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Agenda Item # 24

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute a contract with Burson-Marsteller for community outreach, public education, and marketing services, for an amount not to exceed $7,700,000.  The contract shall be for an initial three-year period with two optional one-year extensions.

BACKGROUND:

On September 2, 2004, the VTA Board of Directors deferred approval of a contract with Burson-Marsteller (Attachment A, Board Memorandum) due to questions raised about the contract.

DISCUSSION:

Following the August 19, 2004 Administration and Finance Committee discussion and the September 2, 2004 article in the San Jose Mercury News, various questions, concerns, and misconceptions have been raised about the contract.  The following discussion addresses those concerns.

VTA’s proposed program is not an image “makeover” or a political campaign.  It is an effort to coordinate our existing and future public involvement and education activities into one consolidated approach, as recommended by the Federal Transit Administration (FTA).  The goal is to realize cost and operational efficiencies and to expand our capabilities and methods to communicate effectively with communities that use our services or live and work within our project corridors.  More importantly, VTA offers services that require marketing and the cultivation of a positive image to support and encourage the use of public transportation.

The San Jose Mercury News article is misleading, insinuating that VTA would divert funds allocated to operations to support the proposed contract.

“But critics say [the program] is wasting revenue from sales taxes and fares on the effort…”

Most of the costs associated with this contract would come from capital projects budgets for the purpose of meeting FTA requirements for public participation and our desire to educate the community about the projects.   VTA would use those funds for public outreach programs regardless of whether we implement a coordinated public involvement program.

Approximately $1 million of this contract would be spent over the five-year period to achieve public feedback and appropriately market new transit services such as Bus Rapid Transit and Community-based buses.

The article further states that VTA is:

“about to spend $7.7 million on a public relations campaign to boost its image… [and that] the timing makes [the program] a de facto political campaign.”

This program is not an effort to “use public money to advertise the BART project.”  We would typically perform public outreach and involvement activities for individual capital projects.  For example, during the environmental review processes for both the BART and Downtown East Valley projects, we produced educational materials, coordinated and publicized federally required public hearings, and documented all public comments.  This contract is an attempt to better integrate all future public outreach and involvement efforts as VTA continues to design and deliver publicly supported capital projects, like BART, Downtown East Valley, and Bus Rapid Transit.

The article also incorrectly states that:

“VTA does not expect to begin BART construction during the campaign, instead spending the money to notify the public about engineering and design issues …[and] that collection of activities alone won't add up to the $4.8 million that's been earmarked for BART.”

During the next five years of the BART Extension project, VTA anticipates completing preliminary engineering and beginning final design and limited civil construction.[1]   We estimate that the first two years of public involvement activities will cost approximately 0.3% percent of the BART capital budget for each year. As these additional activities begin, the public outreach budget would increase slightly for three years to support increased public education, community outreach, and marketing efforts.  The cost of these increased efforts, however, would still only amount to less than 0.3% of each year’s estimated capital budget for BART.  In total, the $4.8 million identified to support the BART project is 0.2% of the total capital project budget over the five-year period.  If the BART project does not proceed to the final design or civil construction phases, VTA would not use any of the designated capital funds allocated to BART for any other public outreach efforts.

The Mercury News also erroneously characterizes the recommended team to assist in our proposed public involvement program:

“The winning bid was submitted by Burson-Marsteller – the international public affairs firm that already serves as the agency's $198,000-a-year Washington lobbyist – and a host of politically connected subcontractors…[including San Jose Mayor] Gonzales’ polling firm.”

Burson-Marsteller, a member of the Young & Rubicam communications group, is a public affairs/strategic communications firm with no involvement in any VTA government relations activities.   BKSH, a wholly owned subsidiary of Burson-Marsteller, is a separately incorporated firm with its own dedicated staff.   BKSH has represented VTA before the administrative and legislative branches of the federal government.   Burson-Marsteller will serve VTA and our community in a manner strictly independent and autonomous from any prior or present relationship between VTA and BKSH.

The Mercury News article further implies inappropriate political affiliations among Burson-Marsteller’s selected subcontractors. In fact, Fairbank, Maslin, Maullin & Associates, the selected opinion and market research firm, has recently worked with over 80 local and state government agencies and independent districts beyond the City of San Jose, including BART, Los Angeles County Transportation Commission, the Los Angeles Convention and Visitors Bureau, Sacramento Regional Transit District, and the Southern California Association of Governments.   We believe VTA will benefit from the experience this firm provides.

Finally, the article criticizes the desire to deliver the transportation system that Santa Clara County supported in past sales tax measures.   Specifically, the article criticizes Burson-Marsteller for making the following statement about VTA:

“Over the long term, we can and must develop a winning, community-based coalition by making a public transportation system that includes bus, light rail and BART a shining symbol of civic pride.”

We seem to be criticized for wanting to serve our community with a diverse array of transportation options.  We believe our community supports the vision of an integrated transportation system, including an expanded bus network, specialized services such as community-based bus and paratransit services, light rail and commuter rail, and BART.  One of the benefits of a coordinated public involvement effort would be to educate the community about our current services, new transportation programs, and how those programs will be integrated to offer improved travel options.  This concept is consistent with VTA’s mission, vision, and strategic goals.

