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Resolution No. 94461 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9446 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING PARTICIPATION IN PROCEEDINGS BEFORE THE COMMISSION ON STATE MANDATES FOR RECOVERY OF INSPECTION AND TRASH RECEPTACLE COSTS IMPOSED BY THE LOS ANGELES COUNTY MUNICIPAL STORMWATER PERMIT REGARDING THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM AND AUTHORIZING THE CITY TO DO ALL ACTIONS DEEMED NECESSARY OR ADVISABLE CONCERNING THE LITIGATION WHEREAS, on December 13, 2001, the California Regional Water (Quality Control Board, Los Angeles Region ("Regional Board") adopted Order No. 01-182, a National Pollutant Discharge Elimination System ("NPDES") Permit for Municipal Stormwater and Urban Runoff Discharges within the County of Los Angeles and the incorporated cities therein, except the City of Long Beach (hereinafter "NPDES Permit"); and WHEREAS, various cities and Los Angeles County have challenged the refusal by the Commission on State Mandates to hear test claims on the unfunded mandated costs of stormwater inspection program of commercial/industrial facilities permitted by the State of California and trash receptacle requirements imposed by the Los Angeles County Stormwater Permit; and WHEREAS, various cities and the County of Los Angeles have prevailed at the Appellate Court level and the participating agencies can now proceed to file test claims, the outcome of which will be a key element in complying with the Federal NPDES mandate; and WHEREAS, the test claims challenge two new programs required by the Regional Board in the NPDES Permit, a program for the installation and maintenance of trash receptacles at every transit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Stop, and a program requiring agencies to conduct stormwater inspections on State permitted commercial and industrial properties; and WHEREAS, the estimated cost for filing of test claims will be $7,500 for agencies now involved, and those agencies have requested 11that other cities join in order to reduce the costs of the claim; and WHEREAS, the cities that did not file previous test claims in 2003 may now also file and any additional cities joining in the test claim will reduce the overall general costs; and WHEREAS, the estimated general legal costs shared by the County of Los Angeles and cities filing test claims based on previous filing is estimated at $50,000.00 and agencies will also be billed for individual assistance in filing claims at a cost estimated at $2,950.00 (10 hours of attorney time times the hourly rate of $295.00); and WHEREAS, the estimated cost to the City is its share of the $50,000.00 general legal costs plus the cost of filing an individual claim; and WHEREAS, the Director of Community Services & Water has recommended that the City join with the other agencies in filing a test claim before the Commission on State Mandates with respect to reimbursement for the cost of industrial inspections and installations of trash receptacles imposed by the Los Angeles County Municipal Stormwater Permit. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 8: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to execute any documents necessary to implement and carry out the purposes of the litigation. SECTION 9: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 15th day of October, 2007. ATTEST: UELA GIRON, City Clerk Name: Leonis C. Malburg Title: Mayor /. 14 - - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9446, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, October 15, 2007, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. (SEAL) r` MANUELA G RO:, City Clerk i - 5 - r:� BURHENN & GEST LLP 624 SOUTH GRAND AVENUE SUITE 2200 Los ANGELES, CALIFORNIA 90017 TELEPHONE (213) 688-7715 FACSIMILE (213) 688-7716 WRITERS DIRECT NUMBER (213) 629-8787 October 3, 2007 Eric Fresch City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 WRITERS E-MAIL ADDRESS hgest@burhenngest.com Re: Proceedings Before The Commission on State Mandates For Recovery of Inspection and Trash Receptacle Costs Imposed By The Los Angeles County Municipal Stormwater Permit Dear Mr. Fresch: Thank you very much for deciding to retain Burhenn & Gest LLP ("Burhenn & Gest"). This letter will formalize the City of Vernon's engagement of Burhenn & Gest and set forth the terms of that engagement. If the terms set forth below are acceptable, please sign the original of this letter and return it to my attention. 