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• <br />• <br />C. Fees: <br />1. Fixed Fees <br />We have provided a draft legal services contract for the City to consider which addresses <br />rates for the services the City has identified, at Exhibit D. In our experience, the City may receive <br />proposals with initially lower fees for some services. We believe our fees are competitive, as the <br />$140/hour suggested for general legal services reflects the general range we typically charge our <br />• current clients. We understand the current economic climate cities operate in, and would agree to <br />hold our rates without change through 2009. Thereafter, we typically would request a moderate <br />increase relative to the increased cost of doing business. <br />• <br />• <br />• <br />• <br />• <br />• <br />• <br />We believe our fees will be cost effective for the City, even if initially higher than another <br />proposal. We are providing a team of highly- experienced lawyers with years of service to local <br />government. Our depth and breadth of experience in the Firm will permit the City to benefit from a <br />"one stop shop" law firm, offering further efficiencies and likely cost savings to the City. We <br />recognize the City's right to negotiate these fees with us if we are selected as City Attorney. <br />2. Alternate Fee Arrangements <br />We are also open to exploring the use of a retainer agreement for identified services to be <br />provided to the City, such as meeting attendance and routine legal services. However, since we <br />are unfamiliar with the City's practices, it is difficult in advance of establishing the <br />attorney /client relationship to determine whether a retainer is in the best interest of the City or <br />Kennedy & Graven. While some of our clients prefer a retainer, most of them seem to prefer <br />hourly billing at agreed -upon rates for identified classifications of services, as we have <br />suggested. We certainly understand that the City reserves the right to negotiate with us on the <br />fee structure if we are selected as City Attorney. <br />3. Billing Increments and Other Costs <br />The minimum increment of time billed is one -tenth of an hour for all service. There is no <br />minimum increment for any type of service. The Firm will bill its out -of- pocket costs as described <br />in Exhibit D. Our billing statements provide detail for all fees and costs as requested by the City. <br />Kennedy & Graven can fully meet the City's preferred format for monthly billing <br />statements. <br />CONCLUSION <br />We believe that our firm is without equal in terms of providing the breadth, depth, and <br />quality of municipal legal services in this area. We believe that our depth and experience <br />permits us to provide the highest quality legal services to Lino Lakes in the most effective and <br />efficient way and at the lowest reasonable cost. We believe in (and have consistently <br />maintained) long -term relationships with our municipal clients. While it is possible to find lower <br />rates from other proposers, there are no "low ball" rates in the suggested fee schedule we have <br />13 <br />