HomeMy WebLinkAboutResolution - SA 15-01 STATE OF CALIFORNIA ) RESOLUTION NO. SA 15-01
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE GOVERNING BOARD OF THE
SUCCESSOR AGENCY TO THE SAN JACINTO
REDEVELOPMENT AGENCY, APPROVING AN
ENGAGEMENT LETTER WITH BEST BEST & KRIEGER
LLP, AND AUTHORIZING THE INITIATION OF
LITIGATION REGARDING A HOUSING AUTHORITY
ADMINISTRATIVE ALLOWANCE
WHEREAS, pursuant to Health and Safety Code section 34173(d), the
City of San Jacinto is the successor agency ("Successor Agency") to the dissolved San
Jacinto Redevelopment Agency; and
WHEREAS, in order to not impose these new housing obligations on the
City of San Jacinto's general fund, the City Council of San Jacinto established a
housing authority, in accordance with state law; and
WHEREAS, in 2014, the California Legislature passed, and the Governor
signed into law, AB 471, which authorizes the payment of an allowance to a housing
authority assuming the housing obligations of a former redevelopment agency, in an
amount up to one percent (1%) of the property taxes annually allocated to the
successor agency's Redevelopment Obligation Retirement Fund, but not less than
$150,000 per year; and
WHEREAS, notwithstanding AB 471, the California Department of
Finance ("DoF") has refused to approve the allowance for housing authorities of cities,
claiming that the allowance was only intended to compensate housing authorities that
were not associated with the host jurisdiction (i.e., a county housing authority operating
in a city where there is no city housing authority); and
WHEREAS, there is no language in AB 471 that would support such a
narrow interpretation; and
WHEREAS, the Successor Agency intends to seek a judicial
determination that the DoF's interpretation of AB 471 is incorrect, and to ensure a
funding source for the San Jacinto Housing Authority's administrative costs; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED, ordered, and determined by the
governing board of the Successor Agency to the San Jacinto Redevelopment Agency:
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SECTION 1 . Recitals. The Recitals set forth above are true and correct
and are incorporated into this Resolution by this reference.
SECTION 2. CEQA Compliance. Pursuant to California Environmental
Quality Act (Pub. Resources Code, §§ 21000 et sec..) ("CEQA") and the State and local
CEQA Guidelines, the governing board of the Successor Agency determine that the
initiation of litigation proposed by this Resolution is not an action that may have a
significant effect on the environment, in that this action is merely litigation which is
expected to result in a funding mechanism, neither of which will have any effect on the
environment. The City Clerk, acting on behalf of the Successor Agency, is authorized
and directed to file a Notice of Exemption with the appropriate official of the County of
Riverside, California, within five (5) days following the date of adoption of this
Resolution.
SECTION 3. Approval of Engagement Letter with Best Best & Krieger
LLP. The Governing Board of the Successor Agency hereby approves the
accompanying engagement letter with Best Best & Krieger LLP, in substantially the form
attached to this Resolution as Exhibit A. Best Best & Krieger is hereby authorized to
file suit, in the appropriate forum, for a judicial determination of the applicability of AB
471.
SECTION 4. Further Acts. The Executive Director and Best Best &
Krieger, and their respective designees, are hereby authorized and directed to take any
action necessary to carry out the purposes of this Resolution and comply with
applicable law.
SECTION 5. Severability. If any provision of this Resolution or the
application of any such provision to any person or circumstance is held invalid, such
invalidity shall not affect other provisions or applications of this Resolution that can be
given effect without the invalid provision or application, and to this end the provisions of
this Resolution are severable. The RDA Successor Agency declares that the RDA
Successor Agency would have adopted this Resolution irrespective of the invalidity of
any particular portion of this Resolution.
SECTION 6. Certification. The City Clerk, acting on behalf of the RDA
Successor Agency, shall certify to the adoption of this Resolution.
