Agenda packet — Vallejo City Council, December 17, 2024 (part 4 of 7)

Date: ______________________________
PARTIES:

1. State of California, acting by and through the Department of Transportation (“Department”). “Department” includes the Department, its officers, agents, employees and contractors.

2. ________________________________________________________________ (“Owner”). “Owner” includes the Owner, its officers, agents, employees and contractors.

RECITALS:

A. Owner owns, operates or maintains underground utility facilities in the State of California.

B. In order to facilitate the planning, design and construction of Department’s projects, to ensure the safety of the traveling public, and to ensure the continuity of the roadway/highway, manhole and valve cover adjustments need to be m ade on a routine basis. Utility owners may or may not be responsible for the cost of performing such adjustments , depending upon the liability determination made by the Department, with the cost of such activities allocated as provided by California law, contracts and the Department’s policies.

C. The Department frequently needs to adjust said manhole and valve covers more expeditiously than Owner can readily or economically accomplish.

D. Department is willing to assume control of the operation and cost of such adjustments to certain manhole and valve covers in order to facilitate the Department’s project needs from time to time as provided herein.

THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. This Agreement for the Adjustment of Manhole and Valve Covers (“Agreement”) is made and executed by the parties hereto in connection with the provisions of Sections 680.5 and 707.5 of the California Streets and Highways Code. This Agreement shall exclusively govern the determination of the obligations and costs to be borne by each party hereto in regard to work described herein in lieu of determination in connection with and under the provisions of Sections 673, 680 and 700 to 707, inclusive, of said Streets and Highways Code, as now or hereafter existing, or under any other la ws applicable to said subject matter.

EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW xx/2022)

Page 2 of 5 ends

2. This Agreement shall apply throughout the State of California to all of the Department’s projects and related activities and to all of the Owner’s manhole and valve covers . With regard to any other agreements or parti es, this Agreement is not intended to, and shall not, establish any precedent, principle, rule or guide to interpretation.

3. For purposes of this Agreement, manhole and valve cover adjustment is limited to the following: adjusting manhole frames and covers, replacing existing manhole frames, and adjusting manhole rings, valve covers and meter boxes.

This Agreement does NOT include the adjustment to grade of gas, electric or telephone vaults, or any other utility facility not mentioned in this agreement.

4. In the event that the Department initiates a project and the Department determines that some of the Owner’s manhole and valve covers are in physical conflict with Department’s highway project, the Department shall issue a conflict letter (“Conflict Letter”) to the Owner that (a) identifies the manhole and valve covers that are in physical conflict with Department’s highway project and (b) includes a document (the “Reply”) in which the Owner will designate the manhole and val ve covers that the Owner agrees to be responsible to adjust. The Owner shall adjust the manhole and valve covers for which it agreed to be responsible within the Department’s project scheduling and other requirements. Owner shall return the Reply to the Department within 30 days of receipt of the Conflict Letter. The Department is authorized to adjust only the manhole and valve covers that are not designated by Owner as those for which the Owner is responsible. The work to be performed under this Agreement is expressly limited to the work required to adjust the manhole and valve covers that are listed in the Conflict Letter, and the Reply shall not and cannot expand the list of manhole and valve covers.

5. Notwithstanding the other terms of this Agreement, the Department may, at its sole option, elect to NOT adjust -to-grade manhole and valve covers that do not satisfy Caltrans standard specifications, as amended from time to time (including without limitation manhole and valve covers that do not use standard rings or covers).

6. This Agreement does not apply to the relocation, rearrangement, removal or protection of utility facilities.

EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW xx/2022)

Page 3 of 5 ends

7. All existing manhole and valve covers will be reused unless the manhole or valve cover requires replacement. Replacement of manhole and valve covers with ancillary parts must meet Buy America compliance by the Department’s contractor. The Department’s contractor is to provide Buy America replacement manhole and valve covers per Owner’s specifications in response to the Cover Adj ustment to Grade letter 13 -EX-08. If no specifications are provided to the Department by Owner in the reply, the Department’s contractor is authorized to use a general specification attached to the Cover Adjustment to Grade letter 13-EX-08.

8. All work under this Agreement shall be preceded by the delivery of a written Notification to Owner (“NTO”) by the Department to the Owner. The Department shall list the manhole and valve covers that the Department is authorized to adjust pursuant to the Reply, and the Department will identify the manhole and valve covers that it elects to adjust. If the Department elects to not adjust manhole and/or valve covers which the Owner authorized the Department to adjust pursuant to the Reply, then the Owner shall be responsible for the adjustment of those manhole and valve covers in accordance with the provisions of the NTO, and the Owner shall allocate sufficient staff and resources to meet all of the schedules established for the project design and construction work.

9. Following receipt of the Cover Adjustment to Grade letter 13-EX-08, the Owner shall provide confirmation regarding the identity and typical characteristics (including size, material, contents, pressure or capacity) of Owner’s utility facility and related activitie s, including, but not limited to, inspection services at no expense to the Department, in accordance with the Department’s time schedule. Owner to provide its written confirmation to the Department within 30 days of the date that they receive the Cover Adjustment to Grade letter 13- EX-08.

10. When manhole and valve cover adjustment work is performed by the Department under this Agreement, the cost of the work shall be borne by the Department. When manhole and valve cover adjustment work is performed by the Ow ner under this Agreement, the cost of the work shall be allocated according to the liability determination made by the Department.

11. The Department may perform its work under this Agreement or it may perform the work through the services of a third-party contractor.

EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW xx/2022)

Page 4 of 5 ends

12. It is intended that all work under this Agreement performed by the Department shall be performed using the contractors that are acceptable to the Department. Owner grants to Department, immediately upon receipt of the NTO and in accordance with the Department’s time schedule, permission to perform manhole and valve cover adjustments within Owner’s private rights of way and facilities, wherever located. Owner retains the right to require reasonable controls and restrictions provided such items are set forth in writing and delivered to the Department (in response to Cover Adjustment to Grade 13-EX-08 letter) at least 30 days from the receipt of the 13-EX-08 letter. a) As part of this Agreement, Owner shall submit, in writing, its preli minary specifications for the adjustment of manhole and valve covers to grade to the Department.
b) Owner will approve , in writing, the Department’s final specifications for the adjustment of manhole and valve covers to grade.

13. Owner shall have access to all p hases of the work to be performed by the Department for the purpose of inspection in order to ensure that the work being performed for the Owner is in accordance with the specifications contained in the highway contract, provided such access is made at no cost to the Department. Owner will be notified by the Department’s Resident Engineer to schedule a final field inspection per the Department’s Notice to Owner.

14. Upon completion of the work performed by Department, Owner agrees to accept ownership and the r esponsibility for the maintenance of the manhole and valve covers.

15. This Agreement supersedes and replaces any previous agreement between the parties relating to the work required to adjust identified manhole and valve covers in physical conflict with Department’s highway projects.

16. This Agreement may only be amended, changed or altered by mutual written agreement of the parties.

17. This Agreement may be terminated by either party upon ninety (90) days written notice from the terminating party to the other party.

18. Time shall be of the essence of this Agreement.

EXHIBIT
COVER AGREEMENT (Cont.) 13-EX-04 (NEW xx/2022)

Page 5 of 5 ends

For The Utility Owner:
_______________________________________ _______________ Date
Name
Title
For The State of California:
_______________________________________ _________________ Tiaira T. Moering, Chief Date
Office of Railroad and Utility Relocations
Division of Right of Way and Land Surveys
California Department of Transportation
DISTRIBUTION:
1 – HQ Right of Way, Office of Railroads and Utility Relocations 1 – District
1 – Utility Owner
AMENDMENT No.1 04-SOL-37-PM10.6/11.2

Page 1 of 4 ends

AMENDMENT No. 1

TO FREEWAY MAINTENANCE AGREEMENT OF

STATE HIGHWAYS IN THE CITY OF VALLEJO

This AMENDMENT Number 1 to the Maintenance Agreement, hereafter referred to as “AMENDMENT No. 1”, is effective on __________________________, and is entered into by and between the State of California, acting by an d through the Department of Transportation, hereinafter referred to as “STATE”, and the City of Vallejo, hereinafter referred to as “CITY”.

CITY and STATE together are hereafter referred to as “PARTIES”.

WITNESSETH:

A. WHEREAS, a Freeway Maintenance Agreement of State Highway in the City of Vallejo, hereinafter referred to as “AGREEMENT”, was executed by CITY and STATE on May 16, 1994; and

B. WHEREAS, AGREEMENT by its terms provides that it may be modified or amended at any time upon mutual consent of the PARTIES; and

C. WHEREAS, Encroachment Permit Number 0424-XXX-XXXX was executed between CITY and STATE to construct improvements to State Route (SR) 37/Fairgrounds Drive interchanges to mitigate traffic impacts in the area, hereinafter referred to as “PROJECT”, and

D. WHEREAS, the PARTIES mutually desire to id entify the maintenance responsibilities of CITY for newly constructed and/or revised improvements within STATE's right of way by Encroachment Permit; and

E. WHEREAS, the PARTIES hereto now desire to amend AGREEMENT as provided herein.

AMENDMENT No.1 04-SOL-37-PM10.6/11.2

Page 2 of 4 ends

NOW, THEREFORE, the PARTIES agree to amend AGREEMENT as follows:

1. E X H I B I T A o f A G R E E M E N T i s h e r e b y m o d i f i e d t o r e a d a s s h o w n o n t h e a t t a c h e d "AMENDMENT No. 1, EFFECTIVE APRIL 25, 2023" EXHIBIT A-1 which shall cancel and replace EXHIBIT A, sheet 2 of 3, in AGREEMENT, becoming a part of AGREEMENT for all purposes.

2. A new Article 7 is hereby added and made a part of AGREEMENT to read as follows:

"7. CITY STREET LIGHTING- CITY, at CITY expense, shall be responsible for the operation, maintenance, repair, and replacement of a ll CITY street lighting including, CITY LED soffit light, CITY LED recessed wall lumina ire, CITY decorative street light, CITY street light, and all associated appurtenances installations required for public safety as shown on EXHIBIT E. CITY will also control lighting illumination to meet or exceed STATE standards and shall pay for 100% of the electrical energy costs."

3. A new Article 8 is hereby added and made a part of AGREEMENT to read as follows:

“8. CITY is solely responsible for all im provements in connection with all BICYCLE PATHS AND LANES constructed as permitted encroachments within STATE's right of way, including but not limited to the de lineation, drainage facilities, slope and structural adequacy. CITY will maintain, at CITY expense, a safe facility for bicycle travel along the entire length of the pa th/lane by providing sweeping and debris removal when necessary; and by maintaining all signing and striping, and pavement markings required for the direction and operation of that non-motorized facility.”

4. A new Article 9 is hereby added and made a part of AGREEMENT to read as follows:

“9. UNSHELTERED ENCAMPMENTS. CITY shall remove Persons Experiencing Homelessness (PEH) and any structures, personal property, debris, and/or other items related to the encampment from the areas specifically identified in Exhibit A-1, subject to State’s Encampment Removal policy, MPD 1001-R1 and applicable State and Federal Law.

Nothing in this Agreement grants or waiv es the right of California Highway Patrol (CHP) and other law enforcement agencies having jurisdiction over the areas identified in Exhibit A-1.”

AMENDMENT No.1 04-SOL-37-PM10.6/11.2

Page 3 of 4 ends

5. Article 3 of AGREEMENT is hereby deleted an d replaced in its entirety to read as follows:

"3. LANDSCAPED AREAS- CITY, at CITY's expense, is responsible for the maintenance of any plantings or other types of road side improvements lying outside of the fenced area restricting walk-on access to the freeway. CITY may remove or modify landscaping through an encroachment permit. Upon permit approval, the associated maintenance responsibilities will be reassessed, and the AGREEMENT updated accordingly through mutual written execution.

3.1 CITY responsibility for the landscaping, including flowers, shrubs, and trees, as well as irrigation systems, mulch, so il, organic fertilizer, landscaping water (collectively referred to as the “LANDSCAPING”) placed within STATE Highway right of way, as shown on EXHIBIT C (Landscape Irrigation Systems) and EXHIBIT D (Landscape Planting Plan), are attached to and made a part of this AGREEMENT.

3.2 LANDSCAPING maintenance responsib ilities within areas shown on EXHIBIT C include, but are not limited to, inspection, emergency repair, and replacement.

3.3 LANDSCAPING maintenance responsibilit ies within areas shown on EXHIBIT D include, but are not limited to, pruning, litter/trash removal, and weed control.

CITY agrees to reduce fire risk by removing dead vegetation.

3.4 If there is mutual agreemen t on a change in the maintenance responsibilities between PARTIES, the PARTIES can revise EXHIBIT C and EXHIBIT D, by a mutual written execution of the exhibit.

6. AGREEMENT is hereby modified to read as shown on the attached "AMENDMENT No. 1, EFFECTIVE APRIL 25, 2023" EXHIBIT C, EXHIBIT D, and EXHIBIT E, which shall be added to the end of EXHIBIT A, becoming a part of AGREEMENT for all purposes.

7. In all other respects, AGREEMENT remains unchanged and in full force and effect.

8. The changes to the AGREEMENT made by this AMENDMENT No.1 are hereby included in and made a part of the AGREEMENT and shall remain in full force and effect unless amended or terminated at any time upon mutual consent of PARTIES or until terminated by STATE for cause.

AMENDMENT No.1 04-SOL-37-PM10.6/11.2

Page 4 of 4 ends

PARTIES are empowered by Streets and Highways Code section 114 and 130 to enter into this Amendment and have delegated to the undersigned the authority to execute this Amendment on behalf of the respective agenci es and covenants to have followed all the necessary legal requirements to validly execute this Amendment.

IN WITNESS WHEREOF, PARTIES hereto have set their hands and seals the day and year first above written.

CITY OF VALLEJO STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

Initiated and Approved

By:

City Manager By: _______________________

LEAH BUDU,
Deputy District Director
Maintenance Division, District 04
ATTEST:

By: ____
City Clerk

APPROVED AS TO FORM AND PROCEDURE:

By: ____
City Attorney
EXHIBIT A-1

FREEWAY MAINTENANCE AGREEMENT
EXHIBIT A-1
SHEET 1 OF 3
AMENDMENT No.1
EFFECTIVE APRIL 25, 2023

MAINTAINED BY CITY

ABBREVIATIONS

MAINTAINED BY CITY
EXHIBIT A-1
SHEET 2 OF 3
AMENDMENT No.1
EFFECTIVE APRIL 25, 2023
BCB

BSW BSW
BCB

BSW BACK OF SIDEWALK

BCB BACK OF CONCRETE BARRIER

EXHIBIT E CITY STREET LIGHTING SHEET 1 OF 5
AMENDMENT No. 1 EFFECTIVE APRIL 1, 2023
EXHIBIT E CITY STREET LIGHTING SHEET 2 OF 5
AMENDMENT No. 1 EFFECTIVE APRIL 1, 2023
EXHIBIT E CITY STREET LIGHTING SHEET 3 OF 5
AMENDMENT No. 1 EFFECTIVE APRIL 1, 2023
EXHIBIT E CITY STREET LIGHTING SHEET 4 OF 5
LEGENDMAINTAINED BY CITY OF VALLEJO.AMENDMENT No. 1 EFFECTIVE APRIL 1, 2023 EXHIBIT E CITY STREET LIGHTING SHEET 5 OF 5
AMENDMENT No. 1 EFFECTIVE APRIL 1, 2023

VEHICLE DETECTION/PRE-EMPTION
04-SOL-29/80/780-PM Var
1 EMERGENCY VEHICLE DETECTION/PRE-EMPTION SYSTEM ("EVDS") MAINTENANCE

AGREEMENT

WITH CITY OF VALLEJO

This AGREEMENT is made effective on _______________, by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as “STATE” and the CITY of Vallejo; hereinafter referred to as “CITY”; and collectively referred to as “PARTIES”.

SECTION I

RECITALS

1. EMERGENCY VEHICLE DETECTION/PRE-EMPTION SYSTEM ("EVDS") was installed under Encroachment Permit on State Route(s)a ll identified under Exhibit A, which is attached and has been made part of this AGREEMENT. EVDS equipment is owned and operated by CITY for the purpose of enabling first-response vehicles to request traffic signal preemption at equipped intersections. This includes but is not limited to associated communication equipment (wirel ess and similar), supporting electrical network, wireless backbone infrastructure and associated hardware and software within locations identified in Exhibit A.

2. This AGREEMENT and the Encroachment Perm it define the responsibilities of CITY including but not limited to, operatio ns, maintenance, repair, replacement, reinstallation, removal, and relocation of EVDS.

3. This AGREEMENT specifies the CITY’s costs associated with the operation, maintenance, repair, replacement, reinstallation, removal, and relocation of EVDS at locations listed in Exhibit A.

4. PARTIES may have executed [a] prior Electrical Facilities Cost Sharing Agreement(s) covering electrical devices other than EVDS within CITY’s jurisdictional limits. This AGREEMENT does not supersede the prio r Electrical Facilities Cost Sharing Agreement(s). Such prior Electrical Facilities Cost Sharing Agreement(s) will remain in full force and effect.

NOW THEREFORE, IT IS AGREED AS FOLLOWS:

VEHICLE DETECTION/PRE-EMPTION
04-SOL-29/80/780-PM Var
2 SECTION II

AGREEMENT

1. Exhibit A lists and describes the facilities within STATE right of way which are the responsibility of the CITY to maintain in accordance with this Agreement.

2. If there is mutual agreement on a chan ge in the maintenance responsibilities between PARTIES, the PARTIES can revise Exhibit A through a mutual written execution of the exhibit.

3. CITY must obtain the necessary Encroach ment Permits from STATE’s District 04 Encroachment Permit Office prior to enter ing STATE right of way to perform CITY maintenance responsibilities. This permit will be issued at no cost to CITY.

4. INTERSECTION OPERATION - It is STATE’s responsibility to provide efficient operation of intersections. Timing of the traffic signals shall be the responsibility of the STATE.

5. EMERGENCY VEHICLE DETECTION/PRE-EMPTION SYSTEM ("EVDS") is constructed as a permitted encroachment within STATE’s right of way at the locations listed on Exhibit A. CITY is solely responsible for, but no t limited to the installation, operation, relocation, removal, and maintenance of EVDS.

5.1. CITY, at CITY expense, will own, in spect and maintain the EVDS equipment, including all components within the controller cabinet, any components attached to a signal pole or mast arm, and other related components; the phasing and timing will be as directed by the STATE Engineer.

5.2. Upon installation, replacement, or maintenance of EVDS, CITY maintenance personnel, STATE Engineer, and local emergency services personnel will conduct joint operational tests. A representative of the EVDS supplier should also be present to provide technical assistance during the initial operational tests.

5.3. In addition to regular inspection and maintenance, all costs of repairing or replacing damaged or missing EVDS equipment is the responsibility of the CITY.

5.4. CITY will provide maintenance personnel who will be available to respond without delay to emergency calls. Contro ller failure, lights out, knockdowns, or two (2) red lights out at an intersection are considered emergencies. Contact email and phone number are the following:

EVDS: _____________________________________________________.

VEHICLE DETECTION/PRE-EMPTION
04-SOL-29/80/780-PM Var
3 5.5. CITY shall be responsible for all respective costs associated with any damage(s) to STATE-owned infrastructure caused by the CITY’s operation and maintenance activities of EVDS.

5.6. CITY shall not alter, adjust, modify, re move, replace, disconnect, activate, or deactivate STATE equipment without written authorization from STATE.

5.7. CITY will notify, in writing, the STATE Engineer a minimum fifteen (15) working days prior to any change in the EVDS.

6. LEGAL RELATIONS AND RESPONSIBILITIES

6.1. Nothing within the provisions of this Agre ement is intended to create duties or obligations to or rights in third parties no t parties to this Agreement or to affect the legal liability of a PARTY to the Agreement by imposing any standard of care with respect to the operation and main tenance of STATE highways and local facilities different from the standard of care imposed by law.

6.2. Neither CITY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by, under or in connection with any work, authority or jurisdiction conferred upon STATE under this Agreement. It is unders tood and agreed that STATE shall fully defend, indemnify and save harmless CITY and all of their officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tort ious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this Agreement.

6.3. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction conferred upon CITY under this Agreement. It is understood and agreed that CITY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tort ious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by CITY under this Agreement.

VEHICLE DETECTION/PRE-EMPTION
04-SOL-29/80/780-PM Var
4 7. PREVAILING WAGES:

7.1. Labor Code Compliance- If the work performed under this Agreement is done under contract and falls within the Labor Code section 1720(a)(1) definition of a "public works" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code section 1771. CITY must conform to the provisions of Labor Code sections 1720 through 1815, and all applicable provisions of California Code of Regul ations found in Title 8, Chapter 8, Subchapter 3, Articles 1-7. CITY agrees to include prevailing wage requirements in its contracts for public works. Work pe rformed by CITY'S own forces is exempt from the Labor Code's Prevailing Wage requirements.

7.2. Requirements in Subcontracts - CITY shall require its contractors to include prevailing wage requirements in all subcontracts when the work to be performed by the subcontractor under this Agreement is a "public works" as defined in Labor Code Section 1720(a)(1) and Labor Code Section 1771. Subcontracts shall include all prevailing wage requirements set forth in CITY's contracts.

8. INSURANCE - CITY and its contractors shall main tain in force, during the term of this agreement, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, na ming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfacto ry to the STATE that shall be delivered to the STATE with a signed copy of this Agreement.

9. TERMINATION - This Agreement may be terminated by mutual written consent by PARTIES or by STATE for cause., CITY’s failure to comply with the provisions of this Agreement may be grounds for a Notice of Termination by STATE.

10. TERM OF AGREEMENT - This Agreement shall become effective on the date first shown on its face sheet and shall remain in full force and effect until amended or terminated as set forth in Article 8 above.

VEHICLE DETECTION/PRE-EMPTION
04-SOL-29/80/780-PM Var
5 PARTIES are empowered by Streets and Hi ghways Code Section 114 and 130 to enter into this Agreement and have delegated to the undersigned the authority to execute this Agreement on behalf of the respective agencies and covenants to have followed all the necessary legal requirements to validly execute this Agreement.

IN WITNESS WHEREOF, the PARTIES hereto ha ve set their hands and seals the day and year first above written.

THE CITY OF VALLEJO STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

Initiated and Approved

By: ___________________________
CITY Manager

By: ___________________________

LEAH BUDU
Deputy District Director
Maintenance District 04
ATTEST:

By: __________________________
CITY Clerk

By: __________________________
CITY Attorney

EXHIBIT A

Page 1 of 3 ends

EMERGENCY VEHICLE DETECTION/PRE-EMPTION SYSTEM (EVDS)

Caltrans ("STATE") and City of VALLEJO ("CITY")
Effective July 16, 2023

BASIS OF COST DISTRIBUTION
CITY-Owned, operated, and Maintained

Route and
PM

Location Type of
Facility
Cost Distribution
(including
electrical
energy)

STATE CITY
04-SOL-29-
PM2.41
CAROLINA ST & HWY 29
(SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM0.55

MAGAZINE ST & HWY
29 (SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM3.49

VALLE VISTA AVE &
HWY 29 (SONOMA
BLVD)
EVDS 0% 100%
04-SOL-29-
PM3.71

REDWOOD ST & HWY
29 (SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM4.03
SERENO DR & HWY 29
(SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM5.36

MEADOWS DR & HWY
29 (SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM5.84
MINI DR & HWY 29
(SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM1.00
LEMON ST & HWY 29
(SONOMA BLVD)

EVDS 0% 100%
04-SOL-29-
PM4.36
HWY 29 (SONOMA

BLVD) & YOLANO DR

EVDS 0% 100%

EXHIBIT A

Page 2 of 3 ends

04-SOL-080-
PM1.25

MARITIME ACADEMY /
WB080 & 029 OFFRAMP

EVDS 0% 100%
04-SOL-080-
PM4.49
EB HWY 80 & ADMIRAL

CALLAGHAN LN/

REDWOOD PKWY

EVDS 0% 100%
04-SOL-29-
PM 1.641
HWY 29 (SONOMA
BLVD)& SOLANO AVE.

EVDS 0% 100%
04-SOL-29-
PM 1.92
HWY 29 (SONOMA

BLVD) & CURTOLA PKWY

EVDS 0% 100%
04-SOL-29-
PM 2.057
HWY 29 (SONOMA
BLVD) & MAINE ST.

EVDS 0% 100%
04-SOL-29-
PM 2.129
HWY 29 (SONOMA
BLVD) & YORK ST.

EVDS 0% 100%
04-SOL-29-
PM 2.200
HWY 29 (SONOMA
BLVD) & GEORGIA ST.

EVDS 0% 100%
04-SOL-29-
PM 2.269
HWY 29 (SONOMA
BLVD) & VIRGINIA ST.

EVDS 0% 100%
04-SOL-29-
PM 2.474
HWY 29 (SONOMA
BLVD) & FLORIDA ST.

EVDS 0% 100%
04-SOL-29-
PM 2.676
HWY 29 (SONOMA
BLVD) & LOUISIANA ST.

EVDS 0% 100%
04-SOL-29-
PM 2.815
HWY 29 (SONOMA
BLVD) & TENNESSEE ST.

EVDS 0% 100%
04-SOL-29-
PM 3.081
HWY 29 (SONOMA
BLVD) & NEBRASKA ST.

EVDS 0% 100%
04-SOL-29-
PM 3.161
HWY 29 (SONOMA
BLVD)
&
MISSISSIPPI/COUCH ST.

EVDS 0% 100%

EXHIBIT A

Page 3 of 3 ends

04-SOL-29-
PM 4.727
HWY 29 (SONOMA

BLVD) & LEWIS BROWN
DR. / & EB 37 OFF/ON
RAMPS

EVDS 0% 100%
04-SOL-80 -
PM 4.402
HWY 80 WB &

REDWWOD ST/
FAIRGROUNDS DR.

OFF/ON RAMP

EVDS 0% 100%
04-SOL-780 -
PM 6.012
HWY 780 EB & GLEN

COVE RD RAMPS

EVDS 0% 100%
04-SOL-780 -
PM 5.992
HWY 780 WB & GLEN

COVE RD RAMPS

EVDS 0% 100%
04-SOL-780-
PM7.44

LEMON/CURTOLA
PKWY & HWY 780
RAMPS

EVDS 0% 100%
04-SOL-37-
PM10.95
WB HWY 37 OFF/ON RAMPS &
FAIRGROUNDS DR.

EVDS 0% 100%
04-SOL-37-
PM10.97
EB HWY 37 OFF/ON RAMPS &
FAIRGROUNDS DR.

EVDS 0% 100%

04-SOL-Var-PM Var

1 LAW ENFORCEMENT SURVEILLANCE DEVICES (LESD) MAINTENANCE AGREEMENT

WITH CITY OF VALLEJO

This LAW ENFORCEMENT SURVEILLA NCE DEVICES (LESD) MAINTENANCE AGREEMENT(“AGREEMENT”) is made by and between the State of California, acting by and through the Department of Transportation ("STATE"), and the CITY of Vallejo (“LOCAL AGENCY”); each may be referred to individually as a “PARTY” and jointly as “PARTIES.”

RECITALS

1. PARTIES are authorized to enter AGREEMENT for the maintenance of the State Highway System per the California Streets and Highways Code, Sections 114 and 130.

2. LESD have been installed under the Cooperative Agreement or Encroachment Permit Number on the State Route(s) ident ified in Exhibit A, which is attached and has been made part of this AGRE EMENT. LESD means equipment owned and operated by LOCAL AGENCY and its law enforcement agencies for the purpose of law enforcement investigations and surveillance, and includes but is not limited to: Closed-Circuit Televi sion (CCTV) cameras and associated communication equipment (wireless and similar), supporting electrical network, automated license plate readers, shot spotter technology, wireless backbone infrastructure and associated hardware and software within locations identified in Exhibit A.

3. This AGREEMENT and the Permit define the responsibilities of LOCAL AGENCY such as, but not limited to, operatio ns, maintenance, repair, replacement, reinstallation, removal, and relocation of LESD.

4. This AGREEMENT shall specify the LOCAL AGENCY’s costs associated with the operation, maintenance, repair, repl acement, reinstallation, removal, and relocation of LESDs at locations listed in Exhibit A.

5. This AGREEMENT shall not be applicable to Red Light Enforcement Devices.

LOCAL AGENCY shall conform to the terms in Traffic Operations Policy 14-01 REV1, dated January 2016 by applying for a separate encroachment permit for installation of Red-Light Enforcement Devices within its jurisdictional limits.

04-SOL-Var-PM Var

2 6. The PARTIES may have executed [a] prio r Electrical Facilities Cost Sharing Agreement(s) covering electrical devices other than LESDs within LOCAL AGENCY’s jurisdictional limits. This AGREEMENT does not supersede those Agreement(s). Such prior Electrical Facilities Cost Sharing Agreement(s) will remain in full force and effect.

7. Party Representatives and Notices:

All notices, document submittals and in voices required under this AGREEMENT shall be deemed to have been fully given when made in writing and received by the PARTIES at their respective addre sses as indicated in Exhibit C which is attached to and made a part of this Agreement.

OPERATIVE PROVISIONS

1. Device Installation. LOCAL AGENCY shall apply for a separate encroachment permit to install any new LESD that are not expressly identified in Exhibit A LOCAL AGENCY shall be responsible for any cost associated with modifications made to State-owned infrastructure to accommodate the added demand due to the newly installed LESDs. All installations of LESD shall meet applicable STATE design specifications and guidelines.

2. Maintenance. LOCAL AGENCY shall be responsible for performing maintenance, repairs, replacements, rein stallations, removals, and relocations of LESD and associated costs. LOCAL AGENCY shall be responsible for all respective costs associated with any da mage(s) to STATE-owned infrastructure caused by the LOCAL AGENCY’s operation and maintenance activities of LESD.

3. Maintenance Service Schedule. Upon approval of the necessary Encroachment Permit to perform maintenance, LOCAL AGENCY shall provide STATE’s District Area Maintenance Superintendent, at least twenty-four (24) hour prior telephone or email notice before performing any maintenance services under this AGREEMENT. LOCAL AGENCY shall notify the STATE of the frequency of its maintenance services. Maintenance services shall be performed between the hours of 9:00 AM and 03:00 PM or othe rwise authorized by STATE and may be performed on weekends and holidays if necessary.

04-SOL-Var-PM Var

3 4. Device Removal. STATE shall revoke the encroachment permit granted to LOCAL AGENCY by giving a 5-busine ss day written notice to remove a concerning LESDs that create, or STATE d eems, a safety hazard to the traveling p u b l i c a n d / o r S T A T E - o w n e d i n f r a s t r u c t u r e w i t h i n S T A T E R i g h t - o f W a y . L O C A L AGENCY shall duly remove the LESD at their own costs. Upon failure to remove LESD by 5 business days or within the ex tended time provided by STATE, STATE shall so remove the concerned LESD and invoice the LOCAL AGENCY for the costs which shall be paid within date specified in the invoice(s). Upon removal of LESDs the Exhibit A shall be amended 30 calendar days after the removal of LESD or before the next billing cycle to reduce the reimbursement costs of the LOCAL AGENCY.

5. Storage of Removed Device STATE shall store any removed LESDs in a nearby STATE maintenance yard for up to 30 calend ar days from initial notification to LOCAL AGENCY. If LOCAL AGENCY does not collect the LESD within 30 calendar days from initial notification, STATE reserves the right to dispose of the LESD without any further notification, and LOCAL AGENCY waives any right to compensation for the disposed LESD. Any disposal fees accrued by the STATE shall be invoiced to the LOCAL AGENCY.

6. Device Reinstallation. S T A T E s h a l l m a k e r e a s o n a b l e e f f o r t s t o n o t i f y L O C A L AGENCY after the repair of any damaged State-owned infrastructure is complete to allow for LOCAL AGENCY to repair or reinstall their LESD equipment if necessary. Device reinstallation sh all follow the requirements in STATE’s Encroachment Permits Manual, sectio n 508.12, Law Enforcement Surveillance Devices.

7. Costs of Additional Energy Utilization . LOCAL AGENCY and STATE have determined under Exhibit A, the costs reimbursable to STATE for LESDs including, but not limited to, additional energy utilization, required modifications to State- owned infrastructure to handle the added demand, both structural and utility based.

8. Billing. STATE shall bill LOCAL AGENCY quarterly in arrears for LOCAL AGENCY’s reimbursement amount towards LESD ener gy costs listed in Exhibit A and any respective costs associated with any damage(s) to State-owned infrastructure caused by the LOCAL AGENCY’s maintenance activities of LESD.

04-SOL-Var-PM Var

4 9. Amendment to Agreement. This AGREEMENT may only be amended by a written agreement executed by all PARTIES. However, Exhibits” can be modified, replaced, or supplementing pages by the written concurrence of representatives of respective PART IES who are authorized to executed contracts. The most current fully execut ed Exhibits supersedes any previous Exhibits.

10. Successors. This AGREEMENT shall be binding upon and inure to the benefit of each of the PARTIES and their respective successors-in-interest including, any subsequently incorporated city or other municipality established within the LOCAL AGENCY’s jurisdictional limits. If the succe ssor city or municipality fails to accept the obligations of the LOCAL AGENY by entering into a new agreement with STATE, LOCAL AGENCY shall continue to be contractually bound by the terms of this AGREEMENT.

10. Encroachment Permits. STATE shall issue, upon proper application, the encroachment permits required to perform maintenance within STATE Right-of Way. LOCAL AGENCY, its contractors, and authorized agents will not work within the State highway right-of-way without an encroachment permit issued to the LOCAL AGENCY. The encroachment permit shall list any and all contractors and agents allowed to work under it. STATE shall issue encroachment permits to LOCAL AGENCY at no cost. If the encroachment permits and this AGREEMENT conflict, the requirements of this AGREEMENT will prevail.

11. Traffic Control. LOCAL AGENCY shall provide all traffic control measures as per the terms stated in the General and Special Provisions of the encroachment permit obtained to engage in the maintenance, repairs, replacements, reinstallations, removals, and relocations of LESDs under this AGREEMENT.

12. Personal Data. STATE shall not have access to or control of the collected personal data through the LOCAL AGENCY’s LESDs. LOCAL AGENCY shall ensure that the STATE will not have access to the data collected by the LESDs.

13. Safety and Worker Compliance. LOCAL AGENCY shall be solely responsible for crew pay, workers compensation and any other benefits required by state and federal law. Subcontractors and crew members are not considered STATE’s employees at any time. LOCAL AGENCY shall comply with all applicable State and Federal statutes and regulations governing worker and public safety, including but not limited to compliance with CAL-OSHA regulations and guidelines. LOCAL AGENCY shall make arrangements

04-SOL-Var-PM Var

5 through the STATE if traffic controls, flags, signs, or lane closures are necessary to safely perform any maintenance services. Dependent on the safety aspects of the work site, STATE’s personnel shall not be required to be at the worksite but shall be within the geographic area to respond to emergencies.

