5.3 ERMUSR 04-11-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams,P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
April 11, 2017 5.3
SUBJECT:
Legal Counsel Retainer Increase
ACTION REQUESTED:
Approve a Legal Counsel Retainer for Beck Law Office of$1,500 per month.
BACKGROUND:
In May 2009 the Utilities Commission approved a legal counsel retainer of$1000 per month for
Peter Beck with Gray Plant Mooty. ERMU continues to contract legal services with Peter Beck
with a$1000 per month retainer through Beck Law Office.
DISCUSSION:
According to the Bureau of Labor Statistics,the $1,000 retainer in 2009 is equivalent to a
$1,135.48 retainer in 2017.And justifiably,the retainer for legal counsel service should be
adjusted.
The original quote for legal counsel services in 2009 was higher and the Commission negotiated
a lower rate to be reevaluated after establishing history of legal labor hours. The retainer rate had
been revisited approximately a year later and it was agreed that the $1,000 per month retainer
remain in effect.
The billable hours of legal service ERMU receives from Peter Beck under this retainer has
always been greater than the amount billed. Peak hours are approximately five times that of the
billed retainer, but consistently the hours are greater that two time the monthly retainer rate.
Due to inflation since 2009 and due to the normal usage, staff recommends increasing the
monthly retainer for legal services from $1,000 per month to $1,500 per month.
FINANCIAL IMPACT:
This increase of$500 per month for April through December would result in a$4,500 increase in
legal expenses for 2017.
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