Agenda Item Wording:
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Reappointment of the City Attorney - Approve the reappointment of the City Attorney and Assistants and authorization for City Manager to execute a new agreement with the Peltzer Richardson Law Firm for a two-year period with monthly rates of $50,600 for year one and $52,625 for year two for in-scope and routine matters, and hourly rates of $220 and $150 for special services
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Prepared by: Reyna Rivera, Chief Deputy City Clerk, 713-4512 reyna.rivera@visalia.city; Leslie Caviglia, City Manager, 713-4332 leslie.caviglia@visalia.city
Department Recommendation: It is recommended that the Visalia City Council authorize the City Manager to execute a two-year agreement with the law firm of Peltzer Richardson, effective July 1, 2025, through June 30, 2027, with the option to extend the agreement for one additional term of one or two years. The agreement includes monthly rates of $50,600 for year one and $52,625 for year two for in-scope and routine legal services, and hourly rates of $220 and $150 for special services. It is also recommended that Ken Richardson continue to serve as City Attorney, with Alex Peltzer and Jim Koontz serving as Assistant City Attorneys.
Summary:
The City has completed its review of legal services provided by Peltzer Richardson and determined that continued engagement with the firm is in the City’s best interest. The proposed agreement outlines compensation adjustments, clarifies the scope of routine and special legal services, and includes provisions for litigation management and coordination. The agreement formalizes a two-year term beginning July 1, 2025, and identifies designated individuals to continue serving in the roles of City Attorney and Assistant City Attorneys.
Background Discussion:
The City Council recently completed a review of the legal services provided by Peltzer Richardson and expressed satisfaction with the firm’s performance and the quality of its professional legal services. Based on this positive evaluation, the Council has indicated a desire to continue the relationship under a new agreement for the period of July 1, 2025, through June 30, 2027.
The proposed agreement includes a monthly fee increase from $48,685 to $50,600 for the first year, representing an increase of approximately 3.93%. In the second year, the monthly fee will rise to $52,625. Hourly rates for special legal services will increase from $187.25 to $220 and $150, depending on the type of service.
In addition to the updated compensation, the agreement includes the following new or clarified provisions:
• Outside legal counsel oversight: The City Attorney will manage and coordinate the work of all outside legal counsel at the direction of the City Council and City Manager, including tracking the cases/assignments, receiving updates from the firms, and reviewing and tracking billing statements before they are submitted for payment.
• Defined Special Services: Certain activities are classified as "Special Services" and will require prior written approval from the City Manager. These include:
o Negotiations involving real estate or right-of-way acquisitions and dispositions.
o Retained litigation matters involving limited court appearances where Peltzer Richardson is best positioned to represent the City directly and cost-effectively, especially in cases like eminent domain or CEQA litigation.
o Legal services related to SGMA (Sustainable Groundwater Management Act), water rights, and groundwater fee matters.
The draft agreement will be updated to include insurance requirements consistent with current City standards.
Fiscal Impact: The contract will increase the in-scope/routine matters fee by $1,915/month in the first year and $3,940/month in the second year, compared to the current rate of $48,685/month. This brings the annual contract total to $607,200 for FY 2025-26 and $631,500 for FY 2026-27. The fiscal impact of the hourly rate for special services will vary depending on the City’s needs.
Prior Council Action:
1998 - 2025 - Some variation of this firm has been the firm that contracted to serve as the City Attorney since 1998. While the partners in the firm have change over the years and the firm has evolved, there has been a consistent transition through this process. In the past three contracts, the term has been for two years.
Other: N/A
Alternatives: Begin the Request for Proposal process to solicit a new firm; choose a different term for the contract.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute a new agreement with the Peltzer Richardson law firm for a two-year term, effective July 1, 2025, through June 30, 2027, with monthly compensation of $50,600 in the first year and $52,625 in the second year for in-scope services, and hourly rates of $220 and $150 for special services and to appoint the designated individuals as City Attorney and Assistant City Attorneys.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 6/30/2025
Attachments: Draft Agreement