14. Budget Contingency. STATE’s obligations assumed under this AGREEMENT shall be contingent upon the Legislature ap propriating sufficient funds under the Budget Act and the encumbrance of funding to the STATE’s District Office.

17.Legal Relations and Responsibilities.

17.1 No Third-party Beneficiaries . This AGREEMENT is not intended to create duties, obligations, or rights of third parties beyond the PARTIES to this AGREEMENT. Nor does this AGREEMENT affect a PARTY’s legal liability by imposing any standard of care for the maintenance of STATE highways different from the standard of care imposed by law.

17.2 Indemnification. Neither STATE nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by LOCAL AGENCY in
connection with any work, authority or jurisdiction conferred upon LOCAL AGENCY under this AGREEMENT. LOCAL AGENCY shall fully defend, indemnify, and save harmless STATE and its officers and employees from all claims, suits, or actions of every kind occurring by reason of anything done or omitted to be done by LOCAL AGENCY, its contractors, sub-contractors and/or its agents pursuant to this AGREEMENT.

Neither LOCAL AGENCY nor any of its officers or employees is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, in connection with any work, authority or jurisdiction conferred upon STATE under this Agreement. STATE shall fully defend, indemnify, and save harmless LOCAL AGENCY and its officers and employees from all claims, suits, or actions of every kind occurring by reason of anything done or omitted to be done by STATE under this Agreement.

04-SOL-Var-PM Var

6 17.3 Work-related Injuries. If a LOCAL AGENCY-assigned crew member is injured while performing maintenance services under this AGREEMENT, LOCAL AGENCY or its designated subcontractor shall be responsible for ensuring the crew member is given prompt medical care and treatment and, if necessary, transportation to a medical facility. LOCAL AGENCY or its designated subcontractor shall administer any injury and workers compensation claims. LOCAL AGENCY shall notify the DMAC within twenty-four (24) hours when any such incident has occurred.

18. Prevailing Wages and Labor Compliance. LOCAL AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for public works or maintenance contracts and subcontracts executed for the LOCAL AGENCY’s maintenance services under this AGREEMENT.

19. Insurance

19.1 Self-Insured . LOCAL AGENCY is self-ins ured. LOCAL AGENCY shall deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury and property damage liability, in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess by delivering a Letter Certifying Self-Insurance. The Letter of Self-Insurance must be substantially in the form of Exhibit B and identify the AGREEMENT number, and location as depicted in Exhibits A. LOCAL AGENCY shall provide the original Letter Certifying Self-Insurance as a condition to STATE’s execution of this AGREEMENT. A copy of the original letter shall be attached to this AGREEMENT as Exhibit B.

19.2 Self-Insured using Contractor .

If the work performed under this
AGREEMENT is done by LOCAL AGENCY‘s contractor(s), LOCAL AGENCY shall require its contractor(s) to maintain in force, during the term of this AGREEMENT, a policy of general liabilit y insurance, including coverage of bodily injury and property damage liability, naming STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. LOCAL AGENCY shall provide a certificate of insurance evidencing this insurance in a form satisfactory to STATE.

04-SOL-Var-PM Var

7 20. Termination. This AGREEMENT may be terminated by the mutual written consent of each PARTY, and LOCAL AGENCY’s failure to comply with the provisions of this AGREEMENT may be grounds for revocation of permit(s) issued by STATE, for the LESD within STATE Right of Way.

21. Effective Date. This AGREEMENT shall become effective on the last of the dates each PARTY’s authorized representative has executed this AGREEMENT.

22. Authority. Each individual executing this AGREEMENT on behalf of each PARTY represents and warrants that he/she is duly authorized to execute this AGREEMENT. LOCAL AGENCY represents and certifies that it has, through its regular political process, authorized the execution of this AGREEMENT by appropriate resolution, delegation, or plenary authority as required.

23. Electronic Signatures. Electronic signatures of the PARTIES, whether digital or encrypted, shall be intended to authenticate this written AGREEMENT, and shall have the same force and effect as manual signatures for this AGREEMENT.

04-SOL-Var-PM Var

8 CITY Attorney

THE CITY OF VALLEJO

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

Initiated and
Approved by
Date: Date:

CITY Manager LEAH BUDU
Deputy District Director
Maintenance District 04

ATTEST:

Date:

CITY Clerk

APPROVED AS

TO FORM AND

PROCEDURE

Date:

04-SOL-Var-PM Var

9 E x h i b i t “ A ”

Estimated Reimbursement of LESDs costs
Effective July 30, 2023

Route and
PM Location
Encroachment
Permit or
Cooperative
Agreement
number.

Type of Facility

Reimbursement
amount paid by

LOCAL AGENCY

04-SOL-37-
PM10.9

EB/WB HWY 37
OFF/ON

RAMPS &

FAIRGROUNDS
DR.

EP 0423-XXX-
XXXX

LESD

100%

04-SOL-Var-PM Var

10 EXHIBIT B – LETTER OF CERTIFICATE OF CITY OF VALLEJO STATEMENT OF SELF INSURANCE (On Local Agency letterhead)

ATTN: Waddah Al-Zireeni, Senior Engineer, Maintenance Feb. 2, 2024 California Department of Transportation District 4
111 Grand Avenue
Oakland, CA 94623

Re: Statement of Self-Insurance for CITY of Vallejo for Project Specific Maintenance Agreement No. TR04-23-HB13 with California Department of Transportation for the Law Enforcement Surveillance Devices (LESD) along SR37 at PM10.9.

Dear Mr. Al-Zireeni:

This letter certifies that the CITY of Vallejo is self-insured and self-funded covering third-party claims arising out of its gener al operations (i.e.; commercial general liability and automobile liability insurance) . Further, the CITY is self-insured covering workers’ compensation claims and has received the consent of the State Department of Industrial Relations to do so.

Each fiscal year, as a part of its budget ary process, the CITY appropriates funds specifically to satisfy valid third-party claims and workers’ compensation claims, which may be brought against the CITY.

The CITY certifies its self-insured, general liability coverage for bodily injury and property damage liability, meets the requ ired coverage amounts in section 19.1 (Insurance) of the Project Specific Maintenance Agreement, specifically general liability insurance, coverage of bodily in jury and property damage liability in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess.

If you need any additional information rega rding this letter, please direct those inquiries through my office.

Sincerely,

Finance Manager/Risk Manager/Authorized Representative’s Title

04-SOL-Var-PM Var

11 Exhibit C
PARTY Representatives Contact information.

LOCAL AGENCY
Attn: City of Vallejo Public Works Director/City Engineer:

Address:
555 Santa Clara Street
Vallejo, California 94590
USA

Contact Number: (707) 648-4576

STATE
Attn: Senior T.E., Maintenance Agreements : Waddah Al-Zireeni

Address:

California Department of Transportation District 4
111 Grand Avenue, Oakland, CA 94623

Contact Number: 510- 715-7425

04-SOL-29/37/80/780-PMVAR

1 AGREEMENT FOR SHARING COST OF STATE HIGHWAY ELECTRICAL FACILITIES

WITH CITY OF VALLEJO

THIS AGREEMENT is made effective this ________ day of __________, 20_____, by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as "STATE" and the CITY of Vallejo, hereinafter referred to as “CITY ” and collectively referred to as “PARTIES”

This Agreement shall supersede any pr evious Agreement and/or Amendments thereto for sharing State-incurred costs with the CITY .

The cost of operating and maintaining flas hing-beacons traffic-signals, traffic-signal systems, safety-lighting, and sign-lighting now in place at the intersection of any State Highway Route and any CITY street/road shall be shared as shown in Exhibit “A”.

1. Electrical Facilities. This AGREEMENT sp ecifies the CITY’s and STATE’s respective costs associated with the operation, ma intenance, repair and replacement of the electrical facilities specifically listed in Exhibit A under two categories one for STATE Owned and Maintained and another for CITY owned.

2. Reimbursement of Actual Costs.

2.1. STATE shall pay for all the expenses stat ed in the “Basis for Billing” section below, for all the electrical facilities listed under STATE Owned and Maintained table shown in Exhibit A and seek reimbursement from CITY as per the percentage stated in that table in Exhibit A.

2.2. CITY shall directly spend for all the exp enses stated in the “Basis for Billing” section below, for the electrical facilities listed under CITY Owned and Maintained table shown in Exhibit A except Electrical energy costs which shall be paid by STATE directly to the utility company and thereafter STATE shall seek reimbursement from CITY as per the percentage stated in CITY Owned and Maintained table in Exhibit A.

3. STATE shall revoke the encroachment permit granted to CITY by giving a five business day written notice to remove a concerning electrical facility listed under the CITY Owned and Maintained table show n in Exhibit A that create, or STATE deems, a safety hazard to the traveling public and/or STATE-owned infrastructure within STATE Right-of Way. CITY shall duly remove the facility at their own costs.

Upon failure to remove facility by 5 busi ness days or within the extended time provided by STATE, STATE shall so remo ve the concerned facility and invoice the CITY for the costs which shall be paid within date specified in the invoice(s).

04-SOL-29/37/80/780-PMVAR

2 4. Basis for Billing:

4.1. It is agreed that quarterly billings fo r flashing-beacons, traffic-signals, and traffic-signal systems shall be based on actual intersection costs, which are as follows:

4.1.1. Maintenance Labor, including overhead assessment, other expenses including, equipment, materials, and miscellaneous expenses

4.1.2. Electrical energy

4.2. It is agreed that quarterly billings fo r safety-lighting and sign-lighting shall be based on calculated unit-costs derived by averaging STATE's District- wide costs each quarter. Costs are as follows:

4.2.1. Maintenance Labor, including overhead assessment, other expenses including, equipment, materials, and miscellaneous expenses

4.2.2. Electrical energy

4.3. It is agreed that quarterly billings in voiced to CITY for STATE-owned and maintained electrical facilities identif ied in Exhibit “A” will be based on actual costs paid by STATE, when derived from utility company billings.

STATE will bill CITY quarterly in arrear s for any CITY share of electrical facilities expenses shown in Exhibit “A”.

5. Exhibit “A” will be amended, as necessary by written concurrence of both parties, to reflect changes to the system.

6. STATE costs and expenses assumed unde r the terms of this Agreement are conditioned upon the passage of the annu al State of California Budget by the Legislature, the allocation of funding by the California Transportation Commission as appropriate, and the encumbrance of funding to the District Office of STATE to pay the billings by CITY .

04-SOL-29/37/80/780-PMVAR

3 7. LEGAL RELATIONS AND RESPONSIBILITIES

7.1. Nothing within the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not PARTIES to this Agreement or to affect the legal liability of a PARTY to the Agreement by imposing any standard of care with respect to the operation and maintenance of STATE highways and local facilities different from the standard of care imposed by law.

7.2. Neither CITY nor any officer or em ployee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or jurisdiction conferred upon STATE arising under this Agreement. It is understood and agreed that STATE shall fully defend, indemnify and save harmless CITY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contract ual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this Agreement with exception of those actions of STATE necessary to cure a noticed default on the part of the CITY .

7.3. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction conferred upon CITY and arising under this Agreement. It is understood and agreed that CITY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contract ual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by CITY under this Agreement.

8. TERMINATION - This Agreement may be terminated by timely mutual written consent by PARTIES; by either party upon thirty (30) days' notice to the other party.

9. TERM OF AGREEMENT - This Agreement sha ll become effective on the date first shown on its face sheet and shall remain in full force and effect until amended or terminated at any time upon mutual consent of the PARTIES or until terminated by STATE for cause.

04-SOL-29/37/80/780-PMVAR

4 PARTIES are empowered by Streets and Highways Code Section 114 and 130 to enter into this Agreement and have delegated to the undersigned the authority to execute this Agreement on behalf of the resp ective agencies and covenants to have followed all the necessary legal requirements to validly execute this Agreement.

IN WITNESS WHEREOF, PARTIES hereto have set their and seals the day and year first above written.

THE CITY OF VALLEJO STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

By: __________________________
Mayor

Approved:

By: ___________________________
City Manager

By: ___________________________

LEAH BUDU
Deputy District Director
Maintenance Division, District 04
ATTEST:

By: __________________________
City Clerk

APPROVED AS TO FORM AND
PROCEDURE:

By: __________________________
City Attorney

EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 1 of 6 ends

NOTES:
"P": traffic signal system. PH B: pedestrian hybrid beacon. "E": lighting system. RRFB: Rectangular Rapid Flashing Beacon "L": light IISNS: Internally Illuminated Street Name Signs. "G": overhead highway sign

EXHIBIT A

ELECTRICAL FACILITIES AGREEMENT
Caltrans ("STATE") and City of VALLEJO ("CITY")
Effective October 27, 2023

BASIS OF COST DISTRIBUTION

STATE-Owned and Maintained
Electrical Cost Share Billed by the STATE.

Route & PM

Location Type of Facility Cost Distribution (including electrical
energy)

STATE CITY
04-SOL-29-
PM2.41
HWY 29 @ CAROLINA
ST
"P"(E23B4) AND "E"(002410,
002420,002430, 002440)

50%

04-SOL-29-
PM0.55

MAGAZINE ST & HWY
29 (SONOMA BLVD)

"P"(EB012) AND "E"(000612,
000622, 000632, 000642)

50% 50%
04-SOL-29-
PM3.49

VALLE VISTA AVE &
HWY 29 (SONOMA
BLVD)

"P"(EB015) AND
"E"(003511, 003521, 003531,
003541, 003561).

50% 50%
04-SOL-29-
PM3.71

REDWOOD ST & HWY
29 (SONOMA BLVD)

"P"(EB016) AND
"E"(03722, 03742, 03752, 03762,
03782, 03802, 03812)

50% 50%
04-SOL-29-
PM4.03
SERENO DR & HWY 29
(SONOMA BLVD)

"P"(EB017) AND "E"(004022,
004032,004042,004052,)
50% 50%
04-SOL-29-
PM5.36

MEADOWS DR & HWY
29 (SONOMA BLVD)

"P"(EB019) AND "E"(005511,
005521, 005531, 005541)

50% 50%
04-SOL-29-
PM5.84
MINI DR & HWY 29
(SONOMA BLVD)
"P"(EB020) AND
"E"(005811, 05821, 05831, 05841,
05851, 05861)

50% 50%
EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 2 of 6 ends

04-SOL-29-
PM1.00
LEMON ST & HWY 29
(SONOMA BLVD)

"P"(EB036) AND "E"(001012,
001022, 001032, 001042)
50% 50%
04-SOL-29-
PM4.36
HWY 29 (SONOMA

BLVD) & YOLANO DR
"P"(EB070) &
"E"(004281, 004291, 004311,
004321)

50% 50%
04-SOL-37-
PM10.95
WB HWY 37 OFF / ON

RAMPS &
FAIRGROUNDS DR.

"P"(EB026) AND
"E"(010971, 011011,011031,
011051,011071, 011091, 011131)
50% 50%
04-SOL-37-
PM10.97
EB HWY 37 OFF / ON

RAMPS &
FAIRGROUNDS DR.

"P"(EB075) AND
"E"(011002, 011022, 011042
011062, 011082, 011122)
50% 50%
04-SOL-080-
PM1.25

MARITIME ACADEMY /
WB080 & 029 OFFRAMP

"P"(E23C8) AND "E"(001337,
001357, 001377, 001397)

50% 50%
04-SOL-080-
PM4.49
EB HWY 80 & ADMIRAL

CALLAGHAN LN/

REDWOOD PKWY

"P"(EB069) AND
"E"(004408, 004418, 004428,
004438, 004448, 004458)
25% 75%
04-SOL-780-
PM7.44

LEMON/CURTOLA
PKWY & HWY 780
RAMPS
"P"(EB040) AND
"E"(007352, 007382, 007392,
007422)

25% 75%
04-SOL-29-
PM0.78
HWY 29 (SONOMA

BLVD) & CHERRY ST
RRFB(E23DA) AND
"E"(000810, 000820, 000830,
000840) AND "L"(000850).

50% 50%
04-SOL-29-
PM0.89
HWY 29 (SONOMA

BLVD) & WINCHESTER
ST.
"E"(000921, 000931, 000941,
000951).
50% 50%
04-SOL-29-
PM 1.11
HWY 29 (SONOMA

BLVD) & MCLANE ST

"E"(001101, 001121, 001131,
001151).
50% 50%
04-SOL-29-
PM 1.22
HWY 29 (SONOMA

BLVD) & CHESTNUT ST

"E"(001200, 001210, 001220,
001230).
50% 50%
04-SOL-29-
PM1.98
HWY 29 (SONOMA

BLVD) &

PENNSYLVANIA ST
"E"(002010, 002020, 002030,
002040).
50% 50%
EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 3 of 6 ends

04-SOL-29-
PM 2.34
HWY 29 (SONOMA
BLVD) & CAPITOL ST.

PHB(E23D5) AND
"E"(002310, 002320, 002350,
002360) AND "L"(002330, 002340)

50% 50%
04-SOL-29-
PM 2.54
HWY 29 (SONOMA
BLVD) & KENTUCKY ST.

"L"(002522, 002532, 002552,
002562)
50% 50%
04-SOL-29-
PM 2.61
HWY 29 (SONOMA
BLVD) & OHIO ST.

PHB(E23D2) AND
"E"(002610, 002620, 002650,
002660) AND "L"(002630, 002640,)

50% 50%
04-SOL-29-
PM 2.75
HWY 29 (SONOMA
BLVD) & ALABAMA ST.

PHB(E23D3) AND
"E"(002720, 002730, 002760,
002790 ) AND "L"(002740, 002770)

50% 50%
04-SOL-29-
PM 2.94
HWY 29 (SONOMA
BLVD) & ILLINOIS ST.

PHB(E23D4) AND
"E"(002924, 002934, 002964,
002994) AND "L"(002944, 002974)

50% 50%
04-SOL-37-
PM8.3
EB HWY 37 & WILSON
AVE. ONRAMP

RRFB (E23DD) AND
"L"(007982, 008042)
33% 66%
04-SOL-37-
PM8.3
WB HWY 37 & WILSON
AVE. ONRAMP
"L"(008292, 008272) 33% 66%
04-SOL-37-
PM8.3
WB HWY 37 &
SACRAMENTO ST.

OFFRAMP
"L"(08336, 08356, 008396 ) AND
"G"(008376)
33% 66%
04-SOL-29-
PM 1.45
HWY 29 (SONOMA
BLVD)& RYDER ST.

RRFB(E23DB) AND "E"(001450,
001460, 001470, 001480)

50% 50%
04-SOL-29-
PM 1.641
HWY 29 (SONOMA
BLVD)& SOLANO AVE.
"P"(EB013) AND
"E"(001611, 001621, 001631,
001641)
50% 50%
04-SOL-29-
PM 1.92
HWY 29 (SONOMA

BLVD) & CURTOLA
PKWY
"P"(EB014) AND "E"(002012,
002022, 002032, 002042, 002052)

40% 60%
04-SOL-29-
PM 3.081
HWY 29 (SONOMA

BLVD) & ARKANSAS
ST.

RRFB(E23DC) AND
"E"(003011, 003021, 003151).
50% 50%
04-SOL-29-
PM 4.727
HWY 29 (SONOMA BLVD)
& LEWIS BROWN DR. / &
EB 37 OFF/ON RAMPS.
"P"(EB018) AND
"E"(004711, 004721, 004731, 004761,
004781).
75% 25%
EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 4 of 6 ends

04-SOL-29-
PM 5.053
HWY 29 (SONOMA BLVD)
& WB 37 OFF/ON RAMPS.
"P"(E23C7) AND
"E"(004822, 004862,004852, 004832).

100% 0%
04-SOL-080 -
PM 3.496
HWY 80 WB & TENNESSEE
ST OFF/ON RAMPS.

RRFB(E23DE) 50% 50%
04-SOL-80 -
PM 4.402
HWY 80 WB & REDWOOD
ST/ FAIRGROUNDS DR.

OFF/ON.
"P"(EB038) AND
"E"(004401, 004431, 004451, 004471)
AND "L"(004491).
40% 60%
04-SOL-780 -
PM 6.012
HWY 780 EB & GLEN
COVE RD RAMPS.
"P"(EB072) AND
"E"(005951, 005971, 005991).
50% 50%
04-SOL-780 -
PM 5.992
HWY 780 WB & GLEN
COVE RD RAMPS.
"P"(EB073) AND
"E"(005982, 006022, 006042, 006062).
50% 50%
04-SOL-29-
PM 2.057
HWY 29 (SONOMA BLVD)
& MAINE ST.
"P"(EB042) AND
"E"(002050, 002060)
50% 50%
04-SOL-29-
PM 2.13
HWY 29 (SONOMA BLVD)
& YORK ST.
"P"(EB043) AND
"E"(002110, 002120)
50% 50%
04-SOL-29-
PM 2.200
HWY 29 (SONOMA
BLVD)& GEORGIA ST.
"P"(EB044) AND
"E"(02190, 02170, 02160, 02180,
,02220, 02240, 02230)

50% 50%
04-SOL-29-
PM 2.27
HWY 29 (SONOMA BLVD)
& VIRGINIA ST.
"P"(EB045) AND
"E"(002230, 002240)
50% 50%
04-SOL-29-
PM 2.474
HWY 29 (SONOMA BLVD)
& FLORIDA ST.
"P"(EB046) AND
"E"(002470, 002480)
50% 50%
04-SOL-29-
PM 2.67
HWY 29 (SONOMA BLVD)
& LOUISIANA ST.
"P"(EB047) AND
"E"(002700, 002710)
50% 50%
04-SOL-29-
PM 2.81
HWY 29 (SONOMA BLVD)
& TENNESSEE ST.
"P"(EB048) AND
"E"(002912, 002922, 002932, 002942)
50% 50%
04-SOL-29-
PM 3.081
HWY 29 (SONOMA BLVD)
& NEBRASKA ST
"P"(EB049) AND
"E"(003031, 003041)
50% 50%
04-SOL-29-
PM 3.161
HWY 29 (SONOMA BLVD)
& MISSISSIPPI/COUCH ST.
"P"(EB050) AND
"E"(003111, 003121)
50% 50%
04-SOL-80
PM 8.107
HWY 80 EB &

AMERICAN CANYON RD/

HIDDENBROOKE PKWY
"L" (007905, 007925, 007945
007965, 007985, 008005, 008025
008045, 008065, 008085)

50% 50%
SOL-80
PM 8.1
HWY 80 WB &

AMERICAN CANYON RD/

HIDDENBROOKE PKWY
"L" (008117, 008137, 008157
008177, 008197, 008217
008237, 008257)
50% 50%

EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 5 of 6 ends

CITY-Owned and Maintained
Electrical Cost Share Billed by the STATE*

Route &
PM
Location Type of Facility Cost Distribution

STATE CITY
04-SOL-29-
PM2.41
HWY 29 @ CAROLINA ST IISNS ( 00241S, 00242S,
00243S, 00244S).

50% 50%
04-SOL-29-
PM0.55
MAGAZINE ST & HWY 29
(SONOMA BLVD)

IISNS (00061S, 00064S). 50% 50%
04-SOL-29-
PM3.71
REDWOOD ST & HWY 29
(SONOMA BLVD)

IISNS(00374S, 00375S). 50% 50%
04-SOL-29-
PM4.03
SERENO DR & HWY 29
(SONOMA BLVD)

IISNS (00403S, 00404S).

50% 50%
04-SOL-29-
PM5.36
MEADOWS DR & HWY 29
(SONOMA BLVD)

IISNS (00551S, 00552S,
00553S, 00554S).
50% 50%
04-SOL-29-
PM5.84
MINI DR & HWY 29 (SONOMA
BLVD)

IISNS (00591S, 00594S). 50% 50%
04-SOL-29-
PM1.00
LEMON ST & HWY 29
(SONOMA BLVD)

IISNS(00101S, 00104S).

50% 50%
04-SOL-29-
PM4.36
HWY 29 (SONOMA BLVD) &

YOLANO DR

IISNS (00428S, 00429S,
00431S, 00432S).
50% 50%
04-SOL-37-
PM10.97
EB HWY 37 OFF / ON RAMPS
& FAIRGROUNDS DR

IISNS(01094S)
50% 50%
04-SOL-080-
PM1.25
MARITIME ACADEMY / WB080
& 029 OFFRAMP

IISNS(00135S, 00139S). 50% 50%
04-SOL-080-
PM4.49
EB HWY 80 & ADMIRAL

CALLAGHAN LN/ REDWOOD
PKWY
IISNS(00440S, 00441S,
00445S).

50% 50%
04-SOL-29-
PM 1.641
HWY 29 (SONOMA BLVD)&
SOLANO AVE.

IISNS(00164S). 50% 50%
EXHIBIT A 04-SOL-29/37/80/780-PMVar

Page 6 of 6 ends

04-SOL-29-
PM 2.057
HWY 29 (SONOMA BLVD) &
MAINE ST.

IISNS(00205S, 00206S) 50% 50%
04-SOL-29-
PM 2.200
HWY 29 (SONOMA BLVD) &
GEORGIA ST.

IISNS(00221S, 00222S). 50% 50%
04-SOL-29-
PM 2.474
HWY 29 (SONOMA BLVD) &
FLORIDA ST.

IISNS(00247S, 00248S).

50% 50%
04-SOL-29-
PM 2.815
HWY 29 (SONOMA BLVD) &
TENNESSEE ST.

IISNS(00291S, 00922S,
00293S, 00294S)

50% 50%
04-SOL-29-
PM 3.081
HWY 29 (SONOMA BLVD) &

NEBRASKA ST

IISNS(00303S, 00304S).

50% 50%
04-SOL-29-
PM 3.161
HWY 29 (SONOMA BLVD) &
MISSISSIPPI/COUCH ST.

IISNS(00311S, 00312S). 50% 50%
04-SOL-29-
PM 4.727
HWY 29 (SONOMA BLVD) &
LEWIS BROWN DR. / & EB 37

OFF/ON RAMPS
IISNS(00473S,
00476S,00478S)
50% 50%
04-SOL-29-
PM 5.053
HWY 29 (SONOMA BLVD) &
WB 37 OFF/ON RAMPS

IISNS(00485S). 50% 50%
04-SOL-080 -
PM 4.402
HWY 80 WB & REDWOOD ST/
FAIRGROUNDS DR. OFF/ON

IISNS(00440S, 00443S,
00445S)
50% 50%
04-SOL-780 -
PM 6.012
HWY 780 EB & GLEN COVE

RD RAMPS
IISNS(00597S).

50% 50%
04-SOL-780 -
PM 5.992
HWY 780 WB & GLEN COVE

RD RAMPS
IISNS(00602S). 50% 50%

NOTES:
* : CITY shall directly spend for all the expenses stated in the “Basis for Billing” clause except Electrical energy costs which shall be paid by STATE directly to the utility company and thereafter STATE shall seek reimbursement from CITY as per the percentage.

DISTRICT 4 P.O. BOX 23660, MS1A | OAKLAND, CA 94623-0660 (510) 286-5900 | FAX (510) 286-6301 | TTY 711 www.dot.ca.gov December 10, 2024 Mr. Andrew Murray City Manager City of Vallejo 555 Santa Clara Street Vallejo, CA 94590 Dear Mr. Murray, Thank you for meeting with Caltrans on December 9, 2024 regarding your comments on the Pavement Rehabilitation project on State Route (SR) 29/Sonoma Boulevard from I-80 to Napa County (EA 04-2Q520). The purpose of this project is to preserve and extend the service life of 24 lane miles of the existing pavement and add complete streets elements to enhance the use, safety and comfort for all users. Consistent with Caltrans and the City plans, dedicated bike ways, curb extension at intersections, sidewalks, pedestrian crosswalks, signage, and landscaping along Sonoma Boulevard will encourage more walking, improve mobility for pedestrians and bicyclists, and increase connectivity to key destinations and active transportation networks. As a part of the Right-of-way and Utility Certification process and in order for the California Transportation Commission (CTC) to allocate $30.6 million of State Highway Operation and Projection Program (SHOPP) funds in January 2025, Caltrans requests the City to execute the Cover Agreement at the next Council meeting on December 17, 2024. Caltrans understands concern over standard clauses in the Cover Agreement and is committed to consult and coordinate with the City to address any issue that might arise during and after the construction, specifically: Caltrans determines that adjusting the manhole or valve covers were no longer feasible, Caltrans will consult with the City to determine appropriate resolution within a reasonable time frame, as required by Section 680 of the California Streets and Highways code. In reference to Article 5 of the agreement regarding compliance with Caltrans standards, Caltrans conducted engineering studies during the project design Mr. Murray, City ManagerDecember 10, 2024Page 2phase, observedtypical standard specification for covers in its , and does not anticipate any reason to not be able to adjust covers for this project.Article 10 of the agreement affirms that Caltrans will be responsible for performing and covering the cost of manhole and valve cover adjustments, if the City elects to have Caltrans perform the work. Therefore, Caltrans anticipates no work by the City nor the necessity of a liability determination for this project. Caltrans values the partnership with City of Vallejo and looks forward to successful and timely completion. If you have any questions, please feel free to contact me or Ambreen Ansari, Project Manager Solano County, at (510) 812-2946 or by email [email protected],DINA A. EL-TAWANSYDistrict Director

Mr. Murray, City Manager December 10, 2024Page 3 bc: Doanh Nguyen Deputy District Director, Project & Program Management Julie McDaniel Deputy District Director, Right of Way and Land Surveys Wajahat Nyaz Deputy District Director, Design Rui (Ricky) Gao District Division Chief, Project & Program Management District Office Chief, Airspace, Utilities, Sindhu Kurup Regional Project Manager, Solano County

ACTION ITEM 9.A.

DATE: December 17, 2024
TO: Mayor and Members of the City Council
FROM: Michael Nimon, Economic Development Director
SUBJECT: ADOPT A RESOLUTION ADOPTING THE CITY OF VALLEJO ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR 2024-2030

RECOMMENDATION
Adopt a Resolution adopting the City of Vallejo Economic Development Strategic Plan for 2024-2030.

REASONS FOR RECOMMENDATION
The City’s current Economic Development Strategy was prepared 12 years ago and needed to be updated.

Since the prior plan was drafted, the COVID-19 Pandemic hit and affected communities throughout the nation and the economic landscape has changed drastically on a local, regional, state, and national level. The American Rescue Plan Act funding, ARPA, was implemented in order to provide a unique opportunity for state and local governments to make strategic investments in long-lived assets, rebuild reserves to enhance financial stability, and cover temporary operating shortfalls until economic conditions and operations normalize. The City of Vallejo leveraged the ARPA funding opportunity to invest in a long-term economic future to create a new community vision reflective of the new post-COVID reality. This Economic Development Strategic Plan document defines the new vision and steps towards reaching it, reflective of two years of analysis, community outreach, stakeholder input, and forward-looking best practices.

BACKGROUND AND DISCUSSION
The City of Vallejo's last Economic Development Strategy was prepared in 2012. At that time, the City Council adopted the plan to proactively respond to the financial impacts of the 2008 downturn, engage the local community of stakeholders and plan for improved Economic Development programs for the years after the City's bankruptcy.

Since the ED Strategy adoption, many circumstances have changed in Vallejo and beyond. Most recently, the arrival of the Covid-19 Pandemic has affected our local economy drastically. The Federal government recognized the impact to economies at the local level and adopted the Legislature adopted the American Rescue Plan Act, ARPA to assist in pandemic recovery. Staff identified a need for the updated Economic Development Strategic Plan to respond to changes in economic conditions and to help implement the top priority of the Council – Economic Development.

On September 28, 2021, the City Council allocated the first tranche of the ARPA funds to 12 general projects. $1,300,000 was allocated to Economic Development Efforts under project number MY2208. These funds are used for a variety of ED efforts including an Economic Development Strategic Plan downtown facade improvements, business attraction and retention, small business grants and other projects to provide economic support to businesses. The $1.3M was allocated into five buckets to maximize ED’s efforts. $400,000 was allocated to the Economic Development Strategic Plan with the separate $200,000 allocated for implementation.

In compliance with ARPA grant timelines requirements, and as permitted per City policy related to the hiring of consultants with specialized skills, staff recommended and Council approved a contract with EFA (Dr. Robert

Date: December 17, 2024
Subject: ADOPT A RESOLUTION ADOPTING THE CITY OF VALLEJO ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR 2024-2030

Page 2 ends

Eyler as principal), to prepare a new Economic Development Strategy (Plan) for the City of Vallejo. The Plan includes a community outreach plan, research/demographic information of existing conditions, and an outline of policy to improve the Vallejo economy. The Plan is based on facilitation of socially and fiscally equitable community engagement and includes implementation strategies and identification of pilot projects to kick off Economic Development-supportive initiatives over various timeframes. In order to ensure the Plan value is maximized and quantifiable, the document includes measurable/accountable activities with responsibility for implementation.

Staff provided an update to Council on September 13, 2022, and finalized the Communication Plan portion of the Economic Development Strategic Plan. During the 2022 through 2024 timeframe, the Consultant completed the tasks that include the databook (analysis of Vallejo and other areas for comparison), community outreach (hosted three public community meetings and presented to the Economic Development Commission), and formulated final action steps, key performance indicators, established tracking methodology to maximize the value of the plan, and created an implementation program for subsequent efforts and funding amounts to ensure the City’s economic development goals are achieved. As part of this effort, the Plan team in collaboration with Economic Development staff held three town hall meetings to solicit public input with meetings held in various locations throughout the City. The resulting implementation program is broken into two 3-year cycles, with cycle 1 focused on short-term (through 2027) and cycle 2 focused on longer term (through 2030).

FISCAL IMPACT
Approval of the City of Vallejo Economic Development Strategic Plan 2024-2030 will have no impact on the City’s General Fund.

ENVIRONMENTAL REVIEW
This action is exempt from CEQA because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.

ATTACHMENTS

1. Resolution Adopting the Economic Development Strategic Plan and First Amendment_CAO Stamp

2. Exhibit A - Vallejo Economic Development Strategic Plan 2024-2030

CONTACT
Michael Nimon, Economic Development Director (707) 648-4109 [email protected]

RESOLUTION NO._______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO ADOPTING

THE CITY OF VALLEJO ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR 2024-2030
WHEREAS, the City’s last Economic Development Strategy was prepared in 2012 and needs to be updated; and
WHEREAS, on May 10, 2022, the City Council allocated $400,000 in ARPA funding towards the development of an updated Economic Development Strategic Plan; and WHEREAS, Economic Forensics and Analytics, Inc., with Dr. Robert Eyler as principal, was hired to prepare a new Economic Development Strategy (Plan), which Plan has been completed and has been presented to the City Council for adoption; and WHEREAS, the Plan includes a community outreach plan, research/demographic information of existing conditions, and an outline of policy to improve the Vallejo economy. The Plan is based on facilitation of socially and fiscally equitable community engagement and includes implementation strategies and identification of pilot projects to kick off Economic Development-supportive initiatives over various timeframes; and WHEREAS, to ensure the Plan value is maximized and quantifiable, the Plan includes measurable/accountable activities with responsibility for implementation.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the City of Vallejo Economic Development Strategic Plan for 2024-2030, attached hereto as Exhibit A and incorporated herein by reference.

