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HomeMy WebLinkAboutCAG2022-418 - Original - Stoel Rives, LLP Nathan Luce - Assistance With The Sale Of Naden Avenue Property to Avenue 55 - 10/24/2022Ap p r o v a l Originator:Department: Date Sent:Date Required: Authorized to Sign: Director or Designee Date of Council Approval: Grant? Yes No Type: Re v i e w / Si g n a t u r e s / R o u t i n g Comments: Date Routed to the City Clerk’s Office: Ag r e e m e n t I n f o r m a t i o n Vendor Name:Category: Vendor Number:Sub-Category: Project Name: Project Details: Agreement Amount: Start Date: Basis for Selection of Contractor: Termination Date: Local Business? Yes No* Business License Verification: Yes In-Process Exempt (KCC 5.01.045) If meets requirements per KCC 3.70.100, please complete “Vendor Purchase-Local Exceptions” form on Cityspace. Notice required prior to disclosure? Yes No Contract Number: Agreement Routing Form For Approvals, Signatures and Records Management This form combines & replaces the Request for Mayor’s Signature and Contract Cover Sheet forms. Visit Documents.KentWA.gov to obtain copies of all agreementsadccW22373_1_20 Budget Account Number: Budget? Yes No Dir Asst: Sup/Mgr: Dir/Dep: rev. 20210513 FOR CITY OF KENT OFFICIAL USE ONLY (Optional) * Memo to Mayor must be attached 116903317.2 0099865-10006 Nathan A. Luce 600 University Street, Suite 3600 Seattle, WA 98101 D. 206.386.7611 nathan.luce@stoel.com October 18, 2022 VIA EMAIL City of Kent Christina Schuck, Deputy City Attorney Civil Division | Office of the City Attorney 220 Fourth Avenue South, Kent, WA 98032 cschuck@KentWA.gov Re: Engagement Letter and Request for Advance Waiver of Conflicts of Interest Thank you for selecting Stoel Rives LLP (“Stoel Rives” or “Firm”) to represent the City of Kent (“Client” or “you”). We appreciate the opportunity to act as counsel for you. This letter, and the attached Standard Terms of Representation, set forth the terms on which Stoel Rives will provide legal services to you (“Terms of Engagement”). Scope of Engagement. You have engaged Stoel Rives to represent and advise you as counsel in connection with the development of the Naden Assemblage (“Engagement”). As we discussed, by signing this engagement letter, you acknowledge the limited scope of our engagement and the attendant risks in proceeding without a full review. Unless otherwise agreed in writing, Stoel Rives has not agreed to represent you in any other matter. If you engage Stoel Rives to represent you in any matters beyond the scope of the Engagement, these Terms of Engagement shall apply to those matters. Client Relationship. As we have discussed, you will be our client in the Engagement. To the extent that you have affiliates not otherwise defined in this letter as clients, you agree that our representation of such affiliate in the Engagement does not give rise to an attorney-client relationship between Stoel Rives and any of these affiliates, and that Stoel Rives may represent clients adverse to these affiliates in matters unrelated to this Engagement. Advance Waiver. Stoel Rives represents companies, individuals, and government agencies in many matters throughout many jurisdictions. During the time we are representing you, we may represent other clients (“Firm clients”) in disputes or transactions adverse to you that are not substantially related to the Engagement and do not materially limit our ability to represent you. By signing this letter, you consent to our present and future representation of these Firm clients and other adversaries/competitors pursuing developments in the City of Kent (including, by way of example, in connection with land use, SEPA, development permits, and similar entitlement processes). This waiver specifically does not apply to representation in any eminent domain matters, for which we would seek separate waivers if and where appropriate. This consent, if provided, also allows Stoel Rives to take positions adverse to either you, or any of your affiliates, in any of the above-described matters (whether involving the same substantive areas of law for which you have retained the Firm or some other unrelated October 18, 2022 Page 2 116903317.2 0099865-10006 areas of law, and whether involving transactional, litigation, or advisory matters), so long as two conditions are met: (1) the representation does not involve any work that we have done for you; and (2) the representation would not place us in a position to use your confidential information adversely to you. This consent, if provided, also allows Stoel Rives to disclose and/or characterize on behalf of i ts current and future clients any publicly available information, such as your issued patents, published patent applications, other publications, products, and the like, including