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<br />LAW OFFICES OF <br /> <br />JACKSON, <br /> <br />SJOBERG, MCCARTHY & <br />711 WEST 7TH STREET <br />AuSTlNt TEXAS 78701-2785 <br />(512) 472-7600 <br />FAX (512) 480-8963 <br /> <br />WILSON, L~L.P. <br /> <br />DAVIC E. JACKSON" <br />JOHN MATTHEW SJOBERG" <br />EcMOND R. MCCARTHY. JR. <br />ROBERT WIW>ON <br /> <br />AUST'N NOTLEY AMOS <br /> <br />ELIZABETH A. TOWNSENet <br />OF" COUNSEL <br /> <br />'BOARe CERTIFlEe IN OIL. <br />GAS ANe MINERAL LAW <br />TEXAS BOARD OF LEGAL SPECIALI:zATION <br /> <br />October 8, 2003 <br /> <br />tLJCENSEC IN TEXAS AND <br />TENNESSgE <br /> <br />Mark Taylor <br />City Attorney <br />City of San Marcos <br />630 E. Hopkins <br />San Marcos, Texas 18666 <br /> <br />Via E-mail <br /> <br />Re: <br /> <br />Representation of the City of San Marcos In Connection with GBRA Negotiations <br /> <br />Dear Mark: <br /> <br />Thank you for the opportunity to make this proposal to represent the City of San Marcos, <br />Texas ("City") as Special Water Counsel, in connection with the ongoing efforts to renegotiate <br />the City's contracts with the Guadalupe-Blanco River Authority ("GBRA") for the purchase of <br />water from Canyon Lake, the City's cost in the GBRA pipeline, and the capacity allocations and <br />costs associated with the Regional Water Treatment Plant. The primary purpose of this letter is to <br />articulate for your consideration the proposed terms arid conditions of our representation, <br />including a description of the work we are being asked to undertake, and our fee arrangements, <br />including a cost estimate. <br /> <br />With respect to the fITst of these, at this time, we understand that these efforts will include <br />our providing legal counsel to City in connection with the City's renegotiation of discreet aspects <br />of its various water supplies, water transportation and water treatment contracts with GBRA as <br />partially described in the e-mails appended to this letter for reference. I further understand that <br />the City desires to deliver a counter-proposal to GBRA by mid-October, and that GBRA has <br />indicated a desire to resolve the matter by the end of the month. This time-line will require that <br />we dedicate signìficant time and attention to this matter immediately; however, if successful it <br />should also help reduce the level of our fees, as discussed below. <br /> <br />With respect to our fees, it is our customary practice to bill clients for our services at our <br />standard hourly rates. Since the mid-1990s my partner Bob Wilson and I have billed the City for <br />all legal services at a significantly reduced hourly rate of $115.00/hour. We continued this <br />practice while with our former Firm (McGinnis, Lochridge & Kilgore L.L.P.) despite regular <br />increases in our standard hourly rates by the Firm's management. At the time we left McGinnis, <br />