Effective Leadership

By CARMELITA GARCIA

State of the City Address 2010

Pacific Grove, Butterfly Town USA, America's Last Home Town, America's Most Romantic City. No matter what others and we call it, in my opinion we live in a most spectacular place, a community worth fighting for.

Where have we been? Although we achieved some good things in the past year, too much of what we could have done was burdened by controversy, resignation, anger, a sense of hopelessness, and most important, a lack of leadership. Leadership, as we all know, is critical for any endeavor, be it in a city, a civic organization, a team, a household or a business. While many good ideas were advanced, projects and activity seemed to grind to a halt, with no one to direct traffic, manage issues and point the way. Staff was ready, capable and willing, but was hampered by a lack of consistent, focused leadership.

In September of 2009, after nearly a year of a frustrating search, we hired a new City Manager, Tom Frutchey, who recognized and accepted the challenges that lay ahead. He hit the ground running, and in my view, has not stopped since. I know because I get his emails at 3 and 4 in the morning. Tom is a quick study, and has quickly acquainted himself with the city's people, our businesses, employees, and issues that have plagued us for a long time. He has not hesitated to address problems head-on and has worked diligently to forge resolutions and relationships acceptable to all. He has helped to create a presence and voice for Pacific Grove. I believe I speak for all of us, Tom, when I say we value and appreciate your dedication.

The next vital step in getting our city back on track was the appointment of a Mayor. With the resignation of both our former Mayor, and our Mayor Pro-Tem, we had to restructure the top of our organization so we could quickly move on with the City's business. By way of a coin toss, I became the first woman since 1993 to serve as Mayor of the City of Pacific Grove and the 5th woman in its history.

The next order of business was the appointment of two new council members, Ken Cuneo and Robert Huitt. They both bring a perspective that challenges our thought process. It is my pleasure to announce that today we have a full compliment of City Officials and I would like to formally introduce them: Mayor pro tem Bill Kampe, Council members Alan Cohen, Lisa Bennett, Deborah Lindsay, Ken Cuneo, and Robert Huitt and City Manager Tom Frutchey. Additionally, Jim Becklenberg, Director of Budget and Finance and our Acting Deputy City Manager, and our City Attorney David Laredo.

The 2000s was the decade in which the 21st Century and 3rd Millennium began. As I was preparing these remarks, I couldn't help but to recall some of the unforeseeable events over which we had no control but which had a role in shaping the course for Pacific Grove.

For example, the stock market took one of its worst dives in history and recession kicked in, not just for the country, but for tiny Pacific Grove as well. California experienced the highest unemployment rate since the Great Depression of 1941. Here in Pacific Grove people have lost jobs, and some have lost homes through foreclosure. Some of our local businesses have failed. Too many of our storefronts remain dark. On top of this, the State of California has decided to take away more revenue from Cities to help fill the State budget gap, causing cities to scramble in order to balance their already compromised budgets. CalPERS looms over us and meanwhile, we await decisions about water, which may affect the future of our businesses and our residents.

These events are a small handful of what has shaped our course. But despite it all, we have managed to stay our course because of our willingness to look at issues head-on and make decisions that support our commitment to serving all in our community and making Pacific Grove a community in which we are all proud to live. Here are some examples:

January 14, 2009 the Council approved the creation of the ad hoc Alternative Source Water Subcommittee. While our water needs generally, fall to the authority of the State of California, the ad-hoc subcommittee continues to explore ways to solve our local water problems. While the overall issue rests with the politicians and the State of California we, as residents will do what we can to help with that problem.

February 4, 2009: The City Attorney brought forward a memorandum regarding the legal status of service animals and the City acknowledged that service ponies are recognized as service animals under the Americans with Disabilities Act. Now, some might not think that is a big issue, but let me assure you that it is all-important to our fellow residents who have this need. .

February 18, 2009: The Pacific Grove Museum of Natural History, while fully ADA accessibility in the interior facility, the lovely garden in the back remained inaccessible. Council approved the new design of the Museum's walkway, which will now accommodate ADA accessibility and that project has been underway now for some time.

