HomeMy WebLinkAbout8.1 Budget Study Attach 7 g
Tri-Valley Business Council Educational Collaborative Funding Request Review Checklist
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A. Application
1. Date application received*...... ... ... ... ...... ... ... ... ... ... ... ... ... ... ... .
(Completed applications are due by 5:00 p.m. on February 5, 2007)
2. Two copies of the completed application form are submitted... ....
B. Organization Information
1. Name of the organization..................................................... I Tri-Valley Bus Council Educational Collaborative I
2. Is the applicant a nonprofit organization?....................................... I Yes
3. Does the organization has a 501 (c)3 State of California ID#?....... I 94-3227787
4. Does the organization have a current City Business License?..... I No
C. Funding Request
1. Funding amount requested... ... ... '" '" ... ....... ... ... ... ... ... ... ... .....
2. Funding Source (i.e. General Fund, CDBG Fund).....................
1/29/2007
Yes
$25,000
General Fund
D. Project Information
1. Proposed project name.......................................................
2. Project start date...... ...... ... ... ... ... ... ............... ... ...... ......... ...
3. Project complete date.................. ...... ........................ .........
4. Total # of organization clients... ... ... ...... ............ ...... ... ... ........
5. # of Dublin businesses / residents will serve... ... ...... ...... ... ... ....
E. Attachments
1. Name and home address of governing board of the organization..
2. List of current board officers of the organization............ ............
3. Current total organization operating budget, including revenue.....
4. Most recent audit or tax return is submitted..............................
5. Document providing evidence of board/organization approval of
application and date of approval...........................................
6. Organization's certificate of insurance showing coverage of
liability and worker's compensation.......................................
7. Signed affidavit form from each collaborating agency identified
for the proposed project (if applicable)... .. .. .. .. .. .. .. .. .. .. . . .. .. . .. . ..
8. Application verification declaration signature page... ... ... ... ... ... ..
PARill ..a.SII,II~le~ TIOI S(JSlllll.IIRI,~UIREMENTS
Tri-Valley Vision 2010 Project
7/1/2007
6/30/2008
18,000
1,795
No
I
I
I
I
I
J
I
I
Yes
Yes
Yes
Yes
Yes, 01/25/07
Yes
Yes
Yes No
1. Is the application complete?* (Y/N).................................................I X II
If no, which sections are incomplete?..............................................1
2. Did the applicant organization complete a mandatory I II
presentation at City Cou ncil Public Heari ng?' (Y IN). .... .. ... ..... ... . . .
3. Date notification letter of Council Approval of funding & I
mandatory financial reporting packet sent...............................
4. Date summary report is submitted to City*...... ...... ......... ...... .... I
(Report must submit to City by the end of August 2008. Failure to submit a report will result ineligibility for future funding)
* Failure to subl1'h e applicatiOn ine or comply with any of the
requirements wmr~pplication frc> nsideration.
Attachment
g
H:\Budget\COMMGRPS\TVBC Educational Collaborative Funding Request Checlmatedsrinted: 2/23/2007 2:06 PM
v
RECEIVED
. CITY OF OIl!';'; 1M
Jt.Jt....,~J''l!
CITY OF DUBLIN
Fiscal Year 2007-2008
t ^.-I
, Jf,
orr)' MANAGER'S Otfl(..;t.
COMMUNITY GROUP/ORGANIZATION
ApPLICATION FOR FUNDS
COVER PAGE
AGENCY NAME: Tri -Vall ey Bus i ness Council Educational Coll aborat i ve
PROPOSED PROJECT/PROGRAM NAME:
Tri-Valley Vision 2010 Project
FUNDING AMOUNT REQUESTED:
$25,000
SECTION 2
Page 2 of 16
CITY OF DUBLIN
Fiscal Year 2007-2008
ApPLICATION FOR FUNDS
1. Please select one expense category: 0 Capital IX! Operating
2. Applicant Information:
Organization/Agency Name Tri - Vall ey Bus i ness Counc il Educat i ona 1 Coll aborat i ve
Mailing Address
6155 Stoneridge Dr., #260
Street Address
City
Pleasanton
State CA
Zip 94588
Board President (if applicable)
925-227-1824
Work Phone
925-373-4566
Work Phone
tbrink@trivalley.org
Email
kmercer@valleycare.com
Email
Toby Brink
Executive Director/Chairperson
Ken Mercer
Please list the Primary Project Contact Person who would be able to answer questions about this application and
project/program during the funding period.
Toby Brink
President/CEO
Contact Person for ProjectIProgram Job Title
925-227-1824 tbrink@travalley.org
Work Phone Email
866-388-8538
Fax
Nonprofit Identification No. (required)
94-3227787
City of Dublin Business License No. (required)
n/a
SECTION 2
Page 3 of 16
..
....,i
City of Dublin
Fiscal Year 2007-2008
Application for Funds
3. Proposed ProjectlProgram Information (Do not describe Organization.)
Amount of Funds Requested $ 25,000
(Maximum $25,000 per project.)
Proposed ProjectlProgram Name
Preserving Prosperity Project
Proposed ProjectlProgram Date(s): Start 07 / 01 /07 and End 06 /~ ~
mo. day yr.
mo. day yr.
a.
How would the requested funds be used?
· Describe, in detail, the PROPOSED PROJECTIPROGRAM (not the Agency).
· Bulleted text is acceptable.
· Identify if the proposed project/program is a new service, or extension of an
existing one.
An additional page may be added, if needed.
.
These funds will be used to partially cover the development cost of
the Tri-VAlley Innovators Website, one of our Preserving Prosperity
Programs. The pupose of this website is to build an online dynamic
database of the Tri-Valley's innovation firms, promote it to those
doing buiiness or considering doing business in the region, and provide
a virtual marketplace for the Tri-Valley economy.
All innovation companies in the region will have the ability to outline
information about their products, services, and needs on the website.
The website will serve as a "cl eari nghouse" to connect innovators with
potential partners, suppliers, and customers. This is projected to be
a key tool for overall economic growth in the Tri-Valley region.
SECTION 2
Page 4 of 16
c 1'"
City of Dublin
Fiscal Year 2007-2008
Application for Funds
b. How would the PROPOSED PROJECT/PROGRAM address an unmet community
need and improve the quality of life for Dublin residents. Why is this project/program
needed? (Additional page may be added, if needed):
This project will present the opportunity for Dublin businesses to be
included in the website to outline their products;and services for
prospective customers and define their needs in terms of suppliers,
services or business or technical partnerships, for an audience
throughout the Tri-Valley region. Dublin residents or businesses
seeking proQ8cts or services can utilize the we~site to identify prospective ..
suppliers or service providers. Dublin businesses ~eeking technology
licenses or technology or business partnerships will be able to access
this regional database and expand their opportunities.
c. What documentation/data/records support the need for this PROPOSED
PROJECT/PROGRAM? Please identify your data sources. (Additional page may be
added, if needed.)
The need for a regional website to serve as a IIclearinghousell to
virtually connect innovation companies was first identified in the
report IIpreserving Prosperity in the Tri-Valleyll, a study of the
regional economy released in July 2005. As a follow-up to this report
the Tri-Valley Business Council and each City's Economic Dewelopment
Manager conducted a series of Focus Group meetings with regional
entrepreneurs and innovation company executives to obtain their views
of what they need to prosper and grow in the region. The Business'
Council also conducted an online survey to cover those who could not
attend the meetings. A report outlining the results of the meetings
and the survey: liThe Tri-Valley Innovation Network - A Regional
Economic Strategy for Promoting Innovation-Driven Entrepreneurship
in the Tri-Valley Region" was released in October 2006. Both of these studies
SECTION 2
Page 5 of 16
~.
.~
were condJcted by Collaborative Economics,
Copies oflthese reports are attached.
i
I
Mountain View, CA.
City of Dublin
Fiscal Year 2007-2008
Application for Funds
d. Specify the PROPOSED PROJECT/PROGRAM population to be served.
This project is intended to cover the entire business population of
the Tri-Valley and prospective suppliers. The Preserving Prosperity
Report identified 18,000 businesses in the region, wit~ 1,795 of those
businesses located in Dublin
e. Projects/programs must be evaluated to determine if they are being carried out efficiently
and if project/program goals are being met. Please describe how you plan to monitor
your project/program's success and impact.
· An additional page may be added, if needed.
The key evaluation factor will be the number of businesses that slgnHup
for the service. Since the Preserving Prosperity Report identified
18,000 innovation firms in the region, with 1,795 in Dublin, our
expectation is that 9,000 to 10,000 firms will initially use the service.
The program development has not been completed, but it will include
tracking metrics to determine how many people are using the clearinghouse.
f. Specify numbers of clients served by agency, then by PROPOSED
PROJECT/PROGRAM: 18,000 regional innovation businesses could be
served by this project, with 1,795 potential Dublin businesses.
SECTION 2
Page 6 of 16
City of Dublin
Fiscal Year 2007-2008
Application for Funds
5. Financial Information - Operating Budget
a. Expense Budget
FY 2006-2007 THIS PROJECT/
EXPENSE BUDGET ORGANIZATION PROGRAM GRANT REQUEST
Personnel Costs
Employee Salaries & Benefits $50.000 (est) -0- -0-
Non-Personnel Costs
Services & Supplies i $125,000 (est) $65,000 (est) $25,000
Capital Costs -0- -0- -0-
Other (please specify) -0- -0- -0-
Other (please specify)
TOTAL $175,000 (est) $65,000 (est) $25,000
Further Comments/Explanations (if necessary):
SECTION 2
Page 7 of 16
City of Dublin
Fiscal Year 2007-2008
Application for Funds
b. Revenue Budget
FY 2006-2007
REVENUE BUDGET ORGANIZATION PROJECTIPROGRAM
Committed/Restricted Funds
(specify source)
.. -
-
- . . . - .---- .2
-J v _ oJ, Vl
~. VJ ~ . ....11..... II l'U.IIIVII '" -
Non-Committed/Restricted Funds
I (specify source)
Town of Danvi 11 e $25,000
City of Dublin 25.000
City of Livermore 25 000
Citv of Pleasanton ?~ nnn
City of San Ramon 25.000
Alameda & Contra Costa Counties 25 000 each
TOTAL $175.000
Further Comments/Explanations (if necessary):
SECTION 2
Page 8 of 16
.4....t
City of Dublin
Fiscal Year 2007-2008
Application for Funds
6. General Agency Information
a. List all years that Organization has previously received City of Dublin funding (not
Community Development Block Grant - CDBG).
The City of Dublin has provided funding for the Vision 2010 Project
each year since 2000
b. Describe the population(s) served by the Organization.
The Vision 2010 Project addresses and serves all elements of the region,
including:
Community Planning & Housing
Economic Vitality
Education
Agricultural Enhancement & Open Space Preservation
Regional Mobility cont'd ---
c. Describe all the services the Organization currently provides to Dublin residents.
· An additional page may be added, if needed.
The Preserving Pro~perity Project is serving Dublin residents by defining
the current regional eoonomy and the many opportunities for jobs and careers.
The programs for economic growth recommended in the plan should provide
future prosperity and jobs for the region and Dublin residents.
Our community planning and housing advocacy programs provide needed
support to make Dublin such a great place to live. Our Parks and Trails
Subcommittee has outlined a Regional Trails Network. Advocacy by members
of this sub-committee with local and regional officials and agencies for
d. Has your agency ever previously received funds from the City of Dublin? If yes,
please specify in what Fiscal Years and the amount received each year.
Other than the annual Vision 2010 Project contribution, we have not
previously received funds from the City of Dublin.
SECTION 2
Page 9 of 16
f. ,
b.
All of our! committees are open to the public, our forums are open to
the publici. Our reports are available on the Business Council website.
Our view is that we serve the entire regional population. The success
of our programs should benefit the entire regional population.
c~
connectivity of local trail systems to this regional network is providing
many more opportunities for Dublin resident biking, hiking, and horse
riding.
Our Port-t~-Port Coalition is actively working with regional, state
and federal officials to bbtain funding and priorities for key local
and region~l highway and transit projects which will improve regional
mobility fbr Dublin residents and busiensses.
\
+
October 3,2006
A Report of the Preserving Prosperity Project
Tri-Valley Business Council
Prepared by
Collaborative
ECONOMICS
STRATEGIC ADVISORS TO CIVICENTREPRENEtlR:;
}
2
5
15
are
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of Dublin
of
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and
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this have been
Business
Economics.
The data and
core
. An
· A clear
.
· An innovation
. A
. A new
and housing challenges
, An
The Tri-Valley region has become a wellspring for entrepreneurship and innovation-a place where
talented people choose to live in high-quality communities, creating and working in innovative firms that
serve local, regional, and global markets. In the last few years:
· Tri-Valley has produced thousands of small, homegrown companies that are transforming the
region's economic landscape-and accounting for a greater and greater share of regional
prosperity.
· The growth in small-firm entrepreneurship and innovation has fueled growth and transformation
of the region's industry specializations.
· Every city is participating in the transformation of the Tri-Valley economy-and are, in fact,
interdependent parts of a truly regional economy.
2. A Need
· There is a clear message from more than 100 companies who have been consulted by the
Preserving Prosperity Project: Tri-Valley's innovative, entrepreneurial companies are growing,
export-oriented firms, most of whom want more regional opportunities to connect with
potential partners, vendors, and customers.
· To help them grow, a substantial number of these firms want better access to talent and
business services companies that offer products and services at an affordable cost.
· Many are also concerned with infrastructure issues-namely transportation and housing-along
with quality of life, and how those aspects of the Tri-Valley region might impact their future
growth.
2
· Some are looking for research partnering opportunities, assistance from local government, or
sources of cost-effective employee benefits.
· Talent clearly drives these companies-and the ability to find highly-educated, highly-skilled
individuals in the regional labor pool will determine their long-term success in the Tri-Valley.
Infrastructure and quality of life, as well as the quality of local education and training, will help
determine the availability of talent in the years to come.
· Overall, these innovative, entrepreneurial companies find the Tri-Valley a good location for the
work that they do-and envision growing in the future if the region remains a hospitable,
supportive place.
· However, other regions are vying for talented people and innovative, entrepreneurial
companies. They are realizing that these are the key drivers of prosperity in today's economy.
While Tri-Valley certainly has the ingredients to continue to be one of America's "hot spots" for
innovation and entrepreneurship, its future is by no means assured.
· Regions as varied as Philadelphia, San Diego, Miami, and Fresno are stepping forward to put
substantial leadership and resources into the brand marketing and targeted support to attract,
retain, and grow talent, innovation, and entrepreneurship. It will be up to Tri-Valley if it wants
to compete with these regions in the years ahead. If the region chooses to compete, it must act
now as other regions are rapidly moving forward.
The A
· Considering the unmistakable trend towards innovation and entrepreneurship in the region, the
clear message from the firms themselves about their needs, and the growing competition from
other regions, there is a strong rationale for the Tri-Valley to adopt a new economic strategy.
· This strategy should have two primary elements: an innovation network and regional
branding/marketing campaign. These priorities are in response to the feedback from the more
than 100 companies consulted since 2005 by the Preserving Prosperity Project:
· It is clear that a strong majority of firms want more opportunities to find and interact with other
companies who could be potential partners, vendors, or customers. The creation of an
Innovation Network will provide the focal point and infrastructure to address this high-priority
need.
· It is also very clear that there is little "brand identity" either in the Tri-Valley or outside the
region. People generally view the region as something it once was (i.e., primarily a bedroom
community or back-office economy or home to branches of large technology companies) rather
than what it has become (i.e., a growing hub of smaller, innovative, entrepreneurial companies).
It will be very difficult to compete if Tri-Valley's identity is unclear or unrecognized. The
Regional Branding/Marketing Campaign will directly address this need.
3
· It is also important to note that ongoing efforts to maintain a high quality of life, solve
transportation bottlenecks, and expand housing choices should be a priority. Clearly, many of
the firms consulted by the Preserving Prosperity Project expressed concern about one or more
of these inter-related issues. In fact, the importance of attracting, retaining, and growing these
innovative, entrepreneurial firms-and the talent that drive them-should provide additional
urgency to current efforts to address quality of life, transportation, and housing issues. As we
heard, it would be very easy for these flexible companies-and the talent that drive them-to
relocate if these issues are not addressed.
4
I.
The Q and innovation-a place where talented
people choose to live in high-quality communities, creating and working in innovative firms that serve
local, regional, and global markets. In recent years, Tri-Valley has become a wellspring for thousands of
small, homegrown companies that are transforming the region's economic landscape--and accounting
for a greater and greater share of regional prosperity. This chapter summarizes the results of the 2005
Preserving Prosperity report entitled Wellspring for EntrepreneurshiP and Innovation.
The region has entered a new phase in its economic evolution:
Tri-Valley's Economic Evolution
- Up to the 1980s
- 1990
- 21st century
- Defense, agriculture,
back-office processing
- Emerging strengths in
software. communications.
wine. miscellaneous devices
and materials
- Strong specializations in
information technology. scientific
and biomedical products and
services, innovation services,
business operations
- A few lal"ze employers
- Large physical developrm;!nts
(housing and commercial)
- Large employers, along with
growing number of smaller
firms
- High rates of business creation.
diverse base of homegrown
headquarters
- Gr-owing development pressures,
transportation bottlenecks, labor
shortages
-Innovation-driven economy
needs supportive "habitat"
Talent
Resources to start firms
High quality of life to attract
and retain talent
- Little regional identity or
cooperation
- Region begins to collaborate to
add,"ess key challenges
- Region's new economic role requires
new responsibilities - a new level of
collaooration
Evidence of Tri-Valley's changing economic landscape abounds. Key shifts that have taken place include:
· rate has the national average more than a
reaching a new high in 2003. The region has gone from a business creation rate below the
national average in the early 1 990s to one well-above the national average by 2003. The
number of business establishments per resident has boomed-from about 3 per 1,000 residents
5
in 1990 to more than 10 by 2002. In all, more than 18,000 companies have been created in the
T ri- Valley since 1990.
Figure I-I: Rate of Firm Creation
0.16
e 0.14
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....
Q 0.12
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=
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....
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.. 0.06
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ii:
.... 0.04
Q
~
~
..
...
'" 0.02
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
-Tn-Valley
~us Average Rate
Source: U.S. Census, NETS database
Figure 1-2: Firm Creation per Capita
10
12
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ii:
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Source: U.S. Census, NETS database
6
· is now Q
many created in the About 86% of firms operating in the Tri-
Valley in 2003 were started in the region, with only a small percentage the result of relocations.
About half of all firms in the region have started-up just since 1997.
· are most source the Since
1990, new firms have added on average about 41 % more jobs each year to the regional
economy than existing firms, and about 420% more jobs than firms relocating or expanding into
the region. By 2003, only about 6.5% of Tri-Valley workers were employed by firms that had
moved into the region.
FIGURE 1-3: BUSINESS "CHURN" IN THE REGION
rdocared
Source: Natiom:r! Estabishme!t'rr Time 5p-ries Databa&e
7
. now account more economic revenue ',~!'Jan any other source. The share
of regional economic revenue generated by homegrown firms rose about 20% between 1990
and 2003, and now accounts for about 60% of total economic revenue generated in the region.
. The very has almost in the decade. The number of firms
generating at least $500,000 per year in revenues, and whose revenues continue to grow by at
least 20% for four consecutive years, grew from about 40 firms in 1994 to more than 110 in
2003.
. u in grown By
2003, these firms were 80% of total firms, compared to 75% in 1990. By 2003, they were
generating 35% of the region's economic revenues-well above their 26% contribution in 1990.
FIGURE 1-4: Tri-Valley Firms by Size
1990
0%
Source: NETS database
2003
1%
[J 5 or fewer
II 6 to 25
[J 26 to 100
[J Greater than 100
8
FIGURE 1-5: Contributions to the Regional Economy 2003
SHARE SHARE
SIZE OF SHARE OF E~OYME i~VEN
FIRM FIRMS
5 or fewer 80% 22% 35%
6 to 25 15% 22% 23%
26 to I 00 4% 23% 18%
Greater than 100 1% 33% 24%
Source: NETS database
· small are also the Between 1990 and 2003, firms with
five or fewer employees experienced a more than 40% increase in revenues per employee, an
indicator of productivity growth, while larger firms experienced declines. Very small firms now
rank second only behind very large firms over 100 employees in level of revenue per employee,
and well ahead of all other firms.
FIGURE 1-6: Revenue per Employee by Firm Size (adjusted for inflatio
ESTABLISHMENT 1990 2003
SIZE
5 or fewer $153,667 $218,532
6 to 25 $187,001 $156,820
26 to I 00 $148,298 $128,456
Greater than 100 $491,483 $422,440
Source: NETS database
· I or more lost since smaller
As a group, Tri-Valley's largest firms lost jobs every year but two since 1991.
As a group, Tri-Valley firms under 100 employees gained jobs every year but one during the
same period.
9
Figure 1-7 Net Employment Change Within Existing Companies
6000
4000
2000
'"
<II
<II
,.,
0 1995 1996 1997 1998
-a
5
<II
... -2000
0
..
<II
.Q
5
= -4000
i!':
-6000
-8000
-10000
..... Com anies with more than 100 em 10 ees
~ Companies with 100 em Ioyees or fewer
Source: NETS database
10
Every city is participating in the transformation of the Tri-Valley economy-and are, in fact,
interdependent parts of a truly regional economy.
· across the one or two locations. Twenty-nine
percent of the region's firms are based in Pleasanton, 25% in Livermore, 21 % in Danville, 20% in
San Ramon, and 10% in Dublin.
FIGURE 1-8: Distribution of Firms Across Tri-Valley Cities
All Establishments in Firm Starts per 1,000
New Starts in 2003
2003 Residents in 2003
Danville 19% (3,380 firms) 26% (702 firms) 16.3
Dublin 10% (1,795 firms) 10% (268 firms) 7.8
Livermore 23% (4,160 firms) 18% (474 firms) 6.2
Pleasanton 29% (5,244 firms) 26% (694 firms) 10.5
San Ramon 19% (3,430 firms) 20% (541 firms) 11.6
Source: NETS database
The growth in small-firm entrepreneurship and innovation has fueled growth and transformation of the
region's industry specializations.
II
Figure 1-9 Evolving Specializations (1994-2004)
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INFORMA TION
TECHNOLOGY, 12,254
INNOVATION SERVICES,
22,160
BUSINESS OPERA nONS,
17,662
} 0/0
2%)
3%)
4%
50/0
60'
10
7%)
8%
AAGR 94,()4
I 0 BIOMEDICAL HEALTH @l BUSINESS OPERATIONS 0 INFORMA TION TECHNOLOGY 0 INNOVATION SERVICES I
Source: California Employment Development Department (EDD)
. The is innovation services-a concentration of firms that typically
help other firms bring innovation to their products and processes that now employs about 13%
ofthe region's workforce and is 2Y2 times more concentrated than the state average.
Figure 1-10: Innovation Services
Growth: 53% (1994-2004)
Employment: 22,/60 (2004
12
· The now having
grown 80% between 1994 and 2004. This specialization is only at 81 % of the state average, but
has been gaining ground quickly: its concentration has increased 30% compared to the state
average over the last decade.
Figure I-II: Scientific/Biomedical Products and Services
Growth: 80% (1994-2004)
Employment: 11,/66 (2004)
(2)
Research and Development
· and concentration is operatIOns-firms that provide basic functional
services such as finance, insurance, legal, and other administrative support to other businesses.
This is an area that has grown as larger companies outsource and smaller companies buy
services rather than add employees.
· still has a concentration including
software and communications technology, but one that has been restructuring and losing employment
since the global downturn in technology sectors. Nonetheless, this sector remains an important part
of the regional economy and highly concentrated in the Tri-Valley, at about four times the state
average.
· are economy. These four specializations account
for almost 40% of the region's employment base, and produce jobs and revenues in other
sectors such as retail, construction, and the like.
· are shored among local than concentrated in one
or two cities. Between 1990 and 2002, no Tri-Valley city secured less than 6% nor higher than
34% of the region's new businesses in innovation services, scientific and biomedical products and
services, business operations, and information technology products.
Tri-Valley's economic transformation has coincided with major shifts in the region's occupational
structure and the resident talent pool.
· There has been a to Between 1990 and 2000
Census, the share of the Tri-Valley workforce employed in managerial and professional
occupations rose anywhere from 22% to 332% depending on the category, while the share
employed in sales and administrative support jobs dropped about 15%.
13
. There been Q to a more Between the 1990 and 2000 Census,
the proportion of Tri-Yalley residents with a bachelors degree or more education rose from
36% to 44%. Tri-Yalley's population is far more educated than California (27% with bachelors
degrees or higher) or the nation as whole (24%).
The is to sustain and success. The ingredients for success are not a given;
they can erode over time. Talented people can leave, or stop coming. Quality of life can decline.
Businesses can decide to locate elsewhere. Going forward, the region will have to ensure that the
necessary talent, entrepreneurial business support, and quality of life are in place to sustain the region's
innovation-based economy-and remain competitive with other regions that are working hard to do the
same.
This new raises the stakes the and other A new level
of regional responsibility is required to sustain the economic gains of the past decade. The challenge is
beyond the scope of any individual organization, jurisdiction, or sector; it requires a truly regional,
collaborative approach to focus on a talent pool, a quality of life, and an environment for entrepreneurial
support that extends across local boundaries.
A new level to a 01' more
it means a new among existing
government leaders (including local economic development directors), private sector leaders (including
the Tri-Yalley Business Council), and other community leaders (including education)-with all parties
focused on the talent, entrepreneurial business support, and quality of life necessary to sustain the
region's innovation-based economy.
14
Since 2005, the Preserving Prosperity Project has consulted more than 100 innovative, entrepreneurial
companies to understand their history, future growth expectations, and current needs. Executives from
more than 80 companies have participated in 16 focus groups. Most recently, two focus groups were
held in each of the five Tri-Valley cities in cooperation with city economic development director and
local chamber of commerce. Two additional focus groups were held in cooperation with the Hacienda
Business Park. In 2005, in preparing the Wellspring for Entrepreneurship and Innovation report, four
regional focus groups were held focusing on innovation services, biomedical and scientific products and
services, information technology, and business operations firms.
In addition, almost 40 companies completed an on-line survey about their history, future growth
expectations, and current needs. Some firms participated in both the survey and focus groups. Finally,
Tri-Valley Business Council staff have met individually with dozens of companies since 2005, asking about
their needs as well.
What emerged from this outreach effort was a clear message about how the region could be most
responsive to their needs.
to grow al1d seNe outside markets
Over half of these firms (56%) expect to grow by more than 50% of total revenues over the next five
years. Almost half (48%) also expect to grow their workforce by 50% or more during this period. A
total of 58% of these firms serve domestic or global customers beyond the Tri-Valley region.
al1d
of
are the most
factor'S ill
a compal1Y the Tl"i-
The most important reasons are talent and quality of life. A total of 82% of survey respondents said
quality of life, and 79% said availability of a talented workforce were important or very important factors
in starting a business in the region (Figure II-I). A total of 71 % said that good roads and public transit
were important or very important. Other key factors were the ability to live in the Tri-Valley and
affordable facility services-in both cases, 57% said that factor was important or very important.
15
FIGURE II-I: Most Important Factors in Starting a Company in the Tri-Valley Region
IMPORT ANT SOMEWHAT VERY
R~ IMPORTANT I MPORTAN l/.-IjIC5~1-ANCE
~
Quality of life 82% 13% 6%
Availability of talented workforce 79% 8% 13%
Good roads & public transit 71% 26% 3%
Ability to live in Tri-Valley 57% 23% 20%
Affordable facility services 57% 27% 16%
Quality educational resources 44% 28% 27%
Availability of support services (suppliers, 44% 34% 21%
legal services, CPAs)
Efficient government services (licenses, 36% 37% 26%
permits)
Availability of start-up funding 34% 24% 42%
Presence of similar companies in area 25% 18% 56%
Source: 2006 Tri-Valley Online Survey
real estate is the most
when
up a company in the
The most commonly mentioned obstacle was expensive residential real estate (45%) (Figure 11-2).
About one-third of respondents identified recruiting qualified people (34%), transportation to or within
the Tri-Valley (32%), and expensive commercial real estate (32%). About one-quarter (24%) cited the
difficulty in obtaining funding. Government regulations and services were citied by only II %--and 21 %
said they had no major obstacles.
16
FIGURE 11-2: Biggest Obstacles to Starting a Business in the Tri-Valley Region
Expensive residential real estate
45%
Recruiting qualified people
34%
Transportation to or within the Tri-Valley
32%
Expensive commercial real estate
32%
Obtaining funding
24%
No major obstacles
21%
Government regulations and services
11%
Lack of business support services
5%
Source: 2006 Tri-Valley Online Survey
resources to
and se,'vkes
grow are
A total of 42% indicated that business support firms were important or very important to their
company's future success (Figure 11-3). Almost three-quarters (74%) agreed that business support firms
were at least somewhat important to their company's future success. Local government was considered
to be important or very important to the future success of 29% of the firms; 63% agreed that local
government as at least somewhat important to their firm's future success. Other institutions such as
business and trade associations (61 %), non-profit institutions (47%), and other companies serving similar
customers (37%) were deemed at least somewhat important to their firm's future success.
FIGURE 11-3: Most Important Regional Resources in Helping Companies Grow
VERY SOMEWHAT VERY LITTLE
IMPORTANT IMPORTANT IMPORTANCE
Business support firms 42% 32% 27%
Local government agencies 29% 34% 37%
Business and Trade Associations 23% 38% 39%
Non-profit organizations 21% 26% 49%
Other companies serving similar customers 13% 24% 63%
Source: 2006 Tri-Valley Online Survey
17
There are several
are
to
these
Most companies agreed that access to a talented workforce (82%) and quality of life (71 %) were
essential to their future success (Figure 11-4). Many agreed that cost-effective employee benefits (63%)
and opportunities to interact with business service firms were critical. However, during the focus
groups, participants emphasized that they want to interact with business service firms only under
controlled circumstances-and did not want to be deluged with offers of products and services that do
not meet their needs. About half of the respondents (53%) said that opportunities to meet with other
companies in their industry were essential to future success.
