HomeMy WebLinkAboutItem FU�Of SEA('e�
AGENDA STAFF REPORT
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DATE: July 25, 2016
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Robin L. Roberts, City Clerk
SUBJECT: KHOURI CONSULTING AGREEMENT (AB 1217)
SUMMARY OF REQUEST:
That the City Council receive and file the Khouri Consulting Agreement approved
by the City Council as an Urgent Item on June 27, 2016 in regards to Assembly
Bill 1217.
BACKGROUND AND ANALYSIS:
On June 8, 2015, the City Council approved the initial agreement with Khouri
Consulting to promote the opposition of AB 1217, thereby working for the City of
Seal Beach to maintain OCFA Board representation. The first hearing was to be
held on July 2, 2015; however, was cancelled by the author.
In late June 2016, after the posting of the June 27, 2016 City Council Meeting
Agenda, the Senate Committee on Governance and Finance set a hearing date
of June 29, 2016 for amended AB 1217. At the June 27, 2016 City Council
meeting, the City Council unanimously voted to add Item BB — An Urgent Item,
Khouri Consulting Agreement, to represent the City of Seal Beach in opposition
of AB 1217 to the Agenda for consideration. The City Council then unanimously
approved the agreement and directed the City Attorney to approve as to form the
agreement and directed the City Manager to execute the agreement on behalf of
the City. The agreement has subsequently been made available to the public
and is being brought back to the City Council in an effort of additional
transparency to receive and file.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
Agenda Item F
LEGAL ANALYSIS:
The City Attorney has reviewed and approved the Khouri Consulting Agreement.
FINANCIAL IMPACT:
This City Council approved expenditure was in the amount of $30,000 and will be
charged to 001 - 010 - 44000.
RECOMMENDATION:
That the City Council receive and file the Khouri Consulting Agreement approved
by the City Council at Closed Session on June 27, 2016 in regards to Assembly
Bill 1217.
SUBMITTED BY: NOTED AND APPROVED:
Robin L. Roberts, City Clerk it . Ingram, City nager
Attachments:
A. Khouri Consulting Agreement
B. Senate Committee on Governance and Finance AB 1217 6/23/2016
Page 2
Attachment "A"
PROFESSIONAL SERVICES AGREEMENT
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
0
Khouri Consulting
1215 K Street, Suite 1700
Sacramento, California 95814
916.605.8975
Page 1 of 13
This Professional Service Agreement ("the Agreement ") is made as of the 28th day of
June, 2016 (the "Effective Date "), by and between Khouri Consulting ( "Consultant ") and
the City of Seal Beach ( "Cityl, a California charter city, (collectively, 'the Parties ").
RECITALS
A. City desires certain professional services.
B. Consultant represents that it is qualified and able to provide City with such
services.
NOW THEREFORE, in consideration of the Parties' performance of the
promises, covenants, and conditions stated herein, the Parties hereto agree as follows:
AGREEMENT
1.0 Scope of Services
1.1. Consultant shall provide those services ( "Services ") set forth in the
attached Exhibit A, which is hereby incorporated by this reference. To the extent that
there is any conflict between Exhibit A and this Agreement, this Agreement shall control.
1.2. Consultant shall perform all Services under this Agreement in accordance
with the standard of care generally exercised by like professionals under similar
circumstances and in a manner reasonably satisfactory to City.
1.3. In performing this Agreement, Consultant shall comply with all applicable
provisions of federal, state, and local law.
1.4. Consultant will not be compensated for any work performed not specified
in the Scope of Services unless the City authorizes such work in advance and in writing.
2.0 Term
This term of this Agreement shall commence as of the Effective Date and shall
continue for a term of not to exceed three (3) months unless previously terminated as
provided by this Agreement.
3.0 Consultant's Compensation
City will pay Consultant in up to three (3) monthly installments of $10,000.00
each in accordance with the fee schedule set forth in Exhibit A for all Services and
expenses, including without limitation subcontractor fees, but in no event will the City
pay more than Thirty Thousand Dollars ($30,000.00). The second and third installments
are contingent upon a written determination being made by the City Manager in her sole
discretion that the requested services are necessary for the months of August and
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September in order to fulfill the scope. If necessary, the second and third installments
shall be for work performed in the months of August and September, respectively.
