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2200 - City Attorney Contracts - CurrentE10 BURKE, WILLIAMS d SORENSEN, LLP October 13, 2009 Jeffry B. Allred City Manager City of Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 Re: City of Rosemead City Attorney Services, Rosemead Community Development Commission Agency Counsel and Rosemead Housing Development Corporation General Counsel Retainer Agreement Dear Mr. Allred This letter is a written retainer agreement of the terms under which Burke, Williams & Sorensen, LLP ("Burke") has been retained by the City of Rosemead ("City") as its City Attorney (as described herein), by the Rosemead Community Development Commission ("CDC") to serve as its Agency General Counsel and the Rosemead Housing Development Corporation ("HDC") as its General Counsel. The City, HDC and the CDC are collectively referred to herein as "Client." California Business and Professions Code Section 6148 requires a written fee agreement between attorneys and their clients setting forth the scope of services and fees to be charged. When executed by you below and delivered to us, this agreement shall satisfy the requirements of Section 6148. This Agreement is intended to supercede any and all prior agreements between Client and Burke. If this agreement fully sets forth your understanding of the terms and conditions of our representation, please execute four copies and return one to the undersigned in the self-addressed envelope provided. The other three copies are to be retained by the City, HDC and the CDC. 1. Scope of Representation for the CDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the CDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on Redevelopment Projects and operation of the Agency, drafting of required legal documents, attendance at CDC meetings, prosecution of actions on behalf of the CDC to implement redevelopment projects undertaken by the CDC, or defend challenges to same and such other matters as the CDC may request from time to time. 2. Scope of Representation for the HDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the HDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on housing projects and operation of the HDC, drafting of required legal documents, attendance at HDC meetings, prosecution of actions on behalf of the HDC to implement projects undertaken by the HDC, or defend challenges to same and such other matters as the HDC may request from time to time. LA #4834-6153-6516 v1 3. Scope of Representation for the City. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the City of Rosemead as its City Attorney. Joseph Montes shall be the City's designated City Attorney. Rachel Richman shall be the City's designated Assistant City Attorney. Any change to the designation of the Assistant City Attorney shall require the written approval of the City Manager. In the absence of the City Attorney, the Assistant City Attorney may act on behalf of the City Attorney. The scope of Burke's representation of the City as City Attorney shall include, but not be limited to, Attend all regular meetings of the City Council and adjourned and special meetings of the City Council. b. Attend meetings of the Planning Commission. C. Attend other meetings of boards, commissions and committees of the City. Provide legal advice and opinions on all matters affecting the City, except when prevented from doing so by a conflict of interest. e. Prepare resolutions and ordinances initiated by the City. Prepare or review and certify as to legal form contracts, agreements and other documents between the City and other parties. Prepare or review and certify as to legal form contracts, agreements and other documents (i) for the acquisition or disposal of services, supplies, equipment or land by the City; or (ii) for public works or projects initiated by the City. Criminal prosecution of violations of City ordinances. Represent the City in civil litigation brought on behalf of, or against, the City, as directed by the City Council. Other duties as assigned by the City Manager or City Council. k. Prepare or review bond documents, as City Attorney. Should the City require services as bond counsel or disclosure counsel, such services shall be provided pursuant to separate agreement, at rates set forth in such other agreement. 4. Client's Obligations. Client agrees to be truthful, to cooperate, and to keep Burke advised of information and developments pertaining to this engagement. Client also agrees to keep Burke informed of Client's current address and telephone number and to pay the fees, costs and other sums incurred when due. p. 2 of 6 LA #4834-6153-6516 v1 5. Fees. Fees for this engagement are computed on an hourly basis in accordance with the rates assigned to the particular attorneys performing the work. The rates of the attorneys for this engagement will be as set forth on the attached Exhibit A. The firm's billing rates are subject to revision annually, starting January 1, 2010. If the increase is equal to or less than the Consumer Price Index for the prior 12 months, client will be notified in writing of such increase. Any increase greater than the CPI shall require written agreement by the Client. Burke reserves the right to forego any rate increase in any given year, provided that in subsequent years, Burke may increase rates by such deferred increase amount without further Client consent. Additionally, City, HDC and CDC agree that Burke may charge its standard private client (as opposed to public entity client) rates for work that is reimbursed by private parties pursuant to litigation, conditions of approval, etc. 6. Costs. Burke will bill Client for costs and expenses incurred in connection with this engagement. These currently include, but are not limited to, expenses away from the office on Client's behalf, automobile mileage at the standard rate for business use as announced from time to time by the Internal Revenue Service, the actual cost of other travel, long distance telephone charges, facsimile transmissions, computer research, copying charges, the cost of producing or reproducing photographs, documents or other things, filing fees, and similar expenses. 7. Billin . Burke's attorneys bill in 1/10th of one hour increments. The firm's billing cycle typically runs from the first day of the month to the last day of the month. The HDC, City and the CDC will each receive separate statements each month for services rendered and costs incurred during the immediately prior month. Bills are due and payable within thirty (30) days of presentation. Payment is not contingent upon any aspect of this engagement. 8. Experts. Should Burke deem it necessary to engage an expert in any matter, Client will be directly responsible for the hiring and payment of all fees for such expert services. Burke will not undertake to engage any such expert without prior consultation with Client and then only with Client's consent. 9. Attorney's Lien. Client agrees that Burke may deduct all fees and costs not previously paid from any sums coming into Burke's possession by way of settlement, judgment, execution or otherwise. 10. Conflicts. The California Rules of Professional Conduct, as promulgated by the California State Bar, require that an attorney receive informed written consent from a client prior to undertaking work where there is a potential for conflicts between existing or future clients (Rule 3-310). Should a potential conflict of interest requiring a written waiver from the City or CDC arise, the City Manager is authorized to execute such waiver on behalf of the City or CDC. 11. Document Retention. Client is entitled upon written request to any files in our possession relating to the legal services performed by us for Client, excluding our internal accounting records and other documents not reasonably necessary to your p. 3 of 6 LA #4834-6153-6516 v1 representation, subject to our right to make copies of any files withdrawn by you. Once your matter is concluded, we will close your file, and you will receive notice thereof. Your physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, we recommend that you request the return of your file at the conclusion of your matter. Please be advised that the firm will destroy Client's files at three years after this matter is closed, unless other arrangements are made with Client, and Client hereby authorizes the firm to do so. The firm and the Client agree that all Client-supplied materials and all attorney end product (referred to generally as "client material") are the property of the Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the Client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. 12. Fee Disputes. If a dispute between Client and Burke arises over fees or other amounts charged to Client for services, the controversy will be submitted to binding arbitration in accordance with the rules of the California State Bar Fee Arbitration Program, set forth in California Business and Professions Code, Sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party in such arbitration attorney's fees, costs and interest incurred. Any arbitration award may be served by mail upon either side and personal service shall not be required. 13. Termination of Representation. Client has the right to terminate Burke's services upon written notice at anytime. Burke also has the right to terminate this engagement to Client upon written notice in the event Client fails to make any payment when due, or to cooperate on a reasonable request, or in the event that Burke determines, that to continue services to Client would be unethical, impractical, or improper. 14. Notices. Any notices required under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended or if delivered at or sent by registered or certified mail, or overnight courier service with signature required from the receiving party, to the residential or business address of the party for whom intended, provided that notices to Client may be sent to Client's last known address as shown on Burke's records. 15. Miscellaneous. The effective date of this agreement shall be retroactive to the date Burke first performs services for Client. This agreement shall be governed by the laws of the State of California, without regard to the doctrine of conflicts of law. The terms of this engagement agreement are not set by law but are the result of negotiation between the parties. Client has the right to consult with another attorney regarding this agreement before signing it. This agreement constitutes the entire agreement between the parties. p. 4 of 6 LA #4834-6153-6516 v1 We are pleased that the City, HDC and the CDC have decided to retain our firm and we look forward to serving you. Please contact Joe Montes or the undersigned if, at anytime, you have questions. Very truly yours, BURKE, WILLIAMS~& SQORENSEN, LLP NG 12ARTNER I/we have read and understand the foregoing terms and provisions and agree to same as of October 13, 2009. CITY OF ROSEMEAD By: ~2)n~ Its: ROSEMEAD HOUSING DEVELOPMENT CORPORATION By: >99 n Li~ rem Its: ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION By: Its: LA #4834-6153-6516 v1 p. 5 of 6 p. 6 of 6 LA #4834-6153-6516 vi ROSEMEAD CITY COUNCIL STAFF REPORT TO: MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: October 13, 2009 SUBJECT: CITY ATTORNEY SERVICES AGREEMENT SUMMARY The City Council will consider approval of an agreement to retain the law firm of Burke, Williams & Sorenson as its City Attorney. Joseph Montes, with the firm of Burke, Williams & Sorenson, currently serves as the City Attorney on an "Interim" basis. The agreement essentially will remove the "Interim" designation and continue existing service levels and rates. So that all agreements with the firm of Burke, Williams & Sorenson are set forth in one place, the agreement also reiterates provisions of the existing agreement with the firm, under which Mr. Montes serves as General Counsel to the Rosemead Community Development Commission (CDC) and the Rosemead Housing Development Commission (HDC). The agreement provides the City with the right to terminate the services of the firm at any time upon written notice. Staff Recommendation Staff recommends that the City Council authorize the agreement to be executed by the Mayor, who also serves as the Chair of the CDC and HDC. ANALYSIS In March of 2009, Joseph Montes as a member of the firm of Burke, Williams & Sorenson, was retained as Interim City Attorney. Previously, Mr. Montes had been designated as the General Counsel of the CDC and HDC and has continued in those capacities since March. Since March of 2009, other members of the firm have also served in the capacity of Interim Assistant City Attorney providing legal services to the Planning Commission and other bodies. During these periods of service, Mr. Montes and the firm have performed admirably and gained the confidence of the City's elected and appointed officials. The current rate charged by Burke Williams & Sorenson for City Attorney/Assistant City Attorney services is a discounted $225 per hour, which is less than Mr. Montes' standard billing rate of $255 as a partner in the firm. ffEM NO. APPROVED FOR CITY COUNCIL AGENDA: City Council Meeting June 13, 2006 Pace 2 of 2 Burke Williams and Sorenson is a reputable firm with substantial resources serving many cities and redevelopment agencies. In the event of a potential conflict of interest with other entities represented by the firm, the City would have the ability to: a) retain special outside counsel for a particular issue; or, b) to issue a waiver if it is determined that a disclosed client relationship potential conflict will not adversely affect the interests of the City. Section 10 of the agreement authorizes the City Manager to execute a waiver in the event that potential exists for a conflict of interest. Joseph Montes has made the City aware that in August of 2009, an attorney who represents Walmart in employment litigation matters joined the firm of Burke Williams & Sorenson. While none of these Walmart matters relate to Rosemead or even to land use issues, the Rules of Professional Conduct require the firm to disclose its relationship with Walmart and obtain a written waiver from the City in the event of a conflict of interest. At this point in time, with the Walmart CUP review scheduled to return to the Planning Commission in November, Mr. Montes has requested the City Manager to execute a waiver to allow Burke Williams & Sorenson to represent the City with regard to issues that may arise pertaining to Walmart. Burke, Williams & Sorenson would not represent Walmart on issues involving Rosemead. FINANCIAL REVIEW (If Applicable) The costs to cover legal services have been programmed into the 2009-10 fiscal year budget.. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment: Letter of Agreement with Burke Williams & Sorenson for City Attorney and General Counsel Services O o° BURKE, WILLIAMS & SORENSEN, LLP Oliver Chi Interim City Manager City of Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 Re: City of Rosemead Special Counsel Services, Rosemead Community Development Commission Agency Counsel and Rosemead Housing Development Corporation General Counsel Retainer Agreement Dear Mr. Chi: This letter is a written retainer agreement of the terms under which Burke, Williams & Sorensen, LLP ('Burke") has been retained by the City of Rosemead ("City") for Special Counsel services (as described herein), by the Rosemead Community Development Commission ("CDC') to serve as its Agency General Counsel and the Rosemead Housing Development Corporation ("HDC") as its General Counsel. The City, HDC and the CDC are collectively referred to herein as "Client." California Business and Professions Code Section 6148 requires a written fee agreement between attorneys and their clients setting forth the scope of services and fees to be charged. When executed by you below and delivered to us, this agreement shall satisfy the requirements of Section 6148. If this agreement fully sets forth your understanding of the terms and conditions of our representation, please execute four copies and return one to the undersigned in the self-addressed envelope provided. The other three copies are to be retained by the City, HDC and the CDC. 1. Scope of Representation for the CDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the CDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on Redevelopment Projects and operation of the Agency, drafting of required legal documents, attendance at CDC meetings, prosecution of actions on behalf of the CDC to implement redevelopment projects undertaken by the CDC, or defend challenges to same and such other matters as the CDC may request from time to time. 2. Scope of Representation for the HDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the HDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on housing projects and operation of the HDC, drafting of required legal documents, attendance at HDC meetings, prosecution of actions on behalf of the HDC to implement projects undertaken by the HDC, or defend challenges to same and such other matters as the HDC may request from time to time. 3. Scope of Representation for the City. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the City of Rosemead as LA #4842-9634-9697 v1 • 0 our client with respect to Special legal services as described hereafter. Such special services shall include representation of the City with respect to land use, housing and economic development matters, and other matters as the City may request from time to time. It is anticipated that such special services may include, but not be limited to, advice on transactional matters, preparation of documents and agreements, drafting of legislation, attendance at City commission and Council meetings (as requested), defense of litigation and prosecution of litigation on behalf of the City. In its role as Special Counsel to the City, Burke agrees to coordinate with the City's City Attorney when appropriate to ensure the interests of the City are not compromised. 4. Client's Obligations. Client agrees to be truthful, to cooperate, and to keep Burke advised of information and developments pertaining to this engagement. Client also agrees to keep Burke informed of Client's current address and telephone number and to pay the fees, costs and other sums incurred when due. 5. Fees. Fees for this engagement are computed on an hourly basis in accordance with the rates assigned to the particular attorneys performing the work. The rates of the attorneys for this engagement will be $275.00 for partners and $225.00 per hour for associates and $150 per hour for paralegal and law clerk time. Notwithstanding the foregoing, Burke agrees that the first 15 hours of attorney time billed to the City each month, the first 15 hours of attorney time billed to the HDC each month and the first 15 hours of attorney time billed to the CDC each month shall be billed at the associate rate (currently $225) regardless of whether the work is performed by an associate or a partner. The firm's billing rates are subject to revision from time to time in the ordinary course of business, but under no circumstances will a rate increase for this engagement prior to January 1, 2008. Client will be notified in writing in the event of a rate increase. Additionally, City, HDC and CDC agree that Burke may charge its standard private client (as opposed to public entity client) rates for work that is reimbursed by private parties pursuant to litigation, conditions of approval, etc. 6. Costs. Burke will bill Client for costs and expenses incurred in connection with this engagement. These currently include, but are not limited to, expenses away from the office on Client's behalf, automobile mileage at the standard rate for business use as announced from time to time by the Internal Revenue Service, the actual cost of other travel, long distance telephone charges, facsimile transmissions, computer research, copying charges, the cost of producing or reproducing photographs, documents or other things, filing fees, and similar expenses. 7. Billing. Burke's attorneys bill in 1/10`h of one hour increments. The firm's billing cycle typically runs from the first day of the month to the last day of the month. The HDC, City and the CDC will each receive separate statements each month for services rendered and costs incurred during the immediately prior month. Bills are due and payable within thirty (30) days of presentation. Payment is not contingent upon any aspect of this engagement. 8. Experts. Should Burke deem it necessary to engage an expert in any matter, Client will be directly responsible for the hiring and payment of all fees for such LA #4842-9634-9697 v1 p. 2 of 5 expert services. Burke will not undertake to engage any such expert without prior consultation with Client and then only with Client's consent. 9. Attorney's Lien. Client agrees that Burke may deduct all fees and costs not previously paid from any sums coming into Burke's possession by way of settlement, judgment, execution or otherwise. 10. Conflicts. The California Rules of Professional Conduct, as promulgated by the California State Bar, require that an attorney receive informed written consent from a client prior to undertaking work where there is a potential for conflicts between existing or future clients (Rule 3-310). Burke represents numerous cities, school districts and public agencies which from time to time may be adverse to Client. By signing below, Client represents that it is fully informed regarding the potential conflict of interests between it and existing and future clients of the firm, and it waives all rights regarding such conflicts and consents to the firm's representation in this regard. 11. Document Retention. Client is entitled upon written request to any files in our possession relating to the legal services performed by us for Client, excluding our internal accounting records and other documents not reasonably necessary to your representation, subject to our right to make copies of any files withdrawn by you. Once your matter is concluded, we will close your file, and you will receive notice thereof. Your physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, we recommend that you request the return of your file at the conclusion of your matter. Please be advised that the firm will destroy Client's files at three years after this matter is closed, unless other arrangements are made with Client, and Client hereby authorizes the firm to do so. The firm and the Client agree that all Client-supplied materials and all attorney end product (referred to generally as "client material") are the property of the Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the Client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. 12. Fee Disputes. If a dispute between Client and Burke arises over fees or other amounts charged to Client for services, the controversy will be submitted to binding arbitration in accordance with the rules of the California State Bar Fee Arbitration Program, set forth in California Business and Professions Code, Sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party in such arbitration attorney's fees, costs and interest incurred. Any arbitration award may be served by mail upon either side and personal service shall not be required. 13. Termination of Representation. Client has the right to terminate Burke's services upon written notice at anytime. Burke also has the right to terminate this engagement to Client upon written notice in the event Client fails to make any payment LA #4842-9634-9697 v1 p. 3 of 5 • when due, or to cooperate on a reasonable request, or in the event that Burke determines, that to continue services to Client would be unethical, impractical, or improper. 14. Notices. Any notices required under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended or if delivered at or sent by registered or certified mail, or overnight courier service with signature required from the receiving party, to the residential or business address of the party for whom intended, provided that notices to Client may be sent to Client's last known address as shown on Burke's records. 15. Miscellaneous. The effective date of this agreement shall be retroactive to the date Burke first performs services for Client. This agreement shall be governed by the laws of the State of California, without regard to the doctrine of conflicts of law. The terms of this engagement agreement are not set by law but are the result of negotiation between the parties. Client has the right to consult with another attorney regarding this agreement before signing it. This agreement constitutes the entire agreement between the parties. We are pleased that the City, HDC and the CDC have decided to retain our firm and we look forward to serving you. Please contact Joe Montes or the undersigned if, at anytime, you have questions. Very truly yours, BURKE, WILLIAMS & SORENSEN, LLP JOHN J. WELSH MANAGING PARTNER I/we have read and understand the foregoing terms and provisions and agree to same as of the date Burke, Williams & Sorensen, LLP first provided services. CITY By: Its: Date: LA #4842-9634-9697 v1 p. 4 of 5 lJ ROSEMEAD By: Its: Date: ROSEMEAD By: Its: Date: 0 CORPORATION OMMISSION LA #4842-9634-9697 v1 p. 5 of 5 lJ COMMUNITY DEVELOPMENT COMMISSION STAFF REPORT TO: THE HONORABLE CHAIRMAN AND COMMISSIONERS FROM: OLIVER C. CHI, INTERIM EXECUTIVE DIRECTOR DATE: AUGUST 28, 2007 SUBJECT: CDC ATTORNEY CONTRACT AGREEMENT SUMMARY On April 3, 2007, the City Council hired Bonifacio "Bonny" Garcia of Garcia, Calderon, and Ruiz (GCR) to serve as Rosemead's official legal counsel. Later, on May 8, 2007, the Community Development Commission approved a contract agreement with GCR to perform legal counsel services for the City's redevelopment agency (Attachment A). At the August 14, 2007 Community Development Commission (CDC) meeting, Burke, Williams, & Sorensen (BSW) was hired to serve as both General Counsel to the Commission and also to provide legal services with respect to matters concerning land use, housing, and economic development. Furthermore, the Commission directed staff to negotiate a retainer agreement for BWS to provide such services (Attachment B). Under the new proposed contract with BWS, attorney fees will be billed $275 per hour for partners, $225 per hour for associates, and $150 per hour for paralegal and law clerk time for services rendered to the CDC. In addition, it is important to note that under the proposed agreement, the first 15 hours of attorney time charged to the CDC each month shall be billed at the associate rate of $225 regardless of whether the work is performed by an associate or a partner. Staff Recommendation Staff recommends that the Community Development Commission take the following action: • Terminate the agreement for CDC Attorney services with GCR (Attachment A). Approve the agreement for CDC Attorney services with BWS (Attachment B). PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A: GCR CDC Contract Agreement . Attachment B: Proposed BWS CDC Contract Agreement APPROVED FOR COMMUNITY DEVELOPMENT COMMISSION AGENDA: 0 Garcia Caldcrbn Ruiz MINAS gcr s AGREEMENT FOR COMMUNITY DEVELOPMENT COMMISSION ATTORNEY SERVICES THIS AGREEMENT, is made and entered into by and between the ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, a California public entity (hereinafter "CDC") and the law firm of GARCIA CALDERON RUIZ, LLP, a limited liability partnership (hereinafter "GCR") and shall be effective as ofthe date of GCR's retention by the CDC. In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby agreed, the parties agree as follows: SECTION 1. Recitals. This Agreement is made and entered into with respect to the following facts: A. CDC desires to engage the services of GCR to act as General Counsel and to perform all legal services which are needed by the CDC; and, B. GCR has agreed to provide such legal services, in the time, manner and for the compensation, as hereinafter set forth; and, C. That the CDC has heretofore determined that the public interest, convenience and necessity require the execution of this Agreement. SECTION 2. Legal Services. GCR shall perform the legal services necessary to serve the CDC which shall include, but are not limited to, the following: A. GCR shall attend all meetings of the CDC unless excused by the Chair of the CDC or the Executive Director, as well as attend any other meetings as so requested by the Chair of the CDC or the Executive Director; B. Provide legal advice and opinions on all matters affecting the CDC when requested by the Chair of the CDC or the Executive Director, and represent the CDC in administrative proceedings and litigation involving the CDC which may arise from those matters upon which such advice has been given; and, C. Prepare and approve as to legal form all resolutions, ordinances, contracts, agreements and other legal documents and represent the CDC in administrative proceedings and litigation involving the CDC which may arise from those matters upon which such advice has been given; and, GarcmCaldcr611 RuL ni.,,u ,,;,,,-,i„i",;,,, I:„ :.ivrlr_..hb.i niv ,n,i I ~.ni l;•c..ulibn ui.,'^li!I [.irz b•a_r„ihi::mi. °.tl GCR shall not be required to perform the services described above where to do so would be a conflict of interest pursuant to the State Bar Act. SECTION 3. Compensation. GCR shall be compensated by CDC for the performance of such services as follows: A. Basic Services. For basic legal services GCR shall be compensated for the services of General Counsel, including travel time, at the discounted and blended hourly rate of $215.00 for partners and associates, $150.00 per hour for law clerks, and $125.00 per hour for paralegals. B. Specialty Services. The rates set forth in sub-paragraph A above shall apply in all matters except for specialty services relating to public or municipal financing, . business and real estate, intellectual property, eminent domain, inverse condemnation, construction defect, or other construction related litigation matters. The attorney rates for these services will range from $205.00 to $225.00 per hour for associate attorneys and $235.00 to $295.00 per hour for partners, special counsel, of counsel, senior lawyers of the firm and lawyers with seven or more years of experience. C. The rate for Basic Services, as set forth in sub-paragraphs 3 A and B, above, shall be adjusted annually at the close of the CDC's fiscal year (June 30), by the increase in the Consumer Price Index ("CPI") by measuring the change in the CPI (measured from the average of the monthly increase in the calendar year preceding the conclusion of such fiscal year). The percentage increase in the CPI shall be determined through the use of the CPI publications of the Bureau of Labor Statistics, United States Department of Labor or its successor as published for Urban Wage Earners and Clerical Workers @, All Items @, Los Angeles County Area). In the event such CPI ceases to be published, the parties shall utilize such substitute index as common in the industry to measure cost of living increases. D. Legal Services for Bond and Financial Matters. For public finance, the fee structure for bond counsel services is one percent of the first $8 million executed and delivered; one-half percent of the next $4 million executed and delivered; and one- quarter percent of all amounts in excess of the first $12 million subject to a minimum fee of Sixty Thousand Dollars ($60,000.00). In the event that multiple series of bonds or notes are issued, the foregoing fee schedule would be applied to each issue, subject to the $60,000.00 minimum fee. Payment of the fees are entirely contingent upon the successful execution and delivery of the bonds or notes to be payable on or after delivery except for out-of-pocket expenses. The fee for disclosure counsel services is a flat fee of $40,000.00 per issuance under $5 million; $50,000.00 per issuance under $10 million; and $60,000.00 per issuance over $10 million; provided that the transaction does not present any unusual disclosure concerns, such as previously undisclosed liabilities or prior failure of the issuer to comply with disclosure requirements for other financings. LA Doc. # 4816-5542-2977 1) Gai,aa(.ildcronftuiz ,,=,ia,:-:.i,...:..~.::,,'r::. .;~~.:.:::~.•a„t:~,,~:.~..,~.~-:,:::.. . .i 1 3u • 0 E. Reimbursable Expenses. GCR shall be entitled to reimbursement for all reasonable and necessary expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the Executive Director. Reimbursable expenses to which GCR shall be entitled shall include, but not be limited to, duplication costs, word processing costs, travel, telephone and telecommunications costs, extraordinary mail costs, messenger service, and other costs customarily made as a part of the performance of legal services by GCR. F. Payment for Services. GCR shall submit monthly statements to the CDC accounting for all services provided and costs incurred pursuant to the terms of this Agreement. Said statements shall clearly set forth by date the type of work performed, the time spent on a task and the attorney performing the task. Payment to GCR shall be made by CDC within thirty (30) days of receipt of the statement, except for those specific items on the billing which are contested or questioned and returned by CDC, with written explanation, within thirty (30) days of receipt of the statement. GCR shall provide to CDC a written response to any statement contested or questioned and further, upon request of CDC, provide CDC with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the CDC. SECTION 4. Term. The term of this Agreement shall commence on April 3, 2007 and shall continue thereafter unless terminated by either party hereto pursuant to the terms of this Agreement. The CDC may terminate this Agreement at any time. GCR may terminate this Agreement on the giving of thirty (30) days written notice to the CDC of such termination. GCR will comply with all obligations required of it pursuant to the State Bar Act in connection with such termination and the transition to replacement counsel. GCR shall be compensated for its services rendered through and including the effective date of such termination. SECTION 5. Document Retention. CDC is entitled, upon written request, to any files in our possession relating to the legal services performed by GCR for CDC, excluding our internal accounting records and other documents not reasonably necessary to CDC representation, subject to our right to make copies of any files withdrawn by CDC. Upon termination of services under the Agreement, GCR will close CDC's file. CDC's physical files may be sent to storage offsite, and thereafter there may be an administrative cost of retrieving them from storage. Thus, GCR recommends that CDC request the return of CDC files if this Agreement is terminated. Under the GCR document retention policy, files are normally destroyed five years after a matter is closed, unless other arrangements are made with the client. GCR and CDC agree that all client-supplied materials and all attorney end produce (referred to generally as "client material") are the property of the CDC. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal LA Doc. # 4816-5542-2977 3 C:,ar:i: Caldcron Ruiz 10 0 memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. If services are terminated, GCR will notify the client of any client materials that remain in GCR's possession. The CDC will be invited to retrieve these materials within 45 days of notice, or the CDC may direct GCR to forward the materials to the CDC, at the CDC's expense. If within 45 days of this notice CDC fails to retrieve the materials or request GCR to forward them, the CDC authorizes GCR to destroy the client materials. After the 45-day period, GCR will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any CDC materials that remain with the firm. SECTION 6. Notices. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows: CDC: Rosemead Community Development Commission 8838 East Valley Boulevard Rosemead, California 91770 Attention: City Manager GCR: GARCIA CALDERON RUIZ, LLP 500 South Grand Avenue Suite 1310 Los Angeles, CA 90071 Attention: Bonifacio Bonny Garcia, Esq. Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notices 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 may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. SECTION 7. Indemnification. GCR does hereby agree to hold CDC, and its elected and appointed officers and officials, employees and other agents free and harmless from any claim, demand or judgment which may arise based upon personal injury or damage to property to a third party arising out of the performance of services by GCR hereto. SECTION 8. Insurance. Not in derogation of the provisions of Paragraph 7 hereof, GCR does hereby agree to take out and maintain in full force and effect under the terms of this Agreement the following insurance coverage: LA Doc. # 4816-5542-2977 4 GmruaCaldrrunRuia i"a,: r,,...." „.'nm M ."k, . i L~: lm.~ :,na `gnPi ''i ;w.',:d, gyn. •r'I^~ L ( hlr u.i.1 1511'. A. Such insurance coverage as is required pursuant to the Workers' Compensation Laws of the State of California; and, B. A liability policy with coverage of not less than $1,000,000.00; and, C. Professional Liability (errors and omissions) insurance in an amount of not less than $1,000,000.00. SECTION 9. General Provisions. A. GCR shall not assign this Agreement, or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that GCR is uniquely qualified to perform the services provided for in this Agreement. B. GCR is and shall at all times remain as to the CDC a wholly independent contractor. Neither the CDC nor any of its officers, employees, servants or agents shall have control over the conduct of GCR or any of GCR's officers, employees or agents. GCR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of the CDC. CDC acknowledges and agrees that the General Counsel, Assistant General Counsel and attorneys representing the CDC will need to represent to others their capacity and relationship to the CDC. C. In the performance of this Agreement, GCR shall not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry or religion of such persons. D. Nothing contained in this Agreement shall be deemed, construed or represented by the CDC or GCR to any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between.the CDC and GCR. E. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. F. Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. LA Doc. # 4816-5542-2977 C,araa Calderon Ruiz ,i~~. ill Al ~•.i::a.,.: 0 C G. 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. H. The law of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Los Angeles County, California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their representatives as follows: Dated: ~ . 10 Dated: /a [U~ LA Doc. # 4816-5542-2977 ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION By: Executive Director GARCIA CALDERON RUIZ, LLP A Limited, Liability Partnership 6 Garcia (sldcrun Ruiz Yll~ n:.:,,. . L,.,~: L... ~u:•: Il rni;i l'../ri :i .....':I ix'!.I'!1 F~ivl_i I:~nni: +'.alll 0 0 6URKE. 6VILLIAMS & SORENSEN, LLP Oliver Chi Interim City Manager City of Rosemead City Hall 8838 East Valley Boulevard Rosemead. CA 91770 Re: City of Rosemead Special Counsel Services, Rosemead Community Development Commission Agency Counsel and Rosemead Housing Development Corporation General Counsel Retainer Agreement Dear Mr. Chi This letter is a written retainer agreement of the terms under which Burke, Williams & Sorensen, LLP ('Burke") has been retained by the City of Rosemead ("City") for Special Counsel services (as described herein), by the Rosemead Community Development Commission ("CDC") to serve as its Agency General Counsel and the Rosemead Housing Development Corporation ("HDC") as its General Counsel. The City, HDC and the CDC are collectively referred to herein as "Client." California Business and Professions Code Section 6148 requires a written fee agreement between attorneys and their clients setting forth the scope of services and fees to be charged. When executed by you below and delivered to us, this agreement shall satisfy the requirements of Section 6148. If this agreement fully sets forth your understanding of the terms and conditions of our representation, please execute four copies and return one to the undersigned in the self-addressed envelope provided. The other three copies are to be retained by the City, HDC and the CDC. 1. Scope of Representation for the CDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the CDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on Redevelopment Projects and operation of the Agency, drafting of required legal documents, attendance at CDC meetings, prosecution of actions on behalf of the CDC to implement redevelopment projects undertaken by the CDC, or defend challenges to same and such other matters as the CDC may request from time to time. 2. Scope of Representation for the HDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the HDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on housing projects and operation of the HDC, drafting of required legal documents, attendance at HDC meetings, prosecution of actions on behalf of the HDC to implement projects undertaken by the HDC, or defend challenges to same and such other matters as the HDC may request from time to time. 3. Scope of Representation for the City. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the City of Rosemead as LA #4842-9634-9697 v1 our client with respect to Special legal services as described hereafter. Such special services shall include representation of the City with respect to land use, housing and economic development matters, and other matters as the City may request from time to time. It is anticipated that such special services may include, but not be limited to, advice on transactional matters, preparation of documents and agreements, drafting of legislation, attendance at City commission and Council meetings (as requested), defense of litigation and prosecution of litigation on behalf of the City. In its role as Special Counsel to the City, Burke agrees to coordinate with the City's City Attorney when appropriate to ensure the interests of the City are not compromised. 4. Client's Obligations. Client agrees to be truthful, to cooperate, and to keep Burke advised of information and developments pertaining to this engagement. Client also agrees to keep Burke informed of Client's current address and telephone number and to pay the fees, costs and other sums incurred when due. 5. Fees. Fees for this engagement are computed on an hourly basis in accordance with the rates assigned to the particular attorneys performing the work. The rates of the attorneys for this engagement will be $275.00 for partners and $225.00 per hour for associates and $150 per hour for paralegal and law clerk time. Notwithstanding the foregoing, Burke agrees that the first 15 hours of attorney time billed to the City each month, the first 15 hours of attorney time billed to the HDC each month and the first 15 hours of attorney time billed to the CDC each month shall be billed at the associate rate (currently $225) regardless of whether the work is performed by an associate or a partner. The firm's billing rates are subject to revision from time to time in the ordinary course of business, but under no circumstances will a rate increase for this engagement prior to January 1, 2008. Client will be notified in writing in the event of a rate increase. Additionally, City, HDC and CDC agree that Burke may charge its standard private client (as opposed to public entity client) rates for work that is reimbursed by private parties pursuant to litigation, conditions of approval, etc. 6. Costs. Burke will bill Client for costs and expenses incurred in connection with this engagement. These currently include, but are not limited to, expenses away from the office on Client's behalf, automobile mileage at the standard rate for business use as announced from time to time by the Internal Revenue Service, the actual cost of other travel, long distance telephone charges, facsimile transmissions, computer research, copying charges, the cost of producing or reproducing photographs, documents or other things, filing fees, and similar expenses. 7. Billing. Burke's attorneys bill in 1/10`" of one hour increments. The firm's billing cycle typically runs from the first day of the month to the last day of the month. The HDC, City and the CDC will each receive separate statements each month for services rendered and costs incurred during the immediately prior month. Bills are due and payable within thirty (30) days of presentation. Payment is not contingent upon any aspect of this engagement. 8. Experts. Should Burke deem it necessary to engage an expert in any matter, Client will be directly responsible for the hiring and payment of all fees for such LA 114842-9634-9697 v1 p. 2 of 5 expert services. Burke will not undertake to engage any such expert without prior consultation with Client and then only with Client's consent. 9. Attorney's Lien. Client agrees that Burke may deduct all fees and costs not previously paid from any sums coming into Burke's possession by way of settlement, judgment, execution or otherwise. 10. Conflicts. The California Rules of Professional Conduct, as promulgated by the California State Bar, require that an attorney receive informed written consent from a client prior to undertaking work where there is a potential for conflicts between existing or future clients (Rule 3-310). Burke represents numerous cities, school districts and public agencies which from time to time may be adverse to Client. By signing below, Client represents that it is fully informed regarding the potential conflict of interests between it and existing and future clients of the firm, and it waives all rights regarding such conflicts and consents to the firm's representation in this regard. 11. Document Retention. Client is entitled upon written request to any files in our possession relating to the legal services performed by us for Client, excluding our internal accounting records and other documents not reasonably necessary to your representation, subject to our right to make copies of any files withdrawn by you. Once your matter is concluded, we will close your file, and you will receive notice thereof. Your physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, we recommend that you request the return of your file at the conclusion of your matter. Please be advised that the firm will destroy Client's files at three years after this matter is closed, unless other arrangements are made with Client, and Client hereby authorizes the firm to do so. The firm and the Client agree that all Client-supplied materials and all attorney end product (referred to generally as "client material") are the property of the Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the Client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. 12. Fee Disputes. If a dispute between Client and Burke arises over fees or other amounts charged to Client for services, the controversy will be submitted to binding arbitration in accordance with the rules of the California State Bar Fee Arbitration Program, set forth in California Business and Professions Code, Sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party in such arbitration attorney's fees, costs and interest incurred. Any arbitration award may be served by mail upon either side and personal service shall not be required. 13. Termination of Representation. Client has the right to terminate Burke's services upon written notice at anytime. Burke also has the right to terminate this engagement to Client upon written notice in the event Client fails to make any payment LA #4842-9634-9697 v1 p. 3 of 5 U 9 when due, or to cooperate on a reasonable request, or in the event that Burke determines, that to continue services to Client would be unethical, impractical, or improper. 14. Notices. Any notices required under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended or if delivered at or sent by registered or certified mail, or overnight courier service with signature required from the receiving party, to the residential or business address of the party for whom intended, provided that notices to Client may be sent to Client's last known address as shown on Burke's records. 15. Miscellaneous. The effective date of this agreement shall be retroactive to the date Burke first performs services for Client. This agreement shall be governed by the laws of the State of California, without regard to the doctrine of conflicts of law. The terms of this engagement agreement are not set by law but are the result of negotiation between the parties. Client has the right to consult with another attorney regarding this agreement before signing it. This agreement constitutes the entire agreement between the parties. We are pleased that the City, HDC and the CDC have decided to retain our firm and we look forward to serving you. Please contact Joe Montes or the undersigned if, at anytime, you have questions. Very truly yours, BURKE, WILLIAMS & SORENSEN, LLP JOHN J. WELSH MANAGING PARTNER I/we have read and understand the foregoing terms and provisions and agree to same as of the date Burke, Williams & Sorensen, LLP first provided services. CITY C By: Its: Date: LA #4842-9634-9697 V1 p. 4 of 5 • ROSEI By: Its: Date: ROSE By: Its: Date: 46 PORATI ON MISSION LA #4842-9634-9697 v1 p. 5 of 5 t~ 110 BURKE. VJILLIAMS & SORENSEN. LLP Oliver Chi Interim City Manager City of Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 Re: City of Rosemead Special Counsel Services, Rosemead Community Development Commission Agency Counsel and Rosemead Housing Development Corporation General Counsel Retainer Agreement Dear Mr. Chi: This letter is a written retainer agreement of the terms under which Burke, Williams & Sorensen, LLP ('Burke") has been retained by the City of Rosemead ("City") for Special Counsel services (as described herein), by the Rosemead Community Development Commission ("CDC') to serve as its Agency General Counsel and the Rosemead Housing Development Corporation ("HDC) as its General Counsel. The City, HDC and the CDC are collectively referred to herein as "Client." California Business and Professions Code Section 6148 requires a written fee agreement between attorneys and their clients setting forth the'scope of services and fees to be charged. When executed by you below and delivered to us, this agreement shall satisfy the requirements of Section 6148. If this agreement fully sets forth your understanding of the terms and conditions of our representation, please execute four copies and return one to the undersigned in the self-addressed envelope provided. The other three copies are to be retained by the City, HDC and the CDC. 1. Scope of Representation for the CDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the CDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on Redevelopment Projects and operation of the Agency, drafting of required legal documents, attendance at CDC meetings, prosecution of actions on behalf of the CDC to implement redevelopment projects undertaken by the CDC, or defend challenges to same and such other matters as the CDC may request from time to time. 2. Scope of Representation for the HDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the HDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on housing projects and operation of the HDC, drafting of required legal documents, attendance at HDC meetings, prosecution of actions on behalf of the HDC to implement projects undertaken by the HDC, or defend challenges to same and such other matters as the HDC may request from time to time. 3. Scope of Representation for the City. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the City of Rosemead as LA #4842-9634-9697 v1 • our client with respect to Special legal services as described hereafter. Such special services shall include representation of the City with respect to land use, housing and economic development matters, and other matters as the City may request from time to time. It is anticipated that such special services may include, but not be limited to, advice on transactional matters, preparation of documents and agreements, drafting of legislation, attendance at City commission and Council meetings (as requested), defense of litigation and prosecution of litigation on behalf of the City. In its role as Special Counsel to the City, Burke agrees to coordinate with the City's City Attorney when appropriate to ensure the interests of the City are not compromised. 