HomeMy WebLinkAboutStaff Report 2511-5470CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Tuesday, January 20, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
9.Approval of Contract Amendment Number 3 to Contract C23183770 with Townsend
Public Affairs, Inc. in the amount of $186,000 to Revise the Not-to-Exceed Total to
$744,000 and to Extend the Term for an Additional Year of Service (the third of four one-
year options to renew) for State and Federal Legislative Advocacy and Grant Consulting
and Compliance Services; CEQA Status - Not a Project
1 February 27, 2023 City Council Meeting (Item 9):
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1195
2 December 4, 2023 City Council Meeting (Item 7)
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13062
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: January 20, 2026
Report #:2511-5470
TITLE
Approval of Contract Amendment Number 3 to Contract C23183770 with Townsend Public
Affairs, Inc. in the amount of $186,000 to Revise the Not-to-Exceed Total to $744,000 and to
Extend the Term for an Additional Year of Service (the third of four one-year options to renew)
for State and Federal Legislative Advocacy and Grant Consulting and Compliance Services; CEQA
Status - Not a Project
RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or designee to
execute Amendment Number 3 (Attachment A) to Contract C23183770 with Townsend Public
Affairs, Inc. (TPA) for an additional year to exercise the third of four one-year options to renew
the services for State and Federal legislative advocacy services and grant consulting and
compliance services, and to increase the not-to-exceed by $186,000. This amendment results in
a revised contract not-to-exceed amount of $744,000 over this 4-year term expiring December
31, 2026. Staff will return to Council in December 2026 with the fourth and final contract
amendment as directed by Council in February 2023.
BACKGROUND
On February 27, 2023, the City Council approved a contract with Townsend Public Affairs, Inc.
(TPA) after the completion of a request for proposals process and extensive City Council
discussion1. The City Council approved the contract as a one (1) year contract with the option to
renew for four (4) additional one-year terms. In addition to approving the contract, the City
Council established a time-limited Legislative Matters Ad Hoc Committee which met in 2023.
On December 4, 2023, the City Council approved Amendment 1 with TPA2 and on January 13,
2025, Council approved Amendment 2 with TPA3. The City Council approved each of these
amendments as one (1) year extensions for State and Federal Legislative Advocacy and grant
consulting and compliance services after TPA’s completion of services of the previous year.
ANALYSIS
Continued providing frequent legislative updates to City Council and staff.
Drafted and refined advocacy letters on bills of interest to the City. Assisted in ensuring
Palo Alto’s interests were heard in Sacramento.
Helped secure federal community project funding grant for Fire Station No. 4 in the
federal budget and helped get it included again when the federal government did a
continuing resolution instead of adopting that budget last year.
Assisted staff with navigating local impact of federal hold on all grants and financial
assistance by analyzing at risk grants based on TPA’s legislative insights.
Kept the City abreast of potential local impacts of pending legislation.
Drafted the updated legislative guidelines/legislative platform with staff.
Provided monthly updates on grant funding opportunities and assisted the City with
application submissions and compliance requirements. In 2025, the City was awarded a
$2,855,000 MTC grant to install electric vehicle charging stations.
Other duties defined in the contract scope of work.
FISCAL/RESOURCE IMPACT
schedule clarifies how much money will be spent per year on the contract if the City Council
exercises the option to renew each year. City Council approved $186,000 funding in the FY 2026
budget, similar to current funding allocations. Future funding is subject to City Council approval
of the FY 2027 Adopted Operating Budget. The rate continues to be the per-month retainer
cost of $15,500 for all three service areas/tasks (State, Federal, and grants) with no additional
fees.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Vers.: Aug. 5, 2019
Page 1 of 6
AMENDMENT NO. 3 TO CONTRACT NO. C23183770
BETWEEN THE CITY OF PALO ALTO AND
TOWNSEND PUBLIC AFFAIRS, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C23183770 (the “Contract”
as defined below) is entered into as of December 15, 2025, by and between the CITY OF PALO
ALTO, a California chartered municipal corporation (“CITY”), and TOWNSEND PUBLIC AFFAIRS,
INC, a California Corporation, located at 1401 Dove Street, Ste. 330, Newport Beach, California,
92660 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in
this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of representing CITY in all federal and state legislative advocacy matters
including grant seeking and funding advocacy, as detailed therein. The Contract as first approved
the not-to-exceed amount for the first three years but only approved the term for the first year.
