March 26, 2004

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Publication Date: Friday, March 26, 2004

Good news for Pleasanton

Pleasanton is in "fabulous" shape.

Cities throughout California are lamenting their dire financial straits, but it's not so in Pleasanton, said Mayor Tom Pico in his State of the City address to the Chamber of Commerce on Tuesday.

"We in Pleasanton are extremely fortunate," Pico told the crowd at Ruby Hill Golf Club. "While others are suffering, we're still growing."

Reviewing the last year, Pico listed some positive points: ¥ Applied Biosystems opened, bringing well-paying jobs to its spacious new facility on Sunol Boulevard. ¥ Kohl's Department Store chose Pleasanton for a new 88,000-square-foot retail store at Rosewood and Owens drives, to open this October. "Other cities are not seeing this type of development," said Pico. ¥ Ross Stores picked Pleasanton for its corporate headquarters. "They picked Pleasanton out of all the places they could have moved," Pico noted with satisfaction.

"Plus the city is making a commitment," he continued. The City Council has approved a two-story, 105-room assisted living facility on Sunol and Junipero Street, with a significant number to be affordable, and is investing $6 million in this project. The city is also restoring the Veterans Memorial Building on Main Street, for $3 million.

Also in the last year: ¥ Ponderosa Homes broke ground for its development on the 89-acre Busch property. It includes a site for a new Presbyterian Church, Pico noted, plus 172 units for seniors. "This is a significant addition to the city," he said. "The demand for housing in Pleasanton is as great as it has ever been." ¥ The city started work on the plan to renovate the Railroad Avenue fire station as a downtown black box theater and art gallery. ¥ The city OK'd a design competition for the Bernal Property. "I hope this will result in a world-class park," said Pico. ¥ Callippe Preserve Golf Course is nearing completion, at a cost of $38 million to the city for the total project, which includes open space and trails. "This development is a barrier to sprawl on the southern edge of the city," Pico noted. ¥ Val Vista Community Park is nearing completion of its renovation and expansion, with a grand opening scheduled for May 1; new features include the city's first in-line skate park and first community garden. ¥ The city launched its youth Web site, www.PTown411.com. "This is something a little unique," said the mayor, giving credit to the Youth Commission, city staff and Councilman Steve Brozosky.

The mayor also talked about the transition of city management staff. Newcomers are Public Works Director Rob Wilson; Director of Library Services Julie Farnsworth; and City Clerk Dawn Abrahamson.

"We are so fortunate to have a great staff," Pico said. "The figures continue to flabbergast the pollsters." In a 2001 survey, 97 percent of the respondents rated Pleasanton as an excellent or good place to live.

Pico then displayed financial charts. General fund revenues were $73 million in fiscal year 2002-03, and $75 million in 2003-04. Of this revenue, 42 percent comes from property tax and 23 percent from sales tax. "Sixty-five percent is not the norm," said Pico, who is a certified public accountant. "Many cities have no sales and little property tax." These are the ones who depend heavily on vehicle licensing fees, he remarked, which in Pleasanton account for 5 percent of the revenues.

"We also have a special reserve," Pico added. "We have a $5.2 million reserve to handle potential raids the state might do. This is significantly higher than anything we expect, so we are in great shape."

A chart comparing Pleasanton to other cities in Alameda County showed gross assessed valuations. Although Pleasanton ranked third in total assessed value, at $11 billion for a population of 68,000 people, this comes out to $160,000 per capita.

Fremont, at the top with a $23 billion valuation, has a population of 208,000, which means $110,000 per capita. Oakland at $21 billion and a population of 408,000 is $51,000 per capita. Hayward at $10.5 billion and 144,000 population is $73,000 per capita.

"It's that assessed valuation base I think we ought to be really proud of," said Pico.

Another chart showed property tax revenues climbing since 1988, to hit a $33.5 million projection for fiscal 2003-04. "The property tax is going up at a steady angle," Pico noted. "I think it will continue to rise."

