PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.D
SUBJECT/TITLE:
2024 FEDERAL LEGISLATIVE AGENDA AND AMENDMENT #1 TO AGREEMENT
WITH THORN RUN PARTNERS
RECOMMENDATION:
Adopt a Resolution approving Amendment #1 to the agreement with Thorn Run Partners for federal legislative advocacy services from January 2024 through June 2026, in an amount not to exceed $153,000; and approving the 2024 Federal Legislative Agenda.
BACKGROUND:
Thorn Run Partners currently provides the City with grant writing and legislative advocacy services at the federal level. As part of its services, Thorn Run has formulated the City's Federal Legislative Agendas for several years and provided focused and effective grant writing and legislative advocacy services in accordance therewith. Thorn Run has been very successful in helping to obtain funds for various City priorities and acting as a liaison to federal legislators with respect to complex issues.
2024 Legislative Agenda
Thorn Run has proposed a Federal Legislative Agenda for 2024, provided as Attachment
1.B. The legislative agenda serves as the City's official policy document for interacting with federal officials and for taking positions on legislation. At this meeting, Greg Burns of Thorn Run will review the proposed 2024 Legislative Agenda and provide an overview of current activity at the federal level.
Agreement for Legislative Advocacy Services
The current contract with Thorn Run Partners expires on December 31, 2023, but allows for extensions of the agreement. Staff recommends extending the term of the agreement for another two and a half-year period. This will allow the City to continue engaging the services of Thorn Run Partners and Mr. Burns throughout the construction of Central Coast Blue which involves applying for grants and financing with various federal agencies.
The proposed Amendment #1 (Attachment 1.A) includes modest increases in years two and three of the agreement. To align the contract with the fiscal year for budgeting purposes, staff is also recommending a modified contract period to be consistent with other similar services.
Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) approving Amendment #1 to the contract with Thorn Run Partners for federal legislative advocacy services through June 2026 in an amount not to exceed $153,000, and approving the 2024 Legislative Agenda.
12.D-1Council Agenda 12-5-2023
FISCAL IMPACT:
The fiscal impact of approving the subject Resolution is $153,000 over a two and a half- year contract term, or $4,500 per month for the first 6 months between January 1, 2024 through June 30, 2024, $5,000 per month for Fiscal Year (FY) 2025, and $5,500 per month for FY 2026. If approved, the amendment will total $27,000 in FY 2024, $60,000 in FY 2025, and $66,000 in FY 2026. This cost will be shared 50% in the General Fund and 50% in the Water and Wastewater Enterprise Funds. Of the 50% share in the Water and Wastewater Enterprise Funds, 33% of this will be allocated to the Water Enterprise Fund for the Central Coast Blue project and 67% of this will be allocated to the Wastewater Enterprise Fund for the Central Coast Blue project. There are sufficient budgeted amounts in both FY 2024 and FY 2025 to support this cost.
ALTERNATIVES:
1. Approve the Amendment with Thorn Run Partners and Modify the Federal Agenda;
2. Deny the Amendment and Federal Agenda; provide direction.
ATTACHMENTS:
1. Resolution
1.A. Exhibit A to Resolution: Amendment #1 to Agreement
1.B. Exhibit B to Resolution: 2024 Federal Legislative Agenda Submitted by: Meeting Date: December 5, 2023
Jorge Garcia, City Manager
City Manager Approval:
12.D-2Council Agenda 12-5-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING AMENDMENT #1 TO THE AGREEMENT WITH THORN
RUN PARTNERS FOR FEDERAL LEGISLATIVE ADVOCACY SERVICES FROM JANUARY 2024 THROUGH JUNE 2026, IN AN AMOUNT NOT TO EXCEED $153,000; AND APPROVING THE 2024 FEDERAL LEGISLATIVE AGENDA WHEREAS, Thorn Run Partners currently provides the City with grant writing and legislative advocacy services at the federal level; Thorn Run has formulated the City's Federal Legislative Agendas for several years and has been very successful in helping to obtain funds for various City priorities and acting as a liaison to federal legislators with respect to complex issues; and
WHEREAS, Thorn Run has proposed a Federal Legislative Agenda for 2024, which will serve as the City's official policy document for interacting with federal officials and for taking positions on legislation; and
WHEREAS, the City’s current contract with Thorn Run Partners expires on December 31, 2023, but allows for extensions of the agreement; staff recommends extending the term of the agreement for another two and a half-year period to allow the City to continue engaging the services of Thorn Run Partners throughout the construction of Central Coast Blue and other important initiatives.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves Amendment #1 (Exhibit A) to the agreement with Thorn Run Partners, LLC, for federal grant writing and legislative advocacy services for the period of January 1, 2024 through June 30, 2026 in an amount not to exceed $153,000, including $27,000 in Fiscal Year (FY) 2024, $60,000 in FY 2025, and $66,000 in FY 2026.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby approves the 2024 Federal Legislative Agenda (Exhibit B).
