Lots of useful information to keep you informed in this latest eNewsletter from the City's Fiscal Matters to Recycling to AEDs.   It's all good reading with lots of helpful information.  See below for more . . .

With so much happening, keeping you up to date in my eNewsletter is a chance for me to tell you about issues and events and more importantly, for you to send me your thoughts and comments.  You can write me by clicking on the link.

If you know someone who might enjoy receiving this email, you can send them their own copy - simply click on this link.
 

The Pension and the City's Finances -
My Perspective

Over the last few weeks, the news out of San Diego City Hall has been anything but stellar. Much of it is old news - but during an election year, the headlines are always bigger, fueling the stories to epic proportions.

While I will give credit to creative headline writing like "Enron by the sea" for someone's Pulitzer prize, harmful headlines and quotes from supposed "experts" who have little more than a political agenda have virtually ignored the plan in progress to correct the problems.

The news is not always what it appears to be. In reality, the story is NOT about whether San Diego is filing for bankruptcy, but how the experts assembled by the Mayor and City Council earlier in 2004 have created a plan - a "Roadmap to Recovery" if you will, to return our City to fiscal health. I'm not going to blame anyone for how this problem came into being over the last 20 years. Instead my focus is on solving it and to make sure controls are in place so it will never happen again.

I will share with you the recovery plan put in place by Mayor Murphy and what he's doing about it and then put things into perspective with some questions and answers.

Mayor Murphy and the City Council are attacking all three parts of this problem - the pension system, the city's disclosure documents, and the City's annual financial reports:

Let's start with the Pension System and what Mayor Murphy did to address this problem:

1. Balanced the City budget without raising taxes. The City is meeting its obligations and is not facing bankruptcy!

2. Increased the City of San Diego contributions to the retirement fund this year to $130 million.

3. Put Proposition G on the ballot which requires the City to pay off the unfunded liability in 15 years.

4. Put Proposition H on the ballot which changes the composition of the Retirement Board so that independent members are a majority of the Board.

5. Supported the recommendation of the Pension Reform Committee to issue $200 million in Pension Obligation Bonds and started the process.

6. On October 5 the City Council will consider adopting the Pension Reform Committee's roadmap for fixing the system. Mayor Murphy supports ending the Deferred Retirement Option Program (DROP) which started in 1996.

The City's Bond Disclosure Documents:

Mayor Murphy supports the recommendations of the former SEC attorneys hired by the City to investigate this issue. The City Council will consider those recommendations on September 28. If adopted, the new laws will make the City's disclosure practices the tightest in the nation.

The City's Annual Financial Report:

Mayor Murphy brought forward a proposal to the City Council for a complete re-audit of the 2003 books by KPMG, one of the nation's largest firms, and directed the City Manager and all City staff to do everything possible to get the report released quickly. The fact is, the auditors are independent and the City has no control over when the report will be released.

"I am committed to uncovering every problem, disclosing every fact, and taking action to restore the public's faith in the City's finances. This is a painful time but we will solve this problem, and the City will come out of this stronger and in better shape than ever. One thing I want to assure the taxpayers, City employees, and retired employees - we are able to meet our obligations and we are NOT considering bankruptcy!" - Mayor Dick Murphy

Some Questions and Answers:

Q: Is San Diego facing bankruptcy and if not, why is everyone saying it?

A: San Diego is NOT facing bankruptcy. San Diego is not US Air and it is not Enron. In the New York Times article from September 7, 2004, a local candidate was quoted that bankruptcy was a possible option for the City to consider. Since that article and that one quote in early September, it seems everywhere you turn, people have repeated the "B" word so many times, it's manifested into fact when in reality, it is simply not an option the City nor would I even consider.

When I asked one of the experts on the Pension Reform Commission last week about bankruptcy and comparing the City to US Air (which is in its second bankruptcy and has severe pension problems), he made it clear that if San Diego were to ignore the problems it's facing today, the City could find itself in several years facing bankruptcy - but even Moody's Investor's Service on Friday stated the City is not facing bankruptcy. The fact of the matter is clear: the City has a plan and that plan is in progress.

You can view the Pension Reform Commission's report - refer to the links at the end of this section.

Q: The SEC, FBI and others may be investigating the City for its accounting practices. What can you share about that?

A: The SEC is conducting an investigation into the City's disclosure practices after learning about errors and omissions from the City's 2003 audited financial statements. The investigation is welcomed so the City can create a plan so we are never in this situation again. I believe the FBI is working with the SEC in the event any laws were broken.

Q: Who is Vinson and Elkins, why is their report so bad and can I see a copy of their report?

A: In February of this year, at the recommendation of Mayor Murphy, the Mayor and City Council voted to hire the Washington DC based firm of Vinson and Elkins (V&E) to review the City's disclosure practices. The two lead attorneys working for the City are former SEC attorneys specializing in municipal security laws. Our strategy in February was to bring in these experts, give them full access to any and all information and learn exactly what happened and give recommendations on how to correct the problems so they will never happen again. Their report was released September 20th and it was less than flattering about City disclosure practices. I described it as a mystery novel I couldn't put down - but one unfortunately that was not of fiction but instead stark reality. And while I will leave it to the SEC and others to determine what further steps they want to take, the most important aspect of the report were its recommendations to keep this kind of thing from ever happening again.

We are voting on those recommendations Tuesday (September 28th) and if adopted, San Diego will be the first City in the nation with the strictest disclosure laws anywhere - a model for others to follow and avoid repeating the mistakes made here. You can view the V&E report - see the links I have assembled for you below.

Q: The City's ratings have been suspended, its credit ratings downgraded. When will this stop and when will it turn around?

A: Rating agencies rely, among other things on audited annual financial disclosures in which to make an assessment about the fiscal health of an entity.

After the City took delivery of its annual 2003 audited financial statements, it was brought to our attention that information was missing and the footnotes were incorrect. We fired the auditing firm and hired a new one and asked for a comprehensive review to make sure the mistakes were corrected and that there were no other errors.

This new auditing contract is a huge undertaking by KPMG, the firm the City hired to do the job. Not only are they under tremendous pressure to give correct information, until the rating agencies see their new report, the only thing the rating agencies have to go on is the 2002 report which is far too old and was produced by the firm we fired. One of the reasons the KPMG has taken longer than expected is because they were waiting for the Vinson and Elkins Report which was just released on September 20th.

Once our 2003 audit is released by KPMG, the rating agencies will finally have an opportunity to review accurate financials and following that, credit ratings will be restored. It should be noted that the 2004 audit is also due and something the rating agencies would like to see as well - the 2004 audit will commence as soon as the 2003 audit is released.

I've covered the typical questions I get from folks. If you have any other questions, I'll do my best to answer them or try to get the answer for you. Just let me know by sending me an email at jmadaffer@sandiego.gov.

It's time to end the election-year hype. The world is full of blameful people; the focus should instead be on the plan we have implemented and working together to solve this problem.

Here are some links to some resources and information that might be of help and provide even more information on this matter:

July 7 - Mayor's memo outlining his plan of action in dealing with the Pension problem

September 7 - New York Times article calling San Diego a "Kind of Enron by the Sea"

Sept 8 - City manager responds to bankruptcy rumor

September 11 - Mayor Murphy responds to the New York Times

September 17 - City Manager responds to the New York Times

September 17 - The Pension Reform Commission's final report

September 20 - The Vinson and Elkins Report: Report on the City of San Diego's Disclosures of Obligation to Fund the San Diego City Employees' Retirement System and Related Disclosure Practices 1996-2004 with Recommended Procedures and Changes to the Municipal Code

Details about Proposition G on the ballot (mandates that the City fully fund the Pension System)

Details about Proposition H on the ballot (Retirement Board composition)

AEDs Surging with San Diego Project Heartbeat 

I was proud to participate in helping to accept an award from the American Heart Association to San Diego Project Heartbeat last week for all their efforts with our AED program here in San Diego. Our initial goal was to place 300 AED units around the San Diego area in our first three years. This November we will be approaching that third year and I am proud to say we have over 1,400 AED units installed throughout San Diego.

