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ORIGINAL
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES F. PENMAN
City Attorney
Subject: Professional Services Agreement between the
City of San Bernardino and the law ftrm of Gresham,
Savage, Nolan & Tilden to represent the City of San
Bernardino in the case of Ghassan N. Abdullah, Lucy
Romero, Steve Veloz, Felix Willa, Rosemary Lane,
Diane Hayes, Nathaniel Grant, Kim Goodstein, Regina
Flores, S.M. Alvarez v. City of San Bernardino, a
California Municipality, San Bernardino Valley
Municipal Water District, a Public Entity, et al. - San
Bernardino Superior Court Case No. SCVSS 126706
Dept: CITY ATTORNEY
Date: June 13,2005
Synopsis of Previous Council Action:
Mayor and Council approved the hiring of John Nolan of Gresham, Savage, Nolan & Tilden to represent the
City in the subject court action.
Recommended motion:
Adopt Resolution.
Contact person: James F. Penman
Phone:
5255
Supporting data attached: Staff Reoort
Ward:
FUNDING REQUIREMENTS: Amount:
Source:
Finance:
Council Notes:
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Agenda Item NO.~
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STAFF REPORT
Council Meeting Date: May 16. 2005
TO: Mayor and Common Council
FROM: James F. Penman, City Attorney
DATE: June 13, 2005
AGENDA ITEM: Professional Services Agreement between the City of San Bernardino and the
law firm of Gresham, Savage, Nolan & Tilden to represent the City of San
Bernardino in the case of Ghassan N. Abdullah, Lucy Romero, Steve Veloz,
Felix Willa, Rosemary Lane, DUzne Hayes, Nathaniel Grant, Kim Goodstein,
Regina Flores, S.M. Alvarez v. City of San Bernardino, a California Municipality,
San Bernardino Valley Municipal Water District, a Public Entity, et al. . San
Bernardino Superior Court Case No. SCVSS 126706
The Mayor and Common Council approved the law firm of Gresham, Savage, Nolan &
Tilden to represent the City in the above-referenced court action. Attached hereto is the Professional
Services Agreement which reflects such approval, including a ceiling of $25,000 on attorney fees
and the requirement of regular status reports.
It is requested by the City Attorney that the floor motion be adopted so that the Mayor is
authorized to execute said Professional Services Agreement on behalf of the City of San Bernardino.
That the Mayor of the City of San Bernardino is hereby authorized and directed to execute
on behalf of the City of San Bernardino the Professional Services Agreement with the law firm of
Gresham, Savage, Nolan & Tilden to represent the City in the case of Ghassan N. Abdullah, Lucy
Romero, Steve Veloz, Felix Willa, Rosemary Lane, Diane Hayes, Nathaniel Grant, Kim Goodstein,
Regina Flores, S.M. Alvarez v. City of San Bernardino, a California Municipality, San Bernardino
Valley Municipal Water District, a Public Entity, et al. - San Bernardino Superior Court Case No.
SCVSS 126706.
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RESOLUTION NO. lb(i)fY
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A PROFESSIONAL
3 SERVICES AGREEMENT BETWEEN GRESHAM, SA V AGE, NOLAN & TILDEN AND
THE CITY OF SAN BERNARDINO TO REPRESENT THE CITY IN THE CASE OF
4 Ghassan N. Abdullah, Lucy Romero, Steve Veloz, Felix Willa, Rosemary Lane, Diane Hayes,
Nathaniel Grant, Kim Goodstein, Regina Flores, S.M. Alvarez v. City of San Bernardino, a
5 California Municipality, San Bernardino Valley Municipal Water District, a Public Entity. San
Bernardino Superior Court Case No. SCVSS 126706
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7
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
'SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and directed
to execute on behalf of said City a Professional Services Agreement between Gresham, Savage,
Nolan & Tilden and 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.
SECTION 2. The authorization granted hereunder shall expire and be void and of no
further effect if the agreement is not executed by both parties and returned to the office of City
15
Clerk within sixty (60) days following effective date of the resolution.
