HomeMy WebLinkAbout2020-01-14 - AGENDA REPORTS - SCV AUTOMOBILE DEALERS ASSOC "SHOP LOCAL" PGM (2)Agenda Item: 9
DATE: January 14, 2020
SUBJECT: SANTA CLARITA VALLEY AUTOMOBILE DEALERS
ASSOCIATION "SHOP LOCAL" PROGRAM
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
City Council:
Approve an expenditure of $70,000 for a public/private partnership with the Santa Clarita
Automobile Dealers Association to continue the "Shop Local" program for Fiscal Year
2019-20, per the Letter of Agreement.
2. Authorize the City Manager or designee to execute all contract documents and up to four
annual renewal options, subject to City Attorney approval, not to exceed $70,000 in each
fiscal year, contingent upon the appropriation of funds by the City Council in the annual
budget for such fiscal year.
BACKGROUND
Automobile sales are a significant economic force for the City of Santa Clarita (City). In
calendar year 2018, new motor vehicle sales represented 21.7% of the City's total sales tax
revenue. That year, $7,036,337 in sales tax revenue was generated from new motor vehicle sales.
At their meeting on October 28, 2014, the City Council approved a $60,000 contribution to a
public/private partnership with the Santa Clarita Automobile Dealers Association to produce the
Shop Local campaign. Due to the success of the initial partnership, subsequent contributions
have continued annually at the $60,000 amount.
Staff recommends continuing the Shop Local program and increasing the City contribution to
$70,000 annually. The Shop Local program is an advertising campaign that shows local residents
the economic benefits our community receives as a result of local purchases. Additionally, sales
tax revenues generated locally are reinvested back into the community in the form of increased
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public improvements and services.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
As proposed, the Shop Local program will have a positive fiscal impact to the City by increasing
overall auto sales and subsequent tax revenues to the City. Funds for this expenditure are
budgeted in the account number 11301-5161.002 for Fiscal Year 2019-20.
ATTACHMENTS
Letter of Agreement
Page 2
January 14, 2020
Santa Clarita Valley Automobile Dealers Association
23955 Creekside Road
Santa Clarita, CA 91355
Letter of Agreement
The City of Santa Clarita ("City") would like to enter into a Letter of Agreement ("Agreement") with the Santa Clarita
Valley Automobile Dealers Association ("Association") for the annual Shop Local advertising partnership.
1. Scope of Work
The Association will produce an annual Shop Local advertising campaign.
2. Compensation
The City agrees to compensate Association seventy thousand dollars ($70,000.00) towards the advertisement
costs.
3. Time Schedule
Services to be provided in FY 2019-20.
4. Report
Association to itemize how the money was spent in furtherance of the Shop Local campaign. City shall have
the right to request such itemized report at its discretion.
5. Renewal
May be extended for up to four annual renewals at City Council authorization, subject to annual budget
allocations by the City Council.
Witness the execution of this Agreement on the day and year first written above.
For Association:
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Print Name & Title
Date
Address
City, State, Zip Code
Phone Number
For City:
for City Manager
Date
Approved as to form:
Burke, Williams & Sorensen
Date