Agenda Item Title:
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City Council Office recommending the Council execute a new, one year, Council Legal Services Agreement with Cowdell & Woolley, P.C.
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Presenter: Dustin Fratto, Council Executive Director
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Description/Background:
In early 2018 the council issued a request for proposals (RFP) seeking "Legal Services for the Sandy City Council." Following the RFP process the Council selected Cowdell & Woolley, P.C. (the firm) The initial contract lasted 6 months and has been extended on a handful of occasions and through a handful of dates, ultimately expiring June 30, 2022. At the advice of the city purchasing agent, the last extension was the final extension, prior to a new RFP process that begun in April.
The RFP followed the standard Sandy City Process, and staff took the advice and direction of the City Purchasing Agent throughout. The RFP resulted in one (1) respondent, Cowdell & Woolley, P.C. The Council Executive Director reviewed and graded the respondents proposal followed by the respondents cost proposal. As part of the review process council staff also negotiated terms with the respondent, including cost. Once negotiations concluded, the city purchasing agent sent Cowdell Woolley a Conditional Notice of Award. This notice is pending council approval of the attached contract.
The current rate being paid to Cowdell & Woolley is a flat monthly rate of $6000 ($72,000 annually). Due to inflation, increasing costs for goods/labor, in their cost proposal Cowdell & Woolley requested an increase in their monthly rate to $7500 ($90,000 annually). During negotiations with the firm council staff and Cowdell & Woolley agreed upon a flat monthly rate of $6500 (78,000 annually) pending council approval. Council staff is comfortable with this increase for the following reasons: (1) Due largely to inflation expenses for Cowdell & Woolley have increased over the past year. A $500, or 8.3%, increase to the contracted rate lines up with the COLA and merit increases being considered for regular employees ($500/$6000 = 8.3%). (2) Council staff expected that the rate may increase prior to issuing the RFP, and preemptively requested additional funding for FY23 to cover this increase. Assuming council approval, department 1300 and 1310 (Council) will have $79,200 to spend on professional services for FY23.
Using estimated calculations for the amount of time the firm historically spends supporting the council, even at the increased rate of $6500/month, included in the agreement, the council is paying the firm an effective rate of $171.80/hour.
- 40 weeks per year with meeting x 10 hours = 400 hours
- 12 weeks per year w/o meeting x 4.5 hours = 54 hours
- $78000/454 hours = $171.80 per hour
Cowdell & Woolley have indicated that their average hourly rates generally fall within the range of $300 - $325. As you can see the effective rate that has been negotiated is a significant discount.
Fiscal Impact:
The negotiated change in the flat monthly rate will impact the City Council Office budget by an additional $6000 over the contract period (12 months). The council professional services line item for FY23 should have sufficient funds to cover this change.
Further action to be taken:
Should the council give direction to do so, staff will execute the attached legal services agreement. If the council decides against executing the agreement staff recommends a future agenda item to further explore other options for council legal services.
This agreement will follow the fiscal year becoming effective on July 1, 2022 and expiring on June 30, 2023. The Council will have the option to renew the agreement for up to three (3) additional twelve (12) month terms.
Recommended Action and/or Suggested Motion:
Recommendation
Motion to direct council staff and the council chair to execute the attached agreement for legal services between the Sandy City Council and Cowdell & Woolley, P.C.