Stowell, Zeilenga, Ruth, Vaughn & Treiger/2012 Legal SrvsDAVID T. STOWELL
RICHARD S. ZEILENGA
DAVID C. RUTH
)AMES D. VAUGHN
ADAM K. TREIGER
Via Telecoaler and E-Mag
Mr. Mark Weiss
Interim City Manager
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: Deborah Powell
STOWELL, ZEILENGA, RUTH,
VAUGHN & TREIGER LLP
ATTORNEYS AT LAW
4590 E. THOUSAND OAKS BLVD. • SUITE 100
WESTLAKE VILLAGE, CA 91352
TEL: (805) 446-1488 • FAX: 18051 446-1490
W W W.62,Im.00.
February 23,2012
Re: Agreement for Legal Services
Dear Mr. Weiss:
OF COUNSEL
ERIC H. HALVORSON
It is our pleasure to represent the City of La Quinta ("the City"). To ensure its
complete understanding and approval, this letter contains the terms of our representation.
Firm Policy. Under our firm's policy and, in some instances, under California
law, we are required to have a written agreement with the City for our services.
Nature of our Services and Responsibilities. We will represent the City with
respect to preparing an amendment to the Agreement to Share Transient Occupancy Tax
Revenue with Village Resort, LLC, and to the related Covenants, Conditions and Restrictions
(collectively, the "TOT Agreements"). The purpose of amending the TOT Agreements is to
extend their term for up to one additional year, but still subject to the original cap amount of
$1,000,000, in order to assist the Embassy Suites Hotel to remain in continuous operation, at
least through the end of the extended term.
As we previously advised the City when the City initially engaged our firm to
represent the City in connection with the TOT Agreements, we must advise you that we
previously represented the prior owners of the Embassy Suites property, Santa Rosa Plaza, LLC
(Daniel Brown and Bridget Myers) in its efforts to obtain certain entitlements from the City for
the Embassy Suites property. Although unlikely at this point, that prior representation might be
cited by Chicago Title as a potential conflict of interest requiring us to withdraw as legal counsel
for the City. However, we have never represented Chicago Title, and do not believe that we
obtained any confidential information in that prior representation that would support such a
conflict of interest assertion by Chicago Title, with respect to amending the TOT Agreements.
February 23, 2012
Page 2
Furthermore, from time to time we represent various property owners/developers
(including Stamko Development Company), that do business in the City. Such representation
typically includes seeking entitlement approvals from the City, but may include other matters as
well. By executing this engagement letter, the City agrees to waive any conflict of interest that it
might seek to assert in the future with respect to our representation of such property owners/
developers in the City, including our representation of them in any litigation that might be filed
against the City, where such representation does not relate to the Embassy Suites Property.
Fees and Rates, We will bill the City monthly for services on an hourly basis at
our then -current hourly rates. Currently, our hourly rates range from $140.00 for our paralegal
assistants to $495.00 for our most experienced attorneys. My regular hourly rate is $450.00, and
I will be principally responsible for this matter. My partner, Richard Zeilenga, has a regular
hourly rate of $495.00. The total fees and costs will not exceed $10,000 without the prior
consent of the Interim City Manager.
I shall personally perform many of the services for the City's case, including
management and supervisory services. When efficient and economic, other members of the firm
will be utilized as resources.
We charge in minimum increments of one tenth of an hour. All time spent on the
matter by me, other attorneys, paralegals, and paralegal assistants will be billed to the City. This
includes, for example, time spent waiting in court, in travel, and in office conferences. If it is
necessary for more than one of our personnel to attend a meeting, court hearing or other
proceeding, or if more than one person participates in an office conference, each will charge for
their time. -
Costs and Standard Charges. The City will be responsible to pay directly for any
out-of-pocket costs and expenses incurred in connection with this matter and to reimburse us for
costs or expenses that we elect to advance. These costs and expenses may include, for example,
long-distance telephone calls, delivery charges, postage, travel expenses (such as mileage,
parking, air fare, meals, and hotel accommodations), charges assessed by courts and other public
agencies (including, but not limited to, sanctions, if not due to our fault), court reporter's fees,
expert's or consultant's fees and other similar items. Reimbursement to us for services provided
by our staff shall be at standard rates adopted by us from time to time. For example, our current
rates include: photocopying - $0.10 per page; fax - $.25 per page; messengers - according to
destination and time; and secretarial overtime - $40.00 per hour.