March 4, 2009: The City Council approved the response to the 2008 Grand Jury Report with respect to the City's Emergency Operations Plan (EOP). The Monterey County Civil Grand Jury had investigated Pacific Grove's Emergency Operations Plan and identified a number of weaknesses. We live on the coast and are the first ones to feel wind, storms, tsunamis and other crippling forces of nature. Our Police Department is moving forward to update the plan, the City has retained a recognized expert, the plan is about completed and practice sessions should commence shortly.

March 9, 2009: With the 2008 elections behind us, and the new city council in place, the Council held a Planning Session to establish goals and priorities. The goals established were (a) to achieve financial stability, (b) to protect and enhance the city's natural, physical and environmental elements, (c) to protect the health and safety of our citizens, and (d) to recruit, train and retain talented paid staff and volunteers in order to fulfill the city's mission and achieve its goals.

April 15, 2009: There is a small house in Jewell Park, which the Chamber of Commerce has used for meetings and other gatherings. Council approved leasing the house to the Chamber of Commerce for the purpose of renovating the facility. The renovation will be a joint effort with of the Chamber of Commerce and the Pacific Grove Rotary Club. Once completed the house will be fully ADA accessible, to include public restrooms. The renovation includes as much "green" construction as possible.

April 29, 2009: The Council adopted a resolution to grant approval for the Gateway Center to re-license the existing facility into three separate licensed facilities. This would allow for the current residents to remain and at the same time provide an opportunity to Gateway to expand the services they provide.

June 17, 2009: The Council approved the Public/Private Partnership Operating Agreement and Lease between the City of Pacific Grove and the Museum Foundation of Pacific Grove.

Also in June, the State of California, in order to balance their shortfall budget, announced that it would be holding on to some property taxes that would normally be sent to the cities. We adopted a resolution stating that a severe fiscal hardship would exist if the State takes city property tax revenues. The Council forwarded this message to political leaders of the State, and other cities followed suit.

July 2009: The First Baptist Church of Pacific Grove celebrated its 100 years of service in Pacific Grove and is the oldest African American Church in Monterey County and on the Central Coast.

In July we also learned that concerts in the park would be returning to Jewell Park after a seven-year absence.

August 5, 2009: Some of Pacific Grove's long time services were beginning to move away from the community. The Council adopted a resolution authorizing the City Manager to enter into a building service agreement with the City of Monterey. Much of the work done by the Community Development Department was now going to be done by employees of the City of Monterey. Measure J, a parcel tax dedicated to the Library was approved for the November ballot. The Council also appointed a sub committee to begin to look into the possibilities of the Holman site to become a local hotel.

August 18, 2009: The Rip Van Winkle park area become a highly contested issue with some residents complaining that their favorite dog walking area was being restricted to the point that it could no longer be easily accessed. After much deliberation, the Council approved a recommendation for parking at the Rip Van Winkle Open Space.

September 2, 2009: Council approves the Historic Initial Screening Process for Determination of Ineligibility. Applicants could now receive a determination of ineligibility without having to incur the expense of a Phase I Historic Assessment.

On September 16, 2009, I took office as Mayor while the Council continued making great strides in the administration of city business. Certainly, we all wish that things could move along more quickly, but the bottom line is that progress is being made in all area.

As we review the last quarter of 2009, October through December, it was a very busy 90 days of which we call all be proud.

As mentioned earlier Council Members Ken Cuneo and Robert Huitt were appointed. After several months without a City Manager, Tom Frutchey was sworn in as Pacific Grove's 9th City Manager.

Newness came to the order of business at council meetings and chambers. Community groups and individuals in recognition of their service now lead the pledge of allegiance. Honorees have included boy scouts, girl scouts, cub scouts, Dr. Russell Coile, Ron Curry, Hal Leach, and Corporal Jerome "Jerry" Morse.

The Vision Statement, Mission Statement of the City and Mission Statement of the City Council now appear on the front page of council agendas reminding us as to why we make our decisions and providing guidance as we deliberate and make our decisions.

Council has worked diligently and will continue to modify the order of council agendas to ensure council meetings are effective and efficient.

