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AGR-7660 - PIVOTAL STRATEGIES LLC - PUBLIC EDUCATION AND OUTREACH SERVICES - MARCH 12, 2024DocuSign Envelope ID:A5-75t314-52CE-4319-A329-0045B158E138 DS f1GR-7660 [ 57- PROFESSIONAL SERVICES AGREEMENT Public Education and Outreach Services] THIS PROFESSIONAL SERVICES AGREEMENT (the "Agreement") is made at Orange, California, on this 12th day of March 2024 (the "Effective Date") by and between the CITY OF ORANGE,a municipal corporation("City"),and PIVOTAL STRATEGIES LLC, a California limited liability company ("Contractor"),who agree as follows: 1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit"A," which is attached hereto and incorporated herein by reference. As a material inducement to City to enter into this Agreement,Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are the subject of this Agreement are not in the usual course of City's business and City relies on Contractor's representation that it is independently engaged in the business of providing such services and is experienced in performing the work. Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity providing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary. Jack Morgan, Senior Assistant to the City Manager ("City's Project Manager"), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor's performance hereunder shall be under the supervision of City's Project Manager(or his/her designee),that Contractor shall coordinate its services hereunder with City's Project Manager to the extent required by City's Project Manager,and that all performances required hereunder by Contractor shall be performed to the satisfaction of City's Project Manager and the City Manager. 2. Compensation and Fees. a.Contractor's total compensation for all services performed under this Agreement, shall not exceed NINETY-EIGHT THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($98,500.00) without the prior written authorization of City. b. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto rental, subsistence and all related expenses. DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 3.Payment. a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred. b. All such invoices shall state the basis for the amount invoiced, including services completed,the number of hours spent and any extra work performed. c.Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice. 4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City's Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work,extension of time,and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City's Project Manager, City Manager or City Council, as applicable. 5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement. 6. Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not,under any circumstances,be considered employees of City,and that they shall not be entitled to any of the benefits or rights afforded employees of City,including,but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits. 7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever. 2 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 8. Designated Persons. Only those qualified persons authorized by City's Project Manager,or as designated in Exhibit"A," shall perform work provided for under this Agreement. It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated. 9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee. 10. Time of Completion. Except as otherwise specified in Exhibit "A," Contractor shall commence the work provided for in this Agreement within five(5)days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit"A"hereto or as otherwise agreed to by and between the representatives of the parties. 11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work. 12. Reserved. 13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay,Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor's control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement. 14. Products of Contractor. The documents, studies, evaluations, assessments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction. 15. Equal Employment Opportunity. During the performance of this Agreement, Contractor agrees as follows: a. Contractor shall not discriminate against any employee or applicant for employment because of race, color,religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, 3 DocuSign Envelope ID:A51-75B14-52CE-4319-A329-0045B158E138 sex,national origin, mental or physical disability,or any other basis prohibited by applicable law. Such actions shall include,but not be limited to the following: employment,upgrading,demotion or transfer,recruitment or recruitment advertising,layoff or termination,rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause. b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. c.Contractor shall cause the foregoing paragraphs(a)and(b)to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials. 16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the design/build firm for the project that is the subject of this Agreement.] 17. Indemnity. a. To the fullest extent permitted by law, Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof,and the officers, officials, agents and employees of City (collectively the "Indemnitees") entirely harmless from all liability arising out of: 1) Any and all claims under workers' compensation acts and other employee benefit acts with respect to Contractor's employees or Contractor's subcontractor's employees arising out of Contractor's work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees' status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and 2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City's property; but not for any loss, injury,death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability 4 DocuSgn Envelope ID:A51-75B14-52CE-4319-A329-0045B158E138 covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph. b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement. c.Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement. d. The indemnities set forth in this section shall survive any closing, rescission,or termination of this Agreement,and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors. 18. Insurance. a. Contractor shall carry workers' compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any workers' compensation benefits under any City program. b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of One Million Dollars($1,000,000)per occurrence; or(2)all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis. c.Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of(1) a combined single limit of One Million Dollars ($1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis. d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement. e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate 5 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045E3158E138 of insurance. In lieu of an endorsement,City will accept a copy of the policy(ies)which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement. f.Reserved. g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy. Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above. h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City,which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten(10) days' prior written notice to City. i.Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies either licensed or admitted to conduct business in California so long as such insurer possesses the aforementioned Best rating. j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set-off from any sums owed Contractor. k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City,on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein,a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance. 1.Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein. 6 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days' written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise. Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits. 20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the records")pertaining to the costs of and completion of services performed under this Agreement. City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3)years after termination or completion of this Agreement. Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three(3)days' notice from City,and copies thereof shall be furnished if requested. 21. Compliance with all Laws/Immigration Laws. a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. b. If the work provided for in this Agreement constitutes a"public works," as that term is defined in Section 1720 of the California Labor Code,for which prevailing wages must be paid, to the extent Contractor's employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing rates of wages to all such workers. The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally,to perform work under this Contract, Contractor must meet all State registration requirements and criteria,including project compliance monitoring. c.Contractor represents and warrants that it: 1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 IRCA); and 2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and 7 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Compactor's employees; and 4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration. d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c. e.Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide,to the reasonable satisfaction of City,verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees. f.Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e. g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee,that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City. h. Contractor agrees to indemnify and hold City, its officers, officials, agents and employees harmless for, of and from any loss, including but not limited to fines,penalties and corrective measures City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement. 22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California. 23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement,oral or written,pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agreement shall not be compensated. 8 DocuSign Envelope ID:A5F75B14-52GE-4319-A329-0045B158E138 24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally, by e-mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission. CONTRACTOR" CITY" Pivotal Strategies LLC City of Orange 9619 National Blvd. 300 E. Chapman Avenue Los Angeles, CA 90034 Orange, CA 92866-1591 Attn.: Brandon Stephenson Attn.: Jack Morgan Telephone: 310-736-1032 Telephone: 714-744-2220 E-Mail: bstephenson@pivotalstrategies.com E-Mail: jmorgan@cityoforange.org 25. Counterparts. This Agreement may be executed in one or more counterparts,each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures. Remainder of page intentionally left blank; signatures on next page] 9 DocuSign Envelope IU:A5F75B14-52CE-4319-A329-0045B158E138 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written. CONTRACTOR" CITY" PIVOTAL STRATEGIES LLC, CITY OF ORANGE, a municipal corporation a California limited liability company DocuSigned by: r D ocuSigned by. Y• A7aua 13a97loo... y naaR7mmf1av Printed Name: Brandon Stephenson Daniel R. Slater, Mayor Title: Fnunding Partner DocuSigned by: By: 17AF511F5RnndAS ATTEST: Printed Name: Jonathan Lonner DocuSigned by: Title: Founding Partner f1B2AED BRBEG3G Pamela Coleman, City Clerk APPROVED AS TO FORM: DocuSigned by: 41161, Rf]Rb1 F4R7RFd9R Mike Vigliotta City Attorney NOTE:City requires the following signature(s) on behalf of the Contractor: 1)the Chairman of the Board,the President or a Vice-President,AND (2)the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office,please so indicate. OR The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement,must be provided to City. 10 L)ocuSign Envelope IL):A5F75B14-52CE-4319-A329-00455158E138 EXHIBIT "A" SCOPE OF SERVICES Beneath this sheet.] DocuSign Envelope ID:A5F75B14-52CE-4319-A329-00458158E138 PIVOTAL PUBLIC EDUCATION AND COMMUNITY OUTREACH March 4, 2024 Pm N", i v -... .. .