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<br /> ( D7C- <br /> Mr. Mark Taylor <br /> June 17, 1996 <br /> Page 4 - <br /> defense group, would be the City's potential to guide, if not <br /> control, the activities of the group in terms of the overall <br /> strategy and responses in the litigation. For example, in its <br /> leadership role the City might be able to convince the, group to <br /> follow the City's lead on conservation measures which may not have <br /> occurred to date, thereby increasing the beneficial impact of those <br /> ~ conservation efforts to enhance and protect the springflows. If <br /> the City is interested in pursuing the organization of such a group <br /> we would be happy to discuss some ideas of how to accomplish it. <br /> In summary, we would propose to the City the following fee <br /> proposal: <br /> Effective January 1, 1996, in connection with all work <br /> performed on behalf of the City in connection with the latest ESA <br /> lawsuit filed by the Sierra Club and styled Sierra Club v. San <br /> Antonio and San Antonio Water System, et al¡ Civil Action No. MO- <br /> 96-CA-097 i United States District Court, Western District of Texas, <br /> Midland/Odessa Division, McGinnis, Lochridge & Kilgore would <br /> propose to provide legal services to the City at the lesser of our <br /> (i) normal hourly rates, or (ii) a blended hourly fate of $175.00 <br /> per hour for all legal services rendered. In addition to fees for <br /> legal services, McGinnis, Lochridge & Kilgore would also bill the <br /> City for actual out-of-pocket expenses incurred in connection with <br /> the representation, as we have done in the past. <br /> I hope that the City will be pleased with this proposed <br /> alternative fee arrangement. Should there be any questions or if <br /> I can provide further information please let me know. <br /> If this arrangement is agreeable, I would appreciate it if you <br /> could have the appropriate representative of the City execute the <br /> "Acknowledgement" at the conclusion 'of the letter on the attached <br /> copy and returning it to my office for my files. <br /> Again, thank you for the opportunity to continue to represent <br /> the City in connection with this matter. Best wishes <br /> ERM/acb <br /> cc: John Breihan <br /> Tom Barton, Managing Partner <br />