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HomeMy WebLinkAbout2005-10-11 - City Commission Special Workshop Meeting MinutesSPECIAL CITY COMMISSION WORKSHOP MEETING TUESDAY, OCTOBER 11, 2005 TAMARAC CITY HALL, ROOM 105 7525 NW 88TH AVENUE TAMARAC, FL 33321 CALL TO ORDER: Mayor Schreiber called the Special Workshop Meeting of the City Commission to order on Tuesday, October 11, 2005, at 1:00 p.m., in Room 105, Tamarac City Hall, 7525 NW 88th Avenue, Tamarac, FL. PRESENT: Mayor Joe Schreiber, Vice Mayor Beth Flansbaum-Talabisco, Commissioner Edward C. Portner, Commissioner Marc L. Sultanof, and Commissioner Karen L. Roberts. ALSO PRESENT: City Manager Jeffrey L. Miller, Deputy City Manager Michael C. Cernech, Interim Assistant City Attorney Julie Klahr, and City Clerk Marion Swenson. Mayor Schreiber led the pledge of allegiance. City Manager Miller said the purpose of this special workshop is to discuss the hiring of a federal lobbyist to represent the City of Tamarac in Washington. After each firm makes a presentation, the Mayor and City Commission may ask questions. When the presentations are completed, he would like to have a discussion on the three firms so that the Mayor and City Commission can give staff direction to put together a contract for a future meeting. Staffs analysis is included in the backup, and at the end of the session, staff will respond to any questions the Mayor and City Commission may have. 1. The Ferguson Group: William Ferguson and Valerie Gelnovatch appeared. Ms. Gelnovatch gave an overview of the company and responded to questions from the Mayor and City Commission. Mayor Schreiber asked about the time frame for the process. Mr. Ferguson said the process starts now for next year, and if chosen, the firm will come back in a few weeks to go over the Mayor and City Commission's list of projects and begin the process. Commissioner Sultanof asked how the firm could cover all the areas listed and Mr. Ferguson said the firm knows the interests of its clients. Individual client managers are responsible for accountability and each client is treated with prime importance. Commissioner Portner asked for an explanation of Section 8 Housing and questioned lobbyists being criticized by the press, and how long it took to acquire funding for economic development projects in Henderson. Mr. Ferguson said Section 8 is subsidizing low/moderate income people in housing. Local government officials are often criticized for hiring lobbyists; the firm tries to make it easy to work for its clients. October 11, 2005 Special City Commission Workshop Page 1 of 8 Ms. Gelnovatch said Henderson is a fairly new client and their agenda took two — three years. Vice Mayor Flansbaum-Talabisco questioned the Federal Grants Locator Service (eCivis); whether using that service would cost more money, if the city could use the service without going through The Ferguson Group, and if there would be a monthly or yearly charge. Mr. Ferguson said working through the firm Tamarac would be afforded a discount for the use of eCivis; it could be a monthly or yearly charge. Commissioner Portner asked if every client was charged the same $90,000, asked what the smallest and largest cities are that The Ferguson Group represents, asked if the lobbyists could get Tamarac a new post office, and questioned traffic calming devices. Mr. Ferguson said all clients are not charged the same; the largest jurisdiction is King County, Washington and the smallest is Yolo County, California. Mr. Ferguson said getting a new post office has been done in the past and the firm has acquired traffic calming devices in the past also. Commissioner Sultanof asked about connecting Tallahassee with Washington, and Mr. Ferguson said it depends on the project but there would be coordination with the state. Ms. Gelnovatch added large transportation projects requiring federal funds also require state support. Commissioner Roberts asked what cities The Ferguson Group represents in Florida, questioned how the firm would handle conflicts, the firm's ability to get money for smaller cities, and said according to the backup material it appears the firm lost several clients and asked about the last time the firm lost a client and why. Ms. Gelnovatch said the firm recently was hired by the City of Palm Bay. Mr. Ferguson said if there is a conflict, the firm will tell the City of Tamarac right away; there are rarely conflicts. Mr. Ferguson said there is no distinction between the size of a municipality; only those seeking funds and those not seeking funds. There is