Adopted by the Council of the City of Vallejo at a regular meeting held on December 17, 2024 with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________________________________________ ROBERT H. MCCONNELL, MAYOR
ATTEST:
________________________________________________________________ DAWN G. ABRAHAMSON, CITY CLERK
City of Vallejo  2023 Economic Development Strategic Plan City of Vallejo
Economic Development Strategic
Plan
The City of Vallejo in partnership with
Economic Forensics and Analytics, Inc.

Chabin Concepts, Inc.

December 2024 – DRAFT
City of Vallejo  2024 Economic Development Strategic Plan  Page 1 Contents
Acknowledgments.....................................................................................................................................................2 Executive Summary ..................................................................................................................................................3 Strategic Planning: July 2022 to November 2024 ...............................................................................................5 Strategy Forward in Two Cycles ..........................................................................................................................6 Current Situation and Outlook: Data and Forecasts ..........................................................................................7 Peer and Aspirant Communities..........................................................................................................................9 Retail Leakage Overview ....................................................................................................................................10 Opportunities: Targeted Industries ...................................................................................................................11 Communications Strategy .................................................................................................................................12 Measuring Success: Key Performance Indicators .............................................................................................12 Economic Development Goals: Details, Cycle 1................................................................................................13 Economic Development Goals: Details, Cycle 2................................................................................................18 Resource Needs: Budget for Vallejo Economic Development Department ....................................................19 Strategy Details .......................................................................................................................................................21 How to Think about a City Economy .................................................................................................................22 The Roadmap: Strategy Implementation .........................................................................................................24 Vallejo’s Economy ..............................................................................................................................................33 Vallejo’s Residents and Housing........................................................................................................................35 Vallejo Targeted Industries ................................................................................................................................45 Leakage Analysis: Summary ..............................................................................................................................51 Peer and Aspirant Cities .....................................................................................................................................53 Key Performance Indicators ..............................................................................................................................58 Communications Plan.............................................................................................................................................60 What We Learned: Discovery Overview .............................................................................................................60 Community Outreach Strategy, Cycles 1 and 2 ................................................................................................62 Future Issues That Affect Vallejo ............................................................................................................................73 Pilot Projects, Goals and Action Steps ...................................................................................................................74 Recommended Pilot Projects and Rationale ....................................................................................................74 Budget for Citywide Economic Development Action Items Through 2030 .....................................................88 Appendix..................................................................................................................................................................90 The Vallejo Databook .........................................................................................................................................90 Facilitating Community Outreach, Voice, and Expectations ...........................................................................94 Strategic Planning Principles...........................................................................................................................102 Data Sources and References ...............................................................................................................................104 The Research Team...............................................................................................................................................105 City of Vallejo  2024 Economic Development Strategic Plan  Page 2

ACKNOWLEDGMENTS
Our team thanks all residents and businesses that participated in this project and, especially the following City of Vallejo officials and staff.
City of Vallejo, City Council (titles are as of March 2024) oMayor Robert McConnell
oDistrict 1 Rozzana Verder-Aliga
oDistrict 2 Diosdado "JR" Matulac
oDistrict 3 Vice Mayor Mina Loera-Diaz
oDistrict 4 Charles Palmares
oDistrict 5 Peter Bregenzer
oDistrict 6 Cristina Arriola
City of Vallejo, Economic Development Commission, including commissioners oThomas Barbeiro
oRoberto Hernandez
oDwight Monroe, Jr. (Vice Chair as of July 2024)
oCalvin Harrell
oL. Alexander Matias
oNicole Loufas (Chair as of July 2024)
oMai-Ling Garcia
City of Vallejo, City Manager’s Office;
oAndrew Murray, City Manager
oMichael Malone, Immediate Past City Manager
oGillian Haen, Assistant City Manager
oSharon Lund, Community Engagement Manager
City of Vallejo, Economic Development Department
oMichael Nimon, Economic Development Department Director oAnnette Taylor, Senior Community Development Analyst
This plan and our efforts would not have been possible without the American Rescue Plan Act (ARPA) funding available to the City of Vallejo from 2021 to 2024.

City of Vallejo  2024 Economic Development Strategic Plan  Page 3

EXECUTIVE SUMMARY
Vallejo’s economy has unique economic development assets, many of which are similar to those of other Bay Area urban suburbs. Vallejo also has some challenges that are similar to those of other cities and some challenges that are unique to Vallejo. The consulting team developed this Economic Development Strategic Plan for directing economic development activities in Vallejo from 2025 to 2030. This plan was funded by the American Rescue Plan Act (ARPA) grant program. Part of this effort was to identify pandemic-driven impacts on Vallejo’s economy and suggest how the City of Vallejo can address those impacts. The plan should be renewed or reconsidered based on changes locally and globally, modified as economic development staff, city managers, city council members, and Vallejo every three (3) years starting in 2027. This plan has goals and action steps divided into two “cycles”, with a review after three years.
Cycle 1 focuses on achieving foundational goals: creating more visibility, jobs, activity, and value in Vallejo
In Cycle 2, after Cycle 1’s foundation steps, is aiming for future growth, and attracting and expanding business.

Economic change in Vallejo will take time. After the Mare Island Naval Shipyard closed in 1996, the city fundamentally changed and remains under that change’s shadow. Since then, three recessions and municipal finance concerns have all affected Vallejo’s ability to stand up and stand out positively from other Bay Area cities. Expectations must start with envisioning Vallejo as a relatively open canvas with many possibilities to benefit from what is unique about the city's economy and its location and assets, as well as a place making up gaps in regional competitiveness.

City of Vallejo  2024 Economic Development Strategic Plan  Page 4 The City of Vallejo’s Economic Development Department must continue to partner with and produce solutions for current employers and landowners to expand jobs and activity on Mare Island, North Vallejo, and the downtown and waterfront areas as core commercial areas. Our recommended action steps and strategic goals focus on moving Vallejo closer to “top of wallet” in terms of how current and prospective employers and site selectors see Vallejo as a place to invest resources. If these goals are achieved, the economic gains in core commercial areas will spill over to other parts of Vallejo.

Shifting perceptions about doing business in Vallejo requires enhanced communications, regardless of social concerns and recent history, beginning with changes in Vallejo Economic Development Department and overall citywide communications. These changes include how communication assets citywide—with the help of regional partners, including chambers of commerce and current employers—are expanded and employed. The stories about optimistic but realistic aspects of Vallejo’s economy need to be told as critical steps in building more confidence.

These stories help prospective businesses and investors to view Vallejo as a long-term opportunity.

Vallejo has grit, which bodes well for the challenges it will face in the short term. Vallejo has to embrace the process of staying gritty, resilient, and regionally unique in positive ways. This plan is meant to guide that journey.

City of Vallejo  2024 Economic Development Strategic Plan  Page 5 STRATEGIC PLANNING: JULY 2022 TO NOVEMBER
2024
Economic Forensics and Analytics, Inc. (EFA) was the
consultant on this plan. We collected data as available to describe Vallejo’s economy, demography, and potential
future and to understand Vallejo’s economy more
completely. We engaged with and interviewed over 200
employers, residents, elected officials, city staff, regional chamber of commerce members and staff, and other
stakeholders in Vallejo’s economy. Our planning
principles focus on providing action items with the
highest probability of achieving our recommended goals
for the city’s economic development staff. These data, as a whole, helped to inform recommended action items.

The action items for Cycle 1 prepare a foundation
through business retention and expansion for
subsequent business attraction efforts (Cycle 2) through June 2030. The action steps mix support activities and expanded communications, using funding from the American Rescue Plan Act (ARPA) and various other sources to invest in visible change through economic development and preparing for site selectors and new businesses to turn their gaze toward Vallejo as a place open for business. Our strategic planning tasks generated the goals above and associated action items below. A key outcome of these efforts is placemaking: Vallejo is becoming a place to live, work, and play unique in the positive experiences of residents, commuting workers, and visitors. This strategy is focused on increasing Vallejo’s economic activity and presence as a place to do business in the Bay Area. Utilizing its unique geography and assets, including a focus on placemaking activities and better use of city-owned properties downtown, motivated landowners and businesses on Mare Island, and residents looking for change, Vallejo needs to communicate these differences. That communication should be focused TASK 1 TASK 2 TASK 3 TASK 4
Produced the Vallejo
Databook (EFA data
analyses of Vallejo
and other areas for
comparison)
Facilitated community
outreach and voice
and expectations
(Communications
Plan for EFA Project)
Finalized plan: Final
action steps, key
performance
indicators, and
tracking progress
Completed and
presented the final
Economic
Development
Strategic Plan.

WHAT IS ECONOMIC DEVELOPMENT?

A SET OF ACTIONS TAKEN BY AN

ORGANIZATION TO INCREASE SALES

REVENUE, JOBS, COMMERCIAL SPACE

OCCUPANCY, SALES AND TRANSIENT

OCCUPANCY TAX REVENUES, PROPERTY

VALUES, AND GENERAL AWARENESS OF
DOING BUSINESS IN THE COMMUNITY.

ECONOMIC DEVELOPMENT EFFORTS ARE

ONE PART OF BROADER COMMUNITY

DEVELOPMENT EFFORTS AND GROWTH

STRATEGIES
City of Vallejo  2024 Economic Development Strategic Plan  Page 6 on real-world examples and have local businesses act as ambassadors for the message of why they located or grew here.

STRATEGY FORWARD IN TWO CYCLES
This plan’s action items are based on two planning cycles over six (6) fiscal years. Specific actions, grants, and partnerships will change based on opportunities and
shifting economic and social environments in which Vallejo finds itself in 2030. Cycle 1 (2025 to 2027) establishes partnerships, pilot projects, and a communications pattern to present Vallejo to a worldwide audience as a place to do business. Cycle 1 also links workforce and economic
development efforts, preparing Vallejo beyond current
projects, such as those on Mare Island and North Vallejo.

Cycle 2 (2028 to 2030) expands economic development
activities to more aggressive business attraction efforts, especially in downtown Vallejo moving east. Below are key strategic goals and example action items for Cycle 1:

Plan Goals and Key Actions: Cycle 1

1. Execute pilot projects using remaining American Rescue Plan Act (ARPA) funding

2. Support major revitalization and planning efforts in Downtown, Waterfront, and other areas parallel to private-sector efforts (Mare Island and other important corridors in Vallejo)

3. Work with the City of Vallejo Planning, Finance Department, and Central Permit Center on ways to streamline development, increase city revenues, and enhance placemaking

4. Develop a Communications and Marketing Plan: Engage with the community, regional partners, and regional media on Vallejo-based business stories

5. Create a vision for city-owned assets as part of broader placemaking and infill development efforts alongside citywide capital-facilities planning

6. Seek and apply for as much nonprofit and government funding as possible to support economic and workforce development efforts across Vallejo as a strategic partner Detailed action items for each goal above are provided below, with links to specific tasks in the “Implementation Matrix” based on the detailed goals below in the “Strategic Details” section.

WHY TWO CYCLES?VALLEJO NEEDS TO BUILD

A FOUNDATION TO TRULY MARKET THE CITY
AS A PLACE TO DO BUSINESS. CYCLE 1’S

GOALS FOCUS ON BUILDING THAT

FOUNDATION WHILE PUBLIC SAFETY

CONCERNS, ROADWAY MAINTENANCE,

BROADBAND EXPANSION, AND REDUCED

HOMELESSNESS CONTINUE TO BE
ADDRESSED. CYCLE 2 BUILDS ON THOSE

MOVEMENTS FORWARD, ASSUMING THERE IS
PROGESS THAT CHANGE THE CITY’S IMAGE TO
ATTRACT NEW AND EXPANDING BUSINESSES.

City of Vallejo  2024 Economic Development Strategic Plan  Page 7 CURRENT SITUATION AND OUTLOOK: DATA AND

FORECASTS
Our team’s look at Vallejo’s economy and its residents yielded benchmarks, key insights, and forecasts for Vallejo’s demographics, economic activity, housing, and broader social and political issues to 2027 and, in some cases, through 2030. Users of this strategic plan should see these data as context for the plan’s action items that help define key performance indicators (KPIs) for the City’s economic and demographic evolution to 2030. Boxed comments (“What These Data Tell Us”) provide a quick way of understanding how data connect to the recommended goals and actions. Key findings include (data are the latest available as of December 2023, with a detailed data and forecast section in the Plan Overview):

The City Economy
Vallejo’s residents and employers remain behind the rest of the Bay Area, where efforts that lead to more employers, more workforce development and economic activity can help Vallejo become a success story and attract more targeted industries over time.

Key Observations:
From 2010 to 2023, Vallejo has had consistently slower job growth and higher unemployment than other cities in Solano County . Source: California EDD Labor Force Data In 2022, employment at businesses in Vallejo totaled approximately 43,310 workers; job growth for Vallejo was 0.5% higher in 2022 than in 2021 (Solano County jobs grew 4.4% in 2022). Sources: California EDD Industry Employment, IMPLAN® (subscription), Author’s Calculations
Between 2010 and 2022, on average, about 25% of those who work in Vallejo also live there; thus, approximately 75% of those who work in Vallejo live elsewhere.

The City’s Residents and Housing
Vallejo’s households and housing stock are changing slowly and remain behind regional areas when compared. New sources of municipal revenue, more infill development and revitalization in main commercial corridors can change Vallejo’s regional competitiveness and the job opportunities for Vallejo’s residents and business owners.

FROM 2010 TO 2022, 83%
TO 86% OF VALLEJO

RESIDENTS WHO WORK

LEAVE VALLEJO FOR
THEIR JOB.

City of Vallejo  2024 Economic Development Strategic Plan  Page 8 Key Observations:
Vallejo is more ethnically and racially diverse than any other community in Solano, Napa, Sonoma, or Marin counties (the North Bay)Source: Census Bureau (American Community Survey)
Median household income (MHI) in Vallejo grew from $62,325 in 2011 to $78,243 in 2021 (Vallejos’ MHI was approximately $7,500 below the state average in 2021). Source: Census Bureau (American Community Survey)
As of January 2023, Vallejo’s population has fallen since 2018, whereas Solano County’s population has fallen only since 2020. Vallejo is estimated to have 121,658 residents in 2023, compared with 125,791 in 2020 (a reduction of -3.3%), making up 27.4% of Solano County's residents. Sources: California Department of Finance, Reports E-4 or E-5 and Census Bureau (American Community Survey)
Vallejo has an estimated 45,715 available housing units as 2023 ended, a net increase of 192 units since 2020, approximately 27.4% of housing units in Solano County. Sources:

California Department of Finance, Report E-8 Compared with the North Bay, Vallejo consistently had a high poverty rate , with a rate of 11.0% in 2021 (1.3 percentage points below the state average). The poverty rate is based on the federal poverty level for the country as a whole. Source: Census Bureau (American Community Survey) Forecasts (as of April 2024) to 2027 (Author’s Calculations) Forecasts to 2027 suggests a slower moving economy and challenges for Vallejo’s residents and employers in terms of competition for jobs and customers. Infill development to shape Vallejo’s downtown and waterfront areas and create more placemaking will prepare Vallejo’s economy with more assets and a more competitive position toward 2030. The national and state economies are projected to grow between 1.9 and 2.3 percent, with some increases in unemployment and slower income growth until 2026. Based on data and forecasts in August 2024, a recession is not likely before 2025, as inflation that increased sharply in 2021 and 2022 subsequently fell in 2023 and 2024, and is forecasted to continue descending to 2027. Increases in interest rates slowed down in 2023. Interest rates are forecasted to fall through the end of 2024, based on inflation continuing to fall as well.
Geopolitical and labor force concerns are unlikely to reduce general risk globally or the local labor cost to employers after 2024.
Interest rates, regardless of forecasted reductions, are likely to remain relatively high to 2027 compared to 2010 to 2020 interest rates.
The Bay Area economy overall is likely to grow more slowly until 2027 than it did in the pre- pandemic period (2011 to 2019) due to a combination of residents leaving the region, rising City of Vallejo  2024 Economic Development Strategic Plan  Page 9 costs of living and housing, slow job-market recovery for workers in service industries focused on tourism and inbound commuters, and reductions in business/conference travel to the core urban areas.
Current projects, such as the green empowerment zone (GEZ), biotech corridor, and eventual implementation of the Solano County Fairgrounds development all utilize Vallejo’s regionally unique geography and assets to move toward more economic activity and social mobility for Vallejo’s residents. This includes the waterfront and making Vallejo’s connection to San Pablo and San Francisco bays more of an economic development asset (wind energy and maritime activity, especially with Cal Poly San Luis Obispo’s merger with Cal Maritime).

PEER AND ASPIRANT COMMUNITIES
Best practices in economic development and
strategic planning include looking at other areas,
organizations, and businesses/industries to which
the local area either is a peer or aspires to become
similar. Our team used a set of quantitative and
qualitative criteria to create three choices for each
category.
 Clovis, CA (Peer)
 Allentown, PA (Peer)
 Simi Valley, CA (Peer)
 Concord, CA (Aspirant)
 Palm Bay, FL (Aspirant)
 Round Rock, TX (Aspirant)
Half of these choices are in California (where state-level incentives and policies are similar), and the other half are outside California. The methodology used to determine these peers and aspirants included recent population estimates, recent economic performance (jobs and income growth), the local population’s ethnic and racial diversity, and proximity to a significant urban center. Those peer and aspirant cities include (clicking on city website picture links to that city’s economic development website) the following choices.

TOOLS TO FOLLOW PEER/ASPIRANT CITIES:

SUBSCRIBE TO LOCAL BUSINESS MEDIA;

ATTEND ONE VIRTUAL OR PHYSICAL EVENT IN
THOSE AREAS;

SET-UP GOOGLE ALERTS FOR ECONOMIC

DEVELOPMENT EVENTS/CHANGES IN THESE
CITIES/REGIONS;

ONCE A YEAR PROVIDE AN UPDATE ON WHAT

THESE CITIES ARE DOING THAT IS NEW AND

WORKING
City of Vallejo  2024 Economic Development Strategic Plan  Page 10

RETAIL LEAKAGE OVERVIEW
Vallejo’s fiscal position would improve to the extent the retail leakage could be minimized.

Retail leakage happens when Vallejo’s residents spend more on goods and services than Vallejo’s employers can provide in terms of value for specific retail industries.

Our town-hall meetings with Vallejo residents, focus group meetings, and interviews with local business leaders suggest crime is a key reason Vallejo residents may shop outside the city, and local merchants face additional costs. Perceptions, as much as reality, of shoplifting and other crime problems (car break-ins within shopping areas) can reduce local demand and also drive retailers away.

Figure 1: Estimated Retail Leakage and Surplus, Q4 2023, Thousands of Current Dollars ($000), Sources: HdL provided by the City of Vallejo, Bureau of Labor Statistics, and California Department of Tax and Fee Administration (CDTFA) and Census Bureau.
$(70,516)
$19,064
Auto Repair Shops
Grocery Stores
Home Furnishings
Service Stations
Fast-Casual Restaurants
Used Automotive Dealers
Transportation/Rentals...

Automotive Supply Stores
Family Apparel
Department Stores
Variety Stores
Contractors
Specialty Stores
Electronics/Appliance Stores
Quick-Service Restaurants
Drug Stores
Leisure/Entertainment
Casual Dining
Convenience Stores/Liquor
Light Industrial/Printers
Heavy Industrial
Cannabis Related
Building Materials
Discount Dept Stores
New Motor Vehicle Dealers
$(75,000) $(60,000) $(45,000) $(30,000) $(15,000) $- $15,000 $30,000 Taxable Sales Industry
Surplus (Leakage) in Thousands of 2023 Dollars
City of Vallejo  2024 Economic Development Strategic Plan  Page 11 OPPORTUNITIES: TARGETED INDUSTRIES
Targeted Industries
Construction Advanced
Manufacturing
Software/
Film
Tourism Transportation Wholesale
Trade
Best practices in economic development strategies include a focus on specific industries that make the local area unique in its job opportunities and
economic identity, as well as suit the local area’s unique assets and resources by matching available and future
regional workers, as more employers are attracted to and grow in the region. Our list for Vallejo was compiled
based on quantitative and qualitative criteria with a site selector’s lens from over 100 possibilities. The
requirements included Vallejo’s physical assets (location, waterfront), challenges (access to interior areas versus undeveloped spaces), current economic conditions by
industry, and regional partnerships and resources.

Vallejo’s opportunity zones (see map) and other federal and state-level incentives may be attractive to businesses in these industries, which have not previously considered Vallejo a place to do business. These industry choices also reflect our discussions with Vallejo’s residents and workforce development partners, a renewed focus on supporting current educational institutions and regional chambers, and engagement in grant writing to augment available resources to support more employers. As these industries create jobs and raise incomes in Vallejo, more professional and medical services would be drawn to the local population, and workers would come to Vallejo daily as employees and commuters. Broader restaurant and retail options would also follow growth through “multiplier” effects. Retailers will come as Vallejo’s economy grows, assuming wages and median household incomes increases translate into more demand for services and consumer goods. New or expanding hotels will locate in Vallejo from regional demand. Unique events with Vallejo-grown talent can further increase visibility and demand for overnight stays. Regional partnerships on tourism strategies helps attract new hotels and retail over time, catering to a broader customer base and utilizing Vallejo’s links to the greater Bay Area (ferry terminal and proximity to larger population centers versus other parts of the North Bay). Water availability, especially for manufacturing businesses, will be a key asset for this strategy to work. Vallejo will compete with other regional destinations for water- reliant businesses, especially as climate change continues and water policies from the State evolve.

Source: https://maps.gis.ca.gov/hsr/map.html,
Opportunity Zones in blue, Vallejo in the circled area

City of Vallejo  2024 Economic Development Strategic Plan  Page 12 COMMUNICATIONS Strategy
Our team’s outreach efforts during this planning process informed both our team and Vallejo’s residents and businesses about economic development strategic planning in Vallejo. We took all we learned and generated a communications strategy for Vallejo’s Economic Development Department.

Communications, transparency, and access to information are vital aspects of economic development efforts. Vallejo has multiple assets and media channels available for communicating about Vallejo as a place to do business, as well as stories to tell that exemplify working and owning a business in Vallejo. More communication is better than less, and unique stories are best.

Understanding what information different audiences need is critical to success in communications generally (a best practice in marketing). Providing as much timely information as possible about what is happening monthly, pilot projects using ARPA funds, assisting efforts on Mare Island, Blue Rock Springs, along the Waterfront, Downtown, and other significant development efforts, and new businesses coming to Vallejo should all work with regional chambers and Visit Vallejo.

Together, they can create and communicate about an ecosystem of business support and opportunities as well as victories and challenges in which the Vallejo Economic Development Department (EDD) is leading Vallejo to solutions. Our communications plan started with data gathering by engaging with different audiences in interviews, surveys, and residential gatherings.

This helped shape action items during this plan’s Cycle 1 . Our team also provided an initial communications plan to reach out to the community during our planning process. That plan was completed in June 2024.

MEASURING SUCCESS: KEY PERFORMANCE

INDICATORS
Key Performance Indicators (KPIs) help an organization track progress toward goals. In this economic development strategic plan, the KPIs recommended below help measure how economic development staff can directly or indirectly measure Vallejo’s economy. As part of our communications plan and outreach, interviews and group gatherings with Vallejo's residents and businesses revealed a desire for more transparency about Department activities and progress. As part of our listening to those perspectives, these KPIs (which should evolve based on changes and discussion about monitoring progress) provide a quarterly lens for the public.

Think of the KPIs as a tracking device for progress and a way to communicate to all stakeholders as part of a broader communications plan for Vallejo Economic Development Department about progress toward larger goals and simply what activity has taken place and borne fruit as actions are taken per the Roadmap above. It is important to see these KPIs as measuring economic development activities and not the progress of Vallejo socially. A citywide dashboard should be developed to monitor educational, infrastructure investment, workforce and economic development progress as a whole, where these KPIs may inform that dashboard.

City of Vallejo  2024 Economic Development Strategic Plan  Page 13 KPIs and Goals (subject to change based on annual review) Key Performance Indicators (KPIs) Specific Goals
•Unemployment rate
•Taxable sales (aggregate)
•Change in jobs for Vallejo’s
employers
•Median household income
•Median home values
•Assessed value of property
•Retail vacancy
•Office vacancy
•Residential vacancy
•City population
•Total business counts and mix
•Hotel occupancy rate (Occ Rate)
and average daily rate (ADR)
•Grant funding deployed
•Private-sector investment in
commercial spaces
•Periodic business retention survey
•Business outreach program to maintain relationships
and share support resources with local businesses
•Invest in data needs to track economic performance and provide data for the business community
•Marketing (website, business journals, business outreach efforts, industry magazines, videos, billboards, etc.)
•Right-sizing business attraction incentives if they exist or developing such incentives as possible
•Initiate a shop-local campaign
•Effort to reach new developers to share sales tax point of contact reporting forms to ensure the city captures sales tax from construction on-site
•Maintain a list of city-owned properties (e.g., Location One is an online service that helps cities to inventory and market their properties to businesses, site selectors, and brokers.)
•Continued collaboration with local and regional partners (chambers, CCRC, Solano EDC, Vallejo First, etc.)
ECONOMIC DEVELOPMENT GOALS: DETAILS,
CYCLE 1
It is essential to recognize that it may take the rest of this decade for Vallejo to become more regionally competitive versus Vallejo’s neighboring cities and counties. The planning horizon in this study is from January 2025 to June 2030. This plan, its goals, and action items should be considered over a 20-year horizon. Vallejo’s economy needs fundamental changes parallel to social stability to rise regionally as a first choice to locate or grow a business. Existing assets and land are critical to leveraging and controlling new development and placemaking efforts for Vallejo toward 2030.

The following proposed action items are subject to available funding and will need additional staff time to both achieve and maintain. The initial prioritization of projects will be based on applicability to and compliance with ARPA-related grant funding, subject matter nexus, and grant deadlines. The remaining implementation will be subject to available resources, guided by the City of Vallejo leadership and its budget prioritization. We believe that these number goals (with City of Vallejo  2024 Economic Development Strategic Plan  Page 14 bulleted action steps) are pragmatic, measurable corrective responses to improve Vallejo’s economy; some examples are provided in italics, and targeted industry links are in bold (as shown below, these include: (Construction, Advanced Manufacturing, Software/Film, Transportation, Tourism, Wholesale).

Cycle 1

1. Execute pilot projects using remaining ARPA funding (approx. $355,000); examples include:

A. Support Shop-Local Campaign, partnered with Vallejo Chamber of Commerce (All) B. Execute “Pop-up” Events that include citywide events-flea markets, pop-up retail and food truck events, coordinated with other significant events when possible and also aim to increase ferry use at Vallejo Terminal (Tourism) C. Establish and seed revolving loan fund (RLF) or grants for Vallejo-based, small businesses (those that would not qualify for classic business loans or grants) in partnership with financial institutions and non-profit organizations throughout Vallejo and Solano County (link to Solano Economic Development Corporation efforts) (All) D. Support a citywide capital-facilities plan focused on placemaking and catalyzing change in downtown Vallejo and other significant corridors like Broadway, Tennessee and Sonoma Avenue by better management and utilization of city-owned properties augmented by grant opportunities. (Tourism, Construction) E. Obtain the Location One software program to begin an inventory of city properties; Location One is one example of a marketing tool for priority sites and buildings, and should not be considered an all-inclusive way to inventory property.

2. Support major revitalization and planning efforts in Downtown, Waterfront, and other areas parallel to private-sector efforts (Mare Island and other important corridors in Vallejo)
A. Lead Infill development efforts, streamline development process, focus on city-owned properties and partnership with privately-held properties in downtown and waterfront Vallejo, utilize grant funding, creative placemaking activities and more vibrancy for Vallejo merchants (Construction, Advanced Manufacturing, Software/Film, Transportation, and Wholesale).

B. Encourage more public-private partnerships to spur economic development-Blue Rock Springs is an example of a public-private partnership on placemaking and revitalization in Vallejo that illustrates what can happen in downtown Vallejo.

C. Market downtown Vallejo as a cultural, entertainment, and innovation district, connected to and complementing economic activity on Mare Island, western Solano County, Napa County, and across the Bay Area
City of Vallejo  2024 Economic Development Strategic Plan  Page 15 D. Prioritize high tax rate areas (TRAs) as much as possible in terms of new activity (Construction, Tourism, Advanced Manufacturing, Wholesale) and consider potential Community Facilities District (CFD) or Enhanced Infrastructure Finance District (EIFD) boundaries if pursued after Cycle 1 (see Cycle 2 action steps) where rising assessment values for commercial properties provide increase property-tax funding to the City of Vallejo.

3. Work with the City of Vallejo Planning, Finance Department, and Central Permit Center on ways to streamline development, increase city revenues, and enhance placemaking:

A. Encourage a mix of affordable, below-market rate housing units alongside the waterfront and downtown with ferry access living spaces at market rates B. Encourage entrepreneurship, innovation, and small businesses (RLF as an example of engagement)
C. Pursue and utilize a citywide capital-facilities plan to coordinate city-owned properties and their utilization as economic development assets
D. Begin planning for long-term resilience: sea walls for sea-level rise, vehicle miles travelled, greenhouse gases, renewable energy, and seismic safety in new spaces and parcels improved as part of infill development efforts to streamline development process
E. Streamline the process for starting and growing businesses in Vallejo, including “fast- tracking” in terms of lower fees and time to decision, as well as reduced entitlements and processing timelines on commercial permits (Construction, Advanced Manufacturing, Software/Film, Wholesale)

4. Develop a Communications and Marketing Plan: Engage with the community, regional partners, and regional media on Vallejo-based business stories:

A. Build a marketing plan for Vallejo as a place to do business, using chambers as a "working" group, completed before the end of Cycle 1 (June 2027). (All) B. Craft new narratives concerning doing business in Vallejo (may require hiring a firm to augment staff capacity) (All)
C. Encourage and partner on placemaking, community, and unique historical/cultural identity as businesses grow and visitors come to all parts of Vallejo I. Create Vallejo’s “identity”: what makes Vallejo unique and attractive to the world
II. Partner on public events: encourage more events to take place in public spaces, where the City of Vallejo owns the building or land City of Vallejo  2024 Economic Development Strategic Plan  Page 16 III. Encourage Cal Poly, Touro University, and Solano Community College to locate programming in downtown Vallejo, utilizing City of Vallejo property IV. Use arts and entertainment to highlight Vallejo’s past and current artists and define a specific point person at City of Vallejo for as film liaison V. Partner on façade-improvement grants, art installations on public land, organized clean-up days, pre-approved building signs, benches that create a sense of branding as examples
VI. Give priority to construction projects that utilize public spaces as part of their planning or to be purchased from City of Vallejo as part of revitalization D. Provide quarterly updates to city officials on economic development progress and to public in those meetings, through social media, events, and press outlets.

5. Create a vision for city-owned assets as part of broader placemaking and infill development efforts alongside citywide capital-facilities planning A. Utilize citywide capital-facilities plan once completed from pilot project to partner with private sector owners on infill strategies and revitalization of downtown and waterfront and other important corridors in Vallejo (Construction, Advanced Manufacturing, Transportation, Wholesale)
B. Consider the use of local broadband assets using Vallejo’s Internet Provider (VIP) for maintenance and marketing of available spaces, as the City of Vallejo plans and makes decisions on spaces. (Software/Film, Advanced Manufacturing) City of Vallejo  2024 Economic Development Strategic Plan  Page 17

6. Seek and apply for as much nonprofit and
government funding as possible to support
economic and workforce development efforts
across Vallejo as a strategic partner
A. Monitor sites such as www.grants.gov and
www.grantwatch.com to identify federal, state,
and nonprofit funding for economic
development and support (All)
B. Support nonprofit organizations that have
similar goals of supporting new, small
businesses in Vallejo or educational programs
that provide workforce training primarily for
Vallejo residents (e.g., Solano Workforce
Development, Chambers of Commerce (Vallejo,
Black Chamber, Hispanic Chamber, Filipino
Chamber) (All)
C. Additional staff support in Vallejo Economic
Development is needed to support grant work
Recommended Pilot Projects using Remaining ARPA Funding Selected Pilot Projects
These projects create initial action items aimed at achieving goals in this plan. The City of Vallejo, regional chambers of commerce that serve Solano County and Vallejo, Visit Vallejo, and other regional employers and stakeholders must be partners to execute these projects well. The roadmap above shows the conceptual timing for them. In the true sense of a “pilot,” these activities prepare Vallejo for more actions in the future. These pilot projects should focus on Primary (Focus in Year 1 of Cycle 1) Secondary
•Pop-up ferry events; watch for major events and
coordinate with pop-up and use of ferry
•Citywide capital-facilities plan for the City of Vallejo to consider cost reductions and partnering on
placemaking efforts through infill
development/Location One service for inventory of
City property
•Seed a Revolving Loan Fund (RLF) for small business
loans or small business grants
•Shop-local Campaign
•Communications Strategy
•Arts exhibits downtown and along the
waterfront to generate foot traffic for
downtown Vallejo merchants
•Additional security equipment for businesses
•Consider community facilities district (CFD) or
enhanced infrastructure financing district
formation as part of greater revitalization and
infill development to create better placemaking
•Local artists (musical, visual) as partners on
tourism events and initiatives (live music events
with artists from or in Vallejo to draw visitors)
IMPORTANT: MARE ISLAND’S ECONOMIC

DEVELOPMENT AND BLUE ROCK

SPRINGS REPRESENT OPPORTUNITIES
FOR VALLEJO. AS THESE PROJECTS

MOVE FORWARD, EVENTS AND

PARTNERSHIPS WITH DOWNTOWN AND

WATERFRONT MERCHANTS AND
RESTAURANTS ADD TO VALLEJO’S GAINS

FROM VISITORS AND CUSTOMERS
COMING TO VALLEJO. DEVELOPERS ON

MARE ISLAND ARE MOTIVATED AND

VALLEJO SHOULD PREPARE TO GUIDE

AND ACCESS NEW ECONOMIC ACTIVITY

TOWARD OTHER PARTS OF VALLEJO AS
POSSIBLE IN CYCLE 1 TO GENERATE

MORE JOBS AND TAX REVENUES FOR
THE CITY ECONOMY.