SECTION 7. Effective Date. This Resolution shall become effective
immediately upon its adoption.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council, serving as the successor agency to the dissolved San Jacinto Redevelopment
Agency, on the 3rd day of February, 2015, by the following vote:
AYES: Bartel, Ledezma, Miller, Ruiz
NAYS: None
ABSENT: Kotyuk
ABSTAIN: None
City of San Jacinto
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Crystal P4z, Chair
ATTEST:
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Richard Miller, Board Secretary
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EXHIBIT A
Engagement Letter with Best Best & Krieger LLP
[Attached behind this page]
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BEST BEST & KRIEGER t
ATTORNEYS AT LAW
INDIAN WELLS RIVERSIDE
(760)568-2611 400 Capitol Mall.Suite 1650 051)656-1450
— Sacramento,Celifomis 95814 —
IRVINE (916)325400a SAKI 01EGO
(949)263.2000 WE)52G-1JOD
_ (916)325-4010 Fax _
109 ANGELES BBKlaw.com WALNUT CREEK
(213)617-8100 (925!917-3300
ONTARIO
Iris P.Yang
(916)551-2826
iriv/an®do6k1aw,ecm
February 3, 2015
VIA ELECTRONIC MAIL
Tim Hults, Executive Director
San Jacinto Successor Agency and
San Jacinto Housing Authority
595 S. San Jacinto Avenue, Building A
San Jacinto, CA 92583
Dear Mr. Hults:
Best Best & Krieger LLP is pleased to represent the San Jacinto Successor Agency and
the Housing Authority of San Jacinto (collectively "San Jacinto") with respect to a dispute with
the California Department of Finance ("DOF") regarding its denial of a "housing cost
administrative allowance" to your Housing Authority. We will represent you in common with
the successor agency and housing authority of the City of Riverside, the City of Santa Rosa and
the County of Sonoma (collectively, the "Other Petitioners"). The primary issue involves DOF's
interpretation of certain statutes which allow a successor agency to claim a housing cost
administrative allowance for a housing authority that is the housing successor to the former
redevelopment agency. This letter, including the attached Standard Terms, constitutes our
agreement setting forth the terms of our representation.
Brent Hawkins and I will be the attorneys primarily responsible for providing the
litigation services to you under this Agreement. We each have a current billing rate of $310 per
hour. On occasion we may ask other attorneys or legal assistants to assist us in providing
services under our supervision. A schedule of billing rates for all attorneys and legal assistants is
included in the Standard Terms attached to this letter. In addition, the rates shall be
automatically adjusted as follows: On July 1, 2015 and every July 1st thereafter during the term
of this Agreement, they shall be adjusted for the change in the cost of living for the twelve (12)
month period published for the month of May, as shown by the U.S. Department of Labor in its
All Urban Consumers Index set forth for the San Francisco-Oakland-San Jose area; provided
however, that such adjustment shall never be lower than zero percent (0%), nor more than five
percent (5%).
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BEST BEST & KRIEGER
ATTORNEYS AT LAW
Tim Hults, Executive Director
February 3, 2015
Page 2
As you know Best Best & Krieger LLP currently represents you in other matters.
However in this litigation matter, we will be jointly representing you and the Other Petitioners
who are also existing clients of the firm.
Although you and the Other Petitioners have a common interest in this proposed
litigation, careful thought must be given to conflicts of interest. It is possible that differences of
opinion and different interests may develop among you. This could occur, for example, if you
and the Other Petitioners have different views on strategy, whether to appeal, and other issues.
In addition, our firm serves as City Attorney or special counsel for a number of cities and
counties that have successor agencies and housing authorities, however none of these clients has
an interest in this matter that is not comparable to the interest of you or the Other Petitioners.
However, an attorney cannot represent clients in unrelated matters if those two clients have a
legal conflict or other adversity between them, even if that conflict is unrelated to the work the
attorney is handling. We cannot undertake this representation if it would impair our ability to
continue to represent our existing clients.
Accordingly, your retention of our firm to represent you along with the Other Petitioners
in this matter represents your agreement to waive any conflict of interest that may exist among
you and the Other Petitioners, accepting that any limitation on our ability to represent individual
cities' or counties' interests made necessary by our service to you and the Other Petitioners is
acceptable to you in light of the efficiency, cost savings and other benefits to you of joint
representation. You agree not to share with us any confidential information which you do not
wish us to share with the Other Petitioners and to look to your own City Attorney or other
independent counsel for any advice you may desire as to issues in which your interests do not
align with those of the Other Petitioners.
Further, you agree that we may represent you in this case and represent our existing
general and special counsel clients, and new local entity clients, on matters unrelated to this case
even if you have a legal conflict or other adversity with that other local government, such as a
different position on a claim against an insurance risk pool, a boundary dispute, a commercial
dispute or any other inter-agency disagreement. You agree not to share with us any confidential
information unrelated to this case which might impair our ability to represent our existing
general and special counsel clients and other local governments in unrelated matters
notwithstanding any legal conflict or other adversity between you and those other local
governments.
You should consider these conflict waivers carefully and of course, San Jacinto should
feel free to consult with your attorney or independent counsel before signing this Agreement.
You agree that our fees and charges for services in this case will be divided equally
between you and the Other Petitioners. It is possible, pursuant to a separate agreement between
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BEST BEST & KRIEGER
ATTORNEYS AT UAW
Tim Hults, Executive Director
February 3, 2015
Page 3
the City of Santa Rosa and other public entities that the fees and charges for services may be
partially reimbursed by contributions from those other public entities, however Best Best &
Krieger LLP is not a party to that agreement and that agreement shall not affect the obligations
of San Jacinto under this Agreement.
