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Council rescinds Clutch jobs-and‑talent incentive after firm failed to meet job targets
Summary
By unanimous roll call the council adopted a resolution terminating a previously approved jobs-and‑talent incentive for Clutch after staff reported Clutch did not meet required job creation benchmarks; staff said Clutch acquired or brought other businesses to the city but had no qualifying hires under the original terms.
The City Council voted to terminate the previously approved jobs‑and‑talent incentive agreement for Clutch and to rescind the original approving resolution after staff reported the company did not meet the job‑creation benchmarks required under the program.
Amanda Norton, the city’s economic development director, described the legal requirement under California Government Code to present the public subsidy report and explained that Clutch’s agreement (a five‑year jobs and talent incentive) required new hires at 125% of the city median wage maintained for two years with a $5,000 per‑job payment. "Since this was approved, Clutch has continued to establish its operations here…however, they weren't able to meet the job creation benchmarks that were denoted within the first year of this program," Norton said. Staff recommended terminating the agreement and rescinding the approving resolution.
Council opened the public hearing, heard no public testimony on the item, and adopted the requested resolution to terminate and rescind. Council members recorded a unanimous vote (Sander, Little, Budge, Gatewood, Pulapati) in favor of the staff recommendation.
Why it matters: State law requires public reporting on economic incentive programs and allows councils to rescind incentives when performance conditions are unmet. Staff told the council the company remains a local employer and could pursue future incentives under the city’s revised jobs program, which now offers larger per‑job incentives with different wage thresholds.
Provenance: topicintro: staff report by Amanda Norton (tc 06:28:08) — evidence excerpt: "What we are looking to do is conduct a public hearing that is required for an economic subsidy report…"; topfinish: council vote (tc 06:56:10) — evidence excerpt: "Yes. Thank you."
