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HomeMy WebLinkAboutItem 11e - Administrative Law Judge PSA STAFF REPORT HUMAN RESOURCES DEPARTMENT DATE: July 21, 2026 TO: Honorable Mayor and City Council FROM: Anely Williams, Human Resources Director SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH THE STATE OF CALIFORNIA OFFICE OF ADMINISTRATIVE HEARINGS IN AN AMOUNT NOT TO EXCEED $48,000 CEQA: Not a Project Recommendation: Approve SUMMARY Pursuant to Government Code Sections 21154 and 21156, the City serves as a statutory delegate with the authority to make disability determinations on safety members’ applications for an Industrial Disability Retirement under the California Public Employees Retirement System (“CalPERS”). Additionally, City of Arcadia Resolution No. 6200 outlines specific appeal procedures in instances where a sworn employee can appeal the initial denial of their application. In setting forth the appeal procedures, Resolution No. 6200 references conformity to the Administrative Procedures Act and calls for an Administrative Law Judge to preside over appeal hearings. In order to utilize the services of an Administrative Law Judge, it is recommended that the City Council authorize the City Manager to execute a Professional Services Agreement with the State of California Office of Administrative Hearings (“OAH”) in an amount not to exceed $48,000 for Fiscal Year 2026-27, as this is the standard agreement amount set forth by the OAH. DISCUSSION City Resolution No. 6200, in conformity with the Administrative Procedures Act, calls for an Administrative Law Judge to preside over appeal hearings regarding Industrial Professional Services Agreements for Administrative Law Judge July 21, 2026 Page 2 of 3 Disability Retirement applications of sworn retirees. In 2020, the City Council approved a standard agreement with the OAH to fulfill the responsibility of moving through such appeal processes with an Administrative Law Judge. However, the City’s standard agreement with the OAH has since expired. As such, in order to allow the City to proceed with assigning any pending and future Industrial Disability Retirement appeals to an Administrative Law Judge, it is necessary for the City Council to authorize the City Manager to execute a Professional Services Agreement with the OAH. Procedurally, once a hearing is set through the OAH, the Administrative Law Judge will hear the case as the presiding officer, but the final decision is still made by the City Council. The Administrative Law Judge will issue their proposed decision to the City Council, who will then decide whether to adopt or reject the decision. Although the standard agreement set forth by the OAH lists a not-to-exceed value of $48,000, it is important to note that actual costs are incurred on an hourly basis. The current billing rate for an Administrative Law Judge is $395 per hour. Additional costs may include interpreter services and transcript costs based on the OAH’s contract rate with third parties, as well as filing fees of $150 per case. In order to allow the City to promptly assign appeals, as they may arise, it is recommended that the City Council authorize and direct the City Manager to execute an agreement for professional services with the State of California Office of Administrative Hearings in an amount not to exceed $48,000, as this is the standard agreement amount set forth by the OAH. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT Sufficient funds have been allocated in the Human Resources Department’s FY 2026- 27 Operating Budget to cover the costs of the standard agreement with the Office of Administrative Hearings, in an amount not to exceed $48,000. Professional Services Agreements for Administrative Law Judge July 21, 2026 Page 3 of 3 RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute a Professional Services Agreement with the State of California Office of Administrative Hearings in an amount not to exceed $48,000. Attachment: Standard Agreement with Office of Administrative Hearings BY (Authorized Signature)DATE SIGNED(Do not type) BY (Authorized Signature)DATE SIGNED(Do not type) 1.This Agreement is entered into between: LOCAL AGENCY'S NAME CONTRACTOR'S NAME Department of General Services / Office of Administrative Hearings 2 The term of this Agreement is: Upon the date of approval and execution by all parties through five years 3. The maximum amount $ 48,000.00of this Agreement is:Forty Eight Thousand Dollars and No Cents 4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made a part of the Agreement. Exhibit A – Scope of Work Exhibit B – Budget Detail and Payment Provisions Exhibit C – General Terms and Conditions IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. pages pages 1 pages CONTRACTOR’S NAME Office of Administrative Hearings PRINTED NAME AND TITLE OF PERSON SIGNING ADDRESS 2349 Gateway Oaks Drive, Suite 200, Sacramento,CA 95833 LOCAL AGENCY NAME I declare under penalty of perjury that I have full authority to execute this agreement on behalf of the Local Agency. PRINTED NAME AND TITLE OF PERSON SIGNING ADDRESS CONTRACTOR STANDARD AGREEMENT AGREEMENT NUMBER City of Arcadia City of Arcadia Dominic Lazzaretto, City Manager 240 West Huntington Drive, Arcadia, CA 91007 Page 2 of 1 EXHIBIT A SCOPE OF WORK 1. Upon request of _________________________________________________ (hereinafter referred to as “Local Agency”), the Office of Administrative Hearings (OAH) agrees to furnish the services of Administrative Law Judges (ALJs) and case management staff to the Local Agency, for the purpose of managing cases and conducting hearings under Government Code section 27727 when required personnel are available by OAH. The assignment of ALJs for hearings will be at the discretion of the Director and/or Presiding Administrative Law Judges, who may elect to hear the matter themselves. 