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Mayor, City Manager Outline State of the City

John VanLandingham
The Emeryville Connection Staff
February 2008

Three years ago Emeryville was derisively known as “Emptyville,” because its office vacancy rate was around 30 percent. But no more, City Manager Patrick O’Keeffe told a sold-out crowd at the Chamber of Commerce Annual State of the City address.

The office vacancy rate is below 11 percent and, overall, the city is in as good condition just as it was when it entered 2007, O’Keeffe said at the January 23rd luncheon attended by approximately 100 Chamber members and public officials at the Hilton Garden Inn. The Bank of Alameda sponsored the event.

O’Keeffe wasn’t the only one delivering an upbeat message. Joining him were interim schools chief Stephen Wesley, EUSD Board President Josh Simon and Mayor Ken Bukowski. Simon praised Wesley’s leadership and commented on the difficult job Wesley has, following the popular Tony Smith, who left Emery to take a position with the San Francisco School District.

Wesley praised the city-school partnership that he said had produced a model for others to emulate.

“You are going to hear about the schools and you are going to hold your heads up proudly,” he said, predicting the district enrollment will climb to 1,200 or even 1,500 from its current 800.

Wesley introduced Jonathan Alexander, an Emery Secondary School senior who has set his sights on becoming an attorney and an accountant, although he has never met anyone in either profession. That youth was not alone, as there are many students who have never met anyone in their prospective career fields. So Wesley challenged Chamber members to meet these students and mentor them.

Bukowski reprised the council’s struggles with Measure C during 2007 and warned that Measure C is more than just a living wage law – it is an opening for the government to dictate to businesses how to do its work or assigned employees’ duties. “Emeryville is being used as a testing ground.” Bukowski also acknowledged the role of the Emeryville Chamber of Commerce in helping Ruth Atkin and Nora Davis, along with him, win re-election to the City Council last November.

O’Keeffe started his address positively.

“If you can ignore the recent headlines and think about the economy over the last year, we are in good condition,” he said.

O’Keeffe outlined some indicators of Emeryville’s status as it enters 2008:

· The previously mentioned office vacancy rate.

· Hotel occupancy rates are up.

· The jobless rate is down to 4.5%.

· Population is 9,500 and should, after new construction finishes, reach 10,000.

He warned against complacency however, noting that the city’s operating budget, which had a surplus in previous years, is not likely to have a surplus this year. One reason is the police department is now fully staffed. O’Keeffe said Emeryville is competing with many other cities for police officers and that left the department below its authorized level, saving the city money on police salaries.

Now, the department is fully staffed, meaning an improved service level, but at a greater cost, he said.

Moving on to the city’s General Plan, O’Keeffe said the revision process of the last two years is winding down and that a new plan focusing on quality of life and more parks and open space should be finished by the end of this year.

Still, he requested business people who have attended sessions devoted to updating the existing plan should not relax. “I urge you to stay involved. It’s good to have business interests at the table.”

He alluded to Wesley’s comments on the city-school partnership, adding “a strong school district is critical for the development of our city.”

O’Keeffe returned to the issue of city budgets by explaining the difference between the city’s fully funded $175 million capital improvement budget and its tight, but balanced operating budget for public safety and other municipal services.

The capital budget cannot be used to pay for city services. That’s the purpose of the operating budget, revenues for which are flat. Sales taxes, which account for about 25 percent of the operating budget, remained flat in 2007.

“If the economy weakens any further, that could only worsen,” he said. In response to a later question, he said the city already is putting a hold on much discretionary spending and refraining from new hires until it sees if the money will continue to be there to support those decisions.

Another potentially threatening situation is the state’s $14 billion deficit and the possibility that the legislature could choose to use city and county funds to help reduce or eliminate it. A measure approved three years ago prohibiting such state raids on local treasuries expires this year, although the state would have to repay the money later, O’Keeffe warned.

John VanLandingham is a writer for The Emeryville

Connection. If you have a question or comment, please contact him at ecocnews@gmail.com