MONTEREY COUNTY ECONOMIC DEVELOPMENT COMMITTEE. AGENDA July 27, 2011 City Council Chambers 117 Fourth Street Gonzales, CA :30 p.m. 5:00 p.m.

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1 MONTEREY COUNTY ECONOMIC DEVELOPMENT COMMITTEE 1) Call to order, roll call AGENDA July 27, 2011 City Council Chambers 117 Fourth Street Gonzales, CA :30 p.m. 5:00 p.m. 2) Public Comment: The Committee will receive public comment on non-agenda items within the purview of the Committee. It is not necessary to complete a speaker request form. The Chair may limit the length of individual presentations. 3) Approval of minutes from June 29, ) Receive presentation on Salinas Valley Enterprise Zone 5) Receive a presentation on the CSUMB Commercial Innovation Institute 6) Receive status on economic development initiatives and next steps 7) Receive information on the City/County Economic Summit 8) Consider criteria for special handling projects 9) Next meeting to be held on Wednesday, August 24, on the Monterey Peninsula 10) Adjournment If you have any disability that would require assistance to access the meeting room, please call (831)

2 BOARD OF SUPERVISORS ECONOMIC DEVELOPMENT COMMITTEE Wednesday, June 29, 2011 La Scoula Ristorante, Castroville 3:30 PM 5:00 PM Members Present: Members Absent: Staff Present: Other: Lou Calcagno, John Reyes, Ken Scherpinski, Carlos Ramos, Dianne Harrison, Harry Wardwell, and Lorri Koster Dave Potter (Excused), Jason Burnett (Excused), and Bruce Taylor Lew Bauman, Jim Cook, Henry Gowin, Kay Reimann, Loyanne Flinn, Jerry Hernandez, Marleen Esquerra, and Karina Torres Kathy Eckerson, Abel Moran, Mary Ann Leffel, Zahi Atallah, Karen Nordstrand, Patricia Carillo, Justin Wellner, Erik Cushman, Chris Kahn, Susan Barich, Alan Barich, and Beverly Grova 1. Call to Order: Lou Calcagno (Acting Chair) called the meeting to order at 3:40am. 2. Public Comment: None. 3. Approval of minutes from May 31, 2011: Motion: Motion was made by Dianne Harrison and seconded by Carlos Ramos to approve the minutes of May 31, Motion was unanimously approved. Supervisor Calcagno briefed the Committee on the history of the La Scuola building. 4. Election of Vice Chair: Supervisor Calcagno nominated Lorri Koster to serve as Vice Chair of the Economic Development Committee. Motion: Motion was made by Harry Wardwell and seconded by Dianne Harrison to elect Lorri Koster as Vice Chair. Motion was unanimously approved. The meeting was reconvened by Vice Chair Koster. 5. Next Meeting: Meeting to be held on July 27 th at the City Council Chambers in Gonzales. Jim Cook informed the Committee of the upcoming City/County Economic Summit scheduled for July 14. The event will be hosted by CSU Monterey Bay, and cosponsored by the Monterey County Business Council and County of Monterey. 6. Receive Economic Opportunity Bylaw amendments: Jim Cook briefed the committee on Board direction from the Board of Supervisors meeting of June 28. Board approved appointment of Lorri Koster to the Committee. Page 1 of 2

