PREPARED BY: ELIZABETH LOPEZ DATE OF MEETING: 07/06/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSULTING SERVICES AGREEMENT WITH THE SAN PABLO ECONOMIC DEVELOPMENT CORPORATION FOR FISCAL YEARS 2026-27 AND 2027-28 IN AN AMOUNT NOT TO EXCEED $1,125,000 OVER THE TWO-YEAR TERM OF THE AGREEMENT.
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2025-2027 Council Priority Workplan Compliance Statements:
Support all San Pablo EDC Programs and Services to San Pablo Community is a Council priority contained in the FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
BACKGROUND
In February 2011, the San Pablo Economic Development Corporation (SPEDC) Board of Directors held its first meeting, elected officers, approved Articles of Incorporation, and adopted Bylaws. Since that time, the San Pablo City Council and the SPEDC have enjoyed a relationship of mutual support and trust based on the common goals and objectives of enhancing job creation and training and facilitating business growth and opportunity.
In recognition of these mutual goals and objectives in the economic development arena, the City Council has authorized financial support to the SPEDC in the past to help ensure its success, and the stability of the local economy. The City’s current three-year agreement with SPEDC expires at the end of the current fiscal year.
In 2025, the Economic Development & Housing Division (EDH) was established within the City Manager’s Office. The mission of the EDH Division is to support the City’s economic development initiatives, programs, and services, including the implementation of the Economic Development Strategy and the Economic Development Element of the General Plan. Given the creation of the EDH Division, services related to Economic Development and Housing will be structured so that EDH serves as the first point of contact for prospective businesses and housing developers, providing a clear distinction between the roles of the EDC and the City’s internal economic development functions. This approach is fully aligned with the implementation of the City’s Economic Development Strategy and the intent of the new Marketing and Branding program, which established a dedicated brand identity and logo for the EDH Division to reflect its lead role in prospective business and developer engagement. The EDH Staff recommends entering into a new two-year agreement with the SPEDC for Fiscal Years 2026-27 and 2027-28 for services outlined in the attached scope of work in an amount not to exceed $1,125,000 ($562,500 per year for two years). The proposed agreement terminates on June 30, 2028.
Councilmember Arturo Cruz is an uncompensated member of the Board of Directors for the SPEDC. Given the SPEDC’s role in supporting job creation and business opportunities policy priorities of the City Council, it can be argued that the Councilmember is not legally required to disqualify himself from this action and vote as long as his interest in the SPEDC is publicly disclosed (see Cal. Gov’t Code section 1091.5(a)(8)). This staff report functions as that disclosure. In an abundance of caution, however, Councilmember Cruz may choose to recuse himself from voting on this item, which has been the practice of past and former Councilmembers who also served on the SPEDC.
FISCAL IMPACT
The proposed agreement would result in a cost to the City of up to $562,500 per year. The agreement is for a two-year term (FY 2026-27 and FY 2027-28), with a total cost not to exceed $1,125,000. Funding for the agreement in FY 2026-27 and FY 2027-28 will be appropriated in the Adopted FY 2026-2028 Biennial Budget under the Multi-Department Professional Services line item 100-1430-43600. Please note: the City may not have budgetary resources during the second term and may need to adjust due to the Measure S tax rate shift.
ATTACHMENTS:
Att A. Resolution
Att B. SPEDC Consulting Agreement