HomeMy WebLinkAbout2017-12-12 - AGENDA REPORTS - KADESH AND ASSOCIATES AND SULLIVAN INC (2)Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR 14)
CITY MANAGER APPROVAL: 41
DATE: December 12, 2017
SUBJECT: FEDERAL LEGISLATIVE ADVOCACY SERVICES: KADESH AND
ASSOCIATES LLC AND JAMISON AND SULLIVAN, INC.
DEPARTMENT: City Manager's Office
PRESENTER: Michael Murphy
RECOMMENDED ACTION
City Council:
1. Award contracts for the continuation of professional services with Kadesh and Associates
LLC and Jamison and Sullivan, Inc., for the period of January 1, 2018 through June 30, 2018,
in the amount of $60,000 for each firm, resulting in a total amount of $120,000.
2. Authorize the City Manager or his designee to execute contracts and associated documents,
subject to City Attorney approval.
BACKGROUND
For the past 17 years, the City of Santa Clarita (City) has successfully opposed efforts by
CEMEX to locate a 56,000,000 ton net sand and gravel mine in the Soledad Canyon area. The
large-scale mine was proposed to be located on split estate; with the City of Santa Clarita owning
the surface estate and the United States Bureau of Land Management (BLM) holding a superior
ownership on the underlying mineral estate.
The City retains two Washington, D.C. based federal advocacy firms, Kadesh and Associates
LLC and Jamison and Sullivan, Inc., to assist the City of Santa Clarita in advocating against the
mining project. Each firm is retained at $10,000 per month. Mark Kadesh, the principal at
Kadesh and Associates, is a former Chief -of -Staff for Senator Dianne Feinstein and has
extensive experience with both congressional, particularly the United States Senate, and
administration officials and processes. Cy Jamison, a principal at Jamison and Sullivan, is a
former Director of the Bureau of Land Management and has extensive experience with both
congressional, particularly the House of Representatives, and administration officials and
processes.
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Kadesh and Associates LLC and Jamison and Sullivan, Inc., have played an important role
regarding matters related to federal legislation and administrative action directly related to
CEMEX's Soledad Canyon mining proposal. The two firms provide both strategic advice and
undertake specific advocacy activities with Members of Congress, congressional members'
personal and committee staffs, and administration officials.
On August 28, 2015, the California State Director of the BLM issued a Decision formally
terminating the two mining contracts that it held with CEMEX for over a quarter-century to mine
in Soledad Canyon. CEMEX appealed the Decision and both parties have been engaged in an
administrative appeal process through the Interior Board of Land Appeals (IBLA). While there
is no statutory time frame in which IBLA is required to make a decision, it is anticipated that a
determination could come within the next four to six months. Depending upon the outcome of
IBLA's decision, which ends the administrative process, either of the parties would be eligible to
file suit in federal court or the parties may possibly enter into settlement negotiations.
Additionally, the matter before IBLA relates only to the Decision to terminate the two contracts.
In the event that the BLM California State Director's Decision is ultimately upheld and the
contracts with CEMEX are fully extinguished, BLM still retains the ability to contract, lease or
otherwise convey extraction rights at the Soledad Canyon site to another party.
The City of Santa Clarita has been working with Senator Dianne Feinstein (D -CA), Senator
Kamala Harris (D -CA) and Representative Steve Knight (R -CA -25) on a bi-partisan approach to
withdraw the site of the former contracts from mineral entry; meaning that the Secretary of the
Interior would be prohibited from entering into any future mineral extraction agreement with
another party. City staff has been working with Kadesh and Associates LLC and Jamison and
Sullivan, Inc., on that issue and specifically regarding Congressman Knight's H.R. 1557, the
Soledad Canyon Consistency Act, which was introduced on March 16, 2017.
The City Council is requested to authorize an extension of the professional services contracts
with Kadesh and Associates LLC and Jamison and Sullivan, Inc., for the period of January 1,
2018 through June 30, 2018. The current contracts for the two firms expire on December 31,
2017.
ALTERNATIVE ACTION
1. Award contracts for a period of time other than 180 days duration.
2. Not award contracts to Kadesh and Associates LLC and Jamison and Sullivan, Inc., and issue
a request for proposal for federal advocacy services.
3. Other direction as determined by the City Council.
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FISCAL IMPACT
Approval of the recommended action will result in a total maximum expenditure of $120,000 for
the period of January 1, 2018, through June 30, 2018. Adequate funds to support these proposed
contracts are available in account number 11000-5161.002.
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