Rules and Economic Development Committee - June 5, 2013: Small Business Programs Workshop
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Rules and Economic Development Committee - June 5, 2013
The Rules and Economic Development Committee held an informational workshop on the City of San Diego's small business programs. Presentations were given by city staff from the Economic Development Division and by Dr. Ruben Garcia, Chair of the Small Business Advisory Board and U.S. SBA District Director, covering existing programs, performance metrics, and proposals for improvement.
Public Comments & Testimony
- Rory Moore, CEO of ComNexus, spoke in support of the city's partnership with EvoNexus, a tech incubator downtown. He highlighted that with very little public funding ($25,000 initially), the incubator has supported 27 companies, raised over $150 million in venture capital, and created jobs. He urged continued city support and noted that startups are being recruited from the Bay Area.
Discussion Items
- City staff presented multiple programs: the Storefront Improvement Program (annual budget $220,000, average incentive $5,000, 15 applications so far with 7 receiving funds), Small Business Ambassador (Lisa Gordon Hosh) provides outreach and administers the Small Business Development Program (347 businesses served over 3 years, 73 certified as small local business enterprises, $710,428 in contract awards), Small Business Liaison (Lila Iskandar) helps with permitting and acts as an ombudsperson, the Enterprise Zone (assisted 36 companies, $584 million invested, 1,700 jobs created), Revolving Loan Funds ($8.1 million loaned, leveraging $63.8 million), and Foreign Trade Zone.
- Committee members (Alvarez, Faulconer, Kersey) asked about program utilization, marketing needs, and metrics. They noted the Storefront Improvement Program has had a fixed budget for five years and is underutilized; staff cited need for dedicated marketing personnel. The Enterprise Zone was described as the city's top incentive tool, but threatened by state legislation. Councilmember Faulconer requested that staff provide a list of regulatory changes that could improve business climate. Councilmember Kersey asked about the clean tech initiative and electric vehicle parking.
- Dr. Ruben Garcia, wearing a second hat as SBA District Director, described SBA programs (loan guarantees, management assistance, government contracting, disaster relief) and raised a specific concern: a disabled veteran small business owner (Alex Galicia) faced high surety bond costs that made a city contract unprofitable. Garcia suggested the city explore partial bonding or adjust bonding requirements.
Key Outcomes
- The committee requested that Council Policy 900-15 (Small Business Enhancement Program) be reviewed and updated at the R&ED Committee before its expiration on November 13, 2013.
- The committee requested that Council Policy 900-17 (Storefront Improvement Program) be reviewed and updated at the R&ED Committee.
- The Chair of the Small Business Advisory Board was asked to report back to the R&ED Committee with suggestions for regulatory relief after the Board's annual outreach meeting in October 2013.
- The Mayor's Office was asked to review and consider renewal of the Strategic Alliance Memorandum with the U.S. Small Business Administration.
- The Mayor's Office was asked to work with the Committee Consultant and appropriate city staff to explore possible adjustments to surety bonding regulations.
- The committee also discussed the need for better performance metrics and marketing of small business programs, and indicated that the economic development strategy would be brought back for review.
Meeting Transcript
Welcome to today's meeting of the Rules and Economic Development Committee. Let the record reflect that we have a quorum consisting of Vice Chair Faulkner, Councilmember Kerzy, Councilmember Alvarez, and myself, Councilmember Emerald will not be joining us this morning. Also with us is uh committee staff, including Priscilla Degard from the Office of the City Attorney, Jeff Coir from the Office of the Independent Budget Analyst, Francisco Estrada from the Mayor's Office, and Nika Bukulova, committee consultant. Thank you all for begin being here this morning. We're going to begin with non-agenda public comment. And we have none. And we have no comment on regulatory streamlining open government and economic development. So moving on to committee comment. I sure hope so. I do too. Okay. Our first order of business is approval of the minutes from our meeting on May 15th and 2013. They are deemed approved unless there are additions or corrections. Any additions or corrections? We do not have a consent agenda, so moving on to the first item on our agenda. Item one is informational workshop on the City of San Diego's small business programs. We have a presentation from the Economic Development Division regarding the City of San Diego's small business programs. As you all know, small businesses make up over 90% of the business in San Diego. They are the little engines that drive our economy. One of this committee's priorities is being proactive in coming up ways up with ways to attract, retain, and grow our small businesses. And we need to do everything we can to make sure these fledging fledgling businesses have all the tools necessary so that they can grow and flourish. We as a city realize that there is more we can do for our small businesses from our restaurants to our high-tech startups to our retail shops. And in order to do right by our small businesses, we really have to listen to them. We need to know which programs are available for small businesses, how they work, and how we can improve them. With that in mind, we have asked our city staff to come and provide a status report regarding our small business programs. And I look forward to your presentation. And I hope that we can do this on a regular basis moving forward. Not every month, but you know. I'd like to get uh some metrics in place so we can see how we're progressing with our programs. In terms of logistics, we've broken up today's items, uh, today's item into two parts. The first will be the presentation from our city staff, who I will introduce shortly, followed by this second part, um, which will be a presentation from Dr. Ruben Garcia. He's chair of the city's small business advisory board and also the district director of the United States Small Business Administration Administration. I welcome Tom Tomlinson, the Interim Development Services Director, Amy Gowan, Assistant Deputy Director of the Economic Development Division, and Meredith Dibden Brown, Community Development Coordinator. These are great titles for the Economic Development Division. They are joined here today by Lisa Gordon, small business ambassador for the City of San Diego, and Lila Iskada Iskandar, and she can correct that if I didn't make that. Small business liaison in the development services department. Russ Gibbons is also here from uh the Bear team. Um I also understand our sitting front row and center is Rory Moore, the CEO of ComNexist. Thank you all for being here today and uh look forward to the presentation. I know it's a long one. Yes, thank you. Tom Tallinson, Deputy Director of Economic Development Project Management for today. Beginning Monday, I will be the interim DSD director uh as Kelly is departing, Mr. Broughton, and then uh they will conduct a full recruitment for his replacement. Thanks for clarification. Sure, sure. Um Monday. Um thank you for having us. As you can see, we brought the troops because we want to answer all questions and be as comprehensive as we can today.
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