Agenda Item: 15
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
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,
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