New city sponsorship deal valued at $3M

San Diego is expanding its corporate partnership program by forging a deal with California Coast Credit Union that could be valued at $3 million over the next five years.

California Coast, which will replace San Diego Metropolitan Credit Union as a city sponsor, would join a group of corporate partners who generate nearly $1 million a year in revenue and benefits for the city.

They include Toyota, which is providing the city lifeguard vehicles over a four-year period — estimated at a $1 million value. Other partners are Sprint Solutions, Canteen Vending, Service Line Warranties of America and Cardiac Science Corp.

The city nearly negotiated a $350,000-per-year deal for lifeguard gear with Tommy Bahama this summer, but that partnership fell through when the city’s lifeguards labor union objected.

The deal with California Coast, which the City Council’s Budget Committee approved last week, would provide $650,000 cash over the next five years plus services for employees and the community with an estimated valued of nearly $2.5 million.

In exchange, California Coast would become the official financial partner of the city, get exclusive rights to market their services to city employees and retirees, and be included in publicity for city-sponsored community programs.

The five-year deal, which allows the city or the credit union to opt out after three years, must get final approval from the full council next month.

“This is a great example of a mutually beneficial business relationship between an organization and the city,” said Natasha Collura, the city’s director of strategic partnerships.

City officials tout the program as a way to pay for community services, firefighters and police officers without raising taxes.

The city’s deal with San Diego Metropolitan Credit Union, which expired in August, was less lucrative and less beneficial to city employees and the community, Collura said.

That deal paid the city $25,000 per year. In addition, San Diego Metropolitan offered less services and has fewer locations than California Coast, the oldest credit union in San Diego, Collura said.

“San Diego Metropolitan was a great partner to work with, there are just more resources in this program — not just for employees but also for the community,” Collura said.

The deal would provide the city $100,000 in unrestricted cash each year and another $30,000 for park and recreation programs, including some focused on volunteers, fitness and preparing high school students for college.

California Coast will also conduct free financial seminars for employees, waive membership fees, provide special low-interest loans and support recognition events and health fairs for city workers.

Todd Lane, California Coast’s chief executive, said helping employees make sound decisions about their money is key to the credit union’s mission.

“Financial literacy is a big part of what we bring to the table,” Lane said.

Since it was created in 1999, the city’s corporate sponsorship program has generated nearly $20 million. Previous partners have included EA Sports, Ford Motor Company and Evolution Film.