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Home My WebLink AboutMINUTES - 06221993 - H.B H.B THE BOARD OF SUPERVISORS► Cr CONTRA COSTA COUNTY, CALIFORNIA DATE: June 22, 1993 MATTER OF RECORD Terry Schoaff, Dean of Economic Development, Diablo Valley College, speaking on behalf of the Economic Task Force of the Contra Costa Council, expressed an interest in developing a partnership with the Board of Supervisors to leverage the political position of the Board and the Business Community. He provided the Contra Costa Council's Economic Development Task Force Proposed Agenda for 1993-1994. The Chair extended an invitation to Mr. Schoaff to work with Mr. Alexeeff, Director, Growth Management and Economic Development Agency, and the Board's newly established Advisory Committee on Industry, and the ContraCostaWorks Council that will be developing plans for implementation. THIS IS A MATTER FOR RECORD PURPOSES ONLY NO BOARD ACTION TAKEN cc: Director, GMEDA • DATE: lel t�Y REQUEST TO SPEAK FORM (THREE (3) MINUTE LIMIT) Comoete this-form d lace it in the box near the speakers' rostrum before addressing the Board. NA:I E: v h w 13 `/CSG 0 PHON1E: �� 9 6 ? ADD SS: / ( C //012 41&V ' U CITY: /�O/UCOAO I am spe 'ng formyself OR; organization: wkpC (NAME OF ORGAN(""/_-%1' ti) Check one: I wish to speak on Agenda Item # My comments will be: general for against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. e-a It-Cd AD �,M,AMh.-hV y vI' S�J o SPEAKERS ' 1. Deposit the "Request to Speak" form (on the reverse side) in the box next to the speakers' microphone before your item is to be considered. 2. You will be called to make your presentation. Please speak into the microphone. 3. Begin by stating your name and address; whether you are speaking for yourself or as a representative of an organization. 4. Give the Clerk a copy of your presentation or support documentation, if available. 5. Please limit your presentation to three minutes. Avoid repeating comments made by previous speakers. (The Chair may limit-length of presentations so all persons may be heard.) CONTRA COSTA COUNTY BOARD OF SUPERVISORS PRESENTATION BY THE CONTRA COSTA COUNCIL'S ECONOMIC DEVELOPMENT TASK FORCE June 22, 1993 INTRODUCTION Good morning, thank you for the opportunity to make this presentation. I would like to introduce some of the people who have helped with this presentation and they will be happy to respond to any questions you may have. Tom Barham, PG&E and Vice Chair of the Task Force; Brad Lyle, Senior Vice President & Managing Officer of CB Commercial; Gordon Tucker, Arthur Andersen & Co. and Herman Welm, Vice President, Marwais Steel Company and City Council member for San Ramon. We represent the Contra Costa Council's Economic Development Task Force. The Contra Costa Council represents over 500 businesses located in Contra Costa County. The Task Force began a series of quarterly breakfast meetings in 1992 for anyone involved in economic development which has now grown to over 100 identified professionals & volunteers involved in local economic development throughout the county. We have listened to these two constituencies in many open meetings and have obtained significant data through the business climate survey completed in the Spring of 1993. We are here today to communicate what we've heard from the local Business community and the local economic development community. We think it is important for you to recognize these constituents since they represent such a major portion of the tax base throughout our communities, which in turn represents a significant measure of success that we all have grown accustomed to. In summary, the perception is currently-that the political structures within our society are anti- business. Our research has verified this perception locally and as PG&E's economist has said, "businesses vote with their feet!" Meaning, that if the climate of doing business in Contra Costa County becomes too difficult, business will leave the county. WHY WE'RE HERE Over the past two years the Task Force has been listening to a variety of constituent groups. The frustrations are numerous and serious. Some of those you have heard earlier today from the Industry Task Force which represents a major employee base of the county's population. Representing the balance of the businesses within the county, we echo many of those same concerns but would like to suggest some possible solutions for your consideration. These solutions are the product of the Council's Business Climate Survey completed in the Spring of 1993 and thoughtful listening to several hours of discussions with the local economic development professionals/volunteers at the quarterly breakfasts. page 2 SURVEY RESULTS Survey Scope: Contra Costa Companies with 50 or more employees Total Population: 891 Companies in 1990 according to US Census publication. Surveys Sent: 497 (56% of total population) Response Rate: 152 replies, representing 30.6% response rate covering an employee base greater than 16,000. It is important to know that many of the local issues are reflective of the Uberroth Study and the ADEPT Study. such as the OVERALL, CONCERNS: ■ Highway gridlock/commuting ■ Worker's compensation rates ■ Office rental costs ■ State taxes ■ County/city taxes We realize that these issues are. not something that you can directly control. However, we included them because it tells us that our businesses have the same problems operating within the state as do other businesses. LOCAL BUSINESS CLIMATE: ■ 37% believe the county is anti-business ■ 71% believe costs are above average ■ 81% are not growing in profitability There is other very useful data from this survey. For