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Board approves amended legal services terms with 3‑year cap after debate over automatic 5% increases
Summary
Board members debated an amendment to a special‑counsel agreement that originally allowed a 5% annual automatic fee increase. After discussion and concerns about long‑term escalation and outreach by counsel to property owners, the board approved the amendment with a compromise capping the 5% adjustments after three years for pending litigation.
The board considered and then approved an amendment to an as‑needed special counsel contract (agenda item A12) on April 21 after members voiced concerns about an automatic 5% annual fee adjustment in perpetuity.
Councilwoman Hanowicz had pulled the item to ask why the agreement included a 5% automatic annual adjustment that could compound year after year. Campbell McLean, a partner with GrayRobinson, said the firm and market have changed and that current prevailing rates for eminent domain and related services have increased; the firm described outreach practices used by some eminent‑domain law firms and apologized for a recent marketing letter that reached property owners while the firm was under contract for agency work.
Nut graf: The board approved the contract amendment but amended the terms on the meeting floor to limit the automatic 5% annual adjustments to three increases (i.e., three years) for any existing pending litigation; after that cap, the board would revisit rates if needed. The motion passed unanimously.
During discussion McLean said the firm solicits some property‑owner contacts via third‑party mailers, and that when the agency brought the outreach to the firm’s attention the firm rescinded the mailing and took steps to avoid conflicts. He said the requested market adjustment reflected higher prevailing mediator and outside consultant rates and the firm’s view of current market pricing.
Commissioners expressed concern about open‑ended escalation and the risk that a long litigation could lock the agency into inflated fees; Commissioner Wustel moved an amendment to cap the 5% annual adjustments after three years for pending litigation, a change the firm accepted for the board’s consideration. The board passed the amended contract and authorized staff to proceed.
Ending: Staff will finalize the first amendment reflecting the three‑year cap for pending litigation and proceed with contract administration for the firm as needed.