In November Council reconvened its March 2009 Planning Session. The goal of this particular session was to confirm that the earlier goals established remained the same because under a new Mayor, new City Council Members and a new City Manager. Additionally, I felt it important that the City have a plan that we could rely on with regard to how we would achieve the goals agreed upon. The product of this all-day session has become known as the Five-Year Work Plan. It is ambitious, and with the commitment of our council, our City Manager, city staff, and the volunteer members of our boards, committees, commissions, and panels, it will be achieved within the specified timeframe. The commitment to the success of the work plan has provided a standard by which, council and city staff will be directed. The issues that we have begun and continue to address, how we are going to resolve them and bring resolution to our city are a direct result of the goals and priorities outlined in the work plan and by adhering to this process we will fulfill that work plan.

The scope of this Five Year Work Plan includes: Economic Development, which speaks to the Lovers' Point Park/Bathhouse Improvement Project; the Downtown Specific Plan; initiating Phase I of Downtown Improvements; establishing the City's brand and destination identity; assist in achieving American Association of Museums re-accreditation; the and Dewey Avenue Residential Permit Parking Program. Next, protecting our natural environment, housing stock and infrastructure. This includes the development of a code enforcement program; approval of the amended Tree Ordinance; development of a capital improvement program; water resources; and the Point Pinos Lighthouse Preservation Plan. Health and Safety includes the development of a citywide Bicycle Master Plan; certification of the 2009-2014 Housing Element Update; restoring the City of Pacific Grove to be the safest City in Monterey County; enhance traffic enforcement; shared fire services; the future of our library; fully trained staff in EOC response; and a community emergency response team. Finally, improving the effectiveness and perception of City Leadership to include the restructuring and providing new charter to city boards, committees, commissions, and panels.

Council provided direction to the City Manager to create an ad hoc Golf Course Promotion Subcommittee. Council has approved a marketing plan, which includes a timeline between January and June 2010. The best-kept secret is about to be told. Major promoting of our municipal links will be launched to coincide with the AT&T and U.S. Open. The success of this market plan is projected to generate an additional $58,995 in revenue between now and June 2010 with an annual minimum yield of nearly $118,000.00.

As we continue to look at ways to partner with other cities in providing services, some steps that have been taken by council to achieve this include adoption of a resolution authorizing the City Manager to enter into a Memorandum of Understanding with the cities of Carmel, Marina, Monterey, Sand City, Seaside, and with the California State University, Monterey Bay for the formation and participation in the Monterey Peninsula Regional Special Response Unit consisting of Special Weapons and Tactics, Tactical Medical, and Crisis Negotiation components.

Additionally, we entered into an agreement with the City of Carmel for part-time traffic enforcement services. What does that mean? We now have a motorcycle officer doing a very good job at enforcing speed limits, school drop off and pick up, overall pedestrian safety and he is writing tickets. To help reduce overtime costs and service liabilities council approved adding a Police Service Technician to the Police Department. This action will help reduce the City's vulnerabilities that create risks pertaining to evidence/property administration, emergency operations planning and support, and training administration. The Police Department has done an excellent job in finalizing our Emergency Operation Center (EOC) protocol and conducting ongoing exercises in response to the 2008 Civil Grand Jury report. Most importantly Police Chief Darius Engles rescinded his resignation.

In 2008 due to the contract with the City of Monterey for fire services, council voted to repeal a section of the Municipal Code, thereby terminating the Pacific Grove Volunteer Fire Department. On December 16, 2009, council held the first reading with a subsequent second reading of an ordinance to reinstate this valuable group, which had been established since 1885. It is now called the Pacific Grove Volunteer Fire Department Association. Thanks to some technical language in the original ordinance, the Association's service record remains unbroken since 1885; making it older than the City. Today, discussions continue regarding fire services and the possibility of forming a Joint Powers Authority, with Cal Fire indicating some interest.

A "multiple-tray" system for processing permits was approved by council and implemented. One "tray" is comprised of architectural permits for single-family residences, and the second "tray" covers all other architectural projects specifically commercial. Applications in each "tray" are now separately prioritized, rather than mixed together in a single queue. This effort has been well received throughout the community.

