HomeMy WebLinkAbout001123 Original Contract City of Port Angeles
Record # 001123
Direct Phone (206)447-4707
Direct Facsimile (206)749-2026
September 12, 2016 kurt.peterson@foster.com
Via E-Mail
Mr. William E. Bloor
City Attorney, City of Port Angeles
321 E. Fifth St.
P. O. Box 1150
Port Angeles, WA 98362-0217
Re: Engagement of Foster Pepper PLLC
Dear Mr. Bloor:
Thank you for the opportunity to represent the City of Port Angeles regarding cleanup at
the Western Port Angeles Harbor cleanup site. We are pleased to have the City as our client. As
we discussed, we will represent you in matters specifically related to insurance recovery for site
cleanup work, and an allocation process for MTCA related costs at the Western Port Angeles
Harbor cleanup site. Cascadia Law Group, my previous firm, will handle general oversight and
legal support for continued issues associated with the Agreed Order, Remedial
Investigation/Feasibility Study, and with future anticipated work related to a MTCA Consent
Decree as well as natural resource damages. We are happy to assist the City on these matters if
additional assistance is desired.
For my work at Foster Pepper, I will initially maintain all my previous billing rates. This
means I will charge my time at $270.00 per hour, with insurance reimbursement covering
$225.00 per hour. The City will be responsible for the difference between my rate and the
insurance reimbursement rate. My associate, Andy King, will continue to bill at $200.00 per
hour, with insurance reimbursement covering $200.00 per hour. For the scope of work period
ending in 2017, the cost of my work will not exceed $614,419.75.
We will send our bills directly to you at the above address. Concurrent to sending the
bills to the City, Foster Pepper will also send invoices for reimbursement to insurance carriers for
recoverable legal and technical costs. Once Foster Pepper receives insurance carrier payments, it
will reimburse the City. For any vendor and third-party consultant Foster Pepper engages,
payments will follow a similar path—the City will pay and Foster Pepper will obtain
reimbursement for the City from the insurance carriers. The insurance carriers have agreed to
reimbursement for defense costs pursuant to the following cost sharing agreement:
INA 65.55%
Chubb 8.03%
Northwest Mutual 26.42%
As noted above, Foster Pepper will administer the insurance recovery for the site
pursuant to agreements among the insurers.
51538799.4
Mr. William E. Bloor
City Attorney, City of Port Angeles
August 2, 2016
Page 2
As we have discussed, Foster Pepper will coordinate closely with Cascadia Law Group
for the efficient and streamlined co-representation of the City. I have attached an updated scope
of work that more specifically outlines these matters and attendant tasks. As the scope of work
indicates, matters (2) Insurance and (4) WPAH Allocation are under my purview, and matter (1)
Western Port Angeles Harbor Cleanup and (3) Natural Resource Damages are under Rod
Brown's direction. Please see the updated scope of work enclosed with this letter.
I am confident that Cascadia and Foster Pepper can work together to provide excellent
service to the City on these separate matters. Rod Brown, who heads Cascadia's representation
of the City, and I have built a true rapport over the last twenty years, and we continue to have a
positive and capable working dynamic. To ensure continued success and open communication,
we plan to have bi-weekly, no-charge coordination and update calls and to meet in person once a
quarter to discuss cleanup issues and overlapping concerns among these separate matters. Our
document management system, Everlaw, already makes sharing information simple. It is cloud-
based, system-agnostic, and can be jointly administered by the two firms. Given our ability to
maintain separation among these matters in the previous several years, I am confident we can
efficiently represent the City with essentially the same set-up moving forward.
This engagement is subject to Foster Pepper's standard Terms for Engagement of
Services, a copy of which is enclosed for your reference. We ask that you fax or email a copy of
your signature indicating you have engaged Foster Pepper PLLC for legal services in this matter
and that you accept our terms.
Again, thank you for the opportunity to be of service.
Sincerely,
ff
Kurt B. Peterson
Enclosures— Terms for Engagement of Services
Scope of Work
51538799.4
Mr. William E. Bloor
City Attorney, City of Port Angeles
August 2, 2016
Page 3
APPROVED AND AGREED TO
BY: �. c
SIGNATURE:
TITLE:
DATE: Z
51538799.4
Scope of Work(2016-2017)
Cascadia Law Group/Foster Pepper PLLC
City of Port Angeles Legal Services Agreement
1. City of Port Angeles (1): Western Port Angeles Harbor Cleanup Matter.
Anticipated Work by Cascadia Law Group(2016-2017)
■ Provide legal services and assistance on investigation and cleanup
requirements under the Model Toxics Control Act (MTCA), including the
performance and compliance with the MTCA Agreed Order for a Remedial
Investigation (RI) (characterizing the nature and extent of the contamination)
and a Feasibility Study(FS)(evaluating options for cleanup).
■ Defend City against MTCA claims by Ecology and other liable parties.Assist
City with the Washington State Department of Ecology(Ecology) and other
liable parties'negotiations associated with the completion of the RI/FS at
Western Port Angeles Harbor(WPAH) and Rayonier MTCA Sites.
■ Provide counsel on technical and legal implications of the MTCA
requirements, with technical consultant support.
■ Provide strategic advice on liability defense, environmental compliance, and
risk management for alleged City liabilities.
■ Provide legal support through completion of the RI under the Agreed Order,
including support of technical teams, the City, and Ecology on regulatory
compliance and characterization of the Site consistent with MTCA
requirements. Negotiate the approval of the RI Report with Ecology.
■ Provide legal services in support of the City's participation in FS completion
and associated selection of MTCA remedial alternatives. Evaluate selection
of recommended cleanup alternatives under MTCA. Negotiate drafting and
revisions to FS Report with Ecology and other liable parties.
• Assist City with regulatory compliance under the Agreed Order.
■ Assist City with future anticipated work on MTCA Consent Decree
negotiations for the performance of the remedial action under MTCA and the
Cleanup Action Plan (CAP).
■ Evaluate and negotiate sediment recovery zone approach under new MTCA
Sediment Management Standards (SMS) with Ecology.
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2. City of Port Angeles (2): Insurance Matter.
Anticipated Work by Foster Pepper PLLC(2016-2017)
■ Continued pursuit of timely reimbursement from insurance carriers of City's
costs incurred as part of WPAH Site liabilities.
■ Search for additional insurance coverage records and evidence.
■ Update primary level general liability and excess liability insurance carriers
and respond to information requests.
■ Track and monitor reimbursements and invoices.
3. City of Port Angeles (3): Natural Resource Damages Matter.
Anticipated Work by Cascadia Law Group (2016-2017)
■ Assist City with preparations for and negotiations with Natural Resource
Damage (NRD)Trustee Council regarding alleged liability, restoration
projects, and potential settlement options.
• Coordinate with City on potential NRD restoration projects.
■ Research and evaluate NRD Trustees'Assessment and DSAY demands.
■ Research and evaluate City's alleged NRD liabilities, potential defenses, and
allocation of potential shares.
4. City of Port Angeles (4): WPAH Allocation Matter.
Anticipated Work by Foster Pepper PLLC (2016-2017)
■ Research and prepare defense of MTCA allocation claims.
■ Assist City with cost recovery against other potentially liable parties for costs
incurred at the WPAH Site under MTCA.
■ Identify and pursue additional liable parties to participate in the allocation
and payment of cleanup costs.
■ Design a WPAH Allocation Process Agreement evaluating options for
allocation methods.
■ Lead the formation and convening of allocation process for past and future
costs.
■ Prepare for and respond to discovery in anticipated allocation process,
including review of historic documents and site history information.
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