City of Blythe

R2

Develop a five-year strategic plan, as recommended by the State Auditor, to define the City's priorities, goals, and expected outcomes, based on the findings of Retail Strategies project and the Blythe Economic Resiliency study' Plan is to be completed and included in the Cilv's response to this report by the end of Septhember 2024. City's Response: The recommendation has not been implemented, but will be implemented in the future. As the City's response to the Grand Jury Report is due in early July, the plan cannot be included in the city's response. Although the city has good building blocks fiorn the Economic Resiliency Study, a strategic plan will require staff time and possibly a consultant to prepare. As an enormous amount of time went into the Save Chuck campaign. partnership with Brown University and other avenues the City has been working on due to the proposed closure of Chuckawalla Valley State Prison, time was not to dedicated to the strategic plan. After the Save Chuck efforts wind down, the City can begin to develop a five-year strategic plan. The City estimates completing the five-year strategic plan by December 2025.

R3

The City of Blythe should be clear as to its intention to hire a full-time City Manager. If it is to hire, the Grand Jury recommends that a deadline be established no later than year-end 2024, follorving the adoption of a long-term strategic plan. The new city manager will be accountable for the implementation of the City's long-term and strategic objectives, as defined in Rl & R2. city's Response: The recommendation has not been implemented but will be irnplemented in ihe future. It is anticipated that the city council will provide direction related to the hiring of a permanent City Manager at the end ol the 2024 calendar year.

R4

[Applies to Riverside County.l City of Blythe's Responses to Riverside Coun$ Grand Jury's Findings and Recommendations Grand Jur.v-' Findings: Fl. A formal long-term strategic plan is needed to "guide the City's budgetary decision making and address long-term needs to achieve financial stabilify". Blythe, in its Corrective Action Plan submitted to the State Auditor, acknowledged and agreed to develop the plan by the end ofJune 2023. This has not been Completed. City's Response: The City partially agrees with this finding. Although the City plans to develop a longterm strategic plan as time and funding permit, the City has made substantial progress irnproving its financial stability without a formal plan in place. These improvements have been highlighted in both the City's responses to the State Auditor and the City's audited financial statements. Although a comprehensive strategic plan has not been adopted by the Bly'the City Council, other policies and procedures were adopted to facilitate budget stability, including a Reserve Policy to save for rainy days, fund capital expenditures and address pension obligations and other posFemployment benefits, adopting conservative and balanced budgets year over year, and assessing rates and fees for service every five years to achieve full cost recovery for services provided.

R5

Blythe should accept that Chuckawalla Valley State Prison will close, as currently scheduled, and change its focus to developing a strategy by year en.d 2024 for what Blythe can do to negotiate financial support from the State. The City should continue to work with the professor from Brown University, the Urban Institute' and the Justice Labs of America to conduct further research to make clear the socio-economic impact on the City. City's Response: This recommendation has been implemented. After the release of the Grand Jury Report 'in April, Govemor Newsom announced during a Press Conference related to the State's May Revise budget that the closure of Chuckwalla Va11ey State Prison in B11.the would be expedited. The prison will close four months ahead of schedule. City officials are resigned to the fact that the prison will close. Although the Save Chuck campaign has been the City's focus, behind the scenes the City worked on a strategy to diversifu the Bl1'the economy. This includes marketing B11'the as a key link in the transportation corridor connecting renewable energy vehicles between Phoenix, Los Angeles, San Diego, and Las Vegas. There are several projects in development to make Blythe the "Gateway to Califomia," which will help expand tourism in the City. City officials continue to work with Retail Strategies to athact new businesses to Blythe, all to sustain the economy after the prison closes. The City discussed with its elected officials the need for State support to offset the financial impact ofthe prison closure. The City has worked with the County of Riverside to develop a State budget request for funding for multiple years to allow the City and County to attract new business and industry to offset the revenue and population loss from the prison. The City has continued its partnership with Brown University and plans to do so into the foreseeable future' However, the City has researched the economic impact the closure will have directly on the City of Bl1'the, which equates to a rer.ue loss of $2.9 million per year. After the prison closes, the City will continue to research the full impact of closure.

R6

The agreement with Joe A. Gonsalves and Son lobbying firm has a term ofone year with a total compensation of $50,000. The Cify should amend the agreement for an additional year. City's Response: This recommendation has been implemented. lr,lanuNy 2024, the Blythe City Council amended the agreement to extend the term by one year and increase the compensation to $100,000. During budget development for theFY 2024125 Operating and Capital Budget, funding was allocated to extend the agreement through June 30' 2025. When the current agreement expires in January 2025, staff will recommend an extension of the agreement to continue the relationship with Joe A. Gonsalves and Son to provide lobbying services for the City of Blythe.

R7

[Applies to Riverside County.]

R8

The City and County's Office of Economic Development should continue to seek out new economic opportunities, like renewable energy projects that are consistent with the preservation of Blythe's small-town appeal. A General Plan describing their vision for those efforts should be presented to the Blythe City Council and the Riverside Counfy Board of Supervisors by year end 2024. City's Response: The recommendation has been partially implemented. The City and County continually look for economic development opportunities provided through the Califomia Govemor's Office of Business and Economic Development (GoBiz). The City, Retail Strategies and County continue to promote Blythe at annual conferences of the Intemational Council ofShopping Centers, which are a gathering of commercial real estate deal makers and compilation ofbusinesses with expansion plans. The City is highlighted at the Las Vegas show, which is the largest commercial real estate conference of the year, and at the Westem show, which was held in San Diego last fall and will be in Palm Springs this coming September. Both the strategies prepared by the students at Brown University and the Economic Development Overview prepared by Kosmont Companies serve as a plan for the future. The City does not agree that the creation ofa General Plan, which would take a considerable amount of time and funding to prepare, is necessary. The City plans to build upon the work done by Brown University and Kosmont, both of which were at no cost to the City. The City will engage its elected officials, community partners and private developers to create new economic development opportunities in both the renewable energy and retail sectors.