HomeMy WebLinkAboutE-7 Staff Report - Blanket PO - BBK IncreaseCONSENT ITEM
E-7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: JULY 15, 2024
SUBJECT: REQUEST TO INCREASE FISCAL YEAR 2023/2024 BLANKET PURCHASE
ORDER FOR BEST, BEST & KRIEGER, LLP NO. 039195 AND FY 2024/2025
BLANKET PURCHASE ORDER
BACKGROUND:
In accordance with Sec. 2-518 (a) of the Azusa Municipal Code, purchase orders over $50,000
requires Council approval. The Finance Department is requesting authorization to increase the FY
2023/24 blanket purchase order by $55,000 for legal services tendered to Best, Best & Krieger,
LLP for liability cases not covered under the City’s insurance for a total not-to-exceed amount of
$305,000.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1)Approve an increase to the Best, Best & Krieger, LLP Blanket Purchase Order No. 039195
of $55,00, for Fiscal Year 2023/24 to a total not-to-exceed amount of $305,000.
2)Approve an increase to the Best, Best & Krieger, LLP Blanket Purchase Order of $75,000,
for Fiscal Year 2024/25 to a total not-to-exceed amount of $325,0000.
ANALYSIS:
The City uses Best, Best & Krieger, LLP for certain legal services relating to citywide matters in
wo ways: 1) for retainer services pertaining to routine and day-to-day legal matters such as review
of council agendas, attending public meetings, and legal expertise for general city operation; and
Approved
City Council
July 15, 2024
Blanket Increase for BB&K Legal Services
July 15, 2024
Page 2
2) special services needed throughout the year which are difficult to estimate such as litigation
defense.
In Fiscal Year 2023/24 a blanket purchase order in the amount of $250,000 was issued to the law
firm for citywide monthly retainer services. However, due to ongoing liability case litigation not
currently covered by the City’s insurance, the City must tender these legal cases to Best, Best &
Krieger, LLP for legal services. The blanket purchase order for Fiscal Year 2023/24 requires an
increase to $305,000 in order to pay outstanding and future invoices.
Staff received notice of BB&K’s increased retainer fee in late June, following budget adoption and
Council approval of FY 2024/25 blanket purchase orders. Staff budgeted $290,000 for retainer
services. The blanket purchase order and budget for Fiscal Year 2024/25 requires an increase to
$325,000 due to an increase in the monthly retainer fee beginning July 1, 2024. Council action is
required to increase the blanket purchase order as the request exceeds the City Manager’s $50,000
approval authority in accordance with the City’s purchasing policy.
FISCAL IMPACT:
Upon City Council approval, staff will increase the Fiscal Years 2023/24 and 2024/25 by
$55,000 and $75,000, respectively and will also increase the FY 2024/25 budget by $35,000.
Prepared by: Fiscal Review by:
Ariah Hammett Talika M. Johnson
Accounting Specialist Director of Administrative Services
Reviewed and Approved by:
Sergio Gonzalez
City Manager