City attorney explains salary

Whitefish Pilot

Questions about how much money the city of Whitefish pays for city attorney John Phelps and legal services were raised during the Whitefish City Council’s Dec. 1 meeting.

According to his June 27, 2005, contract with the city, Phelps’ base annual salary was $80,000. He also was given the same cost-of-living increases and paid holidays that other city employees get, along with 25 days paid vacation and health insurance.

An addendum to the contract dated Nov. 20, 2006, extended Phelps’ two-year contract by another five years. The addendum also provided a single $10,000 raise effective July 1, 2007.

Phelps told the Pilot he asked the city for a raise one year into the two-year contract after he received a favorable performance review. The city councilors proposed a higher raise than he requested, $10,000, contingent on him signing on for five more years, and he agreed.

He also said state ethics laws allow him to negotiate a new salary, even though he is the city attorney. To eliminate any doubt, Phelps asked the state Office of Disciplinary Counsel to investigate the matter. The office handles allegations made against lawyers, and it could be four months before he hears back from them, he said.

Phelps is currently paid $99,256. His pay will increase along with other city employees by the same cost-of-living adjustment through July, 1, 2012. He makes no additional money from the city for consulting.

According to an Oct. 22 letter by interim city manager Dennis Taylor, Whitefish has spent a total of $69,992 on insurance deductibles and $119,101 on outside litigation expenses over the past five fiscal years, ‘03-04 through ‘07-08.

About 88 percent of the outside litigation expenses went to hiring outside counsel to defend the city against a lawsuit brought by the owners of the Best Bet Casino.

Because of the nature of that lawsuit, which was filed in 1999, it was not covered by the Montana Municipal Insurance Authority. The city’s ‘08-09 budget provides $50,000 in case it’s needed for the Best Bet Casino lawsuit.

The city also budgeted $83,000 for the Hedman, Hileman and Lacosta law firm to pay for prosecution services. All told, the budget for the city’s legal department is $192,227.