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HomeMy WebLinkAbout1997-08-06MINUTES CITY COUNCIL/REDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 7:30 AM - Pacific-B Room Waterfront Hilton Resort 21100 Pacific Coast Highway Huntington Beach, California Wednesday, August 6, 1997 An audio tape recording of this meeting is on file in the Office of the City Clerk. CALL TO ORDER Councilmember Garofalo called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 7:50 a.m. in the Pacific-B Room, Waterfront Hilton Resort. ROLL CALL Present: Julien, Harman, Bauer, Green, Garofalo Absent: Dettloff, Sullivan (CITY COUNCIL/REDEVELOPMENT AGENCY) JOINT MEETING BETWEEN CITY COUNCIL AND ECONOMIC DEVELOPMENT TASK FORCE "RED TEAM" (460.30) Opening Comments by Councilmember Garofalo At Councilmember Garofalo's request, meeting attendees introduced themselves. Councilmember Garofalo welcomed those in attendance to the third meeting this year of the Economic Development Task Force "Red Team." Councilmember Garofalo stated that if the community is to survive economically and socially, the areas of technology, tourism, and trade need to be emphasized. Councilmember Garofalo introduced Mayor Bauer. Welcome and Introduction of Speaker by Mayor Ralph Bauer Mayor Bauer stated that Huntington Beach is a powerhouse of economic activity, pointing out that Huntington Beach had the highest increase of any city in Orange County in assessed valuation (5.39% increase); there are 62,000 jobs in Huntington Beach with an anticipated addition of 3,000 - 4,000 additional jobs within the next four years; Huntington Beach has the closest proximity to the five major airports in Southern California; Huntington Beach is adjacent to the world's largest harbor 164 Page 2 - Council/Agency Minutes - 08/06/97 complex; next year the amount of sales tax in Huntington Beach will be $18.3 million; Council and department heads have adopted a new proactive corporate management style and have agreed upon a set of goals for Huntington Beach; the number of city employees per capita has declined from 5.2 to 4.7 employees; and Huntington Beach has a world class library, a critically acclaimed art center, award winning schools, and a superb parks system as well as maintaining the status of America's safest large city. At Mayor Bauer's request, the following documents were distributed to the audience: Economic Development Summary dated August 4, 1997 and Huntington Beach - New Housing Status Report - Mayor Ralph Bauer -August 6, 1997. Mayor Bauer introduced Mr. Tim Cooley, Executive Vice President, Strategic Initiatives at the Orange County Business Council. Mr. Cooley expanded upon the areas of technology, tourism and trade discussed earlier by Councilmember Garofalo, noting that these are the motivators for Orange County. He stated that overarching technology, tourism and trade is the concept of innovation. Mr. Cooley presented a slide entitled Orange County - Center of Innovation on Southern California's Technology Coast and stated that when Orange County is viewed as a sphere of influence rather than a geo-political entity, it is a sphere that radiates 50 miles in every direction. He stated that this area has the greatest concentration in the world of research, development, and commercialization of technology (e.g., research universities; projected, absolute employment growth and company growth; qualified and trained work force in the areas of technology, manufacturing, and trade). He stated that Orange County is an incredible area for innovation known worldwide. Mr. Cooley informed the audience that the Orange County Business Council has become the most vocal spokes mechanism for business advocacy in the county and is comprised of the following three divisions: Public Affairs, Economic Development, and Strategic Initiatives. He stated that the purpose of Strategic Initiatives is to look at long-term trends and put in place today thinking that will have dramatic effects in the future. Mr. Cooley stated that Strategic Initiatives views economic development as the "third wave of economic development," a different perspective than that of other economic development organizations. He stated that instead of counting the number of jobs, Strategic Initiatives is looking at the quality of jobs, jobs that can support asset values (retail sales level, personal and commercial property). He stated that instead of merely creating jobs, the issue of increasing the regional competitiveness of this area needs to be addressed. He explained that this involves government regulations that understand industry's way of doing business and putting together resources that support industry (e.g_, curriculum at the universities, professional service providers with expertise in those industries). Mr. Cooley presented a slide entitled "Be Careful What You Read' and again noted the importance of looking at the quality of jobs. Via a slide entitled "Two Faces of the Coin," Mr. Cooley displayed statistics