2014 City of Cypress
State of the City Address
Mayor Leroy Mills
January 22, 2014

Good afternoon Ladies and Gentlemen. I would like to extend our warmest welcome to everyone. I hope that you enjoyed your lunch. I realize that I am an after lunch speaker, so hang in there with me. I intend that this address will be worth your time.

We appreciate you taking time out from your busy schedules to join us today and we do not take that for granted. At this time, I would like to introduce my colleagues on the City Council:

Mayor Pro Tem Rob Johnson
Council Member Doug Bailey
Council Member Dr. Prakash Narain
and Council Member Mariellen Yarc

And to my wife Mary Ann, son Kevin, and daughter Meredith, thank you for your prayers, love and support. As for Mary Ann, she has been following me around since the 2nd grade----started in North Carolina. But, that's another story. A list of honorable attendees registered for today's event has been included in your program for your information. Their presence speaks very highly of the respect that Cypress holds in Orange County.

The President of one of our businesses stopped by and chatted with me in my Starbuck's office. She relayed to me that in her business circles, she is often asked where her business is located. She responds with a great sense of pride in the "sleepy little town of Cypress".

Today, I would like to talk to you about 6 important attributes essential to retaining and attracting new businesses and residents to our great City:

1. financially sound
2. high achiever in education
3. safe and secure community
4. poised for new development
5. outstanding streets and infrastructure
6. vital parks and recreation programs

The first attribute is that Cypress is financially sound.

One of the greatest challenges for all cities, Cypress included, is being informed of pending legislation in Sacramento. One significant example is AB 26, dissolving Redevelopment Agencies, effective in 2011. AB 26 raided the coffers of local governments to balance Sacramento's irresponsible spending, and created uncertainty and instability for many cities - especially for those which were most severely impacted by the recession. Regretfully, I cannot report that the issues have been ultimately settled. The fiscal impact to the City could be as high as $45 million. The City continues its dialogue via litigation and negotiations with the State Department of Finance (DoF) in our attempt to protect every local dollar to the maximum extent possible from the State takeaway.

Upper government works on the following principle:
"A FINE IS A TAX FOR DOING WRONG, A TAX IS A FINE FOR DOING WELL!"
Nevertheless, the City's fiscal health remains strong because of long term conservative leadership. For Fiscal Year 13-14, the General Fund operating budget is projected to be in the neighborhood of $25 million, and the Capital Improvement Program budget is projected to be around $10 million. 75% of our revenues come from sales tax, property taxes, and other taxes.

For the past several years, Cypress is among the few cities that can claim that we've experienced no lay-offs, no furlough days, no reduction in service levels, and no new taxes during the recent economic downturn. We are on course now to close out this budget year in the black just as in past years. Our success in doing this is to prudently estimate revenues a little low and expenditures a little high just like we successfully did when I was in the Air Force.

The next attribute is Cypress' educational institutions excel!

Whenever one relocates to a new city, high quality schools are very important in deciding on a location. Welcome to Cypress for all of your academic needs from kindergarten through Community College!

Cypress School District was ranked 1st in K-6 and 5th in K - 12 in Orange County. The District's schools achieved an astounding API score of 888! Oxford Academy is consistently ranked high by the U.S. News and World Report. Oxford is also recognized as a National Blue Ribbon School, adding to its already impressive academic honors. Lexington Junior High School, Oxford Academy, and Cypress High School, are all noteworthy California Distinguished Schools.

Extracurricular activities provide for a broad balanced education. The Cypress High School Marching Band won First Place at the 2013 Los Angeles County Fair Marching Band Competition Finals. The Imperial Brigade won a $5,000 cash prize, as well as an invitation to the 2015 Tournament of Roses Parade.

90% of the members of the Class of 2013 of the Anaheim Union High School District are either attending a 2 or 4-year college, vocational or trade school, or are serving our country in the armed forces. 90%!! That's commendable!

At Cypress College, 96% of all available seats were taken by students during the Spring 2013 semester even after adding 48 class sections to the schedule. Responding to demand, the College approved new courses, and new Associate Degrees for transfer.

The Cypress Women's Water Polo team earned a Scholar Team nomination in the Orange Empire Conference, continuing a tradition of classroom academic achievement among athletes.

Cypress College's baseball team was undefeated in the State Final Four tournament, winning the College's 5th baseball state championship. State Championship swimming honors were taken in the 50 yard freestyle along with establishing a number of school records.

The third attribute is Cypress being a safe community.

When each of us leave our homes in the morning for school or work, we do so needing to know that we are leaving our families and property secure. Our world has changed. Our Police Department has remained adaptive to our community needs in maintaining a peace of mind.