City of Vallejo  2024 Economic Development Strategic Plan  Page 18 Vallejo-based businesses, especially those with owners who are Black, Indigenous, and people of color (BIPOC). Diversity is one of Vallejo’s key strengths. These pilot projects should lean into that diversity as a strength before the world.

Source for Photos: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 19 ECONOMIC DEVELOPMENT GOALS: DETAILS,
CYCLE 2
Cycle 2 should build on Cycle 1 completion or major progress to complement broader business attraction and expansion efforts in Vallejo. Assuming Vallejo’s City Council and management agree to move from Cycle 1 to Cycle 2, and resources are available for implementation, the following action items are part of Cycle 2:

Cycle 2:

1. Prioritize business attraction and expansion in downtown and other Vallejo neighborhoods connected to other placemaking efforts underway
A. Continued use and funding of Revolving Loan Fund (RLF) or small business grants B. infrastructure assessment downtown
C. identification of grants to enhance infrastructure and attract businesses with incentives

2. Focus on updating Vallejo’s main business corridors to address pedestrian amenities, landscape, lighting, safety, and curb appeal to support new and expanded business A. Create a Downtown and Waterfront Pedestrian Beautification Plan B. Attain grant funding to implement
C. Implement and identify long term maintenance funding

3. Communicate economic development progress made on Mare Island and in waterfront and downtown Vallejo regionally
A. Partner with developers to enhance communications on successes to a larger audience

4. Implement marketing to promote Vallejo as: (1) a place to do business regionally, and (2) a place for visitors to come for a day or overnight stays A. Draft a Marketing Plan with the information gathered from this Economic Development Strategic Plan as the foundation

5. Expand workforce development partnerships with explicit downtown connections to higher education and regional workforce efforts as part of placemaking efforts.

A. Identify funding and partners to Implement a citywide Workforce Development Program
What the Economic Development Actions should do for Vallejo Employers that offer high-wage jobs for Vallejo residents versus the regional average; Increase the number of tax-generating businesses and increase commercial and real-estate values accordingly;
City of Vallejo  2024 Economic Development Strategic Plan  Page 20 Augment educational outcomes and workforce training for Vallejo’s residents such that they can better compete for high-wage jobs regionally;
Better utilize city-owned properties and increase city revenues from those properties; RESOURCE NEEDS: BUDGET FOR VALLEJO
ECONOMIC DEVELOPMENT Department
Funds must be invested to support specific economic development activities. Vallejo’s grit comes from a history of overcoming challenges as a community. The City Council has set aside $355,000 of ARPA funds to help launch the ED Strategic Plan strategies in year 1. The strategies listed above suggest funds beyond additional ARPA monies as investments in Vallejo’s economic development activities will be necessary. The recommended action steps also require additional staff resources, given the commitments of existing staff. These are only high-level estimates. New sources of funds may include:
Work with city grant writer on economic development needs; Grant funding as pursued for funding action items after ARPA funding is spent; Receipt of new funding from property sales or reutilization, property transfer tax increase, Measure P, or transient occupancy tax (TOT) modifications; and Sources derived from corporate and non-profit/foundation sponsorships, paying for advertising, or being named as a contributor to Vallejo’s economic development activities.

Table EX-1: Proposed Budget Additions for Economic Development, Years 2024-25 to 2029-30 Fiscal Year End
Budget Item Cycle 1
2025
Cycle 1
2026
Cycle 1
2027
Cycle 2
2028
Cycle 2
2029
Cycle 2
2030
Potential Revenue Sources
Additional city funding/staff $75,000 $75,000 $100,000 $121,000 $133,600 $158,000 Economic development grants $30,000 $35,000 $38,500 $42,350 $50,000 Revolving Loan Fund (RLF)
Contributions
$100,000 $100,000 $100,000 $100,000 $100,000
Event sponsorships (local & regional) $50,400 $15,000 $90,000 $90,000 $100,000 $100,000 ARPA pilot projects $205,000 $150,000 $- $- $- $- TOTAL $330,400 $370,000 $325,000 $349,500 $375,950 $408,000 Expenditures-Uses
ARPA Pilot Projects
Citywide Cap Facilities Plan $95,000 $50,000 $50,000 $50,000 $50,000 Pop-Up Events Costs $32,000 $25,000 $30,000 $35,000 $40,000 $45,000 Shop-Local Support $28,000 $20,000 $- $- $- $- Marketing Plan $50,000 $50,000
Revolving Loan Fund (RLF) $100,000 $100,000 $100,000 $100,000 $100,000 Additional city funding/staff $75,000 $75,000 $100,000 $121,000 $133,600 $158,000 Other Action Items $50,400 $100,000 $45,000 $43,500 $52,350 $55,000 Total Uses $(330,400) $(370,000) $(325,000) $(349,500) $(375,950) $(408,000) Net Sources (or Uses) $- $- $- $- $- $-
Source: City of Vallejo and Economic Forensics and Analytics, Inc. (EFA) projections for Cycles 1 and 2.

City of Vallejo  2024 Economic Development Strategic Plan  Page 21 Note these are planning-level estimates and may change, as well as city staff time beyond stated costs.

The additional costs based on the Roadmap’s action items and pilot projects using remaining ARPA funds to 2030 are also shown in the Proposed Budget Additions. (These estimates are high level and are meant to assist in multi-year budgeting, not to be specific line items as the costs are expected to increase yearly). We assume years 4 to 6 (Cycle 2) will have similar events with rising costs and thus increasing sources of funds to match. Partnerships, grants, and additional sources of revenue are all needed to finance these actions and ultimately achieve Vallejo’s goals.

Increase economic activity and marketing about doing business in or visiting Vallejo due to a unique and positive business or tourism experience. Social change (as defined through housing, image, and public safety) and Vallejo’s broader transformation as a place to do business will take time. Vallejo’s Economic Development Department starts with the assumption that building a foundation based on Vallejo’s key assets is critical for generating more jobs and activity in Vallejo’s economy (e.g., Mare Island, Blue Rock Springs) and establishing more activity in different parts of Vallejo as a change agent (Eastern Vallejo, South Vallejo) where opportunities exist and emerge. When considering the Bay Area as a location, the intention is to envision Vallejo as a top choice for businesses in specific industries. These goals are meant to be everyday foci of economic development activities in Vallejo into the 2030s.

Given the current daily commitments of existing staff, implementing all recommended measures will require additional staff resources to ensure success. The two cycles are meant to recognize a need to build a foundation and then expand from that solid footing. The Cycle 1 goals are what should be achieved to build the foundation and prepare to market Vallejo more completely as a place to do business. The implementation matrix below provides action steps recommended by the consulting team to achieve the goals as described here during Cycle 1. As suggested, the City of Vallejo should host events as Cycle 1 goals are achieved to consider where the city is in terms of supporting Cycle 2 goals.

All strategic economic development department goals should be re-assessed every three years (first review by June 2027) and a full update by June 2030 based on changes in regional economic and market conditions.

City of Vallejo  2024 Economic Development Strategic Plan  Page 22

STRATEGY DETAILS
When the naval base on Mare Island closed, Vallejo
changed. Three recessions and a municipal bankruptcy
further affected Vallejo’s ability to stand out from
comparable cities in the Bay Area.

The City of Vallejo (Vallejo) has unique economic assets compared to its suburban Bay Area neighbors and
challenges that look more like those of its urban
neighbors. This economic development strategic plan is
meant to direct activities in Vallejo in two cycles until 2030.

In 2012, an economic development strategic plan
pointed to Vallejo's key assets, including its local educational institutions, Mare Island, customer flows to and through Vallejo, and its healthcare sector. Unfortunately, the industries discussed in that plan were not in Vallejo in earnest; however, change has occurred, especially on Mare Island.

This Strategic Plan document is not an update to the 2012 Economic Development Strategic Plan.

This plan is a new, stand-alone document based on an analysis of current conditions in 2022 to 2024, identifying community preferences and industry best management practices and showing accountability for implementation in a manageable timeframe. The context for this strategic plan is between 2011 and 2024 as the recent, applicable past, and from 2024 to 2030 to execute this plan. Vallejo has opportunities in its major commercial areas and can use gains in these areas to benefit other parts of the economy (eastern and southern Vallejo):
Mare Island
Downtown/Waterfront
Blue Rock Springs and eastern Vallejo
North Vallejo (Six Flags, Admiral Callaghan corridor, Solano 360).

This plan is built on specific tasks to generate data and views from Vallejo’s stakeholders to form action steps and goals. These actions and goals can help Vallejo integrate economic activities across the city, using current commercial spaces, federal opportunity zones, potential grants, and other financing vehicles (such as an EIFD, similar to the City of Napa) and enhancing communications about Vallejo to shine a light on its potential. We include in this plan a communications strategy that supports economic development efforts. The overall plan’s details are organized by the tasks and subtasks in the scope of work, with conclusions and links to action steps toward achieving goals.
Tasks 1.1 to 1.3: Vallejo’s Economy and Demography
Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 23 Tasks 2.1 to 2.3, Facilitating Communications Community Outreach and Voice and Expectations (communications plan)
Task 3, Finalize data and conclusions
Task 4, Final plan presentation and submission
Plan complete and delivered (and acceptance)
Pilot projects based on plan recommendations initiated Before we detail the findings, suggested goals, and action items for Vallejo’s economic development department, let’s first understand how a city's economy works.

HOW TO THINK ABOUT A CITY ECONOMY
This strategy is meant to create more jobs, more business activity, more utilization of local buildings and other commercial spaces, preparing to support more locally-owned and headquartered employers. To achieve that, housing, land, water, broadband, education, and roadways are part of foundational support all aimed and increasing Vallejo residents’ quality of life. When all those parts work in unison, that greater goal can be achieved.

If a business comes to Vallejo, that
business is making a site-location
decision. This plan refers to site
selection as a lens through which
economic development efforts
anticipate the future. Local residents,
workers, and tourists are possible
sources of demand for goods sold or
services provided. Housing,
commercial space or land, and other
infrastructure must serve businesses
and their employees so that those
employers remain in Vallejo.

Transportation offers support for
inbound commuters and visitors and the ability to ship goods or provide services regionally and beyond. The mix of local industries can determine the cost of finding inputs (e.g., tile, wood, or nails for a construction business), thus connecting the links in the supply chain. Vallejo’s economy is closely linked to those in the core Bay Area, Solano County, and California.

A city is much like a small country surrounded by other small “countries” (cities and counties) that all trade with one another and share resources. These trades with other cities and counties create traffic flows in and out of the area as well as housing demand to be close to jobs, schools, and Housing, Land and
Infrastructure
Economic and
Workforce
Development
Transportation/
Commuting
Quality
of life
rising
City of Vallejo  2024 Economic Development Strategic Plan  Page 24 transportation links and produce spending patterns based on the local mix of merchants. For example, San Francisco as a city (and county) historically draws in more people for work than residents who live in the city and may work elsewhere. Public transportation systems, parking, gas stations, retail, and many other employers recognize those patterns and locate them in places that employees, residents, and tourists can access because of housing availability, transportation access, or both. How the local economy balances these forces leads to critical questions for supporting local businesses:
Does the city have unique land, infrastructure, and locations? (For Vallejo, yes) Does the city have access to transportation and commuting links? (For Vallejo, yes) Does the city have economic and workforce development tied to local employers? (For Vallejo, somewhat, but this plan is meant to address the critical need for such a connection).

These linkages connect people to jobs, local governments to sources and uses of funds, and local residents to a better life. In 2023, Vallejo’s recent history, in many ways, is a story of a city economy. The end of the Great Recession (2011) is the most relevant starting point. That economic downturn created concerns about Vallejo’s economy, exacerbated by municipal bankruptcy in 2008; however, the regional and global recovery took time. Another turning point was the COVID- 19 pandemic. The pandemic exacerbated some of the problems created by the Great Recession and created some opportunities. Vallejo remains under the shadow of both issues in 2023 as this strategic plan begins and looks to the future in 2030 and beyond.

Source: City of Vallejo

City of Vallejo  2024 Economic Development Strategic Plan  Page 25 THE ROADMAP: Strategy Implementation
The recommended roadmap provides an implementation timeline for the City of Vallejo's economic development journey. The roadmap links Cycle 1’s goals 1 through 6 and associated action items above and identifies the best lead organizations and community partners to complete the action items. This roadmap is set up as a script for the first year of Cycle 1 and then becomes more general for years 2 and 3. Because it is unknown whether Vallejo will transition to Cycle 2 after the fiscal year 2026-27, Cycle 2’s action items need to come from Vallejo’s Economic Development Department, city management, and City Council as conditions change.

Our Cycle 1 and Cycle 2 action items assume Vallejo has more stable public safety conditions, public education outcomes and better perceptions inside and outside Vallejo from 2025 to 2030.

Because economic development drives and depends on community development and change, public safety, housing choice and affordability, healthcare service proximity and availability, good schools, and a welcoming environment are part of what new and expanding businesses consider when selecting locations. A lack of stability can turn away new businesses and drive current businesses away. Managing perceptions and reality is a large part of the communications strategy also. Simply put, economic development must convince new and expanding businesses to say: “I want to be a part of that” versus “No way am I locating there”.

The roadmap has associated estimated costs based on our team’s assessment. Sometimes, the cost is staff time and choice versus adding other economic development tasks; remaining ARPA funding should be allocated to those action items with one asterisk (*). Additional costs for economic development initiatives need additional dedicated funding from local (city, county, state, or federal based on locally-elected officials) sources or grant funding based on Vallejo’s Economic Development Department’s seeking such funding. Table 1 provides a sample budget for the next six fiscal years. It is essential to recognize that some of these efforts (meetings with stakeholders, meeting coordination with City of Vallejo staff and regional partners, for example) require additional resources and staffing for Vallejo’s Economic Development Department. All strategic economic development department goals should be re-assessed every three years (first review in 2027) and a full update in 2030 based on changes in regional economic and market conditions.

City of Vallejo  2023 Economic Development Strategic Plan From roadmap to implementation: Actions, Links to Goals, and Strategic Planning Tasks, Cycle 1 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
First 90 Days - Q1 2025
1A
Create shop-local process and support,
exploring technology solutions, perhaps as a
donation for marketing
1 1.2, 3.2
Vallejo
Chambers of
Commerce
Pilot Project $28,000
ARPA
1B
Quarterly Pop-Up Events (for example: Ferry
in Sept based on a Giants Game, pop up retail
events such as flea markets, workforce
development events, etc.)
2 1.2, 3.2
Regional
Chambers of
Commerce
Pilot Project Staff Time $10,000
ARPA
2A
Streamline Permit Process-Begin working
with city planning and city finance on current
systems to assist commercial tenants and
owners in gaining access to permits
3 1.2, 3.2
City Planning
Department,
City Finance
Preparation for
downtown-specific
plan and citywide
facilities plan support
Staff Time
4C, 6B
Meet with all four regional chambers and Visit
Vallejo about video stories, define roles, and
prepare for marketing strategy and
communications rhythm (lunch)
4 2.1, 3.2 Chambers
Visit Vallejo
Establish roles and
begin planning, host
luncheon
$200
1D
Construct and put out for bid citywide capital
facilities plan Request for Proposals (RFP) for
Beautification and Strategic development
recommendations for city-owned sites
5 1.2, 3.2 City Finance Pilot Project,
Search for consultant Staff Time
6A
Begin grant search and applications for state
and federal grants, as well as non-profits (by
Feb 1, 2025), meet with Congressional,
Assembly, and Senate staff
6 1.3, 3.3
Vallejo EDC,
City Manager’
Office grant
writer
Vallejo Economic
Development
Department staff
time may be needed
to support grant
applications and
compliance
Staff Time
City of Vallejo  2024 Economic Development Strategic Plan  Page 27 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
1C Hold initial meeting with Lenders for
Revolving Loan Fund (RLF), fund in 2026 7 1.2, 3.2 City Finance Pilot Project (DEI focus), seed funding
$100,000
TBD
2B, 4C III
Meet with Leadership at Touro, Cal Poly/CSU
Maritime, Solano CC about expanding
academic operations downtown/waterfront,
and workforce development programs (lunch)
8 1.3, 3.3
Vallejo-Based
Universities
and Colleges
Semi-annual check-
in, build stories
connected to current
programs and rhythm
of contact, develop
plan/tasks/goals to
move forward
together
$200
2B, 4A
Begin “Large Employer Group”, meeting
quarterly, including Vallejo Unified School
District (breakfast or lunch)
9 1.2, 3.2
Regional
Chambers of
Commerce
Effort to solve issues
for larger employers,
retention activity,
workforce
development,
reducing
employment barriers
$200
2A, 2B, 3A, 3E
Meet with Local Commercial Real Estate
Professionals and property owners on a
quarterly schedule (breakfast or lunch)
10 1.2, 3.2
Vallejo
Economic
Development
Commission
(Vallejo EDC)
Regular luncheon to
keep city partners
informed of events &
opportunities in the
City of Vallejo. Learn
their perceptions and
opinions of Vallejo as
a place to do
business
$200
1D, 3C, 5A, 5B
Begin citywide capital-facilities master plan
for existing city-owned assets, purchase
Location One software/subscription
11 1.2,2.1
City Public
Works, City
Finance
Pilot Project, results
connect to downtown
specific plan, focus
on commercial TRAs,
hire consultant
$95,000
ARPA
City of Vallejo  2024 Economic Development Strategic Plan  Page 28 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
1B, 2C
Engage Pop-Up Event (pop-up retail and food
truck events) at Ferry based on Giants Game
(by October 1, end of baseball season), begin
planning 2nd event for holiday period
12 1.2, 2.1 Regional
Chambers
First Pilot Project: set
up way to get
$10,000
ARPA
4A, 4B
Begin Social Media Campaign/Partnership
with Regional Chambers on Business Stories
from previous meetings
13 2.2 City
Communications
Consider outside
consultant/marketing
firm, partnership with
City PIOs
$25,000
ARPA
2A, 2B, 4C
Communicate progress on Mare Island, Blue
Rock Springs, Waterfront, and Downtown,
and begin rhythm of reporting out
14 1.2, 2.2
City
Communications
Mare Island
Company
In Vallejo Weekly,
Profile, prepare for
regular updates,
Council Meetings,
online, etc.

Staff Time
4A, 4B Work with Visit Vallejo on tourism strategies
and second Pop-Up event 15 1.2, 2.2 Visit Vallejo Focus on tourism partnerships
$10,000
ARPA
Q2- 2025 (180 days)
2A, 2B, 3A, 3E
Continue meetings with Chambers,
Commercial Real Estate/Owners Group
Quarterly meetings
16 1.2,2.1 Regional
Chambers
Projects, problems,
solutions, brain
storming, host
luncheon
$200
2C, 4A
Hire firm to draft marketing plan with draft
"pitch package" to attract film studios and
local filmmakers to film in Vallejo
17 1.2,2.1,2.2
Visit Vallejo,
Regional
Chambers,
Mare Island
Company
Preparation of
marketing plan,
including research on
what filmmakers
specifically want:
incentives, access,
unique areas, and
people.
$50,000
ARPA +
Staff Time
City of Vallejo  2024 Economic Development Strategic Plan  Page 29 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
6A, 6B
Apply for grants as available (minimum three
grant opportunities), and search for
foundations and other non-profit partners
18 1.2,1.3
Regional Non-
Profits and
Higher
Education
Apply for applicable
grants Staff Time
4A, 4B, 4C, 6B
Work with all regional chambers on shop local
campaign for holidays: focus on vacant real
estate as a place for local merchant
showcase, hold 2nd event
19 1.2,2.1
Regional
Chambers,
Visit Vallejo
Pilot Project: utilize
space between
Thanksgiving and X-
mas Eve (2nd event
includes buy-local
program and
sponsors).
$12,000
ARPA
4D, 6C Update KPIs, Report to City Council/Vallejo
EDC/City Management, Working Lunch 20 2.1,2.2 Vallejo EDC Internal tracking
quarterly,
establishing quarterly
rhythm on updates
$200
Q3 and Q4- 2025
1B, 2C, 4B Complete third "pop-up" event 21 1.2, 1.3, 2.1,

2.2 Regional
Chambers
Pilot Project $10,000
ARPA
4C III, 6B
Finalize one downtown connection to Vallejo-
based university, media there as an event
(related to and final stages of action items
above in Year 1 of Cycle 1)
22 1.2, 1.3, 2.1,

2.2, 3.2
Vallejo Unified,
Touro University,
Solano
Community
College, Cal
Maritime
Communicate about
what is happening
and tell stories, and
hold kick-off event
$2,000
City of Vallejo  2024 Economic Development Strategic Plan  Page 30 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
2C, 3B, 3E
Make appointments with film studios and
local filmmakers about Vallejo as a location
and potential tours of sites as part of pitch
deck due diligence.
23 1.2,2.1,2.2
City Manager
City
Communications
Vallejo's
downtown/Mare
Island as filming
locations. Use
opportunity zones as
office space to
provide benefits
(work with producers
on this). Travel (e.g.,
Los Angeles) if
needed.
$4,000 for
travel or
hosting
events
4D
Continue updates of KPIs, Report to
Council/Vallejo EDC/Management, look back
one year and assess use of ARPA funds and
pilot projects, complete infill development
plan
24 1.2,2.1,2.2 Vallejo EDC,
City Council
Hard look at progress
one year on, what
was accomplish,
what has been
prepared to do in
year 2, movement of
KPIs, progress by city.

Staff
Time,
$1,000 for
events to
engage
public
4D
Continued community engagement and
messaging on Vallejo economic development
progress by holding community event in Mar
2025 to update progress (e.g. town hall
meeting with maximum three elected officials
each)
25 1.2, 1.3, 2.1,

2.2, 3.2
City Council,
Vallejo EDC
Two Councilmembers
per meeting as hosts
is the goal, shows
unity of purpose
$1,000
By end of Fiscal Year 2025-26, June 30, 2026
1C
Announce RLF availability in partnerships
with Local Lenders and prepare to for
borrower stories
26 1.2, 1.3, 2.1,

2.2 Local Financial
Partners,
Solano EDC
Have lenders
committed with CRA
or Foundation funds,
story placements
$100,000
ARPA
+
$100,000
Local
Lenders
City of Vallejo  2024 Economic Development Strategic Plan  Page 31 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
2A, 3B, 4B, 4C Communicate about new businesses in
Vallejo and their stories as compiled in Year 1 27 1.2, 1.3, 2.1,

2.2, 3.2
Regional
Chambers
Collect stories during
business visits and
through Chambers,
Workforce
Development and
other partners.

Promote stories via
Vallejo Weekly,
MyVallejo, social and
print media.
$5,000
1A, 1B
Repeat Pop-Up (see Cycle 1 Tasks 2, 12, 21)
Events based on Assessment of ARPA-Funded
Events in Year 1: continue to include flea
markets, pop-up retail and food truck at these
events, and coordinate with other significant
events when possible and to also increase
ferry use at Vallejo Terminal
28 1.2, 1.3, 2.1,

2.2 Regional
Chambers
Should be quarterly
events if possible,
and then stay in
quarterly rhythm
based on staff and
budget. Coordinate
with overall city
events planning and
grants
$30,000
1E, 4A Finalize marketing strategy for city as a place
to do business 29 1.2,2.1,2.2
Regional
Chambers,
Solano EDC
Progress throughout
Vallejo should be
used as a foundation
of what city has to
offer
$50,000
ARPA +
Staff Time
2A, 3B, 4B
Show a film shot in Vallejo at Empress, or
have a trailer shown in town or on city
website combined with Vallejo Businesses
Celebration (Vallejo Chamber as partner) and
California Film Commission
30 1.2,2.1,2.2
Regional
Chambers.

Solano Film
Commission,
California Film
Commission
Creates a buzz that
things are happening
in Vallejo, including
using opportunity
zones
$2,000
Staff Time
City of Vallejo  2024 Economic Development Strategic Plan  Page 32 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
2B, 4C III, 6B Continue planning for downtown connections to workforce development as possible (lunch) 31 1.2, 1.3, 2.1,

2.2 Local K-14
education
Continued
partnership stories
about local workers
$200 +
Staff Time
4D, 6C
Analyze taxable sales and leakage specific to
vital retail areas, consider pursuit of grocer
based on progress otherwise
32 1.2, 1.3, 2.1,

2.2, 3.2 City Finance
Grocer(s) should
provide feedback by
either locating in
Vallejo or why they
did not. Create a
report
Staff Time
4D
Continue updates of KPIs, Report to
Council/Vallejo EDC/Management, and
provide look back one year
33 1.2,2.1,2.2
City Mgmt.,
Vallejo EDC,
City Council
Continue
communications,
Prep to move to Cycle
2 Staff
Time,
$1,000 to
engage
public
1D, 2A, 2B,
2C, 3B, 3D
Report progress on new downtown
businesses and also progress on other parts
of Vallejo (e.g., Mare Island activity) in various
media
34 1.2, 1.3, 2.1,

2.2, 3.2 Vallejo EDC Continue rhythm and
communications $1,000
4D Hold Residential Events in Mar 2026, update
progress 35 1.2, 1.3, 2.1,

2.2, 3.2
City Council,
Vallejo EDC
Two Councilmembers
per meeting as hosts $1,000
By End of Fiscal Year 2026-27, June 30,
2027
1C Continue to add funds to RLF in Year 3 based
on loan performance 36 1.2, 1.3, 2.1,

2.2 Regional
Lenders,
Solano EDC
Continue momentum
from years 1 and 2
$170,000
(TBD)
4D Communicate about new businesses in
Vallejo 37 1.2, 1.3, 2.1,

2.2 Regional
Chambers
Continue rhythm and
communications $7,500
4A, 4B, 5A Continue and tell stories from downtown
connections to Workforce Development 38 1.2, 1.3, 2.1,

2.2 Regional
Chambers
Continue rhythm and
communications $3,000
City of Vallejo  2024 Economic Development Strategic Plan  Page 33 Related Action
Item (Goal and
Action Item)
Recommended Tasks by Calendar Year
Quarter or Stated Date Task # Strategic
Plan Task #
Recommended
Partner(s) Notes Estimated
2B, 3C, 4D Report on current projects and links to
placemaking activities 39 1.2, 1.3, 2.1,

2.2 Regional
Chambers, Visit
Vallejo
Continue rhythm and
communications $2,000
4D
Continue updates of KPIs, Report to
Council/Vallejo EDC/Management, and
provide look back to Cycle 1
40 1.2,2.1,2.2 Vallejo EDC
City Council
Is it time to move to
Cycle 2? Begin
discussions and
analysis
Staff Time
2D, 3C, 5B Begin efforts to attract employers to defined properties that fit targeted industry entry 41 1.2, 1.3, 2.1,

2.2 Solano
Workforce
Development
Board
Start looking for
regional ad
placements for
Vallejo as a place to
do business
$20,000
ARPA
4D
Vallejo EDC to continue efforts to engage
community and promote Vallejo economic
development progress by holding a local
event with City Council members in Mar 2027
to update strategic plan progress
42 1.2, 1.3, 2.1,

2.2 Vallejo EDC,
City Council
2 Councilmembers
per meeting as hosts $1,000
6A, 6C
Apply for grants as available (minimum three
grant opportunities), and search for
foundations and other non-profits
43 1.2,1.3
Regional Non-
Profits and
Higher
Education
Apply for applicable
grants after search Staff Time
4D Finalize Cycle 2 action steps assuming
decision made to move to Cycle 2. 44 1.2,2.1,2.2
City Mgmt.,
Vallejo EDC,
City Council
This is where the
transition takes
place, if ready
Staff Time
End of Cycle 1, June 30, 2028
Notes: The lead/partner(s) are parties recommended to lead or assist in providing services for economic development action items. These are not explicit assignments and likely come from negotiations and partnerships among all parties. Also, “Vallejo EDC” refers to Vallejo’s Economic Development Department, and the abbreviated form was used to reduce the space on the table. TRAs = tax rate areas City of Vallejo  2023 Economic Development Strategic Plan VALLEJO’S ECONOMY
What These Data Tell Us: Vallejo’s residents and employers remain behind the rest of the Bay Area, where efforts that lead to more employers, more workforce development and economic activity can help Vallejo become a success story and attract more targeted industries over time.

The following main categories of data frame the city’s economy in ways that city economic development can be tracked from here:
Industrial mix of Vallejo employers
Residential employment and labor force available in the city Median household income levels after an adjustment for inflation Housing stock, prices (both for sale and rental), and recent forecasts Taxable sales by significant category and per resident Building permits issued in residential units and sq. ft. of commercial space Tourism data: occupancy rates and revenues for local hotels per room Demography overview: diversity in Vallejo and population change Table 2: Industry Hiring by Vallejo Employers in 2011, 2022, and 2027 (projected) 2011 2022 2027*
Health care and social assistance 8,939 11,126 13,605 Public administration 6,542 8,409 6,845
Retail trade 4,311 2,928 5,007
Educational services 3,833 1,209 4,024
Accommodation and food services 2,376 3,784 3,238
Construction 2,015 4,265 2,382
Other services (excluding public administration) 1,902 3,383 2,359 Transportation and warehousing 1,598 1,088 1,817
Arts, entertainment, and recreation 1,549 1,737 2,234 Professional, scientific, and technical services 1,337 1,441 1,786 Manufacturing 1,175 288 1,476
Administration, waste management 915 1,485 1,160
Finance and insurance 824 1,383 899
Wholesale trade 640 693 723
Real estate and rental and leasing 375 1,432 535
Information 311 245 463
Utilities 273 189 330
Management of companies and enterprises 117 34 99
Agriculture, forestry, fishing, and hunting 63 292 62 Mining, quarrying, natural resource extraction – 10 20 Totals 39,095 45,418 49,066
Sources: California Employment Development Department (EDD), Census Bureau, IMPLAN®, and LightCast, courtesy of Workforce Alliance of the North Bay (for forecast data. Data estimated by EFA from a mix of these sources.

City of Vallejo  2024 Economic Development Strategic Plan  Page 35 Residential employment and unemployment in the City
Residential employment data tell how many of Vallejo’s residents have a job. These data contrast the number of people working for Vallejo’s employers, private-sector, public-sector, and non- profits. The COVID-19 pandemic initially shifted commuting patterns, but as the original effects of the pandemic faded, the pre-pandemic commuting patterns re-emerged, especially among those whose jobs are less amenable to being performed remotely (acute health care, restaurants, construction, manufacturing, etc.). The unemployment rate is the percentage of the residents in a defined area who are not working but are actively looking for work; however, neither labor force data nor unemployment rates include self-employed people. Vallejo has had one of the highest unemployment rates in the Bay Area for some time. Figures 2a and 2b show the recent history.

Figure 2a: Vallejo Residents: Labor Force and Employed Residents, January 2011 to March 2023, Seasonally Adjusted, Monthly. Sources: California EDD and Bureau of Labor Statistics.

Figure 2b: Solano County Residents: Labor Force and Employed Residents, January 2011 to March 2023, Seasonally Adjusted, Monthly. Sources: California EDD and Bureau of Labor Statistics. 150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Feb-18
Jul-18
Dec-18
May-19
Oct-19
Mar-20
Aug-20
Jan-21
Jun-21
Nov-21
Apr-22
Sep-22
Feb-23
Labor Force Residential Employment
Workers
40,000
42,000
44,000
46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13Jan-14Jul-14Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23 Labor Force Residential Employment
Workers
City of Vallejo  2024 Economic Development Strategic Plan  Page 36 VALLEJO’S RESIDENTS AND HOUSING
What These Data Tell Us: Vallejo’s residents and employers remain behind the rest of the Bay Area, where efforts that lead to more employers, more workforce development and economic activity can help Vallejo become a success story and attract more targeted industries over time.

Median Household Income Levels after Adjustment for Inflation, 2011 to 2021 Economic development organizations diligently track the MHI after inflation, a key indicator of how local efforts may impact residents. While MHI can rise due to inflation, it's heartening to note that it has been on a positive trajectory in Vallejo. This increase, not solely due to inflation, can expand people’s purchasing power. For a fair comparison over time, MHI is adjusted to avoid the effects of inflation. A rise in MHI often accompanies increased jobs and wages, indicating a healthy economic environment. Conversely, a decline in MHI may signal economic concerns or a lack of conversion of economic development into jobs and income gains.

Figure 3: Vallejo, Solano, and California as a Whole—Median Household Income, Inflation-Adjusted 2012 Dollars, 2010-2021. Source: Census Bureau and Federal Reserve.

Housing stock, housing prices (for sale and rent), and recent forecasts One consideration by both site selectors and workers in the location of a business or residence is the housing price (including rental prices). Vallejo’s housing stock has grown relatively slowly since 2011: 380 net new units as of 2021 (the latest data). Vallejo has had little change in the mix of multifamily and single-family homes. Housing burden for renters (% of renters who pay at least 30% of their gross income as gross rent monthly) since 2011 has declined across California and in Vallejo (because of rising income, this has changed nationally as well, as housing/rental prices grew slowly). Since 2011, the housing burden in Vallejo has fallen, following the same pattern seen in Solano County and the state of California, falling from 52.9 % of rental households to 35.3% as of 2021. Vallejo has gained 380 net new housing units since 2011. More housing units are coming to $50,000
$55,000
$60,000
$65,000
$70,000
$75,000
$80,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Vallejo Solano County California
MHI (2012 Dollars)
City of Vallejo  2024 Economic Development Strategic Plan  Page 37 Vallejo; in 2022 and 2023, 333 units received permits in Vallejo, where 51 units were single-family homes, 210 were multi-family homes (apartments), and 72 were accessory dwelling units (ADU or junior ADU).

Figure 4: Housing “Tenure” or Occupancy, Owners versus Renters, 2021. Sources: Census Bureau Figure 5: Rental Burden for Vallejo Households, Compared to Average in California, 2011 and 2021.

Source: Census Bureau.

Taxable sales by significant category and per resident
Taxable sales portray a mixture of characteristics that economic development professionals monitor to gauge economic development success. The link to sales tax revenue and tourism is another reason for tracking taxable sales (see more below under Key Performance Indicators).

Taxable sales per capita is a way to see how local taxable sales are generated, facilitating comparison to other municipalities.

58.3%

41.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%
United States California Vallejo
Owner-occupied Renter-occupied
Percent of Households

City of Vallejo  2024 Economic Development Strategic Plan  Page 38 Figure 6: Comparative Median Home Prices, Current Dollars—Vallejo, Benicia, Fairfield, Vacaville, American Canyon, and California, 2011 to 2022. Source: ZillowTM Research.

Taxable sales are generated everywhere, and a large portion of the sales taxes collected go to the state of California. Measure P, passed in November 2022, provides a more focused use of additional sales taxes (data in Figure 7 do not yet reflect gains per person in Vallejo from Measure P). Similar measures generally rely on an outside market for local taxable sales to share that burden.

