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5.4. SR 06-14-1999 rei ---'\) ( ); ~li( . . Item #5.4. MEMORANDUM Mayor & City Council . TO: River FROM: Pat KIaers, City Administ~ June 14, 1999 DATE: SUBJECT: Discuss City Attorney Status As everyone knows, the city attorney law firm, Doherty Rumble & Butler is closing at the end of the month. The attached June 3, 1999, St. Paul Pioneer Press article provides some additional information on the closing. The city uses at least four different approaches for obtaining legal services. First, the city uses the county attorney's office for most of its police department work, and in exchange for this service, the county receives 50 percent of the fine revenues. Peter Beck and the Doherty firm serves as the city's general counsel, most of which is under retainer, plus Peter is the lead attorney for the city's environmental and development work. The total annual bill from this firm varies greatly depending on the amount of development work. The city's legal bond consultant is Briggs and Morgan and Jim O'Meara from this firm is used as needed. Larkin, Hoffman serves as our personnel legal consultant and provides advice as needed, which was extensive in the 1996-97 timeframe. Additionally, the League of Cities has attorneys who work for municipalities based on various insurance claims, and finally, the city has used Cliff Lundberg in the past to complete and finalize land transactions. One additional legal note is that the county attorneys office, police department, and the building and zoning department, have been discussing the possibility of using a local attorney to deal with some code enforcement and civil issues that are low on the county's priority list and which may be best handled at the local level versus having Peter and his firm take care of these situations. The following total fees chart is offered for your information. Firm Larkin Hoffman Bri s Mor an Dohert Rumble & Butler Count 1998 $5,614 $750 $84,978 $115,753 1997 $32,700 $11,342 $98,783 $84,221 It is recommended that no change in Peter's status as our city attorney takes place and, assuming that there is no change in the cost of his legal services and the quality of the services received, I see no need to change any of our legal services framework. Peter Beck has served the city well in the past as general counsel and in providing expertise in the environmental and development areas. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 . JUNE 3, 1999 7 SECTIONS, 60 PAGES @ 1999 Saint Paul Pioneer Press (Northwest Publications Inc.) Doh law firm will close. its doors St. Paul-based practice is the oldest in Minnesota SCOTT CARLSON STAFF WRITER Doherty Rumble & Butler, the St. Paul-based law firm that is the state's oldest, will announce today that it plans to close shop June 30. The closing will mark the demise of a once-flourishing practice, a reflection of changing times in the Twin Cities' fiercely competitive legal market. Doherty Rumble & Butler's decision to take down its shingle in the Twin Cities and its Denver and Washington, D.C., offices will mean layoffs for 231 . employees, including 90 attorneys. The law firm has employed 195 workers at its Twin Cities offices. The firm's president, Sue Ann Nelson, blamed the demise of her 140-year-old law firm on the defections of several key partners earlier this year. Doherty Rumble "is as prepared today as it was in the past to serve the needs of its clients," Nelson said in a press statement. "However, the unfortu- nate reality of today's marketplace is that attorneys are becoming more and FIRM CONTINUED ON 3A ~ VOICES "It is my hope that the legal community can help us mourn the passing of an era and celebrate the rich and fabulous past of a great and proud instItu- tion." SUE ANN NELSON PRESIDENT. DOHERTY. RUMBLE & BUTLER THURSDAY, JUNE 3,1999 -':FIRM . ~ CONTINUED FROM lA more mobile, and 'firin loyalty' is 'becoming a scarce j commodity in the profession." ,J In an interview late Wednesday, Nelson said her law firm suffered a blow when one of its top-produc- 'ing attorneys, Ralph Morris, jumped ship last December to join Minneapolis-based Dorsey & Whit- ney. Morris, former