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HomeMy WebLinkAbout13-City Attorney ORIGINAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Dept: CITY ATTORNEY Subject: Resolution authorizing a Professional Services Agreement between the City of San Bernardino and the law firm of Reid & Hellyer to represent the City of San Bernardino in the case of In Re: Bankruptcy of Adelphia Communications Corporation, Southern District of New York, Case No. 02-41729. From: JAMES F. PENMAN City Attorney Date: September 6, 2005 Synopsis of Previous Council Action: September 6,2005, approval of the hiring of Reid & Hellyer to represent the City of San Bernardino. Recommended motion: Adopt Resolution: That the Mayor of the City of San Bernardino and Common Council authorize and direct the Mayor of the City of San Bernardino to execute on behalf of the City of San Bernardino the Professional Services Agreement with the law firm of Reid & Hellyer to represent the City of San Bernardino regarding the case In Re: Bankruptcy of Adelphia Communications Corporation, Southern District of New York, Case No. 02-41729. Sif2~I/~ Contact person: Michael Reiter Phone: 5355 Supporting data attached: Staff Report Ward: All FUNDING REQUIREMENTS: Amount: Source: Finance: Counc~. o!e~. "J CO oC) . L4&' doC 15 - e/-qc:; Agenda Item No. / 3 9/&/os- . . e STAFF REPORT Council Meeting Date: September 6. 2005 TO: Mayor and Common Council FROM: James F. Penman, City Attorney DATE: August 24, 2005 AGENDA ITEM: Resolution authorizing and directing the Mayor to execute a Professional Services Agreement between the City of San Bernardino and the law firm of Reid & Hellyer to represent the City of San Bernardino in the case of In Re: Bankruptcy of Adelphia Commnnications Corporation, Southern District of New York, Case No. 02-41729. The City of San Bernardino has filed bankruptcy claims against Adelphia Communications Corporation including a claim for $307,319 in unpaid taxes and fees with penalties and interest. The Adelphia bankruptcy case is a large and extremely complex case, and bankruptcy law is a highly-specialized area of the law with rules and procedures unique to bankruptcy law Mark C Schnitzer of the firm Reid & Hellyer has been practicing bankruptcy law for over thirty years. Attached hereto is the Professional Services Agreement which reflects such approval. including a ceiling of $25,000 on attorney fees and the requirement ofregular status reports. It is requested by the City Attorney that the following floor motion be adopted authorizing the Mayor to execute the Professional Services Agreement on behalf of the City of San Bernardino. 'That the Mayor of the City of San Bernardino and Common Council authorize and direct the Mayor of the City of San Bernardino to execute on behalf of the City of San Bernardino the Professional Services Agreement with the law firm of Reid & Hellyer to represent the City of San Bernardino regarding the case In Re: Bankruptcy of Adelphia Communications Corporation, Southern District of New York, Case No. 02-41729" e . I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE MAYOR OF THE CITY OF 3 SAN BERNARDINO TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN REID & HELL YERAND THE CITY OF SAN BERNARDINO TO REPRESENT 4 THE CITY IN THE CASE OF IN RE: BANKRUPTCY OF ADELPHIA COMMUNICATIONS CORPORA TION, UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF 5 NEW YORK, CASE NO. 02-41729, 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 7 OF SAN BERNARDINO AS FOLLOWS: 8 SECTION 1 The Mayor of the City of San Bernardino is hereby authorized and directed 9 to execute on behalf of said City a Professional Services Agreement between Reid & Hellyer and 10 the City of San Bernardino for legal services, a copy of which is attached hereto marked Exhibit II "A" and incorporated herein by reference as fully as though set forth at length. 12 SECTION 2. The authorization granted hereunder shall expire and be void and of no 13 further effect if the agreement is not executed by both parties and returned to the office of City 14 Clerk within sixty (60) days following effective date of the resolution. 15 /I 16 / / I 17 I I / 18 //1 19 I I I 20 / I I 21 / I I 22 I I I 23 I I / 24 II I 25 1/1 26 I I / 27 / / / e 28 I I I MR", [ADELPHIA.RESO.PSAWPDI I e . e I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE MAYOR OFTHE CITY OF 2 SAN BERNARDINO TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN REID & HELL YERAND THE CITY OF SAN BERNARDINO TO REPRESENT 3 THE CITY IN THE CASE OF IN RE: BANKRUPTCY OF ADELPHIA COMMUNICA TIONS CORPORA TION, UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF 4 NEW YORK, CASE NO. 02-41729 5 6 7 8 9 10 II I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2005, by the following vote, to wit: 12 13 14 15 16 17 COUNCIL MEMBERS. ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MCCAMMACK ABSTAIN ABSENT AYES NAYS 18 19 20 CITY CLERK The foregoing Resolution is hereby approved this day of ,2005 21 22 23 JUDITH V ALLES, Mavor City of San Bernardino' 24 Approved as to form and legal content: 25 ~: By;,;f~~ti11 d i/' City 1,Viorney 28 MR", [ADELPHlA.RESO.PSAWPD] 2 . . e 20 21 22 23 24 25 26 27 28 1 PROFESSIONAL SERVICES AGREEMENT IN RE: BANKRUPTCY OF A DELPHIA COMMUNICA TlONS CORPORA TlON, United States Bankruptcy Court, Southern District of New York, Case No. 02-41729 2 3 The CITY OF SAN BERNARDiJ',O (hereinafter "CITY") and the law firm of 4 REID & HELLYER (hereinafter "R&H") are the partIes to thIS Agreement. 5 6 2. R&H will be representing the follOWing entitles and persons In this litigation. CITY OF SAN BERNARDINO R&H shall not represent any client in any type of claim against the CITY without pnor written approval to do so from the CITY OF SAN BERNARDINO through 7 8 the City Attorney's Office. 9 10 3 R&H shall be paid at the hourly rates set forth belo\\ Attorneys - $300.00 per hour; and. 11 12 The amounts expended under this agreement for attorneys fees shall not exceed $25,000 without further approval of the Mayor and Common Council. 13 4 Bills shall be submIlled at least quarterly 14 5 The actual cost for filing fees, telephone charges, photocopying, postage,lodgmg, 15 mileage and related travel costs shall be itemized when submitted to the CITY for reImbursement. 16 17 R&H may mclude a single charge in an amount not to exceed four percent (40~) of fees in lieu of 18 reimbursement for photocopying, telephone charges, and postage. 19 6 If attorney's fees are charged "portal to portal" (e.g., from office to court and return), then R&H shall not be entitled to reimbursement for mileage and parking fees. 7 R&H shall obtain approval from the CITY to retam expert consultants and other professionals (not including court reporters) for purposes of defendmg the litigation. R&H may, ifit chooses, pay the fees and charges of such consultants and seek reimbursement from CITY on ItS periodIC statement, or it may forward the consultant's bill to CITY With a request that the CITY pay It directly Consultants shall not bill the CITY directly without prior approval of the CITY's Finance Department. 8 Status reports will be submitted to CITY through the City Attorney's Office whenever any significant event occurs, and m any event at least quarterly Information sufficient \1R/tbm jreid hellyerps3.wpd] 1 EXHIBIT "A" e e e 1 to set reserves,includmg, without limitation, potential liability exposure and percentage of fault 2 shall be included. 3 9 Copies of all opinions, pleadmgs. discovery and motIons shall be provided to the 4 CIty Atlomey's Office which may reproduce same and provide copies to other parties or attorneys 5 m this. or other lItigation. 6 10. Copies of any correspondence and other documents sent to any of the defendants 7 in this action shall also be provided to the CITY through Ihe City Attomey's Office. 8 II Any and all settlements shall require CITY approval. Request for settlement 9 authority shall be made through the City Attorney's Office which shall obtam the necessary CITY 10 approvals. 11 12. In the event the settlement value of the case appears to exceed 550,000, the City 12 Attomey's Office shall be notified immediately 13 13 Only \1ark C Schnitzer of R&H or other senior attomev approved by the CITY 14 shall try this case. 15 14 No client development costs are to be mcluded in billings. 16 15 No contmuing education expenses are to be mcluded In billmgs. 17 16 Final billIng shall be accompanied by copies of the Request for Dismissal, 18 Satisfaction of Judgment, Release and any other final documents. 19 17 Either party may ternllnate this contract at will. R&H will continue to represent 20 the CITY on the terms and conditions in thiS Agreement until the case and file are transferred to 21 another attorney 22 18 R&H IS an independent contractor as to the CITY 23 19 R&H shall maintaulthe following types of insurance with lImits as shown. 24 a) Workers Compensation as required by the laws of the State of 25 California, mcluding Employment Liability with $250,000 lImits covering all 26 persons providing service on behalf ofR&H and all risks to such persons under 27 this Agreement. R&H shall require its Workers Compensation camer to waive 28 ~1R \bm In:lllhcllyer psa \\flJ} 2 EXHIBIT "A" . e e 1 all rights of subrogatIOn against the CITY and its officers and employees and any others for whom services are being provided under this Agreement. 