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5.b) Review Draft of Contract for Legal Services � � �c� �'��-� � .�, .�. SCANDIA Staff Renort Date of Meeting: December 11, 2012 To: City Council From: Kristina Handt,City Administrator Re: Review Draft of Contract for Legal Services Agenda Item#: S.b) Background: At the Special Meeting on November 27th, Council directed staff to compile a contract for legal services with Eckberg Lammers. A copy of the proposed contract is included in your packet. Issue: Is the proposed contract sufficient? Proposal Details: The proposed contract is consistent with the proposal submitted by the firm in November. It covers a period of three years. Hourly rates would be $150 in the first two years and increase to $155 in the third year. The Council meeting rate would be a flat $200. Paralegals and Law Clerk research would be billed at $125 per hour. A flat fee of$3,000 will be paid to cover services until February 19, 2013 when Eckberg Lammers would replace the current city attorney. One item the Council may wish to consider further is the termination clause. Currently proposed is a 60 day notice. In past contracts the Council has had a 90 notice. Is the 60 day notice sufficient time to allow the city to go through an RFP process should they be given notice and need to find new counsel? Nick Vivian will be at the meeting to answer any additional questions you may have. Fiscal Impact: The draft 2013 budget includes $70,000 for legal services. This includes both civil and prosecution. While the hourly rates proposed by Eckberg Lammers are hirer than the current City Attorney, staff believes their familiarity with municipal issues,history of working in Washington County and with communities of similar size, along other procedural changes will result in lower overall charges. Options: 1) Make no changes to proposed contract and direct staff to place it on the consent agenda for 12/18/12 meeting. 2) Amend the contract and direct staff to place it on the consent agenda for the 12/18/12 meeting. 3) Place contract on general business agenda for 12/18/12 meeting. CONTRACT FOR CIVIL LEGAL SERVICES This CONTRACT FOR CNIL LEGAL SERVICES ("Agreement") is entered into by and between the City of Scandia, Minnesota, with its principal office located at 14727 209th Street North, Scandia, Minnesota, 55073 ("City") and the law firm of Eckberg, Lammers, Briggs, Wolff & Vierling, P.L.L.P., with its principal office located at 1809 Northwestern Avenue, Stillwater, Minnesota, 55082, for the purpose of utilizing the Law Firm to provide civil legal services to the City. RECITALS A. The City Council of the City has preliminarily selected the Law Firm to provide civil legal services to the City. Upon the execution of this Agreement, the Law Firm will provide civil legal services to the City, and will exclusively provide such services commencing on or about February 19, 2013 ("Commencement Date"), or at a different such date as agreed to by the parties hereto. B. The City and the Law Firm desire to enter into a contract for three (3) years with hourly rates outlined as follows, with charges billed in .10 hour increments: Year One(January 1, 2013 —December 31, 2013) $150.00 Year Two (January 1, 2014—December 31, 2014) $150.00 Year Three (January 1, 2015 —December 31, 2015) $155.00 City Council Meeting Attendance: $200.00 per meeting Paralegal Services: $125.00 per hour Law Clerk-Research: $125.00 per hour C. Prior to February 19, 2013, the Law Firm shall charge a flat fee of $3,000.00 which shall be billed in January of 2013 for transitional services provided prior to the Commencement Date. NOW THEREFORE, IN CONSIDERATION OF the mutual promises contained herein and other good and sufficient consideration, the parties agree to the following: TERMS 1.1 Scope and Nature of General Counsel Services: The parties agree to the following description of the nature of the legal services to be provided by the Law Firm to the City: a. Attendance at regular City Council meetings. Attendance at special City Council meetings/workshops, and City committee meetings (including Planning Commission meetings) as requested. All Council meetings shall be billed at a flat rate of $200.00. All other City committee meetings attended shall be billed at the applicable hourly rate described above. b. Review of City Council, City committee, and Planning Commission agenda items and minutes. c. Teleconference and in-person meetings with the City Administrator, City Officials, and City department heads to identify issues of short and long- term importance. d. Drafting of and revisions to City ordinances, resolutions and regulations. e. Drafting of municipal contracts, joint powers agreements, and the like; Review of contractor/vendor bond and insurance documents. f. Research and preparation of legal opinions on municipal or other legal matters, including open meeting law/data practices issues and general municipal employment matters. g. Providing regular updates on significant developments in laws affecting the City to the City Administrator, City Council and City staff. h. Providing a yearly legislative update. i. Providing regular in-service presentations as requested to City staff and City officers on topics selected by the firm and City with special emphasis on new developments in the law (e.g. labor issues/data practices issues/land use issues). 1.2 Best Legal Practices Initiatives: In addition to the retainer services, throughout the period of its representation, The Firm shall furnish regular "Best Legal Practices Initiative Services." 'The services shall include on-site meetings with City staff and department heads and, where appropriate, the City Administrator and City Council to perform the specified initiatives. It is expected that the specified best practices initiatives may change as required by the growth and change of the City. All practices shall be benchmarked against those of other leading cities, not limited to cities in Minnesota. These services shall include,but shall not be limited to: A. Municipal Infrastructure Best Practices: The Law Firm shall regularly: 1. Update the City Administrator and City Council on current methods of funding needed municipal infrastructure including alternate methods of securing infrastructure improvements. 2. Review and advice shall make reference to existing and new legislation but also City-initiated methods of sharing or eliminating costs. 2 3. Benchmark infrastructure cost recovery efforts against other leading cities. B. Deparhnent Specific Best Practices: The Law Firm shall regularly review the internal processes and procedures of City Departrnents to furnish recommendations in order to: 1. Reduce or avoid future liability and litigation; 2. Benchmark department legal processes against other leading cities; C. Planning/Engineering Legal Best Practices: The firm shall: 1. Perform annual review of Planning/Engineering documents related documentation to ensure that the documents are up to date, consistently utilized conectly and sufficiently protective of City financial and planning interests, 2. Make regular recommendations for standardization of City documents, development agreements and contracts and processes using templates and checklists where advisable to improve efficiency and predictability, 3. Devise solutions for avoidance of liability and litigation, and assurance of proper development close out including recordation of all necessary conveyances, 4. Regularly benchmark Planning/Engineering legal processes, , documentation and against other leading cities; D. Zoning/Subdivision/Regulatory Ordinance Best Legal Practices: The Law Firm shall regularly: 1. Furnish examples of, and suggestions for, zoning, subdivision and regulatory ordinance improvements and modifications based upon needs identified by the Law Firm and the City and also based upon legislative changes; 2. Benchmark such ordinances against other leading cities; 1.3 Other Matters: The parties contemplate that the Law Firm may also provide civil legal services outside the scope of services covered by the general and "best practices" service as described in paragraphs 1.1 and 1.2 above. These services shall be handled as follows: 1.3.1 Contested Case Matters: The Law Firm will provide, and the City shall utilize the Law Firm for representation in, contested cases, provided the City has the right to select counsel in the contested case, and provided the City determines, in its reasonable discretion, that the Law Firm has the 3 skill and experience to represent the City in a fashion that the City deems to be in its best interests given the expertise, costs, and litigation service delivery available from other law firms in the Twin Cities Metro area. These legal services will be billed to the City in accordance with a separate agreement between the parties hereto. 1.3.2 Bond Attorney Matters: The Law Firm is a"nationally recognized bond counsel" under the requirements of The Bond Buyer's Municipal Marketplace (also known as the "Redbook"). The Law Firm will therefore perform public finance, economic development, TIF, bond counsel, and other finance legal services for the City. 1.3.3 Prosecuting Attorney Matters: The Law Firm recognizes that the City is under contract with a different law firm for the provision of prosecution legal services. The Law Firm will therefore not perform legal services as a prosecuting attorney, except as otherwise directed by the City or as required in a conflict situation with the City's prosecuting attorney (and as agreed to by such prosecuting attorney). The Law Firm will work with the prosecuting attorney in the transition of any matters from civil to criminal representation, and vice-versa. 2. Reimbursable Costs and Expenses. 2.1 General Rule: The City will reimburse the Law Firm for actual, necessary and reasonable costs and expenses incurred by the Law Firm in the performance of the legal services contained in this Agreement. 2.2 Specific Rates: Description of Costs Rate Mileage I.R.S. Rates (except local) Parking Actual Cost Meals No Reimbursement Photocopying $0.20 per page Facsimile to Client $0.20 per page Facsimile from Client $0.00 Long Distance Telephone $0.00 Transportation time and reimbursement $0.00 Phone calls from Staff/Council $0.00 Postage Actual Cost Messenger Actual Cost Court Costs/Filing Fees Actual Cost Arbitration Costs Actual Cost Other Contested Case Costs Actual Cost Document Recording & Closing Fees Actual Cost 4 Court Reporter Transcription Fees Actual Cost No Char�es for the followin�: WestLaw/Lexis Research Fees/Computer Time Enhancements to out-of-pocket char e�or processin� Administrative billin�s for file setup and computer entrv Electronci copies of documents 3. Matters Covered by Insurance: The Law Fi�n will assist the City in submitting claims for insurance coverage to various insurance carriers. Whenever a claim is made with an insurance carrier, which arises out of a legal issue within the scope of this Agreement, the City will recommend that the Law Firm be utilized by the insurance carrier in