Retainer. Although we typically require a retainer for new matters, we will waive
that requirement for you in light of our prior longstanding relationship with the City and the
limited scope of the work now required.
Invoices and Service Charges. We will send a monthly invoice which shows how
our fees have been computed. Invoices must be paid within thirty (30) days of being sent to the
February 23, 2012
Page 3
City. We will also provide the City with a copy of any invoice within ten (10) days after it
requests one. The City agrees to promptly notify us if any charges are in dispute.
Participation in Other Proceedings. If we are called upon to give testimony or
produce documents in any legal or administrative proceedings which concern the City in any
way, whether before or after our representation and rendition of legal services to it terminates,
the City agrees to pay us, at our then regular hourly rates, for our time in preparing for and in
giving testimony and/or in producing documents, and for all expenses incurred in connection
with doing so.
Arbitration. The City and we agree that any dispute relating to attomeys' fees
under this contract shall be submitted to arbitration before the Los Angeles County Bar
Association pursuant to California Business and Professions Code § 6200, et seq., or, should
that organization decline to arbitrate the dispute, before the State Bar of California pursuant to
California Business and Professions Code § 6200, et seq. The City and we agree to the
appointment of one arbitrator to hear any dispute relating to attorneys' fees that may arise
between us. Any and all other disputes (other than attomeys' fees) between the City and us
arising out of or relating to this contract or attorneys' professional services rendered to or for the
City, including but not limited to any claim the City may have for malpractice, shall be resolved
by binding arbitration before the Judicial Arbitration and Mediation Service ("JAMS") in Los
Angeles, California, in accordance with the JAMS' Comprehensive Arbitration Rules prevailing
at the time of the arbitration. The City and we agree that the cost of arbitration will be divided
equally between us, and that each of us will bear our own attorneys' fees and costs of legal
representation. Each of us further acknowledge that we have read and understand this section of
the contract concerning arbitration, and have had the opportunity to consult with separate legal
counsel concerning the legal affect of these provisions as either of us deem necessary or
appropriate.
THE CITY AND WE ACKNOWLEDGE THAT THE REMEDIES OF
BINDING ARBITRATION, AS SET FORTH IN THIS CONTRACT, ARE THE EXCLUSIVE
REMEDIES OF IT AND US FOR ANY AND ALL DISPUTES THAT WE MAY HAVE
ARISING OUT OF THIS CONTRACT AND/OR ARISING OUT OF OUR PROFESSIONAL
SERVICES PROVIDED TO YOU. THE CITY AND WE EXPRESSLY ACKNOWLEDGE
THAT WE ARE WAIVING OUR RIGHTS TO TRIAL BY JURY BY ENTERING INTO THIS
CONTRACT.
Other Matters. The terms of this agreement shall apply to: (a) any other legal
services we perform on existing matters and to future matters in which we represent the City
unless we enter into a new written agreement; and (b) to any legal services performed for or on
behalf of any other entity of which the City is the controlling entity.
Estimates. If we provide the City with any estimates of our fees and costs, we
cannot guarantee that the actual fees and costs will not be higher -- perhaps even a multiple of
February 23, 2012
Page 4
the estimate -- due to a variety of reasons, including, but not limited to, the actions taken by any
opposing parties or their attorneys.
Miscellaneous. We have not made and cannot make any promises or guarantees
to the City about the outcome of any matter. This firm is covered by malpractice insurance for
the services to be rendered hereunder, with limits of not less than $5,000,000.
Upon written notice to you, we may destroy each client's legal files seven years
after the closing of such files unless the City otherwise directs. If the City desires to retain its
files for a longer period, please so advise us in writing and we will make arrangements with you
for the transfer of your files.
We agree to keep you apprised of the status of your case, including important
developments, in a timely fashion.
If these arrangements are satisfactory, kindly indicate the City's approval in the
appropriate space on the enclosed copy of this letter agreement and return it to us in the envelope
provided for your convenience. This letter will then constitute a binding agreement between us.
We appreciate the opportunity to represent the City of La Quinta
ernes D. V ghn
For the F'
THE FOREGOING IS AGREED TO AND
ACCEPTED ON FEBRUARY 1-.1 2012
CITY OF LA QUINTA
By: V s`s
Mark Weiss
Interim City Manager