4.0 Method of Payment
4.1. Consultant shall submit to City monthly invoices for all services rendered
pursuant to this Agreement. Such invoices shall be submitted within 15 days of the end
of the month during which the services were rendered and shall describe in detail the
services rendered during the period, the days worked, number of hours worked, the
hourly rates charged, and the services performed for each day in the period. City will
pay Consultant within 30 days of receiving Consultant's invoice. City will not withhold
any applicable federal or state payroll and other required taxes, or other authorized
deductions from payments made to Consultant.
4.2. Upon 24 -hour notice from City, Consultant shall allow City or City's agents
or representatives to inspect at Consultant's offices during reasonable business hours
all records, invoices, time cards, cost control sheets and other records maintained by
Consultant in connection with this Agreement. City's rights under this Section 4.2 shall
survive for two years following the termination of this Agreement.
5.0 Termination
5.1. This Agreement is a month -to -month agreement. Upon execution of this
Agreement by both parties, Consultant is authorized to perform work from the Effectiv
Date through the month of July 2016. The City Manager shall issue written (email)
notices to proceed to the Consultant if services are required in the months of August,
and September, 2016. If the City Manager does not instruct Consultant to proceed in
future months, this Agreement shall be deemed ti have been terminated. In no event
shall this Agreement be effective after September 30, 2016 unless extended by the
parties. .
5.2. This Agreement may be terminated by City upon 10 days' notice to
Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement
of comprehensive general liability insurance as required by this Agreement at least 20
days before the expiration date of the previous policy.
6.0 Party Representatives
6.1. The City Manager is the City's representative for purposes of this
Agreement.
6.2. Gus Khouri is the Consultant's primary representative for purposes of this
Agreement.
7.0 Notices
7.1. All notices permitted or required under this Agreement shall be deemed
made when personally delivered or when mailed 48 hours after deposit in the United
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States Mail, first class postage prepaid and addressed to the party at the following
addresses:
To City: City of Seal Beach
211 -8th Street
Seal Beach, California, 90740
Attn: City Manager
To Consultant: Khouri Consulting
1215 Street, Suite 1700
Sacramento, CA 95814
Attn: Gus Khouri
7.2. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
8.0 Independent Contractor
8.1. Consultant is an independent contractor and not an employee of the City.
All services provided pursuant to this Agreement shall be performed by Consultant or
under its supervision. Consultant will determine the means, methods, and details of
performing the services. Any additional personnel performing services under this
Agreement on behalf of Consultant shall also not be employees of City and shall at all
times be under Consultant's exclusive direction and control. Consultant shall pay all
wages, salaries, and other amounts due such personnel in connection with their
performance of services under this Agreement and as required by law. Consultant shall
be responsible for all reports and obligations respecting such additional personnel,
including, but not limited to: social security taxes, income tax withholding,
unemployment insurance, disability insurance, and workers' compensation insurance.
8.2. Consultant shall indemnify and hold harmless City and its elected officials,
officers, employees, servants, designated volunteers, and agents serving as
independent contractors in the role of City officials, from any and alt liability, damages,
claims, costs and expenses of any nature to the extent arising from Consultant's
personnel practices. City shall have the right to offset against the amount of any fees
due to Consultant under this Agreement any amount due to City from Consultant as a
result of Consultant's failure to promptly pay to City any reimbursement or
indemnification arising under this Section.
9.0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written
approval of the City. The City hereby approves Strategic Solutions Advisors as a
subcontractor as specified in Exhibit A. Consultant is fully responsible to City for the
performance of any and all subcontractors.
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10.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by
assignment or novation, without the prior written consent of City. Any purported
assignment without such consent shall be void and without effect.
11.0 Insurance
11.1. Consultant shall not commence work under this Agreement until it has
provided evidence satisfactory to the City that Consultant has secured all insurance
required under this Section. Consultant shall furnish City with original certificates of
insurance and endorsements effecting coverage required by this Agreement on forms
satisfactory to the City. The certificates and endorsements for each insurance policy
shall be signed by a person authorized by that insurer to bind coverage on its behalf,
and shall be on forms provided by the City if requested. All certificates and
endorsements shall be received and approved by the City before work commences.
