Residents question legal expenses

Once again the legal budget was a top item of discussion at the Hermosa Board of Trustees Aug. 5 meeting, but this time, a shift from the norm, a full house was in attendance and with plenty to say. 
Ordinance 2.077A, the Supplemental Appropriations Ordinance, was given a first reading, and this supplemental budget increased the town’s legal budget by $10,000, and also provided a number of other budget adjustments. 
As previously discussed, the entire legal budget for fiscal year 2025, $30,000, has already been spent. Town attorney Kent Hagg, receives a $2,500 monthly retainer, which provides the town with 10 hours of legal service, oftentimes expended in meetings alone, and anything above that costs the town $275 per hour. 
When the board invited public comment on the supplemental budget, citizen Mark Einerwald spoke up, saying, “The legal budget—that’s over and above what the town has budgeted for legal already. So, we’re looking at raising that another $10,000. We—many of us here and myself —and 30 other people, have put together a petition to ask the town not to do that. We seem to be talking about not having money to do streets and other things. Legal. Everyone knows there needs to be a legal service.”
He expressed concern Hagg attends these meetings at $250 per hour, often without providing any input.
“It just doesn’t seem right to many of us,” he said.
Trustee Shanna Harris said she isn’t opposed to renegotiating Hagg’s arrangement, perhaps having him call in for meetings as appropriate, rather than attending the full extent of them. Trustee Aaron Serviss observed that there is no standing contract with Hagg defining how his 10 hours are spent, but merely a proposal that provides for 10 hours of service. 
Cathy Pillen, a Hermosa citizen, recalled last year when the town was looking at hiring a new attorney. 
“There was one meeting,” she said, “where another person had a resume put in here for the job besides Hagg, and Linda looked it over and she let him (Hagg) read it, which I don’t think is lawful; I don’t think it is right that he should have read it….He (the other attorney) was lower than Hagg when he put his resume in, and Hagg lowered his price so he could get in.” 
In the recording from the Aug. 20 meeting, the board examined two proposals for the attorney position, one from Kent Hagg and another from Scott James. 
“I was provided a copy of a proposal—Terri (Cornelison) sent it to me—from Scott James, Southern Hills Law,” Hagg is heard saying in this recording. “Nothing stands out in my memory as him being someone who was objectionable in any way. I think he’s a decent guy. I think he’d make a good town attorney; I don’t have any reason to say not….I submitted for the position and will continue to help you all out, and I enjoy it. But one thing I think I do bring to the table is years of experience with the town….I know you’ve got to be cost-conscious. Mr. James is a real reasonable $225/hour. In the proposal that I had last week, I proposed $2,750 per month, which would provide 10 hours of services. And then anything after that would be $300/hour. My regular rate is $375. But what I would be willing to do is lower the monthly retainer to $2,500 per month. That would be 10 hours at $250/hour, and then thereafter lower from $300 to $275, which is $100 less per hour than I normally charge. And it keeps it competitive, helps you watch your budget a little bit, and I think I can do things oftentimes more efficiently because of my level of knowledge, specific to this community.” 
At the end of this Aug. 20 meeting, the board met for an executive session and voted to accept Hagg’s modified proposal for town attorney, and he was sworn in at the following meeting.
Trustee Linda Kramer said, in response to Pillen, “If I remember correctly, the other attorney who put in a bid, it was a conflict of interest.” 
Trustee Kel Koontz suggested that if anyone has any specific incidents they would like to have addressed by the board, they should fill out a complaint form so the board doesn’t have to respond off-the-cuff in a meeting. He also reminded everyone that there will be another reading of this supplemental budget and invited further discussion at that time. 
When the agenda turned to abatements and complaints, again things got a little testy, true to form, as this has long been a contentious topic due to painful issues with people’s lilac bushes. Concerns were brought forward regarding fair application of abatements and complaints, whether abatements were public information and whether complaints could be anonymous. Town marshal Aric Alias stood up and addressed the room as things were getting heated, saying, “We need to squash the rumor mill in this town, because I’m getting sick of it. We need to knock it off. This ain’t high school. And that goes for board members as well. We’re adults.” 
In addition to keeping the peace in board meetings, Alias reported a number of Sturgis related issues, some speeding down Main Street and cows on the highway, but most concerning was his report of a suspicious vehicle that has been driving around Hermosa, and which fled when Alias followed it. He described it as an all-black Custer County sheriff’s vehicle, similar to his marshal vehicle but older. He checked, and Custer County doesn’t have a vehicle matching this description. The decals on the side, reading “Sheriff” in large letters and “Custer County” beneath, look legitimate. He says that the driver was a heavier-set male with a goatee and a sole patch. He asks that if anyone sees a vehicle matching this description, to take pictures of it and report it. 
Engineer Anthony Theodorou gave an update on the north water tank project, and Quinn Construction will be the contractor. Theodorou has applied for a Federal Emergency Management Agency (FEMA) Building Resilient Infrastructure and Communities (BRIC) grant, and submitted a seven-phase cost proposal for Hermosa Flood Remediation, which would be the focus of this grant funding. Some drainage issues in town will be addressed in this project, including on 2nd and Whitney St., Fairgrounds Place and Vilas St. 
He also reported that they are now discharging from the wastewater treatment plant, an exciting milestone for the town’s infrastructure, and all four lagoons and the detention basin are now online. The dirt work at the lagoon should be essentially done by the end of the month. 
Serviss is looking for solutions to some of the town’s road issues and is putting together a plan to repair with riprap. 
“We’re getting so much rain; it really is rough. But we need to make sure we’re not just throwing gravel in the gullies,” he said, adding they needed a better fix that wouldn’t just wash away during the next rain.
Shoulder work on North 2nd St. keeps getting delayed by rain, but citizens should start to see progress on some of the projects in town. Discussion was had about more permanent solutions for the roads, which of course comes back to a question of finances. 
The next board meeting will be held Aug. 19.