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State of the City Address – February 28, 2007
Mayor Edward Chavez


Photo of Mayor Edward Chavez

It’s Your City – Take Ownership

Good afternoon. It is my honor and pleasure to welcome you to this year’s State of the City event and share with you some accomplishments from the past year as well as a vision for this coming year and the future.

First of all, my thanks to the sponsors for their outstanding support in making this annual event a success; the greater Stockton Chamber of Commerce, especially Doug Wilhoit, Heidi Altamirano and the other Chamber staff; the management and staff of the Stockton Arena; and the City of Stockton staff …. All of who worked tirelessly to bring this event together.

We are again gathered in the Stockton Arena for the Annual State of the City. You will notice that this year there has been some changes. Along with a different menu, we have opened this event to those who may only want to be here for the presentation portion.

At this time, I would also like to introduce my colleagues on the City Council:

  • Vice-Mayor Leslie Barranco Martin
  • Councilmember Steve Bestolarides
  • Councilmember Dan Chapman
  • Councilmember Clem Lee
  • Councilmember Susan Talamantes Eggman
  • Councilmember Rebecca Nabors
  • And our City Manager, Gordon Palmer

Last week the City Council met in a special session to conduct our goal setting for this year.  Much of what I will share with you today is connected to and related to those goals. They, in turn, are the basis for supporting objectives generated by staff and for the subsequent budget.

I will tell you that it is a pleasure to work with our Councilmembers. While we do not always agree on every issue, we respect each other’s opinions and views, and share a cohesive and professional working relationship. This has allowed us to focus our attention on the business of the City and to develop consensus on the proposed Council goals for this year. While the Council still needs to formally approve these goals in the near future, and to concur with the objectives and activities, they are as follows:

  • Reduce crime and improve safety.
  • Maintain an open and thorough process for monitoring the fiscal health of the City.
  • Articulate a vision for the ongoing revitalization of downtown and the waterfront, and continued infrastructure, economic development, and redevelopment initiatives throughout the City.
  • Develop a long-term vision for Stockton to provide for viable development and economic growth with regional consideration.
  • Evaluate the integration of technology in the delivery of services.
  • Develop a housing strategy to meet the diverse needs of the community.

As in the past, the business of the City, the strategies, and the work of City departments all go toward achieving those goals. By way of example, last year at the State of the City, I proposed some strategies that were subsequently approved by council.

Let me share some of what has been transpiring in those areas. First of all, the Mayor’s Task Force on Persons with Disabilities was approved in June, 2006. The Task Force has met numerous times and conducted a Learning Disability Fair in December, which brought over 60 agencies together from throughout the State for a three day event. They have established lines of communication and partnerships with the City, the County, SJRTD, and agencies that serve individuals with disabilities. The Task Force additionally has served as a forum for residents to come forward and discuss issues pertaining to disabilities and the Americans with Disabilities Act. Some members of the Task Force are with us today, and I would like to ask them to stand so that we may recognize and thank them. Certainly, these individuals personify what Churchill once said. “We make a living by what we get; we make a life by what we give.” They have given much in terms of time, talent and resources to make things better.

The Easter Seals building was another issue addressed by the Council. This community was faced with the potential of losing warm water therapy services for those with debilitating illnesses. It was important to the Council that a resolution be created, and with the assistance of City funding, Service First has taken over the building with the commitment of continuing the therapy.

The Strong Neighborhoods Initiative was also approved by Council this past year, allowing the City to leverage its redevelopment tax increment in three areas: South Stockton, Midtown, and North Stockton. Approximately 114 million dollars was bonded allowing us to fund projects such as: street lighting improvements and security cameras; traffic calming measures; traffic light preemptive systems; curb, gutter, and sidewalk repairs; street repair and resurfacing; Airport Way neighborhood service center and beautification; public art; infrastructure improvements to numerous parks; renovations at several community centers; a proposed community center at university park; renovations to fire stations; and over 23 million dollars toward affordable housing projects involving 518 housing units. I am very proud of the work staff has done relative to the Strong Neighborhoods Initiative. We are finally in a position to invest in areas that have typically been neglected over time. It is my hope that these investments will allow us to leverage even more tax increment in the next couple of years.

The success of the City in terms of economic viability is reliant on a number of partners with whom we work on an ongoing basis. I applaud the efforts of the San Joaquin Partnership and the Business Council. An example of those collaborations is seen in the decision by U.S. Gypsum to build their state-of-the-art wall board plant at the port, thereby infusing hundreds of millions of dollars into our city and region.

The success of the Port of Stockton is also success for our city. In 2006, the Port had a record-setting year in ship calls, private sector investment, infrastructure development, and job growth. Lowe’s Building Supply signed a lease to establish a new distribution center, investing more than 30 million dollars; Ferguson Plumbing Supply began construction of a 650,000 square foot distribution center; and the Port recently approved a 100 million dollar project with Pacific Ethanol to build a plant. It is estimated that nearly 400 jobs were created in 2006, generating more than 17 million dollars in new income and benefits. These are family-wage jobs that allow the purchase of homes and spending in our local economy. Again, it takes a concerted effort by many, including our City staff, to produce these results.

For those who do not know, we are also partnering with the Census Bureau in being one of only two pilot sites across the Country in preparation for the 2010 census. This equates to almost 4,000 good paying jobs for the next few years. Their work will also determine future funding based on census data.

Continued economic development enhances the quality of life and supports continuation and expansion of City services. While housing starts are notably down, commercial projects are up, with 37 in the pipeline. Examples are the Weston Ranch Towne Center on 60 acres and some 600,000 square feet; the Origone Power Center at Hammer and 99 on 50 – 60 acres with 500 – 600,000 square feet; and, the life-style center, Stonecreek Village, a wonderful infill project with 150,000 square feet at Pacific and Robinhood. I applaud Jay Allen and Stone Brothers for their commitment to Stockton and all they have done in that area. I particularly look forward to the day the old Lyon’s restaurant comes down and we have an Elephant Bar.

The Enterprise Zone has been expanded to include Rough & Ready Island with the reapplication process beginning next month. The employment picture is also looking more positive with our unemployment rate at 6% rather than double digits. At a recent job fair held at the Fairgrounds, there were approximately 1,000 jobs available and 40% of the positions were filled.

Another outstanding partner in the continued redevelopment of downtown is the Downtown Stockton Alliance. Their efforts helped make downtown cleaner and safer. We look to them to work with us in making downtown a center for jobs, entertainment, and culture. Beyond that, it is critical that housing strategies be developed. I will speak to that in a few moments.

Since the Alliance began ten years ago, there are lower crime rates downtown, a 400% increase in businesses downtown, a 99% increase in property values and a 35% increase in ground-floor lease rates. The Alliance is currently working on a renewal plan for the next ten years which will allow them to work on making downtown Stockton even more vibrant.

As we talk about downtown Stockton, I cannot fail to mention one of our key partners … the County of San Joaquin. I thank the members of the Board here with us today. I believe I speak for the Council as a whole when I say our wish is to work cooperatively with the Board on the many issues that face us. Land use issues, the airport, general plans, the jail, and emergency dispatch are certainly very important. I believe we have more things in common than there are differences, and my hope is that we build on those commonalities. The City Manager and I have recently renewed meetings with Chair of the Board, Victor Mow, and the County Administrator, Manuel Lopez, and we thank them for that. An example of the cooperation that exists is the County Administration building project ….. The County has committed to being downtown and the City has donated lot “ I “, which is bounded by San Joaquin, Sutter, and Weber. While the City Manager and I have expectations of staff, I believe it is important for me, on behalf of the Council, to publicly direct our staff to work cooperatively with County staff and take every opportunity to move issues along in a positive and expeditious manner. I would also encourage my colleagues to engage the Board Members, whether in formal or informal settings. We, our respective jurisdictions, and our residents have so much to gain by working cooperatively that we should not lose any opportunity.

Keeping the discussion on downtown, it appears we are finally on the verge of bringing to Council an updated Special Events Ordinance. Unfortunately, this issue has taken a while to develop. The benefits of the proposed ordinance include combining various applicable ordinances into one for ease of use; listing all requirements under one single SMC section; establishing specific due dates; easing insurance requirements; providing an appeal process; setting the stage for one stop shopping and providing an option for electronic filing via the internet.

The goal of further redevelopment downtown must include a comprehensive plan creating a hospitality zone or an entertainment district. This is vital in complementing all that has been invested and taken place. Rather than a six month time line, I would like to have an action plan in four months detailing potential areas, uses and strategies that will help us attract art and entertainment venues.

There are some forty five projects basically located downtown, along the Channel, and Midtown on which City staff is working. These were reviewed with the Council last week at the goal setting session. At times, because of the number, complexity, and magnitude of the projects, there tends to be a perception that momentum has slowed down, and we are not putting enough emphasis on these projects. This is certainly not true; but, if anything, the Council should prioritize projects and attach reasonable but aggressive timelines. We saw one example of this last week when the Council approved a site and feasibility study for downtown housing, but shortened the contract period in order to get the information and start taking action. In my mind there are some of the 45 projects that need to proceed quickly. There is tentative agreement on the retail pads by the arena; this needs to happen to again complement the ballpark, arena, and the hotel due to be completed this fall. I would expect a work plan to come to Council in the next couple of months for approval.

