4.4. ERMUSR 05-12-2009/~
Elk River -=~
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
April 30, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Troy Adams
Subject: Review and Consider Attorney Contract Rate Options
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Phone: 763.441.2020
Fax: 763.441.8099
At the April Utilities Commission Meeting, the Commission directed that the Utilities shall use
City Attorney Peter Beck for all future legal issues. Attached for information reasons is a
spreadsheet of recent Utilities legal expenses. Also attached for review and consideration is a
quotation from City Attorney Peter Beck listing contract rate options.
Firm Legal Fees
Description
2006
2007
2008
2009
Black, Moore, .......... Professional services 2,552.52 4,941.50 2,209.05 1,650.00
Black, Moore, .......... Draft/Revise Guarnty 39.00
Black, Moore, .......... letter to customer (Holiday Inn) 226.56
Black, Moore, .......... Criticom International -Franchise 432.25
Black, Moore, .......... review aggreements transmission 843.75
Black, Moore, .......... Met council Lease 68.75
Black, Moore, .......... Rockwoods Grill Insurance claim 137.50
Black, Moore, .......... Jiffy Lube 206.84
Black, Moore, .......... review red flag policy 343.75
Black, Moore, .......... letter agreement 481.25
Black, Moore, .......... Water Tower 1,679.69 481.25
Black, Moore, .......... Criticom International -Franchise 68.75
Black, Moore, .......... Total 2,552.52 6,483.06 5,126.83 2,200.00
Gray, Plant, Mooty Water Well 405.00
Gray, Plant, Mooty MMTG 3,915.00
Gray, Plant, Mooty Commission direction 5,047.12
Gray, Plant, Mooty Commission direction 10,092.89
Gray, Plant, Mooty Commission direction 39,368.69
Gray, Plant, Mooty Professional services 3,189.13
Gray, Plant, Mooty Commission direction 8,157.25
Gray, Plant, Mooty Total - 4,320.00 54,508.70 11,346.38
John Oliver & Associates legal easements & descriptions 2,965.00
MMUA Dues assessment for territory agreements 2,563.95 2,563.95 2,563.95
GRAND TOTALS 8,081.47 13,367.01 62,199.48 13,546.38
MEMORANDUM
TO: Board of Commissioners
Elk River Municipal Utilities
FROM: Peter K. Beck
RE: Legal Services
DATE: May 5, 2009
This memorandum is to confirm that Gray, Plant, Mooty, Mooty & Bennett has
undertaken to provide general legal services to Elk River Municipal Utilities, effective with the
Board's direction on April 14, 2009. We appreciate the opportunity to continue our service to
the City of Elk River by undertaking this representation of the Municipal Utility.
As the Commissioners may know, our fee arrangement with the City of Elk River
includes a monthly retainer for general legal services, with matters outside of the retainer billed
at the rate of $175 per hour. It is clear to me that the Utilities will generate less demand for
general legal services than the City, but it is difficult at this time to estimate what that demand
will be so that a reasonable and fair retainer amount can be arrived at.
I suggest two alternatives for the Commission to consider:
1. We could proceed through the end of the year on an hourly basis only, at the City rate of
$175 per hour. We should have enough experience by the end of the year to arrive at a
fair amount for a monthly retainer, and the Commission could decide at that time whether
to continue on an hourly basis or go with a retainer.
2. Alternatively, we could implement a $1,000 per month retainer, beginning May 1, 2009,
with the understanding that we will revisit the amount of the monthly retainer at the end
of the year to see if an adjustment is appropriate. $1,000 per month is roughly what the
Utilities has paid over the last three years for legal services, and is less than one-third the
amount of the City's retainer.
Whichever approach the Commission selects, we will do our best to represent the Utility
as efficiently and effectively as possible, providing top quality legal services at a fair price.
However, the Commission should know that I expect the Utilities need for legal services going
forward will be greater than it has been in the past, partially because we will have a more
comprehensive approach to providing legal services to the Utility than in the past; and partially
because there are a number of significant issues coming up, including the need to update the
water ordinance and regulations to address foreclosures, mandatory hook-ups, etc., and the Big
Stone II project. The Commission should, therefore, anticipate that its budget for legal services
will go up. However, we will do our best to ensure that only the legal services needed are
provided and that they are provided as efficiently as possible.
I will attend the Commission's meeting on May 12 to answer any questions or discuss
further these two options, or other alternatives the Commissioners might have in mind.
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