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(relaxing music) – Good afternoon I’m pleased to be here at the invitation of the Fremont Chamber of Commerce, the host for today’s luncheon And thank you to the Marriott for their excellent service What a year! Fremont made history by converting our elections from at large voting to a district-based system last November Residents residing in Districts 1 through 4 voted on new Council representatives I’d like to recognize my fellow colleagues on the Fremont City Council; Vice Mayor Raj Salwan, Councilmember Vinnie Bacon, Councilmember Teresa Keng in District 1, Councilmember Rick Jones in District 2, Councilmember Jenny Cass-ann in District 3, Councilmember Yang Shao in District 4, and DistrictS 5 and 6 will be electing their representatives in 2020 We have a long legacy of great leadership We recognize the loss of retired Fire Chief Dan Lydon earlier this week Dan has left his imprint on making Fremont a better community Now I’d like to welcome our new City Manager, Mark Danaj, who was hired last September Mark’s passion for city management revolves around modernizing local government, making it more accessible to residents, and fostering authentic civic engagement With a new Council and City Manager onboard, we held a retreat in January, and agreed upon a shared vision of three key focus areas, which I’ll touch upon throughout my speech today; housing, traffic congestion, and neighborhood commercial DISTRICTS and businesses These priorities will translate to actions, including a review of housing and growth management, the creation of new development guidelines, the exploration of innovative transportation solutions, and increased support for our businesses And these priorities are in line with the results from our community survey conducted last June While city services overall continue to have a positive impact, we heard you, and are increasing resources for all areas of concern As Fremont and the rest of Silicon Valley have added jobs, the demand for housing has skyrocketed There needs to be an appropriate mix of housing at varying levels of income For example, in the Warm Springs Innovation District, the City partnered with developers to create a transit-oriented mixed-use community This will include 4,000 new homes, ranging from high-end town homes to rental apartments serving very-low-income families, as well as a brand new elementary school Fremont has always had good at balance between housing and jobs As job growth has risen in the past few years, Fremont has approved new construction, particularly around the Warm Springs BART Station, to try to maintain that balance Although Fremont has maintained a healthy balance between jobs and housing, many communities in the Bay Area and throughout California have not As a result, the state has passed legislation to make housing development easier at the expense of local control over planning decisions Many additional housing bills that would impact cities have been proposed this year I’m actively working with the legislature to share Fremont’s story, to show we are meeting our state-imposed housing goals, while still ensuring that new development contributes to the balanced infrastructure, with parks, roads, schools, and affordable housing that make our communities great places to live Fremont has done the right thing We shouldn’t be subjected to one-size-fits-all mandates from Sacramento Fremont requires new residential development projects to support affordable housing by providing either on-site units or paying fees Commercial and industrial projects are also now required to pay linkage fees to help produce more affordable housing It’s been a record breaking year for us, building more affordable housing units than ever before Let me share a few of the highlights with you Stevenson Terrace was completed earlier this year with MidPen Housing Also, the city and Habitat for Humanity are giving low and moderate income families the opportunity to own a home at Central Commons Additional funding was also approved for construction of City Center Apartments, providing supportive housing for low-income households, with a number of units set aside for veterans and people with mental disabilities And last November, the Council approved entitlements and funding for the conversion of the Islander Motel on Mowry to rental apartments for low income households In the interim, we’ll use the current motel to house some of our homeless population Homelessness is a growing societal issue for Fremont