The City reserves the right to require complete, certified copies of all required insurance
policies, at any time.
11.2. Consultant shall, at its expense, procure and maintain for the duration of
the Agreement, insurance against claims for injuries to persons or damages to property
that may arise from or in connection with the performance of this Agreement. Insurance
is to be placed with insurers with a current A.M. Best's rating no less than A:VIII,
licensed to do business in California, and satisfactory to the City. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001);
(2) Automobile Liability: Insurance Services Office Business Auto Coverage form
number CA 0001, code 1 (any auto); and, if required by the City, (3) Professional
Liability. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000
per occurrence for bodily injury, personal injury and property damage and if Commercial
General Liability Insurance or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this Agreement/location or the
general aggregate limit shall be twice the required occurrence limit; (2) Automobile
Liability: $1,000,000 per accident for bodily injury and property damage; and
(3) Professional Liability: $1,000,000 per claim/aggregate.
11.3. The insurance policies shall contain the following provisions, or Consultant
shall provide endorsements on forms supplied or approved by the City to state:
(1) coverage shall not be suspended, voided, reduced or canceled except after 30 days
prior written notice by certified mail, return receipt requested, has been given to the City;
(2) any failure to comply with reporting or other provisions of the policies, including
breaches of warranties, shall not affect coverage provided to the City, its directors,
officials, officers, (3) coverage shall be primary insurance as respects the City, Its
directors, officials, officers, employees, agents and volunteers, or if excess, shall stand
in an unbroken chain of coverage excess of the Consultant's scheduled underlying
coverage and that any insurance or self - insurance maintained by the City, its directors,
officials, officers, employees, agents and volunteers shall be excess of the Consultant's
Page 5 of 13
insurance and shall not be called upon to contribute with it; (4) for general liability
insurance, that the City, its directors, officials, officers, employees, agents and
volunteers shall be covered as additional insureds with respect to the services or
operations performed by or on behalf of the Consultant, including materials, parts or
equipment furnished in connection with such work; and (5) for automobile liability, that
the City, its directors, officials, officers, employees, agents and volunteers shall be
covered as additional insureds with respect to the ownership, operation, maintenance,
use, loading or, unloading of any auto owned, leased, hired or borrowed by the
Consultant or for which the Consultant is responsible.
11.4. All insurance required by this Section shall contain standard separation of
insureds provisions and shall not contain any special limitations on the scope of
protection afforded to the City, its directors, officials, officers, employees, agents, and
volunteers.
11.5. Any deductibles or self- insured retentions shall be declared to and
approved by the City. Consultant guarantees that, at the option of the City, either:
(1) the insurer shall reduce or eliminate such deductibles or self- insured retentions as
respects the City, its directors, officials, officers, employees, agents, and volunteers; or
(2) the Consultant. shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
12.0 Indemnification, Hold Harmless, and Duty to Defend
Consultant shall defend, indemnify, and hold the City, its officials, officers,
employees, volunteers and agents serving as independent contractors in the role of city
officials (collectively "Indemnities ") free and harmless from any and all claims, demands,
causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to
any acts or omissions of Consultant, its employees, or its agents in connection with the
performance of this Agreement, including without limitation the payment of all
consequential damages and attorneys' fees and other related costs and expenses,
except for such loss or damage arising from the sole negligence or willful misconduct of
the City. With respect to any and all such aforesaid suits, actions, or other legal
proceedings of every kind that may be brought or instituted against Indemnitees,
Consultant shall defend Indemnitees, at Consultant's own cost, expense, and risk, and
shall pay and satisfy any judgment, award, or decree that may be rendered against
Indemnitees. Consultant shall reimburse City and its directors, officials, officers,
employees, agents and/or volunteers, for any and all legal expenses and costs incurred
by each of them in connection therewith or in enforcing the indemnity herein provided.
Consultant's obligation to indemnity shall not be restricted to insurance proceeds, if any,
received by Consultant, the City, its directors, officials, officers, employees, agents or
volunteers. All duties of Consultant under this Section shall survive termination of this
Agreement.
