Economy improving a bit in Solano County

By Reporter Staffthereporter.com

Posted: 03/22/2013 01:06:01 AM PDT

Solano County is showing some positive signs of economic recovery but still finds some areas reeling from the financial turmoil of the last six years, according to a report released Thursday.

 

The 2012 Index of Economic and Community Progress, which will be the subject of next week's Solano Economic Development Corp. gathering, includes an analysis by Robert Eyler of Economic Forensics and Analytics.

 

"Once again, there are trend lines for Solano County that are starting to point in the right direction," said Sandy Person, president of the Solano EDC. "Not everything is moving in the right direction just yet, but it appears most of the indicators have stopped going in the wrong direction. It's a start of a recovery that we can capitalize on."

 

The 2012 Index examines local economic condition from three perspectives. The long view goes from 2000 to 2012, which compares the end of the 1990s cycle to the recent recovery. The recession view goes from 2006 (the peak year) to 2010 (the bottom year) in the local employment market. The recovery view represents changes since 2010.

 

Over the long view, Solano County had a net gain of 4,367 jobs from firms located in the county, a 28.3 percent increase in the gross domestic product, a 3.6 percent increase in the per capita income and a 9.7 percent decline in median household income. While Solano County has been better than the Bay Area, the Sacramento region and the rest of the state in retaining local jobs, the number of residents seeking employment grew faster than the troubled regional economy could support. The number of unemployed people in 2012 has more than doubled since 2000.

 

The somberness of the long view happened primarily between 2006 and 2010. As a result of the local housing market collapse and the Great Recession, local firms shed 12,000 jobs and the gross domestic product from private industry shrank 4 percent. Per capita income declined 6.8 percent, taxable sales and assessed property values declined nearly 25 percent and quarterly foreclosure figures were breaking annual records, the report found.

 

The recession view held some bright spots. Between 2006 and 2010, seven local industry sectors showed growth in gross domestic product and five experienced gains in jobs. Health care dominated the growth in both GDP and local job gains, the report noted.

 

Local industry employment hit bottom in 2010. Since then, Solano's private industries have added back 4,200 jobs, but the gains were offset by government sector declines of 1,133 jobs. The seasonally adjusted unemployment rate for Solano County dropped to 9.6 percent in December 2012, down from 12.2 percent in December 2010. That translates to 7,050 more residents employed.

 

"Supervisor Mike Reagan and I pushed for the Index to give us a better perspective on what is happening in the economy and what we can do collectively to move the economy forward," said Supervisor John Vasquez. "In cooperation with the Solano EDC, the county is building the internal capacity to monitor, analyze and report the key indicators shaping our local economy."

 

The complete 2012 Index is available online at www.solanocounty.com/economicindex. Past indexes and analyses of the life science, energy and food chain clusters in Solano County are also available on the website.

 

Thursday's Solano EDC gathering will include a presentation on the report by Eyler. The Solano EDC breakfast starts with registration and networking at 7:30 a.m., with the presentation beginning at 8, at the Hilton Garden Inn, Fairfield. Cost is $25 for members, $35 for non-members. To register or obtain more information, contact Solano EDC at 864-1855.

Assembly members address Solano business, community leaders

By Barry Eberling
From page A3 | February 23, 2013 | Leave Comment

FAIRFIELD — Solano County’s representatives in the state Assembly are getting ready to work on a state budget without facing financial projections awash in red ink, a change from recent years. 

“We are in different times, perhaps more hopeful times,” Assemblywoman Mariko Yamada said at Friday’s Solano Economic Development Corp. monthly breakfast.

Yamada, D-Davis, Assemblyman Jim Frazier, D-Oakley, and Assemblywoman Susan Bonilla, D-Concord, each represent a different part of Solano County. They addressed a crowd of local business and civic leaders at the Hilton Garden Inn.

California voters stopped the state’s economic bleeding by passing the Proposition 30 tax increases in November 2012, Yamada said. But, even though the situation looks more hopeful, the Legislature must act with restraint, she said.