Half of the respondents (50%) also felt that affordable housing for employees was important to their
future success. At least one-third or more also felt that continuing education opportunities (42%),
research partnership opportunities in general (42%), local government assistance (39%), partnerships
with Sandia and Lawrence Livermore National Laboratories (37%), and assistance with regulatory
requirements (32%) were important to the future of their firm.
FIGURE 11-4: Ingredients Most Important to Company's Future Success
Access to talented workforce 82%
Quality of life 71%
Sources of cost effective employee benefits 63%
Opportunities to interact with business service firms 61%
Opportunities to meet other companies in your industry 53%
Affordable housing for employees 50%
Research partnership opportunities in general 42%
Continuing education opportunities 42%
Local government assistance 39%
Partnerships with Sandia & Lawrence Livermore National 37%
Labs
Assistance with regional regulatory requirements 32%
Source: 2006 Tri-Valley Online Survey
When
more
about what them one dear
to connect with other local
18
Focus group participants were asked to rank the top priorities among a list of critical ingredients for
business success-and one priority emerged well ahead of the others (Figure 11-5). "Opportunities to
meet other local companies in your industry (such as potential partners, customers, networking events)"
was chosen as the first priority by one-third of all focus group participants (33%). This total was twice
that of the next highest priority-access to a talented workforce, which was chosen as a top priority by
16% of the participants.
Moreover, this priority was the top choice in every Tri-Valley city (note: in Livermore it was tied for
the top choice).
In addition, a total of 55% thought that opportunities to meet other local companies should be either
the first or second priority. No more than 28% chose any other item as a first or second priority.
Another 18% of focus group participants thought that opportunities to meet other local companies
should be the third or four priorities for action. Thus, about three-quarters of firms (73%) felt that
opportunities to meet with other local companies should be among the top four priorities for regional
action.
did
well ahead any others:
A second tier of priorities did emerge (Figure 11-5). About four in ten focus group participants felt that
access to talented workforce (48%), opportunities to interact with business service firms (such as legal,
financial, insurance, human resource firms) (46%), and improved infrastructure (such as facilities,
transportation, and housing) (40%) should be among the top four priorities for regional action. Only 10-
32% of respondents chose any other item as one of the top four priorities.
FIGURE 11-5: Top Regional Priorities for Supporting Innovative, Entrepreneurial Firms
19
TOTAL PERCENTAGES
PRIORITY
FIRST PRIORITY
SECOND
PRIORITY
THIRD
PRIORITY
FOURTH
PRIORITY
Opportunities to meet other local companies in your industry (such as
potential partners. customers, networking events)
73%
33%
22%
8"-'
10%
Access to a talented workforce
48%
33%
22%
8%
10%
Opportunities to interact with business service firms (such as legal,
financial. insurance. human resources firms)
46%
6%
18%
14%
8%
Improved infrastructure (such as facilities, transportation. housing)
40%
6%
18%
14%
8%
Research partnership opportunities in general
32%
33%
22%
8%
10%
Quality of life (such as parks. open space, entertainment, downtowns)
28%
6%
10%
4%
6%
Assistance from local governments (such as finding space, permits)
26%
33%
22%
8%
100-'
Housing for employees 20% 4% 18% 6% 4%
Partnership opportunities with Sandia and Lawrence Livermore 18% 4% 2% 6% 6%
Laboratories
Sources of cost-effective employee benefits 18% 2% 4% 2% 10%
Assistance with regulatory requirements (such as permit processes)
14%
4%
0%
2%
8%
Opportunities for continuing education
10%
0%
4%
2%
4%
Source: 2006 Tri-Valley Focus Groups
The dear message from the focus group and survey results: Tri-Valley's innovative, entrepreneurial
companies are growing, export-oriented firms, most of whom want more regional opportunities to
connect with potential partners, vendors, and customers. A substantial number want better access to
talent and business services companies that can help them grow. Many are also concerned with
infrastructure issues, namely transportation and housing, as well as quality of life, and how those aspects
of the Tri-Valley region might impact their future growth. Some are looking for research partnering
opportunities, assistance from local government, or sources of cost-effective employee benefits.
20
Overall, these companies find the Tri-Valley a good location for the innovative work that they do-and
envision growing in the future if the region remains a hospitable, supportive place. At the same time, as
the next chapter will show, other regions are vying for these innovative, entrepreneurial companies-
and the talent that drive them-with a creative mix of support and "brand" marketing. It will be up to
Tri-Valley if it wants to compete with these regions in the years ahead.
m. are
In to
about
to
and
What we found was growing competition for innovative, entrepreneurial firms nationwide. Regions of
all kinds are actively competing for these firms-and the talented individuals who drive them. Research
funded by the U.S. Economic Development Administration has found that this is truly a national trend:
that
are
and smaller areas like
innovation and
IS CENTRAL TO
The key to prosperity is increasing productivity. Productivity growth is the basis for rising real wages
for workers, increasing returns to shareholders, and increasing per capita income for a region and the
nation. The basis for increasing productivity is innovation. In the long term, an advanced economy like
that of the United States cannot compete by just lowering costs or increasing inputs. The only way to
compete and raise our standard of living is to find new and better ways to use natural, human, and
capital resources to increase productivity.
21
What is innovation? Literally, it is the act of making changes. It involves introducing new ideas and new
ways of doing things. Peter Drucker defined innovation as follows:
of the
search
the
that
Innovation can lead to a series of incremental improvements, and it can also lead to radical change.
Drucker maintained that innovation and entrepreneurship go together. Entrepreneurs innovate, and
innovation is the specific instrument of entrepreneurship. "The entrepreneur always searches for
change, responds to it and exploits it as an opportunity." Economist Joseph Schumpeter, like Drucker,
saw innovation and entrepreneurship as the engines of change in the economy. Moreover, he spoke of
the process of "creative destruction" as entrepreneurship and innovation gradually (or quickly) replace
less competitive economic activity.
More recently, Stanford economist Paul Romer has proposed a "new growth theory" that provides a
way to understand the central role of innovation in advanced economies. In new growth theory, ideas
are the primary catalyst for economic growth. New ideas generate growth by reorganizing physical
goods in more efficient and productive ways. For Romer, the ingredients (natural, human, capital
resources) are not as important as the recipes (the ideas about how to put the ingredients together).
The recipes are the product of the innovation process.
The McKinsey Global Institute has confirmed the importance of innovation in a series of industry
reports over the past decade, summarized in the book the Power of Produaivity (University of Chicago,
2004) by former Global Institute Director, William M. Lewis. Based on studies of nine major industries,
this research found that:
.
Productivity growth measured by GDP per capita is key to prosperity
.
Economic growth was essential to regional success and at the core of productivity
.
Economic growth was the product of continuous innovation in the face of competition by
organizing work in more effective ways.
In fact, their studies found that how work is organized was even more important than technology in
explaining productivity gains as seen by the success of lean production methods of Toyota in auto
manufacturing.
In fact, as Harvard economist, Elhanan Helpman notes in his book, The Mystery of Economic Growth,
recent "new growth" economics research has shown that capital accumulation (including more capital
equipment and higher levels of education) is not the principal factor driving growth. Helpman cites
compelling evidence that innovation (organizing equipment and workers in new ways and using new
technologies) is a major driver of productivity, which in turn explains significant cross-country variations
in per capita income. He cites that differences in productivity accounts for 90% of the variation in cross-
country differences in the growth rate of income per worker.
IN
22
Innovation the to economic success: regions must now compete on the basis of increasing
productivity not simply costs. While each region has a different set of industries and must compete
globally in its own way, every region and industry needs to become more innovative based on increasing
productivity. This is true for agriculture and manufacturing as well as professional services, tourism and
entertainment and health care as well as so called "high tech" industries such as information and
biotechnology. In fact, there is no such thing as a "high tech or low tech" industry anymore only
innovative and non-innovative. To achieve economic success, regions must understand the evolving
nature of innovation and its role in regional economies.
It is
Innovation can originate from anywhere. In the old economy, hierarchy ruled and R&D departments
were responsible for generating a predictable flow of new improvements. In today's innovation
economy, anyone with a good idea can potentially become innovation leaders. This new reality creates
a positive sum opportunity, where everyone can benefit from participating in innovation networks. Not
only can anyone become an innovator, but the commercialization process has also become more
universal. Anyone can access global markets and supply chains thanks to technological advances in
telecommunications and transportation.
The type of knowledge useful in the innovative economy is no longer solely based on formal training and
knowledge. Tacit knowledge based on personal experience is as valuable for innovation as theoretical
or "explicit" knowledge. Theoretical or explicit knowledge establishes a base of information for
innovators. It is, however, the know-how gained through personal experience and learning by doing
that leads to innovation. This also makes innovation more universal because innovation does not solely
rest in the hands of the educated or formally trained.
It is
Innovation does not occur in a straight line, chain link fashion from research lab to development to
commercialization. As British historian James Burke points out:
eme!"ge is
are woven
and-
In the traditional economy, ideas were held tightly within institutions; in the innovation economy, ideas
flow more freely within networks. The unit of innovation has become the network, not simply the firm.
To stay abreast of change and speed up the commercialization process, the walls that once separated
public and private institutions, education and business, large and small firms are coming down.
The new hybrid model, sometimes called "co-opetition," means that individuals and companies can
compete ferociously, but collaborate at the same time to create knowledge. Through a wide variety of
formal and informal relationships, networks organize the sharing and distribution of knowledge.
It is Based
The networks at the heart of the new innovation model function most effectively when their
components are clustered geographically in a region. Geographic clustering of people, companies, and
institutions is a powerful mechanism for transferring and augmenting personal knowledge quickly.
23
Sharing knowledge, skills, and experience is simply easier when the components of the learning network
are in the same place.
The most innovative work occurs primarily in face-to-face exchange within teams where people work in
close proximity to each other. Although electronic communication is important, it is not a substitute
for the trust, sharing, and intense interpersonal interaction essential for the innovation process. For this
reason, the creative heart and soul of the economy (where the action is) will continue to be tied to
place. Ultimately, place matters because people matter. Talented and creative people want to be where
the action is, where their ideas stand the best chance of coming to fruition.
It is
Technology advances are diffusing at ever-increasing rates. It took 55 years for the automobile to
spread to a quarter of the country, 35 years for the telephone, 22 years for the radio, 16 years for the
personal computer, 13 years for the cell phone, and only seven years for the internet (Measuring
Regional Innovation, Council on Competitiveness).
THE
~~~.NO"~,?' ~ Tf'\fE
ES
Research and experience have shown that not only assets like talent, capital, and physical infrastructure,
but regional networks, culture, and community quality of life are critical cornerstones for regional
innovation (see figure below). To promote an innovative economy, regions must attend not only to the
assets, but the networks and culture of innovation that translates assets into economic benefits. And,
they must ensure that the community quality of life is attractive and stimulating to the people who drive
innovation. If each of the cornerstones are appropriately developed and leveraged, they can produce
economic growth and diversification, wealth generation and overall regional prosperity.
/"
,/{-
,'::/'<,S-:--
REG I ONA LST/EW A Rib g'HI p)j
" .... ',.' . .' ., . ..' /. . . ,'-
!
24
Assets: Assets are critical building blocks for regional innovation. Traditional assets, such as access to
raw materials or low cost labor are no longer sufficient to achieve competitiveness in today's knowledge
driven economy. Assets meaningful in the innovation economy can include R&D/Technology (e.g.,
universities, research institutes), talented people, financial capital, industry clusters, and physical
i nfrastructu reo
Regions may have different amounts of assets, but every region has basic innovation economy assets or
the ability to identify and cultivate them. These assets are developed in many diverse parts of a region,
including university classrooms, venture capital offices, community colleges, boardrooms, fledgling
startup companies as well as individual families and their aspirations.
Innovation economy assets are turned into results when a dynamic environment for innovation and
entrepreneurship is in place. This technological dynamism includes new product and services
development, technology commercialization or adoption, new business formation as well as business
closures, and productivity growth.
Assets are leveraged through personal and institutional networks. Networks are a complex
web of tight relationships among people who know how to translate ideas into new product and
services fast enough to stay on the innovation curve. These complex networks continually connect
people with good ideas and test the changing market, always searching for the next innovation.
Well-established networks that spark creativity and facilitate knowledge sharing are often the
performance difference between regions. In her path breaking research comparing Silicon Valley and
Boston's Route 128, Regional Advantage, AnnaLee Saxenian found that the performance difference
between two technology regions was the "network model" in Silicon Valley that connected companies
and sped up the innovation process. Route 128 had similar assets but different results because it failed
to collaborate and build open networks for information sharing.
The attitudes, beliefs and mind-set that supports an environment for innovation and
entrepreneurship. This cornerstone, like networks, is intangible and often overlooked in economic
development strategies. A culture of innovation that encourages creativity and risk taking is essential for
the development of new business models, creative partnerships, and breakthrough technologies. An
innovative culture is inclusive and accepting of new ideas from untraditional sources. It is not confined
to anyone particular industry and extends beyond the market place to being open to new ways of
examining and approaching community development and environmental issues. An important attribute
of a culture of innovation is that it views failure as a lesson in how to succeed and encourages
reinvention when necessary.
Like assets and networks, culture can also be influenced and changed over time, even in regions not
considered entrepreneurial hubs. San Diego and Austin, for example, were not always centers of
entrepreneurship and innovation. San Diego was a military town and Austin a university town until
about the 1 980s, when both actively encouraged the emergence of a new culture that embraced
innovation and entrepreneurship in new industries.
Innovative economies are driven by people and people flourish when they are
part of vibrant, healthy and creative communities. Regions must have a strong quality of life to recruit
and retain talented people, who are instrumental in growing technology and attracting capital. Many
25
regions are recognizing that to sustain success, quality of life problems, such as schools, environmental
preservation, and transportation need to be made a priority.
26
Regional leaders can bring attention to the cornerstones for regional innovation. They can help connect
assets, networks, culture and community quality of life. Innovative economies do not just happen by
accident, they are shaped by leaders who are not afraid to take bold action and cross boundaries to
create opportunities for their regions. Stewards build, connect, and leverage social networks to help
facilitate the innovation process. Specifically, they can help:
· economic assets-Regional leaders help take care of the basics, creating the
education, research, and financial platforms necessary for success. They make and leverage
investments in institutions like universities and find new sources of capital for innovative
companies.
· to assets-Regional leaders ensure that public and
private assets are leveraged for commercial benefit. They often expand connections
through new intermediary mechanisms.
· a culture of innovation-Regional leaders know that the intangibles can be as
important as the concrete assets and intermediary mechanisms. How accepting and
conversant a region is towards innovation is critical. Leaders can support the culture of
innovation by calling attention to people and companies that are leading innovators, and
defining, measuring, and communicating the nature of regional innovation-actions which
create a more supportive regional climate for building and leveraging innovation assets,
including quality of life.
. Make an innovation osset'-Regionalleaders understand that the environment in
which people live and work is important to creative social interactions and the innovation
process. They are active in expanding amenities like vital downtown centers and addressing
quality of life problems, such as schools, environmental preservation, and transportation.
Regional leaders in many regions are strengthening innovative economies by building assets, connecting
assets through networks, promoting a culture of innovation and making quality of life an innovation
asset. This section recounts the examples of regions that have effectively made the innovative economy
a regional priority through foresight, innovation and collaboration. What the regions described in this
section have in common is a commitment to work together towards becoming globally competitive and
well-positioned for long-term prosperity. They also share a common understanding that sustaining
competitiveness requires continuous reassessment, re-evaluation and sometimes reinvention.
27
and
and
Throughout much of the century, San Diego, California was known as a tourist-oriented Navy town
with a defense technology base--not as a wellspring of innovation. But in the early I 960s, visionary
regional leaders worked diligently to build on an existing asset, the well-respected Scripps Institute for
Oceanography, an effort which culminated in the creation of the University of California at San Diego
(UCSD) in 1965.
Over the next three decades, UCSD grew to become one of the leading research universities in the UC
system and one of the top research universities in the country. It became one of the leading catalysts in
helping create a regional technology economy. In a relatively short period of time, San Diego has
become one of the nation's innovation hot spots, generating excellence in defense (1970s), health
(1980s), and telecommunications ( I 990s). Today, the region is known as being a leader in biotechnology
and telecommunications.
What brought about such a transformation? A series of catalytic actions strengthened the cornerstones
of regional innovation. Under the leadership of Chancellor Richard Atkinson, an innovative networking
model was created, UC Connect, to connect entrepreneurs to university researchers and business
service professionals. Today, industry networks BioComm and the Telecom Council connect
entrepreneurs and firms in ongoing networks to work on practical workforce and marketing
opportunities as well as big-picture policy issues.
Anther important catalytic event that transformed the San Diego region was the creation of The
Partnership for the New Century to promote a cluster-based economic strategy. Out of this process
emerged a breakthrough initiative that led to the creation of a new School of Management at UCSD to
promote entrepreneurship in its science and technology clusters. The creation of these innovative
economy assets were in response to the defense downturn and have since paved the way for regional
prosperity. Between 1990 and 2005, employment in San Diego's science and technology clusters grew
by 25%.
A new strategic planning framework, a Regional Comprehensive Plan (RCP), was also introduced,
creating a regional vision and providing a broad context in which local and regional decisions can be
made that foster a healthy environment, a vibrant economy, and a high quality of life for all residents.
The region assesses its progress along the multiple dimensions of competitiveness through its Indicators
of Sustainable Competitiveness Report.
to an
28
Entrepreneurial I-Stop Directory
When you click on one of the buttons below, you'll find links to
organizations that can help you start, finance, and grow your business.
http://www.greaterlouisville.com/contentlcommunity/I stop
In the early 1 980s, Louisville had been in the midst of a "smokestack" recession. For decades the area's
economy had grown by attracting manufacturing branch plants with plentiful low-cost, hard working
labor. Companies like General Electric and Ford built large facilities. By 1974, manufacturing provided
the region with 124,000 jobs and 36 percent of work earnings. However, the combination of back-to-
back recessions and Asian competition resulted in a severe decline in local manufacturing activity. By
1983, the number of manufacturing jobs had dropped to 86,000 and the total number of jobs in the
region had fallen by five percent.
In response to this crisis, the Louisville Chamber of Commerce and later the Greater Louisville
Partnership sought to diversify the region's economy to include two new activities that fit its
competitive strengths-air freight and back office/call center operations. By all accounts, the region
succeeded quite well with its aims. But Louisville's leadership did not become complacent. In mid-1996,
the two organizations joined forces to reassess the direction of the region's economy. They convened a
regional collaborative visioning process, involving several hundred local executives from the private and
public sectors. The visioning process effectively created a challenge for the community-it raised
aspirations for Louisville to move from being a "nice, average city" to become an entrepreneurial "hot
spot."
The road map that came out of the visioning process was thorough in its coverage of the elements of an
innovation-based economy. First, the region chose to intensely focus on two target industries in which
it could excel-logistics/distribution and biomedical. Second, the plan called for a "community
permeated with a culture of entrepreneurial ism" (Economic Development Administration, 200 I, p. 17).
Investing in assets-including the region's workforce, physical infrastructure, and the University of
Louisville-was recognized explicitly as key to success. In its implementation, the visioning document
called for accountability and benchmarking. The region also created one voice for development by
merging the Louisville Chamber of Commerce and the Greater Louisville Partnership to form the
Greater Louisville, Inc. (GU).
In a few short years, Louisville has made great strides in promoting entrepreneurship. GUS created the
Enterprise Corporation as a subsidiary to encourage entrepreneurship in general and stimulate
advanced-technology business development in particular. The University of Louisville College of
Business now has one of the top entrepreneurship programs in the country. The region's local supply of
venture capital climbed from $9 million to $150 million. To compete even more effectively, Louisville
merged with Jefferson County, climbing from the sixty-seventh to the sixteenth largest city in the nation.
Pieces
Maximum
29
A public/private partnership known as Innovation Philadelphia is also helping to move Philadelphia
forward in strengthening its innovation capacity. Founded in 200 I, Innovation Philadelphia is dedicated
to increasing the region's entrepreneurial capacity and to position the greater Philadelphia area as a
leader in the Global Knowledge Economy. An initiative of the City of Philadelphia, the Commonwealth
of Pennsylvania and private enterprises, the partnership was created to grow wealth and the workforce
by growing, attracting, retaining, and connecting technology-based businesses and workforce in the
region. It accomplishes this by providing technology-based and early-stage businesses with traditional
seed capital, access to alternative funding, skilled human capital, commercialization assistance,
entrepreneurial resources, and intellectual capital.
Innovation Philadelphia's approach to commercializing technology seeks to maximize the return on
investment to both the inventor/scientist and the community. To reach this objective, they support
researchers in a process of development, transfer, commercialization and reinvestment. During the
development stages (Steps 1-5) they help inventors
.
Find funding: They provide the resources and networking needed to help secure government
and private funding for each stage of the technology life cycle.
.
Locate resources: Since every business needs assistance, they provide a network of advisors
who can help launch the idea or business more effectively.
In Step 6 the successful transfer or spin off company creates royalties, profits or equity appreciation. In
Step 7 the inventor/scientist uses these profits to develop the next generation of ideas.
30
innovmioFl
-
The Innovation Philadelphia approach creates a higher return on investment and greater economic
development resulting in new jobs to the community then the traditional model. For the community it
successfully transfers more proven ideas to industry. This results in more spin-offs or expansions of
existing businesses. That means more jobs, increased tax revenues and economic growth. The
inventor/scientist earns more profits as well. Since ideas have proven marketability it has a higher value
then if it had been sold in the pure research phase.
Area
Initiative
the
innovation
Led by regional stewards from business, government, education, civic, and labor sectors, the RJI seeks to
diversify the economy, make businesses more competitive, foster innovation and expand local
companies. To help achieve those goals, the volunteer organization is trying to create more jobs in the
region's most promising clusters: advanced manufacturing, construction, health care, information
processing, logistics and distribution, tourism, water technology, food processing, innovative energy and
software. RJI has set a goal of 25,000 to 30,000 net new jobs in these clusters at an average salary of
$29,500 in the Fresno Metropolitan Statistical Area between 2003 and 2008. As of early 2006, almost
9,000 net new jobs had been created.
The Regional Jobs Initiative operates through several task forces focusing on multiple dimensions of
competitiveness, including innovation, work force development, physical and technology infrastructure,
customer service, government affairs, finance and capital, communications and livability. The Innovation
Task Force was created to foster a culture of innovation and entrepreneurship that will fuel job creation
in the region. The task force creates and implements programs and activities that connect to new
business start-ups, retention and attraction of knowledge workers, improved competitiveness of existing
businesses, and enhanced creativity. By supporting innovation and entrepreneurship in the Fresno
31
Region, the Innovation Task Force seeks to provide a solid foundation for growing the industry clusters
targeted by the RJI.
In formulating its Action Plan, the Innovation Task Force identified several key issues that affect the
region's ability to innovate, which include a lack of identity, a belief that the future is "elsewhere", and a
lack of institutional support for innovation and entrepreneurship. To tackle these issues and enhance
the region's innovation capacity across the region's clusters, the Innovation Task Force has to sought-
out to accomplish the following objectives:
· Develop a national reputation for an "Innovative Culture"
· Develop a national reputation for high growth startup businesses
· Retain and attract 20-29 year old "Knowledge Workers"
. Develop collaborative methods for the formulation and implementation of change
INTERNET
a
Theme and
Innovation
Marketing
Increase the awareness of the InternetCoast as an
entrepreneurship, research rich, growing and leading edge
economic zone for Internet, Information Technology,
Telecommunications, and Bioscience.
http://www.internetcoast.com/
The Internet Coast (iCoast) is an alliance of technology companies and organizations operating in
Southeast Florida, encompassing Palm Beach, Broward, and Miami Dade counties. iCoast is a high tech
cluster of businesses, organizations, and educational facilities that is now reaching critical mass in the
same way that other U.S. technology clusters, such as the Silicon Valley, have in the past. With a rich
mix of regional assets, such as a reasonable cost of living and high quality of life, the iCoast continues to
attract innovative internet companies that could locate almost anywhere in the world. Consequently,
the iCoast is becoming well recognized as a worldwide hub for technology businesses.
The iCoast sees itself as a grass roots movement that focuses on social innovation, entrepreneurship, and
a knowledge based workforce to facilitate investment and drive economic growth. The iCoast alliance
has created an advisory council, working committees and collaborative partnerships described below to
reach its vision of leading South Florida as a global science and technology hub.
Council: The mission of the InternetCoast Chief Information Officers
Advisory Council is to enhance community awareness of information technology issues through
education and communication. The participation of chief information officers from South Florida's
commercial businesses, government, and educational institutions will create opportunities for these
executives to grow their respective organizations. The council provides a forum for an open exchange
of ideas, collaboration on issues of mutual importance, leveraged vendor relationships, and focused
community involvement.
The iCoast is made up of multiple working committees that seek to enhance the
technological and innovative capacity of the region. Committees focus on marketing, networking,
regional information technology infrastructure development, and entrepreneurship. The South Florida
32
Bioscience committee for instance works to promote iCoast as one of the nation's leading venues for
Bioscience. Already, the iCoast is home to over 1,500 bioscience businesses and institutions that
employ over 26,000 people and generate over $ 4 billion in sales. The Infrastructure committee is
developing a plan to provide physical and/or virtual network connectivity to the universities in South
Florida, in order to provide the bandwidth for enhanced collaboration between the university systems in
the region.
The iCoast formed a partnership with Workforce Florida (WFI) to offer a
web-based component of the state's biotechnology training curricula. The Biotechnology Technician
Program features 40 hours of interactive, web-based training covering a wide variety of industry-specific
topics. At the conclusion of the program, participants are expected to have a good understanding of the
dynamic biotechnology industry. The Online Biotech courses are only available to Florida participants
approved by iCoast and Workforce Florida.
Its
Clearly, other regions are vying for talented people and innovative, entrepreneurial companies. They
are realizing that these are the key drivers of prosperity in today's economy. Regions as varied as
Philadelphia, San Diego, Miami, and Fresno are stepping forward to put substantial leadership and
resources into the brand marketing and targeted support to attract, retain, and grow talent, innovation,
and entrepreneurship. Additional regions are highlighted in the Appendix of this report.
While Tri-Valley certainly has the ingredients to continue to be one of America's "hot spots" for
innovation and entrepreneurship, its future is by no means assured. The next chapter outlines a new
regional economic strategy that is intended to meet this challenge. IV.
NETWORK: A
Considering the unmistakable trend towards innovation and entrepreneurship in the region,
the clear message from the firms themselves about their needs, and the growing competition
from other regions, there is a strong rationale for the Tri-Valley to adopt a new economic
strategy.
This strategy should have two primary elements: an innovation network and regional
branding/marketing campaign. These priorities are in response to the feedback from the more than 100
companies consulted since 2005 by the Preserving Prosperity Project:
· It is clear that a strong majority of firms want more opportunities to find and interact with other
companies who could be potential partners, vendors, or customers. The creation of an
Innovation Network will provide the focal point and infrastructure to address this high-priority
need.
· It is also very clear that there is little "brand identity" either in the Tri-Valley or outside the
region. People generally view the region as something it once was (Le., primarily a bedroom
community or back-office economy or home to branches of large technology companies) rather
than what it has become (Le., a growing hub of smaller, innovative, entrepreneurial companies).
The Regional Branding/Marketing Campaign will directly address this need.
The measurable outcomes for the two-part regional economic strategy would be the following:
33
· Increase the number and size of small, innovative firms in the Tri-Valley through strategic
partnering with other firms, customers, and support services.
· Measurable growth of region's industry specializations (Le., scientific biomedical products and
services, information technology products, innovation services, and business operations).
It is also important to note that ongoing efforts to maintain a high quality of life, solve transportation
bottlenecks, and expand housing choices should be a priority. Clearly, many of the firms consulted by
the Preserving Prosperity Project expressed concern about one or more of these inter-related issues.
In fact, the importance of attracting, retaining, and growing these innovative, entrepreneurial firms-and
the talent that drive them-should provide additional urgency to current efforts to address quality of
life, transportation, and housing issues. The region's success in addressing these challenges will directly
impact the measurable outcomes of the regional economic strategy.
34
The Tri-Valley Business Council, working with its local partners in government, business, and civic
sectors, will be the host of the Network. The Council will first establish a design team to develop the
specific components of and launch schedule of the Network. The Council would expand its existing
database of innovative, entrepreneurial companies, building on the list of focus group and on-line survey
participants. Specific components would include a web presence, Innovation Forums, Innovator
Partnering Service, and Innovation Teams.
I. Create the web presence for the Innovation Network. This will require both technical work,
but also follow-up research to profile specific companies and their underlying products, services,
and technology niches. Good documentation of specific companies will provide not only a map
of what is happening in the region for all to see, but also a foundation for an "intelligent
matching" of firms with partners, vendors, customers, and the like.
2. Create an Provide companies with a standardized template
to fill out, detailing their products, services, capacities-and interests in partners, vendors,
customers, and the like. Explore different options and levels of service that would match
potential partners for mutual benefit-and prosperity for the Tri-Valley region.
3. Design and hold a series of hmovator Forums. Conduct on-line surveys and other
consultation with Innovation Network participants to identify high-priority technical and
business topics. Hold live, in-person sessions, as well as offer audio and/or videotaped
rebroadcasts of those Forums.
4. Create around priority issues and opportunities. In the process of
conducting the focus groups and online survey. several possible ideas were identified for
collaborative action. For example, many firms identified the lack of sufficient talent as a
constraint to their growth. Some identified the desirability of having more widespread wi-fi in
the Tri-Valley. The Network would provide the mechanism to surface priorities, mobilize
interested parties, and support development and implementation of actions to address those
priorities.
35
I. Create a design team to develop a new "value statement" for locating in the Tri-Valley,
establishing Tri-Valley's economic identity as a "region of innovation and entrepreneurship".
2. The design team should create marketing materials to "launch" the new Tri-Valley brand. This
will require design/graphics work, but also content development based on the profiling of
companies described above. This could include documentation of the concentration of "talent"
that resides/works in the Tri-Valley (by key occupations), as part of a marketing strategy aimed
at convincing talented individuals/professional associations nationally that the Tri-Valley is a
hotbed of innovation and entrepreneurship.
3. Sign up Tri-Valley cities, businesses, and civic organizations as "brand promoters," using the
marketing materials to help carry out the campaign.
