Commission approves retainer for oil-and-gas counsel at $450/hour, $10,000 cap

The Traverse City City Commission on March 3 approved a retainer with attorney Kevin Schumacher of Glass & Reed, McLean, Campbell & Schumacher for specialized oil-and-gas legal services at a rate of $450 per hour and a not-to-exceed annual cap of $10,000.

City staff said the arrangement is a retainer rather than a fixed-term contract because the city only occasionally needs specialized oil-and-gas counsel. The retainer is meant to ensure the city can reach an available specialist quickly when questions arise, staff said.

Commission discussion focused on the contract structure and rate. "If they were gonna want to change their rates, we'd have to come back to you for that," a staff member said during the discussion; commissioners noted the $450 rate compares favorably with past bills from 2010. The city attorney budget will cover the expense.

Commissioners also asked whether the agreement locks in duration at the stated rate; staff said any rate change would require further commission approval. Staff added that the retainer will be used for matters such as title and mineral-rights questions related to a pending property acquisition near Brown Bridge.

The motion to waive competitive bidding and approve the retention was moved and supported on the consent calendar and carried with a voice vote.

Funding and next steps: staff indicated funds are available in the city attorney budget and said the retainer is ongoing; staff will return to the commission if the firm requests a rate change.

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