CONTRACT SERVICES AGREEMENT FOR
GENERAL COUNSEL SERVICES
LOMPOC REDEVELOPMENT AGENCY
This CONTRACT SERVICES AGREEMENT FOR GENERAL COUNSEL SERVICES
(the “Agreement”) is effective as of the 1st day of December, 2009, by and between the law firm
of ALESHIRE & WYNDER, LLP, a California limited liability partnership (“A&W”), and the
LOMPOC REDEVELOPMENT AGENCY, a public body, corporate and politic (“Agency”).
The term “Agency” shall also include all boards, committees, financing authorities, and other
bodies of Agency.
1. APPOINTMENT
Agency’s Board hereby appoints Joseph W. Pannone as the General Counsel, and hires
A&W as its General Counsel, to render such legal services as are customarily rendered by such
officials and as further specified herein, including attending meetings of the Agency Board and
other boards and bodies of Agency, and its affiliated agencies, as directed by Agency Board or
its Executive Director.
Notwithstanding the foregoing appointment, the designated General Counsel may be
established from time to time or modified by resolution of the Agency Board. A&W represents
it employs, or will employ at its own expense, all personnel required for the satisfactory
performance of any and all tasks and services set forth herein. A&W shall not replace the
designated General Counsel (or any successor to such person) without the Agency Board’s prior
approval, except from time to time necessary due to illness or vacation scheduling. Approval of
any such temporary substitute shall be obtained from the Executive Director. General Counsel
may appoint various assistants and deputies as General Counsel deems appropriate, without the
need for amendment hereof.
2. SCOPE OF WORK AND DUTIES
A. A&W shall perform any and all work necessary for the provision of General
Counsel services to Agency, including, without limitation, the following:
(i) Attendance at Agency Board meetings unless excused by the Executive
Director or his/her designee, and other board and commission meetings on request of the
Executive Director or his/her designee; and
(ii) Provide legal advice, written legal opinions, and consultation on all
matters affecting the Agency to the Agency Board, Executive Director, boards, commissions,
committees, officers, and employees of Agency and as requested by the Agency Board, the
Executive Director, or his/her designee, in accordance with such policies and procedures as may
be established by Agency from time to time; and
(iii) Be available for telephone consultation with Agency staff, as needed on
legal matters which are within their area of operation and maintain office hours at City Hall as
requested by the Executive Director at times mutually agreed to by the Executive Director and
designated General Counsel; and
(iv) Prepare or review necessary legal documents such as: ordinances and
resolutions; all agreements of any nature; all real property instruments of any nature including
purchase agreements and escrows, leases, covenants, deeds, easements and licenses; bond size,
amount, and offering terms and conditions; public works construction documents including bid
specifications, contracts, bonds, insurance, liens and related documents; memorandums of
understanding; franchise agreements; and all similar documents, all as requested by Agency; and
(v) Represent and advise Agency on pending and potential litigation as
requested by Agency; notwithstanding the foregoing, it is expressly understood that A&W shall
not be responsible for any pending litigation matter(s) handled by attorneys previously or
otherwise employed by the Agency until all files have been transferred to A&W and A&W has
specifically appeared in the matter(s) as attorneys of record on behalf of Agency; and
(vi) Monitor pending and current legislation and case law as appropriate; and
(vii) Supervise outside legal services, if any.
B. A&W, as a full-service law firm, is prepared to, and will upon request of Agency,
provide representation to Agency in all of its legal affairs, including, but not limited to, land use,
environmental, toxics, housing, finance, contracts, and other matters, except where conflicts exist
or where the Agency Board may otherwise direct. The General Counsel shall represent Agency
in all of the foregoing legal matters, and in initiating and defending all litigation unless otherwise
directed by the Agency Board.
C. The General Counsel will keep Agency informed as to the progress and status of
all pending matters in accordance with such procedures as the Agency may establish from time
to time. The General Counsel is expected to manage, control and oversee the delivery of legal
services in a competent, professional, and cost-effective manner. All legal services shall be
properly supervised and all personnel shall be qualified to handle the work assigned. If outside
special counsel is retained, unless otherwise directed by the Agency Board, such special counsel
shall be supervised by the General Counsel.
D. All legal services shall be coordinated under the direction of the Executive
Director. Notwithstanding any other provision contained herein, any legal services can only be
authorized by the Agency Board or Executive Director. Nothing in this Agreement shall be
construed in any manner as limiting the ultimate and absolute discretion of the Agency Board, at
any time, to assign or reassign legal matter of Agency from or to A&W.