Doherty chief executive and head of its agricul:- tural and eooperativelaw practice 'group, took a similar post at Dor- ! sey, the state's largestlaw firm. i :' In February, 10' more of ,the I' i firm's attorneys left' to join the i Minneapolis-based Lindquist '. & Vennum law firm. Mark Hanson, part of that group, now heads the i Lindquist firm's new, agricultural .and cooperative law department. '<Nelson said her,. law firm.will continue 'to serve ,.' its .,cIJents . :through the' end. of June':~Dd'is : taking steps "to provide a smooth ! transition' of serviceS." That could . mean clients '.'foll<iwi!ig. Doherty. Rumble' attorneys to new law firms orfinding new ~~torneysandi' : law firms, she said:1~ .:,~ ,(~\,~ i,t' : Before its ,43. partners. decided Wednesday. ,morniDgto ,close the law firm, ,Doherty? !lUIIlble . had ,been exploring a~~ger \Vi~ Oth'i: er law, finDS, inclllding ,F,1ed1'ikson',~ & .' ByrOn" ~dJ'OpIjeDbei#ie~j~\yolff;, & Donnelly.,Bllt::.~e1s01l: Sll!d .,a ,', merger didn'~!,p~ io~tJ~use th~re.. w38,;nqt .... g~".fth\V!thh'j~t!" law . firms' interested., in. sue an . .mal1Ce~;':::,'l~"".' {f',:~~~::',:;~",'~~',"\:~ij:~:;}~i~~::~';~:~i~o'r:''~.~'Zl~';'l;:"(';~;~ i t~... At ,... its" peak,." i><)~'eriy;,RWJ1~le;\ had, about120 j ~ttorneys. ,jA:J,r~j.. /ceDUy as .four, years' ago, th~Jaw,>~ lirm was still growing. In 1998,. 1he .., CityB1JSiness,.",;~k (:,()f~l!"~tsfK .'tankedDoherty"as 'the')tate's " 'Dinth-latgest'fimiiJby~um~~lof.' attomeYS;n;:~::r;>' '(,_::.:'-~~'{~. .:~,:~'!:F2.:::>i-.1:~~1$:;t~...,( ,};\i;J.~.f: ,'1 In the last coupleofyears,tDoh~': :erty Rumble foundW increasingly: .difficult as a mid-sized;law:firm' ~ keep ~cewith the biggest .,of': . Minnesota's largest'lawtirms. ,.':;'" ;," The shutdown of the state'sold-'; '.law firm has historical~gnifi.;. "CaDce OD several, fronts:(1ljl'::',;1 ;.4':? > The firm began;in St'PauliD> 1859, one. year after ; Minnesota' ,gained statehood. : Its attorneys helped shape theb1lSiq~r~lationsi of the old Northwest; ,which had :~ransportation, grain . mar~eting ~d financec~ncerm,; ,in the Twin Cities'; .i;'; ....",,;'+p,;;:,r::,;:.;.J.i+i;.q. :-,;;; Ari~tb~r": Doherty. Rumble'dis-', .tinction: " The firm represented. the! Great! Northern '.'i. Railway,; and' hel~ bring Ford Motor.Co.' to St: . . I SAINT PAUL PIONEER PI.tESS Paul. The firm's partners included Pierce Butler Sr., a former U.S. Supreme .Court justice, and Charles Flandrau, a Minnesota Su- preme Court justice and St. Paul's first Winter Carnival king in 1885. Doherty Rumble & Butler law- yers also pioneered the special business practice of cooperative law for the nation under the guid- ance of Wilfred Rumble in the 1920s. During that period and into the 1930s, Congress and the Roose- velt administration created sever- al cooperative law statutes to' help ';"f"J~;:3~, .'~",,- ,~."~;/~:,<~:_:",,;::\,,,.::.,:~,;_<-,pt;.' farmers and ,rural' people,JoP;lD; businesses.. and4eveloPrura~~ri vices~ The'acts created.bUsinesses,; and businesS Pl'acticel;' that . were ' not provided for or authorized. un.;' der the basic U.S. business code. ..' Partly because ,o~ the, la~jfuwls: . influence and servlces"Mii:u1~tai'; has the ~rgestllum~rofc(),O~~-+, . ative busm~ of~Il~..s~~.,.~Zi;C:i~ : Scott Carlson, whocove':5 regUlation ! and legal affairs, can.ber~act)ed" at.. i scarlsOn @ploneerpre.s.colII;'or. (651) 228-5:4 70. .Staff~rfter Lee. Egerst(Om . contrlbut.ed to this story., i" . "i,".> ......-;:'.. - :'../(;'~!)i~~ , _i . " DOHERTY RUMBlE . & BUTlER PROFI\SSIOJII M. AS!lO("f ATION ):;I~) Htlh ~tn'Ct Illwcn; I 'ill s;"ulh Eil~ S~I Mlnl",.II'''Io~. ~1inm'S<ll~ ~:~,'2.41.-':; 1..I"rht"n~ Ihl:!) ,,;':".nXI r"\~ ((.Ill j;;;-.,IIiI"O w\\'\\'.drl'l.ll\',\','ln Allorneyt It Law W(ll"t'~ ,i;((,'l di.,llIlI",~rr: (612) 677-4588 Beckp@drblaw.com June 10. 