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HomeMy WebLinkAboutCC 19 LEGAL SERVICES 11-07-94ENDA___._ ATE: NOVEMBER 2, 1994 Inter-Com TO: FROM: SUBJECT: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL WILLIAM A. HUSTON, CITY MANAGER LEGAL BERVICES BACKGROUND: The city Council directed staff to prepare a report which compares Tustin's legal fees with similar cities. Staff had submitted a report to the city Council in 1992 which addressed questions concerning the City's retainer, billing rates, total fees for legal expenses and other matters. This report includes more detailed information concerning fees, how legal services are provided in other cities and compares those with Tustin. SURVEY METHOD: Staff identified fifteen california cities that are similar to Tustin based on population range, development activity and services provided. While it is not possible to make exact comparisons, using reasonable criteria did result in a survey that should enable the City Council to draw conclusions from the data. The report will also point out considerations that while not necessarily quantifiable, are equally important. Of the survey group of fifteen cities, staff was able to obtain information from thirteen that is reliable and reasonably accurate. Two cities were dropped from the survey because they could not provide'the requested information. It must be stressed that the data presented in this report was obtained from officials of the survey c~ties'and Tustin staff has no other basis to attest to the accuracy of the information. Each city has different accounting and budgeting systems which can make it difficult to obtain comparable data. Tustin staff spent a considerable amount of time when interviewing the survey cities to ensure as best as possible that the data is accurate. Legal Services November 2, 1994 Page two The thirteen survey cities include: Carlsbad Fairfield Livermore Napa Pleasanton Santa Maria Thousand Oaks Walnut Creek Brea Camarillo Chino Corona Lancaster Eight of the cities have in-house City Attorneys and five have contract City Attorneys. Exhibits 1 and 2 of this report provide a summary for each city which indicates: Current population General Fund budget amount Permit values (for 1993-94) General legal expenses (for fiscal years 1993-94 and 1994-95). Other legal expenses (redevelopment, enterprise funds, etc.). Level of staffing (for in-house attorneys) Exhibits 1 and 2 include worksheets used by staff when interviewing the survey cities. Where available, data is included concerning rates fo~ contract attorneys, legal expenses for categories of expenses and other relevant information. The survey group includes cities with population ranges of 34,000 to 115,524. The general fund budget amounts and building permit values provide a basis to make judgements about the size of each City's operations and development activity which have direct bearings on legal expenses. Care was taken to not include cities Legal Services November 2, 1994 Page three that would skew the data. For example, there are several other cities the size of Tustin that are not comparable for purposes of this report because they are full service cities (police, fire, water, sewer, airport, golfcourses, etc.). The survey cities used include two cities over 100,000 population, Thousand Oaks and Lancaster. These cities contract for police and fire services but are similar to Tustin in terms of development activity. Legal expenses for the survey cities are identified as general and other legal expenses. The most difficult task staff encountered in preparing the survey was ensuring that an "apples to apples" comparison of legal expenses is presented. Because each City accounts for and budgets legal expenses differently, it was very important for the credibility of this ~eport to segregate legal expenses on a consistent basis. For example, some cities lump paid litigation claims, risk management expenses and third party administration expenses together. Other cities do not always allocate