Libby hires mayor's handpicked attorney at increased cost to city

The Libby City Council has decided to spend more than double the statewide average for legal services for a city of Libby’s size.

The contract approved by the City Council Monday evening agrees to an annual fee of $70,000 to be paid for standard legal work by the firm of Doney Crowley P.C. and attorney Allan Payne. The average legal services contract for third-class cities – cities with populations between 1,000 and 5,000 – is $34,666 per year, according to the Montana League of Cities and Town’s 2014 salary survey.

Libby Mayor Doug Roll made the decision to recommend Payne and his firm with no formal discussion at City Council meetings prior to Monday’s meeting in which the contract was approved. One City Council member, Barb Desch, indicated Payne had attended one of the City Council’s breakfast meetings a while back and “answered a few questions.”

The city did not publicize the open position, despite the fact that Jim Reintsma, who occupies the position until Dec. 14, announced his intention to leave the post almost a year ago. Libby City Clerk/Treasurer Glena Hook said no advertising of the position was done “that I’m aware of.” City Administrator Jim Hammons said he also was unaware of any efforts to publicize the job opening.

Reintsma’s contract was for $52,000 per year, plus an additional $60 per hour for non-standard work.

The City of Troy has just approved a contract for legal services without a guaranteed payment. The hourly rate will be higher, at $100 per hour, but the city anticipates spending only about $20,000 for the year. The Troy City Council began formal discussions in August about replacing city attorney Heather McDougall.

Payne said all of the expenses involved in representing the city will be borne by the firm, including travel to and from Libby for standard work. The firm also will hire a part-time assistant to work in the city attorney’s office at City Hall.

The assistant, Payne said, will be a combination of administrative assistant, case clerk, paralegal and investigator. That person will be an employee of the law firm, not the city, and will be paid from the proceeds of the contract, not from additional city funds, he said.

Although based in Helena, Payne is a Libby native. He said he is taking the contract to help his hometown. “I’m not taking this contract to make money,” he said. “It’s time to give back some public service.”

Payne has represented the city before, most notably during the International Paper case five years ago. Payne renegotiated the settlement, from which the city was being paid $30,000 per year, to a new deal in which the city was paid a lump sum of $1.2 million and an additional $250,000 per year.

Payne took that case on a contingency basis, meaning he was not paid any fees by the city, but he does receive one-fifth of the payments made to the city. The normal contingency fee for such a case, Payne said, is one-third of any proceeds.

Someone from the firm will “telephonically attend” City Council meetings, according to the contract. Roll also indicated that one of the firm’s associates would travel to Libby “at least once per month” for mandatory court appearances. Payne said he will be the attorney attending City Council meetings, and two associates will work with him on the city’s criminal prosecutions. He anticipates the firm will be in Libby City Court three to four times per month. City Court is held every Thursday.

The Libby City Council approved the contract with Doney Crowley by a 3-2 vote over the objections of two councilmen and three residents who appeared before the City Council to express their opposition.

Councilman Allen Olsen moved to table approval of the contract until such a time as Payne could appear before the City Council to answer questions. Roll urged the council to reject the motion, and it was defeated by a 3-2 vote. Councilman Brent Teske sided with Olsen, while council members Bill Bischoff, Peggy Williams, and Barb Desch voted against the motion. Councilwoman Robin Benson was absent.

The contract was then approved by a 3-2 vote along the same lines.