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Home My WebLink About2021-06-15; City Council; ; Formation of Standing City Council Economic Development Subcommittee Meeting Date: June 15, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: David Graham, Chief Innovation Officer david.graham@carlsbadca.gov, 760-434-2992 Subject: Formation of Standing City Council Economic Development Subcommittee District: All Recommended Action Adopt a resolution authorizing the formation of a standing Economic Development Subcommittee of the City Council (Exhibit 1). Executive Summary This report is in response to a May 11, 2021, motion requesting staff to bring back a resolution to form a standing Economic Development Subcommittee of the City Council that would replace the Ad Hoc City Council Economic Revitalization Subcommittee. The attached resolution would approve the creation of the subcommittee and appoint the current members of the ad hoc subcommittee as the inaugural members of the new subcommittee. Discussion Governor Gavin Newsom declared a state of emergency on March 4, 2020, after the first COVID-19 death in the state of California. He directed all “non-essential” businesses to close in the state nine days later. That same day, the city manager, in his role as the city’s director of emergency services, declared a local state of emergency in Carlsbad. The City Council ratified the proclamation the following day. On April 7, the City Council created the Ad Hoc City Council Economic Revitalization Subcommittee. Mayor Hall and Councilmember Bhat-Patel were appointed to the subcommittee. The goal of the subcommittee was to discuss and identify options for economic revitalization throughout the COVID-19 emergency for consideration by the full City Council. The subcommittee had 36 meetings since its creation, generally meeting bi-weekly. During these meetings, discussion included current economic uncertainty, business community outreach, the known impacts that the COVID-19 pandemic was having on the local businesses, and options to support the economy in three phases: response, recovery and revitalization. The subcommittee also provided guidance and direction on programs implemented through the Economic Recovery and Revitalization Initiative. June 15, 2021 Item #9 Page 1 of 5 Economic Recovery and Revitalization Initiative programming, as well as general business support and engagement throughout the response phase of the pandemic was done in collaboration with the Carlsbad Chamber of Commerce, the Carlsbad Village Association, and Visit Carlsbad. Those organizations have met as a group with staff, bi-weekly, since June 2020. Additional business outreach and engagement has included: • Direct response and assistance to more than 650 businesses • Three sentiment surveys that elicited between 109 and 168 responses each • Five virtual stakeholder forums • Seven virtual informative webinars • Thirty-one joint communications to Carlsbad businesses • Regular meetings with peer cities’ economic development staff • Feedback through business intermediary organizations like the chamber, village association, North County EDC, and Regional EDC. As the economy continues to recover and through business engagement points listed above, it became clear that the economic recovery from the COVID-19 pandemic is likely to take months or years depending on the industry, size of business, and ownership structure of the business. The City of Carlsbad needs to have a thoughtful economic recovery and development strategy in place to ensure that efforts properly address the pandemic’s impact across industries and set a foundation for future economic growth. The city does not have an established economic development strategy. A standing Economic Development Subcommittee could guide that recovery process, set strategy and provide ongoing direction for economic development efforts in the City of Carlsbad. Fiscal Analysis Because the subcommittee will be a standing subcommittee and need to comply with the open meeting provisions of the Ralph M. Brown Act there are additional resources that will be necessary. The Innovation & Economic Development Department will be the primary staff supporting the committee. The amount of staff time and resources will vary depending upon the number of meetings and the number of items per meeting. As far as ancillary support, assuming a schedule of approximately eight meetings per year, the audio and visual support will cost approximately $2,600 to $3,000. The City Clerk’s Office will provide support for document routing and distribution, agenda posting, correspondence management and records retention in collaboration with staff from the Innovation & Economic Development Department. It is estimated that this administrative support will require about 15 to 20 hours per meeting. The staff resources and administration costs to support the new committee can be accommodated in the FY 2021-22 budget. Next Steps Should the City Council adopt the resolution contained in this item, staff will work to schedule the first meeting and develop a schedule of regularly occurring meetings. Environmental Evaluation (CEQA) This action is