“We cannot squander this moment in California’s history,” Yamada said.

Bonilla said that Gov. Jerry Brown would probably like the Legislature to rubber-stamp the proposed budget he has submitted. The Legislature won’t do that, she said. But she did say the Legislature will pass a budget by the June 15 deadline, something that has been a rarity in recent years.

“It’s very important we hear from you in the business community,” said Bonilla, who described the budget as a “tax dollar investment.”

The state in recent years cut about $1 billion from the University of California system and from the California State University system, she said. Now the state can begin filling back in the hole it had to dig, she said.

Bonilla also talked about high school education changes that she would like to see. Students can be bored in classes that fail to reflect the 21st century. Students need to do more than learn how to fill in bubbles on a test, she said.

“Those aren’t the people you want to hire,” Bonilla said. “Last time I looked, that wasn’t on a job description . . .”

Schools need to engage students and educate them to think and solve problems. Students might learn in the context of health care, engineering and the arts, Bonilla said. She also stressed the importance of early childhood education.

Frazier said he has dealt with state regulations as a general contractor. He too has “felt the pain,” he told his audience. He talked about updating the California Environmental Quality Act, a topic that Brown has also mentioned.

An audience member during the question-and-answer session said California overregulates small businesses and called the state Environmental Protection Agency a “rogue agency” that needs to be called to account. None of the Assembly members directly addressed his comments.

Reach Barry Eberling at 427-6929 or beberling@dailyrepublic.net. Follow him on Twitter at www.twitter.com/beberlingdr.

Three area representatives talk issues at Solano EDC breakfast

 

By Melissa Murphy/The Reporter, Vacavilletimesheraldonline.com

Posted: 02/24/2013 01:01:14 AM PST

A unique opportunity presented itself Friday morning as three state lawmakers joined local business and government leaders to discuss issues facing Solano County this year.

 

During the monthly Solano Economic Development Corporation breakfast, Democrat Assembly members Mariko Yamada, Jim Frazier and Susan Bonilla, shared issues that they're working on at the state level.

 

Bonilla, who now represents District 14 which includes Vallejo and Benicia, said this year is a time to restore voter confidence in government.

 

She said the passage of Proposition 30 will help do that.

 

"You put trust in the state government to make wise decisions," Bonilla said. "We're in a critical place right now in building trust so that we can look at moving forward."

 

Bonilla noted that before the tax measure was passed, money was cut from education to fill the state's deficit. She said some 400,000 fewer students enrolled in community colleges and 30,000 credentialed teachers were laid off.

 

Yamada, who represents District 4 which includes Dixon, said while her district boundaries moved she still has a "toe in" the county's northern portion and a vested interest in its economic success.

 

Yamada noted that Gov. Jerry Brown has emphasized the issues surrounding education, health care and the prison system, but argued that a healthy economy is key to any success.

 

Jim Frazier, who represents District 11, an area that includes most of Solano, said he's really living the dream by representing the district.

 

Frazier told the room of business people that he has been a general contractor for years.

 

"I have felt the pain," he said. "I'm at the state to encourage a better business environment."

 

Frazier said his desire to participate in public service started after his two daughters were on their way to Lake Tahoe in 2000 and one was killed in a crash. He said it was then that he made sure the California Transportation Department revamped that section of road on Highway 50 so that accidents would stop.

Solano Economic Development Corporation has new board of directors chief

By Melissa Murphy/ MMurphy@TheReporter.comthereporter.com

Posted: 02/01/2013 01:07:46 AM PST

There are many reasons the Solano Economic Development Corporation can celebrate.

Solano EDC is celebrating its 30th year in existence, it's only the third time in the last decade the organization has ended the year on solid financial footing by being in the black and, to top it off, it's the first time a woman was chosen to chair the board of directors.

Patsy Van Ouwerkerk, with Travis Credit Union, will lead the board this year.