always a way to get money for local governments. The firm represents regional groups and stopped counting them as individual cities. Charlotte County, North Carolina ended its association with The Ferguson Group about 3-4 years ago due to a change in the contract. Vice Mayor Flansbaum-Talabisco questioned cost and conflict, asked how the firm arrived at the $90,000 fee for Tamarac and what that would mean one year from now, and whether the fee would be increased if Tamarac were to add more projects during the first year. Mr. Ferguson said the firm only takes two clients in any congressional district, and all costs are tied to the cost of doing business. The $90,000 retainer is based on 4-7 projects, depending on the size and complexity of the projects. The rate will change only after the year is up. Mayor Schreiber asked who from the South Florida delegation has the firm established relationships with and an example of a project the firm worked on with that individual; what kind of municipal projects does the firm believe have the best opportunity for funding in the current political environment and can the firm get Tamarac into the October 11, 2005 Special City Commission Workshop Page 2 of 8 current funding cycle. Ms. Gelnovatch named several congressmen and said the firm worked with Congressman Wexler on a project for oral rabies vaccine bating. Ms. Gelnovatch said transportation appropriations come around every year for a variety of things, as well as water issues. Mayor Schreiber questioned the opportunity for success for achieving $15 million funding for Tamarac projects and Ms. Gelnovatch said it will be successful if it is also the congressperson's priority. Mr. Ferguson said it is important to take valid projects before the committees and when the funds are earmarked the city must go and get them and implement the project(s); The Ferguson Group helps in going beyond the earmarking process. Commissioner Portner asked why the Mayor and City Commission should choose The Ferguson Group and Mr. Ferguson said the firm will give Tamarac the best representation it can possibly get; the firm will work hard for Tamarac and get results. Mayor Schreiber called for a recess at 2:05 p.m. and reconvened the workshop meeting at 2:20 p.m. with all present as before. 2. Alcalde & Fay: Michael Brown, Kevin Fay, and Jim Davenport appeared. Mr. Fay gave an overview of the firm and said the firm uses a team approach, and Mr. Brown, Mr. Davenport, and Ms. Susanne Palmer will be part of Tamarac's team. Mr. Davenport gave an overview of the process. Mr. Brown said he is the contact person and coordinates weekly and monthly reports and issues grant alerts. The firm is bi-partisan. Mayor Schreiber asked what the chances of success are for Tamarac and if it can be accomplished in one year, and asked who the firm worked with in Virginia Beach. Mr. Fay said it is possible if the process is started at the right time, but there are no guarantees; in Virginia Beach the firm worked with the Mayor and City Manager. Commissioner Sultanof questioned working both sides of the aisle, and the connection with Tallahassee. Mr. Fay said the firm has succeeded in communities similar to Tamarac, and Mr. Davenport said money is not philosophical; even though the Republicans control both houses, the committees are split up and the Republicans are not the only ones getting congressional earmarks. The firm works both sides of the aisle. Mr. Fay added relationships are often not on a partisan basis and the firm has superb relationships with all sub committee chairs and ranking members. Mr. Davenport said the firm will share ideas with the city's lobbyist in Tallahassee and will be able to supplement the city's efforts or even double the efforts on important projects the city is going after. In many projects there is no state involvement. Commissioner Roberts questioned the firm's ability to get money for smaller cities, how the firm would handle conflicts, and asked about the last time the firm lost a client and why. Mr. Brown said the money does not all come from the same pot and Tamarac's chances are as good as any other city. Mr. Davenport said he has never run into a conflict but if a conflict did arise he would let Tamarac know immediately and work it out. Mr. Fay added that each project takes on its own identity and the firm may have to be more creative. Mr. Brown said a client may leave the firm due to change of October 11, 2005 Special City Commission Workshop Page 3 of 8 administration. Mr. Fay added a client may leave because the project is