TO: ADAM PIRRIE, CITY MANAGER
FROM: JAMIE EARL, ASSISTANT CITY MANAGER
DATE: FEBRUARY 25, 2025
Reviewed by:
City Manager: AP
SUBJECT:
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SECOND AMENDMENT TO THE LEGAL SERVICES AGREEMENT WITH RUTAN & TUCKER, LLP (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
In March 2018, the City of Claremont (“City”) engaged Rutan & Tucker, LLP (“Rutan”) as its general counsel and entered a Legal Services Agreement (the “Agreement”). Exhibit “C” to the Agreement is the Fee Schedule outlining rates for the 2018-2019 Fiscal Year. As the Agreement authorizes annual increases (based on the Consumer Price Index [“CPI”]), the rates have generally increased annually since that time. The proposed amendment to the Agreement would update the Fee Schedule to reflect the rates currently in effect and would amend the Fee Schedule to allow Rutan to charge standard design rates for legal work that is reimbursed by third parties on large development projects. The proposed amendment would not make any other changes to the Agreement.
RECOMMENDATION
Recommended Action
Staff recommends the City Council authorize the Mayor to execute the proposed Second Amendment to the Legal Services Agreement between the City of Claremont and Rutan & Tucker, LLP to update the fee schedule to reflect rates currently in effect.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Do not approve the proposed Second Amendment to the Legal Services Agreement.
B. Direct the City Manager to make changes to the proposed Second Amendment to the Legal Services Agreement.
FINANCIAL REVIEW
The proposed amendment to the Agreement would not change the monthly retainer nor the rates for legal services charged to the City or to applicants who are not large developers.
The costs to research this issue, prepare documentation and complete this report are estimated to be $500. These costs are in staff time and are included in the operating budget of the Administrative Services Department.
ANALYSIS
After receiving requests for proposals (RFPs) from eleven firms and interviewing seven of those firms, the City Council selected Rutan & Tucker, LLP to serve as its general counsel. On March 13, 2018, the City and Rutan entered into a Legal Services Agreement that outlines the terms and conditions of this arrangement (the “Agreement”). On January 11, 2023, the City and Rutan extended the term of the Agreement to March 12, 2028. On April 9, 2024, the Parties amended the Agreement to allow the City Manager to designate a new Assistant City Attorney (because the designated Assistant City Attorney was retiring).
The proposed amendment would amend Exhibit “C” to the Agreement, which is the Agreement’s Fee Schedule. The Fee Schedule currently outlines the rates that were in effect for the 2018-19 Fiscal Year. Because Section 3.7.11 allows for automatic annual adjustments to rates based on CPI, the rates have generally increased annually since the Agreement was entered. The proposed amendment to the Agreement would update the Fee Schedule to reflect the rates currently in effect for 2024-25 and would amend the Fee Schedule to allow Rutan to charge standard design rates for legal work that is reimbursed by third parties on large development projects. Rutan’s standard design rates for work on large development projects currently range from $320 to $800 per hour, depending on the experience level of the attorney. Most design rates are in the $400 to $600 per hour range. The proposed amendment would not make any other changes to the Agreement.
LEGAL REVIEW
Because the City Attorney has a financial interest in the proposed amendment to her firm’s Legal Services Agreement, neither the City Attorney nor any other attorney at Rutan provided legal advice to the City on the proposed amendment. The City had the opportunity to consult with outside counsel on the proposed amendment.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Jamie Earl
Assistant City Manager
Attachment:
Proposed Second Amendment to Legal Services Agreement