3. AGENCY DUTIES
Agency agrees to provide such information, assistance, cooperation, and access to books,
records, and other information as is necessary for A&W to effectively render its professional
services under this Agreement. To the extent Agency desires services to be rendered on site,
Agency, at Agency’s expense, will make available sufficient office space, furniture, telephones,
computers, facsimile machines, and secretarial support, as approved by the Executive Director,
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as may be necessary therefor. Agency further agrees to abide by this Agreement, and to timely
pay A&W’s bills for fees, costs, and expenses, as established by this Agreement. However,
nothing in this Section, or any other part of this Agreement, shall be construed in any manner as
limiting the ultimate and absolute discretion of the Agency Board, at any time, to assign or
reassign legal matters of Agency from or to A&W.
4. PERSONNEL
Assignments may be modified as provided in Section 1 above and except as so provided,
A&W will exercise its discretion to utilize whichever attorney(s) (and staff) it determines to be
best suited to its rendition of legal services under this Agreement, consistent with the competent
and efficient rendering of legal services, and with a view toward rendering such services in an
economically efficient manner.
5. COMPENSATION
A. Except as otherwise set forth in Exhibit A Agency agrees to pay A&W for
any legal services provided pursuant to this Agreement at the rate of One Hundred Eighty
Dollars ($180.00) per hour.
B. Payment of Compensation shall be as set forth in Exhibit B.
6. BOND OR FINANCIAL SERVICES; SERVICES FOR THIRD PARTIES
Notwithstanding the foregoing, (i) in the event Agency determines A&W shall act as
Bond Counsel for the issuance of Agency bonds, the compensation provisions set forth in
Exhibit A shall apply; and (ii) where legal services are subject to cost recovery from a private
third party, such as a developer, the hourly rate will be Three Hundred Dollars ($300) per hour,
or such other increased hourly rate as has been agreed to by such third party.
7. COSTS AND OTHER CHARGES
A&W may incur various costs and expenses in rendering the legal services required by
this Agreement which, if customary and necessary for the performance of legal services
hereunder, shall be reimbursable by Agency. These costs and expenses are described in more
detail in Exhibit A. All clerical services, ordinary travel costs (e.g., from the A&W office to
court or City Hall), and miscellaneous expenses (e.g., telephone and facsimile charges) are
included within the rates set forth above, and there shall be no additional charges for such
expenses. Agency agrees to reimburse A&W for expenses such as experts’ or consultant fees, or
litigation expenses such as court reporters, which shall be passed through to the Agency at the
actual costs thereof. Reimbursable costs shall not include any overhead or administrative charge
by A&W or A&W’s cost of equipment or supplies except as provided herein.
A&W may determine it necessary or appropriate to use one or more outside investigators,
consultants, or experts in rendering the legal services required (particularly if a matter goes into
litigation). Agency will be responsible for paying such fees and charges. A&W will not,
however, retain the services of any outside investigators, consultants, or experts without the prior
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agreement of Agency. A&W will select any investigators, consultants, or experts to be hired
only after consultation with Agency.
Extraordinary travel expenses, including transportation, meals, and lodging, when
incurred on behalf of the client shall be reimbursed by Agency only with the prior agreement of
Agency. If the General Counsel or any Assistant or Deputy General Counsel needs to spend the
night in Agency due to the late completion or early start of any meeting, then A&W would be
reimbursed actual costs for meals and lodging at no more than One Hundred Fifty Dollars
($150.00) per day.
Finally, periodically, when on-site, A&W personnel may be required to make local and
long-distance telephone calls, or make photocopies, or incur other expenses on behalf of the
Agency as well as other clients. A&W will not be charged for such expenses and, in exchange,
will not charge the Agency for calls made from our office or other locations to the City.
8. STATEMENTS
A&W shall render to Agency a statement for fees, costs, and expenses incurred on a
periodic basis (generally monthly). Such statement(s) shall indicate the basis of the fees,
including the hours worked, the hourly rate(s), and a brief description of the work performed.
Separate billing categories can be established to track costs associated with Agency funding
categories or to track project costs, or such other basis as the Agency may direct. Reimbursable
costs shall be separately itemized.
Payments shall be made by Agency within thirty (30) days after receipt of the statement,
except for those specific items on an invoice which are contested or questioned and are returned
by Agency with a written explanation of the question or contest, within thirty (30) days after
receipt of the invoice. Payments made more than thirty (30) days after the due date shall draw
interest at the legal rate.
9. PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT
The experience, knowledge, capability and reputation of A&W, its partners, associates,
and employees, was a substantial inducement for Agency to enter into this Agreement.
