HomeMy WebLinkAboutE-06 Staff Report - Revised Silver & Wright Budget AdjustmentCONSENT ITEM
E-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: KURT CHRISTIANSEN, AICP, ECONOMIC & COMMUNUTY DEVELOPMENT
DIRECTOR
DATE: JANUARY 5, 2016
SUBJECT: INCREASE CONTRACT WITH SILVER AND WRIGHT, LLP FOR CODE
ENFORCEMENT LEGAL SERVICES TO COMPLETE ONGOING LITIGATION
SUMMARY:
Silver and Wright, LLP, has been providing legal services on a variety of code enforcement cases. In
one particular case, the property owner has been uncooperative and made virtually no effort to correct
the numerous code violations on their property. In fact, the property owner filed a lawsuit seeking an
injunction against the City to prevent it from enforcing its laws. Due to the complicated and contentious
nature of this case, legal costs have exceeded our initial budget authority. Staff is now requesting a
$120,000 budget adjustment from the uncommitted fund balance to complete work on this one case.
This action approves an amendment to the contract with Silver and Wright, LLP increasing the contract
amount to $150,000 and a corresponding supplemental budget appropriation of $120,000 from
uncommitted fund balance.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1) Approve a contract amendment with Silver and Wright, LLP increasing the contract amount to
$150,000 for legal services; and
2)Approve a supplemental budget appropriation of $120,000 from uncommitted fund balance to
Account # 10356430006301, Legal Services, to cover the anticipated cost of legal services
related to this litigation.
DISCUSSION:
The City has retained Silver and Wright to handle various code enforcement cases. As a result of a
particularly challenging case involving numerous code violations, invoices exceed the amount previously
budgeted by the Council in the current year budget and additional funds are required at this time.
APPROVED
COUNCIL MEETING
1/5/2016
Contract with Silver & Wright, LLP
January 5, 2016
Page 2
This current litigation is the second case the City has brought against the property owner seeking
compliance. A prior case, which also involved an adjacent property owned by the property owner, was
settled. In this case, the property owner has been completely unwilling to comply, and has made
virtually no effort to bring the property into compliance. Initially, this case was anticipated to be
completed by December, 2015, but the Court initially granted the property owner a continuance to April 18,
2016. The City objected to the continuance and scheduled a Preliminary Injunction Hearing for December
23, 2015. On December 23, 2015, the Court granted the City a preliminary injunction and ordered the
property owner in this case to comply with the following order:
1. Submit all completed applications to obtain the appropriate permits from the City for the items
listed on the injunction within 14 days (January 6, 2016).
2. Once approvals are obtained for the appropriate permits from the City for the items listed on the
injunction, work shall begin within 14 days of permit approval.
3. All work required as conditions for the permits for the items listed on the injunction shall be
completed within 50 business days from the date the City issues the permit.
The Court set a further hearing for March 21, 2016 regarding status compliance. The City must submit a
report to the Court regarding the status of the repairs by March 15, 2016. Barring any further delays, we
anticipate that the existing court case 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.
FISCAL IMPACT:
During FY 2015-2016, the City Council appropriated $30,000 in the Community Improvement budget
(Account 10356430006301) for Legal Services. The budget adjustment would add an additional
$120,000 from uncommitted fund balance to cover existing invoices and projected costs through trial.
Should the City prevail in court, the uncommitted fund balance would be repaid through cost recovery.
Prepared by:
Kurt E. Christiansen, AICP
Economic and Community Development Director
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
45635.01000\23533564.1
FIRST AMENDMENT TO CODE ENFORCEMENT LEGAL SERVICES AGREEMENT
BETWEEN THE CITY OF AZUSA
AND
SILVER & WRIGHT LLP
ARTICLE 1. PARTIES AND DATE
This First Amendment to the Code Enforcement Legal Services Agreement (“First
Amendment”) dated as of the _____ day of January, 2016 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.
2.2 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 2015-2016. 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.”
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.
45635.01000\23533564. 1 2
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.
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45635.01000\23533564. 1 3
CITY OF AZUSA SILVER & WRIGHT LLP
By: By:
Troy Butzlaff Matthew R. Silver
City Manager Partner
ATTEST:
By:
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney