MEMORANDUM 06-194

TO: Mayor Hornaday and Homer City Council

FROM: Walt Wrede

DATE: November 11, 2006

SUBJECT: Perkins Coie Contract for 2007

As you know, the City Council reviews the contract and compensation for Perkins Coie as part of the budget approval process every year. This year, Gordon has requested that his hourly fee be raised from $185.00 per hour to $200.00 per hour. This is the fee that the City pays for work on lawsuits that are outside of and in additional to the regular legal work provided under the base contract agreement. This fee was last raised on Jan. 1, 2005 and went from $175.00 to 185.00. The average for legal services to municipalities seems to be about $250.00 per hour. Gordon is requesting no change to the monthly contract fee for general legal work. That amount is $7,650 per month.

It is my view that the firm of Perkins Coie continues to perform very well for the City. I also believe the requested hourly rate remains below the standard for legal services charged to municipalities in Alaska.

RECOMMENDATION: Approve Resolution 06-____ and set the 2007 compensation for Perkins Coie at:

$7,650 / Monthly fee for general governmental legal services

$200.00 per hour / For legal work outside of the base contract (lawsuits)