{. y _._ ,... v. ... .. A z t:f., etc. . •,.,ri .f•s r'k • > 01 r Z Jig 11.4. a Div a ,- • 1•'. . t.-`Xv-.1. v.. w .,• 4: ir• y L_ q l:- ry ' y , 4• 14µcf r i£ f ` 4}s . k. 9n y1! 1 ,CI I r ti. , r. tom iw.,. r i 1fMn 3 n Lam fi.- DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 RPIVOTAL[ 9619 National Blvd. Los Angeles,CA 90034 Phone: 310.736.2337 March 4, 2024 Mr.Jack Morgan Senior Assistant to the City Manager City of Orange Sent via email to jmorgan@cityoforange.org Re: Pivotal Strategies Proposal for Public Education Services Dear Mr. Morgan, Thank you for inviting Pivotal Strategies to submit a proposal to the City of Orange for educational and outreach services focused on a community conversation regarding the City's budget shortfall and options for maintaining quality City services. Proposing any type of cost cutting or revenue-raising measure places a city at a pivotal moment with its constituents. How a city engages their community about a revenue measure makes the difference between residents and businesses understanding their city's challenges or losing confidence in their public servants. Pivotal Strategies was founded on a simple premise - bring together a group of talented, smart, and compassionate people who embrace the people we work with, enjoy the clients we work for, and champion projects that make lasting improvements in Southern California's diverse communities. The Pivotal team can immediately become Orange's partner and launch a customized, integrated, and multi-lingual education program to ensure constituents understand all aspects of the City's budgetary challenges and the options it's evaluating to maintain a high level of service. Much like a city, Pivotal leverages a talented team that isn't afraid to work hard to accomplish big projects within budget and on schedule. Our decades of experience, and local expertise communicating budget balancing measures in California cities, helps us stand out from other companies. Our team has built countless successful strategic communications and community engagement programs to help cities, counties, and other government agencies create compelling narratives and engage communities on a wide range of issues. 1 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 As a Los Angeles-based firm, Pivotal knows how important it is to be available for in-person activities and to customize our education programs to individual Southern Californian cities. From what messages should be communicated, to when and how, can vary greatly from city to city. Our team's public education covers diverse Orange County cities including Anaheim, Costa Mesa, Los Alamitos and Westminster, as well as other Southern California cities such as Burbank, Culver City, Downey, Duarte, El Monte, El Segundo, Glendale, Montclair, Norwalk, Ontario, and South El Monte, among others. ao,HE1M c4\ OVRBg4,O'MFS, u N,'s y0ryf. t4Y J L al Jkttlor ,Me. ,n%i BOO p' O" ay 7 pA aan S pH ClAl OAR/ P11 111 :*\1 4,N)C 4; 4 V f, ').; These cities can attest to the effectiveness of our programs and the ease of integration we had with their teams. Please refer to the References section on page 11 for additional information on some of these programs. We've also provided sample collateral in Appendix A showcasing branding Pivotal created specifically for each public education campaign, giving each campaign an easily identifiable and authentic"look and feel"for residents. The Pivotal team has a decades-long relationship with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) on countless municipal clients. That experience will let us immediately start working closely with FM3, and the data they collect on Orange, to immediately construct a narrative demonstrating the City's strengths and challenges, and the avenues available to close the City's budget gap, and most importantly the effects on City services, infrastructure, and facilities going forward. We're pleased to submit this proposal for a robust public education and outreach program. Moving Forward Together Based on our conversations, Orange has an important story to tell. Residents must be educated about the City's current and projected financial shortfall, as well as the specific nature and options available to capture the needed general fund revenue to maintain or enhance City services. 