Finance and Management Services
www.santa-ana.org/finance
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 15, 2024
TOPIC: Administrative Hearing Officers
AGENDA TITLE
Agreements with Serviam By Wright, LLP; Nastich Law, a Professional Corporation; and Palacios Law Office to Provide Administrative Hearing Officer Services (Specification 24-052) (General and Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute agreements with each of the three firms listed below for Administrative Hearing Officer services on an as-needed basis, in a total aggregate amount not to exceed $1,970,000, for an initial three-year term beginning October 15, 2024, with a provision for one, two-year extension exercisable by the City Manager and the City Attorney (Core Agreement No. A-2024-XXX).
Firms Location
Serviam By Wright, LLP Irvine, CA
Nastich Law, a Professional Corporation Berkeley, CA
Palacios Law Office Riverside, CA
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Since the 1950s, the City of Santa Ana has permitted the use of administrative hearings as a means of resolving appeals or conducting additional review on decisions made by City representatives. Hearing officers act on administrative appeals of code enforcement citations and compliance orders by serving as an impartial person who is experienced with legal processes as well as building, zoning, and other code regulations. These officers will make determinations based on the Municipal Code and have the ability to issue or modify compliance orders to improve the rate of violation abatement. Additionally, the utilization of contracted hearing officers helps reduce conflicts of interest, warrant decisions based on knowledge and understanding of the latest codes, and ensure timely appeal hearings.
Administrative hearings have become more common within government agencies as they expand their programs and services but do not wish to inundate legislative bodies
Administrative Hearing Officers
October 15, 2024
4 6
0 6
with resolving all appeals received. The City has seen an increase in demand for administrative hearings due to regulatory expansions from local or state directives.
Presently, the Santa Ana Municipal Code references administrative hearings and panels in all of the following sections:
1. Code Enforcement: SAMC § 1-18.1
2. Environmental Sanitation Violations: SAMC § 1-18.2 and SAMC § 1-21
3. Buildings and Structures: SAMC Chapter 8 (Various Subsections)
4. Rent Stabilization and Just Cause Eviction Ordinance: SAMC § 8-3145(f) (Per Ordinance No. NS-3052)
5. Refuse Violations: SAMC Chapter 16 (Various Subsections)
6. Public Safety Sensitive Business Establishments: SAMC § 18-90 through 18-105; SAMC § 22-1 through 22-16
7. Non-Regulatory Business License Tax: SAMC § 21-41
8. Cannabis Business License Tax: SAMC § 21-41
9. Hotel Visitors Tax: SAMC § 35-133
10.Utility Users Tax for Electric, Gas & Telecommunications: SAMC § 35-173
Due to the continuing increase in demand, representatives from various City agencies collaborated to consolidate their efforts for administrative hearings. Request for Proposals (RFP) 24-052 was issued on April 18, 2024 on the City’s online bid management and publication system. A summary of vendor participation and results is as follows:
Request for Proposals (RFP) 24-052 was issued on April 18, 2024 on the City’s online bid management and publication system. A summary of vendor participation and results is as follows:
427 Vendors notified
36 Santa Ana vendors notified
15 Vendors downloaded the RFP packet
6 Proposals received
0 Proposals received from Santa Ana vendors
Proposals were solicited, opened on May 28, 2024, and evaluated. Six proposals were submitted by the RFP deadline and all six were determined to be responsive to the specifications and met the City’s requirements. An evaluation committee reviewed and rated the proposals according to the criteria listed in the RFP. The following summarizes the responding firms and their rankings:
Administrative Hearing Officers
October 15, 2024
4 6
0 6
Firm Location Rank
Richard D. Jones, A Professional Law Corporation Fullerton, CA 1 Michael Raneses Administrative Hearings Tustin, CA 2
Serviam By Wright, LLP Irvine CA 3
Nastich Law, a Professional Corporation Berkeley, CA 4
Palacios Law Office Riverside, CA 5
JL Group, LLC Laguna Niguel, CA 6
The evaluation committee evaluated proposals in accordance with the RFP criteria, and determined that Richard D. Jones, A Professional Law Corporation; Michael Raneses Administrative Hearings; Serviam by Wright, LLP; Nastich Law, a Professional Corporation; and Palacios Law Office best met the City’s specifications, demonstrated vast experience working with public agencies, the capacity to provide Administrative Hearing Officer services on-site and remotely to various City Departments, and can meet the City’s needs as set forth in the RFP documents. Due to the nature and sensitivity of these services, the City performed further reviews to confirm the highest- ranked proposers’ ability to provide independent hearing officer services absent of any potential conflicts of interest. As a result, staff rescinded their initial intent to award an agreement to Richard D. Jones, A Professional Law Corporation, and Michael Raneses Administrative Hearings. Staff recommends awarding agreements to Serviam By Wright, LLP (Exhibit 1), Nastich Law, a Professional Corporation (Exhibit 2), and Palacios Law Office (Exhibit 3) to ensure sufficient resources are available for all using departments.
