To: Sonoma County Board of Supervisors
Department or Agency Name(s): Economic Development
Staff Name and Phone Number: Ethan Brown (707) 565-7170
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Economic Development Board 3.0 - Departmental Vision and Strategy
End
Recommended Action:
Recommended action
Adopt the Economic Development Board 3.0 Action Plan to guide a collaborative model for inclusive local economic development activities
end
Executive Summary:
At the direction of the Board of Supervisors, and with the ad-hoc support of Supervisors Gore and Coursey in leading an economic development ad-hoc, Economic Development department (also known as EDB) staff developed the attached plan for collaborative and inclusive action in addressing persistent community needs that intersect with economic development and a thriving economy. The working title is “EDB 3.0”, which refers to the Department’s evolution from a very small operation to one with robust business support services and staffing to the new collaborative vision outlined in the plan.
EDB 3.0 demonstrates a commitment to work towards an inclusive and resilient economy, including increasing racial equity and reducing disparities. The plan includes partnering with community leaders including those in the public, private, and civic sectors, to develop shared goals and objectives for increasing equity in Sonoma County. EDB will lead the effort towards a more robust and collaborative system for data collection, monitoring, and analysis in order to track progress and inform action. Consistent community engagement and communication among leaders will be imperative to the success of this initiative in the long-run.
This plan sets out initial recommendations and steps for the work. If approved, staff will evaluate resources and create a work plan. If needed, staff will return with a detailed report on assets and needs.
Discussion:
Background
Since its inception in 1957, the Economic Development department (also known as EDB) has primarily focused on business retention, expansion, and formation, with occasional assistance to companies that seek to relocate to the area. Separately, the Sonoma County Economic Development Board “Foundation” was established designed solely to support the Economic Development Board's (EDB department) mission and events. The Foundation began in Fiscal Year 2002-2003. In August 2002 an Operational Memorandum of Understanding was established to formalize the relationship between the Foundation and the Economic Development Board (EDB), as a department of the County of Sonoma. The Foundation board members are appointed by the Board of Supervisors, where each supervisor appoints two people from their district.
In 2011, at the tail end of the Great Recession, the Board of Supervisors allocated resources that allowed the Department to recruit dedicated staff to undertake this programming in a more intentional and focused manner. These services are hallmarks of the typical economic development approach in communities around the nation and reflect the theory that strong businesses will create a strong economy, and therefore, opportunities for the community members.
In the years since, the Department has grown further to include Business Diversity Program services with a focus on BIPOC (Black, Indigenous and People of Color), women-owned, and other businesses that have traditionally lacked access to resources. In addition, a Workforce Services position, funded through a Memorandum of Understanding with the Human Services Department, was added in 2013 to help create employer-driven workforce training programs and to connect local businesses with incentives and funding to underwrite training. Finally, in 2014 and in response to a leadership vacuum in the creative arts community, the EDB formed Creative Sonoma, a division focused on supporting businesses and individuals in the creative industries. Other well-known department functions include a robust research program and a suite of yearly signature events. Since the EDB-produced 2011 Economic Development and Jobs Plan was approved, 6,500 local businesses have accessed programming and assistance offered by the EDB.
Perhaps most importantly, and especially during the COVID-19 pandemic, the Department has served as a “clearinghouse” of resources and information not only to the business community, but also to its partner cities, chambers, and many non-profits countywide. The EDB’s foundation as a regional leader and convener, and its ability to expand the capacity of these vital and trusted community institutions, also positions the Department well as it seeks to create a new collaborative vision for the future.
In 2021, after over a year of engagement in COVID pandemic response, and 10 years after the Board of Supervisors approved the Economic Development and Jobs Plan <https://sonoma-county.granicus.com/MetaViewer.php?view_id=2&clip_id=192&meta_id=73643>, EDB department staff engaged Natelson Dale Associates to conduct a review of the Department’s core services and programs.
The report developed by Natelson Dale (see Attachment 2) included feedback from a broad range of stakeholders in the public and private sectors, including individuals from businesses and non-profits, and from local elected leaders. It highlighted EDB’s demonstrated strengths as a convener, an appetite among stakeholders for more collaborative efforts, and desire for an expanded focus (inclusive of traditional business-focused programming) on education and housing, especially in areas of racial and social equity, and with the acknowledgement that progress in these areas is linked with a vibrant economy. In addition, the report revealed an imperative to better communicate to stakeholders and the broader community about what EDB does, and how to get engaged.
Shortly after the report was developed, the Board of Supervisors formed an Ad-Hoc, led by Supervisors Gore and Coursey, to set a new vision for EDB. This work took place in two phases - the first of which was to take stock, and assess the current structure and focus of the EDB, identify missed opportunities, and assess strengths.
During this phase, the Ad-Hoc acknowledged that the practice of economic development has evolved to focus attention on a broader set of contributors to economic vibrancy. A framework was then created to support cross-sector, multi-jurisdictional partnerships around initiatives that have a clear economic development nexus but have not traditionally been core Departmental foci. The Ad-Hoc Charter is attached to this item (see Attachment 2).
Phase Two - Engagement
In carrying out the framework developed by the Ad-Hoc, staff created a Steering Committee comprised of 15 local leaders who have either worked directly with the department or are currently undertaking work that contributes to economic development. Staff also held a focus group with approximately 50 individuals to gain a holistic “boots on the ground” perspective from local residents and community leaders. To augment this outreach, one-on-one perspectives were gained from individuals who could not participate in the above processes, and a staff retreat was held to gain a firsthand understanding of challenges that surface in the field with respect to the ability for local businesses to thrive in the county.
