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HomeMy WebLinkAbout11236Docusign Envelope ID: 4CAAA540-1032-8 D6A-82 E4-7 D BAB F89A65B ORDINANCE NO. 11236 AN ORDINANCE APPROVING THE COMPENSATION OF FAIRFIELD & WOODS, P.C. RELATED TO REPRESENTATION OF THE CITY IN PUBLIC UTILITIES COMMISSION PROCEEDING NO. 24A-0442E PURSUANT TO THE ENGAGEMENT AGREEMENT, APPROVING THE CORRESPONDING CONFLICT OF INTEREST WAIVER, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Compensation set forth in the Engagement Agreement with Fairfield & Woods, P.C., a copy of which is attached hereto, is hereby approved. SFCTION 2_ The Conflict of Interest Waiver attached hereto, having been approved as to form by the City Attorney, is hereby approved. The Mayor is hereby authorized to execute the Waiver for, and on behalf of the City and the City Clerk is authorized to affix the seal of the City thereto and attest the same. SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Waiver to implement the policies and procedures described herein. SECTION 4. This Ordinance shall become effective immediately upon final passage. Action by City Council: Introduced and initial adoption of Ordinance by City Council on July 13, 2026. Final adoption of Ordinance by City Council on July 27, 2026. Signedby: Docu au President of City Council Docusign Envelope ID: 4CAAA540-1032-8 D6A-82 E4-7 D BAB F89A65B Action by the Mayor: P Approved on 07/29/2026 ❑ 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 Docusignedby: City Clerk Docusign Envelope ID: 4CAAA540-1032-8 D6A-82 E4-7 D BAB F89A65B City Clerk's Office Item # R6 COUNCIL MEETING DATE: July 27, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Carla Sikes, City Attorney SUBJECT: AN ORDINANCE APPROVING THE COMPENSATION OF FAIRFIELD & WOODS, P.C. RELATED TO REPRESENTATION OF THE CITY IN PUBLIC UTILITIES COMMISSION PROCEEDING NO. 24A-0442E PURSUANT TO THE ENGAGEMENT AGREEMENT, APPROVING THE CORRESPONDING CONFLICT OF INTEREST WAIVER, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME SUMMARY: This Ordinance approves the compensation set forth in the Engagement Agreement with Fairfield & Woods PC to represent the City of Pueblo before the Public Utilities Commission in Proceeding No. 24A-0442E, Public Service Company of Colorado's Just Transition Solicitation. It also approves the corresponding Conflict of Interest Waiver and authorizes the City to execute the Waiver. PREVIOUS COUNCIL ACTION: Not applicable. BACKGROUND: Pursuant to Section 6-7 of the City Charter, special council is retained solely by the City Attorney but compensation is approved by City Council. The law firm of Fairfield & Woods PC is being retained to represent the City of Pueblo before the Public Utilities Commission in Proceeding No. 24A-0442E, Public Service Company of Colorado's Just Transition Solicitation. Utility regulation is a specialized area of law for which Fairfield & Woods, PC has expertise. It is in the best interest of the City to retain Fairfield and Woods, PC for this matter. Fairfield & Woods, P.C. previously represented another client in this case. That representation is unrelated to the City's claims in this case and has concluded. The Conflict of Interest Waiver sets forth the interests of the parties, notifies the City of potential conflicts and allows the City to waive the potential conflicts. Docusign Envelope ID: 4CAAA540-1032-8 D6A-82 E4-7 D BAB F89A65B FINANCIAL IMPLICATIONS: This firm's standard hourly billing rates for the attorneys expected to work on the engagement is $585.00/hour. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Not approve Ordinance in which case a different attorney will be retained. RECOMMENDATION: Approve the Ordinance. ATTACHMENTS: 1. Engagement Letter 2. Rev Conflict Waiver Letter - City of Pueblo and Westside Property Investment Company - Proceeding No. 24A-0442E 6 Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 Mark A. Davidson (303) 894-4425 mdavidson@fwlaw.com June 10, 2026 Via DocuSign: csikes(rc�7,pueblo.us Carla Sikes, City Attorney City of Pueblo 1 City Hall Place, Third Floor Pueblo, CO 81003 Re: Public Service Company of Colorado - Proceeding No. 24A-0442E Engagement of Fairfield and Woods, P.C. Dear Ms. Sikes: Thank you for selecting Fairfield and Woods, P.C., as attorneys for 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 the City. The City is retaining Fairfield and Woods, P.C. ("We", "Us", "Our"), as its attorneys to represent the City for the purpose of advocating for the City and the ratepayers within the City of Pueblo in Public Service Company of Colorado's Just Transition Solicitation Proceeding No. 24A- 04442E. 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 the City's account. My current billing rate is $585.00 per hour. From time to time, other attorneys or paralegals may assist. Their billing rates will vary. We reserve the right to adjust our hourly rates from time to time and will inform the City of any changes in the rates set forth herein. Due to our longstanding relationship, we are not requesting a retainer at this time, but we reserve the right to require an advance in the future. The City will be invoiced monthly for our fees and out-of-pocket costs. We reserve the right to require a retainer as a condition of continued representation. If there is any balance of the retainer remaining after all of our invoices have been paid, it will be refunded to the City at the conclusion of this engagement. 