HomeMy WebLinkAbout09/01/1998, C2 - PARTICIPATION ON CENTRAL CALIFORNIA COAST RESEARCH PARTNERSHIP council '".-a`D� y-i-ff
j agenda Report N�
CITY OF SAN LUIS OBISPO
FROM: John Dunn, CAOPt/. 'r"lf
SUBJECT: PARTICIPATION ON CENTRAL CALIFORNIA COAST RESEARCH
PARTNERSHIP
CAO RECOMMENDATION
Endorse staff participation on the board of directors of the non-profit "Central California Coast
Research Partnership" (C3RP), established to oversee the effort to enhance research and
technological incubator activity in the City and County.
DISCUSSION
Background
On March 18, 1998, the City Council held a study session with representatives of a non-profit
being formed to promote a business research and development relationship between Cal Poly and
emerging, technology-oriented companies (Bob Schiebelhut and Dr. Allen Haile). On April 7,
1998 the City Council adopted a resolution encouraging Cal Poly to play a leadership role in
furthering the endeavor. The Council also endorsed City involvement in the effort, including
helping to assure that public involvement is an integral part of subsequent work.
On August 11, 1998 a community workshop was held to present the results of a feasibility study
undertaken by the Bechtel Corporation. The purpose of the study was to determine if the pre-
conditions exist to establish such a research initiative locally. The study's executive summary is
attached. In short, the study concluded that conditions exist locally to establish a strong research
and development collaboration with the University. The study also reached the following key
conclusions:
• That such an effort should be"indigenous"(aimed at supporting businesses already here);
• That a large real estate development is not an appropriate model for San Luis Obispo.
• That a phased approach should be pursued, starting with pilot projects and panterships.
Participation on Board of Directors
The next major steps in the process are to complete the formation of the non-profit organization
that will oversee the effort and to initiate one or two pilot relationships. Based on public input at
the August 1111 workshop, the Board is broadening its membership to include member(s) to
represent environmental and other interests.
Council Agenda Report—Local Research Park Initiative
Page 2
The Board also wishes to include City and County staff among its directors and has requested the
involvement of the Assistant CAO (Attachment 2). Over a period of several years, the City
Council has established goals supporting strong ties among our higher education institutions, the
business community, and city and county government. Attachment 3 outlines several City policy
links to this effort. Therefore,participation on the board is consistent with City goals.
The City Administrative Officer concurs with the Assistant CAO serving on the Board. This
recommendation is based on the need, at least at this early stage, for high level City
representation(most board members are at the president or vice-president level). In addition,the
Assistant CAO supervises the City's Economic Development Program and is very familiar with
the City's interests and sensitivities. The City's Economic Development Manager will also
continue to be integrally involved in the program, including attending board meetings.
Non-Profit Naming
At a meeting held on August 21, 1998, the board of directors agreed to name the organization the
"Central California Coast Research Partnership". In selecting this name, the board felt that
substituting "Partnership" for"Park" (previously used) would better define the current effort and
avoid unnecessary misunderstanding.
FISCAL IMPACT
Although there is no fiscal impact associated with an appointment to the board, staff time will be
required. For at least the first few months,regular meetings have been set for every other Friday
from 8:00 am. to 9:00 am. There is also likely to be occasional special meetings and sub-
committee activities.
ALTERNATIVES
1. The Council could decide that the City not participate on the board of directors. Given the
City's past policy support for this idea, and especially since the concept is intended to
support exactly the kinds of businesses the City wishes to encourage, this alternative is not
recommended. In addition, the effort is likely to continue with or without the City, and it
would be much better for the City to be integrally involved in order to influence the initiative
to best meet City goals.
2. The Council could appoint a Council member to serve on the Board. Council members
already have a substantial workload, and this activity does not seem to warrant a further
meeting assignment. In addition, the appointment of a Council member would create the
need for full Brown Act compliance—a level of formality not desired by other members.
