HomeMy WebLinkAboutMINUTES - 10171989 - FC.2 TO: BOARD OF SUPERVISORS Contra
FROM: FINANCE COMMITTEECOSta
Supervisor Nancy Fandenot
Supervisor Robert Schroder x ' County
DATE: October 17, 1989 --c-----
ou
SUBJECT:
POLICIES TO ENHANCE THE COUNTY' S ECONOMIC BASE
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION•
Adopt the attached policies on enhancing the County' s economic base.
BACKGROUND:
On July 27, the Board asked the Administrator' s of f ice to study ways
and means of enhancing the County' s economic base. The Finance
Committee met on August 14 to discuss staff-suggested policies to
enhance the County' s economic base, modified the policies and referred
the policies to the full Board for review and comment. On October 9 ,
the Committee discussed several Board suggestions and adopted the
attached policies incorporating the suggestions.
CONTINUED ON ATTACHMENT: SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIO BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON - October 17, 1989 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ONf�THE
��DATE SHOWN.
cc: Community Development Department ATTESTED �i�:1�GLc/ �Tj 198'9
County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF
Public Works Director SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel
Auditor-Controller
Housing Authority BY DEPUTY
M382 (10/88) private Industry Council
POLICIES TO ENHANCE THE COUNTY'S ECONOMIC BASE
The objective of the Board of Supervisors of Contra Costa County
is to make decisions which will maintain, expand, and develop
sources of revenue to increase the County' s financial
independence. This objective will be accomplished by the
policies, procedures, and programs listed below.
1. Maintain and Expand Existing Sources of Revenue
A. Annexations agreements should recognize future County
services, costs, provide for future increases in revenues
to the County, and should recognize property, sales and
transient occupancy taxes and franchise fees, where
appropriate. Attachment A describes the problem of County
service costs in areas to be annexed.
B. Redevelopment agreements should maintain the current
average County share of the property tax increment over
the life of the redevelopment agreements. This means
that the County might support receiving a lower share of
increment during the early development of the project,
but would expect an increased share of the increment
after project revenues have exceeded a certain limit,
resulting in a net average the same as the current
increment.
C. Procedures for establishing eligibility and cost claiming
for programs such as Medi-Cal, Supplemental Security Income
and State Supplemental Payments should be examined to
maximize County revenues and reduce processing delays with
federal and state agencies.
D. County revenues should be routinely monitored to insure
the County receives its proper allocations.
E. Charges for services should be reviewed at least annually
by departments to insure that costs are adequately
reimbursed.
F. County policies should be aimed at maintaining the highest
credit rating available to public agencies, to maximize the
interest earned from the borrowing program.
2. Seek New Sources of Revenue
A. Legislation should be enacted to increase the excise tax
on alcoholic beverages and distribute the additional
revenue to the County.
B. Legislation should be pursued which will authorize counties
to tax the refining of petroleum in the state. This tax is
designed to mitigate the negative environmental effects of
oil refineries such as air and noise pollution as well as
oil spills.
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C. Legislation should be pursued which will authorize the
County to levy a business license tax in the unincorporated
areas of the County, the same tax now levied by cities in
the County.
D. Legislation should continue to be supported to enact new
fees, charges and claims which recover costs borne by the
County.
3 . Foster Economic Development in the Unincorporated Area
A. Establish a position of Economic Development Coordinator
in the Community Development Department to provide a
proactive approach to Economic Development. (See possible
work program attached. )
B. Establish an Interagency Coordinating Committee to
facilitate a comprehensive County approach to economic
development. Committee members could be representatives
from the Community Development and Public Works
Departments, County 'Counsel, Administrator' s and
Auditor-Controller' s offices, the Housing Authority, and
the Private Industry Council. An Executive Team
consisting of the County Administrator, Assistant County
Administrator-Finance and the Director of Community
Development will provide direction to the Committee.