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of December 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
12.D-3Council Agenda 12-5-2023
Attachment 1
AMENDMENT # 1
to the
December 23, 2020 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND Thorn Run Partners, LLC
Pursuant to the December 23, 2020 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Thorn Run Partners, LLC, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1. Continued services shall be performed as set forth in Exhibit A to the December 23, 2020 agreement.
2. Exhibit B to the December 23, 2020 agreement shall be revised to reflect the payment amounts and schedule set forth below. Compensation for the continued services shall not exceed the amount of one hundred fifty-three thousand dollars ($153,000), including $27,000 in Fiscal Year (FY) 2024, $60,000 in FY 2025, and $66,000 in FY 2026, without prior written approval of the City.
(b)Schedule for Payments:
VENDOR shall bill CITY for services rendered under this Agreement. Billing shall be made monthly, as follows:
Year one, partial (January 1, 2024—June 30, 2024):
o Four thousand five hundred dollars ($4,500) per month. Year two (July 1, 2024—June 30, 2025):
o Five thousand dollars ($5,000) per month.
Year three (July 1, 2025—June 30, 2026):
o Five thousand five hundred dollars ($5,500) per month.
3. The revised fee under the December 23, 2020 contract, plus this addendum, is three hundred and three thousand dollars ($303,000).
4. The agreement term end date is hereby revised to June 30, 2026.
5. All other provisions of the above agreement between City and Vendor shall remain in full force and effect.
Signatures begin on the following page.
12.D-4Council Agenda 12-5-2023
Attachment 1.A
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Thorn Run Partners, LLC
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
12.D-5Council Agenda 12-5-2023
Attachment 1.A
City of Pismo Beach, California
2024 Federal Legislative Agenda
12.D-6Council Agenda 12-5-2023
Attachment 1.B
Prepared by Thorn Run Partners for the
Pismo Beach City Council
Mayor Ed Waage
Mayor Pro Tempore Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Jorge Garcia, City Manager
Questions regarding the information in this book may be directed to:
Greg Burns Jorge Garcia
(202) 849-8523 (805) 773-7007
December 2023
12.D-7Council Agenda 12-5-2023
Attachment 1.B
City of Pismo Beach
2024 Federal Legislative Agenda
Water Resources and Infrastructure
Central Coast Blue & Infrastructure
Support continued full funding the Bureau of Reclamation’s Title XVI Program. Support City efforts to secure federal funding for the Central Coast Blue project as well as other infrastructure projects while federal agencies implement the Bipartisan Infrastructure Law.
Energy & Environment
Energy Issues
Oppose the expansion of offshore oil and gas exploration in California’s federal waters. Support the development of offshore wind energy off the coast of California. Support the continued operation of the Diablo Canyon Nuclear Power Plant.
Proposed Designation of the Chumash Heritage National Marine Sanctuary Oppose the proposed designation of the Chumash Heritage National Marine Sanctuary.
Land and Water Conservation Fund; Open Space Opportunities & Park Amenities Support the state conservation grant program of the Land and Water Conservation Fund, which would provide opportunities for the City of Pismo Beach for acquisition or land preservation improvement opportunities.
Endangered Species Act Issues; Designation of Critical Habitat for the Monarch Butterfly Monitor the classification of the monarch butterfly as an endangered species and the subsequent designation of critical habitat for the species.
Public Safety
Grant Funding for Fire and Emergency Services
Support continued funding for FEMA’s Assistance to Firefighters Grants and Staffing for Adequate Fire and Emergency Response Grants. Support any City of Pismo Beach applications for these funds.
Social Services and Health Care
Community Development Block Grant Program
Support adequate funding for the Community Development Block Grant program for future fiscal years.
12.D-8Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Central Coast Blue & Infrastructure
BACKGROUND: To respond to increasingly frequent drought concerns, the City of Pismo Beach and its local partners, including the cities of Arroyo Grande and Grover Beach, created Central Coast Blue, a recycled water project to boost the region’s water supply and relieve concerns related to groundwater overdraft. The project will allow the region to take an effluent stream that is otherwise pumped into the ocean and put it through an advanced filtration process and then inject it into the groundwater basin, thereby helping to provide a sustainable source of water for the region. Not only will the recycled augment the natural ground water supplies, it will also create a saltwater intrusion barrier to help prevent saltwater intrusion into the basin. Once complete, the project could recycle up to 900 acre-feet of water per year in Phase One and up to an additional 3,530 acre-feet per year in Phase Two. It is expected to cost $93 million.