The Downtown Marina Project also needs to be a high priority so that construction can commence this year. I will ask that council be given periodic updates on this so we can make the appropriate legislative contacts, if necessary. I have already mentioned the County Administration building and look forward to activity at that site soon. Similarly, I talked about the entertainment district and would expect proposals brought to Council mid-year.

Housing is the next critical element to the renaissance of downtown. Urban core housing is the trend among cities across the nation and will help create a vibrant “24 hour” downtown. We need to be aggressive and facilitate housing opportunities now. Obviously, the market is not where it was a couple years ago, but we must be optimally positioned as it rebounds. As mentioned, we approved the study last week. We will be looking at sites, types of housing desired by the market, prices, phasing of projects, assembling properties, the need for potential variances, and possible subsidy until market forces take over.

The City of Stockton has committed significant amounts of funding and resources toward revitalization of downtown Stockton. The projects, as you all know, that have been part of our renovation have included the Bob Hope Theatre, Hotel Stockton, DeCarli Plaza, Weber Point Events Center, the Cineplex, the ballpark, and this arena. Coupled with this, Regent Development is investing over 50 million dollars of private funding in building the Sheraton Hotel currently under construction.

Again, there have been tremendous efforts made toward turning downtown Stockton into a destination area where people want to be. The study, due in four months, will be the next major step in ensuring we keep moving forward. We will also have to explore ways to make infill projects easier to do, whether they are affordable or market rate housing units. To that end, the infill Council of the BIA of the Delta is working with staff to propose changes to the Development Code that will promote development of infill projects along with possible incentives. We currently have standard infill incentive provisions such as use permit fee reductions, density bonuses, variances, and waivers. Proposed incentives should come to us at the same time we receive the downtown housing study.

The need to create a refined process in developing downtown highlights the need to assess how we go about the business of processing developments and projects generally. The City Manager, Councilmember Bestolarides and I are meeting next week with the BIA for a presentation of the matrix program from Sacramento. On the same day, we will meet with a representative from Sacramento for further discussions.

You may recall that two years ago, an ad hoc committee was formed to review the Permit Center and provide recommendations. Their work was completed and forwarded to the Council Community Planning/ Development Committee. As part of their review process, the committee and staff have been informed about a process in Sacramento called the matrix program which streamlines development processes and procedures.

Sacramento defines it as a new approach to the development process based upon development type or product. The goals include reorganizing around the concept of an empowered staff working as a team on specific development types and rethinking traditional methods in which the business of development is processed. The objectives of matrix are to realign the architectural design and review processes, and implement a front-loaded review process, a system that is suited to the special needs of big projects. The underlying principles are to get the customer …. In my mind, whether it is a rehab job, infill project or big development …. To success; value customers and co-workers; and promote safety, livability, and economic vitality. According to Sacramento, the benefits are numerous: such as improved levels of code compliance; improved levels of customer service; single point of contact; customer fit processes; and tools of transparency. Are these not the very same goals, objectives, principles, and benefits we would want for our City and our customers? Woody Allen once said that eighty percent of success is showing up. Well, I just don’t want to show up …. I propose we shoot for one hundred percent success and look for those models that we can replicate or modify to our needs and make our processes successful.

I will be asking the Community Planning/ Development Committee to come to Council with recommendations on how we can incorporate a similar matrix type process in our city. My timeline right now is 60 to 90 days, but Councilmember Bestolarides and I will be in contact further on this. We need to be ready not only when our downtown study is done, but to also manage and appropriately handle the multitude of other projects. Sacramento also has what it calls a common sense policy. Now, I know some of you are probably thinking …. What an oxymoron …. City Government and common sense. In implementing the matrix program, the common sense policy is applied as a resource and utilized when appropriate. We will obviously weigh the benefits and potential costs, if any. But, I am reminded of what John f. Kennedy said, “There are risks and costs to a program of action; but, they are far less than the long-range risks and costs of comfortable inaction.”

In my mind’s eye, I feel we are a little disjointed in how we address housing. We have housing in redevelopment areas in one location, affordable housing in another and other housing developments someplace else. Possibly, under a matrix type approach we can restructure and create teams that would be similar to the Economic Review Committee whose role would be to make projects successful. And we should not overlook technology as a vehicle to enhance service delivery. I am excited about the prospect of improving our ability to serve and look forward to working with the City Manager.

