HomeMy WebLinkAbout09485ORDINANCE NO. 9485
AN ORDINANCE APPROVING AN AGREEMENT FOR
PROFESSIONAL SERVICES BETWEEN THE CITY OF
PUEBLO, A COLORADO MUNICIPAL CORPORATION AND
FAIRFIELD AND WOODS, P.C., A COLORADO
CORPORATION AND AUTHORIZING THE MAYOR TO
EXECUTE SAID AGREEMENT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement for Professional Services dated of June 10, 2019, between the
City of Pueblo, a Colorado municipal corporation and Fairfield and Woods, P.C., a
Colorado corporation, a copy of which is attached hereto (”Agreement”) having been
approved as to form by the City Attorney, is hereby approved. The Mayor is authorized
to execute and deliver the Agreement in the name of the City and the Acting City Clerk
is directed to affix the seal of the City thereto and attest same.
SECTION 2.
The officers and staff of the City are authorized and directed to perform all acts
consistent with this Ordinance and the attached Agreement to implement the policies
and procedures described herein.
SECTION 3.
This Ordinance shall become effective on the date of final action by the Mayor and
City Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on May 28, 2019 .
Final adoption of Ordinance by City Council on June 10, 2019 .
President of City Council
Action by the Mayor:
☒
Approved on June 13, 2019 .
☐
Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□
Council did not act to override the Mayor's veto.
□
Ordinance re-adopted on a vote of , on
□
Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
Acting City Clerk
City Clerk’s Office Item # R-12
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: May 28, 2019
TO: Council President Dennis E. Flores and Members of City Council
VIA: Brenda Armijo, Acting City Clerk
FROM: Mayor Nicholas A. Gradisar
SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT FOR PROFESSIONAL
SERVICES BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION AND FAIRFIELD AND WOODS, P.C., A COLORADO
CORPORATION AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
SUMMARY:
Attached is an Ordinance approving an Agreement for Professional Services with Fairfield and
Woods, P.C. (“Attorneys”) to perform a Phase 2 legal study to evaluate the legal requirements
necessary for the City of Pueblo to create a municipal electric utility enterprise.
PREVIOUS COUNCIL ACTION:
On September 25, 2017, by Resolution No. 13790, the City Council declared the City of Pueblo’s
intent to terminate its Franchise Agreement with Black Hills on August 11, 2020, and to create a
municipal electric utility enterprise, if a due diligence feasibility study showed that municipalization
was an economically viable option.
On November 13, 2017 by Resolution No. 13820, the City Council created the Electric Utility
Commission (“EUC”) whose mission is to advise the Mayor and Council whether the City,
operating as a Municipal Electric Utility Enterprise, could successfully provide electric utility
service beginning on August 11, 2020.
BACKGROUND:
The EUC has recommended to the Mayor and City Council that the City hire Attorneys to perform
a second phase (“Phase 2”) study regarding the legal feasibility of forming a municipal electric
utility enterprise. The Phase 2 study will provide a more detailed legal analysis of the
municipalization process.
FINANCIAL IMPLICATIONS:
The City has received a proposal from the California law firm of Best, Best & Krieger, LLP
(“BB&K”) which has agreed to perform the Phase 2 legal analysis. BB&K estimates that the cost
of its Phase 2 legal analysis will be in the range of $285,000.
City staff recommends that the City retain the Denver law firm of Fairfield and Woods, P.C. for
the Phase 2 legal work. That law firm estimates the cost of the Phase 2 legal study to be in the
range of $250,000. In addition, because the City is a public entity, Fairfield and Woods, P.C. has
agreed to give the City a 15% discount from its customary hourly billing rates.
BOARD/COMMISSION RECOMMENDATION:
The EUC recommends approval of this Ordinance.
ALTERNATIVES:
If City Council does not approve this Ordinance, Attorneys will not be engaged to conduct a Phase
2 legal study exploring the City’s electricity provider options other than an investor owned utility.
RECOMMENDATION:
City Staff recommends approval of this Ordinance.
Attachments:
Proposed Ordinance; proposed Agreement for Professional Services
1, FAIRFIELD
�r
II &
WOODSP.C.
