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HomeMy WebLinkAboutOrd 257-2006 Negotiation of Attorney's Fees.pdfCITY OF ANNA, TEXAS ORDINANCE NO. 257-2006 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, PROVIDING FOR THE NEGOTIATION OF ATTORNEY'S FEES AND ASSOCIATED COSTS IN RESPONDING TO INQUIRIES BY DEVELOPERS AND OTHER COMMERCIAL LAND DEVELOPMENTS; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Anna has received multiple inquires about potential development projects and the construction of commercial and residential properties, requiring the City to expend staff and city attorney time and resources; WHEREAS, the City of Anna is a rapidly growing small city that relies on outside legal counsel for its city attorney services; WHEREAS, the City of Anna does not have a city attorney on staff, and retains an attorney on an hourly basis; WHEREAS, the inquiries about potential development issues, including those where no project is ever initiated, expends City funds and resources and causes the City and city staff to expend time and money for staff time, city attorney time and expenses, creating a significant burden on city staff, the city budget and the taxpayers; WHEREAS, to offset this burden, commercial developers who are in a position to profit from a potential project should bear, in whole or in part, actual expense incurred by the City in paying its city attorney for any assistance required due to their inquiries and in meeting with developers and representatives; WHEREAS, every person, entity, developer or other interested party shall have full access to the development ordinances and procedures adopted by the City Council; WHEREAS, this ordinance will not be used to prevent any interested person from accessing ordinances and procedures adopted by the City Council or submitting any document required or recognized under applicable procedures; WHEREAS, this ordinance will allow recovery of attorney fees associated with those proposed projects where preliminary inquiries and discussion require, in the judgment of city staff, the City to expend city funds for assistance from the city attorney; WHEREAS, this ordinance establishes authority and general procedures to obtain funds to cover the attorney costs and expenses associated with a potential project affecting the City of Anna. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT SECTION 1. AUTHORITY FOR ATTORNEY FEE AGREEMENTS The City Manager is hereby authorized to negotiate any agreements he deems appropriate to cover the City's attomeys' fees and costs related to a person or entity making inquiry with city staff about a potential development affecting the City of Anna, including but not limited to the proposed commercial development of residential and/or commercial property. The City Manager may negotiate for a pre -paid sum with that person or entity (hereinafter "developer') that is intended to cover anticipated fees and costs incurred by the City in consulting with and utilizing the services of the city attorney regarding the developer and any potential development issues. The funds paid under such an agreement will be held in a City account, to be applied to attorney's fees and expenses actually incurred by the City, and related to the developer who paid the funds. An initial amount may be subject to replenishment or other terms and conditions as may be appropriate to allow for continued fees and costs to be incurred. SECTION 2. ATTORNEY-CLIENT RELATIONSHIP WITH CITY CONFIRMED The city attorney's sole duty and relationship will be with the City and city staff. Nothing in this ordinance or any agreement may affect the attorney-client relationship between the city attorney and the City and city staff. No statements by the city attorney may be relied upon by any third -party as legal advice or as an official statement of the City. Third -parties should recognize and understand that the city attomey's sole duty is to the City and to assist the city staff, which may place the city attorney in an adverse relationship with a third -party making a payment under this ordinance. No waiver of attorney-client communication, attorney work product or other privileges is intended and no waiver may be implied or inferred. SECTION 3. ACCOUNTING OF FUNDS For each agreement negotiated pursuant to the authorizations of this ordinance, the City shall deposit the funds into an account of the City. The city attorney shall submit separate statements for time associated with a matter related to a developer who has entered an agreement made pursuant to this ordinance. The city attomey shall charge his standard fees and expenses, and shall be paid monthly by the City. City staff, if funds paid to the City are depleted and not subject to an agreement to be replenished, may negotiate for additional funds and agreements. If funds under such an agreement are depleted, and no additional funds are obtained, the city attomey shall be paid out of general funds of the City. Any unused funds attributed to the developer shall be returned at the later of the completion of any proposed project that is undertaken or the developer provides written notice to the City Manager that the inquiry of any potential project is closed and requests that all unused funds be returned. The City shall be provided sufficient time to request and receive all final bills from the city attorney, pay all bills and accounts subject to the funds, and to make an accounting of the funds, if any, to be returned. It is the intent of this ordinance that the City Manager is authorized to enter separate agreements with different developers. Each set of funds will be allocated to the developer who paid the funds and will be accounted for separately. SECTION 4. SEVERABLITY If any section or provision of this ordinance or the application of that section or provision to any person, firm, corporation, situation or circumstance is for any reason judged invalid, the adjudication shall not affect any other section or provision of this ordinance or the application of any other section or provision to any other person, fine, corporation, situation or circumstance, and the City Council declares that it would have adopted the valid portions and applications of the ordinance without the invalid parts and to this end the provisions of this ordinance shall remain in full force and effect. SECTION 5. CONFLICTING ORDINANCES REPEALED All ordinances, parts of ordinances, resolutions, or policies of the City of Anna in conflict, or to come in conflict with this ordinance are expressly repealed to the extent of such conflict. SECTION 6. EFFECTIVE IMMEDIATELY UPON PASSAGE This ordinance shall take effect immediately from and after its passage and approval, and it is so ordained. PASSED by the following vote of the City Council on this the 28th day of Februarv. 2006. AYES 5 NAYS 0 ABSTENTIONS 0 ATTEST: APPROVED — �''A � retary, Natha Wilkison ayor, Kenneth Pelham