Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 25, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Economic Development Services Semi-Annual Report
RECOMMENDATION
Receive an update from the South County Chambers of Commerce on the economic development services provided to the City and provide input and direction to staff.
BACKGROUND
On December 2, 2019, the Council approved an agreement with the South County Chambers of Commerce (Chamber) to assist the City with economic development services. The agreement with the Chamber included specific actions related to business attraction, business retention, development of an economic asset website, and creation of a cowork space including an incubation program in partnership with the Cal Poly Center for Innovation and Entrepreneurship.
The agreement included a cost of $120,000 over an 18-month period from January 1, 2020 through June 30, 2021 funded by one-time SB 1090 Diablo Canyon settlement funds for economic development activities. In 2021, the agreement was extended through June 30, 2023 for a total cost of $170,000 funded by American Rescue Plan Act (ARPA) funds (see Attachment 3). These funds are paid through a monthly retainer along with one-time payments for specific activities and with semi-annual reports provided to the Council. This work is done in support of the Economic Development Major City Goal with the FY 2022-23 work program shown in Attachment 2.
The first quarter report from the Chamber was provided to the Council on May 18, 2020 to highlight the Chamber’s work to support the business community in the initial wake of COVID-19 and share the results of an initial survey of businesses to better understand key issues facing businesses.
The Council provided direction to implement a business assistance microgrant program to help local businesses weather the financial impacts from COVID-19 which ultimately provided approximately $700,000 in four rounds of business assistance grants to 92 local businesses from July 2020 to January 2021. Semi-annual reports were provided to the Council on September 21, 2020, February 22, 2021, and October 25, 2021 highlighting key economic activities including the development of a business attraction strategy to continue achieving a resilient and diverse economy in Grover Beach. The Chamber and City identified four specific sectors to focus business attraction activities:
• Construction including engineering and architecture
• Technology companies and businesses that require a broadband fiber network • Cannabis and ancillary businesses
• Tourism-related businesses
As part of this process, the Chamber and City held industry cluster roundtable virtual meetings with specific industry segments to hear from businesses about what the City and Chamber could Staff Report: Economic Development Services Semi-Annual Report Page 2 July 25, 2022
do to help meet their needs. These segments included manufacturing, construction, and cannabis businesses with this outreach designed to assist in development of a Business Attraction Strategy.
The Chamber also provided assistance to 166 businesses for retention and expansion, launching and administering a “Buy Local” gift card program to encourage customer spending at local businesses in 2021 and 2022, developed a new tourism marketing initiative “Visit Grover Beach”, and developed a workforce retention and resiliency initiative in collaboration with SLO Partners.
Attachment 1 is the Chamber’s latest semi-annual report which highlights activities carried out since February 2022. Key activities included:
• Completing the “Buy Local” program which generated a total of $131,624 in funding for local businesses from February through April 2022 with nearly $2.80 in customer spending generated for every $1 in public funds invested
• Launching a new cowork space, called The Launchpad, located on Front Street providing private offices and open workspaces and hosting an aerospace incubator program in cooperation with the Cal Poly Center for Innovation and Entrepreneurship • Hosting roundtable meetings with various industry groups, including cannabis and hospitality and restaurant groups
• Holding local business ribbon cuttings to introduce new businesses such as Sherwin Williams Paint Store, Empower Yoga Studio and Community Boutique, The Launchpad, Beyond/Hello Cannabis Dispensary, and Pono Pacific Kitchen Restaurant • Continuing promotion of the Visit Grover Beach tourism marketing initiative with social media and website platforms. The Visit Grover Beach tourism site was a finalist the Visit California Poppy Award for Best Overall Destination Brand Identity (under $1 Million). • Coordinating childcare grants on behalf of the City, providing nearly $50,000 in grants to local at-home childcare providers and Grover Beach families to support childcare needs in the city.
