Mayor Sam Abed
February 8, 2012
Thank you all for coming to our second State of the City Address. I would like to thank the Escondido Chamber of Commerce and all our sponsors for your partnership and participation in such a great and memorable event. Congratulations to all the awards recipients. Thank you for your leadership and valuable contributions to our community. And to the Bronner family, we thank you for your generosity. You all make our city very proud.
The beautiful pictures you have been watching this morning captured the spirit of Escondido. They are a wonderful reflection of the great city we have. I encourage you to visit our newly updated website to learn more about what Escondido has to offer. Now, let me share with you a brief video that is a great reminder of why we choose to live, work and do business in Escondido.
Now, let me go straight to the State of our City. And I am very pleased to report that the state of our city is improving. In today’s economy that is welcoming news. We recognize that we still have a long road ahead of us, not only to get back to where we were before the Great Recession, but to get us to the next level of prosperity. Let me share with you last year accomplishments, the challenges facing our city, and present our goals for this year.
I also want you to know that my excitement, optimism and positive assessment of the state of our city is inspired by the achievement of our city council’s specific and aggressive goals outlined in the City Council Action Plan. This strategic bold plan represents our collective vision and quite simply, is our roadmap for a better future. The city council has focused on four key goals with specific and measurable results: Financial Stability, Economic Development, Image and Appearance, Community Diversity and Outreach.
I’ll begin with the most important achievement, Financial Stability, not only for this year, but also for the future. For the first time in four years, we have adopted a balanced Budget without using reserves or raising taxes. We did this by prioritizing city programs and spending, while maintaining basic core functions and requiring cost recovery for recreation programs. We also adopted a Reserve Fund Policy to ensure that we have adequate savings. And we have established a healthy Economic Development Fund to achieve our single most important goal: Job Creation.
We have nearly completed a Comprehensive Pension Reform to reduce our annual pension obligation and debt. Today most city employees pay their full contribution to their own pensions. And we have implemented a second tier pension system that provides more affordable and sustainable retirement benefits to new employees. Our pension reform has been praised by the San Diego Taxpayers Association. I would like to publically thank our employee labor groups for working with us on this critical goal to achieve long term financial stability for our city.
In addition, we have evaluated Outsourcing several city services in order to control cost while maintaining quality service. We will soon be outsourcing our Fueling Services, Street Sweeping and Striping operations.
Another important step in stabilizing our finances was to put the California Center for the Arts under a new management and leadership team to provide a more efficient operation with significant reduction in city’s funding. The CCAE is a valuable asset to our community, and we remain committed to providing the cultural benefits that our residents expect and deserve.
With more realistic revenue projections and reduced spending, we have developed and implemented a Balanced Budget. We can only hope that Sacramento and Washington can do the same. Wouldn’t that be a wonderful gift for us and our children! I will continue to honor my pledge to you: We will no longer spend more than we make. Our reserve will be available for emergencies. And our Economic Development Fund will be used to create jobs and economic opportunities in Escondido.
The good news is our residents are feeling more confident in the economy and are spending more than they had in the past. Escondido has now posted sales tax gains in six consecutive quarters, after posting losses for four years. Recovering 35% of our sales tax is very encouraging, but full recovery is still years away. To put that in perspective, we recovered only $4.5 million out of the $12.8 million we lost since the peak of sales tax revenues in 2006.
Our progress, however, was hindered by the State Supreme Court ruling to eliminate Redevelopment Districts, a major setback, not only for Escondido but for many cities across the State. How deeply this will impact our City is still being assessed. We have already lost the Padres Triple A Ballpark. And the revitalization of our urban core, largely supported by redevelopment funds is now at risk. But for us to survive the State threats, we must be innovative and creative.
Yet despite the State’s actions, we remain committed to moving our city to the next level of Economic Prosperity by developing a Comprehensive Economic Development Master Plan and implementing specific strategies to leverage existing assets and target resources and investments that have the greatest impacts on our economy. In December we hired the Natelson-Dale Group to create the comprehensive plan. They will shortly start working with the city and community stakeholders to have the plan ready by late spring.