To capture federal funding for the project, the City of Pismo Beach submitted a feasibility study to the Bureau of Reclamation’s Title XVI WIIN Act Program that was approved in 2018. Since then, the City was awarded $796,094 in FY 2018, $1.7 million in FY 2021, and $14,124,000 in FY 2022 from the Bureau’s Title XVI program for Central Coast Blue. The City and the Central Coast Blue Regional Recycled Water Authority intend to submit for a final round of funding from the program in December 2023 and would like to reach the maximum 25 percent federal contribution, or $23 million in federal funding. The project has also received $24 million in funding from the state of California and may utilize an EPA WIFIA loan for the remaining non-federal portion of the project.
The latest Notice of Funding Opportunity (NOFO) for the Title XVI program will be used to allocate up to $179 million in available funding from the Bipartisan Infrastructure Law plus a portion of $60 million provided by Congress in the Fiscal Year 2023 Interior Appropriations bill, for a total of up to $239 million. Up to 30 awards are anticipated to be provided because of this NOFO.
POSITION: Support continued full funding of the Bureau of Reclamation’s Title XVI Program. Support City efforts to secure federal funding for the Central Coast Blue project as well as other infrastructure projects while federal agencies implement the Bipartisan Infrastructure Law.
12.D-9Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Energy Issues
BACKGROUND:
Oil & Gas Exploration
For many years, the federal government has developed five-year Outer Continental Shelf (OCS) Oil and Gas Leasing programs to guide energy exploration activities in federal waters. The last two OCS Oil and Gas Leasing programs for 2012-2022 do not include new oil or gas leasing sales off the coasts of California, Oregon, and Washington. This was due in part to consistent efforts by the governors of the states to express opposition to oil and gas development off the coast of their states.
However, in 2018, the Bureau of Ocean Energy Management (BOEM) released a draft proposed program (DPP) for the National Outer Continental Shelf Oil and Gas Leasing Program for 2019-2024. The DPP included 47 potential lease sales in 25 of the 26 planning areas, including the Pacific Coast, regardless of previous efforts to keep certain areas free from drilling. The City commented in opposition to the DPP, particularly in opposition to the two leases in the Southern California region, which includes the water off the shores of Pismo Beach.
Offshore Wind Development
In late 2021, BOEM announced the designation of the Morro Bay Wind Energy Area (WEA). The Morro Bay WEA is located approximately 20 miles offshore the central California coastline and comprises approximately 240,898 acres (376 square miles).
Then, in late 2022, BOEM announced results from their wind energy auction for five leases offshore California, drawing competitive high bids from 5 companies covering 373,268 total acres off central and northern California. BOEM claims the leased areas have the potential to produce over 4.6 gigawatts of offshore wind energy, enough to power over 1.5 million homes.
Diablo Canyon Nuclear Power Plant
The Diablo Canyon Nuclear Power Plant was planned to close in 2025 under a 2016 agreement1 between Pacific Gas and Electric (PG&E), then-Governor Jerry Brown, labor unions representing plant workers, and environmentalists who objected to the plant's location near an earthquake fault line, the potential for dangerous accidents and the problem of what to do with radioactive waste. More recently, Governor Newsom and the California legislature extended the plant's life span to 20302 to stave off blackouts while the state pursues its goal of a carbon-free grid by 2045. In November 2023, PG&E officially requested federal permission from the Nuclear Regulatory Commission (NRC) to keep the Diablo Canyon plant open for 20 more years. The NRC’s evaluation of the request will likely take years to complete and will include opportunities for public comment.
POSITION: Oppose the expansion of offshore oil and gas exploration in California’s federal waters.
Support the development of offshore wind energy off the coast of California. Support the continued operation of the Diablo Canyon Nuclear Power Plant.
1 https://subscriber.politicopro.com/article/eenews/2016/12/09/anti-nuclear-movement-set-its-sight-on-calif- closures-066637
2 https://subscriber.politicopro.com/article/2022/09/newsom-signs-california-nuclear-power-plant-extension-into- law-00054758
12.D-10Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Proposed Designation of the Chumash Heritage National Marine Sanctuary
BACKGROUND: NOAA's Office of National Marine Sanctuaries (NMS) serves as the trustee for a network of underwater parks encompassing more than 620,000 square miles of marine and Great Lakes waters from Washington state to the Florida Keys, and from Lake Huron to American Samoa. The network includes a system of 15 national marine sanctuaries and Papahānaumokuākea and Rose Atoll marine national monuments. Through the National Marine Sanctuaries Act, NOAA can identify, designate, and protect areas of the marine and Great Lakes environment that have special national significance. In California, the Monterey Bay and Channel Islands NMS are geographically close to the Central Coast region.