1801 California Street ■ Suite 2600 ■ Denver, Colorado 80202 t (303) 830-2400 ■ f (303) 830-1033 ■ www.fwlaw.co Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 2 In performing this work, we 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 necessary for the City 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 the City to be confident and enthusiastic about our services and our representation. Please do not hesitate to contact us to let us know how we can better serve the City, 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 to me via DocuSign. We look forward to working with you Sincerely, s/ Mark A. Davidson Mark A. Davidson Fairfield and Woods, P.C. MAD:sym Attachment cc: Mayor Heather Graham, City of Pueblo, Colorado Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 3 I have read and hereby agree to the terms of the foregoing engagement letter and attached Policies and Procedures Addendum. City of Pueblo Company Name Date: 07/30/2026 By: Heather Graham Title: Mayor Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 4 Policies and Procedures Addendum REQUIRED FEE DISCLOSURE: AS REQUIRED TO BE SET FORTH BY C.R.S. § 6-1-737, WE ADVISE THE COMPANY THAT THE TOTAL PRICE FOR LEGAL SERVICES TO BE PROVIDED UNDER THIS ENGAGEMENT LETTER CANNOT BE PRECISELY DETERMINED AT THIS TIME DUE TO THE VARIABLE NATURE OF LEGAL WORK. TIME SPENT BY OUR ATTORNEYS, PARALEGALS, AND OTHER STAFF AND REIMBURSEMENT OF EXPENSES INCURRED DURING THE COURSE OF REPRESENTATION WILL BE THE BASIS FOR THE TOTAL PRICE. THE HOURLY RATES FOR OUR ATTORNEYS, PARALEGALS, AND (WHERE APPLICABLE) OTHER STAFF ARE SET FORTH ELSEWHERE IN THIS ENGAGEMENT LETTER AND/OR OUTLINED IN OUR INVOICES. THE TIME SPENT AND EXPENSES INCURRED WILL BE SET FORTH ON INVOICES THAT WILL BE SENT TO THE COMPANY ON A MONTHLY BASIS. THE TOTAL PRICE OF OUR LEGAL SERVICES AND THE AMOUNT OF OUR EXPENSES INCURRED ON THE COMPANY'S BEHALF WILL VARY AND MAY INCREASE OR DECREASE ON A MONTH -TO -MONTH BASIS DEPENDING ON THE NEEDS AND PROGRESS OF THE MATTER. Expenses and Disbursements: We invoice for out-of-pocket expenses separate from fees for legal services. The Company is responsible for out-of-pocket disbursements, such as filing fees, hand deliveries outside downtown Denver, overnight courier service, and travel expenses. We do not generally 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 may outsource the copying project to reduce the cost. We do not normally advance out-of-pocket costs of more than $1,500.00, and if we receive a bill for such services, we may ask that the Company pay it directly to the vendor. Billing and Payment: We will invoice monthly for our legal fees, expenses, and disbursements. Our invoices will itemize time and expenses. Our invoices are due upon receipt. Unless specifically provided in our Engagement Letter, the Company's obligation to pay our invoices when due is not contingent on the result achieved. We cannot and do not guarantee any particular result. For outstanding invoices, a late payment charge of one percent (1%) per month will be assessed on the last day of each month against all unpaid fees and costs that were billed before the beginning of that month. In the event we must commence legal action to collect any sums owed, the Company agrees to pay the fees and expenses, including reasonable Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 5 attorneys' fees, that we incur, regardless of whether the matter proceeds in court. Should the Company ever have questions about our invoices, please do not hesitate to contact us. File Retention and Destruction: The Company agrees that any materials in our file on this matter may be destroyed, at our sole discretion, 24 months after the matter is concluded or our representation of the Company ends ("Retention Period"), provided that there are no pending or threatened legal proceedings known to us that relate to the matter. At any time prior to the expiration of the Retention Period, the Company may request in writing the return of any or all materials in our file. (see also Client Documents and Data, below). We are not required to provide notice to the Company prior to destruction of our file. Client Documents and Data: (a) Cloud Storage. We will use third -parry cloud services for the Company's data and the data of other parties during and after our representation. Cloud services do not guarantee immunity from invasion or misuse, but the cloud services we use have state-of-the-art data protections and provide appropriate security protections for the confidentiality of data without significant risk of inappropriate access. We require that those cloud services employ the latest standards of data encryption, password protection, access verification, firewalls, antivirus software, intrusion detection, and system monitoring, as well as assurance of adherence to applicable data privacy and security laws. The Company's acceptance of this Agreement confirms its consent to our using such cloud services for its data. (b) Artificial Intelligence. We may use third -parry artificial intelligence ("Al") services. That will include information in our files and databases that may include the Company's data and may involve transmission to third parry providers of Al services so that appropriate searches, research, or output can be generated. Such data may also be used to improve the service, but it will not be used to train an Al model, appear in an output result that will be available to third parties, or be retained