Economic Development and Intergovernmental Relations Committee Meeting - October 25, 2018

The Economic Development and Intergovernmental Relations Committee of the San Diego City Council met on October 25, 2018, to discuss five agenda items including a banner ordinance, Census 2020 preparation, Civic San Diego's investment plan, worker cooperatives, and the small business ecosystem. The meeting was chaired by Councilmember Chris Ward, with Councilmembers Alvarez and Bree present; Vice Chair Kercy was absent.

Consent Calendar

• The committee unanimously approved the minutes from the September 27, 2018 meeting.

Public Comments & Testimony

• Non-Agenda Public Comment: Jennifer Nelson, Pro Bono Manager at San Diego Volunteer Lawyer Program, described their free legal services for low-income entrepreneurs, focusing on City Heights. Rob Gordon reported on a Strategic Growth Council meeting and a pending $200,000 planning proposal, offering to assist; he also announced a new online forum for regional growth discussions. Joyce Yada urged intergovernmental collaboration and praised the city's handling of a recent housing item.
• Item 1 – Banner Ordinance: Alexander Brinter, representing the Downtown San Diego Partnership, expressed support for the ordinance.
• Item 3 – Civic San Diego Plan: Joy Sunyata, a former CCDC participant, praised the plan but emphasized the need for better outreach. Rick Bates (Unite Here Local 30) criticized the lack of meaningful community benefits in Civic-sanctioned projects, citing the developer selection process for the central library site. Armando Nunez, a carpenter, condemned labor practices and low wages on Civic projects.
• Item 4 – Worker Cooperatives: Rob Gordon supported the concept, shared his experience trying to start a cooperative, and praised the presentation.
• Item 5 – Small Business Ecosystem: Rob Gordon discussed challenges small businesses face with the SBDC's approach to outreach and suggested improving referral systems.

Discussion Items

Item 1: Ordinance to Authorize Banners in Business Improvement Districts

• Proposal: To reauthorize the installation of banners in BIDs and PBIDs, correcting an error in the municipal code from 2008. Modifications allow banners to be displayed for up to six months with a six-month extension, installation by licensed contractors with city-approved hardware, and annual permitting. The responsibility and liability for fixtures remain with the BIDs.
• Deliberation: Committee members asked about liability, community complaint process, and distinction from other banner programs. Councilmember Alvarez clarified that the ordinance applies specifically to BIDs and PBIDs, and existing banner districts are unaffected.
• Outcome: Motion to adopt the staff recommendation by Alvarez, seconded by Bree. Unanimous approval (3-0, with Vice Chair Kercy absent). The item will be forwarded to full City Council.

Item 2: Census 2020 Preparation – Report from State of California Complete Count Office

• Overview: State and local officials presented on the importance of a complete census count for federal funding and representation. Challenges include the shift to an online census, underfunding of the Census Bureau, language barriers, and distrust, especially among hard-to-count communities (e.g., immigrants, people of color, renters, homeless). California has allocated $90 million for outreach, with funding to counties and community-based organizations.
• Key Points: The county of San Diego will be given 90 days to opt in as a fiscal agent for state funds; if not, the city or SANDAG may be asked. Christopher Wilson urged the city to establish its own Complete Count Committee, warning that the county has shown little interest. Councilmembers expressed concerns about the county's past performance and asked about the process for the city to act as fiscal agent.
• Outcome: Informational only; no action taken. Councilmember Ward suggested sending letters to county supervisors and continuing to monitor.

Item 3: Civic San Diego – 2018-2019 Community Investment Three to Five Year Plan (Update)

• Overview: Civic San Diego outlined its plan with four components: financial tools (New Markets Tax Credits, a new $30-50M equity fund for missing middle housing, and formation of a CDFI); business attraction and retention (e.g., BID Access to Capital collaborative with embedded interns); community revitalization and job creation (including a supplier diversity initiative and neighborhood tours); and community engagement (lunch-and-learns, strategic grants).
• Public Concerns: Commenters questioned the effectiveness of community engagement, the lack of robust community benefits agreements, and the prevalence of low-wage, non-local labor on Civic projects.
• Councilmember Comments: Councilmember Ward expressed interest in improving job quality, local hiring, and community benefits, and requested a list of upcoming New Markets Tax Credit opportunities. Councilmember Bree emphasized the need for small businesses to benefit.
• Outcome: Informational; no action taken.

Item 4: Worker Cooperative Overview – Report by Democracy at Work Institute

• Overview: Presenters defined worker cooperatives as value-driven businesses where workers own and govern the enterprise. Benefits include higher wages, wealth building, job tenure, and community investment. Examples included Cooperative Home Care Associates, C-Squared cleaning coop, and Rainbow Grocery. Municipal initiatives in New York City, Madison, San Francisco, and Philadelphia were highlighted.
• Discussion: Councilmember Bree connected this to employee ownership models in tech and suggested connecting with Connect for All. Councilmember Ward asked about obstacles (lack of models, financing, societal bias) and inquired about state/federal support. He noted the potential for legislative advocacy.
• Outcome: Informational; no action taken.

Item 5: San Diego Small Business Ecosystem – Report by SBDC

• Overview: Danny Fitzgerald presented results of a survey of 522 small businesses. Top challenges: getting customers (41%), accessing capital (34%), and lack of awareness of available resources (only 15% had used SBDC services, 32% were unaware). The majority of respondents had under 20 employees and were optimistic about growth. The SBDC network reported $270 million economic impact and almost $40 million in capital accessed in 2018.
• Discussion: Councilmember Bree offered to promote services via her newsletter and Nextdoor, and asked about how to connect minority-owned businesses with city contracts. Councilmember Ward noted the need for better communication and mentioned upcoming outreach for new SBDC satellite offices.
• Outcome: Informational; no action taken.

Key Outcomes

• Item 1 (Banner Ordinance): Approved unanimously and referred to full City Council.
• Items 2-5: Informational; no formal actions. Committee members requested follow-up on census coordination, Civic San Diego's community benefits and job quality, and small business resource dissemination.