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HomeMy WebLinkAbout6277RESOLUTION NO. 6277 A RESOLUTION APPROVING A CONTRACT FOR LEGAL SERVICES BETWEEN PUEBLO, A MUNICIPAL CORPORA- TION AND THE LAW FIRM OF GORSUCH, KIRGIS, CAMPBELL, WALKER AND GROVER AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, various disputes, claims, delays and issues of probable litigation have arisen relating to the construction of the City's $29 million sewage disposal facilities, and WHEREAS, the amounts involved or to be involved in such issues of probable litigation are substantial and present complex and extensive factual issues arising during the approximtely 39 month period of construction and delayed construction of the sewage disposal facilities, and WHEREAS, such disputes, claims and issues will probably involve protracted and extended litigation requiring the service of additional legal counsel, support staff and facilities not available to the City through its City Attorney's Office, and WHEREAS, the City Attorney is of the opinion that engagement of special legal counsel is necessary and required to protect the City's interests and enforce its rights and remedies under its contracts for construction of the $29 million sewage disposal facility and recommends that such legal counsel be the law firm of Gorsuch, Kirgis, Campbell, Walker and Grover, which is experienced in construction dispute matters and has available sufficient qualified attorneys and adequate support staff and facilities to represent the City's interest in such potentially complex litigation, and WHEREAS, sufficient funds are available in the City's sewer user fund and bond construction fund for the engagement of such special legal counsel; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Contract For Legal Services between Pueblo, Colorado, a Municipal Corporation and the law firm of Gorsuch, Kirgis, Campbell, Walker and Grover relating to construction contract dispute and issues involving the construction of the City's sewage disposal facilities, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized and directed to execute said Contract for and on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2 Payment for services and expenses incurred under the Contract shall be paid out of the City's sewer user fund and the sewage disposal facilities construction fund. INTRODUCED: September 12, 1988 By MIKE OCCHIATO Councilman ATTEST: APPROVED: Cit Clerk esiden the City Council -2- �EOD City of Pueblo THOMAS E. JAGGER City Attorney 127 West, First National Bank Bldg. MEMORANDUM PUEBLO, COLORADO 81003 TO: Members of the City Council FROM: City Attorney DATE: September 8, 1988 RE: Construction of City Sewage Disposal Facilities As stated in the attached resolution disputes, claims, delays and issues of probable litigation have arisen relating to the con- struction of the City's $29 million sewage disposal facilities. We are of the opinion that special legal counsel should be engaged to protect the City't interest in this matter since the City Attorney's office is not sufficiently staffed with either attorneys or support personnel to adequately represent the city in such potential complex and protracted litigation and recommend the engagement of the law firm of Gorsuch, Kirgis, Campbell, Walker and Grover which is experienced in construction contract disputes to assist in representing the City's interest. The proposed contract for legal services requires the law firm and the City Attorney's office to work out a litigation plan defining responsibilities of the law firm and the City Attorney's office and a budget for fees and costs. Section 6 -7 of the Charter provides that special counsel be engaged by the City Attorney and serve solely under the direction of the City Attorney. Thomas E. agger 30.37/jp Enclosure GORSUCH, KIRGIS, CAMPBELL, WALKER AND GROVER STANDARD FEE AGREEMENT - HOURLY FEE 1. Introduction This is a contract for legal ser- vices between the law firm of Gorsuch, Kirgis, Campbell, Walker and Grover (the "Law Firm ") and the City of Pueblo (the "Client "). 2. Legal Services The Law Firm agrees to represent the Client in the matter described in § 9 below. The Law Firm agrees to exert its best effort on behalf of the Client and to handle the matter faithfully and with due diligence. The Law Firm and the Client shall cooperate in the proper investigation, preparation and completion of this matter. The Law Firm cannot and does not guarantee or agree that a result favorable to or satisfactory to the Client will be achieved. No settlement or compromise will be made without the Client's consent. 3. Fee The Client shall pay the Law Firm a fee for services rendered. Unless otherwise provided below, the fee will be based upon the Law Firm's standard hourly rates. The rates presently range from $55 per hour for some clerks and paralegals to $200 per hour for senior partners. The hourly rates for the attorneys expected to do most of the work on this matter are listed in § 9 below. The hourly rate applies to all work performed in this matter, including court time, investigation and preparation, negotiation, meetings, research and travel. The Law Firm changes its hourly rates periodically and the Client will be notified of any change. 4. Retainer The Client shall pay to the Law Firm a retainer in the amount and at the time indicated in § 9 below. The retainer shall be applied to fees as they are incurred and the Client shall replenish the retainer as it is depleted. 5. Costs The Client, in addition to the fee, shall pay all costs incurred by the Law Firm in the matter. Examples of such costs include charges for filing fees, depositions, expert witnesses, consultants, travel, long distance telephone, computer research, photocopies, messenger service, etc. The Client shall pay to the Law Firm an advance to be applied to such costs. The advance shall be paid in the amount and at the time indicated in § 9 below. 6. Estimated Charges The Law Firm may give the Client an estimate of the anticipated total cost of the matter. The actual charges may vary from the estimate due to unforeseen complexities or difficulties. The estimate is not firm and is not binding on either the Client or the Law Firm. 7. Billing; Payment; Late Payment Charge Bills nor- mally will be sent to the Client on a monthly basis and are due upon receipt. Any amounts not paid within 30 days of the date of the bill shall be sub month (18% per year). within 30 days of the stop all work for the prompt payment of all any specific result. a late payment charge of 12% per Client fails to pay any charge the bill the Law Firm may elect to The Client's obligation to make does not depend upon achievement of ject to If the date of Client. charges 8. Miscellaneous The Client may terminate this Agreement at any time. If the Client discharges the Law Firm, the Client shall pay all fees and costs incurred. This Agreement shall apply to any other matter which the Law Firm handles for the Client if there is no separate agreement made for that matter. 9. Special Provisions a. Description of Mater: Water Treatment Plant construction dispute with MCI Constructors, Inc. b. Amount of Retainer: $ 0 Due Date c. Amount of Cost Advance: Arrangements for payments of costs will be made as the need arises. d. Attorneys and Rates: James Jablonski - $165; John Mullins - $180; Gary Brown - $110; Phyllis Morgan - $75 e. Estimated Total Fees, Costs and Other Charges: See below. f. Other Provisions: Gorsuch Kirgis and the City of Pueblo will work out a litigation plan which will define the respon- sibility to be exercised and the work to be performed by the City and the Law Firm. They will also work out a budget for fees and costs expected to be incurred in this engagement. 10. Signature THE LAW FIRM AND THE CLIENT HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND AGREE TO IT. GORSUCH, KIRGIS, CAMPBELL WALKER AND GROVER y: 1401 - 17t eet, Suite 1100 P.O. Box 0 Denver, Colorado 80217 (303) 534 -1200 Date: CLIENT: CITY OF PUEBLO, A MUNICIPAL CORPORATIOIN Pre i Uoiit of the City Coutici 1 1--,City Nall Place, Pueblo, CO 01003 Address Telephone:(? 9)54; -�41Z ATTEST: City lerl -. Date: k/