By Elizabethe Holland
The St. Louis Post-Dispatch
BEVERLY HILLS, Mo. — A north St. Louis County fire district that spent at least $227,925 last year in legal fees has approved a new contract to pay its lawyers a minimum of $180,000 a year for the next two years.
The board of the Northeast Ambulance and Fire Protection District last month agreed to pay lawyer Elbert Walton Jr. a $120,000-a-year retainer and a $60,000 annual retainer to his associate, Bernard Edwards Jr., for two years.
The retainers are more generous than any offered by surrounding fire districts. Of 11 other districts in north St. Louis County, the next highest retainer amounts to $24,000 a year, according to district records and interviews with the Post-Dispatch.
Walton’s previous fee agreement included an $18,000 annual retainer, an additional $25,000 as the district’s lobbyist and his billings for hourly work.
On June 1, a subpoena issued by the Missouri auditor showed that in 2008, Walton’s firm, Metro Law Firm, was paid $143,365 and Edwards $84,560. It could not be determined whether the total, $227,925, comprised all of that year’s legal fees. The Northeast district has disclosed some legal fees to the Post-Dispatch, but the records provided to the newspaper have been incomplete.
A Post-Dispatch story two years ago on Walton’s billings disclosed that Walton had been paid $76,671 in his first six months on the job — more than six times what the board’s previous attorney was paid in an entire year and far more than what other area districts paid their attorneys, according to interviews with the Post-Dispatch.
The audit began in December after a request by former Gov. Matt Blunt in response to complaints of financial mismanagement by legislators and district residents.
The subpoena demands that the district provide invoices or other explanation for the legal bills and other district expenses by today. The audit is expected to be released this month or next.
Northeast’s new retainers are outlined in a resolution adopted May 12 by the district board in closed session. The board did not disclose details of the agreement in open session, even though it is considered a public record under the state’s Sunshine Law.
The Post-Dispatch obtained a copy of the resolution last week after submitting a written request and making three visits to the district’s administration building in Beverly Hills.
Neither Walton nor Edwards nor fire board President Joe Washington returned calls seeking comment. Asked over the phone whether he had time to talk to a reporter, board Secretary-Treasurer Robert Edwards replied, “Not for you,” and hung up.
Bob Lee, the only director of the three-member board to vote against the agreement, called it unconscionable. “Our attorney fees used to be between $12,000 and $15,000 annually, and now we’re paying in excess of that on a monthly basis,” said Lee, who consistently votes against the other two board members.
Frank Vatterott, an attorney who represents six area fire districts, said Northeast’s retainers were out of line. “There’s something wrong — very, very wrong,” he said. “I would say that’s 10 times what it should be.”
Vatterott, who has represented fire districts for years, said he charges districts no more than $25,000 a year, “and they’re a lot bigger than Normandy.” (Northeast formerly was known as the Normandy Fire Protection District.)
Far Above the Norm
Eleven other north St. Louis County fire districts averaged $32,193 in attorney fees in 2008, records show. Several of the districts run considerably larger operations than Northeast — in employees, area covered and total engine houses — and at least two of the districts were involved in lawsuits that resulted in significant spikes in legal fees.
Highest among the 11 queried was Robertson, which spent $64,021 on legal fees in 2008.
Most of the other districts’ attorneys also receive monthly retainers, but those agreements range from $1,000 to $2,000 per month. One district, Spanish Lake, not only doesn’t pay its attorney a retainer but paid no legal fees whatsoever in 2007 and 2008, according to Chief Robert Ritter.
Northeast’s new retainer agreement says the district and Walton have determined the new contract “would be more economical and result in a savings to the district if the legal officer was paid a flat monthly retainer,” with some exceptions. The contract also points out that legal and lobbying services are now covered by a single agreement.
The contract allows for more compensation beyond the retainers. According to the agreement, the district is to pay Walton $225 an hour and Bernard Edwards Jr. $200 an hour for services not covered by the retainers, such as litigation. Further, the district is to pay support staff employed by Walton — from secretaries to investigators to other attorneys — if involved in litigation.
The contract also allows Walton “reasonable and necessary expenses of travel, lodging, meals, entertainment of public officials and incidentals” approved by the board president. And it designates Walton as the legal officer for the district’s pension fund and says he will be paid for such services out of pension funds.
The agreement calls for the district to pay Walton and Edwards the balance of the contract if fired before April 30, 2011, as well as $10,000 in severance for Walton and $5,000 for Edwards.
Financial Woes
Meanwhile, federal court records indicate Walton has financial troubles. Last year he was ordered to pay more than $40,400 in unpaid taxes for tax years 2002-05. On Nov. 17, he filed for bankruptcy for the third time.
Edwards, the district’s “assistant legal officer,” has represented Walton in the past, including cases in which Walton was publicly reprimanded by the Office of Chief Disciplinary Counsel, which investigates and prosecutes ethical complaints against lawyers in Missouri.
Edwards also represented Walton in a suit he brought against the city of Berkeley after he was fired as city attorney in 1999. Walton ultimately lost the case.
Walton was hired by the fire district board in April 2007, when a new board majority took over. Since then, some district residents have accused him and board members Washington and Robert Edwards of abusing district funds, ignoring residents’ questions about the district and routinely violating the state’s Sunshine Law, which requires openness in government.
Northeast’s budget for the year ending in June projected spending of $2.6 million.
The district has one firehouse and provides fire and ambulance services for part of north St. Louis County and 15 small cities: Bel-Nor, Bel-Ridge, Bellerive Acres, Beverly Hills, Cool Valley, Country Club Hills, Glen Echo Park, Normandy, Northwoods, Norwood Court, Pasadena Hills, Pasadena Park, Pine Lawn, Velda City and Velda Village Hills. The University of Missouri-St. Louis and the Express Scripts campus fall in the district’s coverage area.
Copyright 2009 St. Louis Post-Dispatch, Inc.
All Rights Reserved