the matter for which the claim is made. The City may recommend the Law Firm to an insurance carrier for claims arising out of matters which are outside the scope of this Agreement. At the point in time when an insurance carrier admits coverage, and to the extent that such carrier will provide retroactive payments for attorneys' fees, the Law Firm will receive its payments for services rendered from the insurance carrier and not from the City. To the extent that an insurance carrier does not pay for legal services rendered by the Law Firm, including any deductibles, the City will pay the Law Firm for services rendered at the rates charged to the insurance company, subject to billing and payment provisions of paragraph 5. � 4. Conflict of Interest and Attorney/Client Privilege Issues: 4.1 Conflict of Interest: The Law Firm will notify the City if the Law Firm represents or has ever represented an opposing party in a legal matter. 4.2 Attorney/CGent Privilege: The Law Firm is authorized to utilize e-mail without encryption to transmit and receive confidential client information. The City specifically acknowledges that it understands the confidentiality risks associated with inadvertent interception of such information. 5. Billing Format, Cycle, Payment Expectations and Interests. 5.1 Billing Format: The Law Firm will submit monthly statements, for both retainer and non-retainer matters, itemizing legal services rendered for the prior month broken down into easily understandable categories. 5.2 Billing Cycle: The Law Firm will bill monthly for legal services rendered in the prior month. Generally, bills will go out approximately 10 days after the end of the prior month. 5.3 Payment Expectations: The City will pay the bill of the Law Firm routinely according to its internal payment procedures by forwarding a 5 check to the Law Firm paying for both legal services and expenses shown on the Law Firm's bill. 5.4 Disputes: In the event that the City disputes any aspect of the Law Firm's bill, the appropriate City representative will contact Nicholas J. Vivian at the Law Firm stating the nature of the dispute. 5.5 Term: The term of this Agreement will be from January 1, 2013 through December 31, 2015. The Law Firm recognizes that the firm currently providing civil legal services to the City is expected to cease providing such services on or about February 19,2013. 1. During the term of this Agreement, either party may terminate this Agreement upon 60 calendar days' written notice to the other party. 2. The parties agree to mutually evaluate the usage of legal services at any time, and at a minimum annually during this Agreement to evaluate usage and identify areas where modification(s) in the parties' relationship may be mutually beneficial. 5.6 Authorized Contact Persons: Nicholas J. Vivian will act as lead attorney for the City. Andrew J. Pratt will act as the assistant attorney and public finance counsel. However, the parties contemplate that other attorneys in the Law Firm will also be providing services to the City subject always to advance approval by the City. 5.7 City Approval: Subject to the timing provisions of this Agreement described above, the Law Firm is authorized to commence providing civil legal services to the City upon the execution of this Agreement by the City. 6. Malpractice Insurance: At all times while this Agreement is in effect, the Firm shall maintain professional liability insurance issued by an insurance company licensed to do business in the State of Minnesota and with policy limits not less than $500,000.00 per claim and $1,500,000.00 in the aggregate. Not less frequently than annually, the Firm shall provide the City with a Certificate of Insurance establishing that the Firm has met the foregoing requirements. 7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota and all disputes hereunder shall be venued in the district court in and for Washington County, State of Minnesota and all parties hereby agrees to the jurisdiction of such court. 6 8. Binding Effect. This Ageement shall be binding on and inure to the benefit of the parties hereto and the respective heirs, successors, assigns, personal representative and executors of such parties. 9. Amendment, Modification, or Waiver. No amendment, modification, or waiver of any condition, provision or term of this Agreement shall be made or of any effect unless made in writing, signed by the party or parties to be bound or a duly authorized representative, and specifying with particularity the extent and nature of such amendment, modification or waiver. Any waiver by any party of any default hereunder by another party shall not affect or impair any right arising from any subsequent default. Except as expressly and specifically stated otherwise, nothing herein shall limit the remedies and rights of the parties hereto under and pursuant to this Agreement. 10. Severable Provisions_ Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any provision, section, sentence, clause, phrase and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of this Agreement. 11. Captions, Headings or Titles, All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted for convenience of reference only and shall not constitute a part of this Agreement or as a limitation on the scope of the particular paragraphs or sections to which they apply. CITY OF SCANDIA Dated: By: Randall Simonson Its: Mayor Dated: By: Kristina Handt Its: City Administrator ECKBERG,LAMMERS, BRIGGS, WOLFF& VIERLING, P.L.L.P. Dated: By: Nicholas J. Vivian Its: Partner 7