and our entire nation We just wrapped up our 2nd Alameda County biennial homeless count I’m proud that Fremont is a city where everyone counts Additionally, this year, Fremont moved from providing a warming center to an expanded winter relief shelter It relocated from our Senior Center, to the Teen Center, in January Joining forces with Newark and several community partners, we also launched a newly named mobile hygiene unit, called Fresh Start It’ll provide a much-needed shower and laundry services to those unsheltered and homeless We’re appreciative of all community partners that have made these services possible Community collaborations also help us better serve our senior population and make Fremont an age-friendly, livable city for all Seniors can rejoice that construction of the Pauline Weaver Senior Apartments is complete The project was built in partnership with Eden Housing and you’re all invited to the grand opening celebration on May 17th And ground breaking for the new senior center in Warm Springs is anticipated this summer This center, expected to open by 2021, will offer a much needed space for older adults Moving on now, let’s turn our focus to traffic and mobility challenges across the Bay Area and throughout our city Both continue to be top concerns that we’re taking bold actions to address Locally, we just adopted the Fremont Mobility Action Plan, which includes strategies to improve our local and regional transportation systems Regionally, on ACTC, I serve as vice chair for Alameda County Goods Movement Committee and chair of the 680 Sunol Express Lane Joint Powers Authority Committee There, I’m advocating to deliver mobility improvements for our community I’m also fighting to bring federal funding to Fremont as a member of the Transportation and Infrastructure Services Policy Committee for the National League of Cities and serving as Co-Chair for their Transportation Technology subcommittee Looking at the root causes of traffic congestion that overwhelms our city, I want underscore the unbalanced development of jobs and housing In the Bay Area since 2010, 700,000 new jobs have been added, but only about 100,000 new housing units Fremont is at the junction of major commute corridors that connect where people live and where the people work Dumbarton Bridge and Niles Canyon, 880, and worst of them all, ranking fourth most congested corridor in the Bay Area, 680, over the Sunol grade Fremont has been leading the way in responsible planning Unfortunately, this is not the case in many Bay Area communities In Santa Clara County, the recent ratio of new jobs to housing has been eight to one, while in San Mateo County the ratio is 17 to one As a result, we’re working to influence regional policy to prompt other communities to develop in a more balanced way Key strategies we support are having more housing built in cities that are approving an excess amount of jobs and having new jobs locate to where the people are Simultaneously, progress is being made to improve regional transportation systems, like BART, extending south to Milpitas and San Jose In November 2020, there will be an additional eastbound lane on 680 and over the Sunol grade More projects are in the planning pipeline as Fremont works hard to compete for funding from regional, state, and federal governments, as well as the private sector Supporting our goods movement is a leading priority and unclogging the bottleneck along 262 and Mission by upgrading this connection between 880 and 680 In North Fremont, a high priority is to build the Dumbarton Rail connector, facilitating multiple railways across the Bay We appreciate twice elected MTC Chair, Scott Haggerty, and ACTC Chair Richard Valle, for their partnership with the City of Fremont in helping us deliver transportation infrastructure projects And kudos to Senator Bob Wieckowski for securing state funding for a Southern Alameda County Rail integration study Thumbs up to Facebook for taking the lead on planning and financing the Dumbarton Rail project Speaking of funding, big thanks to the voters for their commitment to transportation investment Last year they rejected Prop 6, which would have taken away millions of SB1 gas tax dollars that Fremont is using to maintain our streets and improve traffic safety, as well as billions of dollars committed to regional transportation Voters also approved Regional Measure 3, increasing bridge tolls in the Bay Area earmarked

to improve a variety of projects like BART and 262 Thanks to a community task force and extensive public input, our Mobility Action Plan is complete In addition to regional policy and projects, the plan addresses many local priorities, including working with Fremont Unified School District to expand our Safe Routes to Schools programs, helping more students safely walk and bike to school Over the next two years, we’ll be working with AC Transit to get more more frequent buses along major corridors I’m proud to see Mobility task force member, Diane Shaw, elected last year to serve on the AC Transit District Board In addition, our Fremont traffic signals are overdue for an upgrade Fremont has 220 traffic signals and most of them are operating on technology that predates the iPhone Plans to modernize our signals with new hardware and software will allow more efficient traffic flow, faster response times for emergency vehicles, better detection for bicyclists, and a battery backup system to ensure uninterrupted power We’ve budgeted to modernize 40% of our traffic signals by 2022 And we’ll be looking for funding sources to complete the city’s network 2018 saw Fremont’s lowest number of major traffic crashes involving a severe injury or fatality In the coming year, more traffic safety devices will be installed, like flashing beacons and enhanced crosswalks, to help pedestrians cross busy streets As we work to implement creative solutions to traffic and housing, we’ll also be focusing on neighborhoods of character and look forward to working with our historic commercial