1999 Mayor Stephanie Klinzing and Members of the City Council City of Elk River 13065 Orono Parkway Elk River. MN 55330 Re: Doherty, Rumble" Butler Dear Mayor Klinzing and Council Members: . As you know. Doherty, Rumble &. Buder has determined it must cease operations. effective June 30, 1999. This will require that I move my practice to a new firm by that date. I have been meeting with a number oflaw finns over the past several weeks and have several options. However, I would like some input from the City Council before I make a decision. It has been my privilege to serve Elk River, in one capacity or another. since shortly after I entered the practice oflaw in 1978. I have been the City Attorney since 1992. Over the years. I helped write the first Code of Ordinances for the consolidated City, including the Zoning Ordinance; wrote the Solid Waste Facilities Ordinance and assisted the Council through the process of issuing conditional use pennits and licenses to the City's solid waste facilities; wrote the enabling resolution for the EDA and the original tax increment financing plans; guided the City through the legal issues raised in such projects as the Western Area and East Elk River Public Improvement Projects. the Elk Park Center and Elk River Crossing Projects, the gravel mining environmental impact statement, and many others. As City Attorney I attend Council and Planning Commission meetings on an as needed basis. handle most of the day to day legal matters of the City such ordinance interpretation questions, licensing questions. contract matters. etc.. and handle all land use, development and environmental matters. Representing the City orElk River is the most rewarding and enjoyable part army law practice. I enjoy the work and the close working relationships I have developed with the staff, the Planning Commission and the City Council. I very much want to continue this relationship for a long time. . Since becoming aware of the inevitability of Doherty, Rumble &. Butler's closure, Dave Sellergren and 1 have been meeting with other law firms seeking the best place to move our practice. It is our desire to move our practice to a large. full service law firm with the strength and breadth to serve all of our clients, including the City of Elk River. We have advised the firms we are meeting with of our f_ arrans.",e"t 'W'jth F-lk River and nur desire tn continue cn.ar _0...1., 1'0... nil.: R.iver pu...suan.t to that fee arrangement. DOHERTY ~UMBLE & BUTLER 1'I(llrl:~"II)N ,\1. .~S~( 1('1/\ no" Mayor Stephanie Klinzing and Members of the City Council June 10, 1999 Page 2 Before making a decision I would like some feedback from the City Council as to whether the Council would be comfortable moving the City's legal affairs with Dave and I to a similar law firm pursuant to the existing fee arrangement. The City's intentions will have an impact on our decision and I would appreciate some frank discussion as to the Council's intentions. I regret the circumstances that make this discussion necessary, but look forward to receiving some feedback from the Council on the legal services which 1 have been providing the City over the years. Enclosed, for those who may not have had an opportunity to see it previously, is a copy of my current resume. Hany of you would like to talk to me privately before the Council meeting, please feel free to calt me at home over the weekend at 612.929-8877. I will be at City Hall most of the day on Monday. ~\V- . Peter K. Beck PKB/eka Enclosure cc: Pat Klaers . BeckP $92495.1 . PETER K. BECK 4746 Sheridan A venue South Minneapolis, Minnesota 55410 Home: (612) 929-8877 Office: (612) 340-5588 PROFESSIONAL EXPERIENCE DO~~:rY. RV~t,.E & Bwr~R. P.A. Land Use, Environmental and Municipal Attorney September 1995 to Present LARKIN. HOFFMAN. DALY &. UNDREDN. LTD. Land Use, Envirorunental and Municipal Attorney June 1978 to September 1995 Chair, Land Use, Municipal and Environmental Law Deparnnent Chair, Strategic Planning Committee SUPREME COURT OF THE UNITED STATES Staff Lawyer, Office of the Clerk January 1976 to June 1978 Research Ubrarian. Supreme Court Library September 1974 to January 1976 . OPPENHEIMER. WOLFF. FOSTER. $HEPARD &. DONNELLY Summer Law Clerk . JuneaAugust 1974 EDUCATION J.D., with Honors; May 1977 - George Washington University; Washington, D.C. B.A., with Highest Honors; May 1973 -- Hamline Universj,ty; St. Paul. Minnesora ' BAR ADMISSIONS Commonwealth of Virginia: June 1977 State of Minnesota: October 1977 District of Columbia: November 1977 PROFESSIONAL AND COMMUNITY ORGANIZATIONS