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/II
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1/1
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III
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III
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III
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III
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III
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1/1
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III
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III
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III
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III
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A PROFESSIONAL
2 SERVICES AGREEMENT BETWEEN GRESHAM, SA V AGE, NOLAN & TILDEN AND
THE CITY OF SAN BERNARDINO TO REPRESENT THE CITY IN THE CASE OF
3 Ghassan N. Abdullah, Lucy Romero, Steve Veloz, Felix Willa, Rosemary Lane, Diane Hayes,
Nathaniel Grant, Kim Goodstein, Regina Flores, S.M. Alvarez v. City of San Bernardino, a
4 California Municipality, San Bernardino Valley Municipal Water District, a Public Entit~' - San
Bernardino Superior Court Case No. SCVSS 126706
5
6
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
7
thereof, held on the day of
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COUNCIL MEMBERS: AYES NAYS
9
ESTRADA
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LONGVILLE
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MCGINNIS
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DERRY
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KELLEY
0 14
JOHNSON
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MCCAMMACK
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meeting
, 2005, by the following vote, to wit:
ABSTAIN ABSENT
. 18
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CITY CLERK
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The foregoing Resolution is hereby approved this
day of
,2005.
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22
JUDITH V ALLES, Mayor
City of San Bernardino
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24 Approved as to form and
legal content:
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26
0 27
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o PROFESSIONAL SERVICES AGREEMENT
2 Ghassan N. 11bdllllah, Lucy Romero, Steve Veloz, Felix Willa, Rosemary Lane,
Diane Hayes, Nathaniel Grant, Kim Goodstein, Regina Flores, S.M. Alvarez
3 v. City of San Bernardino, a California Municipality,
San Bernardino Valley Municipal Waier District, a Public Entity, et al.
o
o
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1. The CITY OF SAN BERNARDL'\lO (hereinafter "CITY") and the law fJrm of
GRESHAM, SA V AGE, NOLAN & TILDEN (hereinafter "GSN&T") are the parties to this
5
6
Agreement.
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'1
GSN&T will be representing the following entities and persons in this litigation:
8
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CITY OF SAN BERNARDINO. GSN&T shall not represent any client in any type of claim against
the CITY without prior wri tten approval to do so from the CITY OF SAN BERN ARDINO through
10
11
the City Attorney's Office.
3. GSN&T shall be paid at the hourly rates set forth below:
12
Attomcys - $230.00 per hour; and,
13
Law ClcrkslParaJegals - $65.00 per hour.
14
The amounts ex pended under this agreement for attomeys fees shalJ not exceed
15
$25,000 without further approval of the Mayor and Common Council.
16
4. Bills shall be submitted at least quarterly.
17
5. The actual cost for filing fees, telephone charges, photocopying, postage, lodging,
18
mileage and related travel costs shall be Itemized when submitted to the CITY for reimbursement.
19
GSN&T may include a single charge in an amount not to exceed four percent (4%) of fees in lieu
20
21
of reimbursement for photocopying, telephone charges, and po~~age.
6. If attorney's fees are charged "portal to portal" (e.g., from office to court and
22
retum), then GSN&T shall not be entitled to reimbursement for mileage and parking fees.
7. GSN&T shall obtain approval from the CITY to retain expert consultants and other
professionals (not including court rep0l1ers) for purposes of defending the litigation. GSN&T may,
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
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Finance Department.
8.
Status reports will be submitted to CITY through the City Attorney's Office
5 shall be included.
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16.
17.
18.
19.
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3 whenever any significant event occurs, and in ;:my event at least quarterly. Information suffIcient
2
4 to set reserves, including, without limitation, potential liability exposure and percentage of fault
9.
Copies of all opinions, pleadings, discovery and motions shall be provided to the
7 City Attorney's Office which may reproduce same and provide copies to other parties or attorneys
8 in this, or other litigation.
10.
Copies of any correspondence and other documents sent to any of the defendants
10 in this action shall also be provided to the CITY through the City Attorney's Office.
11
11.
Any and all settlements shall require CITY approval. Request for settlement
12 authority shall be made through the City AtlOmey's Office which shall obtain the necessary CITY
] 31 approvals.
14 12.
In the event the settlement value of the case appears to exceed $50,000, the Cty
16 I
15 Attorney'~ Office shall be notified immediately.
13.
Only John Nolan of GRESHAM, SA V AGE, NOLAN & TILDEN or other senior
17 allomey approved by the CITY shall try this case.
18
19
20
14.
No client development costs are to be included in billings.
No continuing education expenses are to be included in billings.
