AGENDA CAPTION:
Title
Consider approval of Resolution 2026-184R, approving a one-year extension to the Restated Agreement with the Hays Caldwell Economic Development Partnership for economic development services in the amount of $200,000.00; authorizing the City Manager, or her designee, to execute the extension; and declaring an effective date.
Body
Meeting date: October 7, 2026
Department: Economic & Local Business Development
Amount & Source of Funding
Funds Required: $200,000.00
Account or Project Number (C = CIP funds):
10001133-54195 (1/3 of expense - $66,667)
21006322-54195 (1/3 of expense - $66,666),
22006342-54195 (1/6 of expense - $33,334)
22006343-54195 (1/6 of expense - $33,333)
Funds Available: Click or tap here to enter text.
Account Name:
Fiscal Note:
Prior Council Action: City Council Executive Session held on September 15, 2026
City Council Strategic Initiative: [Please select from the dropdown menu below]
Economic Vitality
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
N/A Arts and Culture - Choose an item.
Yes Economic Development - ECD-2: Strategically grow the San Marcos economy with targeted strategies and investments that attract talent, support local businesses, and create vibrant commerical centers
N/A Environment & Resource Protection - Choose an item.
N/A Housing + Neighborhoods - Choose an item.
N/A Land Use + Community Design and Character - Choose an item.
N/A Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
N/A Transportation - Choose an item.
N/A Core Services
N/A Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The current contract with the Hays Caldwell Economic Development Partnership (“HCEDP”) is a one-year contract extension of the original contract. The current one-year extension covers the period of October 1, 2025 through September 30, 2026 (FY26). The request for another one-year extension will cover the period of October 1, 2026, through September 30, 2027 (FY27).
For the current FY26 contract, the following changes were made: Reduced the annual contract from $320,000 to $200,000 to financially support moving more contracted services directly to City staff and taking direct responsibility for the economic development incentive application process and analysis. The $120,000 reduction in the contract was used to (1) hire an analyst/specialist (Economic Development Analyst) position to compute the benefits and costs of submitted incentive applications; and (2) to increase the job scope and responsibilities of the vacant Economic Business Development Manager position to Economic and Local Business Development (ELBD) Director.
The Main Street Program was integrated into the ELBD Program in October 2026. This realignment has enhanced collaboration between Main Street and the ELBD Team, particularly in supporting Downtown as a hub for business and community life. Main Street continues to focus on maintaining the unique and historic nature of Downtown San Marcos and supporting Downtown as a destination for visitors and tourists.
This one-year contract extension will continue to support the new operational structure through the implementation of programs and outreach through the leadership of the Economic and Local Business Development Department.
Council Committee, Board/Commission Action:
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Alternatives:
To continue, table, or not approve the item.
Recommendation:
Staff recommends approval of the contract as presented.