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REQUEST FOR <br />COUNCIL ACTION <br />NkWC91•111,MI Ill 4411 Z Ig17Yii <br />AUGUST 5, 2014 <br />TITLE: <br />AGREEMENT FOR FEDERAL <br />GOVERNMENT LIAISON SERVICES <br />WITH HOLLAND & KNIGHT <br />CI ;GER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2 n Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute an amended agreement for <br />federal government liaison services with Holland and Knight, in an annual amount not to exceed <br />$100,800, commencing July 1, 2014 for a one -year term with the option of extending the term for <br />two one -year terms, subject to non - substantive changes approved by the City Manager and City <br />Attorney. <br />DISCUSSION <br />Cities throughout California engage federal government liaisons to represent their municipal <br />policy perspectives in legislative matters in Washington D.C. This service typically includes <br />review and monitoring of federal executive proposals and legislation, as well as administrative <br />rules and regulations that may affect the City. Federal government liaison services are also <br />essential in identifying funding opportunities and grant applications and other special programs <br />for which the City may qualify. <br />On December 16, 2013, an agreement with Holland and Knight (HK) was approved by the City <br />Council for federal government liaison services. In the past six months, the City has <br />benefited significantly from their services. Specifically, HK assisted the City in successfully <br />renegotiating the City's jail per diem contract rate with the U.S. Marshals Office resulting in a <br />$1.4 million net increase to the General Fund. HK was also instrumental in obtaining an increase <br />in the Urban Area Security Initiative allocation from $2.5 million to $5.5 million in FY 14. <br />Additionally, HK effectively advocated for the inclusion of the Empowerment Zone Employment <br />Tax Credit as part of the U.S. Senate's tax extender package. This important legislation is <br />expected to be taken up again during Congress' lame duck session after November 2014 and <br />would provide tax credits to businesses that hire workers who also live in the empowerment <br />zone. A summary of HK work efforts on behalf of the City for the past six months is attached <br />(Exhibit 1). <br />HK has exceeded the expectations of staff in its first six months and as a result we are <br />recommending to increase their original agreement compensation from $84,000 to $100,800. <br />Staff believes the increase is appropriate given the level of service provided and is more in line <br />25Q -1 <br />