Therefore, A&W shall not contract with any other person or entity to perform, in whole or in
part, the legal services required under this Agreement without the written approval of Agency.
In addition, neither this Agreement, nor any interest herein, may be transferred, assigned,
conveyed, hypothecated, or encumbered voluntarily, or by operation of law, whether for the
benefit of creditors, or otherwise, without the prior written approval of Agency. Adding
attorneys to A&W, changes in the partnership, name changes and similar changes shall not be
deemed a transfer or assignment requiring approval of Agency or amendment hereof.
10. INDEPENDENT CONTRACTOR
A&W shall perform all legal services required under this Agreement as an independent
contractor of Agency, and shall remain, at all times as to Agency, a wholly independent
contractor with only such obligations as are required under this Agreement. Neither Agency, nor
any of its employees, shall have any control over the manner, mode, or means by which A&W,
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its agents or employees, render the legal services required under this Agreement, except as
otherwise set forth. Agency shall have no voice in the selection, discharge, supervision or control
of A&W employees, servants, representatives, or agents, or in fixing their number,
compensation, or hours of service.
11. INSURANCE
A&W shall procure and maintain, at its sole cost and expense, in a form and content
satisfactory to Agency, during the entire term of this Agreement, including any extension
thereof, the following policies of insurance:
(a) Comprehensive General Liability Insurance. A policy of comprehensive general
liability insurance written on a per occurrence basis in an amount not less than a combined single
limit of One Million Dollars ($1,000,000.00), and One Million Dollars ($1,000,000.00) products
and completed operations.
(b) Workers’ Compensation Insurance. A policy of workers’ compensation insurance
in such amount as will fully comply with the laws of the State of California and which shall
indemnify, insure and provide legal defense for both A&W and Agency against any loss, claim
or damage arising from any injuries or occupational diseases occurring to any worker employed
by or any persons retained by the Contractor in the course of carrying out the work or services
contemplated in this Agreement.
(c) Automobile Insurance. A policy of comprehensive automobile liability insurance
written on a per occurrence basis in an amount not less than a combined single limit liability of
One Million Dollars ($1,000,000.00). Said policy shall include coverage for owner, non-owner,
leased and hired cars.
(d) Errors and Omissions Insurance. A policy of professional liability issuance
written on a claims made basis in an amount not less than Three Million Dollars ($3,000,000.00).
Except for the policy of professional liability insurance, all of the above policies of
insurance shall be primary insurance and shall name Agency, its officers, employers and agents
as additionally insured. Except for the policy of professional liability insurance, the insurer shall
waive all rights of subrogation and contribution it may have against the Agency, its officers,
employees and agents and their respective insurers. Except for the policy of professional
liability insurance, all of said policies of insurance shall provide that said insurance may not be
amended or canceled without providing thirty (30) days prior written notice by registered mail to
the Agency. In the event any of said policies of insurance are cancelled, the attorney shall, prior
to the cancellation date, submit new evidence of insurance in conformance with this Section to
the Agency. Failure to do so is cause for termination.
12. INDEMNIFICATION
A. A&W agrees to indemnify Agency, its officers, employees and agents against,
and will hold and save each of them harmless from, any and all actions, suits, claims, damages to
persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein
“claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out
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of or in connection with the work, operations or activities of A&W, its agents, employees,
subcontractors, or invitees, provided for herein or arising from the acts or omissions of A&W
hereunder, or arising from A&W’s performance of or failure to perform any term, provision,
covenant or condition of this Agreement, except to the extent such claims or liabilities arise from
the negligence or willful misconduct of Agency, its officers, agents or employees.
B. Agency acknowledges A&W is being appointed as General Counsel, an official of
Agnecy. Accordingly, the Agency is responsible pursuant to Government Code Section 825 for
providing a defense for the General Counsel for actions within the scope of its engagement
hereunder. Therefore, Agency agrees to undertake its statutory duty and indemnify A&W, its
officers, employees and agents against and will hold and save each of them harmless from, any
and all claims or liabilities that may be asserted or claims by any person, firm or entity arising
out of or in connection with the work, operations or activities of A&W within the course and
scope of its employment hereunder, but nothing herein shall require Agency to indemnify A&W
for liability arising from its own negligence. In connection herewith:
(i) Agency will promptly provide a defense and pay any judgment rendered
against the Agency, its officers, agency or employees for any such claims or liabilities arising out
of or in connection with such work, operations or activities of Agency hereunder;
(ii) In the event A&W, its officers, agents or employees is made a party to any
action or proceeding filed or prosecuted against Agency for such damages or other claims solely
arising out of or in connection with the work operation or activities of Agency hereunder,
Agency agrees to pay to A&W, its officers, agents or employees any and all costs and expenses
incurred by attorney, its officers, agents or employees in such action or proceeding, including but
not limited to, legal costs and attorneys’ fees.
