SR 12-05-2017 8A
City Council Report
City Council Meeting: December 5, 2017
Agenda Item: 8.A
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development
Subject: Strategy for Long-Term Economic Sustainability
Recommended Action
Staff recommends that Council review, consider, and provide direction regarding the
process to develop the scope of the City’s long-term economic sustainability strategy.
Executive Summary
In keeping with Santa Monica’s tradition of planning for the future, the City is now
embarking on a strategic planning process to develop a long-term economic
sustainability strategy that anticipates and harnesses new trends and emerging
technologies over the coming decades. By building an economic sustainability
framework, the City and its partners will be prepared to anticipate and address
inevitable global and local economic changes and safeguard the community’s resources
and services. While there are pressing issues presently impacting Santa Monica’s
economy that require the City’s attention, the long-term strategic planning process is
also vital to ensure that the community can sustainably support and cultivate economic
opportunities for future generations while remaining a resilient and prepared city. There
is a wealth of information on how cities can adapt to future economic and technological
changes, and Santa Monica has the opportunity to collectively assess and develop
responses to a broad range of these prospective future changes under the umbrella of a
single comprehensive, long-term strategic planning process.
To determine the appropriate scope of the project, the City must first build a foundation
of knowledge to identify key economic sustainability priorities. Staff recommends that
the City initially organize panel discussions and continue researching future trends,
applicable initiatives, and long-term local implications. Once the City has built a
foundation of knowledge, staff envisions the Council selecting top priorities on which to
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focus, followed by the development of a long-term economic sustainability strategy in
conjunction with community members, organizational partners, experts, and a cross-
section of City staff.
Background
On September 26, 2017 (Attachment A), Council held a study session to discuss
developing a strategy to support Santa Monica’s long-term economic sustainability.
During the study session, staff presented how anticipated technological and global
economic changes might affect the City’s future economy and ability to deliver services
to residents, businesses, and visitors. The future changes that may affect the city that
staff highlighted include:
growing globalization and digital communication, both of which are changing the
way businesses and employees provide goods and services
a shifting retail landscape, from brick-and-mortar stores to internet sales
shared vehicles and the prospect of autonomous vehicles
the automation of jobs.
Building a long-term strategy to address future technological and global economic
changes such as these would align with the City’s history of proactively planning its
future. During the September 26 study session, Council agreed to devote time and
resources to developing a long-term economic sustainability strategy, while cautioning
that the effort not reinvent the wheel where work has already been completed within the
City or by other cities or agencies. Council indicated that they would like to be engaged
throughout the effort, providing guidance and support when applicable. Although
Council did not identify a specific scope, it emphasized that the City should initially look
broadly at the various types of potential future changes and at minimum, beyond the
next 10 years. Council also identified additional areas for the City to consider in its
scope, including potential future changes in the entertainment and technology sectors,
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as well as impacts and opportunities in water management, transportation systems,
energy distribution, climate change, and marijuana retail sales.
In moving forward, Council also expressed interest in:
improving the City’s ability to be agile and respond to change quickly,
engaging experts within Santa Monica, as well as outside experts, including
those who are visionary, provocative, and perhaps even revolutionary,
developing a process that allows us to look at megatrends, identify which will
be particularly impactful for Santa Monica, and then move relatively quickly
toward specific elements of building a strategic framework,
endeavoring to consider Santa Monica within the context of the larger region,
and
ensuring that the lens with which we approach the effort is broader than just the
fiscal impacts to the City.
Initial Considerations
Since the Council study session on September 26, 2017, staff has convened an internal
working group among Finance, Planning and Community Development, Housing and
Economic Development, and the City Manager’s Office to begin gathering research,
discuss approaches for the project, and start to consider opportunities and threats. Staff
has also initiated preliminary conversations with potential partners, including the Santa
Monica Chamber of Commerce, Downtown Santa Monica, Inc., and Santa Monica
Travel & Tourism. The partners expressed their interest in being involved in the
strategic planning effort, including considering themes, partnership opportunities, and
potential participants and thought leaders.
Initial Research
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To learn more about how the City can prepare for futuristic changes, staff has started
research to compile existing economic data from City reports and plans, document
economic trends and predictions from regional and national reports, and investigate
how other cities are tackling the prospect of immense technological and economic
change. Staff has begun to comprehensively document economic data and findings
from City reports and strategies from the last decade, including the Wellbeing Index,
Land Use Circulation Element, Downtown Community Plan, Sustainable City Plan,
Strategy for a Sustainable Local Economy, and Creative Capital Plan. Staff also
continues to track and compile regional economic information from reports by
organizations such as the Southern California Association of Governments (SCAG),
UCLA Anderson Forecast, and Los Angeles Economic Development Corporation
(LAEDC). Additionally, staff has been exploring reports on technological and economic
disruptions from organizations and institutions such as the National League of Cities,
The Aspen Institute, UCLA, University of Oregon, Nelson/NyGaard, Perkins + Will,
RAND Corporation, the Milken Institute and Deloitte. Staff has also commenced
documenting examples of innovative city and organizational initiatives, which could
inform how the City responds to technological and economic shifts. Staff has
concurrently started to identify organizations the City could partner with on this project,
including businesses, academic and research institutions, foundations, government-
related organizations, nonprofits, advocacy groups, and consultants.
