Title
Recommendation to Authorize the City Manager, or Designee, to: 1) Execute an Agreement with Terris Barnes Walters Boigon Heath Lester, Inc. (TBWBH) in an Amount Not to Exceed $132,000 for Strategic Support, Research, Ballot Measure Development, Informational Outreach and Other Steps Necessary to Prepare a Potential Revenue Measure for the November 2022 Ballot; and Execute an Agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) in an Amount Not to Exceed $37,000 for Survey Development, Implementation, and Associated Analysis Related to a Potential Revenue Measure for the November 2022 Ballot; and
Adoption of Resolution Amending the Fiscal Year 2021-22 Budget by Increasing Appropriations in the City Manager’s Office by $169,000 to Enter into Agreements with Terris Barnes Walters Boigon Heath Lester, Inc. (TBWBH) and Fairbank, Maslin, Metz & Associates (FM3) for Services Related to a Potential Revenue Measure for the November 2022 Ballot. (City Manager 10021030) [Continued from November 16, 2021; public comment closed]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff is recommending two contracts with the consultant team that assisted the City of Alameda (City) in 2019 and 2020 with consideration of a potential revenue measure, and assisted the City with the successful Measure F sales tax measure in 2018. If the City Council is in favor of exploring a revenue measure, staff is recommending a contract with TBWBH for assistance with ballot measure strategy and informational outreach, and FM3 for public opinion survey development, implementation, and analysis.
BACKGROUND
In March of 2020, the City Council was preparing to discuss a possible revenue measure for the November 2020 ballot to address a variety of identified local funding needs. COVID-19 put those discussions on hold. While the City’s General Fund continues to be bolstered by the (volatile) Transfer Tax, the 10-year financial forecasts, pension and other post-employment benefits (OPEB) obligations, and funding for climate adaption, affordable housing and other infrastructure needs make this an important consideration. Up until March of 2020, staff had been working with TBWBH and FM3 to consider four possible revenue measures for the November 2020 ballot:
- Transient occupancy tax (TOT);
- Cannabis tax;
- Infrastructure bond; and
- Business License tax.
Here’s a link to the staff report that was published, but not presented or discussed in March of 2020:
<https://alameda.legistar.com/LegislationDetail.aspx?ID=4617959&GUID=7E6A933D-BCD4-40E2-AB7F-1AF6A1BB1667&Options=ID%7CText%7C&Search=FM3&FullText=1>
DISCUSSION
If there is City Council support for exploring a revenue measure at this time, staff will work with the City Council and the consultant team to develop potential options (including a discussion regarding an affordable housing bond or other possibilities that may not have been considered in 2019-20), a schedule, and a more detailed work plan.
At this time, staff is recommending City Council support for the following two agreements:
Agreement with TBWBH
TBWBH would provide support with a feasibility assessment, ballot measure development, informational outreach and communication, and general strategy support. The services are offered on a monthly base consulting fee of $6,500, plus the printing and mailing costs, which are estimated at $21,672 per mailer. Staff has assumed that TBWBH would help the City for approximately 10 months ($65,000), plus the printing and mailing costs for up to three informational mailings, which takes the total to $130,016, which has been rounded to a not to exceed amount of $132,000. The recommended agreement, including the complete scope and budget, is attached as Exhibit 1.
Agreement with FM3
FM3 would provide survey development, implementation, analysis, and presentation support to a potential ballot measure effort. The proposal includes three survey lengths with costs ranging from $30,750 to $37,000. To create the most flexibility at this time, staff is recommending a not to exceed budget of $37,000. The length of the survey will be determined as the options are developed and the cost may be less. As with the last time the survey work was done, FM3 would offer the telephone interviews in English, Spanish, and Chinese. The recommended agreement, including the complete scope and budget, is attached as Exhibit 2.
ALTERNATIVES
• If there is interest in pursuing a potential revenue on the November 2022 ballot, staff is recommending that the City Council authorize the City Manager to enter into two professional service agreements: one with TBWBH and the other with FM3.
• The City Council could direct the City to get further proposals to evaluate prior to approving a contract.
• If the City Council is not supportive of exploring a potential revenue measure for the November 2022 ballot, then the City would not move forward with agreements with TBWBH and FM3 at this time.
FINANCIAL IMPACT
Funding for studying the potential revenue measures was included in the City Manager’s Fiscal Year (FY) 2019-20 budget prior to the onset of the COVID-19 pandemic. That funding was unused and returned to the fund balance of the General Fund. Staff is now seeking authority to appropriate an additional $169,000 in the FY 2021-22 budget of the City Manager’s Office (10021030) for the proposed agreements. The funding would be appropriated from the fund balance of the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS-REFERENCE
This action is consistent with the Alameda Municipal Code and policy documents.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) according to the CEQA Guidelines Section 15061 (b) (3).
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager, or Designee, to:
1. Enter into an agreement with Terris Barnes Walters Boigon Heath Lester (TBWBH) for an amount not to exceed $132,000 for strategic support, research, mailers, ballot language and other steps necessary to prepare a potential revenue measure for the November 2022 Ballot;
2. Enter into an Agreement with Fairbank, Maslin, Maullin, Metz & Associates (FM3) for an amount not to exceed $37,000 for Survey development, implementation, and associated analysis related to a potential revenue measure for the November 2022 Ballot; and
3. Adopt a resolution amending the fiscal year 2021-22 budget to increase expenditure appropriations in the City Manager’s Office by $169,000.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval. Alternatively, the City Council could request the City Manager to seek additional proposals to evaluate prior to approval.
Respectfully submitted,
Gerry Beaudin, Assistant City Manager
By,
Gerry Beaudin, Assistant City Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. Service Provider Agreement between City of Alameda and TBWBH Props and Measures
2. Service Provider Agreement between City of Alameda and Fairbank, Maslin, Maullin, Metz & Associates
cc: Eric Levitt, City Manager