Mark A.Davidson, Esq.
(303)894-4425
rndavidsonG fwlaw.com
June 10, 2019
VIA EMAIL: ngradisaran pueblo.us
The Honorable Nicholas A. Gradisar
Mayor of the City of Pueblo
1 City Hall Place
Pueblo, CO 81003
Re: Engagement—Potential Municipalization—Phase II
Dear Mayor Gradisar:
Thank you for selecting me and Fairfield and Woods, P.C. as your attorneys. This letter and the
attached Policies and Procedures Addendum are intended to set forth our agreement for providing
legal services to you.
The City of Pueblo (the "City") is retaining me as your attorney to provide analysis and
consultation regarding the City's decision whether to municipalize electric distribution facilities
and create a municipal electric utility. The City is also retaining us to provide analysis and
consultation on condemnation and municipal election issues related to a possible municipalization
of electric utility facilities. The City has not retained us at this time to take any other action on
your behalf.
It is anticipated that I will be primarily responsible for your account. My current billing rate is
$475 per hour. However, in consideration of the City's request for my expertise in this subject
matter area and in anticipation of this being a long-term relationship,I have obtained authorization
from my firm to discount my hourly rate approximately 15% to $405 per hour. My colleagues
Craig Joyce and Todd Messenger will provide analysis and advice on potential condemnation and
municipal election issues respectively. For this matter,Craig's discounted hourly rate will be$405
and Todd's discounted hourly rate will be $300. We estimate the fees for work done by us on
Phase II will be in the range of$250,000.
From time to time,other attorneys or paralegals may assist with this matter as needed. Their billing
rates may be different from the rates for those principally responsible for this matter. We reserve
the right to adjust our hourly rates from time to time, and will inform you of any changes in the
rates set forth herein.
In recognition of the difficulty for this City to appropriate a retainer for my services,we are willing
to waive our normal retainer requirement at this time.
In performing this work, our firm will be representing the City as an entity,rather than you or any
other individual at the City. This means our duty is to the City and we must place its welfare and
interests ahead of the interests of any individual within the City. In many cases, what is best for
the City will also be best for each individual at the City. If a conflict of interest arises,it may be
1801 California Street• Suite 2600 •Denver,Colorado 80202
t(303)830-2400 • f(303)330-1033 * ,vylk, fwlaw. or
1E11FAIRFIELD
WOODS,.
The Honorable Nicholas A.Gradisar
Mayor of the City of Pueblo
June 10,2019
necessary for you to obtain separate legal counsel. We are accepting this representation with the
understanding that no such conflict issues exist. If you become aware of any actual or potential
conflict of interest,you must promptly advise us.
We want you to be confident and enthusiastic about our services and our representation of you.
Please do not hesitate to contact us to let us know how we can better serve you or if you have any
questions about the progress of the matter, our representation, our bills, other services we might
provide,or any other matter.
If the terms set forth herein and in the attached Policies and Procedures Addendum are acceptable,
please sign below and return a copy of this letter to me in the enclosed envelope. We look forward
to working with you.
Very trul ours,
Y ark A.Davidson,Esq.
FAIRFIELD AND WOODS,P.C.
MAD/ajj
Attachment
I have read and hereby agree to the terms of the foregoing engagement letter and attached
Policies and Procedures Addendum.
2ftaralme tege044*.
Mayor Nicholas A. Gradisar
IKVwFAIRFIELD
� OODSPC.
The Honorable Nicholas A.Gradisar
Mayor of the City of Pueblo
June 10,2019
Policies and Procedures Addendum
Expenses and Disbursements: Our firm bills for out-of-pocket expenses separate from fees for
legal services. You are responsible for out-of-pocket disbursements, such as filing fees, hand
deliveries outside downtown Denver, overnight courier service, and travel expenses. We do not
charge for routine copying. However,we may charge for large copy projects performed in-house
at a rate of$0.20 per page. If time allows,and especially if the copying project is large, we often
send copying projects to a specialty company in order to reduce the cost. We do not currently
charge for downtown deliveries made by our employed messenger,for sending or receiving faxes,
or for routine first-class postage. We do not normally advance out-of-pocket costs of more than
$600.00, and if we receive a bill for such services we may ask that you pay it directly.
