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HomeMy WebLinkAbout _ 4.2(b)--Funding Agreement-Superior California Economic Development District GI �" Y � F � � � ° � � � " � � CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 20,2023 FROM: Steve Bade, Assistant City ITEM NO. 4.2(b} Manager ***APPROVED BY*** � . ��� ��n.w� .� s.N,.�� �, ����� t�ue a e; ss � �r 5f?412023 ry ip}�in,Ci ana � 6,�13/2423 sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(b)--Funding Agreement with the Superior California Economic Development District for Fiscal Years 2021-22, 2022-23 and 2023-24. Recommendation Approve the Funding Agreement between the Superior California Economic Development District (SCEDD) and the City of Redding for Fiscal Years (FY) 2021-22, 2022-23, and 2023- 24, for economic development planning and business development services; and authorize payment to SCEDD in the amount of $17,974 for FY 2021-22, $23,465 for FY 2022-23, and $26,977 for FY 2023-24 activities. Fiscal Impact Typically, the SCEDD assessments are paid annually — with Economic Development transitioning from Development Services to the City Manager's Office, the invoices did not follow, with the approval of these funding reguests, the City will be current. Sufficient funds have been included in the City of Redding's (City) 2021-23 Biennial Budget General Fund, to pay the cost of the FY 2021-22 and FY 2022-23 Funding Agreements (FY ($17,974 and $23,465, respectively, for a total amount of $41,439). FY 2023-24 Funding Agreement($26,977) will be subject to the City Council's (Council) adoption of the City's 2023- 2025 Biennial Budget. Alternative Action The Council could decline to participate in SCEDD, or direct staff to renegotiate the FY 2023- 2024 Funding Agreement to provide for some other funding mix ancUor work program associated with the Funding Agreement. Report to Redding City Council June 14,2023 Re: 4.2(b)--Funding Agreement-Superior California Economic Development District Page 2 Background/Analysis On March 12, 1979, the City entered into a Joint Powers Agreement (JPA) establishing SCEDD. SCEDD acts as a liaison to the U.S. Econoinic Development Administration (EDA) for a four- county district that includes Shasta, Siskiyou, Trinity, and Modoc Counties. In this role, SCEDD is a facilitator for EDA grant programs and other economic development assistance. SCEDD is primarily supported by an annual investment from the EDA with a required matching investment from SCEDD based on the region's level of economic distress as periodically determined by the EDA. Each member county and incorporated city (Member) assessments are determined and invoiced annually using a formula derived through averaging the most current population and assessed valuation figures for each respective member. Assessment funds provide the cash match for the EDA Annual Planning Grant. SCEDD mission is to create jobs through local and regional economic planning and direct business financing through the following activities: ■ Comprehensive Economic Development Strategy (CEDS) - SCEDD is responsible for the CEDS, a locally-based, regionally-driven economic development planning process and document. It identifies locally-based strategies that guide regional economic development, encourages partnerships and collaboration, and improves economic outcomes and overall quality of life. An effective CEDS enables the region to engage with the EDA and other federal partners to receive grants. ■ Business Development Loan Program - Since 1980, SCEDD has been building up a portfolio of revolving business development loan funds for businesses within the district. Currently, our portfolio holds nearly$8 million in available funds for lending purposes. ■ Certified Development Company - SCEDD is certified by the U.S. Small Business Administration to market, package, fund, and service SBA 504 loans statewide. Whi1e this activity does contribute to the SCEDD mission within the District, the program services are offered state-wide and generate unrestricted retained earnings for SCEDD, which are then dedicated to the SCEDD mission within the district. SCEDD provides valuable economic assistance to the City, leveraging its contribution for federal grant money. Envir�onmental Review This is not a project