4. Client's Obligations. Client agrees to be truthful, to cooperate, and to keep Burke advised of information and developments pertaining to this engagement. Client also agrees to keep Burke informed of Client's current address and telephone number and to pay the fees, costs and other sums incurred when due. 5. Fees. Fees for this engagement are computed on an hourly basis in accordance with the rates assigned to the particular attorneys performing the work. The rates of the attorneys for this engagement will be $275.00 for partners and $225.00 per hour for associates and $150 per hour for paralegal and law clerk time. Notwithstanding the foregoing, Burke agrees that the first 15 hours of attorney time billed to the City each month, the first 15 hours of attorney time billed to the HDC each month and the first 15 hours of attorney time billed to the CDC each month shall be billed at the associate rate (currently $225) regardless of whether the work is performed by an associate or a partner. The firm's billing rates are subject to revision from time to time in the ordinary course of business, but under no circumstances will a rate increase for this engagement prior to January 1, 2008. Client will be notified in writing in the event of a rate increase. Additionally, City, HDC and CDC agree that Burke may charge its standard private client (as opposed to public entity client) rates for work that is reimbursed by private parties pursuant to litigation, conditions of approval, etc. 6. Costs. Burke will bill Client for costs and expenses incurred in connection with this engagement. These currently include, but are not limited to, expenses away from the office on Client's behalf, automobile mileage at the standard rate for business use as announced from time to time by the Internal Revenue Service, the actual cost of other travel, long distance telephone charges, facsimile transmissions, computer research, copying charges, the cost of producing or reproducing photographs, documents or other things, filing fees, and similar expenses. 7. Billin . Burke's attorneys bill in 1/10th of one hour increments. The firm's billing cycle typically runs from the first day of the month to the last day of the month. The HDC, City and the CDC will each receive separate statements each month for services rendered and costs incurred during the immediately prior month. Bills are due and payable within thirty (30) days of presentation. Payment is not contingent upon any aspect of this engagement. 8. Experts. Should Burke deem it necessary to engage an expert in any matter, Client will be directly responsible for the hiring and payment of all fees for such LA #4842-9634-9697 v1 p. 2 of 5 expert services. Burke will not undertake to engage any such expert without prior consultation with Client and then only with Client's consent. 9. Attorney's Lien. Client agrees that Burke may deduct all fees and costs not previously paid from any sums coming into Burke's possession by way of settlement, judgment, execution or otherwise. 10. Conflicts. The California Rules of Professional Conduct, as promulgated by the California State Bar, require that an attorney receive informed written consent from a client prior to undertaking work where there is a potential for conflicts between existing or future clients (Rule 3-310). Burke represents numerous cities, school districts and public agencies which from time to time may be adverse to Client. By signing below, Client represents that it is fully informed regarding the potential conflict of interests between it and existing and future clients of the firm, and it waives all rights regarding such conflicts and consents to the firm's representation in this regard. 11. Document Retention. Client is entitled upon written request to any files in our possession relating to the legal services performed by us for Client, excluding our internal accounting records and other documents not reasonably necessary to your representation, subject to our right to make copies of any files withdrawn by you. Once your matter is concluded, we will close your file, and you will receive notice thereof. Your physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, we recommend that you request the return of your file at the conclusion of your matter. Please be advised that the firm will destroy Client's files at three years after this matter is closed, unless other arrangements are made with Client, and Client hereby authorizes the firm to do so. The firm and the Client agree that all Client-supplied materials and all attorney end product (referred to generally as "client material") are the property of the Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the Client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. 12. Fee Disputes. If a dispute between Client and Burke arises over fees or other amounts charged to Client for services, the controversy will be submitted to binding arbitration in accordance with the, rules of the California State Bar Fee Arbitration Program, set forth in California Business and Professions Code, Sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party in such arbitration attorney's fees, costs and interest incurred. Any arbitration award may be served by mail upon either side and personal service shall not be required. 13. Termination of Representation. Client has the right to terminate Burke's services upon written notice at anytime. Burke also has the right to terminate this engagement to Client upon written notice in the event Client fails to make any payment LA #4842-9634-9697 v1 p. 3 of 5 C, when due, or to cooperate on a' reasonable request, or in the event that Burke determines, that to continue services to Client would be unethical, impractical, or improper. 14. Notices. Any notices required under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended or if delivered at or sent by registered or certified mail, or overnight courier service with signature required from the receiving party, to the residential or business address of the party for whom intended, provided that notices to Client may be sent to Client's last known address as shown on Burke's records. 15. Miscellaneous. The effective date of this agreement shall be retroactive to the date Burke first performs services for Client. This agreement shall be governed by the laws of the State of California, without regard to the doctrine of conflicts of law. The terms of this engagement agreement are not set by law but are the result of negotiation between the parties. Client has the right to consult with another attorney regarding this agreement before signing it. This agreement constitutes the entire agreement between the parties. We are pleased that the City, HDC and the CDC have decided to retain our firm and we look forward to serving you. Please contact Joe Montes or the undersigned if, at anytime, you have questions. Very truly yours, BURKE, WILLIAMS & SORENSEN, LLP JOHN J. WELSH MANAGING PARTNER I/we have read and understand the foregoing terms and provisions and agree to same as of the date Burke, Williams & Sorensen, LLP first provided services. CITY C By: Its: Date: LA #4842-9634-9697 vi p. 4 of 5 i • ROSEM By: _ Its: Date: HOUSING DEVE11OPMENT CORPORATION ROSE By: Its: Date: MISSION LA #4842-9634-9697 v1 p. 5 of 5 HOUSING DEVELOPMENT CORPORATION STAFF REPORT TO: THE HONORABLE PRESIDENT AND DIRECTORS FROM: OLIVER C. CHI, INTERIM EXECUTIVE DIRECTOR DATE: AUGUST 28, 2007 SUBJECT: HDC ATTORNEY CONTRACT AGREEMENT SUMMARY On April 3, 2007, the City Council hired Bonifacio "Bonny" Garcia of Garcia, Calderon, and Ruiz (GCR) to serve as Rosemead's official legal counsel. Later, on May 8, 2007, the Housing Development Corporation (HDC) approved a contract agreement with GCR to perform legal counsel services for the City's housing authority (Attachment A). At the August 14, 2007 Community Development Commission (CDC) meeting, Burke, Williams, & Sorensen (BSW) was hired to serve as both General Counsel to the CDC and also to provide legal services with respect to matters concerning land use, housing, and economic development. Furthermore, the Commission directed staff to negotiate a retainer agreement for BWS to provide such services (Attachment B). Under the new proposed contract with BWS, attorney fees will be billed $275 per hour for partners, $225 per hour for associates, and $150 per hour for paralegal and law clerk time for services rendered for the HDC. In addition, it is important to note that under the proposed agreement, the first 15 hours of attorney time charged to the HDC each month will be billed at the associate rate of $225 per hour, regardless of whether the work is performed by an associate or a partner. Staff Recommendation Staff recommends that the Housing Development Corporation take the following action: Terminate the agreement for HDC Attorney services with GCR (Attachment A). Approve the agreement for HDC Attorney services with BWS (Attachment B). PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A: GCR HDC Contract Agreement Attachment B: Proposed BWS HDC Contract Agreement APPROVED FOR HOUSING DEVELOPMENT CORPORATION AGENDA: (0- cgr C,ttciaC:alderGn}~ui7 C~y AGREEMENT FOR ROSEMEAD HOUSING DEVELOPMENT CORPORATION ATTORNEY SERVICES THIS AGREEMENT, is made and entered into by and between the ROSEMEAD HOUSING DEVELOPMENT CORPORATION, a California public entity (hereinafter "RHDC") and the law firm of GARCIA CALDERON RUIZ, LLP, a limited liability partnership (hereinafter "GCR") and shall be effective as of the date of GCR's retention by the RHDC. In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby agreed, the parties agree as follows: SECTION 1. Recitals. This Agreement is made and entered into with respect to the following facts: A. RHDC desires to engage the services of GCR to act as General Counsel and to perform all legal services which are needed by the RHDC; and, B- GCR has agreed to provide such legal services, in the time, manner and for the compensation, as hereinafter set forth; and, C. That the RHDC has heretofore determined that the public interest, convenience and necessity require the execution of this Agreement. SECTION 2. Legal Services. GCR shall perform the legal services necessary to serve the RHDC which shall include, but are not limited to, the following: A. GCR shall attend all meetings of the RHDC unless excused by the Chair of the RHDC or the Executive Director, as well as attend any other meetings as so requested by the Chair of the RHDC or the Executive Director; B. Provide legal advice and opinions on all matters affecting the RHDC when requested by the Chair of the RHDC or the Executive Director, and represent the RHDC in administrative proceedings and litigation involving the RHDC which may arise from those matters upon which such advice has been given; and, C. Prepare and approve as to legal form all resolutions, ordinances, contracts, agreements and other legal documents and represent the RHDC in administrative proceedings and litigation involving the RHDC which may arise from those matters upon which such advice has been given; and, C. arcia C:!Idcnin Ruiz a ,r. of d, it „a•..,.., . I...... -I ,.i.'i~o i,,,. d,.i. 1nr~ I. isininl Ci:•,.. i,i r' nei "_lil 'n. r:dno~ni.i'~rll; • i GCR shall not be required to perform the services described above where to do so would be a conflict of interest pursuant to the State Bar Act. SECTION 3. Compensation. GCR shall be compensated by RHDC for the performance of such services as follows: A. Basic Services. For basic legal services GCR shall be compensated for the services of General Counsel, including travel time, at the discounted and blended hourly rate of $215.00 for partners and associates, $150.00 per hour for law clerks, and $125.00 per hour for paralegals. B. Specialty Services. The rates set forth in sub-paragraph A above shall apply in all matters except for specialty services relating to public or municipal financing, business and real estate, intellectual property, eminent domain, inverse condemnation, construction defect, or other construction related litigation matters. The attorney rates for these services will range from $205.00 to $225.00 per hour for associate attorneys and $235.00 to $295.00 per hour for partners, special counsel, of counsel, senior lawyers of the firm and lawyers with seven or more years of experience. C. The rate for Basic Services, as set forth in sub-paragraphs 3 A and B, above, shall be adjusted annually at the close of the RHDC's fiscal year (June 30), by the increase in the Consumer Price Index ("CPI") by measuring the change in the CPI (measured from the average of the monthly increase in the calendar year preceding the conclusion of such fiscal year). The percentage increase in the CPI shall be determined through the use of the CPI publications of the Bureau of Labor Statistics, United States Department of Labor or its successor as published for Urban Wage Earners and Clerical Workers @, All Items @, Los Angeles County Area). In the event such CPI ceases to be published, the parties shall utilize such substitute index as common in the industry to measure cost of living increases. D. Legal Services for Bond and Financial Matters. For public finance, the fee structure for bond counsel services is one percent of the first $8 million executed and delivered; one-half percent of the next $4 million executed and delivered; and one- quarter percent of all amounts in excess of the first $12 million subject to a minimum fee of Sixty Thousand Dollars ($60,000.00). In the event that multiple series of bonds or notes are issued, the foregoing fee schedule would be applied to each issue, subject to the $60,000.00 minimum fee. Payment of the fees are entirely contingent upon the successful execution and delivery of the bonds or notes to be payable on or after delivery except for out-of-pocket expenses. The fee for disclosure counsel services is a flat fee of $40,000.00 per issuance under $5 million; $50,000.00 per issuance under $10 million; and $60,000.00 per issuance over $10 million; provided that the transaction does not present any unusual disclosure concerns, such as previously undisclosed liabilities or prior failure of the issuer to comply with disclosure requirements for other financings. LA Doc.4 4816-5542-2977 (7 1;J7 _M (-aldCI6)1 Ruiz AY.1 e„ I, 1 t a'. • E. Reimbursable Expenses. GCR shall be entitled to reimbursement for all reasonable and necessary expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the Executive Director. Reimbursable expenses to which GCR shall be entitled shall include, but not be limited to, duplication costs, word processing costs, travel, telephone and telecommunications costs, extraordinary mail costs, messenger service, and other costs customarily made as a part of the performance of legal services by GCR. F. Payment for Services. GCR shall submit monthly statements to the RHDC accounting for all services provided and costs incurred pursuant to the terms of this Agreement. Said statements shall clearly set forth by date the type of work performed, the time spent on a task and the attorney performing the task. Payment to GCR shall be made by RHDC within thirty (30) days of receipt of the statement, except for those specific items on the billing which are contested or questioned and returned by RHDC, with written explanation, within thirty (30) days of receipt of the statement. GCR shall provide to RHDC a written response to any statement contested or questioned and further, upon request of RHDC, provide RHDC with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the RHDC. SECTION 4. Term. The term of this Agreement shall commence on the date of GCR's appointment by the RHDC and shall continue thereafter unless terminated by either party hereto pursuant to the terms of this Agreement. The RHDC may terminate this Agreement at any time. GCR may te'rminate this Agreement on the giving of thirty (30) days written notice to the RHDC of such termination. GCR will comply with all obligations required of it pursuant to the State Bar Act in connection with such termination and the transition to replacement counsel. GCR shall be compensated for its services rendered through and including the effective date of such termination. SECTION 5. Document Retention. RHDC is entitled, upon written request, to any files in our possession relating to the legal services performed by GCR for RHDC, excluding our internal accounting records and other documents not reasonably necessary to RHDC representation, subject to our right to make copies of any files withdrawn by RHDC. Upon termination of services under the Agreement, GCR will close RHDC's file. RHDC's physical files may be sent to storage offsite, and thereafter there may be an administrative cost of retrieving them from storage. Thus, GCR recommends that RHDC request the return of RHDC files if this Agreement is terminated. Under the GCR document retention policy, files are normally destroyed five years after a matter is closed, unless other arrangements are made with the client. GCR and RHDC agree that all client-supplied materials and all attorney end produce (referred to generally as "client material") are the property of the RHDC. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal LA Doc. # 4816-5542-2977 3 Ganci Caldcrun Ruin ;u, • Ll memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. If services are terminated, GCR will notify the client of any client materials that remain in GCR's possession. The RHDC will be invited to retrieve these materials within 45 days of notice, or the RHDC may direct GCR to forward the materials to the RHDC, at the RHDC's expense. If within 45 days of this notice RHDC fails to retrieve the materials or request GCR to forward them, the RHDC authorizes GCR to destroy the client materials. After the 45-day period, GCR will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any RHDC materials that remain with the firm. SECTION 6. Notices. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows: RHDC: Rosemead Housing Development Corporation 8838 East Valley Boulevard Rosemead, California 91770. Attention: Executive Director GCR: GARCIA CALDERON RUIZ, LLP 500 South Grand Avenue Suite 1310 Los Angeles, CA 90071 Attention: Bonifacio Bonny Garcia, Esq. Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notices 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, may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. SECTION 7. Indemnification. GCR does hereby agree to hold RHDC, and its elected and appointed officers and officials, employees and other agents free and harmless from any claim, demand or judgment which may arise based upon personal injury or damage to property to a third party arising out of the performance of services by GCR hereto. SECTION 8. Insurance. Not in derogation of the provisions of Paragraph 7 hereof, GCR does hereby agree to take out and maintain in full force and effect under the terms of this Agreement the following insurance coverage: LA Doc. # 4816-5542-2977 Garcia Caldei6n Ruiz 4 L.. \n^ .:itl , .....Pi , Ui, •o ~.a _p~l i Iln., n, :,:Il; • • A. Such insurance coverage as is required pursuant to the Workers' Compensation Laws of the State of California; and, B. A liability policy with coverage of not less than $1,000,000.00; and, C. Professional Liability (errors and omissions) insurance in an amount of not less than $1,000,000.00. SECTION 9. General Provisions. A. GCR shall not assign this Agreement, or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that GCR is uniquely qualified to perform the services provided for in this Agreement. B. GCR is and shall at all times remain as to the RHDC a wholly independent contractor. Neither the RHDC nor any of its officers, employees, servants or agents shall have control over the conduct of GCR or any of GCR's officers, employees or agents. GCR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of the RHDC. RHDC acknowledges and agrees that the General Counsel, Assistant General Counsel and attorneys representing the RHDC will need to represent to others their capacity and relationship to the RHDC. C. In the performance of this Agreement, GCR shall not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry or religion of such persons. D. Nothing contained in this Agreement shall be deemed, construed or represented by the RHDC or GCR to any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between the RHDC.and_GCR. E. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. F. Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. LA Doc. # 4816-5542-2977 cTan11 C lldcl'oll Ruiz • • G. 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. H. The law of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Los Angeles County, California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their representatives as follows: ROSEMEAD HOUSING DEVELOPMENT CORPORATION Dated: May g, 2007 Dated: May_a, 2007 LA Doc. # 4816-5542-2977 By: (Q7 '--e- Executive Director 6 Cian.:a ('al icl iin Ruiz : ~,,.~:n: rn:, , i ~„,,.i.. •n:,: GARCIA CALDERON RUIZ, LLP A Limited Liability Partnership gcr Garcia Calderon Ruiz' a l imned li.lbilny y.u rnerxhip AGREEMENT FOR CITY ATTORNEY SERVICES THIS AGREEMENT, is made and entered into by and between the CITY OF ROSEMEAD, a California public entity, corporate and politic (hereinafter "City") and the law firm of GARCIA CALDERON RUIZ, LLP, a limited liability partnership (hereinafter "GCR") and shall be effective September 1, 2007. In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby agreed, the parties agree as follows: SECTION 1. Recitals. This Agreement is made and entered into with respect to the following facts: A. City desires to engage the services of GCR to act as City Attorney and to perform all legal services which are needed by the City; and, B. GCR has agreed to provide.such legal services, in the time, manner and for the compensation, as hereinafter set forth; and, C. That the City Council has heretofore determined that the public interest, convenience and necessity require the execution of this Agreement. SECTION 2. Legal Services. GCR shall perform the legal services necessary to serve the City which shall include, but are not limited to, the following: A. GCR shall attend all meetings of the City Council unless excused by the Mayor or the City Manager of the City, as well as attend any other meetings as so requested by the Mayor or the City Manager of the City; B. Provide legal advice and opinions on all matters affecting the City when requested by the City Council, Mayor, City Manager, or a Department Head of the City of Rosemead, and represent the City in administrative proceedings and litigation involving the City which may arise from those matters upon which such advice has been given; and, C. Prepare and approve as to legal form all resolutions, ordinances, contracts, agreements and other legal documents and represent the City in administrative proceedings and litigation involving the City which may arise from those matters upon which such advice has been given; and, Garda Calderon Ruiz 9IXI&n„6 CruuIA,v.. snim 1310 625 90O au So,nh n lmk,, Sn, n. Sun, 5W ii ~,.d u.bill.y l•ao, oe.d,~l, Lns Angeles, C.alilLmin 90171 Snn Di,gu. GJifornia 92101 San lose. Calif aniu 75113 GCR shall not be required to perform the services described above where to do so would be a conflict of interest pursuant to the State Bar Act. SECTION 3. Compensation. GCR shall be compensated by City for the performance of such services as follows: A. Monthly Retainer: The City shall compensate GCR a monthly retainer fee, exclusive of expenses, of Fifteen Thousand Dollars ($15,000.00) for seventy hours of coverage by the attorneys of the Firm at all meetings of the City Council, any meetings of other City commissions or agencies as requested by the City Manager or City Council, and the provision of routine City Attorney services in the following areas: Open government and ethics • Elections • Personnel and Human Resources • Municipal services and utilities Public contracting • Public property • Regulating businesses and personal conduct B. Basic Services. For hours of routine City Attorney services provided in excess of seventy hours GCR shall be compensated at the discounted and blended hourly rate of $210.00 for partners and associates and other attorneys serving with the GCR, $150.00 per hour for law clerks, and $125.00 per hour for paralegals. Such additional fees, exclusive of costs, shall not exceed $15,000.00 in any single'month. C., Extraordinary and Specialty Services: The monthly retainer fee and fees for Basic Services referenced in Sections 3A and 3B above shall not cover the handling of "extraordinary" matters. The term "extraordinary" shall include: • Public finance or bond counsel services • Litigation or preparation for litigation; • Court proceedings, arbitrations or hearings challenging the City Council's or City Manager's determinations with respect to public employee appointments, discipline, releases, or reassignments; LA Doc. # 4815-6330-2657 Garcia Caldcr6n Ruiz 2 5110$-W,(1wud Are., Ruiw 13110 62514rnaJw:rt, Sv im900 Ju Sum L.Vnrku Si,,o, S..m 51N) Ins AnF.d . Califoni, 9W7I San UicFn, (Affi,nia 92101 Smi k), e. (:Aito,nm 95113 • • California Department of Fair Housing and Employment or federal Equal Employment Opportunity Commission complaint or proceeding; • California Public Employee Relations Board or Office of Administrative Hearings complaint or proceeding; • Other administrative or fact-finding hearing or preparations for the foregoing; • Investigations of City personnel, consultants or vendors; • Investigation of any complaint or claim filed or threatened to be filed against the City; • Any collective bargaining; nor • Any other matter which the City Manager and City Attorney, or the City Council determine to be "extraordinary." The Monthly Retainer and Basic Services shall also not include "specialty" legal services which shall be defined as matters involving the handling of major business transactions, real estate, intellectual property, software, and or school financing, bid protests, eminent domain, inverse condemnation, construction defect or other construction related matters. The rates for extraordinary and specialty matters as set forth in sub-paragraph A above shall range from $205.00 to $225.00 per hour for associate attorneys and $235.00 to $295.00 per hour for partners, special counsel, of counsel, senior lawyers of the firm and lawyers with seven or more years of experience. D. The hours and amount of the Monthly Retainer, the rates and cap on fees for Basic Services, and the rates for Specialty Services as set forth in sub-paragraphs 3A, B and C, above, shall be adjusted annually at the close of the City of Rosemead's fiscal year (June 30), by the increase in the Consumer Price Index ("CPI") by measuring the change in the CPI (measured from the average of the monthly increase in the calendar year preceding the conclusion of such fiscal year). The percentage increase in the CPI shall be determined through the use of the CPI publications of the Bureau of Labor Statistics, United States Department of Labor or its successor as published for Urban Wage Earners and Clerical Workers @, All Items @, Los Angeles County Area @ (1982-84=100). In the event such CPI ceases to be published, the parties shall utilize such substitute index as common in the industry to measure cost of living increases. E. Legal Services for Bond and Financial Matters. For public finance, the fee structure for bond counsel services is one percent of the first $8 million executed and delivered; one-half percent of the next $4 million executed and delivered; and one- quarter percent of all amounts in excess of the first $12 million subject to a minimum fee of Sixty Thousand Dollars ($60,000.00). In the event that multiple series of bonds or LA Doc. # 4815-6330-2657 3 Garcia CaldcronRuiz 500wa,(;,,,,,In,-._sa 1511) 62.5 lw:y:•,an(xm uisunf\IxrkcrSwro.;un,!Rtl . i-i-d ,--16, Ins Angdm California 9(X171 wi Uicrn. Califo,.m 92101 S.nlow. Calitmida 95113 • • notes are issued, the foregoing fee schedule would be applied to each issue, subject to the $60,000.00 minimum fee. Payment of the fees are entirely contingent upon the successful execution and delivery of the, bonds or notes to be payable on or after delivery except for out-of-pocket expenses. The fee for disclosure counsel services is a flat fee of $40,000.00 per issuance under $5 million; $50,000.00 per issuance under $10 million; and $60,000.00 per issuance over $10 million; provided that the transaction does not present any unusual disclosure concerns, such as previously undisclosed liabilities or prior failure of the issuer to comply with disclosure requirements for other financings. F. Reimbursable Expenses. GCR shall be entitled to reimbursement for all reasonable and necessary expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the Executive Director. Reimbursable expenses to which GCR shall be entitled shall include, but not be limited to, duplication costs, word processing costs, travel, telephone and telecommunications costs, extraordinary mail costs, messenger service, and other costs customarily made as a part of the performance of legal services by GCR. G. Payment for Services. GCR shall submit monthly statements to the City accounting for all services provided and costs incurred pursuant to the terms of this Agreement. Said statements shall clearly set forth by date the type of work performed, the time spent on a task and the attorney performing the task. Payment to GCR shall be made by City within thirty (30) days of receipt of the statement, except for those specific items on the billing which are contested or questioned and returned by City, with written explanation, within thirty (30) days of receipt of the statement. GCR shall provide to City a written response to any statement contested or questioned and further, upon request of City, provide City with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the City. SECTION 4. Term. The term of this Agreement shall commence on September 1, 2007, shall supersede all prior written retainer agreements between the City and GCR, and shall'continue thereafter unless terminated by either party hereto pursuant to the terms of this Agreement. The City Council may terminate this Agreement at any time. GCR may terminate this Agreement on the giving of thirty (30) days written notice to the City of such termination. GCR will comply with all obligations required of it pursuant to the State Bar Act in connection with such termination and the transition to replacement counsel. GCR shall be compensated for its services rendered through and including the effective date of such termination. SECTION 5. Document Retention. City is entitled, upon written request, to any files in our possession relating to the legal services performed by GCR for City, excluding our internal accounting records and other documents not reasonably necessary to City representation, subject to our right to make copies of any files withdrawn by City. Upon termination of services under the Agreement, GCR will close LA Doc. k 4815-6330-2657 Garcia Calderon Ruiz . Ibn;i.,l 1"r,u... 4 500}ou 11, O<:vn I Are..S„i,, 1310 4751irnodw:l, Male 900 40 Sowk MarLoI Sm m. S,,m 51X1 In? A.Vd,s, (:nliC<ania 9(X171 San Dlcgn. Glifumis 92101 San loco, Calitirtnia95113 City's file. City's physical files may be sent to storage offsite, and thereafter there may be an administrative cost of retrieving them from storage. Thus, GCR recommends that City request the return of City files if this Agreement is terminated. Under the GCR document retention policy, files are normally destroyed five years after a matter is closed, unless other arrangements are made with the client. GCR and City agree that all client-supplied materials and all attorney end produce (referred to generally as "client material") are the property of the City. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. If services are terminated, GCR will notify the client of any client materials that remain in GCR's possession. The City will be invited to retrieve these materials within 45 days of notice, or the City may direct GCR to forward the materials to the City, at the City's expense. If within 45 days of this notice City fails to retrieve the materials or request GCR to forward them, the City authorizes GCR to destroy the client materials. After the 45-day period, GCR will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any City materials that remain with the firm. SECTION 6. The Garvey School District. GCR is aware, and has previously disclosed to the City, that the City is a party to litigation involving the Garvey School District ("District") regarding the City's granting of a conditional use permit for the development of a Wal-Mart store project. GCR is the General Counsel to the District. Neither GCR nor any of its attorneys have ever represented the District in the foregoing litigation, nor been privy to any attorney client privileged communication or attorney work product involving said litigation. Rule 3-310(C)-(F) of the California Rules of Professional Conduct provides as follows: (C) A member shall not, without the informed written of each client: (1) Accept representation of more than one client in a matter in which the interests of the clients potentially conflict; or (2) Accept or continue representation of more than one client in a matter in which the interests of the clients actually conflict; or LA Doc. # 4815-6330-2657 5 Garcia Calderon Ruiz 500 >.,:,a, r. dA s:d,e 131 6251tn,aau:q: Nd,r 1140 »o 4,:n6 Tlarkm Smrt. Svnc 51x7 1;....'..J - kil............ 0.", Ins Anyclrr. CaliCun,ia 9(NITI San Dkr,n. Ca1i(mi., 92101 Sanlou, C'lillrtni. 