AgdaPkt 2002-02-11 - Laserfiche WebLink

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IREPOR T 1 To the Honorable Mayor and City Council From the City Manager] February 11,2002 Subject Extension of legal services agreement with Cox, Castle and Nicholson, and authorization for City Attorney to retain services of Robert Dory, Esq., in providing legal representation related to the groundwater contamination - vicinity of El Camino Real/Jefferson Avenue. Recommendation Continuation of legal services agreement with Cox, Castle and Nicholson. Background On or about February 16, 2001, the City Council authorized entering into a legal services agreement with the law firm of Cox, Castle and Nicholson of San Francisco, California. Since the inception of the agreement, Robert Doty, Esq., of the firm has represented the City of Redwood City's interest. My understanding is that the original purpose of retention of special counsel was to evaluate the prospects for insurance coverage and/or third party cost recovery arising out of groundwater contamination in the vicinity of El Camino Real/Jefferson Avenue (Sequoia Station shopping center ) and the Regional Water Quality Control Board's enforcement efforts relating to that contamination. Going forward, Robert Doty will be handling future litigation arising from this matter. During a recent telephone conference call between Mr. Doty, Dave Schricker and myself, I requested that Mr. Doty prepare an estimate of the legal expenses that may be incurred if the agreement were to be extended, as well as a proposed time line of foreseeable events. Legal expenses incurred to date are $22,390 of a not-to-exceed approval of $25,000. The current estimated future legal cost is estimated to be in the Iow end of the range at $75,000 to $100,000 with the high end of the range at $150,000 to $200,000. A copy of the hourly rates charged by the Cox, Castle and Nicholson firm is attached as Exhibit "A." The estimated time line, on an aggressive schedule, would likely be 12 months. As is the case for all litigated matters, the associated costs and the time period for completion are only preliminary estimates. Alternative The City Council (~ould determine to seek other special legal counsel to represent its interest in this matter. Fiscal Impact Funding for the legal services are budgeted in the Sewer Enterprise Fund, Capital '~/~~~'lmpr° veme n] Program. ~""~'~~ ~.~~/Of/.~ Stan yamar~oto Peter Ingram ~ E(Jd~ver'ett / City~_~y Director, Public Works Services City Manager Attachment: Exhibit A: Cox Castle and Nicholson Rates