example, we can tell you who the respondents are within your supervisorial district, you may want to know who they are. If detailed information of this sort is of interest to you, we can make this available to you. COMMENTS: Please describe your vision of what Contra Costa County might be as a business center in the future. "At the rate we're going, my 75 manufacturing jobs will be somewhere else. It's hard to remain competitive in the California environment with other states, no less the Orient." page 3 What strategies do you intend to adopt in your business in order to take advantage of the future developments which you have described? "I'm developing a long term (5 year) plan to leave because I don't think local, county, or state politicians really care about business or jobs..." LOCAL ECONOMIC DEVELOPMENT PROFESSIONALS' OBSERVATIONS 1. Create an office for Economic Development. One quote was "we continue to romance this idea of an Economic Development Corporation. We are competing with SEDCORP and Alameda County Economic Development Corporation...we should get on with implementing this!" An Economic Development Office would facilitate: a. Attraction b. Retention C. Job Creation 2. CEQA reform: The Board of Supervisors must take a leadership, pro-business role in this issue. The current perception is that the Board of Supervisors needs more balance and bottom- line justification of environmental regulations. WHAT'S CURRENTLY UNDERWAY We're moving forward because the time is right. We would like to develop a partnership with you, the Board of Supervisors, to leverage your political position as a part of this team. BUSINESS needs your support! The current perception of county Business is that the Board of Supervisors tie their own political agendas to the permit process at the expense of business. We'd like to offer you an opportunity to change this perception of your business constituents. We would like to facilitate the development of a county wide economic development strategy. 1. We are curnently seeking funding to begin a feasibility study that would build upon the Rinehart study to look at the development of a central economic development program with professional guidance for the county. This will also expand upon the myopic view of only our county to the possible benefit of joining with other counties to form an "economic zone" that would eliminate duplication and foster cooperation with other economic areas with similar strengths. 2. We will continue the quarterly economic development breakfast meetings to insure the communication links stay open. page 4 3. We will do another business survey to build a historical data base to help guide our planning for the future. 4. We will endeavor to complete the proposed Economic Development Task Force agenda that you have before you. CON CLU SION/RECOMMENDATION The Contra Costa Council's Economic Development Task Force would like to work with the county in a public/private partnership to coordinate the development of our county's economic development strategy. A coalition of BUSINESS and public sector representatives would facilitate a strong, central, representative BUSINESS communication link to the Board of Supervisors. We would recommend a facilitated process, based on TQM planning techniques, for the upcoming Economic Summit so that maximum community participation in the decision making needed to develop a central economic development strategy that will have community "buy-in". Such a process would allow a structured time period for broad participation consequently developing ownership of the resulting strategic plan which will ensure a greater opportunity for success. If you have any questions about this presentation, please feel free to contact any of the following individuals: Terry Shoaff 685-1230 ext. 432 Tom Barham 934-5880 Brad Lyle 930-2040 .:bdsup..no3 Contra Costa Council's Economic Development Task Force Proposed Agenda 1993-94 1. Public Affairs/Building Relationships/Early Warning System. Assemble and deploy an Intervention Team to help those Contra Costa businesses identifying themselves as "at risk of leaving the county" in the Business Survey. The emphasis to be on retaining these businesses. Build strong relationships, even partnerships (resources), with entities that can bring economic development resources into Contra Costa County. (i.e. Department of Commerce, IDD, Board of Supervisors, CALED, etc.) 2. Continue the quarterly liaison breakfasts and continue to develop additional liaisons with other economic development groups as appropriate. 3. Continue the development of the County Marketing Booklet and try to include success stories within the county. 4. Influence the development of the agenda for the Economic Summits planned by the Board of Supervisors for Contra Costa County. 5. Repeat the Business Survey in order to track responses over a long term period. Involve other organizations who can assist with this such as banks, PG&E, EDD, etc. 6. Outline an action plan to have a county-wide economic development professional in place within three years. Plan to include funding, organization,job duties, etc. Also, explore the feasibility of an "Economic Zone" with the logical neighboring counties/regions, etc. Economic Development Task Force Business Climate Survey Results SURVEY STATISTICS During the Fall of 1992.the Contra Costa County's Economic Development Task Force developed a survey for the business leaders of Contra Costa County to convey their impressions of doing business in the County. The survey produced some interesting results. The profile of the survey population is as follows: Survey Scope: Contra Costa companies with 50 or more