C. Parameters for the operation of Economic Development
Program should include:
(1) encouraging uniform industrial land use policies with
the cities
( 2) insuring that areas targeted for economic development
will not be annexed to cities
( 3 ) targeting non-polluting businesses which will create
new, permanent jobs for county residents of all income
segments
(4) encouraging affordable housing near areas targeted
for economic development
( 5) infrastructure needs to be financed prior to. approval
of proposals for new development
D. Require the development of a comprehensive economic
development plan within nine months from the adoption of
the County General Plan. (See preliminary findings
attached) .
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E. Continue to support County redevelopment activities in
areas where tax increment financing offers the best
approach to revitalizing communities.
ATTACHMENT A
CONTRA COSTA COUNTY
COMMUNITY DEVELOPMENT DEPARTMENT
TO: Claude L. Van Marter DATE: June 15, 1989
Assistant County Administrator
FROM: Harvey E. Bragdon
Dir fo�of nity Development
by: Dennis Barry
SUBJECT: Amendments to SB 1225 (Boatwright)
Attached please find our most recent report on growth trends in the County, the
Bay Area and the State. I believe this is the source of the facts and figures
you mentioned in your urgent memo of June 15, 1989.
In terms of the effects of city projects on County services and facilities, your
memo contains. those which are most important and readily conveyed. It should be
noted, however, that while individual projects may cause problems for the
County, it is the cumulative effect of decision making by the 18 cities that
produces severe strains on county services and facilities.
For example, a city project which undoubtedly has affected county services is
the approval of the Pinole Vista Shopping Center at Appian Way and I-80. This
project is in close proximity to both the E1 Sobrante and the Tara Hills
unincorporated Communities. While the city enjoys the sales tax revenue from
this major retail area, much of the traffic impact- is laid directly in these two
unincorporated places.
A good example of the cumulative effect of decision making is the approval of
the city of Antioch's Southeast Specific Plan, which will provide for
approximately 14,000 dwelling units. Although this area will be composed of
numerous projects ' by different development companies, it is the cumulative
impact of the Specific Plan which will impact on County services and facilities.
Other examples include the development activity along Castro Ranch Road in the
Richmond Sphere, which is well removed from Richmond proper. Some 8 to 900 units
are being built in this area under the city's jurisdiction. In neither case do I
know of, nor have I been able to find any reference to the needs these projects
will create for county services and facilities.
Curiously, the city of Pittsburg has opted for "Defensive Zoning" whereby they
have amended their General Plan and requested a Sphere of Influence amendment
from LAFCO in order to fight the possibility of a sanitary landfill by
designating the land for residential uses. As far as I know the documentation
did not discuss effects on County services or the needs to resolve the landfill
issue.
ATTACHMENT A
The entire area south of State Route 4 which is now within the City of Martinez
is another example of city development in a sphere which has greatly impacted
county services. Here again we are talking about dozens of individual projects
amounting to thousands of units, which have serious implications for countywide
services.
Two scenarios. are usually put• forward by city officials to deflect concerns
about county costs (not in the written record as much as the meeting setting)
1. The project represents a .0005 increase in county population, and is
therefore insignificant and not worth discussing; and,
2. These are going to be high end, upscale homes (or shops, or whatever) and the
type of resident that will live (or shop or whatever) here does not need county
social services (and by implication, jails, courts, etc). See the City of
Hercules current Newsletter article on Franklin Canyon Golf Course.
As to the first, it is indicative of the cumulative nature of the problem, and
the need for all projects to identify and mitigate the impacts. Of course this
is not possible through CEQA, since social and economic effects are specifically
not to be considered significant effects on the environment.
As to the second, it illustrates the general misunderstanding of the way things
work. For example, the rise of the suburban office and growth in tertiary
employment in the county has undoubtedly had a great effect on the number of
Superior Court filings, and litigation in general . I am also quite sure that a
goodly proportion of the DUI's and domestic violence cases we see are from such
upscale homes.
