2.2 ERMUSR 05-09-2017 - Laserfiche WebLink

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Moved by Commissioner Thompson and seconded by Commissioner Stewart to receive the February 2017 Financial Report. Motion carried 4-0. 5.2 Waco #2 Electric Substation Materials Bid Award Mr. Adams presented the bid tabulation and noted that we received two bids of which only one was complete. There was also a third bid that was received late, so it was returned to the bidder. When comparing the two bids, the one that was complete was consistent with early budgetary estimates. Staff recommended awarding the bid for the Waco #2 electric substation materials to Border States Electric for the amount $151,283.65. As there was only one responsible bid,there was discussion on the option of rejecting the bids and going through the formal bid process again. After discussion Commission consensus was to award the bid to the lowest responsible bidder. Moved by Commissioner Nadeau and seconded by Commissioner Stewart to award the bid for the Waco #2 electric substation materials to Border States Electric for the amount of$151,283.65. Motion carried 4-0. 5.3 Legal Counsel Retainer Increase In May 2009 the Utilities Commission approved a legal counsel retainer of$1,000 per month for Attorney Beck with Gray Plant Mooty. ERMU continues to contract legal services with Attorney Beck with a$1,000 per month retainer through Beck Law Office. Mr. Adams shared that the billable hours of legal service ERMU receives from Attorney Beck under this retainer has always been greater than the amount billed. Based on inflation since 2009, and ERMU's amount of usage, staff recommended increasing the monthly retainer for legal services from$1,000 per month to $1,500 per month. Attorney Beck shared that as part of his billing process, he tracks his actual hours worked and prepares a statement that reflects the value of that time at the $155 per hour municipal rate; this consistently ranges from $3,000 to $5,000 per month for ERMU. Attorney Beck shared what the city's retainer was and explained that his billable hours with them run approximately two times the monthly retainer rate. Taking all of this into consideration, Attorney Beck felt it was fair to request the increase in retainer, and asked if the Commission would consider making it effective retroactive to the first of the year. Chair Dietz shared some of the benefits of having Attorney Beck on retainer and stated that he felt it was a real advantage to have him present at our Commission meetings to offer his legal opinion. Based on the amount of time we had been utilizing Attorney Beck, and the value he offers to our organization, Chair Dietz expressed he was in favor of the $500 retainer increase and would even consider going higher than that. Attorney Beck pointed out that in addition to his retainer there are sometimes additional legal fees when ERMU utilizes the attorneys at Campbell Knutson or Gray Plant Mooty. After discussion, Commission consensus was to increase the retainer to $1,750 per month effective the first Page 5 Regular Meeting of the Elk River Municipal Utilities Commission April 11,2017 9R