TITLE
Recommendation to authorize City Manager to execute a contract and all necessary amendments for state legislative representation services provided by Michael J. Arnold and Associates, Inc., for an amount not to exceed $105,432 for a period of one year; and authorize City Manager to grant two, one-year extensions, including an adjustment to the total contract amount not to exceed the Consumer Price Index, at the discretion of the City Manager. (Citywide)
DISCUSSION
The firm of Michael J. Arnold and Associates (Arnold and Associates) has successfully represented the City of Long Beach in State legislative affairs since 1983. Michael J. Arnold and Associates provides advice, technical legislative assistance, historical perspective and strong advocacy on City issues while maintaining excellent relationships with Legislators and staff in Sacramento.
The contract between the City and Michael J. Arnold and Associates for Fiscal Year 2013 (FY 13) expired on September 30, 2013. Based on the firm's unique knowledge and extensive understanding of the City of Long Beach and local government issues, as well as the reputation of the firm's partners in Sacramento, the approval of this contract is recommended.
During the past three years, the State legislature put forth numerous proposals to increase State revenues, many of which had the potential to harm local governments. Examples include: the Gas Tax Triple Flip of 2010, Redevelopment Agency dissolution in 2011, Redevelopment Agency dissolution clean-up legislation in 2012, and elimination of the Enterprise Zone Program in 2013. In each case, Long Beach was able to negotiate a more favorable outcome for the City, as compared to the State's original proposal. Arnold and Associates was intricately involved with each matter, providing advice and facilitating important communications between the City and the other parties.
Attachment A includes specific recent examples of high-priority issues Long Beach advocated for and against in Sacramento. Attachment B provides a brief biography of Michael J. Arnold and Associates, Inc., to illustrate the firm's qualifications.
It is recommended that the City Council approve a one-year contract with Michael J. Arnold and Associates, Inc., and authorize the City Manager to grant two, one-year extensions. This recommendation would result in a monthly payment of $8,480. The total proposed contract would include $101,759 for the annual retainer and up to $3,672 for approved expenses, for a total contract amount not to exceed $105,432.
TIMING CONSIDERATIONS
City Council action is requested on October 8, 2013 to ensure continuation of services from Michael J. Arnold and Associates.
This matter was reviewed by Deputy City Attorney Linda Vu and Budget Manager Dennis Strachota on September 24, 2013.
FISCAL IMPACT
The annual cost for service for the first year shall not exceed $105,432 based on a monthly retainer of $8,480, and up to $3,672 in approved annual expenses. As compared to FY 13, this contract increases the monthly retainer by $169 based on a Consumer Price Index (CPI) increase of 2.03 percent. The increase is entirely offset by a $2,028 reduction in allowable annual expenses. The total contract amount remains stable at $105,432, and has not increased since FY 09.
Funds to support this activity are budgeted in the General Fund (GP) in the City Manager's Office (CM), 56 percent of which is shared by departments and funds throughout the City that benefit from these services, including many non-General Fund operations. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PATRICK H. WEST
CITY MANAGER