State of the City 2004

Good afternoon. It is my pleasure to be with you today, and certainly a pleasure to join you in honoring our Congressional representatives for their outstanding bipartisan service to our City and this Region. We are so very fortunate to have this team working on our behalf for the economic progress of our community. Thank you also to Doug Wilhoit, Renna Beinoris and the entire Chamber staff. A big thank you always to the City staff that assist in this event to make it an annual sell out. Thanks to Outback Steakhouse, and again, The Port of Stockton’s hospitality is unmatched. Thank you each and every one of you for being here this afternoon.

Although I will quote Thomas Jefferson twice in my comments today, I believe the following Jefferson words best describe the majority of this City Council’s commitment to the state of our City. Jefferson said: “Our part is to pursue with steadiness what is right, turning neither to the right nor left for the intrigues or popular delusions of the day.” Assured that the public approbation will in the end be with us.” This Council has stood tall and steady to do the right thing and has not given in to the delusions of the day.

I am pleased to present you and all of the citizens of Stockton with what in many ways has been the best of times for our city. This of course is not to say that there have not in the past few years or will not exist challenges in the coming year, and we will make mention of those hurdles along with the current and proposed positive changes in this great City.

This will be my last opportunity to present The State of the City to the citizens of this wonderful community. I want to thank my colleagues on the Council for their great service to the city, and a special thanks to the three members that came on the Council when I did, Vice-Mayor Gloria Nomura, and Councilmembers Larry Ruhstaller and Dr. Nickerson. We came on together 7 years ago, barely acquaintances and now I believe lifelong partners fused in the future of this city that we all love and have devoted our very best to for the last 7 years. I appreciate each of them and their devotion to Stockton.

This has been, for the most part, a Council devoted to attacking the problems of our City, not one another. I pray with some concern that, that will remain our purpose throughout this year because it has served the city well. We came into this office to change the way things had always been done. We came into this office to change a stagnant image. And we came into this office to change a troubled course. I believe that we have kept our promise, and created hope and expectations for Stockton’s future.

When I visit with people throughout California, they ask, “What’s going on in Stockton? I hear and see great things.” Folks drive back through our city for the first time in years and are amazed at the results. To quote the University of the Pacific, Eberhardt School of Business “Business Outlook” publication of the 3rd quarter analysis 2003, “Stockton continues to be recognized as one of the best places in the nation to live and conduct business.”

• Forbes ranked Stockton 14th in the nation in job growth (may 2003)

• California CEO magazine ranked Stockton 7 th as one of the best cities for business “out of over400 cities throughout California ” (Feb 2003)

• Stockton was one of only two California cities with net job increases 2002

• Stockton won 1st place from the National League of Cities' Black Caucus for our Racial Harmony and Fairness Taskforce

We all know these were not the stories written about Stockton in years past. The stories of the past were about lost opportunities, skyrocketing crime, blighted Downtown and Midtown, and City Management and policies that chased business and investors away. That culture and attitude has changed. And thanks to City Manager Mark Lewis, we now welcome business, hold hands with diversity and plan for a new, vibrant Stockton.

This has been a time of accomplishments. Oh, maybe we didn’t follow a process that pleased everyone, but we are well aware that pleasing everyone is not always possible. Process without progress is a huge waste of our time and taxpayers’ money, and in fact that is what occurred in our city for the forty years prior. Debate for the sake of debate, for forty years folks have talked about a new downtown, dusty and shelved studies, one after another, and more debate and finally nothing done – but you know what? We did it. Some folks feel that we didn’t listen, but we did listen. We just didn’t always agree, and that should be OK for both sides in a democracy. Nobody can deny that we are in a better place today even if the road was sometimes bumpy getting there. Amidst political and targeted cries of foul play, your Council refused to take its eyes off the ball. It focused on hitting a home run for you and future generations. This Council has been consistent and steady in its commitment to produce a proud and fiscally responsible city government for its citizens. Government’s size has been reduced, we have had a structurally balanced budget for the last two consecutive years, and that had not been done in over 20 years in our city.