"Being the first woman to be selected as chair is an honor and I am proud of the board's confidence in me," Van Ouwerkerk said. ... "I now join a long list of chairmen whose drive, talent, skills and vision have enabled the Solano EDC to move forward and attract new business to Solano County."

This coming year, she said Solano EDC will be focused on retention and on attracting new businesses. Ouwerkerk said she's looking forward to working with the board to "enhance and leverage existing public and private partnerships and to develop new ones in order to improve the economic vitality of Solano County."

Ouwerkerk was a good choice, according to outgoing chair Scott Reynolds with Gaw Van Male, who chaired the board from 2008-12.

"You're in good hands," he told a packed room of government and business leaders who gathered Thursday for lunch at the Hilton Garden Inn in Fairfield for the first meeting of 2013. "Patsy is a dynamic and visionary leader."

"It's been an honor to serve the last five years," he added.

Solano EDC President Sandy Person said 2012 really kicked off a "new normal."

Her enthusiasm in the afternoon's presentation was contagious as she delivered some of the highlights from the past year.

She shared that the city of Vacaville boasts a 99 percent occupancy rate in its downtown, while trendy national stores are popping up in the Premium Outlets across town.

Additionally, a state-required $150 million expansion project to the city's Easterly Wastewater Treatment Plan is set to finish this year.

Meanwhile, the city of Dixon saw new growth in its business sector with Altec moving into the area. The company builds products and serves the electric utility, telecommunications and contractor markets and added 100 jobs to the area.

Additionally, Viva Market and Dollar Tree both set up shop in Dixon.

Looking at Solano County, Person explained that the agriculture industry continues to grow, and more specifically, in processing.

A new jail expansion at the Claybank Detention Facility and additional windmills at Shiloh IV in the Montezuma Hills adds to the growing economy, she said.

The county has also been awarded a grant of $369,860 to conduct a study on how Solano County can be less reliant on the ever-changing Department of Defense budget, which is connected to Travis Air Force Base.

The base continues to be a driving economic force in Solano County, according to Col. Dwight Sones, who is the commander of the 60th Air Mobility Wing at Travis.

"Thank you for all that you do for Travis and our families," he said to the members of the Solano EDC. "We could not do what we do without your support."

Driving home that Travis is "America's First Choice," Sones shared that the base brings $1.4 billion of positive annual economic impact to the county and generates 5,000 jobs, according to 2011 data. He said he expects the data for 2012 will be very similar.

A new runway and landing zone is nearly finished. The landing zone, Sones said, will be ideal for assault training that airmen currently have to travel out of state to do.

The landing zone also will allow other installations to train.

"It will pay for itself in three years," he said. "If you pave it, they will come."

There is some budget uncertainty this year," he said.

The dynamic economic environment means times are tough and will include trimming down and stopping certain activities for the time being to save money.

The good news, he said, is that Travis has a culture of being efficient and innovative and has been monetarily rewarded and recognized nationally for their efforts to be fuel and energy efficient.

Follow Staff Writer Melissa Murphy at Twitter.com/ReporterMMurphy.

Sones: Travis tightening its belt, improving facilities

By Ian Thompson
February 1, 2013

FAIRFIELD — Budgets may be tight, but Travis Air Force Base is still more than able to carry out its mission, thanks to the dedication of its airmen and a determination to fill the needs of its service members and their families.

That was the central nugget of the talk Travis commander Col. Dwight Sones gave to the Solano Economic Development Corporation’s 30th annual meeting Thursday at the Hilton Garden Inn.

Sones said that the base is tightening its belt for the time being after the Air Force directed all major commands to start a series of cost-saving measures in case Congress allows massive cuts to defense spending, called sequestration, to take place in March and if Congress fails to pass an appropriations bill this fiscal year.

Expenses that are not deemed critical to the mission included cutting supporting flying missions not directly related to readiness, implementing a civilian hiring freeze, deferring repairs and renovations that are not emergencies and canceling all travel that is not mission-essential.

“Some things we will have to stop doing,” Sones said.

