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HomeMy WebLinkAboutStaff Report 4004 City of Palo Alto (ID # 4004) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/19/2013 City of Palo Alto Page 1 Summary Title: State Lobbyist RFP Title: Recommendation to Proceed with a Request for Proposals for State Legislative Advocacy and to Return to the Policy & Services Committee with a Recommendation on Final Contract Scope From: City Manager Lead Department: City Manager Recommendation 1. Approve a recommendation from the Policy & Services Committee to hire a state lobbyist. 2. Approve the staff recommendation to issue a request for proposals (scope attached) for state legislative advocacy services and return to the Policy & Services Committee for direction on final contract scope of services. Background At the City Council’s April 1 meeting, during its discussion of the 2013 Federal and State Legislative Program, the Council referred the issue of hiring a state lobbyist to the Policy & Services Committee. On April 9, during the Committee’s discussion of its future meetings and agendas, the Committee agreed that the City Council consider hiring a state lobbyist without further discussion. This staff report provides an overview of the City’s current federal and state legislative program and current agreements with lobbyists, and an overview of the plan and schedule for proceeding with a request for proposals for state legislative advocacy. Discussion The objective of the City of Palo Alto’s legislative program, as defined in the Council approved Legislative Action Manual, is to keep the City Council, community and staff advised of proposed legislation with a potential impact upon the City. It is the City's general policy to take timely and effective action in support of, or opposition to, proposed legislation affecting Palo Alto at the county, state, and federal levels. In addition the City, where appropriate, seeks to take the City of Palo Alto Page 2 initiative to introduce new legislation beneficial to Palo Alto and other local government entities. The groundwork for the City's legislative strategy is the Council's priorities. The City’s five key guiding principles for legislative advocacy are as follows: 1. Protect local revenue sources and prevent unfunded mandates. 2. Protect and increase local government discretion, balancing that with City values and priorities. 3. Ensure that legislation, policies and budgets retain or increase, but generally don’t decrease, the amount of local discretion held by the City and protect local decision making. 4. Oppose legislation, policies and budgets that reduce the authority and/or ability of local government to determine how best to effectively operate local programs, services and activities. The City retains the right to exceed State goals, standards or targets. 5. Protect and increase funding for specific programs and services. 6. Proactively advocate on behalf of the City. 7. Identify key legislative areas to monitor annually. Take a proactive role in working with Federal and State legislators to draft and sponsor legislation around key City priorities. Each year, the Policy and Services Committee considers the City’s general federal and state legislative program and priorities for the coming year and makes recommendations to the Council on adoption. The City also has legislative advocacy guidelines specific to utilities. Each year, the City’s Utilities Advisory Committee also reviews the City’s Utilities legislative advocacy guidelines and makes recommendations to the Council on adoption. The City is represented and supported through several federal and state legislative advocacy sources. As illustrated below, at the federal level the City is supported on general matters by a contract lobbyist, Van Scoyoc Inc., and the National League of Cities. On technical matters relating to utility electric and water programs, compliance reporting and activities, and customer rates, the Northern California Power Agency (NCPA), American Public Power Association (APPA), California Municipal Utilities Association (CMUA), and the Bay Area Water Supply & Conservation Agency (BAWSCA) provide the City with legislative and regulatory support and representation. At the state level, the legislative program is largely managed by City staff, with support from the League of California Cities. The City is also supported at the state level on technical matters related to High Speed Rail and CEQA by the Professional Evaluation Group (PEG). City of Palo Alto Page 3 Federal and State Legislative Advocacy Support The total annual cost for the City’s federal and state legislative advocacy support on both general and technical matters, not including staff time to manage the program, is approximately $343,000, with $185,000 supporting federal advocacy, and $158,000 supporting state advocacy. Attachment A provides a summary of the City’s federal and state legislative support including current agreements with federal and state contract lobbyist and legislative support from regional, state and national agencies and organizations, and a breakdown of the costs. The services described in Attachment A are different from the regulatory technical support received under the Professional Services Agreements with Navigant Consulting Services and Flynn and Associates, contracts also before Council on this agenda. The Professional Services Agreements with Navigant Consulting Services and Flynn and Associates are focused on interventions at the Federal Energy Regulatory Commission, the California