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AGENDA ITEM REVIEW FORM

6.C.

Regular City Council Meeting

Meeting Date:: 07/26/2023
Department Head:: Sonia Cornelio
Submitted By:: Sonia Cornelio, City Clerk, City Clerk's Office

Action Requested:

Motion

ITEM:

Discussion and possible action on any and all matters regarding the Fiscal Year 2023-204 for Council's line-item budget in the General Ledger Account named Council's Contractual Services for consideration of continuing as a signatory on the Intergovernmental Agreement, Greater Yuma Port Authority. (Jenny Torres, Acting City Manager)

SUMMARY:

IGA Organizational Structure: The Greater Yuma Port Authority ("GYPA") is a non-profit corporation created in the year 2000 by an Intergovernmental Agreement ("IGA"). It obtained an Act of Congress to transfer federal land on the U.S.-Mexican Border, allowing for a then new port of entry for commercial vehicular traffic. Currently, GYPA's voting members include the City of San Luis, the City of Yuma, the County of Yuma, and the Sovereign Nation of the Cocopah/Cocopah Tribe. Each member has two (2) representatives on GYPA's Board. To terminate participation in the GYPA, a member jurisdiction may stop paying the cash calls (contributions). However, to regain membership, the member would have to pay all back cash calls while it was not a member.

Service: GYPA provided master planning to GYPA's Magrino Industrial Park. It provided capital for the development of the Industrial Park to attract economic development, taking advantage of its proximity to the commercial Land Port of Entry II ("POE 2"). It is also involved with POE 2 users and other stakeholders to improve the cross-border traffic flow to enhance economic development for the region. The infrastructure development is on the last remaining minor punch list to complete the development of Magrino Industrial Park. The city issued the completion certificates on July 11, 2023, for the last phases, 3 and 4.

Compliance: GYPA provided its report to San Luis on the deadline of March 10, 2023, and submitted its $50,000 cash call. (both attached). The San Luis Finance Department requested GYPA financial information. GYPA provided a summary. The Finance Director requested more detail financial information. On May 2, 2023, GYPA's attorney sent a letter to the Office of the City Manager requesting that San Luis make a formal request. On May 4, 2023, the city issued its formal request. On May 17, 2023, GYPA's attorney provided more financial detail and directed the city that further inquiry, if any, be directed to GYPA's attorney. The letters are attached, but the financials are not due to GYPA's determination in his May 17 letter that certain financial information is not public.

Amount: The City has contributed funds since the inception of GYPA in the year 2000. Section 5.3, page 6 of the Restated and Amended By-Laws has set the contribution (technically an annual cash call) at $50,000.00. GYPA has requested $50,000.00 for the fiscal year 2023-2024.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE CASH CALL FOR $50,000.00.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:: Yes
CITY/STATE/FEDERAL FUNDS:: City
TOTAL:: $50,000
BUDGETED AMOUNT:: See fiscal impact statement
AVAILABLE AMOUNT TO TRANSFER:: See fiscal impact statement
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:: See fiscal impact statement

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

If the cash call is approved, there is budget capacity for this fiscal year 2023-2024 for the $50,000 payment to GYPA. In the council contingency we budgeted $200,000 over the usual budget to allow for budget flexibility to cover items that were pending council evaluation as the item presented.

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