3 Staff was directed to make further modifications to the bylaws to allow additional membership from other segments in the community. Lew Bauman provided clarity on the Board s initial vision of the Economic Development Committee. The original concept was to have industry leaders, not government bodies, join together to discuss needs and strategize on a unified vision for the community. In response to a request received at last months meeting regarding public outreach, Committee meetings will be held at alternate locations to allow participation from other segments Meeting notifications will be placed on MCBC s Friday Facts as well as on the community calendar sections of the Monterey Herald and Salinas Californian. 7. Receive a presentation from SRI on County-wide economic conditions: Jeffrey Alexander from SRI, provided a presentation on current and emerging approaches in economic development. SRI is currently conducting data processing and analysis on the County s economic conditions. A report will be presented to the Committee in the near future. Uniqueness can be an asset. Unique aspects of the County can be leveraged by positioning them to work with current and emerging global market trends. It is important to build on local existing strengths/assets that are difficult to replicate else where. 8. Receive a presentation on Hartnell Community College Agricultural Initiative: Beverly Grova, Vice President of Advancement; and Zahi Atallah, Dean of Advanced Technology, provided a presentation on Agricultural Education and Training at Hartnell College. The presentation covered the Institution s vision, budget, partnerships, facilities, and programs. It was noted that the Agriculture Industry assisted the Institution with funding ($2.2million currently), defining the curriculum, and launching the program. Additionally, the industry provides part-time instructors, field trips, guest speakers, and internships during the summer. Vice Chair Koster said she is proud of the program, particularly the continuing education opportunities. Dianne Harrison congratulated Ms. Grova and Mr. Atallah on their efforts. She suggested that continuing efforts be made towards building strong and innovated relationships between educational institutions in the region. Supervisor Calcagno suggested that ecotourism be considered as colleges develop and expand programs. 9. Workforce Investment Board (WIB) Strategic Plan: Loyanne Flinn framed the work of the WIB in the context of Economic Development as helping business hire their first and their best employees, and helping individuals get their first or a better job. The WIB strategic workplan was included in the packet and summarizes the activities that support five priorities: WIB business, Economic and Workforce Partnerships, Education and Workforce Partnerships, Model One-Stop Career Center System, and Regional Collaboration. Also in the packet was the WIB Annual Plan required by the state to continue to receive federal workforce funds. These two documents provide a brief introduction to workforce investment in Monterey County. Three members of the WIB were present including the Chair, Erik Cushman, representing business; Ken Sherpinski representing Labor; and Mary Ann Leffel, representing Economic Development. Dave Potter also is a member of the WIB representing WIA programs. 10. Adjournment: Vice Chair Koster adjourned the meeting at 5:08 PM. Page 2 of 2

4 COUNTY OF MONTEREY ECONOMIC DEVELOPMENT COMMITTEE MEETING: July 27, 2011 AGENDA NO. 6 SUBJECT: Receive status report on economic development activities. RECOMMENDATION: It is recommended that the Economic Development Committee receive a status report on economic development activities. BACKGROUND: The Economic Development Committee was created to guide development and implementation of the County-wide economic development strategy. To facilitate this effort, the County has retained the Stanford Research Institute (SRI) to prepare an economic development strategy involving three primary phases. A report summarizing the results of the Phase One component focusing on existing conditions and opportunities in the County will be presented at the August Committee meeting. The following information summarizes a number of initiatives on economic development efforts that are being pursued in support of the county-wide effort. Economic and Workforce Opportunity The County of Monterey has an active program to promote development of the County workforce to support economic opportunities in the region. Policy guidance and direction on the workforce system is provided by a Workforce Investment Board with concurrence from the Board of Supervisors as mandated by State law. To help facilitate efforts of the WIB to work in partnership with the Economic Development Committee, staff is moving forward to expand the SRI strategic planning effort to include a detailed analysis of labor market conditions and emerging trends in the region. It is anticipated that this work and report will be completed in August so that it will be available as part of the Phase One SRI report Two subcontracts have been selected for youth services and two for adult services for the period July 1, 2011 through June 30, 2012 to expend employment services offered through the County One Stop System. The contracts reflect a 30% reduction in funding and increased outcomes both in numbers and scope compared to previous years. Turning Point and Shoreline are long-standing partners. Santa Cruz County Office of Education (OED) is new partner this year. The proposals were evaluated by WIB and Youth Council members and forwarded to the WIB Executive Committee and full board for recommendation to the Board of Supervisors. To receive federal funds for workforce development the County must have a One-Stop Career Center and a Youth Council, as well as meet monitoring expectations and performance outcomes. The One-Stop Career Center includes a group of mandated including the State Employment Development Department and County Department of Social and Employment Services. In addition to the required One-Stop Career Center, the County subcontracts for services with employment and training agencies and organizations to increase outreach and access to target demographic and geographic groups. These partnerships expand career center services into the community and leverage additional expertise, funding and connections. 1