As part of this update, staff is pleased to introduce the new Chamber President/CEO Kathy McCorry who began with the Chamber in June. Ms. McCorry will present this report and will highlight upcoming Chamber activities, including amplification of Grover Beach branding and tourism marketing, continued local business education and support, as well as continuation of roundtable discussions with local businesses.
FISCAL IMPACT
There is no fiscal impact from this item.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive an update from the South County Chambers of Commerce on the economic development services provided to the City and provide input and direction to staff; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Staff Report: Economic Development Services Semi-Annual Report Page 3 July 25, 2022
Attachments
1. Chamber Economic Development Semi-Annual Report
2. Economic Development Major City Goal Work Program Documents
3. City-Chamber Economic Development Services Agreement Attachment 1
MAJOR CITY GOAL FY 2022-23 WORK PROGRAM
ECONOMIC DEVELOPMENT
GOAL STATEMENT
Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
STAFF LEAD: Matthew Bronson, City Manager; Kristin Eriksson, Deputy City Manager; Bruce Buckingham, Community Development Director
TASK DATE
Business Retention and Attraction
1. Work with Chamber to enable businesses to improve their marketing through digital marketing bootcamps in partnership with SLO Partners
2. Work with Chamber to conduct outreach with local businesses on key issues facing Grover Beach businesses including periodic meetings and surveys
3. Work with Chamber to enable businesses to improve their marketing through digital marketing bootcamps in partnership with SLO Partners
4. Continue to collaborate with regional partner agencies to identify economic development strategies to support regional economy
5. Work with Digital West and Chamber to promote citywide fiber broadband expansion as part of Digital West implementation
6. Work with Chamber to conduct outreach with local businesses on key issues facing Grover Beach businesses including periodic meetings and surveys Tourism Development
1. Begin oversight and construction management for hotel site at 950 El Camino Real
2. Process building permits for 1598 El Camino Real hotel project upon submittal by developer
3. Continue involvement in Grover Beach Lodge project in partnership with lead agency State Parks and issue City permits for initial offsite construction upon plan submittal and approval
4. Work with Chamber to enhance Visit Grover Beach tourism marketing efforts to promote Grover Beach as a desirable coastal destination for a variety of beach uses
Commercial Cannabis Activities
1. Process development and building applications for commercial cannabis businesses upon submittal
June 2023
July 2022
July 2022
July 2022
September 2022
December 2022
January 2023
January 2023
July 2022
July 2022
July 2022
Attachment 2
MAJOR CITY GOAL FY 2022-23 WORK PROGRAM
ECONOMIC DEVELOPMENT
2. Process onsite consumption area applications upon submittal by retailers pending adoption of ordinance allowing use
West Grand Avenue Improvements
1. Process development applications for West Grand Avenue housing and mixed-use projects upon submittal by property owners
2. Pursue streetscape and other infrastructure improvements to improve the appearance and functionality of the commercial corridor
3. Work with Chamber and businesses along West Grand Avenue on outreach and marketing to enhance economic vitality of the corridor.
July 2022
July 2022
July 2022
July 2022
KEY POLICY/OPERATIONAL ISSUES
• Continuation of economic development services contract with the South County Chambers of Commerce to improve business retention, recruitment, and marketing • Continued focus on commercial cannabis industry and hotel development projects given economic activity and development opportunities along with additional tax revenues. • Continue working with Digital West to maximize potential of citywide fiber broadband expansion for attraction of businesses and residents
• Continue City’s involvement in regional economic development strategies to ensure community economic vitality in the future
• Provide greater focus on West Grand Avenue improvements given the level of development interest in housing and mixed-use projects
FINANCIAL RESOURCES REQUIRED
FY 2022-23 Cost Summary
Economic development agreement with South County Chambers of Commerce $70,000 Total $70,000
FY 2022-23 Funding Sources
American Rescue Plan Act funding $70,000
Total $70,000
AGREEMENT BETWEEN THE CITY OF GROVER BEACH
AND THE SOUTH COUNTY CHAMBERS OF COMMERCE
FOR ECONOMIC DEVELOPMENT SERVICES
This AGREEMENT is made and entered into by and between the City of Grover Beach, a municipal corporation (hereinafter called "City"), and the South County Chambers of Commerce, a California non-profit corporation (hereinafter called "Chamber").
