Loading...
HomeMy WebLinkAbout11800RESOLUTION NO. 11800 A RESOLUTION ENGAGING DIETZE AND DAVIS, P.C. TO PROVIDE LEGAL SERVICES RELATING TO NEGOTIATIONS FOR BLACK HILLS ENERGY FRANCHISE WHEREAS, Black Hills /Colorado Electric Utility Company, LP ( "Black Hills ") furnishes and sells electricity to the City and its residents under a franchise which expires August 12, 2010, and WHEREAS, Black Hills has filed with the Colorado Public Utilities Commission its Advice Letter No. 628 to implement a general rate increase of 17.23% to base rates ( "Rate Case "). WHEREAS, the base rate increase would result in a substantial increase in the City's power costs; and WHEREAS, it would be in the best interest of the City to engage the services of special legal counsel experienced in rate regulation to assist the City in contesting the increases sought in the Rate Case; and WHEREAS, Karl F. Kumli, III of the law firm of Dietze and Davis, P.C. has such experience and is familiar with the structure and activities of Black Hills in providing and furnishing electricity, and WHEREAS, pursuant to Section 6 -7 of the Charter of the City, the Interim City Attorney consents to and approves the engagement of Dietze and Davis, P.C. as special counsel to provide legal services relating to the PUC proceedings involving the Rate Case. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The engagement letter between Dietze and Davis, P.C. and the City of Pueblo, a copy of which is attached hereto, having been approved as to form by the Interim City Attorney, is hereby approved. The Interim City Attorney is authorized to execute the engagement letter on behalf of the City. SECTION 2 Funds for services to be performed and costs expended in such representation shall be disbursed from the Professional Services Account in the City Council's 2010 budget. INTRODUCED: February 8, 2010 BY: Judy Weaver COUNCILPERSON APPROVED: RESIDENT CF CITY CC) UNCIL ATTESTED BY: GIB' Y CLERK �• i Background Paper for Proposed RESOLUTION AGENDA ITEM # M -1 DATE: February 8, 2010 DEPARTMENT: Law Department TITLE A RESOLUTION ENGAGING DIETZE AND DAVIS, P.C. TO PROVIDE LEGAL SERVICES RELATING TO NEGOTIATIONS FOR BLACK HILLS ENERGY FRANCHISE ISSUE Should the City engage Dietze and Davis to provide legal services relating to the Colorado Public Utility Commission's proceedings in Docket No. 10AL -008E, and any related proceedings, concerning Advice Letter No. 628 and other rate filings by Black Hills /Colorado Electric Utility Company, LP. Approve the engagement. BACKGROUND The City's electric bill paid to Black Hills for 2009 was approximately $3.2 million. Black Hills Energy has filed Advice Letter No. 628 to implement a general rate increase via a General Rate Schedule Adjustment of 17.23% to base rates. This would result in a substantial increase in the City's power costs. It would be in the best interest of the City (and City customers of Black Hills) to engage the services of legal counsel experienced in PUC rate increase regulation to assist the City in challenging the rate increase. FINANCIAL IMPACT Funds for services to be performed and costs expended in such representation shall be disbursed from the Professional Services Account in the City Council's 2010 budget. The costs of challenging the rate increase may be offset by reduction of the City's energy costs attributable to any reduction in the amount of Black Hill's rate increase. DIETZE AND DAVIS, P.C. ATTORNEYS AT LAW Esrab%hed in 1972 Peter C. Dietze Siena Square Building Tucker M. Katz Joel C. Davis 2060 Broadway, Suite 400 - Joshua E. Anderson Robyn W. Kube Boulder, Colorado 80302 Mark D. Detsky Karl F. Kumli, III* Telephone (303) 447.1375 David J. Thrower Fax (303) 440.9036 Of Counsel: Joel C. Maguire www.dietzedavis.com Carmen S. Danielson Renee Ezer* Stephen A. Closky Email: KarlK(adietzedayis.co *Also admitted in Califmnia Star L Waring February 1, 2010 Thomas Florczak, Esq. City of Pueblo 503 N. Main Street, Suite 203 Pueblo, CO 81003 Re: Agreement for Legal Services Dear Tom: On behalf of Dietze and Davis, P.C., I would like to thank you for choosing our Firm to represent the City of Pueblo in regard to the Black Hills /Colorado Electric Utility Rate Case before- the Colorado Public Utilities Commission (Docket 10AL- 008E). The purpose of this letter is to confirm the terms upon which our services will be provided. We understand that pursuant to Section 6 -7 of the Charter of the City of Pueblo we are retained as special counsel to represent the City of Pueblo and in such capacity Will serve under your direction as City Attorney I will have primary responsibility for the City's representation and will utilize other Finn lawyers and paralegals as I believe appropriate under the circumstances. We Will provide legal counsel to you in accordance with this letter and in reliance upon information and guidance provided by you. We also agree to keep you reasonably informed of progress and developments, and to respond to your inquiries. _ - To enable us to represent the City effectively, you agree to cooperate fully with us in all matters relating to your case, and to fully and accurately disclose to us all facts and documents that may be relevant to the matter or that we may otherwise request. You also will make yourself reasonably available to attend meetings, discovery proceedings and conferences, hearings and other proceedings. The City also agrees to pay our statements for services and other charges as stated below. The continued acceptance of these services constitutes an agreement to pay for them. Either at the commencement or during the course of our representation, we may express opinions or beliefs concerning litigation or various courses of action and the results that might be anticipated. Any such statement made by any attorney or employee of our Firm is intended to be Thomas Florczak, Esq. February 1, 2010 Page 2 an expression of opinion only, based on information available to us at the time, and should not be construed by you as a promise or guarantee. Our fees will be based on the amount of time spent on your behalf. Each lawyer and paralegal