The down side of all of this is that the County has not traditionally asserted
itself in the review of city projects. This is understandable, given that only
recently have we begun to take a countywide approach to planning and growth
analysis. However; now that we have done so, and precipitated a countywide
(through adoption of measure "C") and perhaps statewide interest in growth
management, perhaps that is the avenue through which we should explore the
proposed legislation. Supervisor McPeak has in the past proposed that the county
defer decision making to the cities in their spheres under certain conditions.
As I recall them from the top of my head, they had to do with adopting growth
management standards, assuring equitable property tax sharing with the county
and adequate provisions in the localities' plans for jobs/housing balance. There
may have been others. The point is that the kernel of the bill as proposed. might
be used to get the cities and the county some of what each wants.
I apologize if this memo seems drafty, but the urgency of the matter forces
little editing, digestion and polishing. Please let me know if I have provided
useful information, or whether we need to dig much deeper. I will be in the
office Friday, June 16.
• A•
' J
� G
Attachment B
Possible Work Program
A generalized work program for Economic Development could be
as follows:
1. Prepare economic development plans and strategies as
necessary. Such plan shall include:
a. The types of businesses locating and leaving the County
b. How tourism can be expanded
c. An inventory of County-owned land and analysis of its
potential uses
2. Provide technical assistance to:
a. Business and employers
b. Cities and other public agencies
3 . Marketing and business attraction, with members of the Board
of Supervisors becoming actively involved at certain phases
of the marketing process
4. Implement linkages between PIC employment programs and
economic development programs;
5. Develop local financing programs to facilitate economic
activities;
6. Secure State, Federal or private funding of economic
development activities;
7 . Land development such as the purchase, lease and sale of
property around County airports.
8. Assist in the provision of support services, such as
transportation, day care and housing;
9. Act as a troubleshooter or expediter for development
proposals in the regulatory process.
Technical assistance could take the form of site location
referral, permitting guidance, environmental impact mitigation,
and interagency coordination. It is anticipated that the
activity would make maximum use of the County Land Information
System capabilities, and ultimately, the Geographic Information
System to assist businesses to locate suitable properties in the
County, with priority given to unincorporated sites.
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Marketing and business . attraction would include aggressively
reviewing the information available on site characteristics, and
tailoring presentations on the advantages of a Contra Costa
County location, both directly to targeted firms, as well as to
industries by way of trade publications.
ATTACHMENT C
Community Development Department
Findings On
ECONOMIC DEVELOPMENT IN CONTRA COSTA COUNTY
I . General Observations
o Local economic development is a process that is
neither exact or fully predictable. It takes into
consideration economic and fiscal interests of the
county and represents a public investment designed
to leverage private sector capital in job creating
and revenue producing products.
o Economic development is a pro-active procets that
requires active participation in the deal making
process.
o The primary blueprint for economic development is
the jurisdictions general plan, particularly the
land use and transportation elements.
o Much of the developable land in Contra Costa County
is within the boundaries of cities. Cities in this
county vary dramatically in their approach towards,
and acceptance of growth and economic development.
o Efforts to promote and explain the value of
economic development in Contra Costa County have
been segmented and factionalized. There has been
no countywide comprehensive plan for the promotion
of economic development.
o Economically disadvantaged areas of the county,
particularly in unincorporated East and West County
have not participated fully in the economic growth
of this county.
o The convergence of the countywide General Plan,
Measure C, the County' s more pro-active approach to
financing capital facilities and infrastructure
financing, and the creation of the County Rede-
velopment Agency provide a splendid opportunity to
initiate a pro-active economic development process
for the county.
o Expansion of city boundaries into developed
unincorporated areas in the past has cost the
county significant tax revenue.
Y �
C .)