1. Client, Scope of Representation. The client in this matter will be the City of Vernon (the "City"). Burhenn & Gest will advise the City in connection with, and the scope of Burhenn & Gest's engagement and duties will relate solely to, the representation of the City before the Commission on State Mandates regarding reimbursement for the cost of industrial inspections and the installation of trash receptacles imposed by the Los Angeles County Municipal Stormwater Permit. The City may limit or expand the scope of this representation from time to time, provided that Burhenn & Gest must agree to any substantial expansion. 2. Term of Engagement. The City's engagement of Burhenn & Gest shall commence upon the City's execution and return of this letter. Either the City or Burhenn & Gest may terminate this engagement at any time for any reason by written notice, subject on Burhenn & Gest's part to the applicable rules of professional responsibility. In the event that Burhenn & Gest terminates the engagement, Burhenn & Gest will take such steps as are reasonably practicable to protect the City's interests in the above matter. BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 2 Unless previously terminated, Burhenn & Gest's representation of the City will terminate upon Burhenn & Gest sending its final statement for services rendered. Following such termination, any otherwise nonpublic information that the City may have supplied to Burhenn & Gest, which is retained by it, will be kept confidential in accordance with applicable rules of professional responsibility. If, upon such termination, the City wishes to have any documents delivered to it, the City shall advise Burhenn & Gest within ten days. Otherwise, all such documents will be transferred to the person responsible for administering Burhenn & Gest's record retention program. For various reasons, including the minimization of storage, Burhenn & Gest reserves the right to destroy or otherwise dispose of any such documents retained by it. The City is engaging Burhenn & Gest to provide legal services in connection with the above referenced matter. After the completion of this matter, changes may occur in the applicable laws or regulations that could have an impact upon the City's future rights and liabilities. Unless the City actually engages Burhenn & Gest after the completion of this matter to provide additional advice on issues arising from them, Burhenn & Gest has no continuing obligation to advise the City with respect to future legal developments. 3. Fees and Expenses. Burhenn & Gest's fees will be based on the billing rate for each attorney and legal assistant devoting time to this matter. Burhenn & Gest's billing rate for partners is presently $395 per hour. Time devoted by associates is charged at $250 an hour and time devoted by legal assistants is charged at $95 per hour. For the purpose of this proceeding, it is agreed that the billing rate for partners charged to the City in this matter will be only $295 per hour. Howard Gest, a partner in the firm, will be chiefly responsible for representing the City in this matter, although other attorneys may assist from time to time. Other cities have also requested that Burhenn & Gest represent them before the Commission on State Mandates to seek reimbursement for the costs they have incurred with regard to the inspections and the trash receptacles imposed by the Los Angeles County Municipal Stormwater Permit. Services that are common to all clients represented by this office will be divided equally amongst the clients. Services that are unique to the City will be billed solely to it. Burhenn & Gest will include on its statements charges for performing services such as photocopying, messenger and delivery service, computerized research, travel, long-distance telephone, facsimile, word processing and search and filing fees. Fees and expenses of others (such as consultants, appraisers, and local counsel) generally will not be paid by Burhenn & Gest, but will be billed directly to the City. Burhenn & Gest BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 3 anticipates billing the City monthly. The City agrees that Burhenn & Gest's statements are due upon receipt and will be paid within 30 days thereafter. 