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HomeMy WebLinkAboutMINUTES - 05181993 - FC.1 r `TO: BOARD OF SUPERVISORS Contra Costa FROM: Finance Committee County DATE: May 18, 1993 jos... .. qC UN SUBJECT: REPORT ON NEW PROCEDURES FOR SELECTING LEGAL CONSULTANTS, OUTSIDE ATTORNEYS, REVIEW OF BILLINGS, CONFLICT OF INTEREST POLICY AND PRO BONO ACTIVITIES SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. Approve the attached procedures for the selection and monitoring of outside litigation counsel. 2. Consider the establishment of a community task force to review policy and procedures for the selection and monitoring of outside litigation counsel and advise the Board of Supervisors on improvements to current policies and procedures (Split Vote of Committee). 3. Direct the County Counsel to solicit directories of legal firms which are small and minority owned for future consideration in bidding for legal services. 4. Approve the County Counsel's report on pro bono legal services for county benefit. 5. Direct the County Counsel and Risk Management to quantify the nature and extent of pro bono legal services provided to the county over the past several years and report such services to the Board in the future on a quarterly basis. CONTINUED ON ATTACHMENT: __YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): Gayle Bishop Tom Power ACTION OF BOARD ON may 18, 1593 APPROVED AS RECOMMENDED OTHER X The Board adopted recommendations 1, 3, 4, 5, 6 and 7, excluding recommendation 2. Supervisor Gayle Bishop abstained, commenting that she was in favor of public input in the matter, and she would like to have it continued to another date. VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT- AND CORRECT COPY OF AN ACTION TAKEN AYES: T, T T, TV & V NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: T T T OF SUPERVISORS ON THE DATE SHOWN. CC: County Counsel ATTESTED May 18, 1993 County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF Risk Management-CAO SUPERVISORS AND COUNTY ADMINISTRATOR BY M382 (10/88) ,DEPUTY r -2- 6. Establish a county policy on pro Bono legal services which stipulates that a firm providing pro bono work for the county shall not diminish pro bono work with non- profit organizations who contract with the county. 7. Approve the County Counsel's policy on conflicts of interest for outside legal counsel. BACKGRDUND: On April 26 and May 17, the Finance Committee reviewed proposals and heard testimony regarding the selection and monitoring of outside litigation counsel, a conflict of interest policy and pro bono legal service activities. After due. deliberation, the Committee adopted seven recommendations on these subjects, but the second recommendation was included in the report on a split vote. The Committee also suggested that staff provide information not specifically listed in the proposed procedures. First, that staff provide the Board with status reports on case and billing information on perhaps a monthly basis. Second, that the County Counsel indicate what factors were applied in recommending to the Board that a firm receive a waiver from the conflict of interest policy. i I i PROPOSED PROCEDURES FOR SELECTION AND MONITORING OF OUTSIDE LITIGATION COUNSEL I. INTRODUCTION: The following document outlines the proposals for the Board of Supervisors usual review of the selection and monitoring of Law Firms or particular attorneys to contract with the County for the performance of legal services. Specific recommendations for the selection and monitoring of outside counsel .are made. II. BOARD OF SUPERVISORS REVIEW AND MONITORING OF PENDING LITIGATION: Staff recommends that the Board 'of Supervisors as a whole sit as a committee to address pending litigation matters. Appropriate staff will assist and attend the committee as required. III. SELECTION AND MONITORING OF SPECIAL COUNSEL: A. The implementation and administration of this Part III will be in accordance and consistent with the County Counsel's "Contra Costa County Outside Counsel Policies and Procedures (Rev. 4-93) . " now in force and as hereafter modified. B. Special Counsel are attorneys engaged to handle non recurring legal problems requiring special expertise not available under current legal contracts. C. Criteria for selection will be reviewed by the Board of Supervisors upon recommendations of the CAO (including risk management as- appropriate) and/or County Counsel. Criteria for selection should include recommendations as to: 1. Area of expertise 2 . Experience level required, 3. References, 4 . Complexity, difficulty or sensitivity of the project, 1 5. Trial experience, where appropriate,. 