13.0 Equal Opportunity
Page 6 of 13
Consultant affirmatively represents that it is an equal opportunity employer.
Consultant shall not discriminate against any subcontractor, employee, or applicant for
employment because of race, religion, color, national origin, handicap, ancestry, sex,
sexual orientation, or age. Such non - discrimination includes, but is not limited to, all
activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff, or termination.
14.0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions
of Section 3700 of the California Labor Code that require every employer to be insured
against liability for Workers' Compensation or to undertake self- insurance in accordance
with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
15.0 Entire Agreement
This Agreement contains the entire agreement of the parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings, or
agreements. This Agreement may only be modified by a writing signed by both parties.
16.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not
void or affect the validity of the other provisions of this Agreement.
17.0 Governing Law
This Agreement shall be governed by and construed in accordance with the laws
of the State of California.
18.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party
as a result of this Agreement.
19.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach,
whether of the same or other covenant or condition. No waiver, benefit, privilege, or
service voluntarily given or performed by a party shall give the other parry any
contractual rights by custom, estoppel, or otherwise.
20.0 Prohibited Interests; Conflict of Interest
20.1. Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which may be affected by the Services, or which
would conflict in any manner with the performance of the Services. Consultant further
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covenants that, in performance of this Agreement, no person having any such interest
shall be employed by it. Furthermore, Consultant shall avoid the appearance of having
any interest, which would conflict in any manner with the performance of the Services.
Consultant shall not accept any employment or representation during the term of this
Agreement which is or may likely make Consultant 'financially interested" (as provided
in California Government Code § §1090 and 87100) in any decision made by City on any
matter in connection with which Consultant has been retained.
20.2. Consultant further warrants and maintains that it has not employed or
retained any person or entity, other than a bona fide employee working exclusively for
Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to
pay any person or entity, other than a bona fide employee working exclusively for
Consultant, any fee, commission, gift, percentage, or any other consideration contingent
upon the execution of this Agreement. Upon any breach or violation of this warranty,
City shall have the right, at its sole and absolute discretion, to terminate this Agreement
without further liability, or to deduct from any sums payable to Consultant hereunder the
full amount or value of any such fee, commission, percentage or gift.
20.3. Consultant warrants and maintains that it has no knowledge that any
officer or employee of Ctty has any interest, whether contractual, noncontractual,
financial, proprietary, or otherwise, in this transaction or in the business of Consultant,
and that if any such interest comes to the knowledge of Consultant at any time during
the term of this Agreement, Consultant shall immediately make a complete, written
disclosure of such interest to City, even if such interest would not be deemed a
prohibited "Conflict of interest" under applicable laws as described in this subsection.
21.0 Attorneys' Fees
If either party commences any legal, administrative, or other action against the
other parry arising out of or in connection with this Agreement, the prevailing party in
such action shall be entitled to have and recover from the losing party all of its
attomeys' fees and other costs incurred in connection therewith.
22.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the
Agreement as if set forth in full herein. In the event of any material discrepancy
between the terms of any exhibit so incorporated and the terms of this Agreement, the
terms of this Agreement shall control.
23.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or
she is duly authorized to execute this Agreement on behalf of said Parry and that by his
or her execution, the Consultant is formally bound to the provisions of this Agreement.
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IN WITNESS WHEREOF, the Parties hereto, through their respective authorized
representatives have executed this Agreement as of the date and year first above
written.
CITY OF SEAL BEACH
M
Attes
J2
CONSULTANT
lay: T
l 4,P q i
0
Name:
Approved a o Fo Its:
By:
Craig Steele, City Attorney
Page 9 of 13
Exhibit A
Scope of Services and Cost Proposal For
Khouri Consulting and Strategic Solutions Advisors
Firm Profiles
Khouri Consulting, founded by Gus Khouri in 2013, is a Sacramento-based firm, located at 1215 K Street,
Suite 1700, that provides comprehensive, high - caliber legislative advocacy and consulting services to a
broad range of clients. ,
Khouri Consulting currently provides legislative advocacy or consults for 13 counties including the Central
Coast Coalition (CCC) (Monterey, San Benito, San Luis Obispo, San Benito, Santa Barbara), San
Joaquin Valley Policy Council (SIVPC)(Fresno, Kam, Kings, Madera, Merced, Stanislaus, San Joaquin,
and Tulare), Santa Barbara County Association of Governments (SBCAG), San Mateo County
Transportation Authority (SMCTA), and Transportation Authority of Marin (TAM). Prior local agency
clients include the California Transit Association (CTA), City/ County Association of Governments of San
Mateo County (C /CAG), City/County of San Francisco, Fresno County Transportation Authority (FCTA),
Peninsula Corridor Joint Powers Board (Callrain), San Mateo County Transit District (SamTrans), Selene
Transportation Authority (STA), Tulare County Association of Governments (TCAG). Gus Khouri has also
represented private sector clients such as the Association of California High -Speed Trains, Federal
Express and the Pacific Merchant Shipping Association.