legal expenses by fund (water, redevelopment, general, etc.). Tustin staff spent considerable time with the survey cities to ensure, as best as possible, that the allocation of legal expenses by ~omponents is accurate. General legal expenses shown on Exhibits 1 and 2 include general fund legal expenses and litigation expenses (but not including paid claims, risk management expenses, etc.). All other legal expenses include special legal expenses such as redevelopment, water, etc. (as indicated in the footnotes). By allocating legal expenses this way, a reasonable comparison can be made because factors that can skew the numbers (e.g. some cities have redevelopment agencies and water operations and others do not) are taken into account. Exhibit 3 is staff's assessment of what it would cost were to have an in-house City Attorney. This will be later in the report. if Tustin discussed This report will also summarize studies prepared by five other cities regarding legal services. SURVEY FINDINGS: For those services, $927,000. cities in the survey group that contract for legal 1993-94 general legal expenses ranged from $222,000 to Tustin's 1993-94 general legal expenses were $402,000. Legal Services November 2, 1994 Page four For the same cities, 1994-95 budgeted general legal expenses range from $120,000 to $900,000. Tustin's 1994-95 general legal expenses are budgeted at $355,300. For those cities in the survey group that have in-house City Attorneys, 1993-94 general legal expenses (including amounts for contract general legal services), ranged from $334,000 to $653,000. For 1994-95, the expenses range from $319,000 to $593,050. Exhibits 1 and 2 indicate the level of staffing for cities having in-house City Attorneys and the hourly rates for contract city Attorneys. Staff also obtained a survey prepared by the city of La Palma of twenty three Orange County cities having contract City Attorney's which indicates that as of January 1994, the average partner rate charged cities was $134.00 per hour. Tustin currently pays a partner rate of $120.00 per hour. In reviewing legal service studies prepared by other cities (summarized later in this report) it was difficult to obtain financial data relevant to this study, with one exception. The City of Palmdale prepared a study in 1991 which included a survey of fifteen California cities. It included eleven contract cities and four with in-house City Attorneys. The survey cities ranged in population from 50,000 to 100,000, but included some full service cities such as Burbank and Santa Monica. Eight of the cities included in the Palmdale study (Alhambra, Carson, Downey, Lancaster, Santa Clarita, West Covina, Whittier and Palmdale) provide a reasonable comparison for purposes of Tustin's report. Using these eight cities, Palmdale's study indicates that for a three-year period including fiscal years 1987-88 through 1989-90, general legal expenses for those cities was $426,853. For the same period, Tustin's total (general, litigation, redevelopment, etc.) legal expenses averaged $435,100. Palmdale's study methodology appears to be similar to Tustin's report, however, it can only be assumed that Palmdale's numbers are accurate. Even allowing for any differences in how the data was collected or segregated, the Palmdale study appears to provide a fair comparison. IN-HOUSE LEGAL SERVICES: Staff prepared a budget for what it anticipates would be the annual operating cost if Tustin were to have an in-house city Attorney. Legal Services November 2, 1994 Page five Per Exhibit 3, it is estimated that the first year cost, not including capital outlay, would be $433,750. This amount does not include $50,000 for Redevelopment Agency special counsel, and $12,000 that would be directly charged to the Water Fund. By way of comparison, Tustin's projected 1994-95 general legal expenses (the amount comparable to Exhibit 3) are $355,300. Staff feels that given the legal workload and complexity of legal issues, the City would need a City Attorney, one Assistant City