March 21, 2023
Community Development
DATE: March 21, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Shannon Moore, Chief Assistant City Attorney
SUBJECT:
Legal Services Agreement with Civica Law Group, APC
for Code Enforcement Legal Services and to Continue
the City’s Health and Safety Receivership Program
FINANCIAL IMPACT: The total expenditure for the legal services agreement, not to exceed $485,600.44, is funded in the approved
fiscal year 2022-23 budget respectively (01163019-
400206). The City anticipates cost recovery of the
majority of the legal expenditures as the receivership
program and many of the code enforcement actions are
recoverable.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
To support the City with specialized legal representation relating to code enforcement legal services and to
continue the City’s Health and Safety Receivership
Program, the Code Enforcement Division is seeking
approval of a legal services agreement with Civica Law
Group, APC.
RECOMMENDED ACTION:
APPROVE a legal services agreement with Civica Law
Group, APC, in an amount not to exceed $485,600.44,
for a term beginning March 7, 2023 to June 30, 2024,
since the attorneys the City currently retained for code enforcement and receivership services moved from Silver & Wright, LLP, and formed a new law firm, Civica Law
Group, APC - Community Development (Lina Velasco
510-620-6706).
AGENDA
REPORT
March 21, 2023
DISCUSSION:
On April 6, 2021, the City Council approved a third contract amendment with Silver & Wright, LLP increasing the contract amount by $750,000 for a total not to exceed amount of $850,000. Since this amendment was approved, the two main attorneys who advise the City on code enforcement matters and assist with the City’s Health and Safety receivership program have left Silver & Wright and formed a new law firm, Civica Law Group, APC. Since the Community Development Department, in coordination with the City Attorney’s Office, would like to continue using the two key attorneys, Matt Silver and Kellie Shin, City staff is requesting that City Council agree to the proposed legal services agreement with Civica Law Group, APC. All terms of the third contract amendment already approved by City Council on April 6, 2021, will remain the same.
City staff is just requesting authority to enter into a new legal services agreement with Civica Law Group with Matt Silver and Kellie Shin (“Special Counsel”). The LSA also provides for a three percent annual cost of living adjustment to the previous hourly rates.
Receivership Program Background:
In 2018, the City of Richmond launched a Health and Safety Receivership Program.
The program rehabilitates abandoned, substandard, and nuisance properties in Richmond, which pose significant health and safety hazards to the community and public. The Code Enforcement Division, Building and Safety, and Richmond Fire and Police Departments have all worked with the City Attorney’s Office and Special Counsel, Matthew Silver of Civica Law Group. Below are highlights of two of the many successes working with Special Counsel to bring dangerous and substandard properties into full compliance making Richmond a safer place to live and work.
In 2022, the City referred a fourplex residential structure located on Bayview Drive (“Bayview Property”), which had been on the City’s and Richmond Police Department’s (RPD”) radar for over a decade. RPD received hundreds of calls for service and citizen complaints to the Property for various crimes such as noise disturbances, non-stop vehicle and foot traffic (evidencing narcotics sales), illegal occupation of the garage, urination, and illegal dumping of trash and debris on and around the property. The Bayview Property was also known among law enforcement, neighbors, and the community as a drug house where narcotics are kept, sold, given away, stored, and used and a location where known drug users, sellers, and addicts congregate and a known location for probationers. Despite expending substantial resources to obtain compliance from the owner for over a decade, the owner refused and was unable to take any action. Special Counsel was retained to proceed with a court action, but the current owner ultimately decided to market the property. Special Counsel entered into a Compliance Agreement with the new owners who rehabilitated the Bayview Property abating all dangerous and hazardous conditions. The City also recovered its costs and fees ($45,000) from the sale proceeds. RPD has since reported zero calls for service and citizen complaints. This excellent result was obtained without resorting to protracted and contentious litigation thereby saving the City and the owner substantial costs and fees.
March 21, 2023
Additionally, Special Counsel also worked with City staff on an abandoned and substandard property located on Barkley Drive (“Barkley Property”), which had been red-tagged due to the significant health and safety hazards. The owners are deceased, and no responsible party or heir stepped forward to take responsibility for the rehabilitation of the property. Again, without litigation, Special Counsel worked with a State agency for the sale of the property to a responsible property owner, who entered into a Compliance Agreement with the City. The Compliance Agreement set forth firm deadlines for the property to be brought into full compliance and the new owners fully reimbursed the City for its total costs and fees (approx. $50,000) expended for its nuisance abatement efforts.
To date, the City has obtained $328,109.75 in cost recovery, including staff time, attorney fees, abatement costs, and administrative fines in connection with the work performed by these attorneys, who are now with Civica Law Group. Special Counsel also assists staff with improving processes and procedures, staying current with changes in State law, and improving accordingly, reducing liability exposure to the City, all of which are vital, but do not have a recoverable cost component.
Given these successes obtained by Special Counsel, the City desires to continue to work with Special Counsel through Civica Law Group, APC.
In addition, Special Counsel is also assisting the City with the continued enforcement efforts of the Richmond Residential Rental Inspection Program, which will help support the City’s general fund from property owner compliance. Special Counsel is also working with City staff on updating and revising the Richmond Municipal Code to ensure compliance with all new State laws and provides legal assistance on various other matters including but not limited to; enforcement of illegal cannabis operations; license revocation; and general legal advice on internal policy and procedures to ensure compliance with all laws, thus helping mitigate City risks and potential liabilities.
DOCUMENTS ATTACHED:
Attachment 1 – Legal Services Agreement with Civica Law Group, APC