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2011 State of the City Speech By Anna Peterson, Mayor of Salem, Feb 9, 2011 Good afternoon and thank you all for attending the luncheon today. I want to especially thank Salem Area chamber of Commerce, Salem City Club and Salem Rotary for sponsoring the State of the City address each year. This is a fine example of organizations partnering to produce a major event. Today the public is the recipient of your shared resources, and if my speech is any good, they will be enlightened a bit about their city as well. I would like to start with some introductions and sincere thank yous. First, I want to recognize and thank my husband Edwin Peterson for his love and support, and especially for swearing me in. These days, I am spending less time with Edwin, and more time with members of the Salem City Council. I am impressed with the dedication and time that the Council members devote to their duties and their commitment to making Salem the best it can possibly be. We have a wonderful council and we are really enjoying building our team and working together. Ward 1 – Chuck Bennett, who is also our Council President. Ward 2 – Laura Tesler Ward 3 – Brad Nanke Ward 4 – Rich Clausen Ward 5 – Diana Dickey Ward 6 – Sheryl Thomas Ward 7 – Bob Cannon Ward 8 – Dan Clem One of the busiest city departments is Municipal Court. I want to thank Judge Jane Aiken for her tireless commitment to dispensing fair justice and partnering with community agencies to address the needs of people who come before her. We have hard working, committed department heads. As the second largest city in Oregon, we depend on their highly professional skills and desire to provide the best customer service every day. I’d like to introduce each of them: City Manager Linda Norris Deputy City Manager Sean O’Day City Attorney Randall Tosh Public Works Director Peter Fernandez Police Chief Gerry Moore Fire Chief Mike Niblock Community Service Director Vickie Woods Urban Development Interim Director John Wales Information Technology Director Ida Salazar Human Resources Director Connie Munnell Administrative Services Director Tony Mounts I also want to thank the employees that work for the City of Salem. They care deeply about their community, and are at the forefront of dealing with the everyday tasks that are part of a large city operation. I want to especially say thank you to them for working so well with staff, volunteers, and Council, to reach our city goals. They also recognize the needs in our community, and have regularly sponsored food drives, toy collections, and volunteer in our community outside of work hours. Thank you for all you do to make Salem Shine. At the core of our community are over 5,000 volunteers that really make our city zing. Whether they serve in the Library, or at Center 50+, the Police Dept, or are in the parks, historic properties, neighborhoods or the airport, or in dozens of other volunteer positions, they are vital to the smooth-running operations at City Hall and across our community. And special thanks go to the members of our Boards, Commissions and Task Forces. They are a vital conduit between the community and City Hall, as they help us develop policies, programs and solve problems, every day. Many people have asked me why I wanted to be Mayor of Salem, and especially why now—with budget reductions and the uncertain economic outlook, and the downturn across our community. My answer is: What better time to be able to bring our residents together, maximize our resources, and build upon the many accomplishments of recent years. And besides, I tell them, we are not broke; we are not broken; and we continue to move forward. Take for example the accomplishments Salem has made in the last year in the area of technology and energy efficiency: Our beautiful and much-used Salem Conference Center achieved LEED certification,. Many groups look for this type of designation when booking conferences and conventions, so this designation enhances marketing and use. Over 80,000 people attended events here in 2010, many of them coming into city, staying in our hotels and motels, and spending money in our restaurants and stores. Solar panels are being installed on the roof and the Conference Center should begin to draw some of its energy from the panels by March. In November, West Coast Bank, Salem Electric, Portland General Electric, and the Energy Trust of Oregon partnered with the City of Salem to launch a new pilot loan program for Salem commercial building owners. Commercial business owners and tenants are eligible to receive incentives of up to 50 % for lighting improvements made to their building or business, and access to a low-interest loan for other project costs. Lighting improvements typically result in a payback period of between 3 – 4 years, but with the added incentives offered through this program, the payback is closer to 1 – 2 years. Technology is enhancing public safety in Salem as well. The Photo Red Light program continues to reduce red light violations and improve traffic safety at 25th and Mission and Center and Commercial. CrimeReports.com, is a new web-based crime reporting mapping system that aids in identifying areas of criminal activity. New Radar Reader Boards are being placed on streets where speeding is a problem. And user-friendly reporting of losses is now available through the on-line, 24 hr a day reporting system. Salem Fire Department secured a $450,000 grant to purchase dual-band portable