Bay Area Council Blog: 21st Century Infrastructure Archive

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New Study Will Explore Opportunities for Expanding, Deepening Bay Area, Fresno, Central Valley Megaregion Connections

SAN FRANCISCO, CA – The Bay Area Council Economic Institute and Central Valley Community Foundation today announced the launch of an in-depth study to examine Fresno’s important role in the fast-emerging Northern California megaregion and how the arrival of high speed rail over the next decade will dramatically accelerate economic connections between Silicon Valley and the broader Bay Area and the state’s fifth largest city.

High speed rail is expected to shrink the time it takes to travel between the Bay Area and the Central Valley from more than three hours to less than one hour when it is scheduled to begin service in 2025 between Fresno and San Jose. That has huge implications for housing, transportation and workforce development across the megaregion and promises to bring exciting new economic opportunities to Fresno and other parts of the Central Valley. “Fresno and the broader Central Valley are key players in developing a broader megaregion strategy,” said Micah Weinberg, President of the Bay Area Council Economic Institute. “As county and other regional boundaries blur with the emergence of the megaregion, it’s imperative that we get a handle on what that future looks like and the infrastructure we’ll need to put in place to support it. We can act now to address these issues or confront chaos later. The Central Valley Community Foundation is an important and indispensable partner in making that happen.”

The study will focus in particular on strategies Fresno and other Central Valley cities can pursue to leverage high speed rail and other economic and demographic changes within the megaregion to boost their own economic prospects. While the 10 percent economic growth that Fresno has enjoyed since 2011 matches the national average, it has lagged cities like San Francisco and Los Angeles where the rate has reached 26 percent and 16 percent, respectively. Expanding the Central Valley’s participation in the megaregion economy, attracting new business and elevating its workforce to meet the needs of employers will also be a focus of the study.

“Improved economic and infrastructure connections between the Silicon Valley/Bay Area and the Central Valley is good, not just for our regions, but for the entire state,” said Ashley Swearengin, President and CEO of the Central Valley Community Foundation. “We are pleased to launch this work with the Bay Area Council and to explore meaningful ways to create new economic opportunities for Central Valley residents, businesses and communities and relieve pressure on the congested Bay Area.”

Swearingen kicked off the project on Friday, April 24 at a meeting in Fresno to identify the issues that would be addressed. The study is part of a much broader, long-term effort the Bay Area Council is leading to bring together top business, government and other civic leaders from the Bay Area, Central Valley, Sacramento and Monterey regions to develop a unified, integrated vision for guiding future planning for the megaregion around such issues as housing, transportation and workforce development.

Driving the Council’s intense focus on the megaregion is the Bay Area’s meteoric economic growth over the past decade combined with an historic housing shortage and affordability crisis. In search of more affordable housing, record numbers of Bay Area workers are being forced into longer and longer commutes from the Central Valley and Sacramento that are putting increasing pressure on an already overburdened and congested transportation system. At the same time, the Central Valley is eager to accelerate economic development opportunities that the megaregion offers and prepare its workforce.

The study with the Central Valley Community Foundation and support from Wells Fargo, UC Merced, Fresno State University, City of Fresno, and Lance Kashian & Co., is one of several activities the Council is leading to bring greater attention to megaregion planning. The Council is also working closely with Sacramento Mayor Darrell Steinberg and the Greater Sacramento Economic Council on megaregion issues, including investing in better rail connections along the I-80 corridor and promoting the capitol city as a destination for businesses looking to start and expand outside the Bay Area.

The Council will be convening a series of meetings in 2018 to begin a dialogue with government, business, nonprofit and academic leaders on the future of the megaregion.

 

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About the Bay Area Council Economic Institute

The Bay Area Council Economic Institute is a public-private partnership of business, labor, government and higher education that works to foster a competitive economy in California and the San Francisco Bay Area, including San Francisco, Oakland and Silicon Valley. The Economic Institute produces authoritative analyses on economic policy issues affecting the region and the state, including infrastructure, globalization, energy, science and governance, and mobilizes California and Bay Area leaders around targeted policy initiatives. Learn more at www.bayareaeconomy.org.

 

About the Central Valley Community Foundation

Central Valley Community Foundation has been a trusted partner in philanthropy in the Central Valley for more than 50 years. Our mission is to cultivate smart philanthropy, lead, and invest in solutions that build stronger communities. Learn more at www.centralvalleycf.org.