Figure 7: Taxable Sales per Capita, Vallejo, Solano County, and California, 2015 Q4 to 2022 Q4, Not Seasonally Adjusted, 2012 Dollars (Inflation Adjusted). Source: California Department of Tax and Fee Administration.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13Jan-14Jul-14Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23 Vallejo California Benicia Fairfield Vacaville American Canyon Median Home Price (Current Dollars)
$11,552 $11,672 $11,368
$-
$5,000
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2015 Q4 2019 Q4 2022 Q4
Vallejo Solano County California
City of Vallejo  2024 Economic Development Strategic Plan  Page 39 Building permits issued in residential units and sq. ft. of commercial space Permitted space and housing units demonstrate that businesses, site selectors, and real estate developers see the local area in terms of potential investment and return on that investment by constructing new spaces and housing units. Building permits, specifically those for new housing units, show how the local city in a county is considering expanding or renovating current housing units. It is also a leading economic indicator; developers’ confidence is illustrated by their actions with local municipalities in seeking permits and preparing to build more homes. The new square footage of commercial space permitted is also a leading indicator and a confidence measure. When firms build and occupy new commercial space or developers invest in tenant improvements or build new spaces, permitted activity increases the number of local jobs and local economic activity. This is also true of infrastructure spending by local governments (e.g., road work financed by Measure P, passed in 2022 and funded for 2023 and beyond, has broader effects on the Vallejo economy, especially when locally based workers are hired).

Figure 8: Number of New Housing Units Permitted, Calendar Year End, 2011 to 2022.

Sources: City of Vallejo Planning Department and Census Bureau.

Figure 9: Commercial Real Estate Permitted, Number of Square Feet, Fiscal Years 2010-11 to 2021- 22, Vallejo and Rest of Solano County. Source: County of Solano. Note: Vallejo commercial square feet are shown in data labels.
25 27 13 17 27 39 43 51 67
41 27
240
93 0
50 100
150
200
250
300
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 - 10,324 -
10,920
37,277
128,994
2,655
7,097
117,895
14,667
14,499
129,202
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Rest of Solano County Vallejo
Commercial Sq Ft Permitted
City of Vallejo  2024 Economic Development Strategic Plan  Page 40 Tourism data: Occupancy rates and revenues for local hotels per room Vallejo has a long history with tourism, from when the Navy was at Mare Island to Cal Maritime and Touro University events around student arrivals and graduations to Six Flags as a regional destination. Tourism can be categorized as day visitors or overnight stays. Overnight stays have a more significant economic impact on the local economy and use hotels beyond taxable sales at local retailers and restaurants alone. The overnight-stay market creates more than one day of spending in the local economy and adds transient occupancy tax (TOT) revenue to city funding sources. How visitors stay over and spend locally depends on the mix of local merchants and restaurants and whether efforts are made to direct them to those businesses. The linkage of the local tourism cluster to the broader regional economy also plays a significant role in Vallejo’s proximity to the wine country and San Francisco. It captures visitor spillover from these established tourism destinations, given its geographic and transportation linkage to each. Given its relative affordability, Vallejo has traditionally captured the lower end of the hospitality market.

However, its hotel inventory is also older than that of Napa or San Francisco, so there could be an opportunity for a higher-end hospitality niche.

We show data here in two related ways. Figure 11 shows a comparison of revenue per available room (RevPAR), which is the basis of TOT revenue, from April 2020 (at the beginning of the pandemic) to March 2023 (the latest data available in April 2023). RevPAR is the occupancy rate multiplied by the average daily rate hotels and motels charge for their rooms. Figure 12 illustrates occupancy rates over the same period to show the seasonality in hotel demand broken down among Vallejo, Napa County, and San Francisco.

Figure 10: Revenue Per Available Room (RevPAR), Current Dollars, Comparisons to Selected Areas, April 2020 to March 2023. Source: Smith Travel Research, Visit Vallejo, Sonoma County Tourism, Marin County Visitors Bureau
$57.10
$341.86
$162.56
$126.99
$155.18
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Vallejo Napa Sonoma Marin SF
Apr-20 Apr-21 Apr-22 Mar-23
Revenue Per Available Room (RevPAR),
Current Dollars
City of Vallejo  2024 Economic Development Strategic Plan  Page 41 Figure 11: Occupancy Rate Comparisons, April 2020 to March 2023, Selected Areas, % of Available Rooms. Source: Smith Travel Research, Visit Vallejo, Sonoma County Tourism, Marin County Visitors Bureau.

Workforce Development and Demography: Diversity in Vallejo Vallejo is the most diverse city in Solano County and is among the most diverse cities in the Bay Area, with about 123,000 residents. Since 2011, Vallejo’s residential population is estimated to have fallen slightly, as shown in Figure 12. As in other parts of the North Bay and Bay Area, Vallejo’s population declined after 2017. Housing prices, fear of fires, and a slower economy may have influenced this trend. This issue is regional, not just affecting Vallejo. Overall, Solano County lost population in 2020 and 2021. Napa, Marin, and Sonoma counties have all experienced population reductions yearly since 2017.

Educational attainment is one metric of economic development that can show whether local academic institutions and employers create more scientific, engineering, medical, and higher education jobs. This suggests that new jobs with higher education qualifications also create city residents. Figure 13 shows the slow rise in Vallejo’s population with a bachelor’s degree or higher education from 2011 to 2021 (the most recent data available).

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Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21Jun-21Aug-21Oct-21Dec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Feb-23 Vallejo Napa SF
Percenatge of Available Rooms
City of Vallejo  2024 Economic Development Strategic Plan  Page 42 Figure 12: Vallejo Population, Year-End Estimate, Number of Residents, 2011 to 2022 Figure 13: Educational Attainment, Vallejo, CA and US on average, Bachelor’s or Higher Degree Held by Residents over Age 25, % of that Population, 2011 to 2021. Source: Census Bureau.

In Figure 14, Vallejo’s ethnic and racial diversity in 2021 is compared to that of all of California. It is essential for workforce development efforts to consider program suitability, especially for residents whose first language is not English. African-American, Filipino, and Hispanic residents in Vallejo work throughout the region, forming a workforce that could contribute to growth in particular industries within Vallejo. Economic development efforts must align with workforce development efforts, and employers must create and sustain jobs for Vallejo’s residents. Below, we show that Vallejo primarily “imports” much of its labor from other parts of the Bay Area. 123,324 123,190
122,000
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Number of Residents

24.4% 24.4% 27.5%

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2011 2016 2021
CA US Vallejo
Percent of Pop over 25 Years
Old
City of Vallejo  2024 Economic Development Strategic Plan  Page 43 Figure 14: Racial and Ethnic Comparisons, Vallejo and California, 2021, % of Population. Source:

Census Bureau, latest data are from 2021.

Industry Mix and Status Quo Forecast to 2027
The mix of employers has not changed much since 2011 in terms of the top five or six industries that provide jobs in Vallejo. Health care, the mixture of hospitals and public health jobs, has grown by over 2,800 jobs in that period. As Figure 15 shows, from 2011 to 2022, retail and education a mix of public and private schools, as well as Touro University, Cal Maritime, and Solano Community College) led local job growth. Vallejo has three higher-learning institutions that are potential partners in educating workers in the City and the region.

Regarding the national and state economies, 2024 is projected to be a year of continued growth for both the national and global economies. The American economy in 2023 surprised most forecasters and helped augment forecasts to 2027. The forecast we summarize here from various sources highlights two points:
The national and state economies are projected to grow incomes after inflation slowly until 2027, with small increases in unemployment (slightly faster in California); In the Bay Area region, jobs are likely to grow more slowly than the state and national economies until 2030 due to continued effects of population outmigration (though population is expected to increase again from 2024 to 2027), a slower national economy, continued work from home versus office, and thus less business travel to the region’s core urban areas.

Figure 15 shows Vallejo’s industry mix in 2011 and estimated for 2022 by the Census Bureau, California’s EDD, and LightCast data. Figure 16a shows projected growth from 2019 to 2026, the end of Cycle 1 in this plan, versus the pre-pandemic level by significant industry in Vallejo compared to California. These two figures illustrate where Vallejo is and where it could go if nothing changes. The industries targeted below are meant to be catalysts for change.

Hispanic
or Latino
(of any
race)

28.8%
White
alone

23.5%
Black or
African
American
alone

17.5%
Asian
alone

22.6%
Other

7.6%
Vallejo 2021
Hispanic
or Latino
(of any
race)

39.5%
White
alone

35.8%
Black or
African
American
alone

5.4%
Asian
alone

14.7%
Other

4.6%
California 2021
City of Vallejo  2024 Economic Development Strategic Plan  Page 44 Figure 15: Industry Employment in Vallejo, 2011 and 2022, Number of Workers. Sources: Census Bureau, California EDD, and LightCast data, 2022. Note: Data for 2022 is labeled.

Figure 16b provides a forecast (as of May 2024) for the California economy and job growth until 2026. We use this data to illustrate how Vallejo’s job market has evolved, either in line with or diverging from the state's overall trajectory. This lens extends the status quo forecast for Vallejo in terms of jobs, highlighting the potential impact of the targeted industries on the local employment landscape. Some job gains are work-from-home opportunities for new residents who are consultants. In Figure 16b, we compare a recent forecast in early 2024 for California to our projections for Vallejo to 2027 regarding industry employment (including self-employed). We expect Mare Island’s growth of residences and employment opportunities to grow in 2027.

Achieving and exceeding the forecast above depends on economic development activities and how industries best suited to locate and grow in Vallejo do so. Let’s look at the targeted industries Vallejo should pursue in Cycles 1 and 2 regarding business attraction, retention, and expansion.

What The Forecast Data Tell Us: The forecast to 2027 suggests a slower moving economy and challenges for Vallejo’s residents and employers in terms of competition for jobs and customers.

Infill development to shape Vallejo’s downtown and waterfront areas and create more placemaking will prepare Vallejo’s economy with more assets and a more competitive position toward 2030.
11,747
6,143
4,775
4,297
2,877
2,086
1,949
1,614
1,608
1,325
4,843
Health Care and Social Assistance
Public Sector (not including Public Education)
Retail Trade
Education
Hotels and Restaurants
Construction
Other Personal Services
Transportation and Warehousing
Professional and Scientific Services
Arts and Entertainment and Events
All Others
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000
2011 2022
City of Vallejo  2024 Economic Development Strategic Plan  Page 45 Figure 16a: Industry Employment Forecast, Percentage Change from 2019 to 2027, Vallejo and California. Sources: Census Bureau, California EDD, LightCast data, and EFA.

Figure 16b: California Employment Forecast and Vallejo Employment, Index (2011 = 100), 2011- 2026. Source: California Department of Finance, LightCast, California EDD, and Census Bureau.

Note: These data are residents of Vallejo who are self-employed and those who work at Vallejo-based employers -40.4%
-3.0%
-1.2%
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0.9%

2.6%

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4.0% 4.5%

5.6%

6.3%

6.6%

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10.2%

10.6% 11.2%

11.3%

12.5%

24.3%

30.1%
Mining, Oil and Gas Extraction
Education
Public Sector (not including Public Education)
Retail Trade
Wholesale Trade
Accommodation and Food Services
Utilities
Farm and Natural Resources
Other Services (excluding Public Sector)
Admin and Waste Support
Arts, Entertainment, and Recreation
Manufacturing
Real Estate
Construction
Management Consulting
Finance and Insurance
Health Care and Social Assistance
Professional and Scientific Services
Transportation and Warehousing
Information
-50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% California Vallejo

90.0 95.0
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Vallejo California
Index (2011 = 100)
City of Vallejo  2024 Economic Development Strategic Plan  Page 46

VALLEJO TARGETED INDUSTRIES
Our economic development strategy is built on the premise that specific types of businesses, tailored to Vallejo's infrastructure and regional marketplace, can drive
significant economic activity through their growth and
subsequent impacts. Focusing on the industries outlined in this plan aims to reduce retail leakage, enhance job
opportunities, attract more visitors, and stimulate
residential spending within the city. These industries have been selected based on rigorous criteria at the sector and employer levels, making them crucial for Vallejo's
economic growth.

Construction—Areas of Vallejo (Mare Island Blue Rock Springs, Waterfront, and Downtown) are likely to provide construction jobs and opportunities for new contractors for years to come, creating employment for current Vallejo residents (workforce development) Advanced Manufacturing—Vallejo’s assets in power, water, diverse workforce, and available space provide commercial opportunities for semiconductor manufacturing, green tech, and life sciences firms to expand their regional footprint.

Software/Film—Vallejo urban spaces (e.g., downtown, waterfront, and Mare Island), linked to the ferry terminal, could be a place for technology firms and film studios to find a unique mix of spaces connected to the other established Bay Area clusters.

Tourism—Utilizing areas on Mare Island, the ferry terminal, and downtown, Vallejo can expand its significant tourism footprint beyond North Vallejo (Fairgrounds, Six Flags) to drive more visitors to other parts of the city. The emerging food and spirits scene could be another asset to build both on the mainland and Mare Island. The city should focus on capturing regional tourists drawn to Vallejo by focusing on relative affordability to contain them and diversify its hospitality options to capture other segments of the tourism market.

Transportation — Leveraging an increased use of both the ferry terminal and ferry service based on events (linked to tourism) and the presence of Vallejo’s transit center and the marina could create transportation jobs around water transportation and tourism.

Wholesale Trade—Vallejo could use currently available spaces and its various freeways and travel infrastructure to become a regional hub for storing and distributing goods for residential and commercial needs. These links may connect to the wine industries in Napa and Sonoma counties, retail and healthcare sectors in all directions, and energy storage if renewable energy businesses set up shop.

Let’s look at the criteria we used to make these industry-sector choices.

Criteria for Industry Targets: Details
Cities have employers that offer goods (agriculture, natural resources, construction, and manufacturing), private-sector services (all other employers except for public-sector employers), CRITERIA FOR TARGETED INDUSTRIES:

WAGES HIGHER THAN STATE AVERAGE
JOBS MULTIPLIER GREATER THAN 1.25

FORECASTED GROWTH FOR CA AND US
LOCATION QUOTIENT > 1

POTENTIAL COMMERCIAL SPACE IN

VALLEJO TO SUPPORT
TAX-ENHANCING BUSINESS?
WORKFORCE DEVELOPMENT LINKS:

CAN THIS INDUSTRY FIND TRAINING
FOR WORKERS LOCALLY?
City of Vallejo  2024 Economic Development Strategic Plan  Page 47 and government services (public-sector employment, including public education). Our analysis considers private-sector employers as the drivers of economic development activities.

Relative Wages: Statewide Comparisons
One of the main goals of economic development is to create jobs with higher wages than other industries and compared to wages paid in other places where the targeted businesses could either be located or grow. Higher wages also reflect a way to persuade workers who live locally not to commute to different areas for work and to attract more retail sales as wages rise. The potential cost of these changes is an increase in housing prices for both buyers and renters, which is suitable for property owners but not for tenants.

Job Multiplier: Creating Broader Job Support from Targeted Jobs As the targeted industries expand the number of jobs, they produce “multiplier” effects that create or support other jobs and worker incomes. This support can reduce retail leakage, connect supply- chain links for hundreds of businesses and residents, and spread economic prosperity beyond Vallejo’s core commercial areas. For example, when a new manufacturing company arrives, demand for local fuel rises, more local restaurant meals are sold, and more construction work is performed onsite and off-site. These jobs then provide more support for local grocery stores and restaurants, retail sales, delays in medical office visits due to residents with lower income levels, and more personal services demand throughout the city economy. A larger job multiplier means more jobs are supported per new job. The multiplier effects and the key industries affected provide a workforce development script to follow in preparing a local workforce for change.

Is the Industry Export Focused (a Traded Sector), or Does It Provide Local Goods and Services? To expand on the multiplier idea, when the local
economy focuses on customers from outside the
local area, the gains from that business’s revenue
are more significant. A good example is visitor-
related businesses. When visitors come to
Vallejo, they spend money at Vallejo merchants
and restaurants and pay taxes. If local businesses
all used the local community as the only
customer base, the number of dollars circulating
would be smaller than using both the local
economy (for specific industries that serve local
businesses and residents) and the global economy to expand the market's total size. If the local economy exports more and imports less, local supply-chain gaps are filled using dollars from outside the local economy to generate more revenue for all businesses.

Depending on the type, manufacturing is unlikely to consider the local area as its primary market.

Businesses such as Factory OS, breweries, and bakeries might want to be located near labor and Source: Factory OS, City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 48 logistics options (two strengths of Vallejo). The City of Vallejo wants these businesses because they have significant multiplier effects and generate revenue from people beyond local residents.

Exporting goods and services and earning more income expand the overall size of Vallejo’s economic pie; goods and services sold outside Vallejo generate additional revenue for local businesses, which is why a focus on trade-sector employers is essential. However, it is important to recognize that a hotel is similar to retail in terms of determining new locations: demand must be there now and into the future, hence regional partnerships help find more hotel occupants versus a reliance on visitors to Vallejo alone.

National and State Growth to 2027: Thinking Three to Five Years Ahead Economic trends rarely originate at the local level. Job growth forecasts are a reality check about which industries will grow, stagnate, or decline over the next three to five years. Forecasts beyond the next five years are inherently risky. Many business cycles last five years or more, and technological and policy changes (e.g., tax rate changes) create shifting conditions. Sometimes political shifts do as well—for example, in the next five years, the government might invest more or less in green energy and climate change science. The amount and speed of those investments might open unforeseen new economic development opportunities or what the historical data suggest are growing industries. Our look at the industry forecasts is for California, Solano County, and the Bay Area, where anticipated growth in an industry occurred. Such change enhances the chance of being an industry target recommended for local economic development.

Location Quotient: Vallejo’s Past and Jobs Support by Industry One of the classic economic development metrics
used by cities and counties is called a location
quotient (LQ). In simple terms, the LQ is a ratio of
the number of jobs in a specific industry to total
local employment (e.g., the number of construction
jobs in Vallejo relative to the total was about 5.5%
in 2021) versus the same ratio at a higher
geographic level (in the state of California overall,
construction jobs comprised about 4.9% of total
statewide employment in 2021). The LQ is a ratio of
these ratios, a relative measure of an industry or a
type of job in the local area compared with a larger area that includes the local area. For Vallejo, the construction example above has an LQ greater than 1. This threshold value indicates this industry has a good “fit” with the local area because of its relative employment size locally versus the state on average. We never use the LQ alone, as it is backward-looking and not a forecast.

However, it suggests the relative fit of some industries rather than others as one criterion in filtering targeted industries.

Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 49 Commercial Space and Land: Buildings and Infrastructure Local economies are not suitable for every industry. Those with a diverse employer mix might still not match the industries or employer types that local residents or elected officials prefer in the city economy. One big reason is a lack of infrastructure, from water or sewer availability to a diverse housing mix, trained workers, poor road quality, and public safety. The available buildings, land, zoning, or combination might not fit some businesses. For example, some companies need more water, some need more electric power than others, and some require more parking. The suitability of available parcels and buildings for businesses considering Vallejo is likely industry-specific and can be the most critical, fundamental step in a site-selection process.

Tax Enhancing: Property and Sales/TOT Receipts Increase by Industry Choice Directly As with the job multiplier, we have estimates of “tax” multipliers; these data estimate how much state and local tax revenue is created for the industry in question by $1 in sales. This criterion should not be the sole focus of an economic
development strategy but should be considered as it
relates to tourism. City finances should consider the use of space (with a focus on tax rate areas or TRAs, where certain transactions can create a large change in the
cost basis of properties for tax revenue purposes, both commercial and residential), how having more workers
employed in Vallejo drives demand for local retailers
and restaurants and other taxable sales, and how
having more overnight stays and overall visitor spending can result from more commercial activity.

The passage of Measure P in 2022 might generate more discussion about focusing economic development efforts on new retail and restaurants. In general, these additional sales tax revenues are indirect effects of other economic development efforts, not the focus of those efforts.

Local Hiring: Creating a Pipeline from High School to Graduate School Hiring local workers, especially those who have struggled to find a good fit for their skills or training and those who commute to other places to work (primarily due to higher wages and opportunities), can be a good reason for focusing on specific industries. Businesses with links to local educational institutions can also provide jobs for new graduates who become local, working residents.

The workforce-development role of Solano Community College, Touro University California, and Cal Maritime is enhanced when their economic development partners create linked training programs for new and expanding businesses. These partnerships reduce the cost of searching for and training local employers. They can provide a local focus in hiring, such that wages and salaries remain in Vallejo at its retailers and other businesses. As part of the Bay Area economy, Vallejo's employers compete with global businesses for local residents and workers who would otherwise be incoming commuters to jobs in Vallejo. Official estimates of commuting patterns pre-pandemic Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 50 suggest that, for every two Vallejo residents who leave Vallejo every day for work, one person comes to Vallejo to work. This pattern is not unique to Vallejo (and is characteristic of Solano County in general) and suggests an opportunity for attracting some outbound workers to take local jobs.

Creating an Index to Filter Choices
We compiled the following initial weighting system to determine which industries might be targets of an economic development strategy (as shown in Table 2). Further consideration of the qualitative characteristics helps to sharpen our focus as we approach a final draft of the economic development strategic plan. The choice of targeted industries intends to be forward-looking; it is a combination of the impact on the local economy of new jobs and incomes that would flow to the businesses attracted, retained, and expanded and what they tend to pay their workers compared with the state average for that industry. Further, the forecasts of national and statewide job growth in the targeted industries help filter which ones might have strong multiplier effects and wages but are expected to decline over the next five years or to grow more slowly than other industries.

A Note on Broadband Initiatives
Broadband internet availability is like water or electricity: it is a necessary utility for any business.

The City of Vallejo needs to communicate to current and prospective businesses about Vallejo’s Internet Provider ( VIP) and the coming expansion of the City of Vallejo’s fiber-optic network. This project could help work-at-home initiatives of regional businesses, education, and healthcare reach all Vallejo households and expand to more commercial businesses (as of June 2023, some non-profits and private-sector employers are using this service). This network infrastructure can help economic and workforce development efforts as an asset previously unavailable in Vallejo and provides a more reliable and affordable service. Table 2 provides the criteria our team used to filter the best-fit industries for Vallejo; Table 3 provides different types of businesses that best fit Vallejo within the recommended targeted industries.

Table 2: Targeted Industry Criteria and Decision Weights Criterion Weight
Wages higher than the state average 10.0%
Job multiplier greater than 1.25 10.0%
Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 51 Primarily export market 25.0%
Forecasted growth of industry jobs at state and national economic levels in the next five years 15.0%
Location Quotient > 1 10.0%
Potential commercial space in Vallejo to support 20.0%
Tax-enhancing business? 5.0%
Workforce development links: can these workers in this industry be trained locally? 5.0% Not all these industries generate direct tax revenue for the City of Vallejo. The strategy discussed below usually relies on tourism (for which the income generated comes from outside the area, and almost all transactions are taxable). Still, it may not be as competitive, given the regional economy.

Table 3 maps the industry choices to the types of employers.

Table 3: Targeted Industry Choices
Industry Sector Employer Type
Advanced manufacturing Chemical manufacturing
Advanced manufacturing Computer and electronic product manufacturing Advanced manufacturing Machinery manufacturing
Ambulatory Health Care Services Outpatient Medical Offices, using Touro University as a Partner Advanced manufacturing Electrical equipment, appliance, and component manufacturing Construction/building trades Construction of buildings
Heavy Construction Heavy and civil engineering construction Heavy manufacturing Plastics and rubber products manufacturing Information/film Motion picture and sound recording industries Information Software and systems development/maintenance Light manufacturing Beverage and tobacco product manufacturing Light manufacturing Wood product manufacturing
Tourism Museums, historical sites, and similar institutions Tourism Performing arts, spectator sports, and related industries Tourism Scenic and sightseeing transportation
Transport/logistics Support activities for transportation Transport/logistics Transit and ground passenger transportation Transport/logistics Water transportation
Wholesale Merchant wholesalers, durable goods
Our team heard about a lack of retail depth and breadth in Vallejo from residents, employers, and government staff alike. The role of retail is generally as a follower; retailers consider residents with income or wealth or large visitor flows or both to provide the revenue necessary to substantiate the investment in space, tenant improvements or construction and then hiring and operations.

Vallejo will attract more and different types of retailers as its household income levels rise, creating more jobs and attracting more visitors. Thus, retail changes will follow the growth of other industry sectors. A concern about narrow retail options is retail leakage.

City of Vallejo  2024 Economic Development Strategic Plan  Page 52 LEAKAGE ANALYSIS: SUMMARY
The City of Vallejo tracks retail leakage as part of its quarterly taxable sales and sales tax revenue estimates. Retail or restaurant leakage occurs when residents spend outside the city economy (based on the city’s administrative limits on a map).

Leakage studies describe how households in the city
spend at local merchants versus those outside the city
limits. Leakage analyses focus on retail spending versus broader spending on services; taxable sales data are
available for retailers and restaurants. Visitor spending is another source of local demand that increases the
overall supply of retail and restaurants, reducing
leakage. Leakage analyses do not guarantee that
bringing business in the underserved category to Vallejo will reverse leakage or Vallejo residents will patronize it.

Some of our interviews, community meetings, and survey
work suggested that crime led to shopping outside
Vallejo and perhaps the lack of certain retailers coming to Vallejo. While it is difficult to measure precisely the cause-and-effect relationships, continued uncertainty over either customer or business safety likely leads to movement of both to places outside of Vallejo.

What These Data Tell Us: The leakage data provide guidance to Vallejo’s Economic Development Department specific types of retailers to pursue as targeted industry growth creates changing incomes and spending patterns within Vallejo toward Cycle 2. When leakage is turned to surplus, more jobs, revenues and tax receipts are created for Vallejo’s economy and city government.

Leakage Methodology and Conclusions
The methodology uses regional averages from the Bureau of Labor Statistics (BLS) on how households spend income after paying taxes and savings decisions (see http://www.bls.gov/cex/). The analysis of household spending starts with recent estimates of MHI from the Census Bureau and the estimated number of households (HH) from the California Department of Finance, using occupied housing units in that estimate
oThe aggregate household income is MHI x HH, which is reduced by a 5% savings rate after taxes paid by Vallejo’s households, 25% on average oThe remaining funds are then spent based on BLS’s estimated spending patterns by retail and restaurant category
oThe remaining “disposable” income is distributed, based on the spending patterns from the BLS, as a measure of “demand” by Vallejo’s residents. Supply is based on the taxable sales in each category

A THEME FROM OUR DISCUSSIONS
WITH BOTH VALLEJO’S RESIDENTS AND

BUSINESSES WAS THE INABILITY TO

ACQUIRE GOODS OR SERVICES IN

VALLEJO, AND THUS A NEED TO TRAVEL

OUTSIDE (EVERYTHING FROM SPECIFIC

RETAIL OR RESTAURANTS TO

COMPUTER OR TECHNICAL SERVICES)
VALLEJO TO FIND A VENDOR. WE HEARD

MANY TIMES ABOUT THE WANT FOR

MORE GROCERY AND FRESH FOOD
VENDORS.

City of Vallejo  2024 Economic Development Strategic Plan  Page 53 oFood and grocery stores are assumed to sell approximately 30% of their goods as taxable sales rather than nontaxable food.

Taxable sales leakage changes over time and depends on how the BLS data distribute household spending among retailers and restaurants and how neighboring cities and counties market to Vallejo’s residents to attract those sales away from their competition. The difference between supply and demand is leakage; when it is negative, it means that leakage flows to other areas. The existing “gap” could be filled by having more retailers or expanding the current supply of merchants in Vallejo as part of economic development activities. Table 4 lists the estimates as of Quarter 4, 2022. The table shows that we are generally oversupplied with retail, although some categories are lacking.

This partly explains the higher-than-average retail vacancy rate in Vallejo.

Table 4: Taxable Sales Surplus (Leakage), Q4 2023, City of Vallejo, Current Dollars Industry/Retail Outlet Supply Demand Surplus (Leakage)
Discount dept. stores $58,124,400 $9,442,200 $48,682,200 New motor vehicle dealers $65,512,400 $23,176,400 $42,336,000 Building materials $29,473,800 $8,583,800 $20,890,000
Quick-service restaurants $28,460,100 $17,167,700 $11,292,400 Service stations $45,618,900 $34,335,400 $11,283,500
Casual Dining $20,123,900 $12,875,800 $7,248,100
Heavy Industrial $6,563,400 $858,400 $5,705,000
Cannabis-related $5,838,900 $1,716,800 $4,122,100
Convenience stores/liquor $8,373,300 $6,867,100 $1,506,200 Leisure/entertainment $5,180,300 $5,150,300 $30,000
Light industrial/printers $0 $858,400 ($858,400)
Electronics/appliance stores $9,327,700 $10,300,600 ($972,900) Specialty Trade Contractors (Construction) $6,529,200 $8,583,800 ($2,054,600) Drugstores $2,828,800 $5,150,300 ($2,321,500)
Specialty stores $6,851,000 $9,442,200 ($2,591,200)
Family apparel $10,228,500 $14,592,500 ($4,364,000)
Variety stores $3,473,000 $9,442,200 ($5,969,200)
Department stores $3,157,700 $9,442,200 ($6,284,500)
Automotive supply stores $6,411,700 $12,875,800 ($6,464,100) Used-car dealers $7,222,200 $13,734,200 ($6,512,000)
Transportation/rentals $3,477,700 $12,017,400 ($8,539,700) Fast-casual restaurants $5,963,500 $17,167,700 ($11,204,200) Home Furnishings $3,511,900 $25,751,500 ($22,239,600)
Grocery stores $51,348,700 $76,925,900 ($25,577,200)
Auto repair shops $4,513,300 $51,503,100 ($46,989,800)
All Others $23,323,100 $7,725,500 $15,597,600
Totals $421,437,400 $405,687,200 $15,750,200
Sources: HdL, California Department of Tax and Fee Administration, Bureau of Labor Statistics, Census Bureau When considering Vallejo in competition and potential partnership with other areas, it is helpful to consider the approach to economic development by different cities of similar size, demography, relative income, and housing price levels. The next section looks at peer and aspirant cities as potential models for Vallejo to follow.

City of Vallejo  2024 Economic Development Strategic Plan  Page 54

PEER AND ASPIRANT CITIES
The economic development staff in peer and aspirant cities constantly look for places to emulate and learn from economic development activities. No two places are alike, but there are critical reasons for observing other cities and regions:
To gain a perspective on best practices and what may be working or not working To create a practice in city economic development of considering changes that originate outside the city economy, as everyday tasks and requests can lead to excessive internal focus.

We compiled an initial list for Vallejo to consider based on criteria used by our team for economic development projects. The criteria in the table determined the peer and aspirant cities for Vallejo.

Table 5: Peer and Aspirant Region Choice Criteria
Peer Criteria Aspirant Criteria
Similar population size (+/- 5%): assuming cities
have similar public-safety conditions and
geographic size
Data similar to Vallejo based on peer analysis
Similar demographics: ethnic/racial mix and
educational attainment
Proximity to a larger, urban area
Proximity to a larger, urban area Major employers are stable or have increased hiring.

Similar home prices relative to regional and median
annual wages
Currently have more manufacturing, construction,
or tourism than Vallejo
Similar regional industry mix: competition and local
businesses that drive the local economy are similar
Current economic development efforts are about
site selection and regional partnerships.

Similar regional commuting patterns Currently have a significant relative increase in MHI compared with 2011
The choices of aspirant cities are more nuanced than those of peers because aspirant cities should demonstrate what Vallejo could accomplish over five to ten years. Aspirant places should have unique assets and use them for economic development, making the local area distinctive and attractive to businesses. The starting point for both peer and aspirant cities is similarity to Vallejo in population size (using recent data from the Census Bureau and the California Department of Finance), which means similarity in the number of housing units and the mix of services, retailers, and restaurants in the city.

These cities might choose to close supply-chain gaps for regional employers. Proximity to larger economic areas (Vallejo is a suburban city in the Bay Area) offers opportunities for doing so. The population growth suggests that workers and families are attracted to the aspirant city as a place to live; when populations shrink, we should assume the available workforce is also shrinking. Let us now look at these choices. In a supplemental document, we provide an overview of the critical elements, comparing each peer and aspirant place to Vallejo with the latest data available. We also provide violent crime data per 100,000 residents for comparisons to Vallejo (in 2022, Vallejo City of Vallejo  2024 Economic Development Strategic Plan  Page 55 was estimated to have 886 violent crimes per 100,000 residents by the Federal Bureau of Investigation’s Crime Data Explorer1).

Peer Cities
Peer cities are similar to Vallejo in population, demography, industry, or location. Tracking these cities' economic changes and accomplishments can help inform Vallejo and serve as a best practice or case study. Three peer cities were chosen for Vallejo to consider based on the criteria mentioned above. Additional details are available in a supplemental document to this plan called “Peer and Aspirant Cities, City of Vallejo, June 2023”.

Clovis, CA
Clovis is near a more significant urban center, sharing a border with Fresno. The share of the population over age 25 is smaller in Clovis than in Vallejo as of 2021 (the latest data available from the Census Bureau’s American Community Survey or ACS). In 2021, 43.6% of Clovis’ households generated over $100,000 in annual income (2021 ACS), which was an increase from 30% in 2011; in 2011, the share in Vallejo was 25.9%; in 2021, it was 38.2%. Clovis is less diverse than Vallejo overall, but Clovis’ Hispanic population was estimated to be 49.5 percent of the city’s population in 2021 (Vallejo’s Hispanic population was 28.8 percent in 2021 per Figure 14). The industry mix in Clovis is similar to that of Vallejo as of 2022. In 2022, housing prices in Clovis were 9.94 times the median annual wage levels in Fresno County, whereas those in Vallejo were 12.54 times the median annual wages in Solano County. Clovis had an estimated 213 violent crimes for every 100,000 in 2022.

Simi Valley, CA
Simi Valley is close to Los Angeles, California. Simi Valley’s population share over age 25 is similar to Vallejo’s. 34.6% of Simi Valley residents over age 25 years have a BA or above (2021 ACS); an increase from 31.3% in 2011 in Simi Valley; in 2021, the share in Vallejo was 27.5%. In Simi Valley,

29.8% of households generated over $100,000 in annual income in 2021; an increase from 20.4% in Simi Valley in 2011; the share in Vallejo was 38.2% in 2021, up from 25.9% in 2011. Simi Valley is less diverse than Vallejo; Simi Valley had 25.8% Hispanic residents to Vallejo’s 28.8% in 2021. Simi Valley had a similar proportion of construction, leisure, and hospitality in 2022, but more manufacturing and professional services than in Vallejo. In 2022, housing prices in Simi Valley were

18.08 times the median annual wage level in Los Angeles County; those in Vallejo were 12.54 times the median annual wage in Solano County. Though the two cities have similar wage profiles, 1 Crime data come from the Federal Bureau of Investigations (FBI), Crime Data Explorer:
https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/home
City of Vallejo  2024 Economic Development Strategic Plan  Page 56 housing prices are 30% higher in Simi Valley than in Vallejo in 2022. Simi Valley had an estimated 108 violent crimes for every 100,000 in 2022.