employees Total Populations: 891 companies in 1990 according to US Census publication"County Business Patterns" Surveys sent: 497 (56%of total population) Response Rate: 152 replies,representing a 30.6%response rate covering an employee base greater than 16,000 Geographic Representation Surveyed Replies of Respondents: District A `14.,. is N4. % 1st Richmond 65 13 18 12 2nd Martinez 32 7 11 7 2nd Lafayette 18 4 9 6 3rd San Ramon 46 9 22 15 3rd Walnut Creek 100 20 31 20 4th Pleasant Hill 20 4 8 5 4th Concord 100 20 33 22 Sth Antioch 25 S 17 11 Other 91 , 8 3 2 497 100 132 100 Respondent Company Size by Sent Replies Employee Number. Number of Em1110ytesImo. N Ng 30-99 236 47 68 45 100-499 237 48 61 40 500 or more 24 s 13 • 9 Not Identified 0 0 10 6 497 100 152 100 *personally interviewed Respondent Industry Surveyed Replies Representatiop: In N4. YR NI -% Agriculture/Forestry/Fishing 18 4 12 . 8 Construction 55 11 is 10 Finance/Insurance/Real Estate 81 16 21 14 Manufacturing 90 IS 32 21 Mining S 1 4 3 Retail Trade 66 13 7 S Service 121 24 42 27 Transportation/Public Utilities 37 8 11 7 Wholesale Trade 24 s 8 S 497 100 152 100 Economic Development Task Force Business Climate Survey • Purpose was to gage the business climate in Contra Costa County. • The hope is that this will help us determine the mood of business people in the county. Two Issues Affecting Responses: • Federal Economy a Budget deficit O Presidential elections • California Economy o Budget deficit o Runaway workers compensation rates Ueberroth commission report Issues Affecting EcOnomis TD' evert pment i Attracting companies 49% of the companies surveyed were not formed in Contra Costa County. . .historically we did well in attracting companies to Contra Costa County. i Retaining companies O 16t of the companies are considering expanding outside of Contra Costa County. 13 lot are considering relocation out of Contra Costa County. Business Climate • 37V believe the county is anti-business • 71W believe costs are above average • 81t are not growing in profitability Overall Concerns • Highway gridlock/commuting • Worker's compensation rates • Office rental costs • State taxes • County/city taxes Area of Business • Within Contra Costa county - 36% • Other bay area counties - 22t • State of California outside the bay area - 20t • Out of state - 18t • International - 4t This summary represents the significant findings of the survey. A complete 190 + document of the survey results is available for the cost of reproduction and mailing ($10.00) . You may request a copy by calling 685-1230 ext. 432 and asking for Pauline or Terry. ]Economic Development Task Force Business Climate Survey Results SURVEY STATISTICS During the Fall of 1992,the Contra Costa Council's Economic Development Task Force developed a survey for the business leaders of Contra Costa County to convey their impressions of doing business in the County. The survey produced some interesting results. The profile of the survey population is as follows: Survey Scope: Contra Costa companies with 50 or more employees Total Populations: 891 companies in 1990 according to US Census publication"County Business Patterns" Surveys sent: 497 (56%of total population) .Response Rate: 152 replies,representing a 30.6%response rate covering an employee base greater than 16,000 Geographic Representation Surveyed Replies of Respondents: District Area N9; "/ No. °(s 1st Richmond 65 13 18 12 2nd Martinez 32 7 11 7 2nd Lafayette 18 4 9 6 3rd San.Ramon 46 9 22 15 3rd Walnut Creek 100 20 31 20 4th Pleasant Hill 20 4 8 5 4th Concord 100 20 33 22 5th Antioch 25 3 17 11 Other 91 18 3 2 497 100 152 100 Respondent Company Size by Sent Replies Employee Number: Number of Employees No. fs No 50-99 236 47 68 45 100-499 237 48 61 40 500 or more 24 5 13 * 9 Not Identified 0 0 10 6 497 100 152 100 *personally interviewed Respondent Industry Surveyed Replies Representatiop: Induct N_Q "/Q ,No % Agriculture/Forestry/Fishing 18 4 12 . 8 Construction 55 11 15 10 Finance/InsurancelReal Estate 81 16 21 14 Manufacturing 90 18 32 21 Mining 5 1 4 3 Retail Trade 66 13 7 5 Service 121 24 42 27 Transportation/Public Utilities 37 8 11 7 Wholesale Trade 24 5 8 5 497 100 152 100 . Economic Development Task Force Business Climate Survey • Purpose was to gage the business climate in Contra Costa County. • The hope is that this will help us determine the mood of business people in the county. Two Issues Affecting Responses: • Federal Economy Budget deficit 0 Presidential elections • California Economy D Budget deficit 13 Runaway workers compensation rates 0 Ueberroth commission report Issues Affecting-EconomicDev"Ipment • Attracting companies 49W of the companies surveyed were not formed in Contra Costa County. . .historically we did well in attracting companies to Contra Costa County. • Retaining companies 16W of the companies are considering expanding outside of Contra Costa County. 1OW are considering relocation out of Contra Costa County. Business Climate • 37$ believe the county is anti-business • 71% believe costs are above average • 81W are not growing in profitability Overall Concerns • Highway gridlock/commuting • Worker's compensation rates • Office rental costs • State taxes • County/city taxes Area of Business • Within Contra Costa county - 36* • Other bay area counties - 22t • State of California outside the bay area - 20W • Out of state - 18* • International - 4W This summary represents the significant findings of the survey. A complete 190 + document .of the survey results is available for the cost of reproduction and mailing ($10.00) . You may request a copy by calling 685-1230 ext. 432 and asking for Pauline or Terry. 0000wr.vay