95113 • (3) Represent a client in a matter and at the same time in a separate matter accept as a client a person or entity whose interest in the first matter is adverse to the client in the first matter. (D) A member who represents two or more clients shall not enter into an aggregate settlement of the claims of or against the clients, without the informed written consent of each client. (E) A member shall not, without the informed written consent of the client or former client, accept employment adverse to the client or former client where, by reason of the representation of the client or former client, the member has obtained confidential information material to the employment. (F) A member shall not accept compensation for representing a client from one other than the client unless: (1) There is no interference with the member's independence of professional judgment or with the client-lawyer relationship; and (2) Information relating to representation of the client is protected as required by Business and Professions Code section 6068, subdivision (e); and (3) The member obtains the client's informed written consent, provided that no disclosure or consent is required if: (a) such nondisclosure is otherwise authorized by law, or (b) the member is rendering legal services on behalf of any public agency which provides legal services to other public agencies or the public. Rule 3-310 requires that California attorneys avoid representation of adverse interests concerning their clients without the informed written consent of the affected client. GCR does not believe that Rule 3-310 is applicable to the aforementioned LA Doc. H 4815-6330-2657 Garcia Caldcr6n Ruiz . ii o ...I :-IkilLV p..inn... I.1p 6 50 J.n11h Gmud Ac e.. $ui,a 13111 625ltmndu:g; Suim 900 4115am1, M.A" slx, eI, Sui,, 51X1 Ir,e Angeles. (;alifirtnia'/(n)71 San Dig, t;;,liGm,ie 92101 Jan lout C.diGrcnia 95113 0 litigation between the City and the District because GCR nor any of its attorneys have ever been involved in that litigation in the past nor shall they be in the future. SECTION 7. Notices. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows: CITY: City of Rosemead 8838 East Valley Boulevard Rosemead, California 91770 Attention: City Manager GCR: GARCIA CALDERON RUIZ, LLP 500 South Grand Avenue Suite 1100 Los Angeles, CA 90071 Attention: Bonifacio Bonny Garcia, Esq. Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notices 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 may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. SECTION 8. Indemnification. GCR does hereby agree to hold City, and its elected and appointed officers and officials, employees and other agents free and harmless from any claim, demand or judgment which may arise based upon personal injury or damage to property to a third party arising out of the performance of services by GCR hereto. SECTION 9. Insurance. Not in derogation of the provisions of Paragraph 7 hereof, GCR does hereby agree to take out and maintain in full force and effect under the terms of this Agreement the following insurance coverage: A. Such insurance coverage as is required pursuant to the Workers' Compensation Laws of the State of California; and, B. A liability policy with coverage of not less than $1,000,000.00; and, C. Professional Liability (errors and omissions) insurance in an amount of not less than $1,000,000.00. LA Doc. # 4815-6330-2657 Garcia Caldcr6n Ruiz . ❑.J•.d :ial•i Gip p+n ordip 7 5101I,whfhmu l ,l.r„Suiu 13111 625 ltn rndua}', Suilr'X10 311 Gnnh ALA,, S,n,,%S,,i,, 5W In, Aneulc., l;nliGrtnia 71X171 Snn Dicgo. Culifandu'12101 San lom Gdiflrtnia 75113 0 SECTION 10. General Provisions. A. GCR shall not assign this Agreement, or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that GCR is uniquely qualified to perform the services provided for in this Agreement. B. GCR is and shall at all times remain as to the City a wholly independent contractor. Neither the City nor any of its officers, employees, servants or agents shall have control over the conduct of GCR or any of GCR's officers, employees or agents. GCR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of the City. City acknowledges and agrees that the General Counsel, Assistant General Counsel and attorneys representing the City will need to represent to others their capacity and relationship to the City. C. In the performance of this Agreement, GCR shall not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry or religion of such persons. D. Nothing contained in this Agreement shall be deemed, construed or represented by the City or GCR to any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between the City and GCR. E. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. F. Should interpretation of this Agreement, or any, portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. G. 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. H. The law of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Los Angeles County, California. 1A Doc. q 4815 6330-2657 Garcia Caldcr6n Ruiz a Ii. ;-d lie Filiiv p. nn... File 8 5005„wh Grand Anv., S, im 13111 63i lirvuulwa~~, roil'- W, .1114unh ANA" So-rr,, iuin: 5X1 I.op Angdm Cnlili¢nia 7(X171 S. i 17icgn, Calif rani, 72101 Fan I'm, Calif nvila 95113 IN WITNESS. WHEREOF, the parties hereto have caused this Agreement to be executed by their representatives as follows: CITY of ROSEMEAD Dated: August _ 2007 Dated: August, 2007 LA Doc. # 4815-6330-2657 By. Interim City Manager GARCIA CALDERON RUIZ, LLP A LimiNd LiabilityRartnership 9 Garcia Calderon Ruiz 500"~ o,nhC,;,.,ddvr..sni,r1310 625 900 JoSo... h'%A" nrc,,s..ae51H, Ii ..d-1 i:, 1.d:........ -d..r Ins Augdm C.A6.m., NK171 San Diern. C. omia 92101 Santroce. Ca1if... 175113 rF Cr Garcia Calderon Ruiz , L a liroited IixFilitp partnarxhip f REQUEST FOR QUALIFICATIONS FOR AGENCY COUNSEL FOR THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION 1.0 PURPOSE AND INTENT The Rosemead Community Development Commission by means of this Request for Qualifications is soliciting responses from qualified firms interested in performing as Agency Counsel to the Commission. The firm selected will be engaged for a term of up to one (1) year, commencing with the date of appointment which is expected to be on or about July 17, 2007. The Commission reserves the right to extend the term of engagement. 2.0 RESPONSE SUBMISSION Nine (9) copies of the response must be submitted marked Rosemead Community Development Commission and addressed to: Bonifacio Bonny Garcia Garcia Calderon Ruiz, LLP 500 S. Grand Avenue Suite 1100 Los Angeles, California 90071 (213) 347-0210 Responses must be received by Wednesday, July 11, 2007 at 5:00 p.m. Responses received after the time and date listed above will not be considered. gcr The Commission will not be responsible for any expenses in the preparation and/or presentation of the responses and oral interviews, if any. The Commission reserves the right to request additional information if necessary, or to request an interview with fine(s), or to reject any and all responses with or without cause. The Commission further reserves the right to make such investigations as it deems necessary as to the qualifications of any and all firms submitting responses. In the event that all responses are rejected, the Commission reserves the right to re-solicit responses. Garcia Calderon Ruiz lied ❑,hiury parnn..ahip 500 South Grand Ate., Suire 1100 Los Angeles, Califomia 90071 t. 213.347.0210 f 213.347-0216 625 Broadway, Suire 900 San Diego. California 92101 r. 619.564.8400 f. 619.564.8404 40 South Marker Srreer, Suire 500 San Jose, California 95113 t. 408.298.7400 f. 408.298.7404 • • Each responding firm assumes sole responsibility for the complete effort required in the RFQ. No special consideration shall be given after responses are opened on account of a firm's failure to be knowledgeable about all requirements of this RFQ. Documents and information submitted in response to this RFQ shall become the property of the Commission and shall be available to the general public as required by applicable law. The Commission reserves the right to hold oral interviews with any or all of the firms submitting a response. 3.0 QUESTIONS AND ANSWERS The Commission will accept questions regarding any aspect of this RFQ via e- mail only until 5:00 p.m. on July 11, 2007 from all potential firms. Questions should be directed via e-mail to: Bonifacio Bonny Garcia Garcia Calderon Ruiz, LLP bgarcia@gcrlegal.com 4.0 INSTRUCTIONS FOR SUBMITTING A RESPONSE The firm shall describe its approach and plans for accomplishing the work outlined in the Scope of Services attached hereto as Attachment #1. The Response must consist of the following: A. Cover Letter; B. References; C. Description of Firm's Prior Experience, including California Redevelopment law and Similar Experience; D. Key Attorney List; E. Resumes of Key Attorneys; F. Potential Conflicts of Interest; and G. A Retainer Agreement which the responding firm proposes to submit for approval by the Commission. All of the above items must be addressed in the Response in the same order as stated above. The Response should be submitted on 8 '/z by 11 inch pages. A more detailed description of the items required in the Response follows: ar. r 4.0. A. Cover Letter The firm must include a cover letter which indicates the full name and address of the firm and the branch office location (if any) that will perform the services described in Garcia Calderon Ruiz a Ii in i -J Iia hi li[Y pa ....hip 500 South Grand Ave, Suite 1100 Los Angeles, California 90071 t. 213.347.0210 f. 213.347-0216 625 Broadway, Suite 900 San Diego, California 92101 r. 619.564.8400 f 619.564.8404 40 South Market Street, Suite 500 San Jos,,, California 95113 t. 408.298.7400 f.. 408.298.7404 • • qcr this RFQ. The firm must indicate the name and contact information for the individual who will be the senior contact person for the responding firm for this engagement. 4.0. B. References The firm must provide at least three (3) client-references with contact names and telephone numbers. 4.0. C. Description of Firm's Prior Experience, including California Redevelopment Law and Similar Experience The firm shall provide a description of those projects which demonstrate the firm's prior experience with California Redevelopment Law and Health & Safety Code Section 33000. Special consideration will be given to firms with substantial and comprehensive experience in preparing and negotiating development agreements, California eminent domain and condemnation law, municipal finance law and practice, land use law, zoning and affordable housing. The description of prior experience should include a demonstration of the firm's experience with affordable housing requirements as well as all of the above-referenced areas of practice 4.0. D Key Attorney Member List For the purposes of this RFQ, a "Key Attorney" is a principal, partner or attorney of the firm, with a responsible role in the provision of the services requested pursuant to this RFQ. The responding firm must list each Key Attorney and the approximate percentage of time each Key Attorney will spend on this engagement. 4.0. E. Resumes of Key Attorney Members A resume of each Key Attorney must be included as part of the Response. 4.0. F. Potential Conflicts of Interest The firm should set forth a summary, to the extent possible, of any and all potential conflicts of interest that firm anticipates during the term of the engagement. For each conflict identified, the firm should'provide its proposed solution. 4, O.G. Proposed Retainer Agreement Each responding firm must submit a retainer agreement setting forth all hourly rates, charges and terms and conditions which the responding firm proposes to submit for approval by the Commission. Garcia Calderon Ruiz limited liability pa„oerehlp 500 South Grand Ave., Suite 1100 Los Angeles, California 90071 t. 213.347.0210 f. 213.347-0216 625 Broadway, Suite 900 San Diego, California 92101 r. 619.564.8400 f. 619.564.8404 40 South Market Street, Suite 500 San Jose, California 95113 t. 408.298.7400 f. 408.298.7404 • ~cr 6.0 SELECTION PROCESS 6.1 All responses will be reviewed to determine responsiveness. Non-responsive responses will be rejected without evaluation. The Commission reserves the right to request clarifying information subsequent to submission of the response, if necessary. 6.2 The criteria used to evaluate Responses shall include, but not be limited to expertise, capacity, experience and personnel and may include the following evaluation criteria categories: (a) Finn's experience in successfully representing California agencies of a similar scope and size to that required by this RFQ; (b) Qualifications and experience of Key Attorney assigned to work with the Commission; (c) Overall quality of response to RFQ; and (d) Quality of oral interview, if any. 6.3 The evaluation will be based upon the information provided to the Commission in response to this RFQ and any necessary verification of such information provided thereof. 6.4 Notwithstanding anything to the contrary, the Commission has not obligation to make an award and reserves the right to waive any non-material defects, reject all Responses for any reason and terminate the selection process at any time. NetDoc.#4824-3374-0033 Garcia Calderon Ruiz -d liahlll,y p....~ereLip 500 South Grand Ave., Suite 1100 Los Angeles, California 90071 t. 213.3420210 E 213.347-0216 625 Broadway. Suite 900 San Diego, California 92101 r. 619.564.8400 E 619564.8404 40 South Marker Street, Suite 500 San Jose, California 95113 t. 408.298.7400 f. 408.298.7404 0 0 0 E M E, 5 ®v~ Q~Q CO RATED I ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER C. CHI, INTERIM CITY MANAGER a Ge-= DATE: AUGUST 28, 2007 SUBJECT: APPROVAL OF NEW LEGAL COUNSEL AGREEMENTS SUMMARY On April 3, 2007, the City Council hired Bonifacio "Bonny" Garcia of Garcia, Calderon, and Ruiz (GCR) to serve as Rosemead's official legal counsel. Later, on May 8, 2007, the City Council approved a contract agreement with GCR to perform legal counsel services for the City (Attachment A). At the August 14, 2007 Community Development Commission (CDC) meeting, Burke, Williams, & Sorensen (BWS) was hired to serve as both General Counsel to the Commission and also to provide legal services with respect to matters concerning land use, housing, and economic development. Furthermore, the Commission directed staff to negotiate a retainer agreement for BWS to provide such services. In addition, at the August 14, 2007 City Council meeting, staff was directed to negotiate a new retainer agreement with GCR to provide legal counsel services for the City. Under the new proposed contract with GCR (Attachment B), a monthly fixed retainer fee of $25,000 has been proposed for the firm to handle all routine City Attorney services. For "extraordinary" matters, an hourly fee of $205 - $235 has been proposed for associate attorneys and an hourly fee of $235 - $295 has been proposed for partners and senior lawyers of the firm. Under the new proposed contract with BWS (Attachment B), attorney fees will be billed $275 per hour for partners, $225 per hour for associates, and $150 per hour for paralegal and law clerk time for services rendered to the City as special legal counsel. In addition, it is important to note that under the proposed agreement, the first 15 hours of attorney time charged to the CDC each month shall be billed at the associate rate of $225 regardless of whether the work is performed by an associate or a partner. Staff Recommendation Staff recommends that the City Council take the following action: Terminate the existing agreement for City Attorney services with GCR (Attachment A) and approve the new proposed agreement for City Attorney services with GCR (Attachment B). Approve the agreement for Special Legal Services with BWS (Attachment C). O APPROVED FOR CITY COUNCIL AGENDA: 0 City Council Report August 28, 2007 Page 2 of 2 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Attachment A: GCR City Attorney Contract Agreement Attachment B: Proposed GCR City Attorney Contract Agreement Attachment C: Proposed BWS Special Legal Counsel For The City Contract Agreement • 0 RON& cr Garua Caldci'6n 1Zui AGREEMENT FOR CITY ATTORNEY SERVICES . THIS AGREEMENT, is made and entered into by and between the CITY OF ROSEMEAD, a California public entity, corporate and politic (hereinafter "City") and the law firm of GARCIA CALDERON RUIZ, LLP, a limited liability partnership (hereinafter "GCR") and shall be effective as of the date of GCR's retention by the City Council of the City of Rosemead. In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby agreed, the parties agree as follows: SECTION 1. Recitals. This Agreement is made and entered into with respect to the following facts: A. City desires to engage the services of GCR to act as City Attorney and to perform all legal services which are needed by the City; and, B. GCR has agreed to provide such legal services, in the time, manner and for the compensation, as hereinafter set forth; and, C. That the City Council has heretofore determined that the public interest, convenience and necessity require the execution of this Agreement. SECTION 2. Legal Services. GCR shall perform the legal services necessary to serve the City which shall include, but are not limited to, the following: A. GCR shall attend all meetings of the City Council and Planning Commission of the City unless excused by the Mayor or the City Manager of the City,, as well as attend any other meetings as so requested by the Mayor or the City Manager of the City; B. Provide legal advice and opinions on all matters affecting the City when requested by the City Council, Mayor, City Manager, or a Department Head of the City of Rosemead, and represent the City in administrative proceedings and litigation involving the City which may arise from those matters upon which such advice has been given; and, _ C. _ Prepare and approve as to legal form all resolutions, ordinances, contracts, agreements and other legal documents and represent the City in administrative proceedings and litigation involving the City which may arise from those matters upon which such advice has been given; and, Gnivi,i Udd(:rdn Ruiz .....a,,.,„I v.... uluu a„,.I•..,_,. ,I,n, ,_-a.,t., .1,,,. ..Ii-_ .b. i.,t .i..,. L.. \q II nu oui'I i'c .I ioi Jul .,:u :olll,i ia9.