WHEREAS, City and Chamber will benefit from business retention and attraction, tourism marketing, and workforce training within Grover Beach;
WHEREAS, Chamber and City have a record of working together to achieve a viable and vibrant business community; and
WHEREAS, Chamber and City desire to continue and enhance those efforts through focused economic development efforts funded by the City.
NOW, THEREFORE, the parties agree as follows:
Section 1. Intent
City and Chamber recognize the strength and successes of collaboration and cooperation. It is the intent of this Agreement to continue the formalized cooperative agreement between the two parties to further the business climate in Grover Beach in an effective and efficient manner. This Agreement describes the scope of services Chamber will provide with funding provided by City during the term ofthis Agreement. This Agreement is not intended to be all-inclusive of all efforts between the parties regarding economic development but does set forth the parties' understanding of the use of the Funding.
Section 2. Term
This Agreement shall remain in full force and effect from July 1, 2021 until June 30, 2023, unless terminated earlier as provided in Section 11 of this Agreement.
Section 3. Funding and Scope of Work
During the term of this Agreement, the City shall provide a total of $170,000 to the Chamber over the term of this Agreement for services and activities shown in Exhibit A along with the estimated timeframe for completion. The City will provide a monthly payment of $8,333 over the first year of this Agreement and a monthly payment of $5,833 over the second year of this Agreement given the timing of the activities shown in Exhibit A.
1 Attachment 3
Section 4. Other Activities
A. Chamber shall also do the following:
1. Ensure no funding provided by City shall be used to support activities that generally serve and benefit only Chamber membership or programs not directly related to the economic development program described in this Agreement;
2. Operate the program hereunder for the general public good for the promotion of business, industry, and trade within City;
3. Make its books and financial records, concerning the funds expended under this Agreement, available to City for inspections, review and audit; and
4. Establish and maintain an accounting system in accordance with generally accepted accounting principles and standards. The system shall detail all costs chargeable to City under this Agreement and shall substantiate all such costs and comply with any applicable State and Federal standards.
B. Chamber shall not use City funding for any of the following:
1. Attempting to influence legislation;
2. Organizing or engaging in protests, petitions, boycotts, or strikes;
3. Assisting, promoting or deterring union organizing;
4. Impairing existing contracts for services or collective bargaining agreements;
5. Engaging in partisan political activities or other activities designed to influence the outcome of an election to any public office;
6. Participating in, or endorsing, events or activities that are likely to include advocacy for or against political parties, political platforms, political candidates, proposed legislation, or elected officials;
7. Engaging in religious instruction; conducting worship services, providing instruction as part of a program that includes mandatory religious instruction or worship, constructing or operating facilities devoted to religious instruction or worship, maintaining facilities primarily or inherently devoted to religious instruction or worship, or engaging in any form of religious proselytization;
8. Any other activity prohibited by any law, rule or regulation or City cannot legally perform or participate in.
2 Section 5. Payments
Chamber shall submit an invoice for each monthly payment for expenditures consistent with this Agreement. City shall provide payment to Chamber within 14 days after receipt of a request.
Section 6. Reporting
A. Chamber, through its Executive Director, and City, through its City Manager, shall meet regularly to collaborate and coordinate economic development strategies.