With nearly 16 years of experience, Gus Khouri is one of Sacramento's leading local government
advocates. Gus Khouri has been involved in every major transportation policy devedopmem or funding
issue in Sacramento over the past decade and a half. Highlights Include: participation in the Traffic
Congestion Relief Act of 2000 and Proposition 42, which dedicated the sales tax on gasoline to a variety
of transportation programs and projects; working with legislative leadership to help craft the language
Proposition 18 (SB 1266, Chapter 25, Statutes of 2006); positioning the interests of clients in the
acquisition of funding from various Proposition 18 programs (examples below); negotiating on the "gas
tax swap" (AB 6 and 9, 8" Extraordinary Session of 2009) to protect and provide additional funding for
highways and transit, securing the votes for the appropriation of nearly $8 billion for the construction of
the high -speed train system and revitalization and expansion of existing commuter and passenger rails
service (SB 1029, Chapter 152, Statutes of 2012). As San Francisco May Edwin M. Lee's lead advocate,
Mr. Khouri has protected billion of dollars in redevelopment funds that otherwise would have been
diverted to State General fund coffers, while negotiating complex, translormative deals to protect the San
Francisco Bay, build the Transbay Terminal, and move the Golden State Warriors to San Francisco.
He served in the Legislature for seven years, most recently as a Senior Consultant to the Assembly
Transportation Committee. Mr. Khouri has earned a welt - respected reputation for finding solutions for
complex issues on a bipartisan basis. His primary responsibilities on the Committee were: preparing
analyses and providing research on complex legislation in the transportation policy field, including briefing
the Committee Chair, Committee Member staff, and Speaker's staff, as well as providing vote
recommendations; acting as liaison with various slate agencies, such as the California Highway Patrol,
Caltrans, CTC, Department of Motor Vehicles, and legislative staff, to craft, amend or monitor legislation
as it moved through the process; organizing informational hearings on various transportation issues; and,
staffing Assembly Member Jenny Oropeza on the Appropriations Committee, as well as on issues
regarding revenue and taxation, labor, and information technology.
Mr. Khouri was the Assembly Transportation Committee's point person on negotiations with respect to the
2006 Transportation Infrastructure Bond package (Propositions 1A and 1B). In addition, Mr. Khouri
assisted in crafting language for the completion of the San Francisco - Oakland Bay Bridge re- financing
deal.
Strategic Solutions Advisors (SSA), founded by Frank J. Molina in 2007, is also a Sacramento -based firm,
located at 1232 0 Street, Suite 200, provides strategic advice and hands -on assistance in legislative and
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regulatory affairs. Clients include the San Manuel Band of Mission Indians, the Santa Ynez Band of
Chumash Indians, The California Council of Non Profit Organizations and the Pinoleville Pomo Nation.
Prior Clients include the Tula River Tribe, the Soboba Band of Luiseno Indians and Deloine Consulting.
Prior to establishing SSA, Mr. Molina accrued a decade's worth of experience as senior staff in the
California State Legislature. Frank served as Senior Advisor to Senator Richard Polanco (1998-2001) and
Chief Consultant to Assembly member Marco Antonio Firebaugh (2001- 2004), both who served as
Majority Leader of their respective houses, as well as Chairmen of the Latina Legislative Caucus. During
his last two years in the Assembly,•Frank served as Chief of staff to Assembly member Simon Salinas
and administered Salinas' successful election to the Monterey County Board of Supervisors in 2008.