-:I I? • • GCR shall not be required to perform the services described above where to do so would be a conflict of interest pursuant to the State Bar Act. SECTION 3. Compensation. GCR shall be compensated by City for the performance of such services as follows: A. Monthly Retainer. The City shall compensate GCR a monthly retainer of Ten Thousand Dollars ($10,000.00). The monthly retainer shall include payment for the following legal services: 1. Attendance of an attorney at two regular City Council meetings per month; 2. Attendance of an attorney at two regular City Planning Commission meetings per month; 3. Six hours a week of attorney office hours at a location or locations designated by the City. B. Basic Services. For basic legal services not included in the foregoing monthly retainer, GCR shall be compensated for the services of City Attorney, including travel time, at the discounted and blended hourly rate of $210.00 for partners and associates, $150.00 per hour for law clerks, and $125.00 per hour for paralegals. C. Specialty Services. The rates set forth in sub-paragraph A above shall apply in all matters except for specialty services relating to public or municipal financing, business and real estate, intellectual property, eminent domain, inverse condemnation, construction defect, or other construction related litigation matters. The attorney rates for these services will range from $205.00 to $225.00 per hour for associate attorneys and $235.00 to $295.00 per hour for partners, special counsel, of counsel, senior lawyers of the firm and lawyers with seven or more years of experience. D. The rate for Basic Services, as set forth in sub-paragraphs 3 A and B, above, shall be adjusted annually at the close of the City of Rosemead's fiscal year (June 30), by the increase in the Consumer Price Index ("CPI") by measuring the change in the CPI (measured from the average of the monthly increase in the calendar year preceding the conclusion of such fiscal year). The percentage increase in the CPI shall be determined through the use of the CPI publications of the Bureau of Labor Statistics, United States Department of Labor or its successor as published for Urban Wage Earners and Clerical Workers @, All Items @, Los Angeles County Area @ (1982-84=100). In the event such CPI ceases to be published, the parties shall utilize such substitute index as common in the industry to measure cost of living increases. E. Legal Services for Bond and Financial Matters. For public finance, the fee structure for bond counsel services is one percent of the first $8 million executed and delivered; one-half percent of the next $4 million executed and delivered; and one- LA Doc. N 4818-3397-2353 Garcia Caldci6n KOIZ 2 • • quarter percent of all amounts in excess of the first $12 million subject to a minimum fee of Sixty Thousand Dollars ($60,000.00). In the event that multiple series of bonds or notes are issued, the foregoing fee schedule would be applied to each issue, subject to the $60,000.00 minimum fee. Payment of the fees are entirely contingent upon the successful execution and delivery of the bonds or notes to be payable on or after delivery except for out-of-pocket expenses. The fee for disclosure counsel services is a flat fee of $40,000.00 per issuance under $5 million; $50,000.00 per issuance under $10 million; and $60,000.00 per issuance over $10 million; provided that the transaction does not present any unusual disclosure concerns, such as previously undisclosed liabilities or prior failure of the issuer to comply with disclosure requirements for other financings. F. Reimbursable Expenses. GCR shall be entitled to reimbursement for all reasonable and necessary expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the Executive Director. Reimbursable expenses to which GCR shall be entitled shall include, but not be limited to, duplication costs, word processing costs, travel, telephone and telecommunications costs, extraordinary mail costs, messenger service, and other costs customarily made as a part of the performance of legal services by GCR. G. Payment for Services. GCR shall submit monthly statements to the City accounting for all services provided and costs incurred pursuant to the terms of this Agreement. Said statements shall clearly set forth by date the type of work performed, the time spent on a task and the attorney performing the task. Payment to GCR shall be made by City within thirty (30) days of receipt of the statement, except for those specific items on the billing which are contested or questioned and returned by City, with written explanation, within thirty (30) days of receipt of the statement. GCR shall provide to City a written response to any statement contested or questioned and further, upon request of City, provide City with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the City. SECTION 4. Term. The term of this Agreement shall commence on the date of GCR's appointment by the City Council, i.e. April 3, 2007, and shall continue thereafter unless terminated by either party hereto pursuant to the terms of this Agreement. The City Council may terminate this Agreement at any time. GCR may terminate this Agreement on the giving of thirty (30) days written notice to the City of such termination. GCR will comply with all obligations required of it pursuant to the State Bar Act in connection with such termination and the transition to replacement counsel. GCR shall be compensated for its services rendered through and including the effective date of such termination. SECTION 5. Document Retention. City is entitled, upon written request, to any files in our possession relating to the legal services performed by GCR for City, excluding our internal accounting records and other documents not reasonably LA Doc. # 4818-3397-2353 G;II is IH1716n IZIIi _.::.II iu. ..ll: e..,._. r r ,o:, I, I- '•n>r ;I.ru.:'vnfj • • necessary to City representation, subject to our right to make copies of any files withdrawn by City. Upon termination of services under the Agreement, GCR will close City's file. City's physical files may be sent to storage offsite, and thereafter there may be an administrative cost of retrieving them from storage. Thus, GCR recommends that City request the return of City files if this Agreement is terminated. Under the GCR document retention policy, files are normally destroyed five years after a matter is closed, unless other arrangements are made with the client. GCR and City agree that all client-supplied materials and all attorney end produce (referred to generally as "client material") are the property of the City. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. If services are terminated, GCR will notify the client of any client materials that remain in GCR's possession. The City will be invited to retrieve these materials within 45 days of notice, or the City may direct GCR to forward the materials to the City, at the City's expense. If within 45 days of this notice City fails to retrieve the materials or . request GCR to forward them, the City authorizes GCR to destroy the client materials. After the 45-day period, GCR will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any City materials that remain with the firm. SECTION 6. The Garvey School District. GCR is aware, and has previously disclosed to the City, that the City is a party to litigation involving the Garvey School District ("District") regarding the City's granting of a conditional use permit for the development of a Wal-Mart store project. GCR is the General Counsel to the District. Neither.GCR nor any of its attorneys have ever represented the District in the foregoing litigation, nor been privy to any attorney client privileged communication or attorney work product involving said litigation. : Rule 3-310(C)-(F) of the California Rules of Professional Conduct provides as follows: (C) A member shall not, without the informed written of each client: (1) Accept representation of more than one client in a matter in which the interests of the clients potentially conflict; or LA Doc. H 4818-3397-2353 Ulldcran Ruiz 4 (2) Accept or continue representation of more than one client in a matter in which the interests of the clients actually conflict; or (3) Represent a client in a matter and at the same time in a separate matter accept as a client a person or entity whose interest in the first matter is adverse to the client in the first matter. (D) A member who represents two or more clients shall not enter into an aggregate settlement of the claims of or against the clients, without the informed written consent of each client. (E) A member shall not, without the informed written consent of the client or former client, accept employment adverse to the client or former client where, by reason of the representation of the client or former client, the member has obtained confidential information material to the employment. (F) A member shall not accept compensation for representing a client from one other than the client unless: (1) There is no interference with the member's independence of professional judgment or with the client-lawyer relationship; and (2) Information relating to representation of the client is protected as required by Business and Professions Code section 6068, subdivision (e); and (3) The member obtains the client's informed written consent, provided that no disclosure or consent is required if: (a) such nondisclosure is otherwise authorized by law, or (b) the member is rendering legal services on behalf of any public agency which provides legal services to other public agencies or the public. LA Doc. # 4818-3397-2353 5 G; lcm Caldcrai Ruiz ;V. ; I..,,„!., ni..... :'^_I';I R:~.I r In•a nl:: iFlli • • Rule 3-310 requires that California attorneys avoid representation of adverse interests concerning their clients without the informed written consent of the affected client. GCR does not believe that Rule 3-310 is applicable to the aforementioned litigation between the City and the District because GCR nor any of its attorneys have ever been involved in that litigation in the past nor shall they be in the future. SECTION 7. Notices. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows: CITY: City of Rosemead 8838 East Valley Boulevard Rosemead, California 91770 Attention: City Manager GCR: GARCIA CALDERON RUIZ, LLP 500 South Grand Avenue Suite 1310 Los Angeles, CA 90071 Attention: Bonifacio Bonny Garcia, Esq. Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notices 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 may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. SECTION 8. Indemnification. GCR does hereby agree to hold City, and its elected and appointed officers and officials, employees and other agents free and harmless from any claim, demand or judgment which may arise based upon personal injury or damage to property to a third party arising out of the performance of services by GCR hereto. SECTION 9. Insurance. Not in derogation of the provisions of Paragraph 7 hereof, GCR does hereby agree to take out and maintain in full force and effect under the terms of this Agreement the following insurance coverage: A. Such insurance coverage as is required pursuant to the Workers' Compensation Laws of the State of California; and, B. A liability policy with coverage of not less than $1,000,000.00; and, LA Doc. N 4818-3397-2353 Garcia Galdcrdn Ruiz q. • C C. Professional Liability (errors and omissions) insurance in an amount of not less than $1,000,000.00. SECTION 10. General Provisions. A. GCR shall not assign this Agreement, or any of the rights, duties or obligations hereunder. It is understood and acknowledged by the parties that GCR is uniquely qualified to perform the services provided for in this Agreement. B. GCR is and shall at all times remain as to the City a wholly independent contractor. Neither the City nor any of its officers, employees, servants or agents shall have control over the conduct of GCR or any of GCR's officers, employees or agents. GCR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner employees of the City. City acknowledges and agrees that the General Counsel, Assistant General Counsel and attorneys representing the City will need to represent to others their capacity and relationship to the City. C. In the performance of this Agreement, GCR shall not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry or religion of such persons. D. Nothing contained in this Agreement shall be deemed, construed or represented by the City or GCR to any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between the City and GCR. E. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. F. Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was prepared by the parties jointly and equally, and shall not be interpreted against either party on the ground that the party prepared the Agreement or caused it to be prepared. G. 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. LA Doc. N 4818-3397-2353 u.: G . J1t r,., P..:,.. 4, Gan_ia ( Idcnin Ruiz :It V. - t . 1....: t. . .I n:;'v Fi I ]Iai L.L..,nv. 511:. 11 0 H. The law of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Los Angeles County, California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their representatives as follows: CITY of ROSEMEAD Dated: g O -4 By: City Man er GARCIA CALDERON RUIZ, LLP A Limited Liability Partnership Dated: 8 C~ By/ Bo Bo LA Doc. N 4818-3397-2353 8 GrIlcia C :31deriin Itui:: • EhOlEk2n ~J BURKE, WILLIAMS 6 SORENSEN, LLP Oliver Chi Interim City Manager City of Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 Re: City of Rosemead Special Counsel Services, Rosemead Community Development Commission Agency Counsel and Rosemead Housing Development Corporation General Counsel Retainer Agreement Dear Mr. Chi: This letter is a written retainer agreement of the terms under which Burke, Williams & Sorensen, LLP ('Burke") has been retained by the City of Rosemead ("City") for Special Counsel services (as described herein), by the Rosemead Community Development Commission ("CDC') to serve as its Agency General Counsel and the Rosemead Housing Development Corporation ("HDC) as its General Counsel. The City, HDC and the CDC are collectively referred to herein as "Client." California Business and Professions Code Section 6148 requires a written fee agreement between attorneys and their clients setting forth the scope of services and fees to be charged. When executed by you below and delivered to us, this agreement shall satisfy the requirements of Section 6148. If this agreement fully sets forth your understanding of the terms and conditions of our representation, please execute four copies and return one to the undersigned in the self-addressed envelope provided. The other three copies are to be retained by the City, HDC and the CDC. 1. Scope of Representation for the CDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the CDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on Redevelopment Projects and operation of the Agency, drafting of required legal documents, attendance at CDC meetings, prosecution of actions on behalf of the CDC to implement redevelopment projects undertaken by the CDC, or defend challenges to same and such other matters as the CDC may request from time to time. 2. Scope of Representation for the HDC. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the HDC as our client, as its General Counsel. Such representation includes, but is not limited to, providing advice on housing projects and operation of the HDC, drafting of required legal documents, attendance at HDC meetings, prosecution of actions on behalf of the HDC i' to implement projects undertaken by the HDC, or defend challenges to same and such other matters as the HDC may request from time to time. 3. Scope of Representation for the City. By this agreement, Burke, Williams & Sorensen LLP, has undertaken responsibility to represent the City of Rosemead as LA #4842-9634-9697 v1 • • our client with respect to Special legal services as described hereafter. Such special services shall include representation of the City with respect to land use, housing and economic development matters, and other matters as the City may request from time to time. It is anticipated that such special services may include, but not be limited to, advice on transactional matters, preparation of documents and agreements, drafting of legislation, attendance at City commission and Council meetings (as requested), defense of litigation and prosecution of litigation on behalf of the City. In its role as Special Counsel to the City, Burke agrees to coordinate with the City's City Attorney when appropriate to ensure the interests of the City are not compromised. 