not a “project” as defined in California Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5) because it involves administrative activities of government that will not result in direct or indirect physical changes in the environment. June 15, 2021 Item #9 Page 2 of 5 Public Notification and Outreach Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. City Council resolution June 15, 2021 Item #9 Page 3 of 5 RESOLUTION NO. 2021-148 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE FORMATION OF A STANDING CITY COUNCIL ECONOMIC DEVELOPMENT SUBCOMMITTEE WHEREAS, on April 7, 2020, the City Council adopted Resolution No. 2020-058 authorizing the formation of the Ad Hoc City Council Economic Revitalization Subcommittee to provide direction on response, recovery, and revitalization programs during the COVID-19 pandemic; and WHEREAS, the Ad Hoc City Council Economic Revitalization Subcommittee has met 36 times since its inception; and WHEREAS, economic conditions are improving from the deepest impacts of the COVID-19 pandemic and corresponding health orders, with most economists projecting continued economic recovery; and WHEREAS, the City Council of the City of Carlsbad, California has determined that formation of a standing Economic Development Subcommittee is needed to receive information and advise the City Council on economic recovery and development Matters; and WHEREAS, on May 11, 2021, the City Council passed a motion to form a standing Economic Development Subcommittee to replace the Ad Hoc City Council Economic Revitalization Subcommittee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That a standing Economic Development Subcommittee comprised of the following two City Council members is hereby formed: a.Mayor Matt Hall b.Council Member Priya Bhat-Patel 3. That beginning in 2022, and in each year thereafter, members of the City Council shall be appointed to the Economic Development Subcommittee upon reorganization of the City Council, pursuant to Carlsbad Municipal Code Section 2.04.100. 4. That the purpose of this subcommittee is to provide ongoing guidance on economic recovery and development programs and strategies for the City of Carlsbad. 5. That the duties of the subcommittee will be to guide: a.Creation of a long-term, inclusive economic recovery and development strategy b.Coordination with Carlsbad business organizations c.Development of workforce and talent programs and initiatives d.Evaluation of economic impact of citywide policy e.Other programs and initiatives as approved by the City Council June 15, 2021 Item #9 Page 4 of 5 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 15th day of June, 2021, by the following vote, to wit: AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. MATT HALL, Mayor j ig(' (h,„„e,ifro 1cP1- BARBARA ENGLESON, City Clerk (SEAL) June 15, 2021 Item #9 Page 5 of 5 Formation of Standing City Council Economic Development Subcommittee David Graham, Chief Innovation Officer June 16, 2021 Recommended Action •Adopt a resolution authorizing the formation of a standing Economic Development Subcommittee of the City Council 2 Minute Motion May 11 •Directing staff to return to the City Council with an action to create a standing City Council Economic Development Subcommittee 3 Ad Hoc Subcommittee •Formed April 7, 2020 to address economic revitalization in response to COVID-19 •Goals –Identify options for economic revitalization through the pandemic •Subcommittee held 36 meetings with the final meeting on June 14 4 Ad Hoc Subcommittee •Developed a City Council approved the Economic Recovery and Revitalization initiative including: –COVID-19 Small Business Loan Program •$1.7m in loans and zero defaults –Gift Carlsbad –Tenant and landlord mediation and renegotiation partnership –32 Joint communications to every business in Carlsbad –Including one issued today –Direct support to 650+ businesses –#staysafestayopen campaign –Building permit extensions –Temporarily suspending land use rules and fees for outdoor activations –State Street activation business engagement and survey –Inclusive economic recovery assessment –Served as the vetting body for resident, business, and business organization ideas 5 Economic Development Committee •The Economic Development Committee will guide: –Creation of a long-term, inclusive economic recovery and development strategy –Coordination with Carlsbad business organizations –Development of workforce and talent programs and initiatives –Evaluation of economic impact of citywide policy –Other programs and initiatives as approved by the City Council 6 Economic Development Committee •Similar to previous ad hoc committee shift to standing committee the City Council must act on the initial committee membership –Mayor Matt Hall –Councilmember Bhat-Patel •Beginning in 2022 and each year thereafter members of the City Council shall be appointed to the subcommittee pursuant to Carlsbad municipal code •City Council is voting on the purpose and direction of the subcommittee and may choose to provide additional direction 7 Recommended Action •Adopt a resolution authorizing the formation of a standing Economic Development Subcommittee of the City Council 8