TO:
FROM:
DATE:
CITY COUNCIL
DIRECTOR OF FINANCE
DECEMBER 5, 2023
Placentia City Council
AGENDA REPORT
SUBJECT: AMENDMENT NO. 1 TO RETAINER AGREEMENT FOR CITY ATTORNEY
SERVICES
FISCAL
IMPACT: No fiscal impact due to recommended action; increased costs to budget related to existing agreement in FY 2023-24 - $46,000 (101005-6005 & 101005-6006) SUMMARY:
The City Council approved a Retainer Agreement for City Attorney Services with Jones & Mayer effective July 21, 2015. Under this agreement, the City Attorney shall process, coordinate, and direct, as necessary, all legal services on behalf of the City of Placentia and the City Attorney shall attend all City Council meetings, and other meetings as required.
The current agreement allows for an increase in billing and hourly rates by the Consumer Price Index, not to exceed five percent (5%) annually on the anniversary date of the agreement beginning in 2017. This timing does not allow for any adjustments to be incorporated into the City's Adopted Budget. To assist in budgeting for these price increases, the CPI index will be measured in February of each year, with adjustments, if any, effective March 1st. City staff requested Amendment No. 1 to the Retainer Agreement for City Attorney Services to reflect this change and to restate the existing billing and hourly rates.
RECOMMENDATION:
It is recommended that the City Council take the following action:
Approve Amendment No. 1 to Agreement for City Attorney Legal Services, to be executed by the Mayor, in a form approved by the City Attorney.
DISCUSSION:
The City Council approved a Retainer Agreement for City Attorney Services with Jones & Mayer effective July 21, 2015. The agreement allows for billing and rate increases annually on the agreement's anniversary date by the Consumer Price Index (CPI) up to five percent (5%). The City Attorney's office recently notified the City of its intention to increase its rates for the 2021-22 and 2022-23 fiscal years as it has not increased its rates since the fiscal period ending June 30, 2021. The increases are 5 percent (5%) for 2021-22 and 2.7 percent (2.7%) for 2022-23 respectively, for a total increase of 7.7 percent (7.7%).
1.d.
Dec. 05, 2023
City Council Agenda
December 5, 2023
The City was notified of these increases August 29, 2023, after the beginning of the 2023-24 fiscal year, and as a result the proposed increases were not accounted for in the budget. To align with the City's annual budget process, City staff requested an amendment to the agreement with an annual CPI measurement date of February, and any resulting increase in fees effective March 1st so they could be incorporated into the proposed budget for the following fiscal year.
No other adjustments or modifications are proposed or recommended at this time.
FISCAL IMPACT
There is no fiscal impact based upon the recommended action, however there is an increase in costs consistent with the billing and rate increase clause in the existing agreement for City Attorney services. For transparency, the impact to the FY 2023-24 budget for these increases are outlined below.
The annual cost of City Attorney services can fluctuate annually depending on the amount and level of service needed in a given year. Based on trend analysis for the last and current fiscal years, it is estimated that the increase in billing fees will cost approximately $46,000 for the 2023-24 fiscal year based on projected annual legal expenses of $646,000, inclusive of the new fees. Staff will monitor the budget and if necessary, request additional appropriations at the Mid -Year Budget Review.
Prepared and submitted by:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Damieri A rr ula
City Administrator
Reviewed and approved:
Ro nna Ramirez
De uty City Administrat r
Attachments:
1. Agreement for City Attorney Legal Services
2. Amendment No. 1 -City Attorney Employment Agreement