radios to communicate with other agencies more quickly and thus coordinate responses to emergencies and disasters. Salem’s Information Technology Department developed an application so that emergency responders can make wiser, quicker decisions to deploy personnel and equipment, saving time and maximizing resources. Our first responders – the Fire Department, the Police Department, and our partner Rural Metro Ambulance do an outstanding job of providing emergency response and keeping our community safe. I nave ridden along with all three and encourage everyone here to do the same. You will see first hand how they work collaboratively and cooperatively to get the job done. Our thanks to them for keeping Salem safe for everyone. A major public safety issue is the number of people with mental illness or addiction issues that our law enforcement officers are dealing with because there are insufficient local resources. I have talked with our Police Chief, our Marion County Sheriff, and our local legislators and county commissioners about the need for local, community-based facilities and services to meet their needs. Arresting them and taking them into the criminal justice system is not the answer. The answers will not be found in jail cells or on prison wards. It will be found in local settings when we provide the services they so badly need. The Building and Safety Division improved its website to allow applicants better access to service options and information regarding permit status, land use application and licensing. Young people are often the first to use new technologies, and they have not been forgotten as the City embraced new ways. The Library secured a grant for a ―Creation Station‖ in the new teen library to provide audio, video and desktop publishing products for educational and personal uses. Our Community Development department has created the City’s first and largest Facebook page for the Youth Development & Prevention section. The page has more than 1,200 friends – mostly teenagers who volunteer and perform community service work. Technology and energy saving systems have not been limited to city functions. In May of 2010, the Teton Non-Profit Housing Corporation in partnership with the Salem Housing Authority secured $730,000 of HUD grant funding to provide a comprehensive Green Retrofit to fund critical improvements, recapitalize reserves, implement green operations and maintenance practices at this 50-unit senior housing property. Careful use of public funds is not limited to what goes on inside city facilities or in cityrun programs. Social service agencies play a vital role in our community, and the City has recognized this by providing funds for some of the most basic of human needs. We have used general funds and Community Development Block Grants to provide social services to 23,551 individuals. The city also assisted Marion Polk Food Share and the Salvation Army as they provided 160,037 meals in 2010. Other Block Grant funds to Marion Polk Food Share helped add a community and training kitchen to their current facility. At the West Salem Clinic, Block Grant funds in 2009 and 2010 paid for building modifications to add 17 new exam rooms which resulted in the hiring 3 additional doctors and allowing many new patients access to services. Now let’s talk about the budget, and why I say we are not broke: Careful budgeting and streamlining and reductions in 2009 and 2010 have left the City of Salem in much better financial situation than many cities and states across our nation. We have not spent down reserves and jeopardized our bond rating, and we have not continued to spend as if money would be found in a bottom drawer or hidden ledger. I would be less than honest if I told you that Salem can continue to provide all the services and programs the public would like to have. As we begin the budgeting process, the Citizen Budget Committee will carefully review the City Manager’s recommendations and listen closely to public testimony to determine the mix of programs and services they hold most important, and what they can do without. We invite you to attend the budget hearings, where public testimony is always encouraged, and to e-mail city councilors, other members of the Budget Committee or myself, to make your thoughts and wishes known. Here are some of the things we have done in the last year to save money: The Municipal Court began two new programs to improve collection of fines and assessments. The city’s fleet operations are saving money by doing more preventative maintenance and using new technology to reduce employee hours Employees installed energy monitoring equipment and reduced over 1 million kilowatt hours of energy use in the Civic Center Center 50+ reduced the burden on the City’s General Fund by leveraging the city’s $479,000 to provide nearly $2 million dollars worth of programs, services, and volunteer hours. Increased recycling has reduced City garbage by approximately 20%. Property insurance coverage changes and renegotiated workers’ comp and liability premiums have saved the City more than $125,000. Beyond crafting a balanced budget, reducing costs across city departments and programs, we are mindful that union contracts must be carefully negotiated to keep wages, benefits and pensions at levels that recognize today’s tight economy and take into account the future effect of today’s decisions. One of the things that distinguish Salem is the tremendous participation and contribution by the public to enhance city