REPORT TO THE CITY COUNCIL June 16, 2016 FROM: Bruce Rudd, City Manager BY: Danielle Bergstrom, Government Affairs Manager Office of the Mayor and City Manager SUBJECT: ..title Approve a consultant services agreement with Campbell Strategy and Advocacy, LLC for an amount not to exceed $270,000 for professional lobbying and consulting services in California. ..body RECOMMENDATION Staff recommends that the City Council approve a consultant services agreement with Campbell Strategy and Advocacy, LLC for an amount not to exceed $270,000 over an 18-month period for professional lobbying and consulting services in California and authorize the City Manager, or designee, to sign the agreement on behalf of the City of Fresno. EXECUTIVE SUMMARY The Office of the City Manager and Mayor seeks City Council approval for a professional consultant services agreement with Campbell Strategy and Advocacy, LLC to perform professional lobbying and consulting activities regarding State governmental activities. BACKGROUND All functions of the City are significantly impacted by state legislative and administrative activities in Sacramento, including funding and revenue streams that can support the implementation of the City's General Plan and support local road, transit and trail programs. The City of Fresno has not had a state lobbyist presence in Sacramento since 2012. Since 2012, the funding climate has changed significantly for local governments - with the loss of redevelopment agencies in 2012, the state has heavily relied upon the auction proceeds from the cap-and-trade program to replace some of the funding gaps left from redevelopment. In addition, several other funding streams are growing to support energy efficiency, housing, road repairs and transit capital, among others. As the fifth largest city in California located in a rural region, the needs of Fresno are often misunderstood in the state capitol. Having a regular presence with strong relationships with the Governor's Office, key cabinet members, and legislative leadership is necessary to ensure that Fresno is heard in ongoing budget and legislative discussions. It is important that the representative have Fresno as their only city client in order to avoid potential conflicts of interest, especially in a strongly competitive funding environment. In addition, it is important that the City is represented in order to coordinate review of all legislative proposals that may affect the City and its residents. Recognizing this need, the City Council approved FY 15 carryover funds on December 17, 2015 to support this contract. The City issued a Request for Qualifications (RFQ) on April 4, 2016. On April 20, 2016, the City received two proposals: Campbell Strategy and Advocacy, LLC; and, Churchwell White, LLP. After interviews with both firms, Campbell Strategy and Advocacy, LLC was determined to be the best selection to represent the City given the firm's deep relationships with the Governor's Office, key legislative leaders and committee staff, and the Governor's cabinet members; their commitment to having Fresno as their sole city client; and, their familiarity with the budget and legislative negotiating process and key actors in that. The scope of work for Campbell Strategy and Advocacy, LLC will focus on three components: legislative and regulatory strategy; relationship building with key officials; and, coalition building for city legislative and regulatory priorities. ENVIRONMENTAL FINDINGS Approval of the consultant service agreement amendment is not a "project" within the meaning of Public Resources Code Section 21803 (CEQA Guidelines Section 15378) because the organizational and administrative activities as identified in the consultant agreement will not result in direct or indirect physical changes in the environment. LOCAL PREFERENCE Local preference was not implemented because no local firms responded to the RFQ. FISCAL IMPACT Funding from the mid-year carryover was set aside for a State lobbyist and has been appropriated in the FY 16 budget. Attachments: Draft Consultant Services Agreement Campbell Strategy and Advocacy, LLC Proposal of Qualifications