 

About the Bay Area Council

The Bay Area Council is a business-sponsored, public-policy advocacy organization for the nine-county Bay Area. The Council proactively advocates for a strong economy, a vital business environment, and a better quality of life for everyone who lives here. Founded in 1945, the Bay Area Council is widely respected by elected officials, policy makers and other civic leaders as the voice of Bay Area business. Today, more than 300 of the largest employers in the region support the Bay Area Council and offer their CEO or top executive as a member. Our members employ more than 4.43 million workers and have revenues of $1.94 trillion, worldwide. Learn more at www.bayareacouncil.org.

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STATE ECONOMIC STRATEGY BILL ADVANCES

California is a global innovation and economic powerhouse, but currently does not have a statewide, comprehensive plan to grow its economy. That would change under legislation (AB 2596) that the Bay Area Council is sponsoring with the Greater Sacramento Economic Council and Valley Vision. AB 2596, authored by Assemblymembers Ken Cooley, Kevin Kiley and Sharon Quirk-Silva, would authorize the creation a statewide economic development plan to grow jobs, better coordinate economic activities across counties and regions and boost the state’s competitiveness. Having a clear, unified strategy can also help protect the state against future economic downturns and ensure that economic opportunities are being spread more evenly across the entire state. AB 2596 on Tuesday won unanimous approval by the Assembly Jobs, Economic Development and the Economy Committee and now heads to Assembly Appropriations. Just ahead of the vote, an OpEd by Council CEO Jim Wunderman and Greater Sacramento Economic Council CEO Barry Broome that ran in the Sacramento Bee argued for passage of the bill. To add your company to the growing list of our AB 2596 supporters, please contact Director for Government Relations Cornelious Burke.

Read the OpEd in support of AB 2596>>

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Charting a Course for Megaregion Coordination

A rising economy, a massive housing shortage and growing traffic in the Bay Area are causing major changes across the Northern California megaregion that represent both opportunities and challenges. The Bay Area Council is spearheading an effort to bring together business, government, academic and civic leaders from across the megaregion on planning to embrace the former and minimize the latter. The Council last week traveled to Stockton where CEO Jim Wunderman presided over a meeting that included mayors from Stockton, Merced, Modesto and Livermore, leaders from key rail and regional planning organizations, and business and academic leaders.

In addition to hearing about the foundational research on the Northern California megaregion put together by the Bay Area Council Economic Institute and University of the Pacific, participants focused on the potential for future rail investments–in the ACE train and high speed rail–to spur economic development. The meeting, hosted by University of the Pacific in partnership with Valley Vision, was the first of a series of meetings the Council is convening across the megaregion in the coming months that will seek to produce a common policy advocacy agenda for megaregional stakeholders. To engage in the Bay Area Council’s work on the Northern California Megaregion, please contact Senior Vice President Michael Cunningham.

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Council’s Board Welcomes Senator Feinstein and Mayor Schaaf

U.S. Senator Dianne Feinstein and Oakland Mayor Libby Schaaf met with the Bay Area Council’s Board of Directors Thursday to discuss a range of pressing issues, from healthcare reform and homelessness to infrastructure investment and public safety. Board Chairman and Kaiser Permanente Chairman and CEO Bernard J. Tyson welcomed both leaders to a packed room at Kaiser’s Oakland headquarters. Feinstein updated the Board on her efforts to ban assault weapons, an issue she has championed for decades. She also discussed the importance of making Deferred Action for Childhood Arrivals (DACA) permanent as well as her interest in leveraging public private partnerships to repair and rebuild the nation’s aging and crumbling infrastructure.

Investing to expand and improve the region’s congested transportation system was also a top issue as Feinstein emphasized the need for a new crossing south of the Bay Bridge. Tyson thanked Feinstein for her great leadership and urged Council members to join a business delegation we’re leading to D.C. in May to promote California’s importance to the nation as some critics frame the Golden State as out of control.