The most important statistic is that 16 lives have been saved from the use of an AED since we unveiled the program. My goal is to make AEDs as widely available as fire extinguishers and I can tell we are well on our way.

There's a very informative video about AEDs I invite you to watch on my website - simply click this link.

You can get more information about San Diego Project Heartbeat by visiting this webpage

Or read more by visiting the AED page on my website by clicking here

Lake Murray Street Fair: Success Once Again

The 20th Annual Lake Murray Picnic and Street Fair was a great success. There were over 70 booths, children's rides, plenty of food, good entertainment all day and great fireworks.  Over ½ of the vendors have already signed up for next year. Gary Jander, president elect of the Lake Murray Kiwanis Club, conservatively estimated that well over 5,000 people attended throughout the day and evening.
 

Boy Scouts (l to r) Michael Abbot and Emilio Lopez staffed their scout troop's food booth at the Lake Murray Street Fair & Community Picnic. They are members of Troop 950 that is sponsored by the Lake Murray Kiwanis Club. Sales at the booth generated $250.00 in profit for the troop. These funds will be applied to summer camp.
 

Thomas Giambruno and Charlie Eglin, two members of Patrick Henry High School's Wrestling Team, serve snow cones at the Lake Murray Kiwanis Street Fair & Community Picnic. The Wrestling Team members volunteered to help out the Kiwanis Club, and were rewarded with $500.00 from the club for their efforts. The funds will be used to purchase new head gear and warm-ups for their wrestling team.
 

Sam Nachant, 12 yrs old, and a student at Pershing Middle School, displays his prize winning 2 1/4 pound large mouth bass caught at the 20th Annual Lake Murray Picnic & Street Fair, held on Saturday, September 18. It was the largest fish caught as part of the Children's Fishing Derby according to Children's Fishing Derby Chairman, Greg Binde.
 

In this photo is (from l to r) California State Assemblywoman Shirley Horton, former Councilmember Judy McCarty (who founded the Street Fair in 1986), Councilmember Jim Madaffer and Gary Jander, incoming President of the Lake Murray Kiwanis Club.
 

What's A Pole-Out Event?

August 28 was a red letter date for Mayor Dick Murphy, Del Cerro residents and me as we celebrated completing the under grounding conversion process on Del Cerro Boulevard. Have you ever heard of a "pole out" event? That is what we called it and the name fits.

After a brief but very festive informal ceremony, we used a remote control device to assist in operating the big rig and bringing down the pole. It was the 31st and last utility pole on Del Cerro Boulevard, between Madra Avenue west to the intersection of Lyden Way. Residents were very happy to see this day finally arrive as you could tell by the enthusiastic response from the fifty or so people attending.

 

We've all been anticipating the time when these overhead lines would be moved underground and that's what we celebrated that Saturday. It is an expensive task but well worth it.  It was the completion of a $2 million utility under grounding project in Del Cerro that eliminated unsightly electricity lines, phone lines, and cable television lines along a 0.9-mile stretch of Del Cerro Boulevard between Lyden Way and Madra Avenue.  That project included 4,700 feet of utility lines serving 61 homes on Del Cerro Boulevard that were moved.  It is a significant part of our ongoing beautification projects throughout the 7th City Council District.
 

