HomeMy WebLinkAbout2024-11-12 - AGENDA REPORTS - LETTER AGMT SCV AUTOMOBILE DEALERS SHOP LOCAL PGMAgenda Item• 15
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
R
CITY MANAGER APPROVAL: n
DATE: November 12, 2024
SUBJECT: LETTER OF AGREEMENT WITH SANTA CLARITA VALLEY
AUTOMOBILE DEALERS ASSOCIATION FOR THE SHOP LOCAL
PROGRAM
DEPARTMENT: Economic Development
PRESENTER: Monica Fawcett
RECOMMENDED ACTION
City Council:
1. Approve $70,000 for a public/private partnership with the Santa Clarita Automobile Dealers
Association for continuing the Shop Local program for Fiscal Year 2024-25, per the attached
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 remain a key driver of economic growth for the City of Santa Clarita (City). In
2023, new motor vehicle sales within the Valencia Auto Center accounted for 24.2 percent of the
City's annual sales tax revenue, totaling $9,715,832.
At their meeting on January 14, 2020, the City Council approved a $70,000 contribution to the
public/private partnership with the Santa Clarita Automobile Dealers Association in Fiscal Year
(FY) 2019-20 to coincide with the Shop Local advertising campaign. Due to the success of the
partnership, subsequent contributions have continued annually in the amount of $70,000.
The Shop Local program targets residents and is based on an advertising campaign that
demonstrates the benefits residents receive as a result of making local purchases. Additionally,
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sales tax revenues generated locally are reinvested back into the community in the form of
increased public improvements and services.
Staff recommends the City Council to consider a public/private partnership with the Santa
Clarita Automobile Dealer Association to continue the Shop Local program for FY 2024-25.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City's
adopted FY 2024-25 budget, Expenditure Account 1003500-516102 (Business
Development/Retention - Professional Services). Funding for future fiscal years are contingent
upon the appropriations of funds by the City Council in the annual budget for such fiscal year.
As proposed, the Shop Local program will have a positive fiscal impact on the City by increasing
overall auto sales and subsequent tax revenues for the City.
ATTACHMENTS
Letter of Agreement
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November 12, 2024
Santa Clarita Valley Automobile Dealers Association
23955 Creekside Road
Santa Clarita, CA 91355
LETTER OF AGREEMENT
Pursuant to the direction of the Santa Clarita City Council on November 12, 2024, 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 the Association seventy thousand dollars ($70,000.00) towards the
advertisement costs.
3. Time Schedule
Services to be provided in Fiscal Year 2024-25.
4. Report
The Association is to itemize how the money was spent in furtherance of the Shop Local campaign.
The City shall have the right to request such itemized report at its discretion.
5. Renewal
The Agreement may be extended for up to four (4) 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:
Print Name & Title
Date
Address
City, State, Zip Code
Phone Number
For City:
By
for City Manager
Date
Approved as to form:
Burke, Williams & Sorensen
By
Date
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