6. Acceptable legal rate. D. Process of selection: 1. CAO and/or County Counsel prepare a task or case summary, 2. CAO and County Counsel will investigate and select at least three top law firms meeting the experience and expertise requirements necessary for the particular assignment for review and recommendation to the Board of Supervisors. 3. Requests for proposals will be prepared by CAO or County Counsel outlining the required legal services and the matters required to be addressed in the response to the request for proposal.,- 4. roposal4. The responses to the request for proposal should include a preliminary prospective budget, initial anticipated hours to be used, level of staffing and hourly rates and outline of necessary legal services. 5. The CAO and County Counsel will review the proposals submitted and present them with their comments and recommendations to the Board of Supervisor's for its evaluation. E. Billing Review for Special Counsel 1. A Supervising Attorney shall be appointed by County Counsel to monitor the activities and billings of outside Special Counsel (together with Risk Management when involved. ) 2 . Activities and bills of outside Special Counsel and task or case status shall also be reviewed by the Board of -Supervisors at each $50,000.00 increment. 3. County Counsel may recommend additional procedures for legal task or case reviewing and billing monitoring for Board of Supervisors for particular matters. 4. The Auditor shall continue to review the billings for accuracy and contract compliance, but in a manner that will not compromise the attorney client or work product privilege. 2 i 5. At the discretion of County Counsel or the County Administrator, an independent legal audit may be recommended for Board of Supervisors approval. The Board of Supervisors may order a legal audit at any time either on recommendation of staff or on their own motion. F. Case Management for Special Counsel 1. The Supervising Attorney (together with Risk Management when involved) shall be charged with the duty of reviewing the management of legal activities of Special Counsel with any additional guidelines as are recommended by County Counsel and approved by the Board of Supervisors. 2. The County Counsel, the County Administrator (or Risk Management when involved) shall report the status of cases being handled by Special Counsel to the Board of Supervisors for its review and direction on a regular basis, but not less than three times a year. IV. SELECTION OF NON SPECIAL CONTRACT ATTORNEYS A. General tort liability defense for the county has been generally handled by private attorneys holding contracts negotiated by Risk Management and approved by the Board of Supervisors. These contracts generally are negotiated for periods of up to two years. Presently there are 16 legal firms providing these services. B. The monitoring of outside contract attorneys shall be in accordance and consistent with the "Liability Claims Manual (7-90) . " C. Criteria for selection include the following: 1. Specific experience in the defense of public entities in one or more of the following areas a. Medical Malpractice Defense b. Automobile liability C. General liability which includes ( 1) civil rights, (2) employment actions, (3) inverse condemnation, (4) road design, 3 (5) premises liability, (6) police procedures. 2. Presently contracted attorneys meet these specific experience requirements by having at least five years or more of trial experience. New attorneys applying for selection should have at least this level of experience. 3. Trial experience of new attorneys shall produce records of Jury Verdicts Weekly documenting their successful trial record and appropriate references from judges before whom they have tried cases and plaintiff's and defense attorneys. 4 . Selection of new attorneys shall require an investigation by Risk Management into the trial results and experience levels of any new applicants. Recommendations specific requirements for selection should be discussed with the Board of Supervisors. 5. Upon initial selection a new contract attorney shall serve at least two years probation before being eligible for the final list. V. LEGAL SERVICES REVIEW (Contract List Attorneys) A. Reporting: 1. Upon receipt of assignment, the attorney must respond in writing, outlining their legal discovery plan or outline proposed legal services (in non litigation matters) . 2. The report must include the anticipated legal budget. 3. The report must include initial liability analysis and outline proposed additional investigation. 