Sones described the measures as reversible and recoverable. He also described the situation as a very dynamic environment that could change quickly. Action is required now even though sequestration may not take place in March or may be delayed by federal leaders.

“We still have to deal with it,” Sones said.

Sones pointed out that the Air Force has not instituted anything like furloughs or reductions in force. He also promised those present that as Travis gets more information about the situation and any impacts, “We will keep you in the loop.”

He said Travis has gotten a reputation for stretching its dollars, with the base’s recent monetary awards for increasing its fuel and energy efficiency.

The Travis commander also used the talk to give Solano Economic Development Corporation members an economic snapshot of the base and the construction projects going on there.

Travis has $13.7 billion in assets and facilities, has a $1.4 billion economic impact and its spending generates about 5,000 jobs in the community, according to data from the base’s 2011 Economic Impact Report, which Sones quoted.

“And the 2012 data is expected to be very similar,” Sones said.

Travis still has a lot of construction in the works, even though it is less than in the past, Sones said.
It has seen several projects completed in the past year, such as the $5.4 million cargo-loading facility and the $11.9 million new fire station, as well as present projects such as the $14.5 million fuel-distribution system and the $1.7 million military working-dog facility.

The $70 million runway reconstruction and new assault runway construction is expected to be finished in April. The assault runway will be used for training by Travis aircrews and also by aircrews from other bases, “and that is huge,” Sones said. The savings from not sending aircraft elsewhere to train will allow the runway to pay for itself within three years.

A $22 million first phase of an airmen’s campus housing facility is under construction, with completion expected in January 2014 and the second through fourth phases expected in the next several years.

David Grant Medical Center just started the second phase of its planned improvements in November 2012, with $63 million being spent to improve the emergency room and outpatient facilities. Future improvements include the operating room, women’s clinic, and labor and delivery rooms.

Solano Economic Development Corporation President Sandy Person preceded Sones’ remarks by talking about Solano County’s economic situation. She said “there is a recovery in place” that has seen industrial vacancies in the county drop from 15.1 percent to 13.4 percent while unemployment dropped to 9.3 percent.

Person said that every community in the county has seen improvements with new businesses opening and bringing jobs to the area.

Solano Economic Development Corporation also recently embarked on a study funded by a $369,860 Department of Defense grant to examine and make proposals about better diversifying the county’s economy.

“This is not about shrinking Travis,” Person said. “This is about growing the pie.”

Reach Ian Thompson at 427-6976 or ithompson@dailyrepublic.net. Follow him on Twitter at www.twitter.com/ithompsondr.

Editorial: Solano EDC brings it all together

Published by The Reporterthereporter.com
Posted: 01/18/2013 01:04:09 AM PST

During its 30-year existence, the Solano Economic Development Corp. has rightfully been credited with guiding major employers and whole new industries to Solano County.

 

Just as important -- and far less noticed -- is that Solano EDC has become the forum where private industry and government leaders can come together, discuss their challenges and work out common-sense solutions that strengthen the entire county.

 

That wasn't always the case.

 

When Solano EDC was born in 1983 (it was known as SED Corp. then), local communities regularly tried to undermine each other in their scramble to bring in jobs, while local businesses often did what they could to keep out competitors.

 

A peek into The Reporter archives shows that, just prior to Solano EDC's formation, there were two countywide organizations devoted to business development -- one run by government and the other, by private industry -- that worked independently of each other and even publicly bickered from time to time.

 

Once Solano EDC was formed, its leaders managed to bring those factions together and get everyone to acknowledge that it was more important to bring industry into Solano County -- even potential competitors -- than it was to nitpick about which community that new industry chose to settle in.

 

Such cooperation has continued through three decades and has led to the rise of Solano County as a center for biotechnology and an expanded food industry built on the region's reputation as an agricultural center.

 

Solano EDC has been at the helm of improving Solano's workforce by creating ties with the state university system and expanding local college opportunities. It marketed Solano County to the world, and foreign industries responded by bringing their companies here.

