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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Troy Adams,P.E.—General Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> April 11, 2017 5.3 <br /> SUBJECT: <br /> Legal Counsel Retainer Increase <br /> ACTION REQUESTED: <br /> Approve a Legal Counsel Retainer for Beck Law Office of$1,500 per month. <br /> BACKGROUND: <br /> In May 2009 the Utilities Commission approved a legal counsel retainer of$1000 per month for <br /> Peter Beck with Gray Plant Mooty. ERMU continues to contract legal services with Peter Beck <br /> with a$1000 per month retainer through Beck Law Office. <br /> DISCUSSION: <br /> According to the Bureau of Labor Statistics,the $1,000 retainer in 2009 is equivalent to a <br /> $1,135.48 retainer in 2017.And justifiably,the retainer for legal counsel service should be <br /> adjusted. <br /> The original quote for legal counsel services in 2009 was higher and the Commission negotiated <br /> a lower rate to be reevaluated after establishing history of legal labor hours. The retainer rate had <br /> been revisited approximately a year later and it was agreed that the $1,000 per month retainer <br /> remain in effect. <br /> The billable hours of legal service ERMU receives from Peter Beck under this retainer has <br /> always been greater than the amount billed. Peak hours are approximately five times that of the <br /> billed retainer, but consistently the hours are greater that two time the monthly retainer rate. <br /> Due to inflation since 2009 and due to the normal usage, staff recommends increasing the <br /> monthly retainer for legal services from $1,000 per month to $1,500 per month. <br /> FINANCIAL IMPACT: <br /> This increase of$500 per month for April through December would result in a$4,500 increase in <br /> legal expenses for 2017. <br /> Page 1 of 1 <br /> 176 <br />