in proceedings involving prosecution of patents and trademarks before U.S. and foreign IP authorities. Because the work that we have been asked to perform on the Engagement is unrelated to any present matter we are handling adverse to you and under the terms of our agreement would be unrelated to any future matters we may take on adverse to you, we do not believe that there is a material risk that your confidential information will be used adversely to you. Similarly, the lack of a relationship between our work for you under the Engagement and our work for other clients – current and future – suggests to us that there is little risk that our efforts on your behalf will be affected. Although we do not believe that these factors would affect your representation, you should review this yourself. To ensure that any consent you provide is fully informed, I welcome any questions you have and recommend that you review the issue of consent with independent counsel. Whether you do, however, is up to you. Principal Attorneys Handling Your Matter(s). I will be the attorney principally responsible for the Engagement. However, as our representation progresses and issues arise, other attorneys at Stoel Rives may become responsible for and handle certain aspects of our work for you. If you ever have any questions or concerns about how we staff matters, please do not hesitate to let me know. Otherwise, we will use our judgment to determine how to staff matters in the most cost-effective manner possible. Fees. Unless we agree to other arrangements, the principal factors that determine our fees incurre d in connection with the Engagement are the time devoted to the matter and the hourly rates of the attorneys and staff involved in the matter. Our hourly billing rates for lawyers currently range from $265 per hour for associates to $795 per hour for partners. My rate is $505 per hour. Time devoted by other professional staff is charged at billing rates ranging from $210 to $380 per hour. These billing rates are subject to change from time to time and are adjusted at least annually. Legal services provided after the effective date of the new rates will be charged at the new applicable rates. As explained in the enclosed Standard Terms of Representation, we may take other factors into consideration in determining our fees. Billing and Payment. Unless otherwise agreed, we will send invoices for our legal fees and expenses on a monthly basis. Our invoices include narratives of the legal services performed and itemize expenses incurred by Stoel Rives in connection with the Engagement. If you would like additional information about any of our invoices, please let me know. Payment is due within 30 days after the date of the invoice. The enclosed Standard Terms of Representation contains additional information regarding our billing processes and payment terms. In-Firm Communications. From time to time, issues may arise relating to our duties under the professional conduct rules that apply to lawyers. These issues may involve conflict of interest questions or even a dispute between Stoel Rives and a client over how we have handled a client matter. When such issues arise, we may seek the advice of our Firm Counsel and loss prevention partners. We consider such consultations to be attorney-client privileged communications. We believe that it is in our clients’ interests, as well as Stoel Rives’ interest, that when legal ethics or related issues arise during a representation, we obtain expert October 18, 2022 Page 3 116903317.2 0099865-10006 analysis of our obligations. Accordingly, you agree that if we determine in our own discretion during the course of the representation that it is either necessary or appropriate to consult with our internal or outside counsel, we have your consent to do so and that our representation of you shall not waive any attorney - client privilege Stoel Rives may have regarding the confidentiality of our communications with counsel. If the Terms of Engagement meet with your approval, please promptly sign the letter in the space below and return a copy to me so that we may begin work. Please call or email me if you have any questions. Once again, let me say how pleased we are that you have entrusted Stoel Rives to represent you in the Engagement. We look forward to working with you. Very truly yours, Nathan A. Luce THE UNDERSIGNED ACKNOWLEDGES AND ACCEPTS THE TERMS OF ENGAGEMENT, AND CONSENTS TO STOEL RIVES’ REPRESENTATION NOTWITHSTANDING THE CONFLICTS OF INTEREST DESCRIBED ABOVE. CITY OF KENT By: _____________________________________ Title: _____________________________________ Date: _____________________________________ City Attorney10/24/2022 October 18, 2022 Page 4 116903317.2 0099865-10006 STANDARD TERMS OF REPRESENTATION Fees. Unless