Allentown, PA
The population under age 25 is smaller in Allentown than in Vallejo, with 17.2% of Allentown residents over age 25 having a BA or above (2021 ACS); the share of those in Allentown with a BA or higher degree in 2011 was 16.4% compared to Vallejo’s 27.5%. Only 16.6% of Allentown households generate over $100,000 in annual income (2021 ACS), an increase from 8.7% in 2011, compared with 38.2% in Vallejo in 2021. In 2021, Allentown’s Hispanic population was 54.5% in 2021 (Vallejo’s 2021 population was 28.8% Hispanic), and Allentown is almost as diverse as Vallejo overall; in 2021, the black, indigenous, and people of color (BIPOC) population share in Vallejo was

76.5%, compared with 70.1% in Allentown. In 2022, housing prices in Allentown were 7.54 times the median annual wage levels in the Lehigh Valley metro area near the northwestern New Jersey border compared to Vallejo’s at 12.54. Allentown does have an intangible aspect that makes it similar to Vallejo in that it lost the steel industry (Bethlehem, PA, is a “sister city” adjacent) and has lingering effects from that change. Allentown had an estimated 344 violent crimes per 100,000 people in 2022.

Allentown Factory Site, Photo by Joe Dudeck, Unsplash
City of Vallejo  2024 Economic Development Strategic Plan  Page 57 Aspirant Cities
Aspirant places are models that Vallejo could follow in its economy or offer a vision of that journey.

Based on the abovementioned criteria, we chose these three cities for Vallejo to consider.

Concord, CA
Concord has a population share of those over age 25 similar to Vallejo, with approximately 36.8% of residents over age 25 having a BA or above in 2021 (2021 ACS); the share in Vallejo in 2021 was

27.5%. An estimated 50% of Concord’s households generate over $100,000 in annual income (2021 ACS), an increase from 31% in 2011; Vallejo’s share in 2021 was 38.2%. Concord is more diverse than Vallejo regarding the Hispanic population (47.4% in 2021), where Vallejo’s Hispanic population is 28.8%; Concord’s share of the BIPOC population is 53.8% in 2021. In 2011, Concord had more retail and other personal services and about the same amount of manufacturing as Vallejo. In 2022, Concord housing prices were 9.94 times the median annual wage levels in Contra Costa County; those in Vallejo were 12.54 times the Solano County median annual wages. Concord shares labor and housing markets with Vallejo; Concord is mentioned in resident meetings as a place that Vallejo residents visit for shopping and recreation. Concord is historically a Navy town, with an initiative to “reuse” a naval weapons station site. Concord had an estimated 110 violent crimes per 100,000 people in 2022.

Palm Bay, FL
Palm Bay had 21.3% of residents over age 25 years that had a BA or above (2021 ACS), an increase from 17.1% in 2011; in 2021, the share in Vallejo was 27.5% in 2021. Approximately 19.2% of Palm Bay households generate over $100,000 in annual income (2021 ACS), an increase from 11.4% in 2011; the share in Vallejo in 2021 was 38.2%. Palm Bay is less diverse than Vallejo overall (Palm Bay has a smaller BIPOC population as a percentage of the total), but the African-American population was of similar proportions to Vallejo (Palm Bay's 16.5% to Vallejo’s 17.5% African-American in 2021). In 2022, Palm Bay housing prices were 9.14 times the median annual wage levels in its regional (metro) economy; those in Vallejo were 12.54 times the Solano County median annual wages. Palm Bay is near Melbourne, FL, and has a Naval Air Station. It also has a large regional community college located in the city. Palm Bay is part of the “space coast” (i.e., near Cape Canaveral). Palm Bay had an estimated 110 violent crimes per 100,000 people in 2022.

Round Rock, TX
Round Rock is near Austin, TX, a fast-growing tech hub in the United States. In 2021, Round Rock’s population share of those over age 25 was similar to Vallejo’s, but 42.0% of Round Rock’s residents over age 25 had a BA or above. This increased from 37.0% in 2011, while in 2021, the share in Vallejo was just 27.5%. For Round Rock’s households, 42.4% were estimated to generate over $100,000 in annual income in 2021, an increase from 31.2% in 2011. In Round Rock, 50% of the population is BIPOC (24 percentage points less than Vallejo), mainly Hispanic (27.7% in 2021 to City of Vallejo  2024 Economic Development Strategic Plan  Page 58 Vallejo’s 28.8%). Net commuting flows into Round Rock were positive in 2020 but were negative in 2011; economic development attracts regional workers to Round Rock, who are likely leaving Austin for nearby but less-
expensive commercial space. In
2022, Round Rock housing
prices were 12.05 times the
median annual wage levels in
its regional economy, which
includes Austin, TX; those in
Vallejo were 12.54 times the
Solano County median annual
wages. Being near Austin gives
Round Rock’s residents access
to technology jobs in Austin;
Dell Computer's world
headquarters are in Round
Rock. The key economic
development driver in Round Rock is its chamber of commerce: the city has a role but partners with it. Round Rock had an estimated 151 violent crimes per 100,000 people in 2022.

Our team presents these choices to create a structure for observing other places and what they may be doing right/wrong or similarly to Vallejo, regardless of whether an internal or external perspective is taken. The Economic Development Department should engage in some simple practices and use of tools to monitor these places.

Tools to use in monitoring these places:
Whether physically or virtually, attend one business event in these areas that focuses on economic development
Set up Google alerts to monitor news in these areas about local businesses or economic development
Subscribe to a local or regional business journal or news outlet or schedule a quarterly check of the latest business stories.

Our team learned a lot from communicating with local residents, employers, commercial real estate owners, and professional elected officials in the City of Vallejo and beyond, as well as workforce development (countywide and local education and training programs from K–12 to doctoral programs). The communications plan below uses that learning and the data above to formulate the action steps and roadmap for Vallejo’s Economic Development Department until 2030.

KEY PERFORMANCE INDICATORS
Key performance indicators (KPIs) are a classic tool for such communications. KPIs in economic development serve three primary purposes:

Source: Round Rock Chamber of Commerce
City of Vallejo  2024 Economic Development Strategic Plan  Page 59 What These Data Tell Us: Think of the KPIs as a tracking device for progress and a way to communicate to all stakeholders as part of a broader communications plan for Vallejo Economic Development Department about progress toward larger goals and simply what activity has taken place and borne fruit as actions are taken per the Roadmap above. It is important to see these KPIs as measuring economic development activities and not the progress of Vallejo socially. A citywide dashboard should be developed to monitor educational, infrastructure investment, workforce and economic development progress as a whole, where these KPIs may inform that dashboard. Our team worked to determine what metrics were best suited to honestly and efficiently measure and communicate progress, given Vallejo’s Economic Development Department goals as provided by the City of Vallejo. This plan recommends the following KPIs.

Unemployment Rate: The unemployment rate in Vallejo is a monthly measure of the local residents, as officially stated. The unemployment rate does not measure job losses at Vallejo’s employers, except it includes those workers who also live in Vallejo. All cities and counties have monthly unemployment estimates in California, which makes regional comparisons easy.

Taxable Sales in the Aggregate: Rising taxable sales
signal more spending ability in the city by local
residents or visitors who come and spend in the local
economy (a measure of economic vitality). Taxable
sales should be considered after inflation, which can
increase due to price increases and not because more
goods and services (like restaurant meals) were sold.

Change in Jobs at Vallejo Employers: This is a classic
KPI for economic development, but it is tricky to
control in practice. All municipalities want job
growth, but more jobs may be due to macroeconomic factors versus local initiatives around economic development. Job growth can also provide socioeconomic progress, mainly as rising incomes help school districts, religious groups, retailers, and other employers. A distinction should be made for head of household jobs, jobs with incomes above a certain living wage threshold.

Median Household Income: Median household income can reflect progress in regional job markets, specifically for local residents. As Vallejo’s economy sees rising incomes and home prices, a cleaner, safer city and enhanced commercial activity should become more visible. More taxable sales (especially with the passage of Measure P in 2022) and a higher percentage of households as homeowners all generate more revenue for the City of Vallejo and strengthen its economy. Quality-of- KPIs and Direction-of-Change
Goals (in parentheses)
•Unemployment rate ()
•Taxable sales ()
•Vallejo’s employers hiring ()
Source: The Wet Mile
City of Vallejo  2024 Economic Development Strategic Plan  Page 60 life metrics may also include breadth of retail options, quality of K- 12 education, and less violent crime per 100,000 residents.

Median Home Prices: Rising prices may indicate a better quality of life perceived by local residents, especially if accompanied by more jobs in Vallejo and more visible commercial activity. Rising home prices can be seen as local and regional workers increasing the demand to live in Vallejo for reasons; lower prices (and even slower-growing prices when regional prices are rising) can be perceived as signs of concern about living and working in an area.

Assessed Value of Property: Assessed property values combine rising median home prices and better market returns in commercial real estate. Vallejo should monitor how its tax rate areas (TRAs) are progressing regarding property values based on new transactions.

Vacancy Rates (commercial and residential): These data show how the region and the world consider Vallejo a place to do business. For residential vacancies, annual data are available from the California Department of Finance and the Census Bureau to estimate the change in Vallejo’s housing units and housing utilization compared to other places in California and throughout the United States.

City Population: Changes in Vallejo’s population should be compared to other Bay Area cities and the peer and aspirant cities. A smaller population suggests people leaving or an aging population.

This KPI should be used with residential vacancies to monitor real-time changes in the age of the local population and the upcoming strains local employers face when finding employees.

Total Business Counts and Mix: When using a targeted-industry strategy, monitoring both changes in the number of businesses (and employee counts) in industries of focus and supply-chain partners helps monitor progress toward being a place that attracts the targeted industries.

Hotel Occupancy Rate and Average Daily Rate (ADR): Working with Visit Vallejo and monitoring how local hotels and motels are doing on price and occupancy is an excellent way to monitor how tourists are looking at Vallejo as a place to stay overnight versus just coming for the day (for example, visiting Six Flags and then leaving at night rather than staying). These trends could inform a tourism strategy. This is a critical KPI, as rising ADR and occupancy rates tie to taxable sales and more transient occupancy tax (TOT) revenue for the City of Vallejo.

Grant Funding Deployed: Grant funding needs to be a focus of regular activity for the City of Vallejo’s Economic Development Department. Vallejo’s socioeconomic history and current situation qualify for funds to revitalize local areas and address diverse populations' needs. Grant funding can also help specific projects continue to move forward after American Rescue Plan Act (ARPA) funding runs out in year 1 of Cycle 1 of the economic development strategic plan. •Median household income ()
•Median home values ()
•Assessed value of property ()
•Retail vacancy ()
•Office vacancy ()
•Residential vacancy ()
•City population ()
•Total business counts and mix ()
•Occupancy rate and ADR ()
•Grant funding deployed ()
City of Vallejo  2024 Economic Development Strategic Plan  Page 61

COMMUNICATIONS PLAN
The communications plan below was developed through reaching out to Vallejo residents and businesses. EFA’s outreach across Vallejo was part of the assignment to understand Vallejo’s economic, political, and social opportunities and concerns. This effort involved understanding and learning about the current methods and platforms used by Vallejo’s Economic Development Department and Vallejo’s Communications Division (City Communications) to engage with businesses, residents, and external stakeholders. The insights gained were then used to recommend communication strategies to support Vallejo’s economic development efforts. This section uses information gathered during that outreach process, including data our team generated from Vallejo’s recent past regarding city communications about Vallejo as a place to do business, infrastructure to communicate, and public reactions since 2012.

WHAT WE LEARNED: DISCOVERY OVERVIEW
We gathered feedback on preferred communication methods and Vallejo's challenges and opportunities toward 2030. We received input from approximately 200 individuals, including leaders of companies and nonprofits, residents, workforce and economic development partners, and elected officials. The survey questions and interview guide used in this research are in the Appendix (the Appendix section is called “Facilitating Community Outreach, Voice and Expectations”), which draws from our extensive experience in similar projects.

The following summarizes what our team learned after speaking with over 300 people who work or live in Vallejo. These data points summarize feedback from our conversations, group meetings, and gatherings with residents throughout Vallejo from July 2022 to May 2023.

Assets: Vallejo’s Economic Development
Department has the tools and expertise to
support a strong communications strategy
The following are not statements of fact. They are
summaries of opinions we heard in interviews and town hall meetings with city council members.
Main media: MyVallejo, Vallejo Weekly, Facebook,
and Nextdoor are popular media platforms and tools
on which residents rely to learn about what is
happening in Vallejo.
Vallejo residents are engaged, optimistic, and
protective of their home community.
Vallejo’s location, diversity, weather, and unique assets can be leveraged to design positive messages.

City of Vallejo  2024 Economic Development Strategic Plan  Page 62 Challenges: several factors or negative perceptions must be overcome The following are not statements of fact. They are summaries of opinions we heard in interviews and town hall meetings hosted by city council members during April and May 2023. Two key causes may be creating themes in these opinions: (1) high turnover in key city government staff positions and (2) a need to augment communications from the City of Vallejo government and elected officials about new initiatives and progress (Mare Island’s future is a good example). •City government inspires little confidence in efficiency, performance, and leadership. •The City of Vallejo is not considered transparent or business-friendly. •Leadership is seen as reactive, lacking vision, and having conflicting goals among city councilmembers.
•Residents and businesses are concerned about the level of municipal services in terms of crime, response times, road quality, and homelessness.
•The public is impatient with job and business progress on Mare Island. •Families and businesses are hesitant about moving to Vallejo due to its low-performing public education system, which undermines the city’s prosperity. •Vallejo, other than Mare Island, is perceived as being built out in terms of commercial and residential development, and the existing commercial real estate stock is antiquated and may remain vacant for decades.

Vallejo As a place for business, Opportunities to share with broader audiences
The following are not statements of fact. They are summaries of opinions we heard in interviews and town hall meetings with city council members.
Vallejo’s location in the Bay Area offers proximity to major consumer, recreation, and entertainment markets.
The downtown and waterfront areas can attract more visitors and residents with a more focused and aggressive visitor strategy.
The Ferry Terminal is a unique regional asset that, if correctly leveraged, can have a tremendous economic impact on downtown Vallejo and the city. The diversity of the city’s population could be celebrated more with multicultural events and spaces.
Three higher-education institutions in the city offer training opportunities for residents that can help prepare local workers, including people who currently work outside Vallejo. The Solano 360 project can transform North Vallejo but needs to begin meaningfully. While this is a county project beyond the city's control, it will heavily impact Vallejo, and the city should continue to be an influential partner in the project.

City of Vallejo  2024 Economic Development Strategic Plan  Page 63 COMMUNITY OUTREACH STRATEGY, CYCLES 1
AND 2
In the future, Vallejo’s Economic Development Department must be proactive and consistent in its communications strategy and be efficient with resources. This means partnerships whenever possible. Vallejo’s Economic Development Department should view future communications as part of a broader marketing strategy rather than simply municipal, public-service communications.

Given the capacity constraints of the City of Vallejo’s communications workers (the City Manager’s office has five (5) communications employees in 2024 to cover all city needs), our recommendations assume expanding partnerships with regional chambers, Visit Vallejo, and employers, and the County of Solano when appropriate, and more staffing as possible.

Current Assets for Vallejo’s Economic
Development Department Communications
Recommended Investments
•MyVallejo, the city’s main website, using Bang
the Table as a vendor
•Media and video partnering with city PIO
•Engagement on social media through the City
PIO office
• Vallejo Weekly
•Video editing and production
•Dedicated social media content lead
•Customer Relationship Management
(CRM) software
•Chat boxes for engagement with the
community
Vallejo’s Economic Development Department communications should be consistent, fact-based, and provide a vision for the city’s economy:
Vallejo must overcome negative perceptions by increasing the number of positive stories in all media.
Vallejo must use consistent, regular messaging using the city’s vision for Vallejo as a place to do business and honestly reflecting on changes that may affect the city’s public perceptions. Such communications must support Vallejo’s competitive position regionally. Communications may need to change for different audiences and how local actions affect that audience. For example:
oimpacts new businesses have on the local economy (revenue, jobs, increased wages); oimpacts new revenue from more visitor spending supports local businesses, taxes, and eventually city services for local residents and employers; onew businesses with Vallejo-based ownership or help diversify city retail or service options for residents.
Communications should include video and local employers as much as possible.

City of Vallejo  2024 Economic Development Strategic Plan  Page 64 Going forward: Audience-specific action steps
Every audience has different needs and expectations. Each requires distinct, unique messaging using preferred and most effective media. Our recommended actions aim to elevate Vallejo as a place to do business in front of regional press, social media, and local residents. Table 6 gives an overview of the communications plan, with more detailed descriptions of activities for engaging each audience.

Table 6: Summary of the City of Vallejo Communications Plan

AUDIENCE OBJECTIVE ACTION ITEMS
LOCAL EMPLOYERS Build trust through a
collaborative and broad
approach to providing
business assistance in
partnership with private-
sector business groups
•Promote and prove a “no wrong door” approach
for businesses seeking services and assistance
from the City of Vallejo, e.g., customer service and
cross-trained front-counter staff; an online
inventory of local programs and service providers
•Partnering with regional chambers and other
organizations, check in on small businesses;
identify possible assistance needed
•As staff capacity permits, personally visit larger
employers and identify potential assistance
Vallejo Economic Development can provide
•Declare ten months of the year specific “industry”
months in City Council and visit businesses in
those industries annually
RESIDENTS Rebuild public confidence in
city government and create
public support for economic
development
•Attend regularly schedule council community
meetings to hear from and communicate directly
with residents
•Hold periodic district events hosted by elected
officials to hear feedback (town halls, e.g.)
•Semiannual surveys that focus on a specific topic
or issue, e.g., shopping, dining, community
events, recreation, using businesses in Vallejo
E.D. PARTNERS,

BROKERS,

DEVELOPERS, SITE

SELECTORS,

PROSPECTIVE NEW

BUSINESSES
Manage perceived risks and
negative perceptions
associated with doing
business in Vallejo
•Promote available sites
•Create case studies that show how the City of
Vallejo can generate wins for businesses, such as
fast-tracking tenant improvement permitting,
providing access to city-owned properties,
connecting Vallejo businesses to customers from
the ferry service, expanding access to broadband
and downtown area as examples
•Incorporate the City of Vallejo’s economic
development values and vision in all messaging

ELECTED

OFFICIALS
Keep elected informed and
engaged to receive ongoing
support for economic
development initiatives and
programs
•Regularly report progress toward goals and key
performance indicators, what is working, what
challenges exist, and what proactive measures are
being taken in check-in meetings and public
meetings.

City of Vallejo  2024 Economic Development Strategic Plan  Page 65 Audience: Local Employers
Vallejo’s Economic Development Department is committed to a proactive approach. Constantly ask: what challenges are current and potential businesses facing that we, or another City of Vallejo department, could potentially resolve? Successful business outreach programs are those that foster collaboration, such as partnerships with local and regional business assistance providers and chambers of commerce.

The City of Vallejo particularly values its partnerships with regional cultural chambers. These alliances enable the city to reach business owners from diverse backgrounds and create culturally- sensitive messaging, promoting diversity in business ownership and markets. An established relationship with existing employers provides an early warning system if local employers require assistance with issues that constrain company growth or expansion efforts. If the City of Vallejo and partner organizations are not readily available and able to help local businesses, these businesses might leave or not expand locally.

In Cycle 1 of this plan, the City of Vallejo can partner in current efforts and build a foundation for more employers and industries throughout Vallejo. Communications in Cycle 1 need to show that Vallejo is regionally competitive by supporting current private-sector efforts. In Cycle 2, communications can shift to propelling Vallejo to the “top of wallet” regarding site-selector choices for investing in Vallejo. New investments create stories and show private-sector vision.

As of 2024, Vallejo is not ready to put a business attraction strategy into action; Vallejo’s Economic Development Department first needs to focus on current projects and consider what assets the City of Vallejo has to engage in economic development as a partner; projects are underway (e.g., Mare Island Company), and we have recommended a citywide capital-facilities plan to identify more assets that could help catalyze economic development within Vallejo.

What We Learned: Employer Surveys and Interviews
Local employers should be viewed as Vallejo’s commercial “residents”. We used a business survey (see Appendix for Tasks 2.1-2.3, Communications Plan and Messaging) to
gather information and opinions from the regional
employers. Some survey results are summarized here.

Other survey comments inform city staff on the business community’s attitudes and opinions.

These are opinions, not statements of fact, but suggest where more communication may be needed.
Businesses want a larger volume and better quality of municipal services regarding police response, general public safety, road quality, and reduced visibility of the homeless.

EXAMPLE: THE CITY OF ROHNERT PARK IN

SONOMA COUNTY IS A REGIONAL EXAMPLE OF

GOOD PLANNING AND EXECUTION FOR A

HOMELESS POPULATION USING REGIONAL

PARTNERSHIPS, INCLUDING HOW TO

COMMUNICATE ABOUT THE HOMELESS
POPULATION IN COMPASSIONATE WAYS.

City of Vallejo  2024 Economic Development Strategic Plan  Page 66 Employers generally believe Vallejo can become a first choice in doing business regionally, but the City of Vallejo needs to provide better public safety and more business assistance. Vallejo’s location, Mare Island, and the Ferry Terminal are all recognized as unique assets. Permitting processes are slow, and fees exceed those in other Bay Area cities. The City Council needs to be more business-friendly, visit businesses more often, and provide pathways for permitting, especially for big projects and employers. BIPOC businesses must be embraced by the City Council to support diversity.

Communication Plan for Vallejo Businesses
OBJECTIVE Outreach focuses on building trust with local employers and solving problems.

MESSAGE Vallejo employers enjoy a “no wrong door” approach when seeking assistance.

Vallejo’s Economic Development Department unit and front counter staff should have a customer-service attitude, solve problems for applicants, and navigate them to solutions or to the applicant’s inability to complete the project.

EXPECTED

OUTCOMES
Vallejo’s Economic Development Department is top of mind to help local businesses More businesses staying and expanding in Vallejo
Demonstrate to external audiences that the City of Vallejo continues to care about a business’s success long after its grand opening
An efficient team that is well-informed and effectively creates solutions ACTIONS Create an employer database including (at a minimum) contact information for key management personnel; update through continued contact and annual full update As staff permits, establish regular visitation schedule to employers, partnering with regional chambers and workforce development, based on industry “months” Conduct an annual short e-survey to check in with employers to identify workforce, training, financing, or other needs or concerns
Establish follow-up procedures when Vallejo’s Economic Development Department is asked to help a business and communicate what was done to help Encourage employers to subscribe to MyVallejo and Vallejo Weekly as part of information sharing and outreach about new programs and progress Use MyVallejo to reach out to businesses periodically in partnership with chambers (e.g., Black-owned business outreach should partner with Solano County Black Chamber of Commerce as the lead)
With the employer’s permission, use MyVallejo, Vallejo Weekly, and social media to share good news and congratulate businesses on hirings, physical expansion, new markets, products, services, or technology

RECOMMENDED

IMPLEMENTING

PARTNERS
City of Vallejo Economic Development Department (lead) and PIO Chambers of commerce
Workforce Development Board of Solano County
Solano County Small Business Development Center
Community colleges and local universities
INITIATE Within the first 180 days of Cycle 1
City of Vallejo  2024 Economic Development Strategic Plan  Page 67 Audience: Residents
The support and confidence of Vallejo
residents are critical for establishing trust
and optimistic perspectives on Vallejo’s
Economic Development Department
activities. Vallejo’s residents must also be
realistic about what Vallejo’s Economic
Development Department is doing to help
local businesses and residents.

It will take time to achieve goals. Our team
found in our town hall gatherings that
although comments in surveys generally
took a negative tone about current
conditions, residents were optimistic
about Vallejo’s future. During the
planning process from July 2022 to April 2023, our team conducted surveys and listening sessions with residents to obtain feedback and develop a habit of soliciting residents' opinions on specific activities to help inform Vallejo’s Economic Development Department.

It is essential to obtain responses from a cross-section of local residents in different parts of Vallejo. To encourage participation, surveys were intentionally kept short and anonymous. The primary identifying information we requested was the council district in which residents lived.

What We Learned: Residential Surveys and Meetings
We used residents' surveys and group meetings in different parts of Vallejo to generate ideas and opinions. Thematically, our team made the following conclusions:
Vallejo has the potential to be a place for doing business, primarily in downtown and waterfront areas.
Mare Island can be a regional standout for tourism and jobs, but residents want change, particularly economic change, throughout the city.
Residents' safety is a concern regarding where they choose to shop and play in Vallejo and where they go when visiting other places regionally.
Facebook and Nextdoor are popular ways that residents use to find out what is going on in Vallejo, along with city council meetings, newspapers, and Vallejo Weekly. oHow active a role City Communications should take means more staff time, but could spread more positive messages as available.
Residents want more information about what is happening throughout Vallejo (Mare Island, Solano 360) and other projects and changes throughout the city’s main business districts.
The two main reasons people live in Vallejo are the climate and proximity to the Bay Area.

OUR RESIDENT SURVEY CONSISTED OF FIVE QUESTIONS.

1. HOW DO YOU DESCRIBE VALLEJO TO PEOPLE YOU MEET?

2. WHAT MEDIA DO YOU USE TO KEEP UP TO DATE WITH
WHAT’S HAPPENING IN VALLEJO?

3. HOW DO YOU ENJOY SPENDING YOUR FREE TIME IN
VALLEJO?

4. IF YOU SHOP OUTSIDE OF VALLEJO, WHAT ARE THE
PRIMARY REASON(S)?

5. WHAT ARE TWO SIGNIFICANT, POSITIVE CHANGES THAT
HAVE OCCURRED IN VALLEJO OVER THE PAST 10 YEARS THAT
HAVE HELPED THE LOCAL QUALITY OF LIFE?
City of Vallejo  2024 Economic Development Strategic Plan  Page 68 Communication Plan with Vallejo Residents
OBJECTIVE Rebuild public confidence in city government, create public support for economic development, and change conversations from complaining to celebrating.

MESSAGE Positivity, performance, inclusivity, realism, placemaking

EXPECTED

OUTCOMES
A well-informed, engaged, and supportive community that understands that placemaking support and public services directly depend on a strong local economy Constructive public engagement that moves from awareness to engagement Continued and improved community pride in Vallejo
ACTIONS Continue holding periodic community meetings in each council district. Combine districts as appropriate. Gatherings can be informal, “Coffee with the Council” events
There should be a maximum of three (3) elected officials per event. Moving locations among the districts makes events more accessible to residents, especially those with mobility challenges
Encourage ongoing public participation via enhanced and more frequent use of MyVallejo and Bang the Table tools
Build subscriptions to Vallejo Weekly as a critical medium to inform the public on economic development progress, projects, and events
Use data and case studies to demonstrate how the city is progressing and moving forward with plans and initiatives
Publish a Quarterly or Semi-Annual Update in the Vallejo Weekly that reports on KPIs and showcases Economic Development Department accomplishments Increase positive Facebook messaging and links to the Weekly

RECOMMENDED

IMPLEMENTING

PARTNERS
City of Vallejo Economic Development and Public Information staff Chambers of commerce
Community-based organizations that have networks with residents throughout Vallejo
INITIATE Second 180 days of the First Year of Cycle 1
City of Vallejo  2024 Economic Development Strategic Plan  Page 69 Audience: Economic Development Partners (Commercial real estate Developers, Site Selectors, Property Owners, Commercial Real estate professionals) and Prospective Businesses
During Cycle 1, a significant objective is to shape conditions for new and expanding businesses to choose Vallejo. Business location decisions depend on much more than available real estate. The illustration on the right shows
the various metrics evaluated in
a company site-location
decision process. Collectively,
these factors confirm or deny
that a community is suitable for
corporate investment. For
example, competitive
communities offer:
community-wide
consensus on the
vision, goals, and support for economic development that is demonstrated by community investment
use Location One software to market and track key properties, especially city-owned parcels and buildings in terms of use, leasing or potential sales a transparent regulatory environment and the ability to demonstrate the path to development and estimate operating costs
a sufficient labor supply and proof that a pipeline of workers is available so that businesses will be able to attract the talent they need both now and into the future sites, buildings, and business parks that are market-ready have reliable and modern infrastructure and controls in place to prevent undesired development nearby the quality of amenities that help employers attract and retain workers and professionals, e.g., investments that support health and safety, housing options, high-quality education, and cultural and recreational options
A specific audience—a mixture of commercial real estate professionals, land developers, site selectors, and other economic development partners—should become close allies in Cycle 1 and proponents of Vallejo as a place for doing business in their communications. For Vallejo’s Economic Development Department, the ability to identify and present solutions for clients' and owners' unique needs effectively elevates Vallejo’s economic development efforts daily. Needs and possible solutions may include assistance with site development, tenant improvements, permitting, and local supply-chain partners. Commercial real estate professionals and property

City of Vallejo  2024 Economic Development Strategic Plan  Page 70 owners are critical partners in Vallejo, including the Mare Island Company on Mare Island and Industrial Realty Group (IRG) for the Solano 360 (as of March 2024).

Our team’s discussions with this audience generated the following opinions and perceptions.

These are not statements of fact, but are a summary of how this audience viewed Vallejo in 2023:
Mare Island is seen as the most
desirable place in the city to locate;
outside Mare Island, the city has
little space for new residential real
estate (with exceptions on the
waterfront and parcels near I-80 and
the city limits as of June 2023)
Industrial space is a competitive
market, but Vallejo’s lease prices are
relatively low regionally due to
perceptions of low-quality spaces
Office space is less competitive, as demand has sagged regionally in the wake of the pandemic Vallejo’s commercial real estate is perceived as generally older and has lower class spaces than elsewhere regionally (Vallejo’s office space stock is dominated by Class B or C spaces) Downtown Vallejo has urban blight and lacks vibrancy, with few “last-mile” access options from the Ferry Terminal to downtown
High crime rates and low-quality schools fuel negative perceptions, discouraging new businesses from coming to Vallejo
Vallejo’s Opportunity Zones are unique assets (Fairfield has the only other Opportunity Zones in Solano County; but (1) the Opportunity Zone program is now close to sunsetting and is federal, not state or local; and (2) a parcel being in an opportunity zone is not generally a deciding factor in locating or expanding businesses
The city has dilapidated homes and commercial properties, which could be renovated or revitalized with grants or federal or state funding programs (examples include Community Development Block Grant (CDBG), Neighborhood Stabilization Program (NSP), Main Street Economic Revitalization Grant, Veteran Home Repair & Modification Pilot Program, Community Catalyst Building Remediation Program)
Commercial centers are disconnected (northern Vallejo is not connected to downtown or waterfront areas), and Mare Island remains an “island” with only two connections to the mainland. Water taxis or dedicated bus service to move to and from Mare Island could be seen as an asset for employers and merchants on both sides of the Napa River Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 71 Communications Plan with Economic Development Partners
OBJECTIVE Overcome perceived risks and negative perceptions about Vallejo and demonstrate why Vallejo should be the first choice as a business location in the Bay Area.

MESSAGE The city has assets—available space, workforce, and programs—that benefit owners and employers; use testimonials and documented progress Establish industry-specific value propositions and key messages which will become critical during the business attraction activities in Cycle 2

EXPECTED

OUTCOMES
Recognition that Vallejo is unique, a viable and competitive alternative to Bay Area locations
Assist efforts and interest in Mare Island development opportunities Increased inquiries and development activity throughout Vallejo ACTIONS Host regular working groups with economic development regional partners to solidify messaging and marketing strategies.
Lobby for and support efforts to improve safety in the city; acknowledge the problems while publishing and promoting all good news items and the small steps that are being made to address the issues.
Regularly call and visit local and Bay Area commercial real estate professionals; host semi-annual or annual roundtables and tours in Vallejo Communicate regularly and directly with Bay Area commercial real estate networks to show progress on the waterfront, downtown, Mare Island, and other commercial centers throughout Vallejo, including broadband projects Use MyVallejo and Vallejo Weekly as news outlets for the broker audience Follow and interact with the regional commercial real estate community on social media
Establish value proposition, messages, and proof points that answer: “Why your business should locate in Vallejo instead of anywhere else.” (Samples in Appendix, Communications Plan and Messaging)

RECOMMENDED

IMPLEMENTING

PARTNERS
City of Vallejo Economic Development Department (lead)
Economic Development Commission (Vallejo EDC), City of Vallejo Solano County Economic Development Corporation
Chambers of Commerce
INITIATE First Year of Cycle 1 (2025)
City of Vallejo  2024 Economic Development Strategic Plan  Page 72 Audience: Elected Officials, City Staff, and Economic Development Commission
As of 2023, Vallejo’s Economic Development
Department reports to elected officials in
Vallejo and the city’s appointed Economic
Development Commission (Vallejo EDC,
formerly Economic Vitality Commission)
quarterly. Vallejo EDC is an appointed body
of residents and business people in Vallejo,
with meetings scheduled bi-monthly. Vallejo
City Council meetings are monthly, with no
meeting during July as of 2024).

Elected officials and Vallejo EDC members
should be asked to join Vallejo’s Economic
Development Department in business visits in partnership with one or more regional chambers of commerce. Video and photo recordings of those visits can be used as communications assets.

These reports and conversations should focus on three critical things:
Remain positive and realistic about Vallejo as a place to do business; the planning cycles are meant to build foundations for the long-term success of the city economy, and big wins will be due to partnerships, luck, and timing, more than anything else (they should not be expected in the short term), where multiple small wins should be the focus. Recall economic development goals so each meeting begins with those goals in mind. Leave participants with a “success story”: here is what businesses in Vallejo showcase and what Vallejo wants to be now and in the future.

What We Learned: Elected Officials, Appointed Officials and City Staff We spoke to every elected official in Vallejo, including a subset of Vallejo EDC members and key city staff. Their opinions and foresight helped generate our conclusions and shaped our recommended actions.
Location, weather, and proximity to markets are all selling points for the City of Vallejo as a place to do business; public safety is a major issue
Measure P, passed in 2022, should provide more financial resources and relief from budget pressure in specific areas of need, including infrastructure, homelessness, safety, etc. State Highway 37 is increasing its capacity to two lanes in each direction, as well as being heightened in some areas, and could provide jobs to Vallejo residents and revenues to Vallejo merchants through 2030, also providing more regional access to Vallejo after completion
Source: City of Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 73 During construction, traffic conditions are likely to be somewhat worse than in recent years, especially westbound from Vallejo, based on current commuting patterns There are other opportunities for persuading commuters to view Vallejo as a place to shop and to stay while driving support for targeted industries Mare Island exit from State Highway 37 is critical to the future development of Mare Island Mare Island needs to be developed and can be a regional asset in the city’s economy. Solano 360 needs to start and provide resources, including new housing. Local employers must work with the diverse population and education institutions to enable Vallejo residents to achieve social mobility.