Discussion
Staff recommends that the initial effort (Phase I) of the strategic planning process
provide an opportunity to build a foundation of shared knowledge that represents cross-
pollination between local and regional economic representatives, futuristic thought
leaders, and City staff research. Phase I would help the City gather opinions and
information to influence the scope of the project and identify key priorities for the City
and its partners in the effort. The City and its key partners could invite thought leaders
to identify future economic and technological changes that could impact Santa Monica’s
economy, government operations, and fiscal resilience, with a focus on those changes
for which the City government is well positioned to play a significant role in proactive
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preparation or adaptation. The effort would also create opportunities for discourse and
education among key stakeholders and thought leaders about the identified challenges
and opportunities in the future and how best to respond to ensure long-term resiliency.
Staff recommends the following process components for Phase I:
Panel discussions: Staff proposes to coordinate with key local partners in
creating a public opportunity for one or more panel discussions among experts
who could speak to futuristic trends or changes on the horizon that may impact
the City’s long-term economic sustainability. The approach would bring together
specialists and thought leaders that represent a broad range of topics for
discussions of how each potential change could interact with one another and
affect the City’s economic fabric. A panel discussion format could create an
opportunity to build consensus on leading topics that would most impact the
City’s local economy. Where feasible, the City could look for opportunities to
partner with local organizations to incorporate panel discussions on economic
sustainability into established annual events such as the Chamber of
Commerce’s State of the City, Santa Monica Travel & Tourism’s Annual Tourism
Summit, and Downtown Santa Monica’s Annual Meeting. Staff recommends that
any panel discussion be open to the public, recorded on CityTV, and
streamed/published on the City’s website, in order to maximize the opportunity
for community insight and access to the discussions.
Staff research: Staff would like to continue researching emerging futuristic trends,
economic implications, and ways that Santa Monica could innovatively plan for
long-term economic sustainability. The research would involve investigation of
further resources available online, talking to academics and researchers, and
attending conferences and events that cover futuristic changes and economic
trends. Staff research would complement the proposed panel discussions,
providing in-depth coverage of literature and capturing national and global
discourse about how futuristic changes may affect cities and local economies.
Staff would share key findings to the public through avenues such as the City’s
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blog and invite comments and feedback online. The trends would be assessed in
the context of the City’s Framework outcome areas of Community, Place and
Planet, Learning, Health, Economic Opportunity and Governance, with a
particular emphasis on the latter two areas.
Staff estimates that Phase I – hosting one or more panel discussions, compiling
research, and developing the scope and key focus areas of the subsequent planning
effort – would take six to nine months. Staff would seek involvement and guidance from
Council when necessary.
Alternative Approaches
While staff recommends that the initial, exploratory Phase I of the project primarily focus
on panel discussions and research, Phase I could focus on alternative approaches,
including:
Speaker series: Phase I could consist of inviting a series of futurists and leading
thinkers to address expected changes. However, a challenge with relying solely
on knowledgeable speakers is that it can diminish opportunities for discourse
among thought leaders, thereby requiring a listener to reconcile differences of
opinion. Staff recommends panel discussions in order to encourage discourse
and debate, allowing thought leaders to attempt to reconcile areas of
disagreement, while identifying areas of agreement and stasis.
Council meeting panels: Given Council’s interest in being engaged in the
economic sustainability strategic planning process, hosting all panel discussions
at Council meetings would foster Council participation. However, such an
approach could limit opportunities to partner with other organizations, including
those organizations that currently host gatherings with broad community
participation.
Council subcommittees: Council could appoint subcommittees among its
membership to delve into each of the key opportunities and challenges.
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However, because several opportunities and challenges have already been
identified, staff recommends that a sorting and prioritization process occur before
delving into any specific topic.
Consultant study: The City could engage a consultant team to evaluate the
opportunities and challenges facing the City, prioritize among them, and return
with recommendations. However, such an approach may limit opportunities for
the Council, community, and organizational partners to be actively engaged in
considering future economic opportunities and challenges.
Next Steps
At the conclusion of Phase I, staff would return to Council with findings and
recommendations, and seek Council’s direction on top priorities for the scope of the
project and the process for developing the economic sustainability strategy itself. In
Phase II, staff envisions that the City would develop the strategic plan, focusing on the
identified top priorities with participation and support from Council, community
members, organizational partners, experts, and a multidisciplinary team of City staff.
Financial Impacts and Budget Actions
The estimated cost of Phase I is $50,000. Funds are available in the FY 2017-18 budget
in the Housing and Economic Development Department.
Prepared By: Julie Wedig, Management Fellow
Approved
Forwarded to Council
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Attachments:
A. September 26, 2017 Staff Report
B. Powerpoint Presentation
Long-Term Economic Sustainability Strategy
Initial Process
Santa Monica City Council
December 5, 2017
Background
Initial Considerations
•Internal staff working group
•Conversations with local partners
Initial Research
•City reports
•Regional economic data
•Futuristic predictions
•Innovative urban approaches
Recommended Approach
Phase 2Phase 1
Phase I
1.Continue staff research
2.Panel discussions
Looking Ahead
Phase 2Phase 1