defined under the California Environmental Quality Act and no further action is required. Council Priority/City Manage� Goals � Economic Deveiopment — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments Funding Agreement with Attachment A and B FUNDING AGF�EEMENT THIS AGREEMENT is made and entered into by and between the CITY OF REDDING, a municipal corporation and general law city ("City"), and the SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT, a joint powers agency created under California law by that Joint Exercise of Powers Agreement between Modoc, Shasta, Siskiyou, and Trinity Counties and Participating Cities for the Purpose of Forming an Economic Development District dated March 12, 19'79, as amended("SCEDD"): RECITALS A. The City Council of the City of Redding (City) is empowered by the State of California to appropriate and expend money from City funds for the regional planning for economic and public works project development within the City. B. The City has no organized means of its own for conducting the systematic expenditure of funds for regional planning for economic and public works project development within the City. C. SCEDD provides regional economic-development planning and business- development services, and acts as the Economic Development Administration's liaison to both the public and private sectors. SCEDD's primary mission is facilitating business and job creation in Shasta, Trinity, Modoc, and Siskiyou counties. Shasta County's share of SCEDD's operating budget and its matching grant requirement is shared between Shasta County and the cities of Redding, Anderson and Shasta Lake in accordance with a specified formula. D. SCEDD, with its organizational and administrative structure is well able to provide regional planning for economic and public works project development within the City, through which the City and its citizens benefit. The City and its citizens will derive a public benefit from the services to be provided by SCEDD. AGREEMENT 1. TERM�. The term of this agreement shall be for a period of three-years commencing on July 1, 2021, and terminating on June 30,2024. 2. SERVICES TO BE PROVIDED BY SCEDD. SCEDD shall provide the services outlined in Attachment A - Scope of Work attached hereto and incorporated by reference herein and generally described as the district economic planning program. 3. FUNDING BY THE CITY. During the term hereof, to partially offset SCEDD's costs in providing the services set forth in Attachment A, the City shall pay SCEDD the sum of Seventeen Thousand Nine Hundred and Seventy-Four pollars ($17,9'74) for Fiscal Year (FY) 2021-22, Twenty-Three Thousand Four Hundred and Sixty-Five Dollars ($23,465) for FY 2022-23,and Twenty-Six Thousand Nine Hundred and Seventy-Seven:Dollars($26,977) for FY 2023-24. These assessment values are determined annually using a formula derived through averaging the most current population and assessed valuation figures for each respective Funding Agreement Superio�Califo�nia Eeonomie Development Distriet Page 2 member. These specific values represent the City's portion of Shasta County's share of SCEDD's operating budget, as shown in Attachment B, attached and incorporated herein. 4. REP9RTS AND RECORDS. A. SCEDD shall keep a full and complete account of funds received from all sourees, and make this available to the City at any and all times upon request. 5. INDEMNIFICATION. SCEDD shall indemnify and defend the City and its elected officials, officers, employees, agents and volunteers against and hold them harmless from any and all claims, losses, damages, and liability for damages, including attorney's fees and other costs of defense incurred by the City, whether for damage to or loss of property or injury to or death of persons or loss of services, expenses or compensation, including properties of the City and injury to or death of the City's elected officials, officers, employees, agents and volunteers arising out of, or resulting from, the City's expenditure of funds to SCEDD hereunder, the services to be performed hereunder by SCEDD or from the actions of SCEDD's offieials, offieers, employees, agents, volunteers and invitees, unless such damage, loss, injury or death is caused by the sole or active negligence of the City. 