has an hourly billing rate based generally on experience and special knowledge. My time is currently billed at the rate of $250.00 per hour; the hourly billing rates for other attorneys in the Firm range from $195 to $350. Paralegal time is billed at rates in the range of $100 to $140 per hour. These billing rates are adjusted periodically, generally on an annual basis. When we change rates, we will advise you in writing and request that you sign an acknowledgment of the new hourly rate. If we do not receive prompt written consent to the new hourly rate (i.e., within 30 days of the request), we may elect to terminate representation of you in accordance with our professional obligations to you, as your counsel. Services performed after the effective date of the new rates will be charged at the new rates. It is understood that the hourly time charges include, but are not limited to, telephone conferences, office conferences, legal research, review of file materials and documents sent or received, drafting of documents, office memoranda and correspondence, electronic correspondence (email), and preparation for and attendance at trials, hearings and conferences, where appropriate. It is further understood that actual costs, including, but not limited to long distance telephone calls, photocopies, printing, mileage, filing fees, recording fees, computerized legal research, postage, service of process, and transcripts will either be paid by this Firm and then billed to you, or sent to you for direct payment. Many Colorado courts now require that all pleadings in district court civil cases be electronically filed. No paper pleadings will be accepted by these courts in the future. In the event litigation is required, all electronic filing fees, including ordinary filings, service to other parties, notice, accessing documents, and /or additional electronic filing fees required to be paid will also be shown on your invoice. Billings will be submitted to you on a monthly basis and upon completion of our services in this matter. Payment may be made by cash, check, VISA, or MasterCard. For your convenience, you may provide advanced authorization for the Firm to charge the amount billed each month directly to your credit card. The failure to promptly pay any monthly statement upon its receipt, or to pay a deposit when requested, shall relieve the Firm, after notice to and discussions with you, of any further obligation to furnish legal services on your behalf. Subject to authorization by the City Attorney and funds being appropriated and budgeted therefore, you authorize us. to retain any investigators, consultants or experts necessary in our judgment to represent your interests in this matter. At our option, we may forward third -party charges directly to you for payment. Once a trial or hearing date is set, if applicable, we will require you to pay all amounts then owing to us and to deposit with us the fees we estimate will be incurred in preparing for and completing the trial or arbitration, as well as jury fees and arbitration fees likely to be assessed. Thomas Florczak, Esq. February 1, 2010 Page 3 If you fail to timely pay any additional deposit requested, we will have the right to cease performing further work and to withdraw from the representation. As we have discussed, the fees and costs relating to this matter are not predictable. Accordingly, we have made no commitment to you concerning the maximum fees and costs that will be necessary to resolve or complete this matter. Any estimate of fees and costs that we may have discussed represents only an estimate. It is also expressly understood that payment of the Firm's fees and costs is in no way contingent on the ultimate outcome of the matter. You may terminate our representation at any time by notifying us. Your termination of our services will not affect your responsibility for payment of outstanding statements and accrued fees and expenses incurred before termination or in connection with an orderly transition of the matter. If such termination occurs, your papers and property will be returned to you promptly upon receipt of payment for outstanding fees and costs. The Firm will retain its own files, including lawyer work product, pertaining to the matter. We may withdraw from representation if you fail to fulfill your obligations under this agreement, including your obligation to pay our fees and expenses, or as permitted or required under any applicable standards of professional conduct or rules of court, or upon reasonable notice to you. You agree to bring any disputes or questions as to fees or costs to the attention of the responsible attorney or our bookkeeper, in writing, within fifteen days of receipt of the bill. If agreement cannot be reached, and either party wishes to pursue a resolution, the matter shall be submitted to the legal fee arbitration committee of the Colorado Bar Association for a binding and judicially enforceable arbitration award. In that event, the prevailing party shall be entitled to reasonable attorneys' fees and costs so incurred. Once we have completed our work on your behalf and payment has been received in full, we will close our file on this matter. You are entitled, upon your request, to the return of all documents that you have provided to us and all original documents remaining in our possession without additional charge. You are also entitled to copies of any of the documents in our files, other than our notes and working documents, at your expense. Our office policy is to move the file to storage off -site and, after seven years, destroy the file. We do attempt to notify you prior to destruction at the last address you have provided us so that you can claim the file rather than it being destroyed. Thomas Florczak, Esq. February 1, 2010 Page 4 Please review this letter carefully and, if it meets with your approval, print, sign and return a copy of this letter to me so that we may begin work. Please call me if you have any questions. Very truly yours, DIETZE AND DAVIS, P.C. Karl F. Kumli, III Agreed to this E day of ' 2010. City of Pueblo Thomas Florc City Attorney