Final billing shall be accompanied by copies of the Request for Dismissal,
21 SatisfactIon of Judgment, Release and any other final documents.
22
23 the CITY on the terms and conditions in this Agreement until the case and file are transferred to
Either paI1y may temlinate this contract at will. GSN&T will continue to represent
24 another attomey.
25
26
27
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GSN&T is an independent contractor as to the CITY.
GSN&T shall maintain the following types of insurance with limits as shown:
a) Workers Compensation as required by the laws of the State of
2
Exhibit "A"
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Cahfomia, including Employment Li:Jbility with $250,000 limits covering all
2
persons providing service on behalf of GSN&T and all risks to such persons
3
under this Agreement. GSN&T shall require its Workers Compensation canier
4
to waive all rights of subrogation against the CITY and its officers and
s
employees and any others for whom services are being provided under this
6
Agreement.
7
b)
Comprehensive General and Automobiie Liability Insurance
8
coverage to include contractual coverage and automobile cover1ge for owned,
9
hired and non-owned vehicles_ The policy shall have at least a combined single
10
limit of $1,000,000 for bodily injury and property damage_
11
c)
Professional Liability Insurance with limits of at least $ I ,000,000
12 ,
13
per claim_ In lieu of naming the CITY as an additional insured, the policy may
be endorsed as follows:
14
"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."
1 c
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16
17 GSN&T shall furnish certificates of insurance and certified copies of all policies
18 and endorsements to the City Attomey's Office evidencing the insurance coverage above required
.~ 9 prior to the commencement of performance of services hereunder, which certificates shall provide
20 that such insurance shall not be terminated or expire without thil1y (30) days written notice to the
21 City Attorney's Office, and shall maintain such insurance from the time GSN&T commences
22 performance of services hereunder until the completion of such services.
23 All policies, with respect to the insurance coverage above required, except for the
24 Workers Compensation insurance coverage and professional liability coverage, if applicable, shall
2 S obtain additional endorsements naming the CITY and all parties represented under this Agreement,
26
27
28
their employees, agents, v'olunteers and officers as additional named insured with respect to
liabilities arising out of the performance of services hereunder.
RLS/JS [AbdullahPrfSl'csAgr]
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DA TED:
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DA TED:
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All policies required above are to be primary and non-contribulJng with any
Insurance or 'df-insurance programs larried or administered by the CITY or other parties
represented under this Agreement
20, All 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
,2005
GRESHAM, SA V AGE, NOLAN & TILDEN
By: John Nolan
,2005
CITY OF SAN BERNARDINO
By: Judith Valles, Mayor
Approved as to fom] and
legal content:
JAMES F. PENMAN,
City Attorney
By:
RLS/JS [AbdullahPrfSvcsAgr)
4
Exhibit "A"
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1
PROFESSIONAL SERVICES AGREEMENT
2 Ghassan N. Abdullah, Lucy Romero, Steve Veloz, Felix Willa, Rosemary Lane,
Diane Hayes, Nathaniel Grant, Kim Goodstein, Regina Flores, S.M. Alvarez
3 v. City of San Bernardino, a California Municipality,
San Bernardino Valley Municipal Water District, a Public Entity, et al.
4
5
L The CITY OF SAN BERNARDINO (hereinafter "CITY") and the law firm of
GRESHAM, SA V AGE, NOLAN & TILDEN (hereinafter "GSN&T") are the parties to this
6
Agreement
7
2. GSN&T will be representing the following entities and persons in this litigation:
8
9
CITY OF SAN BERNARDINO. GSN&T 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. GSN&T shall be paid at the hourly rates set forth below:
Attorneys - $230.00 per hour; and,
Law ClerkslParalegals - $65.00 per hour.
10
11
12
13
14
The amounts expended under this agreement for attorneys fees shall not exceed
15
16
$25,000 without further approval of the Mayor and Common Council.
4. Bills shall be submitted at least quarterly.
17
18
5. The actual cost for filing fees, telephone charges, photocopying, postage, lodging,
mileage and related travel costs shall be itemized when submitted to the CITY for reimbursement
GSN&T may include a single charge in an amount not to exceed four percent (4%) of fees 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
return), then GSN&T shall not be entitled to reimbursement for mileage and parking fees,
7. GSN&T shall obtain approval from the CITY to retain expert consultants and other
19
20
21
22
23
24
25
professionals (not including court reporters) for purposes of defending the litigation. GSN&T may,
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
RLS/js [Abdull.hPrfSvcsAgr]
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1 Finance Department.
