HomeMy WebLinkAboutE-8 Staff Report - Contract Amendment with Special CounselCONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: DON PENMAN, INTERIM CITY MANAGER
FROM: KURT CHRISTIANSEN, FAICP, ECONOMIC & COMMUNUTY DEVELOPMENT
DIRECTOR
DATE: FEBRUARY 20, 2018
SUBJECT: APPROVE CONTRACT AMENDMENT WITH SPECIAL COUNSEL FOR CODE
ENFORCEMENT LEGAL SERVICES.
SUMMARY:
Silver and Wright, LLP, has been providing code enforcement legal services to the City on a variety of
cases, however, some cases has taken a considerable amount of time. Staff is requesting a $120,000
budget adjustment from the General Fund to complete work on several cases. It is anticipated that these
matters will be completed by the end of this fiscal year.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1)Approved a contract amendment with Special Counsel and appropriate $120,000 to Account #
10356430006301, Legal Services, from uncommitted fund balance.
DISCUSSION:
Due to increased Code Enforcement activities and case law that prohibits the City Attorney from
representing the City on certain enforcement matters, the City has experienced unexpected legal costs.
Silver & Wright, LLP, which has been representing the City in various code enforcement actions, has a
contract with the City for $30,000. As a result of particularly challenging cases, invoices exceeded the
amount previously allocated by the City Council and additional funds are required at this time. Staff
anticipats that the existing court cases will be resolved by the end of the fiscal year.
Staff is very cautious about using legal services for code enforcement, only forwarding cases that are
complex and that the City would likely prevail. The City currently has a cost recovery system in place and
once the City prevails in a case, reimbursement is sought for all costs. During next fiscal year, Staff intends
to restructure the Silver and Wright, LLP agreement into a retainer contract.
APPROVED
CITY COUNCIL
2/20/2018
Contract with Silver & Wright, LLP
February 20, 2018
Page 2
FISCAL IMPACT:
During FY 2017-2018, the City Council appropriated $30,000 in the Community Improvement budget
(Account 10356430006301) for Legal Services. The budget adjustment would be $120,000 from
uncommitted fund balance to cover existing invoices and to cover costs up to any court trial. When the
City prevails in the court cases, the uncommitted fund balance would be repaid.
Prepared by: Fiscal Impact Reviewed by:
Kurt E. Christiansen, FAICP Talika Johnson
Economic and Community Development Director Director of Finance
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Don Penman
Senior Management Analyst Interim City Manager
Attachment:
1) Contract amendment with Silver and Wright, LLP
45635.01000\23533564.1
SECOND AMENDMENT TO CODE ENFORCEMENT LEGAL SERVICES
AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
SILVER & WRIGHT LLP
ARTICLE 1. PARTIES AND DATE
This Second Amendment to the Code Enforcement Legal Services Agreement (“Second
Amendment”) dated as of the _____ day of February, 2018 is entered into by and between the
City of Azusa (“City”) and Silver & Wright LLP (“Consultant”).
ARTICLE 2. RECITALS
2.1 City and Consultant entered into that certain Code Enforcement Legal Services
Agreement dated January 13, 2014 (“Agreement”), whereby Consultant agreed to provide legal
services to the City regarding code enforcement-related matters.
2.3 City and Consultant entered into First Amendment on January X, 2016 (“First
Agreement”)
2.2 City and Consultant now desire to amend the Agreement to increase the amount
of compensation.
ARTICLE 3. TERMS
3.1 Section 3.3 (“Services and Compensation”) of the Agreement is hereby deleted in
its entirety and replaced with a new Section 3.3 to read as follows:
“3.3 Services and Compensation. For all legal services provided in this
Agreement, except civil litigation matters, the City will pay Consultant at the rate
of $215 per hour for attorney representation and $130 per hour for paralegals and
clerks, not to exceed one hundred twenty thousand dollars ($120,000) for fiscal
year 2017-2018. Consultant will charge in minimum increments of one tenth of
an hour, rounded off for each particular activity to the nearest one tenth of an
hour.”
Attachment 1
45635.01000\23533564. 1 2
3.2 Continuing Effect of Agreement. Except as amended by this Amendment, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall
mean the Agreement as amended by this Amendment.
3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this Amendment.
3.4 Counterparts. This Amendment may be executed in duplicate originals, each of
which is deemed to be an original, but when taken together shall constitute but one and the same
instrument.
[SIGNATURES ON NEXT PAGE]
45635.01000\23533564. 1 3
CITY OF AZUSA SILVER & WRIGHT LLP
By: By:
Don Penman Matthew R. Silver
Interim City Manager Partner
ATTEST:
By:
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney