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charges may not arrive until after the time for the legal services has <br />been billed and paid. <br />3. Matters Covered by Insurance: Whenever a claim is made with an <br />insurance carrier that arises out of a legal issue within the scope of this <br />Contract for Legal Services, the City will recommend that the Law Firm be <br />utilized by the insurance carrier in the matter for which the claim is made. <br />The City may recommend the Law Firm to an insurance carrier for claims <br />arising out of matters which are outside of the scope of this Contract for <br />Legal Services. At the point in time when an insurance carrier admits <br />coverage, and to the extent that they will provide retroactive payments for <br />attorneys' fees, the Law Firm will receive its payments for services <br />rendered from the insurance carrier and not the City. To the extent that an <br />insurance carrier does not pay for legal services rendered by the Law Firm, <br />including any deductibles, the City will pay the Law Firm for services <br />rendered at the rates charged to the insurance company, subject to the <br />billing and payment provisions of paragraph 5. <br />4. Conflict of Interest and Attorney /Client Privilege Issues: <br />4.1 Conflict of Interest: The Law Firm will notify the City if the Law <br />Firm represents or has ever represented an opposing party in a legal <br />matter, whether within or outside of any of the retainers. The Law <br />Firm declares that it represents many school districts, cities, <br />counties, and other public entities throughout the State of Minnesota, <br />and in the area of the City of Ramsey. <br />4.2 Attorney /Client Privilege: The Law Firm is authorized to utilize e- <br />mail without encryption to transmit and receive confidential client <br />information. Cordless and cellular telephones may be used by the <br />Law Firm to transmit and receive confidential client information. <br />The City specifically acknowledges that it understands the <br />confidentiality risks associated with inadvertent interception. <br />5. Billing Format, Cycle, Payment Expectations and Interests. <br />5.1 Retainers: The retainers for the retainer services described in <br />Paragraph 1.1 shall be as follows: <br />Year One $48,000 <br />Year Two $48,000 <br />4 <br />