4. Client's Obligations. Client agrees to be truthful, to cooperate, and to keep Burke advised of information and developments pertaining to this engagement. Client also agrees to keep Burke informed of Client's current address and telephone number and to pay the fees, costs and other sums incurred when due. 5. Fees. Fees for this engagement are computed on an hourly basis in accordance with the rates assigned to the particular attorneys performing the work. The rates of the attorneys for this engagement will be $275.00 for partners and $225.00 per hour for associates and $150 per hour for paralegal and law clerk time. Notwithstanding the foregoing, Burke agrees that the first 15 hours of attorney time billed to the City each month, the first 15 hours of attorney time billed to the HDC each month and the first 15 hours of attorney time billed to the CDC each month shall be billed at the associate rate (currently $225) regardless of whether the work is performed by an associate or a partner. The firm's billing rates are subject to revision from time to time in the ordinary course of business, but under no circumstances will a rate increase for this engagement prior to January 1, 2008. Client will be notified in writing in the event of a rate increase. Additionally, City, HDC and CDC agree that Burke may charge its standard private client (as opposed to public entity client) rates for work. that is reimbursed by private parties pursuant to litigation, conditions of approval, etc. 6. Costs. Burke will bill Client for costs and expenses incurred in connection with this engagement. These currently include, but are not limited to, expenses away from the office on Client's behalf, automobile mileage at the standard rate for business use as announced from time to time by the Internal Revenue Service, the actual cost of other travel, long distance telephone charges, facsimile transmissions, computer research, copying charges, the cost of producing or reproducing photographs, documents or other things, filing fees, and similar expenses. 7. Billing. Burke's attorneys bill in 1/10th of one hour increments. The firm's billing cycle typically runs from the first day of the month to the last day of the month. The HDC, City and the CDC will each receive separate statements each month for services rendered and costs incurred during the immediately prior month. Bills are due and payable within thirty (30) days of presentation. Payment is not contingent upon any aspect of this engagement. 8. Experts. Should Burke deem it necessary to engage an expert in any matter, Client will be directly responsible for the hiring and payment of all fees for such LA #4842-9634-9697 v1 p. 2 of 5 • • expert services. Burke will not undertake to engage any such expert without prior consultation with Client and then only with Client's consent. 9. Attorney's Lien. Client agrees that Burke may deduct all fees and costs not previously paid from any sums coming into Burke's possession by way of settlement, judgment, execution or otherwise. s 10. Conflicts. The California Rules of Professional Conduct, as promulgated by the California State Bar, require that an attorney receive informed written consent from a client prior to undertaking work where there is a potential for conflicts between existing or future clients (Rule 3-310). Burke represents numerous cities, school districts and public agencies which from time to time may be adverse to Client. By signing below, Client represents that it is fully informed regarding the potential conflict of interests between it and existing and future clients of the firm, and it waives all rights regarding such conflicts and consents to the firm's representation in this regard. 11. Document Retention. Client is entitled upon written request to any files in our possession relating to the legal services performed by us for Client, excluding our internal accounting records and other documents not reasonably necessary to your representation, subject to our right to make copies of any files withdrawn by you. Once your matter is concluded, we will close your file, and you will receive notice thereof. Your physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, we recommend that you request the return of your file at the conclusion of your matter. Please be advised that the firm will destroy Client's files at three years after this matter is closed, unless other arrangements are made with Client, and Client hereby authorizes the firm to do so. The firm and the Client agree that all Client-supplied materials and all attorney end product (referred to generally as "client material") are the property of the Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the Client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. 12. Fee Disputes. If a dispute between Client and Burke arises over fees or other amounts charged to Client for services, the controversy will be submitted to binding arbitration in accordance with the rules of the California State Bar Fee Arbitration Program, set forth in California Business and Professions Code, Sections 6200 through 6206. The arbitrator or arbitration panel shall have the authority to award to the prevailing party in such arbitration attorney's fees, costs and interest incurred. Any arbitration award may be served by mail upon either side and personal service shall not be required. 13. Termination of Representation. Client has the right to terminate Burke's services upon written notice at anytime. Burke also has the right to terminate this engagement to Client upon written notice in the event Client fails to make any payment LA #4842-9634-9697 V1 p. 3 of 5 011 0 when due, or to cooperate on a reasonable request, or in the event that Burke determines, that to continue services to Client would be unethical, impractical, or improper. 14. Notices. Any notices required under this agreement shall be in writing and shall be deemed to have been duly served if delivered in person to the party for whom it is intended or if delivered at or sent by registered or certified mail, or overnight courier service with signature required from the receiving party, to the residential or business address of the party for whom intended, provided that notices to Client may be sent to Client's last known address as shown on Burke's records. 15. Miscellaneous. The effective date of this agreement shall be retroactive to the date Burke first performs services for Client. This agreement shall be governed by the laws of the State of California, without regard to the doctrine of conflicts of law. The terms of this engagement agreement are not set by law but are the result of negotiation between the parties. Client has the right to consult with another attorney regarding this agreement before signing it. This agreement constitutes the entire agreement between the parties. We are pleased that the City, HDC and the CDC have decided to retain our firm and we look forward to serving you. Please contact Joe Montes or the undersigned if, at anytime, you have questions. Very truly yours, BURKE, WILLIAMS & SORENSEN, LLP JOHN J. WELSH MANAGING PARTNER I/we have read and understand the foregoing terms and provisions and agree to same as of the date Burke, Williams & Sorensen, LLP first provided services. CITY OF OSEMEA~D / By: ~t Its: Date: LA #4842-9634-9697 v1 p. 4 of 5 ROSEMEAD HOUSING DEVELOPMENT CORPORATION By: Its: Date: ROSEMEAD ¢ MMUNITY DEVELOPMENT COMMISSION By: l/ Its: Date: LA #4842-9634-9697 vl p. 5 of 5 i • 0 gcr_ Garcia Calderon Ruiz a Iimir eA Ii ahilily parrnershil, 1 AGREEMENT FOR COMMUNITY DEVELOPMENT COMMISSION ATTORNEY SERVICES THIS AGREEMENT, is made and entered into by and between the ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION, a California public entity (hereinafter "CDC") and the law firm of GARCIA CALDERON RUIZ, LLP, a limited liability partnership (hereinafter "GCR") and shall be effective as of the date of GCR's retention by the CDC. In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration the receipt and sufficiency of which is hereby agreed, the parties agree as follows: SECTION 1. Recitals. This Agreement is made and entered into with respect to the following facts: A. CDC desires to engage the services of GCR to act as General Counsel and to perform all legal services which are needed by the CDC; and, B. GCR has agreed to provide such legal services, in the time, manner and for the compensation, as hereinafter set forth; and, C. That the CDC has heretofore determined that the public interest, convenience and necessity require the execution of this Agreement. SECTION 2. Legal Services. GCR shall perform the legal services necessary to serve the CDC which shall include, but are not limited to, the following: A. GCR shall attend all meetings of the CDC unless excused by the Chair of the CDC or the Executive Director, as well as attend any other meetings as so requested by the Chair of the CDC or the Executive Director; B. Provide legal advice and opinions on all matters affecting the CDC when requested by the Chair of the CDC or the Executive Director, and represent the CDC in administrative proceedings and litigation involving the CDC which may arise from those matters upon which such advice has been given; and, C. Prepare and approve as to legal form all resolutions, ordinances, contracts, agreements and other legal documents and represent the CDC in administrative proceedings and litigation involving the CDC which may arise from those , matters upon which such advice has been given; and, Garcia CaldcronRuiz 5WS,,wh(lSni,r1310 625 Nnr:vlwac,Svin•900 40 &vuhMn,h,,Snro,_S"m5W , I..,. P.J li.ktl.... 1, , I:s Angeles. I AiCnrnia 910171 San IJiugo, CAIfo,nu, 92 101 San lnec. Calill voie95115 GCR shall not be required to perform the services described above where to do so would be a conflict of interest pursuant to the State Bar Act. SECTION 3. Compensation. GCR shall be compensated by CDC for the performance of such services as follows: A. Basic Services. For basic legal services GCR shall be compensated for the services of General Counsel, including travel time, at the discounted and blended hourly rate of $215.00 for partners and associates, $150.00 per hour for law clerks, and $125.00 per hour for paralegals. B. Specialty Services. The rates set forth in sub-paragraph A above shall apply in all matters except for specialty services relating to public or municipal financing, business and real estate, intellectual property, eminent domain, inverse condemnation, construction defect, or other construction related litigation matters. The attorney rates for these services will range from $205.00 to $225.00 per hour for associate attorneys and $235.00 to $295.00 per hour for partners, special counsel, of counsel, senior lawyers of the firm and lawyers with seven or more years of experience. C. The rate for Basic Services, as set forth in sub-paragraphs 3 A and B, above, shall be adjusted annually at the close of the CDC's fiscal year (June 30), by the increase in the Consumer Price Index ("CPI") by measuring the change in the CPI (measured from the average of the monthly increase in the calendar year preceding the conclusion of such fiscal year). The percentage increase in the CPI shall be determined through the use of the CPI publications of the Bureau of Labor Statistics, United States Department of Labor or its successor as published for Urban Wage Earners and Clerical Workers @, All Items @, Los Angeles County Area). In the event such CPI ceases to be published, the parties shall utilize such substitute index as common in the industry to measure cost of living increases. D. Legal Services for Bond and Financial Matters. For public finance, the fee structure for bond counsel services is one percent of the first $8 million executed and delivered; one-half percent of the next $4 million executed and delivered; and one- quarter percent of all amounts in excess of the first $12 million subject to a minimum fee of Sixty Thousand Dollars ($60,000.00). In the event that multiple series of bonds or notes are issued, the foregoing fee schedule would be applied to each issue, subject to the $60,000.00 minimum fee. Payment of the fees are entirely contingent upon the successful execution and delivery of the bonds or notes to be payable on or after delivery except for out-of-pocket expenses. The fee for disclosure counsel services is a flat fee of $40,000.00 per issuance under $5 million; $50,000.00 per issuance under $10 million; and $60,000.00 per issuance over $10 million; provided that the transaction does not present any unusual disclosure concerns, such as previously undisclosed liabilities or prior failure of the issuer to comply with disclosure requirements for other financings. LA Doc. # 4816-5542-2977 Garcia Calderon Ruiz SuOS,nndhn~:~na ~,,m 17u1 0351+,~~~~a.~~.~~, 900 40 S,wdi ,\1;A,, Bv...... dl.500 . Ii"'.-Ii„i.w.. h...... .b,,, Ins,lgge.lcr, ~:aliGnuin 10171 San Di%,,. C,dif.. is 921 0 1 tip,e loxu. Caitmniu 95113 E. Reimbursable Expenses. GCR shall be entitled to reimbursement for all reasonable and necessary expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the Executive Director. Reimbursable expenses to which GCR shall be entitled shall include, but not be limited to, duplication costs, word processing costs, travel, telephone and telecommunications costs, extraordinary mail costs, messenger service, and other costs customarily made as a part of the performance of legal services by GCR. F. Payment for Services. GCR shall submit monthly statements to the CDC accounting for all services provided and costs incurred pursuant to the terms of this Agreement. Said statements shall clearly set forth by date the type of work performed, the time spent on a task and the attorney performing the task. Payment to GCR shall be made by CDC within thirty (30) days of receipt of the statement, except for those specific items on the billing which are contested or questioned and returned by CDC, with written explanation, within thirty (30) days of receipt of the statement. GCR shall provide to CDC a written response to any statement contested or questioned and further, upon request of CDC, provide CDC with any and all documents related to the service or costs. No charge shall be made for time expended in providing this information to the CDC. SECTION 4. Term. The term of this Agreement shall commence on April 3, 2007 and shall continue thereafter unless terminated by either party hereto pursuant to the terms of this Agreement. The CDC may terminate this Agreement at any time. GCR may terminate this Agreement on the giving of thirty (30) days written notice to the CDC of such termination. GCR will comply with all obligations required of it pursuant to the State Bar Act in connection with such termination and the transition to replacement counsel. GCR shall be compensated for its services rendered through and including the effective date of such termination. SECTION 5. Document Retention. CDC is entitled, upon written request, to any files in our possession relating to the legal services performed by GCR for CDC, excluding our internal accounting records and other documents not reasonably necessary to CDC representation, subject to our right to make copies of any files withdrawn by CDC. Upon termination of services under the Agreement, GCR will close CDC's file. CDC's physical files may be sent to storage offsite, and thereafter there may be an administrative cost of retrieving them from storage. Thus, GCR recommends that CDC request the return of CDC files if this Agreement is terminated. Under the GCR document retention policy, files are normally destroyed five. years after a matter is closed, unless other arrangements are made with the client. GCR and CDC agree that all client-supplied materials and all attorney end produce (referred to generally as "client material") are the property of the CDC. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. The firm and the client agree that attorney work product is the property of the firm. Attorney work product includes, for example, drafts, notes, internal LA Doc. # 4616-5542-2977 3 Garcia Calderon Ruiz 1 tn; 901 o 9,„ 1, s, ttxl ...nn...1, las angalcs. CaliGmnia 9W71 5x11 Dxi;n. Caliromia 921111 San lo: c. Cali foi-nia 95113 • C: memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials. If services are terminated, GCR will notify the client of any client materials that remain in GCR's possession. The CDC will be invited to retrieve these materials within 45 days of notice, or the CDC may direct GCR to forward the materials to the CDC, at the CDC's expense. If within 45 days of this notice CDC fails to retrieve the materials or request GCR to forward them, the CDC authorizes GCR to destroy the client materials. After the 45-day period, GCR will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any CDC materials that remain with the firm. SECTION 6. Notices. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified, or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows: CDC: Rosemead Community Development Commission 8838 East Valley Boulevard Rosemead, California 91770 Attention: City Manager GCR: GARCIA CALDERON RUIZ, LLP 500 South Grand Avenue Suite 1310 Los Angeles, CA 90071 Attention: Bonifacio Bonny Garcia, Esq. Service of a notice by personal service shall be deemed to have been given as of the date of such personal service. Notices 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 may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. SECTION 7. Indemnification. GCR does hereby agree to hold CDC, and its elected and appointed officers and officials, employees and other agents free and harmless from any claim, demand or judgment which may arise based upon personal injury or damage to property to a third party arising out of the performance of services by GCR hereto. SECTION 8. Insurance. Not in derogation of the provisions of Paragraph 7 hereof, GCR does hereby agree to take out and maintain in full force and effect under the terms of this Agreement the following insurance coverage: LA Doc. # 4816-5542-2977 4 Garcia Calderon Ruiz 51 i0 s.n.. 1,cnn,!A"..S,rim17111 625 'Nit) mi s...... si,s!xl . in4tl ~.y , ........1.... Ins AiIZO . (Aifun.ia 7(X!71 Sin Diego. Calitimua 92 101 Sm, bu. Ca!itinnia 7.113