Let me now turn to address the issue of crime. As I mentioned earlier, this is the highest priority for the Council in its goals. There are those who prefer to theorize about the issue and expect all solutions will stem from government. It is extremely important that we all know and accept that crime, gangs, and drugs are not just law enforcement problems. They are community problems. We must realize that crime is the result of other very significant issues: drug addiction, including drug babies, mental health, breakdown in the family structure, generational gang families, illiteracy, poverty, low self esteem; and the list goes on. I bring these up, not to make excuses for what the City may or may not be doing; but, rather to put it in proper perspective. Crime affects our entire community and we must not only be concerned … we must all be part of the solution. It is your City … take ownership.

In 2005 the City Council approved an eight-point Crime Suppression Initiative that included additional funding for enforcement and created a Blue Ribbon Committee. That committee met for a number of months and generated some 30 recommendations in three general categories … enforcement, prevention and rehabilitation. Included were support for increased jail capacity, expanding the Outreach Worker Program that deals with gangs and at risk youth, increasing gang/ drug/ and mental health outreach programs, expanding re-entry programs for those who have been incarcerated, increasing street lighting and security cameras, utilizing faith based institutions for intervention/ prevention services and rehabilitation support.

We have an outstanding Police Department with a highly qualified and extremely competent Chief in Wayne Hose, management staff, and personnel throughout the organization. Just recently, the Chief reported on crime for 2006. Compared to 2005, there was a 2% increase in violent crime, a 4.5% increase in property crime, and a total increase of 4.1% in part one crimes. This trend is much more positive than the double digit increases during the middle of last year. For the month of January, 2007, violent crime was down 4%, property crimes down 6.1%, and total part 1 crimes down 5.7%. These are the kinds of results we all want to see and maintain.

There are a lot of things happening to combat and reduce crime in Stockton. Many in our community only know what the media presents. Well, let me assure you, there is a whole lot more being done. Just because you do not see or read about the positive, aggressive, and successful efforts being done, doesn’t mean they are not happening.

 To be sure, we must continue to do all we can to give the Police Department the tools to do their job. Having said that, we cannot arrest our way out of the crime problem. We need a larger jail facility because we have not kept pace with the overall growth in our county. The County has engaged an updated Jail Needs Study which should be out in several months. We, at the City level, will work with and support the County in their efforts on the County Jail. The majority of those incarcerated are by City Police Departments, and the largest numbers of those are by the Stockton Police Department. I extend my commitment, and that of the Council, to support and explore ways to work with the County to increase facilities. It is important to note that building a larger jail is only part of the equation; staffing, operations, and maintenance are very costly and need to be part of the solution.

At our recent goal setting session, the Chief briefed us on some new strategies he is implementing to recruit and retain Police Officers. This is a State-wide issue, but we were encouraged with his report to enhance recruitment efforts, shorten the testing and background process, and provide incentives to attract officers. The Budget and Finance Committee recently reviewed the addition of 16 more Police Officers in next year’s budget. This will be brought to full Council during the budget process. As a Council, we will provide the Chief and the department the funding needed to recruit and add more personnel. I am asking the City Manager to have the Chief develop a strategy for hiring additional Police Officers for the next five years so that the Council has a clear understanding of the resources required and the associated costs. This should be done in conjunction with this year’s budget cycle so we have a global perspective for future years.

In reviewing the report that was done by Anthony Braga last year, a number of the key recommendations have been implemented or are in the planning stages. These include hiring of more Police Officers, concentrating on violent crime hot spots, expanding the Gang Violence Units, and reinstituting Operation Peacekeeper which brings a broad spectrum of law enforcement in face to face meetings with the more violent gang members.

A few months ago, the Council approved increased funding for more outreach workers that will be out on the streets and neighborhoods interacting with gang members, defusing potential problems, and providing references to needed social services.

A few weeks ago, it was brought to my attention that Metro Air Support, the non-profit organization that maintains and flies a helicopter in support of Stockton P.D. needed funding. I have met with Metro Air, and am asking the City Council for support in funding 40 thousand dollars for the remainder of this fiscal year for the helicopter program. This will provide a definite revenue stream and allow them to stay in the air as we assess their services further and determine future agreements. A helicopter provides expeditious support to units in the field and has tremendous potential as a tool for law enforcement.

We have provided additional tools to the Police Department in the form of a Street Racing Ordinance; an updated Graffiti Ordinance; a Community Safety Ordinance that targets locations and property owners that allow illegal activity such as gangs, drug sales, and prostitution. The Police Department has been active in conducting a number of missions toward parolees, probationers, sex offenders, illegal racing, and illegal cars. All of these are meant to add to our tool box of strategies in creating a safer City and adding to the quality of life.