Communications Plan with Elected Officials and Vallejo EDC OBJECTIVE Update the City Council on progress toward achieving economic development goals.

Provide updates on significant projects outside the direct control of City Vallejo’s Economic Development Department (e.g., Mare Island Company, Solano 360).

Build confidence in the business community.

MESSAGE Regular reporting on activities, key performance indicators, and successes Report on challenges and requests of the City Council in terms of issues it should foresee and progress on initiatives in the city economy Cycle 1: pilot project successes and lessons
Cycle 2: business recruitment-businesses considering locating in Vallejo

EXPECTED

OUTCOMES
A more fully informed council and residents
Time during public reports for community feedback, as well as getting business owners to the meeting to tell their stories
Ongoing support and funding allocated for economic development initiatives and programs
ACTIONS Regular update reports at council meetings become stories elected officials tell Councilmembers have data from presentations at public meetings in each council district about current initiatives that support economic development Councilmembers understand data on KPIs, progress towards goals, and economic development educational materials (e.g., the economic impact of different industries)

RECOMMENDED

IMPLEMENTING

PARTNERS
City of Vallejo Economic Development Staff
Regional chambers and employers
INITIATE First 180 Days of Cycle 1
City of Vallejo  2024 Economic Development Strategic Plan  Page 74

FUTURE ISSUES THAT AFFECT

VALLEJO
Vallejo’s Economic Development Department needs to consider how changes may affect the strategy and how those effects may shift when Cycles 1 and 2 start and end. The issues identified below are samples of what our team believes could affect Vallejo and this plan’s evolution until 2030.

Cycle 1 is likely a time of slower economic growth and transition. Forecasts for California and the United States from 2024 to 2027 point to slower income growth and jobs, with relatively high inflation and interest rates compared to 2011 to 2021. The presidential election results may create changes in state and federally elected officials during Cycles 1 and 2 due to term limits and retirements. A slower economy might be beneficial for Vallejo as businesses and residents look for lower- cost opportunities in the Bay Area, especially in places with unique assets and transportation links that prepare for better economic times after 2027; oOne action Vallejo can take is to start looking at Bay Area leaseholders that may have leases coming up and want to divest but remain close to the core labor force/amenities in the core Bay Area (San Francisco), where Vallejo provides lower-cost footprints with similar amenities (broadband, ferry services, access to Interstate 80 as examples).

An aging demography and slower population growth
Vallejo (like Napa, Sonoma, and Marin counties) has had a population in decline since 2017 as well as older (and, among those age 25 and over, more educated). The Bay Area is projected to have slower, if not negative, population growth by 2050.

An energy race on the technology side: renewables/hydrogen State and federal funding is coming for renewable energy sources and businesses. These may include science and product manufacturing jobs focused on climate change.

Two lanes in each direction on State Highway 37
The expansion of State Highway 37 enables more movement to and through Vallejo, with an expansion in the number of potential visitors to Vallejo. State Highway 37 is important to ensure the off-ramp and general infrastructure can support traffic for future development in jobs and housing.
Vallejo residents may find jobs during this construction effort close to home and improve long- term transportation linkage to higher-income employment centers to the west.

Mare Island and Other Parts of Vallejo: Cooperation
Vallejo’s Economic Development Department must partner with the Mare Island Company in its commercial development effort, specifically by creating paths to a faster permitting process and linking growth on Mare Island to the mainland (downtown and waterfront).

City of Vallejo  2024 Economic Development Strategic Plan  Page 75 Other efforts in Vallejo (Blue Rock Springs, Waterfront, Downtown, for example) will need similar services from Vallejo’s Economic Development Department and similar links to broader commercial activity throughout Vallejo.

City of Vallejo  2024 Economic Development Strategic Plan  Page 76

PILOT PROJECTS, GOALS AND

ACTION STEPS
Using the data gathered and our team’s experience, this section recommends specific actions to be taken by Vallejo’s Economic Development Department and the City of Vallejo based on available ARPA, Measure P, and other sources (grants, for example) funding as initial investments in these projects. This section describes the rationale and connections to this plan’s goals for the projects considered “Highest Priority.”

RECOMMENDED PILOT PROJECTS AND RATIONALE
Highest Priority Other Projects For Cycles 1 or 2
•Citywide capital-facilities Master Plan
•Pop-up ferry events: Watch for significant
events to coordinate and include flea markets,
pop-up retail, and food trucks at these events,
and coordinate with other significant events
when possible and to also increase ferry use at
Vallejo Terminal
•Seed a revolving loan fund or grants for small
business
•Marketing Plan for Vallejo as a place to do
business
•Shop-Local Campaign Support
•Arts downtown or along the
waterfront, including live events with
Vallejo-raised or Vallejo-based artists
•Software license renewal and training
•Security equipment for businesses
•Communication boards/advertising
throughout downtown and waterfront
•Vallejo entrance signs
•Create recruitment materials for
businesses Vallejo wants to see
•Attend conferences and events to
recruit and educate others, foster
relationships, and tell positive stories
•Waterfront and Downtown
Beautification Plan
•Mare Island Beautification Plan
Rationale: The highest priority projects enable Vallejo to start this plan quickly (in the first 90 days of Cycle 1), build momentum, and generate visible activities that tell stories. Because Cycle 1 primarily builds foundations for Vallejo’s economic future, each potential pilot project is meant to show support for local businesses and showcase how Vallejo’s Economic Development Department and the City of Vallejo can engage in broader, regional partnerships. Also, for each pilot project recommended and considered by Vallejo’s Economic Development Department staff, City of Vallejo management, and City Council, we provide connections to how the community (Vallejo residents and businesses) provided feedback that helped shape the final City of Vallejo  2024 Economic Development Strategic Plan  Page 77 recommendations. The key is supporting Cycle 1’s goals and building a foundation using the remaining ARPA funding.

Potential EXTERNAL Funding Sources to Complete Unfunded Initiatives Funding Source and Type Project Types Maximum
funds available
Match funds
required
Board of State and Community Corrections–
Grant, Organized Retail Theft Prevention
Grant Program
Help local law enforcement prevent
and respond to organized retail, motor
vehicle accessory, and cargo theft
$15,650,000 0%
Building Pathways to Infrastructure Jobs US
Department of Labor–Grant
Develop/Implement Local/Regional
Worker-Centered Sector Strategy
Programs; or Scaling Effective Worker-
Centered Sector Strategy Programs.
$2,000,000 15%
CA Arts Council–Grant, Arts & Cultural
Organizations General Operating Support
Support for arts or cultural programs
(linked to pilot projects)
$30,000 100%
California Energy Commission–Electric
Vehicle Charging Infrastructure: Clean
Transportation Program
Renewable energy, Manufacturing $35,000,000 50%
Community Development Block Grant
(CDBG) US Department of Housing and
Urban Development–Grant
Economic Development Assistance $1,500,000 Varies based on grant (contact
Shekinah.Echols
@hcd.ca.gov)
Community Economic Resilience Fund
(CERF)–Grant
Economic Development Support $6,000,000 50%
Department of Energy (DOE) - Small Business
Innovation Research (SBIR) And Small
Business Technology Transfer (STTR)
Programs
Product or service commercialization
and meet specific DOE mission-specific
R&D needs. Includes technology
transfer from universities
$300,000,000 0%
Economic Development Administration
(EDA)–Grant for the loan fund
Go Biz: Revolving Loan Fund
Capitalize or recapitalize lending
programs that assist borrowers who
would not be able to access traditional
bank funding
$2,000,000 0% is required
and is likely more
competitive if
50% is the
minimum.

Economic Development Administration
(EDA)–Grant, Public Works
Assistance on public works $30,000,000 0%
Food Chain Guaranteed Loan Program–US
Dept of Agriculture Guaranteed Loan
Food manufacturing $40,000,000 0%, because it is
a “loan” that
USDA guarantees
Grants for Arts Projects National Endowment
for the Arts (NEA)–Grant
Focus on Downtown Arts, especially in
diverse communities
$100,000 100%
Our Town National Endowment for the Arts
(NEA)–Grant
“Placemaking” grants $150,000 100%
City of Vallejo  2024 Economic Development Strategic Plan  Page 78 Citywide capital-facilities Master Plan
Funding Estimate = $95,000
This pilot project provides the City of Vallejo with an analysis and plan to consider using city- owned facilities throughout Vallejo (concentrated downtown but throughout the city) as economic and fiscal development assets. Being city-owned, zoning flexibility can occur within the city’s administrative structure and allow flexibility with the City of Vallejo as a landlord or selling to a partnered developer or owner that would either rehabilitate the property or build on vacant land as part of the downtown-specific plan. That plan would coordinate a vision of Vallejo using city- owned properties as economic development catalysts and begin a cycle of new ownership and shared vision.

The plan would involve coordinating capital facilities
owned by the City of Vallejo, including their best use.

Such a plan should also provide a way to view the
expenditures on those properties for their utilization, maintenance, or both. A cost-benefit analysis of selling or changing each property's utilization (perhaps zoning) should also be included.

How does this pilot project contribute to Vallejo’s
Economic Development Department goals?
This pilot project begins to catalyze areas near current city-owned properties by considering changes that would become new partnerships for economic development. Because cities have few financial levers to provide incentives to developers or potential new businesses to locate in a city, one way Vallejo’s Economic Development Department can offer competitive incentives is to provide unique opportunities as a partner. This could range from zoning changes on a city-owned property that has become a new private-sector business. In coordination with Vallejo’s downtown- specific plan, city-owned properties can be examples of where Vallejo wants to go regarding beautification, the arts, and new experiences in downtown Vallejo. Over time, this can increase customer volume for all businesses in downtown Vallejo, the waterfront, and other parts of Vallejo.

Connections to Community Comments:

Our meetings with Vallejo’s residents and businesses suggested that revitalizing downtown, coordinated with ferry service and a beautification process, would draw visitors and customers from across the Bay Area. Such an effort would use Vallejo’s unique assets as one.

Source: Solano Open Space

City of Vallejo  2024 Economic Development Strategic Plan  Page 79 Pop-up Ferry Events: Link to Major Events and Downtown Businesses Funding Estimate = $32,000
Using the ferry terminal to hold events can showcase Vallejo-based merchants and opportunities, and the Ferry as a unique asset for Vallejo’s employers. This project shows how the ferry terminal can be a business gateway linking commercial developments to economic benefits across Vallejo during Cycle 1.

Funding for this project pays for (among other things):
Include flea markets, pop-up retail, and food trucks at these events (with a focus on Vallejo-owned businesses), Coordinate with other significant events when possible to increase ferry use at Vallejo Terminal
Police services, including overtime at the ferry terminal for safety
Enhanced trash and recycling facilities for the event
Infrastructure for Vallejo merchants (tent and table
rentals) to organize and prepare for customers at this event Power sources, perhaps mobile solar, for the event
Advertising, in partnership with the regional chambers, it is essential to include cultural businesses in this event and also not to market it solely to ferry riders Lighting and cameras for return trips during night games to help passengers and perhaps generate more interest in retaking the ferry from Vallejo.

Events at the ferry terminal should focus on businesses headquartered in Vallejo to showcase locally-owned merchants. The event should be marketed as a partnership among Vallejo’s Source: City of Vallejo

EVENT EXAMPLES
“SHOP VALLEJO” CAMPAIGN –

INCREASES SALES AND REVENUE OF

LOCALLY-OWNED BUSINESSES AND

ENTREPRENEURS AND EDUCATES

CONSUMERS ABOUT THE ECONOMIC

AND SOCIAL BENEFITS OF BUYING
LOCAL.
“TASTE OF VALLEJO” – ENGAGE WITH

LOCAL RESTAURATEURS TO OFFER FREE

SAMPLES OF THEIR SPECIALTIES AND

PROMOTE THE DIVERSITY OF THEIR

OFFERINGS
“GET BUSY DOWNTOWN” – BUILD

AWARENESS OF THE RESTAURANTS,

SHOPPING, ARTS & CULTURE, EVENTS

AND ACTIVITIES IN DOWNTOWN VALLEJO
“REDUCE YOUR COMMUTE” – PROMOTE

THE DIVERSITY OF EMPLOYMENT

OPTIONS IN VALLEJO BY PARTNERING

WITH LOCAL WORKFORCE

DEVELOPMENT AND EMPLOYMENT

AGENCIES TO SHOWCASE JOB OPENINGS

AND SALARIES
City of Vallejo  2024 Economic Development Strategic Plan  Page 80 Economic Development Department, regional chambers, the City of Vallejo Police, the City of Vallejo Public Works, and the County of Solano Sheriff’s Department—all working together to showcase local businesses.

How does this pilot project contribute to Vallejo’s Economic Development Department goals? Public safety is a crucial factor, so the success of this event becomes a story about Vallejo turning a public safety corner and helping local businesses simultaneously. Having a visible police presence ready to help attendees and maintain order is critical for establishing good relations and success on which to build in later events Focuses on Vallejo’s businesses to send a signal about business retention and showcasing what Vallejo has to offer to visitors who live in the region and come to use the ferry Capitalizes on a unique asset in Vallejo north and east of the core Bay Area for economic development.

Connections to Community Comments:

During our interviews and residential gatherings, Vallejo's Ferry Terminal and Downtown/Waterfront areas were seen as places of “potential” but of little, consistent commercial activity. This pilot project can also address the visibility of Vallejo’s Economic Development Department efforts to generate better communications about Vallejo-based businesses, engage the regional cultural chambers in events that showcase local businesses and provide an event for the regional community to see what Vallejo offers, and also providing residents more reasons to come to the Ferry Terminal, Downtown, the Waterfront and patronize local merchants.

Marketing Plan for Vallejo as a Place to Do Business
Funding Estimate = $100,000
Vallejo should pursue ways to market
itself as a place to do business and
understand the competitive marketplace
in which it exists. Like many other
suburban areas in the Bay Area, Vallejo
directly competes with larger cities but
also has some unique assets, such as its larger neighbors. Being a film location, given the diversity of downtown, Mare Island, and the waterfront may be attractive to studios. Understanding different incentives cities provide to new or expanding businesses and the utilization of city-owned property (see the “Citywide Facilities Plan” above, with which a marketing plan should be coordinated. It is essential that the City of Vallejo understands how it can use its unique assets and location to its advantage, especially with Mare Island developing and projects like Blue Rock Springs attracting more attention. Our discussions with local businesses and residents included many concerns over a lack of marketing for Vallejo.

City of Vallejo  2024 Economic Development Strategic Plan  Page 81 Seed or expand a Revolving Loan Fund for Vallejo Small Businesses Funding Estimate = $100,000
A revolving loan fund (RLF) connects local
entrepreneurs to funding opportunities that
normal bank-loan processes would not allow or
“underwrite”. Lenders generally know this
missing market exists and may want to participate
in a fund for such small business loans
(microlending). Partnering and expanding this
fund, perhaps as an investor, should be one of the
first action items pursued in this strategic plan.2
Such a fund can also accept and use grants and
applicable government funding to enhance
lending funds and nonprofit foundation and
Community Reinvestment Act (CRA) funding that may not otherwise find a home in Vallejo.3 The fund cannot work without engagement by local lenders. A direct partnership by Vallejo’s Economic Development Department using ARPA funding could attract interest from local financial institutions where seed funding is already in place. This kind of synergy gives lenders and the City of Vallejo a great story to tell about investment in the community’s businesses, and this is a best practice for many regional economic development organizations.

When starting the process, a nonprofit organization called Working Solutions is recommended.

Regional credit unions (e.g., SAFE, Travis, and Redwood) likely have foundations or other funding they are willing to provide. Working Solutions, SBDC, or a combination can offer potential applicants business coaching, planning, and loan underwriting support. This coaching is seen as a critical step in making these loans happen and be successful. Many potential business owners have ideas but lack business acumen.

How does this pilot project contribute to realizing Vallejo’s Economic Development Department goals?
Shows direct support for small, Vallejo-based businesses (the focus of the loan fund) Extends the “pathways” to entrepreneurship for local high schools and Solano Community College
2 For Solano Economic Development Corporation (Solano EDC) has examples here:
https://solanoedc.com/resources/business-financing/
3 For more about CRA, see https://www.federalreserve.gov/consumerscommunities/cra_about.htm.

City of Vallejo  2024 Economic Development Strategic Plan  Page 82 Engages local lending institutions (banks and credit unions) as direct economic development partners, with funding they will spend elsewhere now being used in Vallejo.

Caveat: As with all loans extended, losses and subsequent business failures are an inherent risk.

SBDC and Working Solutions have vital track records with local businesses regarding support but need to prepare for that outcome. On the positive side, community banks, credit unions, and larger banks have profits for which they need to use funds as part of their commitment to the Community Reinvestment Act (CRA).

Connections to Community Comments
Economic development is about providing resources to local businesses and residents. Our residential meetings suggested that Vallejo-centric funding opportunities for local businesses, predominantly Hispanic, Filipino, and African-American-owned firms, were lacking. The Solano Economic Development Corporation (Solano EDC) is soliciting funds from local lenders in 2023 (banks may use Community Reinvestment Act (CRA) funds, and regional credit unions may have foundations set up to give such donations) to fund an RLF for Solano County. Vallejo could engage in that effort or act as a local partner with a sub-fund solely for Vallejo-based businesses.

Source: City of Vallejo
SHOP-Local Campaign
Funding Estimate = $28,000
Downtown Vallejo remains a
gateway to economic
development throughout the
city due to the current
concentration of businesses
and workers, but also where
those using the Ferry are
coming to or going from
Vallejo and a place of current
infrastructure to generate
more businesses and more
Source: Visit Vallejo
City of Vallejo  2024 Economic Development Strategic Plan  Page 83 buzz around working and playing in Vallejo. A shop-local campaign can provide more foot traffic and partnerships among businesses to offer visitors and locals unique experiences and advertise Vallejo as a place to do business. Such partnerships can be event-related and connected to the Ferry Terminal or to events on Mare Island that integrate changes on the Waterfront and Downtown east of the Napa River and Mare Island.

How does this pilot project contribute to realizing Vallejo’s Economic Development Department goals?
Recognizes downtown Vallejo as an economic engine that needs to be enhanced and ready for other changes in Vallejo’s economy
Provides incentives for locals and visitors to come to downtown Vallejo Provides incentives to partner and combine savings and visits for consumers Takes advantage of history and the natural flow of workers and visitors, adds to funding available for Vallejo’s Central Core Restoration Corporation, and enables additional investment in downtown for economic development goals.

Connections to Community Comments
As we delve into the themes above, it becomes evident that the Downtown area of Vallejo, a compact space with immense potential, requires a concerted effort from both the private and public sectors to realize its full economic potential. It is crucial to clearly understand what a business improvement district does, as it plays a significant role in economic development throughout the city. Downtown is the main community gathering place and a unique ecosystem for small businesses and local entrepreneurs. The same level of transparency should be extended to the website, which currently needs updating.

Economic Development Action Items: Cycle 1
In this section, we present the crucial action steps outlined in the “Roadmap” in the Executive Summary of this plan. The next three years (2025 to 2027) are pivotal for this plan, laying the groundwork for Cycle 2 (2028 to 2030). The recommended action steps, detailed below, are tasks and a call to action for all stakeholders. A simple overview of tactics and potential outcomes follows them. These pragmatic, measurable corrective responses are designed to empower and improve Vallejo’s economy.

In Cycle 1, the focus of goal achievement is building a foundation.

In Cycle 2, we look beyond the foundation laid in Cycle 1. The pivotal issue is not just moving forward but leaving Vallejo’s past behind and setting our sights on a future of growth. This future is one of business attraction and expansion, a vision that should inspire us all.

City of Vallejo  2024 Economic Development Strategic Plan  Page 84 Execute and assess pilot projects using the remaining ARPA funding as described above Work with landlords and real estate professionals in different parts of Vallejo to increase commercial real estate occupancy or utilization
Identify and solve problems to help increase commercial occupancy Prioritize high TRAs as much as possible in terms of new transactions Partner with local higher-education institutions to move more operations to downtown Vallejo (e.g., CSU Maritime and Anchor Center) to train Vallejo’s high-school students Consider where Vallejo’s federal opportunity zones include priority/best expansion sites for Cycles 1 and 2 as much as possible
Determine the inventory of commercial real estate sites within the city limits in eastern and southern Vallejo and prioritize sites for economic development in Cycle 2 Host and chair two quarterly working groups of (1) regional chambers and Visit Vallejo/Hoteliers and (2) larger, locally headquartered, private-sector employers Plan and execute a cultural entrepreneurship event, with regional chambers and regional workforce and economic development (Solano EDC, SBDC) as sponsors/cohosts Define parallel roles for the chamber and Vallejo’s Economic Development Department to the outside world through meetings and tasks that come out of the meetings Vallejo’s Economic Development Department becomes a go-to change agent, solving problems and creating pathways for employer growth and success throughout Vallejo’s economy
oCreate a “concierge” service for targeted industries to navigate city permitting and other compliance needs (in partnership with city departments and staff) oDraw on regional chambers as critical information filters for general business issues, especially BIPOC-owned businesses
oUtilize Visit Vallejo as a partner in regional travel initiatives; for example, Work with Visit Vallejo and the Solano County Film Office on a filmmaker “pitch package” and travel to film studios to test the package
Use quarterly meetings to gather and build evidence on how Vallejo’s Economic Development Department and the City of Vallejo can be more supportive of local employers (the Cycle 1 focus is on the retention and expansion of current employers and private-sector projects underway)
Use quarterly meetings to design a Marketing Strategy (new document using partnerships) for Vallejo as a place to do business, to be completed before the end of Cycle 1 (2027) City of Vallejo  2024 Economic Development Strategic Plan  Page 85 oCreate a travel attraction strategy within that marketing strategy, including input from regional and cultural chambers, with Vallejo as a gathering place for cultural events (African-American, Filipino, and Hispanic).

Work with the City of Vallejo’s Finance Department and Central Permit Center on:
Explore revenue increases
oPursuing city TOT adjustment to 12% from 11% (compared to the region, given targeted industries and foundational tourism assets and people flow) oVallejo’s Economic Development Department ask for some portion of change to provide parallel assistance to Visit Vallejo
oPursue the formation of a Community Facilities District (CFD) or an enhanced infrastructure financing district (EIFD) to optimize financial outcomes for City of Vallejo during revitalization and placemaking efforts
oStudy and consider increasing property transfer taxes
Construct an infill development strategy, especially along significant corridors oCurrent corridors have older commercial spaces, but working infrastructure where incentives to locate in these areas, including opportunity zones, could help reinvigorate Vallejo’s transportation portals as commercial spaces
oPrepares for more economic activity as other spaces grow initially and more dynamically (Mare Island and north Vallejo)
Track progress of the city’s taxable sales and Measure P changes during Cycle 1 Reduce fees for tenant improvements specific to targeted industries, with downtown or eastern Vallejo locations as "development" or "occupancy" incentives during a two-year trial period, and observe any new activity
Consider a commercial permitting ombudsman assignment for Vallejo Economic Development Department staff to assist with processes and provide more detailed attention to commercial applicants
Consider hiring consultants to augment staffing when needed Reduce the cost of starting and growing businesses in Vallejo, including “fast-tracking” in terms of lower fees and time to decision by the city for permits oConsider reducing fees for tenant improvements specific to a targeted industry or downtown or eastern Vallejo locations as “development” or “occupancy” incentives Facilitate a single-permit process for utility and infrastructure work, given that utility work may be coming to Mare Island and other parts of Vallejo due to other efforts.

City of Vallejo  2024 Economic Development Strategic Plan  Page 86 Engage regional media regularly with Vallejo-based business stories and communications of change in Vallejo as a place to do business:
It is critical to change the narrative on doing business in Vallejo Prepare 5-6 businesses to tell their stories at all times (without repeating for two years) and use video as the primary medium of communications
oEstablish individual “industry” months for ten months in the year (see below for ten significant industries based on 2021 data on Vallejo employment) and coordinate business visits and stories about that industry in that month oPartner with regional chambers to identify these 5-6 businesses in Vallejo for productions on a rolling basis and share assets with regional chambers oCreate content 30-60 days in advance using equipment and space donated or owned by strategic partners (chambers/Visit Vallejo/Solano EDC).

Develop a citywide, capital-facilities master plan and long-range property management strategy for maintaining and investing in deferred maintenance of existing city-owned assets based on the ROI:
Compile an inventory of city-owned properties
Consider changes in broadband using Vallejo’s Internet Provider (VIP) for maintenance and marketing of available spaces as the City of Vallejo plans and makes decisions on spaces Deploy grant funding to prepare city-owned buildings for commercial utilization or support of workforce projects
oEntrepreneurship, maker spaces, art spaces, and test facilities for businesses in partnership with countywide SBDC, Solano Community College, and Solano Workforce Development Board.

Search for and prepare to apply for nonprofit and government funding to support Cycle 1 action items:
Seek grants that match Vallejo’s needs for assisting new and expanding businesses located in Vallejo (Measure: the amount of grant funding that was gained and placed in use for supporting Vallejo-based businesses each year)
oFederal funding in terms of renewable energy, manufacturing, and social mobility oState funding may be smaller but is available for workforce development and infrastructure projects
▪For-profit businesses may need funding to help with infrastructure, affordable housing, and other capital investment
▪Nonprofits and local education may need funding to help with infrastructure, workforce development, and homeless transition support City of Vallejo  2024 Economic Development Strategic Plan  Page 87 oNonprofit funding may also be available to pursue specific projects that help complete goals (primarily education/workforce development and health care).

At the end of Cycle 1, assess progress quarterly using KPIs and report annual progress on action items that contribute to goal achievement:
Set expectations for city council and city management concerning what Vallejo’s Economic Development Department plans to do in each cycle.
Quarterly report to publicly highlight achievements, planning progress, and challenges.

Mare Island and Blue Rock Springs offer various economic and placemaking opportunities. The main uncertainty concerns how these developments will ultimately come to fruition and how to connect them to other parts of Vallejo. Vallejo’s Economic Development Department must remain in constant contact with these developers and provide solutions to problems to help Vallejo’s economy take full advantage of what these developers and subsequent employers can make happen in these areas.

Economic Development Action Items: Cycle 2
Starting in 2027, Vallejo’s Economic Development Department will hold work sessions with the City of Vallejo’s Economic Development Commission (Vallejo EDC), the City Management, and the City Council on Cycle 1 progress to determine readiness for Vallejo’s Economic Development Department to initiate Cycle 2 action items in 2027. Cycle 2 should start only if Cycle 1 yielded visible, coordinated benefits as a foundation for business attraction and expansion in Vallejo to begin in earnest. Important factors for the City Council to consider when assessing readiness for Cycle 2 implementation include funding, staffing, and completing Cycle 1 strategies. The following action items should be part of Cycle 2; affected targeted industries are in bold.

Prioritize business attraction and expansion in downtown and other Vallejo neighborhoods connected to other placemaking efforts underway
Begin management of city-owned properties based on the facilities plan from Cycle 1, identifying parcels for business attraction and expansion effort (Construction, Advanced Manufacturing, Software/Film)
Connect to infill development efforts underway, especially in significant corridors and eastern Vallejo, as economically feasible (Construction, Advanced Manufacturing, Software/Film, Transportation, Wholesale)
oRising jobs and employer numbers support a mix of affordable, below-market rate housing units alongside of waterfront and downtown homes at market rates Advertise changes in broadband through Vallejo’s Internet Provider (VIP) for new household and commercial-based businesses as possible (Software/Film, Advanced Manufacturing)
City of Vallejo  2024 Economic Development Strategic Plan  Page 88 Continue to pursue specific financing opportunities (CFD or EIFD as examples) once downtown-specific and citywide capital-facilities plans are completed (Construction) Focus on updating Vallejo’s main business corridors to address pedestrian amenities, landscape, lighting, safety, and curb appeal to support new and expanded business Support event programming in essential areas to increase visibility and interest (Tourism) Focus on rebranding as a city to live in, raise a family, and grow a business. (Construction, Tourism)
Enhance connectivity, safety, design (planning + economic development), public spaces, parks, signage, and road quality, making downtown spaces a place people want to be (All) Communicate economic development progress made on Mare Island and in waterfront and downtown Vallejo
Provide monthly or quarterly updates on progress with new commercial spaces and tenants to show what type of businesses are coming to Vallejo (Construction, Advanced Manufacturing, Software/Film, Transportation, Wholesale) Medical office space coming to Mare Island may be filled by Touro University faculty or recent graduates and other regional specialists to build regional demand for medical service provided in new spaces (All)
Napa County (City of Napa and American Canyon) should be seen as a primary partner for Vallejo in terms of partnering on hotel, restaurant, and event packages to reduce regional competition and generate more cooperation (Tourism)
Encourage activities that attract families and business travelers to come to other parts of Vallejo beyond North Vallejo (Six Flags) or Mare Island: Blue Rock Springs Connect to infill development efforts underway. (Construction, Advanced Manufacturing, Software/Film, Transportation, Wholesale) Implement marketing to promote Vallejo as: (1) a place to do business regionally, and (2) a place for visitors to come for a day or overnight stays Vallejo’s Economic Development Department communications for Cycle 2 now focus on external communications for business attraction from employers outside Vallejo or looking to expand further within Vallejo. Messaging for business attraction may consist of:
oStories from companies that have located in Vallejo and how easily and quickly they reach Bay Area, Sacramento, and Central Valley markets (All) oStories of new Vallejo residents who were outbound commuting workers and now work and live in Vallejo, linked to new employers as possible. (All) City of Vallejo  2024 Economic Development Strategic Plan  Page 89 oStories from new businesses on partnering with the City of Vallejo to reduce construction/renovation and operational costs as to why the business is located in Vallejo. (All)
Expand workforce development partnerships with explicit downtown connections to higher education and regional workforce efforts as part of placemaking efforts Consider a multi-media campaign to promote the local employment opportunities in Vallejo, e.g., social media, print, electronic billboards along the commute route, posters, brochures, and placards in the ferry building. (Tourism, Construction) Link to Vallejo-based employers, including training for recent parolees and other at-risk workers, including local high-school graduates. (All)
Work closely with workforce development partners, colleges, and employment agencies to ensure they are aware of and are promoting local employment opportunities to these potential employees. (All)
Pursue an enhanced infrastructure financing district (EIFD) An EIFD is a way to create funding for
specific infrastructure needs based
on the rising values of assessed
property from the year established.

An area and its parcels must be
designated as the “district”. EIFDs
involve a change in property
assessments and the flow of tax
funding. EIFDs use incremental
property-tax growth to fund public
infrastructure and new affordable housing. Tax rate areas (TRAs) in Vallejo can help form the EIFD’s boundaries to maximize revenue projected to be realized from the new finance district and be concentrated in strategic areas. Addressing sea-level rise and seismic retrofitting could be how EIFD funds are used; such changes prepare Vallejo’s downtown and waterfront for natural disasters and climate change and assist potential tenants and owners by updating current buildings.

Creating an EIFD is a political process. The City of Napa and the City of Santa Rosa are local examples of utilizing this tool. All taxing entities in Vallejo need to agree to this outcome. The plan should include marketing; it is critical to plan for and assume a protest election will take place.

Uses of EIFD funding that support economic development are wide ranging beyond shoring up structures and sea walls. These could include (but are not limited to) parking facilities, transit facilities, affordable housing, internet access services, childcare facilities, libraries, parks, and open space renovations to help support a better quality of life for residents, commuters to Vallejo, and visitors. Road quality throughout the city may also be a focus of Measure P funds, the sales tax Source: CalTrans
City of Vallejo  2024 Economic Development Strategic Plan  Page 90 initiative passed in 2022, but EIFD funding may also address some roadway needs. EIFDs have a sunset date, which means funding sources must be identified for the long term as part of broader planning and discipline about municipal investment in Vallejo’s infrastructure. 4

BUDGET FOR CITYWIDE ECONOMIC
DEVELOPMENT ACTION ITEMS THROUGH 2030
All action items need ongoing funding sources and a commitment by the City of Vallejo and regional, state, and national sources that enable Vallejo’s Economic Development Department to support local employers. Strategic planning for any organization must consider the sources and uses of funds that support the plan’s goals and initiatives. Table 7 shows the two planning cycles and six years of projected sources and uses for Vallejo's economic development activities above and beyond baseline funding for staff and operating expenses from the City of Vallejo.

Table 7: Sources and Uses of Funding for Cycle 1 and Cycle 2 for the City of Vallejo’s Economic Development, Fiscal Years 2024-25 to 2029-30
Fiscal Year End
Budget Item Cycle 1
2025
Cycle 1
2026
Cycle 1
2027
Cycle 2
2028
Cycle 2
2029
Cycle 2
2030
Potential Revenue Sources
Additional city funding/staff $75,000 $75,000 $100,000 $121,000 $133,600 $158,000 Economic development grants $30,000 $35,000 $38,500 $42,350 $50,000 Revolving Loan Fund (RLF)
Contributions
$100,000 $100,000 $100,000 $100,000 $100,000
Event sponsorships $50,400 $15,000 $90,000 $90,000 $100,000 $100,000 ARPA pilot projects $205,000 $150,000 $- $- $- $- TOTAL $330,400 $370,000 $325,000 $349,500 $375,950 $408,000 Expenditures-Uses
ARPA Pilot Projects
Citywide Cap Facilities Plan $95,000 $50,000 $50,000 $50,000 $50,000 Pop-Up Events Costs $32,000 $25,000 $30,000 $35,000 $40,000 $45,000 Shop-Local Support $28,000 $20,000 $- $- $- $- Marketing Plan $50,000 $50,000
Revolving Loan Fund (RLF) $100,000 $100,000 $100,000 $100,000 $100,000 Additional city funding/staff $75,000 $75,000 $100,000 $121,000 $133,600 $158,000 Other Action Items $50,400 $100,000 $45,000 $43,500 $52,350 $55,000 Total Uses $(330,400) $(370,000) $(325,000) $(349,500) $(375,950) $(408,000) Net Sources (or Uses) $- $- $- $- $- $-
Sources: City of Vallejo and EFA projections for Cycles 1 and 2; these sources and uses are beyond Vallejo’s Economic Development Department core budget as of June 2024. All estimates in Table 7 are subject to change.

This budget includes remaining ARPA funding for continuing to combat the effects of the pandemic, projections of funding sources and uses for fulfilling goals, and putting the action items in this plan 4 See https://caled.org/how-to-create-an-eifd/ for details on EIFD formation.

City of Vallejo  2024 Economic Development Strategic Plan  Page 91 into effect. It is essential to recognize that many of these efforts (meetings with stakeholders, meeting coordination with City of Vallejo staff and regional partners, for example) require additional resources to current Vallejo’s Economic Development Department budgeted sources.