Below is an example of a recent regional effort by Silicon Valley to re-brand itself as a place producing a
broad range of innovations, not simply drive by one kind of technology.
I
Silicon Valley's long list of innovations is a byproduct of our greatest !
assets-the bright people and the smart ideas that call the Valley home.
Our region boasts a remarkable concentration of entrepreneurial
savvy, innovative thinking, free-wheeling technical creativity, cultural
diversity, and intellectual energy.
~J~iutY~l~~;:
36
Innovation
not
in
it
be matter
(]
Economic
In the I 950s, a group of innovative leaders conceived the idea ofthe Research Triangle Park (RTP), an
idea that changed the economic course of the region. They focused on the concept of a research park
where businesses, universities, and area entrepreneurs would work together, reflecting a special spirit of
cooperation and learning within the scientific and technological community.
The Park overall grew slowly through the early I 960s, then with the advent of both International Business
Machines Corp. (IBM) and the National Institute of Environmental Health Sciences in 1965, the Park began to
grow in earnest over the next several decades. From 1990 to 2000, more than 42 new companies
established facilities in RTP. New construction and expansion has totaled over 5 million square feet. A
research business incubator was formed to provide interim laboratory facilities for early-stage
companies.
Over the past few years, the 13-County Research Triangle Region has faced the decline of traditional
industries, layoffs from leading businesses, and global while-collar outsourcing. Regional leaders
recognized the need for a new economic strategy to sustain competitiveness in the global economy, and
they also understood that regional collaboration and innovation was the way to achieve positive
outcomes.
In 2004, the Research Triangle Regional Partnership, a public-private partnership, crafted a nationally
recognized innovation based strategy, known as "Staying on Top: Winning the Job Wars of the Future."
The goal of this $5 million, 5-year plan is to create 100,000 new jobs and boost employment in all 13
counties of the region. Staying on Top calls for focusing and coordinating the region's business, academic,
and economic development resources on a shared vision for creating jobs, using the five strategies
described below.
I. Organize economic development strategies around industry clusters where the Research
Triangle Region has a demonstrated or emerging competitive advantage.
2. Create plentiful job opportunities using a balanced economic development approach of targeted
recruitment, global brand recognition, business creation and existing business retention and
innovation.
3. Integrate the region's higher education resources into all economic development efforts.
37
4. Develop creative, inclusive approaches to improve rural prosperity.
5. Create agile leadership networks to respond to market challenges, changes and opportunities.
Key components of the plan's success will be:
.
Narrowly targeted recruitment of industry clusters.
A comprehensive regional leadership network capable of responding to market challenges,
changes and opportunities.
Innovative new initiatives, such as a regional retention strategy, rural "mini-hubs" and university
portals.
Continuous monitoring of competitiveness indicators.
.
.
.
The Research Triangle region has benefited from the vision of key public and private sector leaders, who
recognize the importance making innovative economy a priority on the regional agenda and that a
collaborative approach is key.
The Innovation Factory has redefined how life
sciences technology can be quickly
transformed from creative "drawing board"
ideas to practical and profitable businesses.
http://www.innofactory.comlindex.html
The mission of Atlanta's Innovation Factory is to redefine how life sciences technology can be quickly
transformed from creative "drawing board" ideas to practical and profitable businesses. Using a "hands-
on" management approach coupled with extensive capital resources, they have created a new type of life
science business launch platform. Simple and straightforward processes speed time-to-market and
increase the probability of success. The Innovation Factory is now recognized as one of the most
successful organizations of its kind.
The Innovation Factory acquires or licenses technology from laboratories, inventors, and clinicians,
around which it builds life science ventures. The firm provides all of the necessary business services and
support for medical life science start-ups. Unlike the other twenty or so medical-related "incubators"
nationwide, The Innovation Factory actually creates, launches and manages its offspring businesses.
Created in 1999, its founders and management have over 100 years of combined medical life science
product and business development experience and hold more than seventy patents. The firm has already
launched six medical-related, for-profit enterprises.
The Innovation Factory provides the companies it founds a broad array of services including assistance
with product invention, quality systems, business formation, financing, staffing, product development,
intellectual property development, prototyping, regulatory assistance, and clinical testing.
Innovation
38
OREGON
Created to enhance the competitiveness of Oregon traded
sector and knowledge industries by increasing the state's
capacity for innovation, technology development and
product creation.
http://www.oregoninc.orglabout.htm
Oregon has made significant strides to build its clusters and strengthen innovation capacity across every
region. In 2003, the legislature allocated $20 million in capital and $1 million to fund operations for
Oregon Nanoscience and Microtechno/ogies Institute (ONAMI), representing the most significant pairing of
Oregon's industry and public research universities in history. That year, the state legislature also
established the Oregon Investment Fund, a $100 million program that encourages the growth of Oregon
small business by leveraging private equity and venture capital funds.
More recently in 2005, the legislature established the Oregon Innovation Council (Oregon InC),
comprised of representatives from industry, government and universities. Oregon InC serves as the
state's advisory board on innovation and competitiveness issues and is charged with developing a state
innovation strategy. Its mission is to enhance the competitiveness of Oregon traded sector and
knowledge industries by increasing the state's capacity for innovation, technology development and
product creation.
Oregon InC's first charge is to develop and track the state's Innovation Plan. The organization plans to
identify a targeted list of key "next steps" for Oregon's public and private sectors to:
· accelerate the transfer of research and technology into high-value products and growth companies;
· develop the entrepreneurial and workforce talent required for companies competing in highly
innovative and global markets;
· facilitate collaboration across sectors to leverage existing private and public resources and build on
growth opportunities;
· strategically position Oregon in the global arena based on our core strengths and unique regional
identity;
· and increase exports and bring new investment, companies and high-paying jobs to our state.
Other important efforts to improve the state's competitiveness through cluster development and
innovation are underway. The Oregon Economic and Community Development Department (OECD)
has embarked on a as a basis to promote economic development in the state.
This effort, involving an alliance of public, business and not-for-profit entities, has two primary aims: I)
develop a comprehensive understanding of traded industry clusters that are important sources of
innovation, entrepreneurship and employment growth in the state; and 2) develop a set of policy
initiatives to promote collaboration among businesses, facilitate the development of public-private
partnerships and create effective incentives to support the growth of traded industry clusters.
The initiative focuses on select broad industry groups with significant concentrations of employment in
Oregon relative to the US economy. A vibrant cluster that has been targeted by the OECD is the
Systems Displays Industry. Sponsored by the OECD, the Oregon Display Systems Industry Consortium
Cluster was formed to foster economic growth within the display system industry in Oregon and SW
Washington. The strategy in support of this mission is to support and promote the growth of companies
already located in the region; recruit high quality, synergistic companies to the region; and create an
environment conducive to the creation of new businesses. Specific cluster priorities are to:
39
. Position the Portland region as a Center of Excellence for the display industry. This initiative is a
multi-faceted campaign, and includes marketing, deepening connections into Oregon's system of K-
12 and higher education, recruitment, and access to venture capital. Specific elements include:
o Continuing marketing efforts to fill the gaps in the supply chain and mitigate the local
media's assertion that the display industry is dead or dying in Portland
o Creating a "Display 10 I" course to be offered at the college level
o Improving access to venture capital and other sources of untapped capital to support
entrepreneurship in the display industry.
. Bring federal research dollars in display technology into Oregon's university system.
. Define the size and importance of the display cluster and its Current Economic Impact.
Ontario
Innovation Networks
Ontario is implementing a commercialization framework based on a system of "regional innovation
networks." These are multi-stakeholder, regional development organizations established with Provincial
funding that support partnerships among business, institutions and local governments to promote
innovation.
While initially focused on the life sciences, Ontario's II active regional networks are expanding into
other areas of innovation excellence such as information technology, energy conservation, and advanced
materials-depending on their local strengths and opportunities.
One of the benefits of these networks is that they can bring commercialization services closer to the
clients that need them-small firms, researchers, entrepreneurs and investors. The regional networks can
also facilitate access to other commercialization resources, including the Ontario Centres of Excellence,
the new Medical and Related Sciences (MaRS) centre, the Ottawa Centre for Research and Innovation,
and Communitech.
There are over 200 firms in Arizona engaged in some sort of optics activity, most of which are
concentrated in Tucson, often referred to and branded as "Optics Valley". The optics cluster in Tucson
started in 1942, based around the area's large number of telescopes. Within 100 kilometers of Tucson,
there are more square centimeters of astronomical glass pointed out toward the universe-including the
recent $80 million Mount Graham International Observatory-than at any other location on earth.
Optics revenue is Tucson alone was estimated to account for over $600 million and more than 1,400
jobs in 200 I.
The optics industry in Arizona is supported by a vibrant habitat, including government, research
institutions, organizations and associations that seek to strengthen and leverage the region's assets to
support and grow the optics cluster. The Arizona Optics Industry Association (AOIA), a not-for-profit
professional organization, has as its mission to promote the growth of the optics cluster in Arizona.
The organization supports its member companies in the areas of global marketing, networking, strategic
partnering, education and representation.
Arizona's educational institutions have helped to propel the state's optics cluster to world-renowned
status by supplying highly-qualified talent to optics firms and developing new technologies and
applications. In 2003, the University of Arizona's Optical Science Center graduated 30 highly qualified
40
scientists with masters and doctoral degrees, more than any other institution in the nation. The
university admits another 20 students to its optics undergraduate program each year, and that number
will grow substantially in the next decade, thanks to a new facility and ongoing support from the state
government and local industry. Pima Community College's Electronics & Optical Systems Technologies
Department and the Southern Arizona Institute provide complimentary credentials for technicians in the
specialty areas of electro-optics, optical manufacturing and electro-optical assembly and testing for
Advanced Technology (SAIAT).
Zone
To help the Pittsburgh region flourish as a technology center, the Pittsburgh Technology Council
launched in partnership with government agencies and multiple organizations the Greater-Oakland
Keystone Innovation Zone (GO KIZ). The initiative's primary objective is to increase technology
company formation and growth in the areas around the University of Pittsburgh and Carnegie Melon
University. This will be accomplished through direct programmatic support, strategy development,
service delivery and active coordination of physical, financial and intellectual assets in the region.
The largest part of GO KIZ is its incubation effort. The initiative will go beyond providing physical space
and shared resources for emerging companies to providing business know-how and services. This
decision was rooted in the belief that successful incubators help businesses succeed not by just lowering
costs, but by improving the business model and adding critical expertise to the management team.
Although Pittsburgh has a long history of successful economic development planning, the region is in
need of a coordinated, central vehicle to provide strategy development and coordination for the
region's technology opportunities. Specifically, the KIZ will
· develop a prioritized list of actions needed to support tech-based economic development to
maximize impact and increase leverage;
· align regional resources of all KIZ partners for maximum technology-based development;
· and coordinate actions of the key players/sectors and provide a central leadership voice.
41
JEFF ANTRIM
JERRY CARLSON
JOHN DOYLE
TBA
JOE GABBERT
STEVE GILMOUR
WIL HARDEE
STEVE HARMON
SUSAN HOUGHTON
JILL HRUBY
CHRIS KINZEL
HOLL Y NELSON
WELDON MORELAND
RAY O"CONNOR
JAMES PAXSON
BOB SILVA
SANDI SMALL
LINDA TODD
TBA
PHIL WENTE
KEN MERCER
TOBY BRINK
COMMITTEE CHAIRS
ATTACHMENT A
TRI-V ALLEY BUSINESS COUNCIL
BOARD OF DIRECTORS
PRESIDENT, ANTRIM ENGR & CONSTRUCTION
DIRECTOR, VALLEY COMMUNITY BANK
HOGE, FENTON, JONES & APPEL
EMC DOCUMENTUM
PRESIDENT, WEST RIDGE CONSULTING
PRESIDENT, LEISURE SPORTS
DIRECTOR, PUBLIC AFFAIRS, PG&E
PRINCIP AL, MORGAN MILLER BLAIR
DIRECTOR, PUBLIC AFFAIRS, LLNL
DIRECTOR, SANDIA NA T'L LABS
PRESIDENT, TJKM TRANSPORTATION
RANDICK, O'DEA & TOOLIATOS
M. WELDON MORELAND, CPA
PRESIDENT, TOPCON POSITIONING SYSTEMS
GEN'L MGR, HACIENDA PARK OWNERS ASSN
THE DESILVA GROUP
SR VP, KAISER PERMANENTE
PARTNER, VAVRINEK, TRINE, DAY & CO
WELLS FARGO BANK
VP, WENTE VINEYARDS (TVBC CHAIRMAN)
VP, V ALLEYCARE HEALTH SERVICES (CHAIR)
PRESIDENT, TRI-V ALLEY BUSINESS COUNCIL
COMMUNITY PLANING & HOUSING COMMITTEE
MAURINE BEHREND
DAVID STARK
TRI-V ALLEY INTERFAITH POVERTY GROUP
BAY EAST ASSOCIATION OF REALTORS
PRESERVING PROSPERITY PROJECT
TOM O'MALLEY TRI- VALLEY BUSINESS COUNCIL
AGRICULTURAL & OPENSP ACE PLANNING COMMITTEE
DICK QUIGLEY
LAWRENCE LIVERMORE NA T'L LAB
"
ATTACHMENT B
TRI- VALLEY BUSINESS COUNCIL
VISION 2010 PROGRAM
FISCAL YEAR 2007/2008 BUDGET (ESTIMATED) *
EXPENSES
COLLABORATIVE ECONOMICS CONSULTING
- INNOVATION NETWORK
INNOVATORS NETWORK WEBSITE DEVELOPMENT
INNOVATORS NETWORK QUARTERLY FORUMS
$25,000
65,000 **
6,000
TRI- V ALLEY ECONOMIC ROUNDTABLE MEETINGS (2)
REGIONAL MOBILITY COMMITTEE SUPPORT
PORT TO PORT COALITION SUPPORT
COMMUNITY PLANNING & HOUSING COMMITTEE SUPPORT
EDUCATION COMMITTEE SUPPORT
3,000
2,000
2,000
2,000
5,000
VISION NEWSLETTER & WEBSITE
VISION PROGRAM MANAGEMENT
ADMINISTRATIVE SUPPORT
7,500
50,000
7,500
TOTAL
$175,000
REVENUES
TOWN OF DANVILLE
CITY OF DUBLIN
CITY OF LIVERMORE
CITY OF PLEASANTON
CITY OF SAN RAMON
ALAMEDA COUNTY
CONTRA COSTA COUNTY
$25,000
25,000
25,000
25,000
25,000
25,000
25,000
TOTAL
$175,000
* THIS IS THE PRELIMINARY BUDGET. FINAL APPROVED BUDGET WILL
COMPLETED APRIL 30, 2007
** THIS IS THE PROGRAM THAT THE DUBLIN CONTRIBUTION WILL
SUPPORT
..
TRI-V ALLEY BUSINESS COUNCIL
VISION 2010 PROGRAM
FISCAL YEAR 2006/2007 BUDGET
EXPENSES
COLLABORATIVE ECONOMICS CONSULTING
- INNOVATION NETWORK
INNOVATORS NETWORK WEBSITE
- OUTLINE & PRELIMINARY DESIGN
INNOVATORS NETWORK QUARTERLY FORUMS
TRI- V ALLEY ECONOMIC ROUNDTABLE MEETINGS (2)
REGIONAL MOBILITY COMMITTEE SUPPORT
PORT TO PORT COALITION SUPPORT
COMMUNITY PLANNING & HOUSING COMMITTEE SUPPORT
EDUCATION COMMITTEE SUPPORT
VISION NEWSLETTER & WEBSITE
REGIONAL GIS PROJECT CONSULTING & PROGRAMMING
VISION PROGRAM MANAGEMENT
ADMINISTRATIVE SUPPORT
TOTAL
REVENUES
TOWN OF DANVILLE
CITY OF DUBLIN
CITY OF LIVERMORE
CITY OF PLEASANTON
CITY OF SAN RAMON
ALAMEDA COUNTY
AT&T
TOTAL
$30,000
10,000
6,000
4,000
2,000
5,000
2,000
5,000
8,000
30,000
50,000
8,000
$160,000
$25,000
25,000
25,000
25,000
25,000
25,000
10,000
$160,000
CLIENT 20024
M.W. MORELAND, C.P.A.
1424 CONCANNON BLVD, BLDG G
LIVERMORE, CA 94550
(925) 449-0100
September 12, 2006
PHILLIP WENTE
TRI- VALLEY BUS CNCL EDUC. COLLABORATIVE
1424 CONCANNON BLVD
LIVERMORE, CA 94550
Dear PHILLIP:
Enclosed is your 2005 Federal Return of Organization Exempt from Income Tax. The original
should be signed at the bottom of page eight. No tax is payable with the filing of this return.
Mail your Federal return on or before August 15, 2006 to:
INTERNAL REVENUE SERVICE
OGDEN, UT 84201-0027
Enclosed is your 2005 California Exempt Organization Annual Information Return. The original
should be signed at the bottom of page one. There is a balance due of $10 payable by December
15, 2006. Mail the California return on or before December 15, 2006 and make the check
payable to:
FRANCHISE TAX BOARD
P.O. BOX 942857
SACRAMENTO, CA 94257-0701
Enclosed is your California Registration/Renewal Fee Report to the Attorney General. The
original should be signed at the bottom of page one. No fee is payable with the filing of this
report. Mail the California report on or before August 15, 2006 to:
REGISTRY OF CHARITABLE TRUSTS
P.O. BOX 903447
SACRAMENTO, CA 94203-4470
Please be sure to call us if you have any questions.
Sincerely,
M. WELDON MORELAND
1;
Form 990
Return of Organization Exempt From Income Tax
Under section 501 (c), 527, or 4947(a)(1) of the Internal Revenue Code
(except black lung benefit trust or private foundation)
Department of the Treasury
Internal Revenue Service ~ The organization may have to use a copy of this return to satisfy state reporting requirements.
A For the 2005 calendar year, or tax year beginning ,2005, and ending
B Check if applicable:
OMS No, 1545-0047
2005
Open to Public
Inspection
o Employer Identification Number
Address change
Name change
Initial return
~R~:~e TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
or print 1424 CONCANNON BLVD
ors~~e. LIVERMORE, CA 94550
specific
instruc-
tions.
94-3227787
E Telephone number
Final return
(925) 449-0100
F Accounting fXl D
method: l::J Cash Accrual
Other (specify) ~
Amended return
Application pending
. Section 501 (cX3) organizations and 4947(aXn nonexempt
charitable trusts must attach a completed Schedule A
(Form 990 or 990-EZ).
H and I are not applicable to section 527 organizations.
H (a) Is this a group return for affiliates? . .. DYes
H (b) If 'Ves,' enter number of affiliates ~
H (C) Are all affiliates included? . . . . . . . .. DYes
(If 'No,' attach a list. See Instructions.)
Organization type
(check only one) . . . . . . .. ~ X 501 (c) 3'" (insert no.) 4947(a)(1) or
K Check here ~ D if the organization's gross receipts are normally not more than
$25,000. The organization need not file a return with the IRS; but if the organization
chooses to file a return, be sure to file a complete return. Some states require a I Group Exemption Number. .. ~
complete return. M Check ~ D if the organization is not required
L Gross receipts: Add lines 6b, 8b, 9b, and lOb to line 12 .. ~ 206, 459. to attach Schedule B (Form 990, 990.EZ, or 990-PF).
Revenue, Ex enses, and Chan es in Net Assets or Fund Balances (See Instructions)
Contributions, gifts, grants, and similar amounts received:
a Direct public support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Indirect public support, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Government contributions (grants). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
dTotal(addlines $ 191 952 $
1a through 1c) (cash ,. noncash ) . . . . . . . . . . . . . . . . . . . . . . . .
2 Program service revenue including government fees and contracts (from Part VII, line 93). . . . . . . . . . . . . . .
3 Membership dues and assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Interest on savings and temporary cash investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Dividends and interest from securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6a Gross rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a
b Less: rental expenses. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 6b
c Net rental income or (loss) (subtract line 6b from line 6a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Other investment income (describe. . . . . .. ~
G Web site: ~ N/A
J
527
H (d) Is this a separate return filed by an
organization covered by a group ruling?
1a
1b
lc
42,000.
149,952.
R
E
V
E
N
U
E
(A) Securities
(B) Other
8a Gross amount from sales of assets other
than inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a
b Less: cost or other basis and sales expenses. . .. . . . 8b
c Gain or (loss) (attach schedule). . . . . . . . . . . . . . . . . . . . . . 8c
d Net gain or (loss) (combine line 8c, columns (A) and (8)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Special events and activities (attach schedule). If any amount is from gaming, check here. . .. ~D
a Gross revenue (not including $ 191,952. of contributions
reported on line 1 a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Less: direct expenses other than fundraising expenses. . . . . . . . . . . . . . . . . . . .
c Net income or (loss) from special events (subtract line 9b from line 9a) . . . . . . .
lOa Gross sales of inventory, less returns and allowances..................... lOa
b Less: cost of goods sold.... .......................................... lOb
c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line lOb from line lOa). . . .
11 Other revenue (from Part VII, line 103)........................ .........
12 Total revenue (add lines 1 d, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c, and 11). . . . . .
E 13 Program services (from line 44, column (8)). . . . . . . . . . . . . . . . . . . . .
~ 14 Management and general (from line 44, column (C)) . . . . . . . . . . .
~ 15 Fundraising (from line 44, column (D)) . . . . . . . . . . . . . . . . . . . . . . .
~ 16 Payments to affiliates (attach schedule). . . . . . . . . . . . . . . . . . . . . .
s 17 Total expenses (add lines 16 and 44, column (A)) . . . . . .
A 18 Excess or (deficit) for the year (subtract line 17 from line 12). .
~ ~ 19 Net assets or fund balances at beginning of year (from line 73, column (A)). .
T ~ 20 Other changes in net assets or fund balances (attach explanation). . . . . . . . . . . . .
s 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BAA For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
9a
9b
14r263.
203,695.
. . STATEMENT .1
10c
11
12
13
14
15
16
17
18
19
20
21
TEEA0109L 02/03/06
lm No
DNO
No
1d
2
3
4
5
191,952.
244.
-189,432.
2,764.
8,381.
8,381.
-5,617.
-86,359.
-91,976.
Form 990 (2005)
Form 990 (2005) TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787 Page 2
1:.I'";i"\~:,,:ifl Statement of Functional Expenses All organizations must complete column (A). Columns (8), (C), and (D) are
required for section 501 (c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others.
Do not include amounts reported on line
6b, Bb, 9b, 7 Db, or 76 of Part I.
22 Grants and allocations (att sch)
(cash $
non-cash $
If this amount includes
foreign grants, check here.. ~ D.
23 Specific assistance to individuals (att sch) .
24 Benefits paid to or for members (att sch). .
25 Compensation of officers, directors, etc. .
26 Other salaries and wages.
27 Pension plan contributions. . . . . . .
28 Other employee benefits. . . . . . . . . .
29 Payroll taxes. . . . . . . . . . . . . . . . . . . . . . . .
30 Professional fundraising fees. . . . . . . . .
31 Accounting fees. . . . . . . . . . . . . . . .
32 Legal fees. . . . .
33 Supplies..............
34 Telephone..........................
35 Postage and shipping. . . . . . . . . . . . . . . .
36 Occupancy...........................
37 Equipment rental and maintenance. . . . .
38 Printing and publications. . . . . . . . . .
39 Travel............... . . . . . . . . .
40 Conferences, conventions, and meeti ngs . . . .
41 Interest...........................
42 Depreciation, depletion, etc (attach schedule) .
43 Other expenses not covered above (itemize):
a FILING FEES
------------------
b INSURANCE
------------------
c LICENSES AND PERMITS
------------------
d
e
(A) Total
(B) Program
services
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
.... 39
40
41
42
o.
o.
o.
7,175.
7,175.
43a
43b
43c
43d
43e
43f
43
60.
1,126.
20.
60.
1,126.
20.
f
9
44 TotaifuncUonalexpenses:-AddTines 22thrcHi9h
43. (Organizations completing columns (B) . (D),
carry tMese totals to lines 13 - 15)..... ....... 44 8,381. O. 8,381.
Joint Costs. Check. ~D if you are following SOP 98-2.
Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? .N/A. . ~D Yes D No
If 'Yes,' enter (i) the aggregate amount of these joint costs $ ; (ii) the amount allocated to Program services
$ ; (iii) the amount allocated to Management and general $ ; and (iv) the amount allocated
to Fundraising $
BAA
o.
Form 990 (2005)
TEEA0102L 11/01/05
Form 990 (2005) TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787 Page 3
~11.11~'ie,j.!1 Statement of Program Service Accomplishments N/A
Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular
organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore,
please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments.
What is the organization's primary exempt purpose? ~ Program Service Expenses
All organizations must describe their exempt purpose achievements In -a clear and conCise manner. State the- num6erof (Re(l)'~er~~~fz~?i~~C~~~d"d
9lients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501 (c)(3) and (4) organ- 4947(a)(1) trusts; but
Izatlons and 4947 (a) (1 ) nonexempt charitable trusts must also enter the amount of grants and allocations to others.) optional for others.)
a
----------------------------------------------------n-
(Grants and allocations $ ) If this amount includes foreign grants, check here.. ~ I I
b
----------------------------------------------------n-
(Grants and allocations $ ) If this amount includes foreign grants, check here.. ~ I I
c
----------------------------------------------------n.
(Grants and allocations $ ) If this amount includes foreign grants, check here.. ~ I I
d
(6;:a~t~ ;nd ;Ii;;c-;:;t~~s - -$- - - - - - - - - - - - -) If thi~ ;m-;u~tin~l~d;s fo~e~n-g~a;;ts~ ct,~k h~~ ~ -~-n-
e Other program services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Grants and allocations $ ) If this amount includes foreign grants, check here.. ~ n
f Total of Program Service Expenses (should equal line 44, column (B), Program services). .. .................. ~
BAA
Form 990 (2005)
TEEA0103L 10/14/05
Form 990 (2005) TRI -VALLEY BUS CNCL EDUC. COLLABORATIVE
1"lftlilllilll,Bl Balance Sheets (See Instructions)
Note:
Where required, attached schedules and amounts within the description
column should be tor end-at-year amounts only.
45 Cash - non.interest-bearing. . . . . . . .
46 Savings and temporary cash investments.
47a Accounts receivable. . . . . . . . . . . . . .
b Less: allowance for doubtful accounts. .
48a Pledges receivable. . . . . . . . , . . . . . . .. . . . . . . . . . . . . ,
b Less: allowance for doubtful accounts. . . . . . . . . . . ,
49 Grants receivable. . . . . . . . . . . . . . . . . , . . . . . . . . . . . . ,
A 50 Receivables from officers, directors, trustees, and key
5 employees (attach schedule). . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
E 51 a other notes & loans receivable (attach sch). . . . . . . . . . 51 a
T
5 b Less: allowance for doubtful accounts. . . . . , 51 b
52 Inventories for sale or use. . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . , . . , . . . . . . . .
53 Prepaid expenses and deferred charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . .
54 Investments - securities (attach schedule) . . . . . . . . . . . . .. ~D Cost D FMV
55a Investments - land, buildings, & equipment: basis 55a
b Less: accumulated depreciation
(attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56 Investments - other (attach schedule) . . . . . . . . . . . .
57a Land, buildings, and equipment: basis. . . . , . . . . . . ,
55b
57a
b Less: accumulated depreciation
(attach schedule). . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . 57b
58 Other assets (describe ~
59 Total assets (must equal line 74). Add lines 45 through 58. . . . , . . . . . . . . . . . .
60 Accounts payable and accrued expenses. . . . . . . . . . . . . , . . . . . . . , . . . . . . . . . . .
61 Grants payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . , . . . . . . . . . . . . . .
62 Deferred revenue. . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63 Loans from officers, directors, trustees, and key employees (attach schedule). . . , . . . . . . . . . . . . . . .
64a Tax-exempt bond liabilities (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Mortgages and other notes payable (attach schedule). . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . .
65 Other liabilities (describe ~. SEE STATEMENT 2
66 Total liabilities. Add lines 60 through 65. . . . . . . . . . . , . . , . . . . . . . , . . . . . . . . . . .
Organizations that follow SFAS 117, check here ~ and complete lines 67
N
If through 69 and lines 73 and 74.
A 67 Unrestricted.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
~ 68 Temporarily restricted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
~ 69 Permanently restricted. . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . , . , . . ,
~ Organizations that do not follow SFAS 117, check here ~ lRJ and complete lines
F 70 through 74.
~ 70 Capital stock, trust principal, or current funds. . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D
B 71 Paid-in or capital surplus, or land, building, and equipment fund. . . . . . . . . . . , . .
t 72 Retained earnings, endowment, accumulated income, or other funds, , . . . . . . .
A
N
C
E
5
)..
L
I
A
B
I
L
I
T
I
E
5
)..
73 Total net assets or fund balances (add lines 67 through 69 or lines 70 through
72; column (A) must equal line 19; column (B) must equal line 21) . . . . . . . . . . . .
74 Total liabilities and net assets/fund balances. Add lines 66 and 73. . . . . . . . . . . . .
BAA
TEEAO 1 04L 10/17/05
(A)
Beginning of year
3,388.45
39,800. 46
57c
58
4 3, 18 8. 59
60
61
62
63
64a
64b
129,547. 65
129,547.66
-86,359.
-86,359.
43,188.
94-3227787
Page 4
(B)
End of year
15,831.
21,818.
37,649.
129,625.
129,625.
-91,976.
-91,976.
37,649.
Form 990 (2005)
Form 990 (2005) TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
l'I.:'I~lIlil Reconciliation of Revenue per Audited Financial Statements with Revenue per Return (See
instructions.)
a Total revenue, gains, and other support per audited financial statements. . .
b Amounts included on line a but not on Part I, line 12:
1 Net unrealized gains on investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2Donated services and use of facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3Recoveries of prior year grants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40ther (specify):
bl
b2
b3
b4
c
d
Add lines bl through b4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line b from line a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts included on Part I, line 12, but not on line a:
1 Investment expenses not included on Part I, line 6b . . . . . . . . . . . . . . . . . . . . . . . . . . . . dl
20ther (specify):
d2
e
Add lines dl and d2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue (Part I, line 12). Add lines c and d............................................