4. Following initial assignment quarterly status reports shall be required using the format presently in use under Risk Management supervision. 5. Copies of all pleadings and correspondence should be sent to the Liability Claims Manager in Risk Management and to the County Counsel to the attention of the Civil Litigation Attorney. 6. Reports of trial dates and other court 4 appearances, depositions, motions, and significant changes in status shall be made immediately to both Risk Management and County Counsel as designated above. B. Billing Controls 1. At the outset of each case, the contract attorney shall submit a case budget outlining the estimated costs of the discovery, experts and trial that are anticipated to be incurred. . 2. In the event that the proposed budget is to be exceeded the matter should be referred by staff to the Board of Supervisors for in depth review of case progress, strategy and prospects. 3. When any file has reached a total billing of $50,000.00, the contract law firm shall be _ required to report to Risk Management and County Counsel. 4 . At each subsequent increment of $50,000.00, the contract law firm shall be required to advise Risk Management and County Counsel. 5. In the event, the contract law firm fails to make a report at each $50,000.00, Risk Management shall remind them of the need to make such report. 6. Risk Management shall continue to review the billings of Contract Counsel to make sure that appropriate billing practices are followed. 7. Billings should be itemized by . 1 hours describing the activity or service being rendered. 8. No interoffice consultation charges shall be allowed. 9. Senior Partners can assign work to one associate. Assignments to more than one associate requires advance approval from Risk Management or County Counsel. 10. only one attorney may be bill for attending depositions, settlement conferences, motions, trial or other appearances without the prior approval of Risk Management or County Counsel. 11. No attorney outside the firm to which the case is assigned may work on the file without prior 5 approval of Risk Management or County Counsel. 12. All paralegal time must be itemized and cannot exceed the negotiated limit (presently 45 dollars an hour) except in medical malpractice cases. 13. Clerical costs such as word processing, indexing, tabulating, scheduling and filing are not to be charged to the County. These activities are overhead and not properly billable. 14. Each written quarterly status report must conclude with a total of fees incurred to date. 15. The Auditor's Office shall continue to monitor legal billings and contract compliance in a manner that does not compromise attorney client privilege or work product. 16 . The Board will be requested to continue to Fund the independent claims auditor for reviews on a biannual basis if possible. 17 . If Risk Management or County Counsel have any question about billing practices of a contract law firm, it shall order an independent legal audit. C. Pending Litigation Billing Review 1. When any legal billing has reached a total of $50,000.00 the case shall be referred to the Board of Supervisors for review. 2 . Periodic reviews shall take place at every $50,000.00 increment thereafter by the Board of Supervisors. D. Case management 1. The Board of -Supervisors will review significant cases or bills referred to them by CAO or County Counsel or such cases as the Board of Supervisors, on its own motion, deems appropriate for review. 2. The staff may request Board of Supervisors review in any appropriate case. 3. The present system of litigation status reports to the full Board of Supervisors of pending litigation shall continue as the above suggestions are in addition to current practice. C:\WORK\FINANCB.CM2 6 COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ CALJFORNIA Date: May 7, 1393 To: Board of Supervisors From: VICTOR J. WESTMAN, County Counsel Re: Pro Bono Legal Services For County Benefit By its order, the Board of Supervisors has directed that legal firms who have performed substantial compensated legal services for the County during the preceeding three year period should be requested to indicate their agreement and availability to provide some pro bono legal services for the County. As directed, this office has contacted the law firms of Rosen, Bien & Asaro; Crosby, Heafy, Roach & May; and Morrison & Foerster - all of whom have indicated they would be willing to provide some pro bono legal services (or continue that provision) within certain parameters. All three firms were concerned that they retained their discretion to determine if any County request for specific pro bono legal services meets their individual firm's criteria