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August 27,2026
Mayor Craig Morgan
City of Round Rock,Texas
221 East Main Street
Round Rock,Texas 78664
Re: Appeal to District Court of PUCT Final Order in PUCT Docket No.48836.
Dear Mayor and Council Members:
Thank you for the City of Round Rock's(City)continued engagement of Herrera Law &
Associates, PLLC (HLA)to represent the City's interests in the appeal of the final order
issued by the Public Utility Commission of Texas (PUCT or Commission) in SOAH
Docket No.473-18-1422.WS /PUCT Docket No. 48836,Paloma Lake Municipal Utility
District No. 1, Paloma Lake Municipal Utility District No. 2, Vista Oaks Municipal
Utility District, Williamson County Municipal Utility District No. 10, and Williamson
County Municipal Utility District No. Il Appealing the Ratemaking Actions of the City of
Round Rock in Travis and Williamson Counties(Docket No. 48836).t
As you know, the Commission issued its final, appealable order in Docket No. 48836 on
August 21, 2025, and the Petitioning MUDS filed an appeal of that order in Travis
County District Court on September 19, 2025. And after much delay,the PUCT through
the Office of the Attorney General of Texas(AG), filed the administrative record with the
Clerk of the District Court, thereby allowing a schedule to be set in the appeal. To that
end the schedule agreed to by the parties and approved by the court is as follows:
• September 1,2026: Plaintiffs'Opening Brief Due;
• November 4,2026: Defendant and Intervenor's Responsive Briefs Due;
• December 18,2026: Plaintiffs'Reply Brief Due;
• January 27, 2027: Final Hearing on the Merits at 9:00 A.M. (The hearing is
limited to 2 hours).
l Palon a Lake Municipal Utility District No. 1, Paloma Lake Municipal Utility District No. 2, Vista
Oaks Municipal Utility District,Williamson County Municipal Utility District No. 10,and Williamson
County Municipal Utility District No. 11,are collectively referred to as the "Petitioning MUDS"and
individually as the"Petitioning MUD."
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Though the City is an intervenor in the case, our experience has been that the AG will
rely heavily on the intervenor's involvement in the appeal,particularly in presenting oral
arguments to the court. Also, because of the success with which the City met in the
PUCT's final order, the City is more in a defensive posture than were it the appellant in
the case. This also means that we will be in some respects in a reactive mode in
responding to the Petitioning MUDS' briefs, and largely will not set the scope of the
issues to be addressed on appeal.
While it is difficult to precisely estimate our fees for this work, I estimate our fees to be
$175,000.00,plus expenses, for the appeal in District Court.
While I personally will perform much of the work on this project, other lawyers and legal
assistants employed by our firth may also work in providing you our services. All work
on this project will be done under my supervision. My current governmental hourly rate
is $650.00 per hour. Our associates and other partner's billing rates range from $475.00
to $575.00 per hour. The time for our legal assistants will be billed at $185.00 per hour
and time for our legal clerks is billed at $100.00 to $175.00 per hour. The fees for our
services will be based on the time we spend working on this project at the hourly rates I
note. Generally, you will be billed for all time spent on your matter. Our firm bills in
minimum one-tenth hour increments.
We typically review our billing rates in November of each year, with increases in those
rates, if any, taking effect on January 1 of the following year. We would inform you of
any such increases before undertaking any further services under this Engagement Letter.
We will forward billing statements to you or to where you instruct us. Our statements
will contain a description of service we provided, including the date the service was
provided, the person performing the service, the amount of time involved, and a
description of the task performed. Monthly statements also will itemize monies we have
expended on your behalf for things such as travel and accommodations and electronic
legal research charges. Payment is due in accordance with Chapter 2251 of the Texas
Government Code, as amended. As a matter of course we do not charge our clients for
meals while traveling.
Additionally, either you or HLA may terminate this engagement at any time upon written
notice, subject to applicable law and professional obligations. Upon termination the City
remains responsible for payment of all fees, costs, and expenses incurred through the
effective date of termination, including any non-cancelable commitments or obligations
previously incurred on the City's behalf.
If you find the terms for engagement of our services acceptable, please so indicate by
signing where noted below. If you have any questions or concerns, please call me to
discuss them.
We greatly appreciate the opportunity to provide these services to you and look forward
to continuing to work with you.
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Sincerely,
lsl Alfred R.Herrera
Alfred R. Herrera
512474-1492(office)
512-474-2507(fax)
512-653-6462 (mobile)
ACKNOWLEDGEMENT AND ACCEPTANCE
I have read this Engagement Letter and agree to engage the services of Herrera Law &
Associates, PLLC under the terms described above, and I am authorized to enter into this
agreement.
Date: August 21,2026
Craig organ, Z
r
City of oand ock,Texas
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