Again, I like Jefferson’s words to describe the Council’s dedication. Jefferson said, “When we see ourselves in a situation which must be endured and gone through, it is best to make up our minds to it. Meet it with firmness and accommodate everything to it in the best way practicable.”

This Council has met challenges with firmness and conviction. We have enjoyed teamwork with the City’s Economic Development Department and Steve Carrigan, the San Joaquin Partnership and Mike Locke, along with a new positive city attitude toward economic development that is paying dividends to our citizens and our job market. The dramatic increase in new housing construction in our area has attracted significant new building related industries to Stockton such as Golden State Lumber, Simpson Strong Tie, and many more creating over 500 new jobs in just this area alone. Of course new retail and entertainment follows new home construction and the new planned retail on our city’s edge will amount to over 5 million dollars sales tax revenue to our City and its general fund which will continue to support enhanced police protection for our citizens.

This month Stockton was awarded a 6 million dollar water and rail (EDA) grant, the largest the nation will award this year came to our city. It will provide a reliable water source to south Stockton and new rail access for new jobs. This is expected to create over 16,000 jobs and over 800 million dollars in private investment in the next ten years and thank you to the Bush Administration and US Secretary of Commerce Donald Evens for this grant. Thanks to City Grants Writer, Alicia Duer. That grant came our way because we get, we have demonstrated leadership in job creation and cost control.

As we work to attract businesses to locate here, we are attracting a diverse work force, making our city acceptable to a variety of individuals by enhancing our city’s appearance and the overall quality of life through civility, tolerance, and providing livable neighborhoods and a viable downtown and entertainment district.

Parks and Recreation has developed over 30,000 volunteer hours serving over 4 million folks in parks and recreation programs. Parks and Recreation has partnered with the Boys and Girls Club, The Housing Authority, Mary Graham Hall, Children Shelter, Red Cross and many others to serve our citizens while not growing its size, but rather partnering with existing programs where no youngster is left out.

The City has turned its attention to policies that will protect our future to insure a quality of life for newcomers and future generations. New development codes and design guidelines when passed will improve the look of our City and speed up the planning process while saving City resources and taxpayers’ dollars that can be used to fully fund our public safety efforts.

Code enforcement inspections will continue to work toward the elimination of blight one step at a time while improving overall safety in our community’s future and encouraging reinvestment in our central city.

This City continued to invest in more than just utilitarian items, we moved forward with Public Art projects, After School and Youth Commission projects, including progress on the Teen Center conversion of the former El Dorado Bowling Alley as a safe and fun place for today’s teens. Last year, Ice on the Delta attracted 31,000 people to downtown in just one month and private sponsorships totaled $118,000.00, Thanks again to City associates Steve Carrigan, Alicia Duer, Bob Bressani, Johnny Ford and the sponsors.

The Stockton Arts Commission completed its first full year under the Parks & Recreation Department by achieving two of its longtime goals. The City Council adopted the City’s first Arts Master Plan. At the same time, the Council adopted guidelines for the Stockton Arts Commission to use in making annual grants from a City Endowment for the Arts established by the Council with a 1 million dollar contribution from landfill sale proceeds in 2001. The Stockton Arts Commission’s 26th Annual Summer Arts Program enrolled children in grades four through eight in daily morning art and music classes for three weeks. Vince Perrin will be retiring from the Arts Commission, and I want to thank him for his years of service to the arts in Stockton.

The City continues to move away from the “we have always done it that way” attitude. We now look to solutions that benefit all of the over 260,000 citizens of our community. Not just the few. We were successful in leaving aside the past debate of a philosophical nature, which I agree there can be much disagreement. We looked then at what is best for all the citizens on a long-term basis while exercising the principals of representative government.

