State of the City

It is a great privilege to join you this afternoon for lunch and I am honored the Industrial Council has invited me to speak.
Before I get started I want to recognize Industrial Council Executive Director Marki Leonard and wish her well. We have enjoyed working with her and look forward to continuing that work with the next Executive Director of the Industrial Council.

My remarks this afternoon will touch on the management transition that is going on at City Hall, our current projects and where we hope to be in the near future.
If you haven’t heard, at the July 31st Council meeting, City Administrator Tom Sykes announced his intention to retire at the end of his contract term in January 2007.
At our August 15 meeting, the Council formally accepted his notice of retirement and mutually agreed with Tom that he would go on paid administrative leave effective August 21. This period of time gives the City, as well as Tom, time to transition smoothly into the future and to prepare for the recruitment of his successor.
In the interim, we have designated long-time employee and City Clerk Linda Kay Olivieri to serve as Acting City Administrator until we announce a permanent appointment. Linda was unable to be here this afternoon but she is uniquely suited for the job. She has a Bachelor’s in Political Science from USC, a law degree and is certified as a Master Municipal Clerk by the International Institute of Municipal Clerks.
We are also preparing to interview applicants for the position of Community Development Director. We expect the ideal candidates for both positions to have strong redevelopment experience and to further the city’s land use policies as outlined in the Commerce General Plan.
Clearly, we are at a point in time to evaluate what is and isn’t working. The City Council is determined to make improvements to ensure continued growth and prosperity.
In the area of redevelopment, we are moving ahead with the planned 450 thousand square foot Urban Entertainment Center proposed by JH Snyder; the third phase of the expansion of the Citadel Outlet; and the construction of a Hyundai Dealership that developers expect to open by the end of the year. These projects demonstrate the city’s continued strength as an economic center.

The Council is also working out an agreement with Costco to develop a new 120 thousand square foot facility at the corner of Washington and Telegraph.
In the area of public safety, although we had very few violent crimes last year, the City experienced some unusual gang activity in the business and commercial sectors of the city. In response, the City Council this year increased Law Enforcement services by adding a new member to the Special Problems Team. The duties of the position will include:
- Working with the Industrial Council to better educate the business community.
- Monitoring and documenting the activities of problematic businesses
- And promoting a Commerce Business Watch.
The Business Watch Program is designed to help business owners better protect their property, employees, and customers from burglars, thieves, and other criminals. If you’d like to add your name to the Department’s e-mail list or get a brochure on the program, see Sgt. Somoano before leaving this afternoon.
Besides Community Policing Programs, the City is using a variety of programs to reduce crime and limit the amount of graffiti that occurs in the city.
In addition to our ongoing efforts, the City Council has doubled the reward for information that leads to the identification and conviction of graffiti vandals, and increased the staff of the Graffiti Removal crew. If you see someone vandalizing a building including spray painting, or etching glass, call the Graffiti Team and report it to the Sheriff’s Department.
To give you an idea of what the city is up against, the graffiti crew recently repainted the 6,000 square foot wall behind Veterans Park and the Vista Del Rio Housing Development that graffiti vandals had covered over.
To augment our efforts, we are covering walls with landscaping, enhancing lighting, and placing surveillance cameras in key areas. We are also urging lawmakers to support legislation that gives judges the power to impose stiffer fines for tagging and makes parents responsible for the actions of juvenile offenders.
To reduce the time it takes to get building plans approved, we expanded the one-stop-shop in the Building and Safety Division so that plans can now be approved by the Fire Department at City Hall.
To minimize the effects of rail yard activities on the people living closest to the yards, we are working with state and federal legislators, Cal. EPA, the Railroads, and the AQMD. We recognize the importance of the industry, but believe it is imperative that health, environmental and infrastructure needs are given equal consideration.
In the area of transportation, we are looking to address the problems that come with being a regional hub. Don’t get me wrong. I strongly believe that industry drives the regional economy but the impact of the expanding goods movement on our public throughways can not be absorbed by one city.
Over the last 10 years, traffic has tripled as more goods have come into Commerce whether on trucks or rail cars. As Mayor, I’m lobbying for infrastructure funding in Sacramento. However, funding sources have been reduced and there’s more competition for the dollars that are available.
As this has been going on, construction costs for materials have increased 15 – 20% in the last year. Supplies have diminished, and the demand for goods by China and developing nations has further increased prices.
What this means for us, is that we will have to proceed incrementally. We plan to allocate more funds on a regular basis to repave city streets a section at a time.
For the short term, that means improvement projects like the one we did on Washington Blvd between the 5 and Fidelia.
For the long term, it means securing funds through the Governor’s Bond measure for infrastructure improvements. And, getting the Railroads to pay their fair share.
However you look at it, more needs to be done for everyone who lives and works in the city. The City Council is determined to make changes that improve the city’s air quality and reduce emissions from trains, diesel trucks, and stationary sources.

At the same time, the City is also supporting development of alternative fuels and has given the Transportation Dept. authorization to secure grants to build a Compressed Natural Gas or CNG fueling station. The station will give companies that want to purchase eco-friendly vehicles, an alternative to crude oil. The City currently operates four CNG vehicles and plans to purchase seven CNG powered buses when the station is up and running.
Now, let me talk briefly about the budget. The City Council adopted the Fiscal Year budget on Tuesday July 18th. The Council will increase programs and services commensurate with a projected $2.8 million increase in revenue. For the most part, the additional revenue is coming from three sources: better than expected sales tax, the Hotel Visitor’s tax, and the termination of the state-mandated Education Revenue Augmentation Fund.
I want to also highlight some of the recent accomplishments that the library initiated for business users.
The library now provides on-line services that can be accessed by local businesses from any computer with Internet access provided that they have a library card. The services include:
- Reference USA
- Pro Quest,
- Infortrac
- and the RDS Business Reference Suite.
In addition to the ongoing success of the Commerce Scholarship program, the library is also working with the Commerce Industrial Council to establish a Homework Help Center at the Central Library and planning workshops for college bound students. The library is committed to encouraging the youth in our community to continue their education after high school. This will, in the long run, benefit business and industry in Commerce by providing a better educated work force. My challenge to you, is to develop internships to help these students gain practical work experience.
I want to also encourage you to take part in the city wide Commerce Family Wellness Health Fair that we will have on Saturday, October 28. Commerce Family Wellness was established by the City Council to promote fitness and nutrition. Our goal is to educate the public about treatment options for asthma, allergies, diabetes and other diseases.
We are entering a period of change and the City of Commerce will continue to work aggressively to see that industry can coexist near and among the residential neighborhoods for the mutual benefit of everyone who lives and works in the Model City.
I believe the challenges we may encounter in the years ahead should be seen as opportunities rather than as obstacles. Thank you again for inviting me to join you this afternoon and I look forward to working with each of you.
I would now like to have the City’s Department Directors join me to answer any of the questions that you may have.