AND ACTIVITIES InStnlClOr, Land Use Law, Hamline University Faculty, League of Cities Government Training Institute ~nars for City officials Speaker, various seminars on land use, environmental and municipal issues Author, miscellaneous articles for real estate related publicalions on land use and environmental law Member of Environmental Law Institute; Sensible Land Use Coalition; Builders Association of Minnesota; National Association of Industrial and Office Puts; Minnesota State Bar Association, ImvironnleDtal and Natural Resources Law Section. Loc..t Government 1.,,\\101 Section; Hennepin . County Bar Association, Environmental Law Committee. Local Government Law Committee, and National Trust for Historic Preservation Commissioner, Mirmeapolis Heritage Preservation Commission EXPERTISE AND EXPERIENCE Practice solely in the areas of Municipal, Land Use and Environmental law . Expertise includes all areas of municipal law and all types of proceedings, permits and approvals affecting the ownership, use and development of land. Public Sector experience includes general representation of cities and other govenunental units; special counsel on environmental. municipal liability , tax increment financing, condemnation and other issues to a number of cities; and special litigation counsel to the Metropolitan Council. Private Sector experience includes general land use and enviromnental representation including analysis and application of local, state and federal land use and environmental laws and regulations; obtaining local, regional, state and federal land use and environmental approvals; and litigating land use, environmental and real estate issues. REPRESENTATIVE MUNICIPAL CLIENTS AND EXPERIENCE . Elk River. Minnesota: City Attorney City of St. Paul: Special counsel on environmental review of transportation projects. Mirmeapolis Park and Recreation Board: Assistant General Counsel. REPRESENTATIVE ENVIRONMENTAL CLIENTS AND PROJECTS Metropolitan Council: special litigation counsel on I-35E Environmental Impact Statement litigation. Tranunell Crow Company: preparation of Environmental Impact Statement for proposed 1.5 million square foot downtown Minneapolis office development. Trammell Crow Company: preparation of Environmental Assessment Worksheet and Development Action Response Plan for asbestos removal and soils clean up on Montgomery Wards site in the City of St. Paul. Minnesota Timberwolves: preparation of Environmental Assessment Worksheet for NBA Basketball Arena. . Soo Line Railroad: preparation of application and supponing documentation for categorical exclusion of proposed inter-modal raikoad facility from envirorunental review. . . . TO: CITY COUNCIL FROM: STEPHANIE KLINZING, MAYOR RE: CITY ATTORNEY Due to the changing status of the attorney fIrm currently retained by the City of Elk River for general counsel, I am interested in the city council taking this opportunity to open a request for proposal process for legal services. I believe that entering into an RFP process would benefIt our constituency by insuring the highest level of service, most effIcient use of city tax dollars, and greatest public accessibility. I do not have any complaint about the work of Peter Beck, who currently serves the city council as general counsel. During my months on the city council, Peter has proven to be both competent and accessible besides being a very pleasant person with which to work. I would expect Peter to be a leading candidate through the RFP process if he chooses to submit a pro- posal. The major criteria, as I see it, for choosing legal counsel through the RFP process would be experience, cost, availability, and accessibility (not in order of priority). I believe that the city council, with staff assistance, would be able to set up the process and then review the proposals. I don't see any need, at this point, for outside consultant help. The expertise and knowledge of the city's needs is suffIciently available through members of the city council and current city staff. If there is a need for consultant assistance identifIed further into the process, the council could take action at that time. I don't, however, see this happening. The