Public Utilities Commission, the California Resources Board, and in California Independent System Operator proceedings, primarily as the costs to serve electric and gas customers are impacted by the various proceedings. The City’s Current State Legislative Program The City’s state legislative program on general matters is managed by staff in the City Manager’s Office, and supported by legislative leads in each department. Utilities staff also manages the legislative work and advocacy support specific to utilities matters. Staff meets monthly to coordinate all legislative issues and grant funding needs and opportunities at the state and federal level. Hiring a State Lobbyist To staff’s knowledge, the City has never retained a state lobbyist on general matters. However, there are a number of advantages of hiring a state lobbyist. For instance, lobbyists: City of Palo Alto Page 4  Are professionals in their field, providing expertise in legislative strategy and technique to facilitate legislation through the process.  Can quickly respond to issues and can assist the City in providing appropriate communication to key legislators and regulators.  Can identify where leverage needs to be applied and can point out pitfalls, because lobbyist understand the political climate in the state.  Can monitor the legislative process in an efficient and accurate manner.  Understand how legislation is formulated and can analyze and draft persuasive legislative language.  Develop good relations with legislators that may pay off well into the future.  Allow the City to devote its time where it may best be used, in providing technical advice and direction in policy. Lobbying services can however be costly. While fees will vary depending on the service agreement, generally fees will be similar to those charged by law firms. Staff recommends proceeding with a request for proposals (RFP) for state lobbying services to most effectively evaluate services and pricing. Attachment B provides a draft scope of work for the RFP. Given the wide range of the City’s current support on both general, and technical matters related to utilities, High Speed Rail, CEQA, etc., the RFP will evaluate services and costs for representation on general matters and evaluate advocacy support on technical issues separately. Additionally, the RFP will require proposers to provide a separate cost to track state grant funding opportunities. Given the potential range of services that a staff lobbyist might provide and the associated costs, staff will conduct the RFP and bring recommendations to the Policy and Services Committee. The Policy and Services Committee will consider the final scope of contract services and make a recommendation to the City Council. Timeline The draft schedule is as follows: Milestone Schedule Conduct RFP September-October Policy and Services Committee Considers Staff Recommendations November 2013 City Council Considers Policy and Services Recommendation December 2013 2014 Legislative Session Begins January 2014 City of Palo Alto Page 5 Resource Impact Given the potential range of services a state lobbyist could represent the City on general and technical matters, the cost is not known at this time. Staff will proceed with the RFP and return with a staff recommendation, including a recommendation on the the funding source. Attachments:  Attachment A. Federal and State Legislative Advocacy (DOCX)  Attachment B. Draft Scope of Service (DOCX) Attachment A. Summary of City’s Federal and State Legislative Advocacy Support The following provides a summary of the City’s federal and state legislative support including current agreements with federal and state contract lobbyist and legislative support from regional, state and national agencies and organizations. 1. Van Scoyoc Associates Inc. - Contract Lobbyist For many years, the City has contracted with firms that have provided representation for the City in Washington, DC on Federal legislative issues. The City has contracted with Van Scoyoc Associates Inc. (VSA) since 2009 to provide guidance, support and to represent the City on federal legislative issues. VSA is a bi-partisan, full-service Federal government relations firm that provides comprehensive legislative and executive branch strategic advice, liaison service, and advocacy. The City is entering into its second year of a three year agreement with Van Scoyoc for an amount not to exceed $101,000. 2. National League of Cities As a member of the National League of Cities (NLC), the City receives federal legislative advocacy support in Washington D.C. Working in partnership with 49 state municipal leagues, including the League of California Cities, the NLC is dedicated to helping city leaders build better communities and serves as a resource and advocate for its member cities. The City’s annual NLC dues is $5,400. 3. League of California Cities As a member of the League of California Cities (LOCC), the City receives state legislative and ballot measure advocacy support. Through the League, cities collectively marshal the resources to defend and expand local control in the Legislature, at the ballot box, in the courts and through strategic outreach to inform and educate the public, policymakers and opinion leaders. A team of Sacramento-based and 16 field staff work with city officials to advocate for local control and secure fiscal resources for cities in both Sacramento and Washington, D.C. The City’s annual League dues is $18,000. The dues support a wide range of services that extend beyond legislative advocacy. 