REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of November 9, 2021
TO: Mayor Kelley and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Award of Contract to the Lew Edwards Group for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax RECOMMENDATION ACTION:
Adopt a resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group subject to the City Attorney’s review and available budget appropriations.
FISCAL IMPACT:
Staff requests that the Council allocate an amount not to exceed $60,000 to retain the Lew Edward’s Group for Polling and Strategic Communication Services. The City Council approved sufficient funding in the current year’s adopted budget for this purpose. No additional funds are needed at this time.
EXECUTIVE SUMARRY:
The City of Hercules is interested in determining public opinion of registered voters regarding 1) the feasibility of going to the voters in November 2022 or November 2024 to extend the existing Utility Users Tax (UUT) prior to its expiration on January 1, 2025, and 2) the viability of becoming a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT). To meet this objective, the City is seeking an experienced consultant with a proven tra ck record of success assisting public agencies in passing revenue measures to conduct a pre -election opinion poll to determine the level of community support for these new revenue measures that will continue to fund capital infrastructure projects, City services and other community priorities.
On October 14 th, the City released a Request for Proposals (RFP) for Election Opinion Poll Services (ATTACHMENT A). The purpose of this RFP was to retain a team of
consultants to conduct an opinion poll and provide strategic communication guidance to the City for the UUT and RPTT ballot measures. On October 28th, the consulting team led by the Lew Edwards Group , along with FM3 Research , submitted a proposal that is responsive to the City’s needs. Staff seeks authorization to enter a contract with the Lew Edwards Group to conduct the polling analysis and provide strategic guidance to the City.
BACKGROUND AND ANALYSIS:
In May of 2021, the City Council requested staff to conduct a pre-election opinion poll to determine the level of community support for an extension of the Utility Users Tax, which will otherwise expire on January 1, 2025, and the feasibility of becoming a charter city for the limited purpose of increasing the Real Property Transfer Tax.
The City’s Utility Users Tax is a tax upon every person or entity in the City on their use of mobile telecommunications, video services (cable tv), electricity, natural gas, and water services. The tax imposed is at the rate of six percent (6%) of the charges made for such services, with an additional 2% temporary increase approved in 2013. The tax is collected from the service user by the service supplier or its billing agent.
The City of Hercules relies on the UUT to provide sufficient on-going revenues to sustain current levels of service. The UUT sunsets January 1, 2025. The UUT is estimated to generate a projected $ 3.5 million in revenue in the fiscal year which ends June 30, 2022.
Without these revenues the city would not be in the position to contin ue to provide the services important to our community even at the current reduced level. While there has been some improvement in revenues overall, Hercules still receives a low share of the property taxes compared to other cities in Contra Costa County, a nd its retail tax base while largely weathering the effects of Covid -19 is not significant enough to support current service levels without the UUT.
The consulting team led by the Lew Edwards Group and FM3 Research submitted a proposal that demonstrates their understanding of the City’s needs and scope of the project; description of past efforts to determine registered voters’ opinion regarding ballot measure topics; description of recommended approach, research methodology, recommended timeline, and work plan; management plan with a description of qualifications of the key personnel selected to lead the scope of services.
If awarded the contract, the Lew Edwards and FM3 Research will perform the following tasks related to the UUT and RTTP initiatives:
• Collaborate on this initiative with both City staff and City Council • Host an initial meeting to kick off the process with City Staff • Work with City staff to determine the content and questions for the opinion poll and recommend the methodology (phone a nd/or other means) to conduct the poll to maximize input received
• Recommend unique ways to reach all aspects of Hercules City’s diverse voter population
• Submit preliminary survey results in written form to the City • Hold an initial meeting with City staff to review the preliminary results • Submit a topline report and detailed data analysis within thirty (30) days of the conclusion of the opinion poll administration
• Prepare, in coordination with City staff, a City Council presentation to be scheduled following the submittal of all written reports
• Develop a Strategic Communication Plan and recommend ongoing communications throughout the process
• Assist in developing ballot measure and ordinance language should the City move forward with the placement of a revenue ballot measure in November 2022 or 2024.
Staff recommends that the City Council a uthorize the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group.
Attachments:
1. Resolution
2. Election Opinion Poll Services Proposal for the City of Hercules