2 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 Action is needed, but action without educating the community can lead to confused constituents and entrenched opposition to potential solutions. It is vital for the City to create a comprehensive and consistent narrative that is transparent and inclusive. And that's where the Pivotal team can help the City. Our team knows how to break down complex issues for diverse communities, ensuring they fully understand how additional revenue, or the lack thereof, will impact the City and its services. Working with the City's leadership, we'll explore the best way to educate the public about the Citys current successes and future challenges, and potential solutions to protecting City services that residents and businesses have come to expect. The Roadmap The City of Orange's partnership with Pivotal will take the City through every step of the public education and outreach process to ensure as many members of the public as possible are aware of the City's financial challenges and are invited to participate in a discussion on the best steps to move forward. From Day 1, we'll be by your side providing the expert counsel cities have come to expect from us. While the specific strategy, messages, and tactics of the program will be determined in collaboration with the City team and based on the polling the survey research firm will conduct, the fundamentals of the public education program can be summarized in a three-phase process: Resew c4 Palely, micak Phase One Phase Two Phase Three Phase One would begin after the Council's decision to proceed with a public education and outreach program. This research phase will focus on an analysis of the survey research conducted by FM3, communication channels available to the City, various stakeholder groups, and a kick-off meeting with City staff to discuss strategy for the development and deployment of a public education program. Phase Two is our program kick-off phase. We will develop a program brand with compelling messages and educational materials necessary to communicate with stakeholders and the broader community about the steps the City has taken to strengthen its finances, forecasted challenges, and the options available to the City to maintain its quality of life services for years to come. Outreach and education 3 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 efforts will begin during this phase following the completion of our base educational material. Phase Three would begin in Summer 2024 if the City Council elects to place a ballot measure on the November 2024 ballot. All Phase Two activities would continue, but with a refined brand and messages, and more intensive public education activities to ensure all residents are fully aware of the effects of the measure before voting begins. We pride ourselves on following the letter and spirit of communications regulations. This includes following the rules that govern the type of messages that can be communicated by a government entity for an education program. Our messages and activities will be educational only, without any advocacy or spin. We believe that all activities and messages should be reviewed by the City Attorney or other legal counsel to maintain the highest ethical standards. No two cities are the same, and its representatives from council, staff to legal counsel, have varying comfort levels when it comes to a public education program for a potential revenue measure. Pivotal has a long history of working with City representatives to customize a public education program that all parties will be comfortable with. Scope of Work Pivotal designs its customized public education programs to raise awareness among residents and businesses about the City's strengths and challenges, surrounding the community with factual and compelling messages. Our robust, integrated communications program proactively engages the public to provide our educational messages and materials, creating touchpoints to surround constituents with our messages to ensure the maximum education levels possible. A timeline is included below detailing how the various components of this scope of work will be employed to create a seamless, integrated program. As the City and its elected leaders debate various options for addressing budget challenges, we'll tell the story about the City's challenges through existing communication channels to make sure residents don't see a potential revenue measure as something that is out of the blue or unnecessary. Our goal in the initial outreach phase is to develop a community conversation where all residents are able to participate and share their thoughts and ideas. Depending on if the Council decides to submit a resolution to have a ballot measure on the election, and if the City chooses to conduct a tracking survey, we would recommend disseminating messages about the measure in June or July 2024. This natural progression will ensure residents aren't blindsided by the idea of a revenue measure and that our 4 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 public education material and messages are top of mind when voting begins in October 2024. Pivotal's Services I The Winning Formula Strategic Counsel: Orange needs a local, experienced, and responsive consultant that can adapt their approach based on changes on the ground. We'll be that expert guide directing which tools to use and when from our kickoff meeting through Election Day(if needed). Program Launch Meeting: We'll quickly coordinate a team meeting to go over our proposed program and timing. The meeting will allow us to have a thorough discussion about the Citys challenges, as well as the proposed program's goals, features, and timing to ensure we're moving forward with a consensus approach. This would be followed by brief weekly or bi-weekly calls with the frequency of our meetings varying depending on the phase of the program. Resolution and Draft Language Support: Many of our municipal clients elect to use our expertise in reviewing draft ballot language and title, supporting"Whereas" clauses for resolutions, and other supportive messaging in staff reports. This support is available