Findings
Steering Committee and Focus Group participants generally reinforced many of the Department’s strengths as outlined in the Natelson Dale report (see Attachment 1). First among them was the ability to be seen as a neutral convener, with the ability to overcome conflict and support community initiatives. Participants remarked that departmental activities including broadband development, disaster response, and support for the creative arts serve as exemplars, and position the EDB well for broader collaborations around new initiatives.
In addition, robust support was common for, but not limited to the following items:
• Recognition that the primary drivers of an inclusive and resilient economy include education and workforce development, jobs and business development, and housing and community development;
• A model that creates a forum for the individuals, organizations, and community leaders who are actively addressing those issues to share ideas and collaborate on solutions;
• Better integration of the EDB with other County departments and in the work other departments are undertaking; and
• That the Department should retain and refine a focus on business-focused assistance and programming.
Recommendations
EDB 3.0 centers on moving from addition; or the sheer number of groups, individuals and organizations focused on individual initiatives; to multiplication, which acknowledges that progress is only achieved by intentionally connecting interested parties to amplify efforts through a systems approach, which aligns the resources of several organizations and entities behind a common goal. This is also commonly called collective impact. This requires collaborative governance, shared/connected data, more/better communication at the leadership level, coordination, and explicit efforts to resolve conflicts and expand capacity to build and sustain momentum.
Current examples of successful efforts that reflect these attributes, and are focused on separate issues, and also supported by the County include Upstream Investments, Health Action, and the Renewal Enterprise District (RED) and RED Housing Fund.
Recommendation 1 - Sonoma County should connect and support the primary drivers of an inclusive and resilient economy - education and workforce development, jobs and business development, and housing and community development.
• Establish and support a Cross-Sector Collaborative that is co-led by civic, business, and public sector leaders to facilitate cross-sector and multi-jurisdictional connections, shared goals, objectives, and metrics, pursue strategic opportunities, and communicate initiatives to the community.
Recommendation 2 - The Economic Development Board (EDB) should be the backbone organization for the collective impact model.
• EDB would support convening and facilitation, serve as a hub for data and analytics that drive collective action, while supporting projects and communications.
Recommendation 3 - The EDB should strengthen and broaden its business support network into communities.
• Refine and enhance traditional business services, increase community engagement to improve services, and develop/strengthen partnerships to distribute resources, establish new programming and meet the needs of businesses and their workers.
Recommendation 4 - The EDB should elevate economic analysis and business perspective into County policies and projects.
• Provide trusted economic analysis on County policies and plans, elevate the business perspective, and provide insights on policies and proposals that could financially impact businesses, workers and families.
Recommendation 5 - The EDB should coordinate and support teams of cross-sector practitioners who can help resolve conflicts, innovate solutions, and support continuous improvement.
• At the practitioner level, convene public, civic, and business leaders as a Cross-Sector Support Team who can support the goals of an inclusive and resilient economy, and have the ability to coordinate efforts and provide targeted support to resolve conflicts, catalyze innovation, and support continuous improvement.
Next Steps - Short and Long Term
A primary benefit of system-scale approaches is the ability to keep the focus on long-term goals and to coordinate and align near-term projects, activities, and decisions to those goals. Effective system-scale efforts require steward leadership and are sustained by enduring relationships among organizations that provide continuity over time. Developing trust and demonstrating the value of working together are typically required to move up the continuum of engagement from mere communication toward deeper collaboration.
To be effective over the long term, the Cross-Sector Collaborative (Recommendation 1) will need time to develop a shared vision and a plan for aligning initiatives and identifying opportunities to improve impact. The data network to support discussions, analysis and future actions will need to be developed simultaneously. Communications will be prioritized, as will supporting and connecting existing initiatives.
With these considerations in mind and should the Board of Supervisors move forward with the recommendations, the EDB anticipates a development process that involves core partners co-creating organizational structures, strategies and work plans for the entities described in the recommendations.
The Department would align itself to its new mission. The Cross-Sector Collaborative? would define the needed capacities and solicit pilot projects to test, assess and refine how the team can be most valuable to individual initiatives and the overall effort.
A detailed timeline of anticipated goals and milestones can be found on page 26 of the attached report.
Equity Analysis
Staff used the Government Alliance on Race and Equity (GARE) Equity Toolkit to provide a broad analysis (attached). Some data is highlighted within the Action Plan in the “Defining the System” section, and further work in surfacing new data, and developing robust (and shared) data sets is imbedded in “Recommendation 2”.
The community was engaged in the creation of this plan through a Steering Committee that met twice and one two-hour focus group. In total, roughly 70 individuals with diverse backgrounds and lived experiences were intentionally included in the engagement process. Feedback from these individuals supported a focus on the three primary economic drivers included in the plan, with a particular focus on equity and inclusion. Due to the brief timeline under which this process took place, further outreach to businesses, workers and families is proposed on an ongoing basis in “Recommendation 4”.
Strategic Plan:
N/A
Prior Board Actions:
7/12/2022 - 1) Receive update on the Economic Development Board’s (EDB) Mission Ad-Hoc Committee, and proposed next steps, 2) Disband the EDB Mission Ad-Hoc
Fiscal Summary
|
Expenditures |
FY 22-23 Adopted |
FY23-24 Projected |
FY 24-25 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
|
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
Contingencies |
|
|
|
|
Total Sources |
|
|
|
Narrative Explanation of Fiscal Impacts:
N/A
|
Staffing Impacts: |
|
|
|
|
Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Attachment 1: EDB 3.0 Action Plan
Attachment 2: Executive Summary of EDB Program Review (Natelson Dale)
Attachment 3: EDB Mission Ad-Hoc Charter
Attachment 4: EDB 3.0 Equity Analysis
Related Items “On File” with the Clerk of the Board:
None