for the acceptance and performance of such work, no particular conflict difficulties exist, and their firm resources are availble at that time for the performance of the requested task. Concerning the these three law firms, the Rosen office indicated (subject to the aforenoted parameters) that the firm would be pleased to provide a reasonable amount of pro bono legal services for Contra Costa County's benefit. In further discussions with the firm, it was indicated it was willing to accept some appellate work from this office in areas involving challenges to County decisions. We are presently in the process of determining cases and materials to be submitted to the Rosen firm for its consideration and acceptance on a pro bono basis. The Crosby, Heafy, Roach and May law firm has indicated that it would continue to consider providing pro bono representation of the County subject to the above-noted criteria as into any particular proposed legal task. As you are probably aware, this firm on a pro bono basis has been defending the Board of Supervisors' decision approving the proposed establishment of a Youth Recovery Facility in the Marsh Creek area by the Bi-Bett Corporation. Board of Supervisors 2 May 7, 1993 Finally, the firm of Morrison and Foerster has indicated that it will consider (in appropriate circumstances meeting its criteria) the assumption of the provision of some pro bono legal services for Contra Costa County. We are in the process of considering what particular legal matter or matters would be appropriate for submission to that firm for its consideration. As noted above, all three of these law firms were concerned that whatever pro bono, work they agree to provide for the County meets their firms, criteria for the provision of public benefit or civic duty type legal services. We will proceed to arrange for pro bono, servicess from these law firms and will report to the Board on the services provided. VJW:df dfIOM: pro-bono SANPOM JAY ROSEN t TELEPHONE MICHAEL W.BIEN ROSEN, BIEN& AsARO APR 44161433-6630 ANDREA Q.ASARO 8199 ATTORNEYS AT LAW 3 ALLISON M.ZIEVE EIGHTH FLOOR 1ZTELEFAX KATHERINE SHER 155 MONTGOMERY STREET 14161433-7104 STEPHEN M.UACOURASIt ARTHUR L MARTIN(Of Cow*41 SAN FRANCASCO. CALIFORNIA 94104 April 6, 1913 Arthur Walenta, Esq. Office of the County Counsel Contra Costa County 651 Pine Street Martinez, CA 94553 Dear Mr. Walenta: This is in response to your letter of April 1, 1993. My firm would be pleased to provide a reasonable amount of 1pro, no legal services to Contra Costa County. our willingness to undertake any particular assignment, of course, will depend upon conflicts checks, availability of firm resources at the time a request is made, and other such considerations. I wish to remind you, as well, that as in the past, for more routine matters, my firm is prepared to represent the County at substantially reduced rates. I remains our pleasure to work with the County of Contra Costa. Sincerely yours, ROSEN, IEN & ASARO I/AR;O By: a se SJR:mjs I MEMBER OF THE CONNECTICUT AND DISTRICT OF COLUMBIA BARS,AS WELL AS THE CALIFORNIA BAR CROSBY. HEAFEY, ROACH & MAY PROFESSIONAL CORPORATION ATTORNEYS AT LAW 1999 HARRISON STREET 700 SOUTH FLOWER STRCE%SUITE 2200 333 GUSH STREET,SUITE 2500 LO's ANGELES.CALIFORNIA 000#7 OAKLAND,CALIFORNIA 94612-3573 SAN FR"CISOO,CALIFORNIA 04104-2899 (213)6ee-5000 (510)763-2000 (445)543-6700 FAX(ZLA)age-6080 (415) 986-3400 FAX(415)301-6900 FAX(510)273-8866 RECEIVE0 121993 April 8, 199344jj#ft ° Victor J. Westman, Esq. Office of the County Counsel County Administration Building P. O. Box 69 Martinez, CA 94553 Re: Pro Bono Cases Dear Mr. Westman: I received your letter of April 2, 1993. We will, as we have in the past, consider representing Contra Costa County on a pro bono basis in appropriate cases that meet our criteria for such work. We believe programs such as this offer benefits to our firm as well as to the County. It is our hope and belief that our normal legal services rendered to the County are at a competitive rate and that the quality of service and the results are consistently excellent. Although your letter seems to link the handling of complex matters that generate over $100,000 in fees with participation in a pro bono legal services program, we view pro bono work as a civic duty rather than linked to a volume of business. We would be happy to consider continued pro bono'representation of the County once the policy has been more clearly defined. CROSBY, HEAFEY, ROACH & MAY PROFESSIONAL CORPORATION Victor J. Westman, Esq. April 8, 1993 Page 2 Obviously, we look forward to working with you and the County on both normal fee