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Home My WebLink About _ 4.2(a)--Funding Agreement-Superior California Economic Development District � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 18,2024 FROM: Steve Bade, Assistant City ITElVI NO. 4.2(a) Manager ***APPROVED BY*** t�� ; s' �r �i;'71�C�?4 te�r� ;� ' �:rr 6,'11!?C}? sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 4.2(a)--Funding Agreement with the Superior California Economic Development District for Fiscal Year 2024-2025. Recommendation Approve the Funding Agreement between the Superior California Economic Development District (SCEDD) and the City of Redding for Fiscal Year (FY) 2024-2025, for economic development planning and business development services; and authorize payment to SCEDD in the amount of$26,894 for FY 2024-2025 activities. Fiscal Impact Sufficient funds have been included in the City of Redding's (City) 2024-2025 Biennial Budget (General Fund) to cover the cost of the Funding Agreement($26,894). Alte�native Action The City Council could decline to participate in SCEDD, or direct staff to renegotiate the FI' 2024-2025 Funding Agreement to provide for some other funding mix and/or work program associated with the Funding Agreement. 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. Economic 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 �gures for each respective member. Assessment funds provide the cash match for the EDA Annual Planning Crrant. Report to Redding City Council June 11,2024 Re: 4.2(a)--Funding Agreement-Superior California Economic Development District Page 2 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 federa] 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; and ■ Certified Development Company - SCEDD is certified by the U.S. Sma11 Business Administration to market, package, fund, and service SBA 504 loans statewide. While this activity does con�ribute 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. Environmental Review This is not a project defined under the California Environmental Quality Act and no further action is required. Council Prio�ity/City Manager Goals • Economic Development — "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 FUI�TDING AGIdEEMENT 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 ECOlmTOMIC 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 Fonning an Economic Development District dated Marcll 12, 1979, as amended("SCEDD"): RECITALS A. The City Council of the City of Redding (City) is empowered by the State of Califoruia to appropriate and expend money from City fimds for the regional planning for economic and public works pi-oject developmeilt within the City. B. The City has no organized means of its own for conducting the systematic expendihire of filnds for regional planning for ecoilomic and public works project developmeiit within the City. C. SCEDD provides regional ecovoi77ic-development planuing and basiness-development seivices, and acts as the Economic Development Admuiistratiou's liaison to both the public and private sectors.SCEDD's � primaiy mission is facilitating business and job creatiou in Shasta,Trinity,Modoc,and Siskiyoli coiinfies.Shasta County's share of SCEDD's operating budget and its ulatching grant requirement is shared betweeu Shasta County and the cities of Redding, Anderson and Shasta Lake in accordance witli a specified fonnula. D. SCEDD, with its orgallizational and administrative structure is well able to provide regional planning for econoinie and public works pi�oject development within the City, tluougli which the City and its citizens beilefit.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 one year commencing on July 1, 2024, and terminating on June 30,2025. 2. SERVICES TO BE PROVIDED BY SC�DD. SC�DD shall provide the services outlitled in AtCael�ment A- Scope of Work atiached hereto and incorporated by reference l�erein and genei�ally described as the district econoinie plam�ing 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 Tweiity Six Thousand Eight Hundred and Ninety Four pollars ($26,894)which represents the City's share of Shasta County's share of SCEDD's operating budget for 2024-2025,as shown in Attaclnnent B,attached and incorporated herein. This sum shall be paid within ninety(90)days after the submission of SCEDD's invoice to the City. 4. REPORTS AND R�CORDS. A. SCEDD sl�all keep a full and complete account of fiuzds received from all sources, and to make this available to the City at any and all times upon request. � Funding Agreement Superior Califor•nia Econo�nic Development District Page 2 5. INDEMNIFICATION. SCEDD shall indemnify and defeud 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 attoi7ley's fees and other costs of