II. Direct Assistance to Potential and Existing Businesses
o The provision of information to potential
businesses (financing, availability, and price of
land, availability of transportation, affordable
housing, schools, utilities, roads and labor force
characteristics) has been highly localized or
concentrated on certain sectors of the economy.
o Manufacturing, the traditional economic base of
this county is not a growth sector. Satellite and
affiliate industries to the manufacturing indus-
tries may be the growth sector. The retention of
existing manufacturing industries in the county
should be a priority.
o The Private Industry Council' s small business
resource center and their small business directory
fills an informational gap that previously existed.
o Direct financing of businesses from public sector
funds (for example Community Development Block
Grant Funds and industrial development bonds) are
not as useful as once thought. This is in part
due to increasingly stringent rules that control
who and what can be financed acid who might benefit.
Additionally, employers perceive that public sector
financing will result in a loss of control over the
hiring decision.
o Federal and State economic development programs are
limited in funding and very competitive. Contra
Costa County generally does not rank highly for
these funds. Nonetheless, some program funds are
available through these sources and could be
pursued. The existence of the County' s
Redevelopment Agency., particularly in some of the
more disadvantaged areas may provide an opportunity
to qualify for these programs.
o A land inventory identifying industrial and
commercial sites throughout the county would be a
valuable tool in marketing economic development in
this county.
III . Housing
o There is a substantial need for more affordable
housing in the county.
o The county generally lacks a good balance of jobs
and housing within its geographic regions. This
characteristic is even more severe when the cost of
the available housing relative to the wages of the
workers in the area is taken into consideration.
o The County has been aggressive in implementing
affordable housing programs. Some cities have also
been aggressive in this area, however, a number of
jurisdictions prefer to let the solutions be
developed elsewhere.
IV. Infrastructure
o The inadequacy of the existing infrastructure,
particularly in the transportation area, combined
with .the costs associated with providing adequate
infrastructure makes this problem particularly
intractable. Mechanisms other than developer fees
must be utilized to provide for infrastructure.
The passage of Measure C and the implementation
components of the countywide General Plan hold
promise by identifying some of these mechanisms.
o Meaningful utilization of public. transit will
require greater concentration of employment centers
and housing.
V. Labor Force Considerations
o Ethnic minorities - women, older workers and the
disabled do not benefit equally in employment
opportunities resulting from economic development
in the county.
o There is a need to retrain blue collar workers in
manufacturing jobs that are being phased out.
o Reflecting the maturation of the county' s economy
and national trends, an increasingly large
percentage of jobs are in the service sector which
traditionally have been lower paying. A signi-
ficant and complex public policy issue exists with
respect to the training of people for these lower
paying jobs.
o The need to analyze the local economy, in
particular growth segments of the economy, will
become increasingly ' important in structuring
appropriate training and placement programs.
o Significant barriers to employment exist for
certain segments of the population. For example,
the inadequacy of child care has been identified as
a barrier. Lack of education and skills training,
poor self esteem and attitudes toward work are
areas where programatic responses may be necessary.
HB/JK/jb
Attachments
dbx/batch2.mem
V? I
Attachment D
BUSINESS WITHIN UNINCORPORATED AREA
BY STATE CLASSIFICATION
AUGUST, 1987
RETAIL TRADE 769 28%
(merchandise, grocery and liquor stores;
restaurants and vending machines; hard-
ware stores; automobile supplies and
service stations)
MANUFACTURERS, PRODUCERS AND WHOLESALERS 528 19%
(petroleum products, industrial machinery
and electronic and electrical equipment)
GENERAL SERVICES 805 30%
(business services, insurance, real estate,
doctors, dentists, airport services)
SERVICE TRADES 376 14%
(beauty and barber shops, cleaners and
launderettes, general equipment and
automobile repair, and marinas)
CONSTRUCTION CONTRACTORS 231 9%
(contractors, cabinet makers and material
supply firms)
TOTAL 2,709 1000
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Estimated Taxable Sales $525 , 000 ,000
for businesses in unincorporated
areas, fiscal year 1988-89