We also took proactive economic development measures to make Escondido more attractive to new businesses and to help retain those that are already here. We designated $1million Dollars for Economic Development, including $500,000 for our Façade and Property Improvement Program to provide matching grants to help small business be more successful. This financial incentive will encourage new businesses to locate in our Downtown. We also dissolved the Downtown Business Improvement District and its mandatory fees. In addition to these new measures:
- We reduced multi-family developments fees, provided fee waivers for downtown restaurants and permits processing in targeted commercial zones.
- We eliminated parking requirements for Downtown new and expanding businesses. And we streamlined parking rules and regulations for customers.
- We are evaluating the Regional Water Quality Board’s storm water policies including Hydro Modification regulations to be a more business-friendly city.
- We have also established a partnership with the Chamber of Commerce to provide Convention and Visitor’s Bureau to actively promote our city in the region and attract more visitors to Escondido.
- We are also reviewing policies to grow the emerging Wine Industry in our city. With 13 wineries in and around Escondido, We want to do all we can to make us a wine destination, promote our rich history and celebrate our heritage.
To demonstrate our renewed commitment to help business be more successful, I have instituted weekly retention and expansion visits to Escondido businesses to offer assistance. In addition, I have created a Mayor’s Economic Advisory Board to help us achieve our economic strategic goals.
This past year, the City has invested millions of dollars in significant Capital Improvements to help attract private capital:
- We completed the pedestrian and street improvements in the Mercado District.
- We repaved miles of city streets, including the Tulip Street Improvement Project.
- We Completed the Alexander Area and the Montview Water main improvement and replacement projects
- We are moving forward with expanding the recycled water infrastructure to provide more affordable water to our agricultural customers.
- We have approved the Maple Street Pedestrian Plaza to create a community gathering destination and to connect the civic center with our thriving downtown. This project, funded by SANDAG and Gas Taxes, will be completed this year.
- Escondido residents will also benefit greatly by North County Transit District’s first Bus Rapid Route and the opening of the I-15 Express lanes. And yes, I publically drove the first Hybrid Prius car in the opening ceremony last month. And we are getting close to start the Nordahl Bridge Replacement Project to improve traffic flow between Escondido and our neighboring city San Marcos, and to provide better access to our new $1billion Palomar Hospital scheduled to open in August at the Research and Technology Center and will add hundreds of god paying jobs in Escondido.
- SDG&E will also invest $20 million to underground transmission power lines between Ash and the Escondido substations to improve reliability and the appearance of our city.
In addition to our public efforts, I am pleased to report that our city has attracted private investment as well. We have successfully concluded a restructuring of the city lease with the Westfield Company. They will invest $56 million to improve the mall. In addition, over $30 million will be spent by the new Target and the major tenants. The nearly $100 million private investment will make the Westfield the best shopping destination in North County at no cost to the City or taxpayers. The city will receive an additional $1.5 in projected revenues from the new lease and increased sales tax revenues in the next few years.
Wal-Mart has also invested in Escondido, the new East Valley store will open this year. Stone Brewing Company, a true success story in our town, is building a $12 million expansion project, adding a boutique hotel, administrative offices and doubling their brewing capacity. Today, Stone Brewery is the 3rd largest destination in North County, after the Safari Park and the Lego Land.
Construction is underway at the Paramount and Venue Projects (Latitude 33) along with the newly acquired City Square, 300 new urban living housing units will be built in Downtown Escondido.
Other businesses have also made Escondido home: Car Max, Dick’s Sporting Goods, Pacific Sales, Mike’s BBQ, The Grand restaurant, The Tea Room. Cocina del Charro moved to a more prominent location at the Gateway Shopping Center. And Vintana restaurant will soon open at the new and successful Lexus dealership.
With all these public and private investments, there is a renewed excitement, resolve and enthusiasm in our community. Escondido is becoming a city to watch!
