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The Mayor Shall Make an Annual Report to the City Council As to the Conditions and Affairs of the City.”

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The Mayor Shall Make an Annual Report to the City Council As to the Conditions and Affairs of the City.” This presentation fulfils the Charter requirement that “The Mayor shall make an annual report to the City Council as to the conditions and affairs of the City.” 1 In ancient Roman religion and myth, Janus is the god of beginnings and transitions, and thereby of gates, doors, doorways, passages and endings, a suitable icon for this presentation for several reasons. Janus is usually depicted as having two faces, since he looks to the future and to the past. It is conventionally thought that the month of January is named for Janus. This report has two parts: The first part describes Richmond in many different ways. The second part describes the many projects and programs that the Mayor’s Office will prioritize in the coming year. 2 First of all, I want to thank Mayor McLaughlin, the City Council, Bill Lindsay and his management team and all City employees for a great eight years. Richmond has truly changed for the better, and we want to continue the momentum. 3 I want to introduce the Mayor’s Office staff. Everyone knows Terrance Cheung who moved over from Supervisor John Gioia’s Office. David Gray, who was a City Council intern while in graduate school at Cal, recently relocated from Louisiana. And Alex Knox, a Richmond native, headed up our successful election campaign. 4 The mayor’s job description is in the City Charter. Richmond is a Council‐Manager form of government and the city manager is the City’s chief executive. The mayor does not run the city, but according the Charter, has a number of responsibilities and a staff of three to research, advocate, educate and lobby. 5 The mayor has few actual powers but lots of leadership opportunities, and we intend to use them for all the people of Richmond. 6 We all know Richmond, but do we really? Here is a quick snapshot of various characteristics of our city. 7 Richmond has 30.1 square miles of land area (19,264 acres). Beyond the City boundary are spheres of influence assigned by Local Agency Formation Commission indicating logical expansion areas, including North Richmond, the San Pablo Dam Road corridor in El Sobrante and the area between El Sobrante and Pinole. 8 Richmond has four islands: East Brother, West Brother, Brooks Island and Red Rock Island. Five if you count tiny Bird Island. 9 Richmond has over 250 acres of City parks, but we still do not meet our adopted standard of 3 acres of park per 1,000 population, with most of the deficiency in the central core. However, a lot of progress is being made to upgrade existing parks. 10 In addition to City parks, Richmond benefits from over 5,000 acres of regional parks in or abutting our City, nearly 3,000 of which are waterfront parks. 11 Richmond’s premier regional attraction, Rosie the Riveter WWII Home Front National Historical Park doubled its visitation rate in 2014 after installation of permanent exhibits. Right next door is Assemble Restaurant. 12 As a waterfront community, Richmond is the home to over 1,600 private boats in nine marinas and three yacht clubs. 13 The current estimated population of Richmond is about 108,000. Richmond population boomed during WWII, then declined. The city did not reach its WWII population peak again until the 21st Century. 14 As we all know, Richmond is a very diverse city. As Gavin Newsom said two weeks ago, “What makes Richmond great is its capacity to celebrate all of its interesting differences.” 15 Richmond has a relatively high crime rate compared to the rest of Contra Costa County and the State of California. Within the City, the highest crime rate is concentrated in Central Richmond. 16 The good news is that, compared to 2013, crime was down 13% overall. 2014 was the first year in over a decade with under 1,000 violent crimes. 17 Both property crime and violent crime has continued to fall to fall for over a decade. 2014 calls for service were also down: Drug calls – 31%, prostitution calls – 11%, person with gun calls –7 % and shots fired calls – 38%. 18 The Richmond Police Department expanded existing programs and started new partnerships in 2014 19 The number of Richmond homicides in 2014 was the lowest since at least 1971. 20 Richmond has a history of high unemployment compared to the rest of the San Francisco Bay Area and California. 21 But Richmond’s unemployment rate continues to fall and is now about what it was 10 years ago. It was at 9.4% at the end of November 2014, compared to 7.2% in California and 5.5% nationwide. 