districts, small businesses, and community partners In the Mission San Jose Business District, we’ve initiated a commercial strategy study that encompasses the area near Washington and Mission boulevards We’ve asked for public input and look forward to the study’s results in May To strengthen the historic heart of Irvington and allow it to grow in a healthy and vibrant way, we held a workshop to provide overview of the City’s General Plan as it applies to the Irvington Community Plan Area Over in Centerville, we’re moving forward with our commitment to the State of California to facilitate a new elementary school at Centerville Community Park and to build two new city parks by June 2023 Adding to this revitalization, the district is attracting significant private investment, including a variety of new retail amenities We continue working with community partners to highlight Niles, our unique historic gem, with its small businesses and colorful events delighting all Working with the Small Business Development Center, we continue to provide free workshops and seminars on topics of interest to our small businesses Later this year, look for this resource to become more robust and accessible in Fremont, as the Alameda County Small Business Center Headquarters relocates from Oakland to Ohlone College Working with the Fremont Chamber of Commerce and historic business districts, we’re supporting an environment to help our small businesses thrive We’re thrilled Fremont’s economy continues to show strength in a variety of sectors Building Fremont’s robust advanced industry profile remains a top priority for our city and is critical to maintaining a diverse economic base, creating jobs and generating revenues Fremont’s long-standing leadership in advanced manufacturing is at the foundation of this strength Look no further than Tesla Factory, with the Model 3 being delivered to thousands of customers As the city’s largest employer, their presence extends far beyond the thousands of direct jobs they’ve created and into a vast ecosystem that other anchor tenants are attracted to As new industries continuously emerge in Silicon Valley, there are a few that are concentrating in Fremont These include industrial automation, robotics, and autonomous vehicles This impressive collection of logos represents new tenants in Fremont, as they establish their operations and pave the way for innovation Fremont’s largest growth sector continues to be Biotechnology Most of Fremont’s biomedical companies manufacture here, which is of particular importance, given the ripple effects in the larger economy due to a growing supply chain network Last year, I shared about Boehringer Ingelheim’s $217 million expansion, bringing 300 jobs at one of the city’s

largest biotech tenants Innovation is in our DNA and I’m excited that UK-based Orchard Therapeutics has located in Warm Springs to build out a gene therapy manufacturing operation We also welcomed dozens of new biomedical startups, including PrinterPrezz, who is revolutionizing medi-facturing, through advanced 3D printing Expanding workforce development is key Advancing to its second year, I’m thrilled that FUSE Fellow, Parker Thomas, is now working with the Alameda County Library team to support the next generation, as they prepare to join the workforce Just like the Aviation Institute of Maintenance, relocating to a new facility in Fremont, to grow student population and improve training amenities In addition to reaching 1,000 students by the end of this month, our famous coding school, 42 Silicon Valley is bringing international attention to Fremont Through activities like participation in IBM’s Call for Code challenge, where the city’s emergency response process was the subject of an international competition with over 180 teams, culminating in $200,000 dollars in VC funding For several years now, Mission Valley ROP students and teachers have participated in Manufacturing Day, tours to local companies Students see and learn first-hand the importance of advanced manufacturing and its direct connection with career technical education Our Smart City initiative is continuing to advance We’re harnessing innovative technologies to improve our own operations and service delivery models Modernizing traffic signals and being selected into City Innovate’s Startup In Residence program, we’re working with players in the tech industry, to ease traffic congestion throughout our streets And forming alliances with Fremont-based companies like Gridscape Solutions, who completed the Fremont Fire Station Microgrids project, now a model for dozens of other Californian cities Fremont has also been concentrating efforts to focus on one of our most strategic employment locations in the Silicon Valley, the Ardenwood Technology Park Its proximity to the Peninsula and superior access for a technology workforce is turning heads Industry growth has been significant and swift In addition to 42 Silicon Valley and Boehringer Ingelheim, new operations have established in the district, including Novo Nordisc, a world leader in diabetes care And did you hear? Facebook has leased over one million square feet of space to develop its eastern Silicon Valley campus, creating a shorter commute for many of its employees, who live right here in Fremont