Economic Development and Intergovernmental Relations Committee Meeting - October 22, 2015
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Economic Development and Intergovernmental Relations Committee Meeting - October 22, 2015
On October 22, 2015, the Economic Development and Intergovernmental Relations Committee of the San Diego City Council met to discuss a state legislative update, the seventh annual military economic impact study, the living wage ordinance annual report with proposed amendments, and revisions to the storefront improvement program. The committee heard public testimony, received presentations, and took action on the living wage ordinance and storefront improvement program.
Public Comments & Testimony
- Stephanie Binfin Uto (San Diego Regional Chamber of Commerce) expressed support for the military economic impact study, calling it an invaluable tool for advocacy.
- Christy Hill (Center on Policy Initiatives) praised the living wage program's recovery of over half a million dollars for workers, but asked the committee to request the City Attorney's Office to explain why workers at two recycling companies (Allen Company and IMS Recycling) are not covered under the living wage ordinance.
- Warren Simon declined to speak on the storefront improvement program.
- Stephanie Benvenuto (San Diego Regional Chamber of Commerce) thanked the Economic Development Department for proactively seeking solutions to support small businesses.
Discussion Items
1. State Legislative Update (Mayor's Office and Platinum Advisors)
- Kristen Tilquist (Mayor's Director of State Government Affairs) and lobbyists Moira Topp, Darius Anderson, and Nick Garcia presented an overview of the 2015 legislative year, highlighting successes including SB 107 (redevelopment window bill) which could bring an estimated $235 million to San Diego, and the governor's authorization of AB 900 streamlining for the Chula Vista stadium project.
- Key topics included: transportation funding special session, Cap and Trade funding, affordable housing, water sustainability (including the Pure Water project), CEQA reform challenges, and the extension of Prop 30 (expected to be on the ballot).
- The update covered positions taken on bills regarding medical marijuana, film tax credits, EMS contracts, and the Governor's Military Council.
2. Military Economic Impact Study (San Diego Military Advisory Council)
- Retired U.S. Navy Captains Larry Bloomberg and Randy Bogle presented the seventh annual study, produced by the Fermanian Business and Economic Institute at Point Loma Nazarene University.
- Key statistics: $25 billion in direct defense spending in FY 2015, $45 billion total gross regional product, 328,000 jobs (22% of all jobs in the county), and 49 ships homeported in San Diego, with a projected increase to 84 ships by 2023.
- The study also addressed military compensation: junior enlisted pay (E3–E6) ranges from $40,000 to $60,000 annually including housing allowance, and many families fall below HUD low-income thresholds, correlating with food bank usage.
- Discussion included the need for housing planning to accommodate thousands of additional sailors expected with the Pacific rebalance, and the potential for an Office of Economic Adjustment grant to prepare for BRAC and budget uncertainties.
3. Living Wage Ordinance Annual Report and Proposed Amendments
- Christina Peralta and Nora Nugent presented the FY 2015 report. The program covers 396 contracts worth $52 million (up 170% due to lowered threshold). Compliance reviews increased from 15 to 26, with over half finding violations. Over $146,000 was recovered through proactive reviews, and total historical recovery exceeded $572,000.
- Proposed amendments clarify definitions for compensated leave, update language for state law consistency, and are cleanup provisions only.
- Council President Leitner moved to approve the amendments and also directed the City Attorney to include language to cover emergency medical technicians (EMTs) and paramedics, and to clarify whether recycling workers at Allen Company and IMS are covered. Councilmember Kate and Vice Chair Kercy expressed concern about the legal and policy implications of retroactively applying the EMT provision, and the motion passed despite a split vote.
4. Storefront Improvement Program (Council Policy 900-17) Revisions
- Economic Development Director Eric Caldwell and Neighborhood Investment Manager Liz Studebaker proposed revisions to increase participation: raising the employee eligibility threshold from 12 to 25, eliminating the public art incentive (though artwork remains eligible), adding a new permit assistance incentive, and refining the list of ineligible businesses (excluding banks and national chains).
- Annual funding is $220,000, but prior years saw underutilization (e.g., $56,000 in FY 2013). The changes are expected to increase demand.
- The committee unanimously approved the staff recommendation to send the revised policy to the full council.
Key Outcomes
- Living Wage Ordinance Amendments: The committee approved the proposed amendments (cleanup and state law alignment) and directed the City Attorney to draft language extending coverage to EMTs/paramedics and to clarify recycling worker coverage. The vote was 2–2, with Chair Cole and Council President Leitner in favor, and Councilmember Kate and Vice Chair Kercy opposed; the chair declared the motion carried.
- Storefront Improvement Program: The committee unanimously approved the revised council policy, which will be forwarded to the full City Council for consideration.