defense incurred by the City, whetl�er for damage to or loss of property oi• injury to or death of persons or loss of services, expenses or coinpensation, including properties of the City and injury to or death of the City's elected officials, officers, employees, agents and vohinteers arising out of, or resulting from, the City's expenditure of fiiuds to SCEDD heretmder,the selvices to be performed hereunder by SCEDD or from tl�e actions of SCEDD's officials,officers, employees, agents, voluiiteers and invitees, unless such damage, loss, uljuly or death is catised by the sole or active negligence of the City. 6. INSURANCE REQUIREMENTS. SCEDD shall procure and maintain, for the tenn of this Agreement, iiisurance against claiilis for injuries to l�ersoi7s or damages to properry which may arise from or ui comiectioil with tl-►e services to be provicled hereunder by SC�DD and its officials, officers,employees,agents, members or volunteers. The cost of such instirance shall be borne by SCEDD. A. Coverage shall be at least as broad as,with limits no less tllau: (1) Insui-ance Services Office Coinmercial Genei�al Liability coverage (occturence fonn CG 0001),at$1,000,000 per occurrence/$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) Worlcers' 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 injuly or disease. B. The general liability policy is to be endorsed to coiitain the following provisions: (1) The City, its elected officials, of�cers, employees, agents and volunteers are to be covered as additional insureds as respects liability at-ising out of activities performed by or on behalf of SCEDD;products and completed opei-ations of SCEDD;premises owned, occupied or used by SCEDD; or automobiles nou-owued, leased, hired or borrowed by SCEDD. The coverage shall contain no special limitations of the scope of protection afforded to the City, its elected offcials, officers, employees, agents and volunteers. (2) SCEDD's insurance coverage shall be priulaiy insurance as respects tlie City,its elected officials, ofFicers, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its elected officials, officers, employees, agenfs aud volunteers, � shall be eXcess of SCEDD's iustu�ance and shall not cont�•ibute with it. (3) SCEDD's insurance shall apply separately to each insured agaiust whom elaim is made or suit is brought, except with respect to the limits of the instu-er's liability. (4) Each insurance policy covered by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled Uy either parry, or reduced in coverage or in limits except after thirly(30) days' prior written notice has been given to the City. C. Insurance is to be placed with insurers with a cui-rent A.M.Best's rating of no less than A-:VII and licensed to do business in the State of California. SCEDD shall fiirnish 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 tlie City's Risk Manager prior to the date the tei7n commences. Funding Agreement Superior California Economic Development District Page 3 7. COMPLIAI�TCE WITgI 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 pertalning to a joint powers agency created under the laws of the State of California, and shall secui-e at its fiill eost and expense any and a11 permits, applications or otlier requirements in comiection therewith. The judgmeilt of arry court of competent jurisdiction or the admission of SCEDD in any action or proceeding against SCEDD, whether the City Ue a party thereto or not,that SCEDD has violated any such ordinance or statute shall be conclusive of the fact as betweeu the City and SCEDD aud shall subject this Agreement to immediate termination at the option of the City. 8. ASSIGNMENT OR SUBCONTRACTING. SCEDD shall not assign, subcontract or otherwise traiisfer this Agreement or any interest thereiii without first secliring the writteii appi�oval of the City. 9. FIlVANCIAL INTEIZ�ST. No member of the City Council or of any City board or commission,aild no officer or employee of the City, shall be or become,dii�ectly or indu•ectIy,finaiicially � interested in this Agreement or the services to be perforined by SCEDD. 