Feinstein also gave warm praise for Mayor Schaaf, who described the progress Oakland is making in turning around years of crime and addressing a complicated homeless problem. Schaaf also highlighted a measure she is championing for the November ballot—the Oakland Children’s Initiative—that would invest in expanding access to early education and other early childhood programs. She touted the huge returns that early childhood investments have in increasing employment opportunities and avoiding expensive social and public safety costs. This is an issue that has long been a priority for the Council, whose executive leadership has expressed early support for Schaaf’s November measure as she works to get it placed on the ballot. The Council extends its gratitude to Kaiser Permanente for hosting our meeting.

Photo by New York Times

WITH RECORD BUDGET PROPOSAL, GOV. BROWN SEES RAIN IN THE FUTURE

There hasn’t been a lot of rain so far this winter, but Gov. Jerry Brown had the wet stuff on his mind this week (Jan. 11) when he released a $190 billion budget proposal that ups the state’s “Rainy Day Fund” by $5 billion to $13.5 billion. The reserve is designed to protect California against future economic downturns, which Brown believes is coming sooner rather than later. Still, the budget represents a record for California and includes a $7 billion increase over the previous spending plan. The Bay Area Council applauded many of the spending priorities, which include $4.6 billion for commute improvement projects from last year’s SB1 (Beall) legislation that the Council supported.

The plan invests $245 million to expand and protect affordable housing under SB2 (Atkins), another bill the Council supported last year. Brown proposed another $277 million for housing in anticipation of the passage of a statewide housing bond measure expected to appear on the November 2018 ballot. The spending plan also continues the Governor’s efforts to pay down the overall state debt and makes a small dent in the state’s massive pension liability shortfall. The Council is continuing to analyze the plan and will be weighing in directly as it now moves to the legislature, which has a June deadline to approve it.

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11TH ANNUAL ECONOMIC FORECAST CONFERENCE ON JAN. 19

What is the economic outlook for the Bay Area in 2018 and beyond? How will national and international trends affect our region? Join the Bay Area Council Economic Institute for the 11th Annual Economic Forecast Conference on Friday, January 19 from 8:00am-11:00am at the Federal Reserve Bank of San Francisco. Each year this conference convenes the region’s top private and public sector leaders to share their economic outlook for the Bay Area, California and the nation. In addition to remarks by SF Fed President Williams, there will be a panel of  thought-leaders from three different sectors: tech, commercial real estate, and finance. Also, visually compelling presentations by the leaders in the field of VR/AR will bring to life the economic forecast by showing what our cities will look like as this development occurs. From new urban homes and offices spaces being created in downtown Oakland to massive developments happening at the San Francisco Shipyards and around San Jose’s Diridon Station, we can now see the future before it is built. Speakers include:

Forecasting the Future
John Williams, President and CEO, Federal Reserve Bank of San Francisco
Ranjana Clark, Bay Area President, Union Bank
Kausik Rajgopal, West Coast Regional Manager, McKinsey & Company
Colin Yasikochi, Director of Research and Analysis, CBRE
Igor Popov, Economist, Airbnb

Visualizing the Future
O’Bien Chalmers, President, Steelblue
Radha Mistry, Futurist, Autodesk
Aaron Selvertson, CEO and Founder, Owlized

Special Announcement
Mayor Libby Schaaf, City of Oakland; Vice Chair, Bay Area Council Economic Institute

A continental breakfast will be served. Council members will receive a 50% discount using the code BACEI2018. Click here to register.

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2018 POLICY AGENDA TARGETS HOUSING, TRANSPORTATION, WORKFORCE

Behind the Bay Area Council’s continuing advocacy, the California legislature this year took its first (albeit modest) actions to address the state’s historic housing crisis. Much, much more needs to be done, and the Council’s Executive Committee and Board of Directors, under the leadership of Chair and Kaiser Permanente CEO Bernard J. Tyson, this week approved a 2018 policy agenda that calls for escalating our work to achieve deeper, stronger and more effective reforms for spurring the tsunami of new housing the state so badly needs. Already, the Council is identifying new legislation for 2018 that can speed the approval and bring down the cost of new housing.

The 2018 agenda also prioritizes ridding the scourge of traffic fom the Bay Area’s roads and highways and getting more commuters out of their vehicles and into ferries, carpools, shuttles and other forms of transit. The Council is gearing up now for a campaign to win passage of Regional Measure 3, a $4.4 billion transportation investment plan that is expected to hit the June 2018 ballot. Rounding out the Council’s top policy priorities for 2018 is building a stronger workforce pipeline to meet the future needs of the region’s employers. The Council’s Workforce of the Future Committee is making immense strides to better align educators and employers to close the region’s yawning middle skills and talent gap, as well as creating new career opportunities for underserved youth.

