May 5, 2026
TO: City Council
REQUESTED BY: Robert Johnson, City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Fifth Amendment to City Attorney Legal Services Agreement RECOMMENDATION:
Staff recommends that the City Council APPROVE Amendment No. 5 to the Legal Services Agreement between the City of San Jacinto and Best, Best & Krieger LLP and Authorize City Manager to Execute Amendment No. 5.
BACKGROUND:
Since January 20, 2000, City Attorney services have been provided to the City of San Jacinto through a legal services agreement with the law firm of Best, Best & Krieger LLP. The City pays Best, Best & Krieger LLP a monthly retainer fee for general legal services. For specialized legal services, the City pays Best, Best & Krieger LLP at hourly rates.
The Legal Services Agreement in 2004 established these specialized legal services at a $195 per hour blended rate for all attorneys and $110 per hour for paralegals and law clerks with no annual cost-of-living adjustment. Through Amendment No. 2 to the Legal Services Agreement in 2013, these rates increased to $199 per hour blended rate for all attorneys and $112 per hour for paralegals and law clerks, with an annual cost-of-living adjustment from 0% to not more than 4%. Currently, the City pays $273 per hour blended rate for all attorneys and $155 per hour for paralegals and law clerks.
The rates for BB&K’s specialized legal services have not kept up with inflation and other cost increases over the years, and BB&K performs these services at a loss. To put this into context, if an annual cost-of-living adjustment had been in place since the execution of the Legal Services Agreement, the rate for specialized legal services would be $372 per hour blended rate for all attorneys and $210 per hour for paralegals and law clerks. Essentially, BB&K’s costs to provide specialized legal services are more than the rates themselves, and BB&K is out of pocket when providing specialized legal services.
Amendment No. 5 would provide a market adjustment to the Legal Services Agreement and raise the rate for specialized legal services to $340 per hour blended rate for all attorneys and $180 per hour for paralegals and law clerks. This increase is below BB&K’s market rates but more in line with the market than the current rates. Amendment No. 5 would also update and clarify the list of specialized legal services.
The monthly retainer would not increase by this Amendment No. 5.
FISCAL IMPACT:
Depending on the amount of specialized legal services provided by BB&K, this amendment could increase legal fees by approximately $25,000 for the next fiscal year.
ATTACHMENTS:
Executed Legal Services Agreement with Amendments No. 1 to No. 3 Executed Amendment No. 4 to Legal Services Agreement
Amendment No. 5 to Legal Services Agreement