Mosier officials form intergovernmental group and retain law firm to pursue funding after train derailment

Mosier officials on July 28 agreed to form an intergovernmental agreement (IGA) to coordinate legal and funding work tied to the Mosier train derailment, and they voted to retain the law firm Harrang Long Gary and Rudnick to help find and manage external funding and provide legal advice.

Attorney Bill Gary of Harrang Long Gary and Rudnick explained the mechanics of creating an IGA and outlined two broad funding approaches: identifying grants and external financial assistance up front, or using a contingent-fee arrangement. He warned that contingent fees can require turning over a large percentage of any reparations and can reduce the client’s control over the process. Gary said the first practical task is finding money to pay for the inquiry and that he will prepare a budget for the IGA. He also noted that, under ORS 190, two public bodies may consolidate services, and that the Mosier school—being a non-governmental body—will be treated differently in the IGA.

Gary told the assembled boards the IGA should set unanimous process rules for interim work but that each entity would be free to settle its own claim at the end of the process. He listed other needs for the IGA, including an economist and an environmental-law expert, and said funds secured for the IGA would need to be recorded properly; funders might request reimbursement. He advised that if an offer is presented by Union Pacific Railroad, each participating entity could accept or reject that offer on its own.

Mosier Judge Steve Seymour asked whether the agency could borrow to seed the effort; he suggested community members might be willing to loan funds. Terry Moore, one of the advisors introduced at the meeting, said the IGA should not create liabilities that members cannot pay and reported the firm was willing to work without immediate compensation until funding is located. Mike Gleason, another advisor, said that if funding cannot be found within a month, it would likely indicate the funds do not exist.

At the City Council public meeting portion (opened at 7:45 p.m.), Council President Emily Reed moved to adopt the IGA; Councilor Derek Hiser seconded and the motion passed unanimously. Councilor Bill Akin moved to appoint Emily Reed, Mayor Arlene Burns and City Manager Kathy Fitzpatrick as the City’s representatives to the IGA; Councilor Lacy Gries seconded and the appointment passed unanimously. Reed then moved to retain the law firm Harrang Long Gary and Rudnick, contingent on City Attorney approval; Gries seconded and the motion passed unanimously.

The joint meeting reconvened later and the Mosier Fire District and Mosier School Board reported they would approve the IGA and the letter of engagement contingent on their attorneys’ approval. The joint meeting adjourned at 8:20 p.m.

Votes at a glance: the City Council adopted the IGA (motion moved by Council President Emily Reed, seconded by Councilor Derek Hiser) — vote: 5 yes, 0 no, 0 abstain (Mayor Arlene Burns; Council President Emily Reed; Councilor Derek Hiser; Councilor Lacy Gries; Councilor Bill Akin; Councilor Peny Wallace was excused). The City appointed Emily Reed, Arlene Burns and Kathy Fitzpatrick to represent the City on the IGA (motion moved by Councilor Bill Akin, seconded by Councilor Lacy Gries) — vote: unanimous. The City voted to retain Harrang Long Gary and Rudnick, contingent on City Attorney approval (motion moved by Council President Emily Reed, seconded by Councilor Lacy Gries) — vote: unanimous.

The next procedural step recorded at the meeting is for the law firm to prepare a budget for the IGA work and for participating entities’ attorneys to review and approve the letter of engagement. The meeting record was signed and attested on August 17, 2016.