by a third -parry Al provider. We review the Al providers that we engage to ensure that they have technical and administrative controls in place to maintain the confidentiality and security of information. We require that they stay abreast of security and other developments to continue such protection. That said, Al is evolving rapidly, so it is not possible to anticipate how potential intruders and hackers will use technological or other advancements to infiltrate or compromise data systems, including those containing or using Al. Therefore, we cannot assure that our use of Al will be immune from unauthorized access or misuse. The Company's acceptance of this Agreement will confirm its consent to our using such Al for and in connection with our representation. If the Company does not consent, please strike this subparagraph and initial that change in the margin. Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 6 (c) Data Privacy. The applicable Rules of Professional Conduct (and any other applicable attorney ethics rules, collectively as applicable, "Ethics Rules") mandate various practices applicable to client confidentiality. Ethics Rules also inform many of our broader data privacy practices. In addition, we undertake reasonable measures to handle client information in compliance with data privacy laws. Such measures include technical, organizational, and other controls. Our practices are constantly evolving in response to the data privacy and cybersecurity landscape at large, including proactive steps to handle the Company's data in a lawful and prudent manner. Our legal basis for processing client data includes performance of a contract (such as the one created by this Engagement Letter), satisfaction of legal obligations (such as those provided by Ethics Rules or in response to court orders), and in furtherance of our legitimate business interests (such as protecting client interests, ensuring professional standards, and other initiatives — all of which remain subject to the terms of this Engagement Letter). Moreover, the Company's execution of this Engagement Letter demonstrates its consent for data processing of many of our activities. Please reach out if you have additional questions about our legal basis for processing. Like most modern businesses, we make use of third -parry data processors and vendors to achieve specific business functions. These relationships may be governed by various data privacy laws. We will make reasonable efforts to ensure compliance with applicable law. Please note that many of these third parties have their own policies applicable to data privacy. (d) Data Breaches. If there is a data breach involving your client information, we will make reasonable efforts, in accordance with applicable law and Ethics Rules, to investigate the breach and endeavor to react appropriately. Such efforts may include attempting to avoid or mitigate any harm to our clients and following the procedures that we is bound to under data privacy laws. (e) Requests for Copies. If the Company requests a copy of a portion or all of our files for this engagement, whether before or after our representation ends, and if a substantial amount of material is being provided, we may invoice for the reasonable costs of copying, assembly, and delivery of such materials (see also Billing and Payment, above). Termination: We have the right to terminate our representation when termination is required or allowed under the Ethics Rules, including if the Company fails to pay our fees or expenses. Upon termination of our representation, the Company shall be immediately responsible for all fees and expenses through the effective date of termination. Corporate Transparency Act: The federal Corporate Transparency Act, which is a part of the Anti -Money Laundering Act of 2020, requires that certain entities (both existing and newly formed): (1) report to the Financial Crimes Enforcement Network ("FinCEN") of the U.S. Department of the Treasury the identity and other information about their beneficial owners Docusign Envelope ID: 131 D497C5-6080-804B-815E-D73EF31 D02E1 i City of Pueblo June 10, 2026 Page 7 and the persons who create them; and (2) update and correct their reports to assure they are current, complete, and accurate ((1) and (2), collectively, "FinCEN Reporting"). The Company is solely responsible for FinCEN Reporting. Regardless of whether we advise or prepare documents as to the Company's structure or ownership, we will not be responsible for FinCEN Reporting or for storing or collecting information for the purposes of FinCEN Reporting. If one or more of our attorneys, paralegals, or staff members is listed as a Company applicant in the Company's beneficial ownership report to FinCEN, their status as such will not alter the Company's responsibility for FinCEN Reporting. The responsibility of our attorneys, paralegals, and staff who may act as a Company applicant is strictly limited to reporting and updating their own personal information with FinCEN. Governing Law and Venue: Our representation of the Company 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 the Company shall be in the state or federal courts in Denver, Colorado, and the Company and we both consent to the jurisdiction of those courts. Attorney -Client Privilege: All written and verbal communications between the Company representatives and us in connection with this engagement are confidential and protected by the attorney -client privilege. To