Reconciliation of Ex enses er Audited Financial Statements with Ex
bl
b2
b3
Total expenses and losses per audited financial statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts included on line a but not on Part I, line 17:
1 Donated services and use of facilities. . . . . . . . . . . . . . . . .
2Prior year adjustments reported on Part I, line 20. . . . . .
3Losses reported on Part I, line 20. . . . . . . . . . . . . . . . . . . . .
40ther (specify): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
a
b
b4
c
d
Add lines bl through b4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line b from line a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amounts included on Part I, line 17, but not on line a:
1 Investment expenses not included on Part I, line 6b............................ dl
20ther (specify):
d2
Page 5
2,764.
2,764.
2,764.
8,381.
8,381.
Add lines dl and d2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .............................
e Total expenses (Part I, line 17). Add lines c and d....................,............................ e 8,381.
tl:'ii&l~1I11 Current Officers, Directors, Trustees, and Key Employees (List each person who was an officer, director, trustee,
or key employee at any time during the year even if they were not compensated.) (See the instructions.)
(B) Title and average hours (C) Compensation (0) Contributions to (E) Expense
(A) Name and address per week devoted (if not paid, employee benefit account and other
to position enter -0-) plans and deferred allowances
compensation plans
PHILLIP WENTE CEO O. o. o.
----------------------
5565 TESLA ROAD 0
----------------------
LIVERMORE, CA 94550
LINDA TODD SECRETARY O. O. O.
----------------------
5000 HOPYARD ROAD 0
----------------------
PLEASANTON, CA 94588
M. WELDON MORELAND CFO O. O. O.
----------------------
1424 CONCANNON BLVD 0
----------------------
LIVERMORE, CA 94550
---------------------
---------------------
---------------------
---------------------
---------------------
---------------------
BAA
TEEA0105L 10117/05
Farm 990 (2005)
Form 990 (2005) TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
,I~rt:l;;;~,i Current Officers, Directors, Trustees, and Ke Em 10 ees (continued)
75a Enter the total number of officers, directors, and trustees permitted to vote on organization business as board meetings. ~ _3_ _ _ _ _ _ _ _ _ _
b Are any officers, directors, trustees, or key employees listed in Form 990, Part V -A, or highest compensated employees
listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed in Schedule
A, Part II.A or II-B, related to each other through family or business relationships? If 'Yes,' attach a statement that
identifies the individuals and explains the relationship(s) . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . , . . , , . . . , . , . 75 b
c Do any officers, directors, trustees, or key employees listed in form 990, Part V-A, or highest compensated employees
listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed in Schedule
A, Part II-A or II-B, receive compensation from any other organizations, whether tax exempt or taxable, that are related
to this organization through common supervision or common control? . . . . . . . . . , , . . . . . ' . . . . . . , . . , . . . . . . , 75c
Note. Related organizations include section 509(a)(3) supporting organizations.
If 'Yes,' attach a statement that identifies the individuals, explains the relationship between this organization and the
other organization(s), and describes the compensation arrangements, including amounts paid to each individual by each
related organization
d Does the organization have a written conflict of interest policy? . . . . . . . . . . . . . . . . .. . . . . , . . . . . . , . . . . . . . .. ,..,......... 75d X
lilii,~~S}i; Former Officers, Directors, Trustees, and Key Employees That Received Compensation or Other
Benefits (If any former officer, director, trustee, or key employee received compensation or other benefits (described below)
during the year, list that person below and enter the amount of compensation or other benefits in the appropriate column. See
the instructions,)
(A) Name and address
(8) Loans and
Advances
(C) Compensation
(0) Contributions to
employee benefit
plans and deferred
compensation plans
Other Information (See the instructions)
76 Did the organization engage in any activity not previously reported to the IRS? If 'Yes,'
attach a detailed description of each activity. . . . . . . , . . . . . . , . . . . . . . . . . . . . . . . . . , . . . . , " ,..,......... ..,.. . . . . . . , . . .
77 Were any changes made in the organizing or governing documents but not reported to the IRS? . . . . . . . , . . . . . . . . . .
If 'Yes,' attach a conformed copy of the changes.
78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? . .
b If 'Yes,' has it filed a tax return on Form 990-T for this year? . . . . . . . . , . . . , . . . , . . . ' . . . . . . . . . . . . . . . , . . . , . . . . . . . .
79 Was there a liquidation, dissolution, termination, or substantial contraction during the
year? If 'Yes,' attach a statement. . , . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . ,
80a Is the organization related (other than by association with a statewide or nationwide organization) through common
membership, governing bodies, trustees, officers, etc, to any other exempt or nonexempt organization? , . . . . . .
b If 'Yes,' enter the name of the organization ~ N/A
_______________________~~~~~~-~d~~k~~Th;rt~-D~~~~;--D~~~~pl
81 a Enter direct and indirect political expenditures. (See line 81 instructions.)......, 81 a O.
b Did the organization file Form 1120-POL for this year? . . . . . . . , . .. ,..........".....,.,... . . , , . . . . . .
BAA
TEEAOl 06L 11/03/05
(E) Expense
account and other
allowances
94-3227787
Form 990 (2005) TRI - VALLEY BUS CNCL EDUC. COLLABORATIVE
Other Information (continued)
82 a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at
substantially less than fair rental value? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 7
Yes No
82a
x
b If 'Yes,' you may indicate the value of these items here. Do not include this amount as
revenue in Part I or as an expense in ParI II. (See instructions in Part 111.).......... 82b N/A
83a Did the organization comply with the public inspection requirements for returns and exemption applications?
b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? . . . . . . . . . . . .
84a Did the organization solicit any contributions or gifts that were not tax deductible? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b If 'Yes.' did the or~anization include with every solicitation an express statement that such contributions or gifts were
not tax deductible, ........................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85 501 (c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members? . . . . . . . . . . . . . . . . . . . . . . . . .
b Did the organization make only in-house lobbying expenditures of $2,000 or less? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a
waiver for proxy tax owed for the prior year.
e Dues, assessments, and similar amounts from members. . . . . . . . . . . . . . . . . . . . . 8Se N/A
d Section 162(e) lobbying and political expenditures. . . . . . . . . . . . . . . . . . . . 8Sd N/A
e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices........ 8Se N/A
f Taxable amount of lobbying and political expenditures (line 85d less 85e). . . . . . . . . . . . . . . .. 8Sf N/A
9 Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? . . . . . . . . . . . . . . . . . . . . . . . . .
h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of
dues allocable to nondeductible lobbying and polilical expenditures for the following tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86 501 (c) (7) organizations. Enter: a Initiation fees and capital contributions included on
line 12............................................................................ 86a N/A
b Gross receipts, included on line 12, for public use of club facilities................... 86b N/A
87 501(c)(72) organizations. Enter: a Gross income from members or shareholders....... 87a N/A
b Gross income from other sources, (Do not net amounts due or paid to other sources
against amounts due or received from them.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87b N/A
88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership,
or an entity disregarded as separate from the organization under Regulations sections 301,7701-2 and 301.7701-3?
If 'Yes.' complete Part IX . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89a 50 I (c)(3) organizations. Enter: Amount of tax imposed on the organization during the year under:
section 4911 · _ _ _ _ _ _ _ _ _ .Q.:.. ; section 4912. _ _ _ _ _ _ _ _ _..9 ~ ; section 4955._ _ _ _ _ _ _ _ _ ..9 ~
b 50 I (c)(3) and 501 (c) (4) organizations. Did the organization engage in any section 4958 excess benefit transaction
during the year or did it become aware of an excess benefit transaction from a prior year? If 'Yes.' attach a statement
explaining each transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89b X
e Enter: Amount of tax imposed on the organization managers or disqualified persons during the
year under sections 4912,4955, and 4958. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ~ O.
d Enter: Amount of tax on line 89c, above, reimbursed by the organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ~ 0 .
90a List the states with which a copy of this return is filed. NONE
b Number of employees employed in the pay period that in~ude~ 'M;rZh 12. 2005- (S~ in;t~cti~n;.)-: :-: :-: :-: .-: .-: :-: .-: .~ .~ .-~T - - - - 0
91 a The books are in care of · _M..:. _ W_E'!"1201t ~O_R,g:~~Nfl_ _ _ _ _ _ _ _ _ Telephone number. In.5) _14J.= ~l_O.Q _ _ _ _ _ _
Located at · Jj~4_ ~QN_C~~N_O!LB_LYI2.__L~I_V,g:gM_OB]~-,- ~~,_ _ _ _ __ _ _ _ _ _ _ _ _ _ __ ZIP + 4 · .Jj~5_0_ _ _ _ _ _ __
b At any time during the calendar year, did the organization have an interest in or a signature or other authority over a
financial account in a foreign country (such as a bank account, securities account, or other financial account)? . . . . . . . .
If 'Yes,' enter the name of the foreign country. . ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
See the instructions for exceptions and filing requirements for Form TD F 90.22.1, Report of Foreign Bank and
Financial Statements
e At any time during the calendar year, did the organization maintain an office outside of the United States?.....
If 'Yes.' enter the name of the foreign country.. ~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
92 Section 4947(a)(7) nonexempt charitable trusts filing Form 990 in lieu of Form 7047 - Check here. . . . . . . . . . . . . . . . . . N/A.
and enter the amount of tax-exempt interest received or accrued during the tax year. . . . . . . . . . . . . . . ~~
BAA
TEEAO 1 07l 02/03/06
~D
N/A
Form 990 (2005)
Note: Enter gross amounts unless
otherwise indicated.
Form 990 (2005) TRI - VALLEY BUS CNCL EDUC. COLLABORATIVE
Anal sis of Income-Producin Activities (See the instructions.)
Unrelated business income Excluded by section 512,513, or 514
(A) (B) (C) (D)
Business code Amount Exclusion code Amount
94-3227787
Page 8
93 Program service revenue:
a
b
c
d
e
f Medicare/Medicaid payments. . . .
9 Fees & contracts from government agencies, . .
94 Membership dues and assessments. .
95 Interest on savings & temporary cash invmnts. .
96 Dividends & interest from securities. .
97 Net rental income or (loss) from real estate:
a debt-financed property. . . . . . . . . . . .
b not debt-financed property. . . . . . . . .
98 Net rental income or (loss) from pers prop. . .
99 Other investment income. . . . . . , . . . . .
100 Gain or (loss) from sales of assets
other than inventory. . . . . . . . . . . . . . . . .
101 Net income or (loss) from special events. . . . .
1 02 Gross profit or (loss) from sales of inventory. . . . .
103 Other revenue: a
b
(E)
Related or exempt
function income
3
244.
c
d
-189,432.
e
104 Subtotal (add columns (B), (D), and (E)) . . . , .
105 Total (add line 104, columns (B), (D), and (E))...................................................... ~
Note: Line 705 plus line 7d, Part I, should equal the amount on line 72, Part I.
Relationshi of Activities to the Accom lishment of Exem t Pur oses (See the instructions.)
Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment
of the organization's exempt purposes (other than by providing funds for such purposes).
244.
-189,432.
-189,188.
....
N/A
Information Re ardin Taxable Subsidiaries and Disre arded Entities (See the instructions.)
(A) (B) (C) (D) (E)
Name, address, and EIN of corporation, Percentage of Nature of activities Total End-of-year
partnership, or disregarded entity ownership interest income assets
N/A %
s-
o
!J.
0
!J.
0
Information Re ardin Transfers Associated with Personal Benefit Contracts (See the instructions.)
a Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? . . . . . . . . . . . . . . .. Byes
b Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? . . . . . . . . . . Yes
Note: If 'Yes' to (b), file Form 8870 and Form 4720 (see instructions)
Under penalties of pe'Jur~, I declare that I have examined this return, Including accompanying schedules and statements, and to the best of my knowledge and belief, it is
true, correct, and comple e. Declaration of preparer (other than officer) is based on all Information of which pre parer has any knowledge.
Please ~ I
Sign Signature of officer Date
Here ~ M. WELDON MORELAND, CFO
Type or print name and title.
Paid rDate Check if !XlI Preparer's SSN .or PTIN (See
Pre parer's self. Generallnstructlon W)
Pre- signature ~ M. WELDON MORELAND 9/12/06 employed .. X N/A
parer's Firm's name (or M.W. MORELAND, C.P.A.
Use yours if self- ~ 1424 CONCANNON BLVD, BLDG G .. N/A
employed) , EIN
Only address, and LIVERMORE, CA 94550 .. (925) 449-0100
ZIP + 4 Phone no.
~No
~No
BAA
TEEA0108L 10/18/05
Form 990 (2005)
Department of the Treasury
Internal Revenue Service
Name of the organization
Organization Exempt Under
Section 501 (c)(3)
(Except Private Foundation) and Section 501 (e), 501 (f), SOl(k),
501(n), or 4947(a)(1) Nonexempt Charitable Trust
Supplementary Information - (See separate instructions.)
~ MUST be completed by the above organizations and attached to their Form 990 or 990-EZ.
Employer identification number
\-
SCHEDULE A
(Form 990 or 990-EZ)
-o~",,~
III \jj'i~~
....",,_.J
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees
(See instructions. List each one. If there are none, enter 'None.')
(a) Name and address of each (b) Title and average
employee paid more hours per week
than $50,000 devoted to position
(c) Compensation
(d) Contributions
to employee benefit
plans and deferred
compensation
(e) Expense
account and other
allowances
-------------------------
NONE
-------------------------
-------------------------
-------------------------
------------------~------
Total number of other employees paid
over $50,000 . . . . . . . . . . . . ., . . . . . . . . . . . , . . . . . , . ~ 0
Compensation of the Five Highest Paid Independent Contractors for Professional Services
(See instructions. List each one (whether individuals or firms). If there are none, enter 'None.')
(a) Name and address of each independent contractor paid more than $50,000
(b) Type of service
(c) Compensation
----------------------------------------
NONE
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
Total number of others receiving over
$50,000 for professional services. . . . . . . .. ~ 0
Compensation of the Five Highest Paid Independent Contractors for Other Services
(List each contractor who performed services other than professional services, whether individuals or firms. If there are none,
enter 'None.' See instructions.)
(a) Name and address of each independent contractor paid more than $50,000
(b) Type of service
(c) Compensation
----------------------------------------
NONE
----------------------------------------
----------------------------------------
----------------------------------------
----------------------------------------
Total number of other contractors receiving
over $50,000 for other services. . . . . . . . . .. ~ 0
BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ.
Schedule A (Form 990 or 990-EZ) 2005
TEEA0401 L 08/09/05
Schedule A (Form 990 or 990-EZ) 2005
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
94-3227787
Statements About Activities (See instructions.)
1 During the year, has the organization attempted to influence national, state, or local legislation, including any attempt
to influence public opinion on a legislative matter or referendum? If 'Yes,' enter the total expenses paid
or incurred in connection with the lobbying activities. . .. ~ $ N/A
(Must equal amounts on line 38, Part VI-A, or line i of Part Vi-B.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Organizations that made an election under section 501 (h) by filing Form 5768 must complete Part VI-A, Other
organizations checking 'Yes' must complete Part VI.B AND attach a statement giving a detailed description of the
lobbying activities.
2 During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any
substantial contributors, trustees, directors, officers, creators, key employees, or members of their families, or with any
taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or prinCipal
beneficiary? (If the answer to any question is 'Yes,' attach a detailed statement explaining the transactions.)
a Sale, exchange, or leasing of property? . .. . . . . .
b Lending of money or other extension of credit? . .
c Furnishing of goods, services, or facilities? . . . . .
d Payment of compensation (or payment or reimbursement of expenses if more than $1 ,OOO)? . . . . .
e Transfer of any part of its income or assets? . . . . . . , . . . . . . . . , . , . , . . . . . . . . . . . . , . . , . . . , , . . , . . .. .... . . . , . . . . . . . . , , . . .
3a Do you make grants for scholarships, fellowships, student loans, etc? (If 'Yes,' attach an
explanation of how you determine that recipients qualify to receive payments.). . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
b Do you have a section 403(b) annuity plan for your employees? . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c During the year, did the organization receive a contribution of qualified real property interest under section 170(h)?....
4a Did you maintain any separate account for participating donors where donors have the right to provide advice
on the use or distribution of funds? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . .
b Do you provide credit counseling, debt management, credit repair, or debt negotiation services? . . . . , . . . . . . . . . . . . . . . . .
l'I'I'fiaf't\.~I!iiw,i~. Reason for Non-Private Foundation Status (See instructions.)
Page 2
Yes No
x
2a
x
2b
x
2c
x
2d
x
2e
x
3a
3b
3c
x
X
X
X
X
4a
4b
The organization is not a private foundation because it is: (Please check only ONE applicable box.)
5 ~ A church, convention of churches, or association of churches. Section 170(b)(1 )(A)(i).
6 A school. Section 170(b)(1 )(A)(ii). (Also complete Part V.)
7 A hospital or a cooperative hospital service organization. Section 170(b)(1 )(A)(iii).
8 A Federal, state, or local government or governmental unit. Section 170(b)(1)(A)(v).
9 A medical research organization operated in conjunction with a hospital. Section 170(b)(1 )(A)(iii). Enter the hospital's name, city,
and state .. , _ _ _ _ _ _ _
10 D An organizatio~ op~~ed fo;:- the-b~n~fit ~f ~ ~oli~; ;; ~niv;r~ty ;-w~;d ~;-ope~ated by-a g;;v;r;;-;;-e;;-t~ ~nit,-S~cti~ 170(b)(1 )(A)(iv).
(Also complete the Support Schedule in Part IV-A.)
11 a ~ An organization that normally receives a substantial part of its support from a governmental unit or from the general public.
Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part IV-A.)
11 b D A community trust. Section 170(b)(1 )(A)(vi). (Also complete the Support Schedule in Part IV-A.)
12 D An organization that normally receives: (1) more than 33-1/3% of its support from contributions, membership fees, and gross receipts
from activities related to its charitable, etc, functions - subject to certain exceptions, and (2) no more than 33-113% of its support
from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the
organization after June 30, 1975. See section 509(a)(2). (Also complete the Support Schedule in Part IV -A.)
13 D An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations
described in: (1) lines 5 through 12 above; or (2) section 501 (c) (4) , (5), or (6), if they meet the test of section 509(a)(2), Check the
box that describes the type of supporting organization: .. D Type 1 D Type 2 0 Type 3
Provide the following information about the supported organizations. (See instructions.)
(a) Name(s) of supported organization(s)
(b) Line number
from above
~ An organization organized and operated to test for public safety. Section 509(a)(4). (See instructions.)
BAA TEEA0402L 08/09/05 Schedule A (Form 990 or Form 990-EZ) 2005
Schedule A (Form 990 or 990-EZ) 2005 TRI -VALLEY BUS CNCL EDUC. COLLABORATI 94-3227787
~ea~,:IMtlisi\l Support Schedule (Complete only if you checked a box on line 10, 11, or 12.) Use cash method of accounting.
Note: You may use the worksheet in the instructions for converting from the accrual to the cash method of accounting.
Calendar year (or fiscal year (a) (b) (c) (d)
beginning in). . . . . . . . . . . . . . . . . . . .. ~ 2004 2003 2002 2001
15 Gifts, grants, and contributions
received. (Do not include
unusual grants. See line 28.)... 231,207. 139,810. 57,543.
16 Membership fees received. . . . .
17 Gross recei pts from admissions,
merchandise sold or services performed,
or furnishing of facilities in any activity
that is related to the organization's
charitable, etc, purpose. . . . . . . . . . . . .
18 Gross income from interest, dividends,
amounts received from payments on
securities loans (section 512(a)(5)),
rents, royalties, and unrelated business
taxable income (less section 511 taxes)
from businesses acquired by the organ-
ization after June 30,1975.... ...,...
Page 3
(e)
Total
428,560.
O.
-187,626.
-161,641.
-108,466.
-457,733.
956.
1,199.
3,697.
5,852.
19 Net income from unrelated business
activities not included in line 18. . . . . . .
20 Tax revenues levied for the
organization's benefit and
either paid to it or expended
on its behalf. . . . . . . . . . . . . . , . . . .
21 The value of services or
facilities furnished to the
organization by a governmental
unit without charge, Do not
include the value of services or
facilities generally furnished to
the public without charge. . . . . . .
22 Other income. Attach a
schedule. Do not include
gain or (loss) from sale of
capital assets. . . . . . . . . . . . . . . . .
23 Total of lines 15through22.... 44,537. -20,632.
24 Line 23 minus line 17.......... 232,163. 141,009.
25 Enter1%ofline23............ 445. -206.
26 Organizations described on lines 10 or 11: a Enter 2% of amount in column (e), line 24. . . . . . . . . . . . . . .
b Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental unit or publicly
supported organization) whose total gifts for 2001 through 2004 exceeded the amount shown in line 26a. Do not file this list with your
return. Enter the total of all these excess amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~
c Total support for section 509(a)(1) test: Enter line 24, column (e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Add: Amounts from column (e) for lines: 18 5,852. 19
D ~b
e Public support (line 26c minus line 26d total). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .
f Public support percentage (line 26e (numerator) divided by line 26c (denominator)) . . . . . . . . . . . . . . . . . . . .
27 Organizations described on line 12: N/A
a For amounts included in lines 15,16, and 17 that were received from a 'disqualified person,' prepare a list for your records to show the
name of, and total amounts received in each year from, each 'disqualified person.' Do not file this list with your return. Enter the sum of
such amounts for each year:
(2004) _ _ _ _ _ _ _ _ _ _ _ _ (2003) _ _ _ _ _ _ _ _ _ _ _ _ (2002) _ _ _ _ _ _ _ _ _ _ _ _ (2001) _ _ _ _ _ _ _ _ _ _ _ __
bFor any amount included in line 17 that was received from each person (other than 'disqualified persons'), prepare a list for your records
to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2)
$5,000. (Include in the list organizations described in lines 5 through 11 b, as well as Individuals.) Do not file this list with your return.
After computing the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these
differences (the excess amounts) for each year:
(2004) _ _ _ _ _ _ _ _ _ _ _ _ (2003) _ _ _ _ _ _ _ _ _ _ _ _ (2002) _ _ _ _ _ _ _ _ _ _ _ _ (2001) _ _ _ _ _ _ _ _ _ _ _ __
c Add: Amounts from column (e) for lines: 15 16
17 20 ~
d Add: Line 27a total. . . . and line 27b total. . . . . .
e Public support (line 27c total minus line 27d total). . . . . . . . . . . . . . . . . . . . . . . . . . . .
f Total support for section 509(a)(2) test: Enter amount from line 23, column (e). .. ~ 27f
g Public support percentage (line 27e (numerator) divided by line 27f (denominator)).
h Investment income ercenta e (line 18, column (e) (numerator) divided by line 27f (denominator)) ~ %
28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 2001 through 2004, prepare a
list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief description of the
nature of the grant. Do not file this list with your return. Do not include these grants in line 15.
BAA TEEA0403L 02/03/06
o.
o.
o.
O.
-23,321.
434,412.
~
434 412.
26d
~ 26e
~ 26f
5,852.
428,560.
98.65 %
27c
27d
~ 27e
Schedule A (Form 990 or 990-EZ) 2005
Schedule A (Form 990 or 990-EZ) 2005 TRI -VALLEY BUS CNCL EDUC. COLLABORA
l"III[;Ii'~jli:i,:)il Private School Questionnaire (See instructions.) .
(To be completed ONLY by schools that checked the box on line 6 In Part IV)
94-3227787
Pag",
N/A
31 Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during
the period of solicitation for students, or during the registration period if it has no solicitation program, In a way that
makes the policy known to all parts of the general community it serves? . _ . . , . , . . , . . . . . . . . . . . . . . . . . . . . . . . . - . . . . - . . . , .
If 'Yes,' please describe; if 'No,' please explain. (If you need more space, attach a separate statement.)
29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws,
other governing instrument, or in a resolution of its governing body? . . . . . . . . . . . . . . . . . . . . , . . . . . . ' , . . . , . . , . . . . . . . . . . . .
30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures,
catalogues, and other written communications with the public dealing with student admissions, programs,
and scholarships? . . . , . . . . . . . _ ' . . . . . . . ' . , . . . , . . . . . . . . . . . . . . . . . . . . ' . . , , . . . . . . . . . , . . . . . . ,
32 Does the organization maintain the following:
a Records indicating the racial composition of the student body, faculty, and administrative staff? . . . . . . . .
b Records documenting that scholarships and other financial assistance are awarded on a racially
nondiscriminatory basis? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . , . . . . . . . . . . . . . , . . ,
32a
32b
c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing
with student admissions, programs, and scholarships? . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32c
d Copies of all material used by the organization or on its behalf to solicit contributions? . , . . . . . . . . , . . . . . . , . . . . . . . , 32d
If you answered 'No' to any of the above, please explain. (If you need more space, attach a separate statement.)
33 Does the organization discriminate by race in any way with respect to:
a Students' rights or privileges? . . . . .
33a
b Admissions policies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . '
33b
c Employment of faculty or administrative staff? . .
33c
d Scholarships or other financial assistance?
33d
e Educational policies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33e
f Use of facilities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . ,
33f
g Athletic programs? . . . . . . . . . . . . . . . . . . . . . . ,
33g
h Other extracurricular activities? . . .. . . . . . , . . . . .
33h
If you answered 'Yes' to any of the above, please explain. (If you need more space, attach a separate statement.)
34a Does the organization receive any financial aid or assistance from a governmental agency? .
b Has the organization's right to such aid ever been revoked or suspended? . . . . . . . , .
If you answered 'Yes' to either 34a or b, please explain using an attached statement.
35 Does the organization certify that it has complied with the applicable requirements of
sectlons4.01 through 4.05 of Rev Proc 75-50, 1975-2 e.B. 587, covering racial
nondiScriminatIOn? If 'No,' attach an explanation.. . . . . . . . . . . . . . . . '
BAA TEEA0404L 08/08/05
Schedule A (Form 990 or 990-EZ) 2005 TRI-VALLEY BUS CNCL EDUC. COLLABORAT 94-3227787 PageS
IPartVI..:A! Lobbying Expenditures by Electing Public Charities (See instructions.)
(To be completed ONLY by an eligible organization that filed Form 5768) N/A
Check ~ a if the organization belongs to an affiliated group. Check ~ b if you checked 'a' and 'limited control' provisions apply.
(a) (b)
Limits on Lobbying Expenditures Affiliated group To be completed
totals for ALL electing
(The term 'expenditures' means amounts paid or incurred.) organizations
36 Total lobbying expenditures to influence public opinion (grassroots lobbying) .
37 Total lobbying expenditures to influence a legislative body (direct lobbying) . . . . . . .
38 Total lobbying expenditures (add lines 36 and 37) . . . . . . . . . . . . .
39 Other exempt purpose expenditures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40 Total exempt purpose expenditures (add lines 38 and 39). . . . . . . . . . . . . . . . .
41 Lobbying nontaxable amount. Enter the amount from the following table -
If the amount on line 40 is - The lobbying nontaxable amount is -
Not over $500,000. . . . . . . . . . . . . . . . .. ... 20% of the amount on line 40. . . tl
Over $500,000 but not over $1,000,000. ......... $100,000 plus 15% of the excess over $500,000
Over $1,000,000 but not over $1,500,000. ........ $175,000 plus 10% of the excess over $1,000,000
Over $1,500,000 but not over $17,000,000, . . . . . . .. $225,000 plus 5% of the excess over $1,500,000
Over $17,000,000. . . . . . . . . " ........ $1,000,000................... ...
42 Grassroots nontaxable amount (enter 25% of line 41).......................
43 Subtract line 42 from line 36. Enter -0- if line 42 is more than line 36. . . . . . . . . . . . . . . .
44 Subtract line 41 from line 38, Enter -0- if line 41 is more than line 38. . . . . . . . . . . . . . . .
Caution: If there is an amount on either line 43 or line 44, you must file Form 4720.
4 -Year Averaging Period Under Section 501 (h)
(Some organizations that made a section 501 (h) election do not have to complete all of the five columns below.
See the instructions for lines 45 through 50.)
Lobbying Expenditures During 4 -Year Averaging Period
Calendar year (a)
(or fiscal year 2005
beginning in) ~
45 Lobbying nontaxable
amount, . . . . . . . . . . . . .
46 Lobbying ceiling amount
(150% of line 45(e)). .....
47 Total lobbying
expenditures. . . . . . . . .
48 Grassroots non-
taxable amount. . . . . . .
49 Grassroots ceiling amount
(150% of line 48(e)). . . . . .
(b)
2004
(c)
2003
(d)
2002
(e)
Total
50 Grassroots lobbying
expenditures. . . . . . . . .