In additional to billing rates, the Standard Terms attached to this letter describes the other
aspects of our firm's billing policies. You should consider the Standard Terms part of this
agreement as it binds both of us. For that reason, you should read it carefully.
On a personal note, I am pleased that you have selected Best Best & Krieger LLP to
represent you. I look forward to continuing to work with you and appreciate your confidence in
selecting us to represent you on these matters. If you have any questions at any time about our
services or billings, please do not hesitate to call me.
If this letter meets with your approval, please sign and date it, and return the original to
us in the enclosed envelope. We have enclosed a separate signed copy of this letter and
memorandum for your records.
Please feel free to call me if you have any questions.
Sincerely,
/S/Iris Yang
Iris P. Yang
for BEST BEST & KRIEGER LLP
AGREED AND ACCEPTED:
By:
Dated:
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BEST BEST & KRIEGER LLP'S STANDARD TERMS
This statement of Standard Terms, along with the terms stated in the accompanying
letter, constitutes the Agreement for Legal Services ("Agreement") between you and Best Best &
Krieger LLP ("BB&K").
Effective Date
The Agreement is effective the date BB&K first performed services on your behalf. If
we have performed legal services at your request while waiting for you to sign and return this
Agreement, you will still be required to pay for those services even if you decide not to sign and
return this Agreement.
Confidentiality and Absence of Conflicts
An attorney-client relationship requires mutual trust between the client and the attorney.
It is understood that communications exclusively between counsel and the client are confidential
and protected by the attorney-client privilege.
To also assure mutuality of trust, we maintain a conflict of interest index. The California
Rules of Professional Conduct defines whether a past or present relationship with any party
prevents us from representing you. Similarly, your name will be included in our list of clients to
ensure we comply with the Rules of Professional Conduct with respect to you. Additional
conflicts checks will be performed for any new matters for which you request our services.
Fees for Professional Services
Our century of experience has shown that the attorney-client relationship works best
when there is mutual understanding about fees, expenses, billing and payment terms. Therefore,
this statement is intended to explain our billing policies and procedures. You are encouraged to
discuss with us any questions you have about these policies and procedures. You may direct
specific questions about a bill to the attorney with whom you work or to Judy Ismael of our
Accounting Department. Any specific billing arrangements different from those set forth below
will be confirmed in a separate written agreement between you and the firm.
Our fees for legal services are based on the total amount of time expended on all work
necessary to your representation, multiplied by the hourly rate then in effect for the person doing
the work. Hourly rates are set to reflect the skill and experience of the attorney or other legal
personnel rendering services on your behalf. Time is accrued on an incremental basis in
minimum increments of 0.1 hours. From time to time, those assigned to work on your matter
may need to confer among themselves concerning your representation. When that occurs, each
person will charge for the time expended in conference. It may on occasion be necessary or
advisable for more than one person to attend a meeting, court hearing or other proceeding and
each will charge for the time that is spent in making those appearances. We will also charge for
waiting time in court and elsewhere and for all travel time both out of town and locally. Time
spent on the telephone discussing your matter, including telephone calls with you, also will be
billed, as well conferences with others such as investigators, consultants, or experts. For this
matter, partners shall be billed at $310 per hour, associates at $245 per hour and paralegals at
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$170 per hour, These hourly rates are reviewed annually to accommodate rising firm costs and
to reflect changes in attorney status as lawyers attain new levels of legal experience. Any
increases resulting from such reviews will be instituted automatically and will apply, after
advance notice to you.
Fees For Other Services, Costs and Expenses
We attempt to serve all our clients with the most effective support systems available.
Miscellaneous expenses are covered by a standard administrative charge, currently set at 4%,
which compensates the cost of normal photocopying, long distance telephone calls, regular mail
postage, telecopy charges and other expenses as to which individual itemization in impractical.
Costs specific to your matter such as investigation and filing fees, process server fees, required
costs of travel, out-of-town lodging and meals, mileage at the current IRS-approved rate per
mile, courier and express delivery and mail services, deposition and court reporter fees,
computerized legal research, major photocopying, conference calls and staff overtime, as needed,
are itemized and will appear on your monthly statement as separate items.
We may need to advance costs and incur expenses on your behalf on an ongoing basis.
These items are separate and apart from attorneys' fees and, as they are out-of-pocket charges,
we need to have sufficient funds on hand from you to pay them when due. We will advise the
client from time to time when we expect items of significant cost to be incurred, and it is
required that the client send us advances to cover those costs before they are due.
Monthly Invoices and Payment
Best Best & Krieger LLP will provide you with monthly invoices for legal services
performed and expenses incurred. Invoices are due and payable upon receipt.
Each monthly invoice reflects both professional and other fees for services rendered
through the end of the prior month, as well as expenses incurred on your behalf that have been
processed by the end of the prior month. Processing of some expenses is delayed until the next
month and billed thereafter.
