Legislative Advocacy Services Contract Amendment:

1. APPROVE contract amendment #3 with Khouri Consulting to extend the time of the contract by 12 months to October 31, 2020 and increase the payment to $4,000 per month;
2. APPROVE the use of agency funds budgeted for legislative activities; and
3. AUTHORIZE the Executive Director to take such further actions as may be necessary to fulfill the intent of the contract, including approvals of future modifications or amendments that do not significantly alter the scope of work or change the approved contract term or amount, subject to approval by Agency Counsel.

TAMC's contract with Khouri Consulting for legislative analyst/advocate services is currently $3,000 per month ($36,000 per year) and expires on October 31, 2019. Mr. Khouri has requested a significant increase in pay, to $5,000 per month ($60,000 per year), adjusted annually for cost of living. The Executive Committee discussed this request on August 7 and recommended a compromise of a one-year extension at $4,000 per month ($48,000 per year) without the cost of living increase, a proposal which Mr. Khouri has indicated his willingness to accept.

TAMC has budgeted $115,000 for state and federal legislative activities. This $48,000 contract amendment will allow activities related to reviewing, analyzing and advocating for legislation that will positively impact TAMC funding in the future, or advocating against proposals that pose a detriment to TAMC.  For comparison, staff surveyed payments for legislative advocacy services by other similarly-sized transportation agencies.  When compared with the past TAMC compensation, this rate is much closer to the average monthly rate (approximately $50,000/year) paid by other small/medium-sized transportation agencies for a broad range of legislative advocacy services. 

TAMC hired Gus Khouri of Khouri Consulting for legislative analyst/advocate services in July 2017 for $2,500 per month ($30,000 per year) for two years after a request for proposals (RFP). TAMC received three responses to the RFP, from JEA & Associates, Nossaman and Khouri. Khouri was ranked first or tied for first by all four reviewers based on the following criteria: responsiveness, proactiveness, positive relationships, quality of work, and project understanding. The RFP stated the budget for the work as $30,000 per year for a two-year contract. Mr. Khouri noted in his proposal that the amount TAMC offered was less than he would expect for the scope of work, and that he hoped he would prove his value for an increase in pay in the future. In June 2018, TAMC amended the contract to increase the compensation to $3,000 per month ($36,000 per year), in recognition of sustained superior performance and hours worked, and in June 2019, TAMC extended the contract to October 2019 to close out the legislative session.

On June 11, 2019, Mr. Khouri requested an increase in pay, to $5,000 per month ($60,000 per year), adjusted annually for cost of living, based on his accomplishments on behalf of TAMC, including his work on Senate Bill 1 increasing funding for transportation. Mr. Khouri's recent accomplishments include advocating on behalf of Senate Bill 628 (Caballero): Prunedale Bypass, which has been approved by unanimous vote through the legislature and now awaits the Governor's signature. Mr. Khouri has advocated in TAMC's interest on other relevant legislation; he submits timely, succinct, and tailored bills lists and reports; and he has successfully arranged meetings with legislators and California Transportation Commissioners to support TAMC's funding applications. The current TAMC stipend falls well below payments made to Mr. Khouri and other transportation advocates by transportation agencies of our size.  

On August 7, the Executive Committee discussed this request and recommended the Board of Directors approve a one-year contract extension at a rate of $4,000 per month ($48,000 per year). Staff approached Mr. Khouri with this offer and he has indicated that he would be willing to accept it. Because there was a split vote from the Executive Committee, the item is being brought forward for full Board consideration.