6. IN�URANCE REOUI�REMENTS. SCEDD shall procure and maintain, for the term of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the services to be provided hereunder by SCEDD and its officials, officers, employees, agents,members or volunteers. The cost of such insurance shall be borne by SCEDD. A. Coverage shall be at least as broad as, with limits no less than: (1) Insurance Services Office Commercial General Liability coverage (occurrenee form CG 0001), at $1,000,000 per oeeurrence/$2,000,000 general aggregate for bodily injury, personal injury and property damage. The City reserves the right to increase the limits at a later date. (2) Workers' Compensation insurance as required by the State of California; and Employer's Liability insurance (for SCEDD's employees), at $1,000,000 per accident for bodily injury or disease. B. The general liability poliey is to be endorsed to contain the following provisions: (1) The City, its elected officials, officers, employees, agents and volunteers are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of SCEDD; products and completed operations of SCEDD; premises owned, occupied or used by SCEDD; or automobiles non-owned,leased,hired or borrowed by SCEDD. The coverage shall contain no special limitations of the scope of protection afforded to the City, its eleeted officials, officers, employees, agents and volunteers. (2) SCEDD's insurance coverage shall be primary insurance as respects the City, its eleeted offieials, officers, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its elected officials, officers, employees, agents and volunteers, shall be exeess of SCEDD's insurance and shall not contribute with it. (3) SCEDD's insurance sha11 apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (4) Each insurance policy covered by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits except after thirty(30) days' prior written notice has been given to the City. G Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-: VII and licensed to do business in the State of California. SCEDD shall furnish the City with original endorsements affecting the coverages required by this Agreement. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City's :Risk .Manager prior to the date the term commences. 7. COMPLIANCE WITH LAW. SCEDD covenants and agrees to comply with all statutes,laws, ordinances,regulations, orders,judgments, decrees, directions, and requirements of the City, and of all federal, state, county and city authorities now or hereafter in force, applicable to the services to be provided hereunder or pertaining to a joint powers agency created under the laws of the State of California, and shall secure at its full cost and expense any and all permits, applications or other requirements in connection therewith. The judgment of any court of competent jurisdiction or the admission of SCEDD in any action or proceeding against SCEDD, whether the City be a party thereto or not, that SCEDD has violated any such ordinance or statute shall be conclusive of the fact as between the City and SCEDD and shall subject this Agreement to immediate termination at the option of the City. 8. ASSI�GNMENT 012 SUBCONTRACTI�NG. SCEDD shall not assign, subcontract or otherwise transfer this Agreement or any interest therein without first securing the written approval of the City. 9. FINANCIAL INTEREST.No member of the City Council or of any Cityboard or commission, and no officer or employee of the City, shall be or become, directly or indirectly, financially interested in this Agreement or the services to be performed by SCEDD. 10. TS �ATUS. In carrying out the terms of this Agreement, SCEDD is an independent contractor, and nothing in this Agreement is intended nor shall be construed to create an employer- employee relationship or a joint venture relationship between the Cityand SCEDD or any officer of employee of SCEDD. 11. WAIVER. A waiver of any party of any provision or a breach of this Agreement must be provided in writing and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provision herein. 