Another key area is improving the City’s Image and Appearance. In 2011 our Code Enforcement Division opened and closed 1,700 Cases, removed 1,300 Abandoned Shopping Carts and nearly 300 Abandoned Vehicles. We have successfully reached out to our 15 neighborhood groups to achieve self compliance, improve the living conditions in our urban core and increase property values and equity in home ownership and more importantly, create more pride in our community.
Our city remain committed to Eradicate Graffiti in the entire city, using the very successful graffiti tracker program, our efforts continued with over 7,600 tags removed, and as importantly, there were 72 people arrested for graffiti vandalism, who paid almost $102,000 in restitution to the city. We are sending a message loud and clear that graffiti offenders will be arrested and prosecuted.
Another important goal to our community is Public Safety. Our Fire Department ensured that our community is properly prepared to address fire disasters by updating the City’s Preparedness and Emergency Operations Plans. We will soon begin working on the renovation of Fire Station 4 in south Escondido through a Design-Build construction process to avoid cost overruns. Station 4 is anticipated to be ready this coming September.
Our Fire Department has also partnered with the City of San Marcos to establish a joint Emergency Medical Services Management Agreement to improve efficiency and service delivery to our community
Our Police Department made great strides last year in making our city safer. Traffic Safety and DUI Checkpoints have continued to remove unsafe drivers from our roads, resulting in a 9% decrease in hit and run accidents. Most significantly, overall crime in Escondido dropped 20% last year. Violent and Property Crime decreased nearly 20%, and Motor Vehicle theft is down 40%.
To put this in proper perspective: Despite an increase in population, crime committed in Escondido is now lower than it was twenty years ago! Let me say that again, crime is lower today than it was twenty years ago! The success in reducing crime is also engaging the community in this effort. Another successful policy is our partnership we developed with ICE to identify illegal immigrants criminals in our community. As a result of this program we have removed over 800 illegal criminals since its inception. These crimes include D.U.I. Violent assaults and theft, rape and child molestation. We will simply not allow illegal criminals to live in our city. And yes we are making our city safer to all who live in Escondido.
The city’s effective and successful partnership with the Immigration and Custom Enforcement federal agency (ICE) has recently received a distinguished national recognition. And I’m honored today to report that the Escondido Police Department is the only law enforcement agency in the country to receive the Department of Homeland Security Partnership Award. Thank you, Chief Maher and the Men and Women of the Escondido Police.
We also implemented a modified version of the federal program, E-Verify, to ensure City employees and citizens have the legal right to work in Escondido.
Community Diversity and Outreach remains a priority for us. Our City Council recognize that mutual understanding and respect should be our guiding principles, and we can do better in engaging our community to make sure our residents are more involved in decisions that impact their lives. In doing so, we will build trust with those we serve. Our City Council has placed considerable emphasis on government efficiency and transparency. We consolidated afternoon and evening council meetings, required two council members to place items on the agenda, and established a more equitable rotating process for the Deputy Mayor’s position.
We are using technology to be more efficient. Last April we launched the “Report It!” App program that allows the reporting of potholes and graffiti via the smart phone. And we now have Facebook and Twitter accounts. Our Police Department now offers an on-line sex offender notification program called Offender Watch.
To increase transparency, we have posted information on the City’s website and held numerous meetings to actively solicit input on many projects like the General Plan, the Charter City and the Escondido Creek Master Plan. There will be even more public hearings on these issues before the November General Election. I have also personally reached out to the public by holding two Town Hall Meetings and have interacted with hundreds of community groups and individuals this past year. And we have empowered our 15 Neighborhood Groups by providing Leadership Training programs to help them be more organized to improve the living standards in our neighborhoods.
Last year has clearly been an eventful and productive year. It wasn’t easy getting to this point without the support of my colleagues on the City Council. They demonstrated true leadership and willingness to make tough and unpopular decisions for the good of the community. No matter how tough the issues may become, we will not shy away from our responsibilities to those we serve.
