City Attorney Mike McMahan and members of his staff may become city employees, the City Council was told.
The city has long had an arrangement with the firm that included the late Eugene Collins, then Randy Nelson and now Mr. McMahan.
The city has made payments to the firm and also paid a portion of the rent on offices at the Pioneer Bank Building.
However, the firm is now set to move into space on the second floor of the City Hall Annex that is across 11th Street from City Hall.
The renovation work for the second floor is to be done by George Wright Construction for $50,853 counting the contingency.
With the recent retirement of Mr. Nelson, the firm now includes six attorneys, six clerical personnel and an investigator.
Daisy Madison, city finance director, said the city would gain some savings with the change.