City of Culver City, California
City Council Agenda Item Report
Meeting Date: 10/08/07 Item Number: A-1
AGENDA ITEM: Discussion and Consideration of Public Education Activities
Related to the Proposed Modernization of the Utility Users’ Tax Provisions in the
Culver City Municipal Code; and Consideration of Approval of a Professional
Services Agreement with True North Research and Tramutola LLC for Public
Opinion Research and Public Education Advisory Services.
Contact Person/Dept.: Nick Kimball,
Budget & Finance
Phone Number: 310.253.6013
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Notification List 10/03/07
Department Approval:
Marlee Chang (10/03/07)
City Attorney Approval:
Carol Schwab (by H. Iker) (10/03/07)
Fiscal Impact Approval:
Marlee Chang (10/03/07)
City Manager Approval:
Jerry B. Fulwood (10/03/07)
RECOMMENDATION:
Staff recommends the City Council direct staff to develop and implement public
education activities related to the proposed modernization of the Utility Users’ Tax
provisions in the Municipal Code; and consideration of approval of a Professional
Services Agreement with True North Research and Tramutola LLC for public opinion
research and public education advisory services.
BACKGROUND/DISCUSSION:
On June 18, 2007, staff presented the City Council with fourteen (14) options to
address some of the City’s outstanding financial issues, including an option to place
a ballot measure on the April 8, 2008 general municipal election to modernize the
communications provisions of the current Utility Users’ Tax (UUT). At that meeting,
City Council unanimously directed staff to proceed with drafting a modernized UUT
ordinance and allocated funds for staff to obtain legal services and solicit the
professional services of a public opinion research firm in connection with the UUT
project.
On September 24, 2007, staff presented a proposed draft UUT ordinance (Title 3,
Chapter 3.08.200, et seq. of the Culver City Municipal Code) for Council’s review
which was also unanimously approved with no additional changes. Consistent with
that direction, Staff will continue to fine tune and finalize the proposed ordinance to
present to the City Council prior to calling the election in November 2007. Should
the City Council approve the Ordinance at that time, staff will continue the process of
City of Culver City, California
City Council Agenda Item Report
placing the ordinance on the ballot for voter consideration. Throughout this process,
staff will keep the City Council informed of the progress with periodic status and
timeline updates. Simultaneously while drafting the UUT ordinance, staff also
solicited and received bids from several firms with a Request for Proposal (RFP) to
provide public opinion and education services relating to the proposed UTT
ordinance.
In previous meetings, staff discussed the possibility of obtaining the service of a
public opinion research firm to assist in the public education process. Generally, as
part of presenting a ballot measure to the voters for approval, the City may distribute
informational materials and organize activities to educate the public regarding the
City’s revenue sources and the services and programs supported by those revenue
sources. Some cities have retained the services of a public opinion research and
education firm in order for them to determine specific areas where voters may
benefit from additional education information. This type of firm specializes in
conducting public opinion surveys to produce an evaluation of voters’ interest in a
proposed ballot measure. The data collected during this process can be used to
identify how to most effectively present a measure that is consistent with the
community’s priorities and sensitivities, and outline a public communications plan
that will effectively educate voters on the provisions of the proposed measure.
As has been discussed by the City Council during previous City Council meetings,
actions of the Federal Government have had the potential unintended consequence
of impacting local utility users’ taxes. While the actual impact of the Federal actions
is still unclear, the critical importance of this revenue source to the City of Culver City
and its ability to continue to fund fundamental local services has prompted the City
Council to consider presenting an update of the City’s UUT ordinance to the voters
for consideration. The City’s proposed modernization of the UUT ordinance is
basically to preserve the existing tax at the existing rate (11%). The purpose of this
proposed ballot measure is to update the language of a UUT tax ordinance that is
currently more than thirty years old. Further, in response to the Federal
Government’s actions, this proposed ballot measure seeks to obtain the voters’
affirmation of the City’s methodology for applying the tax. Since the proposed
ordinance essentially maintains the status quo of the City’s UUT tax revenue, and
Culver City voters have demonstrated their support for the UUT in recent years by
defeating an initiative measure to reduce the tax (April 2004), staff does not
recommend retaining the services of a public opinion research firm at this time.