Attorney and one Secretary to properly staff a City Attorney's office. In addition, $92,000 would be included for outside law firms to handle litigation and any necessary specialized legal services. Because of the complexity of redevelopment law, the proposed budget assumes that outside legal counsel would be needed for redevelopment matters, the cost of which would be charged to the Redevelopment Agency. When assessing the level of staffing required, consideration has to be given to productive work time, sick leave, vacations, training, etc. If Tustin were to have one in-house City Attorney and all other legal work performed by contract law firms, the City Attorney would have to deal with: Attending all City Council meetings Attending all Planning Commission meetings Assist with preparing agenda materials each week Coordinating and monitoring all contract legal work Handling code enforcement matters (where legal action is required) Allocate time required for training Handling day-to-day matters (contracts, agreements, legal opinions and research, etc.) Because of the volume and complexity of legal issues that must be dealt with, it would be highly questionable if it would be cost- effective to have one in-house City Attorney performing the above duties. There are also practical considerations of back-up support during vacations, or if the individual were sick, etc. Legal Services November 2, 1994 Page six The city's operations will continue to grow, particularly given the development potential associated with closure of the Marine base and the Pacific Center East project. Over the next ten plus years, the city could potentially undertake $300 million dollars in capital improvement projects, all of which entail complex legal agreements. Any expansion of an in-house City Attorney function could, of course, occur over time as the need arises. But from the onset of an in-house legal department, it is staff's judgement that two in-house attorneys would be required in order to provide cost- effective services and maintain sound quality control over any legal services contracted for. In 1992-93, the City incurred 1,922 billable hours for general legal services (not including litigation). In 1993-94, billable hours for general legal services (not including litigation) were 1,978 hours. A full time employee generally works a base of 1,840 hours per year. Based solely on billable hours, one full time City Attorney could handle general legal matters. However, as a practical matter, consideraton must be given to: Productive hours - The billable hours for the City's present contract law firm is spread over a base that includes eighteen attorneys and their support staff. Attorneys are assigned to a work task depending upon the expertise required. It is highly questionable whether one in-house City Attorney could cover all meetings required to be attended, meet weekly agenda deadlines, handle day-to-day matters and monitor and coordinate contract law firms (principally litigation and specialized work such as redevelopment, bond issues, etc.). Quality of service - Tustin is situated in a complex urban area where state of the art knowledge of municipal law and .depth of experience are very important. Municipal law is an accumulation of a great number of subspecialties. To protect the City's legal and financial interests, consideration must be given to the practicality and whether it would be prudent to channel all the City's legal matters through one person. Legal Services November 2, 1994 Page seven The proposed budget for an in-house City Attorney of $433,750 includes annual operating costs, but does not include the initial capital outlay (furniture, law library, etc.). As discussed above, staff believes that a city Attorney and Assistant City Attorney would be required. A secretary would also be needed because the City's existing clerical staff is not large enough to absorb the workload that would be created by the attorneys. In order to deal with the issues of backup and specialization, one