13. NOTICES
Notices required pursuant to this Agreement shall be given by personal service upon the
party to be notified, or by delivery of same into the custody of the United States Postal Service,
or its lawful successor; postage prepaid and addressed as follows:
AGENCY: Lompoc Redevelopment Agency
100 Civic Center Plaza
Lompoc, CA 93436
Attention: Executive Director
ATTORNEY: Aleshire & Wynder, LLP
1515 W. 190t Street, Suite 565
Gardena, California 90248
(310) 527-6660 (office)
(310)532-7395 (fax)
Attention: Joseph W. Pannone
Service of a notice by personal service shall be deemed to have been given as of the date
of such personal service. Notice given by deposit with the United States Postal Service shall be
deemed to have been given two (2) consecutive business days following the deposit of the same
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in the custody of said Postal Service. Either party hereto may, from time to time, by written
notice to the other, designate a different address or person which shall be substituted for that
specified above.
14. NON-DISCRIMINATION
In connection with the execution of this Agreement, A&W shall not discriminate against
any employee or applicant for employment because of race, religion, marital status, color, sex,
handicap, sexual persuasion, or national origin. A&W shall take affirmative action to ensure that
applicants are employed, and that employees are treated fairly during their employment, without
regard to their race, religion, color, sex, marital status, handicap, sexual persuasion, or national
origin. Such actions shall include, but not be limited to the following: employment, promotion,
demotion, transfer, duties assignment; recruitment or recruitment advertising; layoff of
termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship.
15. TERM, DISCHARGE AND WITHDRAWAL
This Agreement shall commence on December 1, 2009, and shall remain in full force and
effect until terminated by either party hereto. Agency may discharge A&W at any time. The
General Counsel shall have no right to hearing or notice, and may be discharged with or without
notice. A&W may withdraw from Agency’s representation at any time, to the extent permitted
by law, and the Rules of Professional Conduct, upon at least sixty-days’ (60-days’) notice to
Agency.
In the event of such discharge or withdrawal, Agency will pay A&W professional fees
and costs, in accordance with this Agreement, for all work done (and costs incurred) through the
date of cessation of legal representation, including without limitation, proration of the monthly
retainer amount to the date of such cessation. Agency agrees to execute, upon request, a
stipulation in such form as to permit A&W to withdraw as Agency’s attorneys of record in any
legal action then pending. A&W shall deliver all documents and records of Agency to Agency,
or to counsel designated by Agency, and assist to the fullest extent possible in the orderly
transition of all pending matters to Agency’s new counsel.
16. CONFLICTS
A&W has no present or contemplated employment which is adverse to the Agency.
A&W agrees that it shall not represent clients in matters either litigation or non-litigation against
the Agency. However, A&W may have past and present clients or may have future clients,
which, from time to time, may have interests adverse to Agency, and A&W reserves the right to
represent such clients in matters not connected with its representation of the Agency.
If a potential conflict of interest arises in A&W’s representation of two clients, if such
conflict is only speculative or minor, A&W shall seek waivers from each client with regards to
such representation. However, if real conflicts exist, A&W would withdraw from representing
either client in the matter, and assist them in obtaining outside special counsel.
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17. INTERPRETATION OF AGREEMENT AND FORUM
This Agreement shall be construed and interpreted both as to validity and performance of
the parties in accordance with the laws of the State of California. In the event of any dispute
hereunder, forum shall be the Superior Court, Santa Barbara County.
18. INTEGRATED AGREEMENT; AMENDMENT
This Agreement contains all of the agreements of the parties and cannot be amended or
modified except by written agreement. No prior oral or written understanding shall be of any
force or effect with respect to those matters covered in this Agreement; and the current
agreement between the Agency and A&W regarding legal services for the Agency is hereby
terminated as of December 1, 2009. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
19. CORPORATE AUTHORITY
The persons executing this Agreement on behalf of the parties hereto warrant that they
are duly authorized to execute this Agreement on behalf of said parties and that in so executing
this Agreement the parties hereto are formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
of execution by the Agency.
