HomeMy WebLinkAbout2016-11-22 - AGENDA REPORTS - LEGISLATIVE ADVOCACY SERVICES (2)Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: fill
DATE: November 22, 2016
SUBJECT: LEGISLATIVE ADVOCACY SERVICES: KADESH & ASSOCIATES
LLC AND JAMISON AND SULLIVAN INC.
DEPARTMENT: City Manager's Office
PRESENTER: Michael Murphy
RECOMMENDED ACTION
City Council:
1. Authorize the City Manager or designee to execute, subject to City Attorney approval,
contracts for continuation of professional services with Kadesh & Associates LLC and
Jamison and Sullivan Inc. for the period of December 1, 2016, to May 31, 2017.
2. Authorize the transfer of $120,000 from the Contingency account 19300-5401.001 to the
City Manager's Office - Professional Services account 11000-5161.002 for the period of
December 1, 2016, through May 31, 2017.
BACKGROUND
For the past 17 years, the City of Santa Clarita (City) has actively 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 & 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 &
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 & Associates LLC and Jamison and Sullivan Inc. have played a significant role on
matters specific to federal legislation and administrative action directly relating 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 elected and appointed officials.
On August 28, 2015, the BLM terminated 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). It is City staff s understanding that all of the briefs and associated paperwork
from both parties have now been filed with IBLA. IBLA is now in a position to render an
administrative decision. However, there is no statutory time frame in which IBLA is required to
make a final administrative determination. Depending upon the outcome of IBLA's decision,
either of the parties could file suit in federal court or the parties may possibly enter into a
negotiated settlement.
Additionally, the matter before the IBLA relates only to BLM's decision to terminate the
contracts. In the event that BLM'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 to another party. The City of Santa Clarita has been working closely with
Senator Dianne Feinstein (D-CA), Senator Barbara Boxer (D-CA) and Representative Steve
Knight (R-CA-25) to withdraw the site of the contracts from mineral entry; meaning that the
Secretary would be prohibited from entering into any future mineral extraction agreement with
another party. City staff has been working closely with Kadesh & Associates LLC and Jamison
and Sullivan Inc. on that issue and anticipates continuing to do so into the 115th Congress, which
begins in January 2017.
The City Council is requested to authorize an extension of professional services with
Kadesh & Associates LLC and Jamison and Sullivan Inc. for the period of December 1, 2016, to
May 31, 2017.
The City Council is further requested to authorize the allocation of $120,000 for the period of
December 1, 2016, through May 31, 2017.
ALTERNATIVE ACTION
1. Award contracts for a period of time other than the six month duration.
2. Not award contracts to Kadesh & Associates LLC and Jamison and Sullivan Inc. and issue a
request for proposal for federal advocacy services.
3. Other direction as determined by 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 December 1, 2016, through May 31, 2017. The funds are not currently allocated
for this specific purpose within the City of Santa Clarita's FY 2016-17 approved budget and will
require a transfer from Council Contingency (19300-5401.001) to the City Manager's Office -
Professional Services Account (11000-5161.002).
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