This is attracting new investment in Ardenwood and proposed new development Similarly, investment is robust in the city’s other strategic locations for employment growth and new amenities, including Downtown and Warm Springs Embracing our vision of creating an active and vibrant downtown, we’re finalizing plans for the new Downtown Event Center and Plaza to serve as Fremont’s primary destination for cultural, social and civic events Supporting our local business community, there will be new space for networking, events, and conferences Keeping with Fremont’s goal of being green, it’s the first city building to be primarily supplied with solar energy With zero dependence on natural gas, the facility’s operations will be emissions free This aligns with the city’s goals of moving away from fossil fuel infrastructure, towards clean and renewable electricity Walking a few steps further, a new mixed-use development will be coming to the corner of Walnut Avenue and Liberty Street The much anticipated Locale @ State Street project on Capitol Avenue is nearing completion A wide variety of businesses, from coffee shops to restaurants, are in active talks with the developer Building on this momentum in Downtown, this district has been designated as a federal opportunity zone As one of only a few Bay Area cities to receive such a designation, the associated tax benefits will make investment in Downtown even more compelling And the landscape in Warm Springs/South Fremont continues to change with the strategic build-out of our 21st Century Innovation District This brings new jobs, housing options, and walkable communities, also increasing access to affordable housing in Warm Springs with the construction of over 500 new affordable rental units And providing nearly 11 acres of accessible public space, knit together by a network of neighborhood parks, plazas, and trails being constructed as part of the large-scale mixed-use and commercial master plan developments

Serving as the cornerstone for education and open space for the Fremont Innovation District, the new Lila Bringhurst Elementary School will be ready for the new school year this fall The new joint-use Community Park is scheduled for completion this summer The joint-use Community Park is a collaboration between the school district, Lennar Homes, and the city Looking forward to opening day for the new West Access Bridge and Plaza Project Thanks to Measure BB, it’s currently under construction and we appreciate the help from our partners Around the corner near the Warm Springs BART station, we have two affordable housing projects underway Innovia is being built in partnership with St. Anton Communities And Warm Spring’s Metro Crossing is a collaborative effort with Eden Housing Another collaboration was our recent Commercial Real Estate Bus Tour with The Registry publication Touring nearly 200 investors and potential partners, we showcased projects in Warm Springs, Downtown, Artist Walk in Centerville, and the industrial development known as Pacific Commons South This breadth of projects demonstrates the balanced growth that Fremont is experiencing, addressing both jobs and housing Our Economic Development team has also grown the selection of retail and restaurant offerings in Fremont Also, two new auto dealerships are in the works, as we’ve entitled undeveloped land in South Fremont And four new hotels are in the pipeline Businesses get a head start with our Business Ally program and a single point of contact New Chapter Director, Guy-Tree Khandell-Wall, onboard, 2019 programming for Startup Grind is in full swing With meetups focused on topics like blockchain, marketing, and crowdfunding Thank you to local entrepreneurs and to Peerbuds Innovation Labs for hosting these important events Welcome to our new Community Development Director, Dan Schoenholz, who has led updates to the city’s General Plan, while most recently overseeing the creation of several hundred units of affordable housing Creating better access for businesses and residents, we launched our new online permitting tool You’ll save time, money, and reduce paper consumption In other sustainability efforts, we’re updating our Climate Action Plan, with the goal of reducing community-wide greenhouse gas emissions Recent technological advancements paired with favorable codes, ordinances, and incentive programs have helped to keep Fremont on track For those businesses seeking assistance with rebate and incentive programs, help is available through these several agencies Another key initiative for Fremont is welcoming a new electricity provider through a local Community Choice Energy program East Bay Community Energy launched affordable green options for residents and businesses who are now getting cleaner electricity at an affordable rate Further punctuating Fremont’s continued bold climate leadership, I’m proud of the unanimous Council approval to adopt a new carbon neutral goal and post-carbon community framework Fremont is one of the first cities in the region to align local policies with California’s most ambitious target of carbon neutrality by 2045 Other noteworthy Council actions including taking steps to preserve solar access for everyone through our recently passed Solar Preservation Ordinance for all planning