Amid rise in legal costs, Montreat considers putting law firm on retainer for 1st time

The town of Montreat is in conversations with the law firm Allen, Stahl and Kilbourne to provide legal services to the town. 

A proposal to approve or deny these services was on the agenda for the April 11 regular session Board of Commissioners meeting, but the motion was moved to the May meeting after a discussion among board members. Commissioner Tom Widmer said the town has never had an attorney on a retainer basis. 

The proposed service would cost the town a flat fee of $2,500 a month. According to a proposal by the firm in the agenda packet for the April meeting, "services outside routine services" would be charged at hourly rate with a 20% discount and a cap of $350 per hour. The proposal said the firm would provide the town with "legal advice in connection with general town matters," including having an attorney present at two Board of Commissioners meeting per month. The proposal defined "general town matters" as "organization, governance and authority" as well as property rights, development and land use regulation. These services would not include litigation, appeals or significant ordinance drafting. Mayor Pro Tem Mason Blake called it a "very fair proposal." 

Derek Allen of the firm was present at the April 11 meeting to answer questions from the Board of Commissioners. He said the firm was established in 2019 and now employs 18 attorneys. 

Town Manager Savannah Parrish said in the past two years, the town has spent more than $60,000 on legal fees, which she called "outlier years." In fiscal year 2021, the town spent approximately $42,000 in legal fees. The year before, the town spent $32,000. 

Blake said retaining legal services should be looked at as "insurance" and having an attorney is often the "only line of defense" for a town. 

Widmer said he had concern about where the funding for the attorney would come from. 

"We don't have a lot of fat in our budget," Widmer said. "In fact, we don't have any fat in our budget. There's two ways to do it: You either increase income or decrease expenses. We can't increase income." 

Several commissioners, including Kitty Fouche, expressed concern about having an attorney present for Board of Adjustment meetings because the town "had gotten in trouble" before. 

Though the town chose not to pursue the case further, a group of Montreat residents and the Mountain Retreat Association are in court regarding a proposed lodge the MRA wants to build. The MRA was initially granted a permit to build the lodge by the Board of Adjustment, but it was later revoked through court proceedings. The MRA appealed and the case is currently awaiting a decision from the North Carolina Board of Appeals. 

Mayor Tim Helms said he would support the idea of having counsel available because, in his time in local government in Montreat and other municipalities, he has seen the ways in which having an attorney present can help the town. 

Blake made a motion to move approving or denying the proposal for legal services for next month to "work out the final details" on the proposal and budget. This motion passed unanimously 4-0 with Commissioner Grant Dasher absent. 

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