CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Approval of Memorandum of Understanding Between the Cities of Commerce, Industry, Irwindale, Santa Fe Springs, and Vernon Meeting Date: September 23, 2025
REQUEST:
The City Council is requested to:
Approve the Memorandum of Understanding between the Cities of Commerce, Industry, Irwindale, Santa Fe Springs, and Vernon to establish a multijurisdictional coalition for regional advocacy on industrial and commercial priorities; and Authorize the Mayor to execute the agreement.
Authorize the City Manager to take such additional action that may be desirable.
BACKGROUND AND ANALYSIS:
The cities of Commerce, Industry, Irwindale, Santa Fe Springs, and Vernon are each located in Los Angeles County and collectively represent a significant industrial and commercial corridor. Together, these jurisdictions host approximately 500,000 employees working in industries such as manufacturing, wholesale and distribution, transportation and logistics, and e-commerce. These activities contribute substantially to both local and state tax revenues.
The financial impact to the state, county and region by the City of Commerce and the other similarly situation member cities are not reflected in the commitments by those same agencies which requires we help facilitate a more equitable system that provides fairer and more reflective treatment in administrative and fiscal policies affecting our cities.
The MOU establishes a framework for regional cooperation without creating a separate legal entity. Key provisions include:
• Development of a joint legislative agenda on an annual basis. • Engagement with state and federal legislators and advocacy groups to promote unified regional priorities. • Coordination in monitoring state and federal legislation and grants affecting industrial and commercial zones. • Formation of a state and federal legislative affairs working group consisting of staff, consultants, and advocates from each City. • Joint efforts to prioritize infrastructure and capital projects for state and federal funding opportunities. • Preparation of reports highlighting the economic impact and investment needs of the region. • Alignment with regional partners such as SCAG, Los Angeles County Economic Development Corporation, and local Chambers of Commerce. • Importantly, each City retains autonomy and fiscal control. The MOU specifies that participation does not create any binding financial obligations beyond each City’s voluntary commitments.
DISCUSSION:
This MOU represents a strategic opportunity for the Cities to strengthen their collective advocacy efforts at the State and Federal levels. By presenting a unified voice, the Cities will be better positioned to secure funding for freight infrastructure modernization, workforce development facilities, and environmental mitigation projects within industrial zones. The coalition also provides a platform to safeguard local revenue sources, such as utility user taxes and business license fees, against potential state mandates that could erode municipal fiscal stability.
SUMMARY/NEXT STEPS:
Approval of this MOU will formalize the City’s participation in a collaborative regional effort to advocate for policies and funding opportunities that benefit industrial and commercial sectors critical to the City’s economy.
If approved, staff will:
1) Participate in the formation of the legislative affairs working group. 2) Contribute to the development of the joint legislative agenda by November 15 of each year. 3) Collaborate with partner cities on outreach, monitoring, and advocacy activities. 4) Provide periodic updates to City Council on coalition activities, legislative outcomes, and funding opportunities.
ALTERNATIVES:
Approve staff recommendation; and/or
Provide further direction to staff
Fiscal impact:
There is no direct fiscal impact associated with entering into this Memorandum of Understanding (MOU). Each City will be responsible for its own costs related to participation, including staff time, travel, and consultant support, if any. No dues or mandatory financial contributions are required under the agreement. Each City retains autonomy and fiscal control. The MOU specifies that participation does not create any binding financial obligations beyond each City’s voluntary commitments.
Prepared by: Gisselle S. Delgado, Senior Management Analyst Respectfully submitted: Ernie Hernandez, City Manager
Approved as to form: Noel Tapia, City Attorney
ATTACHMENTS:
Attachment A: Memorandum of Understanding Between the Cities of Commerce, Industry, Irwindale, Santa Fe Springs, and Vernon