Agenda Item AGENDA STAFF REPORT ASR
Control 19-000684 |
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MEETING DATE: |
06/25/19 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Michael Alio (714) 285-5510 |
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Beverly Umholtz (714) 285-5511 |
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Subject: Increase Hourly Rates for
Workers' Compensation Legal Defense Panel
ceo CONCUR |
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Clerk of the Board |
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Concur |
N/A |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 03/01/2011
#40, 04/09/2002 # 94 |
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RECOMMENDED ACTION(S):
Approve increase in hourly rates for Workers’ Compensation legal defense services from the current rates, which have been in effect since March 2011, to updated hourly rates as set forth in the Background Information section below, and for implementation upon award of contracts to legal defense firms as a result of an upcoming Request for Proposals process.
SUMMARY:
CEO/Risk Management requests approval to increase the hourly rates for Workers’ Compensation legal defense services to ensure access to quality representation and attract qualified law firms to the panel. Approval of the increase is requested at this time, so the new rates can be included in a Request for Proposals to update/augment the existing panel. The new hourly rates will not be implemented with the existing legal defense firms.
BACKGROUND INFORMATION:
The County’s Workers’ Compensation Program manages claims through a contracted Third-Party Administrator (TPA). If a claim is litigated, the TPA recommends use of private defense counsel to represent the County’s interests, subject to County approval. The legal fees may not exceed the hourly rates set by the Board of Supervisors (Board). The current rates have been in place with no revisions since 2011 and are out of date. Prior Board action increasing Workers Compensation defense panel hourly rates took place March1, 2011 and April 9, 2002.
Hourly rates for legal fees are geographically sensitive, so rates differ throughout the state. In October 2018, CEO/Risk Management conducted a survey of the surrounding areas to determine the rates that are being paid for similar legal defense services. Local defense rates for attorneys range from $155 to $190 per hour as detailed below.
Public Entity |
ATTORNEYS |
OTHER STAFF |
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Partner/Senior |
Associates |
Hearing Reps |
County of Riverside |
$ 165 |
$ 155 |
$ 100 |
County of San Bernardino |
$ 190 |
N/A |
$ 125 |
City of Anaheim |
$ 185 |
$ 155 |
$ 115 |
City of Santa Ana |
$ 175 |
$ 155 |
N/A |
Some jurisdictions, such as San Diego County, are not comparable as they use in-house counsel, or fixed fee contracts like Los Angeles County. The requested hourly rates are competitive in the marketplace and will enable the County to continue to be represented by well-qualified law firms.
CEO/Risk Management requests Board approval of the Recommended Rates as shown below to be applied to future contracts entered into following a Request for Proposals (RFP) process to update and potentially enlarge the current Workers’ Compensation legal defense panel. The rate structure will be included in the RFP to advise interested law firms of the rates the County will be paying for its legal defense services.
Service Level |
Current Rates |
Recommended Rates |
Partner |
$150 |
$175 |
Workers’ Compensation Specialist |
$150 |
$175 |
Associate |
$140 |
$155 |
Paralegal/Hearing Representative |
$85 |
$110 |
FINANCIAL IMPACT:
The cost of Workers’ Compensation legal defense services is approximately $2,000,000 per year and is included in the FY 2019-20 Recommended Budget in Workers' Compensation Internal Service Fund 293, and will be included in the budgeting process for future years.
STAFFING IMPACT:
N/A