Joining us at the podium were featured speakers Buz Schott, Vice President for Regional Public Affairs at SDG&E; Mary Ball, Vice President for Government Relations at Cox Cable; and Ignacio De La Torre, Executive Director for External Affairs at SBC. Pictured with me are Mayor Murphy and the SDG&E crew that took out the pole (left to right) Jordan Freymiller, Line Assistant; Gary Peterson, Lineman; Ismael Blas, Lineman; Gilbert Rodriguez, Working Foreman; Frank Herrera, Construction Supervisor.

Under Grounding From Top To Bottom

In the past two years we have begun many under grounding projects within the Navajo communities. For example, Zion Avenue between Waring Road and Crawford Street in Allied Gardens is complete as is Streamview in Darnell. Also in Allied Gardens, we're in the process of placing lines under ground on Orcutt and 50th and Twain Avenue between Waring Road and Mission Gorge Road. In San Carlos, the area on Cowles Mountain Boulevard from Navajo Road north to the end is in the final stage. Also in San Carlos as you drive on Jackson Drive from Lakeshore Drive to Lake Murray Boulevard you will see construction underway.

By next summer we will begin under grounding Madra Avenue from Del Cerro Boulevard all the way to Park Ridge Boulevard past Patrick Henry High School. With the major thoroughfares virtually completed, we have begun to underground our residential streets.

The first area selected is one of the oldest in District 7, namely Rolando Park. There are 20 areas to be under grounded within the District. The second area may be the first homes in Del Cerro Boulevard - east of College Avenue off of Del Cerro Boulevard. Madra Avenue is also being targeted as a major community thoroughfare. Streets like Del Cerro Boulevard and Madra Avenue are part of a program being completed separately from the residential under grounding.

I can assure you that it would be great to wave a magic wand and have everyone's house utility lines under grounded. Unfortunately it is a long and expensive project. But the fact is this should have been done a long time ago. If I along with the Mayor and Councilmember Toni Atkins had not pushed for the residential program at Council and if my colleagues had not agreed then we would not be moving forward at all. Yes it is going to take time - roughly one area per year - but the results will be well worth it.

Community Service Center Update

This budget year was a difficult one for the City of San Diego and the Mayor and City Council had to make painfully tough decisions regarding public services. The Community Service Centers were established in the neighborhoods to provide City and other community services in convenient locations without having to come downtown to City Hall.

Unfortunately, this program was impacted by these tough budget decisions. I wish that was not the case. As of July 1, the Tierrasanta Community Service Center and Police Storefront had to close due to overhead costs. However, the good news is that the College/Rolando and Navajo Centers have remained open and available to the public. The College/Rolando Center was scheduled to close. However, because the City owns this center outright I was able to make arrangements for it to remain open one day a week in order to better serve the residents of our district. The new hours for both Centers are:
 

College/Rolando Center is open every Monday from 8:00 a.m. to 5:00 p.m. (closed from 1:00-2:30 p.m. for lunch). Parking District B applications can also be obtained and dropped off at this Center located at 4704 College Avenue. The phone number is (619) 265-3044.
 

Navajo Community Area Center is open Tuesday through Thursday from 8:00 a.m. to 5:00 p.m. (closed from 1:00-2:30 p.m. for lunch) and every Friday from 1:00-5:00 p.m. This busy location also has a Police Storefront and Elderhelp as site partners. The address is 7381 Jackson Drive and the phone number is (619) 668-2700.

Congratulations!

I want to congratulate Patrick Henry High School's Marching Band & Color Guard. They have the distinction of being invited to march in the New York City St. Patrick's Day Parade on March 17, 2005!  That is quite an honor.