These budget additions make the following assumptions:
Vallejo’s Economic Development Department
core staffing remains the same as it was from
fiscal year (FY) 2022-23 to FY 2028-29.
A grant writer position is made permanent, with
Vallejo Economic Development support for grant
applications, compliance, and maintenance for
Cycles 1 and 2
This employee would also manage grants in
terms of compliance reporting, which could be
an additional 0.5 FTE position (part of
“Additional city funding/staff” in Table 7)
The cost of services and supplies that are part of
new economic development activities starting in FY 2024-25 is included in “Additional Costs of Action items.”
Grant funding and funding from tax revenues, asset sales, and other sources must be allocated to support Vallejo’s Economic Development Department activities. Critical line-item expenditures include:
Costs of action items in the Executive Summary “Roadmap” as estimates (May 2024); Projected grant and nonprofit foundation funding as a goal structure for grant pursuit within the City of Vallejo and also partnership organizations; No funding from lenders or other organizations for a Revolving Loan Fund or RLF (as those are assets for a specific use, not sources/uses for annual operations) is shown here.

BASED ON NATIONAL ECONOMIC
DEVELOPMENT ORGANIZATIONS’ ESTIMATES

FOR A SUCCESSFUL ANNUAL ECONOMIC

DEVELOPMENT PROGRAM
VALLEJO’S ECONOMIC DEVELOPMENT
OPERATING BUDGET SHOULD BE $1
MILLION TO $1.25 MILLION ($8 TO $10
PER CAPITA).
VALLEJO’S ECONOMIC DEVELOPMENT

MARKETING BUDGET SHOULD BE
$325,000 ($2.60 PER CAPITA).

City of Vallejo  2024 Economic Development Strategic Plan  Page 92

APPENDIX
These appendices offer more details on our findings. Many of our interviews with groups or individuals were conducted under confidentiality and sought to determine which specific tactics resonated with the community and our team or themes that were strategic in solving problems or supporting businesses in Vallejo. Each section in the appendix covers our efforts: The Vallejo Databook and Facilitating Community Outreach, as well as Voice and Expectations. “Task” numbers below refer to the contract tasks asked of the consultant during this project.

THE VALLEJO DATABOOK
task 1.1: Generate and Analyze Data
An appendix to this plan includes a “databook” that gives a recent history of Vallejo’s economy (through 2022) and some recent forecasts through April 2024, looking forward to 2030. The attached workbook has tabs for major indicators included by our team that provide a data foundation for recommended action steps and benchmarking for city economy progress during Cycles 1 and 2. These data include demographic information from the Census Bureau that enables comparisons to incorporated cities in the United States and housing market data and forecasts.

The following list describes the data included.

Detailed data are provided in the supplemental file, “Vallejo Databook, City of Vallejo Vallejo’s Economic Development Department, June 2023”.
task 1.2: targeted industries
Marketing the city to specific regional, state, national, and (perhaps) international organizations that provide a network to such businesses within each targeted industry (for example, a manufacturing group). One of the action steps is to prepare a marketing plan for the City of Vallejo as a place to do business. This plan can be a simple, strategic plan about how to approach these industries as if the businesses in each industry are customers of the City of Vallejo. This includes a pitch deck to film studios (the pitch deck and marketing plan should answer the question: why film in Vallejo?) and also for specific types of retail that current residents patronize outside of Vallejo now (as we learned in our residential interviews and gatherings during the planning process). A professional firm should be consulted regarding this plan, which includes a vision and branding for Vallejo that is honest and forward-looking.

The “Targeted Industries, City of Vallejo Vallejo’s Economic Development Department, June 2023” supplemental file provides details.

City of Vallejo  2024 Economic Development Strategic Plan  Page 93 task 1.2: peer and aspirant cities
Our peer and aspirant city choices were determined by a mixture of variables, starting with population size. The original shortlist of cities is as follows (in descending order of 2021 population size based on the most recent Census Bureau estimates):
Simi Valley, California
Topeka, Kansas*
Allentown, Pennsylvania
Thousand Oaks, California*
Vallejo, California
Concord, California
Round Rock, Texas
Clovis, California
Palm Bay, Florida
Lafayette, Louisiana*
Ann Arbor, Michigan*
Columbia, Missouri*
For more details, see the supplemental file “Peer and Aspirant Cities, City of Vallejo Vallejo’s Economic Development Department, June 2023”.
task 1.3: KEY Performance indicators
The consultant have employed a “dashboard” to report on local economic progress. We recommend that Vallejo’s Economic Development Department consider such an instrument as part of a communications strategy. A sample is shown below. We recommend that Vallejo’s Economic Development Commission work with City staff on the final look of this dashboard and use it to discuss forward movement and ways adjustments could be made. This dashboard should be live online for public access and utilization.

Further details on the KPI data are in the Vallejo
Databook file and a presentation file called “KPI Details for City of Vallejo Vallejo’s Economic Development Department, June 2023.”

City of Vallejo  2024 Economic Development Strategic Plan  Page 94 task 1.3: retail leakage
Our team took an introductory look at retail leakage in this plan based on the request made by the City of Vallejo’s City Council. Please see the supplemental file “Retail Leakage Details for City of Vallejo, June 2023” for more details.
task 1.3: pilot project Choices using ARPA funding
Our team worked with Vallejo’s Economic Development Department staff using a short list of project options and choices. We recommended the following projects.

Arts Downtown or Along Waterfront
Funding estimate = $25,000 (second tranche)
•Consider grants that pursue making Vallejo a California Cultural District 5 •Contact landlords and property owners who have vacant spaces and then advertise that these spaces will be used for Vallejo-based artists to present an art installation •Focus on creating a unique experience and driving foot traffic •This converts a currently vacant space into one that is occupied to draw traffic to a specific area and has limited infrastructure needs (the City of Vallejo should not finance tenant improvements; the landlord would need to be a partner)
•Consider electronic billboards downtown and along highways and interstate at city boundaries, inviting travelers and commuters into Vallejo for specific events •General signage could direct travelers on State Highway 37 and Interstate 80 to points in Vallejo of interest or new businesses
•Consider installing downtown kiosks to promote special events and inform visitors 24/7 •Kiosks should offer information in multiple languages, include maps to help visitors navigate the city, and provide details on local attractions, museums, historical sites, dining and shopping options, events, etc.

How does this pilot project contribute to Vallejo’s Economic Development Department goals? •Arts Downtown recognizes Vallejo artists and drives traffic downtown •Integrate with Shop-Local Campaign to drive people spending to downtown and specific parts of Vallejo, especially from those that come to Vallejo for arts •If visitors can be converted to overnight stays, that connection is critical Security Equipment for Businesses
Funding estimate: $50,000, pilot downtown and then beyond •Install audio and lighting downtown in place, as this would enhance the use of technology 5 For more, see https://www.caculturaldistricts.org.

City of Vallejo  2024 Economic Development Strategic Plan  Page 95 •Security equipment installation downtown to provide deterrence and a sense of safety •Following the reduction in services and related resources during the pandemic, several small businesses are experiencing increased vandalism or theft. •Communications with downtown and northern Vallejo business owners about how camera systems have worked may tell a need to enhance partnerships with CalTrans, California Highway Patrol (CHP), and the Solano County Sheriff's Office to augment the network of cameras in place and grow monitoring infrastructure
•Responds to the comment by survey participants that the City of Vallejo should help local businesses and prepare for future traffic.

How does this pilot project contribute to Vallejo’s Economic Development Department goals? •Recognizes downtown Vallejo as an economic engine that needs to be enhanced and ready for changes elsewhere in Vallejo’s economy
•Recognizes that local law enforcement is still building resources but preparing for change and reducing safety concerns for local businesses.

Software License Renewal and Training
Funding estimate = $25,000
This would use ARPA funding to provide licenses, training, or outright purchase of hardware or software for local businesses that were identified as needing them to continue as a business or become more efficient or both. As part of our team’s communications outreach, we heard from multiple businesses that they need customer relationship management (CRM) software, point-of- sale software, accounting software, security cameras, and other pieces of technology to complete their recovery from the pandemic. These local businesses might also need training in data entry and maintenance of the system if they have no prior experience with them.

How does this pilot project contribute to Vallejo’s Economic Development Department goals? •Provides direct support to businesses, especially those whose point-of-sale or accounting still rely on a noncomputerized method (Hispanic-owned businesses identified this as a critical need)
•Helps reduce the cost of doing business and tracking business progress.

For more details on pilot project choices, see the supplemental file called “Pilot Projects, City of Vallejo Vallejo’s Economic Development Department Using ARPA, June 2023.” City of Vallejo  2024 Economic Development Strategic Plan  Page 96

FACILITATING COMMUNITY OUTREACH, VOICE,

AND EXPECTATIONS
task 2.1: DRAFT Communications Plan for community engagement Task 2.1 was to build a communications strategy to generate qualitative information from Vallejo’s residents, businesses, public sector staff, and elected officials during the strategic planning. That plan was submitted to staff early in our project, and the file called “Draft Communication Plan, Task 2.1 Vallejo EDSP, Revised 081222” describes our approach.

Our team gathered thoughts and opinions on economic development and doing business in Vallejo from Vallejo’s residents and businesses during one-on-one interviews, group meetings facilitated by the regional chambers (Vallejo Chamber of Commerce, Solano County Black Chamber of Commerce, Solano County Filipino Chamber of Commerce, and Solano County Hispanic Chamber of Commerce), and meetings with regional employers and other stakeholders.

To engage Vallejo residents, elected officials, and city staff, we used a mixture of gatherings with residents hosted by particular elected officials, residential surveys using the City of Vallejo Bang the Table platform, and some one-on-one interviews with residents. Tasks 2.2 and 2.3 involved executing the communications plan in Task 2.1 and gathering that information. task 2.2: Facilitating Community Outreach and Voice and Expectations Interview and Group Meeting Themes: Local Employers (Currently Operating) and Business Advocacy Groups and leaders
As part of our communications plan, we reached out to local employers, regional chambers, economic development support organizations, elected officials, city staff, and Vallejo residents to pose questions about the state of doing business in Vallejo and how the City of Vallejo has been a partner with or a challenge for local employers.

Based on these questions, several opinions emerged, such as the following general comments:

What do you see as Vallejo’s most significant opportunities? Green initiatives on Mare Island, which has 1,000 acres of state land and 100 acres of solar so that it could become the “Island of the future”
oBrand around green energy, as electric ferries built on Mare Island Dredging Napa River could enable larger marine vessels to travel on and service both sides of the river
oDoing so might also enable the return of some shipbuilding. Elected officials need to address crime and its effects on businesses oNeed greater focus on having more police on the street and available oCreate a concierge service for key employers and projects to assist them in moving through the process and connecting the dots.

City of Vallejo  2024 Economic Development Strategic Plan  Page 97 Vallejo has unique assets and characteristics that would attract businesses:
oMare Island
oFerry Terminal
oProximity to the Bay Area and Sacramento.
Using more technology, create a “Business Watch,” similar to a neighborhood watch.

What are Vallejo’s most significant challenges?
Inclusive collaboration is absent: the BIPOC community is not part of broader discussions, especially BIPOC business owners
City of Vallejo needs to engage in dialogue and be able to react to it Leadership issues exist between the city staff and city council Solano County is not very involved in Vallejo, especially the county government.

Themes that emerged from the Business Survey Results include:
Homelessness, trash, lack of public safety, and consistency about all issues related to locating in Vallejo or expanding businesses
Mare Island is the best opportunity area in Vallejo
Downtown buildings are dilapidated and challenging to sell due to age, the need for tenant improvements, and lack of consistency with City of Vallejo staff on permit timing and costs Visitors to Vallejo are a significant asset and offer potential for current and future businesses.

What We Heard:

Residential Surveys and Meetings:

What We Heard
Employer Surveys and Interviews:

Vallejo can be a primary place to do business
regionally, mainly in downtown and waterfront areas
Mare Island can be a regional standout for both
tourism and jobs
Safety is a concern for residents in terms of where they choose to shop and play in Vallejo, as well as where
they go when visiting other places
Facebook and Nextdoor are popular ways residents use
to learn what is going on in Vallejo, along with
watching council meetings, reading newspapers, and
viewing the Vallejo Weekly
Residents want more information about what is going
on throughout Vallejo (Mare Island, Blue Rock Springs,
Waterfront, and Downtown) and other projects and
changes throughout the city’s central business districts People live in Vallejo mainly because of the climate and proximity to the inner Bay Area.

Businesses want better municipal services in terms
of police response, general public safety, road
quality, and reduced visibility of the homeless
Employers generally believe Vallejo has a lot of
“potential” for business, and more can happen
throughout the city with a focused effort to reduce
challenges and provide more assistance
Vallejo’s location, Mare Island, and the Ferry
Terminal are all recognized as unique assets
Perception: permitting processes are slow and
relatively numerous regionally
City Council needs to be more business-friendly and
consistent in terms of vocal support for local
businesses and being visible in the business
community (visiting businesses)
BIPOC businesses need to be embraced by the City
Council to support diversity
City of Vallejo  2024 Economic Development Strategic Plan  Page 98 What We Heard:

Opinions of Landowners, Site Selectors,
Commercial Real Estate Professionals:

What We Heard:

Opinions of Elected Officials Appointed
Officials and City Staff:

One opinion provided to our team was that Vallejo, outside Mare Island, is believed to be built out in terms of residential real estate.

Vallejo’s commercial real estate is generally thought of as older and class B or C
Vallejo’s Opportunity Zones are unique assets (Fairfield has the only other Opportunity Zones in Solano County), but (1) the Opportunity Zone program is federal, and new
investments cannot be made after 2027 as of June 2023, and (2) parcels in Opportunity Zones are not deciding factors in locating businesses generally.

High crime rates, safety concerns, and low-quality schools remain issues in tenant and owner perceptions of Vallejo.

Continued concerns over public safety, especially in the downtown and Sonoma Boulevard areas for residents, local businesses, and visitors
Dilapidated homes and commercial properties across the
city are an issue for business location decisions.

Disconnected commercial centers (northern Vallejo is not connected to downtown or waterfront areas), and Mare
Island remains an “island,” with only two connections to the mainland.

The ferry terminal is not connected to downtown or
waterfront commercial opportunities.

Location, weather, and proximity to markets
are all selling points for the City of Vallejo as a
place to do business
Everyone understands that homelessness and
its visibility are problematic for residents and
businesses in Vallejo.6
Everyone understands public safety is an issue;
Measure P should provide more resources and
relief.

Mare Island must be developed and become a
regional asset in the city’s economy.

City finances continue to struggle regarding
funding social priorities and staffing needs.

Waterfront and Downtown efforts need to start
and provide resources, including new housing
Local employers need to use diverse population
and educational institutions together to enable
social mobility
Use Location One software to market properties
after inventory completed
Roadways and transportation infrastructure
lacking and no strong regional plan exists
See the supplemental file “Communications Plan and Messaging: Tasks 2.1 to 2.3, City of Vallejo, June 2023” for more details, including surveys and group meetings’ summaries. 6 City of Rohnert Park in Sonoma County is a recent example of good planning and practice for a homeless population using regional partnerships. See more at City of Rohnert Park.

City of Vallejo  2024 Economic Development Strategic Plan  Page 99 Survey Questions: Residential
Between November 2022 and February 2023, our team, in partnership with the City of Vallejo’s Public Information Office, conducted surveys as part of our due diligence and had three goals:

1. Obtain simple responses to simple questions

2. Identify media that residents and businesses use as communication tools

3. Prepare to publicize our survey results.

Questions Raised at Residential Gatherings (see the tables below):

1. What is missing from Vallejo in terms of businesses?

2. Past interviews/surveys suggest that Vallejo has “potential.” In what ways do you think that Vallejo has potential?

3. When people you know come to Vallejo, where do you tell them they should visit?

4. Where do you go when you visit other places (not events but places), and why do you go there?

5. Why do you want to live in Vallejo?
The three residential gatherings were held at the following locations:
the Lodge at GlenCove, March 30, 2023
Emmanuel Apostolic Church, April 12, 2023
JFK Library, City Hall, April 24, 2023.

Our team retained the raw responses but eliminated repetition to conserve space in this Appendix.

These individual responses are intended to demonstrate the range of viewpoints expressed and the opportunities for the residents to offer their opinions at our meetings. These responses are the voice of Vallejo.

City of Vallejo  2024 Economic Development Strategic Plan  Page 100

City of Vallejo  2024 Economic Development Strategic Plan  Page 101 Detailed responses to questions: the Lodge at GlenCove, March 30, 2023 What is missing? Where’s the potential? What should
visitors see?
Where do you
visit and why? Why do you live here?
Investment in the
public-education system
Downtown can have
more businesses
Discovery Kingdom Farmer's Market It has much potential Transitional youth jobs Public transportation Bambino's San Francisco:
waterfront, restaurants
Location Job Talent,
Mare Island
Youth programs Golf, boating, parks,
hikes
USA Classics
World Events Center
Jelly Belly Beauty and history
Higher education (state
school)
To be a safe city Solano County Fair Fairfield Affordable, beautiful, close to everything
Quality schools Waterfront, retail close
to the ferry
Heritage District Lynch Canyon Residents are very
welcoming
Housing for the
homeless
Better schools Blue Rock Springs Golf Bay Area for
professional sports
Location, central, low
cost, diversity
Safe parking lots for the
homeless
We need to stop using
"potential"
City parks Suisun: waterfront,
restaurants
Diversity
City news and
dissemination to the
public
Mixed-use waterfront St. Peter's Chapel on
Mare Island
Sacramento: friends and
entertainment
Proximity to SF and SJ
Retail and restaurants
open in the evenings
Better coordination to
make the city run
smoothly
Mad Hatter Parade Napa: wineries,
restaurants, friends
Affordability
Incentives for small
businesses
None, if city staff
doesn't change ways
Vallejo Chamber of
Commerce Parade
Benicia: waterfront,
restaurants
Businesses in empty
buildings
Transportation and
cargo hub
Shakespeare in the Park Hurricane Harbor:

Waterworld in Concord
Bay Area transportation
Developed downtown
(like Benicia)
Potential, if utilized Anchor Pantry Concord, Walnut Creek:

Retail and
Entertainment
Family Lives here
Good shopping Clean, safe, affordable
neighborhoods
Mare Island Distillery Benicia: waterfront,
restaurants
Waterways
Higher education
expansion
Ferry Quality grocery stores:

Trader Joe's, Whole
Foods
Location
Civilian
maritime/shopping
Mare Island
development
Vallejo Symphony Concord, Walnut Creek:

Retail and
Entertainment
Close to work
Job opportunities Waterfront
development
Waterfront San Francisco: sporting
events and restaurants
Climate
Traffic enforcement Support and humility Empress Theater Oakland and Berkeley Weather Safety Mare Island Brewery Pier 39 Climate
Roads/Potholes
Program
Vallejo Naval Museum Martinez: Waterfront,
Bocce
Beautiful landscape
Clean streets Plaza Sonoma Raceway Hills
Public transit Zio Fraedo's Views
Better collaboration
within city departments
Bay Area Stage Theater Parks
Fully functioning marina Historic homes
Unity Moschetti's Coffee Shop
People who care Children's Wonderland
Festivals Provisions
Community gardens Pickleball/tennis courts
Youth activities Art studios and art walk
Vino Godfather

City of Vallejo  2024 Economic Development Strategic Plan  Page 102 Detailed responses to questions: Emmanuel Apostolic Church, April 12, 2023 What is missing? Where’s the potential? What should
visitors see?
Where do you
visit and why? Why do you live here?
Better schools Historic Tours Mare Island Brewery Concord/Trader Joe’s Affordable living More churches
Better police
Trader Joe's/Sprouts
Pothole fills
Farmers markets
Local restaurants
Oakland/Work
Concord/BART
Close to SF
Beautiful city
Grocery stores Cheaper housing Vallejo Symphony SF/work Great weather Gyms More social services Ferry Building Vallejo/Ferry Close to everything Cheaper housing
Parks
Active community
center
Rental places
Waterfront
Downtown
Fairfield/Shopping
Concord/Sun Valley
Mall
Ferry to SF
Low traffic area
Fixing city streets Shopping activities Vallejo People's Garden Vacaville/outlets Diversity Teen jobs Family activities Shopping plaza San Jose/events Art scene Gardens
Clothing stores
Fun centers
Educational
Improvement
Empress Theatre
Blue Rock Springs
El Cerrito/music
SF/travel
LGBTQ community
Growth opportunities
Environmental
protection
Fitness classes Bambino's Benicia/food Small businesses Childcare Informed residents Dan Foley Napa/winery Convenient places around
Youth programs
Newer buildings
Music Center
Mare island
Provisions
Recreational park
Napa/restaurants
Martinez/restaurants
Multiple schools
Tightknit community
Renovating old
buildings
Community Values
Water views
Hiking trails Mare Island/beer, wine Parks
Educational
opportunities
Entertainment value Six Flags Sacramento/family
activities
Downtown
Mall/shopping center
Job opportunities
Small & large business
opportunities
Lower cost of living
Movies/Cinema
Glen Cove Waterfront
Walnut Creek/shopping
Vacaville/healthcare
Vet hospitals
Health care/Kaiser,
Sutter
Medical expansion Davis/vet care Local churches
Job expansion Car dealerships
Fitness/gyms Costco

City of Vallejo  2024 Economic Development Strategic Plan  Page 103 Detailed responses to questions: JFK Library, April 24, 2023 What is missing? Where’s the
potential?
What should
visitors see?
Where do you
visit and why? Why do you live here?
Trader Joe's Waterfront Moschetti café Benicia/dining Affordable houses Public-safety plan
Inclusionary housing
Housing prices
Botanical Garden
Waterfront
Mare Island brewery
Oakland/music
Oakland/Beer Garden
Strong community
Beautiful
Better schools Center art/music Downtown Benicia/food Farmers market Bicycle lanes Bike tours Anchor pantry Napa/restaurants Diversity Rental places
Local shops
Collaborations with
citizens
Industrial expansion
First 5 Solano
Ferry
Napa/shopping
Berkeley Bowl
History
Mare Island
Major employers Highway intersection The Joint El Cerrito/music LGBTQ+ community EMS training Community Garden Six Flags Port Costa/everything Real estate Connected trails
Better streetlights
Involved citizens
Medical hub
Town House
Vallejo events
Napa/wine
San Jose Sharks
Work
Environment
Law enforcement North Star of the Bay GVRD parks SF/work Commute to work Shared housing Water views
Access to the bay
Mad Hatter Parade Oakland/work Services
Hotels
Business parks
Rivers
Expand health-care
Industry
Glen Cove waterfront
Savage & Cook
Concord/BART
Concord/John Muir
Good weather
Waste management
Clothing stores Weather China Wok Concord/groceries Close to all Bay Area Housing Culturally diverse They offer marketing
opportunities and
Pinole/Trader Joe's Church
Asset mapping
City pride
Ecotourism
Bird watching
Blue Rock Springs
Art walk
Martinez/dining
Farmers markets
Old houses
Near ferry
Infrastructure Fly Over Festival Vallejo symphony AC/Walmart "Center" of everything Senior activities Old K-Mart Manny's Steakhouse Vacaville outlets Less traffic Affordable commute
Wine tasting
More support for the
community
Transportation hub
La Piñata Taqueria
Tacos Jalisco’s
Dog parks
Tahoe
Homeless support
Growth opportunities
Beer gardens Downtown "vibrant" Palo Alto Art scene
Biotech Six Flags SF/all above
Leadership
Barnes & Noble
Improve/parent
involvement
Tahoe/camping
Entertainment hub

City of Vallejo  2024 Economic Development Strategic Plan  Page 104

STRATEGIC PLANNING PRINCIPLES
Strategic planning should be about the future, shaped by past events and current conditions.

Action steps are always about the future. Our team approached this plan as if Vallejo were a business needing a new communications strategy and investment capital. The budget for achieving goals foresees an expansion in resources used and an investment in partnerships.

The action steps and goals in this plan respond to four key considerations or questions:
What can Vallejo change and control?
oPerceptions about how the City of Vallejo supports local businesses oSeeking partnerships and solving problems for local businesses: connections to funding, training, marketing efforts, enhancing public safety efforts oProduce downtown and waterfront-specific plans at the same time as the Mare Island specific plan
What do residents and businesses want Vallejo to provide? oResidents: better safety and more retail choices
oBusiness: better safety, more customers, and partnership with the City of Vallejo oRegional communities: the ability to take advantage of Vallejo’s unique assets without safety concerns.
What development is already in progress in which the City of Vallejo can make investments to facilitate more commercial activity as a partner? oA downtown and waterfront-specific plan should be done at the same time and integrated with planning on Mare Island
oAffect what you know and what you can best predict: zoning flexibility and a new vision for commercial areas in Vallejo
What future changes are essential for Vallejo to anticipate? oHow the regional and national economic effects until 2030 will affect Vallejo oHow current parallel efforts and changes will shape Vallejo in ways that affect economic development.

Visionary steps: Our approach envisions two cycles, in which Cycle 1 focuses on building a foundation; Cycle 2is where Vallejo is set on a path to 2030 and beyond. At the end of Cycle 1, Vallejo should ask the following questions when thinking about progressing to Cycle 2:
What does a plausibly successful future look like?
Did the Cycle 1 action items progress toward achieving goals at the right time and in the right way?
Can Vallejo be at the top of the wallet regarding site selection and business owner choice? An external vision of Vallejo needs to be a unique and profitable place to do business. Economic development efforts need to find small wins (Cycle 1 action steps), change perception, and build on those foundations (Cycle 2). Such efforts need to be citywide. The overarching goal of a strategic plan is to shape the future rather than being shaped by it.

City of Vallejo  2024 Economic Development Strategic Plan  Page 105 Strategies help Vallejo not just to survive but to thrive and grow over time This comes with defining “thriving” realistically: KPIs, perceptions and change Also investing resources to get things done and understanding it takes time to emerge as a first choice in a marketplace
Need to focus initially on easy wins and building momentum (Cycle 1) “Strategic Doing”: Action steps need to show overt movement toward broader goals.

Communication Plan Principles and Marketing Plan Primer As part of this project, we developed a communications plan to inform and be informed about our strategic planning process with Vallejo’s residents, businesses, and city government. In Cycle 1 of our recommended plan, building on that foundation of consistent and honest communications  talking about the opportunities and challenges and how Vallejo’s Economic Development Department is addressing both  keeps all informed and engaged. Cycle 1 is about business retention and expansion; Cycle 2 is about business attraction.

A Marketing plan for Vallejo as a place to do business is recommended in Cycle 2 of our recommended tasks for Vallejo’s Economic Development Department Key Messages define the relevant economic development factors that differentiate the City of Vallejo and add to its value proposition for businesses. Key messages inform, convey benefits, and create an image of why and how the city differs from other areas as a place to do business.

Proof Points differentiate, qualify, and substantiate the key messages. You will need to continually add to the proof points—adding benefits and value propositions that a business will receive when locating or expanding in the region. Proof points are not stagnant; they are dynamic and constantly changing. Proof points offer marketing opportunities. Proof points build your marketing arsenal around the key messages.

Why important: A key message platform helps guide content for a marketing plan and sends clear, consistent, and compelling messages to various audiences.

Background: Local businesses and site-location consultants were interviewed to gather their perceptions of Vallejo’s assets, which are valuable for business success and growth.

The findings were presented in work sessions with private-sector and regional public-sector partners to prioritize and develop key messages. Repeating the critical message themes reinforces the position and brand identity and generates awareness and interest. Themes included:
Central location in the Bay Area with access to the Sacramento Metro Area; World-class workforce and unique assets for a series of industries; Partnerships exist to support business solutions to problems; Small-town, waterfront lifestyle with urban amenities and access.

City of Vallejo  2024 Economic Development Strategic Plan  Page 106

DATA SOURCES AND REFERENCES
Bureau of Economic Analysis (2023), County and Statewide Employment and Gross Regional Product, Accessed at https://apps.bea.gov/itable/?ReqID=70&step=1&acrdn=5 Bureau of Labor Statistics (2023), Regional Data, Accessed at https://www.bls.gov/eag/home.htm California Department of Finance (2023), Demographic Estimates (Population and Housing Units), Accessed at https://dof.ca.gov/forecasting/Demographics/estimates/ California Department of Finance (2023), State Economic Forecast to 2026 and Inflation Data Accessed at https://dof.ca.gov/forecasting/Economics/economic-forecasts-u-s-and-california/ California Department of Tax and Fee Administration (2023), Taxable Sales by City and County, Accessed at https://www.cdtfa.ca.gov/dataportal/catalog.htm?category=Taxable%20Sales%20in%20California California EDD (2023), County and Metro Area Wages, Accessed at https://labormarketinfo.edd.ca.gov/data/oes-employment-and-wages.html#OES California EDD (2023), Labor Force and Employment Data, Accessed at https://labormarketinfo.edd.ca.gov/data/labor-force-and-unemployment-for-cities-and-census-areas.html Census Bureau (2023), Demographic Data from 2011 to 2021, Demographic Overview (DP02), Accessed at https://data.census.gov/
Census Bureau (2023), Demographic Data from 2011 to 2021, Economic Characteristics (DP03), Accessed at https://data.census.gov/
Census Bureau (2023), Demographic Data from 2011 to 2021, Housing Characteristics (DP04), Accessed at https://data.census.gov/
Census Bureau (2023), Demographic Data from 2011 to 2021, Population Characteristics (DP05), Accessed at https://data.census.gov/
City of Vallejo (2023), Budget Data, Provided by City of Vallejo Finance Dean Runyan Associates (DRA) (2023), Tourism Data, Accessed at https://industry.visitcalifornia.com/research/economic-impact Federal Reserve Bank of Philadelphia (2023), Survey of Professional Forecasters, Accessed at https://www.philadelphiafed.org/surveys-and-data/real-time-data-research/survey-of-professional- forecasters
HdL Companies (2023), Sales tax Estimates, Taxable Sales from HdL, Provided by City of Vallejo Finance LightCast (2023), County and City Level Employment and Forecasts, Industry Mix, Accessed at https://lightcast.io/workforce-intelligence (courtesy of Workforce Alliance of the North Bay) Longitudinal Employment and Housing Database (LEHD) (2023), Employment by Industry, Commuting Flows (2011 to 2020), Industry Mix, Accessed at https://onthemap.ces.census.gov/ Smith Travel Research (STR) (2023), Summary Data from Smith Travel Research (Occupancy Rates, Average Daily Rate), provided by Visit Vallejo, Sonoma County Tourism, Marin County Visitors Bureau City of Vallejo  2024 Economic Development Strategic Plan  Page 107

THE RESEARCH TEAM
Economic Forensics and Analytics, Inc. (EFA), is an independent research and consulting firm in Sonoma County, California.

Since 2000, we’ve been dedicated to providing clients with customized economic analysis at a reasonable cost compared to our larger, local competitors. EFA offers expert witness services for clients needing support for financial or economic arguments in litigation or in-depth analysis of the opponent’s arguments, experts, and testimony.

EFA has produced strategic plans for corporate and government clients.

Team Lead: Dr. Robert Eyler, President of EFA, [email protected] We would also like to thank our Solano Community College interns, Breanna Lutz and Kenner Escobar, for their efforts at the citywide events.

Chabin Concepts is an economic development and marketing firm serving national and international clients. We have been privileged to serve over 350 communities, agencies, and organizations since our formation in 1989. Our portfolio includes four state-level assignments. Chabin aims to position clients to win new jobs and investments by creating strategies designed for implementation and supported by necessary tools and materials. We value every client and respect each community’s characteristics, heritage, and goals. We have institutional knowledge of what works, what might work, and what sounds good but really won’t work, and we bring that applied knowledge to our clients.

Subcontractor Lead: Vicki Doll, Principal, Chabin Concepts, [email protected]

ACTION ITEM 9.B.

DATE: December 17, 2024
TO: Mayor and Members of the City Council
FROM: Gillian Haen, Assistant City Manager
Michael Nimon, Economic Development Director
SUBJECT: ADOPT A RESOLUTION APPROVING THE BLUE ROCK SPRINGS REDEVELOPMENT

PARTICIPATION AND PERFORMANCE AGREEMENT BETWEEN THE CITY OF

VALLEJO AND BLUE ROCK SPRINGS, LLC AND AUTHORIZING THE CITY MANAGER

TO EXECUTE SAME

RECOMMENDATION
Adopt a Resolution approving the Blue Rock Springs redevelopment Participation and Performance Agreement between the City of Vallejo and Blue Rock Springs, LLC and authorizing the City Manager to execute the same.

REASONS FOR RECOMMENDATION

1. Approval of the Blue Rock Springs Participation and Performance Agreement will allow for Development of the City-owned Blue Rock Springs (BRS) property in accordance with the terms of the land Purchase and Sale Agreement executed on November 22,2022 between the City and Blue Rock Springs, LLC. The Participation and Performance Agreement outlines the deal terms that will generate a series of payments for the land to the City from the Developer. The deal structure is designed to minimize the City’s risk while maximizing its proceeds over time. The Participation and Performance Agreement is also designed to ensure the Property is developed under a new more robust land use mix, while also allowing the City increased revenues which could in turn be used for a newly designed Municipal Golf Course.

BACKGROUND AND DISCUSSION
The City owns Blue Rock Springs Golf Course which includes two 18-hole golf courses on approximately 225 acres located at 655 Columbus Parkway.

On May 23, 2017, staff presented a memorandum to the City Council detailing the Golf Course's declining revenues, which created the need for General Fund subsidies due to a cumulative operating deficit of $4.6 million between 2011 through 2017. The City Council then directed staff to issue a Request for Qualifications (RFQ) in August 2017 and subsequently, nine proposals were received. Of those proposals, the Greg Norman Company’s project concept was the only response that met the three City goals for the project. Norman Company partnered with Blue Rock Springs LLC retaining Greg Norman as a partner. Following a robust public process and various challenges to the project, including issues with the neighboring quarry's interests, a revised proposal was submitted for consideration and a partial property sale (for about one-third of the original site) took place in November of 2022.

On November 15, 2022, the City Council approved the Purchase and Sale Agreement and Joint Escrow Instructions (PSA) for 655 Columbus Parkway to Blue Rock Springs, LLC (the Developer), which

Date: December 17, 2024
Subject: ADOPT A RESOLUTION APPROVING THE BLUE ROCK SPRINGS REDEVELOPMENT

PARTICIPATION AND PERFORMANCE AGREEMENT BETWEEN THE CITY OF

VALLEJO AND BLUE ROCK SPRINGS, LLC AND AUTHORIZING THE CITY

MANAGER TO EXECUTE SAME

Page 2 ends

Vallejo City CouncilDecember 17, 2024

Vallejo City Council
December 17, 2024