attorney would ideally have a strong background in land use law and the other in general municipal law and a specialty such as litigation. This would depend on the labor market and how flexible the City would be concerning salaries and benefits. The proposed salaries for the in-house City Attorney staff are based on comparable cities in Orange County. The budget contains $92,000 for contract legal services which includes $82,000 for litigation and $10,000 for any necessary specialized legal services. These amounts are based on averages for the past two years, but can vary either way depending on many circumstances. As noted on Exhibit 3, the budget does not include Redevelopment Agency legal services (which most likely would be contracted out) and water enterprise fund expenses. Backing out the cost of litigation and specialized services is another way of comparing the cost of in-house and contracted legal services. The proposed budget described above for an in-house City Attorney includes $92,000 for outside law firms. Deducting this amount, i.e. litigation defense and specialized services cost, the proposed in-house budget is $341,750. Using the City's 1992-93 and 1993-94 billable hours for general legal services (not including litigation defense), the city paid $222,350 and $227,520 respectively. In 1992-93, 57% of the city's billable hours for general legal services was at the partner rate and 43% at associate and paralegal rates. In 1993-94, 55% of the city's billable hours was at the partner rate and 45% at associate and paralegal rates. FACTORS .TO CONSIDER: Regardless of whether the City Council decides to continue to obtain legal services through a contract law firm or create an in- house city Attorney department, the following factors should be considered: Cost of service Level and quality of service Legal Services November 2, 1994 Page eight Expertise and specialization necessary to city's legal needs Depth of experience and backup Track record and competence of the attorneys Responsiveness and availability Complexity and volume of legal work serve the STUDIES BY OTHER CITIES: Staff reviewed legal service studies prepared by the cities of Palmdale, Santa Clarita, Moreno Valley, Santa Clemente and Manhattan Beach. The following is a summary of the studies and any actions taken as a result of the studies. Palmdale (Population 89,717) - Its 1991 study surveyed fifteen California cities using data for three fiscal years. The financial data from this study is referred to on page four (4) of this report. The Palmdale study made reference to the difficulty in obtaining comparable data but did note that "both budgeted and actual expenses for cities with in-house attorney services are higher than cities that contract out for legal services". At the time of the study, Palmdale had a population of 65,357 and its three year average of general legal expenses was $396,714. Palmdale contracts for police and fire services. At the time of the 1991 study, Palmdale contracted for legal services and then decided to convert to an in-house City Attorney, one Assistant city Attorney and one secretary. The City Attorney subsequently left the City. Palmdale now has an in-house Assistant City Attorney and a contract law firm which serves as City Attorney. The city has not decided yet whether to fill the in-house city Attorney position, continue with status quo or convert back to contract services. Palmdale's 1993-94 general legal expenses were $477,000. Santa Clarita (Population 123,000) In 1994, a survey was conducted of fifteen California cities which computed each city's general legal expenses as a percentage of the general fund. The percentages ranged from one percent to five percent. Eight of the cities were at one percent; the balance were at two - five percent. Tustin was included in the survey and was at one percent. Legal Services November 2, 1994 Page nine Moreno Valley (Population 133,706) - Its 1993 study assessed whether to continue its contract for legal services or convert to