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HomeMy WebLinkAbout2006 CON CDC Christensen, Schwerdtfeger - Legal ServicesAGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND CHRISTENSEN SCHWERDTFEGER & SPATH LLP THIS AGREEMENT is entered into this 22"d day of August 2006, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a municipal corporation (the "CDC"), and Christensen Schwerdtfeger & Spath LLP (the "CONTRACTOR"). RECITALS WHEREAS, the CDC desires to employ CONTRACTOR to provide legal advice and assistance with regard to provide legal services, as and when requested by the CDC, involving issues of affordable housing, redevelopment law, and related litigation, if requested, as more specifically described in Exhibit A, which is incorpated herein by reference; and WHEREAS, the CDC has determined that the CONTRACTOR is a qualified and experienced law firm and has ability to perform the services desired by the CDC; and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CDC hereby agrees to engage the CONTRACTOR, and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR, or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit A. The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CDC for such services, except as authorized in advance by the CDC. The CONTRACTOR shall appear at meetings as required and requested to keep staff and the CDC advised of the progress on the PROJECT. 3. PROJECT COORDINATION AND SUPERVISION. Patricia Beard hereby is designated as the Project Coordinator for the CDC and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress 1 and execution of this Agreement for the CONTRACTOR. Charles B. Christensen is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit A shall not exceed $75,000 without prior written authorization from the CDC. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit A as determined by the CDC. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CDC and for furnishing of copies to the CDC, if requested. 5. LENGTH OF AGREEMENT. CONTRACTOR services as set forth in Exhibit A, shall be completed by August 22, 2007. The Executive Director shall have the authority to extend this agreement for a period of up to six (6) months in the event that circumstances outside of the Contractor's control delay completion of the Project. 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The memoranda, reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR for the PROJECT, whether paper or electronic, shall become the property of the CDC for use with respect to this PROJECT, and shall be turned over to the CDC upon completion of the PROJECT, or any phase thereof, as contemplated by this AGREEMENT. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CDC, and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this Agreement, except upon the CDC's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CDC, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CDC may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's written work product for the CDC's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CDC of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CDC, or for any liability to the CDC should the documents be used by the CDC 2 for some project other than what was expressly agreed upon within the Scope of this PROJECT, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this AGREEMENT will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employees of the CDC and are not entitled to any of the rights, benefits or privileges of the CDC's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This AGREEMENT contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this AGREEMENT was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this AGREEMENT nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CDC. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees or subcontractors as the CONTRACTOR may deem necessary for the proper and efficient performance of this AGREEMENT. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this AGREEMENT. 8. CONTROL. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR, or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants or employees are in any manner agents, servants or employees of the CDC, it being understood that the CONTRACTOR, its agents, servants and employees are as to the CDC wholly independent contractors, and that the CONTRACTOR's obligations to the CDC are solely such as are prescribed by this AGREEMENT. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this AGREEMENT. 10. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of this AGREEMENT, any license, permit or approval which is legally required for the CONTRACTOR to practice its profession. 3 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this AGREEMENT, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR's trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this AGREEMENT, the CONTRACTOR warrants to the CDC that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, or arbitration proceedings concerning the CONTRACTOR's professional performance, or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the PROJECT the CONTRACTOR has been retained to perform, within the time requirements of the CDC, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CDC otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the PROJECT documents prepared for the CDC are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CDC for any increased costs that result from the CDC's later inability to obtain the specified items or any reasonable substitute within a price range that allows for PROJECT completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 13. CONFIDENTIAL INFORMATION. The CDC may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CDC. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the 4 extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this AGREEMENT without the prior written consent of the CDC. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CDC for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify, and hold harmless the Community Development Commission of the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent performance of this AGREEMENT. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CDC and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CDC or its officers, employees or volunteers for, or on account of, any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this AGREEMENT. 