4. Conflicts. Burhenn & Gest has multiple clients. Although Burhenn & Gest hopes it never happens, it is possible that an adverse relationship (including litigation) could develop in the future between the City and one of Burhenn & Gest's other clients. If Burhenn & Gest is not representing the City in that future matter and that future matter is not substantially related to Burhenn & Gest's representation of the City in the above referenced matter, the City agrees that Burhenn & Gest may represent the other client. (In its engagement letters with its other clients, Burhenn & Gest has asked for similar agreements to preserve Burhenn & Gest's ability to represent you.) As set forth above, other cities have requested this office to represent them before the Commission on State Mandates with respect to their claims for reimbursement for costs incurred in complying with the inspection and trash receptacle obligations imposed by the Los Angeles County Municipal Stormwater Permit. In addition, this office has represented and continues to represent the County of Los Angeles with respect to the County's claims for reimbursement arising from the industrial inspections and the installation of trash receptacles. It is agreed that the City waives any conflict of interest or potential conflict of interest that could arise from this offices' representation of any other city or the County of Los Angeles with respect to these matters. Other cities and the County are providing the same waiver with respect to the City of Vernon. Once again, Burhenn & Gest is pleased to have this opportunity to work with you. If you have any questions or comments during the course of this representation, please call me at (213) 688-7715. Very truly yours, Howard Gest HDG:da BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 4 IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown below. Executed at Burhenn & Gest LLP: By: , Howard Gest City of Vernon: Leonis C. Malburg, Mayor Date: ATTEST: Manuela Giron, City Clerk APPROVED AS TO FORM: Jeff Harrison, City Attorney California, on , 2007 SUPPORTING DOCUMENTS BURHENN & GEST LLP 624 SOUTH GRAND AVENUE SUITE 2200 Los ANGELES, CALIFORNIA 90017 TELEPHONE (213) 688-7715 FACSIMILE (213) 688-7716 WRITERS DIRECT NUMBER (213) 629-8787 October 3, 2007 Eric Fresch City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 WRITERS E-MAIL ADDRESS hgest@burhenngest.com Re: Proceedings Before The Commission on State Mandates For Recovery of Inspection and Trash Receptacle Costs Imposed By The Los Angeles County Municipal Stormwater Permit Dear Mr. Fresch: Thank you very much for deciding to retain Burhenn & Gest LLP ("Burhenn & Gest"). This letter will formalize the City of Vernon's engagement of Burhenn & Gest and set forth the terms of that engagement. If the terms set forth below are acceptable, please sign the original of this letter and return it to my attention. l . Client, Scope of Representation. The client in this matter will be the City of Vernon (the "City"). Burhenn & Gest will advise the City in connection with, and the scope of Burhenn & Gest's engagement and duties will relate solely to, the representation of the City before the Commission on State Mandates regarding reimbursement for the cost of industrial inspections and the installation of trash receptacles imposed by the Los Angeles County Municipal Stormwater Permit. The City may limit or expand the scope of this representation from time to time, provided that Burhenn & Gest must agree to any substantial expansion. 2. Term of Engagement. The City's engagement of Burhenn & Gest shall commence upon the City's execution and return of this letter. Either the City or Burhenn & Gest may terminate this engagement at any time for any reason by written notice, subject on Burhenn & Gest's part to the applicable rules of professional responsibility. In the event that Burhenn & Gest terminates the engagement, Burhenn & Gest will take such steps as are reasonably practicable to protect the City's interests in the above matter. BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 2 Unless previously terminated, Burhenn & Gest's representation of the City will terminate upon Burhenn & Gest sending its final statement for services rendered. Following such termination, any otherwise nonpublic information that the City may have supplied to Burhenn & Gest, which is retained by it, will be kept confidential in accordance with applicable rules of professional responsibility. If, upon such termination, the City wishes to have any documents delivered to it, the City shall advise Burhenn & Gest within ten days. Otherwise, all such documents will be transferred to the person responsible for administering Burhenn & Gest's record retention program. For various reasons, including the minimization of storage, Burhenn & Gest reserves the right to destroy or otherwise dispose of any such documents retained by it. The City is engaging Burhenn & Gest to provide legal services in connection with the above referenced matter. After the completion of this matter, changes may occur in the applicable laws or regulations that could have an impact upon the City's future rights and liabilities. Unless the City actually engages Burhenn & Gest after the completion of this matter to provide additional advice on issues arising from them, Burhenn & Gest has no continuing obligation to advise the City with respect to future legal developments. 