in-house. The study concluded it would be more cost-effective to remain with a contract law firm. However, in January 1994, the City did hire an in-house City Attorney supplemented by contract law firms. Moreno Valley currently contracts for police and fire services and does not provide any utility services. San Clemente (Population 44,166) - A 1991 consultant study recommended that the City continue with a contract law firm. A new study was prepared in 1992 and reached the same conclusion. The 1992 study indicated that if legal services were provided in-house, it would require two attorneys and one secretary. Manhattan Beach (Population 32,139) - Its 1993 study evaluated options to contract legal services. The consultant-prepared study cited the City of San Pablo as an example of what typically happens when a smaller City converts from contract services to in-house. San Pablo's legal expenses increased 21% within -three years after converting to an in-house City Attorney. The Manhattan Beach consultant recommended the City convert to an in- house City Attorney, which it did. After approximately one year, the in-house City Attorney left the City which then retained the same law firm used prior to the conversion. The City has not decided yet whether it will remain with the contract law firm or refill the in-house City Attorney position. EXHIBIT i CITY CA,,~.SBAD Asst. City Mgr. Sr. M§mt. Ass. POPULATION 67,172 GEN FUND OP BUDGET $32.8 Milllion RDA Yes ($1.8 Million) SPECIAL DISTRICT ENTERPRISE City Council FUNDS(LIST) Water, Sewer Board for Water District 1993/94 PERMIT VALUES $11,441,728 CONTRACT SERVICES: N/A LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES RETAINER OTHER COMP COMMENTS: IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 $421,269 1994/95 5464,000 NO. OF STAFF 5: City Atty., Asst. City Atty., Dap. City Afy. AND TITLES Sec. to City Afl)'., Admin. CITY ATT SALARY $104,468 annually Dap. City Atty. $68,770 annually ASST. ATT SALARY $101,374 &nnually LEGAL EXPENSES $358,605 = (one vacant posibon for full year 1993/94: accounts for significant savings) GEN FUND $206,083 W/COMP 0 LIABILITY CLAIMS 0 RDA $32,409 ENTERPRISE Water: $56,471 OTHER Sewer: $63,642 LEGAL EXPENSES BUDGET 1994/98: $464,000 GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: ;ost allocation for 1994-95 unavailable, under revision ATTORNEY SURVEY CITY iL FAiP. rlELD Shawn Ouinn, Red. Dir. POPULATION 85,921 * GEN FUND OP BUDGET $31 MiBion RDA Yes SPECIAL DISTRICT County ENTERPRISE FUNDS(LIST) Water, Sewer, 2, 18 hole public golf courses 1993/94 ~ PERMIT VALUES $33 Million CONTRACT SERVICES: ~EGAL EXPENSES 1993/94: GEN FUND $100,000 W/COMP LIABILITY CLAIMS RDA $100~000 ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95 GEN FUND $379,000 Just a line Item - not broken down. Carried over. W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES $125,00 RETAINER OTHER COMP COMMENTS: * Travis AFB counted in population (10,000). IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 $368,000 1994/95 $368,000 . ' NO. OF STAFF 1/2 time City A~y. Legal Sacs. Contract Claims Mgr. AND TITLES ~ Asst. C. Affy. Admin. Asst. CITY ATT SA~RY If rub time (98,000) DEP ATT SA~RY {82,000) LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY C~IMS RDA $100,000 (estimate) does not inet, bond counsel or ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $368,000 - ~rozen 1or 3 years W/COMP LIABILITY C~IMS RDA ENTERPRISE OTHER COMMENTS: They have an in-house a~orney for general purposes and contract for RDA. Affordable housing uses special counsel over and above this. ' 1 !