maintain this privilege, it is important that Company representatives do not discuss or disclose the communications or advice given by us with any third parties. The disclosure of communications or advice we give in connection with this engagement to parties outside the attorney -client relationship may waive the privilege. If the Company has questions about what information may be shared in connection with this engagement, please contact us prior to sharing any information. More Information About the Firm: Our website www.fwlaw.com, provides additional information about our services, including numerous articles we have written on various legal subjects, as well as contact information. We would be happy to discuss any other legal needs the Company may have. Docusign Envelope ID: 3D1530C2-F962-804C-812D-FE1015E30A29 Mark A. Davidson (303) 894-4425 mdavidson@fwlaw.com July 30, 2026 Via DocuSign: csikes&pueblo.us Carla Sikes, City Attorney City of Pueblo 1 City Hall Place, Third Floor Pueblo, CO 81003 Re: Conflict of Interest Waiver — PSCo PUC Application Proceeding No. 24A-0442E Dear Ms. Sikes : We are pleased to represent the City in the above matter. We are, however, compelled to advise you that Fairfield and Woods, P.C., in addition to representing the City of Pueblo, Colorado (the "City") in this matter, has also represented the Westside Property Investment Company ("Westside"). In order for us to represent the City in addition to Westside, we needed to determine that there are no actual conflicts of interest. Because at this time the interests of Westside are similar and there appears to be no actual conflicts of interest with the City, my firm and I are able and willing to represent the City in the above -referenced matter provided that a clear understanding is reached as to the nature of the representation and your responsibilities in regard thereto. Should circumstances arise during the course of our representation of Westside along with the City as a result of, among other things, an actual conflict of interest that would require or make it desirable that Westside or the City obtain other counsel to represent them, Westside would like us to continue to represent it in the above -referenced matter and other matters, including any future matters whether or not they arise out of the same or similar circumstances. At this time, Westside is not actively engaged in pursuing relief in this proceeding. We are, therefore, willing to undertake your representation with the understanding that you will not disqualify or attempt to disqualify our representation of Westside should any conflict of interest develop or should it be necessary or desirable for you to obtain other counsel. We understand that attorney's fees and costs incurred in representing the City in the above -referenced matter will be billed to and paid by the City. We will invoice the City separately for work done in this proceeding going forward. Your representation by us is contingent upon your consent, understanding, and agreement to the following terms: 1. A similarity of interests exists between the interests in the above -referenced proceeding of Westside and the City. In the event of a conflict between the interests of Westside or the interests of the City, as we may determine, my firm and I may withdraw our representation of the City with the conflict upon reasonable notice. In such case, you will be required to retain a new attorney in order to continue your participation in the above -referenced matter. If my firm and I withdraw our 1801 California Street ■ Suite 2600 ■ Denver, Colorado 80202 t (303) 830-2400 ■ f (303) 830-1033 ■ www.fwlaw.co Docusign Envelope ID: 3D1530C2-F962-804C-812D-FE1015E30A29 City of Pueblo July 30, 2026 Page 2 representation of the City, the City agrees that my firm and I can continue our representation of Westside in this and other matters including any related matters; 2. The City specifically agrees not to seek to disqualify Westside's attorneys from their continued representation of it in this matter or in any related matters; 3. The City is required to fully and completely cooperate with any and all requests made upon them by us in connection with this matter. This includes a complete and truthful disclosure of any and all information that may be possessed and the City agrees to provide any and all documents pertinent to this case. This letter confirms that your consent, understanding, and agreement to these terms is given freely and voluntarily, that you have had an opportunity to discuss this with counsel, and that you have given due and full consideration to the potential conflicts of interest that could arise from the joint representation by counsel of the City and Westside in this matter. If you have any questions concerning the matters addressed herein, please contact me. Please acknowledge your consent, understanding, and agreement of these terms and the attached Policies and Procedures Addendum by executing a copy of this letter and returning it to me. Your acknowledgment of this letter will be an acceptance by you of the terms contained herein. Kindly indicate your consent by signing below and returning a signed copy to us via DocuSign. As always, feel free to call or email me with any questions. Very truly yours, s/MarkA. Davidson Mark A. Davidson Fairfield and Woods, P.C. MAD:sym cc: Mayor Heather Graham, City of Pueblo, Colorado AGRE QQAND ACCEPTED Heather Graham, Mayor City of Pueblo Date: 07/30/2026