2 3 b) Comprehensive General and Automobile LiabilIty Insurance 4 coverage to II1clude contractual coverage and automobile coverage for owned, 5 hIred and non-owned vehIcles. The policy shall have at least a combined smgle 6 lImit of S 1 ,OUO,OOU for bodily Injury and property damage. 7 c) Professional Liability Insurance with lInlltS of at least S 1,000,000 8 per claim. In lieu ofnammg the CITY as an additIOnal insured, thc policy may 9 be endorsed as follows: 10 "Insurance coverage afforded by thIS polIcy shall also apply to the liability assumed by the Insured under the Agreement with the CITY OF SAN BERNARDNO for legal defense services, provided such lIability results from an en-or, omIssion or negligent act ofthe insured, its officers, employees, agents or subcontractors. All other provisions of this policy are to remain unchanged." 11 12 13 R&H shall furnIsh certificates of insurancc and certificd copics of all policies and 14 endorsements to the City Attorney's Office e\'ldencing the msurancc coverage above required prior 15 to the commencement of performance of services hereunder which certIficates shall prOVIde that 16 such II1surance shall not be terminatcd or expIre witholltthirty (30) days written notIce to the City 17 Attorney's Office, and shallmamtain such Insurance from the lIme R&.H commences performance 18 of servIces hereunder until the completIOn of such services. 19 All policies, with respect to the msurance coverage above requircd, except for the 20 Workers CompensatIOn insurance coverage and profeSSIonal lIability covcrage, ifapplicable, shall 21 obtain additional cndorscments nammg the CITY and all parties reprcsented under this Agreement, 22 theIr employees, agents, volunteers and officers as addItIOnal named msured with respect to 23 liabilities arising out of the performance of services hereunder 24 All polIcies required above are to be primary and non-contributing with any 25 IIlsurance or self-insurance programs carried or admmistered by the CITY or other parties 26 represented under this Agreement. 27 /1 28 MRtbm \rehne\her p,a wpd) 3 EXHIBIT "A" e . 16 17 18 19 1 10 All communications and billings to the CITY are to be directed as follows: 2 3 4 DATED' .1005 5 6 7 8 9 DUED' ,1003 10 11 12 13 14 15 20 Approved as to fom] and legal content: 21 JAMES F PENMAN, 22 City Attorne) 23 24 B) 25 26 e 27 28 City Attorney's Office CITY OF SAN BERNARDINO 300 North "0" Street San Bernardino, CA 92418 REID & HELLYER BY' Mark C Schnitzer CITY OF SAN BERNARDINO BY' Judith Valles, Mayor ~fR Ibm [reld hel1yerpsawpdl 4 EXHIBIT "A" . . e 23 24 25 26 27 28 1 PROFESSIONAL SERVICES AGREEMENT IN RE: BANKRUPTCY OF ADELPHIA COMMUNICATIONS CORPORATION, United States Bankruptcy Court, Southern District of New York, Case No, 02-41729 2 3 I The CITY OF SAN BERNARDINO (hereinafter "CITY") and the law firm of 4 5 REID & HELLYER (hereinafter "R&H") are the parties to this Agreement. 2. R&H will be representing the following entities and persons in this litigation: CITY OF SAN BERNARDINO R&H shall not represent any client in any type of claim against the CITY without prior written approval to do so from the CITY OF SAN BERNARDINO through the City Attorney's Office. 3 R&H shall be paid at the hourly rates set forth below' Attorneys - $300.00 per hour; and, 6 7 8 9 10 11 12 The amounts expended under this agreement for attorneys fees shall not exceed 13 $25,000 without further approval of the Mayor and Common Council. 4 Bills shall be submitted at least quarterly 14 5 The actual cost for filmg fees, telephone charges, photocop)'lng, postage, lodging, 15 16 mlleage and related travel costs shall be itemized when submitted to the CITY for reimbursement. R&H may include a single charge in an amount not to exceed four percent (4%) offees in lieu of reimbursement for photocopying, telephone charges, and postage. 6 If attorney's fees are charged "portal to portal" (e.g., from office to court and 17 18 19 20 return), then R&H shall not be entitled to reimbursement for mileage and parking fees. 21 7 R&H shall obtain approval from the CITY to retain expert consultants and other professionals (not including court reporters) for purposes of defending the litigation. R&H may, 22 if it chooses, pay the fees and charges of such consultants and seek reimbursement from CITY on its periodic statement, or it may forward the consultant's bill to CITY with a request that the CITY pay it directly Consultants shall not bill the CITY directly without prior approval of the CITY's Finance Department. 