~ C~T~T T O-R~E~S U R V E Y I ,: Karan Major,-RDA CITYli LIVE~MORE Kathy Rooney - Financa POPULATION 62.857 GEN FUND OP BUDGET $2g.860.980 RDA Yes ENTERPRISE water, Sewer FUNDS(LIST) Airport, 2 golf courses 1993/94 PERMIT VALUES $86,888,000 CONTRACT SERVICES: LEGAL EXPENSES GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES RETAINER OTHER COMP COMMENTS: Only use the contract attorney for over and above what the ~n-house staff can handle. IN HOUSE ATTORNEY; DEPT BUDGET: 1993194 $421,140 (Does not include any outside 1994/95 $415,490 counsel and only part of Risk Mgmt,) NO. OF STAFF 1-City Atty., I Asst. City Arty, AND TITLES 1 -Lgl. Sec. 1 - Lgl. CIk Typist CITY ATT SALARY $8205/mo DEP ATT SALARY $4861-6076/mo LEGAL EXPENSES 1993/94: GEN FUND $1,376,060 W/C O M~P. $564,550 LIABILITY CLAIMS RDA $412,250 ENTERPRISE $1,363,280 OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $1,174,400 W/COMP $603,900 LIABILITY CLAIMS RDA $2,241,430 (Major projects on - going) ENTERPRISE $12,104,910 OTHER COMMENTS: 199~.~4 CITY ATTORNEY SUl~Vt;~ ~1 POPULATION 66,265 GEN FUND OP BUDGET 94-95 25,116,662 RDA SPECIAL DISTRICT City maint. - landcaping (12} districts ENTERPRISE Water, Sawer, FUNDS(LIST) Perking Golf Course 1993/94 PERMIT VALUES 19,705,005 CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994195: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES $100/Hour RETAINER No OTHER COMP , COMMENTS: Contact: Asst. Fin. Dir. - Edna Mesbad (707) 257-9501 IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 i653,000 Lots of litigation ~est year - continuing into this year. 1994/95 ~48,000 Normally about $250K Legal Sec. shared NO. OF STAFF City Atty. - Full time Legal Sec. shared by legal admin. AND TITLES Asst. City Atty.* part-time ofc. and City Mgr. CITY ATT SALARY $6189-7477/mo DEP ATT SALARY (contract - see above) LEGAL EXPENSES 1993/94: GEN FUND $620,000 [] W/COMP LIABILITY CLAIMS RDA 50,000 (Bonds only) ENTERPRISE 4,000 {because water pays overhead emi. to water. They don't OTHER isolate enterprise funds). LEGAL EXPENSES BUDGET 1994195: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: i[mJ Does not include liab. & w/c. Self insured and have administrator who hires · contract attorney to handle. They contract out ell labor and risk management litigation. Currently in suit with garbage co. - contracted out legal work. 199~CITY ATTORNEY SURVEY POPULATION 56,552 GEN FUND OP BUDGET $33.9 Million RDA No SPECIAL DISTRICT No ENTERPRISE Water, Sewer (collection FUNDS{LIST) only not tre&tment) 1993/94 PERMIT VALUES $100 Million CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES RETAINER OTHER COMP COMMENTS: Contact: Fin. Dir. - Sue Rossi (510) 484-8008 IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 $334,000 1994~95 $319,000 NO. OF STAFF City Atty., Assist. City Atty. - Full-time AND TITLES 1 Secretary (ehmred) CITY ATT SALARY mid S7913/mo DEP ATT SALARY mid $6013/mo LEGAL EXPENSES 1993/94: GEN F.UND $334,000 W/COMP $45,000 {outside edmin included) LIABILITY CLAIMS $5,000 RDA ENTERPRISE OTHER L-~ EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: 199.~ CITY ATTORNEY SU~Vb ¥ CITYI! SAN~. ~IARIA City A[lny- Art POPULATION 67,822 GEN FUND OP BUDGET $25,176,000 RDA YES SPECIAL DISTRICT Ltbrar/, quimby rec ENTERPRISE FUNDS(LIST) Water, Refuse, Waste Water 1993/94 PERMIT VALUES $44 Million CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95 GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES RETAINER OTHER COMP COMMENTS: IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 $372,200 1994/95 $336Jt80 NO. OF STAFF AND T~TLES total 5:3 City Attorneys, 1 Sect}', 1 p/t CIk CITY ATT SALARY $61,000 - $96,500 DEP ATT SALARY LEGAL EXPENSES 1993/94: $348,432 GEN FUND W/COMP LIABILITY 'CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $336,480 W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER $20.000 Outside council COMMENTS: The general fund expense does not include the salades for 1,83 of City Attorney which are charged directly to RDA, enterprise, and CDBG funds (salaries are split and charged directly to funds), Have a JPA for Wrks Comp and Risk 199~_~C~TY--A-TTORNEY SURVEY CITYII THOU~,~D OAKS Bob Biary- Finance . POPULATION 110,000 GEN FUND OP BUDGET $34,000,000 RDA Yes SPECIAL DISTRICT ENTERPRISE FUNDS(LIST) Civic Ctr district, Golf, Trens, Water, Waste Water, Solid Waste 1993/94 PERMIT VALUES 108 million CONTRACT SERVICES: .EGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95 GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES RETAINER OTHER COMP COMMENTS: IN HOUSE ATTORNEY; DEPT BUDGET: 1993/94 $375,000 1994/95 S375,000 NO. OF STAFF AND TITLES 5 staff: I Cit), Attn),, I Dap Cit), Attn),, I Asst Cit), Attn),, 2 Sect)' CITY ATT SALARY $90,000 A STEP DEP ATT SALARY $65,000 A STEP LEGAL EXPENSES 1993/94: GEN FUND $375,000 W/COMP LIABILITY CLAIMS RDA '" ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $376,780 W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: Contracts for Police Svcs, Fire Dist (county), Recreation Park Park District (sap board), for outside litagation on RDA and Watel Solid Waste use outside Attorney, uses a cost allocation plan to charge all funds (overhead charge). -- --~19~ C-[¥~TT-"ORNEY SURVEY CITYI~_~.. WALN~., CREEK POPU~TtON 62,859 GEN FUND OP BUDGET $29,541,000 RDA SPECIAL DISTRICT none ENTERPRISE FUNDS(LIST) Golf Course (contract out) 1993/94 PERMIT VALUES 69 Million CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY C~[MS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95 GEN FUND W/COMP LIABILITY C~IMS RDA ENTERPRISE OTHER HOURLY RATES- RETAINER OTHER COMP COMMENTS: IN HOUSE ATTORNEY: DEPT SUDGET: includes outside iegsl 1993~94 $470,093 1994/95 $593.048 NO. OF STAFF AND TITLES Total 4 - I City A~ny, 2 Assr Ci~ Affnys. 1 Secty CITY ATT SA~RY $107,208 DEP ATT SA~RY $75,000 LEGAL EXPENSES 1993/94: GEN FUND $470,093 W/COMP LIABILITY RDA $37,910 ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $593,048 W/COMP LIABILITY C~IMS RDA $15,000 ENTERPRISE OTHER COMMENTS: The $123.000 increase is due to a recent reorg~n~ation in the City A~ny office which increased sslades and benefits. EXHIBIT 2 0 CITYII . ~A Larry Hurst, Director of Finance POPULATION 34,000 GEN FUND OP BUDGET $27,227,000 RDA yes SPECIAL DISTRICT ENTERPRISE FUNDS(LIST) Water, Sewer, Sanitation 1993/94 PERMIT VALUES $27.598,865 CONTRACT SERVICES: LEGAL EXPENSES GEN FUND $248,520 W/COMP $292,378 LIABILITY CLAIMS $197,240 RDA $406,000 ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $118,000 W/COMP $400,000 LIABILITY CLAIMS $250,000 RDA $415,000 ENTERPRISE OTHER HOURLY RATES :See Comments RETAINER No retainer. City provides office space in lieu of retainer. OTHER COMP COMMENTS: ,135 - Senior Partner ;120 - Partner ~100 - Associate ; 60 - Paralegal ($150 - RDA Senior Partner) IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY DEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ' ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LiABILiTY CLAIMS RDA ENTERPRISE OTHER COMMENTS: CITY JJ CA~*. .LLO Anita Bingham Dir. of Finance 601 Carmen ~ POPULATION 56,000 Camadllo, CA 93010 GEN FUND OP BUDGET $11 Million RDA No SPECIAL DISTRICT ENTERPRISE Water, Sewer & FUNDS(LIST) Solid Waste 1993/94 PERMIT VALUES $53,836,663 CONTRACT SERVICES: LEGAL EXPENSES 1993/94: Total ~ $443,445 GEN FUND $269,335 W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER See Comments 1 LEGAL EXPENSES BUDGET 1994/95 $341,100 GEN FUND $255,000 W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER See Comments 2 HOURLY RATES RETAINER $72,000 (inc. in Gen. Fund Amount) OTHER COMP See Comments 3 COMMENTS: 1. $33,822 - CtP $160 - Principal $59,223 - Dev. Reimb. $155 - Associate $33,525 - Litigation against County $ 85 - P&ralegal $25,800 - Sanitation District $21,740 - CDBG 2. $84,200 - Sanitation District $ 1,000 - Travet $ 100 - Printing $ 800 - Codes 3. City Atty. attends e. II Council meetings. Dept. City Atly. spends one day a week in City Hall (office space provided). iN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY DEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: 1994 CITY AT¥ORNEY SURVEY CITY (.,, ,0 POPULATION 62,850 GEN FUND OP BUDGET $22 Million RDA Yes (separate Atty.) SPECIAL DISTRICT ENTERPRISE FUNDS(LIST) Water, Sewer, Sanitation 1993/94 PERMIT VALUES $48,632,713 CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND $198,200 (See Comment #1) W/COMP $23,755 (Outside Attorneys) LIABILITY CLAIMS $225,000 (Outside Attorneys) RDA $140,400 (Separate firm from City Attorney) ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND ;$100,050 (See comment #2) W/COMP $20,000 (outside attorneys) LIABILITY CLAIMS $200,000 (outside Attorneys) RDA $107,450 (separate firm from City Attorney) ENTERPRISE OTHER HOURLY RATES RETAINER $48,000 (included in General Fund Account) OTHER C O I~IP COMMENTS: 1. $ 48,000 - Retainer $ 27,600 - Litigation, othe~ General Fund $122,600 - Personnel Related (several outside attorneys) 2. $ 48,000 - Retainer $ 22,400 - Other General Fund, Litigation $ 29,650 - Personnel Related (Several outside attorney) $ 125 - City Attorney $ 150 - RDA Attorney IN HOUSE ATTORNEY! DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY DEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: ' -'~994 CiTY ATTORNEY SURVEY Judy Perry - Finance '~I CITY 11 C~.. .~]A Katie Kiipatrick - City Mgr$. Office .,I POPULATION 92,984 GEN FUND OP BUDGET RDA Yes SPECIAL DISTRICT ENTERPRISE FUNDS(LiST) Water, Sewer 1993/94 PERMIT VALUES 541,926,016 CONTRACT SERVICES: .EGAL EXPENSES 1993/94: Total: S885,559 GEN FUND $578,217 W/COMP LIABILITY CLAIMS RDA $50,993 ENTERPRISE $97,668 (utilities) OTHER 15161,481 (debt service, airport) LEGAL EXPENSES BUDGET 1994/95: Total: $606,000 GEN FUND $460,000 W/COMP LIABILITY I~LAIMS RDA $48.000 ENTERPRISE $55,000 (utilities) OTHER $43,000 (misc.) HOURLY RATES See comments RETAINER Unavailable OTHER COMP COMMENTS: $102.76 For Basic Services Reimbur$=ble Services es follows; =$150.00 - Principal Attys. $105.00 Jr. Attys. $65.00 Paralegal $120.00 - Sr. Attys. $75.00 Law Clerks ReimbLtrsable services include; Planning & Building, water and sewer, &irport, refuse collection, code enforcement, CATV, litigation, employee relations, police & fire, RDA and environmental law matters. IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY OEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP ' LIABILITY~CLAiM S RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: ~ Russ Watson - RDA Dir. GEN FUND OP BUDGET 94-95 $29,846,061 RDA Yes SPECIAL DiSTRiCT Lightlng/Landscape/Drainage/4 M.Roos/5 (five) Asses. ENTERPRtSE FUNDS(LiST) if 993/94 ~ $55,827,000 CONTRACT SERVICES: LEGAL EXPENSES 1993/94: GEN FUND $927,000 (includes condemnation costs) difficult to break down. W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND $900,000 W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER HOURLY RATES $150 Att),., $80 Jr. Att),. RETAINER $4,000/mo. OTHER COMP COMMENTS: Specia~ arrangements - I day a week they try to have counsel site all day (usually Monday. Council days). IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY DEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: 1994 CiTY ATTORNEY SURVEY POPULATION 59,751 GEN FUND OP BUDGET $23,222,426 RDA yes --SPECIAL DISTRICT Street Li9htin9 and Assessment Dist. ENTERPRISE FUNDS(LIST) Water 1993/94 PERMIT VALUES 141 Mi[lion CONTRACT SERVICES: Rourke, Woodruff &nd Spradlin (RW&S) ~---LE G A L EXPENSES 1993/94: (actual 6/30/94) GEN FUND $228,828 W/COMP RW&S $389, $41,994 other LIABILITY CLAIMS iRW&S $115,391, $15,551 other RDA $33,136 ENTERPRISE $14,636 OTHER ~L EXPENSES BUDGET 1994/95 GEN FUND $190,300 W/COMP RW&S $0, $30,000 other LIABILITY CLAIMS RW&S $I 10,000, $25,000 other RDA $35,000 ENTERPRISE $12,000 OTHER $0 HOURLY RATES See Comments RETAINER $4,000/month OTHER COMP none COMMENTS; $ 120- pa~ner 110 - Associate Attorney ;4000 - Retainer IN HOUSE ATTORNEY: DEPT BUDGET: 1993/94 1994/95 NO. OF STAFF AND TITLES CITY ATT SALARY DEP ATT SALARY LEGAL EXPENSES 1993/94: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER LEGAL EXPENSES BUDGET 1994/95: GEN FUND W/COMP LIABILITY CLAIMS RDA ENTERPRISE OTHER COMMENTS: EXHIBIT 3 AGENDA___ NO. 19 11-7-94 IATE: NOVEMBER 7, 1994 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER OFFICE OF THE CITY CLERK LEGAL SERVICES STUDY This item will be delivered under separate cover to the City Council on or before Thursday, November 3, 1994. Valerie Crabill Chief Deputy City Clerk 2:MEMOSPCV