2. Project Representatives The project representatives during the term of this agreement will be: Office of Administrative Hearings Susan L. Formaker, Division Chief Presiding Administrative Law Judge Phone: 213-576-7200 Email: Susan.Formaker@dgs.ca.gov Local Agency: Name: Title: Phone: Email: Direct all inquiries regarding this agreement to: Office of Administrative Hearings /HRQ9DQJ, Contract Analyst 2349 Gateway Oaks Dr. Suite 200 Sacramento, CA 95833 City of Arcadia City of Arcadia Dominic Lazzaretto City Manager 626-574-5401 domlazz@arcadiaca.gov Page 3 of 1 Phone: (279) - Email:OHRQYDQJ@dgs.ca.gov Local Agency: Attention: Address: Phone: Email: All invoices and billing shall be to directed to: Local Agency: Attention: Address: Phone: Email: The Project Representative and Agreement and Billing Representative may be changed through written confirmation to the other party. This change shall not require an amendment to this agreement. It may take up to two billing cycles for a change to the Local Agency Billing Contact to be in effect. 3. Services to be Performed: a. The Local Agency shall provide OAH a written request to set a matter for hearing or mediation with all pleadings, documents, papers, or other materials that have been provided to the other party. The Local Agency agrees to provide OAH copies of all applicable laws and ordinances governing the hearing at the time the request for hearing or mediation is made. The Local Agency agrees that OAH will not be able to schedule a hearing or mediation until these materials are provided. The Local Agency shall indicate in the request to set a matter for hearing if OAH is to issue a proposed or final decision in the matter. If a proposed decision is required, Local Agency shall provide the name and contact information for the decision-maker who is responsible for making the final decision. City of Arcadia, City Manager's Office Dominic Lazzaretto, City Manager 240 W Huntington Dr, Arcadia, CA 91007 626-574-5401 domlazz@arcadiaca.gov City of Arcadia, Human Resources Department Anely Williams, Human Resources Director 240 W Huntington Dr, Arcadia, CA 91007 626-574-5405 HR@arcadiaca.gov Page 4 of 1 b. The Local Agency shall electronically file the request to set a matter for hearing and all other required pleadings and papers with OAH using the secure electronic filing system offered by OAH or otherwise in accordance with OAH requirements. c. The Local Agency shall inform OAH if the hearing is to be electronically recorded or if a court reporter is required. If a court reporter is required, the Local Agency shall indicate at the time the request a hearing if they will be providing a court reporter or if OAH should provide one. Unless the Local Agency or OAH determines a court reporter is required by statute, ordinance, or regulation, the hearing will be electronically recorded by OAH. d. OAH shall perform all case management and hearing services that OAH, in its sole discretion, deems necessary to the proper handling and adjudication of the case. e. The Local Agency agrees to inform OAH 30 days prior to the hearing if any accommodations or interpreters are required. Local Agency shall be responsible for the costs of accommodations or interpreters. If OAH incurs costs for providing reasonable accommodations, interpreter or translation services for any matter under this agreement, those costs shall be borne by the Local Agency. f. Record Retention: OAH shall retain all records in accordance with its current record retention schedule. If the Local Agency requests OAH to issue a proposed decision, the exhibits will be returned to the Local Agency Project Representative along with the proposed decision at the conclusion of the matter, and the Local Agency shall be deemed the custodian of the administrative record. 4. Service Location: The services shall be performed at a location convenient for OAH and all parties. The Local Agency shall file a request for mediation or hearing directly with the local OAH office which is handling the matter. 