The Museum enjoyed 4,261 visitors this October, which is a 700% increase over the 641 guests visiting the Museum in October 2008. The Museum had more guests in one day, the Bats and Spiders Science Saturday on October 31, than the Museum had in the entire month of October 2008. The Native Plant Garden also took a large step forward with a community-planting day on October 4. At this music-filled event, approximately 20 volunteers planted over 100 native plants.

Council approved the establishment of a "Transient Use License" more commonly known to us as the Short-Term Vacation Rentals. It is anticipated that $100,000 in revenue will be generated for the remainder of this fiscal year, which ends June 30th. The City has already processed a number of licenses, more are pending and staff receives information requests daily. Pacific Grove has become a model for other cities to look at.

While there are many empty storefronts, the Chamber of Commerce and the Downtown Business Improvement District have worked diligently to address the problem. Upon their recommendation and with council approval, the DBID was able to adjust their budget, which is funded by a tax that is self-imposed and paid by the merchants, in order to hire Michael Adamson as the Business Attraction Coordinator. Mr. Adamson's goal is to attract new businesses to Pacific Grove. Now that the city has placed water in the city's reserve for six months with an emphasis on commercial use, attracting new business activity may become easier.

Pacific Grove became the first city to adopt resolutions approving participation in the AB811 and California First program providing low cost loans to individuals wanting to upgrade their homes with energy efficiency improvements. This move sends a clear message that we are serious about protecting our environment, that we are taking actions to help support that message and at the same time looking at ways to help our residents participate in this effort without it being cost prohibitive.

There was a lot of hope that Measure J would pass for our library. Unfortunately, the initiative suffered a very narrow defeat. With 65.91% yes votes to 34.09% against, the measure was less than 1% short of the 66.67% needed for passage. Broken down into actual votes, there were 2,747 yes votes and 1,421 votes against. We won the majority of the vote but lost the funding, as we were short between 30-35 votes of the two-thirds approval needed to pass the measure.

As a direct result, people started coming into the library to ask how they could support it. The "Fund Our Library" campaign kicked off December 15th to respond to those who wanted to help and since then has raised $30,000. A Library Summit is scheduled for Saturday, February 6th, 9:00 a.m. + 12:00 p.m. at the Museum of against, the Natural History where ideas will be shared regarding library services and as a community we will discuss what we want that to look like.

To give you an idea as to how the library is utilized, during the past 6 months, 500 people per day have visited, a total of 7,000 reference questions have been answered, there have been 104,000 checked items, and 120 children's programs provided. This is not an entire year of activity and the demand for our library services is stronger than ever before. With the downturn of the economy, people are using the services of the library to apply for unemployment and look for jobs by way of the Internet. Support our library. The library remains funded for the remainder of this fiscal year. We are projecting that fiscal year 2010/2011 total library funding will remain the same, at over $600,000.

Reorganization of city boards, committees, and commissions Every year, we have 60 to 80 volunteers on our various boards and commissions. Unfortunately, over time, the number of these boards and commissions kept increasing. By this fall, we had 20 different volunteer boards, one for every 4 staff persons. In addition, some of them were not best structured to serve the residents and help us achieve our high-priority objectives. In short, we were not taking maximum advantage of the contributions our volunteers were capable of making. As a result, we are well into an ongoing project to re-charter our boards, simplify the overall structure, to help our volunteers' better give back to their city.

The Future as we continue to move forward

Of course, the City has an ongoing need to understand and advocate for reasonable solutions to our water woes. In October 2009 I attended proceedings in Sacramento. Despite our pleas to the contrary, the State Water Board imposed a Cease and Desist Order that threatens to limit our use of Cal-Am water that may cause rationing and a full moratorium on new water use. The City has since asked the Court to postpone the effect of the State Order since its legality has been challenged. This year the Court will clarify the extent and timing of any additional limits to our water supply. Looking to the water solution, the City provided comments to the Public Utilities Commission on its review of alternative desalination projects to increase our water supplies. That EIR was certified in December, and a project will be selected in May of this year. Still, experts tell us the project will at it earliest be on line in late 2015. In the meanwhile, the City continues to explore alternate and local water solutions that can be accomplished in the interim, and that add value even after the projected completion of the Cal Am desalination plant. I am proud that our staff chairs the Technical Advisory Board for the Water Management District, and I am an active participant in that body's Policy Advisory Board.

