CITY OF SAN JUAN BAUTISTA
ECONOMIC DEVELOPMENT CITIZEN ADVISORY COMMITTEE BYLAWS
Adopted January 6, 2023
A. POWERS AND DUTIES
The Economic Development Citizens Advisory Committee (EDCAC) is established pursuant to Attachment “A” of City Council Resolution 2021-74 and the respective members thereof shall perform the duties and activities described therein in order to accomplish the limited objective of recommending economic development strategies to the City Council.
The EDCAC may establish ad hoc committees. The EDCAC shall establish roles and responsibilities of any such committee deemed necessary by the EDCAC to accomplish the duties and complete the activities described in Attachment “A” of City Council Resolution 2021-74.
B. MEMBERSHIP
The EDCAC shall be established with eleven (11) voting members. Membership requirements and considerations include the following established via City Council resolution 2021-74:
1. Members shall reside, operate a business within, have gainful employment with, or be involved in a substantial, meaningful way with entities whose mission and activity includes education, social services, health services, historic preservation activities, culture and the arts.
2. Members shall take an interest in issues associated with economic development, business development, resiliency, the arts, culture, historic preservation, recreation and public education.
3. Members may have special knowledge, expertise, or skills related to economic development, business operation, public private partnerships including finance, federal state and local economic development programs.
4. Members may also have special knowledge or experience in the arts and culture, education, recreation, transportation or other qualifications related to economic development. Special knowledge, skills, or expertise is not mandatory for appointment to the committee.
In addition to membership requirements stated above, members shall review the City of San Juan Bautista Code of Ethics established by the City Council via Resolution 2018-17.
C. APPOINTMENTS
Appointments to the EDCAC shall be made by the City Council based on review of applications submitted on the City of San Juan Bautista standard application form.
D. TERMS
EDCAC BYLAWS ADOPTED _________
The Terms of the Committee members shall be as set forth in City Council Resolution 2021-74.
E. OFFICERS AND ROLES
1. The Chairperson shall be selected by the membership, from among the membership, to serve a one-year term.
2. The Chairperson shall preside at all regular meetings of the committee and may delegate duties to the members, subject to the approval of the Committee.
3. The Vice Chairperson shall serve in the capacity of the Chairperson in his or her absence, and shall assist the Chairperson in fulfilling his or her duties as requested.
4. A Recording Secretary shall keep a true record of minutes of all Committee meetings to be presented to the Committee for approval at the following regular meeting. The Committee may delegate this function to a City staff person. Minutes and any recordings shall be posted to the City’s website.
F. MEETINGS
1. The EDCAC shall typically meet monthly at a time and place established by the EDCAC and shall meet at least once quarterly.
2. Meetings shall be conducted in accordance with Roberts Rules of Order.
3. EDCAC meetings and communications shall be subject to the Brown Act, California Government Code Section 54950 et. seq.
4. Consistent with Powers and Duties Ad hoc sub-committee meetings of less than a quorum of the full membership of the committee may be held as needed to research and compile information to apprise the EDCAC. Such meetings shall not be subject to the Brown Act requirements.
5. Any member of the EDCAC who has a conflict of interest on any item before the EDCAC shall announce on the public record the nature of the conflict, vacate his/her seat, and recuse themselves from discussing and voting on said item.
G. QUORUM
A majority of the members of the committee shall constitute a quorum. A quorum is necessary at a regular meeting of the EDCAC for any action to be taken. In the event that there is no quorum, any discussions which are held by those assembled shall be regarded as informal and meeting minutes will not be prepared.
H. ATTENDANCE
EDCAC BYLAWS ADOPTED _________
An EDCAC member who is absent without excuse from two (2) regular meetings of the Committee in a six (6) month period shall automatically forfeit his/her position.
Absences will be deemed excused if the Chairperson receives notification in advance of the meeting and identifies the member as excused in the minutes of the meeting during which the absence is noted.
AMENDMENTS
Amendments to these bylaws may be initiated at any EDCAC meeting, to be voted upon not sooner than the next regularly scheduled meeting. Bylaws shall not conflict with the City Code or other Council approved policy, rule, or regulation.
Recommendation of any amendment shall require a majority vote of the Committee members.
Upon approval by the EDCAC, these bylaws and future amendments to these bylaws, shall take effect immediately.
Item: 9.C
City Council Meeting
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
DATE: JULY 18, 2023
DEPARTMENT: CITY MANAGER
FROM: DON REYNOLDS
BY: DON REYNOLDS
TITLE: APPROVE THE AMENDED AGREEMENT WITH THE CITY OF
HOLLISTER FOR DOMESTIC WASTEWATER TREATMENT
AND DISPOSAL
RECOMMENDED MOTION:
A motion is sought to approve the attached Amended Agreement for Domestic Wastewater Treatment and Disposal (“Agreement”) with the City of Hollister.
RECOMMENDATION:
Approve a Resolution authorizing the Mayor to execute the Amended Agreement for domestic wastewater treatment and disposal with the City of Hollister.
EXECUTIVE SUMMARY:
On May 16, 2023, the City Council adopted Resolution 2023-35, and approved a 40-year Agreement to send its wastewater to Hollister for treatment and disposal. When the Hollister City Council considered approving the Agreement June 20, 2023, some Councilmembers wewre concerned that the quantity of wastewater to be sent during the 40-year term were not sufficiently defined. The manner by which the maximum volume was determined, and related size of the pipe and its inherent volume restrictions ensured. Hollister then approved the Agreement with the caveat that “not to exceed” yearly average be added to the Agreement’s Section IIIA “but not more than .43 Million Gallon Per Day (“MGPD”) yearly average. The City engineering team and author of the Wastewater Master Plan (Akel Engineering) adopted in 2020, concur that adding this provision and amending the Agreement is not detrimental in any way to the intent of the Agreement or San Juan Bautista. The Agreement has been received executed by Hollister as Amended and presented in the attached proposed Resolution for the City Council approval.
Page | 2
BACKGROUND AND DISCUSSION:
Staff’s May 16, 2023 staff report provides a detailed background of this Agreement. The proposed change adding a cap of .43 MGPD is almost 2.6 times greater than the wastewater processed today, implying it can serve a city with a population of 5,600. The current general plan, or likelihood of future General Plans will not permit the City to grow at this rate in the next 40-years (almost 100 persons per year). The ten-inch pipe can cannot convey more than the volume specified not to exceed, so in addition to the proposed contractual changes, the physical change to a larger pipe would be required. The proposed cap simply gives Hollister another measure of comfort that this Agreement does result in a reckless service.
It should also be reassuring to all citizens involved, the San Jaun Bautista is prepared to its connection fee consistent with the current Hollister fee schedule in the amount of $2.47 million dollars. And that it will pay more than $40,000 per month to treat and dispose of the City’s wastewater. This is accomplished through grant and low interest loans, raising its sewer rates, and by savings experienced by decommissioning its own treatment plant.
By both Cities approving this amended agreement, the City of San Juan Bautista will be ready to award the contract to the lowest bidder, and start building the pipeline this summer. It is scheduled be completed in on year, June 30, 2024.
ATTACHMENTS:
Proposed Resolution with the Amended Agreement with the City of Hollister for Domestic Wastewater Treatment and Disposal
1862814v2
RESOLUTION NO. 2023- XXX
A RESOLUTION OF THE CITY OF SAN JUAN BAUTISTA APPROVING THE
AMENDED AGREEMENT WITH THE CITY OF HOLLISTER FOR DOMESTIC
WASTEWATER TREATMENT AND DISPOSAL
WHEREAS, on October 6, 2020, the City Council held a Town Hall meeting to discuss its options for solving the City’s source water and waste water compliance issues; and WHEREAS, on October 15, 2020, the City Council approved Resolution 2020-51, and agreed to two compliance projects from the analysis provided in the Preliminary Engineers Report (“PER”): “Alternative 3: Regionalization with Hollister WWTP and Off-Site Source Control Hollister Water Treatment Plant operated by the City of Hollister, and West Hills Water Treatment Plant operated by the San Benito County Water District)”; and WHEREAS, the Wastewater Compliance Project selected and approved by the US-EPA is defined as constructing a force main to export SJB’s domestic wastewater to the Domestic Wastewater Treatment Plant (“DWWTP”) owned and operated by Hollister; and WHEREAS, Hollister and SJB wish to cooperate to ensure an adequate delivery of domestic wastewater to Hollister’s DWWTP and to provide the benefits, including the conservation of local groundwater from improved wastewater treatment, directly to all consumers; and
WHEREAS, on September 7, 2021, Hollister and SJB entered into a Memorandum Of Understanding (as amended “MOU”) regarding the Parties’ agreement for SJB to send domestic wastewater to Hollister, and the MOU was amended by Addendum No. 1 to the MOU dated April 4, 2022; and
WHEREAS, since the MOU was amended and adopted, the City has financed the $18.7 million project, received approval of the 100% construction plans from the City of Hollister, County of San Benito, and the USDA, and after soliciting bids for the project is preparing to award the contract to build the SSFMPH; and
WHEREAS, the City has received, and complied with all California Environmental Quality Act (“CEQA”) requirements and all National Environmental Protection Act (“NEPA”) requirements, having the NEPA studies approved by the USDA, and publishing the CEQA Mitigated Negative Declaration in December 2021, without comment, and accepting all mitigation measures as described therein; and
WHEREAS, SJB and Hollister staff have negotiated a cooperative agreement to replace the MOU that was approved by the lender USDA, (Agreement for Domestic Wastewater Treatment and Disposal, “Agreement”), and on May 16, 2023, the City Council approved Resolution 2023-35 and sent the approved contract to Hollister for approval; and 1862814v2
WHEREAS, on June 20, 2023, the Hollister City Council considered the Agreement, and approved it with one amendment, changing Section III A. adding language concerning the volume of wastewater to be sent to Hollister capping the volume “but not more than 0.43 Million Gallons Per Day (“MGPD”) yearly average;” and
WHEREAS, this cap of .43 MGPD yearly average over a 40-year term of the Agreement, it is substantially higher than the .16 MGPD of wastewater generated today, is the maximum amount to be generated at buildout of the City over the next forty years, and in the foreseeable future; and
WHEREAS, the City of San Juan Bautista agrees with this amendment and recommends that the City also approve the Amended Agreement presented and attached to this proposed Resolution.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA NOW HEREBY FINDS:
1. That the recitals in this Resolution and accompanying staff report are true and correct and are hereby made a part of this Resolution.
2. That CEQA required a Negative Declaration for the SSFMPH and this was completed December 14, 2021, filed with the County Recorder’s Office and the State Office of Planning and Research on December 17, 2021, and no comments or concerns have been received by the City, as said public comment period is now closed.
3. That it hereby adopts this Resolution and approves the attached Amended Agreement for Domestic Wastewater Treatment and Disposal.
4. It authorizes the Mayor to the sign the Amended Agreement for Domestic Wastewater Treatment and Disposal.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a special meeting held on the 18th day of July 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Leslie Q. Jordan, Mayor
ATTEST:
___________________________
Elizabeth Soto, Deputy City Clerk
Item: 9.D
City Council
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL REPORT
DATE: JULY 18, 2023
DEPARTMENT: CITY MANAGER
FROM: DON REYNOLDS, CITY MANAGER
TITLE: RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN
AGREEMENT WITH SOUTH BAY CONSERVATION
RESOURCES, LLC FOR THE PURCHASE OF CONSERVATION
CREDITS TO MITIGATE THE UNAVOIDABLE, ADVERSE
ENVIRONMENTAL IMPACTS CAUSED BY THE
DECOMMISSIONING OF THE WASTEWATER TREATMENT
PLANT AS A RESULT OF BUILDING THE CITY’S NEW SEWER
FORCE MAIN PROJECT
RECOMMENDED ACTION:
It is recommended that the City Council adopt the attached Resolution authorizing the Mayor to execute an agreement for the purchase of conservation credits to mitigate the adverse environmental impacts caused by the decommissioning of the wastewater treatment plant as a result of building the City’s new sewer force main project.
BACKGROUND INFORMATION:
This matter was originally presented to the City Council as a discussion item November 15, 2022.
This report is an update of that November report, this time of the purpose of mitigating the unavoidable environmental impacts of decommissioning the wastewater treatment plant after the connection to Hollister is completed.
The City has been violating its treated effluent wastewater discharge permit (National Pollution Discharge Elimination System (“NPDES”) Permit since 2007, by sending too much salt into a creek. Since 2019, the City has been committed to ending its permit violations.
Part of solving this problem is diluting its drinking water with imported surface water to reduce the amount of salt. The second part of solving the problem is sending its wastewater to the Hollister treatment plant instead of the creek where it will be recycled and used for agriculture irrigation, and decommissioning its wastewater treatment plant. These solutions were approved by the City Council in 2020, and subsequently approved by the EPA, and Regional Water Quality Item: 9.D
City Council
July 18, 2023
Page | 2
Control Board. Collectively they are known as the “compliance projects.” The wastewater project is also known as the “sewer force main.”
The sewer force main has been designed, permitted, bid, a low bidder identified, with the award of the construction contract scheduled for the July 18, 2023 City Council meeting. During the environmental review process, United State Fish and Wildlife Services (“US FWS) were consulted and the City’s consultant EMC Planning Group completed a biological study of the Force Main Project’s environmental impacts. The project is mostly located within existing County roads but will cross a few irrigation ditches and impact approximately 2,000 square feet of habitat. The decommissioning of the wastewater treatment plant will drain the two ponds, and eliminate the wastewater treated effluent discharge into the creek. These actions are unavoidable, and will adversely impact the habitat of two federally designated endangered species; the California Tiger Salamander (“CTS”) and the California Red Legged Frog (“CRLF”). Impacts must be mitigated, or “compensated for.”
The adverse impact to the Creek is unavoidable, but the City is required to compensate for it. The biological report suggests that water be maintained in the ponds and in the creek during breeding seasons after the plant is decommissioned. That biologists monitor the creek and ponds to assure the habitat is preserved in perpetuity. But the City has no acceptable source of water for this purpose. Its ground water is too salty for the creek. It is also expensive.
In cases where a mandated project (EPA compliance project, or force main to Hollister) will have unavoidable adverse impacts on the environment, the attached article from the U.S. Fish and Wildlife Service “Conservation Banking Incentives for Stewardship” describes an option that the federal government allows to compensate for the loss of habitat off-site.
Conservation banks are permanently protected lands that contain natural resource values. These lands are conserved and permanently managed for species that are endangered, threatened, candidates for listing, or are otherwise species-at-risk.
Conservation banks function to offset adverse impacts to these species that occurred elsewhere, sometimes referred to as off-site mitigation. In exchange for permanently protecting the land and managing it for these species, the U.S. Fish and Wildlife Service (US FWS) approves a specified number of habitat or species credits that bank owners may sell. Developers or other project proponents who need to compensate for the unavoidable or other project proponents who need to compensate for the unavoidable adverse impacts their projects have on species may purchase the credits from conservation bank owners to mitigate their impacts.
This policy was established in 1995, and in that same year the State of California established a policy to promote regional conservation by encouraging “conservation banks” be formed to preserve existing habitats. As of 2011, 105 Conservation Banks have been approved in California by US FWS. As described in the US FWS article “compensation” occurs in the form of “Credits.” What are credits?
A credit is a defined unit of trade related to habitat or species of interest Item: 9.D
City Council
July 18, 2023
Page | 3
at the bank site. A credit may be equivalent to:
(1) an acre of habitat for a particular species;
(2) the amount of habitat required to support a breeding pair; (3) a wetland unit along with its supporting uplands; or (4) some other measure of habitat or its value to the listed species.
Methods of determining available credits may rely on ranking or weighting of habitats based on habitat condition and/or function, size of the parcel, or other factors.
The value of the credits are then used to pay for the biological monitoring required to make certain the habitats are being preserved. The US FWS regulates this activity closely. The option of buying credits to mitigate the environmental impact off-site appears to be the best and most practical approach to satisfying the elimination of habitat caused by the project and the decommissioning of the treatment plant.
In a Benito Link Article written by Leslie David July 21, 2018, titled “Portion of Sparling Ranch is now conservation bank” the concept of conservation banks was introduced to San Benito County. It describes the 8-year effort to establish this 2,000-acre wildlife conservation bank. “Credits” from this conservation bank were first used to compensate for the loss of habitat caused by the Santana Ranch development in Hollister. The credits available include the Red Legged Frog and Tiger Salamander, and are sold in one-acre habitat increments (option #1 above).
DISCUSSION:
The attached Resolution includes the proposed “Agreement for Sale of Conservation Credits.” Recitals “A” through “F” describe how South Bay Conservation Resources LLC developed the Sparling Ranch Conservation Bank, which was approved in 2017, and that it is currently in good standing with the US FWS. They describe that the multi-species credits for the two endangered species that the City project will impact are part of the Sparling Ranch Conservation Bank habitat, included in the “Enabling Agreement.” Recital “D” describes the City as the “Applicant,” its project, “which would unavoidably and adversely impact” (“the endangered species”) “and seeks to compensate for the loss (“of habitat”) by purchasing conservation credits from the Bank Sponsor (South Bay Conservation Resources, LLC). Recital “E” describes that this application to purchase credits has been approved by US FWS (“the Department”).
Attachment “A” to the Agreement is the project description summarized in this report. On Page 2, it describes the “Mitigation Plans for Impacted Habitat.” “CRLF” and “CTS” are the acronyms for the two species (Frog and Salamander)
Item: 9.D
City Council
July 18, 2023
Page | 4
Acres impacted are in four categories. The mitigation ratios are intended to state that if an agency or developer is going to impact habitat, the agency is required to not just preserve the same area somewhere else, but more, at the designated ratios. For example, if you impact an acre of breeding habitat, then you need preserve 3 times that area at a recognized mitigation bank. Temporary impacts (Project staging areas) are a 1:1 ratio.
The 7.8 credits are the required approved number of credits needed to compensate for the impacts of the project. They cost $60,000 per credit. This is how the cost is calculated at $468,000. The $468,000 cost of the Credits are included in the Project Budget as” Environmental Mitigation.” It is required by the regulators and the USDA (funding the Project) that the City acquire these Credits before it breaks ground on the Project. The City cannot delay this decision any longer without delaying the USDA approval to award the contract.
Since the City Council’s original consideration of this matter in November 2022, two other land banks have inquired. Neither have been approved yet by USFWS. Recent phone calls to them did not result in a return call.
Item: 9.D
City Council
July 18, 2023
Page | 5
FISCAL IMPACT:
The Project Budget includes a line item for $468,000 environmental mitigation measures. The low interest loan ($10 million, USDA, 2.5% interest) and three grants ($8 million) raised to pay for the Project will include paying for this cost as well.
ATTACHMENTS
1- Resolution with Agreement and Project Description attached 2- US FWS Summary of Conservation Banks
3- Benito Link Article from July 21, 2018
RESOLUTION NO. 2023- XXX
A RESOLUTION OF THE CITY OF SAN JUAN BAUTISTA ADOPTING A
RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT FOR THE PURCHASE OF CONSERVATION CREDITS FROM SOUTH
BAY CONSERVATION RESOURCES, LLC TO MITIGATE THE UNAVOIDABLE
ADVERSE IMPACTS CAUSED BY BUILDING THE SEWER FORCE-MAIN TO
HOLLISTER, AND THE DECOMMISSIONING OF THE WASTEWATER
TREATMENT PLANT
WHEREAS, for decades the City’s drinking water source has been ground water from wells, that is notoriously “hard,” high in minerals, and includes a high level of salt; and WHEREAS, the high levels of salt are passed through the City’s drinking water system to its wastewater treatment system, the wastewater system is not capable to eliminate salts, resulting in high salt levels being discharged into the creek; and WHEREAS since 2007, the City has violated its National Pollution Discharge Elimination System Permit discharging too much salt into a creek; and WHEREAS, on August 8, 2020, the City Council adopted Resolution 2020-42, and the City and EPA executed an Administrative Order on Consent (“AOC”), agreeing to resolve the City’s NPDES violations by December 2023, setting forth a schedule by which certain milestones will be reached; and
WHEREAS, on October 15, 2020, the City Council approved Resolution 2020-51, and agreed to two compliance projects from the analysis provided in the Preliminary Engineers Report (“PER”): “Alternative 3: Regionalization with Hollister WWTP and Off-Site Source Control (Hollister Water Treatment Plant operated by the City of Hollister), the “Sewer Force Main Project,” and West Hills Water Treatment Plant operated by the San Benito County Water District; and
WHEREAS, in September 2021, the City of Hollister executed an MOU and agreed to accept the City’s wastewater, and the sewer force main to Hollister project is now completely designed, and is fully funded; and
WHEREAS, the creek that currently receives the treated effluent, is habitat to federally threatened California red-legged frog (Rana draytonii) and California tiger salamander (Ambystoma californiense), in accordance with section 7 of the Endangered Species Act of 1973, as amended (Act) (16 U.S.C. 1531 et seq.). (“threatened species”); and WHEREAS, the City’s decision to decommission its treatment plant will leave the ponds dry, and by removing the effluent from the creek will leave the creek dry, and adversely impact if not eliminate some habitat of the threatened species (“environmental impacts”); and WHEREAS, before the Sewer Force Main Project can begin construction, the City must agree to the mitigation measures necessary to resolve the environmental impacts; and WHEREAS, as described in the staff’s report to the City Council November 15, 2022, the mitigation measure will compensate for the unavoidable adverse environmental impacts of the Sewer Force Main project will have on the threatened species, the City has the option to purchase conservation credits from a conservation bank to mitigate these impacts; and WHEREAS, the attached is an agreement with South Bay Conservation Resources LLC, developer of the Sparling Ranch Conservation Bank (“Conservation Bank”); and WHEREAS, the Agreement attached to the Resolution provides the details of this transaction, where the City has been authorized by the United State Fish and Wildlife Service (“Service”) and the California Department of Fish Wildlife (“Department”) to purchase 7.8 multi-species California tiger salamander and California red-legged frog credits (“Conservation Credits”) from the Bank Sponsor to compensate for the impacts of the Sewer Force Main Project.
The purchase price of 7.8 multi-species California tiger salamander and California red-legged frog credits are valued at $468,0000; and
WHEREAS, it has been determined that this purchase of Conservation Credits will satisfy the California Environmental Quality Act (“CEQA”) mitigation measures needed to offset the unavoidable adverse impacts to the environment when the City builds its force-main to Hollister and the wastewater treatment plant is decommissioned and ceases it disburse its effluent water into the creek; and
WHEREAS, the City Council agrees that this is the most efficient and cost-effective way to mitigate this unavoidable adverse impact and help preserve habitat for the threatened species, and agrees to purchase these Conservation Credits from South Bay Conservation Resources LLC, as provided for in the attached Agreement.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA NOW HEREBY FINDS:
1. That the recitals in this Resolution and accompanying staff report are true and correct and are hereby made a part of this Resolution.
2. It understands that the sewer force main to Hollister and the decommissioning of the wastewater plant will cause an unavoidable adverse impact on the habitat of the California Tiger Salamander and the California Red Legged Frog.
3. To mitigate this impact, the City has one viable option to compensate for the loss of habitat, and that is to buy conservation credits from a “Conservation Bank.”
4. South Bay Conservation Resources, LLC has developed the Sparling Ranch Conservation Bank, that is approved by the U.S. Fish and Wildlife Service and the California Department of Fish and Wildlife to offer conservation credits for sale as compensation for the loss of California tiger salamander and/or California redlegged frog habitat.
5. The City agrees to purchase 7.8 acres of these Conservation Credits to mitigate the adverse impact of building its fore-main to Hollister and decommissioning its wastewater treatment plant.
6. Authorizes the City Manager to execute the attached agreement in the amount of $468,000 to make this happen.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a regular meeting held on the 18th day of July, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Leslie Q. Jordan, Mayor
ATTEST:
_________________________________
Elizabeth Soto, Deputy City Clerk
Attachment- Agreement
Agreement for Sale of Conservation Credits
Bank CDFW Tracking No. 1798-2013-08-R4, USFWS File No. 08EVEN-2014-B-0086 This Agreement is entered into this day of , 2023, by and between South Bay Conservation Resources, LLC, a California limited liability company (Bank Sponsor) and City of San Juan Bautista (Project Applicant), jointly referred to as the “Parties,” as follows:
RECITALS
A. The Bank Sponsor has developed the Sparling Ranch Conservation Bank (Bank) located in Santa Clara and San Benito Counties, California; and
B. The Bank was approved by the U. S. Fish and Wildlife Service (Service) and the California Department of Fish and Wildlife (Department) on June 13, 2017, and is currently in good standing with the Service and the Department; and
C. The Bank has received approval from the Service and Department to offer California tiger salamander (Ambystoma californiense) and California red-legged frog (Rana draytonii) credits for sale as compensation for the loss of California tiger salamander and/or California red-legged frog habitat through the Sparling Ranch Conservation Bank Enabling Agreement (Bank Agreement); and D. Project Applicant is seeking to implement the project described on Exhibit “A” attached hereto (Project), which would unavoidably and adversely impact California tiger salamander and/or California red-legged frog, and seeks to compensate for the loss of California tiger salamander and/or California redlegged frog by purchasing Conservation Credits from Bank Sponsor; and E. Project Applicant has been authorized by the Department, File No. 2081-2022-033-04, USFWS File No. 08EVEN00-2022-0031493-S7 to purchase from the Bank Sponsor 7.8 multi-species California tiger salamander upland habitat and California red-legged-frog credits upon confirmation by the Bank Sponsor of credit availability/adequate balance of credits remaining for sale; and F. Project Applicant desires to purchase from Bank Sponsor, and Bank Sponsor desires to sell to Project Applicant 7.8 multi-species California tiger salamander upland habitat and California red-leggedfrog credits; Now, therefor, the parties agree as follows:
1. Bank Sponsor hereby sells to Project Applicant and Project Applicant hereby purchases from Bank Sponsor 7.8 multi-species California tiger salamander upland habitat and California redlegged-frog credits for the purchase price of $468,000. The Bank Sponsor will then deliver to Project Applicant an executed Bill of Sale in the manner and form as attached hereto and marked Exhibit “B”. The purchase price for said credits shall be paid by cashier’s check or, at the option of Bank Sponsor, wire transfer of funds according to written instructions by Bank Sponsor to Project Applicant.
2. The sale and transfer herein is not intended as a sale or transfer to Project Applicant of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest of the foregoing.
3. Project Applicant shall have no obligation whatsoever by reason of the purchase of the Conservation Credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated or liable for the success or continued expense or maintenance in perpetuity of the credits sold, or the Bank. Pursuant to the Bank Agreement and any amendments thereto, Bank Sponsor shall monitor and make reports to the Service and Department on the status of any Conservation Credits sold to Project Applicant. Bank Sponsor shall be fully and completely responsible for satisfying any and all conditions placed on the Bank or the Conservation Credits by the Service, Department, and other state or federal jurisdictional agencies.
4. The Conservation Credits sold and transferred to Project Applicant shall be nontransferable and non-assignable, and shall not be used as compensatory mitigation for any other Project or purpose, except as set forth herein.
5. Project Applicant must exercise his/her/its right to purchase the Conservation Credits within 20 days of the date of this Agreement. After the 20 day period this Agreement will be considered null and void.
6. Upon purchase of the credits specified in paragraph D above, the Bank Sponsor shall submit to the CBRT Members listed in the Notices section of the Bank Agreement / Bank Enabling Instrument, copies of the: a) Agreement for Sale of Conservation Credits; b) Bill of Sale; c) Payment Receipt; and d) an updated ledger. The updated inventory / ledger must detail: i) Project Applicant; ii) Project Name; iii) Status (sale complete/sale not complete); iv) Credit Sale Date; v) Service and/or Department File Number; vi) U.S. Army Corps of Engineers File Number (if applicable); vii) Total Number of Credits Authorized to Sell; vii) Total Number of Credits Sold to Date (inclusive); and ix) Balance of all Credits Available. The inventory / ledger should include all sales data from bank opening/establishment to the present.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.
BANK SPONSOR:
South Bay Conservation Resources, LLC, a California limited liability company By: Stonecreek Properties, LLC, a California limited liability company Its: Manager
By:
(Michael Anderson, Vice President)
PROJECT APPLICANT:
City of San Juan Bautista
Date:
By: Date:
(Don Reynolds, City Manager)
UNITED STATES FISH AND WILDLIFE SERVICE:
By: Date:
CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE:
By: Date:
Exhibit “A”
Project Description:
See Attachment
[Project Location: San Juan Bautista Wastewater Treatment Plant, Pipeline Route, Hollister Wastewater Treatment Plant (Department File No. 2081-2022-033-04, USFWS File No. 08EVEN00-2022-0031493- S7), San Benito County, California]
Exhibit “B”
BILL OF SALE
Contract #SRCB-22-07
Bank CDFW Tracking No. 1798-2013-08-R4, USFWS File No. 08EVEN-2014-B-0086 Project Applicant Service No.: Department File No. 2081-2022-033-04, USFWS File No. 08EVEN00- 2022-0031493-S7
In consideration of $468,000 receipt of which is hereby acknowledged, South Bay Conservation Resources, LLC, a California limited liability company (Bank Sponsor) does hereby bargain, sell and transfer to City of San Juan Bautista (Project Applicant), 7.8 multi-species California tiger salamander upland habitat and California red-legged-frog credits in the Sparling Ranch Conservation Bank in Santa Clara and San Benito Counties, California, developed, and approved by the U. S. Fish and Wildlife Service and California Department of Fish and Wildlife.
Bank Sponsor represents and warrants that it has good title to the credits, has good right to sell the same, and that they are free and clear of all claims, liens, or encumbrances.
Bank Sponsor covenants and agrees with the buyer to warrant and defend the sale of the credits hereinbefore described against all and every person and persons whomsoever lawfully claiming or to claim the same.
DATED:
South Bay Conservation Resources, LLC, a California limited liability company By: Stonecreek Properties, LLC, a California limited liability company Its: Manager
By:
(Signature)
Name:
(Name and Title)
Exhibit “C”
Sparling Ranch Conservation Bank
CDFW Tracking No. 1798-2013-08-R4, USFWS File No. 08EVEN-2014-B-0086
MULTI-SPECIES CREDITS
(CALIFORNIA TIGER SALAMANDER AND CALIFORNIA RED-LEGGED FROG):
PAYMENT RECEIPT
PARTICIPANT INFORMATION
Name / Contact: City of San Juan Bautista
Address: P.O. Box 1420
San Juan Bautista, Ca
Telephone: 831-623-4661 x14
PROJECT INFORMATION
Project Description: San Juan Bautista Wastewater Treatment Plant, Pipeline Route, Hollister Wastewater Treatment Plant
Service/Department File
Number: Department File No: 2081-2022-033-04
Other Agency File
Number(s): USFWS File No.: 08EVEN00-2022-0031493-S7
Species/Habitat Affected: Multi-species California tiger salamander upland habitat and California red-legged-frog
Credits to be Purchased: 7.8
Payment Amount: $468,000
Project Location: San Juan Bautista
County/Address: San Benito County
PAYMENT INFORMATION
Payee: South Bay Conservation Resources, LLC, a California limited liability company Payer: City of San Juan Bautista
Amount: $468,000
Method of payment: Cash Check No. Money Order No.
Received by: Date:
(Signature)
Name: Title:
San Juan Bautista to Hollister Sewer Force Main
Project Description
The project includes repurposing San Juan Bautista’s existing Wastewater Treatment Plant (WWTP) influent pump station and development of a new 10-inch diameter high-density polyethylene (HDPE) force main that would carry sewage from the San Juan Bautista WWTP to a manhole just upstream of the Hollister Domestic WWTP influent pump station (Figure 1, Location Map).
Influent Pump Station and WWTP Storage
The City’s current average dry weather flow (ADWF) is approximately 160,000 gpd (gallons per day) with an estimated build-out ADWF of 420,000 gpd. A new primary pump station will be constructed that will house three submersible pumps which will serve as the primary pumps to convey city wastewater to the Hollister Domestic WWTP. The three primary submersible pumps will be nearly capable of conveying peak hour wet weather flows through the intermediate planning horizon (2035). The existing San Juan Bautista WWTP influent pump station will be repurposed to house two submersible pumps which will serve as the emergency storage pumps for peak flow shaving during extreme wet weather events. The existing San Juan Bautista WWTP ponds will be converted to emergency storage basins. The lower pond will be lined in the future to serve as an equalization basin when the build-out peak-hour wet weather flows are realized. Two sump (i.e., drain) pumps will be available to support the storage function of the existing ponds. The remaining existing facilities will be decommissioned (existing pumps, aerators, filters, and ultraviolet disinfection equipment).
Force Main
The proposed route runs the new force main inside the existing, unused 18-inch gravity sewer in San Juan Bautista north for about 0.43 miles until it reaches the northwest end of Caetano Place. From there the proposed 10-inch, 6.97-mile main route is along First Street, where it crosses No Name Creek to Prescott Road, where it crosses a drainage near the True Leaf Farms agricultural processing facility and turns east on San Justo Road. At Lucy Brown Road, the route turns south for a short length before running east again on Duncan Road. At Bixby Road the route turns south and then turns east on Freitas Road. The route then turns north on Mitchell Road until it reaches the southeast border of the Hollister Domestic WWTP site. The route then follows the southern border of the Hollister Domestic WWTP percolation ponds until crossing State Route 156, through an existing 42-inch casing pipe under the highway, heading further east until it terminates at the Hollister Domestic WWTP existing influent manhole. The proposed route is almost entirely in Project Description 1 EMC Planning Group
San Juan Bautista to Hollister Sewer Force Main Project public rights-of-way. Figure 2, Proposed Route and Staging Area Parcels, illustrates the proposed route of the sanitary sewer force main.
The area of impact for the force main will include a trench width up to three-feet wide and will be seven to eight feet deep along most of the route, and up to 15-feet deep where it will be placed within the existing 18-inch sewer line. Once the force main has been placed, the full drive lane will be repaved. During construction, it is likely that more than a three-foot wide area would be disturbed, though most of the disturbed area will be in the existing lane and road shoulder. Where the route crosses water features, pipe bridges will be utilized.
The proposed main improvements will be primarily within the County road rights-of-way, which is generally 40 to 60 feet. Agricultural crops or other improvements within the rights-of-way will not be disturbed.
In addition to the impact area, six staging areas have been identified along the route. These staging areas are located on active agricultural fields or equipment storage areas devoid of native vegetation.
Staging areas will be a small portion of the overall parcel, as shown on Figure 2, Proposed Route and Staging Area Parcels. Based on field surveys and a review of aerial photographs, the staging areas are not considered potential breeding or upland habitat due to the distance between the staging areas and any known breeding or grassland habitats and ongoing intensive agricultural activities.
Mitigation Plans for Impacted Habitat
The following table summarizes the mitigation credits required to offset the temporary and permanent impacts to CTS and CRLF breeding and upland habitats. Credits will be purchased at Sparling Ranch Conservation Bank.
Table 1. Temporary and Permanent Impacts to CTS and CRLF Habitat and Impact Type Acreage
Impacted
Mitigation
Ratio
Subtotal
Permanently Impacted Breeding Habitat
(SJB WWTP Ponds, Crossings)
1.1 3:1 3.3
Temporarily Impacted Breeding Habitat
(Crossings)
0.0 (rounded)
3:1 0
Permanently Impacted Non-Breeding Aquatic Habitat
(No Name Creek, Adjacent Pond)
1.3 2:1 2.6
Permanently Impacted Upland Habitat
(Pipeline Construction, WWTP Improvements)
0.07 2:1 0.1
Temporarily Impacted Upland Habitat
(Pipeline Construction, WWTP Improvements)
1.8 1:1 1.8
Total 7.8
Project Description 2 EMC Planning Group
San Juan Bautista to Hollister Sewer Force Main Project eQ152
80101
eQ156
eQ25
eQ25
80101
San Juan eQ156
Hollister
Bautista
Modesto 680
280 5
San Jose
80101
Gilroy e
o152
Santa Cruz
e e
o
o1 * 156
Hollister
Salinas
Monterey e
o68 e
o25
80101
eo1
Regional Location
0 2 m ies
Proposed Route Source: ESRI 2019
Figure 1
Location Map
San Juan Bautista to Hollister Sanitary Sewer Force Main Project Crossing 2 San Benito River
156
Crossing 1
Duncan Road
Olympia Ave
Hollister
WWTP
No Name
Creek
San Juan
Bautista
WWTP
Freitas Road
156
156B
156
156 156
0 2 200 feet
Existing 18" Gravity
Sewer - 0..4 mi 10"
HDPE Forcemain - 7.0 mi
Bixby Road
Staging Area Parcels Staging
Areas
Source: ESRI 2022, Stantec 2022
Figure 2
Proposed
Route and
Staging Area
Parcels
San Juan Bautista to
Hollister Sanitary
Sewer Force Main
Project
Item: 9.E
City Council Meeting
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
DATE: JULY 18, 2023
DEPARTMENT: CITY MANAGER
FROM: DOUG PIKE, CITY ENGINEER (MNS)
BY: JERRY SANGUINETTI, DEPUTY PUBLIC WORKS DIRECTOR
(MNS)
TITLE: ACCEPT THE 2022-23 PAVEMENT MANAGEMENT PROGRAM
PROJECT IMPROVEMENTS, WHICH INCLUDE STREETS,
CURB AND GUTTER, SIDEWALK, AND ADA COMPLIANT
RAMP, AND RELEASE ALL RETENTIONS AND
PERFORMANCE BONDS TO MCKIM CONSTRUCTION
RECOMMENDED MOTION:
A motion is sought to approve a Resolution accepting the 2022-23 pavement management program project improvements, which include streets, curb and gutter, sidewalk, and ADA compliant ramp, and release all retentions and performance bonds to McKim Construction and close the project.
RECOMMENDATION:
Staff has reviewed, and the City Manager and City Engineer recommend that the City accept the 2022-23 pavement management program project improvements, which include streets, curb and gutter, sidewalk, and ADA compliant ramps, and release all retentions and performance bonds to McKim Construction.
EXECUTIVE SUMMARY:
A requirement for the use of local transportation fund Measure G is to adopt a comprehensive Pavement Management Plan that prioritizes systematically, the needs for street repairs in the City. This is the City’s first project of this kind, that addressed work needed on 11 City streets.
The project was estimated to cost $1.4 million, and the final cost (not including CSG design) is $1.36 million as follows:
Page | 2
The improvements have been proven to meet City standards, and are recommended for acceptance allowing the retention and performance bonds be released to McKim Construction and close the project.
BACKGROUND:
On October 18, 2022, The City Council Approved a resolution awarding a public works construction contract in the amount of $1,313,985.80 to McKim Corporation to construct the 2022- 23 Pavement Management Program Project which will remove and replace damaged and deteriorated roadway, construct new curb and gutter, remove and replace existing, damaged curb and gutter, install new sidewalks, retrofit existing pedestrian ramps, remove and replace striping and pavement markings, and perform necessary utility adjustments at various locations throughout the city.
In addition, due to advanced deteriorating pavement conditions, the contract was modified by Change Order #1 to include additional milling to remove more of the existing paving. Also included in Change Order #1 was the deletion of all work on 7th Street and any micro surfacing portion of the project to help offset additional milling costs. Church Street had two locations which required modifications to the original grades which required two Time and Materials(T&M) work orders to modify curb and gutter grades to correct functional use for drainage and vehicle clearances.
The project included the following work:
1. 2” Milling and dig outs, 2” edge grinding, 2” AC Overlay
2. Restriping of all Overlaid streets
3. Installation of new and replacement of damaged curb, gutter, and sidewalk
4. New and replaced, ADA compliant ramps.
Final Budget accounting is as follows:
Original Contract Amount: $1,313,965.40
CO#1 2” Addition of 2” milling area $57,909.24
CO#1 Remove all work on 7th Street and Micro
Surfacing (including Associated Striping) - $102,602.68 T&M Work Order #1 $2,461.00
T&M Work Order #2 $13,994.81
Total Final Contract Amount: $1,285,727.77
PMP 22/23 Final Cost
Construction $ 1,285,728
Const Mgmt $ 28,920
Engineering/Project Mgmt $ 19,041
Inspection $ 25,665
Total $ 1,359,354
Item: 9.E
City Council Meeting
July 18, 2023
Page | 3
Summary Approved Contract Change Orders and T&M Work:
CCO #1 Due to extreme weather conditions which exacerbated the deterioration of existing pavement conditions, the original contract requirements for milling were insufficient and prompted a contract modification to include an additional 85,000 square feet of milling at a 2-inch depth to remove further deteriorated paving. To offset the additional milling required to provide stable substrate for the 2-inch asphalt concrete overlay, all work on 7th Street was deleted and the Micro Surfacing and associated striping in the area was deferred in order to prevent project cost overruns.
Micro surfacing was subsequently deleted from the contract altogether with the understanding that in doing so, and with the necessary addition of CCO #1, that the overall contract would remain near the amount originally awarded and potentially avoid a possible claim from the contractor.
This resulted in a near net zero overall cost which is accounted for in line-item quantities. The final cost of the 2-inch milling item added by this change order was $57,909.24. The final savings achieved by removing micro surfacing (including associated striping) and all work on 7th Street amounted to $102,602.68.
T&M Work Order 1: Additional work was needed to correct a design deficiency. The original curb and gutter alignment at the mobile homes on Church Street were going to trap water behind the new curb and gutter. The grades and alignment needed to be modified to provide positive drainage from the site into the new curb and gutter. This work was accomplished by implementing a Time and Materials (T&M) work order for $2,461.00.
T&M Work Order 2: Additional work was required on upper Church Street to adjust curb and gutter grades to accommodate the steep existing driveway slope and allow for functional vehicle clearance. This was accomplished by implementing a Time and Materials (T&M) work order for $13,994.81.
Summary of Contract Project and Construction Management • Project Management by MNS began in late October 2022 and included advertising, Bid Analysis, Award, contract signing and project initiation. This cost paid to MNS for these services was $19,041
• Construction Management was performed by MNS Engineers, Inc. This effort included responses to requests for information, submittal review, document management, conflict and plans interpretation and conflict resolution, and change orders and project close-out.
The expected final cost for these services paid to MNS is $28,920. • Project Inspection was initially started by CSG Inc. but was quickly assumed in February 2023 and finished by MNS Engineers, Inc. This change was associated with the change in City Engineer. This effort included Field inspection and review, coordination of noticing and public communications and resolution of conflicts. This cost paid to MNS for these services was $25,665
The City holds a 1-year maintenance bond that shall remain in effect for 1 year from the time of acceptance.
Page | 4
The City’s CM and inspection consultant (MNS Engineers) worked with the contractor to redesign the project in a manner that would efficiently utilize the available funding to ensure and extend the longevity of the roadway and secure the highest pavement management index score possible.
ACCEPTANCE OF PUBLIC IMPROVEMENTS
The City Engineer has inspected all improvements and is satisfied that they have been completed in a professional manner and recommends the city accept the improvements, release the construction bond(s) as appropriate, and authorize release of progress payment retention and payment of a final invoice.
FISCAL IMPACT
All costs of developing and constructing the Pavement Management Improvement Project will be from funds budgeted and allocated for this purpose from the programmed Regional SB1-(RMARA and STWP) Funds, Special Measure G Local Transportation Funds, and Gas Tax Funds.
ATTACHMENTS:
Resolution
RESOLUTION NO. 2023-__________
A RESOLUTION ACCEPTING THE SAN JUAN BAUTISTA PAVEMENT
MANAGEMENT PROJECT IMPROVEMENTS, COMPLETED BY MCKIM CO.,
WHICH IMPROVEMENTS INCLUDE REMOVE AND REPLACE DAMAGED AND
DETERIORATED ROADWAY, CONSTRUCT NEW CURB AND GUTTER, REMOVE
AND REPLACE EXISTING, DAMAGED CURB AND GUTTER, INSTALL NEW
SIDEWALKS, RETROFIT EXISTING PEDESTRIAN RAMPS, REMOVE AND
REPLACE STRIPING AND PAVEMENT MARKINGS
WHEREAS, the City of San Juan Bautista has funds budgeted and allocated for from programmed Regional SB1- (RMARA, & STWP) Funds, Measure G Local Transportation Funds (LTF), Gas Tax Funds, and
WHEREAS, the City contracted with McKim Co. for construction of the pavement improvements for $1.3 million; and
WHEREAS, the work was contracted for and completed in compliance with the State Public Contract Code, and the City’s procurement procedures set forth in section 2-8-050 and 2- 8-100 of the Municipal Code; and
WHEREAS, All work as authorized in the Contract and subsequent change orders was inspected, corrections made as necessary and completed within the requirements of the plans and specifications of the contract; and
WHEREAS, The contractor has provided a 1-year Maintenance Bond for said improvements; and
WHEREAS, City Staff recommend the City Council accept the improvements constructed by McKim Co. and authorize the release of the final invoice for retention, and release the performance bonds.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of San Juan Bautista that:
1. The City Council hereby accepts the improvements constructed by McKim Co.
2. The City Manager is authorized to approve the final invoice and release of 10% retention withheld from previous invoices submitted by the McKim Co.; and
3. The City Manager is authorized to release any portion of the construction bond(s) as appropriate upon satisfaction of the Contractor’s legal responsibility.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista, at a regularly scheduled meeting of the City Council held on the 18th day of July, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
___________________
Leslie Jordan, Mayor
ATTEST:
____________________________
Elizabeth Soto Deputy City Clerk
Item: 9.F
City Council Meeting
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
DATE: JULY 18, 2023
DEPARTMENT: CITY MANAGER
FROM: DON REYNOLDS
BY: DON REYNOLDS
TITLE: APPOINT A CITY ATTORNEY AD-HOC SELECTION
SUBCOMITTEE
RECOMMENDED MOTION:
Approve the attached proposed Resolution appointing two councilmembers to a City Attorney Ad-Hoc Selection Committee and approve the selection process outlined in the attached Request for Proposals (“RFQ”).
RECOMMENDATION:
It is recommended that the City Council consider the City Attorney Selection Process proposed in the attached RFQ, approve or amend it, and appoint two Councilmembers to a City Attorney Ad-Hoc Selection Subcommittee to screen the responses received, bring forward to the whole City Council for consideration, and upon having selected a firm, the Subcommittee will disband.
EXECUTIVE SUMMARY:
A scan of the Municipal Code for “City Attorney” brings forward no specific definitions for the position, or the selection process. But Section 2-2-105 of the Municipal Code, states clearly that the selection and appointment are not made by the City Manager, but by the City Council. The Wellington Law Firm has represented the City for more than a decade, and the current representative announced his reti8rement May 15, 2022, to occur in mid-August. The attached RFPQ was released June 30th, 2023, to expedite the recruitment for a new law firm to represent the City. If after review July 18, the City Council requests that it be amended, then an addendum to the RFQ will be issued.
BACKGROUND:
As a contract city with now 12-fulltime approved positions in the Budget, the City relies on several contractual services, that include the City Attorney. Every City has a wide variety of legal services that need to be carefully and mindfully addressed by solid legal advice; Page | 2
Community development, CEQA, risk management, human resources, and contract to name a few. The City is fortunate to have the same firm representing it for more thana decade. But as of May 15, 2022, when Robert W. Rathie submitted his letter of Resignation, the City is in position to search for a new law firm.
The City Attorney reports to the Council. A selection system needs to be established that allows all of the City Council to participate. As is done with appointing the City Manager, and Planning Commissioners, it is recommended that a two-member ad-hoc committee be established to screen the responses received, and recommend a short list to the City Council for the purpose of interviewing prospective qualified firms.
FISCAL IMPACT:
The City budgets $55,000 annually for legal services. For special disciplines like water and wastewater issues, special legal counsel is retained and paid from these enterprise funds.
ATTACHMENT:
Proposed Resolution w/RFQ
RESOLUTION NO. 2023- XXX
A RESOLUTION OF THE CITY OF SAN JUAN BAUTISTA ESTABLISHING A
CITY ATTORNEY AD-HOC SELECTION SUBCOMMITTEE
WHEREAS, Municipal Code Chapter “2-2-105 Chief executive.” States that “The City Manager shall be the chief executive of the City government under the direction and control of the Council except as otherwise provided in this ordinance. He/She shall have authority over all other officers and employees except the City Clerk, City Treasurer and City Attorney.”; and WHEREAS, the Municipal Code does not otherwise define or describe the role or duties of the City Attorney, but implies that it is appointed by and answers directly to the City Council; and
WHEREAS, the current City Attorney has announced his retirement in August of this year, and the City Manager has drafted a Request for Proposals (RFP) to solicit a new City Attorney or law firm to represent the City; and
WHEREAS; in the RFP, it describes the selection process for a new City Attorney to include a two-member Ad-Hoc Committee of the City Council to review proposals from interested qualified firms or individuals that wish to be considered for this appointment, a possible interview with the whole City Council to decide on a law firm or individual that would best fit the City, and make a recommended appointment to fill the vacancy; and WHEREAS, the RFP was reviewed by the City Attorney and published June 30, 2023 to accommodate his retirement in August, and it can be amended by addendum following the July 18, 2023 City Council consideration, if changes are necessary; and WHEREAS, the City Council has reviewed and approves this selection process; and
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SAN JUAN BAUTISTA NOW HEREBY FINDS:
1. That the recitals in this Resolution and accompanying staff report are true and correct and are hereby made a part of this Resolution.
2. That it hereby approves the City Attorney Selection Process described in the RFP.
3. It appoints Councilmembers ___________ and __________ to serve on the City Attorney Ad-Hoc Selection Subcommittee.
4. That the Subcommittee will consider every and all qualified applications to fill this vacancy, and return to the City Council with a recommendation for interviews that includes the whole Council in making a final appointment decision.
PASSED AND ADOPTED by the City Council of the City of San Juan Bautista at a special meeting held on the 18th day of July, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Leslie Q. Jordan, Mayor
ATTEST:
___________________________
Elizabeth Soto, Deputy City Clerk
REQUEST FOR QUALIFICATIONS
FOR
CITY ATTORNEY AND CITY LEGAL SERVICES
Proposal Release Date 06/30/2023
Last Date/Time for Questions 07/19/2023
2:00 pm PST
Proposals Due at City 07/28/2023
2:00 pm PST
Submit Proposals to:
Don Reynolds, City Manager
[email protected]
Table of Contents
BACKGROUND............................................................................................................................3
NOTICE TO PROPOSERS
Request for qualifications (RFQ) Purpose ....................................................................................4 Description of Work ...................................................................................................................4 Availability and Clarification of Documents.................................................................................5 Question Submittal ....................................................................................................................5 Estimated Timeline.....................................................................................................................6
PROPOSAL PREPARATION
1. Authorized to Practice in California .........................................................................................5
2. Independence.........................................................................................................................6
3. Firm Qualifications and Experience .........................................................................................6
4. Partner, Superisory and Staff Qualifications ............................................................................6
5. Similar Engagements with Other Government Entities.............................................................6
6. Litigation and Claims...............................................................................................................6
7. Specific Project Approach........................................................................................................7
8. Pre-Award Expenses...............................................................................................................7
9. Cost Proposal Rate Sheet ........................................................................................................7
SCOPE OF SERVICES
Specific Company Information ....................................................................................................8 Current Client/Conflict of Interest...............................................................................................9 Compensation and Reimbursement..........................................................................................10
REQUEST FOR QUALIFICATIONS SUBMITTAL
1. Late Proposals......................................................................................................................11
2. Withdrawal of Modification of Proposals ..............................................................................11
3. Confidential Information.......................................................................................................11
4. Proposal Acceptance and Rejection.......................................................................................11
SELECTION PROCESS
SELECTION PROCESS .................................................................................................................12 EVALUATION CRITERIA .....................................................................Error! Bookmark not defined.
CONTRACT TERM......................................................................................................................14 KEY PERSONNEL .......................................................................................................................14
FAITHFUL PERFORMANCE BOND.......................................................Error! Bookmark not defined.
INSURANCE ..............................................................................................................................15 BOND/INSURANCE SUBMITTAL.........................................................Error! Bookmark not defined.
INDEMNIFICATION ...................................................................................................................15 TERMINATION..........................................................................................................................15 PROTESTS.................................................................................................................................16 NO COMMITMENT TO AWARD .................................................................................................16 OWNERSHIP OF WORK PRODUCT .............................................................................................16 NON-ENDORSEMENT................................................................................................................17 GOVERNING LAW.....................................................................................................................17 COMMENTS/EXCEPTIONS.........................................................................................................17
BACKGROUND
The City of San Juan Bautista incorporated in 1869 as a General law City, and is one of two municipalities in San Benito County (the other being Hollister) that is home to approximately 2,000 residents, an iconic Mission, and a historic State Park and registered historic downtown 3rd Street. The City is surrounded by an agricultural community that is currently the largest producer of organic salads in the United States, based just outside of the City limits.
San Juan Bautista’s economy relies on its ability to preserve and promote its historic culture to maintains and promote its unique tourist destination. In addition to those resources located within the City, other local attracdcti8nions include the gateway to the Pinnacles National Monument, historic De Anza Trail, and Fremont Peak Observatory situated atop Fremont Peak in the Gavilan Range. This is a non-profit astronomical institution serving the local community.
The City Council consists of five elected Councilmembers elected at-large, with annual rotating appointments of Mayor and Vice Mayor. The City Treasurer is elected, and the City Clerk is appointed by a City Manager. The City Manager is also appointed by the City Council, and oversees the daily operations of ten full-time staff. Two new full-time positions were approved in the Budget for next Fiscal Year. The City provides both water and wastewater services to its 820 households, commercial and industrial users. It is a member of the California Intergovernmental Risk Authority (“CIRA”). The City relies heavily on contract services including law enforcement, fire protection, City Engineer and Building Official.
San Juan Bautista’s proximity to Santa Clara’s Silicon Valley makes the City a vital neighbor to the nation’s technology industry. The City has successfully resisted pressure to become a bedroom community to Santa Clara County. It also serves travelers from Central Coast and the San Juaquin Valley as they travel to-and-from between State Highways 101 and 5.
SAN JUAN BAUTISTA
NOTICE TO PROPOSERS
Notice is hereby given that the City of San Juan Bautista (City) will receive proposals describing qualifications (RFQ) for CITY ATTORNEY & CITY LEGAL SERVICES at:
City of San Juan Bautista
ATTN: Don Reynolds, City Manager
311 Second Street
P.O. Box 1420
San Juan Bautista, CA 95045
until 07/28/2023 at 2:00 PM, PST. Email submission may be made in lieu of mailing a hard copy of the proposal to: [email protected] There will be no public bid opening.
Request for Qualifications (RFQ) Purpose
The goal of the City is to retain a Professional Law firm with experience in California as a City Attorney, and all other legal fields related to municipal government. The Law Firm will be familiar with “Best Practice” legal techniques in their particular line of work, and if necessary be capable of defending the City in a court of law. The City is requesting proposals from consultants specializing in the required services outlined in the Scope of Services section of this Request for Proposal.
Description of Work
The proposed work is officially known as the Specifications, as further described in the SCOPE OF SERVICES section of this RFQ.
Availability and Clarification of Documents
This RFQ and any addendums will be posted on the City website at:
https://www.san-juan-bautista.ca.us
Question Submittal
Any questions related to this RFQ should be submitted in writing preferably by email to Don Reynolds, City Manager, at [email protected]. Questions received by the City, including responses, will be consolidated and posted on the City website. The deadline for submitting questions is 2:00 pm PST 07/21/2023 Material changes, if any, to the proposal requirements will be addressed by written addendum.
Respondents will provide written acknowledgment of each addendum issued with their proposal submission. Oral explanations will not be binding. No clarifications, interpretations or addenda shall be received issued after 2:00 pm PST on 07/19/23 with the last day for the City to provide written replies on its web-site is 07/21/2023. It is the sole responsibility of the respondent to check the City website to determine if an addendum has been posted.
Estimated Timeline
RFQ Release Date 06/30/2023
Questions Due 07/19/2023, 2:00 PM PST
Clarifications/Addenda Issued 07/21/2023
RFP Response Submittal 07/28/2023, 2:00 PM PST
Evaluation Complete 08/10/2023
Contract Award 08/15/2023
Note: Timeline is an estimate only. The City reserves the right to alter dates or cancel this RFQ in part or its entirety.
PROPOSAL PREPARATION
Your proposal should highlight the experience, qualifications and competency of your firm, and of the particular staff to be assigned to this project. It should also specify an approach that will meet the Request for Qualifications (RFQ) requirements.
The proposal should include:
• Title Page showing the Request for Qualifications subject; the firm’s name; the name, address, and telephone number of the contact person; and the date of the proposal.
• Signed Transmittal Letter briefly stating the firm’s understanding of the work to be done; the commitment to perform the work within an acceptable time period; and the name of the person authorized to represent the firm, title, address, and telephone number.
• Cost information describing the law firm’s rates for various partners, attorneys and support services staff must be transmitted separately as indicated in the Cost Proposal Rate Sheet instructions.
• Your qualifications and rate sheet proposal should be prepared simply and economically, providing a straightforward, concise description of the firm’s capabilities to satisfy the requirements of this Request for Qualification. While additional information may be presented, the following subjects must be included.
They represent the criteria against which the proposal will be evaluated.
1. Authorized to Practice in California
An affirmative statement must be included verifying the law firm and all assigned key professional staff are properly licensed and/or authorized to practice in California.
2. Independence
The firm must provide an affirmative statement that it is independent of the City of San Juan Bautista and no member of the proposed project team, or family member, is an employee of the City.
3. Firm Qualifications and Experience
The firm must have extensive experience in the Scope of Services described herein.
The proposal should include the size of the firm and the location of the office from which the work on this engagement is to be performed. Indicate the primary representative to be assigned to the City as its “City Attorney.” Indicate the number and nature of the professional staff to be employed in this engagement on a full-time basis; and, the number and nature of the staff to be employed on a part-time basis.
Staff consistency is an important consideration.
4. Partner, Supervisory and Staff Qualifications & Experience Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists who would be assigned to this engagement. Include resumes indicating specialized training, professional certifications and licenses.
Provide information on the government experience of each person, including information on relevant professional education and membership in professional organizations relevant to the performance of this engagement. Indicate how the consistent assignment of staff over the term of the agreement will be assured.
5. Similar Engagements with Other Government Entities
For the firm’s staff that will be assigned responsibility for this project, list three to five completed engagements similar to the work described in this Request for Qualifications. California State Public Agency experience is desirable. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact.
The City reserves the right to contact any or all of the listed references regarding services performed by your firm.
6. Litigation and Claims
Respondent shall disclose any lawsuit, litigation or arbitration resulting from:
(a) Any government engagement where litigation is still pending or has occurred within the last five years; or,
(b) Any type of project where claims or settlements were paid by your firm or its insurers within the last five years.
Describe circumstances and outcome for any incident disclosed.
7. Specific Project Approach
The proposal should set forth a work plan, including an explanation of the project methodology to be followed, to perform the services required in this Request for Qualifications.
Your proposal should include the following information about your firm’s approach:
• Proposed work plan, staffing, and staff hours assigned to each phase of this engagement;
• How staff coverage will be managed to provide uninterrupted year-round (365 days/year) service;
• Proposed vehicles and communication equipment to be used; • Explain status report capabilities and include sample report(s); • Highlight safety practices and training;
• Approach to be taken to understand, review and make recommendations regarding City business practices and to improve current operations; • Description of any anticipated problems, the firm’s approach to resolving these problems, and any special assistance that will be requested from the City.
Pre-Award Expenses
Pre-award expenses are defined as costs incurred by the respondent in:
1. Preparing its proposal in response to this RFQ;
2. Submitting its proposal to the City;
3. Negotiating with the City on any matter related to the proposal; or,
4. Any other expenses incurred by the respondent prior to date of award.
There is no expressed nor implied obligation for the City to reimburse pre-award expenses incurred in the preparation of a proposal. Furthermore, pproposals received shall become the property of the City and will not be returned.
Cost Proposal Rate Sheet
The Cost Proposal should contain all detailed pricing relative to performing the Scope of Services as described in this Request for Qualifications. Itemize regular hourly rates and overtime hourly rates. The Cost Proposal shall be submitted in a separate, sealed envelope; or, as a separate file if submitted via email.
If a total all-inclusive maximum price is proposed, it shall contain all direct and indirect costs, including out-of-pocket expenses. The Cost Proposal should reference a schedule of professional and administrative fees and expenses that support the total all-inclusive maximum price. This fee schedule may also be used for costing out any additional work that may be required.
If hourly rate billing is preferred, please state the hourly rates for the designated City Attorney and associates for general work and for special services, such as litigation, if such services will be billed at a different hourly rate.
Please define the type and unit rates for reimbursement for expenses such as mileage, reproduction of documents, faxed documents, and word processing charges. Billing shall
be made on a monthly basis. Interim billings shall cover a period of not less than a calendar month.
Note: Any supplemental fuel charges; energy surcharges; required licenses, training, travel, insurance and bond costs; pandemic-related and Personal Protective Equipment (PPE) expenses will not be allowed.
REQUEST FOR QUALIFICATIONS SUBMITTAL
One signed original and one (1) copy of the RFQ must be submitted to the City of San Juan Bautista, 311 Second Street, San Juan Bautista, CA 95045 no later than 07/28/2023 at 2:00 PM, PST. Proposal shall be submitted in a sealed envelope clearly marked with proposal name and number. Email submission may be made in lieu of mailing a hard copy of the proposal to: [email protected] There will be no public bid opening.
Late Proposals
RFQ’s arriving after the specified date and time shall not be considered, nor will late RFQs be opened. Each prospective respondent assumes responsibility for timely submission of their proposal.
Withdrawal or Modifications of Proposals
Any RFQ may be withdrawn or modified by a written request signed by the respondent and received by the City prior to the final time and date for the receipt of proposals. Once the deadline is past, respondents will be obligated to fulfill the terms of their proposal.
Confidential Information
Any information deemed confidential or proprietary should be clearly identified by the respondent as such. It may then be protected and treated with confidentiality only to the extent permitted by state law. Otherwise, the information shall be considered a public record. Information or data submitted with a proposal will not be returned.
Proposal Acceptance and Rejection
The City reserves the right to accept any RFQ’s, reject any and all RFQ’s, make a partial award, make multiple awards, call for new RFQ’s, or dispense with the RFQ process in its entirety. The City may waive any minor deficiencies or technicalities in the RFQ’s received.
SCOPE OF SERVICES
SPECIFIC COMPANY INFORMATION
The proposal must provide specific and succinct answers to all questions and requests for information. Submission of individual resumes is encouraged, but cannot be substituted for answers to specific questions. Whether or not the services are provided by a firm or individual, the City desires that services be provided primarily through one individual, that the individual be the City’s primary contact, and that the individual be the
one to attend most meetings. The City also anticipates that individual will be designated as City Attorney.
1. Please describe the nature of your practice or your law firm’s practice, and your qualifications for providing attorney services for the City of San Juan Bautista.
Please provide a professional chronology of the individual who will be designated to serve as City Attorney and others who you anticipate will be involved in providing legal services to the City of San Juan Bautista.
2. For a person whom you propose to designate as City Attorney, and for each person proposed as deputy or backup, please provide the following:
• Legal training and years of practice (including admission date of California Bar). Years of municipal or other local public sector law practices as a fulltime local government attorney and/or in a private law office specializing in local government.
• Knowledge of and experience with California Municipal Law and other public sector experience.
• Types of clientele represented and length of representation time. • Knowledge and practice of law relating to local land use and planning, environmental law, including the California Environmental Quality Act (CEQA), general plans, real estate, and other related planning laws. • Experience in the area of construction contracts, consultant contracts, service contracts, purchase contracts, eminent domain, right of way, franchise agreements, easements, encroachments, and other Public Works related issues.
• Experience in the area of public safety and risk management services. • Experience in the area of personnel, disability law rights and obligations, workers’ compensation, employee relations and negotiations, and employee discrimination claims.
• Experience in the preparation and review of ordinances and resolutions. • Experience with tax collection, including judgments and liens. • Experience in the area of the Public Records Act, the Brown Act, and the Elections Code.
• Scholastic honors and professional affiliations.
• If the firm/individual, or any of the attorneys employed by the firm have ever been sued by cities or other clients for malpractice, been the subject of complaints filed with the State Bar, or had discipline imposed by the State Bar, please provide information on the nature of the incident, the dates on which the matter began and was concluded, and the results. • Intended office location and accessibility to the City
3. Additonal Staffing Detyail
• Describe the staffing of your office, including all permanent and temporary employees and their general duties and work schedules. Include any staffing changes you would propose should you be awarded the contract to provide attorney services for the City.
• Outline how many hours per week on average it will take to accommodate the City’s need for contract attorney services. Please include all time necessary for Council meetings, special meetings, and occasional Commission meetings. The City anticipates 30-40 hours per week on the average will be necessary.
• Define the standard time frames for response by the City Attorney to direction and/or inquiry from the City Council, City Manager, or City Staff. • Describe the systems or mechanisms that would be established for monthly reporting of the status of projects, requests, and litigation. • Describe how you or your firm will use technology to communicate and provide City Attorney services to the City of San Juan Bautista including the sharing and transfer of electronic files.
CURRENT CLIENTS/CONFLICT OF INTEREST
1. Please list all current and former clients known to the firm/individual having a substantial property or business interest in the City of San Juan Bautista during the past 3 years.
2. Please list all public clients for whom you or your firm currently provides services either under a fee for services or a retainer basis. Please identify any foreseeable or potential conflicts of interest that could result from such representation and the manner in which you would propose to resolve such conflicts.
3. For the person to be designated as City Attorney, please list all public clients that person presently represents as city/town attorney or general counsel. Please list the meeting dates and times for the city/town council or governing body of these clients.
COMPENSATION AND REIMBURSEMENT
Please describe how the firm/individual intends to provide legal services, either on a flatrate monthly (state the amount of the requested retainer), or on a different basis. Basic services, for the purpose of this proposal, shall include those legal services generally understood within the field of municipal law to fall within the category of “general counsel” work, and shall include, but not necessarily be limited to, the following:
• Routine legal advice, telephone and personal consultations with members of the City Council and City Staff.
• Review and /or preparation of staff reports, ordinances, resolutions, agreements, contracts, forms notices, certificates, deeds, leases, and other documents required by the City.
• Attendance at City Council and Planning Commission meetings. The City Council meets on the third Tuesday of each month. The Planning Commission meets the first Tiuesday of the month when there are agenda items. The regular meetings for both the City Council and Planning Commission start at 6:00 p.m. In addition, both bodies occasionally call special meetings. The City Attorney will be expected to attend regular and special City Council meetings and occasional Planning Commission meetings as necessary. The City Attorney will coordinate with and provide legal services for the City Manager and departments of the City. The City also has a number of Council appointed advisory boards and commissions that may require City Attorney advice. The City Attorney may also be required to attend certain other meetings with staff, as well as commissions, when necessary. • Legal work pertaining to property acquisitions, property disposals, public improvements, easement dedications, eminent domain, and right-of-way abandonment.
• Enforcement of City codes, zoning regulations, and building standards through administrative and judicial actions.
• The monitoring of pending and current state and federal legislation and court decisions as appropriate.
• Consultation with the City Council and City staff as needed – rendering of legal advice and opinions (both oral and written).
• The coordination of outside legal counsel as needed and as directed by the City Council and City Manager.
Please define what type of work you would consider to be extra or specialized work, which would be billed in addition to basic services. State the hourly rates for the designated City Attorney and associates for such specialized services.
SELECTION PROCESS
Proposals will be screened by the City Council or a panel appointed by the Council and top candidates will be identified. Top applicants will be invited to participate in an interview with the City Council. The qualifications of the top candidates will be verified and references will be checked. In reviewing the proposals, the City will carefully consider:
• Depth and breadth of experience and expertise in the practice of law, most specifically in those areas most often encountered in municipal government operations.
• Capability to perform legal services promptly and in a manner that permits the City Council and staff to meet established deadlines and to operate in an effective and efficient manner.
• Ability to attend City Council and other meetings as necessary. • Degree of availability for timely response to inquiries that arise out of day-to-day operations, questions, or problems.
• Degree to which firm and individual attorneys stay current through continued professional development and active communication with practitioners in the municipal law field.
• Communication skills and ability to communicate.
• Cost of services.
• Other qualifications/criteria as deemed appropriate by the City Council.
The City Manager will negotiate the terms and conditions of a contract with the law firm or individual selected. The contract will require that the law firm or the individual selected as City Attorney maintain professional liability ($1,000,000 per claim and $2,000,000 aggregate), general liability ($1,000,000 per occurrence and $2,000,000 aggregate), automobile liability ($1,000,000 per accident), and workers compensation. Insurance coverage must be provided by an insurance company(ies) authorized to do business in the State of California and the policy will not be cancelled or materially changed without thirty (30) days prior notice in writing to the City of San Juan Bautista.
The successful firm or individual must agree, if awarded a contract as a result of its proposal, to indemnify and hold harmless the City of San Juan Bautista, its officers, agents, and employees from any and all claims and losses accruing or resulting to persons engaged in the work contemplated by its agents in the performance of the work.
Prior to commencement of any work, those and other provisions will be established contractually.
The contract, to include but not be limited to duties and compensation, will be entered into with the successful firm or individual and approved by the City Council. Legal services will begin upon approval by the Contact and formal appointment of a contract position and shall serve at the pleasure of the City Council. The City Council may terminate the appointment upon sixty days’ notice with or without cause.
CONTRACT TERM
This agreement shall commence upon execution by both parties and shall continue for a period of three (3) one years, with four (4), one-year option renewal periods. The prices quoted shall be fixed during the initial one-year period of the contract and price increases may be allowed thereafter as authorized by the City. Price increases may be requested annually after the first year, subject to the following conditions.
Only one (1) price increase will be allowed each year as the result of:
1) Governmental or regulatory agency increases to the trade 2) Consumer Price Index, All Urban Consumers (CPI-U) increases not to exceed 5%, which ever is the lessor of the two.
Any request for a price increase must be substantiated with documentation and must be submitted in writing at least thirty (30) days prior to the effective date of the increase.
Overall increases of greater than 5% from prior year prices will not be allowed.
The City shall be the sole judge as to whether a price increase will be allowed.
Decreases in service prices will be allowed at any time.
KEY PERSONNEL
The City reserves the right to approve the contact person and the person or persons actually performing the services on behalf of respondent. If the City, in its sole discretion, is dissatisfied with the contact person or the person or persons actually performing services, then the City may require the respondent to assign a different person or persons to be designated as the contact person or to perform required services.
The City reserves the right to terminate, without penalty, any contract awarded under this Request for Proposal when key personnel identified are not available. Substitution may only occur with advance explicit approval of the City. Substitute personnel must have equal or greater education and experience.
It is further understood that respondent, and its employees, in performing the required services of this RFQ, operate as an independent contractor and not as an employee or agent of the City.
Note: Subcontracting of any Professional Services required under this RFQ is prohibited.
If special legal counsel ios necessary beynd this scope of work, the City will at it sole discretion contract diorectly with that firm.
INSURANCE
Respondent shall provide proof of Commercial Liability and Property Damage Insurance, including Assault and Battery coverage, prior to performance of duties. Coverage shall be from a company authorized to transact business in the State of California and shall be in an amount not less than $3,000,000 combined single limit (CSL). The City shall be named as an additional insured and thirty (30) days’ notice of cancellation shall be indicated.
Automobile Liability coverage in an amount not less than $2,000,000 per accident for bodily injury and property damage is required.
Worker’s Compensation coverage in an amount not less than $1,000,000 per claim for each employee engaged in work on City premises is required.
Respondent is solely responsible for all insurance premium payments.
INDEMNIFICATION
Respondent shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, employees, and agents, from and against all claims for damages, liability, and expenses (including attorney’s fees) arising out of this agreement and/or respondent’s performance hereunder, except as to such damages, liability, and expenses due to the sole negligence or willful acts of the City, its officers, employees or agents.
TERMINATION
The City may terminate this agreement and be relieved of any consideration to the respondent should respondent fail to perform in the manner required. Furthermore, the City may terminate this agreement for any reason without penalty upon giving thirty (30) days written notice to the respondent. In the event of termination, the full extent of City liability shall be limited to an equitable adjustment and payment for materials and/or services authorized by and received to the satisfaction of the City prior to termination.
PROTESTS
Protests by unsuccessful respondents to the selection for award shall be submitted in writing to the City Manager no later than five (5) business days after award recommendation. Failure to submit a timely written protest to the City Manager shall bar consideration of any such protest.
a) The written protest shall state in detail the specific facts and law or ordinance upon which the protest of the proposed award is based and shall include all pertinent documents and evidence.
b) A written protest may not challenge the relative weight of the evaluation criteria or formula for assigning points.
c) Only a respondent whose proposal is timely received and fully complies with all terms and conditions of the Request for Proposal may protest an award. d) Any and all costs incurred by a protesting party in connection with the protest of a solicitation shall be the sole responsibility of the protesting party.
The City Manager shall evaluate the protest and issue a written decision within five (5) business days after receipt of the protest. The protester shall be notified if additional time is needed to adequately investigate the claim. During the evaluation process, the City may, at its sole discretion, suspend further action on the solicitation, or proceed with an award.
The decision of the City Manager for contract awards valued at $50,000 or less shall be final. For awards exceeding $50,000, an unsuccessful respondent shall have the right to appear before the City Council to protest any award requiring Council approval.
NO COMMITMENT TO AWARD
Issuance of this RFQ and receipt of proposals does not commit the City to award a contract. The City expressly reserves the right to postpone proposal opening for its own convenience, to accept or reject any and/or all proposals received in response to this RFQ, to negotiate with more than one respondent concurrently, or to cancel all or part of this proposal.
The City further reserves the right to negotiate material aspects of proposals received, including costs, services and scheduling, when determined to be in the best overall interest of the City.
OWNERSHIP OF WORK PRODUCT
All reports, studies, information, data, forms, designs, plans, procedures, systems and any other materials or properties produced for this project shall be the sole and exclusive property of the City. No such materials or properties produced, in whole or in part, shall be subject to private use, copyrights, or patent rights by respondent without the express written consent of the City.
NON-ENDORSEMENT
As a result of the selection of a respondent to provide services; the City is neither endorsing nor suggesting that the respondent’s services are the best or only solution.
Respondent agrees to make no reference to the City in any literature, promotional material, brochures, sales presentation or the like without the express written consent of City.
GOVERNING LAW
This Agreement shall be governed by the laws of the State of California. Venue shall be the County of San Benito.
COMMENTS/EXCEPTIONS
Respondents are responsible to become familiar with all instructions, terms, conditions, and contract documents governing this Request for Proposal, including the City’s standard Professional Services Agreement, a copy of which is available upon request.
Submission of a proposal will be considered specific evidence of having performed the above.
Successful respondent shall be required to sign the City’s standard Professional Services Agreement prior to commencement of work. Please note any comments or exceptions with your submittal. Once the award has been made, failure to have read all the terms, conditions, and specifications of this RFQ shall not be cause to alter the original proposal nor to request additional compensation.
Note: Excessive and/or material exceptions to the RFQ may be cause for rejection of the respondent’s RFQ proposal.
Item #9.G
City Council Meeting
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL REPORT
DATE: JULY 18, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: ELIZABETH SOTO, DEPUTY CITY CLERK
BY:
TITLE: APPOINT AN AD HOC COMMITTEE TO REVIEW CANDIDATE
APPLICATIONS FOR PLANNING COMMISSION AND MAKE A
RECOMMENDATION TO THE CITY COUNCIL
RECOMMENDED MOTION:
Appoint an ad hoc committee to review candidate applications for Planning Commission and make a recommendation to the City Council to fill a vacancy RECOMMENDATION:
Staff is asking council to select two council members to serve on an ad hoc committee to review Candidate applications, interview potential candidates and make a recommendation to the City Council to select a Planning Commissioner /Historic Resources Board Candidate.
EXECUTIVE SUMMARY:
Assistant City Manager/Community Development Director Brian Foucht received an email from Commissioner Newkirk-Smith advising him of her resignation. On Monday, June 26, 2023, staff posted a flyer, announcing a vacancy in the Planning Commission/Historic Resources Board, on the city website and on our three usual posting locations. No applications have been received as of the date this report was written.
The next step for Council to take is to form an ad hoc committee to review applications and make a recommendation to the City Council.
BACKGROUND:
Mishele Newkirk-Smith submitted her resignation effective June 2, 2023, leaving the Commission with a vacancy. Ms. Newkirk-Smith’s term was set to expire on December 2026.
Item #9.G
City Council Meeting
July 18, 2023
Page | 2
FISCAL IMPACT:
None
ATTACHMENTS:
San Juan Bautista Municipal Code, Chapter 2-3 Boards and Commissions, Article 1. Planning Commission
Notice of Open Seat (Vacancy) on the Planning Commission Page | 1
Chapter 2-3 BOARDS AND COMMISSIONS
Article 1. Planning Commission
2-3-100 Creation.
There is hereby created a Planning Commission under “The Planning and Zoning Law” of the State of California. 2-3-105 Membership.
Said Planning Commission shall consist of five (5) members. 2-3-110 Qualifications – Appointment – Term.
(A) Members of the Planning Commission shall be residents and registered voters of the City of San Juan Bautista and shall not be officers or management-level employees of the City at the time of their appointment and continuously during their terms of office. A Commissioner who has moved residence from the City shall be considered to have resigned from the Commission office. (B) Planning Commission members’ terms shall be four (4) years, which terms shall be staggered. (C) Any vacancy in the Planning Commission from whatever cause arising, including expiration of term, shall be filled by appointment by the Council. Upon a vacancy occurring, leaving an unexpired portion of a term, any appointment to fill such vacancy shall be for the unexpired portion of such term. (D) When there is a vacancy to be filled on the Planning Commission, except for a successful reappointment of a Planning Commission member for a successive, consecutive term as defined in subsection (E) of this Section, the City Council shall appoint an ad hoc subcommittee of two (2) members to receive applications and/or resumes, select qualified candidates for interviews, conduct interviews and make a brief report with a recommendation to the City Council. The City Council shall consider and vote on the recommendation and shall appoint the applicant who receives a majority of votes to the Planning Commission. If an applicant does not receive a majority of votes, the ad hoc subcommittee shall select a new candidate and present that candidate to the City Council at the following meeting.
(E) The City Council may, upon expiration of a Planning Commission member’s term, reappoint the Planning Commission member for a successive, consecutive term, without requiring an ad hoc subcommittee to conduct interviews and make a recommendation. If the Planning Commissioner, whose term has expired, is not reappointed, the Council may direct the ad hoc subcommittee to review credentials and interview that Planning Commissioner, or to also consider other candidates for appointment to the Planning Commission, as set forth in subsection (D) of this Section.
2-3-115 Removal.
Any regular member of the Commission may be removed with good cause or without cause by a vote of at least three (3) members of the Council and such action shall be final and not subject to review. 2-3-120 Officers.
The Planning Commission shall elect a Chairman and a Vice Chairman from among the regular members, and shall appoint a Secretary who need not be a member of the Commission, for the terms and in the manner set forth in the by-laws of the Commission.
2-3-125 By-laws – Records.
The Planning Commission shall adopt by-laws providing for the method of electing officers, time and place of regular meetings of the Commission, which shall be held at least once a month, and such other rules as may be necessary for the transaction of the business of the Commission, and shall keep a public record of its resolutions, transactions, findings, and determinations.
2-3-130 Absences.
A Planning Commission member who is absent without excuse from two (2) official meetings of the Planning Commission in a six (6) month period shall automatically forfeit his position on the Planning Commission. The Chairman of the Planning Commission shall have the authority to determine whether or not an absence from an Page | 2
official meeting of the Commission is excused or unexcused, and all excused absences shall be reported as such in the minutes of the meeting from which the absence occurred. The standard which the chairman must use in determining whether an absence is to be excused or unexcused is whether or not the average conscientious member of the Planning Commission would probably be absent under similar condition.
When it is determined that a member of the Planning Commission has been absent without excuse from two (2) official Planning Commission meetings in a six (6) month period, the secretary of the Planning Commission shall promptly inform the City Council and the member whose position has been forfeited. 2-3-135 Meeting place.
Permission is hereby granted to the Planning Commission to use the Council Chambers in the City Hall as the place for its meetings or such other public facility within the corporate limits as deemed by the Planning Commission and the City Council to be appropriate and convenient for the conducting of such meetings, providing that such meetings shall not conflict with meetings of the City Council.
2-3-140 Quorum.
Three (3) of the members of the Planning Commission shall constitute a quorum of said Commission for the transaction of business.
2-3-145 Duties and powers.
The Planning Commission and the respective members thereof shall perform the duties and shall have all of the rights, powers and privileges specified and provided for in the Planning and Zoning Law as set forth in Title 7 of the Government Code, beginning with Section 65000.
2-3-150 No authority to incur debt.
The Planning Commission shall have no power or authority to bind or obligate the City or any officer or department thereof for any money, debt, undertaking or obligation of any kind in excess of the appropriation which the City Council may have made for the purposes of said Commission in any fiscal year. 2-3-155 Forfeiture of position.
A Planning Commission member who is absent from any special session of the Planning Commission which is scheduled by the City Council shall forfeit his position upon determination by the City Council that the absence was unexcused.
City of San Juan Bautista, City Hall
311 Second Street, P.O. Box 1420, San Juan Bautista, California 95045 City of San Juan Bautista
Planning Commission / Historic Resources Board
NOTICE OF OPEN SEAT
City Leaders are seeking qualified community members to help shape our future.
The City Council of the City of San Juan Bautista is now accepting applications to fill One (1) vacancy on the San Juan Bautista Planning Commission and Historic Resources Board.
The open seat is for an unexpired term that ends December 2026.
Position requirements, as established in the San Juan Bautista Municipal Code, include San Juan Bautista residency and must be registered to vote in the City of San Juan Bautista. Additionally, Planning Commissioners are required to attend training, and should have an interest and knowledge in historic preservation.
Planning Commission is advisory to the City Council and therefore shall perform the duties and shall have all of the rights, powers and privileges specified and provided for in the Planning and Zoning Law as set forth in Title 7 of the Government Code, beginning with Section 65000.
Historic Resources Board (HRB) assist and advise the Planning Commission in cultural and historic preservation efforts, including the powers and duties in Section 11.06.040 Historic Resources Board. The HRB shall act as an advisory body to the Planning Commission Planning Commission/Historic Resources Board meetings are held the first Tuesday of each month at 6:00 p.m. in City Hall Council Chambers, 311 Second Street, San Juan Bautista, CA.
To apply for the position please submit an application (available on the city website at www.sanjuan-bautista.ca.us ) and a letter of interest to the City Clerk’s Office in City Hall by Friday, July 28, 2023 at 5:00 p.m. Letters of interest will be kept on file for one (1) year.
Item: 10.A
City Council
July 18, 2023
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
DATE: JULY 18, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DIRECTOR
BY: BRIAN FOUCHT, ASST CITY MANAGER, COMMUNITY
DEVELOPMENT DIRECTOR
TITLE: ACCEPT THE SAN BENITO COUNTY COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS); CONSIDER PLANNING
COMMISSION ADDITONAL COMMUNITY AND STAFF
RECOMMENDATIONS
RECOMMENDED ACTION(S):
Staff recommends that the City Council review the CEDS and recommend additional projects for reference within the CEDS.
PROJECT DESCRIPTION AND DISUSSION:
The CEDS is a 5-year strategy-driven plan that is a partnership between the County of San Benito, the Cities of Hollister and San Juan Bautista, and the EDC. The CEDS contributes to effective economic development in communities and regions through a locally-based, regionally-driven planning process that engages economic agencies; community leaders; educators; and the public, private, and nonprofit sectors in meaningful conversations and debate about what best serves economic development in the region. It will establish a strategic “roadmap” for regional collaboration and prosperity and builds on the strengths of the region as well as identifies gaps in resources or expertise.
With a current CEDS in place, agencies seeking funding are more likely to attract state/federal funding, and it is a prerequisite for any agency to qualify for EDA funding. The CEDS must be:
➢ Current;
➢ Updated every 5 years (current 2017-2022; proposed CEDS: 2023-2027); ➢ List specific projects that each jurisdiction expects to seek funding from the EDA to support; ➢ Adopted by the County of San Benito Board of Supervisors and approved by the EDA.
Draft CEDS Initiatives for San Juan Bautista include the following:
Item: 10.A
City Council
July 18, 2023
Page | 2
Initiative #16 Develop A New Source of Clean Drinking Water for the City of San Juan Bautista (NOTE: recommended revised text is as follows):
The City of San Juan Bautista, the San Benito County Water District, and the West Hills Water District have formed a partnership to construct five miles of pipeline to transport new clean water to the City. This water will be blended with City ground water to improve the quality of water delivered to residents and businesses, comply with EPA standards and wastewater will thereafter be acceptable to the City of Hollister Waste Treatment Plant.
Cost estimates for the water pipeline range between $8 and $12 million, with financing provided by the West Hills Water District. The City is seeking State and Federal funds that may include a low interest loan from the U.S. Department of Agriculture (USDA). A recent rate increase will fund project development debt services. Funding has, therefore, been partially secured. The initiative is in the advanced stage of planning and engineering.
The new source of clean water will allow the City to provide better water quality for hotels, breweries, and restaurants, and this will, in turn, attract revenue from visitors, create jobs, and contribute to the tax base.
Initiative #17 City of San Juan Bautista Multi Modal Transportation Project (NOTE:
recommended revised text as follows):
This context-sensitive, rural-scale multi-modal transportation center will provide centralized access to direct transportation services and enable a “shift” between proximate transportation modes such as transit bus, tour bus, carpool, ride share, van pool and other alternative transportation services for those who travel to destinations within and beyond San Benito County, including those who walk, bicycle or drive to the Multi-Modal Center for travel to/from any destination from Gilroy to Hollister. The project includes:
• A supportive link, within San Juan Bautista, to the 7-mile shared pedestrian/bicycle path along Hwy 156 that terminates prior to the intersection of The Alameda in San Juan Bautista; • Active-transportation staging and support improvements for a variety of related interconnections (San Juan Elementary School, Anza High School, Gavilan College), links to the Anza Trail and Pinnacles National Parks, Third Street Historical District, Historical State Park and Mission San Juan Bautista);
• Visitor center and way-finding information regarding recreation and natural open space areas and cultural/historical resources within and surrounding San Juan Bautista; and • San Juan Bautista gateway improvements to various pedestrian and bicycle touring facilities, and interpretative areas and sites.
This initiative must include reference to the Third Street Master Plan (linked to the Multi-Modal Transportation Center Plan) and a related Third Street Streetscape Implementation program.