B. Chamber shall present quarterly reports to the City Manager and bi-annual reports to the City Council at a regularly scheduled City Council meeting on the status of the Chamber's efforts. The reports shall include:
1. Key activities in implementing the tasks listed in Section 3 of this Agreement;
2. Quantitative and qualitative data that measure Chamber's success reflective of key deliverables;
3. Number of City businesses that received direct assistance from Chamber for business retention or expansion;
4. Number of prospective businesses Chamber talked with about relocating to or opening in City; and
5. Chamber staff involved to support the work of this Agreement.
C. Chamber shall provide City Manager with the first quarterly report by September 30, 2021 and provide the first bi-annual report to the City Council by January 31, 2022. The reporting schedule after that point will be determined by mutual agreement by the parties. The Chamber shall also provide a report reviewed by a Certified Public Accountant, itemizing how Chamber expended City's payment specified in Section 3. Such report shall provide separately detailed accounts for each program funded by City and be due no later than 6 months after the end of the term. This provision shall survive the termination of this Agreement.
Section 7. Ownership of Work Product
A. Unless otherwise agreed upon in writing, all reports, documents, or other written or visual material or any other material in any media, including any images, taglines, logos, or other media created or developed by Chamber or any third party contracted by Chamber, in the performance of this Agreement, if paid in whole by the funding provided by this Agreement ("Work Product") shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. All Work Product shall be considered to be "works made for hire," and all such Work Product and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of City without restriction or limitation upon their use, duplication or dissemination by City. Chamber shall not obtain or attempt to obtain copyright protection as to any of the Work Products.
3 B. It is understood and agreed Chamber currently owns exclusively intellectual property rights to its name, committee and event titles, and logos, which will be utilized in the performance of this Agreement, ("Chamber Property"). Chamber reserves all rights, title and interest in Chamber Property, and hereby grants City a revocable, nonexclusive, license to the use of Chamber Property to the extent it becomes incorporated into, and inseparable from, the Work Product.
C. This section shall survive termination of this Agreement.
Section 8. Assignment
This Agreement shall not be assigned by Chamber without the written consent of City.
Section 9. Independent Contractor
At all times during the term of this Agreement, Chamber shall be independent contractors and their officers, employees and agents shall not be employees of City.
Section 10. Personnel
Chamber represents it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. Chamber shall be solely responsible for the work performed by third party contractors, including timely performance and payment.
Section 11. Termination of Agreement
City or Chamber may terminate this Agreement at any time, with or without cause, upon thirty-days written notice to the other party. In the event of such termination, City shall pay Chamber for all costs and obligations reasonably incurred by Chamber in satisfactorily performing its services under this Agreement prior to the date of termination, and such payment shall be in full satisfaction of City's obligations hereunder. City shall not be obligated to pay additional funds after issuance or receipt of such notice.
Section 12. Insurance
A. Chamber shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of Comprehensive General Liability Insurance written on a per occurrence basis with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by Chamber.
B. Chamber agrees to maintain in force at all times during the performance of work under this Agreement workers' compensation and employer's liability insurance as required by law.
C. Chamber agrees to maintain Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol I (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Chamber owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above.
If Chamber or Chamber's employees will use personal autos in any way to perform the Scope of 4 Services, then Chamber shall provide evidence of personal auto liability coverage for each such person.
D. Chamber shall require each of its sub-consultants or sub-contractors to maintain insurance coverage, which meets all of the requirements of this Agreement unless otherwise determined by the City's Risk Manager.
E. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a B+; VII in the latest edition of Best's Insurance Guide.
F. If Chamber fails to keep the aforesaid insurance in full force and effect, then City shall notify Chamber it is a breach of this Agreement and Chamber has three days to cure such breach. If such breach is not cured by Chamber as required in this paragraph, then City may terminate this Agreement or, if insurance is available at a reasonable cost, then City may take out the necessary insurance and pay, at Chamber's expense, the premium thereon. Chamber is under a continuing obligation to maintain the aforesaid insurance irrespective of whether City provides such notification to Chamber.
G. At all times during the term of this Agreement, Chamber shall maintain on file with City's Risk Manger a certificate or certificates of insurance on the form required by City, showing the aforesaid policies are in effect in the required amounts. Chamber shall, prior to commencement of work under this Agreement, file with the Risk Manager such certificate or certificates. The policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees and agents as an additional insured. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty-days' prior written notice to City, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement.