 

Solano EDC has done for Solano County what California has completely failed to do on a statewide level. And now, with the demise of redevelopment agencies, Solano EDC's role in local economic development has become even more vital.

 

Of course, none of this happened overnight. It took three decades of building personal relationships while reminding the world that Solano County is the "heart" of the Northern California region that stretches from San Francisco to Sacramento -- and the work continues.

 

How exciting to imagine what the next 30 years could bring.

County to look at diversifying Solano economy

By Barry Eberling
January 15, 2013         

FAIRFIELD — Solano County has a chance to study creating a more diverse economy that depends less on defense expenditures at Travis Air Force Base.

A $369,000 federal grant is available for the study. The county Board of Supervisors will vote Tuesday whether to accept the money. It looks to be an easy decision – the item will appear on the board’s consent calendar, which is reserved for items likely to be noncontroversial and require no discussion.

Supervisors meet at 9 a.m. at the county Government Center, 675 Texas St.

At a glance

• Who: Solano County Board of Supervisors
• What: Accept grant to study how to diversify the economy
• When: 9 a.m. Tuesday
• Where: Solano County Government Center, 675 Texas St.
• Info: 784-6100

Solano County doesn’t want to contemplate a less vigorous Travis Air Force Base, much less a base closure. Rather, it wants to study further building an economy that has Travis Air Force Base and a whole lot more.

“It grows the economy around the base so that the base is a smaller piece of the pie, so it is not having an undue influence on the economy, even though it will always be a significant aspect,” county spokesman Steve Pierce said.

At the same time, the study will look at the supply chain serving the base. Then the county can reinforce the supply structures that the base needs, he said.

“It’s a gain all around,” Pierce said.

Travis Air Force Base had its beginnings in 1942 during World War II, when bulldozers carved out two runways in pastureland 10 miles east of Fairfield. Fairfield at the time was a small town with
about 1,400 residents.

A fast-growing base helped transform Fairfield-Suisun, as did the coming of the interstate freeway system and the rise of the commuter culture. Fairfield’s population by 1950 had doubled since the base opened and by 1960 had grown by 10 times, the start of a growth boom leading to today’s Fairfield population of about 105,000.

Today, Travis Air Force Base officials estimate the base’s local economic impact at about $1.4 billion annually. This includes the payroll for 13,368 employees at the base, other jobs created in the community because of the base and contracts awarded by the base to local businesses.

The base is the largest single employer in Solano County and employs about 6 percent of the county’s total industrial work force, a county report said. In addition, nearly 10 percent of the county population is veterans.

A county report said the study will assess:

• Industry clusters in the county and how much these clusters rely on and benefit from the base.
• Solano County’s work force and its ability to meet the demands of a more diverse economy.
• Work force leakage, which is local residents taking their talents to other regions.
• Potential opportunities to further diversify the county’s economy.

Finally, the study is to recommend a course of action.

If the Board of Supervisors grants it approval Tuesday, the county will look for a consultant to do the study. Results should be available in about 18 months.

Pierce said that the county receiving an economic diversification grant from the Department of Defense isn’t a sign that the base is marked for closure.

“The Department of Defense’s perspective is they want the communities around (bases) to be very viable,” Pierce said. “For a variety of reasons, it helps the bases.”

Mare Island Naval Shipyard closed in 1996 and set Vallejo into an economic downturn. Pierce clearly didn’t want to contemplate a Travis closure.

“It’s more than an economy to us, it’s part of our culture,” Pierce said. “That would be like us losing agriculture.”

Solano County will be the lead agency on the grant study, but intends to involve other organizations as well, a county report said. These include the Solano Economic Development Corporation, the Travis Regional Armed Forces Committee, the county’s seven cities, the Solano County Workforce Investment Board and the Solano College Small Business Development Center.

Reach Barry Eberling at 427-6929 or beberling@dailyrepublic.net. Follow him on Twitter at www.twitter.com/beberlingdr.