PartVI..B Lobbying Activity by Nonelecting Public Charities
(For reporting only by organizations that aid not complete Part VI-A) (See instructions,)
During the year, did the organization attempt to influence national, state or local legislation, including any
attempt to influence public opinion on a legislative matter or referendum, through the use of:
a Volunteers. . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Paid staff or management (Include compensation in expenses reported on lines c through h.).
c Media advertisements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Mailings to members, legislators, or the public. . . . . . . . . . . . . . . . . . . . . . .
e Publications, or published or broadcast statements. . . . . . . . . . . . . . .
f Grants to other organizations for lobbying purposes. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g Direct contact with legislators, their staffs, government officials, or a legislative body. . . .
h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means. .
i Total lobbying expenditures (add lines c through h.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If 'Yes' to any of the above, also attach a statement giving a detailed description of the lobbYing activities,
BAA Schedule A (Form 990 or 990-EZ) 2005
N/A
Yes No Amount
TEEA0405L 08/08/05
Schedule A (Form 990 or 990-EZ) 2005 TRI-VALLEY BUS CNCL EDUC. COLLABORA 94-3227787 Page 6
Ilillt.I,I~lillnformation Regarding Transfers To and Transactions and Relationships With Noncharitable
Exempt Organizations (See instructions)
51 Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section 501 (c)
of the Code (other than section 501 (c)(3) organizations) or in section 527, relating to political organizations?
a Transfers from the reporting organization to a noncharitable exempt organization of: Yes No
(i) Cash. . . . . . . . . . . . . . . . . . . . . . . . .".. . .,.,...,............,....,.. . ........,.,... . .....,.,..,.. . .. . ........, . 51 a (i) X
(ii)Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,., . . . ... , ".. . . . ....... . ,...... . a (ii) X
b Other transactions:
(i)Sales or exchanges of assets with a noncharitable exempt organization. .... . . . ,...., . ...... . .,. . ,..."...... . b (i) X
(ii)Purchases of assets from a noncharitable exempt organization ...... , . . ..... . . . ,.., . ,.,... . .. . ....,...... . b (ii) X
(iii)Rental of facilities, equipment, or other assets. . . . . . . . . . . . . .. . ,..... . .,..., . . . . . . . .. . ",...... . . . ... , .....,. . b (iii) X
(iv)Reimbursement arrangements. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . ......... . . . . . ....... . ...... . .,....,. . b (iv) X
(v)Loans or loan guarantees. . . . . . . . . . . . . . . . . ,.................,.... . ........,. , .... . ....... . '" , ... . . . . . . , . . b (v) X
(vi)Performance of services or membership or fundraising solicitations. . . . . .....,..".,. . ,.......,......,.....,. . b (vi) X
c Sharing of facilities, equipment, mailing lists, other assets, or paid employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c X
d If the answer to any of the above is 'Yes,' complete the following schedule. Column (b) should alw~s show the fair market value of
the ~oods, other assets, or services given by the reportin~ or~anization. If the organization receive less than fair market value In
any ransaction or sharing arrangement, show in column d) t e value of the gooas, other assets, or services received:
(a) (b) (c) (d)
Line no. Amount involved Name of noncharitable exempt organization Description of transfers, transactions, and sharing arrangements
N/A
52a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations ~D [R]
described in section 501 (c) of the Code (other than section 501 (c)(3)) or in section 52?? . . . . . . . . . . . . . . . . . . . . . . ... . Yes No
b If 'Yes,' complete the following schedule:
(a) (b) (c)
Name of organization Type of organization Description of relationship
N/A
BAA Schedule A (Form 990 or 990-EZ) 2005
TEEA0406L 08/08/05
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Name of organization
OMB No. 1545-0047
Schedule of Contributors
2005
Supplementary Information for
line 1 of Form 990, 990-EZ and 990-PF (see instructions)
TRI-VALLEY BUS CNCL
Organization type (check one):
Filers of:
Form 990 or 990-EZ
EDUC. COLLABORATIVE
I Employer identification number
94-3227787
Section:
~ 501 (c)( 3 ) (enter number) organization
4947(a)(1) nonexempt charitable trust not treated as a private foundation
527 political organization
Form 990-PF
~ 501 (c)(3) exempt private foundation
4947(a)(1) nonexempt charitable trust treated as a private foundation
501 (c)(3) taxable private foundation
Check if your organization is covered by the General Rule or a Special Rule. (Note: Only a section 507 (c)(7), (8), or (70) organization can check
boxes for both the General Rule and a Special Rule - see instructions)
General Rule -
[R] For organizations filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or property) from anyone
contributor. (Complete Parts I and II.)
Special Rules -
D For a section 501 (c)(3) organization filing Form 990, or Form 990-EZ, that met the 33-1/3% support test under Regulations sections
1.509(a)-3/l,170A-9(e) and received from anyone contributor, during the year, a contribution of the greater of $5,000 or 2% of the amount
on line 1 of these forms. (Complete Parts I and II.)
D For a section 501 (c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from anyone contributor, during the year,
aggregate contnbutlons or bequests of more than $1,000 for use exclusively for religiOUS, charitable, sCientific, literary, or educational
purposes, or the prevention of cruelty to children or animals, (Complete Parts I, II, and III.)
D For a section 501 (c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from anyone contributor, during the year,
some contributions for use exclusively for religious, charitable, etc, purposes, but these contributions did not aggregate to more than
$1,000. (If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable,
etc, purpose. Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexclusively
religious, charitable, etc, contributions of $5,000 or more during the year.). . . . . . , . . . . . . . . . . ' . . . . . . . , . . . . . , . . .. ~ $
Caution: Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule B (Form 990, 990-EZ, or
990-PF) but they must check the box in the heading of their Form 990, Form 990-EZ, or on line 2 of their Form 990-PF, to certify that they do
not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF).
BAA For Paperwork Reduction Act Notice, see the Instructions Schedule B (Form 990, 990-EZ, or 990.PF) (2005)
for Form 990, Form 990-EZ, and Form 990-PF.
TEEA0701 L 02/01/06
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
Page 1 of 1 of Part I
Employer identification number
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
94-3227787
Contributors (See Specific Instructions.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
1 CITY OF LIVERMORE Person B
- r-------------------------------------
Payroll
1052 S. LIVERMORE AVE. $ _ _ _ _ _ _3J L~O..9_=_ Noncash
r-------------------------------------
~lY~~Q~~-~~~~~~~---------------------- (Complete Part II if there
is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
2 CITY OF DUBLIN Person B
- r-------------------------------------
Payroll
100 CIVIC CENTER PLAZA $ _ _ _ _ _ _1..9LQ9..9_=_ Noncash
~-------------------------------------
DUBLIN, CA 94568, (Complete Part II if there
~------------------------------------- is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
3 TOWN OF DANVILLE Person B
- r-------------------------------------
Payroll
510 LA GONDA WAY $ _ _ _ _ _ _3..?LQ.0..9_=_ Noncash
~-------------------------------------
DANVILLE, CA 94526, (Complete Part II if there
-------------------------------------- is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
4 CITY OF PLEASANTON Person B
- ~-------------------------------------
Payroll
-------------------------------------- $ _ _ _ _ _ _3J L ~0..9_=_ Noncash
(Complete Part II if there
J_____________________________________ is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
5 ALAMEDA COUNTY Person B
- -------------------------------------
Payroll
------------------------------------- $ ______2jL~5J_=_ Noncash
(Complete Part II if there
, ------------------------------------- is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
6 GOVERNMENT ACH DEP Person B
- -------------------------------------
Payroll
------------------------------------- $ _ _ _ _ _ _ ..? L Q.0..9_=_ Noncash
(Complete Part II if there
, ------------------------------------- is a noncash contribution.)
BAA
TEEA0702L 08/08/05
Schedule B (Form 990, 990-EZ, or 990.PF) (2005)
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
Page 1
of 1
of Part II
Employer identification number
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
94-3227787
Noncash Property (See Specific Instructions.)
(a) (b) (c) Cd)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
N/A
~----------------------------------------
- ~----------------------------------------
~----------------------------------------
~---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
~----------------------------------------
- ~----------------------------------------
~----------------------------------------
~---------------------------------------- $ ----------- ---------
(a) . . (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
~----------------------------------------
- ~----------------------------------------
~----------------------------------------
~---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
~----------------------------------------
- ~----------------------------------------
~----------------------------------------
~---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
-----------------------------------------
- -----------------------------------------
-----------------------------------------
----------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
----------------------------------------
- -----------------------------------------
----------------------------------------
---------------------------------------- $ ----------- ---------
BAA
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
TEEA0703L 08/08/05
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
Page 1
of 1
of Part III
Employer identification number
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
Exclusive~religious, charitable, etc, individual contributions to section 501 (c)(7), (8), or (10)
organizations aggregating more than $1,000 for the year (Complete cols (a) through (e) and the following line entry.)
For ol-ganizations completing Part III, enter total of exclusively religious, charitable, etc,
contributions of $1,000 or less for the year. (Enter this information once - see instructions.).
~$
N/A
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
N/A - - - -- - - - - --
1--- -- - - -- -- - - - - - -- --- ---- - - -- --- - -- - - - -- - - - -- - - ---
- !-- - - - - - - - - -- -- - - - - - -- -- --- - --- -- -- ---- - -- -- -- -- - -- - ----- - - - --.
1-- - - - - - -- - -- -- - - - - --- - -- -- - --- -- - ----- - -- ---- -- - - - - ----- -- - --.
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
~--- - -- -- -- - - - -- ----- - - - -- ---- -- - -- - -- -- - - -- - -- - - -- - - - ---- - - -
---- - -- - - - -- - - -- - -- -- - - -- - -- -- --- - - - ---- - - - -- - - - - - - - -- ---- - - -
---- - -- - - - -- - - -- - -- --- - --- -- ----- - - - - --- - - - -- - -- - -- - ------ - - -
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
-- - -- - -- - - -- -- - - - ---- - - -- - - --- -- - --- - - -- - --- - -- - - - - -- --- -- - - -.
- -- - -- - - - - - ---- - - ----- - - -- - ---- - - - ---- -- -- --- - -- - - - - - - --- -- - - -.
--- - - -- -- - - - -- -- ----- - - - - - ---- -- - ---- -- - - -- - - - - - - ---- --- -- - - -.
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
-- - - - - -- - - ---- - - - -- -- - - -- - - --- -- - -- - ---- - --- - -- - - - - -- ----- - - -.
-- - - - - -- - - ---- - - ----- - - - - - - --- -- - -- - -- - - - -- - - ---- - - - - ----- - - -
-- - -- -- -- - - - -- -- - ---- - - - -- -- ---- - -- - --- - - -- - - -- - - -- ----- - - - - -
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
- - - - - --- - ---- - - - ---- - - - - - - --- -- - --- - -- - - -- - - --- - - - - - - --- -- - -
- - - -- - - -- - ---- -- --- -- - - -- - -- ---- - ---- --- - -- - - - -- - - - -- ----- - - -
- - - - - - -- - -- - - -- - -- -- -- ------- - - - -- - - --- - - --- --- - - - -- ---- - - --
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
--- - - -- - - -- - - -- - -- -- -- --- - - -- - - - -- - --- - - - --- --- - - - -- -- - - - - --
- -- - --- - - -- - - -- - -- -- -- --- - --- -- - -- - -- - - - - -- - -- - - - --- --- - - -- -
--- - - -- - - --- - -- - - -- - -- - -- - --- -- - -- - -- - - - -- - - -- - - - -- - --- -- - - -
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
- - - - - - -- - - - - - -- - -- -- - - - -- - - --- - - - - - - -- - - - - -- --- - - - - - --- - - - - -.
- - - - - - -- - - -- - - -- - -- -- -- -- - - - -- - - - --- - -- - - -- - - -- - - - -- - ---- - - - -
-- - - - -- - - -- -- - - - - --- -- -- - - --- - - ---- - -- - - -- - - -- -- - -- - ---- - - - -
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
- - -- - - -- - -- - - -- - -- --- - --- -- -- - - - - - - -- - - - -- - - -- - - - - - - --- - - - - -
- - - - -- - - - -- - - -- - - - - --- - - - - --- - - - -- - -- - - - -- - - -- - - - -- - ---- -- - -
--- - - -- - - -- - - -- - ---- - - - - - - - -- -- - -- - -- - - - -- - - - -- - - -- - - -- - - - - -
BAA
Schedule B (Form 990, 990.EZ, or 990.PF) (2005)
TEEA0704L 08/15/05
2005 FEDERAL STATEMENTS PAGEl
CLIENT 20024 TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
9/12/06 10:14AM
STATEMENT 1
FORM 990, PART I, LINE 9
NET INCOME (LOSS) FROM SPECIAL EVENTS
LESS LESS NET
GROSS CO NrRI - GROSS DIRECT I N::O ME
SPECIAL EVE NrS RECEIPTS BUTIO N3 REVE NUE EXPEN3ES (LOSS)
VIS 10 N PROJECT 119,952. 119,952. O. 126,283. -126,283.
TRI VALLEY HOUSI N; OPPORTUNITY
72,00l. 72,000. l. 60,036. -60,035.
TTEC 12,800. O. 12,800. 16,976. -4,176.
STATE OF CAL UN::LAI MED PROPERTY REFUND
1,462. O. 1,462. 400. 1,062.
TO T AL $ 206,215. $ 191,952. $ 14,263. $ 203,695. $ -189,432.
STATEMENT 2
FORM 990, PART IV, LINE 65
OTHER LIABILITIES
....................................,......,..,..........,...,......................,..,... . . . ,....,.. , $ 129,625.
TOTAL $ 129,625.
YEAR
2005
California Exempt Organization
Annual Information Return
FORM
199
1933107
2005, and ending month day year
Final return? Check applicable box. ,0 Yes IKJ No
. 0 Dissolved 0 Withdrawn 0 ~1{~g~/~xep~~~~~i~~?
If a box is checked, enter date.
B ~re~~h\~r~~r: State: 0109 0 100 0100S 0100W Fed: 1KJ990
Fed: 0990EZ o 990T 0990PF 01041 01120H 01120
Corporation/Organization name
94-3227787
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
C If organization is exempt under R&TC Section 23701 d
and is a school, public charity, religious organization,
or is controlled by a religious operation, check box.
See General Instruction F. No filing fee is required.
D Is this a group filing? See General Instruction N. , . . . .. 0 Yes
E Accounting method used. CASH
F Type of X Exempt under Section 23701 12- (insert letter)
LIVERMORE, CA 94550 organization IRC Section 4947(a)(1) trust
Part I Complete Part I unless not required to file this form. See General Instructions Band C.
Address
PMB no,
.0
IKJ No
City
1424 CONCANNON BLVD
State ZIP Code
12 Penalty for failure to file on time, See General Instruction L . . . . . . . . . , . . . . . . . , . . . .. 12
13 Use tax. See instructions. . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , , . . . . . ' , ... 13
14 Balance due. Add line 11, line 12, and line 13................................, ,.,.............,.,... 14
15 If exempt under R&TC Section 23701d, has the organization during the year: (1) participated in any political campaign
or (2) attempted to influence legislation or any ballot measure, or (3) made an election under R& TC Section 23704.5
(relating to lobbying by public charities)? If 'Yes,' complete and attach form FTB 3509, Political or Legislative Activities
by Section 23701 d Organizations. . . . . . . . . . . . . . . . . , . , . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . , . . . . , . . . . . . . . , , . . . . . . . .
16 Did the organization have any changes in its activities, governing instrument, articles of incorporation, or bylaws
that have not been reported to the Franchise Tax Board? If 'Yes,' complete an explanation and attach copies of
revised documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . .
17 Is the organization exempt under R&TC Section 23701 g? . , . . . . . . . . . , . . , . . , . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . .
If 'Yes,' enter amount of gross receipts from nonmember sources. .. $
18 Did the organization file Form 100, Form 100S, lOOW, or Form 109 to report taxable income?,
If 'Yes,' enter amount of total income reported. . .. $
1
2
3
Rece~ts 4
an
Revenues
(Enclose, but 5
do not staple, 6
any payment.)
7
8
Expenses 9
10
11
Filing
Fee
Gross sales or receipts from other sources, From Side 2, Part II, line 8. . . . . . . . . . . , . . . . . . .. .
Gross dues and assessments from members and affiliates. . ' . . . . . . . . . . . . , . . . , . , . . . . . . . .
Gross contributions, gifts, grants, and similar amounts received. See instructions. . . . . . . . SE,E , SCH... . B. . ,. .
Total gross receipts for filing requirement test. Add line 1 through line 3
This line must be completed. If the result is less than $25,000, see General Instruction C.. .
Cost of goods sold. . . , . , . . . . . . . . . . . . , . . . , . . . . . . . . . . . . . . . . . . . . , 5
Cost or other basis, and sales expenses of assets sold. . . . . . . . . , 6
Total costs. Add line 5 and line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ,.....,...,........ 7
Total gross income, Subtract line 7 from line 4 . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . . . . . . . . . 8
Total expenses and disbursements. From Side 2, Part II, line 18........... 9
Excess of receipts over expenses and disbursements, Subtract line 9 from line 8, 10
14,507.
Filing fee $10 or $25. See General Instruction F...........,...,....
............ 11
206,459.
212,076.
-5,617.
10.
10.
OYes
IKJ No
OYes
OYes
IKJ No
IKJ No
OYes
IKJ No
Daytime telephone (925) 449-0100
19 The financial records are in care of. M. WELDON MORELAND
located at 1424 CONCANNON BLVD., LIVERMORE, CA 94550
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Please
Sign
Here
CFO
~ Title
~ Signature of officer
Date
. (925) 449-0100
Daytime telephone
Check Paid preparer's SSN or PTIN
if self.
employed X . 552-84-6714
FEIN
Date
Paid
Preparer's ~
Paid signature
Preparer's
Use Only Firm's name (or
yours, if self-
employed) and
address
M. WELDON MORELAND
M.W. MORELAND, C.P.A.
~ 1424 CONCANNON BLVD, BLDG G
LIVERMORE, CA 94550
9/12/06
. 94-3187785
. Daytime telephone (925) 449- 0 1 0 0
19905104051
CACA1112L 12/02/05 Form 199 Cl 2005 Side 1
For Privacy Act Notice, get form FTB 1131.
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
Part II Organizations with gross receipts of more than $25,000 and private foundations regardless of amount of gross receipts -
complete Part II or furnish substitute information. See Specific Line Instructions.
1 Gross sales or receipts from all business activities. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Interest...................................................... . . . . . . . . . . 2
3 Dividends..........................,.........,.,........... 3
4 Gross rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .......... 4
5 Gross royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Gross amount received from sale of assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Other income. Attach schedule.................................. .sEE. .STATEMENT. .1...... 7
8 Total gross sales or receipts from other sources. Add line 1 through line 7.
Enter here and on Side 1, Part I, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contributions, gifts, grants, and similar amounts paid. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , .
Disbursements to or for members. . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . .
Compensation of officers, directors, and trustees. Attach schedule..... SEE. STATEMENT. .2..
Other salaries and wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . , . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . , . . . . . . . , . . , . . . . . . . , . . . , . . . ,
Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . , . . . . . . . . , . . . . . . . , . , . . . . . . . . . , . . . . . . . . . . . . . . . . . . .
~~........................................................,............"..............
Depreciation and depletion. . . . . . . . . . . . . . . , . . . , . . . . . , . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . .
Other, Attach schedule. , .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' . . .SEE. .STATEMENT .3. . . . , .
Total expenses and disbursements. Add line 9 through line 17. Enter here and on Side 1, Part I, line 9.,
Balance Sheets Beginning of taxable year
(a) (b)
43,188.
244.
Receipts
from
Other
Sources
14,263.
8
9
10
11
12
13
14
15
16
17
18
End of taxable year
(c)
14,507.
Expenses
and
Disburse-
ments
9
10
11
12
13
14
15
16
17
18
Schedule L
Assets
1 Cash.....,...............................
2 Net accounts receivable. . . . . . . . . . , . . . . . . . . .
3 Net notes receivable. Attach schedule. . . . . . . . . . . . . . .
4 Inventories................................
5 Federal and state government obligations. . ,
6 Investments in other bonds, Attach schedule. . . . . . . . . .
7 Investments in stock, Attach schedule. . . . . . . . . . . . . . .
8 Mortgage loans (number of loans. . )
9 Other investments, Attach schedule. . . . . . , . .
10 a Depreciable assets. . . . , . . . . . . . . . , . . . . . . . , . .
b Less accumulated depreciation. . . . . . . . . . . . .
11 Land......................................
12 Other assets. Attach schedule. . . . . . . , . . . . . .
13 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities and net worth
14 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . .
15 Contributions, gifts, or grants payable. . . . . . .
16 Bonds and notes payable. Attach schedule. . . . . . . . . . .
17 Mortgages payable. . . . . . . . . . . . . . . . . . . . . . . . .
18 Other liabilities. Attach schedule. . . . ST. .4. .
19 Capital stock or principle fund. . . . . . .. . . . . . .
20 Paid-in or capital surplus. Attach reconCiliation. . . . . . .
21 Retained earnings or income fund. . . . . . . . . .
22 Total liabilities and net worth. . . . . . . . . . . . . . .
Schedule M-' Reconciliation of income per books with income per return
Do not complete this schedule if the amount on Schedule L, line 13, column (d), is less than $25,000
1 Net income per books. . . . . . . . . . . . . . . . . . . . . - 5, 617 . 7 Income recorded on books this year
2 Federal income tax. . . , . . . . . . . . . . . . . . . . . . . not included in this return.
3 Excess of capital losses over capital gains. Attach schedule. . . , . . . . . . . . .
4 Income not recorded on books this year. 8 Deductions in this return not charged
Attach schedule, . . . . . . . . . . . . . . . , . . , . . , . . . against book income this year.
5 Expenses recorded on books thiS year not deducted Attach schedule. . , . . . , . . . . . . . . . . . . . , .
in thiS return. Attach schedule. . . . . . . . . . . , . . . . . . , 9 Total. Add line 7 and line 8, . . . . . . . . .
6 Total. 10 Net income per return.
Add line 1 through line 5. . . . . . . . . . . . . . . . . . - 5, 617. Subtract line 9 from line 6. . . .
o.
212,076.
212,076.
(d)
37,649.
129,625.
-91,976.
43,188.
37,649.
-5,617.
Side 2 Form 199 C1 2005
19905204051
CACA 1112L 12/02/05
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Name of organization
CALIFORNIA COpy
Schedule of Contributors
Supplementary Information for
line 1 of Form 990, 990-EZ and 990-PF (see instructions)
OMS No. 1545.0047
2005
TRI-VALLEY BUS CNCL EDUC.
Organization type (check one):
Filers of:
Form 990 or 990-EZ
COLLABORATIVE
I Employer identification number
94-3227787
Section:
~ 501 (c)( 3 ) (enter number) organization
4947 (a) (1 ) nonexempt charitable trust not treated as a private foundation
527 political organization
Form 990-PF
E 501 (c)(3) exempt private foundation
4947(a)(1) nonexempt charitable trust treated as a private foundation
501 (c)(3) taxable private foundation
Check if your organization is covered by the General Rule or a Special Rule. (Note: Only a section 507(c)(7), (8), or (10) organization can check
boxes for both the General Rule and a Special Rule - see instructions.)
General Rule -
[R] For organizations filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or property) from anyone
contributor, (Complete Parts I and II.)
Special Rules -
o For a section 501 (c)(3) organization filing Form 990, or Form 990-EZ, that met the 33-1/3% support test under Regulations sections
1 .509(a)-3/1.170A-9(e) and received from anyone contributor, during the year, a contribution of the greater of $5,000 or 2% of the amount
on line 1 of these forms. (Complete Parts I and II.)
o For a section 501 (c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from anyone contributor, during the year,
aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, scientific, literary, or educational
purposes, or the prevention of cruelty to children or animals. (Complete Parts I, II, and III.)
o For a section 501 (c) (7) , (8), or (10) organization filing Form 990, or Form 990-EZ, that received from anyone contributor, during the year,
some contributions for use exclusively for religious, charitable, etc, purposes, but these contributions did not aggregate to more than
$1,000. (If thiS box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable,
etc, purpose. Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexclusively
religious, charitable, etc, contributions of $5,000 or more during the year.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ~ $
Caution: Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule B (Form 990, 990-EZ, or
990-PF) but they must check the box in the heading of their Form 990, Form 990-EZ, or on line 2 of their Form 990-PF, to certify that they do
not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF),
BAA For Paperwork Reduction Act Notice, see the Instructions Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
for Form 990, Form 990-EZ, and Form 990-PF.
TEEA0701L 02/01/06
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
1:IBjI1II:i.1 Contributors (See Specific Instructions.)
Page 1 of 1 of Part I
Employer identification number
94-3227787
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
1 CITY OF LIVERMORE Person ~
- -------------------------------------
Payroll
1052 S. LIVERMORE AVE. $ ______3JL~9..9..:. Noncash
-------------------------------------
L1Y~~Q~~_~~~~~~~______________________ (Complete Part II if there
is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
2 CITY OF DUBLIN Person ~
- -------------------------------------
Payroll
100 CIVIC CENTER PLAZA $ _ _ _ _ _ J.JlL<2-0Jl..:. Noncash
-------------------------------------
Dy~~IB~S~_~~~~_________________________ (Complete Part II if there
is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
3 TOWN OF DANVILLE Person ~
- -------------------------------------
Payroll
510 LA GONDA WAY $ _ _ _ _ _ _3-.?L<2-0Jl..:. Noncash
------------------------------------ -
D~~Ibh0_~~_~~~~~______________________ (Complete Part II if there
is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
4 CITY OF PLEASANTON Person E
- -------------------------------------
Payroll
------------------------------------- $ ______3JL~OJl..:. Noncash
(Complete Part II if there
, ------------------------------------- is a noncash contribution,)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
5 ALAMEDA COUNTY Person ~
- ~~------------------------------------
Payroll
-------------------------------------- $ _ _ _ _ _ ]j,L~5J..:. Noncash
(Complete Part II if there
J_____________________________________ is a noncash contribution.)
(a) (b) (c) (d)
Number Name, address, and ZIP + 4 Aggregate Type of contribution
contributions
6 GOVERNMENT ACH DEP Person ~
- --------------------------------------
Payroll
-------------------------------------- $ _ _ _ _ _ _ -.?L<2-0Jl..:. Noncash
(Complete Part II if there
~------------------------------------- is a noncash contribution.)
BAA
TEEA0702L 08/08/05
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
Page 1
of 1
of Part II
Employer identification number
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
lipi~jlili1iji~ Noncash Property (See Specific Instructions.)
94-3227787
(a) (0) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
~~--------------------------------------
- ----------------------------------------
----------------------------------------
---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
----------------------------------------
- ----------------------------------------
----------------------------------------
---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
----------------------------------------
- ----------------------------------------
----------------------------------------
---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
----------------------------------------
- ----------------------------------------
----------------------------------------
---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
----------------------------------------
- ----------------------------------------
~----------------------------------------
~---------------------------------------- $ ----------- ---------
(a) (b) (c) (d)
No. from Description of noncash property given FMV (or estimate) Date received
Part I (see instructions)
~----------------------------------------
- ~----------------------------------------
-----------------------------------------
~---------------------------------------- $ ----------- ---------
BAA
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
TEEA0703L 08/08/05
Schedule B (Form 990, 990-EZ, or 990-PF) (2005)
Name of organization
Page 1
of 1
of Part III
Employer identification number
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE 94-3227787
Exclusive(yreligious, charitable, etc, individual contributions to section 501(c)(7), (8), or (1 0)
organizations aggregating more than $1,000 for the year (Complete cols (a) through (e) and the following line entry.)
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
NL~__ - --- - -- -- - - -- --- - --- --- - -- - -- --- --- - --- - - - - - - - - - - --- - - --
- -- -- - ---- -- -- - - ----- - - - ---- - -- - -- - -- --- - - - - - - - - - - - - -- - -- - - - -
-- -- - ---- -- -- -- -- - -- - -- ------- - -- - -- --- - - - - - - - - - - - - -- -- - - - - -
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
-- - - -- - - - - - - - --- - - --- -- --- - - -- --- - - --- -- - - - - -- - - - - - -- - - - - - - -
-- - - --- - --- -- -- - - ----- ----- - -- - -- - - ---- - - --- -- - - - - - -- --- - - --
-- - - -- -- - - - -- -- - - - ---- - ----- -- --- - - -- - - - - - - - -- - - - - -- - --- - ---
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
-- - - ----- - - -- -- ----- --- ---- - -- --- - - - --- - - - - - --- - - - --- --- - ---
- -- - - ----- -- -- -- ----- -- - --- - - -- - -- - -- --- - - - - - - - - - - - -- - - -- - ---
-- -- ----- -- -- -- -- --- - - -------- - -- --- -- - - -- - - -- - - - - - -- - -- - -- -
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
--- - - - - - - -- - - - - --- --- - -- - - - -- --- - - --- - - -- -- - -- - - - - - -- --- - - - -
1--- - - - - - - --- - - - - - -- ---- -- -- - -- --- - - --- - - -- -- --- - - - - - -- -- - - - --
1--- - - - - - - - - - - - -- --- ---- - - - - - -- ---- - --- -- -- -- - -- - - - - ------ - - --
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
1--- -- - -- -- -- -- -- - - --- - -- - - - --- - - - ---- -- - - - - - - -- - - -- - - - - - - - -- -
- 1--- - - - -- -- -- -- - - -- - -- - --- - - --- - - - - --- -- - - - - - - -- - - -- - - - - -- - - - -
1----- - -- -- -- -- -- - - --- - - - - ----- - -- ---- - - - - -- - - -- - - - - - - - - --- -- -
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
1--- - - -- - - - - - - - -- - -- ---- - - - - - -- --- - - - -- - - - - -- - --- - -- --- - -- - -- -
1---- - - - - - - - - - - - - --- --- - - - - - - -- --- - - ----- -- -- - --- - -- - -- --- - ---
1--- - - - ---- - - - - -- - -- ----- - - - - -- - -- - - - --- - - -- - - --- - -- - - - - -- - -- -
(a) (b) (c) (d)
No. from Purpose of gift Use of gift Description of how gift is held
Part I
1--- - - - - - - - - --- ---- - -- - - -- - -- -- --- - --- - - -- - - -- - - - - - - ------ - ---
- 1--- - - - - - - - - --- ---- - -- - - -- --- -- --- - -- - - - - - - - - - - - - - - - --- --- - -- -
1--- - - --- -- - - - - -- --- -- - - -- - -- -- --- - - - -- - - - - - - - --- - - - -- - --- - ---
(e)
Transfer of gift
Transferee's name, address, and ZIP +4 Relationship of transferor to transferee
1--- - - - - - - - - - -- - ---- -- - - -- - ---- --- - - -- - - - - - - - - - - - - - - -- - --- - -- -
-- -- - --- - - - -- - - --- --- - -- - -- - - --- - - - -- - - - - - - - --- - - - - - - - - - - -- -
1--- -- - -- - - - - - - -- --- --- - -- - -- -- --- - - - -- - - - - - - - --- - -- - - - - - -- - - -
For organizations completing Part III, enter total of exclusively religious, charitable, etc,
contributions of $1,000 or less for the year. (Enter this information once - see instructions.). .
~$
N/A
BAA
Schedule B (Form 990, 990-EZ, or 990.PF) (2005)
TEEA0704L 08/15/05
2005
CALIFORNIA STATEMENTS
CLIENT 20024
9/12/06
TRI-VALLEY BUS CNCL EDUC. COLLABORATIVE
STATEMENT 1
FORM 199, PART II, LINE 7
OTHER INCOME
n-I:O ME FRO M SPECIAL EVENTS........................
