PREPARED BY: REINA SCHWARTZ DATE OF MEETING: 03/04/19
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH THE SAN PABLO ECONOMIC DEVELOPMENT CORPORATION FOR FY 2018/19 IN THE AMOUNT OF $562,500 AND APPROPRIATING $562,500 FROM GENERAL FUND DESIGNATED RESERVES/SPEDC OPERATING SUBSIDY TO FUND THE CONTRACT
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2018-21 City Council Priority Workplan Compliance Statement
Job Creation and Business Opportunities (City Manager, Economic Development, Development Services), and Fiscal Sustainability/General Fund Reserves Protection (City Council, City Manager) are policy items under the adopted FY 2018-21 City Council Adopted Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
In February 2011, the San Pablo Economic Development Corporation 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 provided financial support to the SPEDC in the past to help ensure its success, and hence the stability of the local economy. This report recommends entering into a professional services agreement with the SPEDC for services outlined in the attached scope of work for FY 2018/19 in the amount of $562,500. With an effective date of July 1, 2018, the contract terminates on June 30, 2019.
On February 4, 2019, City Council approved the FY 2018/19 General Fund Designated Reserves (GFDR) with an earmark of $562,500 for an SPEDC FY 2018/19 Operating Subsidy (Resolution 2019-017). Currently, the funding still sits in the General Fund Designated Reserves and needs to be appropriated into a spendable account, in this case the professional services account of the FY 2018/19 City Council budget (100-1110-43600).
The City of San Pablo is legally obligated for seven years from the development of the projects to ensure the continuation of the SPEDC due to financial requirements of the New Markets Tax Credit financings associated with development of the San Pablo Community Center and Rumrill Sports Park projects.
For full disclosure, Mayor Rich Kinney is an uncompensated member of the Board of Directors for the SPEDC. Given the SPEDC’s role in supporting job creating and business opportunities policy priorities of the City Council, one can argue that the Mayor 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, the Mayor may choose to recuse himself from voting on this item, which has been the practice of former Council Members who also served on the SPEDC.
In addition, by way of background, the City Manager used to serve also as an uncompensated Executive Director to the SPEDC until July 1, 2018 when Leslay Choy was elevated from General Manager to Executive Director. Again, in an abundance of caution, the City Manager is disclosing this interest and has not participated in bringing this item to the City Council.
FISCAL IMPACT
The proposed resolution would appropriate funding in the amount of $562,500 to the FY 2018/19 City Council budget (100-1110-43600) to support FY 2018/19 SPEDC activities as defined in the Scope of Work. Funding in this amount is available in fund balance of the General Fund Designated Reserve/SPEDC Operating Subsidy approved by City Council on February 4, 2019.
Attachments:
Professional Services Agreement with San Pablo Economic Development Corporation
Scope of Work - FY2018/19