Solano Economic Development Corp. guest discusses future of California's growth

by: Richard Bammer, rbammer@thereporter.com

Longtime Bay Area and state public servant Sunne McPeak said Solano County and California are making a comeback from the Great Recession, but, to maintain economic growth, political and business leaders must be "focused on outcomes" and work together.

The president and CEO of the California Emerging Technology Fund and a former Contra Costa County supervisor, McPeak, speaking Wednesday at a Solano Economic Development Corp. meeting in Fairfield, wondered, "Is California going to be a global leader again?"

The county and state boast "amazing assets to build upon" in the lingering wake of the most serious recession since the Great Depression, she said at the noon luncheon marking the EDC's 29th annual meeting, held at the Hilton Garden Inn.

Speaking to more than 200 area government, business and education leaders, McPeak quoted President Woodrow Wilson to support an assertion that the key to political and economic success, whether it be at the county or state level, is for stakeholders to bridge ideological divides.

"The most efficient form of government is the spontaneous cooperation of its citizenry," she said, quoting the 28th president and an allusion to ongoing political gridlock in the halls of the state Capitol and on Capitol Hill in Washington.

McPeak, who served for three years as secretary of the California Business, Transportation and Housing Agency for former Gov. Arnold Schwarzenegger, cited the state's multibillion-dollar agricultural industry, life-science research and high-tech companies as reasons to be optimistic about the future. But the key to any successful economic strategy, she said, "is to play to your strengths."

Saying California has historically relied on a "research base" laid down by biotech firms, the military and universities, McPeak, who earned a master's degree in health education and medical care administration, said it provided "an added value" to the state's economy found nowhere else.

As the chief of CETF, a statewide nonprofit group with a mission to close the so-called "digital divide" among underserved communities, she called California "a natural leader in broadband connectivity."

McPeak said California, once ranked relatively low among states in broadband service, has emerged in the last five years as a national leader in the field, recognized by bureaucracies "in the Beltway," a reference to regulatory agencies in Washington.

The private and public sectors work best when their goals are mutually beneficial, she noted. While the private sector may be the source of most jobs in the United States, economic development in communities "is determined by the environment of the public sector," she asserted.

California can regain "its place in the sun," said McPeak, when leaders in Sacramento and Solano County focus on outcomes, forging plans that declare "here's where we're going and this is how we'll get there."

To be competitive in the global economy, state and local leaders must encourage innovation, improve quality of life, govern effectively and forge a culture of accountability, she asserted.

McPeak noted that the Government Performance and Accountability Act will be on the November ballot. If approved, it requires that policies, programs and fiscal decisions by local and state governments be driven by data that indicates what is or is not working.

Solano EDC meeting has encouraging words for tough times

January 25, 2012 | Posted by Barry Eberling

Solano EDC meeting has encouraging words for tough times

Sunne McPeak, president of the California Emerging Technology Fund, gave the keynote address to the Solano EDC annual meeting at the Hilton Garden Inn Wednesday morning in Fairfield. (Mike Greener/Daily Republic)

FAIRFIELD — Solano Economic Development Corp. members on Wednesday heard some encouraging words amid a still-struggling economy.

The occasion was the group’s 29th annual meeting. About 270 people came to the lunchtime event at the Hilton Garden Inn.

Sunne McPeak gave the keynote address. McPeak is a former Contra Costa County supervisor, former secretary of the state Business, Transportation and Housing Agency under Gov. Arnold Schwarzenegger and president of the California Emerging Technology Fund.

“Those of you sitting in the room are the key to Solano’s success,” McPeak said, adding people in their positions are at the heart of whether California becomes a global leader once again.

Both local elected officials and people from local businesses were in the room. McPeak called the area’s public-private partnerships its great strength.

She mentioned other Solano County strengths as well, from its proximity to such research institutions as UC Davis, to such natural features as Suisun Marsh and San Pablo Bay.

“Any successful economic strategy, you already know, you play to your strengths,” she said.

McPeak labeled the state’s successful effort to end redevelopment agencies, which cities such as Fairfield, Suisun City and Vacaville used for economic development, as “insanity.”

“There needs to be a replacement soon,” McPeak said.

She had harsh words for state government in general, but for the structure rather than legislators. At one point, she had people involved with private enterprise in the room stand.

