Consent Agenda Item 3k
STAFF REPORT
Consent Agenda Item
DATE: August 17, 2026
TO: Honorable Mayor and Council Members
FROM: Katey Schmidt, Senior Planner
THROUGH: Amy Nilsen, City Manager
SUBJECT: Authorize the Execution of a Professional Services Agreement with Serviam by Wright LLP for On-Call Administrative Hearing Officer Services STAFF RECOMMENDATION:
Authorize the City Manager to finalize and execute a professional services agreement with Serviam by Wright LLP to act as the Hearing Officer pursuant to Title 11 of the Fortuna Municipal Code and authorize a supplemental budget request for $8,750.
EXECUTIVE SUMMARY:
The City Council adopted the Mobile Home Rent Stabilization Ordinance on April 6, 2026, and it was codified as Fortuna Municipal Code (FMC) Section 11.02. FMC Section 11.02.01(D) defines a “Hearing Officer” as a licensed attorney that is capable of conducting hearings in accordance with the Ordinance. To implement this requirement, the City has determined that an on-call administrative hearing officer is necessary to preside over potential hearings under Section 11.02, as well as other administrative hearings required by the Municipal Code.
Staff recommend that the City Council award a contract to Serviam by Wright LLP to provide oncall Hearing Officer services for administrative and quasi-judicial proceedings. Serviam by Wright LLP would serve as an impartial professional responsible for conducting hearings, reviewing records, evaluating testimony and documentary evidence, and preparing written findings and decisions in accordance with applicable law, City ordinances, and due process requirements.
The selected consultant will provide these services on an as-needed basis for matters that may include, but are not limited to, code enforcement hearings, nuisance abatement proceedings, administrative appeals, and housing-related hearings. The agreement term will be negotiated following contract award. A draft professional services agreement is also included as an attachment to the staff report.
FINANCIAL IMPACT:
The requested budget for on-call Hearing Officer services is $8,750, which provides approximately 25-30 hours of service. Staff will note that this budget amount would correspond to the fee that would be required for a Fair Return Rent Increase Application, as approved by the fee established Consent Agenda Item 3k
in the approved council resolution for the Ordinance. Staff will note that the use of a hearing officer will only occur when an application is filed by an eligible Mobile Home Park operator, and that the true cost of the hearing officer would be charged in full to the applicant. Therefore, there is no actual fiscal impact to the City’s budget, and the draft Supplemental Budget Request included with this staff report shows the amount as both revenue and expenditure.
ALTERNATIVE TO STAFF RECOMMENDATIONS:
If the City Council does not approve the contract, Community Development staff will lack the necessary resources to conduct impartial administrative hearings. This could expose the City to potential litigation and create a perception that hearings are not neutral or independent. These services are outside the current scope of City staff expertise and require a subject-matter expert to provide impartial, neutral findings.
RECOMMENDED COUNCIL ACTION:
Make a motion to Authorize the City Manager to finalize and execute a professional services agreement with Serviam by Wright LLP for on-call Administrative Hearing Officer services and approve a supplemental budget request of $8,750. Consent agenda vote.
ATTACHMENTS:
1. Serviam by Wright LLP Statement of Qualifications
2. Supplemental Budget Request
3. Professional Services Agreements with Serviam by Wright LLP for on-call Administrative Hearing Officer Services