22 Unemployment is not just dropping, jobs are up. In the last four years, Richmond employment has increased by 5,000 jobs. 23 Richmond jobs continue to be dominated by Chevron and public agencies, but the real growth is in small businesses. Two of these, Nutiva and Alta Vista made the list of the Bay Area’s fastest growing companies in 2014. 24 The Small Business Optimism Index nationwide is at its highest point since 2006, before the last recession. We expect to see job growth in Richmond le by small businesses. 25 One of Richmond’s fastest growing business sectors is food products and services. 26 One of the challenges we face is hitching Richmond to the economic boom that has swept the Bay Area beginning in 2010. More on that later. 27 Richmond has lower household income and more poverty than both Contra Costa County and the State of California 28 Like the rest of the Bay Area, Richmond home prices tanked beginning in 2008. They hit bottom in 2009, hovered there for four years, then began a recovery, reaching 2004 levels in 2014 and continuing to increase. 29 Richmond continues to have some of the Bay Area’s lowest residential rental rates, trending significantly below San Francisco as well as Oakland and Berkeley. 30 Compared to other Bay Area cities served by BART, apartment rentals in Richmond are a bargain for commuters – only one place is lower in the entire BART system –South Hayward. 31 In a Bay Area market hungry for affordable housing, Richmond has an opportunity to develop housing at all income levels. 32 Foreclosure activity on Richmond remains high compared to the rest of Contra Costa County and California, but there appears to be a downtrend. The number of foreclosures is down 9% from 2013 and dropping, now at only 0.12% of homes. 33 Commercial leases continue to improve with lower vacancies and higher rents, but they are still a bargain compared to the rest of the Bay Area 34 The condition of streets continues to improve in Richmond. The Current PCI Index, which is a measure of pavement condition, is the highest it has been in a decade, but people expect more. Look for a new high when revenues from Measure U kick in. 35 In 2014, approximately 85% of Richmond electricity users were signed up with MCE, saving over $2 million in electricity costs and over 7,000 metric tons of greenhouse gas emissions. The City of Richmond saved over $100,000. By installing 7,000 new LED streetlights, the City of Richmond cut the cost of electricity for streetlights in half. 36 The City of Richmond faced a budget deficit for the fiscal year 2014‐2015 and had to reach into its reserves to make ends meet. Getting the budget under control remains a major challenge for 2015. 37 Richmond has used one‐time income to balance the budget, like the tax settlements with Chevron in 2009 that resulted in $114 million in additional revenue. However, that was front‐loaded and drops to nearly half in Fiscal Year 2015‐16 compared to this fiscal year. 38 The number of City employees is at its lowest level in a decade. Doing more with less is today’s reality. 39 The City’s revenue sources are variable. Utility User Taxes are under downward pressure from energy conservation and cheaper power from MCE, and the Chevron component is subject to a complex formula that is a function of the energy market rather than Chevron’s usage. Property taxes took a major hit during the recession but are slowly recovering. Sales taxes also took a major hit during the recession but have recovered to pre‐recession levels and are trending upward. 40 Overtime can inflate budgets. Of the ten highest paid City employees, nine are in the fire department, and some make more than the president of the United States. 41 Like the State of California and most cities and counties, the City of Richmond has a significant unfunded pension and health benefit liability. The amount depends on who is doing the analysis. Dan Borenstein of the Contra Costa Times editorializes on this subject incessantly, and his estimate differs from the City’s estimate by $350 million. This is important because it is a cost that will be passed on to our children. We will have a study session on this later this year. 42 Sales tax receipts have recovered to 2008 levels and will likely head higher. 43 The results of the 2013 Community Survey showed that reducing crime and addressing blighted properties were the first and second priorities of residents. Third was improving street paving conditions, and fourth was developing job training opportunities. Fifth was improving environmental quality, and sixth was improving street and pedestrian lighting. 44 In the last six years, the number of Richmond residents rating quality of life as “excellent” or “good” has nearly doubled.
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