completed. Mr. Davenport said the Port of Palm Beach severed its relationship with the firm after receiving approximately $38 million funding because the port ran out of money and there was a change in administration. Mr. Fay said a school district in Louisiana went bankrupt, but the firm is still trying to help them. Commissioner Roberts asked if the firm represents the Broward County School Board and Mr. Fay said no. Commissioner Portner questioned language in the proposal regarding the $72,000 fee and how many projects that $72,000 would buy for Tamarac, how the firm anticipates communicating with the Mayor and City Commission and City Manager, questioned the fact that Clearwater, FL received $1.4 million in regional stormwater funds, and asked what was done for the city, and said Boca Raton received $500,000 in traffic calming funds and asked if the firm would be able to help Tamarac with traffic calming. Additionally, Las Vegas received $750,000 for downtown development and asked which appropriation committee Tamarac would look to for that type of project, questioned weekly alerts, whether the firm could get a post office for Tamarac, and confirmed if a project is earmarked we will get the funds. Mr. Brown confirmed for more projects the fee might go up, but it would rarely go down. Mr. Davenport said the city would have as many projects as it wants for the $72,000. Mr. Brown said it would be up to Tamarac to decide how the chain of communication is set up. Mr. Davenport elaborated on several city projects accomplished through the firm and said the firm could help Tamarac acquire funding for traffic calming. Mr. Davenport added the committee for downtown development would be HUD and Transportation. Mr. Davenport explained reports go out on Fridays and it highly difficult to get a post office as the postal service is not building new facilities because there is no room in their budget, but the firm can try although it will probably be low on the priority list. Commissioner Roberts spoke of moving the mail box at the post office. Commissioner Portner asked why the Mayor and City Commission should choose Alcalde and Fay and Mr. Fay said this is one of the oldest lobbying firms and the firm has had tremendous success in Florida. They are experts in the appropriations process and being headquartered in Virginia there is a reduction in overhead. Their retainer is 30% less than their competitors. The firm's track record is very good. Vice Mayor Flansbaum-Talabisco said the proposal was for $72,000 for the first year and asked what would make the amount go up, and questioned eCivis. Mr. Davenport said it depends on the resources expended; some projects are more difficult than others. Mr. Fay added the average is four -seven projects for the year. If Tamarac wants more after the first year, we will revisit the fees. Mr. Davenport said the firm has a service similar to eCivis and there is no charge to use it. Commissioner Sultanof said he did not want to spin his wheels and asked which projects would be more easily accessible. Mr. Fay said this would be dealt with through the process. October 11, 2005 Special City Commission Workshop Page 4 of 8 Mayor Schreiber asked what the firm's greatest financial lobbying success was for a municipality and how long did it take from initiation of the proposal to acquisition of funds. Mr. Davenport responded the City of Treasure Island Tall Bridge. The city wanted $15 million and had worked on the project for many years without success. Alcalde and Fay came in and within six weeks had earmarked $50 million for the entire bridge. Commissioner Portner asked why the city needs a lobbyist, and Mr. Fay said the appropriation process is complicated and the firm enhances the local representatives' ability to understand Tamarac's needs. Mayor Schreiber called for a recess at 3:10 p.m. and reconvened the workshop meeting at 3:25 p.m. with all present as before. 