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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: September 3, 2025
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: City Manager's Office
Subject: Approve a Professional Services Agreement with Palacios Law Office for Administrative Hearing Officer
services in an amount not to exceed $100,000, for a term of Six (6) Months (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Professional Services Agreement with Palacios Law Office for Administrative Hearing Officer services in an amount not to exceed $100,000, for a term of six (6) months.
Executive Summary
The Professional Services Agreement with Palacios Law Office secures administrative hearing officer services for the City over a period of six (6) months while staff conduct a Request for Proposals (RFP) for long-term administrative hearing officer services.
Administrative Hearing Officer services are a critical component of City operations as it provides individuals an opportunity to challenge administrative citations and administrative civil penalties issued by various city departments and administrative officers. Funding for these services has been budgeted for utilizing general funds in the City’s general government professional services account and fund for Fiscal Year 2025-2026.
Background
The City has historically maintained a qualified independent administrative hearing officer to address appeals to Administrative Citations and Administrative Civil Penalties (ACP) issued in violation of the San Bernardino Municipal Code (SBMC). Section
9.94.060 of the code provides for due process so that “any aggrieved person may contest an action taken by an administrative officer of the City.” Chapter 9.94 of the code lists the provisions that govern an administrative hearing officer who is responsible for making a final ruling. Section 9.94.050 outlines the independent 2 8
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manner in which they are required to conduct themselves. In keeping with the municipal code, it is appropriate for the City to periodically replace and/or reselect an administrative hearing officer through a transparent selection process at the end of their agreement.
On February 19th, 2021, in following the City’s standard purchasing procedure, a Request for Proposals (RFP F-21-19) was posted to the City’s online procurement system website Planet Bids. Sixty vendors were contacted (including over 44 City of San Bernardino firms) via email to participate in selection process. Vendors were encouraged to submit a qualifying bid by the submission deadline of April 15th, 2021.
The bidding period was held open for fifty-five calendar days to allow the maximum number for prospective bidders to participate in the RFP and submit questions to staff.
The City received a total of three (3) proposals, two (2) met the RFP minimum requirements, and one did not. Written proposals were reviewed by a selection committee comprised of City staff representing the following departments: Police, Code Enforcement, Business Registration, Animal Services, and the City Attorney’s Office.
After reviewing the written proposals, the selection committee conducted follow-up interviews with the two qualifying proposers. In making a final selection, staff evaluated proposal scores, interview scores, cost, and best fit for the role.
The evaluation panel selected Elio Palacios Jr. of Palacios Law Office in Riverside as the top candidate, and on June 2, 2021, the Mayor and City Council authorized an agreement with Palacios Law Office for four (4) years, in an amount not to exceed $200,000 annually. Palacios Law Office has extensive experience hearing cases from City departments that frequently have matters before the City’s administrative hearing officer. Furthermore, Mr. Palacios’s willingness to conduct fair and impartial hearings on behalf of the City made his firm a top choice. Finally, Mr. Palacios possess strong local experience having served as a Judge Pro Tem for the Counties of San Bernardino and Riverside, and a Hearing Officer for the cities of Perris, Weed, and Indio. The agreement with Palacios Law Office expired on June 2, 2025.
Discussion
To maintain compliance with Municipal Code Section 9.93.090, and the 2002 California Supreme Court decision Haas v. County of San Bernardino, 27 Cal. 4th 1017(due process is violated when a county or city uses an ad-hoc system to select and compensate temporary hearing officers), the City has initiated the process of obtaining long-term administrative hearing officer services and anticipate releasing a Request for Proposals (RFP) in the next sixty (60) days. The City’s current hearing officer is not precluded from submitting a proposal and being reselected.
In the interim, staff recommend approving a six (6) month professional services agreement with Palacios Law Office to ensure there are no gaps in hearing officer services while staff conduct a formal RFP process. The short-term agreement is set to begin on September 3, 2025, and will expire on March 3, 2026. The compensation amount for the six (6) month agreement will be half that of the original agreement, 2 8
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($100,000), at a rate of $85 dollars per hour. The scope of services and other compensation and expense rates will remain unchanged from the original agreement and are outlined in Exhibit A of the agreement.
At the conclusion of the administrative hearing officer RFP, staff will return to the Mayor and City Council and recommend the execution of an agreement for long-term administrative hearing officer services.
The Agreement with Palacios Law Office is being brought forward for the Mayor and City Council’s approval in accordance with Section 3.04.010 B.3. of the City’s Municipal Code (Attachment 3) and Section V (e) of the City’s Purchasing Policy (Attachment 4).
As outlined in both the Municipal Code and Purchasing Policy, a purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from the City’s Purchasing Policy.
2021-2025 Strategic Targets and Goals
Approval of a Professional Services Agreement with Palacios Law Offices for administrative hearing services aligns with Goal No. 1: Improved Operational & Financial Capacity.
Fiscal Impact
The agreement has a total fiscal impact of $100,000. A budget line item for hearing officer services was included in the Fiscal Year 2025-2026 Operating Budget utilizing general funds.
The total budgeted amount for hearing officer services in the general government professional services account and fund in Fiscal Year 2025-2026 is $250,000.
There is no additional fiscal impact associated with this item.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Professional Services Agreement with Palacios Law Office for Administrative Hearing Officer services in an amount not to exceed $100,000, for a term of six (6) months.
Attachments
Attachment 1 Second Professional Services Agreement
Palacios Law Office
Attachment 2 Original Professional Services Agreement
Attachment 3 Municipal Code Chapter 3.04
Attachment 4 Purchasing Policy
Ward:
All Wards
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Synopsis of Previous Council Actions:
December 7, 2015, The Mayor and City Council adopted Resolution No. 2015- 262 authorizing Amendment No. 1 to the agreement with
Jones and Mayer for Hearing Officer Services.
March 7, 2018, The Mayor and City Council adopted Resolution No. 2018-53 authorizing the City Manager to execute a Professional
Services Agreement between the City of San Bernardino and Graves & King LLP for Hearing Officer Services.
June 2, 2021, Professional Service Agreement (PSA) was authorized between the City of San Bernardino, and Palacios Law Office.