RECOMMENDATION (Planning Commission, Community, Staff):
Item: 10.A
City Council
July 18, 2023
Page | 3
A. The Planning Commission has recommended that the CEDS include the following additional projects be included in the CEDS either as Initiatives or as Economic Development Advocacies and Ideas (figure 9):
Develop and promote a SBC wine trail destination (contained in the draft CEDS); Develop a new regional - scale performing arts venue at the Cement Plant and enhance El Teatro Campesino;
Develop and enhance recreation support amenities within the San Juan Canyon and Anza Trail;
Develop and brand San Juan Bautista as a Pinnacles Gateway; Design and Develop Creative placemaking enhancements within The Alameda / Third Street corridor (contained in the CEDS as Third Street Master Plan along with the Multi-Modal Transportation Center);
Develop community center/visitor center/event center to include an arts destination and visitor accommodations;
Develop land uses focused on employment rather than housing; B. Members of the San Juan Bautista Community recommended the following be included within the CEDS as additional Incentives or as Other Advocacies and Ideas:
Develop agricultural innovations center via Gabilan College e.g. develop an economic cluster focused on regenerative agriculture;
Prepare employment center land use and infrastructure plans for SJB; Build ED capacity by hiring an ED specialist with grant skills (planning and implementation for SJB ED);
Target businesses industries for best suited to San Juan Bautista; Develop enhanced hospitality destination uses (wineries, breweries, restaurants, hotels); Develop a Luck Park community center facility/hub;
Focus on Pinnacles Gateway Partnership collaboration and related improvements; Complete a pedestrian oriented downtown as a destination (related to Third St Master Plan).
B. Staff recommends that the following Initiatives be included in the CEDS Community Plan (includes SOI/UGB/Planning Area) and related area or specific plans:
o Employment Center Specific Plan and Infrastructure Improvement Program (So. of 156 - Mission Vineyard Rd and San Juan Hollister Rd)
o Residential Areas Specific Plan (Community Plan);
Citywide Infrastructure Master Plan including storm drainage master plan and related improvements north of SJB and South of 156;
Active Transportation Plan (ATP) multi-modal implementation (complete streets, pedestrian safety and traffic operations improvements);
Third Street Master Plan (integrated with Multi-Modal Center Transportation Center) Historical Resources Enhancement Program (updated context statement, rehabilitation of Item: 10.A
City Council
July 18, 2023
Page | 4
designated resources and archives facility improvement project; City Facility (Community Center, City Hall Administration and Public Works) Improvement Projects; and
Elementary School upgrade plan and program.
Attached:
Draft CEDS
Power Point Presentation (SBC EDCorp)
CEDS Press Release
Draft Report_04-27-23
San Benito County
Comprehensive Economic Development Strategy (CEDS)
2023-2027 (DRAFT REPORT)
5/15/2023
5/15/2023
Prepared for
Prepared by
AND
Marie Jones Consulting
MJC
Draft Report_06/01/2023
Table of Contents
1. PURPOSE OF PREPARING A COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY ..................................... 1
1.1 Three Economic Development Approaches .................................................................................................. 1
1.2 The Role of the San Benito County Economic Development Corporation .................................................... 4
2. ECONOMIC CONTEXT ......................................................................................................................................... 5
2.1 Common Misconceptions About San Benito County’s Economy .................................................................. 6
2.2 Demographic Trends ..................................................................................................................................... 7
2.3 Housing ........................................................................................................................................................ 11
2.4 Jobs and Workforce Trends ......................................................................................................................... 12
2.5 Economic Context Summary; Findings and Implications ............................................................................. 18
3. STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT) ................................................................... 19
3.1 Strengths ...................................................................................................................................................... 19
3.2 Weaknesses ................................................................................................................................................. 19
3.3 Opportunities ............................................................................................................................................... 20
3.4 Threats ......................................................................................................................................................... 21
4. ECONOMIC DEVELOPMENT MISSION STATEMENT AND GOALS ...................................................................... 23
4.1 Mission Statement ....................................................................................................................................... 23
4.2 Economic Development Goals ..................................................................................................................... 23
5. ECONOMIC DEVELOPMENT INITIATIVES ........................................................................................................... 25
5.1 Countywide or Unincorporated San Benito County Initiatives ................................................................... 25
5.2 City of Hollister Initiatives............................................................................................................................ 29
5.3 City of San Juan Bautista Initiatives ............................................................................................................. 30
5.4 Other Economic Development Advocacies and Ideas ................................................................................. 32
6. BENCHMARKS AND PERFORMANCE MEASURES .............................................................................................. 33
6.1 Goal #1 Benchmarks: Measurements of San Benito County’s Economic Strengths ................................... 33
6.2 Goal #2 Benchmarks: Expand Equitable Communitywide Prosperity ......................................................... 34
6.3 Goal #3: Support Residents and Local Business .......................................................................................... 35
6.4 Goal #4: Increase Economic Resilience ....................................................................................................... 36
7. ECONOMIC RESILIENCE ..................................................................................................................................... 38
7.1 Natural and Man-Made Shocks ................................................................................................................... 38
7.2 Ongoing Efforts to Plan for Natural or Man-Made Disasters or Shocks ...................................................... 40 APPENDIX A | San Benito County Ongoing Economic Development Initiatives APPENDIX B | Socioeconomic Trend Data
APPENDIX C | CEDS Committee Members and Interviews
Draft Report_06/01/2023
1 1. PURPOSE OF PREPARING A COMPREHENSIVE
ECONOMIC DEVELOPMENT STRATEGY
The San Benito County Comprehensive Economic Development Strategy (CEDS) provides a roadmap to create jobs, generate higher incomes, and strengthen collaborations within and between San Benito County and City jurisdictions. The document identifies the ongoing economic development initiatives that can realistically be implemented in 2023, other initiatives that will take at least three-years to implement, as well as longer-term initiatives. This approved CEDS generates a number of direct benefits:
San Benito County, the Cities of Hollister and San Juan Bautista and all special districts will be eligible to apply for disaster recovery, public works, and planning and technical assistance grants available from the U.S. Economic Development Administration (EDA). EDA grants can fund backbone infrastructure and support innovation and entrepreneurship; San Benito County’s local governments and the private sector can participate in enhanced collaborations to implement ongoing economic development projects and initiatives that cross jurisdictional boundaries;
Allows the economic development community to utilize identified benchmarks to measure the region’s implementation progress of priority economic development initiatives; Describes implementation projects to improve long-term economic resiliency, and Supports funding applications to other federal and state agencies submitted by the county and two cities.
1.1 Three Economic Development Approaches
Economic development is the process of strengthening the local economy in order to increase prosperity and improve the quality of life for all residents. The California Association for Local Economic Development defines economic development as a:
“Concerted effort on the part of a city or county to influence private investment toward opportunities that lead to sustained and equitable economic growth and more tax revenues for community services.” There is no magic button that communities can push to stimulate economic development. However, there are three proven economic development approaches described below that have worked over decades and across geographic boundaries.
Approach #1: Business Retention and Expansion (BRE)
Approximately three-quarters of all new jobs are created by the expansion of established businesses. This simple fact makes BRE the most effective economic development strategy that any community could utilize as it builds upon the established business skills and expertise that have been gained by years of running a business that generates jobs and incomes for residents. Through BRE, established businesses that have helped build San Benito County’s economy are valued, encouraged, and assisted rather than neglected.
However, new business retention and expansion initiatives do not necessarily generate positive news headlines and publicity because some established companies do not want to advertise that the Economic Development Corporation of San Benito County (EDC) and its partners were able to help it stay. However, it is through retention and expansion activities and small business assistance that San Benito County’s economy will actually prosper and grow the most. Moreover, effective BRE is a systematic approach to reach out to firms that need assistance with planning and building regulations, skills training, infrastructure improvements, Draft Report_06/01/2023
2 marketing, and business development. This approach requires hard groundwork, most of which is accomplished under the radar of any publicity. While a less splashy endeavor than attracting a big new company, the payouts of BRE are much greater for the community.
Approach #2: Support Entrepreneurship and New Business Start-Ups Establishing a business climate that encourages and supports new business formation has become an essential economic development approach. Applications to start new businesses hit 5.1 million in 2022, about double the 2010 rate of 2.5 million in new business start-ups.
The COVID-19 pandemic accelerated everything, including the decimation of an unprecedented number of small businesses and an acceleration of new business formations as millions of people decided it was time to chase their dreams. Many would-be entrepreneurs saw opportunities and many who lost their jobs in the pandemic decided to become self-employed. A significant share of millennials decided to forge ahead as entrepreneurs rather than remaining as employees. Others walked away from stable careers, convinced there was no better time to start something new.
Three effective ways to encourage entrepreneurship and support new business start-ups in San Benito County include:
Provide funding for new business start-ups independent of what is offered by private banks. Business start-up funding may be made available through an existing small business loan fund, or by establishing a new organization that supports small business start-ups; Establish a business incubator that can reduce operating costs through shared services and lower rents. Business incubators are often managed in collaboration with a local community college and/or a small business loan fund, and
Focus on the long-term approach of educating young people about the benefits of building wealth through business ownership as a potential career path. This approach is usually in partnership with local schools and youth groups.
Approach #3: Targeted Business Attraction
Attracting specific businesses to a community is a traditional economic development approach that has been practiced throughout the U.S. for more than 40 years. Many members of the general public and their elected public officials consider economic development and business attraction to be the same activity, however, they are not.
Shifts in the global economy have made this a unique time for states and regions to engage in business attraction since large corporations are rethinking their supply chains and global footprints. Global corporations are returning or “reshoring” some production activities away from China and back to the U.S. and Northern Mexico. This is particularly true with the automobile and semiconductor industries. The federal government passed the 2022 CHIPS and Science Act (CHIPS) that includes nearly $53 billion in funding to reshore the production of semiconductor chips back toward the U.S. The new law has already triggered an investment boom as global semiconductor manufacturing companies have unveiled plans to invest nearly $200 billion in more than 40 projects or facilities.1
Global automobile production companies are also experiencing a massive transition and supply chain upheaval as all established auto companies have rapidly shifted toward producing electrical vehicles (EVs), and EV batteries are the new oil. The news is filled with stories of new automobile production, assembly, and battery plants that are establishing facilities in Nevada, Arizona, or various Midwest and Southern states. Nearly all 1 Source: Semiconductor Industry Association.
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3 these states offer significant financial incentives, low cost or free land, and low labor costs. Just a few of the many high-profile business attraction “wins” that were announced during the first two months of 2023 alone are described below:
The State of Nevada offered Tesla more than $330 million in tax breaks for a massive expansion of its sprawling EV battery facility east of Reno, which requires Tesla to construct a new electric semi-truck factory.
EMP Shield announced that it would spend $1.9 billion on a computer chip manufacturing facility to be built on three hundred acres in Burlington, Kansas. The company that focuses on protecting electronic devices from destructive magnetic pulses will create more than 1,200 jobs at the new facility. Arizona announced that the Taiwan Semiconductor Manufacturing Company (TSMC) will open two new chip-making plants in Maricopa County along with two new Intel Semiconductor plants. Total investment by the two companies will be $60 billion.
The State of Michigan announced a $3.5 billion investment by Ford Motors to construct a 2.5 million square foot EV battery manufacturing facility in Marshall, Michigan. The project will eventually create 2,500 new jobs.
The State of Ohio announced a $237 million incentives package over the next decade that is targeted for Honda and LG Energy Solution to build and operate a new EV battery plant in Fayette County.
Honda and LG are committed to making a $3.5 billion EV battery plant investment and a $700 million investment to retool the current plants. Approximately 2,500 new jobs will be created.
Unfortunately, San Benito County cannot compete for these investment opportunities for the following reasons:
The State of California does not offer the business incentives that other states offer these global companies. Essentially, communities without significant presence of firms in these sectors in California cannot effectively compete for semiconductor and EV facilities. San Benito County has a 6.4 percent unemployment rate and lacks an available workforce that semiconductor and EV auto companies would require. Recruiting workers from neighboring jurisdictions is also difficult given Santa Clara County’s 3.1 percent unemployment rate.2
The cost of doing business in San Benito County will be significantly higher than alternatives locations in Nevada, Arizona, the Midwest, and the South.
Given San Benito County’s infrastructure constraints, a solitary focus on business attraction initiatives is counterproductive and costly. Recruiting a company to a site where access to electrical power cannot be guaranteed and where there is an inadequate number of skilled workers will face insurmountable headwinds.
Certainly, the lure of the hunt for the big deal through business attraction is immensely popular because it is easily understandable to the general public. A “win” that creates hundreds of jobs and positive news headlines can be intoxicating. However, such actions run the risk of alienating existing companies that may not receive assistance or support to stay and expand in San Benito County. Existing firms have already made the commitment to locate and hire in the community, often without any of the assistance packages offered to “high profile” recruitment targets.
In addition, engaging in contests with other communities to attract footloose businesses seeking to maximize financial incentives can backfire in a big way. For example, the State of Wisconsin’s attempt to attract Foxconn to build a $10 billion display panel manufacturing plant is one of the most high-profile flame outs. Back in 2017 the State agreed to provide Foxconn with $3 billion to $4.8 billion of subsidies to be paid in increments over fifteen years. Much of this subsidy would be paid in direct cash payments from taxpayers since Wisconsin already exempts manufacturing companies from paying taxes. In addition, the State contributed $90 million in 2 Source: U.S. Bureau of Labor Statistics during the month of February 2023. Data not seasonally adjusted Draft Report_06/01/2023
4 local road funding to road work to improve access to the Foxconn factory and another $252 million on widening a portion of I-94 from six to eight lanes in anticipation of the increased traffic generated by the project. In return, Foxconn claimed that the new facility would initially employ 3,000 workers and would eventually employ 13,000 workers.
In January 2019, Foxconn said it was reconsidering its initial plans to manufacture LCD screens at the Wisconsin plant, citing high labor costs, and that it would hire mostly engineers and researchers, rather than a manufacturing workforce. Bloomberg News reported that the plant was "unlikely to ever employ 13,000 workers.
1.2 The Role of the San Benito County Economic Development Corporation
The mission of the EDC is to promote economic development through business attraction, retention and support that creates economic opportunities to improve quality of life. The EDC is governed by a Board of Directors made up of community volunteers who have expertise in a wide range of local business issues. To positively impact economic growth, the EDC collaborates with City of Hollister, City of San Juan Bautista, County of San Benito, workforce development, other local and regional business organizations, as well as educational institutions.
Increasing local economic vitality is the primary focus of the EDC. Through its efforts, the EDC strives to maintain and enhance the local region as a competitive location for businesses to expand and locate. The EDC’s role is to:
Help existing businesses thrive through effective business retention and expansion; Recruit new businesses to the existing business parks and opportunity sites; and Re-establish our local region as a regional economic development “player.” The EDC will continue to spearhead the CEDS movement for the next five years, with the support of its CEDS Strategy Committee, CEDS Consultants, and stakeholders in the communities of Hollister, San Juan Bautista, Aromas, and San Benito County.
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5 2. ECONOMIC CONTEXT
Interviews with community members, local government leaders and business owners yielded a common story from all stakeholders:3
“San Benito County is yearning to be understood as separate place from Silicon Valley and Santa Clara County yet there is also a yearning to become more like Silicon Valley by attracting high-tech jobs and by keeping residents working within San Benito County” (rather than commuting out).
To date the sole focus on business attraction has overlooked other economic development approaches that focus on people, places, and infrastructure. Some of the more specific activities that have been overlooked to date are listed below:
Efforts to reduce economic inequality. Approximately 60 percent of San Benito County residents are Hispanic, many of which are critical workers concentrated in the industries of agriculture, food, personal services, and health care.
Efforts to encourage residents to start their own businesses. This is particularly surprising given San Benito County’s proximity to Silicon Valley where new business start-ups and entrepreneurship form the heartbeat of the local economy.
Efforts to prepare residents for the ongoing digital technology revolution. Today’s workforce needs digital technology skills required by nearly all business establishments that utilize artificial intelligence robotics and automation.
Efforts to educate residents and public officials about smart growth planning principles and techniques that can help preserve agriculture and open space while allowing new housing and business development in planned locations.4 A better understanding of smart growth can help reduce tensions between advocates for agriculture and open space preservation and proponents of new real estate development.
The expansion of social infrastructure needed by area residents. This would include improved access for transportation service, the development of new housing in close proximity to transportation networks, an expansion of affordable childcare that will free up parents to re-enter the workforce, and the expansion of affordable health care access that will also free up more residents to re-engage with the workforce.
While the data presented in this section may be dry, it illuminates some of the misconceptions about San Benito County’s economy and how to best help it flourish. A solid understanding of the data and what it means will help readers and leaders to better understand San Benito County’s strengths and weaknesses and the possibilities and challenges they impart. The data can provide a new perspective about some commonly held misconceptions and myths about the economy that are simply incorrect. 3 The consulting team completed 26 in person or telephone interviews and received survey responses from 11 other individuals during the process of preparing the CEDS report.
4 www.newurbanism.org
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6 2.1 Common Misconceptions About San Benito County’s Economy Perception 1: San Benito County’s economy is not particularly strong Reality. The local economy is small but relatively strong with only 65,480 residents and 17,450 jobs. Goods producing activities of farming and manufacturing form the foundation of San Benito County’s economy. Food and beverage manufacturing comprises 75 percent of all manufacturing jobs. Construction, retail, food services, health services, aerospace (defense) and public education are the local economy’s other significant sectors. This diversification makes San Benito County’s economy more resilient to economic shocks. 5 San Benito County’s job base expanded at a 1.1 percent annual growth rate (AGR) between 2015 and 2021.
During the same time period jobs in the three-county region expanded at a 0.8 percent AGR and California overall expanded at a 0.7 AGR.6
Thus, San Benito County’s job base expanded more rapidly than the growth of jobs within the three-county region and California overall.
Perception 2: San Benito County has high levels of income inequality Reality. High levels of income inequality characterize the entire U.S. economy, and income inequality is growing wider each year. However, income distribution within San Benito County is relatively equitable compared to the neighboring counties and California in general. Approximately 53 percent of San Benito County households earn middle-class incomes, which is much higher than Santa Clara County (37 percent) or Monterey County (49 percent) or 45 percent of all California households.
Poverty remains an issue with 26 percent of San Benito County households earning less than $50,000 per year.
While San Benito County has many low-wage workers, it outperforms the entire State of California where 33 percent of households that earn less than $50,000.7
Perception 3: Attracting global technology companies will reduce traffic congestion issues by providing opportunities for workers to not commute
Reality. The perception is mostly false because fewer than 20 percent of San Benito County residents who outcommute are employed in the construction trades, public education, retail, health care and other placespecific service sectors with working-class jobs that cannot easily be moved into San Benito County. The teachers, salespeople, carpenters, plumbers, police and nurses that work in neighboring counties are likely priced out of a home in those counties.8
However, a portion of the approximately 2,300 San Benito County residents that are employed in the professional, technical and scientific fields could possibly switch to local employers thereby reducing out-ofcounty commuting by attracting some global technology businesses. That said, any new global technology firms attracted to San Benito County would rely on highly skilled workers that are not current residents, which would probably add to San Benito County’s traffic congestion. In addition, attracting new global technology companies that pay high wages would put pressure on housing prices and make it more difficult for some existing residents to continue to reside in San Benito County.
Perception 4: Economic prosperity in San Benito County can occur without the Latino community’s active engagement
Reality. Mostly false because San Benito County’s economy cannot be successful without the success and related major contributions of Latinos, which comprise 61 percent of the community. Many Latinos have an 5 Data source: Data Axel
6 Data source: U.S. Bureau of Labor Statistics. The region includes the counties of Santa Clara, Monterey and San Benito 7 Data source: U.S. Census American Community Survey
8 See Figure 7 for data on the number of San Benito County residents that commute to work out of county Draft Report_06/01/2023
7 entrepreneurial spirit that can fuel ongoing job creation and new business start-ups. In addition, the lack of economic equity leaves a sizable percentage of Latino workers in low-paying agricultural production, service health care, and food services jobs.
Perception 5: Economic development in San Benito County should focus on business attraction in order to reduce traffic congestion
Reality. The perception is mostly false. “Shoot at anything that flies, take credit for anything that falls” is an old economic development saying. However not all jobs are equal and not all businesses bring new benefits to the county. Recently the City of Hollister approved an exceptionally large “fulfillment center” that will bring significant truck traffic to already congested roads. The future fulfillment center along with two cannabis production operations has now maxed out the electrical substation thereby significantly limiting future growth of existing businesses, let alone the successful attraction of new business.
Moreover, business attraction activities are always a long shot with low chances of success, and they take time and resources away from other economic development initiatives that have a greater chance of success and yield measurable results.
2.2 Demographic Trends
San Benito County is a largely rural community of 65,480 people that includes the two small cities of Hollister and San Juan Bautista. San Benito County’s population is much smaller than either its northern or southern neighbors of Santa Clara County (1.89 million) and Monterey County (433,720 residents). In fact, San Benito County has only 6,210 more people than does the nearby City of Gilroy.9
Although there are fewer people, San Benito County’s population base has consistently expanded since 2015, adding on average 1,000 residents per year. The neighboring counties are going the opposite direction with population declines as shown in Figure 1 below.10
Santa Clara County’s population has declined by nearly 50,000 people since 2019 when COVID-19 arrived and people started working from home, some of which relocated to lower-cost locations. More than 70,000 former Santa Clara County residents moved away between 2020 and 2022. However, outmigration has been underway for nearly a decade with a net decline of 26,000 former residents that moved elsewhere between 2015 and 2019.
Since 2019, Monterey County’s population also declined by nearly 6,500 residents, which was fueled by net out-migration. Nearly 20,000 former residents have moved away since 2015. California, as a whole, lost a net of 550,000 residents since 2019. This was fueled by an out-migration of more than 700,000 residents since 2019 and an out-migration of 900,000 residents since 2015. 9 See Appendix Table 1 for detailed population growth trends data 10 See Appendix Table 2 for detailed Population Growth Factors Table Draft Report_06/01/2023
8 In sum, San Benito County has benefited from a nationwide trend of people migrating out of urbanized areas into more rural areas due to the pandemic, increased opportunities for remote work, increased retirements, and high housing costs. It is not clear yet if these trends will continue or reverse in the future.
Diversity
San Benito County has long been a majority Latino community that accounts for 61 percent of all residents.
Caucasians comprise 33 percent of the population and the remaining 6 percent are a variety of ethnicities including mixed-race persons. The Latino community has continued to expand its majority status with 2,500 new residents since 2019 compared to only 720 new Caucasian residents. The number of Asians residents actually declined since 2019, but 850 mixed-race people were added, and mixed-race marriages became more common throughout California.11
By contrast the three-county region is comprised of three ethnicities (Caucasians, Latinos and AsianAmericans) in nearly equal proportions. Since 2015 more than 70,000 Asian Americans moved to the region since 2015, more than 23,000 Latinos moved out, and nearly 70,000 Caucasians left. 11 See Appendix Table 3 for Demographic Diversity Table Draft Report_06/01/2023
9 Education
San Benito County residents, on average, have lower levels of educational attainment compared to the region.
Two key educational attainment characteristics stand out:
Approximately 41 percent of San Benito County adults completed high school but did not pursue any formal education beyond high school. This is remarkably similar to the State average but not even close to the regional average where only 31 percent of residents did not pursue more education beyond high school.
Only 5.5 percent of San Benito County adults earned a graduate or professional degree, compared with 13 percent of California adults and 23 percent of regional residents. This dynamic will likely complicate San Benito County’s ability to capitalize on its proximity to Silicon Valley.12 Household and Per-Capita Incomes
San Benito County’s median household income is $85,810 while Monterey Household Income is $76,940, illustrating that both Counties have significantly higher median income residents than expected given underlying demographics. San Benito County is higher than the state average of $78,700 but well below the average Santa Clara County household incomes of $130,890 that are fueled by the massive wealth of Apple, Google, and other global technology companies.13
Per-capita income is widely used as a yardstick to assess the economic wellbeing of a region's residents and the quality of consumer markets. Figure 3 illustrates that San Benito County per-capita income has been and remains below that of Monterey County and California as a percent of the national average from 1970 through 2020. Per-capita personal income in San Benito County was $68,870 in 2020 and it grew by a phenomenal 31 percent from 2018 to 2020.14
12 See Appendix Table 4 for Educational Attainment Table 13 See Appendix Table 5 for Median Household Income and Income Distribution Table 14 See Appendix Table 6 for Per-Capita Income Table
Draft Report_06/01/2023
10 These significant and remarkable increases in per-capita income are likely related to a few different factors that are listed below:
Increases in COVID-19 related transfer payments (unemployment and payroll protection payments); In-migration of higher-earning households from neighboring Santa Clara County; and Strong growth in the high revenue and high wage-earning tech sector during the pandemic.
It is difficult to identify which factor had the biggest influence on the rapid increase in per-capita income.
Income Distribution
As each year passes, income inequality has grown wider throughout the USA. Fortunately, San Benito County has a more equitable income distribution than either California in general or Monterey County with their larger percentages of very low-income households. Santa Clara County has the highest income inequality, with 44 percent of all households that earn more than $150,000 compared to only 21.6 percent of San Benito County households.15
Poverty
Only 9.3 percent of San Benito County households earn incomes that fall below the federal poverty line. In comparison, 12.6 percent of California overall and 8.1 percent of regional households are poor.16 15 See Appendix Table 5 for Household Income Distribution Table 16 See Appendix Table 7 for Poverty Rates data
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11 2.3 Housing
Housing Shortage
Silicon Valley (primarily Santa Clara County) has been California’s (and the United States’) job creation engine for decades. Silicon Valley’s business start-up culture and access to large amounts of investment capital created nearly 260,000 new jobs between the end of the great recession (2010) and the middle of the COVID19 pandemic (2020). Essentially, Santa Clara County expanded its job base by an astounding 23.4 percent growth rate between 2010 and 2020. San Benito County, Silicon Valley’s next-door neighbor also enjoyed a very strong new job growth rate with nearly 3,600 new jobs created between 2010 and 2020 (See Figure 4).
However, the number of new housing units constructed between 2010 and 2020 fell way behind job growth and left Silicon Valley deep into a housing shortage that is fueling homelessness, poverty, inequality and obscenely high housing prices. These dynamics have accelerated since 2020 as the pandemic fueled another round of string technology driven job growth. The imbalance between new jobs and housing units created has pushed people far away from where they work, forcing low wage workers and the front-line workforce into soul-numbing commutes.
San Benito County is directly impacted by this imbalance of new job creation and a severe shortage of new housing units. It is for this reason that there is so much pressure to develop new subdivisions anywhere and everywhere in San Benito County. Residents responded with successful opposition to developing new subdivisions in the unincorporated county, and by placing slow growth initiatives on election ballots.
High Housing Costs
The laws of supply and demand affect the housing market. A severe housing shortage is the primary contributor to high for sale housing costs and rents in San Benito County. Santa Clara County’s spectacular success creating new high wage technology-oriented jobs makes neighboring San Benito County an expensive place to live, just like all other counties within close proximity to Santa Clara. High housing costs are problematic as they contribute to overcrowding and difficulties with employee recruitment and retention.
They also drive-up wages and contribute to inflation.
Figure 5 illustrates month-to-month median housing prices for all three counties and the State. It deftly illustrates the rise and fall of the last housing bubble of 2004-2008. It is unclear if a similar housing deflation will happen again with rising interest rates.
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12 It also should be noted that 34 percent of renters and homeowners in the region are burdened by high housing costs, which means that they pay more than 30 percent of their income for housing. Forty-two percent of renters and 31 percent of homeowners are burdened by high housing costs. Essentially, households at all income levels can be housing cost burdened.17
2.4 Jobs and Workforce Trends
San Benito County has a solid economy, with relatively fast-growing Gross Domestic Product (GDP) that is ranked 19th among California's 58 counties according to the U.S. Bureau of Economic Analysis. The county also has a strong GDP growth rate with a 23 percent gain in real GDP between 2010 and 2020.
However, San Benito County’s economy is skewed toward goods-producing activities with a strong agricultural production base and value-added food and durable goods manufacturing, which differs from most other California jurisdictions that are dependent on the service sector due to the global outsourcing of the manufacturing supply chain during the deindustrialized 1970’s through the 1990’s.
San Benito County’s Job Base
San Benito County’s economy had 18,815 jobs in 2021, which is represented by the number of jobs by place of work rather than the employment characteristics among residents.18 In total, 1,080 private business establishments generated 17,420 jobs (excluding the self-employed). The public sector generated another 1,395 jobs. Other key characteristics of the job base are summarized below:
17 See Appendix Table 8 for housing costs data
18 See Appendix Table 9 for jobs by industry sector data Draft Report_06/01/2023
13 Agriculture production, packing and manufacturing generates 4,170 jobs and is the largest component of San Benito County’s job base.19 The Bureau of Labor Statistics reports that local farms and other agricultural-production businesses hired 1,945 full time workers after adjusting for seasonality.20 Data Axel reports that food and beverage manufacturers account for 2,220 manufacturing jobs, which amounts to 73 percent of all manufacturing in the county. Retail trade and food services (restaurants and bars) generate 1,370 jobs each. The health-care sector, dominated by Hazel Hawkins Hospital, generates 1,245 jobs. Management and administrative services companies generate 1,030 jobs, consisting of business delivering services to other businesses.
Public schools generate 1,240 jobs.
Local governments generate 840 jobs.
Non-agricultural manufacturing generates 820 jobs. This sector includes 535 jobs manufacturing of pharmaceuticals and chemicals, and
Transportation accounts for 780 jobs, which includes the recently opened Amazon Last Mile facility.