10. STATUS. In carrying olrt the terms of this Agreement, SCEDD is an uldependent conh�actor, and nothuig in this Agr-eement is intended nor shall be construed to create an employer- employee relationship or a joint venhue relationship between the Ciry and SCEDD or any offcer of employee of SC�DD. 11. WAN�R. A waiver of any party of any provision or a breach ofthis Agreemeilt must be provided in writing aud shall not be construed as a waiver of any other provision or airy 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 failul•e to perform is not etiired within thirry(30)calendai-days after notice has been given to SCEDD,shall eonstitu�e a defattlt of this Agreement. If the default cannot be reasonably cured witliin tllirty(30)calendar days, SCEDD shall not be in default of this Agreement if SCEDD commences to cur�e tlie default within the thirty(30) calendar day�eriod and diligently and in good faitli continues to cure the default. B. Notices given under this paragraph shall specify the alleged default and the applicable provisions of this Agreement, and shall ciemand 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 uot expended at the tiine of the default shall be in�mediately retur-ned to the City. In such event, SCEDD shall also ilnmediately provide to the City the records required by paragraph 4 of this Agreernent. Funding Ag�•eement Superior California Economic Development District Page 4 13. NOTICE. All notices and other communications authorized or required under this Agreement shall be in writing and shall be given by(a)personal deliveiy, (b)mailing by first class mail, postage prepaid, or (c) deliveiy by commercially recognized courier seivice. Any such notice or other� communicatioli shall be deemed to have been given on the date of delivery or refirsal to accept delivery if addressed as follows: City of Redding Superior California�conomic Att�7.:Assistaizt City Manager Developnaent District 777 Cypress Avenzce Attn.:Executive Officer P.O. I3ox 496071 350 Hartnell Avenue Redding, CA 9b049-6071 Reddi��g, CA 96002. Eithei�party may change its address for the purposes of this paragraph by giving written uotice of such change to the other party in the manner provided in this paragraph. 14. ENTIRE AGREEMENT AND MODIFICATION OR AMEIeTDMENT. This Agr�eement, including all attaclunents iilcorpoi�ated by reference herein, contains all the representations and the entire understanding and agreement between the parties pertaining to the City's provisioll of fiinds to SCEDD. All cori-espondence, memoranda, or oral or written agreements pertaining to tIie City's provision of fiiuds to SCEDD, or any of the parties hereto, which originated before the date of this Agreement are inill, void and no longer in force and with no effect, and are replaced in total with this Agreemeilti unless otherwise expressly stated in this Agreeinent. This Agreement shall not be altei�ed, amended or moclified except by a writing signed by the City and SCEDD. 15. SINDING OliT SUCCESSORS. Subject to the provisions in this Agreement respecting assignment or subcorrtractiilg, all covenants, terms and coilditions in tl�is Agreement shall extend to and bind tlle successors aiid assigus of the i�espective parties to this Agreement. 1G. HEADINGS, 1tEF�I2ENC�, ANI) JOINT AND SEV�RAL LIABILITY. The titles and headings ofthe various paragraphs of this Agreement are iiltended solely for convenience of reference and are ilot intended to explain, rnodify or place any constructioll on any of the provisiolls of this Agreernent. Masculii7e,feininine and tlie neutral geiider and the singlilai-and the plural number sha11 each be c�onsidered to iiiclude the other whenever flle conteXt so requires.If eitlier party consists of more than one person or entity, each such person or entity shall be joiiltly aild severally liable. 17. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the parties to this Agreement over the meaning of this Agreement,no pai-ty sl�all be deemed to have been the drafter hereof, and the principle of law that contracts are to be coustrued against the drafter•shall not apply. 18. CALIFOltNIA I�AW. This Agreement shall be construed and inteipreted in accordance with the laws of the State of California. 19. SEVERABILITY. The unenforceability, uivalidity oi� illegality of any provision shall not render the other provisious iulenforceable, invalid or illegal. Funding Agreement Supe��ior California Econonzic Development Dist�icP Page S B0. ATTORN�YS' FEES. In any dispute betvveen the City and SCEDD, whetller or not resulting in litigation,the prevailing party shall be entitled to recover from the other pai-ty all reasonable costs, inchiding,without limitation,reasonable attorney's fees. "Prevailing pariy" shall inclLide,without limitatiou,a party who dismisses an actiou for specific pei�fonnance or for damages in exchange for sums allegedly due, perfonnance for covenants allegedly breached or consideration substantially equal to the relief sought in the action, or which receives from the other party, in connection with any dispute, performance substantially equivalent to any of these. No sum for attorney fees shall be included in calculating the amount of a judgment for purposes of decidilig whether a party is entitled to its costs or attorney fees. 21. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision in this Agreeinent. 