To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
TITLE
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APPROVE THE SECOND AMENDMENT TO THE AGREEMENT WITH THE CITY OF HERMOSA BEACH TO INCREASE THE MONTHLY FEE TO THE CITY OF REDONDO BEACH BY 10% EACH YEAR FOR THE NEXT FOUR YEARS AND THEN BY 5% EACH YEAR THEREAFTER FOR CITY PROSECUTION SERVICES
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EXECUTIVE SUMMARY
The City of Redondo Beach has provided City Prosecutor Services to the City of Hermosa Beach for a flat monthly rate of $16,667.00 since October 1, 2014. The first amendment added Quality of Life services at an hourly rate. Staff recommends that the Mayor and Council approve the second amendment to the agreement to increase the monthly payments made from Hermosa Beach to Redondo Beach each year as proposed.
BACKGROUND
On September 9, 2014, the cities of Redondo Beach and Hermosa Beach entered into an agreement in which Redondo Beach would provide City Prosecutor Services to Hermosa Beach for a monthly rate of $16,667.00. On April 17, 2018, the two cities entered into a first amendment to the agreement, which added Quality of Life legal services for an hourly rate of $175.00 an hour.
Hermosa Beach has agreed to increased costs for additional reporting. The compensation shall be amended as follows:
Starting Fiscal Year 2025-2026: flat monthly fee shall be $18,444;
Starting Fiscal Year 2026-2027: flat monthly fee shall be $20,412;
Starting Fiscal Year 2027-2028: flat monthly fee shall be $22,590;
Starting Fiscal Year 2028-2029: flat monthly fee shall be $25,000; and
Starting Fiscal Year 2029-2030: an annual increase of 5% each year thereafter
Staff recommends that the Mayor and City Council approve the second amendment for increased payments as proposed above.
COORDINATION
The City Attorney's Office coordinated with the City Manager’s Office and the City of Hermosa Beach in connection with the preparation of this report.
FISCAL IMPACT
Currently, the City of Redondo Beach receives $200,004 annually from the City of Hermosa Beach. If approved, Redondo Beach will receive $221,328 in FY 25-26, $244,944 in FY 26-27, $271,080 in FY 27-28, $300,000 in FY 28-29, and then a 5% increase each year thereafter.
Submitted by:
Joy A. Ford, City Attorney
ATTACHMENTS
• Hermosa Beach Second Amendment
• Hermosa Beach First Amendment
• Hermosa Beach Agreement for Prosecution Services