- Informational Items: The state legislative update and military economic impact study were received without a vote. The committee requested follow-up on the status of the Chollas Creek funding and the Coastal Resilience and Economic Zone (CREA) legislation.
- The next Economic Development and Intergovernmental Relations Committee meeting was scheduled for November 5, 2015.
Meeting Transcript
Today we're announcing that the city has reached a deal with Sun Edison to install solar energy systems at twenty-five city sites. It's going to consist of rooftop solar panels at select rec centers, libraries, as well as solar installation at canopy parking lots. And in turn, the city will purchase the solar energy generated by Sun Edison system at a locked in rate. Good afternoon. And welcome to the October twenty second, twenty fifteen meeting of the Economic Development and Intergovernmental Relations Committee. Not going to say what I normally say. Let the record reflect that all members are present Vice Chair Kercy, Council President Leitner, and Council Member Kate. Also in attendance are Chief Deputy City Attorney Kevin Reich, Kristen Tilquist, representing the mayor's office, Jeff Coir from the Office of the Independent Budget Analyst, and the committee great committee consultant. We will begin today with approval of the minutes. I see no one pulling it. We will now hear from the public with nine public comment. Okay, moving right along. Any comments from the city attorney, IBA or mayor staff. No, Jeff. Okay. Any committee member comments? Okay, moving right along. Our first item is a report from the Office of the Mayor, Top Strategies and Platinum Advisors Regarding State of California legislative update. They will provide an overview of the 2015 legislative year and highlight how our city priorities, according to our approved program, were addressed. Kristen Tilquist, the mayor's director of state government affairs and innovation policy will be kicking off the item. Joining her are Mora Top, Darius Anderson and Nick Garcia, and welcome to wonderful cool down San Diego. And thank you all for being here today and for also providing the one-on-one briefings. Kristen, the floor is yours. Thank you very much. I'm definitely really proud to welcome you again to reiterate the welcome to our state advocacy team. As you many of you are very familiar with Moira Topp, who's been served us for many years really, really effectively, and also now we're delighted with her uh association with Darius Anderson with Platinum Advisors and with Nick Garcia, also of Platinum Advisors. So we really appreciate the team effort, and I think that is something somewhat to what we attribute uh really really successful year this past year. Uh a couple of things just to say again the pride that the mayor's office has in some of the accomplishments of this year. The for only one I'll really highlight because I don't want to steal the the thunder of what what she'll be presenting is with redevelopment. Um we really were able to um it took well let's say it took months and months, and I said thousands of hours, and that could be a bit of an exaggeration, but certainly hundreds and hundreds of hours of work on behalf of uh on behalf of San Diego by Moira Top on this project to work with our delegation, our San Diego delegation really stood up for us for San Diego, um, especially Marty Block, uh Senator Block and Speaker Atkins, and were able to help us um have the legislation which was not positive for San Diego turned into something extremely positive for San Diego to the tune of um about 235 million dollars estimated so far by our staff. The other um knowledge, I know you can clap, definitely, definitely. Um we I also want to acknowledge actually Kevin Reich, our own deputy city attorney, because he um yes, if you add in his hours of um extreme dedication of pouring over the details of what was happening with um that bill and and working on on language to make it better, it was really incredible, as well as David Graham, who put in a heck of a lot of effort. So it was a real team effort, but um we can't thank you enough for for that real big success. And the other thing I just wanted to mention briefly is that I think that in addition to some of those you know, check off the box items that we were able to accomplish or that the team was able to accomplish. We also did a few low-hanging fruit items where we just really were continuing to raise San Diego's stature and visibility in Sacramento. So we co-sponsored, for example, um, a bill of uh Speaker Atkins on the fisherman's market. So that was uh we we joined in with the chamber and the port and the county and co-sponsoring that bill. So that was uh a good goodwill. Um it's wonderful for this for the city of San Diego, and another one was um the Medal of Valor. There was a bill, and ours both of our chiefs wanted to be involved in it, wanted to support it. The mayor supported it on behalf of the public safety section of our legislative platform, and that went through very well with you know another another good bill that just again got San Diego in the mix and continued to raise our visibility and our credibility in Sacramento. So I think that was very successful, and I really appreciate again um our team, and I'd like to turn it over to them now. Um Madam Chairwoman, um, council members, thank you uh very much for allowing us to be here today. Um we're very honored, and I think uh uh mentioned you know we are team combined with uh Moira and I think uh the combination of the two platforms and uh advisor is really uh is really working well. Uh we had it right here, I think we should be very proud. Because we are only as good as the information that we can get from city staff. We really enjoyed working right now with the city attorney's office, mayor's office, and various folks on the council. So on behalf of all of us that we work in Sacramento, I want to say. Excuse me, there is your mic on? Because we're hearing you, but it needs to be recorded.
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