I am especially pleased since one of the color guard members just happens to intern in my City Council office and her brother is in the band.  Kayleigh Neel and her brother Evan Neel will be in the St. Paddy's Day parade.  In this picture of the band, Kayleigh is in the first row third from the left and Matt Kalal, the Director of Music at the school is on the far left. He is to be commended. In just five years he has increased the band from 26 members to 85 members and is bringing out the best in these young musicians and students. Band and Color Guard members are busy raising funds to pay for the trip. If you want to help, please contact Martha Thompson, president of the Spirit of 76 Boosters, the 501(c) (3) nonprofit foundation for the Patrick Henry Band. She may be reached at (619) 462-6306 or her email address is jayandmartha@cox.net

Major Gifts

Recently the City of San Diego began a new philanthropy initiative. The Major Gifts and Philanthropy Planning Program launched the new Philanthropy Center on the City's web site. The focus is on letting people know about the City's diverse philanthropic opportunities and to promote the concept of charitable donations on behalf of civic priorities. Please visit this web site by clicking on this link.

High HolyDays

The Jewish High Holy Days are concluding and I want to send best wishes to our Jewish friends during this important time of year. The Jewish High Holy Days are observed during the 10 day period between the first day with Rosh Hashana and the 10th day with Yom Kippur. Rosh Hashana is the New Year and took place this year on September 16 and 17. Yom Kippur is the Day of Atonement and was on September 25th. Happy holidays and a healthy New Year.

 

The Euclid RAP

The Euclid Revitalization Action Plan, sometimes called the Euclid RAP, was adopted by the City Council in 2001 as an official planning document for Euclid Avenue in City Heights. I'm pleased to announce that this document is now available online by clicking here.  Though the RAP has been adopted and we're making progress, you can still participate in the planning of Euclid Avenue and I encourage you be a part of this important community effort. Please contact Elyse Lowe of my staff by email to elowe@sandiego.gov or calling 619-236-6677 to express your interest in participating in discussions regarding the revitalization of Euclid Ave. Public meetings will be held to discuss the potential design for Euclid Avenue and I encourage you to get involved and voice your opinions.

The purpose of the RAP is to identify revitalization strategies for a portion of Euclid Ave. and surrounding neighborhoods located between El Cajon Blvd. and Home Ave. It is designed to implement goals and recommendations of the Mid City Community Plan based on objectives identified by area residents and business owners. The RAP represents a vision of attractive residential neighborhoods with a physically and economically revitalized Euclid Avenue.

The planning ideas found in this document are beginning to materialize and be implemented. There have been pedestrian improvements made around Euclid Elementary School, and over 100 trees have been planted on Euclid and the surrounding streets to create beautiful landscaped parkways. A project that will turn the intersection of Home Ave. at Euclid (known as the Euclid Gateway) into a newly designed intersection and mini-park, has gone out to bid and will soon be under construction. Another phase in the Euclid revitalization plan is to complete the sidewalks that have existed as dirt paths, or have been non-existent for so many years.

The Euclid RAP establishes zoning standards that incorporate commercial and residential components. This document is an important read for the residents of Euclid Ave., and for any potential business owners who would like to gain a better understanding of the community's vision for the area.

Honoring Bobbi Cohen

We have such wonderful people in District 7. I want to tell you about the generosity of a resident of the Navajo area. Her name is Bobbi Cohen. Through our San Diego Project Heart Beat, Bobbie recently donated an automated external defibrillator unit (AED) to the Lake Murray Tennis Club. The contribution was made in memory of her husband who recently passed away from a heart attack. He was an avid sports fan and she wanted to donate the AED to a local sports-related organization. She knew that location would be ideal since it would serve tennis players as well as joggers, walkers, ball players and visitors to the to the north end Lake Murray. The south end of Lake Murray near the boat rentals already has an AED and this additional unit will be available to the other side of Lake Murray near the new Comfort Station. When every minute counts in order to save the life of someone undergoing sudden cardiac arrest, it is important that an AED be available and close by. So a big thank you Bobbi Cohen on behalf of everyone who enjoys Lake Murray.

Recycle Or Else - What Does It Mean?

How well do San Diegans recycle? And, are we really at risk of harming our environment if we throw a plastic water bottle in the trash rather than recycling?

