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Home My WebLink About7 Porter Simon Contract IncreaseAqendaItem#7TRUCKEEDONNERPublicUtilityDistriJCONSENTTo:BoardofDirectorsFrom:ShannaD.Kuhiemier,CMCDate:October03,2018Subject:ConsiderationofanIncreaseofFeesWithPorterSimon,ProfessionalCorporation________________1.WHYTHISMATTERISBEFORETHEBOARDBoardapprovalisrequiredforcontractsinexcessof$15,000.2.HISTORYTheDistrictretainedPorterSimon,ProfessionalCorporationin1981.SteveGrossjoinedtheLawOfficesofPorterSimonin1991,concentratinghispracticeinthepublicsector,management-sideemployment,andlaborlaw.Atthattime,theDistrictspecificallyretainedSteveGrossastheDistrict’sGeneralCounsel.TheDistricthasastrongandtrustingrelationshopwithMr.Gross,relyingonhisexpertise,advise,andopinionwiththelegalrealmoftheDistrict.3.NEWINFORMATIONThelastlegalfeeincreasewasimplementedin2007,almostelevenyearsago.Mr.Grossisrequestinga25%increaseinfees,whichisindicativeofaninflationaryrateoverthelasttenyears.Aswellas,settingafeeintheamountof$300anhourforlitigationservices.Litigationcostshavenotbeencontainedwithinthecontract,however,itiscommonpracticeinlawfirmstoseperategeneralservicesfromlitigation.Thefeeforthislineitemisreasonableandcompetitive.Onasidenote,theDistrict,duringthelast12years,hasonlyfiledonelawsuitandthatwassettledoutsideofcourt.Mr.Gross’knowledgeofthewaterandelectricutilitiesspanoverdecades,withhisinstitutionalknowledgeoftheDistrict,remainingatrueassettostaffandtheBoard.Inessence,thisitemisacostoflivingadjustmentinlegalfees.4.FISCALIMPACTLegalfeesarecontainedwithintheBoard’sbudgetandtheGeneralManager’sbudget.Thiswillbea25%increaseinlegalfeesandsufficientfundsexistintheFYi8andFY19Budget(s). 5.RECOMMENDATIONAuthorizetheGeneralManagertoexecuteacontractdepictingtheincreaseassociatedwithretainingPorterSimonProfessionalCorporation,SteveGrossasDistrictCounsel.Ai4::ShannaD.Kuhiemier,CMCMichaelD.HolleyDistrictClerkGeneralManager