Both firms not only expertly represent clients before the State Legislature, but also have a proven record
of successfully lobbying state regulatory agencies and departments. Each one of our clients is unique and
we pride ourselves on being responsive, devoting the proper time and resources to learn their issues and
representing them knowledgeably and energetically — we operate for each client as if we are an extension
of their in -house operations.
Important to our success is our strong belief in utilizing a unique, proactive philosophy in which we Invest
the time to understand the needs of the client and utilize our unique relationships and skill set to achieve
our clients' goals. We tell our clients what they need to hear, not just what they want to hear. In the post -
term limits era, we are constantly working to build key relationships with not only Incumbent policymakers,
but also those of the future at the local, state and federal level, as well as staff.
We utilize our legislative expertise, combined with our strong relationships with key legislators on both
sides of the aisle and the Executive Branch to deliver tangible, high -value results to our varied client
base. We have connections and access to the Brown Administration, which extend to the Governor's
Legislative Office (commonly referred to as the "The Horseshoe), as well as most legislative offices.
Legislators and policymakers will tell you we are direct, honest, and work tirelessly on behalf of our
clients. We proactively engage with decision -makers on a consistent basis in order to seek opportunities
to help maximize results for our clients when such opportunities arise. In fact, our firm is regula ly
consulted and relied upon by key officials, especially in the Brown Administration, and staff to help deliver
on transportation funding.
Overall Strategy to Accomplish Proposed Scope of Work
With over 40 years of legislative and lobbying experience combined, particularly in representing local
jurisdictions such as transit districts, joint powers authorities, regional transportation planning authorities,
the City(Counly of San Francisco, and gaming tribes, we have a keen understanding of how AB 1217
impacts the City of Seal Beach, among others, by eliminating direct representation on the Orange County
Fire Authority (OCFA) Board.
Khouri Consulting and Strategic Solutions Advisors were successful in defeating the previous form of AS
1217, which would have createed a disadvantage for some cities currently represented on the Board,
while favoring others. Five cities would have virtually guaranteed seats (Buena Park, Irvine, Placentia,
Santa Ana, and Westminster). The other 18 cities would have had to jockey far the remaining five seats.
Furthermore, the 10 OCFA cities in south Orange County would only have had two seats, losing a
combined eight seats. Thirteen OCFA cities in the central and north parts of the County would have had
eight seats, losing a combined five seats.
While the authoes office cited a survey conducted by OCFA as grounds for changing the Board's
composition, our understanding Is that while a number of recommendations were made to improve
management generally at OCFA and specifically for expanding training for Board *members, it contained
no recommendations to alter the structure of the Board.
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Despte our success, the bill has been amended to codify language prohibiting the use of alternates on
the OCFA Board and intent language to suggest that the legislature will come back for reevaluate the
structure of the board at a later time. This bill would establish a precedent of allowing the state to dictate
terms to joint power agreements. Given that the bill has already been approved out of the house of origin
(Assembly), we have a limited (and critical) opportunity to stop the bill's progress as i1 reaches the Senate
policy committee process. The bill is set for hearing in the Senate Governance and Finance Committee,
on June 29. Should the bill progress, we will need to redouble our efforts on the Senate and Assembly
Floor in August, and then maybe even the Governors office in September. While Both Mr. Khourl and
Molina will work jointly on the contract and provide equal service, Gus Khourl will be assigned as the day -
to-day contact for the contract. Mr. Khouri will coordinate with Frank Molina to help ensure premium
service. The chart below details how we envision servicing the contract:
Advocate
Assignment
Gus
Khourl,
Primary responsibility for project management and development of strategies; lead
Principal,
Khouri
lobbying; legislative and regulatory research; primary contact with legislative
Consulting
delegation and Administration staff and officials as necessary; and, day - to-day contact
with and reporting to the Agencies' Board and staff.
Frank
Molina,
Lobbying; legislative and regulatory research; maintenance of relationship with
Principal,
Strategic
legislative delegation and Administration staff and officials as necessary; and,
Solutions Advisors
communications with I reporting to the Agencies as requested.