H. The insurance provided by Chamber shall be primary to any coverage available to City. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation.
I. Any deductibles or self-insured retentions must be declared to and approved by City prior to commencing work under this Agreement.
Section 13. Indemnification
Chamber shall defend, indemnify, and hold harmless City, its officials, officers, employees, volunteers and agents serving as independent contractors in the role of City officials (collectively "Indemnitees") from any and all claims, demands, causes of action, costs, including reasonable attorney's fees and court costs,, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, ("Damages") in any manner arising out of or incident to any act or omission of Chamber or any of its employees or its agents in connection with the performance of this Agreement, including without limitation the payment of all consequential damages and reasonable attorney's fees and other related costs and expenses, except for such loss or 5 damage arising from the sole negligence or willful misconduct of any of the Indemnitees; provided, that the obligation to indemnify and hold harmless is only to the extent Chamber or its officers, employees or agents cause the Damages. All duties of Chamber under this Section shall survive termination of this Agreement.
Section 14. Extent of Agreement
This Agreement represents the entire and integrated Agreement between the parties on the matters included herein and supersedes any and all prior negotiations, representations or agreements, instrument signed by all parties to this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.
Section 15. Severability
Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect.
Section 16. Waiver
No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
Section 17. Interpretation
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
Section 18. Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
Section 19. Attorneys' Fees
If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which any be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees, whether or not the matter proceeds to judgment. 6 Section 20. Non-liability of City Officers and Employees No officer or employee of the City shall be personally liable to the Chamber, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to the Chamber or to its successor, or for breach of any obligation of the terms of this Agreement.
Section 21. California Law
This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Luis Obispo, State of California. In the event oflitigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Luis Obispo, State of California.
Section 22. Notice
Whenever it shall be necessary for any party to serve notice on another respecting this Agreement, such notice shall be served by certified mail, postage prepaid, to the addresses below, unless and until a different address may be furnished in writing by any party:
To City: City Manager
City of Grover Beach
154 S. 8th Street
Grover Beach, CA 93433
To Chamber: President/CEO
South County Chambers of Commerce
800 A West Branch Street
Arroyo Grande, CA 93420
Such notices shall be deemed to have been served within seventy-two hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes.
7 IN WITNESS WHEREOF, the paities hereto have executed this Agreement the 1st day of July 2021 , at Grover Beach, California.
CITYO~
By: - ~~----'--'-~'-------
MATTHEW BRONSON
City Manager
Attest:
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WENDI SIMS,
City Clerk · ~2Form: ~ ALE
City Attorney
SOUTH COUN Y CHAMBERS OF COMMERCE
8 EXHIBIT A
SCOPE OF SERVICES
Contract for Services Timeline
Business Retention and Attraction 7 /1/2021- 6/30/2023
Conduct comprehensive survey and roundtable
meetings, of current businesses and corresponding
follow-up with analysis for business retention.
Aggregate and interpret Grover Beach business data
and survey results to implement key business attraction strategy and business engagement liaison for lead
generation, business tours and consultation. Partner
with Workforce Development Board, trade unions,
SLO Partners in Education, REACH, Visit SLO CAL,
and others on business expansion opportunities.
Economic Asset Website: Manage website and update
current assets and opportunities. Digital ads to drive
traffic and generate leads.
Tourism Marketing 7/1/2021 - 6/30/2022
Implement Visit Grover Beach tourism marketing work
including updates and management of
visitgroverbeach.com including search engine
optimization and social media campaigns with creating
and executing content and boosted promotions with 1-2
posts per week.
Workforce Training Scholarships 7/1/2021 - 6/30/2022
In collaboration with SLO Partners, reach out to
businesses and residents of Grover Beach to assess
future workforce needs and promote business and skills
expansion through bootcamp trainings.
Funding
$140,000
($70,000
p er year)
$20,000
$10,000
9