Dated: December 1, 2009 “AGENCY”
LOMPOC REDEVELOPMENT AGENCY,
a public body, corporate and politic
By:
LAUREL M. BARCELONA,
Executive Director
ATTEST:
Agency Secretary
Dated: December 1, 2009 “ALESHIRE & WYNDER, LLP”
By:
JOSEPH W. PANNONE
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EXHIBIT “A”
BILLING RATES
(1) Where there is an opportunity to obtain cost recovery through a private party such as a
developer, the hourly rate will be Three Hundred Dollars ($300) per hour.
(2) For public finance the fee structure shall be as follows: (i) For land based issues (i.e.
CFD, Assessment or Improvement Districts) one and one-half (1½) percent of the first $1 million
executed and delivered; three-quarters percent of the next $4 million executed and delivered;
one-third percent of the next $10 million; one-eighth percent of the next $10 million; and one-
tenth percent of any amount over $25 million; subject to a minimum fee of Forty Thousand
Dollars ($40,000); or (ii) For all other financings the above schedule applies with a 15%
discount. In the event multiple series of bonds or notes are issued, the foregoing fee schedule
would be applied to each issue. Fees shall be contingent unless otherwise directed by the client.
If contingent, then payment of the fees is entirely contingent upon the successful execution and
delivery of the bonds or notes to be payable on or after delivery, except for out-of-pocket
expenses, including but not limited to fees and expense of federal tax consultants. At the
discretion of the Agency, Agency may choose a non-contingent structure in lieu of the above
schedule at the rate of $350 per hour on a blended rate for all attorney time incurred.
(3) In addition to the foregoing, A&W would be reimbursed for out-of-pocket expenses
including telecopier, messenger, courier, and other communication costs; reproduction expense;
computer research services; court reporters; mileage cost to court and administrative
proceedings; travel expenses outside of Southern California; and other costs and expenses
incurred on your behalf. Notwithstanding the foregoing, we do not charge for word processing,
routine computer-assisted legal research, local calls or mileage to City Hall or City/Agency
offices. In exchange, when on-site, we would have the ability to use City/Agency copiers and
telephones without charge. If the General Counsel or any Assistant or Deputy General Counsel
needs to spend the night in City due to the late completion or early start of any meeting, then
A&W would be reimbursed actual costs for meals and lodging at no more than One Hundred
Fifty Dollars ($150.00) per day. No more than a total of 3 hours for travel time to and from City
Hall will be charged.
(4) The blended rate for legal assistants or paralegals, irrespective of matter, shall be Ninety-
Five Dollars ($95) per hour, and for document clerks shall be Forty-Five Dollars ($45) per hour.
(5) The foregoing fee arrangement would remain in effect until adjusted by the Agency
Board.
01079/0012/74047.01
EXHIBIT B
BILLING STATEMENT AND PAYMENT
The Firm’s fees are charged on an hourly basis for all time actually expended and are
generally billed monthly with payment due within thirty (30) days after the date of the bill. The
current hourly design rate for the attorneys and staff working on this matter will be set forth in
the billing statement.
The Firm will incur various costs and expenses in performing legal services. These costs
and expenses are separately billed to the client and include fees fixed by law or assessed by
public agencies, litigation costs including deposition, reporter fees, and transcript fees, long
distance telephone calls, messenger and other delivery fees, postage, photocopying (charge of
twenty cents ($.20) per page) and other reproduction costs and staff overtime when necessitated
and authorized by the client, all based on the actual and reasonable cost (mileage, reproduction
and other costs are periodically adjusted in accordance with the Firm’s actual costs).
Travel costs including mileage (current IRS rate), parking, airfare, lodging, meals, and
incidentals are charged in connection with administrative or judicial proceedings, or when
traveling outside of Southern or Central California. Travel time may also be charged in
connection with such proceedings. In addition, the client will be responsible for paying the fees
of consultants and other outside experts who are retained after consultation with the client.
It is understood that Firm will generally not charge for mileage between our office and
City/Agency facilities, nor for local telephone calls or calls made to the Agency. In exchange,
Firm shall not be charged for calls made or received at the Agency, whether local or long-
distance, or for copying charges since copying on-site will reduce the charge to the client.
The monthly billing statements for fees and costs shall indicate the basis of the fees,
including a detailed and auditable breakdown of the hours worked, the billable rates charged and
description of the work performed. All bills are expected to be paid within thirty (30) days of the
date of the billing statement. In the event any statement remains unpaid for more than thirty (30)
days after the date of the statement, interest thereon at the rate of ten percent (10%) per annum
shall be due and payable thereafter on the unpaid balance.
Registration fees for attorneys attending conferences and seminars are paid by the Firm
and are never charged to the Agency (unless expressly requested by the Agency).
