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Mayor cancels PEDCO contract; council debates timing and options for economic-development services
Summary
The mayor announced cancellation of the city's contract with PEDCO with 90 days' notice; council members clashed over timing, transparency and whether council can reinstate or negotiate a new, reworked contract. City attorney said a new contract could be negotiated and brought back to council for approval.
PUEBLO, Colo. ' The mayor announced the administration has given 90 days' notice to end the city's contract with the Pueblo Economic Development Corporation (PEDCO), setting off an extended council debate over timing, oversight and next steps for the city's economic-development work.
What was announced: Council President said the administration decided to cancel PEDCO's contract (the agreement dates to 2008) and that the press release's implication of unanimous city official support was incorrect. City attorney Carla Sykes told the council the contract requires 90 days' notice for termination and that, although the contract has been canceled, council can direct staff to negotiate a new contract and bring it to council for approval.
Council response: Several council members, including Councilor Flores, criticized the timing, saying the move risks creating confusion for local employers and could harm ongoing negotiations with major employers. "This timing is so bad," one councilor said, arguing the city risks creating doubt among prospects and current partners. Multiple councilors said they would support reopening negotiation of a contract with PEDCO so long as any new agreement includes clearer reporting and measurable return-on-investment provisions.
Administration rationale and next steps: The mayor's office and supporters said the existing contract has deficiencies because it predates more recent accountability practices and needs to be rewritten so the city can track how public funds are spent and quantify returns in sales tax and other metrics. The mayor offered to discuss the executive-session material that informed the decision if council waived executive-session confidentiality.
Legal and procedural context: City attorney Carla Sykes said the mayor followed the charter in exercising contract authority and that council retains the power to authorize and approve contracts; if council wants PEDCO reinstated or a new contract negotiated, the matter can be brought to council as an ordinance or resolution.
Service continuity: Officials noted the PEDCO contract has been nonexclusive historically and that PEDCO may continue many economic-development activities without a city contract; however, council members expressed concern about a possible gap in city-funded economic-development support after Jan. 1, when the 90-day window expires.
What remains unresolved: Council did not take a formal vote on reinstatement Monday; several councilors asked staff to explore options for negotiating a new, more tightly specified contract and whether any interim measures are necessary to preserve ongoing recruitment and retention efforts.
