6.1. SR 01-16-1995
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ITEM 6.1.
MEMORANDUM
TO:
Mayor & City Council
FROM:
Pat Klaers, City Ad~!~tr
January 16, 1995 .~
DATE:
SUBJECT:
Review Municipal Utilities Legal Bill
During the review of the legal bills in December, 1994, the Council requested that one
bill be forwarded to the Utilities Commission for their consideration. At the January 9,
1995, City Council meeting, a request was made to reconsider this action and the Council
asked for additional information on this issue.
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In order to clear up any misunderstandings, it should be noted that the Utilities have not
paid for any City legal expenses for work on the employment contract for the General
Manager. However, I understand that there were questions this past summer regarding a
Larkin, Hoffman bill for services associated with the electrocution lawsuit. In this regard,
it was requested that the City Attorney be in attendance at the deposition from the
General Manager, and, subsequently, the Utilities were billed for the services related to
this activity.
Additionally, it should be noted that the City has paid approximately $2,700 for legal
services to address the employment agreement legal compliance question. This opinion
was requested by the Finance Director for the City Audit. At that time, it was assumed
that this would be almost all of the expenses that the City would have regarding this
employment contract issue and the City simply paid this bill as a general fund legal
expenditure. Unfortunately this was not the last bill for legal services related to this
issue, and when I reviewed the most recent bill for activities that took place shortly before
the 11/14/94 joint Utilities/City Council meeting, I requested that the Finance Director
log this expenditure as a self insurance fund activity. The thinking was that this expense
for legal services was a pro-active expenditure to keep the City out of a potential future
lawsuit.
Attached for your review is the most recent bill from Larkin, Hoffman regarding activity
on the General Manager's employment contract. Employment law is a very technical,
time consuming, and ever changing legal issue. I hope the above information helps the
City Council come to a consensus on this issue. If you have any questions on this topic,
please feel free to contact me.
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council: legalbil
13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425
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FOR PROFESSIONAL SERVICES:
For period ended Noverrber 30, 1994
Re: General Counsel
Legal services included conference with Pat Klaers
regarding revised Employment Agreement for Elk River
Municipal Utilities Manager; review revised Employment
Agreement for Elk River Municipal Utilities Manager;
conference with Dayle Nolan regarding Elk River
Municipal Utilities Employment Agreement issues;
preparation of letter to Elk River Municipal Utilities
regarding Employment Agreement issues; review and
revise proposed letter to Elk River Municipal
Utilities regarding Employment Agreement; conference
with Lori Johnson regarding proposed letter;
conference with Dayle Nolan regarding letter to Elk
River Municipal Utilities on Employment Agreement;
preparation of final revisions to letter; telephone
conference with Ron Black regarding letter regarding
Employment Agreement; telephone conference with Pat
Klaers regarding telephone conference with Ron Black;
preparation of memorandum to City Council regarding
letter on Employment Agreement; telephone conference
with Pat Klaers and Council Member Holmgren regarding
letter to Elk River Municipal Utilities; telephone
conference with Council Member Dietz regarding joint
meeting with Elk River Municipal Utilities; telephone
conference with Ron Black regarding issues with
Employment Agreement and preparation for November 14,
1994 City Council meeting; telephone conference with
Pat Klaers regarding meeting with Ron Black before
joint Elk River Municipal Utilities and City Council
meeting; preparation for joint meeting with City
Council and Elk River Municipal Utilities regarding
Employment Agreement; conference with Pat Klaers
regarding preparation for joint meeting with Elk River
Municipal Utilities, including water connection
Elk River Municipal Utilities
December 9, 1994
Page 2
ordinance; conference with Pat Klaers regarding
preparation for meeting with Bill Birrenkott and Ron
Black regarding Employment Agreement; attend meeting
with Bill Birrenkott and Ron Black regarding
Employment Agreement; attend November 14, 1994 joint
Elk River City Council and Elk River Municipal
Utilities meeting regarding water connection
ordinance, state and city ethics laws, open meeting
law and miscellaneous additional issues; conference
with Pat Klaers regarding status of Elk River
Municipal Utilities Employment Agreement; conference
with Pat Klaers regarding response to letter from Ron
Black; preparation of letter to Ron Black regarding
Elk River Municipal Utilities Employment Agreement;
conference with Pat Klaers regarding letter to Ron
Black; conference with Lori Johnson regarding letter
to Ron Black; preparation of revisions to letter to
Ron Black;
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AMOUNT DUE FOR PROFESSIONAL SERVICES RENDERED:
COSTS INCURRED ON BEHALF OF CLIENT:
..........$ 3,960.00
Duplicating. . . . . . . . . . . . . . . . . . . . . $
Facsimile Charges ...............
$
78.20
21. 00
99.20.......... .
TOTAL AMOUNT DUE FOR PROFESSIONAL SERVICES AND COSTS: .....$ 4.059.20
99.20
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