We are prepared to do the following in order to meet your objectives:
Specifically, our proposed comprehensive lobbying program consists of the following elements:
1. Upon being retained, we would immediately set up either an in -person meeting or conference call
to ensure that we gather all of the necessary information to proceed on your behalf.
2 We would then formulate a strategy to effectively lobby your interests, set up meetings
accordingly with committee members of the Senate Governance 6 Finance Committee, and
Governors office, if necessary, in an attempt to either defeat or modify the legislation (if possible).
3. Our direct lobbying will also include assisting with or drafting letters and talking points as
necessary. We will also testify on your behalf at hearings before legislative committees, as
directed.
4. We will assist you in working with other agencies and organizations to develop support for our
policies, such as participation in coalition efforts to generate opposition. The members of our
team regularly interact with the staff, lobbyists and members of organizations, including: the
League of California Chios and the California State Association of Counties (CSAC), among
others.
5. We will maintain regular phone and email communication with your designated key staff.
6. We will adhere to all laws and regulations governing the activities of registered lobbyists in
California.
Cost Proposal
Our proposed cost to serve is based on our experience that government advocacy is a constant effort that
is subject to cyclical periods of more or less intensity given the legislative and regulatory calendar. That Is
why we propose to bill in monthly installments rather than an hourly rate.
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Our proposal is based on these specific assumptions:
1. Given the seasonal nature of legislative calendar and stale agency board meetings, we work
significantly more hours for than other weeks.
2. Nevertheless, issues constantly arise and we will therefore invest as much time and effort as
necessary to tend to issues on AB 1217.
3. Our expertise and experience with the legislative process that has been cultivated over 40 years is
ultimately what is most valuable. In some instances, the effort we expend or the activity we pursue will
be successful due to our expertise and experience, and to the relationships we have spent years
Cultivating, rather than due to the exact length of time it will take us to transact certain business on your
behalf. Sometimes a tow phone calls or quick meetings with the appropriate officials or staff will be
worth as much or more to you than spending hours by us monitoring one policy committee hearing.
4. We will not bill for administrative costs and support staff to further the purposes of the lobbyists' efforts
such as delivering letters, inputting data into computer databases, etc.). We would however ask that
reimbursement for travel outside of the Sacramento area for work performed on behalf of the City of
Seal Beach be considered.
We propose to deliver the scope of work herein for a total not -to- exceed $30,000.00 payable in 3 monthly
installments (June 28 through September 30) of $10,000 per month ($5,000 per firm). We propose that
Seal Beach pay Khouri Consulting, and Khouri Consulting will subcontract to Strategic Solutions
Advisors.
The City has not authorized services beyond the term specified in this Agreement.
13 of 13
Error! Unknown doeumsM property name.
Attachment 6699
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 -2016 Regular
Bill No:
AB 1217
Author:
Daly
Version:
6/23/16
Consultant:
Weinberger
Hearing Date: 6/29/16
Tax Levy: No
Fiscal: No
ORANGE COUNTY FIRE AUTHORITY
Prohibits the Orange County Fire Authority from appointing alternates for its governing board's
members.
Background
The Joint Exercise of Powers Act allows two or more public agencies to use their powers in
common if they sign ajoint powers agreement. Sometimes an agreement creates a new, separate
government called a joint powers authority (JPA).
The Orange County Fire Authority (OCFA) is ajoint powers authority formed on March 1, 1995
to provide fire protection and related services to 18 member cities and the unincorporated area
within Orange County. Because five additional cities have become members of OCFA since its
formation, OCFA now operates within 23 cities and the unincorporated area in Orange County.
OCFA operates a full- service emergency response agency. The authority manages 71 fire
stations that serve more than 1.7 million residents within a land area of approximately 571 square
miles. In fiscal year 2013 -14, OCFA personnel responded to more than 113,000 incidents.
OCFA's joint powers agreement has been amended four times — in 1999, 2010, 2013, and 2015 —
since the agreement took effect in 1995. The joint powers agreement establishes a 25- member
board of directors to govern OCFA. The board is comprised of one voting member from each
member city and two voting members from Orange County. Until last year, each member
jurisdiction could name an alternate member to OCFA's board, making 49 people eligible to
attend OCFA board meetings (25 members plus 24 alternates). The most recent amendment to
OCFA's joint powers agreement, which took effect last year, eliminated the alternate member
positions on OCFA's board.