The Community Partnership for Families has been in existence for several years providing services through the neighborhood service centers. C.P.F. is a coalition of neighborhood groups, schools, social service agencies, criminal justice agencies, City and County government, and the business community. C.P.F. works on building strong and resourceful families with a particular focus on building financially self-sufficient families. Additionally, they have a track record of working successfully to reduce juvenile crime and delinquency. Over a one year period a total of 905 families were assisted at four resource centers. In working with those families, there was a 47.5% decrease in cps interventions; a 71.4% decrease in juvenile arrest rates; and a decrease in unexcused school absences and suspensions. The Community Partnership for Families is a viable entity in reducing crime. As such, I am recommending that funding to them from the City be increased to a total of $150,000. Again, we must capture those assets in our community that have taken ownership and are producing results.

There are two additional strategies that I am proposing. The first, a Community Gang Prevention Task Force that would utilize existing law enforcement resources; a renewed Operation Peacekeeper effort; outreach workers; and expand to include parents, community service organizations like the community partnership for families, faith-based organizations, and schools. San Jose has had a similar model for several years and with very positive results. Working together, the Task Force can and must develop and coordinate programs to prevent, intervene, and suppress gang activity and crime in response to changing needs. Collaboration is the key ingredient with a focus on youth, families, and outcomes. I believe we have a number of resources throughout our City and we need to make the best use of them.

I have had the opportunity and pleasure to meet with pastors and ministers on a quarterly basis over the past two years. A lot of our discussions have centered on the issues of crime, gangs, drugs, and what some of their ministries are doing. We would be negligent if we did not incorporate the services of programs like Point Break Adolescent Services, Victory Outreach, New Harvest Men’s Transitional Program, Hope’s Angels, and the Stockton Leadership Foundation. For too long we have fallen back on the separation of church and State as the reason why we cannot support prevention and intervention programs that are run by the faith community. That thinking must stop; there are ways; other cities have found them. The Stockton Leadership Foundation is new to Stockton and fashioned after a similar effort in Fresno. It is a faith-based organization comprised of civic, business and religious leaders devoted to the improvement and transformation of Stockton into a community of hope and charity.  I know there are a number of ministers in attendance today. You understand this is your City and I ask that you stand with me to show that you also take ownership. Thank you … and please, anyone else who wants to take ownership can stand as well.

The second strategy would work hand in hand with the community Gang Prevention Task Force and focus on strengthening our neighborhoods. This is not to be confused with the Strong Neighborhoods Initiative that addresses infrastructure and capital projects. The Strong Neighborhoods, or “Neighborhood Renaissance” as Councilmember Lee calls it, would be built by developing community leadership and working collaboratively with residents to achieve delivery of City services and neighborhood priorities. Staff has already taken a look at what San Jose has done in building strong neighborhoods, and I truly believe staff understands what the Council is hoping to achieve. The organizing model and strategy are in place for us to replicate or modify accordingly. Strong neighborhoods will be healthy neighborhoods with residents willing to take ownership … yes, I said, “ownership.”

Citizen participation is critical in developing clear priorities with two-way accountability. I have discussed this with the City Manager and we realize the City would have to hire community organizers that would work with various City departments, social service agencies, and, more importantly, the neighborhoods. As Councilmember Eggman has indicated to me, the goal is to create healthy neighborhoods with a strong healthy quality of life for all residents. Indicators could well be, ownership, of course, reduced crime, safe gathering places, identity, and the provision of adequate services (housing, human services, schools, etc.)

I mentioned that staff has already started some preliminary work on this. I am asking the City Council to support me in directing the City manager to develop a model and an implementation plan, and to bring an initial presentation to Council within 90 days. This plan should encompass both the Community Gang Prevention Task Force model and strong neighborhoods. Both of these strategies are intended to focus on and reduce crime and create a safer community, neighborhood by neighborhood.

Elected officials are subject to criticism regardless of what they do or not do. That is the nature of the position. This Council is not sitting on its hands and letting opportunities for our city go by. Significant efforts have gone into rectifying some legal, contractual and construction issues this past year. The vision of continued redevelopment in downtown, enhancing economic development, creating more affordable housing, and having a good quality of life and a safe community is strong. The strategies with the corresponding timelines will get us there. I will not bankrupt this City in an attempt to achieve some perceived legacy, nor will I tie the hands of future Councils to fiscally manage this City. The goals and priorities will be balanced with whatever financing means can be structured to achieve them. For those who cannot or do not accept this, I do not apologize nor make excuses.

As I look around this arena, I see those who have supported this city and want the best for our residents. I ask you to stay the course. Remember this is your city … be part of the solution … take ownership.

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