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City of Fairmont’s legal costs adding up

FAIRMONT — The cost of legal services for the city of Fairmont has been a topic of debate for years. Some support having an in-house counsel for the convenience and timeliness an on-site employee can provide, while others argue that legal services can be provided at a lower cost by an outside attorney under contract.

The discussion heated up again six months ago when the city’s then in-house attorney, Elizabeth Bloomquist, entered into a separation agreement with the city after two council members — Tom Hawkins and Randy Lubenow– told her that hiring outside counsel would be on an upcoming council agenda.

Since Bloomquist’s departure on May 15, the city has been paying the Martin County Attorney $150 per hour to provide criminal legal services and Flaherty & Hood, a Minneapolis law firm, $145 per hour to handle civil matters on an interim basis.

At a council work session Monday, Paul Hoye, city finance director, revealed the tally for legal services from June through September. During those four months, the city spent $16,252.30 per month, about $65,000, for criminal and civil legal services. The amount budgeted for 2019 was $15,135.25 per month, about $60,500, for four months.

Hoye alerted the council that the October billing would bring a much higher legal bill because of the city’s need for additional legal services on some divisive issues. The agenda for the upcoming City Council meeting to be held Monday shows a payment for October to Flaherty & Hood for $23,800 and one to the Martin County Attorney for $11,800.

The city also has continued to pay Bloomquist, a 30-year city employee, as per her separation and release agreement and an appendix to that agreement, both of which were obtained by the Sentinel through a data request.

Her annual salary in 2019 was $101,023, with a benefit package of $27,321. The separation agreement upheld her employment contract, which allowed Bloomquist to remain employed by the city but on a six-month leave from May 15 through Nov. 15.

The appendix agrees to pay Bloomquist her salary for an additional six months, from Nov. 16 through May 15, receive a city contribution to and benefits from the city-provided health insurance plan until the age of 65, and be paid for accumulated vacation and sick leave hours up to Nov. 15.

Those compensations are in consideration for Bloomquist voluntarily waiving her right to pursue the city and its affiliated bodies, officials and employees from any and all grievances, liability and damages related to her employment and separation.

After six months of interim legal services, the council is turning its attention to long-term provisions.

Monday’s council agenda includes a proposal for a five-year contract with the Martin County Attorney at a rate of $75,000 per year, beginning Dec. 1, with a 2.5 percent increase annually beginning in 2021. This amount does not include filing fees, witness fees, subpoena fees, transcription costs, travel expenses, investigation costs, reproduction costs, postage and printing costs.

Flaherty & Hood and two other metro area law firms submitted three-year bid proposals for civil legal services, but the council majority consensus at the work session was to reject all three, citing a desire to request bids from Mankato area law firms as well as wait until an interim city administrator is hired.

At a special meeting Nov. 15, the council voted to enter into a separation agreement with then-city administrator Mike Humpal who had been on paid administrative leave since Oct. 14. Troy Nemmers, city engineer/public works director, has been serving as acting city administrator, and the council will discuss Monday the possibility of hiring Mark Sievert, who is retired and currently living in the Rochester area, as interim city administrator. Sievert was recommended by the South Central Service Cooperative.

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