5. Record of the Proceeding: a. If a Court Reporter is not used, OAH shall be responsible for electronic recording of all hearings, and shall impose a recording fee not to exceed the amount set by the Department of General Services through the Price Book. The current Price Page 5 of 1 Book is located at: https://www.dgs.ca.gov/OFS/Price-Book. The electronic recording fee shall only be imposed following the actual recording of a proceeding and shall not be included as part of the filing fee or electronic evidence fee. b. If OAH provides a Court Reporter, the Local Agency is responsible for all costs associated with the Court Reporter, in accordance with the current contract rates. Current contract rates, including Court Reporter and transcription costs, can be found at: https://www.dgs.ca.gov/OAH/Case-Types/General- Jurisdiction/Resources/Page-Content/General-Jurisdiction-Resources-List- Folder/Find-Contract-Information-to-Obtain-OAH-Court-Reporter-Services. c. OAH shall arrange for transcription of hearing recordings upon the request of any party to the proceeding or the Local Agency Project Representative and upon receipt of payment for transcription costs. OAH may use a vendor for transcription services. d. OAH will charge a requesting party the actual cost of preparing the administrative record. If the requesting party has been declared in forma pauperis, or has received a waiver of court fees from a court of competent jurisdiction in a case arising out of the OAH matter, and is seeking judicial review of the case before OAH, the Local Agency shall pay the full costs for preparing the administrative record and/or transcript. OAH will notify the Local Agency of the associated costs prior to preparing such records. e. OAH will not include within its administrative record any records or hearing exhibits the custody of which has been transferred to the Local Agency. OAH may prepare a clerk’s record upon request and payment of associated fees in these circumstances. 6. Rates a. In consideration of the performance of such services by OAH, the Local Agency agrees to pay to OAH the full cost of rendering such services at the rate established at the time the services are rendered. The Local Agency is responsible for the filing fee for each case filed, an electronic evidence fee for Page 6 of 1 each case filed, ALJ (including Presiding Administrative Law Judge, and Division Chief Administrative Law Judge) time billed at an hourly rate, an electronic recording fee if the proceedings are electronically recorded, the cost of all accommodation or interpreter services requested, and the full cost of any preparation of the clerk’s record or transcript at the current contract rates. b. In the event a calendared case is taken off-calendar, or needs to be re- calendared, other than by OAH, and OAH is unable to schedule the ALJ for work on another case, the Local Agency agrees to pay OAH for the original hearing time or until the ALJ is assigned to another case, whichever occurs first. Every effort will be made to promptly reassign the scheduled ALJ in the event a calendared matter is cancelled, taken off-calendar, settled, re-calendared or continued. c. The costs of OAH’s services include filing fees, ALJ hourly rates, electronic evidence fees, any reasonable costs related to any requested accommodations, and translator/interpreter fees as required. All costs associated with providing a record of the hearing (reporter/transcription, etc.) shall be billed directly to the requesting party or the Local Agency in accordance with Section 5 above. ALJ hourly rates and filing fees charged by OAH will be the rates set forth in the Department of General Services’ Price Book at the time the services are rendered. Rates for electronic evidence will be the current contract rates at the time the services are rendered. Rates for court reporters will be the current contract rates at the time the services are rendered, which vary by geographical location. Fees for translator/interpreters and transcription services will be based on current contract rates at the time the services are rendered. All rates are subject to change annually. The current contract rates for these services can be found on OAH’s website. d. The Local Agency agrees to be responsible for the full costs of any service provided by OAH on a Local Agency case, regardless of any agreement the Local Agency may have with a third party or any other cost-sharing provision. 7. The contract is effective upon approval and execution of all signatures to this contract. The term of this contract is five years from the effective date of the contract. This Page 7 of 1 contract may only be amended for term and amount upon mutual agreement of the parties. Page 8 of 1 EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS 1. The Office of Administrative Hearings is a reimbursable entity as detailed in Government Code section 11370.4. Notwithstanding any other provision of law, the total cost of services provided by the OAH shall be collected from the Local Agency entering into this agreement. 2. Parties shall keep apprised of the balance of this agreement at all times. Local Agency agrees to notify OAH when the expended amount is close to exhausting the funds in this agreement. 3. For services rendered in accordance with the Scope of Work, the Local Agency shall compensate the OAH for the full cost of services and actual expenditures incurred in accordance with the rates specified herein. Compensation for services rendered by OAH pursuant to this agreement shall not be dependent on the decision rendered by the ALJ in a hearing involving the Local Agency. OAH charges shall include the following: filing fees, electronic evidence fees, electronic recording fees, Administrative Law Judge hourly charges, and translator/interpreter fees as required. Additionally, all costs associated with providing a record of the hearing (reporter/transcription, etc.) shall be billed directly to the Local Agency. 