EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: September 5, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Greg Henry, Senior Management Analyst
SUBJECT: Agreement with Ken Brown Strategic Consulting
Recommendation
Adopt a resolution:
1. Authorizing the City Manager negotiate and execute a retainer agreement with Ken Brown Strategic Consulting, in a form approved by the City Attorney, for amount not to exceed $155,000 and for a term through June 30, 2024; and
2. Waiving the formal bid procedures under section 2.84.070(D) of the Municipal Code.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Ensure our financial and organizational health
Background
Ken Brown Strategic Consulting (KSBC) has provided include staffing and expert support in government affairs consulting activities at the Federal level and, from Sacramento firm Nossaman LLP, the State level since 2012. KBSC provides government affairs services, including representation before Congress and federal agencies and strategic consulting to advance the City’s priorities.
More recently, on July 7, 2020, the City Council adopted a Resolution authorizing the City Manager to execute an extension to the retainer agreement with KSBC, for an amount not-toexceed $125,000 for the period of July 1, 2020, through June 30, 2021.
The City Council’s approval accounted for a monthly retainer fee of $8,750 per month, for a total of $105,000 per year, plus reasonable expenses of up to $10,000, and $10,000 to help the City apply for an $8 million grant from the U.S. Economic Development Administration (EDA) to fund critical water infrastructure.
On March 2, 2021 the City Council approved an extension to the agreement with KSBC for three additionally years of the retainer agreement and separately as needed grant support activities specifically, due to the need for added capacity to respond to EDA and Prop. 68 opportunities, where the City asked KSBC to draft and submit grant applications on behalf of the City.
Recent highlights of the work KBSC and Nossaman performed for East Palo Alto include:
· Working with the City to include $2 million for water infrastructure improvements in the FY 2024 California state budget. This request was successful and the City will receive these funds.
· Working with the City to include $1.6 million for a new athletic field at the Los RoblesRonald McNair Academy and $850,000 for safety improvements on East Bayshore Road in the FY 2024 House Transportation HUD Appropriations bill. This request is pending approval in the federal budget.
· Working with the City to obtain $1.5 million for the new East Palo Alto Public Library and $800,000 for a water and sewer infrastructure financing plan in FY 2023 Congressional appropriations.
· Working with the City to secure $8 million in the FY 2023 California State budget for the Weeks Street affordable housing development.
· Working with the City to obtain $800,000 to rehabilitate the O’Connor Pump Station and $555,000 to renovate the Cummings Loft in FY 2022 Congressional Appropriations. · Working with the City to secure a $4.4 million grant from the U.S. Economic Development Administration (EDA) to complete the reconstruction of Bay Road, including the stormwater infrastructure components of the project. · Supporting the City’s successful application that received $20 million in Affordable Housing and Sustainable Community funding to build new affordable housing and improve the region’s mass transit system.
· Working with the City and its state legislators to ensure that the state redevelopment agencies legislation (Senate Bill 107) would enable East Palo Alto to receive repayment of $12 million from two previous loans issued to its redevelopment agency. The recovery of this $12 million enabled the City to maintain progress on key priority projects.
· Working with the City to implement an aggressive, proactive strategy to ensure that the $13 million in Congressional earmarks for Bay Road and the University Avenue overpass were not repurposed by Caltrans and the Metropolitan Transportation Commission.
· Maintaining strong relationships key federal agencies (e.g., HUD, the Departments of Justice, Transportation, Labor, Health and Human Services, the EPA, Army Corps, and Economic Development Administration), the White House, and the Washington staff of the City’s Congressional delegation.
· Maintaining strong relationships with key state agencies (e.g., Caltrans, the Department of Water Resources, the Water Resources Control Board, State Infrastructure Bank, Department of Parks and Recreation, and other agencies), the Governor’s office, and the Sacramento staff for the City’s state legislators.
· Monitoring and providing updates on various federal and state legislation of interest to East Palo Alto.
Analysis
This is a critical time for the City of East Palo Alto to maintain strong relationships in both State and Federal contexts, thus positioning the City to take advantage of key initiatives that may be made available. Staff recommends a new agreement with KSBC for the current Fiscal Year at the current annual not to exceed of $155,000. This would match the City Council’s prior approval accounted for a monthly retainer fee of $9,750 per month, for a total of $117,000 per year, plus reasonable expenses of up to $8,000, and $30,000 for other as needed on call services.
Pursuant to East Palo Alto Municipal Code Section 2.84.070(D), Staff are requesting this current year contract be no-bid for the following reasons:
· Urgency and Timeliness: Given that we are already 3-months into the Fiscal Year this is a time-sensitive matter that require immediate attention. In particular the following projects are ongoing and would benefit from the contained support of KBSC and Nossaman in the Fiscal Year:
o Working to ensure funding is maintained for East Palo Alto in the FY 2024 federal appropriations bills.
o Identifying state and federal grant opportunities to support the City’s priorities and helping the City pursue those funding sources.
o Continuing to help East Palo Alto develop and maintain relationships with key officials at the White House, U.S. EPA, HUD, Department of Commerce Economic Development Administration, Department of Justice, Department of Labor, Army Corps of Engineers and other federal agencies, and with the Washington staff of your Congressional delegation.
o Continuing to help the City develop and maintain relationships with key officials at various state agencies, the Governor’s office and the Sacramento staff of your state legislators.
o Organizing in-person or virtual meetings for City leaders with State officials in Sacramento.
o Organizing in-person or virtual meetings for City leaders with Federal officials in Washington, DC in the first quarter of 2024.
o Continuing to monitor and advocate for national and state legislation that will provide opportunities for the City to obtain assistance for its community revitalization priorities, including economic development, brownfields revitalization, infrastructure, violence prevention, and other matters impacting local governments.
As such, this agreement is time-critical and requires swift action, so the City Council should opt for a direct agreement to avoid delays associated with a formal bidding process. · Relationship and Trust: Ken Brown Strategic Consulting has worked with the City since 2012 and built significant trust and successful collaborations. · Strategic Importance: Given the City’s need for direct support from the federal and state government, this of significant strategic importance to the city and its development. The City Council should ensure that these are executed in a way that aligns with their vision, which involves working directly with Mr. Brown.
Over the current Fiscal Year, it is the intention of staff to issue a Request for Qualifications (RFQ) and return to the City Council prior to the end of the Fiscal Year for discussion and consideration of the best possible candidate.
Fiscal Impact
This item was budgeted at the previous expected amount of $125,000 in the City Manager's Office budget under the General Fund. The additional $30,0000 will be accounted in the midyear budget amendment either from General Fund budget savings or reserves.
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Reso Agreement Ken Brown FY2023-2024