San Benito County’s job base has two significant weaknesses:
The professional service sector is very weak with only 260 San Benito County based jobs. In comparison, professional services account for 13 percent of all jobs in Santa Clara County. A high percentage of the jobs created by global technology companies (like Apple) are in the professional services category, and;
Health services is also very weak in San Benito County as it accounts for only 7 percent of all jobs compared to 14 percent of all jobs in California. The sector’s weakness is magnified by San Benito County’s dependence on the hospital as the dominant health employer.
Job Growth
San Benito County’s job growth rates have outperformed the region and California overall since 2015 as shown in Figure 6 below. Some important takeaways from the job growth data are summarized below:21 San Benito County added 1,080 new jobs between 2015 and 2021. This is a small number of new jobs, but it is significant growth within a small economy.
New jobs in San Benito County expanded at a 1.1 percent annual growth rate between 2015 and 2021.
The county’s job growth rate exceeded the job growth rate in the region and California overall. Agriculture, mining, construction, and manufacturing are the goods producing sectors that generated 1,540 new jobs. The basic goods producing sector expanded at a mind-blowing 4.5 percent annual growth rate, which is more than four times the production growth rates in the region and California overall.
However, San Benito County lost nearly 720 service sector jobs between 2015 and 2021. This is a problematic constraint given the county’s location next door to the Silicon Valley, which has many global technology companies that are loaded with high paying professional and scientific service jobs. 19 See Appendix Table 9 for jobs by industry sector data. The number combines total agricultural production jobs with 73% of San Benito County’s manufacturing jobs that produce food and beverage products as reported by Data Axel. 20 The BLS and California EDD produces annual average employment counts by industry sector, which adjusts for the annual labor market booms and busts. The seasonality of agricultural employment is significant when employers need to hire workers for harvest season but then may let workers go with little work during the winter months. 21 See Appendix Table 10 for more job growth data.
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14 Data from the U.S. Bureau of Economic Analysis provides some additional insight on the local economy. San Benito County's job growth rate between 2010 and 2021 surpassed that of 49 California counties and trailed eight counties, and;
The county's job growth rate also outperformed the nationwide rate of job growth during the 11-year time period.
Major Employers
Data Axle, a business research service company identifies sixteen private employers in San Benito County that employ more than ninety-nine workers. Earthbound Farms in San Juan Bautista is the largest establishment with 1,100 employees as shown in Figure 7. Hazel Hawkins Hospital is the largest employer in Hollister with approximately 715 employees. Other key findings are listed below:
Seven are food producers, distributors or manufacturers; Four are durable goods (not food) manufacturers;
Thirteen are located in Hollister, three in San Juan Bautista, one in Aromas22, and; Twelve large employers are goods producing firms.
22 Aromas is a Census Designated Place with 2,700 residents that straddles both San Benito and Monterey Counties.
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15 Available Workforce
San Benito County has consistently experienced higher unemployment rates than the statewide average.
However, the unemployment rate in San Benito and neighboring Santa Clara Counties has been in a steady decline since early 2021. The most recent (January 2023) Labor Market Bulletin published by EDD states that the county’s unemployment rate dropped to 4.6 percent and Santa Clara County is at a historically low 2.0 unemployment rate. This means San Benito County has approximately 1,300 unemployed residents that are seeking work. The estimating methods are summarized below:
San Benito County’s population is 65,500.
The population between the ages of 18 and 65 is 43,300. The labor force participation rate is 66 percent as reported by the EDD. 28,500 SBC county residents participate in the labor force. San Benito County has 27,200 employed residents. Some work for San Benito County employers and others commute to work out of county.
Approximately 1,300 residents are unemployed and seeking work.
The extreme labor shortage explains why local employers in every sector of the economy have a challenging time hiring and retaining workers.
Commuting and Commuters
San Benito County has a dynamic economy with many people residing far and driving long distances from their home to their place of work. Unfortunately, the available data on where people live and work that is nearly ten years old is extracted from a Special Report of 2009 to 2013 County-to-County Commuting Flows. As of a decade ago, 24 percent of the jobs located in San Benito County are held by out of county commuters; nearly half (49 percent) of residents that are in the employed workforce commute out-of-county and the other half of Large Employers Location Industry Employer
Size Class
Earthbound Farms San Juan Bautista Food & Beverage Manufacturing 1,100 Hazel Hawkins Hospital Hollister Hospital 715
San Benito Foods Hollister Food Manufacturing and Canning 600 True Leaf Farms San Juan Bautista Crop Farming 400
Pacific Scientific Energetic Hollister Explosives Manufacturing 300 Denise & Filice Packing Co Hollister Food Manufacturing 230 Amazon Facility Hollister Delivery Services 200
Alpha Teknova Hollister Pharmaceutical Manufacturing 180 Corbin Sparrow Electric Vehicle Hollister Durable Goods Wholesalers 180 GraniteRock Aromas Gravel Mining 180
Target Hollister Discount Stores 150
Casa De Fruita Restaurant Hollister Food Service 150
Nob Hill Foods Hollister Supermarkets 130
Willis Construction Co Inc San Juan Bautista Concrete Product Manufacturing 120 Trical Inc Hollister Agricultural Support Activities 100 Figure 7
Largest Private Sector Employers, San Benito County, 2022 Source: Data Axel
Analysis: Wahlstrom & Associates and Marie Jones Consulting Draft Report_06/01/2023
16 the workforce is employed by San Benito County based businesses.23 Estimates of the number of residents that commute to work out of San Benito County utilize these percentages. The highlights are below:
Public and private sector employers located in San Benito County employ 16,450 workers (as previously reported);
Local employers hire approximately 12,250 San Benito County based workers along with 4,200 out-ofcounty workers that commute into San Benito County; Approximately 27,200 San Benito County residents are employed workers (as previously reported); Approximately 16,700 commute to work out-of-county, which includes 4,200 local jobs that rely on out-of-county workers and 12,520 net out commuters, and; Thirty-eight percent of out-of-county commuters work in Santa Clara County and 11 percent work in Monterey or Santa Cruz Counties.
Potential to Recruit Out-of-County Commuters to Work in San Benito County The above data indicates that local employers create nearly as many jobs as there are out-of-county commuters. The out-of-county commuting along roads and highways that were not designed for the current usage creates significant traffic congestion and extended travel time to work, which has reduced the quality of life for residents and made it difficult to engage in business activities.
Consequently, economic development efforts have focused on attracting more business into San Benito County with the theory that out-of-county commuters will be eager to switch jobs and work locally. But the question is, “would they?” Of course, the vast majority of out-of-county commuters would like to reduce their time in the car and work closer to home. But that desire to work close to home is balanced by career portability, wages and salary, costs of living and other factors.
Data in Figure 8 provides some insight into the potential to reduce the out-of-county commuting traffic congestion by attracting more business into the county:
More than 8,000 residents that are commuting out of the county are employed in working-class sectors such as construction, trade and warehousing, retail trade, health services and public education. These types of jobs are not easy “attraction” targets because they are tied to other local economies and are thus not portable.
For example, there are 1,575 construction jobs based in the county while there are 3,070 employed residents who work in the construction industry, indicating a net out-commuting of 1,495 workers. In addition, San Benito County construction firms hire approximately 470 workers that live out of county, which means there are at least 1,965 residents employed in construction that work outside of the county. Similarly, at least 2,365 residents in health services work outside of the county and 2,430 residents in the retail sector also work out of the county. Over representation of county residents in these industries indicate that San Benito County functions primarily as a working-class bedroom community for the more expensive counties to the North and West.
It is also worth noting that many of these industries have non-traditional work hours that may make San Benito County more attractive as the commute to Silicon Valley and Monterey is a little easier for people employed in these industries. For example, construction and teaching jobs often start at 7:00 and end at 3:30. Retail jobs are typically 10:00 to 6:00, and health care jobs are on staggered shifts. 23 San Benito County Regional Transportation Plan
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17 That said, it might be possible to recruit one or more tech sector firms that might then hire some of the 2,350 professional, technical and scientific workers that commute out of county. Of course, successful recruitment of a tech firm or two will have minimal impact on out-commuting because more than 80 percent of the out commuting is not related to the tech sector, and only a portion of the tech workers commuting out can be retained to stay in the county because a worker’s willingness to switch jobs depends on a good fit between the job opening and the skills and experience of a particular worker.
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18 2.5 Economic Context Summary, Findings and Implications Findings
San Benito County is a majority Latino community with a workforce that employers rely on to fill many low-wage jobs in agriculture, construction and food services. A relatively high percentage of San Benito County residents that did not pursue formal education beyond High School limits efforts to attract new business that require professional, technical or scientific expertise. New technology-oriented companies attracted might need to rely on a high percentage of out of county commuters.
San Benito County added 4,000 new residents since 2019 while Santa Clara County lost 50,000 residents and California overall lost 500,000 residents. San Benito County households earn only half of Santa Clara County’s household incomes. San Benito County’s median home price of $842,400 is 9.5 percent higher than California home prices.
Santa Clara County home prices are more than double California housing prices. San Benito County based establishments generate 18,815 jobs. Local business establishments generate 2,000 + more jobs as there are out of county commuters. Unlike most California counties San Benito County’s economy is skewed toward goods-producing activities rather than the service sector.
Agriculture is the largest component of San Benito County’s job base when combing agricultural production with food and beverage manufacturers. Crop production output combined with value added manufacturing are combined to form an agricultural production cluster. Other significant sectors of the economy include construction, retail, food services, health care, durable goods manufacturing, public education, and management and administrative services. Professional services and health care are two significant weaknesses of the economy. More than 8,000 out of the county commuters work in the business sectors of construction, retail trade, health services and public education. It will be nearly impossible to attract these place-based establishments that do business within a small market venue and are unlikely to succeed in a new location away from their traditional market area.
Approximately 2,300 professional, technical and scientific workers commute out of county. A portion of them could be attracted back to work locally, but efforts to attract global technology companies will be constrained by a workforce of San Benito County residents with relatively low levels of education.
Implications
Attraction efforts focused on reducing out of county commuting to jobs in construction, retail, health care and public education will not be successful.
Efforts to attract global technology companies that hire a significant percentage of professional, technical and scientific workers could be possible under the right conditions. However, new tech companies may need to recruit a substantial percentage of out of county workers, some of whom will relocate to San Benito County. An influx of high-wage workers will not necessarily reduce commuting, but will drive up housing prices and rents. Upward pressure on the housing market will either force new home construction and/or cause the displacement of low-income residents.
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19 3. STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS
(SWOT)
A summary of San Benito County’s economic development strengths, weaknesses, opportunities and threats (SWOT) are described below.
3.1 Strengths
Strengths are the region’s relative competitive advantages and are internal in nature. San Benito County’s strengths include:
Strategic location. San Benito County is Santa Clara County’s next-door neighbor, and its strategic location is within a short drive away from the global technology companies in Silicon Valley. San Benito County’s strategic location has attracted Silicon Valley investment in experimental aircraft, and pharmaceutical and semiconductor manufacturing.
Hollister Airport. Unique Hollister Airport allows businesses to lease or purchase hangers outside the airport and still have direct access to the runways.
Strong local employers with potential to expand.
Good workforce that fits San Benito County’s goods-producing business sectors. Great climate. San Benito County has world-class scenic beauty, a great climate and bucolic rural areas. Great soils support a strong and diverse agriculture base. Farming, packing and shipping of agriculture is San Benito County’s largest industry and supports more than 4,000 jobs. Earthbound Farms is the county’s largest employer.
Visitor attractions, and high-quality amenities. San Juan Bautista and Hollister both have attractive historic downtown districts. Pinnacles National Park is the most famous of many outdoor recreation destinations.
Access to large regional workforce. Local employers can ease the workforce shortage by recruiting out of county workers who will face an easy reverse commute. Lots of developable land, some with existing sewer and water services. Lower housing costs than neighboring Santa Clara County.
3.2 Weaknesses
The region’s relative competitive weaknesses are listed below:
Wastewater treatment is unavailable in many unincorporated areas. Even significant proposed land development projects within the unincorporated county must either rely on septic or fund costly connections to the Hollister (i.e. regional) Wastewater Treatment Plant. PG&E can no longer assure that new commercial buildings can access electricity from the Hollister substation. The Hollister substation must be updated by PG&E at a cost of many millions. Highways 152, 25, and 156 that connect to Santa Clara and Monterey Counties are highly congested with 16,700 commuters traveling out of the county each day. Time wasted in traffic is unproductive for both businesses and workers.
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20 Hiring challenges for all businesses. A workforce shortage makes it difficult to fill jobs for nearly all business establishments. The low 4.6 percent unemployment rate (1,300 active job seekers) is a historically sparse number of unemployed workers.
Shortage of workers with advanced education degrees constrains efforts to attract Santa Clara County based global technology companies.
Lack of access to higher-education institutions restricts efforts to prepare the workforce for the digitalization of industry and other skills training needed to compete in today’s economy. Fortunately, construction should start this year on a new 35,000 square foot Gavilan College campus. Broadband services are inconsistent and generally unavailable outside the Hollister and San Juan Bautista urban areas. Internet connectivity to homes and businesses is inadequate. A shortage of arts and entertainment activities.
Many outdoor recreation facilities lack amenities. Although San Benito County has a lot of beauty, walking, running, and bicycle access is limited by the lack of prepared and maintained trails, parks, and outdoor exercise areas.
High housing costs
Shortage of both for sale and rental housing.
Inconsistent access to quality, affordable childcare. Rural areas lack access to commercial services, transportation, jobs and business services. Public schools have a sometime underserved, negative reputation. Congested roadways impact family life and worker productivity.
3.3 Opportunities
Weaknesses are chances or occasions for regional improvement or progress. Expand additional solar power facilities or other forms of alternative green energy initiatives to reduce the reliance on PG&E as the sole provider of electricity. Fund the Hollister substation upgrade by establishing an Enhanced Infrastructure Finance District (EIFD). This would reduce the reliance on new PG&E investments and fund the ability to deliver ongoing electrical power.24
Assist existing businesses to expand through good planning, streamlined approvals, targeted workforce training and funding made available to assist small business. Expanding the supply of all housing types puts downward pressure on housing prices and rents.
Housing types that should be expanded include tiny homes, ADUs, workforce and affordable housing, and market rate units.
Attract new higher density smart growth developments with multifamily housing units, residential and commercial mixed uses along with great public spaces. Smart growth development will reduce the conflict between pro-development and pro-resource protection groups in San Benito County. Leverage the arts as an economic development initiative. This includes public art, murals, a pro-active effort to attract artists, and the creation of multi-purpose artist workspace, venues for music, theater, and performing arts.
24 Attached link describes how EIFD’s work. https://scag.ca.gov/post/enhanced-infrastructure-financing-district-eifd Draft Report_06/01/2023
21 Continue to expand all transportation modes (roads, bike lanes, walkways) to connect residents to education, jobs and healthcare facilities.
Continue to encourage walking and biking everywhere by making existing roads more bicycle and pedestrian friendly and safe. Also, construct bikeways, walkways and running paths away from the streets.
Prepare residents for the digitalization of nearly every business, which will require the workforce to have significant digital dexterity within nearly every business sector of the economy.25 Connect youth to the workforce with training, screening, transportation, mentoring, compensation, internship and leadership programs.
Continue to leverage local, State and Federal funds and programs for economic development and diversification, renewable energy, housing assistance, infrastructure improvements and economic equity.
Leverage local, State and Federal funds and programs for major transportation initiatives such as the SR152 (25, 156) commercial corridor improvements, funding a safe and efficient connection between CA5 and CA101 and funding High Speed Rail (HSR) over the Pacheco Pass. Establish a community college campus and expand workforce training opportunities and career development support within San Benito County.
Re-imagine downtown Hollister and San Juan Bautista as higher density communities.
3.4 Threats
Threats are chances or occasions for negative impacts on the region or regional decline. More frequent droughts, flooding, wildfires and other severe weather events associated with climate change.
Nearby earthquake faults and an actual earthquake that causes significant visible damage. San Benito County is near the center of the 1989 Loma Prieta Earthquake that destroyed downtown Santa Cruz and severely damaged downtown Hollister.
Inadequate funding to maintain and improve the existing water, sewer, flood control, storm drains and roadway systems.
Changing consumer and worker behavior during the COVID-19 pandemic threatened the economic viability of each downtown district. The pandemic accelerated a more severe shift toward online shopping that continues today with a general reluctance to return to “normal” consumer behavior.
Remote work lifestyle has also changed consumer-shopping behavior. Access to health care for both residents and businesses is under threat by the potential closure of Hazel Hawkins Hospital.
Ongoing tension between pro-development efforts with individuals and community groups dedicated to preserving the existing landscape. These tensions sometimes generate inconsistent approaches and attitudes about real estate development, business attraction and environmental protection. The collaboration between San Benito County and the two cities is sometimes inconsistent. 25 https://www.indeed.com/career-advice/career-development/digital-skills Draft Report_06/01/2023
22 Some segments of residents are not involved in community and civic life, and currently have few resources to answer concerns and questions about planning, government, land use and other civic issues.
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23 4. ECONOMIC DEVELOPMENT MISSION STATEMENT AND
GOALS
The CEDS Strategy Committee, comprised of individuals from business advocacy organizations, business owners, local government, and non-profits, gathered together over three meetings to discuss San Benito County’s economy, their economic development goals and the priority initiatives. The Committee collaborated to articulate the vision, goals, and objectives that are documented in this report. The mission statement and goals that the Committee adopted to guide the ongoing economic development initiatives are described below.
4.1 Mission Statement
The Mission Statement adopted by the CEDS Strategy Committee is to:
“Work collaboratively to build our sustainable and resilient economy to foster innovation and inclusively to support efforts to work locally while earning living wages.” Committee’s vision to guide future actions is as follows:
Support the production sectors of manufacturing, aerospace, biomedical devices and agriculture. Stabilize the health care sector.
Engage in proactive workforce development from K-12 to career through vocational training and college by focusing on the strengths of the diverse community. Expand and strengthen entrepreneurship.
Focus on smart growth through infill development and the preservation of open space and agricultural lands.
Develop affordable and walkable live-work-play communities. Develop an interconnected multi-modal transportation network. Expand tourism connections to open space, agriculture, history, and cultural strengths and resources.
4.2 Economic Development Goals
The CEDS Strategy Committee also agreed upon four economic development goals and objectives that are described below.
Goal #1: Leverage the County’s Economic Strengths -
Grow the agricultural technology, energy, research and aeronautical sectors of San Benito County’s economy.
Construct and maintain the backbone infrastructure systems. Strengthen the Value-Added Sectors of the economy.
Build synergisms between tourism, agriculture, history, culture, and open-space assets.
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24 Goal #2: Expand Equitable Communitywide Prosperity - Bring broadband connectivity to San Benito County.
Focus on infill development.
Expand the supply of housing (including affordable housing for workers). Provide good, affordable child care
Goal #3: Support People -
Upskill the digital and vocational skills of the workforce. Support entrepreneurship
Provide opportunities for county residents to establish careers Goal #4: Increase Economic Resilience -
Develop energy solutions to reduce dependence on PG&E. Develop new water-storage and flood-control management infrastructure. Prepare for extreme climate or man-made events such as drought, floods, wildfires and mass shootings.
Prepare for a potential significant earthquake.
Provide businesses and residents with opportunities to learn about cyber security to prevent identity and on-line theft.
Provide businesses and residents with opportunities to reduce or prevent property crime and improve physical security
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25 5. ECONOMIC DEVELOPMENT INITIATIVES
Sixteen fundable economic development initiatives were identified during three meetings with the CEDS Strategy Committee, stakeholder interviews, and a survey that was distributed to forty civic groups and nonprofit organizations. All of the initiatives described below are in progress toward implementation. Most are backed with private funding and in the process of being approved (or not) by one or more local government jurisdictions. The various initiatives are compiled into a summary chart that can be viewed in Appendix B, which is sorted into three categories:
Initiatives that affect all of San Benito County or are proposed to be located in the unincorporated area.
Initiatives that are exclusive to the City of Hollister Initiatives that are exclusive to the City of San Juan Bautista
5.1 Countywide or Unincorporated San Benito County Initiatives Urgent Ongoing Initiatives
Initiative #1: Retain Hospital Facilities in San Benito County The current hospital that is located in the City of Hollister, is a vital facility that delivers health care services to San Benito County residents. However, the hospital’s financial difficulties may force the facility to close. If the hospital does close, it is critical to attract an alternative provider of health services to reuse the site.
A closed hospital would be a big blow to the local economy, negatively affecting the business climate and residents’ quality of life. More directly, BenitoLink26 reported that the hospital closure would eliminate 578 staff jobs and 136 physician jobs, which accounts for 57 percent of San Benito County’s health care jobs.
Additional indirect and induced jobs from businesses that do business with the hospital will also be lost, along with household income, business revenue, and spending from all of these employees.
San Benito County’s collective energy is focused on maintaining the hospital as a viable entity. As of this moment the situation is very fluid. Regional stakeholders are actively engaged in discussions with hospital management to find a new health care provider or a partner for the current hospital. At this time the costs of maintaining, improving, or adaptively reusing the existing hospital facilities are unknown.
Initiative #2: Generate New Electrical Power Needed to Support Additional Business Activities The Hollister substation that serves most of San Benito County can no longer guarantee that new commercial facilities can access electrical power. This means that the substation must be updated or an alternative microgrid with renewable energy must be added to support new business growth.
PG&E is in the design phase of increasing capacity at the Hollister substation, and it is unclear when new electrical power can be generated. This leaves several pending commercial construction projects with no available power for possibly years. The lack of sufficient electrical power capacity could shut down most of San Benito County for new business growth and damage the local economy.
San Benito County’s economic development stakeholders should proceed on two paths to generate new electrical power:
Work collaboratively with PG&E on innovative financing solutions to upgrade the Hollister substation’s capacity so it can produce more electrical power. The establishment of an Enhanced Infrastructure 26 BenitoLink is an online news source.
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26 Finance District (EIFD) to help fund a new substation should be considered along with assistance from the State Legislature or the Governor’s Office.
Explore all renewable and green energy options to increase the electrical power supply and explore the possibility of establishing a micro-grid for the area served by the Hollister Airport substation.
The cost to upgrade the existing substation is unknown but will likely amount to millions of dollars. The costs for renewable and green energy options are also unknown.
Initiative #3: Develop a New College Campus
A 70-acre site at Fairview Corners was purchased to develop a new Gavilan Community College campus that will include a 35,000 square foot building for classrooms, labs, and a community meeting space, along with 150 parking spaces. The new community college campus will create jobs and provide critical educational facilities and services needed to make San Benito County a more attractive place to live and work.
The initiative is funded by a $60 million bond measure that was approved in 2018. Funding for the entire project will be used to complete the main campus building along with the offsite roadway and access improvements, wastewater treatment, and an extension of water and power to the site.
At this time the initiative is smoothly moving toward implementation. The application for PG&E electrical power was approved prior to the current shortage. Construction is expected to start once the State architect approves the project, which should happen in 2023. Additional funding will be needed to support the future build out of the entire campus site with additional classroom space, athletic fields, and other amenities.
Initiatives that may take 1 to 3 Years to Implement
Initiative #4: Expand the Youth Empowerment Hub (YEHUB) The Youth Empowerment Hub is a facility located in downtown Hollister where young people from low-income and immigrant households can receive support to finish high school and/or assistance to enroll in a community college and/or assistance to select a non-college employment option by learning a trade skill or starting a business. Young people who are at risk of not entering the workforce can use the facility’s study areas that have computers with Internet access, career and employment search/application assistance, mentorship in life skills, social and emotional support, housing assistance, and job readiness preparation. Experiences from the HUB can help young people become an important segment of San Benito County’s workforce and overcome trauma and cycles of poverty that limit their opportunities to reach their full potential.
The non-profit organization that manages the YEHUB is an ongoing successful entity that rents a 9,000 square feet building used for afterschool programs, community outreach and youth and family support services. A portion of the rental space is dedicated for the YEHUB, and there is a desire to expand the YEHUB space in order to improve the quality and depth services that can be delivered.
Expansion of the YEHUB will require the current facility to be renovated, or a larger building will need to be purchased. Renovation of the existing building that they rent could be accomplished for less than $50,000.
Purchasing a larger new building near their current location is likely to cost about $3 million. However, no funding has been secured for either option.
Assisting low-income immigrant youth to complete high school, apply for community college, engage in trade skills training, and/or start their own business generates long-term economic development benefits. The YEHUB also improves family and community stability, reduces the potential for long-term social problems (such as homelessness) and prepares young people to be more ready to enter the workforce.
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27 Initiative #5: Implement the Proposed Automotive Research and Testing Facilities at Highway 156 and San Felipe Road
Private investors proposed to develop a 230-acre site for auto technology research that features 2.5 miles of track to be used for testing all types of motor vehicles. The proposed development would also include one hundred high-end commercial garage spaces that is hoped to attract car collectors, mechanics, and other individuals and businesses engaged in motor vehicle research. The development may also include a public events center, a trade school, and other auto tech businesses. Some other features of the proposed project are summarized below:
A 25-acre section of the site located apart from the testing facilities would be developed for a truck stop with a restaurant, a convenience market and a hotel. The proposed initiative may transform Hollister and San Benito County into an automobile research and testing destination.
The project developer anticipates that the proposed initiative will require a $130 million private investment. At this time there is no request for public funding assistance. The site is located in the unincorporated county outside of the Hollister “Sphere of Influence”. The Local Agency Formation Commission (LAFCO) will need to approve annexation into the city. The proposed project also needs to be approved by San Benito County and the City of Hollister...
Initiative 6: Implement the Proposed Commercial Center Within the Santana Ranch Subdivision Santana Ranch is an existing subdivision located on 300-acres of land in unincorporated San Benito County, just east of the City of Hollister. A new commercial center has been proposed on 10-acres of undeveloped land within the existing subdivision.
A new commercial center that will require $30 million of private investment would keep more shoppers local, reduce traffic leaving the county and create new jobs. Some, but not all of the funding has been secured. A conceptual design of the site has been prepared.
Initiative #7: Implement the Commercial Development Project at Hwy. 101 and Betabel Road A 26-acre site located near the Highway 101 and Betabel Road interchange is envisioned to be a “1950s vintage road-side experience” with nearly 110,000 square feet of commercial space, a gas station, a convenience store, a restaurant, up to five amusement buildings, a visitor center, and a three-story motel with an outdoor movie screen. The proposed project also includes nature trails and a raptor-rehabilitation center. If implemented the new commercial development will create 75 to 100 fulltime jobs plus significant tax revenue for San Benito County.
The proposed project’s use permit and Environmental Impact Report (EIR) were recently finalized and approved by San Benito County. However, the development has been contested in court for more than one year and continues to face significant local opposition. Two non-profit organizations (the Center for Biological Diversity and Protect San Benito County) filed a lawsuit challenging the validity of the EIR and the process of preparing the report. The groups asked a judge to order the County Board of Supervisors to reverse the previous approvals due to their claim that the proposed project harms and disrupts one of the last remaining wildlife corridors between the Santa Cruz Mountains and the Gabilan Range in San Benito County. At this time, the project is on hold, and it is unclear when or if the legal issues will be resolved.
Total build-out costs are unknown, but the proposed project will be privately funded, and no public subsidies have been requested.
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28 Ongoing Long-Term Initiatives
Initiative #8: Improve Internet Access for All Businesses and Residents An important long-term economic development initiative is to build fiber optic infrastructure to deliver highspeed Internet service to nearly all San Benito County residents and businesses. The goal is to serve the county’s rural areas and small communities, not just the two cities, which already have decent Internet connections. Good Internet access is necessary to improve the quality of life among existing residents, and for San Benito County to be a viable business location, and for the area to be a more attractive location for remote workers to reside.
A multi-million-dollar investment is needed to build a fiber optic network that connects Hollister with San Juan Bautista and the county’s rural areas. Partial funding may be available from the State of California, which allocated $6 billion to fund Internet access to rural areas. Additional funding may be available from the Monterey Bay Economic Partnership, which secured a $1 million California Public Utilities Commission (CPUC) grant to expand broadband in Monterey, Santa Cruz, and San Benito Counties. The grant will be disbursed over five years.
At least one private Internet provider is interested in investing in fiber optic infrastructure that connects Hollister with San Juan Bautista and the rural areas between the two cities. The Rural County Representatives of California is administering a grant and has selected a consultant to prepare a Broadband Strategic Plan for San Benito County.
Initiative #9: Establish a Countywide Tourism Initiative A countywide tourism initiative, managed by a single organization, should capitalize on the county’s two significant visitor attractions: the San Juan Bautista Historical District and Pinnacles National Park. An effective regional tourism initiative could also connect the main attractions with other potential tourism assets such as hiking, farmers markets, and winery and agricultural tours, all of which are under-promoted. More tourism will generate additional jobs, income, and tax revenue, without a significant strain on the demand for housing and public services.
Effective regional visitor promotion of the entire region could cost $300,000 to $500,000 per year. This level of funding could support a visitor information center, the management of websites, proactive marketing, data collection and reporting, assistance, participation in state and regional tourism initiatives, coordination with Pinnacles National Park, and the initiation of new tourism initiatives.