4. Utilities Legislative Support The City receives legislative support and services for its Utilities primarily from the Northern California Power Agency (NCPA) and the California Municipal Utilities Association (CMUA).  Northern California Power Agency provides a legislative and regulatory program that covers both State and Federal (primarily on electric utility issues). Specifically for State legislative representation, NCPA represents public power systems before members of the state Senate and Assembly, and with the office of the Governor. NCPA provides grassroots activities and member forums on utility management issues, and provides members with regular access to the policymakers that have direct jurisdiction over the agency’s and members’ issues. NCPA also participates in and supports other advocacy groups and associations that share the same policy goals. Attachment A. Summary of City’s Federal and State Legislative Advocacy Support Palo Alto’s net share of NCPA’s state legislative budget for FY2014 is approximately $78,000. This is projected to decrease slightly over the next couple of years as NCPA transitions to a new cost allocation methodology.  California Municipal Utilities Association provides legislative, regulatory and communication services. Specifically for State legislative services, CMUA provides grassroots advocacy services; enabling members to influence legislators on critical energy and water issues, including sample oppose and support letters, bill analyses, related media stories and contact information for California’s 140 Legislators. CMUA provide regular legislative updates on all critical energy and water bills. Palo Alto’s pays approximately $44,000 annually for CMUA dues. The fees provide legislative services, and services for energy and water regulatory and communication/reporting issues. CMUA estimates that about 35% of dues are used for their advocacy purposes.  Palo Alto is also a member of the American Public Power Association (APPA). APPA participates at the federal level (not state) in legislative and regulatory forums. The Bay Area Water Supply & Conservation Agency (BAWSCA) also represents the interests of Palo Alto along with 23 cities and water districts, and two private utilities, in Alameda, Santa Clara and San Mateo counties that purchase water on a wholesale basis from the San Francisco regional water system. There is not a fixed budget for legislative advocacy within BAWSCA, but legislative advocacy may be funded on an as needed basis. 5. Professional Evaluation Group – Contract Lobbyist The City began working with John Garamendi Jr. of the Professional Evaluation Group (PEG) in January of 2012 to provide legislative advocacy services at the state level on rail issues. In January of 2013 the City extended the PEG contract for an additional year and expanded the agreement to include legislative advocacy on issues related to potential changes to CEQA. The City funded both the 2012 and 2013 agreements in an amount not to exceed $125,000 each. The total annual cost for the City’s federal and state legislative advocacy support on both general and technical, not including staff time to manage the program, is approximately $343,000. Federal Advocacy State Advocacy Van Scoyoc Agreement NLC Dues NCPA Dues (electric) APPA (utilities) BAWSCA (water) Total $101,000 $5,800 $78,000 $184,800 PEG Agreement (HSR/CEQA) CMUA Dues (energy, water) LOCC Dues Total $125,000 $15,400 $18,000 $158,400 Attachment B Draft Scope of Services for State Legislative Advocacy Services 1. Undertake advocacy, including strategy development and all related activities on general matters to attain the objectives of the City. Related activities to include meeting with legislators and staff, drafting legislative amendments, coordinating testimony at legislative hearings and administrative agencies, attending meetings and otherwise representing the City’s positions. Organize advocacy trips to promote the City’s projects and priorities. 2. Review all proposed, introduced and amended legislation, and proposed and adopted administrative rules and regulations, to determine its impact on the City, and recommend positions to be taken on the legislation. 3. Provide monthly electronic reports on status of legislation and other related matters such as bill language and committee analyses, an annual report giving an overview of the work completed and a forecast of important issues in the upcoming year. 4. Coordinate and cooperate with other organizations and firms having similar legislative objectives as the City. Where appropriate, advocate positions on legislation and work to secure language in law that will advance the City’s interests. 5. Regularly communicate with the City to assess legislative options, analyze legislation and discuss policy objectives including review and input into the City’s annual Legislative Program. Present legislative issues to the full City Council as needed/upon request. 6. Participate in regular planning and coordination meetings with City staff. 7. Prepare and file all applicable Fair Political Practices Commission (FPPC) lobbying documents and reports within all applicable deadlines, per the provisions of the Political Reform Act of 1974 as amended. 8. To evaluate City support and cost separately: a. Undertake advocacy on technical matters relating to utility programs, compliance reporting and activities, and customer rates, and High Speed Rail. b. Identify available programs that provide funding or grants for City projects and services and provide assistance in preparing applications.