22. DATE OF AGREEMENT. Tl�e date of this Agreement shall be that date that it shall have been signed by the City. Funding Agr-eem ent Superior•California Economic Development District Page 6 IN WITNESS WHEREOF,the parties hereto have executed this Funding Agreement in tlie presence of their respective officers duly authorized in that behalf on the days and year set forth below. CITY OF REDDING Dated: ,2024 By: Tenessa Audette, Mayor Attest: APPROVED AS TO FORM: By: Sharlene Tipton,City Clerk Christian Curtis,City Attorney SUPERIOR CALIFORNIA ECONOMIC D�V�LOPMENT DISTRICT Dated: � � ,2024 By: � ' `�' Ryan ichardson,Executive Director SUPERIOR CALIFORNIA ECONOMIC DEVELOPMENT DISTRICT J � �' ° � Dated: �- ,2024 By: Brandon Criss,President g ATTACHMENT A Superior California Economic Development District Proposed Scope ofi Work 2024-2025 Comprehensive Economic Development Strate�v • Ongoing monitoi�ing and annual review, update/revis�on of the CEDS. • Maintain a CEDS Committee of SCEDD board members AND other elected officials, • appointed government officials,and private businesses. • Maiiitain a CEDS stakeholder wor-kgroup(s) including SCED staff and boar-d,elected aud appointed officials, workforce development, other economic development organizations, education, and representatives of primary industiy clusters. • Finalize CEDS review and document changes,updates,and additions in a documeirt t�ublished for public access. Economic DeveloAment Plannin�&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 r-elevant to the C�DS. The continuing transition fi•om a resource-based economy to ex�anded retail and seivices iequires 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 opport�mities in Yreka,Mount Shasta,and Anderson. o Plan and coordinate othe��District economic development projects/programs,including Microenterprise Development,SCED business development financing,and ongoing activities with the additional special projects listed. o Contimie collaborative relationsliips with the(northern)Cali{`orniaFinance Consortilim. Staff Capacity • Staff support,education,and professional development aimed toward building on skills that will expanci the entity's ability to engage and successfully implement economic opportunities throughout the district. Technical Assistance • Provide TA to meinber•agencies regarding topics such as industrial parks, land use regulations, grant trall�ing worlcshops,district committees,economic develo�ment programs,business development,and the t►•ibal entity or local government. Industrial Development • The district worlcs cooperatively with local jurisdictions and local economic development agencies in their efforts to expand industrial businesses in the dist��ict and to assist eXisting local industrial businesses with growth/expansion.The district will assist local jurisdictions with loug-range planning and dit•ect assistance in funding for industrial site development. However, the Disti°ict never has and will not conduct any business recruitmeilt marketing or placement negotiation. • Collaborate and cooperate with local agencies conducting indush-ial recruitment. . ` ATTACHMENT B � ♦ � �� . + �� r*� �� i + r � � Superim�California Econoinic Ae��lopment District 20242025 Fiscal Year Joint Powers Agreement(JPA)rinancial Contribution Calculation $75,000 ED.4 District Economic Planning Grant-EDA Portion 75.000 EDA Required Cash Match from SCEDD]PA Member Cities and Counties $I.i0,000 TotalProp,rant ��- Blended Percent '�' Percent Population& Count�� Pa �ulation Po ulation ':�issessedValuation'�.�PercentValu:�tion '�� Valuation TotalRe ucsC� D4odoc 8,651 3A5% S 1,42S,36Q000 4.10% 3.75% $ 2,531.00 9iasta 181,852 72.61% S 24,834,I72,000 7136% ' 71.99% $ 53,992.00 � Siskiyou 44,049 17.59% S 6,293,939,000 18.09% 17.84% $ I3,378.00 Trinity 15,889 634% S 2,245,786,000 6.45% 6.40% S 4,799.00 . Total 250,441 100.00% S 34,799,257,000 l00.00% 100.00% $ 75,000.00 Shasta County ': BlcndedPercent '�.� Percent Popu)ation& Cit /Count Po vlation Po ulation �ssessed Valuation�� Percent Valuation �: Valuation Total Re ucst��. Anderson 10,943 6.02% $ 1,075,380,000 433% 5,17% $ 2,793.00 Redding 92,446 50.84% S 12,116,006,000 43.79% 49.81% $ 26,894.00 9iastaLake 1Q131 5.57% S 96I,552,000 3.87% 4,72% 5 2,550.00 Bala��ceof9iastaCounty 68,332 37.58% S IQ681,234,000 43.01% 40.29% $ 2I,755.00 Total 9�asta Coimty 181,852 100.00% $ 24,834,172,000 100.00% 100.00% $ 53,992 00 2024-2025 Assessment Summary � Modoc Cowrty $ 2,83 L00 9iasta County $ 21,'IS5.00 SiskiyouCounty S 13,378.00 Trutity County $ h,799.00 � Anderson S 2,793.00 Redding $ 26,894.00 Shasta Lake � 2,550.00 Total $ 75,000.00 Superior California Economic Development 3�o Hartnell Ave.,Ste.A,Redding,CA 96002 � (530)225-2�60 � scedd.org