Our fees are not contingent upon any aspect of the matter and are due upon receipt. All
billings are due and payable within ten days of presentation unless the full amount is covered by
the balance of an advance held in our trust account. If a bill is not paid within 30 days, a late
charge of one percent per month on the unpaid invoice shall be added to the balance owed,
commencing with the next statement and continuing until paid.
It is our policy to treat every question about a bill promptly and fairly. From time to time
clients have questions about the format of the bill or description of work performed. If you have
any such questions, please ask them when you receive the bill so we may address them on a
current basis.
Changes in Fee Arrangement and Budgets
It may be necessary under certain circumstances for a client to increase the size of
required advances for fees after the commencement of our engagement and depending upon the
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scope of the work. For example, prior to a protracted trial or hearing, the firm may require a
further advance payment to the firm's trust account sufficient to cover expected fees. Any such
changes in fee arrangements will be discussed with you and mutually agreed in writing.
Because of the uncertainties involved, any estimates of anticipated fees that we provide at
your request for budgeting purposes, or otherwise, can only be an approximation of potential
fees.
Client's Duties
You agree to be truthful with us, to cooperate, to keep us informed of developments that
relate to our services, to abide by this Agreement, to pay our bills on time, and to keep us advised
of your current address, telephone number and your place of employment and telephone number.
You also agree to respond promptly, fully and accurately to requests for information or
documents and to other requests for assistance made by BB&K.
Experts
To prepare or present your case or legal position, we may need expert witnesses,
consultants, or investigators. We will select and engage them and you are responsible for their
bills. When feasible, we will consult with you before completing the engagement.
Settlement
If we are hired to pursue or defend a claim on your behalf, BB&K will not settle the
claim without your approval, and you have the absolute right to accept or reject any offer of
settlement. We will notify you promptly of the terms of any settlement proposal that we receive
on your behalf.
Disclaimer of Guaranty
BB&K can make no promises or guarantees about the outcome of this representation.
Our comments about the outcome of your matter are expressions of opinion only.
Independent Contractor
BB&K shall perform all legal services requested pursuant to this Agreement as an
independent contractor of you and shall remain, at all times as to you, a wholly independent
contractor with only such obligations as are required under this Agreement. Neither you, nor any
of your employees, shall have any control over the manner, mode or means by which BB&K, its
agents, or employees, render the legal services contemplated under this Agreement, except as
otherwise set forth. You shall have no voice in the selection, discharge, supervision or control of
BB&K's employees, representatives or agents, or in fixing their number, compensation or hours
of service.
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Insurance
r
We are also pleased to let you know that BB&K carries errors and omissions insurance
with Lloyd's of London. After a standard deductible, this insurance provides coverage beyond
what is required by the State of California.
Cessation of Representation
This Agreement and the services to rendered under it may be terminated at any time upon
ten (10) days prior written notice from either party, with or without cause. In the event of such
termination, BB&K shall be paid for all services authorized by you and performed up through
and including the effective date of termination. "Cause" includes your failure to pay or other
breach of this Agreement, refusal to cooperate with us or follow our advice on a material matter,
or any fact or circumstance that would render our continuing representation unlawful or
unethical.
After our services are concluded, we will, upon your request, deliver your file to you,
along with any funds or property of yours in our possession.
Modification
This Agreement may be modified by subsequent agreement between you and BB&K only
by a writing signed by both parties.
Entire Agreement
This statement of Standard Terms and the letter to which it is attached constitute the
entire Agreement between you and BB&K. No other agreement or statement made on or before
the effective date of this Agreement is binding.
Severability
If any provision of this Agreement is held in whole or in part to be unenforceable for any
reason, the remainder of that provision and the rest of the Agreement will remain in effect.
Conflict Waiver
In a large firm with multiple offices representing public and private clients, actual or
possible conflicts sometimes arise between existing or potential clients. We may be required to
ask for a conflict waiver in that event. BB&K asks for your understanding and cooperation if we
request a conflict waiver in order to undertake or continue representation of another client in a
manner that will not be specifically detrimental or adverse to you in any matter in which another
BB&K attorney represents you.
California Law
This Agreement is deemed to be entered into at our office in Sacramento, California and
shall be interpreted according to California law, excluding its conflict of laws provisions.
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Negotiated Terms
This is a negotiated agreement that can be accepted or rejected by the parties. The terms
of the Agreement are not set by law. You may consult independent counsel before entering into
this Agreement.
Additional Terms
The scope of BB&K's representation in this matter is fully set forth in the letter which is
part of this Agreement as are any additional terms relating to this representation.
If, after initial representation, you decide to retain our services for other matters, and we
agree to perform them, these Standard Terms shall apply.
BEST BEST & KRIEGER LLP
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