2 8. Status reports will be submitted to CITY through the City Attorney's Office
3 whenever any significant event occurs, and in any event at least quarterly. Information sufficient
4 to set reserves, including, without limitation, potential liability exposure and percentage of fault
5 shall be included.
6 9. Copies of all opinions, pleadings, discovery and motions shall be provided to the
7 City Attorney's Office which may reproduce same and provide copies to other parties or attorneys
8 in this, or other litigation.
9 10. Copies of any correspondence and other documents sent to any of the defendants
lOin this action shall also be provided to the CITY through the City Attorney's Office.
11 11. Any and all settlements shall require CITY approval. Request for settlement
12 authority shall be made through the City Attorney's Office which shall obtain the necessary CITY
13 approvals.
14 12. In the event the settlement value of the case appears to exceed $50,000, theCi ty
15 Attorney's Office shall be notified immediately.
16 13. Only John Nolan of GRESHAM, SA VAGE, NOLAN & TILDEN or other senior
1 7 attorney approved by the CITY shall try this case.
18 14. No client development costs are to be included in billings.
19 15. No continuing education expenses are to be included in billings.
20 16. Final billing shall be accompanied by copies of the Request for Dismissal,
21 Satisfaction of Judgment, Release and any other final documents.
22 17. Either party may terminate this contract at will. GSN&Twill continue to represent
23 the CITY on the terms and conditions in this Agreement until the case and file are transferred to
24 another attomey.
25 18. GSN&T is an independent contractor as to the CITY.
26 19. GSN&T shall maintain the following types of insurance with limits as shown:
27 a) Workers Compensation as required by the laws of the State of
28
RLS/js [Abdullah PrfSvcsAgr]
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California, including Employment Liability with $250,000 limits covering all
persons providing service on behalf of GSN&T and all risks to such persons
2
3
under this Agreement GSN&T shall require its Workers Compensation carner
4
to waive all rights of subrogation against the CITY and its officers and
5
employees and any others for whom services are being provided under this
6
Agreement.
7
b)
Comprehensive General and Automobile Liability Insurance
8
coverage to in<;:lude contractual coverage and automobile coverage for owned,
9
10
11
hired and non-owned vehicles, The policy shall have at least a combined single
limit of $1,000,000 for bodily injury and property damage,
c)
Professional Liability Insurance with limits of at least $1,000,000
12
per claim. In lieu of naming the CITY as an additional insured, the policy may
be endorsed as follows:
13
14
"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,"
15
16
1 7 GSN&T shall furnish certificates of insurance and certified copies of all policies
18 and endorsements to the City Attorney's Office evidencing the insurance coverage above required
20 that such insurance shall not be terminated or expire without thirty (30) days written notice to the
19 prior to the commencement of performance of services hereunder, which certificates shall provide
21 City Attorney's Office, and shall maintain such insurance from the time GSN&T commences
22 performance of services hereunder until the completion of such services.
23 All policies, with respect to the insurance coverage above required, except for the
24 Workers Compensation insurance coverage and professional liability coverage, if applicable, shall
25 obtain additional endorsements naming the CITY and all parties represented under this Agreement,
26 their employees, agents, volunteers and officers as additional named insured with respect to
27
28
liabilities arising out of the performance of services hereunder.
RLS/jS [Abdullah PrfSvcsAgr]
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1 All policies required above are to be primary and non-contributing with any
2 insurance or self-insurance programs canied or administered by the CITY or other parties
3 represented under this Agreement.
4
20.
All communications and billings to the CITY are to be directed as follows:
5
City Attorney's Office
CITY OF SAN BERNARDINO
300 North "D" Street
San Bernardino, CA 92418
6
7
DATED:
,2005
GRESHAM, SA V AGE, NOLAN & TILDEN
8
9
10
11
By: John Nolan
12
DATED:
,2005
CITY OF SAN BERNARDINO
13
By: Judith Valles, Mayor
16
17
18
19
20
23 Approved as to form and
legal content:
24
JAMES F. PENMAN,
25 City Attorney
26
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