUMMARY: For the past 25 years, the Board has utilized the services of De Lay & Laredo to provide legal services to the District. The current two-year agreement expires on June 30, 2006. Exhibit 10-A is memorandum dated May 16, 2006 from David Laredo of De Lay & Laredo to David Berger outlining the proposed changes to a contract for fiscal years 2006-07 and 2007-08. Exhibit 10-B is a draft of the proposed contract. The proposed contract includes a rate increase of $10 per hour in each fiscal year. The table below summarizes current and proposed rates.


Fiscal Year

Retained Hours (45)

Hours in Excess of 45

Current 2005-06



Proposed 2006-07



Proposed 2007-08



Mr. Laredo also offers to increase his professional errors and omissions insurance coverage from $500,000 to $1,000,000 during the term of the new agreement. As in previous agreements, the legal services agreement may be terminated at any time during its term, without cause, by the affirmative vote of five members of the Board. The proposed contract contains no other changes from the current contract.


RECOMMENDATION: Authorize the General Manager to execute a contract for legal services with De Lay & Laredo for fiscal years 2006-07 and 2007-08. The Administrative Committee reviewed this item on June 12, 2006 and voted 3 to 0 to recommend approval.


IMPACT ON STAFF AND RESOURCES: The proposed budget for fiscal year 2006-07 includes $500,000 to cover the costs for legal services to be provided by De Lay and Laredo, and limited services from other special counsel, if required. It is anticipated that the budgeted amount is also sufficient to cover the proposed rate increase by De Lay & Laredo.


BACKGROUND: The law firm of De Lay & Laredo has provided legal services to the District since March of 1979. The most recent contract for services, for the period July 1, 2004 June 30, 2006, was executed on July 1, 2004. The contract specified a rate of $155 per hour for retained services of 45 hours per month, as well as all for services over the retained hours, in fiscal year 2004-05. For fiscal year 2005-06, the contract provided for retained services of 45 hours per month at $165 per hour, with all services provided beyond the retained amount being compensated at $170 per hour. The contract also provided that retained hours not used in any month be carried forward, but not beyond the end of any fiscal year. The contract contains a provision that, in absence of a written renewal, the contract shall continue on a monthly basis as of July 1, 2008.



10-A Memorandum from David Laredo dated May 16, 2006

10-B Draft Agreement for Legal Services