The Police Department has presented Active Shooter countermeasures to Cypress College staff members and business leaders. Bi-annual school visits, exercises, and drills have been implemented in response to this new world.

Other program and service advancements implemented during the past year include:

  • A review of suspects convicted of property crimes for potential fraud of the social services benefit system and a determination to suspend or revoke state benefits
  • Implementation of the Police Department iPhone mobile application
  • Internet Safety presentation directed toward our youth
  • And lastly, a multi-language “Community Services” voicemail box

We are pleased to have the Orange County Fire Authority provide fire services. This past year the OCFA provided over 2,500 EMS, Fire, and other service calls. The average response time for Cypress was around 5 minutes.

Cypress is poised for new development is the fouth attribute.

The amount of construction going on is really fueling our housing recovery. This past year, the City saw the completion of:

  • 14 new townhomes on Belmont Street,
  • and 16 million-dollar single family homes on Harmony Lane

Projects currently under construction include:

  • 15 unit townhome project on Orange Avenue
  • 16 unit townhome project on Camp Street
  • And a large tenant improvement on Corporate Avenue

There is a future opportunity to develop 47 detached single family homes on the former Mackay School site. The project would include 2.9 acres of open space area which the City could acquire from the School District for a future park.

Another opportunity exists to develop 29 detached single- family homes on the School District Office site. These homes would be similar to those recently developed in Harmony Lane.

These are great indicators for recovering from the housing slump. This past year, we welcomed:

  • ADC Energy USA, Inc.
  • Cavetec Dabico U.S., Inc.
  • Kusha, Inc.
  • Sakura Paper, Inc.
  • and D'Andrea Visual Communications into our business family, just to name a few. To them, we extend a warm and hearty welcome.

The 33-acre Katella site has taken a change in direction. I understand that the original property owner is looking for a developer with an interest toward a project that is more in line with the community's expressed need.

Much was learned from Measures L & A. Community outreach is very productive. Applied critical thinking is absolutely essential. We are a stronger community for coming together and for the lessons that we have learned.

Expansion of the Los Alamitos Race Course is near completion. This will allow the housing, training, and racing of thoroughbred horses up to 20 days per year. This will be a welcomed addition to the entertainment venue.

The City and CREW Program hosted its first Women's Conference in October. The featured Keynote Speaker was Eileen Frere, Orange County Bureau Chief for ABC Channel 7 Eyewitness News. The conference celebrated women, their achievements, and the difference that women make in the world.

The 4th annual Cypress Job Fair was held in October, attracting over 50 employers and 2,000 job seekers. This Job Fair is unique in that all candidate employers are highly screened in qualifying to participate and must have the job openings to hire on the spot; resumes not just collected and filed away.

The fifth attribute is that our streets and infrastructure are outstanding.

Cypress's financial health has allowed the Public Works Department to continue to execute the projects approved in the 7- year Capital Improvement Program. This type of multi-year end- to-end system engineering planning has greatly benefited our City.

One of our most notable projects is the recently completed Myra Avenue Storm Drain. Myra Avenue has had a history of flooding. With the new fully operational pump station and storm drain, local residents can now rest easier with the added 63 percent increase in capacity.

Public Works finished reconstruction of three major sewer projects to improve 1.5 miles of sewer pipe. These sewer projects further ensure compliance with environmental laws that preclude us from being fined.

The Public Works Department was successful in securing grant funds to install 115 storm drain screens to reduce the amount of trash and debris which flows into storm drains and out to the ocean. The City is halfway to reaching our goal of installing 586 storm drain screens throughout the City.

This past year, the City replaced copper wire with new fiber optic cable, added traffic cameras, upgraded traffic signal controllers to improve the traffic control system and traffic flow. It should be noted that nowhere in the City are cameras used in any way for traffic enforcement.

This past year, we have resurfaced 65 "lane miles" of pavement and complemented this effort by planting over 800 street trees Citywide. Cypress' streets and infrastructure remain one of the best in the county and region.

The final attribute is vibrant park and recreation programs are essential to a community's well being.

Recreational programs too often are UNDER STATED for their value and contribution to a community.

  • $12,804 juvenile parole supervision
  • CA student Ave. $8,482

THERE IS NO SUBSTITUTE FOR UPFRONT INVESTMENT IN OUR YOUTH!

Studies conducted by notable universities and agencies across the nation show that parks and recreation programs provide a health, social and environmental benefit. The American Planning Association identifies parks as a positive source for economic development in recognizing that real property values are positively affected, homebuyers are attracted to purchase homes, and employers are attracted to live and work in the community.

We are fortunate to have a number of popular parks and a thriving community services department. In 2013, more than 400,000 people were served by use of our recreation facilities or participation in our programs and events coordinated by recreation staff for a city with a population less than 50,000.