otherwise agreed to in writing by the Client and Stoel Rives, the principal basis for computing our fees for the legal services we provide will be the amount of time spent on the matter by various lawyers and legal assistants multiplied by their individual hourly billing rates. Other factors we may consider in setting our fee include the novelty and difficulty of the questions involved; the skill required to perform the services properly; the experience, reputation, and ability of those performing the services; the time limitations imposed by the Client or the circumstances; the amount involved; and the results obtained. Costs. We will include in our statements separate charges for services such as copying, messenger and delivery service, travel, and filing fees. Unless otherwise agreed to in writing, the Client authorizes us to retain any investigators, consultants, or experts necessary in our judgment to represent the Client’s interests in the specified matter. Their fees and expenses generally will not be paid by us but will be billed directly to the Client. Estimates. We are often requested to estimate the amount of fees and costs likely to be incurred in connection with a particular matter. Because fees and costs are usually not predictable, we ge nerally make no commitment to the Client concerning the maximum fees and costs that will be necessary to resolve or complete the matter. Any mention by us of fees and costs is only an estimate. It is also expressly understood that your obligation to pay ou r fees and costs is in no way contingent on the ultimate outcome of the matter. Client Responsibilities. You agree to pay our statements for services and expenses as agreed in the Terms of Engagement. In addition, you agree to be candid and cooperative wit h us and keep us informed with complete and accurate factual information, documents, communications, and other material relevant to the subject matter of our representation or otherwise reasonably requested by us. You also agree to make any necessary busin ess and strategy decisions in a timely manner. Because we need to be able to communicate with you regarding the representation, you agree to keep us advised of name, address, telephone number, contact person, or email address changes. Advice about Possible Outcomes. From time to time, we may express opinions or beliefs concerning the matter or various courses of action and the results that might be anticipated. Any such statement made by any of our lawyers is an expression of opinion only, based on informa tion available to us at the time, and should not be construed by you as a promise or guarantee. Electronic Communications. It is likely that, during the course of this engagement, you and Stoel Rives will use electronic devices and internet services (which may include unencrypted email, mobile phones, voice over Internet, electronic data/document websites, and other technology) to communicate and transfer documents. Although the use of this technology involves some degree of risk that third parties may access confidential communications, we believe and, by signing the engagement letter, you agree that the benefits of using this technology outweigh the risk of accidental disclosure. Nevertheless, just as we have policies and systems in place designed to make our electronic communications with you reasonably secure, it is equally important that you communicate with us in a manner that reasonably protects the confidentiality of information we share and any attorney-client privilege that may apply to our communications. This means that you should not use any computers or other electronic devices, networks, or internet addresses that are owned, controlled, or may be accessed by others to send or receive confidential information to or from us. Any device you use should be password protected and not accessible for use by any third party. October 18, 2022 Page 5 116903317.2 0099865-10006 Responding to Subpoenas and Other Requests for Information. If we are required to respond to a subpoena or other formal request from a third party or a governmental agency for our rec ords or other information relating to services, we have performed for you, or to testify by deposition or otherwise concerning such services, we will first consult with you as to whether you wish to provide the information demanded or assert the attorney -client privilege to the extent you may properly do so. In such circumstances, you agree that you will reimburse us for our time and expense incurred in responding to any such demand, including, but not limited to, time and expense incurred in searching for information and photocopying costs, reviewing documents, appearing at depositions or hearings, and otherwise litigating issues raised by the request. Termination of