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this AGREEMENT, the following insurance policies: A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. 5 B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this AGREEMENT, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this AGREEMENT. D. Workers' compensation insurance covering all of CONTRACTOR's employees. E. The aforesaid policies shall constitute primary insurance as to the CDC, its officers, and employees so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CDC and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this AGREEMENT. H. Any aggregate insurance limits must apply solely to this AGREEMENT. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. J. This AGREEMENT shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this AGREEMENT, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this AGREEMENT and terminate the AGREEMENT as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements, or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this AGREEMENT, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. 6 For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CDC shall, in addition, be limited to the amount of attorney's fees incurred by the CDC in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this AGREEMENT, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this AGREEMENT, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AM then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for,and bear the costs of, its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This AGREEMENT may be terminated with or without cause by the CDC. Termination without cause shall be effective only upon 60-day's written notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance with this AGREEMENT. B. This AGREEMENT may also be terminated immediately by the CDC for cause in the event of a material breach of this AGREEMENT, misrepresentation by the CONTRACTOR in connection with the formation of this AGREEMENT, or the performance of services, or the failure to perform services as directed by the CDC. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished memoranda reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of, and be delivered to, the CDC, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CDC by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CDC all rights set forth in Section 6. 7 E. The CDC further reserves the right to immediately terminate this AGREEMENT upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile, fax or email; and, shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, fax or email, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CDC: Patricia Beard, Redevelopment Manager Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 To the CONTRACTOR: Charles B. Christensen, Esq. Christensen Schwerdtfeger & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this AGREEMENT, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the Community Development Commission of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the PROJECT in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City 8 Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CDC in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CDC. ❑ If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CDC for all damages, costs or expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this AGREEMENT is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, state or legal holiday. B. Counterparts. This AGREEMENT may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this AGREEMENT are solely for the convenience of the parties hereto, are not a part of this AGREEMENT, and shall not be used for the interpretation or determination of the validity of this AGREEMENT or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this AGREEMENT shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this AGREEMENT. The terms of this AGREEMENT may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this AGREEMENT shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 9 H. Applicable Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California. I. Entire AGREEMENT. This AGREEMENT supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto, shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This AGREEMENT shall be binding upon, and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that: (i) each party is of equal bargaining strength; (ii) each party has actively participated in the drafting, preparation and negotiation of this AGREEMENT; (iii) each such party has consulted with, or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this AGREEMENT; (iv) each party and such parry's counsel and advisors have reviewed this AGREEMENT; (v) each party has agreed to enter into this AGREEMENT following such review and the rendering of such advice; and, (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this AGREEMENT, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CI By: Christensen Schwerdtfeger & Spath LLP C By: a, Chairman Charles B. Christensen APPROVED AS TO FORM: By: �%)" George H. Eiser, Ill CDC Legal Counsel By: Managing Partner 10 EXHIBIT A SCOPE OF SERVICES Perform legal services, as and when requested by the CDC, concerning all issues within the expertise of Contractor, including but not limited to services in connection with the following: • Affordable housing • Redevelopment law • Housing authority law • Federal and state financing programs and program compliance • Section 8 Program advice • Tax credit financing • Bond financing • First time homebuyer programs • Fannie Mae Secondary Market compliance • Litigation of all kinds, including without limitation, environmental issues, condemnation actions, Polanco actions, enforcement of regulatory agreements and enforcement of inclusionary agreements • Deed of trust foreclosures • Appointment of receivers, and other litigation, as and when requested • Drafting of documents, including, but not limited to, disposition and development agreements, exclusive negotiating agreements, affordability restrictions, loan agreements, environmental indemnity agreements, UCC financing statements, security agreements, deeds of trust, and other documentation • All such other andfurther services, including transactional and litigation services as and when requested by the CDC of National City Rates are as follows: Attorneys Paralegals Clerks Non Litigation $150.00 $90.00 $70.00 Litigation $175.00 $90.00 $70.00 11 RESOLUTION NO. 2006 - 182 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH CHRISTENSEN, SCHWERDTFEGER & SPATH, LLP, FOR AS -NEEDED LEGAL SERVICES WHEREAS, the Community Development Commission of the City of National City (CDC) is charged with implementing the National City Redevelopment Plan; and WHEREAS, the CDC desires to retain Christensen, Schwerdtfeger & Spath, LLP to provided as -needed legal services to the CDC; and WHEREAS, Christensen, Schwerdtfeger & Spath, LLP is a qualified and experienced law firm, and has satisfactorily provided legal services to the CDC on a variety of projects and issues pertaining to affordable housing, redevelopment law and related litigation. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute an agreement with Christensen, Schwerdtfeger & Spath, LLP to provide as -needed legal services. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 22nd day of August, 2006. ATTEST' Chris a , Seetary APPROVED AS TO FORM: George H. Eiser, Ill Legal Counsel rr�u'I Nick - zunza, C airman Passed and adopted by the Community Development Commission of National City, California, on August 22, 2006, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NI INZUNZA unity Development Commission Secr Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2006-182 of the Community Development Commission of the City of National City, California, passed and adopted on August 22, 2006. Secretary Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE August 77, 9006 AGENDA ITEM NO. 39 ITEM TITLE Resolution of the CDC authorizing the Chairman to execute an Agreement with Christensen Schwerdtfeger & Spath LLP (CSS) for as needed legal services PREPARED BY DEPARTMENT Xavier Del Valle, Senior Project Manager Community Development Commission (CDC) EXPLANATION On March 2, 2004, the CDC approved an Agreement with Christensen Schwerdtfeger & Spath LLP (CSS) for as needed legal services. The Agreement with CSS has since expired, and staff desires to retain CSS to continue to provide legal services to the CDC, when requested. CSS is a qualified and experienced law firm, and has satisfactorily provided legal services to the CDC on a variety of projects and issues pertaining to affordable housing, redevelopment law, and related litigation. As a result, staff recommends that the Board approve the Agreement with CSS for as needed legal services. The attached Background Report outlines the Agreement's scope of work. Environmental Review CEQA is not applicable Financial Statement The Agreement sets a not to exceed amount of $75,000 for services from the effective date until August 22, 2007. Account No STAFF RECOMMENDATION Adopt resolution approving an Agreement with Christensen Schwerdtfeger & Spath LLP for as needed legal services and authorizing the Chairman to execute said Agreement ATTACHMENTS 1. Resolution 2. Agreement l � A-200 (9/80) Resolution No. 'LJO I RESOLUTION NO. 2006 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH CHRISTENSEN, SCHWERDTFEGER & SPATH, LLP, FOR AS -NEEDED LEGAL SERVICES WHEREAS, the Community Development Commission of the City of National City (CDC) is charged with implementing the National City Redevelopment Plan; and WHEREAS, the CDC desires to retain Christensen, Schwerdtfeger & Spath, LLP to provided as -needed legal services to the CDC; and WHEREAS, Christensen, Schwerdtfeger & Spath, LLP is a qualified and experienced law firm, and has satisfactorily provided legal services to the CDC on a variety of projects and issues pertaining to affordable housing, redevelopment law and related litigation. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute an agreement with Christensen, Schwerdtfeger & Spath, LLP to provide as -needed legal services. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 22nd day of August, 2006. Nick lnzunza, Chairman ATTEST: Chris Zapata, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel ATTACHMENT 1 BACKGROUND REPORT On March 2, 2004, the CDC approved an Agreement with Christensen Schwerdtfeger & Spath LLP (CSS) for as needed legal services. Since then, the firm has provided legal services for a variety of projects and issues pertaining to: • Density Bonus; • Affordable housing connected with redevelopment projects; • Shared Equity Loans; • Prevailing Wages; • HUD Section 8 Requirements; • First Time Homebuyer Loans and Grants; • HUD Home Regulations; • Housing set aside funds; and • Consultation regarding HUD, CDBG, elder care, and other related issues. Since the original Agreement with CSS has expired, a new Agreement is necessary in order for them to continue to provide the CDC with legal services, when requested. If approved, the new Agreement with CSS shall include providing legal services to the CDC on a variety projects and issues, including but not limited to the following: • Affordable housing; • Redevelopment law; • Housing authority law; • Federal and state financing programs and program compliance; • Section 8 Program advice; • Tax credit financing; • Bond financing; • First time homebuyer programs; • Fannie Mae Secondary Market compliance; • Litigation of all kinds, including without limitation, environmental issues, condemnation actions, Polanco actions, enforcement of regulatory agreements and enforcement of inclusionary agreements; • Deed of trust foreclosures; • Appointment of receivers, and other litigation, as and when requested; • Drafting of documents, including, but not limited to, disposition and development agreements, exclusive negotiating agreements, affordability restrictions, loan agreements, environmental indemnity agreements, security agreements, deeds of trust, and other documentation; and • All such other and further services, including transactional and litigation services as and when requested by the CDC. The Agreement sets a not to exceed amount of $75,000 for services from the effective date until August 22, 2007. AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND CHRISTENSEN SCHWERDTFEGER & SPATH LLP THIS AGREEMENT is entered into this 22nd day of August 2006, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a municipal corporation (the "CDC"), and Christensen Schwerdtfeger & Spath LLP (the "CONTRACTOR"). RECITALS WHEREAS, the CDC desires to employ CONTRACTOR to provide legal advice and assistance with regard to provide legal services, as and when requested by the CDC, involving issues of affordable housing, redevelopment law, and related litigation, if requested, as more specifically described in Exhibit A, which is incorpated herein by reference; and WHEREAS, the CDC has determined that the CONTRACTOR is a qualified and experienced law firm and has ability to perform the services desired by the CDC; and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CDC hereby agrees to engage the CONTRACTOR, and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR, or under direct supervision of the CONTRACTOR. 