services and programs. This last year, the Salem Police Foundation was created by citizens wanting to increase public safety programs. As their first project, they assisted with manpower and financing to redevelop and rebuild a Police K 9 training obstacle course. The Library received nearly $350,000 in private donations to complete the renovation of a new Teen Library slated to open on March 18, 2011. And the Center 50+ has collaborated with other agencies, the business community and volunteers to offer nearly 200 quality programs and services to over 800 daily attendees. Saving money, and mining community relationships and resources are important steps, but job development and private sector investment within Salem are needed in order to turn our economy around. There have been some bright spots in the City’s efforts to add jobs. Home Depot built its 465,000 square foot Rapid Deployment Distribution Center at the Mill Creek Corporate Center, providing family wage construction jobs and has opened with 300 permanent employees. We must continue to work with the State of Oregon and SEDCOR to market the Mill Creek Corporate Center. Two long-time Salem businesses expanded and added jobs: Garmin Technical Information Center has 250 new jobs, and Kettle Foods’ latest expansion added 16 new positions.. New small businesses have opened in Salem and others have moved to new locations, making capital improvements and adding employees. I want to say a very sincere ―Thanks‖ to the Salem Chamber for its enthusiastic ribbon cuttings and support to new and existing businesses. But this down economy demands that we do more. We must be more targeted in our marketing, and more aggressive in ferreting out businesses who are actively looking today for new locations. Through our partnerships with the Salem Area Chamber of Commerce, SEDCOR, Chemeketa, and Business Oregon, we must identify businesses compatible with our location and resources, and others that currently supply existing businesses. I have already started planning with the Chamber and SEDCOR on these new ideas, and will be involving new people from businesses and industries and commercial Realtors who will help bring fresh ideas and connections to our efforts. Our goal will be to attract additional jobs to the Mill Creek site, the High Tech and Renewable Energy Park and other shovel ready sites and properties across the city. More nationally recognized retailers are needed in our downtown, and they are on our recruitment list as well. We are unusual in that we have four major department stores downtown – Kohl’s, Macy’s, Nordstrom and JC Penney, who just completed a major refurbishing of their store. Connected by sky bridges, they are important anchors to our vibrant downtown, and we need to keep them in our downtown. One of our most exciting opportunities is in the area of renewable energy and sustainability. Not only has the City of Salem undertaken numerous sustainable practices, but our new High Technology and Renewable Energy Center attracted a leader in sustainable energy—Sanyo Solar. Its addition to our list of manufacturing firms is fueling interest and partnerships that will make Salem a leader in attracting and working with companies that develop solar, wind, biomass, electric vehicles, and geothermal resources. Land is ―ready to go‖ at this site. Thanks to Portland General Electric for installing a new transformer station in the Center to meet the needs of future businesses. With over 200 new jobs, SANYO is just the beginning of job growth as other firms look at this site for their operations. The University of Oregon recently selected Salem for their Sustainable Cities Initiative to develop plans and designs for city facilities, transportation systems, infrastructure and community development. Over 500 students are working with city staff and community and development leaders to envision and design new projects. Their work will help Salem leverage existing resources to move projects forward based on well-researched designs and plans. With shovel-ready land at the Mill Creek Corporate Center, and the High Technology and Renewable Energy Center, and land and buildings ready at the McGilchrist Urban Renewable site, and several other large tracts of available serviced land, now is an excellent time to invest in Salem. Commercial air service is still a priority. City Manager Linda Norris and I met recently with principals from the firm that assists Salem with those efforts The recent 4,000 square foot expansion of the airport terminal and FAA approval for the upcoming runway extension project are crucial infrastructure projects that position the City to attract commercial air service. We discussed several carriers, and in particular one airline that will be particularly compatible with Salem travel patterns. The third bridge across the Willamette – the bridge to West Salem – will benefit all Salem residents. It will not help just West Salem residents, but will enable people and goods traveling through Salem to reach their destinations more smoothly and with less congestion on both sides of the Willamette. The down economy has taken its toll on some of our downtown properties, both condos and retail spaces, and vacancies are a concern to customers and local businesses. And who would have ever guessed that 10 years after its opening, the Courthouse Square would again be behind chain link fencing while Marion County and the Cherriots Transit District grapple with structural problems rendering the