ITEM:		CONSENT CALENDAR
3.	CONSIDER APPROVAL OF LEGAL SERVICES CONTRACT WITH DELAY AND LAREDO, ATTORNEYS AT LAW
Meeting Date:			November 19, 2018	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	$5,780 (retainer) $245 per hour (special)
General Counsel Review: Yes
Committee Recommendation: The Administrative Committee reviewed this item on November 5, 2018 and recommended approval.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: In FY2011-12 the Administrative Committee began a quarterly review of legal expenses and an increased focus on such expenditures. This resulted in decreased legal expenditures as compared to FY2010-11. When the contract for General Counsel services expired on October 31, 2015, the Board indicated a desire to have stronger control over ongoing legal expenses. The contract approved in October 2015 reflected that desire by bifurcating the scope of work into “retained” and “special” legal services. This proposed renewal is in the same form with updated rates.

RECOMMENDATION: The General Manager recommends that the Committee recommend approval of the proposed contract for legal services, as well as establish a term for expiration.

DISCUSSION: “Retained” general counsel services include day-to-day advice, written opinions, legal document review, appearances at all Board meetings, and appearance at committees or subcommittee meetings at the District upon request. This will be billed at a flat $5,780 per month, an increase of 6.0% over the previous three-year term, with an annual increase of 4.0% beginning January 1, 2020.

“Special” legal services, will occur upon request by the District and subject to direction from the General Manager, and will include such things as appearances at non-District meetings or proceedings, oversight of special counsel, litigation advice or services, services subject to reimbursement by third parties, and bond, audit or financial services. These will be billed at the rate of two hundred forty-five dollars ($245) per hour, with monthly invoice, the same rate as 2018, with an annual increase of 4.0% beginning January 1, 2020.

Such services would include, for example, litigation, Cal-Am applications at the CPUC, reimbursable work on water distribution system permits and water use permits, and so forth. When new needs are identified, the Board and the General Manager can request a specific budget and scope for the new needs.

While this will provide greater control over monitoring legal expenses, it will not control the number of special cases that arise, nor the hourly commitment each may require. The Board and the Administrative Committee will need to regularly review the District’s legal demands.

Additionally, under this contract the District agrees to reimburse General Counsel for all expenses and reasonable costs incurred by General Counsel relating to the District, including registration and expenses (in accord with District per diem rates and policies) for one conference sponsored by ACWA or other comparable organization each calendar year. District shall reimburse General Counsel all costs incurred on behalf of District including specialty counsel, appraisers, filing fees, witness fees, transcripts, reporter fees, hearing officer costs, photocopying costs, long distance telephone costs, travel and lodging costs, legal process fees, discovery costs, and jury fees. Out-of-District travel shall be billed at 50% of service rate. Costs shall be billed at actual cost (no over-head additions). No cost charge shall be made for communications or deliveries to or from other firm counsel.

EXHIBIT

3-A Proposal for General Counsel Legal Services

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