3. Russ Reid Company: Mark McIntyre, Eric Mitchell and Michelle Marino appeared. Mr. McIntyre thanked the Mayor and City Commission for asking the firm to return to Tamarac and said their motto is Be Clear, Be Brief, and Be Gone. Mr. McIntyre and Ms. Marino gave an overview of the firm and spoke of conflicts, return on investment, and the fee structure. Vice Mayor Flansbaum-Talabisco said other firms are larger with more experience dealing with cities similar to Tamarac and asked Mr. McIntyre to speak about relationships, justification of the fee, whether all Russ Reid Company's clients are charged the same, and if the fee will go up if projects are added, and questioned the use of eCivis, stated only a few lobbyists have heard of the Russ Reid Company and asked how long the firm would keep its fee at $10,000 per month. Mr. McIntyre assured the Mayor and City Commission that if his firm had been the first to be interviewed today, his answers would still be the same. Mr. McIntyre said his firm is not interested in being the biggest; every service agreement with every municipality the firm represents is for the same amount. Every municipality has been funded within one year; every private entity has been funded within two years with one exception, Elusa Pacific University. The firm is currently working for that organization on a pro bono basis because the firm believes it can be successful on their behalf. If Tamarac makes a two-year commitment to Russ Reid Company and is not funded, the firm will work for Tamarac for free until funding is obtained. The eCivis program usually goes for $15,000445,000 per year depending on the scope of service. The program is independent of any companies. The Russ Reid Company routinely points to potential grant opportunities; the competitive grant process is big on paperwork but short on money. The Russ Reid Company focuses on appropriations. Earmarks went up after Iraq and will go up post Katrina. But these monies are separate pots than what the City would look to for funding. Mr. McIntyre said the firm has a 41 year track record in the non-profit sector and an 11 year track record in Washington; it is great that the clients are more known than the Russ Reid Company. Tamarac is catching this firm on its way up; the average age of the congressional staff person is 27; the firm has a great track record. It is easy for each of the clients to be special when they all pay the same fee. October 11, 2005 Special City Commission Workshop Page 5 of 8 The Russ Reid Company would like to represent one municipality in each of the 50 states so there will be no conflicts. The $10,000 per month will hold forever. Commissioner Sultanof questioned working both sides of the aisle, and asked how the firm would communicate with the City Manager and Tamarac's lobbyist in Tallahassee. Mr. McIntyre said there are a lot of unhappy Republicans today; they feel the Republicans are spending too much money. Should the Mayor and City Commission choose the Russ Reid Company, then Tamarac, with its population of 58,000 people will be the largest municipality the Russ Reid Company will have as a client to date. Tamarac is a meaningful place. Every senator gets an allotment and the firm's job is to get that allotment for Tamarac. The Democrats are getting a lot of earmarks. Ms. Marino said the firm works with the city's priorities and projects and includes the city in the whole process. Commissioner Portner asked where the money for the sidewalks for the Village of Kiryas Joel came from, if the firm could get funds earmarked for Tamarac for sidewalks, roads, and water infrastructure improvements, questioned language in the proposal regarding hyperbole, asked why the firm does not want to work for profit making organizations and asked who the lead person would be in Washington for Tamarac. Mr. McIntyre said this year the funding came in the Highway Bill and these types of funds could be worked on for Tamarac. Mr. McIntyre said people on Capitol Hill and those who know the firm in Washington know the firm has the highest working environment in D.C. Mr. McIntyre said the firm worked on behalf of some of the largest corporations in existence, and on a case by case basis the firm evaluates the corporation before the firm makes a decision to represent a particular corporation. Mr. McIntyre said Ms. Marino would be Tamarac's lead person in Washington. Commissioner Roberts asked how many cities the firm currently represents and added the firm is up and coming to local government and asked where they came up with the flat pricing, adding the firm is $30,000 more than the previous presenter. Mr. McIntyre said the firm represents six municipalities, and the fee is based on the number of hours needed to do the job right for the client. Mayor Schreiber questioned expenses, asked if there is a guarantee of succeeding in the first year, and said the City of Tamarac is going to bond $15 million for Parks and Recreation facilities and activities, and asked if that could be funded the first year. Mr. McIntyre responded expenses are 3% - 4% of the retainer for the life of the retainer. There is no guarantee for funding during the first year but it is guaranteed that Tamarac will be positioned to succeed. Vice Mayor Flansbaum-Talabisco asked about future visits, spoke of references and asked what someone might say in a negative vein about the firm. Mr. McIntyre said they would come to Tamarac for the resource inventory and then as often as the need arises. He did not know what anyone would say in the negative about the firm. Vice Mayor Flansbaum-Talabisco said the decision has to be for the firm best suited to the city. October 11, 2005 Special City Commission Workshop Page 6 of 8 Vice Mayor Flansbaum-Talabisco asked for input on the staffs ranking of the firms. Deputy City Manager Cernech said the firms were all good firms and staffs ranking was close. Deputy City Manager Cernech said he looked at the clients each represented. Commissioner Sultanof left the room at 4:25 and returned at 4:27. Deputy City Manager Cernech said he tried to assess the needs of the individual firms' clients and how those matched Tamarac's needs. A lot of money in the proposals is for road improvements, coastal conservation, interstate highways, and stormwater and infrastructure. Tamarac will not get funding for interstate highway exchanges and that is not important to us. Tamarac also can expect no beach or everglades money. Looking at similar projects, such as community roads, sidewalks, infrastructure, the Russ Reid Company is very creative and successful for its clients. Ferguson is close to the Russ Reid Company in some categories. The Russ Reid Company extends its -reach to staff, as most of the work done in the Washington offices is done by staff. _Tamarac would be the biggest client for the Russ Reid Company and the company is omits way up. We will get what we pay for. Mayor Schreiber said Tamarac would get what it pays for with any of the three firms, but is the Russ Reid Company worth the extra $48,000? Vice Mayor Flansbaum-Talabisco said the Russ Reid Company said they would stay at $10,000 per month, the other firms did not say that. Additionally, the computer program bothered Vice Mayor Flansbaum-Talabisco; Ferguson wanted to charge for it, and it seems there could be costs with the other firms that could come up one year from now. Commissioner Roberts said the eCivis program has been offered to cities for years. Ferguson is merely offering us a discount. Mayor Schreiber said it is important to decide what we want from any of the firms and what we want the money for; to which City Manager Miller replied if we float the $15 million bond we will want to recoup monies to enable us to work on Main Street, in areas of paving, utilities, parking garage and also pursue the theater. Commissioner Sultanof asked if the bonds would be able to be paid up front when the money comes in from the earmarks and Deputy City Manager Cernech said the bonds are probably not callable that soon; we would use the money to defray other expenses that will be incurred, such as the purchase of land. Mayor Schreiber said if we go for the $15 million in bonds and have other money to work with we will not have to raise the millage. Deputy City Manager Cernech said there will always be more projects than funding. Vice Mayor Flansbaum-Talabisco confirmed the contract with whichever firm is chosen would be for one year. Mayor Schreiber asked for an expression of interest. Commissioners Sultanof and Portner preferred the Russ Reid Company. Commissioner Roberts and Mayor Schreiber preferred Alcalde and Fay, Vice Mayor Flansbaum-Talabisco preferred Russ Reid Company. City Manager Miller said staff would meet with the lobbyist and give them 5-10 project proposals. Commissioner Roberts said the Mayor and City Commission projects should also be discussed. The overpass for the Main Street Project and traffic calming is not on the list. Additionally, Commissioner Roberts said she is concerned that the Russ October 11, 2005 Special City Commission Workshop Page 7 of 8 Reid Company would speak more to staff than the Mayor and City Commission. Vice Mayor Flansbaum-Talabisco said this is not beyond tweaking, and suggested the chosen firm return to speak with the Mayor and City Commission in open discussion so projects could be prioritized. Commissioner Sultanof said he trusts staff to bring information to the Mayor and City Commission with regard to conversations with the lobbyist. There being no further business to come before the Mayor and City Commission, Mayor Schreiber adjourned the special workshop meeting at 4:50 p.m. 7 Marion Swenson, CMC City Clerk October 11, 2005 Special City Commission Workshop Page 8of8 1 1 1