to the City should Council elect to place a measure the ballot. Message and Theme Development: We'll develop the themes and messages that will serve as the cornerstone for all public outreach and external communication activities. These messages will rely heavily on those tested in the survey research and will incorporate existing messages the City uses to communicate with its constituents. We will create a core messaging document from which all written and verbal communications will be based. Brand Development: Every Pivotal municipal education program has a distinct brand, something that will resonate with residents and business owners as being local and authentic. Creating a unique brand for the program will allow all messages and materials to be seen as part of a unified voice throughout all phases of the education and outreach program. Materials Development: Based on our theme and messages, we will develop a set of multilingual collateral materials to communicate with residents. These materials would have the look and feel of other City materials and would be our primary tool to disseminate messages to external audiences. At a minimum, our materials will be professionally translated and provided in English and Spanish, with options to add any languages the City requests such as Vietnamese or Tagalog. Additional languages may require a nominal additional fee above what is quoted in this proposal. 5 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 o Fact sheet o Frequently Asked Questions (FAQ) document o PowerPoint presentation o Palm Card (for public events) Message Dissemination: We will work with the City to disseminate educational messages through its existing electronic and printed newsletters, to reach a broader audience and enhance our educational efforts. Additionally, we recommend that our materials be placed in all City facilities and explore utilizing other City communications platforms to distribute our messages/materials. Community/Stakeholder Outreach: An expanded public education effort involves consistent stakeholder engagement. These activities also play a critical role in gaining valuable community feedback. Working closely with the City, we will help identify stakeholders in the community to engage, who will hopefully help amplify the City's messages to a wide array of audiences. We would work with the City to augment any existing communications network of community stakeholders and ensure it includes organizations such as: o Homeowners associations o Ecumenical entities o Civic associations o Large businesses o Business groups We'll reach out to these stakeholder organizations with our materials and encourage them to share our information with their respective networks, allowing our messages to organically spread throughout the community. Online/Social Media: We will complement our traditional outreach methods with a robust online presence to reach the broadest audience of Orange's residents. The City's existing channels already have established audiences among residents and business owners and distributing our messages through these trusted channels will ensure a greater acceptance of the messages and wider distribution. o Website: We will work with the City to populate its existing website with our approved messages and information. We recommend the development of a simple landing page to host our collateral materials and to serve as a clearinghouse of information and messaging. o Social Media: A vital avenue to further educate the public and share links to outreach materials and other resources, Pivotal will create a social media calendar and content for the City's existing social media channels. Whenever possible, we will ensure that social media content is visually interesting, 6 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 incorporating graphic elements and multimedia content. We also have experience in creating and targeting paid digital ads should the City being interested in broadening the reach of its social media efforts. o E-Newsletter: The City's news and alerts platform will be a key channel to tell the City's story including the budget shortfall and introduce the idea of a potential revenue-raising measure to support and maintain City services. Working with City staff, we'll develop a content calendar and craft a strategically timed narrative. Mail: Mail sent directly to voters is the most effective way to engage Orange's registered voters and deliver the program's messages. Depending on the City's budget, and should the City Council place a measure on the ballot, we recommend distributing at least two bilingual educational pieces - one after the ballot letter designation following Labor Day to build awareness around the matter, and one just before mail-in ballots are delivered. This schedule can be adjusted depending on the City's preference and any guidance provided by the City Attorney. The price of direct mail varies based on size of material and timing, but our experience and relationships with print and mail vendors allows Pivotal to secure quick and cost- effective mailing options.Just like our other public education material, we recommend these pieces include messaging in English and Spanish, and if additional languages are required, direct readers in language to the website for additional information. Media Relations: One of the quickest ways for a public communications program to spin out of control is for the media to misinterpret the City's intentions or the potential community impact of a revenue-generating measure. Should the need arise, we will support the City in engaging with key reporters and editors, mainly from the OC