STATUS TRACKING FOR EXISTING AND PLANNED
TELECENTERS IN CALIFORNIA

This report is prepared in support of the Residential-Area-Based Offices (RABO) Project, known informally as the Neighborhood Telecenters Project, a three-year program underway at the Institute of Transportation Studies (ITS), University of California, Davis. This research program is sponsored by the Federal Highway Administration and the California Department of Transportation (Caltrans) and involves implementing several residential-area-based telecenters and evaluating their effectiveness as a work environment and as a transportation demand management strategy. In addition to the centers being studied in the RABO project there are at least 8 telecommuting centers operating in California, and many more in the planning stages. It is valuable to track the individual and collective status of these centers over time. It is expected that centrally collecting and then disseminating this information will support these and other efforts to establish and maintain telecommuting centers.

This report summarizes the current status of existing and planned telecenters in California, other than those implemented by the RABO project itself. The information was obtained via telephone interviews with site administrators. For existing centers, respondents were specifically asked about the number of telecommuters using a facility, the number of different employers whose workers use a center, and center utilization (number of telecommuters per day). They were also asked about any marketing strategies being used. Finally, any short term future plans that may affect the center were noted. For planned telecenters, administrators were asked for a projected opening date, number of workstations, characteristics of the site location, and any unique features possessed by the center. Marketing plans were also discussed.

In summary, the status of existing and planned telecommuting centers in California is still quite dynamic. Several existing centers have changed management and/or location. There is apparently considerable turnover among telecommuters and employers participating in the various projects. Several new centers are being planned. There is some promise of regional synergy among the multiple Southern California centers; it will be important to follow the extent to which that synergy is realized. As a result of this research, some important factors have been identified. Included are the need for combined marketing efforts serving all centers in a region, marketing to small employers, diversification of the telecommuting center (i.e. providing services to a wider range of workers such as business guests at nearby hotels), and working toward a self-supporting center whose operation does not rely on temporary sources of funding. Also, fear of remote management by some managers is still a barrier to more widespread acceptance of telecommuting.

Brief updates on each center are provided below. A list of contact names and addresses is offered in an appendix.

Existing Telecommuting Centers

The Apple Valley Telebusiness Workcenter in the high desert area of San Bernardino County, is currently being used by 14 telecommuters from 6 different employers. Center utilization averages 3 to 4 telecommuters per day.

The Bay Area Telecommuting Development Program (BATDP) currently has two prototype telecommuting centers in operation. One center is located in Concord, and the other is in San Jose. Both centers opened in September 1993. The rate for a private office is $600 per month and a cubicle rents for $400 per month. The Concord site has 14 cubicles and 3 private offices and is currently used by 2 telecommuters, each telecommuting one or two days per week. The center is near a large mall with a residential neighborhood behind it. The telecommuters are paying the monthly rate for the use of the center. The San Jose site is located one mile south of an expressway in a business area. The location has ISDN capability for video-conferencing. The site has 16 cubicles and 2 private offices. Currently, two telecommuters are using the center and paying an hourly rate for its use. The hourly rate is set at market value for these telecommuters. Marketing activities for the two centers have included: news releases, 8000 pieces of direct mail, radio and print advertising, exposure at trade shows and transportation fairs, a radio talk show, and a sign in front of the centers. The project administrator has noted that none of these marketing strategies were very effective for the centers. He feels that once a center changes from a funded center that is free of charge to a self-supporting center, interest in using the center decreases dramatically.

The Highland Telework Center in San Bernardino County changed hands on January 1, 1994, and is now under management by the City of Highland. Currently, the center is being re-located across the street from its initial location to city-rented space. The new location has 6 workstations in private cubicles and a conference room. No private offices are available. The 1200 square foot center provides service to five telecommuters and has marketing plans to increase the number of users. One plan is to contact local residents and employers and provide them with information about telecommuting. If interest is expressed, an attempt will be made to coordinate a telecommuting arrangement. Also, the City of Highland has expressed the importance of pooling its efforts and experiences with other Southern California centers to develop a large scale, regional marketing plan. The City is currently interviewing to hire a new site coordinator. In the interest of improving the center, interviews will be arranged with the telecommuters to determine if any changes can be made to the center to improve their level of satisfaction.

The Ontario Telebusiness Workcenter in San Bernardino County is also changing hands and will be managed by the City of Ontario as of January 1994. Currently, the center houses employees from seven different employers, and with 15 workstations, averages five telecommuters per day. Similar to the City of Highland, the City of Ontario wants to increase utilization of the center. To accomplish this, an attempt will be made to bring in additional funding from a variety of new sources, and to diversify the types of workers using the center. The center has a fiber optic link installed, which is currently not being used, but which could support advanced telework activities in the future. Short term future plans include using insights offered by the site manager to support marketing activities and better fulfill the needs of telecommuters and potential telecommuters. The City of Ontario has also cited regional marketing as an important tool to increase their pool of telecommuters. Long term plans are for the center to be self-sustaining. Currently, each workstation costs about $500 per month, while rent of only $100 per month is being charged, requiring outside funding to continue operation.