Currently, San Benito County’s tourism-promotion efforts are disconnected from undertakings initiated by San Juan Bautista and Downtown Hollister’s farmer’s markets and other special events. San Benito County has funded a Wine Heritage District Feasibility Study to determine the feasibility and practicality of establishing a Tourism Improvement District. This initiative has stalled, and some visitor-serving businesses engaged in this effort are discouraged.
Initiative #10: Develop the Proposed Autonomous Vehicle Innovation Park The Autonomous Vehicle Innovation Park is proposed as a research and development facility to test autonomous vehicle technologies. The vision for the project is to develop and manage a premier automotive proving ground facility near Silicon Valley that would be used to safely conduct extreme tests, develop vehicles and technologies in a closed, secure environment, and to test and validate products prior to introducing them to the marketplace. The proposed project would include:
New business space for manufacturing vehicles and components and a driver-experience center; 1,077-acres of technology testing grounds, a 127-acre research park, a 24-acre commercial site and a 253-acre area reserved for E-Commerce facilities; 227 acres of agriculture, a 252-acre greenway, a 394-acre Pajaro River preserve and a 153-acre habitat preserve, and: Nearly 300 acres of infrastructure, water storage and right-of- Draft Report_06/01/2023
29 way. Proponents state that the proposed project will create more than 18,000 construction jobs and 5,000 permanent direct jobs for a variety of professions ranging from automotive engineers and software developers to truck drivers and cashiers. At full build-out, the permanent jobs would generate $660 million in annual payroll.
Project costs and the potential need for public funding are unknown. Investors have established a showroom space in Hollister where the general public can learn more about the proposed project. A Draft EIR was in the works but in March 2023 the project developer asked the county to pause its work on the project’s application, which has placed the EIR workplan on hold with no projected date for when it might resume.
Initiative #11: Expand Outdoor Recreation
Additional recreational areas for runners, bikers, and walkers will provide health benefits to residents and make the area more attractive for visitors and future residents. A regional effort to expand outdoor recreation will improve the quality of life and make San Benito County a more desirable place to live and work. Below is a description of other efforts to expand outdoor education:
San Benito County received a $2.4 million grant from the State to build a regional park on seventy acres of undeveloped land located along River Parkway. The park will be built in three phases starting in the fall 2023 with a 93-space parking lot that will cost about $1.1 million, mostly funded by last year’s $750,000 allocation from the State budget. It is unclear if additional funding will be needed to complete construction. Funding for amenities such as exercise stations, cross-country courses, playgrounds, etc. may be available through a state grant. The City of San Juan Bautista (SJB) promotes the use of nearby recreational trails, but new funding will be needed along with improved promotion to encourage residents to hike, get outdoors, and explore the area.
The San Benito Agricultural Land Trust and its partners plan to identify private lands that can support additional trails and determine the feasibility of using trail easements on private property. The design of this initiative was completed with a state grant that funded efforts to meet with interested landowners.
The Pinnacles Gateway Partners is an ongoing effort by citizens and the County Chamber of Commerce to spread the benefits of tourism surrounding the National Park.
5.2 City of Hollister Initiatives
Ongoing Long Term Initiatives
Initiative #12: Revitalize Downtown Hollister
Numerous historic buildings are in need of repair and revitalization for the foundation of downtown Hollister.
The ongoing revitalization effort is a constantly changing and improving dynamic process limited by scarce fiscal resources and managed as a partnership between the City of Hollister, the Hollister Downtown Association (HDA), and the local business community.
The City relies on HDA to run the special events that provide free entertainment and attract thousands of visitors. The 2023 special events are anticipated to attract more than 65,000 people. Recent accomplishments include:
Year-around tree lighting;
The establishment of one-way streets;
Construction of parklets during COVID;
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30 An archway as a downtown entryway, and
Continued promotion of the Farmer’s Market
Going forward, the purpose of the revitalization effort should be to attract new investment into the vacant and underutilized commercial spaces, to expand commercial activity, and create new jobs and taxable sales for the City of Hollister. The city may engage in outreach to potential developers and offer incentives in the form of rehabilitation tax credits, grant opportunities, federal preservation funds and other incentives to retrofit downtown historic buildings.
Initiative #13: Attract Investors and Developers to Build New Hangers at the Hollister Municipal Airport
The City of Hollister wants to attract private investors to construct new hangers at the Hollister Municipal Airport that will in turn attract business tenants that can benefit from direct access to the runway. New hangars will make the Airport more attractive to aviation related users that can benefit from access to the runways. Below are some other factors affecting implementation of this initiative:
The costs of adding new hangers are unknown at this time. New investments would most likely be privately funded. The City of Hollister owns and manages the airport but lacks the funding to make improvements.
Initiative #14: Develop Open Space Taxiways to Allow Businesses Access to the Runways at the Hollister Municipal Airport
Expanding taxiways at the airport will attract firms that can take advantage of having direct access to a runway surrounding (but not inside) the airport, which will stimulate new business formation and job creation. The taxiways will transform the airport into a more effective economic development asset. The cost of securing the rights-of-way and constructing the taxiways is unknown.
Establishing new taxiways is conceptual and a design and infrastructure plan is being developed to better understand the details of roadway and infrastructure improvements. Public funding may also be required. The City of Hollister is planning to apply for an EDA Grant to support the effort.
5.3 City of San Juan Bautista Initiatives
Urgent Ongoing Initiatives
Initiative #15: Wastewater Treatment Services Compliance Initiative The City of San Juan Bautista (SJB) is in the process of installing a six-mile wastewater force main that connects to the Hollister Regional Wastewater Treatment Plant. This initiative is urgent because the City of SJB accumulated more than $800,000 in fines from the California State Water Resources Control Board for discharging elevated levels of sodium chloride and bacterial pollutants into the Pajaro River. The City of SJB has until December 2023 to become compliant with the U.S. Environmental Protection Agency (EPA) requirements.
At this time, the new wastewater treatment plant and environmental studies have been approved, and the City of SJB is currently negotiating project details with the San Benito County Water District. The initiative will place San Juan Bautista in sewer discharge compliance with EPA’s wastewater discharge standards. Once connected, San Juan Bautista’s existing treatment system will be decommissioned.
Installing a six-mile force main to connect the Hollister Regional Wastewater Treatment Plant is estimated to cost $18 million. San Juan Bautista’s City Council unanimously approved a $14.6 million bond for the Draft Report_06/01/2023
31 wastewater project. The bond secured two loans totaling $10.2 million, along with a $4.3 million U.S.
Department of Agriculture grant.
Beyond EPA compliance, connecting San Juan Bautista’s wastewater to the Hollister Regional Wastewater Treatment Plant will allow for the expansion of new residential and business connections, which will generate economic growth and new job creation.
Initiative #16: Develop A New Source of Clean Drinking Water for the City of San Juan Bautista The City of San Juan Bautista, the San Benito County Water District, and the West Hills Water Treatment Plant have formed a partnership to construct five miles of pipeline to transport new clean water needed to lower nitrate levels in the public water supply that is used by San Juan Bautista residents and businesses. The new clean water source allows the City of San Juan Bautista to comply with EPA standards.
Cost estimates for the pipeline range between $12 and $15 million. Seventy-five percent of the project costs will be funded by a low-interest loan from the U.S. Department of Agriculture (USDA). Customers will absorb the remaining costs. The initiative is in the advanced stage of planning and engineering will proceed soon.
Funding has been secured.
A new source of clean water will allow the city to permit more breweries and restaurants, which will attract revenue from visitors, create jobs, and contribute to the tax base.
Initiative #17: City of San Juan Bautista Multi Modal Transportation Project This context-sensitive, rural scale transportation center will result enhanced transit patronage and make possible for direct transportation services such as carpool, ride share, van pool and other alternative transportation services for those who walk, bicycle or drive to the Multi-Modal Center for travel to/from any destination from Gilroy to Hollister. The project includes:
A 7 mile shared pedestrian/bicycle path that terminates prior to the intersection of The Alameda in San Juan Bautista;
A Multi-Modal Center that can accommodate staging and support improvements for a wide variety of related interconnections (San Juan Elementary School, Anza High School, Anza Trail, Third Street Historical District, Historical State Park and Mission San Juan Bautista); Landscaping and visitor center; and
A gateway, various pedestrian and bicycle touring facilities, and interpretative areas and sites.
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32 5.4 Other Economic Development Advocacies and Ideas
A survey sent to approximately forty non-profit community groups combined with in person or telephone/zoom interviews of thirty-one stakeholders yielded fifteen additional suggestions for future economic development initiatives as shown in Figure 9. The majority of these ideas have yet to get some momentum behind them with local government support. Some ideas listed in Figure 8 may never advance beyond an idea; some, however, could gain some significant support and be in position to seek EDA funding.
Figure 9
Other Economic Development Advocacies and Ideas
Protect Prime Agricultural Land Prepare Third Street Corridor Downtown Improvement Plan (San Juan Bautista)
Place Crop Signs on Farms to Promote
Agricultural Tourism
Finish Storm Drain Plan for Industrially Zoned
Land (San Juan Bautista)
Add Electric Vehicle Charging Stations
Throughout the County
Initiate an Historical Cultural Trail in San Juan
Bautista
Create an Entrepreneurship Initiative Develop New Cold Storage Facilities Farm and Wine Tours Establish a Community or Senior Center in San Juan Bautista
Continue to Promote Regular Farmer’s
Markets (Hollister)
Establish an Agricultural Streambed
Maintenance and Water Restoration Program
Develop a Telecommute Center (Hollister) Establish a New Performing Arts Center in the region
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33 6. BENCHMARKS AND PERFORMANCE MEASURES
Progress on all economic development activities will be measured against benchmarks to document progress toward accomplishing the regional economic development goals. The benchmarks ideally measure outcomes, results, and accomplishments rather than process tasks such as making phone calls or attending meetings. The Economic Development Corporation of San Benito County (EDC) with the knowledge of data sources and analytical techniques and with guidance by a stakeholder committee can benchmark the annual accomplishments. Selected measures and outcomes should be reported back to other economic development stakeholders, the EDC board and other economic development partners.
This narrative describes how San Benito County’s economic development accomplishments can be annually measured and documented. The performance measures connect back to the economic development goals adopted by the CEDS Strategy Committee as described in Section 4.2 of this report.
6.1 Goal #1 Benchmarks: Measurements of San Benito County’s Economic Strengths
Objective #1A: Expand the Technology, Energy, and Aeronautical Economy Data Axel, a business research service can provide the data needed to measure growth of the number of firms, employment, and business sales for all private business sectors of San Benito County’s economy. The database costs about $500.
In addition, Dun & Bradstreet’s Econovue is a business intelligence database that can track workforce needs and at-risk business sectors.
Objective #1B to Construct and Maintain Backbone Infrastructure Systems Business retention, expansion, and attraction require adequately subdivided sites with correct zoning and access to wastewater treatment, electrical power, storm drainage, water supply and roadways that connect to regional transportation networks. Measuring progress with infrastructure improvements will require data collection since this information is not available online or via other secondary sources. Shovel Ready Sites – An inventory of the available business sites that are properly zoned and have adequate infrastructure services should be prepared and periodically updated. The data can be collected through periodic contacts with San Benito County and the two cities. Wastewater Treatment – Commercial and industrial sites must have access to adequate wastewater treatment services in advance of development. This information can be documented in an initial inventory of shovel ready sites, but the performance measures can also track the capacity of treatment plants to support new business connections, any potential growth constraints, and the capacity to expand the facility to support new industrial and commercial connections. Electrical Power – Business sites must have access to electrical power in advance of development.
PG&E manages the county’s three substations, and the utility controls when new buildings can be connected to the grid. The performance measures should track the substation’s capacity to support new business connections, the capacity to expand the amount of electrical power available to new industrial and commercial connections, and any potential growth constraints that are in place. Storm Drainage – Business sites must have adequate storm drainage to prevent periodic flooding. The performance measures should track the capacity of each jurisdiction’s storm drainage systems to support new growth and any ongoing improvements.
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34 Water Supply – Business sites must have access to an adequate supply of water. The performance measures should track the capacity of each jurisdiction’s water supply systems to support new growth along with improvements that are being made to the water supply. Roadway improvements – Information about areas of major roadway congestion is readily available, and highway interchange and roadway improvement projects can be measured and reported on an annual basis for each jurisdiction.
Objective #1C: Strengthen the Value-Added Sectors of the Economy Data Axel can be used to measure annual changes in value added to agriculture produced in San Benito County, which is the manufacturing, packing, and distribution of food products, wine and beer. The data can be used to measure growth in the number of firms, employment, and business sales for the foodmanufacturing sector.
In addition, provide regular engagement with businesses, tax credits, incentives, financing options, technical support for business development, growth, continuity, succession and resilience.
Objective #1D: Build Synergism Between Tourism, Agriculture, History, Culture, and Open Space Assets
Transient Occupancy Taxes (TOT) and retail sales receipts can be gathered from each jurisdiction and analyzed for improvements in comparison with statewide and regional trends. Tax receipts that capture a sizable portion of visitor spending in the county can measure progress toward accomplishing the goal.
For this metric it also makes sense to benchmark collaboration as San Benito County’s tourism, agriculture, and open space stakeholders are often in competition with each other and collaboration is rare. Possible benchmarks include:
Meetings of the various stakeholders involved in tourism, agriculture, and open space protection. The meetings should include but not be limited to the following groups: Hollister Downtown Association, San Juan Bautista’s Economic Development Citizen’s Advisory Committee, Pinnacles National Park, San Benito County Chamber of Commerce, Earthbound Farms (large employer), San Benito Foods (large employer), San Benito County Farm Bureau, San Benito Agricultural Land Trust and San Benito County Resource Management Agency.
Progress on individual or collaborative projects which develop out of the above meetings.
6.2 Goal #2 Benchmarks: Expand Equitable Communitywide Prosperity Objective #2A: Bring Broadband Connectivity to San Benito County It is a long-term economic development goal to deliver fiber optic Internet service to San Benito County’s rural areas and small communities, not just the two cities (Hollister and San Juan Bautista), which already have decent Internet connections. This goal is shared throughout the Central Coast region, but specific San Benito County focused efforts have yet to be initiated.
Measuring progress to accomplish this goal will be a start-up effort. The measures should document San Benito County’s participation with the Monterey Bay Economic Partnership’s Central Coast Broadband Consortium in their ongoing efforts to bring broadband internet services to rural hard-to-serve areas throughout the Central Coast region. The meeting outcomes should be documented and reported back to county stakeholders. Progress made implementing a San Benito County Broadband Strategic Plan should also be documented after the first year.
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35 Objective #2B: Direct New Real Estate Investment Toward Infill Sites A goal to direct new real estate investment toward infill sites with access to nearby transportation networks and infrastructure services is a new approach for San Benito County. Some innovative ideas will be needed to measure success toward implementing the goal. An annual report on infill development could be prepared and reported back to the community.
Objective #2C: Expand the Housing Supply
An insufficient number of homes have been built to keep up with San Benito County’s expanding population.
This has caused a housing shortage for rental and for sale homes as outlined below:
The total number of new houses built per year and the growth rate of new housing construction is available in April each year as part of a mandatory report provided to the State Housing and Community Development Department.
The county and two cities (Hollister and San Juan Bautista) can make it easier for housing developers to invest, by implementing more flexible zoning, improved permit processing, and other land use planning reforms.
Infrastructure access (sewer, water, roads) is critical to new housing production, and Support the implementation and promotion of new pro-housing laws such as SB-9 and ADU laws.
Objective #2D: Expand Affordable Housing
The number of affordable housing units in San Benito County is inadequate to meet the need of many lowincome residents. The total number of new affordable units built per year is available from each jurisdiction in April as part of mandatory reporting to the State Housing and Community Development Department. In general, cities and counties can support the development of “affordable housing” with:
Housing Fund Subsidies. The housing fund is capitalized by developer contributions, which can be used to subsidize the development of more affordable housing. An inclusionary housing ordinance requiring developers to construct 10 to 20 percent of all new units as “affordable” units.
Zoning regulations such as SB-9 and ADU law which make it easier to build more units on a singlefamily lot and to subdivide that lot into two parcels. Collaborate with affordable housing developers, who use Tax Credit Financing, to construct larger affordable housing complexes for low-income seniors, veterans, families, and the homeless. Update housing impact fees to encourage the development of affordable, smaller units. Encourage the planning of affordable housing via proactive zoning and supplemental infrastructure
6.3 Goal #3: Support Residents and Local Business
Objective #3A: Upskill the Workforce in digital technologies and other vocational skills This is yet another objective where San Benito County is at a starting point since there are no initiatives in place to train the workforce in digital technologies or even vocational skills. The performance measure would be to monitor and document any workforce training programs in digital technologies or other vocational skills.
Provide additional and new assets for workforce training that helps the existing workforce advance their careers via soft skills, technical training, leadership and supervision.
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36 Objective #3B: Support Entrepreneurship
Currently, San Benito County partners with Cal Coastal Small Business Development Corporation (SBDC) to support entrepreneurship, to create new employment opportunities along with equitable wealth creation. The performance measure would be to monitor and document the number of entrepreneurs and small businesses helped through the SBDC in the county.
Support new and existing entrepreneurs with succession and continuity planning to help ensure that they remain and grow in San Benito County.
Objective #3C: Improve Information About San Benito County’s Workforce.
San Benito County suffers from a lack of good information about its workforce needs. The Latino majority includes a significant percentage of agricultural workers impacted by dramatic weather events and climate change. Workforce leaders can only make an educated guess about the number of workers that commute out of county, the geographies and industry sectors where they work, and their availability to switch to local jobs created by an expanding business base. The most recent commuting data is from a 10-year-old survey. In addition, no adequate information exists about the job readiness and digital skills of the approximately 1,300 unemployed residents. We also do not know if existing and new businesses attracted to San Benito County can realistically recruit an out-of-county workforce to commute in.
6.4 Goal #4: Increase Economic Resilience
Objective #4A: Develop Energy Solutions to Reduce Dependence on PG&E San Benito County is just at the starting point of encouraging the adoption of non-renewable energy independent from PG&E. Below is a list of some possible benchmarks that could be documented:
Progress made establishing micro-grids to serve new business tenants surrounding the Hollister Airport, at the Hollister Airpark, and elsewhere;
Progress getting started on a solar farm feasibility and siting study; Progress expanding PG&E’s substation as a producer of new electrical power; Progress made developing alternative energy supply for business, industry and agriculture; Progress made expediting the permitting process for small-scale alternative energy facilities; Progress made transforming county facilities into carbon-free, zero-waste and resilient activities.; Progress made phasing out county and city owned gasoline powered light-duty cars, vans, and pickups; and,
Progress made installing electric vehicle charging station infrastructure throughout the region.
Objective #4B: Develop New Water Storage and Flood Control Management Infrastructure Quite a few water-storage and flood-control projects were identified in the Multi-Jurisdiction Local Hazard Mitigation Plan. Documenting the progress made implementing the projects would have to be a ground up effort. The benchmarks to document would be:
Progress made establishing a new dam and an expanded reservoir on the North Fork of Pacheco Creek; Progress made completing the Managed Aquifer Recharge Study; Progress made expanding production well capacity in the North San Benito Basin; Progress made identifying ingress and egress routes in affected flooding areas; and, Draft Report_06/01/2023
37 Progress made assessing risks of the potential San Felipe Dam failure and Pajaro River flooding.
Objective #4C: Prepare for Extreme Climate Events
The first step is to prepare a Climate Action and Mitigation Plan for San Benito County to comprehensively identify and address the increased risks associated with climate catastrophe related to wildfires, drought, extreme temperatures and extreme storms. The benchmark should be to measure progress completing the study.
Objective #4D: Prepare for Potential Significant Earthquake Actions that can be taken to reduce risks from a potential significant earthquake hitting San Benito County were identified in the Area Multi-Jurisdiction Local Hazard Mitigation Plan. Some benchmarks to document are listed below:
Progress made replacing Union Bridge;
Progress made retrofitting public water supply systems; Progress made creating an inventory of public buildings that require seismic retrofit; Progress made creating a countywide emergency operations center; and, Progress made complying with state and federal requirements to assess the vulnerability of dams to damage from earthquakes, landslides, liquefaction, or security threats.
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38 7. ECONOMIC RESILIENCE
Economic resilience strategies will position San Benito County to survive and adapt to sudden acute shocks due to natural disasters, manufactured disasters, or unanticipated economic shocks. Measures to fortify the community after disasters strengthen the region’s overall adaptability to change and sudden shock.
7.1 Natural and Man-Made Shocks
The information below describes the economic shocks that are most likely to impact San Benito County. The “most likely” list are the disruptions or shocks that may hit the county, and the region’s attempts to reduce the impacts on residents and businesses.
Floods
The flooding of the town of Pajaro in nearby Monterey County during the 2023 rainstorms reminds all residents about the dangers of living in a flood plain downstream from a 100-year-old levee that needed to be upgraded or replaced for decades. In fact, flooding along river and stream corridors is a natural occurrence in the major river valleys and tributary basins within San Benito County. But natural occurrences can become dangerous and cause severe damage during periods of extreme rain events. San Benito County’s generally level topography contributes to flooding problems, since once water rises above (or flows around) stream banks or levees, it may spread out over large areas.
Although several dams in or adjacent to the county provide beneficial water supply storage and serve irrigation and recreation needs, the reservoirs could inundate portions of the county in the event of a natural or humancaused dam failure. A dam failure has the potential to cause loss of life, damage to property, and other related hazards, along with displacement of residents and/or damage to water resources and other infrastructure facilities (e.g., irrigation, electric power generation or transmission, transportation).
Long-Term Drought
San Benito County has experienced long-term drought for a number of years since the early 2000’s. Drought can have a widespread impact on the environment and the economy, although it is not likely to cause a loss of life or damage to structures. The severity of a drought depends on the degree of moisture deficiency, the duration, and the size and location of the affected area.
According to the U.S. Drought Monitor San Benito County has been in severe, extreme or exceptional drought for a total of 10 years since 2008, and the county has been in “exceptional” drought (the highest category) since 2014.27 The 2023 rainstorms finally moved San Benito County out of the “Extreme” drought category, and reclassified the northern portion of the county as “Moderate” and the southern portion as “Severe.” However, despite the recent rains the county is still not out of a drought.
Public Health
The COVID-19 pandemic taught everyone what a significant impact that disease and public health has on society and the economy. Years from now when historians look back on the effects of the COVID-19 pandemic, it will describe how it changed society and the economy in very profound and lasting ways such as:
Supply chain problems that are due to a shift of consumer spending away from services and toward buying more commodities;
27 Data Source: https://droughtmonitor.unl.edu/CurrentMap.aspx Draft Report_06/01/2023
39 Business shutdowns convinced the federal government to pump billions of dollars into the economy stimulating new private investment and job creation;
Millions of people quitting their jobs to work from home, start a new business, and/or adopt a better work-life balance;
Many workers have abandoned the nine-to-five, one-size-fits-all corporate business model, leaving long-lasting psychological marks on workers and changing the way employers and employees envision the future of work; and,
Remote work and a significant downsizing of office space have altered downtowns and central business districts everywhere.
Wildfires
Six significant wildfires have hit San Benito County since 2018 burning 3,100 acres of land. Forty-two percent of the total acreage burned occurred during the 2018 “Airline Fire”. The 2020 “Bitter Fire” burned 810 acres.
With drought conditions in recent years wildfires have occurred annually since 2018.28 Among all the potential hazards wildfires pose the greatest threat to public safety and property. Weather conditions, fuel supply, and topography are all factors that contribute to the rate that a fire will spread. Hot dry weather reduces the moisture content of vegetation, causing it to burn more easily, and a dense concentration of fuel burns more rapidly. The California Fire Marshall places San Benito County into the “very high” Fire Hazard Safety Zone (This is the highest risk category possible). Elevated drought conditions in San Benito County increase the risk of more intense wildfires.
Earthquakes
San Benito County is in a high seismic area with the very active San Andreas Fault extending from the northern portion of the county near Aromas through the entire length of the county just east of San Juan Bautista. The very active San Andreas Fault system is capable of generating large destructive earthquakes. The probability of a major earthquake occurring in the near future is a factor with which to contend.
A major earthquake is likely to trigger other geological hazards including landslides, flooding that results in soil erosion and disposition, fire, hazardous-material incidents, and dam failure. It is likely that catastrophic interruptions and/or failure in communications, electrical power, water supply, wastewater treatment, natural gas and petroleum fuels will occur if a major earthquake hits. All of these hazards contribute to a considerable risk to the health and wellbeing of people in the county and the potential for extensive and expensive property damage.
Unanticipated Economic Events or Shocks
A new financial crisis, a national recession, or another unanticipated event could generate a man-made economic shock that affects San Benito County’s economy. It was not that long ago when the 2008 financial crisis had a significant negative impact on California’s economy and a new recession could inflict similar damage.
28 Data source: https://www.fire.ca.gov
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40 7.2 Ongoing Efforts to Plan for Natural or Man-Made Disasters or Shocks
San Benito County’s resiliency is centered on plans and actions that are in place to plan for adjust to the economic shocks caused by floods, droughts, another pandemic, a major earthquake and wildfires. In the near term the Cities of Hollister and San Juan Bautista and the County of San Benito Emergency Operations teams who are working with the San Benito County business community and residents should continue to conduct annual disaster preparedness events; National Shakeout Day provides an opportunity to conduct earthquake drills. The EDC should assist the cities and county in identifying resources to fund these preparedness events, the preparation development of recovery plans, and communications redundancies to the extent those funding opportunities exist. Below are five resiliency solutions that San Benito County could utilize during the duration of this five-year plan to mitigate future shocks caused by the manufactured events listed below.
Identify Potential Energy Solutions for San Benito County The adaptation projects listed below are intended to address the significant shortage of electrical power that has resulted from inadequate electrical power substations. The projects described below would make progress toward developing energy solutions.
Establish a Municipal Aggregation Program
A Municipal Aggregation Program allows local governments to procure power on behalf of their residents, businesses, and municipal accounts from an alternative supplier while still receiving transmission and distribution service from the existing utility provider.
Solar Farm Project
Prepare a feasibility and siting study for solar farms within San Benito County and support the development of new solar facilities to provide alternative sources of renewable energy.
Electric Power Advocacy
San Benito County’s economic development and community partners would establish a working partnership to advocate for local solutions to upgrading PG&E’s substation as a producer of new electrical power.
Energy Resiliency Initiative
Collaborate with the private sector to develop alternative energy supply for business, industry and agriculture;
Consider an expedited permitting process for small-scale alternative energy facilities; Assist businesses in applying for loans and grants to construct alternative energy supply and storage facilities to meet business expansion needs in San Benito County; Make all county facilities carbon free, zero waste and resilient. Design or retrofit county and city facilities to be carbon neutral and zero waste and incorporate resilient construction techniques and materials.
Invest in county, city and private sector facilities to establish micro-grid technologies that improve energy grid resilience;
Maximize sustainability and emissions reductions in all vehicles. Phase out county and city (owned or leased) gasoline powered cars, vans, and pickups to achieve a 30 percent zero-emission of vehicles by 2026; and,
Install electric vehicle charging stations throughout the region.
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41 Develop Resilient Water Infrastructure
Climate change will continue to impact agriculture and tourism and affect the livability of the region by making droughts more common and severe. The projects described below would make progress toward developing resilient water infrastructure.
Pacheco Reservoir Expansion Project
The project would establish a new dam and expanded reservoir on the North Fork of Pacheco Creek to replace the existing dam and reservoir that was constructed in 1939. The reservoir is located in Santa Clara County northeast of North San Benito Basin.
Expand Managed Aquifer Recharge (MAR)
Climate change and growth in water demand will both undermine the sustainability of groundwater conditions in the North San Benito Basin by increasing groundwater declines during dry periods. Increasing the amount of groundwater recharged during wet periods can offset the declines provided that the recharged groundwater remains in storage.
The Managed Aquifer Recharge study addresses the entire basin to evaluate potential locations, several methods of recharge, and several sources of water. The MAR study has demonstrated the conceptual feasibility of injection and/or recharge projects. Next steps are likely to include additional investigation of water quality issues, focusing on potential geochemical interactions between recharge water sources and native groundwater. Subsequent field work may include installation and testing of injection wells.
Hollister Urban Area Water and Wastewater Master Planning Project The Hollister Urban Area Water and Wastewater Master Planning Project has been the major means for regional cooperation and coordination of water, wastewater, and recycled water facilities for the urban areas in the North San Benito Basin. Planning is being conducted by San Benito County Water District (SBCWD), City of Hollister, and City of San Juan Bautista to convey wastewater to the City of Hollister Wastewater Treatment Plant. The planning addresses issues the City of San Juan Bautista currently has related to meeting drinking water standards for its potable water system and meeting waste discharge requirements for its wastewater discharges to a tributary of San Juan Creek.
North County Project
The North County Project will develop production well capacity in the North San Benito Basin to actively manage groundwater storage, to increase municipal water supply and drought year reliability, and to improve municipal water quality for the City of Hollister. The North County Project involves siting, design, and installation of new production wells. The long-term goal is to develop up to 5,000 acre-feet per year of local groundwater supply that is reliable during drought.
