The nearly three-year old Economic Development Commission, an arm of the Santa Maria Valley Chamber of Commerce, will continue to serve as the city's primary business and economic development entity for at least the near future.

The Santa Maria City Council unanimously extended the chamber's economic development contract Tuesday after brief discussion about partnerships and how to incorporate measurable outcomes.

Officials acknowledged the difficulty in measuring success since it is hard to quantify business growth and job creation.

The Chamber of Commerce first won the city contract for economic development services in December 2004 after an official “request for proposal” process.

Previously the city paid for economic development services from the Santa Maria Valley Economic Development Association. That group has since disbanded.

As part of the contract, the chamber formed the Economic Development Commission (EDC) whose membership includes city staff, the Santa Maria Public Airport District manager, and past chairmen of the chamber board of directors. The group is chaired by Bob Hatch, chamber president and CEO.

The City Council directed staff to draft a contract extension with the chamber when the EDC made its mid-year report in August. The current contract expires Dec. 31.

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City staff proposed the new contract extend for two and a half years in order to align it with the city's fiscal years, instead of granting another three-year deal.

The new contract also increases the amount of funding paid to the EDC by giving them the full amount spelled out in the municipal code - 8.5 percent of the city's transient occupancy tax revenue. For the 2006-07 fiscal year that would have translated to $201,782, according to the staff report to the council.

For the half-year that is included in the contract, the agreement stipulates $100,891 be paid for work done between Jan. 1 and June 30, 2008.

Despite tough economic times for much of the state, EDC officials say their work has been successful and all the goals and objectives for the first three-year period were met.

“I could not be more pleased with the success we have had,” Hatch said before Tuesday's meeting. “There was some skepticism on whether we would be up for the challenge, but we really have set the stage for a long, long, long arrangement with the city.

“I think people understand, not only locally but regionally and across the country, that we handle the economic development and feel comfortable contacting us,” he added.

The bulk of the money given to the EDC went directly to services, said City Manager Tim Ness, who represents the city on the EDC.

From the city's perspective, Ness said, consolidating economic development has allowed the chamber to absorb much of the overhead and administration.

“Rather than two separate organizations with two sets of costs, those could be merged,” Ness said, alluding to a time when the city paid the chamber for tourism promotion and the EDA for economic work.

Though the economy has been tough lately, Ness said, he sees the EDC making gains by focusing on South Coast companies opening satellite offices in Santa Maria and efforts to get the Santa Maria Public Airport Business Park on track.

The EDC has set out ambitious goals and objectives for the next contract, Ness said, but he is confident they can be reached.

“(It will) keep everyone very, very busy and challenged,” he said. “It's a lot of work but if we focus our efforts I think it can be achieved.”

Some of the new goals include:

n Assisting the city in updating the Economic Development Element of the General Plan

n Conducting surveys of commuters to target relocation or satellite office prospects, and

n Creating a Santa Maria Valley Business Community Fact Book.

Malia Spencer can be reached at 739-2219 or mspencer@santamariatimes.com.

October 3, 2007