San Bernardino header
File #: 9243   
Type: Consent Status: Passed
File created: 12/11/2023 Department: Economic Development Department
On agenda: 12/19/2023 Final action: 12/19/2023
Subject: Termination of Operating Covenant Agreement with Ecolab, Inc
Attachments: 1. Item # 42 Executed BAI
REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION

December 19, 2023


FROM
DEREK ARMSTRONG, Director, Economic Development Department

SUBJECT
Title
Termination of Operating Covenant Agreement with Ecolab, Inc
End


RECOMMENDATION(S)
Recommendation
1. Terminate Operating Covenant Agreement No.19-786 with Ecolab, Inc. due to its relocation from the unincorporated area of San Bernardino County.
2. Authorize the Economic Development Director to provide notice of termination of Operating Covenant Agreement No. 19-786 to Ecolab, Inc.
(Presenter: Derek Armstrong, Director, 387-4386)
Body

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.

FINANCIAL IMPACT
Approval of this item will not impact Discretionary General Funding (Net County Cost) as there is no associated cost with terminating the agreement.

BACKGROUND INFORMATION
Ecolab, Inc. (Ecolab) is a global provider of equipment and services for the food service, food processing, hospitality, healthcare, industrial, and oil and gas markets. In 2020, Ecolab established a California sales office at 13277 San Bernardino Avenue, Fontana, California, an unincorporated area of the County.

On December 10, 2019 (Item No. 17), the Board of Supervisors approved Operating Covenant Agreement No. 19-786 with Ecolab, whereby Ecolab would receive an amount equal to 50% of local sales and use tax revenues received by the County as a result of Ecolab's equipment sales and services, for a term of 10 years. Pursuant to the agreement, Ecolab was to remain at the San Bernardino Avenue location for not less than 10 years.

On September 8, 2022, Ecolab provided a Notice of Intent to Relocate to the County via email and hard copies via Fed Ex were received on September 12, 2022. Ecolab completed the building of a larger facility in the City of San Bernardino and moved on May 1, 2023. Timing of the move...

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