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Home My WebLink About25B - AGMT CODE ENFORCEMENT SUPPORTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 20, 2018 TITLE: AMEND AGREEMENT FOR SPECIAL LEGAL COUNSEL SERVICES WITH JONES & MAYER, ATTORNEYS AT LAW TO SUPPORT CODE ENFORCEMENT EFFORTS {STRATEGIC PLAN NO. 3, 3; 5, 4E} CdX MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Jones & Mayer, Attorney at Law, for legal services in the area receivership based on nuisance conditions resulting from operating illegal marijuana dispensaries and from health and safety violations of the City's Municipal Code matters for an additional amount of $90,000 not to exceed a total contracted amount of $290,000, subject to non -substantive changes approved by the City Manager and City Attorney. The City has utilized receivership actions under the California Health and Safety Code to successfully resolve difficult code enforcement matters in both commercial and residential properties. Receivership is a legal process through which control of a real property is temporarily taken from the owners and placed with a court-appointed officer; the Receiver. These receiverships are used for abandoned and substandard properties where the owner has a history of noncompliance with the City's code enforcement efforts or, in emergency situations, where the real property presents an immediate threat to health and safety. The receivership option is a comprehensive process which eliminates substandard conditions or uninhabitable slum -like properties and allows the referring agency, when it is the prevailing party, to recuperate its enforcement costs. This process also communicates to the public that the City is actively protecting residents and tenants from dangerous conditions created by absentee or non-responsive property owners. Beginning in 2013, the City of Santa Ana has initiated more than fifteen receivership actions against dangerous and substandard properties within the City. As a result of successful prosecution of these actions, the dangerous and substandard conditions on these properties have been corrected. On August 2, 2016, the City Council approved an Appropriation Adjustment of $100,000 to the Planning and Building Agency budget for receivership activities. This item also indicated 2513-1 Amend an Agreement with Jones & Mayer March 20, 2018 Page 2 that the City would soon thereafter conduct a Request for Proposals (RFP) to retain outside legal counsel for the receivership program. In September 2016, an RFP was released inviting law firms to submit proposals to provide legal services related to the receivership program. Because the City has utilized Federal Community Development Block Grant (CDBG) funds for the program, the RFP was conducted pursuant to Federal guidelines (2 CFR 200.320(d)). The City's RFP was published for one week in the Orange County Register and copies of the RFP were mailed to law firms in the Orange County area who specialize in code enforcement litigation. Four proposals were received in response to the City's RFP. The proposals were reviewed and evaluated by staff from Code Enforcement, Planning & Building, and the City Attorney's Office. The top ranked firm was Jones & Mayer. On May 18, 2017, based on staff recommendation, the City Council approved entering into a legal services agreements with Jones & Mayer for a three year term. Jones & Mayer agreed to a capped fee by which the City will pay for attorneys' fees and costs incurred up to $18,000 for each receivership case filed, not to exceed $30,000 for the Marijuana dispensary receivership actions. Once the billed services exceed the capped amounts, Jones & Mayer will seek payment directly from the appointed receiver. In the original Agreement (#A-2017-140) under Section 2.d., Compensation, the amount to be expended for the Legal services for Jones and Mayer was not to exceed $200,000. On September 5, 2017, Council approved additional funds not to exceed $90,000 to be provided for legal services on receivership projects including code enforcement and legal actions of marijuana dispensary receiverships. Therefore the initial agreement of $200,000 plus the $90,000 is a total amount of $290,000 funds approved by City Council for code enforcement related receivership matters is $290,000. Staff requests Council approval to amend the Jones & Mayer legal Services Agreement to reflect the actual funds of $290,000 appropriated previously for legal services to be provided by Jones and Mayer. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objectives #3 (Promote a solution -based customer focus in all efforts to facilitate development and investment in the community); Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #4 (Support neighborhood vitality and livability), Strategy E (Implement innovative code enforcement practices and strategies including the use of volunteers, enhanced technologies and increased collaboration with other City departments and outside agencies to address critical livability issues citywide [e.g. overcrowding, absentee landlords, landlord/tenant rights and responsibilities, etc.]). 25B-2 Amend an Agreement with Jones & Mayer March 20, 2018 Page 3 FISCAL IMPACT Funding for this amendment in the amount of $90,000 are available in the Non -Departmental — Contractual Service account (01105015-62300). (As part of the $143,000 in the Non - Departmental — Contractual Service account (01105015-62300) approved by City Council on September 5, 2017) Candida Neal, AICP Acting Executive Director Planning & Building Agency SM:rb S:RFCA\03-20-18\PBA Amend Agreement with Jones & Mayer Exhibit: 1. Amended Agreement APPROVE AS TO FUNDS AND ACCOUNTS: y Francisco Gutierrez Executive Director Finance & Management Agency 25B-3 25B-4 25B-5 r FIRST AMENDMENT TO SPECIAL LEGAL COUNSEL SERVICES AGREEMENT WITH JONES & MAYER THIS FIRST AMENDMENT TO AGREEMENT is entered into this 6a' day of March, 2018, by and between Jones & Mayer ("Attorneys'), and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City'). RECITALS A. On June 14, 2017, the City entered into Agreement #A-2017-140 with Attorneys to provide legal services for the term of June 14, 2017 through May 18, 2020. B. In accordance with the terms and conditions of the Agreement, the parties desire to amend the Compensation amount of the Agreement to reflect an increase in additional funding approved by the City Council. THE PARTIES THEREFORE AGREE: 1. Section 2.d., COMPENSATION, shall be amended to increase compensation for the Agreement in an amount not to exceed $90,000. Therefore, the total amount of the Agreement shall not exceed $290,000. Except as hereinabove modified, the terns and conditions of said Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: Sonia R. Carvalho, City _Attorney By: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: SONIA R. CARVALHO City Attorney's Office CITY OF SANTA ANA RAUL GODINEZ II City Manager JONES & MAYER By: Richard D. Jones Title: Owner/President EXHIBIT 1 Page 1 of 1 25B-7 25B-9 25B-10