Register and Voice of OC. Timeline Below we have outlined a schedule of activities as detailed in our above scope of work, running from March 2024 through Election Day in November 2024(if needed). Please note that this schedule may change depending on factors on the ground including the Council's decision to move forward with public education. If selected as your partner, we would provide a detailed plan with specific dates, events, and deliverables. PHASE ONE: RESEARCH March 2024: Strategy and Planning Kickoff team meeting Analyze data and past communications 7 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 Create reactive talking points for consistent City communications Produce outreach strategy and calendar PHASE TWO: DEVELOP April 2024 July 2024: Branding, Message/Materials Development, Storytelling, Initial Outreach Develop program brand, themes, and core messages and finalize with City approval Build outreach list identifying key stakeholder groups Draft bi/multilingual collateral materials using approved messages and finalize with City approval Build social media calendar with content for the City to post on its online channels Draft content for City's electronic communications Draft content for City's website If Council decides to pursue a ballot measure -- Develop ballot measure language with City team and FM3 Support City with ballot title/language, and craft"Whereas" clauses in implementing resolution If desired, work with FM3/City to support potential tracking survey to test effectiveness of messages closer to Election Day (update core messages and materials accordingly) PHASE THREE: EDUCATE August-November 2024: Enhanced Public Education and Stakeholder Engagement Continued tactics from Phase Two Engage targets on stakeholder outreach list and give presentations to interested organizations Educate public through existing online/City channels and disseminate educational information Update materials following ballot measure letter designation in August 2024 Distribute first multilingual direct mail piece and finalize with City approval - September 2024 Distribute second multilingual direct mail piece and finalize with City approval - October 2024 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 Staying On the Same Page Through regular team meetings and conference calls, the Pivotal team will provide continuing status updates on the program's components, ensuring the timely completion of individual tactics and measurable benchmarks. We will also develop a task list to drive our activities and provide the City and Pivotal teams a firm understanding of the deliverables in the days and weeks ahead. Pivotal can attend any City Council or committee meeting to present and receive direction on our approach and progress to date at the discretion of the City. An Integrated Team We firmly believe that City personnel are the most authentic voices for this public education effort. As such, we recommend that City staff conduct any requested presentations and lead any community meetings. Residents value personal interactions with their City's leaders, and these meetings will strengthen the City's position as responsive and accessible to constituents - a necessary component to effectively communicate new policies and ideas. About Pivotal Strategies At any time, you might find yourself facing a pivotal moment. How you engage a community, the media, sway public opinion or protect your brand from a crisis can determine whether you can successfully reach your goals. When you're facing these types of pivotal moments, make sure you have the right team in place. campaigns brand moving campaign forward your community ideas mission 9 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 Pivotal Strategies is a Los Angeles-based public affairs and public relations firm. Our passionate and experienced team creates innovative solutions to solve your complex challenges. We're storytellers that establish our clients as thought leaders at the forefront of change through strategic communications, campaigns and issues management and engagement programs. We move ideas and clients forward to positively impact the quality of life for all Californians. We've helped our clients improve equitable access to health care and social services, housing and mobility options, expand sensible development and enhance essential neighborhood services. Project Team Our project team has an unmatched expertise with innovative local ballot measures, vast experience with public education and communications programs, and local knowledge - the three key ingredients the City must have for this program to be effective. Collectively, we have decades of experience on the exact type of program Orange needs to engage and educate its constituents. Vice President I John Anderson John will serve as Project Lead and your primary point-of-contact. John not only manages our municipal programs, he's also the driving force behind our creative content and digital communications for government entities. Depending on our final scope of work,John will manage all aspects of our portion of this project, including overseeing the creation of all documents/materials, managing all community engagement, and ensuring that we keep to the project timeline agreed upon by the City. Senior Associate I Alina Ambrosino Alina will serve as day-to-day support. She brings a comprehensive suite of skills to support all facets of the project, enriched by her four-year residency in the city of Orange as a Chapman University student. Alina's time living in Orange also affords her a deep understanding of the city's unique historical charm and dynamic community of small