Proposed Chumash Heritage National Marine Sanctuary
NOAA’s proposed sanctuary designation is based on the nomination submitted by the Northern Chumash Tribal Council in July 2015.
The boundary of the Agency-Preferred Alternative for the proposed sanctuary would stretch along 134 miles of coastline from Montaña de Oro State Park in San Luis Obispo County to Naples, California, along the Gaviota Coast in Santa Barbara County and would encompass 5,617 square miles. The preferred boundary differs from the initial proposed boundary in two important ways. First, it includes a nearshore stretch of coastal waters along the Gaviota coast to include all of Gaviota State Park, as well as other high visitation state parks at Refugio and El Capitan; all of Kashtayit and Naples State marine conservation areas; and coastal and offshore resources adjacent to historical Chumash village sites at Tajiguas and Dos Pueblos.
Second, the preferred boundary excludes a wide area that could serve as a corridor for the industrial development associated with offshore wind energy production (specifically subsea electrical transmission cables and substations from the Morro Bay Wind Energy Area to shore), given that certain concentrations of this infrastructure may not be compatible with a national marine sanctuary depending on the number of cables and disturbance that could occur.
Most recently, NOAA released draft designation documents and provided a public comment period.
NOAA anticipates reviewing public comments, producing final designation documents, and designating the sanctuary in 2024. NOAA received over 3,400 comments during its most recent public comment period.
The City commented in January 2022 and in October 2023 indicating support for preserving the environment and ecology of the community, including the ocean, but also sharing concern that a new National Marine Sanctuary off the coast could lead to unintended regulatory consequences. With that in mind, the City commented in opposition to the creation of the NMS unless the proposal is modified to address ongoing concerns.
12.D-11Council Agenda 12-5-2023
Attachment 1.B
Map of the Agency-Preferred Alternative boundary Proposed Chumash Heritage National Marine Sanctuary
POSITION: Oppose the proposed designation of the Chumash Heritage National Marine Sanctuary.
12.D-12Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Land and Water Conservation Fund; Open Space Opportunities & Park Amenities BACKGROUND: The Land and Water Conservation Fund Act of 1965 was enacted to help preserve, develop, and assure access to outdoor recreation facilities for our nation. The law created the Land and Water Conservation Fund (LWCF) in the U.S. Treasury as a funding source to implement outdoor recreation goals.
The LWCF has been the principal source of monies for land acquisition for outdoor recreation by four federal agencies—the National Park Service, Bureau of Land Management, Fish and Wildlife Service, and Forest Service. The LWCF also funds a matching grant program via the National Park Service to assist states (and local governments as sub-recipients) in acquiring recreational lands and developing outdoor recreational facilities. A portion of the appropriation is divided equally among the states, with the remainder apportioned based on need, as determined by the Secretary of the Interior. The states award their grant money through a competitive selection process based on statewide recreation plans, as well as establish their own priorities and criteria. This state program could offer opportunities for the City of Pismo Beach to either purchase open space opportunities or for additional public park amenities.
The LWCF is authorized at $900 million annually. The Great American Outdoors Act, which became law in 2020, mandates that the LWCF will receive its authorized funding with 40 percent, or $360 million, allocated annually to the state grant program. Given relatively recent funding of between $100 and $125 million to the program from Congress for the past several years, this is basically a tripling of the funding and should increase the monies available to California from about $11 million to at least $33 million, thereby increasing the City’s future opportunities.
Apart from mandatory funding for the LWCF, the Great American Outdoors Act also creates a National Parks and Public Land Legacy Restoration Fund that will be funded by up to $1.9 billion per year for the next five years to help restore maintenance backlogs on National Park Service and other federal lands.
POSITION: Support the state conservation grant program of the Land and Water Conservation Fund, which would provide opportunities for the City of Pismo Beach for acquisition or land preservation improvement opportunities.