ATTACEM1ENTS
1. Bechtel Study Executive Summary
2. Letter requesting staff participation
3. City Policy links to business research park(March 18, 1998)
ATTACHMENT 1
CALIFORNIA
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The California Central Coast
Research-Park (C3RP) task force,any
ad hoc group of volunteers; commisw ;
sioned Bechtel Infrastructure Corp:
to assess the conditions under I _
which a university-related.research -
park would be viable in'the.San.Luis
Obispo region' As part of this study,
..many research parks throughout the '
nation were analyzed and several
university-related researcfi parks
were visited to determine the key'
success factors common to suc-
ce,,mWl research parks,
- ■ Research and develop- ment collaboration, the for high quality space in
ment are fundamental "no growth"attributes of San Luis Obispo
activities for competitive- San Luis Obispo must be
ness in a networked glob- accommodated ■ An indigenous develop-
al economy, marked ment strategy will be bet-
today by rapid technologi- y Initial development ter received within the
cal change should be phased to mini- community and should be
mize up-front carrying the cornerstone of the ini-
■ Research and develop- costs and maintain flexi- tial phase
ment firms offer the great- bility to adapt to techno-
est benefits to both Cal logical changes ■ Incubator
Poly and San Luis Obispo facilities
A research park based and corpo-
•University-related on a large real estate rate '
research parks foster development is not an alliances
research and development appropriate model for San are key factors for suc-
firms through a collabora- Luis Obispo cessful collaboration in
tion between the universi- the initial phase of an
ty and the private sector The "seed indigenous development
bed" model strategy
-Key factors for success- of research
ful collaboration are a park devel- - • Successful research and
strong university commit- opment development collabora-
ment,including financial embodies "' tion requires a long-term
commitment,and close many of the current char- investment and a long-
proximity to the universi- acteristics of the San Luis term commitment
ty core campus Obispo region and could
offer valuable lessons for
■ A successful research successful collaboration
and development collabo-
ration must be based on An exogenous develop-
linking the ment strategy,whereby
excellent R&D divisions of exist-
knowledge- _' ing corporations are
based - recruited to a
resources at region, is both _ 4 .
Cal Poly t- expensive and
(e.g.,engineering,com- incompatible "
puter sciences, agricul- with the
tare,business) with the objectives of -
private sector San Luis x>...;.
Obispo's
• A successful collabora- stakehold-
tion must further leverage ers
the existing strengths at r
Cal Poly(e.g., applied Existing -
research) and in San Luis corporate
Obispo (e.g.,strategic interests make �.
location) an indigenous
development
■ While there is broad- strategy plausible, ` -
based community support as demand by technol-
for research and develop- ogy firms appears to exist
Conclusion
Cal Poly and San Luis Obispo have
the fundamental qualities and attrib-
utes on which to build a research and
development collaboration. While
they can learn from the experience of
existing research parks around the
country,none serves as the precise
model for the unique opportunities in
San Luis Obispo.
The conclusions of this study suggest
that the path forward include adapt-
ing the successful practices observed
from research parks throughout the
country and the characteristics of suc-
cessful research park development
models and tailor them to the various
opportunities and challenges that
exist within San Luis Obispo and Cal
Poly. A phased approach should be
promoted that focuses first on pilot
projects and alliances. Experience
gained from these pilot efforts will
better assure the successful creation
of a research and development collab-
oration.
72Y
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ATTACHMENT 2
Technology R & D, Inc.
Post Office Box 31
San Luis Obispo,California 93406
805-541-2800
August 21, 1998
John Dunn HAND-DELIVERED
City Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo, California 93408
Re: Technology R&D, Inc.
Dear Mr. Dunn:
As you know, Technology R&D, Inc. was formed to establish a meaningful research
collaboration between the higher educational institutions and the private sector in our community.
In order to assure broad participation,we very much desire that the City appoint a staff person,such
as Ken Hampion,to participate as a Director on the Board of Directors.
We don't take our request lightly. We recognize that the demands upon City Staff time are
ever increasing; however,we really do feel our effort is an important one and would appreciate the
assistance as requested if at all possible.
Thank you for your consideration.