business owners. Like many Orange residents, Alina brings passion for her community to her work and understands what it means to engage with a diverse locale that cares deeply for its City. 10 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-00456158E138 alli Founding Partner I Brandon Stephenson Brandon will serve as Strategic Counsel and oversee the v .1 framework and implementation of this project. For over 20 years, he has played a game-changing role on numerous public education programs and excels at crafting engagement programs that resonate with diverse audiences. References and Similar Projects The following case studies are the projects closely related to the services Orange is seeking. Please note that several of our previous clients retained the Pivotal team for a second time, often with different municipalities, after successful public education programs with our team. This speaks to the effectiveness of our programs and the ease of integration we had with their teams. Each of the programs described below was worked on by members of the team we're proposing for the City of Orange. 1.- HE M C, 9 City of Anaheim 1 Measure J, November 2022 zReference: Greg Garcia, Deputy City Manager, Norwalk u 'd a (ggarcia@anaheim.net, 714 765 5162) 4.4",, 4 7A • Previously engaged members of the Pivotal team to work on crisis D ' 8NDED communications Overview As home to the theme parks of the Disneyland Resort and entertainment venues, the City of Anaheim's visitor economy is the largest source of funding for public safety and community services. However, the City's municipal code allowed online and other travel companies to only pay taxes on the wholesale room rate paid to hotels, rather than on the final hotel bill. Measure J would close that gap by removing any question that online and other travel companies are subject to the City/s hotel tax on the full amount paid by visitors, securing additional funding for the City's essential services. Strategy Communicate that new revenue from Measure j - the Anaheim Hotel Tax - would support neighborhood services without impacting the City's tourism industry that fuels the City's economy. 11 DocuSign Envelope ID:A5F75B14-52GE-4319-A329-0045B158E138 Action Working closely with the City's management and communications teams, we developed a strategic program to engage and educate Anaheim's diverse communities to ensure voters understood that Measure J wasn't a new tax or a tax increase, but rather levels the playing field so that everyone would pay the same taxes on hotel stays. We created foundational messages that explained what a hotel tax was, who pays for it, and the essential services additional funding could support. This included how Measure J would create up to $3 million a year in local revenue, which would help support street maintenance and neighborhood services, including police, fire, parks and youth and senior services. Using a series of collateral materials that we created, we engaged Anaheim's faith-based, service, and business organizations to educate these community leaders about Measure J so they could share our information with their followers, allowing our messages to organically spread throughout the community. Complimenting this grasstops outreach were an article in Anaheim Magazine, which is distributed to every home and business in Anaheim - as well as a mail program that directly engaged 115,000 households with Measure J information. Results Anaheim voters ultimately approved Measure J with almost 59% support. We were able to successfully educate voters that the measure was not introducing a new tax and would not harm the City's vital tourism and entertainment sectors and would instead help support vital community services. STA-44- City of Costa Mesa I Measure Q, November 2020 Ass, Reference:Alma Reyes, Deputy CityManager, Cityof Costa Mesari;ti P Y g Ai"! alma.reves@costamesaca.gov, 714-754-5090)ii Subsequently engaged Pivotal to work on City of Costa Mesa's Measure ogPORaTtO K in November 2022 regarding land use and zoning Overview Leading up to the November 2020 election, members of the Pivotal team worked with the City of Costa Mesa to execute a robust, bilingual public education program for Measure Q - the Costa Mesa Retail Cannabis Tax and Regulation Measure. Like cities across the country, Costa Mesa's short- and long-term finances had been significantly impacted by the coronavirus pandemic (COVID-19), with a projected $29.8 million deficit. Measure Q would 12 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 help address these financial challenges by empowering the City Council to adopt rules permitting retail cannabis uses while applying a gross receipts tax on sales that could generate up to $3 million annually for the Citys general fund and support essential services. Strategy Make the Costa Mesa community comfortable with the idea of permitting retail cannabis through a concerted education program designed to inform stakeholders about Measure Q's proposed regulations and how enhanced revenues would support essential services. Action Our forward-looking program detailed the impact of Measure Q on the Costa Mesa community- how new revenue would help support core City services, prevent cuts, and invest in community services to keep Costa Mesa as the ideal place to live, raise a family, and run a business for generations to come. It also focused on what cannabis retail would look like in Costa Mesa, including the rules the City would develop for cannabis storefront dispensaries and non-storefront delivery services that best serve the residents of Costa Mesa. All of our activities were geared toward reaching as many