B. The Parties entered into Amendment No.1 in order to update the scope of
services, revise the compensation schedule, and extend the contract term by twelve months
through December 31, 2024, without any additional cost to the CITY, as detailed therein.
C. The Parties entered into Amendment No. 2 in order to (1) extend the contract
term by an additional twelve-month period through December 31, 2025, and (2) revise the
compensation schedule to reflect the extension, at no additional cost to the CITY, as detailed
therein.
D. The Parties now wish to amend the Contract in order to (1) extend the contract
term by an additional twelve-month period through December 31, 2026, (2) increase not to
exceed by One Hundred Eighty-Six Thousand Dollars ($186,000) from Five Hundred Fifty-Eight
Thousand Dollars ($558,000) to Seven Hundred and Forty-Four Thousand Dollars ($744,000) and
(3) revise the compensation schedule to reflect the extension, and as detailed herein. This will
authorize the not-to-exceed amount through 2026.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C23183770
between CONSULTANT and CITY, dated January 1, 2023, as amended by:
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Amendment No.1, dated November 2, 2023
Amendment No.2, dated December 24, 2024
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, Entitled “TERM” of the Contract is hereby amended to read as
follows:
“The term of this Agreement shall be from the date of its full execution through December 31,
2026, with the option to extend for one (1) more periods of one (1) year each, unless terminated
earlier pursuant to Section 19 (Termination) of this Agreement. CITY shall notify CONSULTANT of
its intent to exercise its option to renew in writing no later than ninety (90) days before the end
of the term of this Agreement.”
SECTION 3. Section 4, Entitled “NOT TO EXCEED COMPENSATION” of the Contract is
hereby amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services shall be based on
the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any
reimbursable expenses specified therein, and the maximum total compensation shall not exceed
Seven Hundred Forty-Four Thousand Dollars ($744,000.00). The hourly schedule of rates, if
applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed
compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-
exceed compensation amount of zero Dollars ($0) for the performance of Additional Services (as
defined below). The total compensation for performance of the Services, Additional Services and
any reimbursable expenses specified in Exhibit C, shall not exceed Seven Hundred Forty-Four
Thousand Dollars ($744,000.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper
completion of the Project, but which is not included within the Scope of Services described at
Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the
maximum amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY
as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task
Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project
Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled
“PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of
services, schedule of performance and maximum compensation amount, in accordance with the
provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in
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Page 3 of 6
the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C,
the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall
become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task
Orders authorized under this Agreement shall not exceed the amount of compensation set forth
for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an authorized Task Order and only up to the maximum amount of
compensation set forth for Additional Services in this Section 4. Performance of and payment for
any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are
hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2”, AMENDED,
REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
TOWNSEND PUBLIC AFFAIRS, INC.
Officer 1
By:
Name: Christopher Townsend
Title: President
Officer 2
By:
Name: Christopher Townsend
Attachments:
EXHIBIT C: “COMPENSATION, AMENDMENT NO. 3” (AMENDED, REPLACES PREVIOUS)
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EXHIBIT C
COMPENSATION, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms
and conditions of this Agreement, and as set forth in the budget schedule below. Compensation
shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional Services
(if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this
Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE – Annually and Total
TASK
(2023) (2024)
Year 3
(2025)
Year 4
(2026)
NOT TO
EXCEED
AMOUNT
Year 5 (2027 –
If approved)
Task 1
(Grant Consulting and
Compliance Services)
$48,000
($4,000/mo) $48,000 $48,000 $48,000 $192,000 $48,000
(Federal Legislative
$72,000
($6,000/mo) $72,000 $72,000 $72,000 $288,000 $72,000
(State Legislative
Advocacy Services)
$114,000
($9,500/mo) $114,000 $114,000 $114,000 $456,000 $114,000
Bundled Cost Structure
(Tasks 1, 2, and 3)
($48,000)
($4,000/mo) ($48,000) ($48,000) ($48,000) ($192,000.00) ($48,000)
$186,000 $186,000 $186,000 $186,000 $744,000.00 $186,000
(if any) $0 $0 $0 $0 $0.00 $0
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Total for Services and
Reimbursable
Expenses
$186,000 $186,000 $186,000 $186,000 $744,000.00 $186,000
Additional Services (if
any, per Section 4) $0 $0 $0 $0 $0.00 $0
Maximum Total
Compensation $186,000 $186,000 $186,000 $186,000 $744,000.00 $186,000
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will
be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
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