CalPERS

Pacific Grove is not alone. Every city in the State of California is facing the same issue. The fact is that this retirement plan is not longer feasible and has not been for several years due to a number of variables.

In 2008 the City placed a referendum on the ballot, known as Measure Y. Voters delivered a very clear message (56.03% yes) that they wanted the city to replace its existing employee's defined-benefit retirement plan CalPERS with a defined-contribution retirement plan (similar to a 401 (k) plan).

For whatever reason there was no movement to acknowledge the results of this vote and the costs of public employee retirement systems continue to escalate rapidly throughout the state.

No one, including Pacific Grove has the multi-millions of dollars it will require to opt out CalPERS.

So this evening, as I stand here before you, along with the other Mayors of Monterey County, I have put my support behind measures to adopt a two-tiered retirement system. Some of the changes Pacific Grove will achieve on its own some will take the cooperation of our neighboring cities, and the most critical will require action at a State level.

We need to think differently and identify alternative ways to compensate employees. We need to adapt to changing population demographics, finding ways to tap into the resources we have here in the form of active retiree volunteers and people who want to work part-time.

Downtown Lighthouse Plan Downtown is the heart and soul of our community, for residents and visitors alike. As such, it needs to be vibrant and attractive. Unfortunately, the recession has hit downtown businesses hard, just as it has hit businesses throughout our community. Fortunately, we have conducted two downtown design charettes over the years. Rather than delay progress, we are pulling the best ideas out of both and developing a phased plan of improvements to upgrade the look and feel of downtown that we can implement now. As you have undoubtedly noticed, with all the orange-and-white "PG PW" sandwich boards downtown, some of the concrete repair and tree replacement work is already under way. Plans for more significant changes are being drawn up now and will be reviewed by the DBID and the City's Beautification and Natural Resources Committee in February and March.

The Trolley

We who live and work in Pacific Grove know about the tremendous amenities our community has to offer. But recent research conducted by the Monterey Bay Aquarium suggests that potential visitors might not know. The research suggested we have an "awareness" problem. People may have been here or even stayed overnight without even knowing that they were in Pacific Grove. And what's more, some don't think there is anything new to do here. How wrong they are!

In response, the City is collaborating with the Aquarium, our business community, and the Asilomar Conference Grounds to provide a new experience for visitors to the area in the form of a trolley that will create awareness about all there is to do in Pacific Grove while also providing free car-less transportation from the Aquarium to Asilomar through downtown Pacific Grove, thereby reducing our carbon footprint and green gas emissions. The City will have a contract with MST and will paying for the trolley directly. To pay the trolley costs (about $60,000) the City will budget funds from the BID fund ($5,000), the HID fund ($15,000), the Golf fund ($15,000) and the Lighthouse fund ($5,000). We are in the process of formulating an agreement with Asilomar for $20,000. Separate from those arrangements, the Aquarium's budget will allow for the production of the audio education program to be installed on the trolley and will promote the trolley. The Packard Foundation is not involved with this venture. Trolley passengers will board at the Aquarium and along the way will enjoy an interpretive educational program about our coastline, produced by the Aquarium. The program will also highlight the Point Pinos Lighthouse, Pacific Grove Golf Links, the Monarch Butterfly Sanctuary, Victorian Architecture, downtown businesses, the library, Pacific Grove's Museum of Natural History, and other attractions. We expect the trolley will run daily this summer, continuously between the hours of 10:00 a.m. and 5:00 p.m. and it is scheduled to run every 30 minutes.

The Budget The City's financial health and long-term stability remain our top priority. Since the City's revenues are directly linked to the health of our local and State economies, balancing the budget is a tough challenge in re-cessionary times.

Almost two-thirds of the City's budget revenue comes from three sources: property taxes, sales taxes, and transient occupancy taxes from our lodging establishments. So we watch these sources very carefully as we monitor the budget and forecast our financial future. Of these three, two are projected to decline for the second year in a row and the third is expected to hold its own.