So where do we go from here in 2012? Let me say first and foremost that just about every citizens and business in our city is concerned about the economy and job creation. With that in mind, I have Eight Goals that I intend to present to the city council for consideration and approval in 2012:
The first is to develop a Regional Approach to Economic Development in North County by coordinating with the Mayors, City Managers, Economic Development staff and County Supervisor Bill Horn to participate in the San Diego North Economic Development Council’s Prosperity on Purpose. This collaborative vision will promote North County as a region, showcasing the best of our resources: Palomar airport in Carlsbad, the beaches in Oceanside, the North County court house in Vista, Cal State University and Palomar College in San Marcos and San Diego Zoo Safari Park, Westfield shopping center and the new Palomar Hospital in Escondido.
The second goal is to prepare for the Escondido Business Park of nearly 100 acres of private/public land near our downtown. This will be more challenging now without redevelopment fund. We will, however, remain focused to make the Escondido Business Park near the Sprinter rail line a reality.
My third goal is to create comprehensive and Proactive Code Enforcement Plan and to engage the community and neighborhood groups to set higher standards in our community and to achieve the Image and Appearance goals stated in our City Council Action Plan.
My fourth goal is to appoint diverse and qualified members of the community to the city’s Boards and Commissions. Serving the community in that leadership capacity is an important way to offer new perspectives and ideas to a variety of important and significant issues facing our community.
Another important goal of mine this year is to Reopen City Hall on Fridays. As a responsive government, we need to improve our efficiency and make city hall more available to the general public and the business community.
My sixth goal is to pay down Prop P Bond Debt with the remaining balance in bond funds. We will return these funds to reduce the property tax to homeowners.
Another significant goal is to put the Charter City and the General Plan proposals on the 2012 November ballot. I urge my colleagues on the City Council to approve placing both measures for voters’ approval. A Charter City will allow us to gain more independence from the State, who became not only a burden but a threat to local government, taking more city funds, imposing unfunded mandates and burden us with over regulations. A Charter City will also promote fair and open competition bids on an estimated $163 million in projects for the next 5 years, saving tax payers over 16 million dollars. The General Plan, which was developed over several years, has been more driven more by the community than the government, and is the most comprehensive review in 22 years. This document provides strategic goals for quality, managed and sustainable growth for years to come. It strikes a balance between economic growth and the environment. It builds a stronger economic base for job creation while maintaining community’s priorities, more importantly it reflects our values and preserves the rich character of our city.
It is my sincere desire to make Escondido a community where all of us can succeed. I’ve said many times that for us to prosper, we must work together to uplift our city financially, culturally, socially and economically. Let’s keep that simple thought in mind: If we put aside divisive interests and polarizing ideas and instead work together for the common good of Escondido, we will achieve the vision of prosperity that we all desire for ourselves, our families and our community.
My final goal is to reopen the East Valley Library as a Technology Center for the East Valley community to provide better learning experience and education opportunities using technology and internet access for East Escondido residents.
Finally, I want to acknowledge the great efforts of our City Manager, Clay Phillips, and our City Attorney, Jeff Epp, our department heads, managers, supervisors, front line employees and hundreds of our community volunteers. This Council has asked you to do more with less…less pay, less people, less resources… and I know it hasn’t been easy. We may not say it often enough, but we do appreciate the professional attitude and commitment you demonstrate every day to providing the best possible service to our residents and businesses.
In conclusion, those of us living in Escondido today are grateful to the community leaders who founded this city 123 years ago. Thanks to their foresight, they built the first hotel, the first school, the first bank and they brought the first train to Escondido. They had a bold vision of what Escondido could become and they made it happen. Today, this City Council shares the same inspiration and spirit of those early pioneers. We have created a modern and prosperous vision for Escondido and we are making progress to achieve our goals. Together we can embrace our diversity, celebrate our unity and provide a greater sense of pride in this wonderful city called Escondido. Our best days are still ahead of us!
Finally, I want to thank you for your continued support and the trust you have given me this past year. I am honored to serve as your mayor. And I am looking forward to another busy and productive year. I will fulfill my obligations to you to turn this city around, and I will not let you down. Escondido – It is our time to shine, and we will.
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