DRIVING A STRONG ECONOMY COMMITTEE

Report

November 24, 2003

 

Members Present:         Chair Forrest Williams, Vice-Chair Terry Gregory, Councilmember Chuck Reed, Councilmember Judy Chirco

 

Staff Present:                Mark Linder, Paul Krutko, Brian Doyle, John Weis, Laurel Prevetti, Jean Hamilton, Jose Obregon, Katy Allen, Stephen Haase

 

The meeting was convened at 1:33 p.m.

    

 

1.                  Discussion on the Small Business Policies/Programs (Office of Economic Development)

 

Paul Krutko, Director, Office of Economic Development (OED) presented this staff report.  This report summarized activities undertaken by OED since January 2003 in support of small business growth and development.  Significant accomplishments in several key economic development programs were:

·        Small Business Opportunity Program –Implementation of tracking of small businesses;

·        Chambers of Commerce –Amended contracts where compensation is 50 percent from business technical assistance and 50 percent from documented job generation through City programs;

·        Business Associations –Assisting in start up of new associations and increasing memberships;

·        Enterprise Zone –Outreach meetings to 131 businesses and 810 vouchers issued for hiring tax credits;

·        San Jose Entrepreneur Center – Staff presentations regarding loan programs and the Enterprise zone; and

·        Business Outreach and Training –Staff organized a resource fair for small businesses.

 

Chair Williams stated that small businesses expectations for City help seems to be in the form of grants and asked what kind of direct support is available for small businesses.  Paul Krutko responded direct assistance is available in the form of the loan programs providing expansion or creation of a new business.  Technical assistance with the permitting process, or guidance through the code and regulation processing is also provided.

 

Jose Obregon, Director of General Services Administration (GSA), stated that GSA informs businesses of the types and kinds of purchases the City makes to allow them a competitive opportunity to serve as a vendor for the City.

 

Katy Allen, Director of Public Works (PW), explained that PW has also done outreach to the community regarding the department’s online bid hotline.  This type of outreach is an automatic notification of City jobs available to bid on, and includes consultant positions as well.

 

Councilmember Reed requested that the number of members in each of the ethnic chambers of commerce be listed within the report.  Paul Krutko agreed to provide this on future reports.

 

Chair Williams asked what type of measurement is in place for the funding provided to the chambers.  Paul Krutko responded that the contract with each chamber is performance based. Funding is provided after the chamber has provided a service, such as a referring a business within the Enterprise Zone to OED for voucher issuance or sponsoring events directed at helping businesses.

 

Vice-Chair Gregory expressed concern about the lack of performance in job creation activities by the chambers. Paul Krutko described what the contract requires; job placement,  referrals to the City’s Enterprise Zone and Workforce Investment Program and that staff has engaged in extensive meetings and counseling to the chambers to assist them

 

Vice-Chair Gregory stated expectations and benchmarking desired outcomes should be contained within the contract to measure actions.  Paul Krutko responded that the tracking of the businesses that participate in training offered by the chambers is the next step in measuring what kind of results come from a particular training or seminar.  Vice-Chair Gregory asked what position or recourse does the City have when a particular chamber does not comply with the contract.  Paul Krutko responded that funds are not dispersed to a chamber as outlined in the performance-based contract.  Vice-Chair Gregory asked that Silicon Valley San Jose Chamber of Commerce be reported out in detail on future reports and for detailing of the type/number of staff to provide the outlined services. Paul Krutko agreed to include on future reports.

 

Councilmember Reed asked why should the City contract with different business chambers.  Staff responded that the chambers have outreach and networking capabilities in connecting businesses with city services. Councilmember Reed stated that original funding was provided to the chambers as organizational support without any performance requirements and acknowledged that Council has directed staff to amend the contracts to require that activities be performance based in support of the City’s economic development efforts.

 

Upon motion of Councilmember Reed, seconded by Vice-Chair Gregory, the Committee accepted staff’s report “Small Business Policies/Programs”.

 

 

2.                  Proposed amendments to the Sign Code to reduce and simplify sign regulations in industrial and commercial zones (Planning, Building & Code Enforcement)

 

Laurel Prevetti, Deputy Director of Planning, Building & Code Enforcement, and Jean Hamilton, Principal Planner of Planning, Building & Code Enforcement presented this staff report.  The Mayor and City Council directed staff to bring forth changes to the Sign Code that would reduce and simplify regulations for signage and eliminate regulation in areas no longer necessary.  The goal is to create more consistency in regulations across districts, allow for additional attached and freestanding signage, and create greater opportunities for signage for San Jose’s businesses.

 

Councilmember Reed suggested staff should identify the top ten complaints from customers to streamline staff time and work to eliminate them.  Staff responded that this is ongoing and would help to reduce processing time.

 

Chair Williams asked if any type of outreach was done to the real estate community and asked how outreach was coordinated.  Staff responded that these proposed changes did not affect the temporary signage used in the real estate industry so no outreach was done directly to them.  Outreach will be accomplished electronically and via the phone, utilizing the comprehensive database the Planning Department maintains.  Chair Williams asked how the proposed amendments affect customers.  Staff responded that the proposed amended ordinance would allow for more signage opportunities to businesses, eliminate unnecessary restrictions and create consistency between the different commercial districts throughout the city.

 

Shozo Kagoshima, General Manager from the Winchester Mystery House commented on the need for signage regulations to consider existing businesses such as his, which are being overshadowed by newer development, such as Santana Row, across from his business. Improved signage is necessary for his business to be easily identified.

 

Upon motion of Councilmember Reed, seconded by Vice-Chair Gregory, the Committee accepted staff’s report “Proposed Amendments to the Sign Code”.

 

Mark Linder, Assistant City Manager, discussed the need to defer the one report agendized for the next committee meeting on December 15th.  The committee agreed to defer that item to its January 26th, 2004 meeting, and that there would be no Driving a Strong Economy Committee meeting for December 2003.

 

3.         Oral Petitions

None

 

 

 

4.         Adjournment

The meeting was adjourned at 2:40 p.m.

 

Forrest Williams, Chair

Driving a Strong Economy Committee