The Telecommuting WorkCenter of Riverside County averages use by 4 telecommuters per day. A total of 15 telecommuters use the site. These telecommuters work for three different organizations. In this center, each organization provides computer equipment for its own employees. Marketing activities for the center are on-going, with the current focus being on the small employer market which to date has not been pursued. Plans in the near future include moving the center to a smaller facility, as costs are too high in the current 8800 square ft. building.

The Simi Valley Telework Center in Ventura County has been open for a year, but currently is not being used. The center features a reception area and four workstations, but local companies have not expressed any interest in using the site. Past marketing techniques have been focused on presentations to employee transportation coordinators. In the near future, a more aggressive marketing plan will be applied in an effort to bring in telecommuters. The marketing will target higher-level company executives and attempt to establish a formal program. The center administrator is applying for funding through the Petroleum Violation Escrow Account (PVEA), available to programs addressing energy conservation.

Planned Telecommuting Centers

The Long Beach Telebusiness Center in Southern California is currently in the planning stages. The projected opening date is September 1994. The 5000 square foot center will have 10 private offices and 40 additional workstations. The site has been chosen at the interchange of the 710 and the 405 freeways. The site is one block from the freeways and is surrounded by amenities including restaurants and child care. Just behind the business area is a residential neighborhood. A preliminary marketing analysis has shown that 61,810 employees commute out of the South East Harbor Region of Los Angeles County every day. Eight thousand employees who commute out of the area live within a one-mile radius of the center. Center marketing will be primarily aimed at employees near the center, but will include the entire region. Marketing strategy is currently being planned and will include a package for corporate executives and public service announcements both on television and radio. A unique feature of the center is that its use will be provided by local hotels to their patrons. For example, an international visitor can take the hotel's shuttle-bus to the center and work or teleconference. The initial start-up costs will be provided by public funding and corporate sponsorship. The center is expected to be self-supporting after three years.

The Pomona Telecommuting Center in Los Angeles County plans to open in January 1994. The location is central to four major freeways and within walking distance of the Los Angeles Metrolink commuter rail system. The 1700 square foot center has five private offices and three partitioned office spaces with a total of ten workstations. The center also has a conference room, reception area and a kitchen. The site administrator has received interest from many corporations, and currently has commitments from four telecommuters. Marketing activities include talking to commuters directly at the Metrolink station and at bus stops as well as contacting large and small businesses. The administrator has noticed that small employers with less than 35 workers are easier to target than large corporations, who seem to be afraid of alternative work environments. As part of the evaluation of the center, the City of Pomona plans to compare the usage from local residents, workers who arrive on the Metro, and workers who arrive using the freeway.

The Rancho Palos Verdes Telework Center in the south west area of Los Angeles County is in the market assessment phase. To begin this assessment, a marketing consultant will be hired. Currently, the center has no direct funding from the city of Rancho Palos Verdes, but is seeking local return funds from Propositions A and C. It is envisioned that the center will use an existing building and focus on many goals. Among those goals will be a reduction in traffic congestion, improved air quality, convenience for employees, and increased employee productivity.

The Santa Clarita Telebusiness Center is also in the planning stages. The expected opening date is March 15, 1994. The center has an extensive list of features including: 3500 square feet with 15 workstations and 5 private offices, a videoconference room with a 40 - 50 person capacity, fax, copy and mail services, a fiber optic link, and a shuttle service for the Santa Clarita Valley. Adjacent to the center is a TMA office and the Valencia Industrial Association office to facilitate the exchange of information concerning telecommuting and other commute alternatives. A marketing analysis has shown that 60% of workers in the Santa Clarita Valley commute out of the valley each day. The round-trip commute distance ranges from 75 to 125 miles. Also, Santa Clarita residents average 40% higher income than those in the Los Angeles region as a whole, implying that there are more white collar workers, hence more potential telecommuters, in the Santa Clarita Valley. The center is located within walking or biking distance for some telecommuters, but the Santa Clarita Valley has a good public transit system that can also serve to eliminate commute vehicle trips. Marketing activities cannot start until the final funding arrangements are reached, but marketing is expected to include newspaper articles, radio advertisements, and direct contacts with employees and corporate executives. Also, interest has been expressed by schools to use the conference room as a classroom, and by local hotels to provide a work setting for traveling businesspeople. For the first and second years, the center will receive funding through the Los Angeles Metropolitan Transportation Authority, although fees will be charged for certain services and rates for center use will be applied as the center becomes self-supporting.