5 The Monterey County WIB has received a grant of up to $1,128,000 under the NEG Multi-Sector Reemployment program to provide employment and training services and support for individuals affected by layoff. The Staff is working to update the employment sectors and workers to be served as well as the final implementation plan. Half of the funds will support training and support to directly benefit participants. The grant will be presented to the Board of Supervisors on August 30, for approval. Development Set-Aside (DSA) Services As part of the budget process, the County Board of Supervisors reserved an allocation of $1.2 million for the following Development Set Aside (DSA) Agencies to support and promote economic development efforts that strengthen and broaden the County s employment base through job creation, business retention and attraction: 1. Monterey County Convention and Visitors Bureau: Purpose of Agreement: To develop and implement programs that will promote Monterey County as a leisure and business travel destination. 2. Arts Council for Monterey County: Purpose of Agreement: To strengthen Monterey County s economy and enrich the quality of life by nurturing and promoting artists and arts programs. 3. Monterey County Film Commission: Purpose of Agreement: To develop and implement programs that will promote Monterey County as a filmmaking destination, and generate increased business, revenues, and jobs throughout the County. 4. Monterey County Business Council: Purpose of Agreement: To facilitate and implement all aspects of the Competitive Clusters Project. The DSA agreements will be placed on the August 30, 2011, Board of Supervisors Agenda with a recommendation to approve the Agreements and to receive a brief presentation on how the DSA agencies work support the County s economic development efforts. The FY DSA Agencies Agreements are being developed to include a six-month review by the Economic Development Committee to provide opportunity to ensure that their work programs align with the deliverables and timelines that support the County Economic Development Strategy. The County s continued funding of the DSA Agencies will be based on their participation with the County s economic development efforts and how the Agencies work support the vision outlined by SRI for the County s economic development strategy. In addition, the DSA Agencies will be required to attend and participate in the Board Economic Development Committee meetings and give presentations as needed. Small Business Development Over sixty-seven percent of the jobs created in the last fifteen years result from expansion of existing small businesses. In Monterey County we have a rich array of small business development support organizations and services that would increase their impact with a more coordinated network. A new approach is needed; one that coordinates service delivery providers and tailors small business resources to the specific needs of the business community. Staff of the Workforce Investment Board and Redevelopment Agency, are moving forward to implement a new approach to small business development as summarized in the attached matrix. As part of the living laboratory one-on-one meetings with existing business owners in Castroville and East Alisal have been completed to clarify issues and opportunities. Surveys of Castroville residents were completed to identify community perception of the business 2

6 community. This information was then used by the providers to design a specific technical assistance program for future consideration by the business community. In six months, an evaluation report will be brought before the committee with highlights and suggestions for improvement. Findings and input from the Committee will be used to further refine the effort before replicating the model throughout other parts of the Monterey County region. Marketing Program Jurisdictions within Monterey County are presently receiving inquiries from companies and referrals from the State of California to explore opening a business in Monterey County. At present, the business attraction and marketing effort in the County is unorganized, creating significant duplication of effort and competition at the local level. The County is moving forward with a pilot collaboration including Gonzales, Seaside, and King City. As part of this effort, the group is developing operational protocol documenting how the agencies can work together. Staff is also developing a web based marketing package that could be hosted on any of the jurisdictions web sites. Jim Cook, Director Redevelopment and Housing Office 3

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8 CITY/COUNTY ECONOMIC SUMMIT Thursday, July 14, am 12pm CSU Monterey Bay Alumni & Visitors Center 100 Campus Center, Seaside CA REVISED AGENDA - 1. Welcome and introductions: Dianne Harrison, President of CSU Monterey Bay Supervisor Jane Parker, District 4 Supervisor Dave Potter, District 5; Chair of Economic Development Committee 2. Economic Strategic Planning Process Jeffery Alexander, SRI 3. City Presentations a. City of Del Rey Oaks b. City of Gonzales c. City of Greenfield d. City of King City e. City of Marina f. City of Monterey g. City of Pacific Grove h. City of Salinas i. City of Sand City j. City of Seaside k. City of Soledad 4. City/County Working Group 5. Close