STATEMENT 2
FORM 199, PART II, LINE 11
COMPENSATION OF OFFICERS, DIRECTORS, AND TRUSTEES
NAME AND ADDRESS
PHILLIP WENTE
5565 TESLA ROAD
LIVERMORE, CA 94550
LINDA TODD
5000 HOPYARD ROAD
PLEASANTON, CA 94588
M. WELDON MORELAND
1424 CONCANNON BLVD
LIVERMORE, CA 94550
TITLE AND
AVERAGE HOURS
PER WEEK DEVOTED
CEO
NONE
$
COMPEN-
SATION
O. $
SECRETARY
NONE
CFO
NONE
TOTAL $
STATEMENT 3
FORM 199, PART II, LINE 17
OTHER EXPENSES
ACCOUNTING FEES.,................................ ...................................
FILING FEES................................................,.......... ................
INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LICENSES AND PERMITS....... .......................................................
SPECIAL EVENT EXPENSES............................................................
STATEMENT 4
FORM 199, SCHEDULE L, LINE 18
OTHER LIABILITIES
........ $
TOTAL $
CONTRI-
BUTION TO
EBP & DC
O. $
O.
0'.
O.
O.
o. $
o. $
PAGE 1
94-3227787
10:14AM
14,263.
14,263.
EXPENSE
ACCOUNT/
OTHER
O.
o.
O.
O.
. . . , . , . . , . . . . $ 7,175.
.,.,........ . 60.
............ , 1,126.
...,.....,.. . 20.
0..'.....,.. , 203,695.
TOTAL $ 212,076.
TOTAL $
129,625.
129,625.
~~_. ....1 1 ...
....t\~.._,.." ..
TRI- VALLEY BUSINESS COUNCIL
BOARD RESOLUTION
On January 25, 2007, The Tri-Valley Business Council Board of Directors authorized
The submission of a funding application to the City of Dublin, CA for a contribution of
$25,000 to the Tri-Valley Business Council Vision 2010 Project for Fiscal Year
2007/2008 to partially cover the development costs for the Innovators Website.
ATTESTED:
~~~... a......
. ...-=--:/
".,-""" ~
Toby Brink
President & CEO
Tri-Valley Business Council
Ken Mercer
Board Chairman
Tri-Valley Business Council
01/24/07
ConfirmNet -)
14088720903
Pg 2/3
'-\ r r ... _t"'t L.;. n-
-1
PRODUCER LIC #0619252
Tanner Insurance Brokers
A Division of UnionBanc Insurance
4480 Willow Road
1- 925 -463-9 672
DATE (MMIDD/YY)
01(24(07
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
ACORQ.
CERTIFICATE OF LIABILITY INSURANCE
Services, Inc.
Pleasanton, CA 94588-2710
INSURERS AFFORDING COVERAGE
INSURED
Tri-Valley Business Council
Tom O'Malley
P. O. Box 3258
INSURERA:Re ublic Indemnity Co of Calif.
INSURER B: Travelers Property & Casualty
INSURER C:
INSURER 0:
INSURER E:
Livermore, CA 94551-3258
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDfTlON OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE P~~~~~~g/~~~ Pg~'fJ (~:~~'f,N
LTR POI..ICY NUMBER LIMITS
B ~ERAL LIABILITY 660446X2375 08(25/06 08(25/07 EACH OCCURRENCE $1,000,000
R=MERCIAL GENERAl LIABILITY FIRE DAMAGE (Anyone fire) i $100,000
CLAIMS MADE 0 OCCUR MED EXP (Anyone person) $ 5, 000
PERSONAL & ADV INJURY $1,000,000
I GENERAL AGGREGATE $ 2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER PRODUCTS - COMPIOP AGG $ 2,000,000
II POlICyll- ~f,9.,: n LOC
B AUTOMOBILE LIABILITY 660446X2375 08/25/06 08(25/07
I--- COMBINED SINGLE UMIT $1,000,000
AN'f AUTO (Ea accident)
I---
AU OWNED AUTOS I BODILY INJURY
I--- $
SCHEDULED AUTOS (Perpersoo)
I---
X HIRED AUTOS
- BODILY INJURY $
X NON-OWNED AUTOS (Per acddent)
-
,- PROPERTY DAMAGE $
(Per acddent)
~RAGE LIABILITY AUTO ONLY - EA ACCIDENT $
i I ANY AUTO : OTI-lER THAN EA ACC $
i-----i
! I AUTO ONLY:
AGG $
EXCESS LIABILITY EACH OCCURRENCE $
:=J OCCUR D CLAIMS MADE AGGREGATE $
,
~ DEDUCTIBLE $
$
I RETENTION $ $
A WORKERS COMPENSATION AND 14039409 01(01/07 01/01(08 T WCSTATU,I 10TH
X TORY LIMITS ER
EMPLOYERS' LIABILITY $1,000,000
: E.L EACH ACCIDENT
E.L. DISEASE. EA EMPLOYEE $1,000,000
EL DISEASE - POLICY LIMIT $1,000,000
OTHER
$
$
$
DESCRIPTION OF OPERA TIONS/LOCA TIONSlVEHICLESIEXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVISIONS
Evidence of Coverage.
*30 day notice except 10 days for non-payment.
CERTIFICATE HOLDER I I ADDITIONAL INSURED; INSURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
Ci ty Of Dublin DATE THEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MAIL ~ DAYS WRITTEN
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO DO SO SHALL
100 Civic Plaza IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS DR
REPRESENT A TIVES.
Dublin, CA 94568 AUTHORIZED REPRESENTATIVE
I USA rt:-.--...~.I-'-~
ACORD 25-5 (7/97) CBettencourt
5584344
@ACORD CORPORATION 1988
; t
City of Dublin
Fiscal Year 2007-2008
Application for Funds
ApPLICATION VERIFICATION
I attest that the information contained in this FY 2007-2008 grant application is accurate and that
the funds requested will not supplant any other monies secured by the organization.
Attached is a resolution, letter, or other document providing evidence that the Board of Directors
approved the application as submitted. Successful applicants are required to submit a summary
report as soon as possible after submitting the reimbursement request, but not later than August
30, 2008. Failure to submit a report will result in ineligibility for future funding.
Signatures: ~
_-5' ~~.
;/:2--- ~.--c) ?
Date
!-27-r)7
~
Board President/Chairperson
Date
SECTION 2
Page 11 of 16
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?H~, ()1jLvV-t I~
Wellspring for Entrepreneurship and
Innovation
The Changing Economic Role and Responsibilities of
the Tri- Valley Region
July 2005
A Report of the Preserving Prosperity Project
Tri- Valley Business Council
Prepared by Collaborative Economics
CONTENTS
EXECUTIVE SUMMARY ........................................................................................................1
New Economic Role, New Regional Responsibility.............................................................. 3
Tri- Valley's Changing Economic Landscape. ....... .... .... .... ............ .......... ............. ...... ....... ....4
Rising to the Challenge: Actions to Sustain Tri-Valley's Innovation Economy................... 7
A Vision of the Future: The Golden Valley .......................................................................... 8
I. Tri- Valley's Changing Economic Landscape ........................................................................9
The Changing Landscape of Firms in the Region ..................................................................9
The Changing Landscape ofIndustry Specializations .........................................................19
II. Tri-Valley's New Economic Role and Responsibilities ..................................................... 32
Tri-Valley's Innovation Cycle: Firms, Specializations, Habitat ......................................... 33
Assessing Tri -Valley's Innovation Habitat...... ........... ...... ............................ ............. ..........34
New Requirements, New Questions...... ............. ........... ......... ........... ...... ............ ......... ........44
III. Rising to the Challenge: Actions to Sustain Tri-Valley's Innovation Economy..............46
IV. Vision ofthe Future: The Golden Valley................................. .................. ......................56
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INTRODUCTION AND ACKNOWLEDGMENTS
The Preserving Prosperity Project and this report have been made possible by
the generous sponsorship of the local jurisdictions of Danville, Dublin,
Livermore, Pleasanton, and San Ramon, the Counties of Alameda and Contra
Costa, and Pacific Gas and Electric Company.
The Preserving Prosperity Project is an initiative of the Tri- Valley Business
Council, which has been assisted by a Leadership Group composed of public,
corporate, and other community leaders (see following page). This report
describes the formation of four action teams, which have proposed outcomes
and strategies for understanding the implications of this report and making the
transition to the implementation phase of the Project. As such, the report is not
a detailed and final strategy for implementation, but rather a first step in
prioritizing outcomes and strategies. The next step is to expand participation of
each team, finalize the specific outcomes and strategies for implementation, and
take action.
The data and analysis in this report are the sole responsibility of Collaborative
Economics.
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PRESERVING PROSPERITY PROJECT LEADERSHIP TEAM
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The Preserving Prosperity Project has been supported and guided by the following Leadership
Team members. We thank them for their commitment and dedication.
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Jerry Carlson Director Valley Community Bank
Shiyama Clunie Area Mgr, External Affairs SBC Communications
John Doyle Attorney Hoge, Fenton, Jones & Appel
Linda Fish Branch Manager Robert Half International
Marc Fontes Econ. Dev. Mgr. City of San Ramon
Chris Foss Econ. Dev. Mgr. City of Dublin
Joe Gabbert Sr. VP, Human Resources EMC Documentum
Mike Gatzman Ag Economics Consultant Gatzman Consulting Services
Charles Gluchowski Life Sciences Consultant Gluchowski Consulting
Larry Gosselin Rancher & Equestrian Collier Canyon Ranch
Bonnie Guttman Econ. Dev. Coord Town of Danville
Karen Halliday President Las Positas Comm. College
Steven Harmon Principal Morgan Miller Blair
Scott Herbert CEO Rapidwerks, Inc
Mike LaLumiere Exec. Director TTEC
Brad McInroy VP, Operations Sybase
Ken Mercer VP, Foundation ValleyCare Health System
Tom O'Malley President Tri- Valley Business Council
George Opacic Public Affairs Mgr. PG&E
Pamela Ott Econ. Dev. Mgr. City of Pleasant on
J ames Paxson General Manager Hacienda Owners Assn.
Kevin Roberts Econ. Dev. Mgr. City of Livermore
Bob Sakai Dir., Technology & Trade EDAB
John Schinnerer President Infinet Assessment
Bob Silva Vice President DeSilva Group
Ron Stoltz Mgr., Homeland Security Sandia N at!. Labs.
Mark Triska Sr. VP, Corp. Real Estate Colliers Inti
Lynn Wallace Executive Director LM Valley Winegrowers
Phil Wente VP, Viticulture Wente Vineyards
Yaksun Wing Area Finance Mgr Kaiser Permanente
Lee Younker ADD, Science & Technology Lawrence Livermore NtI Lab
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EXECUTIVE SUMMARY
New Economic Role, New Regional Responsibility
The economic role of the Tri-Valley is changing once again-a shift that both benefits and
raises the stakes for the region.
In past decades, the region has evolved from agriculture and national laboratories to
bedroom communities and back-office operations. In the 1990s, Tri-Valley developed its own
industry specializations in software development and support, communications services and
support, and scientific and biomedical devices and materials, thanks to the addition of branch
plants of well-established technology firms based outside the region as well as new locally-
based firms.
Since the late 1990s, the region has evolved once again-its new economic identity a mix of
industry specializations driven by a surge in homegrown entrepreneurship. The region has
evolved into a high-quality, innovation economy, which requires access to highly-educated
talent, a constant flow of ideas and resources for business creation and innovation, and a
superb quality of life. This transformation has been driven by a combination of forces beyond
the region's control (i.e., Bay Area and global economic trends), Tri-Valley's own assets
(primarily its talented population and quality of life), and leadership (public, private, and
community leaders working separately and together to improve economic vitality and quality
oflife ).
The challenge now is to sustain and build on this initial success. The ingredients for success
are not a given; they can erode over time. Talented people can leave, or stop coming. Quality
of life can decline. Businesses can decide to locate elsewhere. Going forward, the region will
have to ensure that the necessary talent, entrepreneurial business support, and quality of life
are in place to sustain the region's innovation-based economy-and remain competitive with
other regions that are working hard to do the same.
This new reality raises the stakes for the region's public, private, and other community
leadership. A new level of regional responsibility is required to sustain the economic gains of
the past decade. As this report shows, the challenge is beyond the scope of any individual
organization, jurisdiction, or sector; it requires a truly regional, collaborative approach to
focus on a talent pool, a quality of life, and an environment for entrepreneurial support that
extends across local boundaries.
A new level of responsibility does not equate to a higher level of local government funding or
more programs during a time of fiscal distress; rather, it means a new level of regional
collaboration among existing government leaders (including local economic development
directors), private sector leaders (including the Tri-Valley Business Council), and other
community leaders (including education)-with all parties focused on the talent,
entrepreneurial business support, and quality oflife necessary to sustain the region's
innovation-based economy.
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Are public, private, and community leaders making choices today that support or undermine
the region's high-innovation economy? In the future:
. Can the Tri-Valley come together as a region to do what is necessary to sustain the
region's innovation economy?
. Will Tri- Valley continue to have access to the talent it needs to fuel entrepreneurship
and innovation if the next generation of innovators cannot afford to buy a home in
the region or commute to the region in a timely manner?
. Will Tri-Valley be able to remain a good location for new, small, innovative
businesses if it doesn't invest in the capacity to match entrepreneurs, resources,
support, and appropriate commercial space?
. Will the Tri-Valley benefit from innovation in its national laboratories without a
practical and sustained effort to encourage companies who work with the institutions
to invest in the region?
. Will the Tri-Valley be able to compete with other regions for innovative talent ifit
does not invest in and connect its agricultural, recreational, environmental, cultural,
and other quality of life assets?
Tri-Valley's Changing Economic Landscape
The Tri-Valley region has become a wellspringfor entrepreneurship and innovation-a place
where talented people choose to live in high-quality communities, creating and working in
innovative firms that serve local, regional, and global markets. In recent years, Tri-Valley has
become a wellspring for thousands of small, homegrown companies that are transforming the
region's economic landscape-and accounting for a greater and greater share of regional
prosperity. There are many signs of the region's emerging role:
. The rate of entrepreneurship has been mostly above the national average for more
than a decade, reaching a new high in 2003. The region has gone from a business
creation rate below the national average in the early 1990s to one well-above the
national average by 2003. The number of business establishments per resident has
boomed-from about 3 per 1,000 residents in 1990 to more than 10 by 2002. In all,
more than 18,000 companies have been created in the Tri-Valley since 1990.
. The regional economy is now mostly a homegrown economy-almost entirely
composed of locally-based firms, many of them created in just the past few years.
About 86% of firms operating in the Tri-Valley in 2003 were started in the region,
with only a small percentage the result of relocations. About half of all firms in the
region have started-up just since 1997.
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. New, homegrown firms are the most important source of job growth in the regional
economy. Since 1990, new firms have added on average about 41 % more jobs each
year to the regional economy than existing firms, and about 420% more jobs than
firms relocating or expanding into the region. By 2003, only about 6.5% of Tri-Valley
workers were employed by firms that had moved into the region.
. Homegrown firms now account for more regional economic revenue than any other
source. The share of regional economic revenue generated by homegrown firms rose
about 20% between 1990 and 2003, and now accounts for about 60% of total
economic revenue generated in the region.
. The number of very fast growing firms has almost tripled in the past decade. The
number of firms generating at least $500,000 per year in revenues, and whose
revenues continue to grow by at least 20% for four consecutive years, grew from about
40 firms in 1994 to more than 11 0 in 2003.
· The role of very small firms (five or fewer employees) in regional prosperity has
grown substantially. By 2003, these firms were 80% of total firms, compared to 75%
in 1990. By 2003, they were generating 35% ofthe region's economic revenues-
well above their 26% contribution in 1990.
. Very small firms are also leading the way in productivity growth. Between 1990 and
2003, firms with five or fewer employees experienced a more than 40% increase in
revenues per employee, an indicator of productivity growth, while larger firms
experienced declines. Very small firms now rank second only behind very large firms
over 100 employees in level of revenue per employee, and well ahead of all other
firms.
. As a group, firms with 100 or more employees have lost jobs since the early 1990s,
while smaller firms have gainedjobs. As a group, Tri-Valley's largest firms lost jobs
every year but two since 1991. As a group, Tri- Valley firms under 100 employees
gained jobs every year but one during the same period.
The growth in small-firm entrepreneurship and innovation has fueled growth and
transformation of the region's industry specializations.
. The region's largest specialization is now innovation services-a concentration of
firms that typically help other firms bring innovation to their products and processes
that now employs about 13% ofthe region's workforce and is 2'ii times more
concentrated than the state average.
· The region's fastest growing specialization is now scientific and biomedical products
and services, having grown 80% between 1994 and 2004. This specialization is only
at 81 % of the state average, but has been gaining ground quickly: its concentration
has increased 30% compared to the state average over the last decade.
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. Another large and growing concentration is business operations-firms that provide
basic functional services such as finance, insurance, legal, and other administrative
support to other businesses. This is an area that has grown as larger companies
outsource and smaller companies buy services rather than add employees.
· The region still has a large concentration of information technology product
companies, including software and communications technology, but one that has been
restructuring and losing employment since the global downturn in technology sectors.
Nonetheless, this sector remains an important part ofthe regional economy and highly
concentrated in the Tri- Valley, at about four times the state average.
· These industry specializations are driving the region's economy. These four
specializations account for almost 40% of the region's employment base, and produce
jobs and revenues in other sectors such as retail, construction, and the like.
Tri- Valley's economic transformation has coincided with major shifts in the region's
occupational structure and the resident talent pool.
· There has been a shift to higher-level occupations in the regional worliforce. Between
1990 and 2000 Census, the share of the Tri-Valley workforce employed in managerial
and professional occupations rose anywhere from 22% to 332% depending on the
category, while the share employed in sales and administrative support jobs dropped
about 15%.
. There has been a shift to a more highly-educated population. Between the 1990 and
2000 Census, the proportion of Tri-Valley residents with a bachelors degree or more
education rose from 36% to 44%. Tri-Valley's population is far more educated than
California (27% with bachelors degrees or higher) or the nation as whole (24%).
Every city is participating in the transformation of the Tri- Valley economy-and are, in fact,
interdependent parts of a truly regional economy.
. Firms are spread across the region, rather than concentrated in just one or two
locations. Twenty-nine percent of the region's firms are based in Pleasanton, 25% in
Livermore, 21 % in Danville, 20% in San Ramon, and 10% in Dublin.
. Industry specializations are widely shared among local jurisdictions, rather than
concentrated in just one or two cities. Between 1990 and 2002, no Tri-Valley city
secured less than 6% nor higher than 34% of the region's new businesses in
innovation services, scientific and biomedical products and services, business
operations, and information technology products.
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Rising to the Challenge: Actions to Sustain Tri-Valley's Innovation Economy
Tri-Valley's new economic role as a wellspring of innovation creates a new comparative
advantage for the region, but also raises the stakes. In response, a growing number ofTri-
Valley "regional stewards" are stepping forward to sustain Tri- Valley's innovation economy.
. To succeed as a region whose comparative advantage is innovation rather than
primarily strategic location or low costs, Tri-Valley must have a strong innovation
"habitat "-a combination of talented people, a strong pipeline of ideas and funding,
and supportive place-based attributes such as housing, transportation, and quality of
life.
. The Tri-Valley, with such a high rate of investment in federal spendingfor research
and development, has a unique opportunity to leverage this high level of investment by
developing an effective process for communication and collaboration between the
National Labs, community colleges, research universities, medical centers and private
industry. This must provide for exploration of opportunities for joint ventures,
technology interchange and technology commercialization. A process must also be
developed whereby industry, local government, national lab representatives, and
representatives from higher education and medical centers come together to
strategically discuss opportunities for innovation, new technologies, ventures and
industries as well as the sustainability of current industry specializations.
. Tri- Valley's public, private, and community leadership must recognize the region's
new economic role and work together to ensure the region's success. Tri- Valley must
ensure that its growing base of small firms have access to the resources they need to
succeed.
Action: Tri- Valley Innovation and Entrepreneurship Strate2Y is bein2
launched to support. expand. and market the re2ion's "innovation
advanta2e." provide a forum for innovative firms to connect with one
another. to 2et referrals to other businesses and resources. and to work
with iurisdictions to ensure local policies are supportive of small.
innovative companies.
. Tri- Valley must leverage the innovation taking place in its national laboratories for
regional economic benefit.
Action: Tri- Valley Invest is a new initiative to help interested business
partners of national laboratories expand or otherwise invest in the re2ion.
. Tri- Valley must ensure that it has access to the talent required to fuel an innovation
economy. In particular, housing is now increasingly out of reach for the next
generation of innovators, just as it has been for workers who are in support jobs in
innovative firms, or in education or public safety, or other lower-paying jobs.
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Action: Tri- Valley Talent is a new initiative to ensure that the re2ion is
makin2 best use of its existin2 talent (e.2.. spouses. retirees). removin2
obstacles to housin2 the next 2eneration of innovators and entrepreneurs.
and identifyin2 and meetin2 the workforce needs of small. innovative
firms.
· Tri- Valley must keep strengthening its quality of life, as innovative talent and firms
flourish in high-quality settings.
Action: Tri- Valley Quality of Life is a new initiative to expand and
connect the multiple assets and amenities of the re2ion from a2-tourism to
arts and culture.
A Vision of the Future: The Golden Valley
Because regional stewards stepped forward in the first decade of the 21st century, Tri-Valley
becomes one of the nation's most attractive, thriving, and livable regions of entrepreneurship
and innovation. It becomes known as the Golden Valley-a prime example of how to sustain
economic prosperity and a superb quality of life through a commitment to business and
community innovation.
Its cities retain their neighborhood feel, expand their quality of life amenities, and enrich their
economies with clusters of small, innovative firms that fit well into the community fabric.
These firms are well-networked and form business partnerships easily, are well-supported by
local policies, can find commercial space efficiently, and work productively with local
education and training institutions to meet their changing workforce needs.
These firms are the core of the region's industry specializations, enabling Tri-Valley to
compete effectively in the global marketplace. These specializations are rooted and benefit
every city in the region. The region's national laboratories are not only sources of innovation,
but magnets for business partners who, in turn, expand their operations into the region.
The regional economy employs talented people who can afford to live close to their work.
The mix of housing matches the occupational distribution ofthe workforce, providing
accessible options for young singles, families, newcomers, and others.
Most importantly, Tri-Valley's regional stewards are vigilant and able to work together
effectively as new challenges arise.
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I. Tri-Valley's Changing Economic Landscape
The Tri-Valley region has become a wellspring for entrepreneurship and innovation-a place
where talented people choose to live in high-quality communities, creating and working in
innovative firms that serve local, regional, and global markets. In the last few years:
. Tri-Valley has produced thousands of small, homegrown companies that are
transforming the region's economic landscape-and accounting for a greater and
greater share of regional prosperity.
. The growth in small-firm entrepreneurship and innovation has fueled growth and
transformation of the region's industry specializations.
. Every city is participating in the transformation of the Tri-Valley economy-and are,
in fact, interdependent parts of a truly regional economy.
This chapter describes the changing economic landscape in terms of firms and concentrations
of firms in industry specializations.
The Changing Landscape of Firms in the Region
The rate of entrepreneurship has been above the national average most years since the early
1990s
As Figure I-I shows, the region has gone from a business creation rate below the national
average in 1990 to one well-above the national average by 2003. In fact, between 1993 and
2003, the Tri-Valley exceeded the national rate of business creation all but three years.
Nationally, about 10% of all firms are brand new in any given year-a rate that has held
steady or declined slightly since 1990. Tri- Valley's rate of firm birth in 1990 was well below
the national level, at 5.9%, but by 2003 the rate was up to 15.7%.
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Figure I-I: Rate of Firm Creation
0.16
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0.14
0.12
O.OR
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------l
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0.06
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0.04
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0.02
1992
1993 1994 1995
1996
1997
199R
1999
2000
2001
2002
2003
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-Tri-Valley
~us Average Rate
Source: NETS Database
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The number of business establishments has outpaced increases in population. As Figure 1-2
shows, the average number of establishment starts per 1,000 residents more than doubled
between 1993 and 2003, from 3.68 to 9.91.
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Figure 1-2: Firm Creation per Capita
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~
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<:
<:
5-
.. 6
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1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
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Source: NETS Database, U.S. Census Bureau
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Moreover, as Figure 1-3 shows, the number of business starts in the region increased
dramatically in 2001 and 2002, driving the growth in net new firms to its highest level at least
since 1992. In all, more than 18,000 companies have been created in the Tri- Valley since
1990.
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1,000
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Figure 1-3: Addition of Firms to Tri-Valley Economy, by Source
3,000 ---
2,000
-2,000
-3,000
1990 1991
2001
2002
1999
2000
1992
1993
1994
1996
1997
1998
1995
Source: NETS Database
- Move-In Firms - Move-Out Firms - Firm Starts - Firm Closures ~Net Firm Change
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# firms relocated into
region (1990-2002)
2,023 (34,434 jobs)
# firms moved out of
the region (1990-
2002)
1,395 (17,115 jobs)
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The regional economy is now mostly a homegrown economy
The Tri-Valley economy is very dynamic, "churning" rapidly since at least the 1990s. As
Figure 1-4 shows, most ofthe firms and jobs created have been the result of new, homegrown
firms.
Figure 1-4: Business "Churn" in the Region
# firms closed (1990-2002)
13,665 (78,607 jobs)
# firms moved
within the Region
from 1990-2002
1,655 (19,054 jobs)
# firms created (1990-2002)
18,329 (82,019iobs)
Source: NETS Database
In fact, the majority of changes within the local economy come from the opening and closing
of independent firms. From 1990 to 20021, more than 18,300 new firms were started in the
Tri-Valley. Many of these firms did not last for more than a few of years (during that same
time 13,600 firms went out of business), but there was still a net increase in the number of
firms in the region-from 11,200 firms in 1990 to 18,000 firms in 2003.
In 2003,86% of all Tri-Valley establishments were independent firms that were started in the
region. Four percent of all firms were started in the Tri-Valley and now have offices
elsewhere. Only 3.5% of firms were started outside the region.
1 The latest year for which data is available
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Figure 1-5: Business Longevity
Age afFirms in Tri-Valley as of2003
Share of firms started
between 1997 and 2002
49%
Share of firms that were
started before 1990
27%
Share of firms started
between 1990 and 1996
24%
Source: NETS Database
Because ofthe nature ofthe churn in the region, the Tri-Valley economy is almost entirely
composed oflocally-based firms, many of them created in just the past few years. As Figure
1-5 shows, about half of all firms in the region have started-up just since 1997. Moreover,
41 % of all firms operating in 2003 had five or fewer employees and had been in business for
five years or less.
Relocations in or out ofthe Tri-Valley remains a very small subset of the total change in
firms. However, from 1990 to 2002, the region did record a net gain injobs and firms from
the movement of establishments into the region. During that time, 2,023 firms moved into the
Tri-Valley (bringing 34,434 jobs), and 1,395 firms moved out (taking 17,115 jobs). Almost
an equal amount of movement took place within the region: 1,655 firms moved from one part
ofthe Tri-Valley to another.
By any measure, there has not been an exodus of firms to the Central Valley or anywhere else.
Within the relatively small subset of firms that moved out of the region between 1990 and
2002, about half did not venture very far: 47% stayed within Alameda and Contra Costa
Counties. Another 14% moved a little further to other parts of the Bay Area-primarily Santa
Clara County and San Francisco. Only ten percent ofthe firms that moved out of the region
moved to the Central Valley (San Joaquin, Stanislaus, and Fresno Counties in particular).
Furthermore there is no significant increase in the rate of movement out of the Tri-Valley, nor
is there any discernable pattern in terms of size, industry sector, or other characteristic.
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Figure 1-6 Revenues per Employee by Firm Type
1990-2003
Establishment Type Move-in
Branch $ 162,445
Headquarters $ 152,975
Standalone $ 256,311
Source: NETS Database
Homegrown
$ 97,082
$ 160,957
$ 179,129
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Ofthe firms that moved into the region, 59% came from other parts of Alameda and Contra
Costa Counties. Twenty-five percent of firms that moved into the Tri-Valley between 1990
and 2002 came from other parts ofthe Bay Area (Santa Clara, San Mateo, and San Francisco
Counties). A handful of firms moved into the region from the Central Valley (3%).
There also has been no significant "leap- frogging" of firms moving from other parts of the
Bay Area directly to the Central Valley rather than locating in the Tri- Valley. Fifty-eight
percent of all Bay Area firms that move out of other parts of the Bay Area move into Alameda
and Contra Costa Counties. The two areas that receive the next highest shares of firms from
the Bay Area are Sonoma (9.4% of all moves out ofthe Bay Area), and Los Angeles (6.8%).
Together Sacramento, San Joaquin, and Stanislaus Counties account for 7.2% of all firm
movement out of the Bay Area.
New, homegrown firms are the most important source of job growth in the regional economy
As Figure 1-4 on business churn also shows, since 1990, new firms have added on average
about 41 % more jobs each year to the regional economy than existing firms, and about 420%
more jobs than firms relocating or expanding into the region. By 2003, only about 6.5% of
Tri-Valley workers were employed by firms that had moved into the region.
What kind of jobs do these homegrown firms create, and how do they compare with
relocations? Independent homegrown firms have a higher revenue per employee than most
relocations. Independent homegrown firms include those that are standalone operations and
those with branches either in the Tri-Valley, outside the Tri-Valley or both. As Figure 1-6
shows, these homegrown firms (which are the vast majority of all firms in the Tri-Valley)
generate comparable or higher revenue per employee than branch or headquarters relocations.
The only kind of relocation that generates substantially higher revenue per employee is the
standalone operation. The only kind of homegrown firm that generates substantially lower
revenue per employee are branches of homegrown headquarters operations.
Homegrown firms now account for more regional economic revenue than any other source
The share of regional economic revenue generated by homegrown firms rose about 20%
between 1990 and 2003, and now accounts for about 60% of total economic revenue
generated in the region.
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The number of very fast growing firms has almost tripled in the past decade
Tri-Valley has also become a location that has been able to support a growing number of fast-
growth firms in recent years. As Figure 1-7 shows, the number of very-fast growing firms (or
"gazelles") generating at least $500,000 per year in revenues, and whose revenues continue to
grow by at least 20% for four consecutive years, grew from about 40 firms in 1994 to more
than 110 in 2003.