A Coordinated Program Recommended by the Federal Transit Administration

As VTA continues to develop and implement the public transportation system demanded by Santa Clara County residents and workers, it becomes imperative that a coordinated public involvement program accompanies the design and construction activities for current and future capital projects.  In its publication, Public Involvement Techniques for Transportation Decision-making, the Federal Transit Administration (FTA) advises “what distinguishes an amorphous, overly general public involvement effort from one that is purposeful, grounded, specific, and productive is good organization and well-planned outreach.”[2]   A carefully orchestrated public involvement effort enables a public organization to give local groups, community stakeholders, and private citizens regular opportunities for representation in planning and project development processes.  In addition, public organizations benefit from receiving regular public input that can be incorporated into project plans and policy decisions.

Specifically for VTA, a coordinated program would demonstrate our desire for full public participation in many investment-intensive projects planned via the 2000 Measure A and Valley Transportation Plan 2030 programs.  Public outreach strategies, such as those recommended by the FTA have proven successful for VTA and other transportation organizations, and will prove beneficial for VTA in future years to support our transportation growth.  These activities and tools include:

• Mailing lists and databases for both print and electronic publications for current and future capital projects and services.
• Media strategies for print, television, and radio to allow VTA to actively frame a uniform message to disseminate project, program, and service information.
• Public information materials, such as advertisements, billboards, brochures, display boards, electronic media, news articles, newsletters, notices, progress bulletins, public service announcements (paper, video, radio), summaries of reports, and videotapes.
• Key person interviews to solicit public opinion, identify concerns and desired actions of a community or group, and develop relationships with community advocates in and around project areas and with VTA’s service area.
• Project briefings to provide opportunities for focused communications with community groups, stakeholders, and policymakers.  VTA has realized success through utilizing community working groups and external advisory committees, but more coordinated efforts involving all capital projects are possible.
• Videotapes, and other pre-recorded oral and visual messages used to introduce VTA, our bundle of services, and our continued efforts in the community.   Video can also be used to document a planning process.
• Telephone communications for basic two-way communication and implementation of surveying and polling.
• Speakers’ bureaus, or VTA staff or outside advocates to speak to community groups on behalf of a project, program, or planning activity.

VTA, as well as the vast majority of transportation providers, does not possess the resources to develop and implement an effective, coordinated outreach program sufficient to support the scope and magnitude of our current and future capital projects.  Outside contractors with a depth of experience in public outreach and community involvement would bring the resources necessary to develop effective public outreach tools and strategies.

To facilitate public involvement through a coordinated outreach, education, and marketing effort, a diverse, experienced team is essential.  Following the review of five firms in June 2004, VTA selected Burson-Marsteller, a leading global public relations firm, to provide strategic direction for our program.  Burson-Marsteller’s 50 years of experience in public affairs, media relations, corporate relations, public education, and social marketing, transportation, and community relations/coalition-building makes the firm particularly strong to lead VTA’s program.  With its strong multiple-practice focus and skill in local education and awareness programs, Burson-Marsteller ranked highest among the firms interviewed for this contract.

Burson-Marsteller selected partners to complete their team and provide a well-rounded offering of services to assist VTA in developing and implementing our program:

• Catapult Strategies, Inc. offers multimedia strategic planning and communications consulting, combining experience in local government, and media relations.

• IW Group, Inc. is a fully integrated, full-service marketing and communications firm that specializes in outreach to the growing Asian and Pacific Islander communities in areas like Santa Clara County.  IW Group has a proven track record and extensive experience in designing and executing comprehensive, integrated public education programs for Asian and Pacific Islander communities.

• Fairbank, Maslin, Maullin & Associates has specialized in public policy-oriented research for over 20 years and offers a wide range of opinion research, communications strategy, and consulting services to assist its clients in decision-making processes.  Annually, the firm conducts as many as 300 surveys and 150 focus groups focusing on major economic and social issues, such as transportation planning and finance, environmental quality, and growth and property development.

• Public Affairs Management provides consulting services in community relations, communications, facilitation, mediation, and public involvement specializing in government agency coordination, public involvement, and land-use planning.  For VTA, the firm has coordinated public outreach efforts for the BART Extension project, the Downtown East Valley Project and the State Route 87 HOV Lanes Project.

• Their PR is an award-winning public relations, community outreach, and media relations firm that has coordinated public outreach efforts for BART and Caltrans.  

ALTERNATIVES:

The Board could modify the current recommendation, choose a different firm, or decide not to approve the VTA Community Outreach/Public Education/Marketing Program contract at this time.  Not approving the contract, however, will prohibit VTA from implementing a thorough public education and marketing program.

As part of the usual design and construction processes, VTA would need to perform public outreach activities, such as those outlined.  The firm recommended would allow VTA to coordinate a public involvement process that our organization would otherwise not be capable of implementing with available staffing and resources.

FISCAL IMPACT:

Funding is allocated for the VTA Community Outreach/Public Education/Marketing Program in the adopted capital projects and VTA operating budgets, where applicable.

DBE PARTICPATION:

Based on identifiable subcontracting opportunities, a Disadvantaged Business Enterprise (DBE) goal of 10% has been established for this contract.  This contractor has committed to 17% DBE participation.

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