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LEGAL SERVICES AGREEMENT (27) LEGAL SERVICES AGREEMENT THIS AGREEMENT is made on the 24th day of September 2004, by and between the CITY OF CLEARWATER, P.O. Box 4748, Clearwater, Florida 33758-4748 (the "City") and the law firm of MILLER, BALIS & O'NEIL, P.C., 1140 Nineteenth Street, N.W., Suite 700, Washington, D.C. 20036 ("Counsel"). WIT N E SSE T H: WHEREAS, the City wishes to retain Counsel to serve as Counsel to the Clearwater Gas System. NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, the parties do hereby agree as follows: SECTION 1. AUTHORIZATION TO PROCEED AS COUNSEL. Counsel is hereby authorized to provide services as described in this Agreement and for the professional fees described in this Agreement. SECTION 2. SCOPE OF SERVICES. Counsel hereby agrees to provide its professional services for the Clearwater Gas System of the City of Clearwater. SECTION 3. TERM. The term of this Agreement shall be for one year, beginning September 24, 2004 and expiring September 30, 2005. SECTION 4. PROFESSIONAL FEES FOR SERVICES. The City and Counsel agree to a rate of $290 per hour for William T. Miller and the other principals in the law firm, associate time will be billed at hourly rate ranging from $140.00 - $265.00 per hour based on experience, law clerk time will be billed at a rate of $110.00 per hour, and legal assistants $95.00 per hour. These fees will continue for the term of this Agreement unless Counsel gives the City sixty (60) days notice of an increase in fees, in which case such increased fees will be substituted for the above- designated fees. Professional fees for services shall not exceed $25,000.00 for the term of this Agreement. SECTION 5. COMPENSABLE EXPENSES. Reimbursement of expenses shall be made by the City to the firm for reasonable out-of-pocket expenses as determined by the City Attorney without markup, including but not limited to long distance calls and facsimiles, copying or reproducing documents, postage, court costs, parking costs and travel incurred by Counsel in performance of the duties hereunder. Travel and per diem costs as well as auto travel expenses shall not exceed that which is available to City of Clearwater employees. SECTION 6. INDEMNIFICATION AND INSURANCE. Counsel agrees to protect, defend, indemnify and hold the City and its officers, employees and agents free and harmless from and against any and all losses, penalties, damages, settlements, costs, charges, professional fees or other expenses or liabilities of every kind and character arising out of or due to any negligent act or omission of Counsel, its employees, agents and subcontractors in connection with or arising directly out of this Agreement and/or the performance hereof. Without limiting its liability under this Agreement, Counsel shall procure and maintain during the life of this Agreement professional liability insurance in an amount in excess of $1,000,000. This provision shall survive the termination of this Agreement. SECTION 7. CONFLICT OF INTEREST. It is understood by the City and Counsel that Counsel is not aware of any clients of the firm that currently present any conflict between the interests of the City and other clients of Counsel. If any potential conflict of interest arises during the time Counsel is representing the City, Counsel will promptly inform the City. The City is under no obligation to agree to permit the conflict representation. SECTION 8. CONSTRUCTION AND AMENDMENTS. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. This Agreement may be amended only by a writing duly entered into by the City and Counsel. SECTION 9. CANCELLATION OF AGREEMENT. The City may cancel or terminate this Agreement upon ten days advance written notice to Counsel. In the event of cancellation, Counsel shall immediately cease work hereunder and shall be reimbursed for eligible and documented reimbursable expenses incurred prior to the date of cancellation. Further, it is understood and agreed between the City and Counsel that William T. Miller will be the lead attorney assigned by the firm to provide the services contained herein. The City in its absolute discretion may immediately terminate this Agreement upon written notice to the firm if the services of this attorney are unavailable to the City. Counsel reserves its right to terminate its representation of the City, subject to the limitations set forth in the Rules of Professional Conduct of the District of Columbia Bar. IN WITNESS WHEREOF, the City and Counsel have executed this Agreement as of the date first written above. CITY OF CLEARWATER, FLORIDA Bytf2~;~. ~--X William B. Horne II City Manager Approved as to form: JL K. Akin City Attorney Attest: MILLER, BALIS & O'NEIL, P.C. BY(~A~ 7 ~ William T. Miller President C:\Documents and Settings\wtm\Local Settings\Temporary Interr~t Files\OLK2\mbo agreement.DOC