Very truly yours,
T HNOL GY R ,
R B K. HIEBELHUT
Chairperson
RKS:tlg
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cc: Ken Hampion(via hand-delivery)
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ATTACHMENT 3
MEMORANDUM
DATE: March 18, 1998
TO: John Dunn, CAO
FROM: Ken Hampian, ACAO
Diane Sheeley, Economic Development Manager
SUBJECT: City Policy Links to Business Research Park
You asked that we research the City's policy background and "linkages" to the concept of a
business research park. Our findings are outlined below. You will note that some of the
linkages are direct, and others more indirect.
Business Research Park Committee (the first one)
During 1993, an informal committee was formed for purposes of discussing the potential for
creating a business research park either on the Cal Poly campus or elsewhere (e.g. Orcutt
Road). The Committee included Cal Poly representatives (Robert Koob, Frank Lebens), the
County CAO and a Supervisor (David Blakely), the City CAO and Mayor, the Chamber
Executive Director and President, and representatives from Cuesta College. Initially, the
committee was called the"Business Research Park Committee".
The 5 C's Committee (Cal Poly, Cuesta College, County, City and Chamber), as it later came to
be called, eventually ceased pursuing the research park idea, largely based on the availability
of the Norm Beko/Orcutt Road industrial subdivision, the uncertain status of the Airport Area
(at that time) and the perceived lack of a "champion" to purse the idea. The Committee turned
to other matters, becoming the base group for the sponsorship of the first Electronic Village
Conference. After Dr. Koob left Cal Poly, the Committee ceased to meet.
Economic Strategy Task Force Report Implementation
The first two references to a research park were in the October 1", 1993 "Recommendations of
the Economic Strategy Task Force", as stated below:
1. "Continue working closely with the County of San Luis Obispo and Cal Poly in support of the
development of a business research park." (page 25, under the heading of "Industry")
2. "Establish a Partnership Committee consisting of the City of San Luis Obispo, local
business leaders, and Cal Poly and Cuesta officials to identify and implement collaborative
programs for supporting mutual goals, such as taking better advantage of technology and
research resources." (page 27, under the heading of"Education)
In March 1994, the Council took action on the implementation of the various ESTF
recommendations. With regard to #1 above, the Council affirmed continued representation on
the "Research Park Committee" and directed the Assistant City Administrative Officer also
attend the meetings. With regard to #2, the Council concluded that the Research Park
Committee could fulfill the role, rather than creating a new"Partnership Committee".
1995-97 Financial Plan
In this financial plan, the City Council approved expanding the Economic Development Program
to add staff and business recruitment goals. In addition to this "expansion goal", the Council
included a Major City Goal to assure commitment to previous economic development goals,
which was stated as follows:
"Implement the Economic Development Program approved by the Council in 1994"
The goals approved by Council in 1994 included the two ESTF implementation actions outlined
earlier.
In addition, the 1995-97 Financial Plan Economic Development Program Description (page D-
119)affirmed that ongoing activities should include:
"Collaboration with Cal Poly and others concerning such things as a conference facility and
business incubators•
Targeted Industry Cluster Committee (TICC) Report and Work Program
Although the 1997 TICC report did not explicitly mention a research park, two related goals
were recommended and ultimately endorsed by the Council:
• "Develop stronger networking linkages with Cuesta College and Cal Poly"
• "Support the development of incubator space"
Summary
Over a period of time, there has been the general realization that the community "underutilizes"
our higher education facilities of Cal Poly and Cuesta College, and that the research park
concept represents an opportunity to form tighter linkages between the City's economic
development initiatives and these educational resources.
Therefore, either directly or indirectly, some formal goals have been established by the City
Council to encourage a closer economic development relationship with Cal Poly and Cuesta
College. Some of these goals have been supportive of a research park concept and/or
incubator space to encourage the kind of clean, high-tech jobs sought by the City.
The City has not, however, taken any position as to where such facilities should be located.
Locations that have been discussed at one time or another by various parties have included an
Orcutt Road/Broad Street site, the Airport Area, and the Cal Poly campus. However, the City
Council's actions have only related to the concept, and have never dealt with the question of
location.
gtampian/policy links