12. DEFAULT. A. SCEDD's failure to perform any provision of this Agreement, if the failure to perform is not cured within thirty(30) calendar days after notice has been given to SCEDD, shall constitute a default of this Agreement. If the default cannot be reasonably cured within thirty(30) Funding Agreement Superio�Califo�nia Eeonomie Development Distriet Page 4 ealendar days, SCEDD shall not be in default of this Agreement if SCEDD commences to cure the default within the thirty (30) calendar day period and diligently and in good faith eontinues to cure the default. B. N�otices given under this paragraph shall specify the alleged default and the applicable provisions of this Agreement, and shall demand that SCEDD perform the provisions of this Agreement within the thirty(30) day period. C. Upon any default of this Agreement, the City, at the City's sole discretion, may terminate this Agreement. Any funds provided to SCEDD by the City pursuant to paragraph 3 of this Agreement which are not expended at the time of the default shall be immediately returned to the City. In sueh event, SCEDD shall also immediately provide to the City the reeords required by paragraph 4 of this Agreement. 13. N'O�l'IC]E. All notices and other communications authorized or required under this Agreement shall be in writing and shall be given by(a)personal delivery, (b)mailing by first elass mail,postage prepaid,or(c)delivery by commercially recognized courier service.Any such notice or other eommunieation shall be deemed to have been given on the date of delivery or refusal to accept delivery if addressed as follows: City of Redding Superior California Economic Att.: Assistant City Manager Development District 777 CypNess Avenue Att.: Executive OfficeN P.O. Box 496071 350 Hartnell Avenue Redding, CA 96049-6071 Redding, CA 96002. Either party may change its address for the purposes of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. 14. ENTIRE A�REEMENT AND M�ODI�FI�CATION OR AMENDMENT. This Agreement, including all attaehments ineorporated by referenee herein, eontains all the representations and the entire understanding and agreement between the parties pertaining to the City's provision of funds to SCEDD. All eorrespondenee, memoranda, or oral or written agreements pertaining to the City's provision of funds to SCEDD, or any of the parties hereto, whieh originated before the date of this Agreement are null, void and no longer in foree and with no effect, and are replaced in total with this Agreement unless otherwise expressly stated in this Agreement. This Agreement shall not be altered, amended or modified except by a writing signed by the City and SCEDD. 15. BI1�IDING ON SUCCESSORS. Subject to the provisions in this Agreement respeeting assignment or subeontracting, all eovenants, terms and conditions in this Agreement shall extend to and bind the successors and assigns of the respective parties to this Agreement. 16. HEADINGS, REFERENCE,AND JOINT AND SEVEI2AL LIABILITY. The titles and headings of the various paragraphs of this Agreement are intended solely for convenience of reference and are not intended to explain, modify or place any construction on any of the provisions of this Agreement. Masculine, feminine and the neutral gender and the singular and the plural number shall each be considered to include the other whenever the context so requires. If either party consists of more than one person or entity, each such person or entity shall be jointly and severally liable. Funding Agreement Superio�Califo�nia Eeonomie Development Distriet Page 5 1'7. NO PA:RTY DEEIVIED DRAFTER. In the event of a dispute between any of the parties to this Agreement over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are to be construed against the drafter shall not apply. 18. CALIFORNIA LAW. This Agreement shall be eonstrued and interpreted in aeeordanee with the laws of the State of California. 19. SEVEI2ABILITY. The unenforceability, invalidity or illegality of any provision shall not render the other provisions unenforceable, invalid or illegal. 20. ATTORNEYS' FEES. In any dispute between the City and SCEDD, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party all reasonable eosts, ineluding, without limitation, reasonable attorney's fees. "Prevailing party" shall include, without limitation, a party who dismisses an action for specific performance or for damages in exehange for sums allegedly due,performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action, or which receives from the other party, in eonnection with any dispute, performanee substantially equivalent to any of these. N�o sum for attorney fees shall be included in calculating the amount of a judgment for purposes of deeiding whether a party is entitled to its eosts or attorney fees. 21. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision in this Agreement. 22. DATE OF AGREEMENT. The date of this Agreement shall be that date that it shall have been signed by the City. Funding Agreement Superio�Califo�nia Eeonomie Development Distriet Page 6 IN WITNESS WHEREOF, the parties hereto have executed this Funding Agreement in the presence of their respective officers duly authorized in that behalf on the days and year set forth below. CTTY OF REDDING Dated: , 2023 By: Michael Dacquisto,Mayor Attest: APPROVED AS TO FORM: Pamela Mize, City Clerk Barry E. DeWalt, City Attorney SUPERI012 CALIF012NIA ECONOMTC DEVELOPMENT DISTRICT Dated: , 2023 By: Brandon Criss, President ATTACHMENT A Superior California Economic Development District Proposed Scope of Work 2021-2024 �omprehensive Economic Development Strateg,y • Ongoing monitoring and annual review, update/revision of the CEDS. • Maintain a CEDS Committee of SCEDD board members AND other elected officials, appointed government officials, and private businesses. • Maintain a CEDS stakeholder workgroup(s) including SCED staff and board, elected and appointed officials, workforce development, other economic development organizations, education, and representatives of primary industry clusters. • Finalize CEDS review and document changes, updates, and additions in a document published for public access. Economic Development Planning and Coordination • The district's economic development planning activity will continue to address common issues on a regional basis and identify and support local economic development problems, initiatives, and specific projects relevant to the CEDS. The continuing transition from a resource-based economy to expanded retail and services requires ongoing monitoring and adaptation to and development of new economic base opportunities as they arise. Economic Planning Activities will include: o Continuation of ongoing district-wide and local economic assessment, planning, and coordination assistance, particularly with Shasta EDC, Siskiyou EDC, Trinity stakeholders, and Modoc stakeholders. o Continue to assist eligible jurisdictions and entities with EDA planning, adjustment, and public works grant opportunities as they arise, particularly previously identified EDA Public Works opportunities in Yreka, Mount Shasta, and Anderson. o Plan and coordinate other District economic development projects/programs, including Microenterprise Development, SCED business development financing, and ongoing activities with the additional special projects listed. o Continue collaborative relationships with the (northern) California Finance Consortium. Staff CapacitX • Staff support, education, and professional development aimed toward building on skills that will expand the entity's ability to engage and successfully implement economic opportunities throughout the district. Technical Assistance • Provide TA to member agencies regarding topics such as industrial parks, land use regulations, grant training workshops, district committees, economic development programs,business development, and the tribal entity or local government. Industrial Development • The district works cooperatively with local jurisdictions and local economic development agencies in their efforts to expand industrial businesses in the district and to assist existing local industrial businesses with growth/expansion. The district will assist local jurisdictions with long-range planning and direct assistance in funding for industrial site development. However, the District never has and will not conduct any business recruitment marketing or placement negotiation. • Collaborate and cooperate with local agencies conducting industrial recruitment. EXHIBIT B 'SIJF�ERIC?R ��i�IF�RN1� E�C�1�IC��lE1� D�'1�EI��P�EIVT �1�►TF�1�T = . GF�"�1�1GT ECC��f?M1G I�L/�1ti�NIN� CR��17=P�C�GE�M Jc�int Pc�r�u��rs A�r��rri+�n�f+�r ��s���Y+�ar��d�U�2 Percent Assessed Percent County Population* Population Valuation** Valuation Modoc 9,491 3.87% $1,210,464 4.18% Shasta 177,797 72.49% $20,558,676 71.01% Siskiyou 44,461 18.13% $5,346,676 18.47% Trinity 13,535 5.52% $1,835,839 6.34% Total 245,284 100.00% $28,951,655 100.00% .