The sales tax climbed through 1999-2000, dropped, rose and now is steady; its projection for 2003-04 is $17.4 million but may be as high as $18 million. "The sales tax has flattened out but some cities have seen huge drops," said Pico. "We have a diversified cluster of industries that helps spread this out."

Pleasanton's hotel tax was $2.9 million in fiscal 2002-03 with a projected $3.1 million for 2003-04. Pico noted that hotels are used for business travelers during the week and those attending events on the weekends. More local corporations are using Pleasanton hotels for their training sessions, he said.

"We are fiscally in great shape," he said, noting the diversity in types of businesses and the fiscal reserves. "We have weathered the downturns."

Next Pico listed the upcoming challenges, some of them long-term. "The biggest challenge is the state," he said, explaining that the recent passage of propositions 57 and 58 will only buy time. "To feel the propositions are the solution is to bury your head in the sand," he said. The state still suffers a large deficit and will require reform over the next few years, so cities must watch out for raids on their coffers.

"We are also facing the ongoing battle of PeopleSoft and Oracle. To lose PeopleSoft, a business with 4,000 employees, would have an impact," he said. "I urge you to do what you can to prevent this hostile takeover."

Another challenge is the General Plan, which is currently being updated, using a series of community meetings. "There are a number of issues in our community that need to be addressed," Pico said. "There is going to be an interesting dialog."

"What kind of city will we have at buildout?" he asked. "We have made a major commitment to affordable and workforce housing but it becomes more difficult to site." He said housing could be placed near job and transit centers, such as in Hacienda Business Park, but then where do the children go to school and for recreation?

"We don't need more Ruby Hills," he said. "We need somewhere people who work in the business park can afford to live."

Traffic is another challenge, with 33 major intersections at a level that is not acceptable. "We have to find ways to manage. We can do it but are we willing to accept it?" he said, noting the controversial "gateway" monitoring.

"Planning for the Bernal Property - the Bernal Park - is one of the more fun challenges," he said. "We have an incredible opportunity to design it." He also noted that the "Save Our Community Park" citizens initiative will probably be on the ballot.

He said other challenges are completing the Vineyard Avenue realignment and opening Neal Elementary School, which site is on that road.

He dubbed the retirement of two key city personnel "unusual challenges." Planning Director Brian Swift is retiring in September. He has played a major role in developing quality residential neighborhoods and business areas as well as public amenities. "Replacing him will not be easy in the middle of the General Plan review," said Pico. "He has been a solid rock."

Also City Manager Deborah McKeehan is leaving the city at the end of the year after "15 years of incredible leadership." Under her the city has revitalized its downtown, Pico said, created the municipal library and the Livermore-Pleasanton Fire Department, developed and maintained strong financial policies, and established community partnerships. His comments about McKeehan led to a round of applause from the audience.

"Other challenges will be fun for all of you out there," he told the Chamber members. "There will be a new mayor. This is my last chance to address you."

Pico is not running for re-election in November after serving eight years as a councilman and four as mayor.

"It's been 12 years, a lot of time and energy. I've enjoyed every single moment - mostly," he said, drawing a laugh. "It's been an incredible honor, one few have the opportunity for. I'm so proud to represent you, not only locally but on the state and national level."

He thanked his supporters, including those who helped his recent unsuccessful bid for the Democratic nomination for the 20th Assembly District.

He noted that possibly only Steve Brozosky and Jennifer Hosterman would still be on the City Council after the November election, and with two years' experience they would be the senior members. Councilwoman Kay Ayala's second term will be up and she is running for mayor. Councilman Matt Campbell is not running for a second term.

"I urge all of you to take a role," Pico said, regarding the choice of new council members. He said he has learned during the last 12 years that the residents in Pleasanton like to see a balance on the council. "The people of Pleasanton feel they are empowered. I know the neighborhoods do. The Chamber of Commerce should, too," he said. "Who can represent business interests? We need that on the council."

"I want to thank you for being here," he said in closing. "I can't believe this many people paid to hear me speak."

"I leave you with a city in fabulous shape," he concluded. "Pleasanton is a great place to live, work and have fun."

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