Many of our services are supplemented by volunteers. 9,000 volunteer hours have been given to our Senior Center alone. Organizations such as Cypress Church, and businesses including Vans and United HealthCare, have provided volunteers to complete service projects or to support ongoing programs in our community.

The City is also grateful for the generosity from the Bandai Foundation in providing financial support to special events and services such as the annual 5K/10K Run, the Police Department's Positive Action Thru Character Education (PACE) Program, Red Ribbon Week and the Challengers Basketball League. Let's give all of our volunteers, services groups, sponsors and community members a round of applause.

Looking toward the future, economic recovery is encouraging for Cypress and Orange County as the local economy and real estate markets have greatly improved. In the past 12 years, the median income in the City increased by approximately $12,650 and the median home sales price increased approximately $176,000.

According to recent SCAG Economic Recovery & Job Creation Summit, the economic indicators and employment trends show an OC return to the pre-recession unemployment levels in 2014 at the earliest, and the latest in 2016, worst case.

My additional duty is being an elected member of SCAG's Regional Council, Transportation Committee, several sub- committees. Along with other regionally elected leaders from the 191 cities from the 6 counties, serve some 18 Million people in SoCal in this organization in our continued efforts to plan and accommodate growth in Southern California, and to project and assess future needs in critical planning areas such as land use, housing, GHG, and transportation. I would like to assure the people of Cypress that the City as well as surrounding communities are being diligently represented regionally and that our interests are being heard.

Let me say emphatically, that the foregoing successes of the Cypress community is attributable to the cooperative, focused efforts of many people. Take away any ONE and our success would be greatly diminished. Our City is in excellent standing, as demonstrated by our stability during these changing economic times.

Ladies and Gentlemen, now comes the award portion of the program. It is our honor to recognize three outstanding businesses that exemplify the City's motto of Progress, by presenting the Annual BRACE, AGENT, and SPIRIT Business of the Year Awards.

The BRACE Award goes to United HealthCare. United HealthCare is an operating division of UnitedHealth Group, the largest single health carrier in the United States. They also have the distinction of being the largest employer in the City of Cypress.

With us today is - Mr. Greg Siebert, Vice President of Network Management to accept the BRACE Award. On behalf of the City Council and staff, it is my pleasure to present to United HealthCare the BRACE Business of the Year Award and this Certificate of Recognition of our appreciation.

The next award is the AGENT Business of the Year Award. And this Award goes to Sika Corporation - Roofing. Sika Corporation - Roofing is an international supplier of high- quality, long-lasting Sarnafil thermoplastic roofing and waterproofing membranes for commercial building applications. Products include energy saving white reflective roofs, vegetated green roofs, solar-ready roofing, and vinyl systems that simulate the appearance of metal roofs. Accepting the AGENT Award on behalf of Sika is Mr. Jesse Quezada, Vice President of Sales. Mr. Quezada, the City of Cypress thanks you and the Sika Corporation in recognition of your exceptional performance, success, and growth in Cypress. On behalf of the City Council and staff, it is my pleasure to present to you the AGENT Business of the Year Award and this Certificate of Recognition of our appreciation.

The final award is the SPIRIT Business of the Year Award. And this Award goes to Hyatt Die Cast & Engineering. Hyatt Die Cast was founded in 1956, currently with 3 California locations in Orange County and San Diego County, boasting 150,000 square feet of manufacturing space for products in aerospace, telecommunications, computer, medical and commercial industries. Mr. Robert A. Meschuk is the President of Hyatt Die Cast & Engineering and accepting the award. Mr. Meschuk, the City of Cypress thanks you and Hyatt Die Cast & Engineering in recognition of your exceptional performance, success, and growth in Cypress. On behalf of the City Council and staff, it is my pleasure to present to you the SPIRIT Business of the Year Award and this Certificate of Recognition of our appreciation.

Ladies and Gentlemen, please join me in congratulating our BRACE, AGENT, and SPIRIT Business Award of the Year winners once again with a round of applause. The City Council remains highly optimistic about the City's future and economic recovery. We will stay the course in the continued tradition of effective governance and prudent financial management of this City's resources ensuring successes in the years to come.

An examination of our community attributes clearly shows that the State of Cypress:

  • is financially sound
  • is a high achiever in education
  • is a safe community
  • is poised for new development
  • has outstanding streets and infrastructure
  • derives excellent community benefits from our parks and recreation and Senior programs

Vince Lombardi: "Perfection is not attainable, but if we chase perfection, we can catch excellence!" Cypress is an excellent city!

You have been a great audience. Thank you all for investing your time with us today. Have a prosperous New Year and may God bless each of you and the City of Cypress.