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HomeMy WebLinkAbout04.c. Old Business - Federal Advocates4 to. Central Contra Costa Sanitary District June 9, 2014 TO: FINANCE COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER DAVID HEATH, DIRECTOR OF ADMINISTRATION DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER FROM: THEA VASSALLO, FINANCE MANAGED SUBJECT: FINANCIAL INFORMATION REQUESTED ON CONTRACT WITH FEDERAL ADVOCATES AT THE MAY 27, 2014 COMMITTEE MEETING At the May 27, 2014 Finance Committee meeting, the Committee requested information regarding the contract with lobbyists Federal Advocates, including what services the District receives and when the District last did a Request for Proposal (RFP) for lobbying services. Enclosed are the following documents for your information: • Memo (Attachment A) to former Enterprise Committee, updating the Committee on federal advocacy efforts made by Federal Advocates, Inc. since December 2010 to obtain grant funding for the Refinery Recycled Water Project. The Enterprise Committee reviewed the information at its December 9, 2013 meeting and directed staff to continue its federal advocacy efforts. • Position Paper (Attachment B) for January 23, 2014 Board Meeting to authorize the General Manager to amend an existing professional services agreement with Federal Advocates from $190,000 to $265,000 to continue advocacy efforts to obtain federal grant funding for the Refinery Recycled Water Project, District Project 7300. The Board voted unanimously to authorize the General Manager to amend the agreement as recommended by staff. TV:cg N:\ADMINSUP\ADMIN \DIST- SEC\ COMMITTEES \Finance\2014\Attachments \Cover Memo for Federal Advocates info 06- 09- 14.docx ATTACHMENT A Central Contra Costa Sanitary District December 2, 2013 TO: BOARD ENTERPRISE COMMITTEE VIA: DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER FROM: MELODY LABELLA, PROVISIONAL ASSOCIATE ENGINEER qPA SUBJECT: UPDATE ON FEDERAL ADVOCACY EFFORTS TO OBTAIN GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT Background The District contracted with Federal Advocates, Inc. in December of 2010 to secure funding from Congress for the Contra Costa County Refinery Recycled Water Project (Refinery Project); the contract services are provided at $5000 per month and continues until January 31, 2014. Seeking federal funding is a two -step process in Congress: (1) secure authority to support funding (via an authorization bill) and (2) then funding itself (via an appropriations bill). Current Status Federal Advocates, Inc. has focused on the pursuit of authorization of funding for the Refinery Project in the reauthorization of the Water Resources Development Act (WRDA) of 2007. Both Houses of Congress have passed their authorization bill — the Water Resources Development Act of 2013. The District's objective was to have the Refinery Project specifically named. However, given the current ban on earmarks, neither bill names specific projects. The District's revised objective is to get Section 219 of existing law (environmental infrastructure program) reauthorized and /or to amend the U.S. Corps of Engineers' basic authority to allow them to spend funds on environmental infrastructure projects of which the Refinery Project is one. Both bills, as passed, reauthorize Section 219 without modifications. Future Action The focus is to get the "environmental infrastructure" added to the Corps' mandate. The bills are currently in conference, which means that the differences between the two versions (House and Senate) of the bill have to be reconciled. The goal is to finish conference by the end of January 2014. Afterwards, we will have a better idea on whether or not continued federal advocacy is needed to pursue appropriations. N:%EWRSRV\Board committees\Enterprise12013 112 -9 -13 Update on Federal Advocacy for Refinery Project.docx Summary of Federal Advocacy Efforts for CCCSD Refinery Project Prepared by Sante Esposito, Federal Advocates, Inc. November 26, 2013 December 2010 to December 2012 Funding Opportunities Memorandum Prepared various informational memos for CCCSD outlining the WRDA reauthorization process; how it relates to the Title 16 USBR process; the congressional appropriations process; overall timetables; and the President's Budget. Proiect White Paper Outline Prepared for CCCSD an outline of a "white paper" to be used for educational /advocacy briefings with the Congress and the Executive Branch. Proiect White Paper Collaborated with CCCSD on production of a "white paper" on the Project. The paper included background information; Project summary; Project details; needs and benefits; costs; supporting entities; and various attachments. Collaboration included reviewing various drafts; providing comments; suggesting attachments; etc. Senate Environment and Public Works Committee (SEPW) Ongoing Meetings SEPW is the Senate committee of jurisdiction regarding WRDA reauthorization legislation. Federal Advocates had numerous meetings with SEPW staff to educate them about the Project; its merits; and need for legislation. Senator Boxer's Personal Office Staff Senator Boxer is not only one of CCCSD's U.S. Senators but she also chairs the SEPW Committee. Federal Advocates had numerous meetings with her DC personal staff both to present and advocate for the Project and to encourage input from her personal staff directly to her SEPW staff for expeditious consideration of WRDA legislation. Senator Feinstein's Personal Office Staff Federal Advocates also had numerous meetings with her DC personal staff on behalf of the Project given that Feinstein is not only the senior Senator from California but also the Chair of the Energy and Water Appropriations Subcommittee which provides funding for WRDA water recycling projects. Congressman John Garamendi (D -CA) Numerous meetings /conversations were had with the Congressman directly and/or his DC staff in support of funding authorization. As a result, the Project is on the Congressman's infrastructure priority list. House Transportation and Infrastructure Committee (T &I) T &I is the House committee of jurisdiction regarding WRDA reauthorization legislation. Federal Advocates had numerous meetings with T &I staff to educate them on the Project; its merits; and need for legislation. Federal Advocates also hosted a fundraiser for Congressman Bob Gibbs (R -OH) who is Chair of the Subcommittee on Water Resources and the Environment, which is responsible for generating the House WRDA reauthorization bill. Summary of Federal Advocacy Efforts for CCCSD Refinery Project Page 1 Congressman George Miller (D -CA) Periodic conversations with Congressman Miller's DC personal staff on the Project and advocacy developments in both Houses. Members' District Staff Collaborated with CCCSD on the various meetings /conversations that CCCSD staff have had with District staff of various congressional delegation Members, including the preparation of material for such meetings as requested. DC Meetings Coordinated and attended CCCSD DC meetings including a series of meetings on March 16, 2011 with key committee and Members' staff. The purposes of the meetings were to present and explain the Project, and to seek support for WRDA reauthorization inclusion. Federal Advocates also assisted in developing material for such meetings. Boxer WRDA Project Solicitation In July 2011, Senator Boxer put out a "call for projects" in anticipation of SEPW action on a WRDA bill. While the latter did not materialize at that time, Federal Advocates assisted CCCSD in preparing and submitting the necessary project information requested by Boxer. Corps of Engineers Headquarters Two meetings were held with Corps Headquarters staff: the first, to make them aware of the Project; provide the Project "white paper"; and, seek support for WRDA reauthorization; and the second, to identify a viable Corps section funding source for the project in a WRDA bill. As a result of the latter, Section 219, Environmental Infrastructure Programs, was identified as the most appropriate "fit" since it had the most favorable Federal match requirement and least onerous Corps' requirements. Army Corps of Engineers District Office Coordinated with CCCSD their various presentations /conversations with the Sacramento District Office staff of the Corps. Water Infrastructure Network (WIN) WIN is a broad -based coalition of local elected officials, drinking water and wastewater service providers, state environmental and health administrators, engineers and environmentalists dedicated to preserving and protecting the health, environmental and economic gains that America's drinking water and wastewater infrastructure provide. The Network holds monthly meetings to discuss the status of various "water" issues /legislation including WRDA reauthorization. Federal Advocates is a participant at those meetings. WIN has been very active and aggressive in pursuing WRDA legislation, having sent numerous letters to the Hill urging action on the bill; preparing various fact sheets; etc. Office of Management and Budget Briefed the Budget Examiner for the Corps on the Project, including sharing the "white paper' and advising on advocacy activities on the Hill. Federal Aviation Administration (FAA) /Highway Reauthorizations Both SEPW and T &I announced that their three legislative priorities, in order, for the Congress are reauthorization of the FAA, the Transportation /Highway bill and WRDA. Federal Advocates Summary of Federal Advocacy Efforts for CCCSD Refinery Project Page 2 worked for expeditious enactment of the FAA and Highway Bills so that the Committees could then turn their attention to WRDA. BoxerNitter Announcement Senators Boxer and Vitter (R -LA), the Ranking Republican on the Water Resources Subcommittee of SEPW, announced their intent to mark -up WRDA legislation in September. Federal Advocates, in conjunction with various other stakeholders, helped to make that happen. Corps District and Boxer - Vitter Announcement In the announcement, the Senators stated that while the bill would not include earmarks, it would include authorization for the Corps to undertake projects that "don't cost anything" and/or that have received a favorable Chiefs report. Pursuant to that, Federal Advocates is currently in discussions with the Corps Sacramento Office to make sure that the Project will be eligible for funding. January 1, 2013 to the Present SEPW Committee Action Advocacy efforts in January and February focused on possible markup of a WRDA bill. An informational meeting with Committee staff was held. Timing and substance of the markup still unclear. T&I Action Monitored developments on the House side pending SEPW action including possible developments and Committee action on a House counterpart bill. Army Corps District Staff Continued discussions with Sacramento office regarding eligibility pending substance/language of SEPW and/or T&T bill. FY13 Appropriations Process Monitored process for any developments impacting WRDA reauthorization efforts. President's FY14 Budget Presidential budgets also include proposed legislative initiatives with corresponding funding levels. Continued advocacy efforts with Corps Headquarters and OMB on favorable budget treatment of WRDA legislation and funding. SEPW Bill Drafting In February, SEPW announced that it was commencing drafting its WRDA bill. Meetings were held with Committee staff in support of Section 219 and " environmental infrastructure" inclusion in the draft. SEPW Bill Introduction On March 18, SEPW introduced S.601, the Water Resources Act of 2013, with no earmarks and reauthorization of 219. The inclusion of the generic "environmental Infrastructure° unresolved. T&I Hearings Reauthorization hearings were held on a House bill. Letters were drafted and submitted on behalf of CCCSD in support of its reauthorization request. Summary of Federal Advocacy Efforts for CCCSD Refinery Project Page 3 Congressmen Miller, Swawell, Thompson and Garamendi Coordinated discussions between CCCSD and the above Members' District staffs. Letters urging CCCSD support drafted and submitted to all. Chairwoman Boxer and Senator Feinstein Similar letters of support drafted and submitted. T &I Bill Introduction On September 11, T &I introduced its version of the reauthorization Bill. In anticipation of that, meetings were held with Committee Staff in support of Section 2i9 and "environmental Infrastructure." The introduced bill included no earmarks and reauthorization of Section 219. The inclusion of the generic "environmental infrastructure" unresolved. SEPW Bill Passage On May 15, the Senate passed S.601, the SEPW version of WRDA reauthorization. T &I Bill Passage On October 23, the House passed H.R.3080, the T &I version of WRDA Reauthorization. On November 24, House conferees were named including Congressman Garamendi. Pending that, conversations were had with his staff on behalf of the Refinery Project. Conversations were also had with Senate and House Committees' staff. WRDA Conference Private staff negotiations sessions involving the Senate and House Committees continue. Periodic interaction with staff are occurring to monitor developments. Summary of Federal Advocacy Efforts for CCCSD Refinery Project Page 4 ATTACHMENT B Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: January 23, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT, DISTRICT PROJECT 7300 Submitted By. Initiating Dept/Div.: Nathan Hodges, Provisional Senior Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Environmental Services Division Manager 4 R. Bailey Leneral Manager ISSUE: Authorization from the Board of Directors is required for the General Manager to amend an existing professional services agreement beyond staff authority limits. RECOMMENDATION: Authorize the General Manager to amend an existing Professional Services Agreement with Federal Advocates from $190,000 to $265,000 to continue advocacy efforts to obtain federal grant funding for the Refinery Recycled Water Project, District Project 7300. FINANCIAL IMPACTS: The additive cost of this amendment is $75,000. ALTERNATIVES /CONSIDERATIONS: An alternative is to conduct this work with in- house staff. However, this work requires specialized expertise, which is not available at the District. A second alternative is to discontinue advocacy efforts, but this would reduce the chances for obtaining federal grant funding assistance and is not recommended. BACKGROUND: The District has an agreement with the Washington D.C. -based advocacy firm of Federal Advocates to assist in obtaining federal grant funding for the Refinery Project. The focus of Federal Advocates' efforts has been on the inclusion of the Refinery Project in the reauthorization of the Water Resources Development Act (WRDA), which could provide grant funding for up to 75% of project costs. The cost of the full scale refinery project (20 MGD of recycled water) is currently estimated to be approximately $85 million, and WRDA could potentially provide a significant amount of grant funding for this project. Federal Advocates has been successful in helping the District navigate the legislative process and encouraging federal legislators to consider the project for WRDA funding. Other local agencies have been able to obtain large amounts of grant funding through WRDA for their recycled water projects, such as the East Bay Municipal Utility District, C:\ Users\ danderson\AppData\LocaNMicrosoft \Windows \Temporary Internet Files \Content.Outlook\DVCG8C5G\PP Fed Advocates Agreement 1 -23-14 Final.doc Page 1 of 3 POSITION PAPER Board Meeting Date: January 23, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT, DISTRICT PROJECT 7300 which previously obtained approximately $40 million in WRDA funding, which included a programmatic authorization for their recycled water program. With the potential of future nutrient removal requirements for the District's treatment plant, the Refinery Project could be a way for the District to reduce its nutrient discharge to Suisun Bay. If the District is successful in obtaining WRDA funding assistance, the District's costs to comply with potential nutrient removal requirements could be significantly reduced. The District is currently at a critical milestone in the WRDA reauthorization process. Both the Senate and House have passed WRDA bills. The conference meeting to reconcile both versions of the WRDA bill is expected to be complete this spring. Shortly thereafter, the District will know if the final legislative bill will contain any funding possibilities for the Refinery Project. This contract amendment will provide funds to continue District advocacy at the federal level assuming WRDA funding is possible. In the event no funding is provided for in the final WRDA bill, there will be no need to continue work with Federal Advocates and no further money will be spent on these efforts. There is enough money on the existing agreement to continue work through February 2014. This additional authorization for funding is being sought at this time to continue advocacy through conferencing and also permit uninterrupted funding of Federal Advocates in the event WRDA funding for the District is available. The existing agreement with Federal Advocates was initiated in December 2010 and will expire on January 31, 2014. Since the inception of this agreement, Federal Advocates has sought funding authorization for the Refinery Recycled Water Project in WRDA and Title 16. These advocacy efforts increase the likelihood of project authorization and subsequently funding via the appropriations process. The current cost ceiling for the agreement is $190,000. The cost ceiling was increased by the Board on July 11, 2013 from $149,500 to $179,500, and by staff in December 2013 to $190,000 under staffs authority limit for contract amendments, which is 15% of the previous Board authorized agreement amount. The agreement would be extended for an additional fifteen months at a cost of $5,000 per month for a total budget increase of $75,000. COMMITTEE RECOMMENDATION: The Enterprise Committee reviewed the status of the Federal Advocacy contract at its meeting on December 9, 2013 and recommended that these efforts continue. While the amount of the contract amendment was not specifically discussed, the terms of the contract remain the same. C:\ Users% dandersonW ppDatalLocalWlicrosoft \WindowslTemporary Internet FileslContent .Outlook\DVCG8C5GkPP Fed Advocates Agreement 1 -23-14 Final.doc Page 2 of 3 POSITION PAPER Board Meeting Date: January 23, 2014 subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH FEDERAL ADVOCATES TO ADVOCATE FOR FEDERAL GRANT FUNDING FOR THE REFINERY RECYCLED WATER PROJECT, DISTRICT PROJECT 7300 RECOMMENDED BOARD ACTION: Authorize the General Manager to amend an existing Professional Services Agreement with Federal Advocates from $190,000 to $265,000 to continue advocacy efforts to obtain federal grant funding for the Refinery Recycled Water Project, District Project 7300. C:\ Users\ dandersonWppData\Local\Mlcrosoft \Windows \Temporary Internet Files \Content.0utlook\DVCG8C5G\PP Fed Advocates Agreement 1 -23-14 Final.doc Page 3 of 3