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. .. " .--', . MCELROY & SULLIVAN. ATTOI~N":YS AT LAW " MAILING ADDRESS. P.O. BOX 12127 AUSTIN. TEXAS 78711 FIRS'I' S'I'A'1'1<~ BANK TOW":R 400 W"~S'l' 15TH ST1~EET SUI1''': 14.10 AUS1'IN. TEXAS 78701 TELEPHONE 15121 48()'()()91 FACSIMILE 15121 48()'()968 January 10, 1992 Mr. Robert T. Herrera, City Manager City of LaPorte 604 W. Fairmont Parkway LaPorte, TX 77571 Dear Mr. Herrera: This will confirm our agreement that the law firm of McElroy & Sullivan, L.L.P. (M&S) will represent the City of LaPorte (the City) in the City's pending judicial appeal of the decision of the Texas Water Commission issuing a hazardous waste facility permit to Houston Chemical Services, Inc. (HCS). M&S will represent the City in prosecuting the appeal either through an appeal to the Texas Supreme Court, or until such time as a court orders the matter remanded to the Texas Water Commission, or until the City is no longer a party to the appeal, whichever occurs first, for a flat fee of $84,900.00, to be transferred from Winstead Sechrest & Minick, P.C. to McElroy & Sullivan within 10 days. The City will be responsible for the payment of transcript and statement of facts costs and other costs of court connected with the appeal to the extent they exceed a total of $250.00. M&S will provide additional legal services to the City in connection with the City'S opposition to HCS' proposed facility, including defending the City against HCS' pending breach of contract counterclaim in the permit appeal litigation, assisting in defense of the HCS and Southern Ionics' breach of contract suit pending against the City in federal district court and other matters, as requested by the city. Such additional legal services to be billed monthly at M&S prevailing hourly rates for legal services, with payment from City for such services and associated expenses to be made to M&S within thirty days after receipt of a billing statement. Brent Ryan will be the attorney in charge of M&S representation of the City; his current hourly rate is $175.00. The City hereby authorizes M&S to also represent other parties to the pending judicial appeal on such terms as may be agreed to by M&S and such other party or parties, provided no conflict of interest exists between the position of City and that of such other party or parties.