Loading...
SR-11-12-1974-11E,~ ~ f / ~` / Santa Monica, November 7, 1 974 _ a~~~ gq g ~p g -p ®'W'S &68 i ~ F~R TO: Mayor and City Council ~`•`'~~~ ~ `~ f~'74 FEtSe it"EoF.~s~° EE FROM: Cit Staff ~~FG`~'`ao ~© gS~ ~ Y Gf~°l~ G, °,_ o ~ ~ ~ wr•~€~~ ~ Y'afEB c [~'"urn , , ~ ' ' D SUBJECT: Retention of Outside Counsel -Airport Leases and City ~ _ e~ ~7 ~~ f"~,~' Attorney's Opinion Dated August 6, 1974 ~ ~ -~ ;;=,~_, p> ~° ~ c~ + ;-- c ~ Introduction ~ -ID- rp, T iTi ~ _~ ~' r ~ This report is an information memorandum in response to the Council's req _ uest at the October 22, 1974 Council meeting that staff seek outside legal counsel. Background The following local Los Angeles area legal firms are considered preeminent in the field of municipal law, These firms were contacted and briefed on the questions noted by Council: Ball, Hunt, Hart, Brown & Baerwitz, 450 No, Roxbury Dr. , Beverly Hills, 272-0753, Brill, Hunt, De Buys & Burby, Security Bldg. , Suite 330, 510 S. Spring St. , Los Angeles 90013, 626-01310 Hills, Farrer, Burrill, attn. Richard Bidding, 445 Sa Figueroa, 34th Floor, Los Angeles, 90017, 620-04600 Burke, Williams & Sorensen, 7th & Olive Bldg., Suite 1000, 649 S. Olive, Los Angeles, 485-0101, Martin & Flandrick, 2456 Huntington Drive, San Marino 91108, 285-2151. O'Melveny & Meyers, 6I1 W. 6th St„ Los Angeles, 620-1120. Richards, VSatson, Dreyfus & Gershon., 615 So. Flower, 17th Floor, 90017, 626-84840 The following firms responded with preliminary estimates of the hourly rate and fees as follows: Burke, Williams & Sorensen-- hourly rates vary from $50 to $75/per hour depending upon which attorney performs the particular services involved. To: Mayor and Council -2- November 7, 1974 The maximum fee of $10, 000. 00 was given and a probable fee based upon the hourly rate of $75. 00. Mr. Sorenson estimated that the lease-related questions, including the conflict of interest questions, would entail 25PJo of the effort and 75°jo would be devoted to the closing question. Ball, Hunt, Hart, Brown & Baerwitz--average fee, including various grades of attorneys, is $75. 00 per hour; fee for answering the questions was estimated to be in the neighborhood of $7, 500. 00. This fee would be divided one-third for answering lease-related questions and two-thirds for the abandonment question. A total fee of $25, 000. 00 was proposed if it appeared from their opinion that it would be worthwhile pursuing the economic benefits to be gained by closing the Airport. This estimate did not include possible out-of-pocket expenses such as traveling to Washington or to federal offices. Such expense, however, would not be incurred without prior communication with the City. Martin & Flandrick--the estimated cost was broken down into two areas: approximately $1, 000. 00 to review the prime leases and information on sub- leases; and it was estimated that the Airport question would involve a large amount of research, perhaps 45 to 60 days at $60. 00 per hour, and would cost approxi- $6, 000. 00 or less. Richards, Watson, Dreyfas &Gershon--hourly rates range from $35. 00 to $100.00 per hour. The assigned attorney Mr. Pat Couglin's time will be at $60. 00 per hour, The average hourly rate for the attorneys involved would not exceed $60. 00 To: Mayor and Council -3- November 7, 1974 per hour. Such a study is not likely to be less than $7, 500 and, on the upper side, could run twice that amount. It is estimated that one-third to one-half of this amount would be required for a review of lease-related questions including the conflict of interest question. commendation None required. Prepared by: Jim Connolly JE C;lk cc: City Attorney Director of Airport