To ensure that the governance changes OCFA members approved last year cannot be reversed,
representatives of OCFA's employees want the Legislature to codify those changes in state law.
Proposed Law
Assembly Bill 1217, notwithstanding any other law, prohibits the composition of the Board of
Directors of the Orange County Fire Authority from including alternate members.
AB 1217 expresses the intent of the Legislature to reevaluate the structure of the Board of
Directors of the Orange County Fire Authority within a reasonable period from the bill's
effective date to consider the effectiveness of the board's size and structure.
AB 1217 (Daly) 6/23/16
No estimate.
State Revenue Impact
Comments
Page 2 of 3
1. Purpose of the bill. In response to concerns that the size and structure of Orange County Fire
Authority's Board of Directors created governance challenges, previous versions of AB 1217
would have decreased the board's size and restructured the process by which member agencies
appointed representatives to the board. Conversations prompted by AB 1217's previous versions
led a majority of OCFA's member agencies to conclude that the Authority could address some of
the governance concerns raised about the board by eliminating the 24 alternate board member
positions. Although the member agencies approved an amendment to the Authority's joint
powers agreement that eliminated the alternate board member positions, advocates for reforming
OCFA's governance structure remain concerned that these changes could easily be undone by
the subsequent approval of another amendment to the joint powers agreement. AB 1217 is now
a narrowly- focused bill that simply codifies in state law the changes that OCFA's member
agencies approved last year. In practice, the bill makes no change to the existing structure or
function of OCFA's governing board. AB 1217 benefits all of the residents who rely on OCFA's
services by simply preventing OCFA from restoring an unwieldy board structure that made
consensus and governance difficult.
2. Precedent. The purpose of the Joint Exercise of Powers Act is to allow California government
agencies to work collaboratively through a mutually - agreeable governance structure established
pursuant to ajoint exercise of powers agreement. Having the Legislature override a joint powers
agreement to dictate a particular JPA's governing structure is an unprecedented erosion of the
broad, flexible authority granted by the Joint Exercise of Powers Act. In practice, AB 1217 has
little substantive effect on OCFA, because it merely codifies the existing structure of OCFA's
governing board, as approved by the member agencies. However, passing AB 1217 may invite
similar proposals asking the Legislature to impose more substantial statutory constraints on other
joint powers agreements, further eroding a fundamental purpose of the joint exercise of powers
act, which is to provide for local control over commonly -held local governmental powers
without the need for legislative involvement.
3. Special legislation. The California Constitution prohibits special legislation when a general
law can apply (Article IV, § 16). AB 1217 contains findings and declarations explaining the need
for legislation that applies only to the Orange County Fire Authority.
Assembly Actions
Assembly Local Government Committee: 5 -2
Assembly Floor: 47 -25
Support and Opposition (6/23/16)
Support: AFSCME District Council 36; City of Santa Ana; Orange County Employees
Association; Orange County Labor Federation; Orange County Professional Firefighters
Association; United Association of Journeymen and Apprentices of the Plumbing and Pipe
Fitting Industry of the United State and Canada, Local 582.
AB 1217 (Daly) 6/23/16
Page 3 of 3
Opposition: Association of California Cities — Orange County; Cities of Aliso Viejo, Buena
Park, Burlingame, Calimesa, Costa Mesa, Cypress, Dana Point, Fillmore, Fountain Valley, La
Canada Flintridge, La Palma, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los
Alamitos; Mission Viejo, Norwalk, Placentia, Plymouth, Rancho Cordova, Rancho Santa
Margarita, Salinas, San Carlos, San Clemente, San Juan Capistrano, Seal Beach, Stanton,
Tehachapi, Thousand Oaks, Tustin, Villa Park, Westminster, West Hollywood, Yorba Linda;
League of California Cities; Orange County Council of Governments; Orange County Fire
Authority; Orange County Mosquito and Vector Control District; Orange County Supervisor
Lisa A. Bartlett; Public Agency Risk Sharing Authority; Schools Excess Liability Fund.
-- END --