2. SCOPE OF .SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit A. The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CDC for such services, except as authorized in advance by the CDC. The CONTRACTOR shall appear at meetings as required and requested to keep staff and the CDC advised of the progress on the PROJECT. 3. PROJECT COORDINATION AND SUPERVISION. Patricia Beard hereby is designated as the Project Coordinator for the CDC and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress 1 and execution of this Agreement for the CONTRACTOR. Charles B. Christensen is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit A shall not exceed $75,000 without prior written authorization from the CDC. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit A as determined by the CDC. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CDC and for furnishing of copies to the CDC, if requested. 5. LENGTH OF AGREEMENT. CONTRACTOR services as set forth in Exhibit A, shall be completed by August 22, 2007. The Executive Director shall have the authority to extend this agreement for a period of up to six (6) months in the event that circumstances outside of the Contractor's control delay completion of the Project. 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The memoranda, reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR for the PROJECT, whether paper or electronic, shall become the property of the CDC for use with respect to this PROJECT, and shall be turned over to the CDC upon completion of the PROJECT, or any phase thereof, as contemplated by this AGREEMENT. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CDC, and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this Agreement, except upon the CDC's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CDC, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CDC may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's written work product for the CDC's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CDC of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CDC, or for any liability to the CDC should the documents be used by the CDC 2 for some project other than what was expressly agreed upon within the Scope of this PROJECT, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this AGREEMENT will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employees of the CDC and are not entitled to any of the rights, benefits or privileges of the CDC's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This AGREEMENT contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this AGREEMENT was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this AGREEMENT nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CDC. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees or subcontractors as the CONTRACTOR may deem necessary for the proper and efficient performance of this AGREEMENT. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this AGREEMENT. 8. CONTROL. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR, or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants or employees are in any manner agents, servants or employees of the CDC, it being understood that the CONTRACTOR, its agents, servants and employees are as to the CDC wholly independent contractors, and that the CONTRACTOR's obligations to the CDC are solely such as are prescribed by this AGREEMENT. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this AGREEMENT. 10. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of this AGREEMENT, any license, permit or approval which is legally required for the CONTRACTOR to practice its profession. 3 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this AGREEMENT, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR's trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this AGREEMENT, the CONTRACTOR warrants to the CDC that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, or arbitration proceedings concerning the CONTRACTOR's professional performance, or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the PROJECT the CONTRACTOR has been retained to perform, within the time requirements of the CDC, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CDC otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the PROJECT documents prepared for the CDC are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CDC for any increased costs that result from the CDC's later inability to obtain the specified items or any reasonable substitute within a price range that allows for PROJECT completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 13. CONFIDENTIAL INFORMATION. The CDC may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CDC. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the 4 extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this AGREEMENT without the prior written consent of the CDC. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CDC for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify, and hold harmless the Community Development Commission of the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent performance of this AGREEMENT. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CDC and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CDC or its officers, employees or volunteers for, or on account of, any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this AGREEMENT. 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this AGREEMENT, the following insurance policies: ® A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. 5 B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this AGREEMENT, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this AGREEMENT. employees. D. Workers' compensation insurance covering all of CONTRACTOR's E. The aforesaid policies shall constitute primary insurance as to the CDC, its officers, and employees so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CDC and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this AGREEMENT. H. Any aggregate insurance limits must apply solely to this AGREEMENT. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. J. This AGREEMENT shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this AGREEMENT, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this AGREEMENT and terminate the AGREEMENT as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements, or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this AGREEMENT, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. 6 For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CDC shall, in addition, be limited to the amount of attorney's fees incurred by the CDC in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this AGREEMENT, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this AGREEMENT, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for,and bear the costs of, its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This AGREEMENT may be terminated with or without cause by the CDC. Termination without cause shall be effective only upon 60-day's written notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance with this AGREEMENT. B. This AGREEMENT may also be terminated immediately by the CDC for cause in the event of a material breach of this AGREEMENT, misrepresentation by the CONTRACTOR in connection with the formation of this AGREEMENT, or the performance of services, or the failure to perform services as directed by the CDC. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished memoranda reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of, and be delivered to, the CDC, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CDC by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CDC all rights set forth in Section 6. 7 E. The CDC further reserves the right to immediately terminate this AGREEMENT upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile, fax or email; and, shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, fax or email, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CDC: To the CONTRACTOR: Patricia Beard, Redevelopment Manager Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4397 Charles B. Christensen, Esq. Christensen Schwerdtfeger & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this AGREEMENT, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the Community Development Commission of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the PROJECT in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City 8 Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CDC in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CDC. ❑ If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CDC for all damages, costs or expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this AGREEMENT is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, state or legal holiday. B. Counterparts. This AGREEMENT may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this AGREEMENT are solely for the convenience of the parties hereto, are not a part of this AGREEMENT, and shall not be used for the interpretation or determination of the validity of this AGREEMENT or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this AGREEMENT shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this AGREEMENT. The terms of this AGREEMENT may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this AGREEMENT shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 9 H. Applicable Law. This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California. I. Entire AGREEMENT. This AGREEMENT supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto, shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This AGREEMENT shall be binding upon, and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that: (i) each party is of equal bargaining strength; (ii) each party has actively participated in the drafting, preparation and negotiation of this AGREEMENT; (iii) each such party has consulted with, or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this AGREEMENT; (iv) each party and such party's counsel and advisors have reviewed this AGREEMENT; (v) each party has agreed to enter into this AGREEMENT following such review and the rendering of such advice; and, (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this AGREEMENT, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Christensen Schwerdtfeger & Spath LLP By: By: Nick lnzunza, Chairman APPROVED AS TO FORM: By: George H. Eiser, Ill CDC Legal Counsel Charles B. Christensen By: Managing Partner 10 EXHIBIT A SCOPE OF SERVICES Perform legal services, as and when requested by the CDC, concerning all issues within the expertise of Contractor, including but not limited to services in connection with the following: • Affordable housing • Redevelopment law • Housing authority law • Federal and state financing programs and program compliance • Section 8 Program advice • Tax credit financing • Bond financing • First time homebuyer programs • Fannie Mae Secondary Market compliance • Litigation of all kinds, including without limitation, environmental issues, condemnation actions, Polanco actions, enforcement of regulatory agreements and enforcement of inclusionary agreements • Deed of trust foreclosures • Appointment of receivers, and other litigation, as and when requested • Drafting of documents, including, but not limited to, disposition and development agreements, exclusive negotiating agreements, affordability restrictions, loan agreements, environmental indemnity agreements, UCC financing statements, security agreements, deeds of trust, and other documentation • All such other and further services, including transactional and litigation services as and when requested by the CDC of National City Rates are as follows: Attorneys Paralegals Non Litigation $150.00 $90.00 Litigation $175.00 $90.00 Clerks $70.00 $70.00 11 City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 September 5, 2006 Mr. Charles B. Christensen, Esq. Christensen Schwerdtfeger & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Project: National City Community Development Commission — As Needed Legal Services Dear Mr. Christensen: On August 22, 2006 the City Council of the City of National City passed and adopted Resolution No. 2006-182 authorizing the Chairman to execute an agreement with Christensen Schwerdffeger & Spath LLP. We are pleased to enclose one fully executed original Agreement and one certified copy of the Resolution for your records. Michael R. Dalla City Clerk MRD Enclosure cc: Community Services File: C2006- ® Recycled Paper