Implement Climate Resiliency
Climate change will significantly impact the resiliency of the regional economy. Many hazardous events (fire, drought, extreme temperatures and extreme storms) are worsened by climate change and consequently will continue to have large impacts on the region’s collective social, economic, and environmental well-being. By working to prevent and mitigate the impacts of climate change, the region can work together to avert the worst impacts of the climate emergency on the economy. Guided by science, and in concert with the state, national, and international communities, County of San Benito and partners can work towards mitigating and preventing climate change and engage in climate preparedness, adaptation and resiliency. The projects described below would make progress toward implementing climate resiliency.
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42 Climate Action and Mitigation Plan
Prepare a Climate Action and Mitigation Plan for San Benito County to comprehensively identify and address the increased risks associated with climate catastrophes related to wildfires, drought, extreme temperatures and extreme storms. The study should combine the effects of increased atmospheric carbon dioxide and increased temperature on crop water needs, to predict future water requirements. Maximize opportunities for mitigation of climate change and adaptation through land conservation and land use policies listed below:
Update General Plans to incorporate policy language to maximize carbon sequestration. Provide opportunities for adaptation that includes lands. San Benito County is in the process of preparing a Conservation Plan;
Cape and species resiliency, fire and flood risk reduction, and biodiversity. Maximize carbon sequestration and minimize loss of natural carbon sinks in agriculture and rangelands;
Encourage land management to maximize sequestration by developing a framework and policies to incentivize collaboration with private and public landowners; Initiate, support, fund and expand flood protection;
Develop partnerships with cities, tribal governments, and organizations regarding flood protection and sustainability to identify gaps and address climate change impacts; and, Implement land use planning and assessments to address flood protection, including river setbacks and riparian corridors, and make resources available for residents.
Implement Earthquake Resiliency
Earthquake risk reduction policies included in the Area Multi-Jurisdiction Local Hazard Mitigation Plan are listed below: 29
Replace Union Bridge with earthquake and flood resistant/proof construction; Retrofit water supply systems of San Benito County, City of Hollister, City of San Juan Bautista, San Benito County Water District and Sunnyslope Water District; Inventory county and city buildings that require seismic retrofit, and identify all critical facilities in the county and cities;
Perform upgrades to the Hollister Airport to allow it to receive larger aircraft for regional staging in case of widespread disaster or local disaster;
Assess San Felipe Dam failure scenarios in relation to the San Benito County region; and, Comply with state and federal requirements to assess the vulnerability of dams to damage from earthquakes, landslides, liquefaction, or security threats.
Implement Fire Resiliency
The following fire-resiliency projects were identified in the “Multi-Jurisdiction Local Hazard Mitigation Plan” for San Benito County:
Develop a defensible space vegetation program that includes the clearing or thinning of (a) non-fire resistive vegetation within thirty feet of access and evacuation roads and routes to critical facilities, or 29 https://www.cosb.us/home/showpublisheddocument/10834/638181251398570000 Draft Report_06/01/2023
43 (b) all non-native species (such as eucalyptus and pine, but not necessarily oaks) within 30 feet of access and evacuation roads and routes to critical facilities; Address the fire hazard area of Tres Pinos in terms of water delivery and fire risk mitigation; Encourage replacing aboveground electric and phone wires and other structures with underground facilities, and use the planning-approval process to ensure that all new phone and electrical utility lines are installed underground;
Require that development in high fire hazard areas provide adequate access roads (with width and vertical clearance that meet the minimum standards of the fire code or relevant local ordinance), onsite fire protection systems, evacuation signage, and fire breaks; and Ensure adequate fire equipment and road access to areas at risk of fire.
Reduce Flood Risks & Impacts
The Multi-Jurisdiction Local Hazard Mitigation Plan identified approximately 1,360 properties in San Benito County that have greater than a 26 percent chance of being severely affected by flooding over the next 30 years. This represents 9 percent of all properties in San Benito County. The following projects were identified in the Mitigation Plan:
Identify ingress and egress routes for flooding for the City of Hollister, the City of San Juan Bautista and for areas affected in San Benito County overall;
Assess San Felipe Dam failure scenarios in relation to the San Benito County region. Assess the Pajaro River Flood Plain and its risk to San Benito County areas; Work for better cooperation among the patchwork of agencies managing flood control issues; Develop “safe site” Plan; and.
Continue to employ development practices that minimize fire and flood risk to structures and communities. These include locating structures and communities away from the wild lands interface and preserving natural lands that act as buffers between development and wild lands.
San Benito County CEDS – Appendix A A- 1 | Page
APPENDIX A
SAN BENITO COUNTY ONGOING ECONOMIC DEVELOPMENT INITIATIVES Countywide or Unincorporated San Benito County Initiatives Initiatives Description of Initiative Economic and Employment Impacts Approximate Cost and Funding Source Status of Initiative Urgent Ongoing Initiatives Retain Hospital Facilities in San Benito County The current hospital in San Benito County is a vital facility that delivers health care services to the region’s residents. However, the hospital’s financial problems may force the facility to close during 2023. It is critical to attract an alternative provider of health services to reuse the hospital facilities.
Closure of the hospital will eliminate 578 staff jobs and 136 physician jobs. It will cost significant indirect and induced job loss, income, business revenue and spending. It will be more difficult for residents and businesses to access health care services, making San Benito County less desirable to live and work.
The costs of maintaining, improving or adaptively reusing the existing hospital facilities are unknown.
No organized effort is in place to retain and reuse the hospital facilities. However, regional stakeholders are actively engaged in discussions with hospital management in attempts to find a new health care provider or a partner for the current hospital.
Generate New Electrical Power Needed to Support Additional Business Activities The Hollister substation that serves most of San Benito County can no longer deliver electrical power to new (and some expanding) commercial businesses. This means that the substation must be expanded or alternative sources of renewable energy must be added to the grid in order to support commercial growth.
The lack of sufficient electrical power capacity will shut down most of San Benito County for new business growth, which could seriously damage the local economy.
Costs and sources of funding needed to expand power are unknown. The City of Hollister and San Benito County could collaborate to establish an Enhanced Infrastructure Finance District (EIFD) designed to fund improvements.
Potential solutions may require assistance from State Legislatures. Renewable energy options to increase the electrical power supply have yet to be identified.
Develop a New College Campus
A 70-acre site at Fairview Corner was purchased to develop a new community college campus ($60 million was secured by the passage of a bond measure in 2018). The new campus will include a 35k square foot building to be used for classrooms, labs, and a community meeting space, along with 150 parking spaces.
A community college will create jobs and the new campus will provide critical educational facilities and services needed to make San Benito County a more attractive place to live and work.
The entire $60 million will be needed to complete the main campus building, which includes offsite roadway and site access improvements along with wastewater treatment and an extension of water and power to the site. Additional funding will be needed for site build out.
Construction is expected to start once the State architect approves the project. The development will include an onsite septic system, until the new development can connect to the Hollister wastewater treatment plant. Two new neighboring subdivisions will expand the demand for nearby commercial services.
San Benito County CEDS – Appendix A A- 2 | Page
Initiatives That May Take 1-3 Years to Implement Expand the Youth Empowerment HUB (YEHUB) The existing Youth Empowerment HUB located in Downtown Hollister wants to expand their 9k sf of space to provide more thorough and in-depth services to young people from low-income and immigrant households, many of whom are at risk of being left out of the workforce. Expansion of the YEHUB will require the non-profit organization that manages the facility to renovate the current facility or relocate.
Assisting low-income immigrant youth to complete high school, apply for community college, engage in trade skills training and/or start their own business generates long-term economic development benefits. The YEHUB also improves family and community stability, reduces the potential for long-term social problems such as homelessness and prepares young people to be more ready to enter the workforce.
Renovating the current space could be accomplished for less than $50,000. A new building is likely to cost about $3 million.
The YEHUB is a successful entity that serves a very important segment of San Benito County’s population. However, no funding has been secured to expand the facility.
Implement the Proposed Automotive Research and Testing Facilities at Hwy. 156 and San Felipe Private investors proposed to develop a 230-acre site for auto technology research. The proposed initiative features 2.5 miles of track to be used for motor vehicle testing. The proposed development also includes 100 high- end commercial garage spaces that is hoped to attract car collectors, mechanics as well as individuals and businesses engaged in motor vehicle research. The development may include a public events center, a trade school, and other auto tech businesses. A 25-acre section of the site located apart from the experimental tracks would be developed for a truck stop, a restaurant, a convenience market and a hotel.
The Hollister Airport is already attracting experimental aircraft, and if successful, the proposed initiative may transform Hollister and San Benito County into an automobile research and testing destination. This could have a significant impact on Hollister’s image.
The project developer anticipates that the proposed initiative will require a $130 million private investment. No public funding will be necessary.
The site is located in the unincorporated County outside of the Hollister “Sphere of Influence.” LAFCO will need to approve annexation into the city. San Benito County and the City of Hollister will also need to approve the project.
San Benito County CEDS – Appendix A A- 3 | Page
Initiatives That May Take 1-3 Years to Implement (Continued) Implement the Proposed Commercial Center Within the Santana Ranch Subdivision A new commercial center is proposed to be developed on 10-acres of undeveloped land. The site is located within a 300-acre subdivision just east of the city of Hollister in unincorporated San Benito County. The County has approved the eventual development of 1,100 homes, most of which are single-family homes but there will also be a mix of multifamily and affordable units. The larger development also includes the Santana Ranch Middle School.
A new commercial center would keep shoppers local and reduce some traffic that travels out of county to shop. New commercial uses would create jobs and generate sales and property tax revenues needed to pay for public services.
The proposed commercial center is estimated to need $30 million of private investment. A portion of the funding has been secured.
A conceptual design of the site has been prepared but no decisions have been made on building configuration or specific uses for the site.
Implement the Commercial Development Project at Hwy. 101 and Betabel Road This development project proposes to be a “1950s vintage road-side experience” located on the west side of Hwy 101 that will include: A convenience store and gas station with bathroom facilities; a drive-up restaurant featuring locally sourced foods and ice cream; a Visitor’s Center kiosk with information on the area, Native American heritage, agricultural roots, movie locations, and recreational opportunities. A large mercantile barn will offer local crafts, produce, wine, and other local products.
Development of this site will clean up a former junkyard. The proposed commercial uses will create 75 to 100 fulltime jobs and generate new tax revenue for San Benito County.
Total build-out costs are unknown, but the proposed project will be privately funded without public subsidies.
The proposed project use permit and EIR was recently finalized and approved by San Benito County. However, two lawsuits were filed seeking to reverse the project approvals. County staff believe that possible litigation will be resolved prior to the fall of 2023 at the latest.
San Benito County CEDS – Appendix A A- 4 | Page
Long-Term Initiatives Improve Internet Access for All Businesses and Residents One of the important long-term economic development initiatives is to build fiber optic infrastructure to deliver high-speed Internet service to nearly all San Benito County residents and businesses. The goal is to serve the county’s rural areas and small communities, not just the two cities, which already have decent Internet connections.
Good internet access is necessary for San Benito County to be a viable business location, and it is necessary to attract more remote workers and to improve the quality of life among existing residents.
A multi-million-dollar investment is needed to build a fiber optic network connecting Hollister with San Juan Bautista and the County’s rural areas. Partial funding may be available from the State of California, which allocated $6 billion to fund internet access to rural areas. Additional funding may be available from the Monterey Bay Economic Partnership, which secured a $1 million CPUC grant to expand broadband in Monterey, Santa Cruz, and San Benito Counties to be disbursed over five years.
At least one private internet provider is interested in investing in fiber optic infrastructure that connects Hollister with San Juan Bautista and the rural areas between the two cities. The Rural County Representatives of California is administering a grant and will select a consultant to prepare a Broadband Strategic Plan for San Benito County.
Establish a Countywide Tourism Initiative
A countywide tourism initiative managed by a single organization is needed to capitalize on San Benito County’s two significant visitor attraction sites—the San Juan Bautista Historical District and Pinnacles National Park. An effective regional tourism initiative could also connect the main attractions with other potential tourism assets such as hiking, farmers markets, and winery and agricultural tours, which are underpromoted or not promoted at all.
More tourism will generate additional incomes, tax revenue, and new jobs without a significant strain on the demand for housing and public services.
Effective regional visitor promotion may cost $300,000 to $500,000 per year. The funding may be used for a visitor information center, the management of websites, data collection and reporting, assistance with special events, participation in state and regional tourism initiatives, coordination with the Pinnacles National Park, and the initiation of new tourism initiatives.
San Benito County’s tourismpromotion efforts are disconnected from tourism promotion initiated by San Juan Bautista and Downtown Hollister’s special events and farmers markets. San Benito County funded a Wine Heritage District Feasibility Study to determine the feasibility of establishing a Tourism Improvement District. This initiative has stalled causing visitor-serving businesses to be discouraged.
San Benito County CEDS – Appendix A A- 5 | Page
Long-Term Initiatives (Continued) Develop the Proposed Autonomous Vehicle Innovation Park The Autonomous Vehicle Innovation Park is proposed to be a research and development facility to test autonomous vehicle technologies. The proposed project will include 1,077-acre of technology testing grounds, a 127-acre research park, a 253-acre area reserved for E-Commerce facilities, a 24-acre commercial site and 227 acres of agriculture Proponents state that the proposed project will create more than 18,000 construction jobs and 5,000 permanent direct jobs for a variety of professions ranging from automotive engineers and software developers to truck drivers and cashiers. At full buildout, the permanent jobs would generate $660 million in annual payroll.
Project costs and the potential need for public funding are unknown.
Project investors have established a showroom space in Hollister where the general public can learn more about the proposed project. A Draft EIR was in the works but in March 2023 the project developer asked the county to pause its work on the project’s application, which has placed the EIR workplan on hold with no projected date for when it might resume.
Expand Outdoor Recreation
Build additional recreational areas for runners, bikers, and walkers that will provide health benefits to residents and attract more visitors to the area. New funding will be needed along with improved promotion that encourages residents to hike, get outdoors, and explore the area, which will also help attract other outdoor enthusiasts.
A regional effort to expand outdoor recreation will improve the quality of life and make San Benito County a more desirable place to live and work.
In an effort to fund more outdoor recreation, the County received a $2.4 million grant from the State to build a regional park on 70 acres of undeveloped land located along River Parkway. The parking lot construction will cost about $1.1 million, mostly funded by last year’s $750,000 allocation from the State budget. It’s unclear if additional funding will be needed to complete construction. Funding for amenities such as exercise stations, cross country courses, playgrounds, etc. may be available through a State grant.
The park will be built in 3 phases starting in the fall 2023 with a 93-space parking lot. The San Benito Land Trust and its partners plan to identify private lands that can support additional trails and determine the feasibility of using trail easements on private property. Design has been completed with a state grant that funded efforts to meet with interested landowners. The City of San Juan Bautista promotes use of nearby recreational trails. The Pinnacles Gateway Partners is an ongoing effort by citizens and the County Chamber of Commerce to spread the benefits of tourism surrounding the National Park.
San Benito County CEDS – Appendix A A- 6 | Page
City of
Hollister
Initiatives
Initiative Description Economic and Employment Impacts Approximate Cost and Funding Source Status of Initiative Ongoing Initiatives Revitalize Downtown Hollister
The revitalization of downtown Hollister is a partnership between the City of Hollister, the Hollister Downtown Association (HDA) and the local business community. The ongoing effort includes numerous physical, streetscape and circulation improvements along with weekly special events that are run by the HDA.
The downtown revitalization effort should attract new investment into vacant and underutilized commercial spaces, which will expand commercial activity, create new jobs and generate additional taxable sales for the city. The 2023 special events are anticipated to attract more than 65,000 people.
The costs of ongoing streetscape and physical improvements are unknown.
The revitalization of downtown Hollister is an ongoing and dynamic process that is constantly changing and attempting to improve, but limited by scarce fiscal resources. Recent accomplishments include year around tree lighting, the establishment of a one-way street, the construction of parklets during COVID, an archway as a downtown entryway and the funding of the downtown association.
Long-Term Initiatives Attract Investors and Developers to Build New Hangers at the Hollister Municipal Airport The City of Hollister wants to attract private investors to construct new hangers at the Airport and attract business tenants that can benefit from direct access to the runway.
New hangars will make the Airport more attractive to aviation related users that can benefit from direct access to the runways. Build-out of the Airport area will add to the City’s job base.
Costs of adding new hangers are unknown at this time. New investments would most likely be privately funded.
The City of Hollister owns and manages the airport but lacks the funding to make improvements.
Develop open space taxiways to Allow Businesses Access to the runways New taxiways will allow new businesses growth by attracting firms that can take advantage of the direct access to a runway.
Additional taxiways will provide more firms with direct access to the runways, which will transform the Hollister Airport into a more effective economic development asset.
The cost of securing the rights of way and constructing the taxiways is unknown. The initiative will may require public funding.
Initiative is conceptual and an infrastructure plan is needed in advance of developing the taxiways. The City of Hollister intends to apply for an EDA Grant in support of this effort..
San Benito County CEDS – Appendix A A- 7 | Page
City of San
Juan
Bautista
Initiatives
Description of Initiative Economic and Employment Impacts Approximate Cost and Funding Source Status of Initiative Urgent Ongoing Initiatives Wastewater Treatment Services Compliance Project The City of San Juan Bautista is in the process of installing a six-mile wastewater force main that connects to the Hollister Regional Wastewater Treatment Plant. The initiative will place San Juan Bautista in sewer discharge compliance with EPA’s wastewater discharge standards. Once connected, San Juan Bautista’s existing treatment system will be decommissioned.
Connecting San Juan Bautista’s wastewater to the Hollister Regional Wastewater Treatment Plant will allow for the expansion of new residential and business connections, which will generate economic growth and new job creation.
Installing a six-mile force main to connect the Hollister Treatment Plant is estimated to cost $18 million. The San Juan Bautista’s City Council unanimously approved a $14.6 million bond for the wastewater project. The bond secured two loans totaling $10.2 million, along with a $4.3 million Department of Agriculture grant.
The City of San Juan Bautista has accumulated more than $800,000 in fines from the California State Water Resources Control Board for discharging high levels of sodium chloride and bacterial pollutants into the Pajaro River. The City has until December 2023 to become compliant with the EPA. The City has approved the new wastewater treatment plan and approved the EIR studies. The City is currently negotiating with the San Benito County Water District.
Develop A New Source of Clean Drinking Water for the City of San Juan Bautista The City of San Juan Bautista, the San Benito County Water District, and the West Hills Water Treatment Plant have formed a partnership to construct five miles of pipeline to transport new clean water needed to lower nitrate levels used by San Juan Bautista residents and businesses. The new clean water source allows the City of San Juan Bautista to comply with EPA standards.
New clean water will also allow the City to permit more breweries and restaurants, which will attract visitor spending, create jobs, and contribute to the tax base.
Cost estimates for the pipeline range between $12 and $15 million. Seventy-five percent of the project costs will be funded by a low-interest loan from the USDA. The remainder will be funded by rate payers.
The initiative is in the advance stages of planning and engineering will proceed soon. Funding has been secured.
San Benito County CEDS – Appendix A A- 8 | Page
Long Term InitiativesDevelop the City of San Juan Bautista Multi Modal Transportation Project This context-sensitive, rural scale, transportation center will result in enhanced transit patronage and enable transportation services such as carpool, ride share, van pool and other alternative transportation services for those who walk, bicycle or drive to the Multi-Modal Center for travel to/from any destination from Gilroy to Hollister. The project includes:
• A 7-mile shared
pedestrian/bicycle path,
• A Multi-Modal Center, • Visitor center, and • A gateway.
The Multi-Modal Center will serve multiple civic purposes, accommodating various public and non-profit organizations such as the Chamber, the “Main Street” manager, State Parks office, a City Hall annex, City/School joint use facilities and other local non-profit organization offices. A mix of proximate amenities and uses would facilitate the free flow of visitors and residents to ensure the economic vitality of the City.
The cost to develop the conceptual plan is $350,000. The cost to build the final project, while unknown at this time, is estimated at between $15 and $20 million.
The City of San Juan Batista has submitted a State Department of Transportation (CAL TRANS) Sustainable Transportation Planning Grant application for $350,000 to fund the planning and 30% conceptual design for this project. Upon completion of the Conceptual Plan the City will pursue additional funding.
San Benito County CEDS Appendix B B-1 | Page
APPENDIX B
SOCIOECONOMIC TREND DATA
2015 - 2019 2019 - 2022 2015 - 2019 2019 - 2022
California 38,865,500 39,740,500 39,185,600 875,000 -554,900 0.6% -0.5% San Benito County 58,140 61,440 65,480 3,300 4,040 1.4% 2.1% City of Hollister 37,320 39,970 42,550 2,650 2,580 1.7% 2.1% City of San Juan Bautista 1,950 2,120 2,090 170 -30 2.1% -0.5% Santa Clara County 1,911,670 1,944,730 1,894,780 33,060 -49,950 0.4% -0.9% City of Gilroy 54,230 56,640 59,270 2,410 2,630 1.1% 1.5% Monterey County 430,280 440,200 433,720 9,920 -6,480 0.6% -0.5% Table 1
Population Growth Annual Growth Rate Geographic Area 2015 2019 2022 Note: Red numbers connotate negative values
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: Caifornia Department of Finance
Population Growth Trends in San Benito County, the Region and California: 2015 - 2022 Population
Increase
Annual
Growth Rate
Population
Increase
Annual
Growth Rate
2015 2019 2022 2015 - 2019 2019 - 2022 2015 - 2019 2019 - 2022 San Benito County 58,140 61,440 65,480 3,300 1.4% 4,040 1.6% 1,650 1,080 2,410 1,200 Santa Clara County 1,911,670 1,944,730 1,894,780 33,060 0.4% -49,950 -0.6% 48,080 25,050 -26,010 -70,680 Monterey County 430,280 440,200 433,720 9,920 0.6% -6,480 -0.4% 13,630 8,170 -6,230 -12,700 California 38,865,500 39,740,500 39,185,600 875,000 0.6% -554,900 -0.4% 820,760 338,750 -204,700 -710,690 2015 - 2019 2019 - 2022
Population Growth Factors in San Benito County, Three County Region and California: 2015 - 2022 (Births, Deaths and Migration) Table 2
Notes: Red numbers connotate negative values
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: Caifornia Department of Finance
Population Change
Components
Total Population Net Migration
Net Natural Increase
(Births over Deaths)
San Benito County CEDS Appendix B B-2 | Page
San Benito County 2015 2019 Growth
2015 - 2019
% Increase
2015 - 2019
2022 % Total
2022
Growth
2019 - 2022
% Increase
2019 - 2022
Total Population 58,140 61,440 3,300 5.7% 65,480 4,040 6.6% Hispanic or Latino 33,660 36,860 3,200 9.5% 39,380 60.1% 2,520 6.8% Not Hispanic or Latino
Caucasian 21,320 21,160 -160 -0.8% 21,880 33.4% 720 3.4% African American 410 460 50 12.2% 510 0.8% 50 10.9%
American Indian, Hawaiian,
or Pacific Islander 250 230 -20 -8.0% 250 0.4% 20 8.7%
Asian 1,460 1,790 330 22.6% 1,670 2.6% -120 -6.7%
Two or more races 1,050 940 -110 -10.5% 1,790 2.7% 850 90.4% Three-County Region 2015 2019 Growth
2015 - 2019
% Increase
2015 - 2019
2022 % Total
2022
Growth
2019 - 2022
% Increase
2019 - 2022
Total Population 2,400,090 2,446,370 46,280 1.9% 2,393,980 -52,390 -2.1% Hispanic or Latino 789,390 789,750 360 0.0% 766,580 32.0% -23,170 -2.9% Not Hispanic or Latino
Caucasian 798,740 766,340 -32,400 -4.1% 730,170 30.5% -36,170 -4.7% African American 57,470 57,030 -440 -0.8% 55,280 2.3% -1,750 -3.1% American Indian, Hawaiian,
or Pacific Islander 13,430 12,690 -740 -5.5% 12,200 0.5% -490 -3.9% Asian 665,440 731,810 66,370 10.0% 738,310 30.8% 6,500 0.9% Two or more races 75,610 88,760 13,150 17.4% 91,440 3.8% 2,680 3.0% California 2015 2019 Growth
2015 - 2019
% Increase
2015 - 2019
2022 % Total
2022
Growth
2019 - 2022
% Increase
2019 - 2022
Total Population 38,865,500 39,740,500 875,000 2.3% 39,185,600 -554,900 -1.4% Hispanic or Latino 14,726,400 15,616,980 890,580 6.0% 15,366,700 39.2% -250,280 -1.6% Not Hispanic or Latino
Caucasian 14,576,870 14,462,740 -114,130 -0.8% 14,351,860 36.6% -110,880 -0.8% African American 2,904,240 2,227,370 -676,870 -23.3% 2,140,390 5.5% -86,980 -3.9% American Indian, Hawaiian,
or Pacific Islander 301,250 431,080 129,830 43.1% 267,000 0.7% -164,080 -38.1% Asian 5,342,320 5,884,900 542,580 10.2% 5,738,670 14.6% -146,230 -2.5% Two or more races 1,014,430 1,117,420 102,990 10.2% 1,320,980 3.4% 203,560 18.2% Ethnic Characteristics in San Benito County, Three-County Region and California: 2015 - 2022 Table 3
Red numbers connotate negative values
Notes: 2022 Ethnicity data are estimates
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: U.S. Census Community Survey and Headwaters Economics San Benito County CEDS Appendix B B-3 | Page
2022 % Total 2022 % Total 2022 % Total
Total Population 65,480 2,393,980 39,185,600
Population 25+ years 42,510 1,640,100 26,556,400
Not High School Graduate 7,680 18.1% 230,440 14.1% 4,269,100 16.1% HS Graduate - No College Degree 17,460 41.1% 499,940 30.5% 10,953,100 41.2% Associates Degree 4,160 9.8% 116,080 7.1% 2,115,200 8.0% Bachelors Degree - no Advanced Degree 10,880 25.6% 423,810 25.8% 5,741,300 21.6% Graduate or Professional Degree 2,320 5.5% 369,860 22.6% 3,477,800 13.1% Educational Attainment in San Benito County, Region and California Among Adults Age 25 and Older 2022