Figure 1-7 Gazelle Companies in the Tri-Valley
160 .-~,------,-,- ---------------------~---,------------ .............--------~-
80
140
120
100
60
40
20
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Source: NETS Database
The role of very small firms (five or fewer employees) in regional prosperity has grown
substantially
By 2003, firms with 5 or fewer employees were 80% oftotal firms, compared to 75% in 1990
(see Figure 1-8). In terms of absolute numbers, there were 13,421 firms with five or fewer
employees in 2003, up from 8,172 firms with five or fewer employees in 1990.
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Figure 1-8: Tri-Valley Firms by Size
1990
0%
2003
1Iil5 or fewer
11II 6 to 25
026t0100
o Greater than 100
As Figure 1-9 shows, these very small firms directly accounted for 22% of employment in
2003, but generated 35% of the revenue within the Tri-Valley. This figure is up substantially
from 26% in 1990. Small firms with up to 25 employees account for well over half of all
revenues (58%) generated by the regional economy. The very largest companies, by contrast,
contribute about one-third of the employment, but only about one-quarter of the regional
economic revenues. Indirectly, both large and small firms also stimulate job and revenue
growth in the regional economy by contracting with other firms for services that they choose
not to keep in-house.
Fi ure 1-9 Contributions to the Re ional Econom ,2003
Share of Share of Share of
Firms Em 10 ment Revenue
80% 22% 35%
15% 22% 23%
4% 23% 18%
1% 33% 24%
Size of Firm
5 or fewer
6 to 25
26 to 100
Greater than 100
Source: NETS Database
Very small firms are also leading the way in productivity growth
Not only are small establishments an increasingly large part of the economy, but the revenue
per employee created by those establishments has increased dramatically as well (see Figure
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1-10). While firms of every other size lost 13 to 14% in revenue per employee over the 1990-
2003 period, establishments with five employees or fewer gained 42% in revenue per
employee. This gain makes very small firms second only to the largest enterprises, many of
which are headquarters for whom revenue figures are skewed because they represent
company profits that were not attributed to other branches. The 2003 figure of $218,532 is
about twice the median household income for the Tri-Valley.
Figure 1-10
Revenue per Employee by Firm Size
(adjusted for inflation)
1990
$ 153,667
$ 187,001
$ 148,298
$ 491,483
2003
$ 218,532
$ 156,820
$ 128,456
$ 422,440
Establishment Size
1 to 5
6 to 25
26 to 100
Greater than 100
Source: NETS Database
As a group, firms with 100 or more employees have lost jobs since the early 1990s, while
firms under 100 employees have gained jobs
As Figure I-II shows, as a group, Tri- Valley's largest firms lost jobs every year but two since
1991. As a group, Tri- Valley firms under 100 employees gained jobs every year but one
during the same period. Although firms with more than 100 employees remain an important
part of the economy (contributing 1/3 of all the region's jobs), they have not as a group
generated net new jobs in most years. The bottom line: net job growth in the Tri-Valley
because smaller firms add employees.
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Figure 1-11 Net Employment Change Within Existing Companies
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1995
1996
1997
Source: NETS Database
.......Companies with more than 100 employees
~Companies with 100 employees or fewer
Firms are spread across the region, rather than concentrated in just one or two locations
As Figure 1-12 shows, between about 20-30% ofthe regions firms can be found in each of the
cities of Pleasant on, Livermore, San Ramon, and Danville, with only Dublin (10%)
accounting for less than that amount. New businesses are also well-distributed throughout the
Tri-Valley. When compared to population, each city also shares in the average number of
new business starts per resident. It is important to note that many of these firms are very
small, but nonetheless an important part of the regional economy. Also, the percentage of all
and new establishments can vary year to year, especially if stronger efforts are made by
individual jurisdictions to add commercial space or otherwise promote economic
development. The key point is that regardless of year- to-year fluctuations in share, each of
Tri-Valley's jurisdictions has an important stake in the regional economy, instead of most
economic activity concentrated in just one or two cities.
Figure 1-12 Distribution of Firms Across Tri-Valle Cities
All New Starts in 2003 Firm Starts per
Establishments in 1,000 Residents in
2003 2003
Danville 19% (3,380 firms) 26% (702 firms) 16.3
Dublin 10% (1,795 firms) 10% (268 firms) 7.8
Livermore 23% (4,160 firms) 18% (474 firms) 6.2
Pleasanton 29% (5,244 firms) 26% (694 firms) 10.5
San Ramon 19% (3,430 firms) 20% (541 firms) 11.6
Source: NETS Database
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The Changing Landscape of Industry Specializations
The growth in small-firm entrepreneurship and innovation has fueled growth and
transformation of the region's industry specializations. They are:
· Innovation Services
· Scientific and Biomedical Products and Services
. Business Operations
· Information Technology Products
These industry specializations are driving the region's economy. They account for almost
40% ofthe region's employment base, and produce jobs and revenues in other sectors such as
retail, construction, and the like. As Figure 1-13 shows, employment in three of the four
specializations is more highly concentrated than the state average, and the fourth is more
highly concentrated in establishments than the state average (Scientific and Biomedical
Products and Services). All four have averaged positive annual growth rates over the ten-year
period.
Figure 1-13 Evolving Specializations (1994-2004)
4-,5
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Source: California Employment Development Department (EDD)
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Figure 1-14 Recent Restructuring (1999-2004)
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From 1999 through 2004 the regional economy has gone through a period of restructuring (see
Figure 1-14). Information Technology employment has diminished, averaging a 4% annual loss
in employment, but the three other specializations have maintained positive employment growth.
Innovation Services and Scientific and Biomedical Products and Services together comprise 20%
of regional employment continued to grow in spite of the economic downturn.
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Source: EDD
The region's largest specialization is now innovation services
Innovation services is a concentration of firms that typically help other firms bring innovation
to their products and processes that now employs about 13% of region's workforce.
Innovation services firms provide engineering services, system design, and specialized
consulting services to firms locally as well as across the nation and abroad. This
specialization is two and a half times as concentrated in this region as in the rest of the state,
and has continued to grow steadily at 3.9% over the last ten years. It was the least affected
during the recent recession, maintaining a 3.7% rate of growth between 1999 and 2004. From
2003 to 2004, employment in this cluster grew by 6%.
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Figure 1-15: Innovation Services
Growth: 53% (1994-2004)
Employment: 22,160 (2004)
Key sectors in innovation services include:
. Scientific/Technical Consulting Services-including advice and assistance to
businesses and other organizations on designs and specifications that optimize the use,
value, and appearance of their products.
. Management Consulting Services-including advice and assistance to businesses and
other organizations on management issues, such as strategic and organizational
planning; financial planning and budgeting; marketing objectives and policies.
. Engineering and Design Services-including the application of physical laws and
principles of engineering in the design, development, and utilization of machines,
materials, instruments, structures, processes, and systems.
· Research and Development in the Physical, Engineering, and Life Sciences-
including research and experimental development in the physical, engineering, and life
sciences, such as agriculture, electronics, environmental, biology, botany,
biotechnology, computers, chemistry, food, fisheries, forests, geology, health,
mathematics, medicine, oceanography, pharmacy, physics, veterinary, and other allied
subjects.
. Computer Systems Design and Related Services-including (1) Writing, modifying,
testing, and supporting software to meet the needs of a particular customer, (2)
Planning and designing computer systems that integrate computer hardware, software,
and communication technologies, and (3) on-site management and operation of clients'
computer systems and/or data processing facilities.
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Examples of Tri-Valley Innovation Description
Services Firms
Scientific/ Tosoh Set Inc. The semiconductor industry's premier provider of process
Technical kits and process management
Consulting
Scientific/ Altsoft Inc. A full-service information technology support company
Technical employing over 200 seasoned professionals with a wealth
Consulting of IT industry experience
Engineering A II Engineering Services Inc. A multi-discipline Architectural and Engineering Services
& Design firm offering innovative engineering design services
Services
Engineering Carlson Barbee & Gibson Provides a complete range of civil engineering, surveying
& Design and land planning services
Services
For this report, a focus group that included employers in innovation services were asked what
the current value proposition is for this specialization in the Tri-Valley, as well as what the
vision for their industry in the region-and what must be done to achieve that vision. The
current value proposition-or the prime reasons why the Tri-Valley is currently a good place
to locate innovation services companies-is a combination of both cost and value. On the
cost side, employers recognize that the region has available commercial space at a cost lower
than much of the Bay Area.
On the value side, the most important asset is the regional talent pool-both residents and
commuters. In fact, innovation services is benefiting from a substantial "reshuffling" of talent
in the Bay Area-including highly-skilled people who used to work in Silicon Valley and live
in the Tri-Valley who have in recent years become re-employed or started their own
businesses in the Tri- Valley. The region's quality of life also remains a critical asset-acting
to attract and retain both entrepreneurial company founders and key employees. For this
specialization, the proximity to clients is important-be they large or small companies based
in the Tri-Valley, Silicon Valley, or other parts of the Bay Area, or business customers in
other parts of the nation, or other countries.
Looking forward, employers believed that the region could solidify its role as a prime location
for technical design services and high-level managerial and other specialized assistance to
other industries, helping them develop innovative products, processes, and services. To do so
will require growing connections among innovation services and other regional industry
specializations, and support in helping firms start-up and grow. It will also require continuing
attention to Tri-Valley's current value proposition-especially talent and quality of life.
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The region's fastest growing specialization is now scientific and biomedical products and
services
Scientific and Biomedical Products and Services is the fastest growing specialization in the
region, averaging over 6% growth from 1994 to 2004. Growth has been strong in spite of the
recession, with 4.4% growth from 1999 to 2004. In total, Scientific and Biomedical Products
and Services employment boomed 80% between 1994 and 2004. While its employment
concentration is only at 81 % of the state average, it has been gaining ground quickly: its
concentration has increased 30% compared to the state average over the last decade.
Scientific and Biomedical Products and Services has moved from 5% to 6.5% ofthe region's
workforce. And, from 2003 to 2004, employment in this cluster grew by 11 %--more than
twice the rate of growth across the region (4.5%).
In 2002, the number of business starts in the region increased dramatically in Scientific and
Biomedical Products and Services: twice the average number of starts in this specialization
were recorded in 2002. Small firms playa special role in the scientific and biomedical
products and services. While the region has an employment concentration that is below the
California average, it has an establishment concentration that is 20% above the California
average.
While employment in Scientific and Biomedical Products and Services is not as concentrated
in Tri- Valley as in the rest of the state, it is more concentrated in number of establishments.
These firms contribute to the churn/activity in the region, while utilizing local business
operations services. Approximately two-thirds of this specialization is oriented towards the
delivery of medical care to regional consumers, while the rest is more export-oriented and
deliver the science, instruments, and tests that lead up to consumer health care.
Figure 1-16: Scientific/Biomedical Products and Services
Growth: 80% (1994-2004)
Employment: 11,166 (2004)
Research and Developme
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Key sectors in scientific and biomedical products and services include:
. Pharmaceutical and Medicine Manufacturing-including manufacture of biological and
medicinal products, processing botanical drugs and herbs, manufacturing pharmaceutical
products intended for internal and external consumption.
. Medical Equipment and Supplies Manufacture-including manufacturing of laboratory
apparatus and furniture, surgical and medical instruments, surgical appliances and
supplies, dental equipment and supplies, orthodontic goods, dentures and orthodontic
appliances.
. Scientific Instruments Design & Manufacture-including manufacturing laboratory
instruments, X-ray apparatus, and electromedical apparatus; manufacturing of
aeronautical instruments, laboratory analytical instruments, and physical properties testing
equipment.
. Hospitals/Health Care Providers-including diagnostic and medical treatment (both
surgical and nonsurgical) to patients with a wide variety of medical conditions; health
practitioners having the degree of M.D. (Doctor of medicine) or D.O. (Doctor of
osteopathy) primarily engaged in the independent practice of general or specialized
medicine (e.g., anesthesiology, oncology, ophthalmology, psychiatry) or surgery; health
practitioners having the degree ofD.M.D. (Doctor of dental medicine), D.D.S. (Doctor of
dental surgery), or D.D.Sc. (Doctor of dental science); outpatient healthcare providers;
and inpatient nursing and rehabilitative services.
. Medical Testing/Diagnostic Labs --including physical, chemical, and other analytical
testing services, such as acoustics or vibration testing, assaying, biological testing,
calibration testing, electrical and electronic testing, geotechnical testing, mechanical
testing, nondestructive testing, or thermal testing; providing analytic or diagnostic
services, including body fluid analysis and diagnostic imaging.
Examples ofTri-Valley Scientific and Description
Biomedical Products and Services
Firms
Medical Carl Zeiss Meditec Medical technology for ophthalmology
Equipment
Manufacture
Healthcare Hill Physicians Medical A medical group of physicians in Northern
Providers Group California
Healthcare Kaiser Permanente Provides not- for-profit comprehensive health
Providers services to the Tri-Valley and N. California
Medical Micro Dental Laboratories Fabricates high quality dental restorations
Equipment
Manufacture
Healthcare Valley Care Health System Provides not-for-profit health care to the Tri-
Providers Valley and surrounding communities
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For this report, a focus group of employers in scientific and biomedical products and services
were asked what the current value proposition is for this specialization in the Tri-Valley, as
well as what the vision for their industry in the region-and what must be done to achieve that
vision. The current value proposition-or the prime reasons why the Tri- Valley is currently a
good place to locate scientific and biomedical products and services companies-is a
combination of both cost and value. On the cost side, employers recognize that the region has
available commercial space at a cost lower than much of the Bay Area.
On the value side, the most important asset is the regional talent pool-both residents and
commuters. In fact, the ability to meet a company's entire workforce "halfway"-that is, to
draw people from comparable or more-expensive communities to the west and less-expensive
communities to the east-was considered to be an important advantage. Another critical asset
is the region's quality of life-acting to attract and retain both entrepreneurial company
founders and key employees. Especially for the biomedical sectors, the proximity to the Bay
Area's universities and medical complex (including hospitals and other biomedical
employers) is particularly important. For some employers, the presence of a local population
that generally has health insurance and higher incomes is part of Tri-Valley's value
proposition.
Looking forward, employers believed that the region could build on its growing strengths in
medical R&D (linking research and health care services, clinical testing, and hospitals), bio-
defense (linking national laboratories and firms), and medical devices and scientific
instruments. To do so will require stronger connections among firms and sectors,
laboratories, and business support services. It will also require continuing attention to Tri-
Valley's current value proposition-especially talent and quality of life.
Another large and growing concentration is business operations
Business operations firms that provide basic functional services such as finance, insurance,
legal, and other administrative support to other businesses. This is an area that has grown as
larger companies outsource and smaller companies buy services rather than add employees.
In 2002, the number of business starts in the region increased dramatically Business
Operations: three times the average number of Business Operations starts were recorded that
year.
Business Operations is a large specialization that is 36% more concentrated in Tri-Valley than
the state of California. This cluster grew at 4.1 % from 1994 through 2004, and has shown
some positive net growth in the last five years (.5%) in spite of the recession. This is the
second-largest specialization in Tri-Valley, with 17,660 employees, or 10.5% of regional
employment.
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Figure 1-17: Business Operations Services
Growth: 53% (1994-2004)
Employment: 22,160 (2004)
Key sectors in business operations include:
. Financial Services-including accepting time deposits, making mortgage and real
estate loans, and investing in high-grade securities; engaging in sales financing or
sales financing in combination with leasing; making cash loans or extending credit
through credit instruments (except credit cards and sales finance agreements); acting
as agents (i.e., brokers) between buyers and sellers in buying or selling securities on a
commission or transaction fee basis; estimating the fair market value of real estate.
. Legal Services-including offices of legal practitioners, providing expertise in a range
or in specific areas oflaw, such as criminal law, corporate law, family and estate law,
patent law, real estate law, or tax law; and drafting, approving, and executing legal
documents, such as real estate transactions, wills, and contracts; and in receiving,
indexing, and storing such documents.
. Insurance-including direct insurance carriers, engaged in initially underwriting (i.e.,
assuming the risk and assigning premiums) annuities and life insurance policies,
disability income insurance policies, accidental death and dismemberment insurance
policies, health and medical insurance policies and other various types of insurance
policies; insurance agencies and brokerages, act as agents (i.e., brokers) in selling
annuities and insurance policies.
. Data Processing, Hosting, and Related Services-including providing infrastructure
for hosting or data processing services.
. F aci/ities Support Services-including operating staff to perform a combination of
support services within a client's facilities such as cleaning building interiors, interiors
of transportation equipment and/or windows.
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. Employment Support Services--including a range of day-to-day office administrative
services, such as financial planning; billing and recordkeeping; personnel; and
physical distribution and logistics for others on a contract or fee basis; listing
employment vacancies and in referring or placing applicants for employment;
supplying workers to clients' businesses for limited periods oftime to supplement the
working force of the client.
Examples of Tri-Valley Business
Operations Firms
Description
Data
Processing
Services
Facilities
Support
Services
Employment
Support
Services
Facilities
Support
Services
ADP Claims Services
Group
Astro Pak Corporation
A provider of automotive claims processing solutions
InTelegy
Specializes in high purity, precision, chemical, and
industrial cleaning
Designs, staffs and supports management of sales and
customer service call channels
Tri-Valley Janitorial
A janitorial company serving businesses over 20,000
square feet
For this report, a focus group that included employers in business operations were asked what
the current value proposition is for this specialization in the Tri-Valley, as well as what the
vision for their industry in the region-and what must be done to achieve that vision. The
current value proposition-or the prime reasons why the Tri-Valley is currently a good place
to locate business operations companies-is a combination of both cost and value. On the
cost side, employers recognize that the region has available commercial space at a cost lower
than much of the Bay Area.
On the value side, the most important asset is the regional talent pool-both residents and
commuters. The region's quality of life also remains a critical asset-acting to attract and
retain both entrepreneurial company founders and key employees. In addition, business
operations companies benefit greatly from the shift to outsourcing among large operations and
the proliferation of smaller companies that choose to buy rather than build business functions
(e.g., finance, legal, human resources). Moreover, with the growing number of very small
enterprises-especially one-person operations-has multiplied the need for personal financial
planning, legal, and other services. Not surprisingly, close proximity to clients is important-
be they large or small companies based in the Tri- Valley, Silicon Valley, or other parts of the
Bay Area.
Looking forward, employers believed that the region would continue to grow in business
operations as large and small firms choose to outsource certain business functions-and as
local firms find that they can obtain high-quality services from Tri-Valley business operations
firms without having to look to other regions. The key for business operations companies in
the region will be to gain "referrals across categories." For example, when a law firm is
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working with a client that also needs financial or human resource services, mechanisms exist
for referrals to happen easily and often. Another critical need is for a stronger linkage with
the other industry specializations-so that firms in scientific and biomedical products and
services, innovation services, and information technology products have access to high-
quality business operations support in close proximity. Like the region's other
specializations, business operations will prosper only with continuing attention to Tri-Valley's
talent pool and quality of life.
Information technology products remains an important, if restructuring specialization
The region still has a large concentration of information technology product companies, but
one that has been restructuring and losing employment since the global downtown in
technology sectors. Nonetheless, this sector remains an important part of the regional
economy and highly concentrated in the Tri-Valley. In fact, Information Technology
Products is the most highly concentrated specialization in the region, at almost four times the
state average. While this cluster averaged 1.8% growth in the last ten years, it was hit hard by
the recession, and has consequently shrunk in the last five years (-4.1 %). Employment in this
cluster did improve from 2003 to 2004, with positive growth of 2%.
Figure 1-18: Information Technology Products & Services
Growth: 19% (1994-2004)
Employment: 12,254 (2004)
Research & Development
Key sectors in information technology products include:
. Software Publishers-including firms engaged in computer software publishing or
publishing and reproduction, operations necessary for producing and distributing
computer software, such as providing documentation, assisting in installation, and
providing support services to software purchasers.
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. Telecommunications Carriers (Wired and Wireless)-including operation of
switching and transmission facilities to provide point-to-point communications via
landlines, microwave, or a combination of landlines and satellite linkups, or
communications via airwaves.
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. Communications Equipment Manufacturing-including manufacturing wire telephone
and data communications equipment, radio and television broadcast and wireless
communications equipment.
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. Electronic Component Manufacturing-including manufacturing semiconductors and
other components for electronic applications; power, distribution, and specialty
transformers; electric motors, generators, and motor generator sets; switchgear and
switchboard apparatus; relays; and industrial controls.
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. Telecommunications Resellers-including purchasing access and network capacity
from owners and operators of the networks and reselling wired and wireless
telecommunications services to businesses and households.
Examples of Tri-Valley Information
Technology Product Firms
Communications Airnex Communications
Carriers
Description
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Resellers
Electronic
Components
Manufacture
Software
Alloptic Inc
FormFactor Inc.
Long distance, international, and digital wireless
telecommunications, high-speed internet access and
web hosting services
Facilitates the implementation of optic networks
Designs, develops, manufactures, and sells
semiconductor wafer probe cards
Sybase Inc
Mobile software solutions for information
management, development, and integration
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For this report, a focus group including employers in information technology products were
asked what the current value proposition is for this specialization in the Tri-Valley, as well as
what the vision for their industry in the region-and what must be done to achieve that vision.
The current value proposition-or the prime reasons why the Tri-Valley is currently a good
place to operate information technology products companies-is a combination of both cost
and value. On the cost side, employers recognize that the region has available commercial
space at a cost lower than much of the Bay Area.
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On the value side, the most important asset is the regional talent pool-both residents and
commuters. In fact, employers noted that there is now "a lot of talent on the sidelines,"
particularly as a result oflarge job losses in Silicon Valley, expanding the available resident
talent pool. Also, employers noted that the region is attractive to "reverse commuters"-
people who live in Silicon Valley, the Peninsula, or other East Bay communities whose
commute takes much less time than driving from or through the Tri-Valley to those locations
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during peak traffic hours. Of course, the Tri- Valley also provides a short commute for
residents compared to commutes to Silicon Valley and other Bay Area locations.
Looking forward, employers believed that despite recent job losses the region could still build
on its strength in information technology products-and could expand into security
technologies through partnerships with the region's national laboratories. However, much of
the growth is likely to be in smaller rather than larger companies, making support for new and
young firms particularly important. As has happened in the past, many ofthese firms may be
acquired by larger companies; or, in a break from the past, they remain small, agile, and
independent enterprises. In either case, information technology products will prosper only
with continuing attention to Tri-Valley's talent and quality oflife.
Industry specializations are widely shared among local jurisdictions, rather than
concentrated in just one or two cities.
Between 1990 and 2002, no Tri-Valley city secured less than 6% nor higher than 34% ofthe
region's new businesses in innovation services, scientific and biomedical products and
services, business operations, and information technology products. These clusters are
distributed throughout the region, with new firms in each ofthe five cities (see Figure 1-18). It
is important to note that many of these firms are very small, but nonetheless an important part
of the regional economy. Also, the percentage of new establishments by specialization can
vary year to year, especially if stronger efforts are made by individual jurisdictions to add
commercial space or otherwise promote economic development. The key point is that
regardless of year- to-year fluctuations in share, each of Tri-Valley's jurisdictions has an
important stake in the region's industry specializations, instead of one or more specializations
concentrated in just one or two cities.
Figure 1-19 Share and Number of Business Starts By Specialization B City 1990-2002
Information Innovation Business Scientific/
Technology Services Operations Biomedical All Industries
Danville 12% (57) 21% (721) 21 % (784) 20%(388) 19% (6,332)
Dublin 10% (48) 9% (296) 11%(411) 6% (125) II % (3,664)
Livermore 19% (89) 17% (590) 13% (511) 18% (345) 21% (6,994)
Pleasanton 34% (158) 29%(1,000) 32%(1,215) 32% (612) 29% (9,580)
San Ramon 25% (119) 24% (805) 23% (884) 24% (465) 20% (6,485)
Growing Sectors Supporting Tri- Valley's Quality of Life
In addition to the four industry specializations described above, a final set of sectors deserves
mention. Together, they provide services that support and enrich the region's quality oflife-
including restaurants, recreation, wine, and hospitality. These industries are important for
local residents and visitors. Their most important contribution is supporting the distinctive
quality oflife ofthe region, rather than providing a source of high-wage jobs as is the case
with the four industry specializations described above. Many of these sectors have large
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numbers oflower-wage jobs (along with some higher-wage jobs), and that fact raises the issue
of housing affordability for workers who contribute to the quality oflife to all residents. In
particular, growth in these sectors enhances the natural and commercial amenities for local
residents, especially the highly-skilled talent who want to live and work in a region rich with
quality job and business opportunities, as well as a superb quality of life.
In the Tri-Valley, employment and establishments have grown substantially in a number of
sectors that support and enhance the quality of life in the region:
. One example is construction, which grew almost 80% between 1990 and 2003,
employing more than 19,000 workers. Construction of homes, commercial space, and
community infrastructure are critical to the region's quality of life.
. Other sectors that have emerged help support the region's quality oflife experience--
including full-service restaurants (also up about 80%, now employing more than 9,500
workers), golf courses and country clubs (now employing almost 900 people, up from
only 240 in 1990), and smaller sectors like caterers, specialty food stores, book stores,
and wineries (all of which have doubled or more in size since 1990).
. According to estimates from the Tri-Valley Business Council and Livermore Valley
Winegrowers Association, the number of wineries has almost doubled since 1997
(from 14 to 26, with several more soon to open), and both grape acreage and wine
production has grown substantially, from about 2,000 to 5,000 acres and 450,000 to
780,000 cases, respectively.
. The number of visitors to the Tri-Valley has also increased substantially, growing
from about an estimated 280,000 visitors in 1997 to over 400,000 last year. The
number of hot ell motel establishments almost doubled (from 23 to 43) between 1990
and 2003.
. The Tri-Valley Business Council's Working Landscape Plan estimates that these and
related sectors supporting the region's distinctive quality oflife could represent $1
billion in annual revenues, which also produce direct tax revenues for local
jurisdictions.
The region's quality oflife sectors are important ingredients in sustaining an innovation-led
economy. They provide an attractive and emiching environment for talent, and revenues to
support public investments in quality oflife amenities such as parks, arts and cultural events,
and other infrastructure. For these reasons, the region's quality oflife sectors also need to be
supported along with Tri -Valley's industry specializations in innovation services, scientific
and biomedical products and services, business operations, and information technology
products.
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II. Tri-Valley's New Economic Role and Responsibilities
The economic role of the Tri-Valley is changing once again-a shift that both benefits and
raises the stakes for the region. As Figure II-I shows, the region has evolved from agriculture
and national laboratories to bedroom communities and back-office operations. In the 1990s,
Tri- Valley developed its own industry specializations in information technology and scientific
and biomedical products, thanks to the addition of branch plants of well-established
technology firms based outside the region as well as new locally-based firms.
As Chapter I shows, the region's new economic identity is a mix of industry specializations
driven by a surge in homegrown entrepreneurship and innovation. The Tri-Valley has
evolved into an innovation economy-one that has a high level of business creation that is
driving growth of industry specializations (especially scientific and biomedical products and
services), as well as a strong and growing specialization in service sectors that support
innovation in other industries (i.e., innovation services). But, as this chapter shows, this new
economic role requires new regional responsibilities. An innovation economy requires a
supportive "habitat" or regional business environment in which to flourish. And, an effective
innovation "habitat" is the product of regional collaboration-public, private, and community
sectors working together to attract and retain the talent, connect resources to new firms, and
preserve and enhance quality of life.
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Figure 11-1 Tri-Valley's Economic Evolution
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"Edge City"
Economic Outpost
· Up to the 1980s
· Defense, agriculture, back-
office processing
· A few large employers
· Large physical developments
(housing and commercial)
· Little regional identity or
cooperation
Growing
Economic Region
· I 990s
· Emerging strengths in
software, communications,
wine, miscellaneous devices
and materials
· Large employers, along with
growing number of smaller
firms
· Growing development
pressures, transportation
bottlenecks, labor shortages
· Region begins to collaborate to
address key challenges
Innovation Economy
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· 21 st century
· Strong specializations in
information technology, scientific
and biomedical products and
services, innovation services,
business operations
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· High rates of business creation,
diverse base of homegrown
headquarters
· Innovation-driven economy
needs supportive "habitat"
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=> talent
=> resources to start firms
=> high quality of life to
attract and retain talent
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· Region's new economic role
requires new responsibilities-a
new level of collaboration
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Tri-Valley's Innovation Cycle: Firms, Specializations, Habitat
The success of Tri-Valley's innovation economy depends on a strong cycle of firm creation,
growing specializations, and supportive habitat (Figure II-2). Innovation is literally the act of
making changes. Management expert Peter Drucker has long maintained that innovation and
entrepreneurship go together. The key to understanding innovation is the power of networks
that allow individual entrepreneurs to connect in new ways. Drucker, economist Joseph
Schumpeter, and others have written that innovation and entrepreneurship as the engines of
the economy-the source of wealth creation, the generator of opportunity for individuals and
society, and the catalyst for "creative destruction" ofless productive economic activities to
make way for more productive ones.
Figure 11-2 The Tri-Valley Innovation Cycle
Firms
Specializations
Habitat
The key to regional prosperity is productivity growth, which is the basis for rising wages,
increasing return to shareholders, and growing per capita income for the region. The basis for
growing productivity is innovation. Over the long term, an advanced economy like that of the
Tri-Valley cannot compete by just lowering costs or increasing inputs; it must innovate or
find new and better ways to combine human and other resources to produce products and
servIces.
In fact, Stanford economist Paul Romer has developed a "new growth theory" that describes
how ideas are the primary catalyst for economic growth. New ideas generate growth by
reorganizing physical resources in more efficient, productive, and creative ways. In this
sense, the "ingredients" (i.e., the physical, human, financial and other resources) are not as
important as the "recipe" (i.e., the ideas) of how to put the ingredients together in new ways.
