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CC SR 20240917 I - Assign RPPG Contract to CPPG CITY COUNCIL MEETING DATE: 09/17/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible to reassign a professional services agreement for state lobbying services with Renne Public Policy Group, LLP to California Public Policy Group Inc. effective October 1, 2024. RECOMMENDED COUNCIL ACTION: (1) Approve Amendment No. 3 to the professional services agreement (PSA) to reassign state lobbying services with Renne Public Policy Group, LLP (RPPG) to California Public Policy Group, Inc. (CPPG) effective October 1, 2024; and, (2) Authorize the Mayor and City Clerk to execute Amendment No. 3 to the PSA, in a form acceptable to the City Attorney. FISCAL IMPACT: The recommended action does not result in changes to the agreed upon services but rather a name change to managing entity noted in the PSA. There is no fiscal impact to reassign the PSA. The PSA has sufficient funds budgeted for Fiscal Year 2024-25 and throughout its term, which expires on February 28, 2025. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): 101-400-1410-5101 (General Fund – Administration/Professional Services) ORIGINATED BY: Catherine Jun, Deputy City Manager REVIEWED BY: Same as below APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A) Amendment No. 3 to Reassign the PSA with RPPG to CPPG (Page A-1) B) Professional Services Agreement with RPPG, Amendment No. 1 and Amendment No. 2 C) Renne Public Law Group (RPLG) and CPPG Joint Request for Contract Reassignment (Page C-1) BACKGROUND: In 2022, the City engaged RPPG, a lobbying firm formed under the Renne Public Law Group (RPLG), to work on behalf of the City’s interests in Sacramento following a request 1 for proposals (RFP) process. Both parties worked to identify advocacy priorities, advocate the City Council-approved legislative platform, obtain funding direction and earmark recommendations, and advocate City priorities with state lawmakers. In February 2023, the City Council approved Amendment No. 1 to extend the PSA for one year, and in March 2024, the City Council approved Amendment No. 2 to extend the PSA for one final year, through February 28, 2025. Tonight, the Council is being asked to amend the existing PSA to reassign the managing entity of the City’s state lobbyist. DISCUSSION: In August 2024, midway through the term for Amendment No. 2, the City received a notification that RPPG will be spinning off from RPLG to form CPPG. All RPPG staff members currently assigned to the City will become CPPG employees effective October 1, 2024 and retain the same Sacramento office location and contact information. CPPG has committed to continue providing state legislative advocacy services, as summarized below: • Review Governor’s January Budget Proposal and identify possible funding opportunities for the City, particularly for special projects such as the Portuguese Bend Landslide Remediation Project. • Draft fact sheets, background materials, talking points, and other materials needed on various legislation that would be of City interest and aligned with the Council adopted legislative platform. • Meet with potential opposition to understand and mitigate potential concerns about bills relevant to the City. • Develop recommended positions on legislation and state budget proposals. • Draft letters of support, opposition, and/or amendments to address concerns. • Negotiate with authors and sponsors to resolve concerns or stop bills where resolution is not possible. • Track and analyze proposed new laws and regulations and provide general advocacy on legislation important to the City. This includes proactive information gathering that keeps the City up to date on relevant state agency/department regulations and administrative policies. • Monitor budget process for potential impacts. Engage when needed. • Testify in policy committees on bills for which the City has an active position, or recruit and prepare City personnel to testify where appropriate. • Produce regular legislative reports. • Draft end of session report providing process on legislative activities and results on targeted legislation. Per Amendment No. 2 of the PSA, RPPG is requesting the City reassign its PSA to CPPG, effective October 1 to maintain continuity of services through the remainder of the PSA term which expires February 28, 2025. As such, it is recommended that City Council consider approving the contract reassignment to CPPG. 2 ADDITIONAL INFORMATION: The PSA with RPPG was awarded on March 1, 2022 for a one year term, with the option of two additional one-year terms. All options have since been exercised, and the PSA will expire on February 28, 2025. In anticipation of this, staff intends to issue a Request for Proposals (RFP) for state lobbying services and enter into a new PSA with the most qualified proposer by February 2025. CPPG would be eligible to submit a proposal, should they meet all requirements of the RFP. At the March 19, 2024 City Council meeting, Mayor Cruikshank and Councilmember Seo requested staff seek proposals for federal lobbyist