8. Status reports will be submitted to CITY through the City Attorney's Office whenever any significant event occurs, and in any event at least quarterly Information sufficient MR/tbm [reid.hellyer.psa.wpd] 1 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . to set reserves, including, without limitation, potential liability exposure and percentage of fault shall be included. 9 Copies of all opinions, pleadings, discovery and motions shall be provided to the City Attorney's Office which may reproduce same and provide copies to other parties or attorneys in this, or other litigation. 10 Copies of any correspondence and other documents sent to any of the defendants in this action shall also be provided to the CITY through the City Attorney's Office. II Any and all settlements shall require CITY approval. Request for settlement authority shall be made through the City Attorney's Office which shall obtain the necessary CITY approvals. 12. In the event the settlement value of the case appears to exceed $50,000, the City Attorney's Office shall be notified immediately 13 Only Mark C Schnitzer ofR&H or other senior attorney approved by the CITY shall try this case. 14 No client development costs are to be mcluded in billings. 15 No continuing education expenses are to be included in billings. 16. Final billing shall be accompanied by copies of the Request for Dismissal, Satisfaction of Judgment, Release and any other final documents. 17 Either party may terminate this contract at will. R&H will continue to represent the CITY on the terms and conditions in this Agreement until the case and file are transferred to another attorney 18. R&H is an independent contractor as to the CITY 19 R&H shall maintain the following types of insurance with limits as shown: a) Workers Compensallon as required by the laws of the State of California, including Employment Liability with $250,000 limits covering all persons providing service on behalf ofR&H and all risks to such persons under this Agreement. R&H shall require its Workers Cornpensallon camer to waive MRithm [reid.hcl1yer.psa.wpd] 2 e . . 1 all rights of subrogation against the CITY and its officers and employees and any others for whom services are being provided under this Agreement. 2 3 b) Comprehensive General and Automobile Liability Insurance 4 coverage to include contractual coverage and automobile coverage for owned, 5 hired and non-owned vehicles. The policy shall have at least a combined single 6 limit of $1 ,000,000 for bodily injury and property damage. 7 c) Professional Liability Insurance with limits of at least $1 ,000,000 8 per claim. In lieu of naming the CITY as an additional insured, the policy may be endorsed as follows: 9 10 "Insurance coverage afforded by this policy shall also apply to the liability assumed by the Insured under the Agreement with the CITY OF SAN BERNARDINO for legal defense services, provided such liability results from an error, omission or negligent act of the insured, its officers, employees, agents or subcontractors. All other provisions of this policy are to remain unchanged." 11 12 13 R&H shall furnish certificates of insurance and certified copies of all policies and 14 endorsements to the City Attorney's Office evidencing the insurance coverage above required prior 15 to the commencement of performance of services hereunder, which certificates shall provide that 16 such insurance shall not be terminated or expire without thirty (30) days written notice to the City 17 Attorney's Office, and shall maintain such insurance from the time R&H commences performance 18 of services hereunder until the completion of such services. 19 All policies, with respect to the insurance coverage above required, except for the 20 Workers Compensation insurance coverage and professional liability coverage, if applicable, shall 21 obtain additional endorsements naming the CITY and all parties represented under this Agreement, 22 their employees, agents, volunteers and officers as additional named insured with respect to 23 liabilities arising out of the performance of services hereunder 24 All policies required above are to be primary and non-contributing with any 25 Insurance or self-insurance programs carried or administered by the CITY or other parties 2 6 represented under this Agreement. 27 28 /1 MRltbm [reid.hellyer.psa.\vpd] 3 e e 10 11 12 13 14 15 16 e 27 28 AIl communications and billings to the CITY are to be directed as follows: City Attorney's Office CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, CA 92418 1 20. 2 3 4 DATED' ,2005 5 6 7 8 9 DATED' ,2003 17 18 19 2 0 Approved as to form and legal content: 21 JAMES F PENMAN, 22 City Attorney 23 24 By: ~ #/~P:/ ~ / 25 26 MR/tbm [reid.he\\yer.psa.wpd] REID & HELLYER BY' Mark C. Schnitzer CITY OF SAN BERNARDINO By' Judith Valles, Mayor / /1, k/i~ 4