Item #02
Date: March 19, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Contract Amendment No. 1 with Yuba-Sutter Economic Development Corporation 1 Recommendation:
Pass a Motion authorizing the City Manager, or designee, to execute Amendment No. 1 to add an additional $110,000 to the existing Professional Services Agreement with the Yuba-Sutter Economic Development Corporation (YSEDC) in an amount not to exceed $220,000 to continue the business grant program and administration costs.
Rationale for Recommendation:
The City entered into an agreement with YSEDC on November 15, 2022, to provide administration for the City’s Façade Improvement and/or Marketing Grants to businesses in the Central Business District.
The current agreement has a maximum compensation, not to exceed $110,000, with an expiration date of December 31, 2023. The Fiscal Year 2023-24 budget included an additional $110,000 for this grant program so an amendment is required to increase the maximum compensation and extend the expiration period.
Discussion & Analysis:
The City of Marysville originally utilized a portion of its American Rescue Plan Act (ARPA) funding to offer facade improvement and/or Marketing grants up to $10,000 to businesses in downtown Marysville, also known as the Central Business District (CBD), specifically the area located “South of 9th Street, East of E Street , West of A Street and North of the South Levee”. The program goal was to enhance the aesthetic appeal of the corridor and improve business performance through visible external property improvements and/or through customized marketing campaigns.
Some examples of eligible physical improvements included building façade improvements, paint, parking lot improvements, attractive fencing, lighting, and updated signage. An example of an eligible marketing program included utilizing a consultant to create an approved electronic marketing plan. Examples of non-eligible improvements included staff wages, lease payments, internal remodeling, other operating costs or paying for a direct mail campaign.
With the success and demand of this grant, the Council authorized an additional $100,000 in grant funding in the current fiscal year utilizing the same guidelines and eligibility and 10%, or $10,000, for Item #02
administration by YCEDC. With the appropriate budget authority, staff is recommending an amendment to increase the not to exceed amount and extend the current expired contract for administrative services.
Alignment with City Council Goals:
The contract amendment is consistent with the City Goal #2: Expand Economic Development Opportunities and its Objectives
Fiscal Analysis:
The not to exceed additional amount of $110,000 is authorized in the Fiscal Year 2023-24 Economic Sustainability budget so there will be no additional fiscal impact to the General Fund.
Attachment:
1) First Amendment to the Professional Services Agreement