�+C�INT P+�W�RS ACf2EE11��MT�1��ES�MENT Blended Percent Total Population/ Request County Valuation FY 2021/22 Modoc 4.03% $ 2,013 Shasta 71.75% $ 35,874 Siskiyou 18.30% $ 9,148 Trinity 5.93% $ 2,965 Total 100.00% $ 50,000 EDA DISTRICT ECONOMIC PLANNING GRANT $ 75,000 REQUIRED Cash MATCH SCEDD JPA 40% $50,000*�* .� �rC1,�{��1 , Additional Match Commitment by SCED $ 10,000 TOTAL $ 135,000 �State of California,Department of Finance, E-1 Popu(atian Estimates for Gities, Gounties and the State with Rnnual Percent Change —January?, 2020 and 2021. Sacramento,California,May 2021. �*Assessed Valuation figures from State of California,Board of Equalization Annual Report 2020-21 (Table 5).Add 000 to numeric figure: "*"Match required by U.S.Departme�t of Commerce-EDA �I�PEF��C�E�CALlFC�1�N1�4 E�C?�1+��►1�� [�E1/ELC�F'I�IENT �ISi'I�1�T ..... ;°° 1�tSTRICT E+�C�MC)IVII�°1��A�NN�hI� GRAC�T P1�C��F�AM ��r�nt Rcruvers Agr�+�m�r�t fc�r�Y�0�'112t122 ; �HA�TA CC�IlNTY Percent Assesed Percent City/County Population* Population Valuation** Valuation Anderson 1 U,702 6.02% $837,041 4.07% Redding 91,7�5 51.58°/a $9,995,860' 48.62% Shasta Lake 10,657 5.99% $$22,504 4.00% Balance of County 64,723 36.40°/o $8,903,171 43.31% Total 177,797 100.00% $20,558,676 100.00% JflIhIT P�'I�ERS AGR��MI�EN7�ASSE�SI�EINT - Blended Percent Total Population/ Request City/County Valuation FY 2021/22 Anderson 5.05% $ 1,810 Redding 50.10% $ 17,974 Shasta Lake 5.00% $ 1,793 Shasta County 39.85°/o $ 14,297 Total Shasta County 100.00% $ 35,874 'State of California,Qepartment of Finance,E-1 Populatron Estrmates for Cities,Counties and the State with Annual Percent Change—January 1,2020 and 2021. Sacramento,California,May 2021. "Assessed Valuation figures from State of California,Board of Equalization Annual Report 2020-21 (Table 11) SURERIC�R �AL:IF(�R�IIA-E�t��C�11�IC.�7E1/E�,C?F�MENT t�►I�TRI�T . ` .D��T121GT ECC��I�M���L�f�1�INt� �F2�+N� P1�C�GRA�II . Jc�i�t�'c�wi�rr��1gr+e+�rrni�nt�ar����al Y��r End 2�23 Percent Assessed Percent County Population* Population Valuation** Valuation Modoc 8,690 3.49% $1,279,796 4.20% Shasta 180,531 72.48% $21,679,543 71.16% Siskiyou 43,830 17.60% $5,560,180 18.25% Trinity 16,023 6.43°/a $1,947,692 6.39% Total 249,074 100.00% $30,467,211 100.00% J{?IMT E�C?W��S A�Ft�EI�I�NT A��E��M�NT Total Blended Percent Request County Population /Valuation FY 2021/22 Modoc 3.84% $ 2,499 Shasta 71.82% $ 46,682 Siskiyou 17.92% $ 11,650 Trinity 6.41% $ 4,168 Total Cities/Counties Contribution 100.00% $ 65,000 EDA DISTRICT ECONOMIC PLANNING GRANT 2023 $ 75,000 EDA REQUIRED Cash MATCH SCEDD JPA 50% *** $ 75,000 Cash Match Ct�mmitrnent by 5CE[7 $ �0,�00 Cash Match 12equest JPA Memb�r Cities and Caunties $ 65,000 TOTAL Program $ 150,000 �State of California,Department of Finance, E-1 Population Estimates for Cities, Counties and the Sfate wifh Annual Percent Change —January 1, 2Q20 and 2Q21. Sacramento,Califarnia,May 2021. �"Assessed Valuation figures from State of California,Board of Equalization Annual Report 2020-21 (Table 5).Add 000 to numeric figure: �"'Match required by U.S.Department of Commerce-EDA �I�PEF��C�E�CALlFC�1�N1�4 E�C?�1+��►1�� [�E1/ELC�F'I�IENT �ISi'I�1�T ..... ;°° 1�tSTRICT E+�C�MC)IVII�°1��A�NN�hI� GRAC�T P1�C��F�AM ��r�nt Rcruvers Agr�+�m�r�t fc�r�Y�0�21�t12� , ; �HA�TA CC�IlNTY Percent Assesed Percent City/County Population* Population Valuation** Valuation Anderson 11,181 6.19% $909,217 4.19% Redding 93,879 52.00°/a $10,520,616 48.53% Shasta Lake 10,318 5.72% $862,884 3.98% Balance of County 65,153 36.09°/o $9,386,826 43.30% Total 180,531 100.00% $21,679,543 100.00% JflIhIT P�'I�ERS AGR��MI�EN7�ASSE�SI�EINT - Blended Percent Total Population/ Request City/County Valuation FY 2021/22 Anderson 5.19% $ 2,425 Redding 50.26°/a $ 23,465 Shasta Lake 4.85% $ 2,263 Shasta County 39.69°/o $ 18,530 Total Shasta County 100.00% $ 46,682 'State of California,Qepartment of Finance,E-1 Populatron Estrmates for Cities,Counties and the State with Annual Percent Change—January 1,2020 and 2021. Sacramento,California,May 2021. 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