services. At this time, Staff has not issued a Request for Proposals, and anticipates doing so before the end of the year once vacant positions in the City Managers Office have been filled. This item is tentatively scheduled to be considered at the November 19, 2024 meeting. CONCLUSION: Pursuant to the existing PSA, Staff recommends approving Amendment No. 3 to reassign the managing entity of a state lobbyist from RPPG to CPPG. 3 AMENDMENT NO. 3 TO REASSIGN AGREEMENT FOR PROFESSIONAL SERVICES THIS AMENDMENT TO REASSIGN THE AGREEMENT FOR PROFESSIONAL SERVICES (“Assignment No. 3”) by and between the CITY OF RANCHO PALOS VERDES (“City”) RENNE PUBLIC LAW GROUP, LLP DBA RENNE PUBLIC POLICY GROUP (“RPPG)” and CALIFORNIA PUBLIC POLICY GROUP INC. (“CCPG”), a California Corporation limited liability partnership (“Consultant”) is effective as of October 1, 2024. RECITALS A. City and RPPG, a subdivision of the Renne Public Law Group (“RPLG”), entered into that certain Agreement for Professional Services dated March 1, 2022 (“Agreement”) whereby Consultant agreed to provide State lobbying services (the “Services”) for a term of one year, for a Contract Sum of $56,000. The Agreement provided for two additional one-year extensions at the City’s discretion. B. City and RPPG amended the Agreement with Amendment No. 1 on February 28, 2023 to extend the Term of the Agreement by one year and increase the Contract Sum by an additional $56,000 to cover the costs of Services, for a maximum Contract Sum of $112,000. C. City and RPPG amended the Agreement No. 2 on March 19, 2024 to extend the Term of the Agreement by one year through February 28, 2025, and to increase the Contract Sum by an additional $56,000, for a maximum total Contract Sum of $168,000. D. Now RPPG and RPLG leadership have agreed upon a plan to spin RPPG off as a separate corporation, forming the California Public Policy Group (“CPPG” or “Consultant”). Effective close of business on Monday, September 30, 2024, the Legislative Advocacy and Grant Services areas of Renne Public Law Group, LLP [DBA Renne Public Policy Group] will be transferred as part of an asset purchase agreement from Renne Public Law Group to California Public Policy Group, a California Corporation. All staff members currently assigned to perform work outlined in our professional services agreement will become employees of CPPG effective Tuesday, October 1, 2024. CPPG will retain the same Sacramento office location as well as the same contact information (e.g., emails, telephone number etc.) E. City and RPPG now desire to transfer and assign this Agreement and all subsequent amendment to CPPG pursuant to Section 4.5 of Agreement, effective October 1, 2024. All other terms of the Agreement shall remain unchanged. TERMS 1. Contract Changes. The Agreement is amended as provided herein. Deleted text is indicated in strikethrough and added text in bold italics. a. Section 9.8, Assignment and Transfer of Agreement, is added to read: 9.8 Assignment and Transfer of Agreement. A-1 01203.0001/1014598.3 -2- The Agreement between RPPG is hereby reassigned to CPPG effective October 1, 2024 whereas CPPG assumes all obligations, rights and duties of RPPG under this Agreement and subsequent Amendments. 2. Continuing Effect of Agreement. Except as amended by Amendment Nos. 1 and through 3 all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment 3, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 3. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment No. 3, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 3, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 3. 5. Authority. The persons executing this Amendment on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 3 on behalf of said party, (iii) by so executing this Amendment No.3, such party is formally bound to the provisions of this Amendment No. 3, and (iv) the entering into this Amendment No. 3 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] A-2 01203.0001/1014598.3 -3- IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: CITY OF RANCHO PALOS VERDES, a municipal corporation ____________________________________ John Cruikshank, Mayor ATTEST: _________________________________ Teresa Takaoka, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _________________________________ Elena Q. Gerli, City Attorney CONSULTANT: RENNE PUBLIC LAW GROUP, a limited liability partnership By: ________________________________ Name: John Holtzman Title: Founding Partner Address: 350 Sansome Street, Suite 300, San Francisco, CA 94104 CALIFORNIA PUBLIC POLICY GROUP INC. By: ________________________________ Name: Dane Hutchings Title: CEO and Secretary Address: 1127 11th Street, Suite 300, Sacramento, CA 95814. Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. A-3 01203.0001/1014598.3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-4 01203.0001/1014598.3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF LOS ANGELES On __________, 2024 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. A-5 RPLG/ CPPG Joint Request for Contract Reassignment| October 1, 2024 | City of Rancho Palos Verdes August 5, 2024 VIA EMAIL ONLY Ara Mihranian City Manager City of Rancho Palos Verdes Via Email: aram@rpvca.gov Re: Joint Notice—Change of Firm: Renne Public Law Group, LLP (DBA Renne Public Policy Group) to California Public Policy Group Inc. (CPPG) Effective Date of October 1, 2024 Dear Mr. Mihranian: In May 2019, the Renne Public Law Group (RPLG) launched Sacramento-based Renne Public Policy Group (RPPG) to provide public sector clients with non-legal services including legislative advocacy and grant writing. Since then, RPPG has dramatically expanded its client base and staff, delivering high-level services across California. We are pleased to report that RPPG and RPLG leadership have now agreed upon a plan to spin RPPG off as a separate corporation, forming the California Public Policy Group (CPPG). This move will allow RPPG employees an opportunity to gain ownership in the new entity while maintaining a partnership with RPLG—unified in our commitment to public sector representation. This move will also allow RPPG the opportunity to continue its growth and better serve its clients. To that end, we are jointly notifying our clients to ensure a smooth transition from RPLG to CPPG for the non-legal work currently being performed by RPPG. Below are the specific details of this change. Effective close of business on Monday, September 30, 2024, the Legislative Advocacy and Grant Services areas of Renne Public Law Group, LLP [DBA Renne Public Policy Group] will be transferred as part of an asset purchase agreement from Renne Public Law Group to California Public Policy Group, a California Corporation. All staff members currently assigned to perform work outlined in our professional services agreement will become employees of CPPG effective Tuesday, October 1, 2024. CPPG will retain the same Sacramento office location as well as the same contact information (e.g., emails, telephone number etc.). Service(s) Currently Being Performed: The City of Rancho Palos Verdes is currently under contract with RPLG for the following non-legal services: • State Legislative Advocacy Per the terms of our professional service agreement with the City of Rancho Palos Verdes we respectfully request that you approve—in writing—the assignment of your current service contract(s) enumerated above from Renne Public Law Group, LLP to California Public Policy Group Inc. Such assignment will include all terms and conditions of the contract currently in place including all requirements to adhere to your agency’s insurance and procurement requirements. The assignment shall be effective Tuesday, October 1, 2024. C-1 RPLG/ CPPG Joint Request for Contract Reassignment| October 1, 2024 | City of Rancho Palos Verdes We understand that different agencies may have different requirements and processes for effectuating this change. Please let us know how we can help navigate these processes, and any information we need to provide. Invoicing Pre and Post October 1, 2024: • All invoicing for services rendered will continue to be generated and distributed by RPLG for work performed through September 30, 2024. • Your agency will receive a final invoice on or about the first week of October from RPLG for all work performed in arrears through September 30, 2024. • All work commencing October 1, 2024, will transition to CPPG. • Beginning November 1, your agency will begin receiving invoices for all work performed on and after October 1, 2024, from CPPG. • There will be no interruption of service during this transition. Lobbying Registration and Filings: • CPPG will continue to work with the same Fair Political Practice Commission (FPPC) compliance vendor to ensure that all required forms are filed with the proper state agencies registering CPPG as the City of Rancho Palos Verdes’ lobbying firm of record. No cost will be assessed to your agency for this transition. • CPPG will work with RPLG to ensure that all third quarter reporting requirements are met. No cost will be assessed to your agency for this service. Any delivery of your files and records will be at no cost to you. Please direct us in writing by (including, should you wish, signing this form) to agree to the work assignment. Please feel free to contact Dane Hutchings or Jon Holtzman at any time on this matter. We appreciate your consideration of this request, and we look forward to the continued partnership with the City of Rancho Palos Verdes. Very truly yours, Jon Holtzman Dane Hutchings Managing Partner Managing Director Renne Public Law Group, LLP Renne Public Policy Group Founder/ CEO California Public Policy Group, Inc. C-2 RPLG/ CPPG Joint Request for Contract Reassignment| October 1, 2024 | City of Rancho Palos Verdes In accordance with the current professional services agreement with Renne Public Law Group, LLP, the City of Rancho Palos Verdes agrees to assign the performance of the requirements of the agreement subject to the terms and conditions of the agreement to the California Public Policy Group Inc. effective October 1, 2024. ____________________ Ara Mihranian City Manager City of Rancho Palos Verdes C-3