building and parking structure unusable. You can rest assured that Salem will be working with Marion County and the Transit District for the best and highest use of that important downtown block. The Downtown Riverfront Urban Renewal Advisory Board and the Urban Development Department has been working on a comprehensive Strategy that identifies specific areas for investment of Urban Renewal dollars and a plan for action in each area of the District that will attract private investors. From improved use of the 2nd floor in downtown buildings to revitalization of business and residential areas north of downtown and along Front Street, the City will be ready when investment dollars and the private sector are ready to continue improvements to downtown and the area north of Marion Street. The Boise property owners are working to attract the type of business, hotel, recreational and residential activity they have envisioned, but it will take time before these plans become reality. But lest you think that nothing positive has happened in our community this last year, I wanted to be sure to include the latest news about parks in Salem. We have completed construction of Bryan Johnston Park – doesn’t that name bring back a lot of wonderful memories—and the dedication and ribbon cutting are scheduled for spring. The City completed the re-planting at the Minto-Brown Island floodplain as part of the natural habitat restoration project. We look forward to the day that the stream that flows under the Boise site will be uncovered, when a pedestrian walkway connects from there into Riverfront Park, and across a pedestrian and bicycle bridge to Minto Brown Island Park. The City has closed on the 50-acre Battlecreek property in south Salem. Street and initial storm water improvements are scheduled there for construction in 2012. Look forward to having a new park in that very active area of town, within a short driving or walking distance of many neighborhoods and families looking for recreational opportunities in that end of town. Salem is a community of natural resources second to none in the state. We have an abundance of open and green spaces, waterways for habitat and recreation, and parks with a wide variety of sports facilities and spaces for community activities. With the conversion in 2008 of the Union Street Railroad Bridge into a bicycle and pedestrian connection from Riverfront Park to Wallace Marine Park, we began to realize the dream of linking Minto Brown Island Park, Riverfront Park and Wallace Marine Park into one of the largest connected open spaces for public recreation in the state. Recreation and community use of these spaces creates jobs, and increases the value of adjacent properties. Plans are underway to form a Natural Resources and Sustainability Advisory Group that will work with me and the City of Salem to develop long range plans to care for and use our natural resources--our streams, our open spaces, and our parks-- to their fullest recreational, habitat and economic potential. Another valuable job creator in Salem are the arts and cultural heritage facilities and activities. By attending the world-class musical and dance performances, lectures, art exhibits, historical sites, and fairs, festivals and events held right here in Salem, we learn about our past, connect to the wide variety of cultures and religions here today, and enjoy the artistic talents of people of all ages. The dollars spent at these venues add to our economy and the paychecks spent here every day. Congratulations to Salem Art Fair for being recognized as one of the top 20 art fairs in the United States! The Oregon Artists Series Foundation continues to mount exhibits in the Conference Center, adding greatly to its shine. The newly reconstituted Salem Public Arts Commission will bring new art to public spaces all other our city. Our growing population has turned Salem into an international city, with people moving here from all over the world. They are working, living and participating in our community, and have become an excellent resource as we learn more about cultures, religions, and traditions from other lands. These international contacts are fueling businesses and helping Salem to attract businesses and trade from around the world. I am already planning with the Salem Multicultural Institute, the NAACP, The Latino Business Alliance, and other organizations and individuals to create an advisory group on multi-cultural and ethnic issues and opportunities. I would be remiss if I did not celebrate our distinction as Oregon’s state capital. Easy access to elected officials, the legislature, state agencies, appellate courts and other state facilities is an advantage that makes Salem a great location for any business or organization that does business with the State of Oregon. I have visited with every member of our legislative delegation, as well as people from DAS, DHS, and toured the new State Hospital. I pledged to work closely with each of them, and our Marion County and Polk County Commissioners to strengthen our city and region. In closing, I would again like to thank Salem City Club, Salem Rotary, and the Salem Area Chamber of Commerce. Our Rotary Club members have a tradition of raising funds for our good works projects by ―ringing the bell‖ to announce good news, family accomplishments, or when our photo appears in the local paper. Well, I am prepared today with my check for the Salem Rotary Foundation, and I’d like to present it to our President Dawn Bostwick.