city council spends a great deal of tax money each year on legal counsel. It is our responsibility to insure that those dollars are being used as effIciently as possible. I also feel that local attorneys and attorney fIrms, especially those practicing in the Elk River, should be given an opportunity to show the city council how they could effectively meet the city's legal needs. We have a number of highly qualifIed legal professionals in and around Elk River who could do more than an adequate job as our legal counsel. I also believe that any perceived "problems" associated with using a local firm can be addressed through the initial retainment agreement or as the case requires. The RFP process, as I see it, would be for general counsel (civil) services only with payment being made on a retainer based on billable hours (with a yearly review). Then I see the general counselor (the city attorney) making recommendations to the city council on who would handle development legal work and litigation cases as they arise. Either expanding the city attorney's fee to handle this or hiring an outside fIrm. Also I have heard that the county attorney may be requesting the city to take over pros- ecution of misdemeanors. We need to look into this as soon as possible so that a city prosecutor could also be included in the RFP process. . . . TO: CITY COUNCIL FROM: STEPHANIE KLINZING, MAYOR RE: CITY ATTORNEY Due to the changing status of the attorney firm currently retained by the City of Elk River for general counsel, I am interested in the city council taking this opportunity to open a request for proposal process for legal services. I believe that entering into an RFP process would benefit our constituency by insuring the highest level of service, most efficient use of city tax dollars, and greatest public accessibility. I do not have any complaint about the work of Peter Beck, who currently serves the city council as general counsel. During my months on the city council, Peter has proven to be both competent and accessible besides being a very pleasant person with which to work. I would expect Peter to be a leading candidate through the RFP process if he chooses to submit a pro- posal. The major criteria, as I see it, for choosing legal counsel through the RFP process would be experience, cost, availability, and accessibility (not in order of priority). I believe that the city council, with staff assistance, would be able to set up the process and then review the proposals. I don't see any need, at this point, for outside consultant help. The expertise and knowledge of the city's needs is sufficiently available through members ofthe city council and current city staff. If there is a need for consultant assistance identified further into the process, the council could take action at that time. I don't, however, see this happening. The city council spends a great deal of tax money each year on legal counsel. It is our responsibility to insure that those dollars are being used as efficiently as possible. I also feel that local attorneys and attorney firms, especially those practicing in the Elk River, should be given an opportunity to show the city council how they could effectively meet the city's legal needs. We have a number of highly qualified legal professionals in and around Elk River who could do more than an adequate job as our legal counsel. I also believe that any perceived "problems" associated with using a local firm can be addressed through the initial retainment agreement or as the case requires. The RFP process, as I see it, would be for general counsel (civil) services only with payment being made on a retainer based on billable hours (with a yearly review). Then I see the general counselor (the city attorney) making recommendations to the city council on who would handle development legal work and litigation cases as they arise. Either expanding the city attorney's fee to handle this or hiring an outside firm. Also I have heard that the county attorney may be requesting the city to take over pros- ecution of misdemeanors. We need to look into this as soon as possible so that a city prosecutor could also be included in the RFP process.