Along with the top three policy priority areas, the 2018 agenda includes gender equity and workforce diversity, healthcare, advanced communication infrastructure, China and global innovation, carbon reduction and renewables, and water and climate resiliency.

The policy agenda was approved Thursday (Dec. 7) during a meeting hosted by new member Santa Clara University. The Board also welcomed state Sen. Jim Beall Jr. and applauded him for his incredible leadership as the author this year of SB 1, which invests $52 billion in statewide transportation improvements, and SB 595, which authorized the vote on Regional Measure 3. Beall talked about both measures and outlined his plans for new legislation for delivering transportation projects faster and at lower cost. The Council will be working closely with Sen. Beall on that project delivery legislation.

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California Businesses Launch Major New Climate Resilience Initiative

The Bay Area Council today launched the “California Climate Challenge,” a major new initiative to strengthen California’s resilience to climate change. The statewide challenge will attract resources from across the business community to support research, planning, and implementation of community-level resilience projects and policies focused on California’s water, energy and telecommunications infrastructure, as well as its natural ecosystems and the wildland-urban interface.

The effort is being jumpstarted with a $1 million contribution from PG&E Corporation to the Bay Area Council Foundation. The total amount raised through the challenge – and final details on its scope – will be announced in concert with the Global Climate Action Summit in San Francisco in September 2018. PG&E’s contribution will come from its shareholders, not its customers.

“California’s business climate is inseparable from its actual climate,” said Jim Wunderman, President and CEO of the Bay Area Council. “Much of California’s infrastructure was built under a colder, wetter, more predictable climate than we have today. Protecting our homes and employment centers from extreme weather events, such as droughts, floods and wildfires, requires a top-to-bottom assessment of our existing resilience, and fresh thinking on how to best adapt.”

“We are already experiencing the reality of climate change in California,” said Geisha Williams, CEO and President of PG&E Corporation. “PG&E is incorporating this ‘new normal’ into how we manage risks, plan, and invest our resources. But our collective response to extreme events such as the tragic North Bay firestorms must go beyond the immediate work of rebuilding what was lost. A focus on resilience will strengthen our communities for the future.”

“We applaud this initiative to fund a public-private partnership for climate resilience in California,” said Mindy Lubber, CEO of Ceres, a leading sustainability non-profit organization. “Businesses are concerned about climate risks, which have the potential to cause wide-ranging disruptions to their operations and supply chains. Corporate support for tackling climate change is only growing stronger, and companies clearly see the benefit of staying ahead of the game and doing their part.”

Need for Action

Climate change will push California’s already volatile weather system to further extremes, increasing the frequency and severity of droughts, heat waves, flooding, and wildfires, and drive longer-term changes such as rising sea levels. California’s recent drought included the driest three-year period in the state in 1,200 years, including the hottest year ever recorded. Conversely, Northern California just experienced the wettest “water year” in its recorded history, resulting in severe infrastructure damage at California’s largest reservoir. According to the U.S. Forest Service, more than 100 million trees have died in California since 2010 and Cal Fire’s budget has increased by 45 percent since 2014 to address successive record wildfire seasons.

The California Department of Water Resources predicts the Sierra snowpack, which accounts for over a third of California’s total water supply, will decline by up to 65 percent by the end of this century, straining California’s farms, cities and ecosystems. On our coastlines, sea levels at the Golden Gate are projected to rise 6-13 inches by 2050, on top of the eight-inch rise measured in the 20th century. According to a study from the Bay Area Council Economic Institute, the Bay Area alone could suffer over $10 billion in damages (about the same as Loma Prieta earthquake) during an extreme storm under current sea levels.

These and other changes have the potential to negatively impact the health and safety of communities throughout the state, and undermine California’s economic prosperity. California companies are integral to the sustainability of the communities they serve — and have a unique responsibility to help them prepare for, withstand and recover from extreme events caused by climate change.

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Regional Coalition Submits Bid for Amazon HQ2

Leveraging a highly skilled and educated talent pool, a renowned innovation culture unmatched in the world and a slew of large transit-rich development sites located near top universities and airports, a Bay Area Council-led coalition of cities including Concord, Fremont, Oakland, Richmond and San Francisco today (Oct. 19) submitted a proposal to bring Amazon’s second corporate headquarters to the Bay Area. The Bay Area Council worked with the cities and other partners to coordinate the development of the bid.

“The Bay Area offers the whole package and is a natural and perfect fit for an innovation leader like Amazon,” said Jim Wunderman, President and CEO of the Bay Area Council. “We are the world’s innovation capitol. We offer top talent, top universities and large development sites connected by a rich network of mass transit and other transportation systems. Our competitive advantages are unparalleled, including our strong connections to the huge Asia-Pacific region.”

The coalition of cities working with the Bay Area Council has identified numerous sites which together offer Amazon an unmatched level of flexibility to create a world-class headquarters that embraces new models of dispersed but highly connected workplaces.

Read the Bay Area Amazon HQ2 proposal>>

The proposal includes more than 60 million square feet of high-quality office and research and development space, far exceeding Amazon’s requirement for up to 8 million square feet needed to house 50,000 workers. All of the sites provide seamless connections to robust transportation and mass transit networks, including BART and a fast-growing ferry system, and easy access to both regional and international airports.

Among the sites featured in the proposal are the Concord Naval Weapons Station in Concord, Coliseum City and numerous downtown locations in Oakland, the Warm Springs Innovation District in Fremont, SF Shipyard in San Francisco and the Richmond Field Station and Hilltop Mall in Richmond. All the cities are served by BART, which is undergoing a massive upgrade to expand its capacity and speed in the coming years, as well as by nearby international and regional airports and freeways. The proposal includes a combined 45,000 units of new housing that cities envision being built in the coming years.

“We are extremely confident that steps we are taking now as a region to improve our housing and transportation infrastructure will address Amazon’s needs for its workforce and future growth,” Wunderman said. “Our housing production has increased three fold in just the past six years and numerous residential development sites throughout the region envision adding tens of thousands of more units in the next five to 10 years.”

Amazon already knows the value of being located in the Bay Area, with current operations occupying more than 3 million square feet around the region.

A major draw for tech employers like Amazon is the access to some of the world’s best talent. Not only does the Bay Area produce its own highly educated and highly skilled workforce from top tier universities and colleges like UC Berkeley, Stanford, UC Davis, UC San Francisco, California State University East Bay and St. Marys attracts the best and brightest workers from around the globe. More than 75 percent of the Bay Area population holds a bachelor’s degree or higher, with more than 40 percent of those coming from science and engineering-related fields.

The proposal also outlines a range of state and local tax credits and other incentives along with commitments to streamline permitting and environmental review and work with Amazon on various workforce training and similar programs.

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TALKING WORKFORCE, HOUSING & AUTONOMOUS VEHICLES WITH ASSEMBLYMEMBER BERMAN

How California and the Bay Area prepare for rapidly changing workforce needs was a major focus of a conversation today (Aug. 11) that the Bay Area Council’s Government Relations Committee convened with Assemblymember Marc Berman. Aligning higher education curriculum with current and future employer needs is critical to ensuring students entering the workforce have the skills and training they need to compete. As Chair of the Assembly Select Committee on the Master Plan for Higher Education in California, Berman is hosting a series of regional meetings with industry, educators and other stakeholders to update the state’s Higher Education Master Plan, originally written in 1960. The Council has committed to work closely with the Select Committee on this important work.  The discussion also covered the region’s transportation and housing challenges and Berman’s focus on advancing autonomous vehicles technology and testing.

Berman comes from Palo Alto and represents the 24th Assembly District which includes Southern San Mateo and northern Santa Clara counties. He serves on several committees that are important the Council’s policy work, including Transportation; Jobs, Economic Development and the Economy; and Privacy and Consumer Protection. He also chairs the Elections and Redistricting Committee. The Government Relations Committee is led by Co-Chairs Andrew Giacomini, Managing Partner, Hanson Bridgett LLP and Peter Brightbill, Senior Vice President, Wells Fargo and Company. To learn more how your company can engage in the Council’s Government Relations advocacy efforts, please contact Policy Manager Cornelious Burke.