We reduced the nonessential role of government, so we could then focus on Public Safety and a balanced budget. The council moved to contract out its Municipal Utilities, over claims of not enough public input, those claims occurred after 96 hours and 17 minutes of public input and after being on the public agenda for open discussions 48 times in 4 years, hardly a rush to judgment. That project is saving the city $500,000.00 a month and is slated to do that for the next 19 years and I daresay I don’t think anyone is drinking the brown water we were promised by the project’s opponents. And even though we have a legal environmental challenge, no one can deny that the physical plant is working just as planned and promised with huge operational improvements.

Two years ago, the City Manager and I reached an agreement with the Chamber of Commerce to bring forward, for Council approval, a resolution that would gradually and responsibly reduce the City’s utility tax. The City Council adopted that resolution and this year begins that gradual reduction of a tax that has been in place in our city for over 50 years.

The Council finally moved its garbage service into the 21st century, to meet state required mandates or face serious fines. Again, we overcame the folks that said we have always done it that other way.

And the very night the City voted to go into the 911 ambulance transport business, this City, the 13th largest city in California had only one ambulance in service for its 260,000 citizens and that ambulance had to be summoned from Manteca to respond to a local emergency. All citizens are the benefactors of our 911 transport service, because we recognized that if there is one essential obligation of government - it is the safety of its citizens.

The Stockton economy has never been better. We have the highest number of jobs in the City’s history, the highest building permit valuations, highest sales tax revenues, and the highest real estate values.

Here at the Port of Stockton, private investment exceeded more than 80 million dollars last year. Rice has become the Port’s leading export where just 3 years ago when I traveled to Japan with the Port, they had no tonnage of rice. Rough and Ready Island has introduced 50 new companies and 500 new family wage jobs to Stockton and continues to help drive our agriculture economy for the entire Central Valley, benefiting our local farmers.

Without question, Downtown Revitalization has been the hallmark of this Council’s efforts. I believe that commitment, although at times controversial, has led to many of the City’s successes and will continue to serve the City well in the future from an economic, cultural and quality of life vision. We said seven years ago that if folks see a commitment by the City in the Downtown, private investment would follow. A hint of our success is that we have attracted new out of town investors into our Downtown, but the proof of our success is that our own local investors, the Spanos Companies and the Grupe Companies are in the midst of plans that include large North Shore Projects. I will quote Daniel Burnham, the architect and planner of the Chicago Waterfront when he said, “Make no small plans, for grand plans inspire minds and move them into action”. Well, there are big plans and a huge new interest in Stockton, especially in the downtown. And it’s because we have freed ourselves from the albatross of stagnant decision making and jelly fish policy makers that were afraid to do their job.

The City Centre Cinema opening is the 1st chapter in the downtown story on a new budding recreation and entertainment district. The story will be complete with the opening of the waterfront events center, attracting thousands more to the downtown. The cinema has made the case for success. And now you, the citizens of this community should join your Council in the unwavering support of the next phase of what is being referred to by those outside our City as A New Stockton. The Cinema is on a path to bring well over one million folks Downtown. Where are those skeptics who said it wouldn’t work? The 4th of July and Veterans Parade bring 80,000 citizens into the Downtown for the one day event. This year the award winning Best in the West Asparagus Festival will be a true urban festival inviting over 100,000 guests to the heart of this new and exciting Downtown. The annual Winter Festival of Lights, Ice on the Delta, along with the summer Farmers Market have made the Downtown the hottest ticket from season to season.

The proposed Waterfront Events Center is designed to include an events arena with 3 professional sporting teams, seating for 10,000 for games and 12,000 for concerts and seminars. Soccer – soon. Just a few hundred yards to the west of the arena will be a new waterfront baseball park housing the League Champion Stockton Ports. And next to the arena, a hotel with conference space featuring most of the rooms oriented towards the water. The best news on these projects is that not one additional fee nor tax will be necessary to build this great complex. The City will use the one time surpluses created by conservative spending, financial management, unprecedented building growth, and private sector investment.

