Agenda Packets - 1999/09/20 - Laserfiche WebLink

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City of Mounds View Staff Report To: Chuck Whiting, City Administrator From: Bruce A. Kessel, Finance Director Item Title/Subject: Legal retainer with Kennedy & Graven Date of Report: September 16, 1999 Upon review of the letter from City Attorney Long, there are several issues that may warrant discussion, as well as several items that are somewhat misleading. It appears that we first started working with Kennedy& Graven in 1995. Initially,we paid a flat rate of$95 per hour. In 1996, all services were charged at$95 per hour, except work relating to the EDA which was billed at$112.50 per hour. EDA charges were minimal. In 1997, the contract appears to have been revised to institute a monthly retainer of$3,000 (based upon$100 per hour for services), and $115 for none general fund services. This contract has also been in place for 1998 and 1999. While the same contract has been in place since 1997, the method used to bill us has changed substantially. In the past, almost all services were either billed under the retainer, or at the $100 rate. Over the last two and one half years, fewer and fewer items are under the retainer or the retainer rate and are now charged at the higher rate. This issue has been brought up with Attorney Long several times over the past twelve to eighteen months, and Attorney Long has indicated that he will set up a meeting with several City employees (City Administrator, Finance Director, Community Development Director, Assistant to the Administrator) as well as himself and Attorney Riggs to discuss the issue and insure that everyone understands and agrees to how services will be billed. My most recent request for such a meeting was in early August. These meetings have never materialized, however, the projects/issues that are pulled out from under the retainer and billed at the higher rate continues to escalate. Also, over the period with the retainer, it is becoming more common to not have enough charged under the retainer to meet the fixed monthly retainer amount and as such, the retainer bills are increased to equal the retainer amount. Prior to agreeing to a change in the terms and rates in a contract with Kennedy and Graven, it is my recommendation that the billing practices of Kennedy and Graven be reviewed and clarified to insure that there is a mutual agreement between the parties as to the services to be provided under the retainer and at retainer rates verses non-retainer services, verses rates paid by third parties. There is one additional item that should also be addressed relating to higher rates for legal services paid by third parties. It is not uncommon for third parties to require"not-to-exceed"