When the City faced the initiative measure to reduce the UUT tax rate in 2004,
public education workshops and community outreach programs were presented and
conducted by in-house staff. Staff has also met with the Budget Subcommittee to
discuss developing and implementing public education using in-house staff, and they
are supportive of this concept. City of Culver City, California
City Council Agenda Item Report
Staff is confident that effective public education activities can be developed and
implemented, and informational materials can be prepared without retaining the
services of a public opinion research and education firm. Examples of potential
public education activities include a televised panel moderated by a local
organization discussing UUT-related issues, informational presentations to local
stakeholder organizations or dissemination of informational materials at a town hall
meeting. Staff will also prepare an educational presentation on the overall finances
of the City, how City programs and services are funded, and some of the fiscal
issues facing the City in the near future. If directed by Council, staff will develop a
variety of specific public education activities that address the community’s needs
and will inform the City Council of a more detailed plan within 60 days.
However, Council may still decide to retain the services of a public opinion research
firm, in order to conduct a survey of likely voters and develop recommendations for
public education activities. If Council chooses this route, staff recommends that
Council authorize a professional services agreement, for an amount not-to-exceed
$29,700, with True North Research and Tramutola LLC (hereafter True North) to
conduct public opinion research and provide public education advisory services
related to the proposed Utility Users’ Tax ballot measure. Staff solicited and
received proposals from six firms, see Attachments 1 through 6. Staff reviewed all
the proposals and True North met the criteria and the budget for the scope of
services. A public opinion survey and corresponding public education
recommendations will take approximately four to six weeks to complete.
FISCAL ANALYSIS:
1. Developing and implementing public education activities in-house will require
significant staff time. There would also be costs associated with printing and
distributing informational materials which will be accommodated by the current
budget. The development of this information, in conjunction with budget
education materials, is a component of the Budget & Finance Division’s work
plan, and will be placed higher on its priority list to accommodate the timeliness
of this project. Should the Council decide to conduct public education activities
in-house, staff recommends transferring a portion of the $30,000 from the
professional service to a Public Education account for related expenditures when
it is needed. City Manager has the authority to make an administrative transfer
up to $20,000.
2. Contracting with a firm to conduct a public opinion survey and develop
recommendations for public education activities would cost approximately
$30,000. On June 18, 2007, City Council approved sufficient funds to cover a City of Culver City, California
City Council Agenda Item Report
professional services agreement for these services (10120100.619800). Please
note that additional funds would be needed to implement any recommendations
provided by the consultant, including costs associated with printing and
distributing informational materials and significant staff time required to
implement the recommendations. The additional amount is estimated to be
approximately $10,000 which includes postage for post card notification,
educational material, and printing expenses. City Manager has the authority to
make an administrative transfer of $10,000 from other account to fund this
expenditure.
ATTACHMENTS:
1. True North Research and Tramutola LLC’s RFP proposal summary
2. Proposal Cover Letter from Competitive Edge Research
3. Proposal Cover Letter from Davis Group/Public Opinion Research
4. Proposal Cover Letter from EMC Research Inc.
5. Proposal Cover Letter from FMMA/Lew Edwards Group
6. Proposal Cover Letter from Godbe Research
MOTIONS:
That the City Council:
1. Direct staff to develop and implement public education activities related to the
proposed Utility Users’ Tax ballot measure in-house, without retaining the
services of a public opinion research and public education consulting firm and
authorize the transfer of a portion of the $30,000 previously allocated to a Public
Education account for related expenditures;
OR
2. Direct staff to retain the services of a public opinion research and public
education consulting firm to conduct a survey of the community and develop
public education activities ; and
a) Approve a professional services agreement with True North Research and
Tramutola LLC in an amount not-to-exceed $29,700, to conduct public
opinion research and provide public education advisory services related to the
proposed utility users’ tax ballot measure; and
City of Culver City, California
City Council Agenda Item Report
b) Authorize the City Attorney to prepare the necessary documents and
authorize the City Manager to execute such documents on behalf of the City.