on high tech and professional service companies in Orange County from 1988 to 1995. Referring to a slide entitled "Looking Behind the Numbers," Mr. Cooley discussed county employment statistics and noted that the number of professional services jobs has remained level for eight years; the number of technology and manufacturing jobs has declined 27%. He stated that this reflects a loss in technology employment of 90,511 jobs (27,000 of those jobs can be attributed to 165 08/06/97 - City Council/Redevelopment Agency Minutes - Page 3 the aerospace and defense downturn). Average wages have increased from $32,006 to $43,900 in the jobs that the county has lost; wages for the jobs that the county has retained have increased from $30,000 to $36,000. He added that inflation over that same period of time has averaged 3.4% and noted that the county is not keeping up; wages are stagnant at the 1993/94 level. He stated that unless concern is generated regarding the quality of jobs, more of this county will become affordable for the wrong reasons. Mr. Cooley presented a slide entitled "Nigh Tech Us. Tourism Employment in Orange County" and stated that jobs lost in manufacturing have been transferred to tourism. He questioned whether those jobs provide the same asset value. Mr. Cooley stated that Strategic Initiatives is currently establishing a Technology Innovation Council which is looking at what exists in the Orange County area that supports the creation of technology and entrepreneurial businesses, the businesses that over time will create employment and balance in the economy for the county. If manufacturing jobs are created, jobs are also created in the supplier, professional service, and personal service networks. He noted the importance of creating a balanced system in the job mix. Mr. Cooley stated that the Technology Innovation Council is looking at the "entrepreneurial ecosystem" and determining what are the ingredients that create a healthy environment for new jobs --taking the technology, university and company research, and management talent and combining them with the financial element and putting it all under an umbrella of an infrastructure. This infrastructure would support transportation and government regulations and allow Orange County to become a center of innovation, technology and trade. He stated that the Technology Innovation Council is putting together a network of technology incubators in Orange County and discussed the establishment of incubators at UCI, the City of Anaheim and via a land developer in South County. He stated that a technology innovation center will anchor the various incubators and act as a focal point and a resource center for technology entrepreneurs. Mr. Cooley presented a slide entitled "Technology Industry Cluster Development" and discussed factors involved in the technology business, e.g., the incubator system, the support network, the advisors, the business networks, and curriculum development at the universities (what is needed to support industry clusters, what type of trained work force is needed, what type of training is needed at the universities, technology transfer out of the universities). He stated that the end result is the ecosystem that will be created in Orange County. Referring to a slide entitled `Technology Innovation Centers In The Works,"Mr. Cooley discussed support organizations including Beckman Laser Institute, Microfab, Photonics TCI, and the community colleges. Mr. Cooley presented a slide and discussed other programs in which Strategic Initiatives is involved (Ongoing Regional Competitiveness Planning, Industry Cluster Development, Defense Adjustment Programs, El Toro MCAS Reuse Planning, University/Business Linkages, Advanced Transportation, Ongoing Research and Analysis). Included in a slide entitled "Research Analysis" and discussed by Mr. Cooley were trend analysis in industry clusters in Orange County; feasibility/market demand study for incubators in Orange County; a study undertaken to determine what a company over the next 5, 10, 15 years will need in terms of research, training, infrastructure, supplier networks, etc.; and regional competitiveness studies. 166 Page 4 - Council/Agency Minutes - 08/06/97 Mr. Cooley referred to a slide entitled "What Else Are We Monitoring And Involved In" and discussed: The changing nature of the workplace and its effects --how reducing the number of employees will affect the construction of large office complexes as opposed to flexible office complexes; how employee reduction will affect movement on the freeway; telecommuting The regulatory climate in Orange County --leadership: Mr. Cooley stated that leadership should be comprised of the industrialists, the entrepreneurs, the business people; however, on a countywide basis, this trend has not emerged in Orange County as it has in other areas of the country. Mr. Cooley stated that his group is working on the concepts of grassroots leadership and "Civic Entrepreneurs." Changing