Costa Mesa residents as possible, educating residents on what Measure Q would mean for Costa Mesa, using all of the communications tactics available to us. Our outreach included fact sheets and FAQs, stakeholder outreach to over 100 identified community groups, weekly newsletter messaging and social media engagement that included educational videos from the City communications team, as well as a direct mail program with three pieces sent to every household in Costa Mesa. Results Our comprehensive public education program successfully engaged the broader Costa Mesa community through traditional outreach and digital communications. Even as other Orange County cities decided to not place retail cannabis measures on the 2020 ballot because of community pushback, and other Orange County revenue measures failed, Measure Q was ultimately passed with more than 65% of the vote. City of Los Alamitos 1 Measure Y, November 2020 Reference: Chet Simmons, City Manager csimmons@cityoflosalamitos.org, 562 431 3538) t ' 1,Prior client from City of Westminster, Measure SS a c\ 4144eule. tati_vo' se 13 DocuSign Envelope ID:A5F75814-52GE-4319-A329-0045B158E138 Overview The Pivotal team worked with the City of Los Alamitos to execute a robust, bilingual public education program for Measure Y, the Los Alamitos Quality of Life, 911 Police Response, Business/Job Protection Measure. The City's survey research determined the slimmest of majorities supported the measure and pointed to the need for extensive external communications and outreach. Beginning in June 2020 and running through the November 3 election, we developed and implemented a comprehensive public education program designed to educate Los Alamitos' diverse community. 5traegy Conduct a robust informational program to ensure the public had complete and accurate information regarding Measure Y, the impact of potential revenue on the City's budget, and what quality-of-life services could be cut if additional revenue wasn't secured. Action Due to the pandemic, there were limited options available for stakeholder outreach and community engagement. In addition to creating traditional collateral materials- a palm card with fast facts about Measure Y, FAQ and fact sheet- and conducting phone/email outreach, we worked with the City to host socially-distanced community events and pop-up information booths in the local parks to directly engage constituents. A central piece of the education program was proactively delivering our materials to residents. We created the theme, graphics, and language for four bilingual mail pieces, which were delivered to all registered households in Los Alamitos. Each mail piece had a unique theme: state of the City, quality of life services, public safety services, and voting information. This was in addition to a door-hanger program that communicated general election and Measure Y information to all households throughout the City. To add an additional layer to the program, we created a Measure Y landing page on the City's website with consistent social media messages driving people to the page's information and updates. Results Our comprehensive public education program successfully engaged the Los Alamitos community through traditional and digital communications, including a robust direct mail program. We educated residents about why the City placed Measure Y on the ballot and how additional revenues would help protect essential City services. Even with the survey showing less than half of residents would vote yes, Measure Y was ultimately passed with approximately 51% of the vote. Proposed Budget For the above-outlined scope of work, we have provided the below breakdown of fees and recommended hard costs totaling a not-to-exceed amount of$97,500. This amount can be decreased if the City decides to move forward with a more limited direct mail program. 14 DocuSign Envelope ID:A5F75B14-52CE-4319-A329-0045B158E138 Please note our hard costs are reflective of the cost of services or goods and Pivotal doesn't add a mark-up to any municipal program. Program/Service Fee Pivotal Fee Total (based on projected phased 65,000 activities and timeline over 9 months; includes professional translation of core materials to Spanish) Direct mail (two, 8.5 x 11" or similar-sized mailings to $32,500 all households, not just registered voters) covers two pieces - design, printing, postage, mailing). Additional Cost Option: 1,000 per language (not included Professional translation for languages other than in above not-to-exceed amount) Spanish, if needed We're Ready to Begin! We're excited at the prospect of working with City staff to ensure that the City of Orange receives the best possible program - one that will consistently educate the City's constituents and ensure the community is as informed as possible on the challenges the City currently faces. Pivotal has a thorough understanding of how to use a multi-faceted approach to effectively engage with Orange's multilingual community and complement the available City resources to ensure a comprehensive and successful program. We seek to meet communities where they are by proactively using innovative tools and methods to engage ethnic minorities, low-income, and other historically underrepresented populations. We want everyone not only to know, but to be involved in this important effort. We're looking forward to your thoughts on this and, more importantly, to getting started. Please contact John or Brandon at(310) 736-2337 or by email at janderson@pivotalstrategies.com or bstephenson@pivotalstrategies.com with any questions or if you need additional information. We're looking forward to hearing from you. 15