Title
Recommendation to Reconsider Award of the Contract for the Publication of Legal Notices and Consider Providing Direction for Funding Options to Assist the Alameda Sun. (City Clerk 10022020)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Following City Council direction on Councilmember Daysog’s July 20, 2021 referral, staff is returning with the option to reconsider the contract for publication of legal notices and consider providing direction regarding possible funding assistance for the Alameda Sun.
BACKGROUND
The City Council awarded the legal notices contract to the Alameda Journal on June 15, 2021. On July 20, 2021, City Council considered a referral submitted by Councilmember Daysog (Exhibit 1). City Council directed that the matter be brought back to the City Council to consider awarding the contract to the Alameda Sun and explore using American Rescue Plan Act (ARPA) funds to provide financial assistance to the Alameda Sun.
DISCUSSION
Contract
The current contract with the Alameda Journal (Exhibit 2) can be terminated by giving 7 days written notice. Section 19.b of the Alameda Journal contract states: “The foregoing notwithstanding, City of Alameda (City) shall have the option, at its sole discretion and without cause, of terminating this Agreement by giving seven (7) days’ prior written notice to Provider as provided herein.” A draft notice terminating the Alameda Journal contract is attached (Exhibit 3). If written notice is sent September 8, 2021, the contract could be terminated on September 15, 2021.
If City Council terminates the Alameda Journal contract, the contract could be awarded to the Alameda Sun. A draft contract is attached (Exhibit 4). City Council requested information on whether the Alameda Sun could lower the bid amount due to decreased circulation. The Sun indicted the amount cannot be lowered because it is based on the cost of providing the service, not circulation.
Funding
According to a June 22, 2018 article in The Journalist’s Resource, a project of Harvard Kennedy School's Shorenstein Center and the Carnegie-Knight Initiative, “Studies show that areas with fewer local news outlets have lower levels of civic engagement, voter turnout and political accountability.” Support of local newspapers, such as the Alameda Sun, help with community engagement.
The City can directly support the Sun by offering a sponsorship of the newspaper. Examples could be as follows:
• Based on the amount paid for legal ads in FY 2020-2021, provide approximately $19,200 in general funds dollars to sponsor the local newspaper for one year. This would be a general sponsorship. The indirect benefits would be to support Alameda’s only local independent newspaper.
• Commit to purchase non-legal ads for shop local campaigns, restaurant week, and other local events. The purchase price could vary. The support provides a direct benefit to both the City and the newspaper. The funds can come from Commercial Revitalization Fund or the General Fund.
• Sponsor specific content, such has “Health Matters” in the weekly newspaper. The support provides a direct benefit to both the City and the newspaper. The funds can come from Commercial Revitalization Fund or the General Fund.
City Council could use ARPA funds, a fund similar to the one used for COVID-19 Small Business Relief Grant program, and direct staff to create a new grant program that supports community backbone businesses impacted by the COVID-19 pandemic. This process would be competitive and the Alameda Sun may or may not qualify for a grant.
ALTERNATIVES
• Keep the contract with the Alameda Journal and provide direction on funding to assist the Alameda Sun.
• Terminate the contract with the Alameda Journal and award the contract to the Alameda Sun without providing additional funding to the Alameda Sun.
• Terminate the contract with the Alameda Journal and award the contract to the Alameda Sun and also provide direction to staff regarding funding to assist the Alameda Sun.
• Take no action, which means the contract would remain with the Alameda Journal and funding would not be provided to the Alameda Sun.
FINANCIAL IMPACT
Each department’s budget appropriation for legal advertising is approved by the City Council during the budget process. In Fiscal Year 2021-22, it is anticipated the City will spend approximately $46,000 for legal notices if it goes back to a past level. Funding to assist the Alameda Sun could come from American Rescue Plan Act (ARPA) funds, the Commercial Revitalization Fund, or the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
City Charter Section 3-18 is the only applicable policy document.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378.
CLIMATE ACTION
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Reconsider award of the contract for publication of legal notices and funding options for the Alameda Sun.
CITY MANAGER RECOMMENDATION
The City Manager along with the City Clerk is seeking City Council direction on reconsideration of award of the contract or other form of financial assistance.
Respectfully submitted,
Lara Weisiger, City Clerk
By,
Lara Weisiger, City Clerk and Lois Butler, Economic Development Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibits:
1. July 20, 2021 Councilmember Daysog Referral
2. Alameda Journal Contract
3. Draft Notice of Termination
4. Draft Alameda Sun Contract
cc: Eric Levitt, City Manager