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HomeMy WebLinkAbout09928ORDINANCE NO. 9928 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, REGARDING LEGAL REPRESENTATION OF THE CITY OF PUEBLO IN THE CASE CURRENTLY PENDING BEFORE THE COLORADO PUBLIC UTILITIES COMMISSION REGARDING THE FEBRUARY 2021 COLD WEATHER EVENT’S IMPACT ON UTILITY RATES 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 March 26, 2021 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 City Clerk is authorized to affix the seal of the City thereto and attest same. SECTION 2. The officers and staff of the City are authorized 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 April 26, 2021 . Final adoption of Ordinance by City Council on May 17, 2021 . President of City Council Action by the Mayor: ☒ Approved on May 19, 2021 . □ 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 City Clerk City Clerk’s Office Item # R-11 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: April 26, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Daniel C. Kogovsek, City Attorney 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, REGARDING LEGAL REPRESENTATION OF THE CITY OF PUEBLO IN THE CASE CURRENTLY PENDING BEFORE THE COLORADO PUBLIC UTILITIES COMMISSION REGARDING THE FEBRUARY 2021 COLD WEATHER EVENT’S IMPACT ON UTILITY RATES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign an Agreement for Professional Services with Fairfield and Woods, P.C. (“Attorneys”) to represent the City in the case currently pending before Colorado Public Utilities Commission (“PUC”) regarding the February, 2021 Cold Weather Event’s impact on utility rates. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: The PUC has recently opened an investigation into how the Public Service Company of Colorado d/b/a Xcel Energy and Black Hills Energy handled the February 2021 cold snap. The competition for natural gas and electricity during the cold snap caused a spike in prices. The PUC will determine if any of those increased costs should be passed on to ratepayers, including the City. FINANCIAL IMPLICATIONS: The City will be represented in the PUC proceeding by Mark A. Davidson. Mr. Davidson’s normal billing rate is $500 per hour. Mr. Davidson has agreed to give the City a 10% discount from his normal billing rate. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. ALTERNATIVES: If City Council does not approve this Ordinance, Attorneys will not be engaged to represent the City in the proceeding currently pending before the PUC regarding the February 2021 Cold Weather Event’s impact on utility rates. RECOMMENDATION: The Mayor and City Staff recommend approval of this Ordinance. Attachments: Proposed Ordinance Proposed Agreement for Professional Services FAIRFIELD A WOODSP.C. Mark A. Davidson (303) 894-4425 mdavidson@fwlaw.com March 26, 2021 Sent via E-Mail: ngradisar@pueblo.us The Honorable Nicholas A. Gradisar Mayor of the City of Pueblo 1 City Hall Place Pueblo, CO 81003 Re: Engagement—February 2021 Cold Weather Event Impact On Utility Rates Dear Mayor Gradisar, Thank you for selecting Fairfield and Woods, P.C.as attorneys for The City of Pueblo(the"City"). This letter and the attached Policies and Procedures Addendum are intended to set forth our agreement for providing legal services to you. You are retaining Fairfield and Woods, P.C., as your attorneys to represent the City in the Public Utilities Commission's investigation of the responses of Black Hills Electric and Public Service Company of Colorado's natural gas division to the February 2021 cold weather event. The City has not retained us at this time to take any other action on its behalf. It is anticipated that I will be primarily responsible for your account. My current billing rate is $500 per hour. However, as with past representations of the City, I am discounting my hourly rate to $450 for this matter. 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 City being an ongoing firm client,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 within the City. If a conflict of interest arises, it may be 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. 1801 California Street• Suite 2600 •Denver,Colorado 80202 t(303)830-2400• f(303)830-1033•www.fwlaw.com !KV OODSIELDP.C. The Honorable Nicholas A. Gradisar Mayor of the City of Pueblo March 26, 2021 Page 2 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 via email, copying my assistant, Celeste Jourdonais, at cIourdonaisWwlaw.com. We look forward to working with you. Very truly yours, s/Mark A. Davidson Mark A. Davidson FAIRFIELD AND WOODS, P.C. MAD:crj I have read and hereby agree to the terms of the foregoing engagement letter and attached Policies and Procedures Addendum. THE CITY OF PUEBLO •By: Nicholas A. Gr sar Mayor of the City of Pueblo cc: Dan Kogosvek City Attorney FAIRFIELD WOODS P.c. The Honorable Nicholas A. Gradisar Mayor of the City of Pueblo March 26, 2021 Page 3 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 abandoned. The firm is not required to provide notice prior to destruction of the file, but may do so as a courtesy to clients. FAIRFIEL �WOODSDPC. The Honorable Nicholas A. Gradisar Mayor of the City of Pueblo March 26,2021 Page 4 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. TelephoneNoicemail 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 are 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.