4. Invoices shall be paid promptly and delays in payment may result in OAH’s discontinuation of services. 5. ALJ hourly rates, electronic recording fees and filing fees charged by OAH will be the rates set forth in the Department of General Services’ Price Book at the time the services are rendered. Rates for court reporters will be the current contract rates at the time the services are rendered, which vary by geographical location. Rates for electronic evidence will be the current contract rates at the time the services are rendered. Fees for translator/interpreters and transcription services will be based on current contract rates at the time the services are rendered. All rates are subject to change annually. Any training required of the ALJs by the Local Agency to conduct Page 9 of 12 these hearings will be paid out of the contract funds by the Local Agency at the prevailing ALJ hourly rate. The Price Book is available at https://www.dgs.ca.gov/OFS/Price-Book OAH shall be paid not more frequently than monthly, in arrears, upon issuance of an invoice by the Department of General Services which details charges, expenses, direct and indirect costs. Payment may be completed through direct transfer, in accordance with Service Revolving Fund Directive, SRF #1025, attached hereto as Exhibit D. For questions about establishing a wire transfer process with OAH/DGS, the Local Agency shall contact DGS at SRFFISCALSERVICES@dgs.ca.gov or the OAH Project Representative. Page 10 of 12 EXHIBIT C GENERAL TERMS AND CONDITIONS 1. APPROVAL: This Agreement is of no force or effect until signed by both parties. 2. AMENDMENT: Except as noted in Exhibit A, Paragraph 2, no amendment or variation of the terms of this Agreement shall be valid, unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 3. CANCELLATION/TERMINATION: A. This agreement may be cancelled or terminated without cause by either party by giving 30 calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation and include any final performance and/or payment/invoicing instructions/requirements. B. Upon receipt of a notice of termination or cancellation from the Local Agency, OAH shall take immediate steps to stop performance and to cancel or reduce subsequent contract costs. C. OAH shall be entitled to payment for all allowable costs authorized under this agreement, including authorized non-cancelable obligations incurred up to the date of termination or cancellation, provided such expenses do not exceed the stated maximum amounts payable. 4. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 5. SETTLEMENT OF DISPUTES: In the event of a dispute, the Local Agency shall file a "Notice of Dispute" with the Director of OAH within 10 days of discovery of the problem. Within 10 days, the Director of OAH may meet with the Local Agency for purposes of resolving the dispute. The Director of OAH shall make the final administrative decision regarding a dispute. Page 11 of 12 A. APPROVAL REQUESTED TO TRANSFER FUNDS INTO DGS ACCOUNT EXHIBIT D Service Revolving Fund (SRF) Directive – Payment By Wire Transfer SERVICE REVOLVING FUND (SRF) DIRECTIVE Number: SRF # 1025 Subject: PAYMENT BY WIRE TRANSFER Date Issued: REV 10/2018 References: SAM Section 8091 PURPOSE To outline the process for a private company to set up wire transfer documents with their banking institution in making payments to the State of California, Department of General Services (DGS). PROCEDURES The following instructions are for the private company and their banking institution, the DGS Office contact person, and the DGS SRF Receivables Analyst in requesting and processing wire transfers: Either the private company or the DGS Office is to contact SRF Receivable Analyst by E-mail at SRFFISCALSERVICES@dgs.ca.gov to obtain approval to wire transfer funds into the DGS Account. The following information is needed along with any pertinent data that would help identify the nature of the payment: 1. Company Name 2. Company Representative (name, phone, e-mail and fax number) 3. DGS Office contact person name 4. Escrow Account Number 5. Reason for payment 6. Amount If you have any questions regarding the wire transfer process, please contact SRF Receivables Analyst by E-mailing to SRFFISCALSERVICES@dgs.ca.gov or by phone at 916-376-5182. Page 12 of 12 1) PRIVATE COMPANY & BANKING INSTITUTION Provide your banking institution with the following information to set up wire transfer payments to DGS (banking customer is responsible for the payment of any processing fee): ABA Routing Number: 026009593 Account Number: 14360-80784 Department of General Services 32%R[ West Sacramento, CA 9 2) DGS OFFICE CONTACT PERSON Provide DGS OFS 2028 Report of Check/Cash Collection to the SRF Receivable Analyst as soon as you know that a wire transfer payment is in process. This will ensure the money is recorded properly in the Financial Information System for California (FI$Cal) Accounts Receivable Module. 3) DGS SRF RECEIVABLES ANLYST Once the wire transfer has been made, SRF Receivable Analyst will run the State Treasury Bank of America Report and apply the transfer using the Report of Check/Cash Collection or the E-mail from the private company or the DGS Office to record the transfer of funds in FI$Cal. B. WIRE TRANSFER PROCESS