5.5 ERMUSR 02-12-2013 14*' ...S.)
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 5.5
SUBJECT:
Legal Services
BACKGROUND:
Elk River Municipal Utilities has used a number of different attorneys in the past including the
City Attorney, Peter Beck, with Gray Plant Mooty. At the April 2009 Utilities Commission
meeting, the Commission approved using the City Attorney for future legal issues. A monthly
retainer of$1,000 was established for general legal counsel.
At the January 2013 Commission meeting, Peter Beck announced his retirement from Gray Plant
Mooty and the opening of his private practice, Beck Law Office. Similar to the arrangement
with Gray Plant Mooty, Peter has arranged for Cambell Knutson to provide support and depth of
service for work outside of the general retainer. Cambell Knutson has experience representing
municipal utilities including North St. Paul and Mora.
DISCUSSION:
The arrangement made in 2009 with Peter Beck was verbal. With the establishment of his
private practice, Peter Beck has provided an Agreement for Legal Services for the Commission
to consider. This agreement works under the same rates established in 2009. Note that at any
time the client has the right to terminate the agreement without cause.
ACTION REQUESTED:
Staff recommends approving and executing the attached Agreement for Legal Service between
Elk River Municipal Utilities and Peter K. Beck Attorney at Law PLLC.
ATTACHMENTS:
• Agreement for Legal Services
IP0IEBto Bt
Rj:L. Page 1 of t NATURE
Reliable Public
Power Provider P O W f R E D T o SERVE
Agreement for Legal Services
between Elk River Municipal Utilities and
Peter K. Beck Attorney at Law PLLC
THIS AGREEMENT, effective January 1, 2013, by and between the ELK RIVER
MUNICIPAL UTILITIES ("ERMU") and PETER K. BECK ATTORNEY AT LAW PLLC,
a Minnesota Professional Limited Liability Company ("Attorney").
WHEREAS, Peter Beck has served as attorney for ERMU for five years, during which
time legal services have been provided to ERMU through a retainer arrangement with larger
projects billed on an hourly basis; and
WHEREAS, ERMU and Attorney desire to enter into an agreement which carries
forward the prior retainer/hourly project arrangement, including past practices with respect to the
arrangement.
NOW, THEREFORE, in consideration of the mutual undertakings herein, the parties
hereto agree as follows:
1. ACCEPTANCE OF PROPOSAL.
A. The Attorney shall furnish and perform general civil municipal legal
services for ERMU and shall be responsible for coordinating the delivery of legal services to
ERMU by Attorney and other law firms engaged by ERMU to provide specialized expertise
including Gray Plant Mooty, Campbell Knutson PA and other firms or lawyers approved by
ERMU.
B. The Attorney shall be engaged as an independent contractor and not as an
ERMU employee. The Attorney is free to contract with other entities.
2. TERM. The Attorney shall serve at the pleasure of ERMU and may be
terminated without cause by ERMU at any time. The Attorney may terminate the Agreement at
any time, provided that the Attorney shall give ERMU thirty (30) days' written notice before the
termination becomes effective.
3. FEES AND PAYMENT.
A. Retainer. Attorney will provide ERMU with general day-to-day legal
services for a retainer fee of $1,000 per month. Services included in the retainer include
responding to questions and providing advice to ERMU officials and staff, and meeting with
ERMU officials and staff as necessary, to meet the day-to-day legal needs of ERMU.
Attendance at ERMU board meetings is included in the retainer, except for attendance at special
meetings in connection with an Hourly Project as described below.
B. Hourly Projects. In addition to routine legal services provided under the
retainer, Attorney shall open separate files for matters which go beyond the scope of the retainer.
These files will be billed on an hourly basis at the rate of $155 per hour. Examples of hourly
projects include oversight of significant litigation matters, participation in the preparation or
review of significant ordinances or policies, and similar out of the ordinary projects or matters.
Files for Hourly Projects will only be opened with the approval of ERMU Board or General
Manager.
C. Billing. The Attorney will bill ERMU monthly. ERMU will normally
pay for services within thirty-five (35) days of receipt of a statement for services rendered.
D. Minimum Billing Increment. The minimum billing increment for all
services is two-tenths (2/10ths) of an hour.
E. Costs. Out-of-pocket costs without mark-up. Costs include:
• Recording fees
• Postage of 500 or more
• Photocopies at 200 per copy
• Litigation expenses (court filing fees, expert witnesses, acquisitions,
subpoenas, service of process, etc.)
• Mileage
4. INSURANCE. The Attorney will purchase and maintain sufficient insurance to
protect Attorney against claims for legal malpractice.
5. MISCELLANEOUS.
A. Governing Law. This Agreement shall be governed by the laws of the
State of Minnesota.
B. Assignment. The Attorney may not assign this Agreement without the
consent of the ERMU Board.
C. Effective Date. This Agreement shall be effective as of January 1, 2013.
This Agreement shall not be modified or amended without the approval in writing of both
parties.
Dated: , 2013 Dated: , 2013
ELK RIVER MUNICIPAL UTILITIES PETER K. BECK ATTORNEY AT LAW
PLLC
By: By:
John J. Dietz, Chair Peter K. Beck
AND
Troy Adams, General Manager
659861 DOCX
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