Approval of agreements to the abovementioned recommended firms will allow the City to contract with qualified, experienced consultants for specific administrative hearings in a timely manner and ensure sufficient resources are available to hold hearings on an as-needed basis by various Agencies citywide. Staff will also be better able to respond quickly to fluctuating demands and ultimately provide better service to customers of the City of Santa Ana.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funding for services performed by June 30, 2025 were already included in the adopted FY 2024-25 budget. Funding for subsequent fiscal years will be included in the appropriate proposed budget for City Council consideration.
Fiscal
Year
Accounting
Unit – Acct # Fund Description Accounting Unit,
Acct Description Amount
2024-
25 01110130-
62300 FMSA General Funds Contact Services
Professional $15,000
Administrative Hearing Officers
October 15, 2024
4 6
0 6
011165XX-
62300 PBA General Funds Contract Services
Professional $80,000
01216010-
62300
PBA Enforcement
Svc
Contract Services
Professional $10,000
18518700-
62300
CDA Rent
Stabilization
Contract Services
Professional $150,000
06917640-
62300
PWA Refuse
Collection Svc
Contract Services
Professional $150,000
06817641-
62300
PWA Roadway
Cleaning
Contract Services
Professional $15,000
01114XXX-
62300 SAPD General Funds Contract Services
Professional $5,000
01110130-
62300 FMSA General Funds Contact Services
Professional $15,000
011165XX-
62300 PBA General Funds Contract Services
Professional $80,000
01216010-
62300
PBA Enforcement
Svc
Contract Services
Professional $10,000
18518700-
62300
CDA Rent
Stabilization
Contract Services
Professional $ 150,000
06917640-
62300
PWA Refuse
Collection Svc
Contract Services
Professional $100,000
06817641-
62300
PWA Roadway
Cleaning
Contract Services
Professional $15,000
2025-
26 01114XXX-
62300 SAPD General Funds Contract Services
Professional $5,000
01110130-
62300 FMSA General Funds Contract Services
Professional $15,000
011165XX-
62300 PBA General Funds Contract Services
Professional $90,000
01216010-
62300
PBA Enforcement
Svc
Contract Services
Professional $15,000
18518700-
62300
CDA Rent
Stabilization
Contract Services
Professional $ 150,000
06917640-
62300
PWA Refuse
Collection Svc
Contract Services
Professional $100,000
06817641-
62300
PWA Roadway
Cleaning
Contract Services
Professional $15,000
2026-
27 01114XXX-
62300 SAPD General Funds Contract Services
Professional $5,000
2027-
28*
01110130-
62300 FMSA General Funds Contract Services
Professional $15,000
Administrative Hearing Officers
October 15, 2024
4 6
0 6
011165XX-
62300 PBA General Funds Contract Services
Professional $90,000
01216010-
62300
PBA Enforcement
Svc
Contract Services
Professional $15,000
18518700-
62300
CDA Rent
Stabilization
Contract Services
Professional $ 150,000
06917640-
62300
PWA Refuse
Collection Svc
Contract Services
Professional $100,000
06817641-
62300
PWA Roadway
Cleaning
Contract Services
Professional $15,000
01114XXX-
62300 SAPD General Funds Contract Services
Professional $5,000
01110130-
62300 FMSA General Funds Contract Services
Professional $15,000
011165XX-
62300 PBA General Funds Contract Services
Professional $90,000
01216010-
62300
PBA Enforcement
Svc
Contract Services
Professional $15,000
18518700-
62300
CDA Rent
Stabilization
Contract Services
Professional $ 150,000
06917640-
62300
PWA Refuse
Collection Svc
Contract Services
Professional $100,000
06817641-
62300
PWA Roadway
Cleaning
Contract Services
Professional $15,000
2028-
29*
01114XXX-
62300 SAPD General Funds Contract Services
Professional $5,000
*Denotes an optional extension year, not part of initial term Grand Total: $1,970,000
EXHIBIT(S)
1. Consultant Agreement for Serviam By Wright, LLP
2. Consultant Agreement for Nastich Law, a Professional Corporation
3. Consultant Agreement for Palacios Law Office
Submitted By: Kathryn Downs, Finance and Management Services Agency Executive Director
Approved By: Alvaro Nuñez, City Manager