Adjustment to Hourly Rates. The firm reserves the right to adjust our hourly rates for attorneys
and other professionals from time to time. We will inform you of any changes in the rates
applicable to this engagement.
Billing and Payment: We will invoice you monthly for our legal fees and for expenses and
disbursements. Our invoices will itemize all time and expenses. All invoices are due upon receipt.
Unless otherwise specified in our Engagement Letter, your obligation to pay our invoices when
due is not contingent on the result achieved, and we cannot and do not guarantee any particular
result. We are confident that our clients make every effort to pay us promptly,and know you will
do likewise. Occasionally,however, a client has difficulty in making timely payment. To avoid
burdening clients who pay promptly with higher fees as a result of other clients who fail to pay
promptly,a late payment charge of one percent per month will be assessed on the last day of each
month against all unpaid fees and costs which were billed before the beginning of that month. In
the event we must commence legal action to collect any sums owed, you agree to pay all fees and
expenses, including reasonable attorney fees, which we incur. Should you ever have questions
about our bills,just let us know; we will gladly answer them.
Document and File Ownership:During the course of our representation of you,we will routinely
send you copies of external correspondence, pleadings, and other relevant documents regarding
the representation. Since you will be provided with such documents on an ongoing basis, you
agree that the files and documents maintained by us in our office belong to us, except for original
documents provided by you to us. Of course, if you should ever need copies of any documents
maintained in our files, we will provide them to you, at your expense.
File Retention and Destruction: Client agrees that any materials in the file may be destroyed, at
the firm's discretion, following 24 months after the matter for which we have provided
representation is concluded or the firm's representation ends. At any time prior to the passage of
said period you may request in writing the return of all materials/property provided to us during
the course of representation, but after said period of time any such items may be considered
AIRFIELD
A WOODS
The Honorable Nicholas A.Gradisar
Mayor of the City of Pueblo
June 10,2019
abandoned. The firm is not required to provide notice prior to destruction of the file, but may do
so as a courtesy to clients.
Termination: You have the right to terminate our representation at any time. We have the right to
terminate our representation when termination is required or allowed under the Colorado Rules of
Professional Responsibility,including if you fail to pay our fees or expenses.
Governing Law and Venue: Our representation of you shall be governed by and construed and
enforced in accordance with the laws of the United States and the State of Colorado. Exclusive
venue for any dispute in connection with our representation of you shall be in the state or federal
courts in Denver, Colorado,and you and we both consent to the jurisdiction of those courts.
Attorney Client Privilege: All written and verbal communication between you and the firm in
connection with this engagement are confidential and protected by the attorney-client privilege.
In order to maintain this privilege, it is important that you do not discuss or disclose the
communications or advice given by the firm with any third parties. The disclosure of
communications or advice given by the firm in connection with this engagement to parties outside
the attorney-client relationship may waive this privilege. If you have questions about what
information may be shared in connection with this engagement,please contact us.
More Information About the Firm: A Firm brochure that provides information on all of our
attorneys and the other services we offer is either enclosed with this engagement letter or may be
downloaded from our web site, www.fwlaw.com. Our web site provides additional information
about our services, including numerous articles we have written on various legal subjects. We
would be happy to discuss any other legal needs you may have.
Our Office Hours: Our office is open from 8:00 a.m. to 5:30 p.m. each business day,but we are
often here evenings and weekends to serve our clients. Feel free to contact any of the lawyers at
the firm at any time.
Telephone/Voicemail. System: Our voice message system allows you to leave a detailed,
confidential message at any time for an attorney who is not available when you call. We strive to
return your calls as soon as possible. To reach an attorney or to leave a voice message,simply call
our switchboard at 303-830-2400, or use the direct dial of the attorney. If you do not know the
extension of the attorney you arc calling after business hours,just follow the instructions you hear
and you will be able to reach that person by spelling on the telephone keypad.
E-Mail: You may also reach us via e-mail. The Internet e-mail address for anyone in the firm is
the first initial of the person's first name,followed immediately by the person's last name,followed
by(fwlaw.com.