1 February 27, 2023 City Council Meeting (Item 9):
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1195 2 December 4, 2023 City Council Meeting (Item 7)
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13062 3 January 13, 2025 City Council Meeting (Item 6)
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=15914 City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: January 20, 2026
Report #:2511-5470
TITLE
Approval of Contract Amendment Number 3 to Contract C23183770 with Townsend Public Affairs, Inc. in the amount of $186,000 to Revise the Not-to-Exceed Total to $744,000 and to Extend the Term for an Additional Year of Service (the third of four one-year options to renew) for State and Federal Legislative Advocacy and Grant Consulting and Compliance Services; CEQA Status - Not a Project
RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or designee to execute Amendment Number 3 (Attachment A) to Contract C23183770 with Townsend Public Affairs, Inc. (TPA) for an additional year to exercise the third of four one-year options to renew the services for State and Federal legislative advocacy services and grant consulting and compliance services, and to increase the not-to-exceed by $186,000. This amendment results in a revised contract not-to-exceed amount of $744,000 over this 4-year term expiring December 31, 2026. Staff will return to Council in December 2026 with the fourth and final contract amendment as directed by Council in February 2023.
BACKGROUND
On February 27, 2023, the City Council approved a contract with Townsend Public Affairs, Inc. (TPA) after the completion of a request for proposals process and extensive City Council discussion1. The City Council approved the contract as a one (1) year contract with the option to renew for four (4) additional one-year terms. In addition to approving the contract, the City Council established a time-limited Legislative Matters Ad Hoc Committee which met in 2023.
On December 4, 2023, the City Council approved Amendment 1 with TPA2 and on January 13, 2025, Council approved Amendment 2 with TPA3. The City Council approved each of these amendments as one (1) year extensions for State and Federal Legislative Advocacy and grant consulting and compliance services after TPA’s completion of services of the previous year.
ANALYSIS
TPA successfully carried forward the City’s legislative advocacy in this third year of the contract as well as expanding the City’s capacity regarding grant applications and management.
Specifically, this year TPA:
Continued providing frequent legislative updates to City Council and staff. Drafted and refined advocacy letters on bills of interest to the City. Assisted in ensuring Palo Alto’s interests were heard in Sacramento.
Helped secure federal community project funding grant for Fire Station No. 4 in the federal budget and helped get it included again when the federal government did a continuing resolution instead of adopting that budget last year. Assisted staff with navigating local impact of federal hold on all grants and financial assistance by analyzing at risk grants based on TPA’s legislative insights. Kept the City abreast of potential local impacts of pending legislation. Drafted the updated legislative guidelines/legislative platform with staff. Provided monthly updates on grant funding opportunities and assisted the City with application submissions and compliance requirements. In 2025, the City was awarded a $2,855,000 MTC grant to install electric vehicle charging stations. Other duties defined in the contract scope of work.
Per feedback from the City Council, in the initial amendment (Amendment 1), staff added text to the scope that TPA will, in legislative memos, provide written potential impacts information on select bills that the City Council will consider weighing in on at the State level. This was added to Amendment 1 and is still within the contract scope for Amendments 2 and 3. TPA has done this in their discussions with City Council in 2025 and plans to continue it into 2026.
FISCAL/RESOURCE IMPACT
The original contract has a not-to-exceed amount of $558,000 with an annual budgeted amount of $186,000 for State and Federal advocacy services and grant application and compliance services, intended to cover the cost for 3 of the 5 possible contract years (with annual City Council authorization). Staff now seeks the authorization to increase the not-to-exceed amount by $186,000 to $744,000 total for the 4-year term and to have Council authorize the 4th year of the contract to continue services. The year 4 (calendar year 2026) services will continue the annual budgeted amount of $186,000 for all services. Staff are evaluating the continuation of the full suite of services in the context of the current financial constraints and may bring forward a revised proposal to the City Council for consideration as part of the budget process.
Approval of this amendment does not preclude adjustment in the future. The contract holds a termination/adjustment clause with a 10-day noticing requirement.
The compensation schedule in Amendment 3 Revised Exhibit C clearly delineates the expected year-by-year funding associated with the February 2023 City Council motion. The compensation schedule clarifies how much money will be spent per year on the contract if the City Council exercises the option to renew each year. City Council approved $186,000 funding in the FY 2026 budget, similar to current funding allocations. Future funding is subject to City Council approval of the FY 2027 Adopted Operating Budget. The rate continues to be the per-month retainer cost of $15,500 for all three service areas/tasks (State, Federal, and grants) with no additional fees.
STAKEHOLDER ENGAGEMENT
During this current contract year, staff continued to regularly meet with TPA to discuss relevant State and Federal legislation and updates. Staff also met with TPA to discuss grant opportunities and compliance. These meetings included staff from a variety of City departments.
ENVIRONMENTAL REVIEW
Approval of this contract is not a project under the California Environmental Quality Act (CEQA), as it is an administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines 15378(b)(5).).
ATTACHMENTS
Attachment A: Amendment 3 to Contract C23183770 with Townsend Public Affairs, Inc.
APPROVED BY:
Ed Shikada, City Manager