ITEM:	CONSENT CALENDAR
3.	CONSIDER AUTHORIZATION OF CONTRACT FOR LEGAL SERVICES
Meeting Date:		June 21, 2004	Budgeted: Yes
Staff Contact:		Rick Dickhaut	Program/Line Item No.: Services & Supplies-Legal Services
			Cost Estimate: $130,000 (FY2004-05)
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 7, 2004 and recommended approval.
CEQA Compliance: N/A

SUMMARY: For the past 25 years, the Board has utilized the services of the law firm of De Lay & Laredo to provide legal services to the District. The current agreement for legal services with De Lay & Laredo is included as Exhibit 3-A. This agreement extended through June 2002 and, in the absence of a written renewal, has continued on a monthly basis since that time. Exhibit 3-B is a proposal from De Lay & Laredo to provide legal services for a two-year period starting in July 1, 2004. For the first year, Mr. Laredo proposes no change to the terms or rates of the existing contract, which includes 45 hours per month of retained time at $155.00 ($154.43 rounded up to nearest dollar) per hour. All services provided exceeding the 45 hours of retained service would be paid at the same rate as the retained hours. For the fiscal year commencing on July 1, 2005, Mr. Laredo proposes an increase of $10.00 per hour, to $165.00, for all hours within the 45 hours of retained time, and an increase of 15.00 per hour, to $170.00, for all hours required beyond the retained hours. Mr. Laredo also proposes that the legal services agreement may be terminated at any time during its term, without cause, by the affirmative vote of five (5) members of the Board.

RECOMMENDATION: Authorize the General Manager to execute a contract for legal services with the law firm of De Lay & Laredo for fiscal years 2004-2005 and 2005-2006. The Administrative Committee reviewed this item on June 7, 2004 and voted 3 to 0 to recommend approval.

IMPACT ON STAFF AND RESOURCES: The draft budget for Fiscal Year 2004-2005 includes the amount of $130,000 for legal services to be provided by District Counsel and an additional $20,000 for deed restriction reviews.

BACKGROUND: The law firm of De Lay & Laredo has provided legal services to the District for the past 25 years. The contract for Fiscal Year 2001-2002 was executed on November 13, 2001, and provided for 45 hours per month of retained time at $154.43 per hour for services provided by partners and $117.15 per hour for services provided by associate attorneys. All services provided by partners or associate attorneys exceeding the 45 hours of retained service were paid at the same rate as the retained hours. The contract was for a not-to-exceed amount of $130,000 for Fiscal Year 2001-2002. The contract contained a provision that, in absence of a written renewal, the contract would continue on a monthly basis as of July 1, 2002. The contract has been continued on a monthly basis since that time.

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