contracts and on thoselohn appropriate or pro bono services. y trul urs, E. Carner� �" -- JEC/r MORRISON &FOERSTER SAN FRANCISCO ATTORNEYS AT LAW NEW YORK LOS ANGELES WASHINGTON,D.C. SACRAMENTO PLEASE RESPOND TO: DENVER ORANGE COUNTY P.O.BOX SEV LONDON PALO ALTO WALNUT CREEK,CA 9459644 BRUSSELS SEATTLE Vt.CSrjVD HONG KONG 101 YGNACIO VALLEY ROAD SUITE 450 TOKYO WALNUT CREEK,CA 94596-4095 TELEPHONE (510)295-3300 DIRECT DIAL NUMBER TELER4CSIMILE (510)946-9912 (510)295-3310 May 7, 1993 BYMESSENGER Victor Westman County Counsel Contra Costa County County Administration Building 651 Pine Street, 9th Floor Martinez, CA 94553 Re: Pro Bono Legal Services Dear Vic: As you know, Morrison&Foerster is extremely proud of its longstanding tradition and commitment to pro bono service. We understand from your letter dated April 2, 1993 that the Board of Supervisors may be developing policies requiring law Cams doing work for the County to provide some legal services to Contra Costa County on a pro bono basis. We are enclosing for your information a few copies of our pro bono, handbook which sets forth this firm's policies and describes its proud tradition as a leader among major United States law firms in its commitment to providing pro bono legal services. As this handbook indicates, we provide pro bono legal services consistent with Morrison & Foerster's pro bono policies, and subject to resolving actual or potential conflicts of interest. In 1992, Morrison &Foerster personnel performed 115,000 hours of pro bonowork. The average Morrison& Foerster attorney spent 110 hours on pro bono, cases. h MORRISON &FOERSTER Victor Westman May 7, 1993 Page Two The firm has dedicated substantial pro Bono services to children's issues, women's issues, health care, affordable housing, and AIDS. Here in Contra Costa County, we have been extremely active in the Contra Costa Legal Aid program, and in substantial contributions to other social and community programs. We have assisted governmental agencies confronted with emergencies, such as the City and County of San Francisco after the earthquake in 1989 and the City of Oakland after the fire in 1991. Morrison &Foerster would of course be interested in participating in a pro bono program the Board of Supervisors may establish to the extent that the legal work contemplated is consistent with the firm's pro bono policies, and subject to the resolution of any conflict issues that may be presented by a particular matter. We-look forward to hearing from you on this matter. Very truly yours, 7)�*4t A David A. Gold DAG:caj Enclosures cc: Pamela Reed, Managing Partner, Walnut Creek office Barbara Reeves, Chair, Pro Bono Committee w93643 OUTSIDE LEGAL COUNSEL CONFLICTS OF -INTEREST POLICY It is the policy of the Contra Costa County Board of Supervisors, on behalf of the County and all other governmental entities of which it is the governing board, to prohibit the employment by any law firm adverse to the County while simultaneously being employed by the County, unless the Board is advised of, and gives specific consent to, such adverse employment. Any law firm responding to a request for proposal or contract offer shall disclose all present and contemplated employment which is or may be adverse to the County. Any law firm which has been retained by the County which desires employment which is or may be adverse to the County shall transmit a statement of such desire to the County Counsel prior to undertaking such employment. The statement shall include a description of the employment and the reasons, if any, why the County should consent. The County Counsel will forward the request to the Board of Supervisors with recommendation for action. '- If the Board of Supervisors declines to consent to the employment, the law firm shall decline any such employment or shall not represent the County. The authority to give consent of the County is not delegated to any office or employee of the County. The County recognizes that this policy may exceed the Rules of Professional Conduct 4-101 and 5-102 of the State Bar of California. Where applicable, law firms employed by the County shall comply with such Rules in securing necessary consent from their other clients. Agency and Department heads are directed to disseminate this policy to currently employed counsel and include a statement of this policy in future requests for proposals and contracts with outside counsel. Specifically, and in addition, a law firm employed as bond counsel cannot represent, in the bond issue or any other matter, any other participant in the bond issue without specific consent of this Board. EXHIBIT L A:\BR-L.EXB 0 c