Table 4
Educational Attainment Characteristics
2022 Educational Attainment data are estimates.
Note: Three-County Region includes the Counties of San Benito, Monterey and Santa Clara Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Source: U.S. Census American Community Survey and Headwaters Economics San Benito County Three County Region California
San Benito
County
Santa Clara
County
Monterey
County California
Population 65,480 1,894,780 433,720 39,185,600
Households 19,350 629,805 128,815 118,019,500
Median Household Income $85,810 $130,890 $76,940 $78,700 % Households with Incomes < $50,000 25.6% 19.2% 31.3% 32.6% % Households with Incomes > $50K but < $100K 31.3% 19.5% 32.2% 27.7% % Households with Incomes > $100K but < $150K 21.4% 17.5% 17.1% 17.1% % Households with Incomes > $150,000 21.6% 43.8% 19.4% 22.6% Data Sources: U.S. Census American Community Service, Headwaters Economics and California Department of Finance Analysis: Wahlstrom & Associates and Marie Jones Consulting Table 5
Median Household Income and Income Distribution in San Benito County, The Surrounding Region and California 2022
Per Capita Income 2015 2018 2021
Real Income
Change
2015 - 2018
Real Income
Change
2018 - 2021
Real Income
Change
2015 - 2021
Annual Rate
of Income
Change:
2015 - 2018
Annual Rate
of Income
Change:
2018 - 2020
Annual Rate
of Income
Change:
2015 - 2020
San Benito County $48,070 $52,580 $68,870 $4,510 $16,290 $20,800 3.0% 9.4% 6.2% Santa Clara County $91,150 $112,360 $138,720 $21,210 $26,360 $47,570 7.2% 7.3% 7.2% Monterey County $54,890 $55,610 $63,450 $720 $7,840 $8,560 0.4% 4.5% 2.4% California $59,190 $63,950 $76,610 $4,760 $12,660 $17,420 2.6% 6.2% 4.4% Per-Capita Income Trends in San Benito County, the Surrounding Region and California:
2015 - 2021 (Adjusted for Inflation)
Table 6
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: U.S. Bureau of Economic Analysis and California Department of Finance San Benito County CEDS Appendix B B-4 | Page
California 39,185,600 4,928,360 12.6%
San Benito County 65,480 6,120 9.3%
Santa Clara County 1,894,780 135,860 7.2%
Monterey County 433,720 52,200 12.0%
Three- County Region 2,393,980 194,120 8.1%
Note: Three-County region includes the Counties of San Benito, Santa Clara and Monterey Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: Headwaters Economics and California Department of Finance Table 7
Poverty Rates Trends in San Benito County,
Three-County Region and California 2022
2021 Population Persons Below
Poverty
% Households
Below Poverty
Percent of
Households
Number of
Households
Home Owners 31% 4,359
Renters 42% 2,565
All Households 34% 6,924
Households Burdened by Housing Costs in San
Benito County, 2021
Table 8
Analysis: Wahlstrom & Associates and Marie Jones Consulting Source: US Census, 2021
San Benito County CEDS Appendix B B-5 | Page
Employment % Total Employment % Total Employment % Total Goods Producing
Agricultural, Forestry & Fishing 1,945 11% 59,800 5% 411,420 2% Mining 180 1% 400 0% 16,620 0%
Construction 1,575 9% 57,910 5% 883,330 5%
Manufacturing 3,045 17% 174,170 14% 1,277,555 8%
Service Providing
Utilities 40 0% 2,160 0% 59,485 0%
Wholesale Trade, warehousing & storage 345 2% 33,890 3% 877,235 5% Retail Trade 1,370 8% 90,670 7% 1,600,475 9%
Transportation 780 4% 17,380 1% 489,200 3%
Information 40 0% 105,640 8% 560,370 3%
Financial & Insurance 200 1% 25,180 2% 539,445 3%
Real Estate Rental & Leasing 160 1% 16,830 1% 289,065 2% Professional & Technical Services 260 2% 167,780 13% 1,352,597 8% Management & Administrative Services 1,030 6% 82,860 6% 1,306,900 8% Waste Management 75 0% 3,310 0% 53,380 0%
Private Education 60 0% 379,670 3% 313,575 2%
Health Services 1,245 7% 149,035 12% 2,419,550 14%
Arts, Entertainment & Recreation 125 1% 13,500 1% 239,145 1% Lodging 110 1% 11,150 1% 155,460 1%
Food Services 1,370 8% 74,675 6% 1,247,605 7%
Other Services 475 3% 26,880 2% 482,900 3%
Government
Federal Government 115 1% 15,950 1% 251,770 1%
State Government 85 0% 11,865 1% 480,100 3%
Local Government
Public Education 1,240 7% 58,525 5% 852,045 5%
Public Administration 840 5% 28,335 2% 493,075 3%
Other Local Government 735 4% 10,610 1% 322,570 2%
Total Employment 17,450 1,276,470 16,974,870
Note: Three County Region includes the Counties of San Benito, Santa Clara and Monterey Employment by Industry in San Benito County, Three-County Region and California 2021 Table 9
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: U.S. Bureau of Labor Statistics and Data Axel San Benito County Thre- County Region California
San Benito County CEDS Appendix B B-6 | Page
Employment Base 2015 2019 2021
San Benito County 15,890 17,360 16,970
Goods Producing Industries 5,050 7,140 6,590
Service Industries 8,080 7,175 7,360
Public Schools & Public Health 1,900 2,010 1,940
Other Federal, State & Local Government 850 1,030 1,080 Three-County Region 1,217,780 1,335,160 1,276,470
Goods Producing Industries 272,980 297,430 292,300
Service Industries 825,110 908,060 858,885
Public Schools & Public Health 58,420 62,660 59,220
Other Federal, State & Local Government 61,260 67,010 66,060 California 16,295,200 17,631,490 16,974,870
Goods Producing Industries 2,458,065 2,651,700 2,588,920 Service Industries 11,458,440 12,475,870 11,986,380
Public Schools & Public Health 992,020 1,050,410 967,475 Other Federal, State & Local Government 1,386,680 1,453,500 1,432,090 Job Gains or Losses Job Growth
2015 - 2019
Job Growth
2019 - 2021
Job Growth
2015 - 2021
San Benito County 1,470 -385 1,080
Goods Producing Industries 2,090 -550 1,540
Service Industries -910 180 -720
Public Schools & Public Health 100 -70 40
Other Federal, State & Local Government 180 50 230
Three-County Region 117,380 -58,690 58,690
Goods Producing Industries 24,440 -5,120 19,320
Service Industries 82,950 -49,180 33,770
Public Schools & Public Health 4,240 -3,440 800
Other Federal, State & Local Government 5,745 -950 4,800 California 1,336,285 -6,566,220 679,670
Goods Producing Industries 193,640 -62,780 130,860
Service Industries 1,017,440 -489,490 527,950
Public Schools & Public Health 58,385 -82,930 -24,550
Other Federal, State & Local Government 66,820 -21,415 45,410 Annual Growth Rates 2015 - 2019 2019 - 2021 2015 - 2021 San Benito County 2.2% -1.1% 1.1%
Goods Producing Industries 9.0% -3.9% 4.5%
Service Industries -2.9% 1.3% -1.6%
Three-County Region 2.3% -2.2% 0.8%
Goods Producing Industries 2.2% -0.9% 1.1%
Service Industries 2.4% -2.7% 0.7%
California 2.0% -1.9% 0.7%
Goods Producing Industries 1.9% -1.2% 0.9%
Service Industries 2.1% -2.0% 0.8%
Job Growth Trends in San Benito County, the Three-County Region and California overall: 2015 - 2021
Table 10
Analysis: Wahlstrom & Associates and Marie Jones Consulting Data Sources: U.S. Bureau of Labor Statistics
San Benito County CEDS - Appendix C C-1 | Page
APPENDIX C
STAKEHOLDER INTERVIEWS COMPLETED
Leslie Jordan, City of San Juan Bautista
Don Reynolds, City of San Juan Bautista
Brian Foucht, City of San Juan Bautista
Brett Miller, City of Hollister
Ken Lindsay, Airport Associates Owner
Stephanie Correia, San Juan Bautista Economic
Development Citizens Advisory Committee
Aaron Johnson, EDC of San Benito County
Renee Wells, EDC of San Benito County
David Mirrione, City of Hollister
Steve Loupe, San Benito County Resource
Management Agency
Kristina Chavez Wyatt, San Benito County
Business Council
Jeana Arnold, PG&E
Victor Gomez, Pinnacles Strategy
Ryder McDowell, Betabel Commercial
Development
Barbara Hayes, Rural California Representatives
of California
Damon Felice, Felice Consulting
James Hankins, Hankins Information Technology
Nathaniel Aguire, PG&E
Abraham Prado, San Benito County Resource
Management Agency
Omar Rosa, Hollister Downtown Association
Angela Curro, San Benito County Board of
Supervisors
Enrique Arreola, Workforce Development Board
Paul Rovella, JRG Attorneys at Law
John Freeman, City of San Juan Bautista
Lynn Overtree, San Benito Agricultural Land
Trust
Michelle Leonard, San Benito County Chamber
of Commerce
Jose Martinez Saldana, Youth Alliance
Diane Ortiz, Youth Alliance
David Huboi, Huboi Architecture
Michael Anderson, Anderson Homes
Eryka Temores, Anderson Homes
Anne Hall, Performance Art Theater
STAKEHOLDER SURVEYS COMPLETED
Paul Rovella – JRG Attorneys at Law
Brenda Weatherly – Community Foundation for
San Benito County
Mary Hubbell – Business Owner in Tres Pinos
Stephen Gunstream – Alpha Teknova in
Hollister
Eryka Temores – Anderson Homes in Hollister
Nikki Rhodabarger – Ridgemark Golf Club
Darlene Boyd – San Juan Bautista Economic
Development Citizens Advisory Committee
John Freeman – Mayor Pro Tem City of San Juan
Bautista
Rhonda Io - Inaka Japanese Restaurant in
Hollister
Linda Ginn - Vintage Rose Antiques &
Collectibles in Salinas
Rachael Reed – Graniterock Environmental
Department
1 Wahlstrom & Associates / Marie Jones Consulting
SAN BENITO COUNTY
COMPREHENSIVE ECONOMIC
DEVELOPMENT STRATEGY
(CEDS) UPDATE
2023-2027
June 30,2023
Wahlstrom & Associates / Marie Jones Consulting
AGENDA
1. Welcome
2. Brief Overview of CEDS Purpose
3. Overview of Key Findings
1. The CEDS Vision –Vision Check-In
2. Economic Analysis – Disentangling Myths from Reality
4. Discussion of Economic Development Projects 2023-2027
5. Feedback & Input
6. Conclusion and Next Steps
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PURPOSE: THE CEDS BRINGS TOGETHER PEOPLE & TALENT
Business Community
Communities
& Non-Profits
Local & County
Government
Economic Development
Administration
San Benito
County CEDS
Strategy
Committee
Wahlstrom & Associates / Marie Jones Consulting
PURPOSE: A CURRENT CEDS FACILITATES ACCESS TO RESOURCES
THE CEDS PRIORITIZES LOCAL PROJECTS FOR FEDERAL FUNDS
• Local Communities
• Local & County
Government
• Local Businesses
• American Rescue Plan
• Inflation Reduction Act
• Infrastructure Bill
• Planning & Technical Assistance
• Future Appropriations
CEDS
Grants &
Loans
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CEDS PROCESS & CONTENT
1. Identify Strengths, Weaknesses, Opportunities, & Threats (SWOT Analysis)
2. Develop Economic Analysis
3. Develop Vision Statement
4. Identify & Describe Community Projects via Survey & Interviews
5. Develop EDC Strategies
6. Develop Resiliency Strategy
7. Prepare Draft CEDS
8. Obtain Community Review & Feedback
9. Prepare Final CEDS & Submit to the EDA (for Approval) & the County Board of Supervisors (for Adoption)
Wahlstrom & Associates / Marie Jones Consulting
STRENGTHS, WEAKNESSES (SWOT)
STRENGTHS
Strategic location
Hollister Airport
Strong local employers
Good workforce
Great climate
Great soils
Visitor attractions
Access to large skilled regional
workforce
Lots of developable land
Lower housing costs than
neighboring Santa Clara County
WEAKNESSES
Wastewater treatment
Lack of adequate electrical power delivered by the
Hollister PG&E substation
Highways 152, 25, and 156 are highly congested
Hiring challenges for all businesses
Lack of access to higher-education institutions
Broadband services are inconsistent/unavailable
Shortage of arts and entertainment activities
Many outdoor recreation facilities lack amenities
High housing costs
Inconsistent access to quality, affordable childcare
Rural areas lack access to commercial services,
transportation, jobs, and business services
Public schools have a sometime undeserved, negative
reputation
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OPPORTUNITIES, & THREATS (SWOT)
OPPORTUNITIES
Expand solar-power facilities
Innovate a solution to expanding electrical power
throughout San Benito County
Assist existing businesses to expand
Sufficient demand to expand the supply of all housing types and new affordable housing units
Attract new higher-density, smart-growth developments Leverage the arts as an economic development initiative. Continue to expand all transportation modes (roads, bike lanes, walkways, etc.)
Prepare residents for the digitalization of nearly every business
Connect youth to the workforce
Continue to leverage local, State, and Federal fu
Establish a community college campus and expand
workforce training opportunities
Reimagine downtown Hollister and San Juan Bautista as higher-density communities
THREATS
Lack of new electrical power at the Hollister substation threatens to the expansion of existing business and new business attraction
More frequent droughts, flooding, wildfires and other severe weather events associated with climate change
Nearby earthquake faults and an actual earthquake
Inadequate funding to maintain and improve the existing water, sewer, flood control, storm drains, and roadway
systems
Changing consumer and worker behavior during the
COVID-19 pandemic threatened the economic viability of
each downtown district
Potential closure of Hazel Hawkins Hospital
Ongoing tension between pro-development and
community groups dedicated to preserving the existing
landscape
Collaboration between San Benito County and the two
cities is sometimes inconsistent
Some segments of residents are not involved in
community and civic life
Wahlstrom & Associates / Marie Jones Consulting
VISION
Key words:
Collaborative, connected
Sustaining, resilient
Innovative, potential, thrive
Ag tourism, Eco tourism, history,
legacy, generational
Inclusive, diversity, indigenous
Work local, living wages, workforce
development, “cradle to career”
Affordable, infill, fast permitting,
walkable, live-work-play
Preservation, urban open space
Recognized
We work collaboratively to build our
sustainable and resilient economy to
foster innovation and inclusively support
working locally with living wages
VISION
STATEMENT
We will increase prosperity for all by
working to ensure that we:
DEVELOP AFFORDABLE, THRIVING, WALKABLE
LIVE-WORK-PLAY COMMUNITIES
ENGAGE IN PROACTIVE WORKFORCE
DEVELOPMENT FROM K-12 TO CAREER AND
BEYOND BY FOCUSING ON OUR DIVERSE
COMMUNITY
FOCUS ON INFILL DEVELOPMENT AND URBAN
PRESERVATION
EXPAND OPEN SPACE, ECO-, AG-, AND
HISTORY/CULTURAL-TOURISM
ACTION
STATEMENTS
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ECONOMIC INSIGHTS
Perception 1: San Benito County’s Economy is Not Particularly Strong
Reality:
San Benito County has a very competitive and rapidly
growing economy that is well diversified and, therefore, more resilient to economic recessions than many.
Job growth and GDP growth for San Benito County are
both strong, placing the County within the top 25% of
counties in California.
DATA TO ILLUMINATE PERCEPTIONS
Employment Growth by County, 2010 vs 2021,
Net Percent Change
Wahlstrom & Associates / Marie Jones Consulting
ECONOMIC INSIGHTS
Perception 2: San Benito County has High Levels of Income Inequality
Reality:
San Benito County has a relatively equitable income
distribution, poverty is low, and unemployment was
5.8% in May - down from a high of 18.1% in April 2020
(pandemic)
Poverty Rates in the Tri-County Region & California
Income Distribution, 2021
6 Wahlstrom & Associates / Marie Jones Consulting
ECONOMIC INSIGHTS
Perception 3: Commuters throughout the South Bay primarily work in tech, and if San Benito County attracts tech
companies it will solve the traffic congestion issues by reducing the need to commute
Reality:
The County is a residential base for middle-class families, with commuting breadwinners working in construction, public
education, retail, and public service.
These jobs (teacher, retailers, carpenters, plumbers, police, and nurses) cannot easily be moved into San
Benito County. This workforce is not an attraction for
company relocation.
Attracting high-tech jobs to San Benito County will not employ construction, retail, health, or public service
workers that commute out. Commuting will continue
and housing costs may further increase causing
displacement and gentrification.
Table 6: Jobs and Employment by Industry - Proxy for
Commuter's Jobs, San Benito County 2021
Wahlstrom & Associates / Marie Jones Consulting
ECONOMIC SNAPSHOT
1. San Benito County added 4,000 new residents since 2019, while Santa Clara County lost 50,000 residents, and California lost 500,000 residents overall
2. San Benito County is a majority Latino community (61%)
3. Relatively few San Benito County residents have earned a Bachelors Degree or higher (5.5% compared to 13% California overall and 22% of regional residents)
4. San Benito County retail sales are strengthening faster than neighboring counties, though they lag on a per-capita basis
5. San Benito County household incomes are slightly higher than California incomes overall, but only 50% of Santa Clara County incomes
6. Business sectors that generate the most jobs in San Benito County include manufacturing (17%), agriculture (11%), construction (9%), health care services and public education (7%)
7. Median home prices in San Benito County (approx. $840,000) are 9% higher than California home prices overall, but about 50% lower than Santa Clara County home prices
OTHER FINDINGS
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ECONOMIC SNAPSHOT
Since 2019, 4,000 new residents moved
to San Benito County during a time when
people left the Bay Area:
– Santa Clara County lost 50,000
residents
– Monterey County lost 6,500 residents
– California lost 500,000 residents
DEMOGRAPHICS – POPULATION TRENDS
Wahlstrom & Associates / Marie Jones Consulting
ECONOMIC SNAPSHOT
San Benito County has low retail
sales/capita at $14,908, consistent
with lower incomes, larger families,
and fewer retail opportunities.
During the pandemic, San Benito
County experienced a significant
retail peak relative to the other
Counties (perhaps due to pandemic
related transfer payments).
RETAIL
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ECONOMIC SNAPSHOT
California’s high home prices are legendary:
– It contributes to over-crowding; issues with
employee recruitment and retention; drives up
wages; and contributes to inflation
– Housing prices more than doubled between
2011 and 2022
– As the Fed adjusted rates in 2023, housing
prices may start to fall
– The chart deftly illustrates the rise and fall of
the last housing bubble of 2004-2008
We may or may not be heading for another
housing correction.
HOUSING
2003 2007 2011 Sep-22
San Benito County 449,495 $ 621,860 $ 370,796 $ 842,442 $ Monterey County 432,212 $ 597,661 $ 307,287 $ 826,594 $ Santa Clara County 575,286 $ 789,205 $ 567,887 $ 1,540,661 $ California 315,176 $ 463,662 $ 299,146 $ 769,405 $
% Change
2003 to 2007
% Change
2007 to 2011
% Change
2011 to 2022
San Benito County 38% -40% 127%
Monterey County 38% -49% 169%
Santa Clara County 37% -28% 171%
California 47% -35% 157%
Source: Zillow Home Value Index (ZHVI), 2022; MJC 2022
Table X: Medium Home Price, San Benity, Monterey and Santa Clara Counties & California 2003 - 2022
Wahlstrom & Associates / Marie Jones Consulting
ECONOMIC DEVELOPMENT GOALS & OBJECTIVES
Goal 1: Leverage the County’s
Economic Strengths
Grow the agricultural technology, energy,
research, and aeronautical sectors of San
Benito County’s economy
Construct and maintain the backbone
infrastructure systems
Strengthen the Value-Added Sectors of
the economy
Build synergisms between tourism,
agriculture, history, culture, and openspace assets
Goal 2: Expand Equitable Communitywide
Prosperity
Bring Broadband connectivity to San Benito
County
Focus on infill development
Expand the supply of housing (including
affordable housing for workers)
Provide good, affordable childcare
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ECONOMIC DEVELOPMENT GOALS & OBJECTIVES
Goal 3: Support People
Upskill the digital and vocational skills of the
workforce
Support entrepreneurship
Provide opportunities for County residents to
establish careers
Goal 4: Increase Economic Resilience
Develop energy solutions to provide long-term
access to electrical power and reduce dependence on
PG&E
Develop new water-storage and flood-control
management infrastructure
Prepare for extreme climate or man-made events
such as drought, floods, wildfires, and mass
shootings
Prepare for a potential significant earthquake
Provide businesses and residents with opportunities
to learn about cyber security to prevent identity and
on-line theft
Provide businesses and residents with opportunities
to reduce or prevent property crime and improve
physical security
Wahlstrom & Associates / Marie Jones Consulting
SAN BENITO COUNTY ONGOING ECONOMIC
DEVELOPMENT INITIATIVES
Countywide Urgent and Ongoing Initiatives:
1. Retain Hospital Facilities in San Benito County
2. Generate New Electrical Power Needed to Support Additional Business Attraction & Expansion
3. Develop New College Campus
4. Expand the Youth Empowerment Hub (YEHUB)
Countywide Initiatives that May Take 3+ Years to Implement:
5. Implement the Proposed Automotive Research and Testing Facilities at Highway 156 and San Felipe Road
6. Implement the Proposed Commercial Center within the Santana Ranch Subdivision
7. Implement the Commercial Development Project at Hwy. 101 and Betabel Road 10 SAN BENITO COUNTY ONGOING ECONOMIC
DEVELOPMENT INITIATIVES
Countywide Long-Term Initiatives:
8. Improve Internet Access for All Businesses and
Residents of San Benito County
9. Establish a Countywide Tourism Initiative
10. Develop the Proposed Autonomous Vehicle
Innovation Park
11. Expand Outdoor Recreation
City of Hollister Initiatives:
12. Revitalize Downtown Hollister
13. Attract Investors and Developers to Build New
Hangers at the Hollister Municipal Airport
14. Develop Open-Space Taxiways to Allow
Businesses Access to the Runways at the
Hollister Municipal Airport
City of San Juan Bautista Initiatives:
15. Implement Wastewater Treatment Services
Compliance Initiative
16. Develop A New Source of Clean Drinking Water
for the City of San Juan Bautista
17. City of San Juan Bautista Multi-Modal
Transportation Project
Wahlstrom & Associates / Marie Jones Consulting
OTHER INITIATIVES – 2023
Other Economic Development Advocacies and Ideas
Prepare Third Street Corridor
Downtown Improvement Plan (San
Juan Bautista)
Protect Prime Agricultural Land
Finish Storm Drain Plan for Industrially
Zoned Land (San Juan Bautista)
Place Crop Signs on Farms to
Promote Agricultural Tourism
Initiate an Historical Cultural Trail in
San Juan Bautista
Add Electric Vehicle Charging
Stations Throughout the County
Create an Entrepreneurship Initiative Develop New Cold Storage Facilities Establish a Community or Senior
Center in San Juan Bautista Farm and Wine Tours
Establish an Agricultural Streambed
Maintenance and Water Restoration
Program
Continue to Promote Regular
Farmer’s Markets (Hollister)
Establish a New Performing Arts Center
in the region
Develop a Telecommute Center
(Hollister)
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EDC STRATEGY
Implement the CEDS:
Assist Partners in Accessing Grant Funding
Resources, Particularly Funding through the EDA
– Distribute grant announcements to project partners
(i.e. County, Cities, Special Districts)
– Provide resources for assistance in writing grant
proposals
Meet at Least Yearly with the CEDS Strategy
Committee & Provide Annual CEDS Updates to
Regional Leaders & the EDA
Work with Regional Leaders to Support their
CEDS Projects
Economic Development Activities:
Engage in Business Retention & Expansion
Efforts
Assist Businesses or Entrepreneurs in Obtaining
Resources for Loans/Grants, Preparing a
Business Plan, Locating Commercial Properties,
Accessing Permitting or Other Requirements,
Etc.
EDC 5-YEAR CEDS WORK PLAN
Wahlstrom & Associates / Marie Jones Consulting
RESILIENCY PLAN
Drought
Floods
Health
Wildfire
Earthquakes
Recession
12 RESILIENCY STRATEGY FOR THE UPDATED CEDS (DRAFT)
Energy
– Complete a Microgrid Feasibility Study to support electrical power expansion for New Development at the Hollister
Municipal Airport and the larger region
– Support development of Solar Farms to provide alternative renewable energy for San Benito County
– Continue advocating to PG&E and the CPUC for more Electric Power in San Benito County
– San Benito County Energy Resiliency Project
Water
– Pacheco Reservoir Expansion Project
– Expand Managed Aquifer Recharge
– Hollister Urban Area Water and Wastewater Master Planning Project
– City of San Juan Bautista Regional Water and Wastewater Solution
– North County Project
Climate
– Climate Action Plan
– San Benito County Climate Mitigation Project
Earthquake
– Replace Union Bridge with Earthquake and FloodResistant/Proof Construction – Retrofit Water Supply Systems of San Benito County,
City of Hollister, City of San Juan Bautista, San Benito County Water District, and Sunnyslope Water District
– Inventory County and City Buildings that Require Seismic Retrofit and Identify all the Critical Facilities in the County and Cities
– Perform Upgrades to the Hollister Municipal Airport in Case of Widespread or Local Disasters
– Assess San Felipe Dam Failure Scenarios in Relation to the San Benito County Region
– Develop a Countywide Emergency Operations Center as
Part of the New Public Safety Building
– Comply with State of California and Federal Requirements to Assess the Vulnerability of Dams to Damage from
Earthquakes, Landslides, Liquefaction, or Security Threats Wahlstrom & Associates / Marie Jones Consulting
RESILIENCY STRATEGY FOR THE UPDATED CEDS (DRAFT)
Fire
– Address the Fire Hazard Area of Tres Pinos in Terms
of Water Delivery and Fire Risk Mitigation
– Encourage Underground Phone and Electrical
Utility Lines
– Require New Developments to Provide Adequate
Access, Onsite Fire Protection Systems, Evacuation
Signage, and Fire Breaks
– Ensure Adequate Fire Equipment Road or Fire Road
Access to Developed and Open Space Areas
Flooding
– Identify Ingress and Egress Routes for Flooding for
the City of Hollister, City of San Juan Bautista, and
for San Benito County Areas Affected
– Assess San Felipe Dam Failure Scenarios in Relation
to the San Benito County Region
– Assess the Pajaro River Flood Plain and its Risk to
San Benito County Areas
– Work for Better Cooperation Among the Patchwork
of Agencies Managing Flood Control Issues
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Thank You!
PRESS RELEASE
PRESS RELEASE
Renee Wells, Executive Director
Economic Development Corporation of
San Benito County
440 San Benito Street, Hollister, CA 95023
(831) 975-2545
[email protected]
June 15, 2023
EDC Announces 30-Day Public Review of the San Benito County Comprehensive Economic Development Strategy for 2023-2027
The Economic Development Corporation of San Benito Countyi(EDC) is pleased to announce that after receiving an $80,000 grant from the Economic Development Administration (EDA), as well as a $5,000 contribution from the City of San Juan Bautista, it has completed a final draft update of San Benito County’s Comprehensive Economic Development Strategy (CEDS) for the period 2023-2027.
What is the CEDS? The CEDS is a
5-year strategy-driven plan that is a
partnership between the County of San
Benito, the Cities of Hollister and San
Juan Bautista, and the EDC that
contributes to effective economic
development in communities and
regions through a locally-based,
regionally-driven planning process that
engages economic agencies; community
leaders; educators; and the public,
private, and nonprofit sectors to engage
in meaningful conversations and debate
about what best serves economic
development in the region. It also
establishes a strategic “roadmap” for
regional collaboration and prosperity and
builds on the strengths of the region as
well as identifies gaps in resources or
expertise.
Why is the CEDS so Important and How Often is it Updated? With a current CEDS in place, agencies seeking funding are more likely to attract state/federal funding, and it is a prerequisite for any agency to qualify for EDA funding. The CEDS must be:
➢ Current;
➢ Updated every 5 years;
➢ List specific projects that each jurisdiction expects to seek funding from the EDA to support; and ➢ Adopted by the County of San Benito Board of Supervisors and approved by the EDA.
Without a current CEDS in place, funding would not have been possible to support the County’s Broadband Strategic Plan that’s being developed; support disaster recovery efforts; or support infrastructure and other crucial initiatives.
The update of the CEDS for 2023-2027 will align San Benito County, the Cities of Hollister and San Juan Bautista, and nonprofits in the region around priorities and projects that are important to the community—such as retaining hospital facilities, generating
electrical power to
support commercial
development,
improving
Broadband access,
increasing water
and sewer storage,
workforce training,
and fire resiliency—
that would not be
considered for
funding had they
not been included
in the updated
CEDS.
“Updating the CEDS is an important effort for our community to proactively address some of the challenges that we face as a region and to build on our strengths and recognize and work to correct gaps in resources or expertise of the region,” said Renee Wells, EDC Executive Director. “The strategy we develop will serve as a bridge that connects funding at the federal level to much needed projects at our local level.”
Over the last 6–7-months, the EDC worked with its CEDS Consultants and CEDS Strategy Committee—made up of local stakeholders (community leaders, educators, and the public, private, and nonprofit sectors) from the County of San Benito (including those from the Cities of Hollister and San Juan Bautista)—to develop a viable CEDS that creates a strong sense of regional cooperation and partnerships between local businesses and government. The EDC is developing a “CEDS Implementation Plan” that covers the next 5-year term and will guide its administration of the strategic plan over that period, including meeting yearly with the CEDS Strategy Committee to ensure timelines and goals are met.
To develop a thorough, concise
CEDS, the EDC contracted with
Stephen Wahlstromii
(Wahlstrom & Associates) in
association with Marie Jonesiii
(Marie Jones Consulting) who
bring years of experience and
expertise to the effort.
The EDC will host the following two “Town Hall” meetings to provide an overview of the CEDS, and the draft document will be made available for public review through July 31st. • June 30
th from 6:00 – 7:00 p.m. at the County Administration Building (in the Board Chambers at 481 4th Street, 1st Floor, Hollister, CA)
• July 6th from 5:30 – 6:30 p.m. at the San Juan Bautista City Hall (in the Council Chambers at 311 2nd Street, San Juan Bautista, CA)
We appreciate all feedback by July 31st in order to finalize the updated CEDS and present it to the EDA and the County of San Benito Board of Supervisors for final review/approval. Following is a link to the CEDS document:
https://edcsanbenito.org/wp-content/uploads/2023/06/Draft-Report-6-15-2023.pdf All comments on the CEDS should be addressed to EDC staff, as follows:
--Renee Wells, EDC Executive Director at [email protected] --Amy Paris, EDC Coordinator at [email protected] i
The Economic Development Corporation of San Benito County promotes economic growth and development in San Benito County, California through business attraction, retention, expansion and creation, while maintaining and preserving our agricultural land and rural environment. For more information, see www.edcsanbenito.org. ii Stephen Wahlstrom has been engaged in the economic development consulting business for 30+ years. During this time, he has completed nearly 200 consulting assignments in California and 15 other states, mostly in the western US. His portfolio of work includes the preparation of economic development strategies for large regions, counties, cities, and/or neighborhoods. Past projects include the San Bernardino County Five-Year CEDS, the Fresno County Five-Year CEDS, and the Santa Ynez Band of Mission Indians (near Solvang) 2021 annual CEDS update.
iii Marie Jones has 30 years of economic development experience providing land use planning, economic development, market analysis, project feasibility, grant writing, and sustainability expertise to public, non-profit, and private clients in California. Her focus is on developing practical solutions that enhance the economic performance and sustainability of projects, organizations, and communities. Past clients include the Cities of Fort Bragg, Benicia, Long Beach, Pasadena, Roseville, San Francisco, Santa Cruz, and Scotts Valley, among others.