Our property tax base is surviving the recession largely intact. We projected a small decline for the current year, but receipts so far suggest that this source will be flat for the year + no growth, but no decline either.

Unfortunately, the same can't be said for sales tax and hotel taxes. In both cases we budgeted for a 10% decrease for the year, and so far those projections seem to be holding. Decreases of that magnitude are especially dispiriting, considering that we experienced similar declines last year.

The economic assumptions upon which our financial forecast is based suggest that revenues overall will be flat for another year and then slowly begin to recover the following year. At this point we are not projecting a return to our historically average revenue growth for several years, if ever. Our assumption for next year's budget is that all services (including the library) will remain at current levels.

We continue to reduce our costs wherever possible, and as a result we believe our budget will be balanced this year and next year without further service reductions.

While this is good news, we must remain aggressive in finding new efficiencies and building our local economy and revenue base.

Like all cities, Pacific Grove faces potential budget deficits in the future due to slow revenue growth and increasing employee costs.

We took the first step toward less expensive and higher quality fire department services by partnering with the City of Monterey. We have begun discussions with other Peninsula cities about the potential for broader collaboration on fire services, which will reduce our costs for fire management even further. One option we are considering is contracting for services with the California Department of Fire.

On the revenue side, our efforts to develop and market the City's identity will be key to position the City for attracting visitors and locating new businesses when the economy begins to improve.

Major capital projects Despite difficult financial times, we are moving forward with important capital projects valued at more than $2 million to restore the city's infrastructure, which improve the appearance of the City and help control the cost of maintenance later on. All of our major projects are being paid for by grants and other sources that must be used for these projects and cannot be used for general city operations.

We have a two major wastewater system improvement projects currently underway. One project will install two new 750-ft. sewer lines, rehabilitate approximately one mile of additional sewer line, repair 23 other sections of degraded sewer line, and install 11 new manholes. One of the new sewer lines is an extension of a line on Pico Avenue that marks the last conversion from septic system to sewer system in Pacific Grove.

In the second project, we will be completely rebuilding wastewater pump station #12, which is located at Oceanview Boulevard and 9th St.

These projects are funded by the City's surcharge on our sewer bills and not by general tax dollars.

We received federal stimulus funding to correct severe drainage problems on Central Avenue between Eardley Ave. and Dewey. This project is providing new and upgraded sidewalks, curbs and gutters, and installing landscaping to spruce up the area. We also received Federal Stimulus money to retrofit streetlights in Pacific Grove; work for this project will take place next summer.

We are also completing some important street sealing and resurfacing throughout town, with a concentration in the area of Congress and Lighthouse. This work will improve the street surface for pedestrians and motorists and reduce the City's long-term maintenance costs in the area. This work is paid for with State transportation grant funding.

Bathhouse The Coastal Commission will finally be reviewing the plan for the new bathhouse at its February meeting. Thanks to Community Development staff, we have also received final approval for a state grant that will help spruce up Lovers' Point Park. We expect both projects to begin construction this spring and be completed in time for the December holiday season.

Among other projects, we are also working to: complete the housing element of our general plan, securing state certification; initiate our downtown specific plan process, including the Holman Building; initiate Zoning Code clean up to help clarify regulations and streamline our permit process; upgrade the Golf Course Clubhouse lease; and approve alternative water sources ordinance, including gray water, etc. And these are just some of the exciting projects and programs currently underway.

We also have some projects that other people are working on for us. Medical marijuana dispensaries for example! At our last meeting, the Council imposed a 45-day emergency moratorium on the issuance of any licenses or permits for the establishment or operation of such dispensaries. This will give us time to decide if such establishments are appropriate for Pacific Grove and, if so, with what controls.

My goal as your Mayor for the balance of this year it to continue to identify those issues that are the most important to our community and to begin to solve whatever the problems are that confront us. There is no doubt we are faced with a financial problem of immense proportions. Solving those problems is our first order of business. We need to begin to rebuild our service to the community, our library, museum, and golf course, recreation activities, all of which have suffered during this past year. I pledge myself to you to do everything possible to build forward and return Pacific Grove to the community we all hold so dear.