HomeMy WebLinkAbout2007-10-09 - AGENDA REPORTS - AUTOMOBILE DEALERS SHOP LOCAL (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
October 9, 2007
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SANTA CLARITA VALLEY AUTOMOBILE DEALERS
ASSOCIATION SHOP LOCAL PROGRAM
City Manager's Office
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 for fiscal year
2007/2008, renewable for FY 08/09 and FY 09/10. Authorize the City Manager to execute a
renewable multi-year agreement with the Santa Clarita Automobile Dealers Association, subject
to City Attorney approval. Funds are budgeted in account number 11301-5161.002.
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 2002/2003 and
fiscal year 2003/2004. Due to the success of this program, the fiscal year 2004/2005 contribution
was increased to $60,000 to coincide with the Shop Santa Clarita campaign. The 2006/2007
contribution continued at the $60,000 amount.
The Shop Local Program targets local residents, and is based on an ad campaign that shows the
benefits residents receive as a result of making a local purchase. Additionally, sales tax revenues
generated locally are reinvested back into the community in the form of increased public
improvements and services.
Auto sales are a significant economic force for the City. In calendar year 2006, new motor
vehicle sales represented 21.1 % of the City's annual sales tax revenue, for a total of $6,032,944.
APPROVED
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. Funds for this expenditure are
budgeted in account number 11301-5161.002 for Fiscal Year 07-08.