The challenge before the Tri-Valley is to maintain both high-quality "ingredients" (i.e., talent,
support for new businesses, quality of life) and a continuously-changing "recipe" to sustain
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prosperity. In fact, as Tri- Valley becomes a more innovation-driven economy, the region's
talent base and quality of life become even more important. Anything that erodes the region's
ability to attract and retain talent and maintain a high quality of life (like high housing costs or
traffic congestion) are cause for serious concern and attention.
Assessing Tri-Valley's Innovation Habitat
Tri-Valley's innovation habitat is comprised of three fundamental building blocks: people,
pipeline, and place. People refers to the talent that is available to start or be hired into firms.
Pipeline means the support that helps bring ideas to market through firm creation and
innovation. Place means the place-based assets of the region, including commercial space,
transportation, housing, and the quality of life that makes the Tri-Valley a good place to live
and work.
People
The residents and workers ofTri-Valley are one of the region's greatest attributes. In fact,
Tri-Valley's economic transformation has coincided with major shifts in the region's
occupational structure and the resident talent pool.
There has been a shift to a more highly-educated population. Between the 1990 and 2000
Census, the proportion of Tri-Valley residents with a bachelors degree or more education rose
from 36% to 44% (Figure II-3). Tri-Valley's population is far more educated than California
(27% with bachelors degrees or higher) or nation as whole (24%).
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Figure 1I-3: Percent of Population With Bachelors Degree or Higher, Tri-Valley, California,
and US, 1990-2000
50%
CIl 45%
CIl
...
Cl
CIl 40%
C
l/l 36%
...
0 35%
Gi
.l:
U 30%
l'Il
III
.l: 25%
...
~ 20%
C 20%
0
;
..!!! 15%
::::l
Q,
0
ll.. 10%
...
0
~ 5%
c
0%
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24%
Source: U,S. Census Bureau
1990
IIllIITri-Valley IIIIICA DUS I
2000
There also has been a shift to higher-level occupations in the regional workforce. Between
1990 and 2000 Census, the share of the Tri-Valley workforce employed in managerial and
professional occupations rose anywhere from 22% to 332% depending on the category, while
the share employed in sales and administrative support jobs dropped about 15% (Figure II-4).
Forty-four percent more Tri-Valley workers were employed in management occupations in
2000 than in 1990. Business and financial operations occupations, architecture and
engineering occupations rose by 27%, while the share of residents employed in life, physical,
and social science occupations increased by 65%.
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]00%
c( 80%
()
S
"
~
.. 60%
~
C
,2
g 40%
c:
"
"
c:
0
()
.5
" 20%
ell
c:
..
.c:
()
;j1, 0%
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Figure II-4: Changing Occupations
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-20%
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Architecture
and
engineering
occupations:
Office and
administrative
support
occupations
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Sales and
related
occupations
Business and
financial
operations
occupations:
Computer and Construction Life, physical,
mathematical and extraction and socia]
occupations occupations: science
occupations
Management
occupations~
except
farmers &
farm
managers
Source: U,S, Census Bureau
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The Tri- Valley talent "pool" is larger than its current workforce. Only about half of the
people who live in the Tri-Valley, work in the Tri-Valley-a figure that has changed little in
the last three decades. In 1970, 44% of residents worked in the Tri- Valley, and in 2000 51 %
of residents worked in the Tri-Valley-with the highest percentage in 1990 when 55% of
residents worked in the region. In 2000,21,400 people who lived in the Tri-Valley commuted
to Silicon Valley to work. As Figure II-5 shows, the current talent pool actually encompasses
those who live and work in the region, those who work in the Tri-Valley but live elsewhere,
and those who live in the Tri- Valley but work elsewhere. This last group is a potential source
of future talent in the regional economy-either as workers or entrepreneurs.
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Figure 11-5 Tri-Valley Talent Pool
Live and work in TV
61,500
Work in TV but
don'! jive in TV
78,529
Live in TV, but don't
work in TV 66,350
Source: U,S, Census Bureau
It is important to note that since the last commute data was comprehensively collected with
the 2000 Census, a lot has changed in the Bay Area economy-including a major economic
downturn. It is likely that fewer Tri-Valley residents commute to Silicon Valley. Some of the
increase in new establishments in 2002 and 2003 may be attributed to entrepreneurship by
residents who lost a job in another part of the Bay Area and decided to create work for
themselves closer to home. In any case, the Tri-Valley maintains a large pool of highly-
educated people in high-level occupations who live in the region, and who work in the
region-a critical ingredient for an innovation economy.
Pipeline
Another aspect of the local habitat is the pipeline of business support resources that helps fund
ideas and bring them to market through innovation and entrepreneurship. Indicators of the
health of this pipeline includes research and development dollars coming into the region,
patent generation by local firms as an indicator of the generation of new ideas, and venture
capital received by local firms.
At the front end of the pipeline, federal spending for research and development in the Tri-
Valley reached its highest level in 2003 at $640 million (Figure II-6). Research and
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1995
1996
1997
1998
1999
2000
2001
2002
2003
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development (R&D) spending in the region has averaged an annual increase 4.5 times that of
national R&D spending. Ninety-seven percent of the federal R&D spending in the Tri - Valley
in 2003 came from the Energy Department, with the Department of Health (1.5%) and the
Defense Department (1.4%) making up the remainder. Most cities shared in the increased
spending from 2002 to 2003: Livermore and Dublin saw their R&D funding increase 4- and
3- times as much, respectively. Pleasanton's funding increased twofold. Only San Ramon
saw a funding decrease, from $1.15 million in 2002 to $1.00 million in 2003.
Figure II-6 Federal R&D Spending, indexed to 1993 levels
9,00
X.OO
7.00
6,00
0'
C!
~ 5.00
"
...
'"
'"
~
.. 4.00
"
"
-=
3,00
2,00
1.00
0.00
1993
I.....Indcxcd Tri-Valley .....Indexcd US
Source: RAND Radius Database
At the next stage of the pipeline, the number of patents filed by companies in the Tri-
Valley has increased steadily from 1997 through 2003, from 200 filings to 455, for an
increase of 128%. The filings are widely distributed by city, rather than concentrated in
one or two cities.
Share of Patents,
by city, in 2003
Danville 22%
Dublin 6%
Livermore 24%
Pleasanton 33%
San Ramon 15%
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Compared to the nation and California, this part of Tri-Valley's innovation pipeline has
been getting stronger in recent years (Figure II-7). The region records three times as
many filings person as the state of California, and more than five times as many filings per
person as the United States.
Figure II-7 Patents Per 100,000 Residents: Tri-VaIley Region, California, and United States
1993-2003
180
160
140
III
'E
" 120
"
'iij
12
0 100
0
0
0
~
~ 80
"
"-
III
'E
" 60
1ii
Q.
40
20
0
1993 1994 1995
1996
1997
199&
1999
2000
2001
2002
2003
Year
.....Tri-Valley -W-Califomia US
Source: U.S. Patent Office
Like its neighbor Silicon Valley, Tri-Valley venture capital peaked with the technology boom
in 2000, then dropped off precipitously (Figure II-8). However, while venture capital
investments have recovered modestly in Silicon Valley, venture capital investments in Tri-
Valley declined again from 2003 to 2004, after a slight increase from 2002 to 2003. In 2004,
about $115.6 million dollars worth of venture capital was invested in the region. This level is
slightly below the level of investment in 1997. The downturn in investment may suggest that
fewer firms are meeting the standards of venture capitalists, but firms may also be seeking
alternative funding options.
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1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
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Figure 11-8 Venture Capital to Tri-Valley
1200----,,--,,-,,-
800
1000
600
400
200
Source: PricewaterhouseCoopersfThomson Venture Economics/National Venture Capital Association MoneyTree Survey
Place
The third aspect of habitat is the quality of place. Although quality of place involves the
blending of many attributes-many of which are difficult to measure-this section examines
important indicators including the availability of commercial space, transportation, and
housing availability.
As Figure II-9 shows, the availability of commercial office space and flex space has grown
substantially since 2001-a combination of space coming available through completion of
new construction and firm closures or downsizing. In some cases, space is available for direct
leasing or subletting from another organization that has a larger space it is not fully using. As
a result, there is about 5 million square feet of available office or flex space (i.e., commercial
space that is non-office, non-retail). Office space comprises 2/3, while flex space represents
the other 1/3 of available space. Bottom line: there is much available space for new and
growing firms.
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Figure 11-9 Vacancy in Flex and Office Space
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35,000,000 -----..-------.
I
t 25.000.000
~
!:
"
=
:l 20,000,000
..
~
....
"
!: 15,000.000
"
-=
00
III Space Available for Direct Leasing
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30,000.000
I
o Space Available for Sublet
[]Filled Commercial space
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10,000.000
5,000.000
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o
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
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Year
Source: Newmark and Company Real Estate, Inc.
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In terms of transportation, it is clear that congestion and lengthening commute times continue
to be an issue for the Tri-Valley region. For example, as Figure II-I0 shows, average
commute times for Tri-Valley workers rose almost 19% between 1990 and 2000. Tri-
Valley's location as a gateway to much of the inner core of the Bay Area continues to put
strains on the region's transportation infrastructure.
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Danville 19274
Dublin 13871
Livermore 36693
Pleasanton 31749
San Ramon 24211
TOTAL 125798
Source: US Census Bureau, 1990-2000.
over 16 who do not work at home.
30.9
31.1
31.3
33.3
31.3
31.7
Universe is all workers
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Danville
Dublin
Livermore
Pleasanton
San Ramon
TOTAL
16360
10431
29862
28785
20069
105507
Of all the indicators of place, housing is the most troubling. In the housing area, prices have
continued to rise exponentially in the Tri-Valley, leaving many people out of the housing
market (Figure II-II). In 2005, housing affordability in Alameda and Contra Costa Counties
is below that of Santa Clara County (where 20% of residents can afford the median priced
home)
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40% -----
I
..
e
,g 35%
'0
..
"
'i:
Q,
C 30%
..
:;;
..
e
..
:; 25%
..
III
..
.c
~
6. 20%
.9
..
:is
..
III 15%
'0
'0
.c
..
III
"
o 10%
.c
..
o
~
I:
..
~ 5%
a.
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Figure II-11 Housing Affordability
36%
-+-Alameda County
.......Contra Costa County
Santa Clara County
California
32%
- 30%
30%
00
0%
2000 2001
2004
2005
2002
2003
Source: California Association of Realtors
As of February, only 13% ofthe population could afford to purchase the median-priced home
in Alameda County, and only 10% ofthe population could afford to purchase the median-
priced home in Contra Costa County.
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Moreover, from December 2003 to December 2004, the average ofthe median sale price for
houses in the five Tri-Valley cities rose by 20.8%. Danville had the highest median house
price, $850,000, making that market one of the most expensive in the state. Only one region
in California, the Santa Barbara South Coast, had a higher median house price than Danville.
The median single family home price in Livermore in June of 2004 was $501,000. In fact,
over the last 7 years, the median home price in the Tri-Valley has increased an average of
18% per year, with only 2001 and 2002 (when the economy was in recession) slowing that
rate.2 A household would have to make $112,000 in order to qualify for the Tri-Valley
median priced home, at $480,0003, while the median household income in the Tri-Valley is
closer to $90,000.
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2 US Bureau of the Census. Quick Facts. Last updated Feb 1,2005.
http:// quickfacts.census,gov !qfd!states!06!064 I 992,html
3 California Association of Realtors, "Homebuyer Income Gap Index"
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Quality of place has traditionally been a positive attribute for the Tri-Valley, but that
advantage is now being challenged by housing that is affordable to fewer and fewer people.
In fact, housing costs are all but "closing" the region to certain groups critical to innovation:
. "New" high-level talent (e.g., the next generation of highly-educated talent and
"newcomers" from other regions with those attributes)
. Mid-level talent (e.g., support staff to top-level innovators across the economy, skilled
technicians)
In addition, lack of housing options forces public servants (such as firefighters, police
officers, and teachers), critical service workers (such as nurses), and entry-level workers (e.g.,
many young workers, hospitality workers) to live outside the region, increasing traffic
congestion and putting the region's quality oflife at risk.
New Requirements, New Questions
The region has evolved into a high-quality, innovation economy, which requires access to
highly-educated talent, a constant flow of ideas and resources for business creation and
innovation, and a superb quality of life.
The challenge now is to sustain and build on this initial success. The ingredients for success
are not a given; they can erode over time. Talented people can leave, or stop coming. Quality
of life can decline. Businesses can decide to locate elsewhere. Going forward, the region will
have to ensure that the necessary talent, entrepreneurial business support, and quality of life
are in place to sustain the region's innovation-based economy-and remain competitive with
other regions that are working hard to do the same.
This new reality raises the stakes for the region's public, private, and other community
leadership. A new level of regional responsibility is required to sustain the economic gains of
the past decade. As this report shows, the challenge is beyond the scope of any individual
organization, jurisdiction, or sector; it requires a truly regional, collaborative approach to
focus on a talent pool, a quality of life, and an environment for entrepreneurial support that
extends across local boundaries.
A new level of responsibility does not equate to a higher level oflocal government funding or
more programs during a time of fiscal distress; rather, it means a new level of regional
collaboration among existing government leaders (including local economic development
directors), private sector leaders (including the Tri-Valley Business Council), and other
community leaders (including education)-with all parties focused on the talent,
entrepreneurial business support, and quality oflife necessary to sustain the region's
innovation-based economy.
Are leaders making choices today that support or undermine the region's high-innovation
economy? In the future:
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. Can the Tri-Valley come together as a region to do what is necessary to sustain the
region's innovation economy?
. Will Tri-Valley continue to have access to the talent it needs to fuel entrepreneurship
and innovation if the next generation of innovators cannot afford to buy a home in
the region or commute to the region in a timely manner?
. Will Tri-Valley be able to remain a good location for new, small, innovative
businesses if it doesn't invest in the capacity to match entrepreneurs, resources,
support, and appropriate commercial space?
. Will the Tri- Valley benefit from innovation in its national laboratories without a
practical and sustained effort to encourage companies who work with the institutions
to invest in the region?
. Will the Tri-Valley be able to compete with other regions for innovative talent unless
it invests in and connects its agricultural, recreational, environmental, cultural, and
other quality of life assets?
The next chapter describes the formation of four collaborative action teams that will try to
answer these questions.
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III. Rising to the Challenge: Actions to Sustain Tri-Valley's Innovation Economy
Tri -Valley's new economic role as a wellspring of entrepreneurship and innovation creates a
new comparative advantage for the region, but also raises the stakes. To succeed as a region
whose comparative advantage is entrepreneurship and innovation rather than primarily
strategic location or low costs, Tri-Valley must have a strong innovation "habitat"-a
combination of talented people, a strong pipeline of ideas and funding, and supportive place-
based attributes such as housing, transportation, and quality of life.
An innovation region is highly dependent upon the flow of information regarding new ideas,
technologies, products and services. The Tri-Valley, with such a high rate of investment in
federal spending for research and development, has a unique opportunity to leverage this high
level of investment by developing an effective process for communication and collaboration
between the National Labs, community colleges, research universities, medical centers and
private industry. This must provide for exploration of opportunities for joint ventures,
technology interchange and technology commercialization. A process must also be developed
whereby industry, local government, national lab representatives, and representatives from
higher education and medical centers come together to strategically discuss opportunities for
innovation, new technologies, ventures and industries as well as the sustainability of current
industry specializations.
To address the challenges of people, pipeline, and place, a growing number of Tri-Valley
"regional stewards" are stepping forward to sustain Tri-Valley's innovation economy.
. Tri- Valley's public, private, and community leadership must recognize the region's
new economic role and work together to ensure the region's success. Tri- Valley must
ensure that its growing base of small firms have access to the resources they need to
succeed.
Action: Tri- V alley Innovation and Entrepreneurship Strate2V is bein2
launched to support. expand. and market the re2ion's "innovation
advanta2e." provide a forum for innovative firms to connect with one
another. to 2et referrals to other businesses and resources. and to work
with iurisdictions to ensure local policies are supportive of small.
innovative companies.
. Tri- Valley must leverage the innovation taking place in its national laboratories for
regional economic benefit.
Action: Tri- V alley Invest is a new initiative to help interested business
partners of national laboratories expand or otherwise invest in the re2ion.
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. Tri- Valley must ensure that it has access to the talent required to fuel an innovation
economy. In particular, housing is now increasingly out of reach for the next
generation of innovators, just as it has been for workers who are in support jobs in
innovative firms, or in education or public safety, or other lower-paying jobs.
Action: Tri-Valley Talent is a new initiative to ensure that the re2ion is
makin2 best use of its existin2 talent (e.2.. spouses. retirees). removin2
obstacles to housin2 the next 2eneration of innovators and entrepreneurs.
and identifyin2 and meetin2 the workforce needs of small. innovative
firms.
· Tri- Valley must keep strengthening its quality of life, as innovative talent and firms
flourish in high-quality settings.
Action: Tri- Valley Quality of Life is a new initiative to expand and
connect the multiple assets and amenities of the re2ion from a2-tourism to
arts and culture.
The following sections describe the initial outcomes and strategies proposed by the action
teams in more detail.
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TRI-V ALLEY INNOVATION & ENTREPRENEURSHIP STRATEGY
ACTION TEAM
FOCUS: Promote Innovation & Entrepreneurship as the Region's
Economic Development Strategy
PROPOSED OUTCOMES:
· A new "value statement" for locating in the Tri-Valley, establishing Tri-Valley's
economic identity as a "region of innovation and entrepreneurship".
. A new regional roundtable involving public, private, and community leaders to
promote Tri-Valley as an "innovative region". Roundtable will also provide a forum
for regional issues.
· Increase the number and size of small, innovative firms in the Tri -Valley through
strategic partnering with other firms, customers, and support services.
. A new regional economic strategy that produces measurable growth of region's
industry clusters (i.e., scientific biomedical products and services, information
technology products, innovation services, and business operations).
PROPOSED CORE STRATEGIES TO ACHIEVE OUTCOMES:
. Create a new regional marketing theme, that includes a new value statement (Tri-
Valley as a "region of innovation and entrepreneurship") and defines the region's
areas of differentiation.
. Create regional innovation roundtable and strategy, securing specific commitments
from cities and counties to implementation, including marketing the region. Consider
establishing a non-profit entity to broker collaboration among cities, private sector,
and others.
. Create an innovators forum that increases the number of business to business
partnerships among innovative firms in the Tri-Valley, resulting in growth of
innovative firms. (e.g., cluster-focused networking events)
. Create a Referral Network that increases the number of business- to-business
partnerships among cluster companies (i.e., scientific and biomedical products and
services, information technology products) and innovative services and business
operations firms and consultants, resulting in economic benefits for both parties.
Include as part of the referral network a firm placement system involving the cities,
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business parks, etc., to help innovative firms find appropriate space as their businesses
grow and their needs change.
. Create a web-based regional partnering clearinghouse that identifies the business
capabilities (e.g., list of companies, including specialized service providers, and what
they offer), lab capabilities, (e.g., technology areas, contracting opportunities),
university and community college capabilities, and financing sources (e.g., pre-venture
capital funding). Explore regional partnering clearinghouse as new role for TTEC.
. Create a local innovation support policies brochure, a customized package of public
policies and procedures in each Tri-Valley city to ensure a welcoming environment for
small, innovative companies.
. Monitor economic impacts of regional strategy over time, including growth of
industry clusters, and revise strategy as necessary. Develop lists of current firms by
cluster within each jurisdiction, including pertinent data such as employment, annual
revenues, etc. to establish baseline. Develop program to update and maintain
information.
. Consider the establishment of a "portfolio management" concept for each jurisdiction
wherein they outline their specific industry clusters, determine how each cluster fits
within their economic strategies, establish effective relations with entrepreneurs to
define their growth needs, and obstacles or barriers to success. Develop programs to
respond to "portfolio" needs and ensure the success and growth of their portfolio
clients.
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TRI-V ALLEY INVEST
ACTION TEAM
FOCUS: Encourage business partners involved with Tri- Valley's national
laboratories to invest in the region and encourage public-private partnerships
that produce tangible economic benefits for the region
PROPOSED OUTCOMES:
. Recruit business partners involved with Tri-Valley's national laboratories to locate
company offices and employees within the Tri-Valley Region.
. Encourage public/private partnerships. Develop technology partnerships and
collaborative efforts between business/health services/universities and the national
laboratories.
. Over time, these new investments will spawn additional, measurable economic
impacts in the form of additional employees, spin-off firms, new business for other
Tri-Valley firms, and the like.
. These new investments will contribute to measurable growth of region's industry
clusters (i.e., scientific biomedical products and services, information technology
products, innovation services, and business operations)
. In addition, any new business spin-off directly from Tri- Valley's national laboratories
will keep a regional presence (i.e., offices, employees) in the Tri-Valley region.
PROPOSED CORE STRATEGIES TO ACHIEVE OUTCOMES:
. Create a high-level Tri- Valley Investment Team to work initially with Sandia National
Laboratory to approach industry partners who are willing to be contacted about the
potential of investing in the region. This team will also seek opportunities for
public/private partnerships and technology ventures. The Team will be co-led by Tom
O'Malley ofthe Tri-Valley Business Council, Ron Stoltz of Sandia National
Laboratory and Joe Gabbert, EMC/Documentum. Members ofthe Team include
senior business executives, who can help "make the case" for locating in the region
and can assist in establishing a network to identify technology research needs and
broker partnerships.
. Compile Investment Prospects List working initially with Sandia National Laboratory.
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. Create a Tri-Vallev Investment Package that describes the region as an "innovation
center" with growing industry clusters, and includes basic information about locating
operations in the region.
. Develop an Investment Tracking System that includes a "hot sheet" with the status of
prospects and contact list of senior business executives, government, education, and
other leaders who agree to respond quickly to requests for information and assistance
as the Team works with prospects. The tracking system also measures the economic
impacts of these new business investments over time.
. The Investment Team initially approaches Sandia's interested industry partners, and
follows-up as necessary to secure new investments in the region.
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TRI-V ALLEY TALENT
ACTION TEAM
FOCUS: Create, Attract, and Retain Innovative Talent in the Region
PROPOSED OUTCOMES:
. Increase the pool of innovative talent living and working in the Tri-Valley
PROPOSED CORE STRATEGIES TO ACHIEVE OUTCOMES:
. Help more spouses and retirees to ioin the region's innovation workforce. Provide
specific help for relocating couples-especially in situations where one spouse is
recruited to a company or laboratory and the other spouse seeks a high-level position
as well. Help match retirees from companies and laboratories with firms looking for
expertise on a project or part-time basis. Involve Staffing and Temporary Employment
agencies in this process. Adapt Tri-Valley Jobs to provide these specific connections
or develop Company Network. This strategy also helps offset lack of housing
affordability and reduce traffic congestion by helping two-income families (and
resident retirees) find work close to home. Develop relationship with retiree
organizations such as SIRS.
. Assist local students to gain access to work experience programs such as:
job internships and summer jobs. Continue employer involvement in programs that
help students in their career choices, such as science fairs, career fairs, and Junior
Achievement.
. Market the Tri- Valley as a Job Center. Develop employer profiles and career
opportunities. (Look into whether this could be an expansion of Tri-Valley Jobs.)
Sponsor Regional Job Fairs to highlight local companies and focus onjob
opportunities for local residents or those commuting through the region.
. Expand business/education partnerships to better define career opportunities and
workforce requirements. Consider development of Career Ladder definitions, where
possible. Sponsor breakfast/lunch events to bring educators and business executives
together to focus on workforce needs and education issues. Consider establishment of
Regional Employer Advisory Board to provide continuing dialog on workforce needs
and education programs. Develop computer catalog of education and continuing
education programs within the Tri-Valley region.
. Reduce the impediments to retaining innovative talent in the Tri- Valley by improving
housing affordability. Add a new economic voice to the Tri-Valley Housing
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Coalition. First, make the economic argument that even mid-level professional and
technical talent is being priced out oflocal communities, endangering the long-term
economic prosperity of the region. Match income levels with housing types to show
mismatch. Second, focus on the risk of losing entry-level support and retail workers
to the San Joaquin Valley as that region develops jobs closer to where people live.
Third, focus on the need and opportunity for creative community design, encouraging
mixed use that fits the workforce needs of the emerging economy of small firms in the
Tri-Valley. Develop Employer Contact List of those businesses willing to write letters
or appear at public hearings regarding housing issues.
. Identify emerging workforce requirements and career opportunities in small,
innovative companies in the Tri-Valley economy. Expand outreach to smaller
employers to identify talent needs, connect companies and individuals to existing
programs, and create new collaborative programs, as necessary, to produce people
capable of meeting a range of needs of small firms. Consider establishing a "Tri-
V alley certification" that outlines the unique personal characteristics required for
success in a small company and signifies that a graduate is prepared for work in such
small, innovative firms.
. Identify relocation service firms that can provide consulting to employment candidates
considering the move into the Tri-Valley. Provide consulting on regional quality of
life, housing affordability, school quality, neighborhood values, commutes, home
financing, banking services, etc. Maintain employer awareness ofthe Tri-Valley
Housing Opportunity Center, a collaboration ofthe regional jurisdictions that provides
"one stop" counseling and education services for low income and first time
homebuyers regarding affordable homes for rent or sale, access to public and private
sector lender programs, public agency homebuyer and rental programs, and financial
counseling.
. Develop information regarding child care and sick child care resources within the
regIOn.
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TRI-V ALLEY QUALITY OF LIFE
ACTION TEAM
FOCUS: Enrich Regional Quality of Life
PROPOSED OUTCOMES:
. Expand the high-quality amenities attractive to companies and innovative talent based
in the Tri-Valley and outside the Tri-Valley, resulting in both quality oflife and
economic benefits for the region (e.g., growing business vitality, employment gains,
increasing public revenues)
. Enhance regional Quality of Life by providing more opportunities for local residents
to enjoy parks, trails and open space recreation, access to locally grown agricultural
products, and top level cultural arts and entertainment.
PROPOSED CORE STRATEGIES TO ACHIEVE OUTCOMES:
. Work with the Tri-Valley Business and Convention Bureau and the Tri-Valley
Winegrowers Association to continue to promote the Tri-Valley as a Destination to
other Bay Area Regions (including linking the tourism program to BART). Tout
wineries, fine dining, golf facilities, B&B' s and all other regional assets. Consider
initiating Motor Coach tour ofthe region, with a link to BART. Continue to work with
newspaper and magazine Food/Gourmet Sections to promote local food products and
Livermore Valley wines. Develop expanded annual schedule of special events to
attract people to the area - PGA Golf Tournament, Grand Prix event, music/jazz
shows, bicycle races, running events, local parades, horse shows and rodeos, regional
youth sports events, such as swimming, soccer, or the "Next Generation" to highlight
young musicians and special talents.
. Expand, connect, and promote agri-tourism assets, including development of a "buy
local" branding program and establishment of a permanent market. Develop best
practices, quality standards and conservation techniques for the local branding
program. Promote the concept to local agriculturalists and potential investors to
develop their interest in growing the required products. Consider delivery service to
regional restaurants interested in locally grown products. Develop business and
marketing plan. Conduct survey of restaurants, hotels, food outlets, etc., to determine
interest in participating in local branding program.
. Establish Demonstration Project involving a 100 acre site that includes the agricultural
products proposed for local branding and involvement in the agri-tourism trail. Test
effects of recommended best practice techniques. Test market for locally grown
products.
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. Bring key people involved in tourism and lifestyle businesses into the process to
complete the conceptual development ofthe Agri-tourism Trail. Create video of the
concept, overlaying key aspects of successful agri-tourism programs in other regions
to help people to visualize the potential of the proposed program. Gain "buy-in" from
agriculturalists, city and county officials, tourism and lifestyle business owners,
prospective investors, and the general public. Develop a signage program that
addresses all aspects of the trail, the historic loop, the country loop and the wine &
golf loop. Consider special actions to increase the scenic beauty of the hills, such as
increased planting of wildflowers on the hills.
. Promote arts and social centers, attracting national talent and shows.
. Promote parks, trails, and open space recreation, health and fitness facilities. Complete
the GAP MAP of the potential regional trails system. Encourage local and regional
authorities to complete master trail plans to achieve regional connectivity at an
accelerated pace.
. Attract "Value Added" businesses to complement the agricultural and tourism base
industries.
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IV. Vision of the Future: The Golden Valley
In 1999, a shared vision for the Tri-Valley region was created, the product of hundreds of Tri-
Valley residents who voiced their aspirations in meetings and through a community survey:
Our vision of the Tri- Valley region seeks to preserve the best of our past and our present. We
seek to preserve our heritage as the Valle de Oro as the early Spanish settlers called the
region-the beautiful and bountiful "golden valley." We also seek to preserve our new
economic vitality and diversity, which have brought us a high standard of living and high
levels of satisfaction with the quality of life in our region. Ours truly is a Golden V alley, one
that is rich in both quality of life and economic opportunity, where people can live well,
pursue a career, engage in lifelong learning, raise a family, and build communities where
their children can enjoy these same qualities in the future.
This vision is still relevant today-but the requirements and responsibilities to achieve that
vision have grown as the region's economy has evolved. Today, the region needs not only to
preserve the best of its past, but also understand its present economic situation, and then rise
to the responsibilities required to build a bright future.
Perhaps it will be said that because regional "stewards" stepped forward in the first decade of
the 21 st century, Tri-Valley became one of the nation's most attractive, thriving, and livable
regions of entrepreneurship and innovation. It became known as the Golden Valley-a prime
example of how to sustain economic prosperity and a superb quality oflife through a
commitment to business and community innovation.
The Golden Valley's cities retain their neighborhood feel, expand their quality of life
amenities, and enrich their economies with clusters of small, innovative firms that fit well into
the community fabric. These firms are well-networked and form business partnerships easily,
are well-supported by local policies, can find commercial space efficiently, and work
productively with local education and training institutions to meet their changing workforce
needs.
These firms are the core of the region's industry specializations, enabling the Golden Valley
to compete effectively in the global marketplace. These specializations are rooted and benefit
every city in the region. The region's national laboratories are not only sources of innovation,
but magnets for business partners who, in turn, expand their operations into the region.
The regional economy employs talented people who can afford to live close to their work.
The mix of housing matches the occupational distribution ofthe workforce, providing
accessible options for young singles, families, newcomers, and others.
Most importantly, Tri-Valley's regional stewards are vigilant and able to work together
effectively as new challenges arise.