Engagement. You may, at any time, terminate our representation upon written notice to us. We reserve the right to withdraw from our representation as required or permitted by the applicable rules of professional conduct upon written notice to you. Your termination or our withdrawal will not relieve you of your obligation to pay for services already rendered, including work in progress and incomplete at the time of termination, and to pay for all expenses incurred on your behalf by us through the termination or withdrawal date. Conclusion of Representation; Retention and Disposition of Documents. Unless previously terminated or otherwise agreed, our representation will conclude and the attorney -client relationship will terminate automatically upon the occurrence of either of the following: first, 30 days following the date on which we send you a f inal statement for services rendered in the matter(s); or second, in the event a final statement for services is not sent, when 12 months have elapsed with no meaningful billable services provided to the Client. Thereafter, should you reengage us to represent you, you agree that the terms of this letter shall apply to any matters that we handle for you unless a new engagement letter has been signed. At your request, client documents and property will be returned to you upon receipt of payment for outstanding fees and costs, although we reserve the right to copy any documents we deem appropriate. Our files and documents pertaining to the matter will be retained by us for ten years after the termination of a matter, without further notice to the Client. Post-engagement Matters. The Client is engaging us to provide legal services in connection with a specific matter. After completion of the matter, changes may occur in the applicable laws or regulations that could impact the Client’s future rights and liabilities. Unless the Client engages us after the completion of the matter to provide additional legal advice or services on issues arising from the matter, we have no continuing obligation to advise the Client on such issues or on future legal developments, including docketing milestones, making additional or continuation filings, monitoring renewal or notice dates or similar deadlines that may arise with respect to the matter, pursuing appeals, or taking other steps on the Client’s behalf to protect its interests . 1 Finn, Kelly From:Ralph, Dana Sent:Friday, October 21, 2022 3:26 PM To:Schuck, Christina Cc:Fitzpatrick, Pat; White, Tammy; Finn, Kelly Subject:RE: Naden - Ave 55 - New Attorney Engagement Letter Christina,    Thank you for the background on this request.  Please consider this my approval to move forward with retaining the  services of Mr. Luce for Naden related assistance.    Thanks,    Dana Ralph, Mayor Administration | Office of Mayor Dana Ralph 220 Fourth Avenue South, Kent, WA 98032 Phone 253-856-5700 | Fax 253-856-6700 dralph@KentWA.gov CITY OF KENT, WASHINGTON KentTV21.com Facebook Twitter YouTube Instagram   From: Schuck, Christina <CSchuck@kentwa.gov>   Sent: Friday, October 21, 2022 2:43 PM  To: Ralph, Dana <DRalph@kentwa.gov>  Cc: Fitzpatrick, Pat <PFitzpatrick@kentwa.gov>; White, Tammy <TWhite@kentwa.gov>; Finn, Kelly <KFinn@kentwa.gov> Subject: Naden ‐ Ave 55 ‐ New Attorney Engagement Letter    Mayor, We are seeking your approval to retain Nathan Luce as our outside counsel to assist with the sale of the City’s Naden Avenue property to Avenue 55. Previously, we had consulted with Beth Clark on this matter, but she has since retired. Nathan worked with Beth at Stoel Rives and before that when they were both at Foster Pepper (now Foster Garvey). Under KCC 3.70.220(E), Tammy has the authority to retain Mr. Luce and his firm Stoel Rives without further approval of Council, if you approve and expenses stay within established budgets. As I understand it, previously, ECD paid Beth Clark through existing budgeted funds. I talked with Kurt about hiring Mr. Luce now that Beth has retired. Mr. Luce’s hourly rate is $505 per hour. This is higher than our usual outside counsel rates for things like employment matters and eminent domain, but competitive for his practice area. Beth Clark’s rate was $565. We plan to use his services judiciously and as back up for the work we will do in-house. If you grant approval for our retention of Nathan Luce, can you please confirm that approval by responding to this email? Tammy will then sign off on the engagement letter and we’ll route a copy to the Clerk’s Office to retain. 2 Thank you, Christina Christina Schuck, Deputy City Attorney Civil Division | Office of the City Attorney 220 Fourth Avenue South, Kent, WA 98032 Desk: 253-856-5788 Cell: 206-532-3225 cschuck@KentWA.gov CITY OF KENT, WASHINGTON KentWA.gov Facebook Twitter YouTube Instagram