Laserfiche WebLink
ty of <br /> <br />ITI~ 4.2. <br /> <br />MEMORANDUM <br /> <br />iver <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Pat Klaers, City Adm~a~~ <br />March 26, 1997 <br /> <br />Attorney Fees <br /> <br />In February, 1996, the City Council changed the long standing city attorney <br />fees policy. The former policy called for the city to get a preferred client <br />discount in its legal rates from the attorneys at our city attorney law firm <br />whose hourly rate exceeded $110 per hour. This preferred rate was offered to <br />the city because it is a long standing client with a solid payment history. <br />This preferred client rate was applied to all city projects, funds, and <br />departments. Legal expenses which the city passes through to private <br />development projects were charged the city attorney's standard rates. <br /> <br />All of this changed in February, 1996, whereby a $135 maximum rate was <br />established for the city and all development clients. This rate allowed the <br />city attorney and his peers to make about 70 percent of their normal fees for <br />all Elk River business. At this rate structure, the city attorney will make out <br />better if there are lots of city activities and, conversely, will make out worse <br />financially if there is a great deal of developer work coming through the city. <br /> <br />It should be stated that this $135 rate actually affects only three of the <br />attorneys that we use at the Doherty Rumble Butler law firm. A number of <br />the attorneys who provide services to the city under the direction of Dave and <br />Peter and Dean Bussey charge the city at their going rate which is between <br />$85 and $110 per hour. <br /> <br />In 1996, there was a great deal of city work requested from Dave, Peter,' and <br />Dean and, accordingly, the law firm actually made a little bit more than what <br />they would have under the previous agreement. One fact that cannot be <br />disputed is that by going to this new rate structure the city pays more no <br />matter what, and the developers pay less no matter what. <br /> <br />Attached for your review are the minutes from the February 19, 1996, <br />meeting when this issue was discussed. Please note that the motion <br />indicates that this new fee structure was for a one year trial basis. Also <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />