04-28-2014 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 28, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 11 of 13 (13. INVESTMENT POLICY, RESOLUTION NO. 6399, Continued) Olson noted the final suggestion of the committee was to change the depository of the semi-annual tax settlements received from Hennepin County. Currently those payments are wired to the First Bank of the Lakes. On the day the funds are received, the total amount deposited at the bank exceeds the amount of the City’s FDIC insurance and collateral with the bank. Olson stated effective with the next tax settlement the funds will instead be wired directly to the 4M fund. Olson recommended the City Council adopt the resolution amending the City’s investment policy. McMillan thanked Charlie Kelley and Tom Olson for helping the City out on its investment policy. Levang moved, Printup seconded, to adopt RESOLUTION NO. 6399, a Resolution to Amend the City of Orono Investment Policy. VOTE: Ayes 4, Nays 0. 14. LEGAL SERVICES AGREEMENT Loftus noted the City Attorney has proposed a new legal contract for the Council’s consideration tonight with an increase in rates for 2015. The main reason for the request is that their hourly rates have remained flat since 2009. Mattick stated their rates have remained flat for the last six years and that they are not proposing the rate increase go into effect in 2014. Mattick stated they are making the request now because the City will be undergoing its annual budget process. Mattick noted his law firm does not build automatic escalators into their contracts and that they have attempted to keep the rates flat for a number of years, which is something they are very proud of. Mattick noted his law firm’s operating expenses have not remained flat for six years and that it is warranted after six years. Printup asked if this is a one-year agreement. Mattick stated it is. Dennis Walsh, 1354 Rest Point Circle, stated he appreciates the letter but that in his view the city attorney should bring a real argument to the table justifying the rate increase. Walsh stated simply because the Attorney’s rates have not been raised in six years is not a good argument and neither is the fact that he does not have automatic increases in his contract. Walsh stated a better argument would be whether he is doing a good job for the City. Walsh stated in his view $155 an hour is plenty, which brings up the broader issue of a vote of confidence in general. Walsh stated he does not have confidence in the legal advice being given by the City Attorney given the number of lawsuits the City is currently involved in that have cost the City a lot of money. Walsh indicated the non-enforcement of different issues has also cost different individuals legal fees that are not getting these things enforced.