“We want to thank you for being patient with this state,” McPeak said.

McPeak talked about a movement called California Forward, of which she is a part. Among other things, it would base state budgeting on results that can be measured. She mentioned five criteria: reducing crime, improving education, reducing poverty, improving health and increasing employment.

“That is absolutely common-sense government,” McPeak said.

She also talked of the California Emerging Technology Fund, which the state Public Utilities Commission formed in the wake of telecommunication company mergers. AT&T and Verizon gave a total of $60 million to the fund, McPeak said.

The group’s goal is to close what it calls the digital divide by having 90 percent of California households with broadband connections by 2020. The number stands at about 70 percent today. McPeak said communities with high-speed Internet access get more investment.

McPeak urged the Solano County Board of Supervisors to hold a summit on the broadband issue with Contra Costa and Alameda counties.

Solano County Board of Supervisors Chairwoman Linda Seifert attended the Solano EDC lunch. She noted after the event that Solano County already teams with neighboring counties on certain issues, such as the recent agricultural economic summit with Yolo County and work on tribal issues with Napa and Sonoma counties.

Seifert said Solano County would have to look at which counties it would partner with on broadband issues, if it decides to go in that direction. McPeak during her presentation didn’t say why she mentioned Contra Costa and Alameda counties, as opposed to other regional counties.

Solano EDC President Sandy Person also addressed the luncheon gathering. She mentioned success stories in the county and its seven cities in 2011 and challenged people in the room to spread the message.

“Let’s make some magic happen in 2012,” Person said.

Reach Barry Eberling at 427-6929, or beberling@dailyrepublic.net.

Vacaville council to ask legislators to delay end to redevelopment

VACAVILLE — Vacaville is joining other California cities that are asking their representatives in Sacramento to delay the state’s elimination of redevelopment.

City Hall is asking for more time, saying the state law eliminating redevelopment has already killed one Vacaville business and could threaten others that have leases and agreements connected to the city’s redevelopment agency. The law also threatens to throw a monkey wrench into the city’s contracts with its employee groups, the letter states.

The letter, which goes to the council for approval Tuesday night, contends there are too many unanswered questions and discrepancies within Assembly Bill 1X26 that need time to be ironed out before redevelopment agencies are done away with and their assets disposed of.

Vacaville City Council

• What: Approval of letter asking state legislators to delay imposing law eliminating redevelopment
• When: 7 p.m. Tuesday
• Where: Vacaville City Council chamber, 650 Merchant St.
• Info: 449-5100

The council is also scheduled to vote on whether to serve as the successor agency to the city’s redevelopment agency and preside over the disposal of Vacaville’s redevelopment funds and assets.

This vote follows a week after the Suisun City and Fairfield city councils approved their intention to become successor agencies for their redevelopment agencies.

Late in December, the state Supreme Court ruled that Gov. Jerry Brown and the Legislature have the power to eliminate redevelopment agencies and use their money to fund education.

Vacaville drafted the letter at the request of the California Redevelopment Agency to ask state legislators to create legislation to delay implementing AB 1X26, according to a report to the council from Public Information Officer Mark Mazzaferro. Vacaville expects to lose $4 million a year in redevelopment funds.

If approved, the letter will go to state Sen. Lois Wolk, D-Davis, and Assemblywoman Mariko Yamada, D-Davis, who represent Vacaville in Sacramento.

AB 1X26 and the subsequent lawsuit have already damaged Vacaville’s economy, according to the letter.

“One of the more popular businesses in downtown Vacaville has fallen victim to the end of redevelopment, as the Creekside Bar and Grill has closed. Because of the rules implemented prior to the Supreme Court decision, the city was unable to exercise an option to extend their lease,” according to the letter.

The letter contends other leases and agreements will be “called into question” and could affect groups such as the Downtown Business Improvement District.

City contracts with employee groups also face problems due to the legislation, according to the letter. Vacaville has used redevelopment money in almost every city department and it pays parts of the salaries of a large number of employees.

“The law calls for invalidating employee contracts at the end of January. However, such a provision is infeasible, as our labor negotiations require proper notice of layoffs,” the letter states.

While City Hall agrees redevelopment as it is now is over, the city is asking for time to create what the letter describes as “a more fair and reasonable process.”

Reach Ian Thompson at 427-6976 or ithompson@dailyrepublic.net.