Agenda Item Title:
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City Council Office recommending the Council extend its Council Legal Services Agreement (Agreement Amendment Three) with Cowdell Law for an additional year
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Presenter:
Dustin Fratto, Council Executive Director
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Description/Background:
This item was originally presented to the Council during an informational report on June 10, 2025.
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. (now Cowdell Law) 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 a new RFP was issued in the Spring of 2022, which ultimately resulted in the re-selection of Cowdell Law. with an initial contract term beginning on July 1, 2022 and expiring on June 30, 2023. The contract allows for up to three single year extensions. Extension One (Amendment One) was executed in 2023 with a term beginning on July 1, 2023 and expiring on June 30, 2024 and Extension Two (Amendment Two) was executed in 2024 with a term beginning on July 1, 2024 and expiring on June 30, 2025. As we're nearing the end of our contract term in Extension Two, staff is recommending that the Council consider a third extension (Amendment Three) of its legal services agreement with Cowdell Law for a term beginning on July 1, 2025 and ending on June 30, 2026.
With the expectation of extending the Council legal services contract with Cowdell Law for an additional year, the Council Executive Director has begun negotiations with Cowdell Law. The results of those negotiations can be seen in the attached contract amendment. The primary changes outlined in the attached amendment include the following:
1. The contract will be extended for an additional year, expiring on June 30, 2026.
2. The rate being paid to Cowdell Law will increase by approximately 2%.
The current rate being paid to Cowdell Law is a flat monthly rate of $7,410 ($88,920 annually). The proposed 2% increase will increase the flat monthly rate to $7,558 ($90,696 annually) pending Council approval. Council staff expected that the rate may increase for FY26, and preemptively requested additional funding to cover this increase, our request is found in the tentative budget under the Council Office Professional Services line item. Assuming council approval, department 1300 and 1310 (Council) will have $90,700to spend on professional services for FY26.
Over the past few years the firm has historically spent approximately 465 hours/year (an average of 9 hours/week) on Sandy City Council business. However, over the past year that number of hours has increased by 33% to approximately 624/year (an average of 12 hours/week). At the increased rate of $7,558/month, included in the amendment, the council is paying the firm an effective rate of $145.35/hour.
- 52 weeks per year x 12 hours = 624 hours
- $90,696/624 hours = $145.35 per hour
Cowdell Law has indicated that their average hourly rates generally fall within the range of $300 - $350. As you can see the effective rate that has been negotiated comes at a significant discount.
Fiscal Impact:
The negotiated change in the flat monthly rate will impact the City Council Office budget by an additional $1,776 over the contract period (12 months). Assuming council approval of the requested increase found in the Tentative Budget, the council professional services line item for FY26 will have sufficient funds to cover this change.
Further action to be taken:
Should the council give future direction to do so, staff will execute the attached Legal Services Agreement Amendment 3. If the council decides against executing the agreement staff recommends a follow up agenda item to further explore other options for council legal services.
This agreement will follow the fiscal year becoming effective on July 1, 2025 and expiring on June 30, 2026. This is the final extension of the current contract, and the council will need go through the RFP process next calendar year.
Recommended Action and/or Suggested Motion:
Recommendation
Motion directing Council Staff and the Council Chairperson to execute the attached Legal Services Agreement, Amendment 3, prior to June 30, 2025.