City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: December 4, 2023
FROM: Carmen Gil, City Manager
THROUGH: Carmen Gil, City Manager
SUBJECT: Monterey County Business Council Proposal
RECOMMENDATION
It is recommended that the City Council receive a presentation from the Monterey County Business Council (MCBC) on their proposal to retain a local Small Business Development Center (SBDC), and provide direction on whether to support the effort with $5,000 for the matching part of the grant they are seeking.
BACKGROUND
The Small Business Development Center (SBDC) is a federal, Small Business Administration (SBA) funded program to assist small businesses with resources necessary to be successful. This includes creating business plans, assistance with human resources, access to capital to ensure business owners are creating a solid foundation for their company, and more. Over the last 12 months, SBDC has assisted 839 local businesses in Monterey County.
The SBDC is currently hosted by Cal Coastal (a financial institution) through U.C. Merced (UCM), who manages multiple SBDC’s for the Small Business Administration throughout California. Cal Coastal notified U.C. Merced in October that they are opting not to renew their agreement with UCM for the SBDC designation. The Request for Proposals to host the SBDC was released at the end of October, with a tight deadline to apply by December 15, 2023.
The current SBDC and Monterey County Business Council have worked collaboratively for years, referring business owners back and forth to each other based on the needs of the companies. MCBC has been working in partnership with the County of Monterey to assist businesses recover from the pandemic - the entirely bilingual staff at MCBC is active in all areas of the county, both in seminars and on foot, AGENDA
ITEM
7 engaging businesses. The opportunity to expand those SBDC services to MCBC is a seamless progression for MCBC.
Plan
If selected as the host, the Monterey County Business Council plans to run the SBDC a little differently than its current setup, securing partnerships with the City of Soledad and City of Monterey for satellite offices in South County and Monterey Peninsula, in addition to the home base office in Salinas. This allows business owners to have access to the SBDC services in their area without traveling to Salinas, which is currently the only location. There is also a plan to expand outreach to South County and the Monterey Peninsula, to ensure the assistance to those areas increases dramatically. (See Attachment A.) MCBC currently has bilingual staff, trained in outreach and assistance to businesses – the progression of working as the SBDC is a natural fit.
Funding
MCBC is currently the only local agency applying for the designation. MCBC recognizes the need for the SBDC, and understands that if no one applies, Monterey County loses the Small Business Development Center entirely. There is a local match requirement of $120,000 for the $400,000 federal SBA Small Business Development Center (SBDC) program. There is CA GoBiz (Technical Assistance Program) funding available that the MCBC plans to apply for in 2024 (the current SBDC has it), but with one month to submit the RFP, the MCBC is unable to secure it from the state for the RFP application. The requirement for funding is promissory for the RFP – the local match would only be required if MCBC is awarded the designation.
The efforts of the MCBC have secured $10,000 from the City of Monterey and a satellite location in Monterey, and they are currently asking for financial commitments from multiple cities. The MCBC has confirmation of the following:
Monterey - $10K - confirmed
Carmel - $5K - confirmed
King City - $5K - confirmed
Soledad - $10K and satellite office (going to council for approval on 12/5) Gonzales- $5K (going to council for approval on 12/4)
The MCBC is pursuing additional funding from:
Sand City - $5K
Marina - $5K
Seaside - $5K
Pacific Grove- $5K
Del Rey Oaks - $5K
Greenfield- $5K
The MCBC is requesting that the County of Monterey supplement the remaining amount.
Request of the City of Gonzales
The MCBC is respectfully requesting $5,000 from the City of Gonzales towards the local match requirement, for the Small Business Development Center. The financial contribution to this effort would be contingent upon the grant being awarded to the Monterey County Business Council.
REVIEW AND ANALYSIS
According to records presented by the SBDC to the City of Gonzales, twelve City of Gonzales businesses were served through the Small Business Development Center in 2022. Having such a strong bilingual resource made available for our existing and prospective businesses, is imperative for their continued professional development, growth and success.
Services from a broadly funded and continued program in this region include business consulting, training, events and workshops and even locally produced webinars. As an example, a current focus and program of note by the SBCD is providing childcare training programs for aspiring entrepreneurs interested in starting home daycare businesses. This 12-week childcare course began September 18, 2023, and continues now. Our Gonzales citizens and residents could benefit from such opportunities.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Collaborations such as this with SBDC allow the City to offer these essential human and professional entrepreneurial resources beyond what we could provide otherwise.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: This effort supports the Council’s vision of partnering and sharing regional, local, human and professional entrepreneurial resources to nurture and sustain our community.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: Please see explanation above for the Vision.
Strong fiscal policies allow us to provide appropriate infrastructure for:
Public Safety Yes No X N/A
Housing Yes No X N/A
Recreation Yes No X N/A
Environment Yes No X N/A
Education X Yes No N/A
Explain: Please see explanation above for the Vision.
ALTERNATIVES
1. The Council can decide to support the effort and allow the City Manager to utilize the $5,000 in support of the Center.
2. The Council could decide that it is not in the best interest of City at this time to support the Center, but that could jeopardize their ability to secure the grant due to the tight timeline and the services and functions of a Small Business Development Center will be lost.
BUDGET IMPACT
This will impact the budget by $5,000 which will be covered by the Planning Fund Balance 100-160- 6245.
CONCLUSION
It is recommended that the City Council receive a presentation from the Monterey County Business Council (MCBC) on their proposal to retain a local Small Business Development Center (SBDC), and provide direction on whether to support the effort with $5,000 for the matching part of the grant they are seeking.
Attachments:
1. MCBC Proposal