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<br />17. <br /> <br />KIRKENDALL, FROST & ALLEN <br /> <br />A PROFESSIONAL LIMITED LIABILITY COMPANY <br />ATTORNEYS AT LAW <br /> <br />W.C. KIRKENDALL" <br /> <br />A.J. SAEGERT (1921-1991) <br /> <br />lMES S. FROST~ <br /> <br />113 West Gonzales Street <br />Seguin, Texas 78155 <br /> <br />L.F. SAEGERT (1921-1974) <br /> <br />L£M B. ALLEN, JR. <br /> <br />O.E. THRELKELD (1904-1984) <br /> <br />Tel. 830-303-0404 <br />Fax 830-303-8584 <br /> <br />. Medialor <br />~Board Certified - Civil Trial Law <br />Texas Board of Legal Specialization <br /> <br />March 2, 2004 <br /> <br />Mark B. Taylor, Esq. <br />City Attorney <br />The City of San Marcos <br />630 E. Hopkins <br />San Marcos, Texas 78666 <br /> <br />Re: Post Road Paving and Drainage Improvements <br /> <br />Dear Mr. Taylor: <br /> <br />Thank you for retaining us to represent the City of San Marcos (the "City") in connection <br />with the above-referenced matter. <br /> <br />Please read this letter carefully. It describes the terms and conditions under which we will <br />represent the City concerning the above-referenced matter. Our policy requires that each client sign <br />a copy of this letter agreeing to the terms and conditions described below before we can engage in <br />representation. The terms and conditions of our engagement are as follows: <br /> <br />Fees <br /> <br />1. Our fees for legal services are based primarily on the hourly rates for each lawyer <br />and assistant at the time the services are rendered. Our current hourly rates are as <br />follows: $200.00 for Kirkendall and Frost, $175.00 for Lem Allen, Jr., and $50.00 <br />for support staff personnel. We review these hourly rates periodically and adjust <br />them if appropriate. However, we agree that we will not increase our hourly rates for <br />one year from the date we are first retained. <br /> <br />2. It is our policy to bill clients for fees and out-of-pocket expenses monthly. Each <br />lawyer and assistant records the time required to perform services, and these time <br />records are the basis for the bills. The bills will describe services performed, by <br />whom performed, and the expenses incurred. For large expenses, we may request <br />that the supplier bill you directly. Examples of out-of-pocket expenses for which we <br />would bill you include certified mail, first-class mail exceeding $1.00 per item, <br />