HomeMy WebLinkAboutCC 2025-04-08_09e Buy Local ProgramItem 9.e.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Aleah Bergam, Management Analyst
SUBJECT: Confirm Direction on a “Buy Local Program”
DATE: April 8, 2025
RECOMMENDATION:
Confirm staff’s direction on a “Buy Local Program” administered by the South County
Chambers of Commerce to support Village businesses impacted during the Traffic Way
Bridge Replacement Project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Pursuant to a December 2016 Settlement Agreement between Pacific Gas & Electric
(PG&E) and the local San Luis Obispo County governmental entities and, later, SB 1090,
the City has received one-time Economic Development Funds (EDF) of $747,422 to
support the City’s economic development needs in light of the planned closure of the
Diablo Canyon Power Plant. On March 9, 2021, the Council allocated a portion of these
funds to a COVID Relief Program, one component of which included a Gra nt Program
administered by the Chamber. At the FY 2024-25 First Quarter Status Report, the Council
approved the reallocation of $21,500 from the retraining scholarship program funded by
SB 1090 funds to support a future “Buy Local Program.”
The South County Chambers of Commerce has agreed to administer the program on
behalf of the City. The City will pay a small administrative fee to the Chambers of
Commerce as well as pay for marketing material that can be absorbed within the current
budget. The City will contribute staff time as needed to help with administrative duties.
BACKGROUND:
On January 29, 2025, staff met with owners of many of the Village Businesses to g ather
feedback on the Traffic Way Bridge Replacement Project as the City approaches a
construction start date. Construction will require the full closure of Traffic Way at the
current Traffic Way Bridge segment, the closure of Nevada Street, as well as traffic
circulation modifications, which can be seen in Figures 1 and 2 below. At the meeting, a
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Item 9.e.
City Council
Confirm Direction on a “Buy Local Program”
April 8, 2025
Page 2
possible “Buy Local Program” was discussed, and the majority of attendees expressed
interest in the City pursuing this program.
Figure 1: Northbound Traffic Detour
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Item 9.e.
City Council
Confirm Direction on a “Buy Local Program”
April 8, 2025
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Figure 2: Southbound Traffic Detour
ANALYSIS OF ISSUES:
Several cities in San Luis Obispo County have “Buy Local Programs,” which enable
residents and visitors to support the local economy while also enjoying a shopping or
dining experience. While there are many forms that these programs can take, one
predominant form is a gift card program, where for specific dollar amounts spent at eligible
businesses, customers receive a gift card to a qualifying restaurant, brewery, wine tasting,
or retail establishment in the qualifying area.
Program Administration
Recently implemented “Buy Local Programs” were developed to support businesses
during road construction. The South County Chambers of Commerce has administered
the program on behalf of the agencies. While specific details of each program have been
slightly different by jurisdiction, the predominant methodology has been that for every
$100 a person spends at participating businesses, that person receives a gift card to a
restaurant, brewery, winery, or coffee shop. Multiple receipts can be combined to reach
the $100 goal. Any one single receipt over $100 only counts for one gift card. Receipts
must be from businesses within the program area. Receipts can be submitted online
through the South County Chambers of Commerce website.
In addition, and to encourage local spending during the holiday season, another local
community partnered with their Chamber of Commerce to launch a ‘Spend $100, Get $20’
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Item 9.e.
City Council
Confirm Direction on a “Buy Local Program”
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program, during which shoppers who spent $100 or more at a qualifying local business
could receive a $20 gift card to a participating business. Receipts had to be itemized,
dated within the program period, and exclude taxes, delivery fees, and shipping costs.
Each household could earn up to two gift cards, which were distributed on a first -come,
first-served basis while supplies lasted. Receipts were redeemed in person at the
Chamber of Commerce.
Scope and Location
Staff intends to implement a similar program structure to these examples. Staff has
discussed this program with the South County Chambers of Commerce, who can
administer the program on behalf of the City due to limited internal capacity to administer
the program by City staff.
Based on reviewing other Buy Local Programs and conversations with the Village
businesses, staff intends the following program specifics:
For every $100 spent within the Program boundaries, participants will be eligible
to receive a $20 gift card to a Village business, to be defined in the program
guidelines.
Multiple receipts can be combined to reach the $100 goal. Any one single receipt
over $100 will only count for one $20 gift card.
Receipts must be from restaurants, breweries, wine tasting, coffee shops, salons,
or other qualifying retail establishments doing business within the area displayed
in Figure 3 below:
Figure 3: Qualifying Project Area
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Timeline
Staff intends to begin the program in May 2025, in consultation with and availability of the
South County Chambers of Commerce. Additionally, staff intends to implement the
program in phases, as this is the first Buy Local Program the City has undertaken.
Implementing the program in phases allows the City and community to observe how
successful the Program is and allows modifica tions to be made to continue to address
the needs of the Village businesses. The first phase would end after half of the funds
available have been distributed ($10,000). Any suggested modifications or improvements
will be made before disbursing the remaining $10,000.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Provide concurrence on the Program;
2. Provide direction on Program modifications; or
3. Provide other direction to staff.
ADVANTAGES:
Implementing a “Buy Local Program” supports local businesses impacted by street
closures, traffic circulation modifications and construction activity during the Traffic Way
Bridge Replacement Project.
DISADVANTAGES:
There are no disadvantages identified.
ENVIRONMENTAL REVIEW:
Authorizing a “Buy Local Program” is not a project subject to the California Environmental
Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably
foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§
15060 (c)(2) and (3), 15378.) Alternatively, implementing a “Buy Local Program” is
exempt from CEQA on the basis that it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment.
(State CEQA Guidelines, § 15061, subd. (b)(3).)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
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