HomeMy WebLinkAbout2004-08-24 - AGENDA REPORTS - AUTOMOBILE DEALERS ASSOC PGM (3)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: _—
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by:
August 24, 2004
Ken Shiplin
SANTA CLARITA VALLEY AUTOMOBILE DEALERS
ASSOCIATION SHOP LOCAL PROGRAM
City Manager
RECOMMENDED ACTION
City Council approve $60,000 for a public/private partnership with the Santa Clarita Valley
Automobile Dealers Association for continuing the Shop Local program. Authorize the City
Manager to execute an agreement with the Santa Clarita Valley Auto Dealers Association,
subject to City Attorney approval. Funds are budgeted in account number 1811-8110.
BACKGROUND
On April 10, 2001, the City Council approved contributing $30,000 to participate in a
public/private Shop Local partnership with the Santa Clarita Valley Automobile Dealers
Association. The annual contribution was increased to $50,000 in fiscal year 02/03 and fiscal
year 03/04. Due to the success of this program, in fiscal year 04/05 the contribution was
increased to $60,000 to coincide with the Shop Santa Clarita campaign.
This Shop Local program targets local residents and is based on an ad campaign that shows the
additional benefits residents receive as a result of making a local purchase. Additionally, sales
tax revenues generated locally are reinvested back into our community in the form of increased
public improvements and services.
Auto sales are a significant economic force for the City. In calendar year 2003, new motor
vehicle sales represented 23.6% of the City's annual sales tax revenues, for a total of $5,432,389.
ALTERNATIVE ACTIONS
Other action as determined by the Council.
FISCAL IMPACT
As proposed, this shop local program will have a positive fiscal impact to the City by increasing
overall auto sales and subsequent sales tax revenues to the City.