These projects along with the new Cinema will entertain Stocktonians and attract visitors to our City for generations while creating new ongoing revenue for essential services like Police and Fire. The prevailing wage construction jobs of these projects will bring new revenue to our City and local trades will not have to travel to the Bay Area for work. Additionally, hundreds of service jobs will be available at the new complex.

I remember when I was first elected in 1996 and attended a Builders Exchange BBQ. The complaint was that there was no local work. Well, that has not been the case in the last few years. And let’s make sure that isn’t the case in the next few years by keeping these local projects on pace. With the new arena complex on board, the Council goal is to convert the historic Civic Memorial Auditorium into a community performing arts center, focused on local use and an expansion for the arts of our culturally diverse young folks.

If these best of times are to continue, it will require courage, commitment, and cooperation by all of us in 2004. We must hold firm on the quality of life issues with an environmentally sound, well thought out, new general plan with bonus for infill projects, increased density, and adequate open space.

With this good news stated, we do not go into 2004 without many challenges. First, and foremost, is the State’s budget condition and the ongoing temptation of State Legislators to balance their spending addiction on the backs of cities and counties. In order to provide essential services and programs to our citizens, the City is dependent on revenues from both public and private sources. The State’s efforts to balance their budget directly impacts local governments. Under the State’s plan, the City of Stockton will lose an additional $2.7 million dollars this year from local property taxes, as well as reimbursement for jail booking fees. Unlike the State, the City is diligent about solving its own problems.

Fortunately, there are a number of revenue sources that remain sound while we have controlled our spending. For instance, after a number of fairly flat years, economic development efforts are paying off and we are seeing a steady growth rate of 7 percent in revenues. The City’s disciplined spending is demonstrated by our per capita tax revenues of $495.00 as opposed to Oakland at $758.00 and Sacramento at $617.00. In spite of the state’s difficulties and their reach into our pocketbook, we remain well managed and fiscally sound.

A second challenge would be the bump in the crime statistics over the last year. Although the crime bump is not at all unique to Stockton, and appears to be a major statewide issue. We must focus on it. The seven years prior to our council, the crime rate in Stockton was high. During the last seven years cumulative, we have been successful in reducing:

• Criminal homicides by 30%
• Robberies by 25%
• Burglaries by 36%, and
• Auto thefts by 25%

But the last year has again begun to show signs of a need for a new focus on crime issues. In a short time I will go to the council and request for approval on a new comprehensive and focused crime initiative that I have worked on with City Manager Mark Lewis and Chief of Police Mark Herder. We must and will feel safe in our community.

The new crime initiative plan will call for 5 steps:

1. Establishing police reporting district assignments and holding districts accountable for steady improvement:

Identifying reporting districts with the greatest number of crimes reported in each community policing district.
• Assigning police officers to patrol these “hot spot” reporting districts and holding them accountable for results.
• Monthly reporting of district results and solutions on the city website for public scrutiny.

• Assign in each community policing district a police officer to partner with a neighborhood association or homeowner’s group to reduce crime and eliminate blight in a specific neighborhood, apartment complex, or housing development.
• I will recommend in my budget to the City Manger that he add 5 police positions to accomplish this neighborhood team policing

• Assign two (2) additional police officers to the investigations unit to address increased numbers of juvenile offenders and victims of violent crime.

• To address the rapidly increasing number of identity thefts.
• And to address the escalating number of forgeries and frauds, particularly those targeting the elderly or infirmed.

• I have requested establishing a moratorium on new sex offender group homes in Stockton. The State Senate this year once again failed to pass Senator Oller’s Bill SB381. Now SB382 is moving through the legislature but has been gutted to the extent that it’s practically worthless. Stockton must not be a dumping ground for sex offenders.
• I will further ask for support in increasing penalties and instituting mandatory sentencing for violent and juvenile offenders.