applications The Council also adopted a local minimum wage ordinance that increases the rate to $15 per hour, two years earlier than under the state law And the Rent Review Ordinance was passed in January 2018 And the Council is prepared to align with StopWaste.org to regionally reduce the consumption of single-use plastic over the next year Fremont continues to act on climate change, signing 10 prominent national and international letters of support in the last four years Speaking of notable news, last July, Fremont welcomed our new police chief, Kimberly Petersen Her impressive 22-year career makes us proud that she’s our city’s seventh police chief, and first female chief Under new leadership, the Police Department continues to maintain our public safety, even being recognized today with the Chairman’s Award from the Chamber of Commerce Remaining steady over the past two years, our city maintains its focus on reducing residential burglaries An expanded focus is now on auto burglaries, something that remains a significant problem not only in Fremont, but in most Bay Area cities We’ve allocated significant resources to disrupt this trend, and have seen an 11% decrease

in thefts from vehicles this year compared to last year We recognize the severity of resolving these situations and just last month, arrested 11 suspects in an eight-day period We’re implementing 21st century policing, including deployment of body-worn cameras and in-car cameras Fremont is a compassionate city, not just for people, but our furry friends, too! Wrapping up a $1.5 million renovation to enhance the Tri City Animal Shelter, we’re making it more customer friendly, including launching a new website And our Patrol Division is strengthening relationships with our community, and enhancing safety and security and quality of life issues We’re also employing innovative strategies to hire police personnel to recruit our next generation of officers and dispatchers I’m pleased to report that 20 new officers were hired in our Police Department for the current fiscal year Over in the Fire Department, they’re focused on recruitment strategies to hire under-represented groups and those economically disadvantaged, making the rounds to various career expos Eager to spark young women’s interest in fire service, the Department opened its training center doors to NorCal Women in the Fire Service for its inaugural NorCal First Alarm Girls Fire Camp last fall Being prepared for a disaster is crucial We’re excited by the increase in attendance for our CERT and PEP classes, where residents practice for various scenarios like earthquakes Last October was the 150th anniversary of the Great Quake on the Hayward Fault and 29th anniversary of the Loma Prieta We co-sponsored community activities in Central Park with local nonprofit Math Science Nucleus and US-GS, and debuted a series of Earthquake Walk signs installed throughout our parks With the recent floods and wildfires across California on our minds, preparation and communication are key I urge the community to please sign up for AC Alert, Fremont’s mass notification system to receive emergency and non-emergency notifications Now let’s move on to the growth in the national and regional economies, which has slowed over the last two quarters, yet remains robust with a continuing strong labor market and relatively high consumer confidence Looking at our local economy, the city’s sales tax revenue has benefited from a spike in new auto sales and online retail activity, which have led to a projected General Fund ending fund balance However, we recognize that as time passes, the current economic expansion may slow With this in mind, the city is planning to increase its reserves over the next few years As we plan, we encourage our community to get involved Mark your calendar for the upcoming budget hearings The city’s proposed operating and capital improvement budget for the next fiscal year will be presented to the Council on May 21st Kicking off next month is the US Census, the main way Fremont receives its fair share of government funding for critical needs like highways, schools, health facilities, and many more community programs Get engaged now Census forms will be hitting mailboxes in April Make sure your voice is heard and you’re counted Throughout this year and beyond, the City of Fremont has made concentrated efforts to listen to our residents, businesses, and employees to make us responsible for the most resources entrusted to us We recognize the importance and impact that each of the people and organizations we serve has on our great city We acknowledge that everyone counts and belongs in our community Today’s presentation was made possible through the support of our employees who serve the community each and every day A round of applause, please, for all of them (applause) I’d also like to thank our communications team, Cheryl, Gretchen, Walter, and George, for their help today (applause) Just as koi fish persevere and symbolize ambition and good fortune, I believe they also characterize the spirit of Fremont as we push forward into 2019 to further invigorate our economy

and pursue balanced, healthy growth Thank you for coming today (applause) (light music)

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