demographics in Orange County and the ramifications on the regional economy --ethnic diversity is one of the county's greatest strengths in terms of international trade. Quality/value of jobs vs. absolute number of jobs Regional aspects of economic planning and development --how Orange County fits in with and competes on state and international levels uestions and Answers Councilmember Garofalo referred to the incubator concept and asked Mr. Cooley if such a relationship is feasible between the Huntington Beach City Council and the community colleges relative to job training. Mr. Cooley responded that the community colleges are geared to training the work force. He stated that once the needs of industry are defined, the community colleges should train for competency in the jobs that industry requires. He stated that his group is researching development of a delivery vehicle for job training and that the cities and community colleges play a key role in this development. Mayor Bauer stated that Orange County has 31 cities that are rather unique and very independent and that he does not sense that the cities' leadership feel integrated in the activities that have been discussed by Mr. Cooley. He asked Mr. Cooley to explain how the cities can become more involved in the activities of Strategic Initiatives. Mr. Cooley responded that Mike Noonan of the Orange County Business Council is currently interfacing with city managers. He also pointed out that forums such as the one held today provide information to city representatives and topics for discussion at future meetings. Mayor Bauer stated that it appears the cities should be taking a more active role and can contribute something unique to the process. Mr. Cooley concurred and stated that a method should be developed to ensure more city involvement. Harriett Wieder stated that she finds missing from the incubator concept the building of markets for local businesses beyond the shores of this country, i.e., exports and international marketing. Mr. Cooley responded that while there are a number of organizations (e.g., World Trade Center, the International Marketing Association), his group is attempting to establish a more direct connection to international trade by working on a consulting and mentoring network for companies and working with the colleges and universities in the area of international trade. 167 08/06/97 - City Council/Redevelopment Agency Minutes - Page 5 A representative from McDonnell Douglas Boeing stated that, in support of Mr. Cooley's statement that more technology is necessary, his company has hired 80% to 90% of its employees from out-of-state. He stated that the Orange County area does not have a base of education and technology to provide qualified employees for his company. Mr. Cooley explained that one of the components of the Technology Innovation Center will be a shared educational extension center with UCI, Cal State Fullerton, and Cal State Long Beach to work with entrepreneurs and train large numbers of people. Alice Gempsa, Mayor, Los Alamitos, stated that the concept of a global economy was discussed at a recent statewide League of California Cities meeting and that cities or regions not involved in a global economy will become "affordable." She stated that cities should become more involved in international relations, e.g., an international airport. Mr. Cooley concurred and discussed information relative to the future of the airport in South County. Mr. Cooley discussed the concept of an information infrastructure and stated that cities in the county should meet and decide what resources are available for the schools and cities. A representative from the City of Yorba Linda expressed his agreement with the concepts presented by Mr. Cooley and discussed his experiences in implementing these concepts in his city. Councilmember Garofalo discussed economic activity in Huntington Beach (e.g., Sharp Electronics, Unisource, McDonnell Douglas Boeing). He stated that there is one economy; the challenge should be to have "one county, one people." He asked Mr. Cooley if any innovation exists regarding subdivision management, i.e., consolidation of governments. Mr. Cooley responded by stating his opinion that there should be fine cities in Orange County and outlined the boundaries of each city. Mayor Bauer stated that cities need to become more involved in outreach and integrate themselves into the activities of the Orange County Business Council. He thanked Mr. Cooley for his presentation_ 168 Page 6 - Council/Agency Minutes - 08106197 ADJOURNMENT - CITY COUNCILIREDEVELOPM ENT AGENCY The Mayor adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, August 18, 1997 at 5:00 p.m. in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: Connie Brockway City Clerk/Clerk Carrol Gibbons Deputy City Clerk/Clerk Connie Brockway City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach, California Carrol Gibbons, Deputy City Clerk/Clerk Mayor/Chairman 169