9 July 20, 2011 Mayor City of Address Address Dear Mayor: We want to thank you for attending and participating in the July 14, 2011, City/County Economic Summit. We value your expertise and the sharing of information on your City s economic development goals, accomplishments, and opportunities. As a key stakeholder in our community, your input is vital in assisting the County in creating a broad based economic development strategy that will create greater economic opportunities and implement specific goals that can enhance our County s overall prosperity. As discussed, the County has contracted with SRI to develop a County-wide economic development strategy, which is comprised of three phases: 1) identify existing conditions and opportunities, 2) identify broad based economic initiatives, and 3) develop a specific implementation plan. Since the majority of development opportunities exist within the cities, we would like to form a working group to review SRI s draft strategic economic development plan, which would be comprised of one representative from each of the incorporated cities. Therefore, we have contacted your City Manager to facilitate the creation of a working group and have requested a representative be appointed from each city that is interested in participating. If you have any questions or would like additional information, please contact Jim Cook, cookj@co.monterey.ca.us or (831) We look forward to your continued involvement as the County and the cities continue collaboration to develop a regional economic development strategy that will enrich and strengthen our community. Sincerely, Supervisor Dave Potter, Chair Supervisor Lou Calcagno

10 COUNTY OF MONTEREY ECONOMIC DEVELOPMENT COMMITTEE MEETING: July 27, 2011 AGENDA NO.: 8 SUBJECT: Consider criteria for special handling projects. RECOMMENDATION: It is recommended that the Economic Development Committee consider criteria for special handling projects. BACKGROUND: On June 28, 2011, the Board of Supervisors considered approval of a revised Special Handling Procedure (SHP) for Economic Development Projects (copy of the Board Report is attached) and referred the matter back to staff to further refine criteria to use in selecting eligible projects. Concerns were raised that the criteria, as proposed, would not necessarily result in quality jobs. As originally drafted, the proposed criteria for special handling provided that projects be for a commercial, office/professional, or industrial development that could create 50 or more permanent, or 100 seasonal, full-time jobs; serve as a catalyst for economic activity; or significantly enhance local government revenue. Projects must also conform to the County General Plan. There are a number of options available to strengthen the existing criteria for special handling. In addition to meeting the previously proposed criteria, one option could be to limit special handling to projects that are within specified business classifications and have been identified as having high growth potential in Monterey County. Another optional criterion could require that projects demonstrate the potential to accommodate higher paying jobs. In 2003, the Office of Employment Training, Office of Economic Development, and the Monterey County Business Council commissioned a study that identified the types of businesses that could contribute to local economic development, based on local and national growth trends. A copy of the Monterey Business and Workforce study is available on the County s website at The report grouped existing and potential business opportunities into four categories. Special Handling could be limited to development projects that accommodate the types of businesses within the Star and Opportunity business categories in the report, including: Tourism; Agricultural Support; Transportation/Warehousing; Educational/research Facilities; Health Facilities; Business/Professional; and Manufacturing. Should the Board adopt this option, the list of eligible project types would logically be refined following adoption of the new economic development strategy. The second option would limit special handling to development projects which generate jobs with above-average earnings potential. According to data from SRI International, the average 1

11 earnings (wages, benefits & profit sharing) per worker in Monterey County in 2011, was $52,400. The draft procedure could be revised to provide that special handling would be limited to applications which demonstrate that the average earnings related to future jobs to be accommodated within the development, exceed the County average. This option is not recommended due to its complexity in collecting and verifying data as well as its potential negative impact in excluding developments that could offer long-term economic benefits to the agricultural and tourism sectors of the County s economy. Jim Cook, Director Redevelopment and Housing Office 2

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