Well, according the City's Environmental Services Department, every two weeks the average San Diego family throws away 64 pounds of recyclable materials in the trash. And each year, recyclables worth more than $158 million are buried in landfills throughout California.

So, San Diego could do better at recycling. And, we don't have a choice. In 1990, The City of San Diego, along with other cities and counties in the California, were mandated by the State to reduce the amount of waste entering landfills by 50 percent by the year 2000 or face potential fines of $10,000 per day. In 2000, the City reached about 48 percent diversion and the State granted the City of San Diego an extension to reach the 50 percent because of the tremendous effort put forward to develop recycling opportunities and outreach programs. While we avoided the $10,000 per day fine in 2000, the extension will expire at the end of 2004 and the City's diversion rate will once again be evaluated. San Diego's diversion rate has slipped to only 44 percent. While the State may grant us another extension, the law does not permit any more time extensions beyond the last day of December 2005.

Not only is the City at risk of facing lofty daily fines, if we don't increase recycling and divert waste from entering the landfill, we will use up the trash burial space at this landfill. The Miramar Landfill opened in 1959 and right now as we bury trash we are using up its capacity and again according to the Environmental Services Department in just about eight years, at our current rate of disposal, we will have used all the available capacity and the landfill will close. The City will be left with finding a new location to bury trash which is not only a challenge but it's costly.

So, what is the solution? Again, it's recycling. If San Diegans do their part to recycle all that we can and we reach 50 percent diversion we could extend the useable life of the Miramar Landfill.

This is not a hard task, we just have to work together and it starts by reevaluating what we throw in the trash and what we recycle. This is the concept behind the Recycle Or Else campaign; we want people to think before they toss things in the trash. From the data we have collected, we believe it starts with education that gets people's attention and makes an impression.

Such as: Did you know that 43 percent of the residential trash landfilled in San Diego is recyclable?

This type of fact is a part of the Recycle Or Else campaign and is what the City hopes people will remember before they throw things in the trash. To deliver these types of facts and information, the Recycle Or Else campaign uses various types of public outreach, some you may have seen already.

The campaign rolled out with its first public outreach teaser on August 2. Teaser signs that read "Or Else" were placed on 75 Metropolitan Buses and 50 billboards around San Diego. While this cryptic message may have left people wondering, the mystery was solved on August 23 with the release of the full campaign billboard and bus ads that revealed the complete message, "Recycle Or Else." Each billboard and bus ad depicts San Diego landmarks in 2012, such as Balboa Park, La Jolla Beaches, and Gaslamp Quarter, awash with trash and depicting the potential result if our landfill reaches capacity and we have no place to take trash.

With this recycling campaign, we are not asking that you change your life; we are just asking that everyone make recycling a part of their daily routine and think about the potential negative impact you make on the future of San Diego each time you don't recycle. And, most importantly, remember…RECYCLE OR ELSE!

You can get more information about the Recycle Or Else campaign by visiting the website - click on this link for more information.

Future Happenings

From time to time I include a few community events taking place throughout my City Council District. Here are a few you may be interested in:

October 9 - Tierrasanta Octoberfest - sponsored in part by the Tierrasamta Kiwanis Club.  More details in the next eNewsletter or call Hani Shatila at 858-268-0044.

October 15 - That is the deadline to nominate a house for consideration of the Rebuilding Together program that takes place April 23, 2005. Rebuilding Together is a local non-profit organization that offers home improvement services at no cost to the homeowner. Applicants must meet the following criteria: 1) low-income 2) own their home 3) unable to do repairs themselves and 4) desire these services and are willing to cooperate within the scope of the program. Click here to find out more about this program at http://www.sandiego.rebuildingtogether.org.

We welcome submissions.  For an upcoming event you would like to see in the next eNewsletter, please email information to lwebb@sandiego.gov.

Thanks for reading the eNewsletter.  If you have any suggestions or comments, please email me at JMadaffer@SanDiego.gov