12.D-13Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Endangered Species Act Issues; Designation of Critical Habitat for the Monarch Butterfly
BACKGROUND: The City of Pismo Beach is well-known as a home to a large, seasonal monarch butterfly population from November through February. In 2014, the U.S. Fish and Wildlife Service (USFWS) received a petition to list the monarch butterfly as an endangered species, in part due to concerns over the increased use of corn-tolerant Roundup in the Midwest. Roundup kills milkweed, which is a primary food source for the butterflies. However, there is also concern for western monarch butterflies primarily due to development pressures in coastal California and the loss of suitable habitat. In response to a petition, USFWS solicited public comments in January 2015 on whether the monarch butterfly should be listed as an endangered species.
In late 2020, the USFWS found that adding the monarch butterfly to the list of threatened and endangered species is warranted but precluded by work on higher-priority listing actions. With this finding, the monarch butterfly becomes a candidate for listing; its status will be reviewed each year until USFWS is able to begin developing a proposal to list the monarch.
If protections are deemed warranted in the future, USFWS would ultimately propose critical habitat for the butterfly, which could impact the City, region, and coastal California as a whole. Critical habitat is a specific geographic area(s) that contains features essential for the conservation of a threatened or endangered species and that may require special management and protection. Critical habitat may include an area that is not currently occupied by the species but that will be needed for its recovery. Federal agencies are required to consult with the USFWS on actions they carry out, fund, or authorize to ensure that their actions will not destroy or adversely modify critical habitat. According to the USFWS, a critical habitat designation generally has no effect on situations that do not involve a federal agency—for example, a private landowner undertaking a project that involves no federal funding or permit.
Thankfully, an unofficial count of the butterfly population in 2022 shows there are nearly 300,000 monarchs at western overwintering sites, much higher than the official count of only about 2,000 two years before. While this remains down from the millions of Western monarch butterflies that are thought to have existed in the past, it remains a positive sign.
Meanwhile, the International Union for Conservation of Nature (IUCN) has decided North America’s monarch butterfly is not “endangered.” Instead, the insect is only “vulnerable” to extinction, the group said last week—adding that it could lower the alarm still further, changing the listing to “near threatened” if an upcoming census suggests the population is stable or growing. Forecasting future monarch populations is difficult, meaning that interested parties need to keep a close watch on their populations well into the future.
POSITION: Monitor the classification of the monarch butterfly as an endangered species and the subsequent designation of critical habitat for the species.
12.D-14Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Grant Funding for Fire and Emergency Services
BACKGROUND: The Federal Emergency Management Agency (FEMA) routinely makes funds available to local governments via competitive grant solicitations. The two primary FEMA programs that provide financial support for local fire rescue and emergency services are the Staffing for Adequate Fire & Emergency Response Grants (SAFER) and the Assistance to Firefighters Grants (AFG). The City of Pismo Beach may compete for these types of funds.
The primary goal of the AFG program is to meet the firefighting and emergency response needs of fire departments and nonaffiliated emergency medical service organizations by helping them to obtain critically needed equipment, protective gear, emergency vehicles, training, and other resources required to protect the public and emergency personnel from fire related hazards.
Meanwhile, the SAFER program was created to provide funding directly to fire departments and volunteer firefighter interest organizations to help them increase or maintain the number of trained, “front line” firefighters available to their communities. The goal of SAFER is to enhance the local fire departments’ abilities to comply with staffing, response, and operational standards established by the National Fire Protection Association (NFPA).
Recently, these fire safety programs have been funded with relatively healthy amounts by Congress; such funding is expected to continue into the foreseeable future.
POSITION: Support continued funding for FEMA’s Assistance to Firefighters Grants and Staffing for Adequate Fire and Emergency Response Grants. Support any City of Pismo Beach applications for these funds.
12.D-15Council Agenda 12-5-2023
Attachment 1.B
FEDERAL ISSUE: Community Development Block Grant Program BACKGROUND: The Community Development Block Grant (CDBG) program is a flexible program that provides communities with federal funding to address a wide range of unique community development needs. The CDBG program provides annual grants on a formula basis to participating jurisdictions, including San Luis Obispo County, from which the City receives a sub-allocation.
The City of Pismo Beach must use CDBG funding to target those in the community that are most economically vulnerable. In previous years, the City received sub-allocations from San Luis Obispo County and awarded those funds to the Community Action Partnership of San Luis Obispo County (CAPSLO). This CDBG funding enabled CAPSLO to provide a variety of home repairs for lower income families, seniors, and disabled individuals in Pismo Beach, reviving a City partnership with CAPSLO to address affordable housing.
Congress provided the CDBG program with $3.3 billion in FY 2023. This resulted in an allocation to San Luis Obispo County of just over $1.7 million.
POSITION: Support adequate funding for the Community Development Block Grant program for future fiscal years.
12.D-16Council Agenda 12-5-2023
Attachment 1.B