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San Fernando council terminates Mall Association contract and forms ad hoc to consult businesses on Area B funds
Summary
After concerns about transparency and missing reconciliations, the council unanimously voted to terminate the 1984 Mall Association agreement and formed an ad hoc committee to consult businesses on how Area B (mall) funds should be used going forward.
The San Fernando City Council voted unanimously on Nov. 10 to end the city’s long‑standing management agreement with the San Fernando Mall Association, citing a lack of financial reconciliations and questions about representation of businesses in the assessment district.
Councilmember Joe Fajardo said the Area B merchant district had drifted from its original intent and that the city should return oversight and decision‑making to a process that includes all businesses. The council acknowledged a letter from the Mall Association treasurer indicating the association’s board agreed to termination.
By roll call vote all five councilmembers approved issuing the contract termination notice as prescribed by the agreement. The council then unanimously approved reformulating the prior MOU ad hoc into a 'San Fernando Mall and Area B Funds Ad Hoc' whose explicit scope is to engage businesses in the improvement area about future spending priorities. Council clarified that any outstanding reimbursement claims from the association will be reviewed through the normal staff and council process rather than routed exclusively through the ad hoc.
Staff noted the Area B account had an available balance (discussed in the meeting) and that any future use of funds would come back to council after outreach to businesses. The ad hoc will develop outreach steps (letters, calls, meetings) and bring recommended processes to the full council.
