STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 10, 2026
TO: Mayors and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
SUBJECT: Authorize the City Manager to amend the Lew Edwards Group contract for an amount not to exceed $75,000 to add the production and communications services related to the Election Opinion Poll Services; and amend the FY 2025-26 Budget to appropriate an additional $75,000 for these associated services from the General Fund Reserve RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to amend the Lew Edwards Group contract for an amount not to exceed $75,000 to add the production and communications services related to the Election Opinion Poll Services; and amend the FY 2025-26 Budget to appropriate an additional $75,000 for these associated services from the General Fund Reserve.
BACKGROUND AND ANALYSIS:
On September 23, 2025, the City Council authorized the City Manager to execute an agreement with the Lew Edwards Group and FM3 to provide Election Opinion Poll Services (refer to Attachment 2).
Between November 16 to 24, 2025, FM3 Research conducted a dual-mode voter survey of 421 likely voters in November 2026 to assess community perceptions and evaluate potential local funding measures. (refer to Attachment 4) The results show that Hercules residents value their quality of life and no longer believe the City suffers from mismanagement, representing a significant improvement over prior survey years. A majority of respondents believe the City is headed in the right direction, and concerns about crime, potholes, and government transparency have declined. Residents also hold favorable views of local small businesses, the Community and Library Services Commission, and the Police Department, and more than half rate the City’s overall service delivery as excellent or good.
Survey testing indicates that a general-purpose one percent sales tax measure is the only viable revenue option, with support reaching a high of 62%, exceeding the simple majority threshold. Support for this measure is consistent across demographic groups, including renters, homeowners, and voters of color, and remains stable even after respondents are presented with both supportive and critical arguments. By contrast, a two-thirds infrastructure bond measure and the Charter and Real Property Transfer Tax concepts do not receive sufficient support to be considered viable.
Voters strongly prioritize maintaining long-term financial stability, fiscal accountability, public safety, clean and safe parks, and completion of the City’s multimodal transportation network. Preserving quality of life, preserving local control, and continuing community progress are also highly important to respondents.
Overall, the findings indicate that Hercules voters are open to a locally controlled general sales tax measure to protect essential services and maintain the City’s financial stability. At the same time, alternative revenue mechanisms lack the support needed to move forward.
The initial agreement for polling services was limited to the development and administration of the initial viability analysis. Costs associated with production and communication services, including the design, printing, and mailing of informational materials, were not part of the original scope of work. With the first phase of the viability analysis now complete, the next step in the community engagement process is to add a communications component to provide the public with clear, accessible information.
To enhance efficiency and optimize costs for the City, it is prudent to incorporate these services into the existing agreement with Lew Edwards Group rather than procuring them separately from a different vendor.
The advantages of incorporating production and communication services are outlined as follows:
Speed & Efficiency: Utilizing integrated facilities handle tight deadlines for typesetting, artwork, printing, and mailing.
Consistency: This approach guarantees uniformity in branding and messaging across all print and digital platforms.
Data Security: These services ensure secure management of personalization and voter data.
Cost-Effectiveness: Direct mail can be a budget-friendly option, particularly when employing economical formats such as postcards or targeted mailings.
Expertise: Specialized providers possess a comprehensive understanding of USPS regulations pertaining to election mail, including the necessary postage markings, thereby ensuring compliance and proper delivery.
FISCAL IMPACT:
Staff requests that the Council appropriate $75,000 from the General Fund Reserve to amend the contract with the Lew Edwards Group and FM3 Research. This amendment will cover the production and communication services, including the design, printing, and mailing of informational mailers.
ATTACHMENTS:
Resolution
Existing Contract with the Lew Edwards Group for Election Opinion Poll Services Exhibit A: Add-on Production Services, Lew Edwards Group Highlights of Winter 2025 Local Funding Measures Survey Accounting Information
(Finance Department Use Only)
Description: Lew Edwards Group and FM3 Research Contract Amendment Funding Source: General Fund Reserve
Account #100-0000-611.60-00 (PO #010281)
Budget Recap:
Total Estimated cost: $75,000 New Revenue: N/A
Amount Budgeted: $0 Lost Revenue: N/A
New funding required: $75,000 New Personnel: N/A
Council Policy Change: Yes No