REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of Mayor & City Manager BY: JOHN ELLIS, Government Affairs Manager Office of Mayor & City Manager SUBJECT ..Title Approve a Consultant Services Agreement with Campbell Strategy and Advocacy, LLC., for an Amount Not to Exceed $180,000 annually, for Professional Lobbying and Consulting Services. ..Body RECOMMENDATION Staff recommends that the City Council approve a consultant services agreement with Campbell Strategy and Advocacy, LLC. (Campbell Strategy), for an amount not to exceed $360,000. The term of the agreement is two years, with the option of two additional one-year extensions. EXECUTIVE SUMMARY The Office of the Mayor and City Manager seeks City Council approval to approve a professional consultant services agreement with Campbell Strategy, the City's current state lobbyist, to continue performing professional lobbying and consulting activities regarding state governmental activities for two years, with two additional one-year extensions on the agreement of both parties. BACKGROUND All functions of the City are significantly affected by state legislative votes and administrative actions in Sacramento. From funding and revenue streams that can help ensure the City can build affordable housing and address homelessness, to support for local road, transit and trail programs, to grant opportunities for everything from parks to broadband and now, state administered grant funding allocations from the American Rescue Plan and Infrastructure Act. Activities in the state Capitol have a direct affect on resources made available to Fresno. The City engaged a state lobbyist on June 16, 2016, for the first time since 2012. The hiring of Campbell Strategy, was a pivotal move for the City, coming at a time of great change for local governments. Since then, Campbell Strategy's most notable strength as the City's state general lobbyist has been helping the City receive much needed state funding. As the state's fifth-largest City - and one with a numerically small legislative delegation - in the past, it had been difficult for Fresno to make its voice heard as it was often crowded out by the Bay Area and Los Angeles-area delegations. Greg Campbell is widely recognized as a highly influential lobbyist, he has nearly two decades of experience as a State Capitol staffer, including serving as chief of staff to Assembly Speakers Toni Atkins and John Perez. Mr. Campbell's insight has brought significant benefits to Fresno on multiple fronts. A prime example of this was securing $25 million Fresno in the current state budget for construction of a regional fire training center. Mr. Campbell's relationship with legislative leaders played a critical role in securing these funds. Mr. Campbell also played an essential role in helping Fresno and California's other local jurisdictions secure $1 billion annually over two years to address the homeless crisis amplified by the pandemic, including Project Homekey investments, which have allowed the City to purchase and renovate area motels for transitional housing for our most vulnerable residents. Already this year, Campbell Strategy is engaged in securing a major budget request for Fresno's high-speed rail station - the nation's first - as well as for housing, parks and infrastructure improvements. Mr. Campbell and his team, led by lobbyist Angie Manetti, helped the City secure money by coordinating meetings with the appropriate state agencies, following up to emphasize City priorities, and meeting with the Assembly Speaker's office, budget subcommittee chairs and Capitol staff. Along the way, Campbell Strategy tracked the appropriations to ensure money slated for the City stayed on track. In addition to appropriations, it is important that the City is represented in order to coordinate review of legislative proposals that may affect the City and its residents. Campbell Strategy has deep relationships with the Governor's Office, key legislative leaders and committee staff, and the Governor's cabinet members. Fresno remains its sole municipal government client, and Campbell Strategy's familiarity with the budget and legislative negotiating process and key actors have proven - and will continue to prove - beneficial for the City and our residents. As stated in the proposed Scope of Services, Campbell Strategy's top priority for the City will be seeking significant discretionary funds, specifically related to housing and homelessness. As part of Campbell Strategy's lobbying effort, the firm will continue to review all bills introduced and amended throughout the Legislative Session to identify those that affect the City, will make recommendations as to whether the City should support, oppose, seek amendments to, or simply monitor bills of interest. Campbell Strategy will produce a focused lobbying strategy for each bill of interest to the City. Its work has helped derail legislation that could have financially harmed the City, including repeated legislative efforts to redistribute sales tax revenue the City has fought hard to earn through infrastructure investments and business recruitment. The firm has also shown that it will go beyond straightforward lobbying on bills. When necessary, it has helped build coalitions of cities or other entities that share our vision for certain legislative proposals. This strategy has helped the City mount successful campaigns to defeat or win approval, as appropriate, for important legislation. The firm will also maintain and build on key relationships that will be vital to executing successful strategies on behalf of the City. To date, Campbell Strategy has proven that no other state firm has developed the web of relationships in both the legislative and executive branches that are necessary for the City to get its fair share of both resources and attention at the state level. ENVIRONMENTAL FINDINGS Approval of the consultant services 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 Campbell Strategy and Advocacy, LLC. is uniquely qualified. FISCAL IMPACT The proposed agreement includes a rate that is unchanged from what the firm currently charges the City. Funding for the period beginning July 1, 2022, will be appropriated in the FY 2023 Proposed Budget. The period beginning on July 1, 2023, will be addressed in future budget proposals. Attachments: Consultant Services Agreement Uniquely Qualified Memorandum