3. Fees and Expenses. Burhenn & Gest's fees will be based on the billing rate for each attorney and legal assistant devoting time to this matter. Burhenn & Gest's billing rate for partners is presently $395 per hour. Time devoted by associates is charged at $250 an hour and time devoted by legal assistants is charged at $95 per hour. For the purpose of this proceeding, it is agreed that the billing rate for partners charged to the City in this matter will be only $295 per hour. Howard Gest, a partner in the firm, will be chiefly responsible for representing the City in this matter, although other attorneys may assist from time to time. Other cities have also requested that Burhenn & Gest represent them before the Commission on State Mandates to seek reimbursement for the costs they have incurred with regard to the inspections and the trash receptacles imposed by the Los Angeles County Municipal Stormwater Permit. Services that are common to all clients represented by this office will be divided equally amongst the clients. Services that are unique to the City will be billed solely to it. Burhenn & Gest will include on its statements charges for performing services such as photocopying, messenger and delivery service, computerized research, travel, long-distance telephone, facsimile, word processing and search and filing fees. Fees and expenses of others (such as consultants, appraisers, and local counsel) generally will not be paid by Burhenn & Gest, but will be billed directly to the City. Burhenn & Gest BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 3 anticipates billing the City monthly. The City agrees that Burhenn & Gest's statements are due upon receipt and will be paid within 30 days thereafter. 4. Conflicts. Burhenn & Gest has multiple clients. Although Burhenn & Gest hopes it never happens, it is possible that an adverse relationship (including litigation) could develop in the future between the City and one of Burhenn & Gest's other clients. If Burhenn & Gest is not representing the City in that future matter and that future matter is not substantially related to Burhenn & Gest's representation of the City in the above referenced matter, the City agrees that Burhenn & Gest may represent the other client. (In its engagement letters with its other clients, Burhenn & Gest has asked for similar agreements to preserve Burhenn & Gest's ability to represent you.) As set forth above, other cities have requested this office to represent them before the Commission on State Mandates with respect to their claims for reimbursement for costs incurred in complying with the inspection and trash receptacle obligations imposed by the Los Angeles County Municipal Stormwater Permit. In addition, this office has represented and continues to represent the County of Los Angeles with respect to the County's claims for reimbursement arising from the industrial inspections and the installation of trash receptacles. It is agreed that the City waives any conflict of interest or potential conflict of interest that could arise from this offices' representation of any other city or the County of Los Angeles with respect to these matters. Other cities and the County are providing the same waiver with respect to the City of Vernon. Once again, Burhenn & Gest is pleased to have this opportunity to work with you. If you have any questions or comments during the course of this representation, please call me at (213) 688-7715. Very truly yours, Howard Gest H DG: da BURHENN & GEST LLP Eric Fresch City Administrator October 3, 2007 Page 4 IN WITNESS WHEREOF, the parties have executed this Agreement on the dates shown below. r7 Executed at ,.k California, on / , 2007 Burhenn & Gest LLP: By: Howard Gest City of Vernon: feons C. Malburg,\Ma o ' Date: AVEST: X't�- Nfanu-cla Giron, tity C14rk APPROYFD AS TO FORM: *Je- son, City Attorney I73 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 October 17, 2007 Mr. Howard Gest Burhenn & Gest LLP 624 S. Grand Avenue, Suite 2200 Los Angeles, CA 90017 Re: Letter Agreement Dear Mr. Gest: Transmitted herewith is a fully executed letter agreement and a copy of Resolution No. 9446, approved by City Council on October 15, 2007. If you have any questions regarding this matter, please call Mr. Kevin Wilson, at (323) 583-8811 ext. 245. Very truly yours, Nelly Gir City Clerk NG:dr c: Rory Burnett Sharon Duckworth S. Kevin Wilson Resolution No. 9446 Agreement File No. 07-119 ), clusive(y Industriaf