The ability of the City of San José to nurture and sustain a healthy community and a growing economy depends on our ability to build on our successes. We must continue to change, as we seek new ways to raise the quality of our services, and challenge ourselves to set and meet high standards. With this budget document that we as a Council have developed, working with the Administration and the Redevelopment Agency Director over the last several months, I believe we are on a good path.

This budget outlines how we will continue to make smart, strategic investments that will improve city services - particularly in our neighborhoods where we are continuing to make substantial investments to improve quality of life - and manage our resources more effectively and efficiently. Our efforts will further establish San Jose as a model city and America’s best city in the 21st century, and they will strengthen our community where all our residents take great pride in living and working in San Jose.

I recommend that the City Council approve the direction to Council Appointees contained in this memorandum for purposes of adopting a final budget for Fiscal Year 00/01. I also recommend that the changes in these MBAs be authorized to be incorporated in the Adopted Budget, except to the extent any are superseded by the contents of this message:

• 1. Proposed Operating Budget Correction Pages -- Revised Source & Uses
• 2. Parks Project Delivery (staffing)
• 14. Santa Teresa Blvd. Median Island Landscaping (change in projects)
• 16. Revisions to Budget Policies & Practices
• 24. WIA Transition Report (staffing and funding for full program)
• 25. Community Based Organization Funding
• 34. ESD Fleet Consolidation (staffing and funding for transfer)
• 50. Mexican Heritage Corporation
• 51. Operating Budget Rebudgets/clean-ups
• 52. Capital Budget Rebudgets/clean-ups
• 53. CDBG Supplemental Appropriations
• 54. Actions creating a budget for the 9-hole Golf Course.

In accordance with Section 1204 of the San José City Charter, I present my FY 00/01 Operating Budget Message for consideration by the City Council and the public.

After the completion of last year’s budget process my office solicited Councilmember input on the budget process. Based upon that input I proposed a budget calendar which: lengthened the amount of time Councilmembers had to review the proposed budget prior to Study Sessions beginning, increased the amount of time available for Study Sessions and lengthened the amount of time Councilmembers had to submit budget recommendations.

This budget message reflects many of the ideas and suggestions provided by Councilmembers during the past month, both from the series of study sessions we held on the budgets proposed by the Administration and the Redevelopment Agency, and from the broad range of specific proposals submitted by Councilmembers for consideration.

Because requests from Councilmembers exceeded $50 million it was necessary to make tough decisions amongst many good recommendations. My goal in this message is to make strategic investments in our neighborhoods and public services that will provide long-term benefits to the community and improve our organizational abilities to provide high quality service. At the same time, my goal is to ensure that we can continue to manage our resources responsibly, live within our means, focus on our strengths and our principal mission as a city, and ensure balanced budgets over the long term.

We are fortunate to be living in good economic times, but even during good times, there are never enough resources to address all of the good ideas and all the community needs that come forward. For this reason, we as a City Council must continue to make choices that can balance between the present and the future, and between competing demands for services and resources, to achieve the best long-term results for the people who live and work in our community.

The January budget forecast projected a surplus of $8 million in the first year of the five-year budget, followed by projected budget deficits in the remaining four years. One structural reason for projected deficits in the later years of the five-year budget is the City’s budget model. The forecasting model assumes the Council will spend any budget surplus for ongoing expenditures and services.

I propose that we adopt a Council policy that would discourage this type of expenditure and provide a mechanism to ensure we would not have deficits in coming years. I describe this policy approach in more detail below in Section 7. This action would help us maintain long-term balanced budgets, prevent future deficits, provide for more accurate financial planning, and put us another step closer to achieving long-term fiscal stability. Through these continued efforts, the City's fiscal condition will continue to become stable, predictable and sufficient to ensure the delivery of high quality City services for the next generations of San Jose residents.

Through the "Investing in Results" process this year, the Administration identified seven priority policy areas that cover all City core services. At its study session on February 28, 2000, the City Council confirmed these policy areas and provided guidance about how we measure success. This Council direction combined with the priorities discussed by the Council at numerous budget study sessions and input we received at a public hearing, provided guidance for this message.

The following budget message is divided into the ten sections, with the first seven covering the priority policy areas identified by the City Council, and the other three covering procedural or financial system issues:

Priority Policy Areas


• Neighborhood Pride
• Safe Community
• Safe and Efficient Transportation Choices
• Competitive Business Environment
• Clean and Sustainable Environment
• Personal Growth and Enrichment
• Customer-Driven Government


Procedural Direction


• Reduction/Redeployment/Rebudget Proposals
• Revised/New Performance Measures
• Reports Required

At a study session in January, the Agency Board reviewed the four core service areas for the Redevelopment Agency. This was done in parallel with the discussion for City services, and it should be considered integral and supportive of the City’s overall policy priority areas.

The four Redevelopment Agency priority policy areas that have been integrated into the discussion of the City’s priority policy areas are:

• Promote and Implement Neighborhood Improvement Strategies
• Initiate and Facilitate Public Facilities and Spaces
• Enhance the Quality and Supply of the City’s Housing Stock
• Initiate and Facilitate Private Development

After reviewing past spending practices, the Agency Board confirmed my previous recommendation to shift the focus of our redevelopment resources to strengthening our neighborhoods. The Board indicated its desire to have the first three areas receive roughly equal amounts of resources and the fourth receive a lower level of funding. The Executive Director has proposed a budget that begins shifting our resource s in this direction. I strongly recommend that the Agency Board support an aggressive plan to add another $100 million to be spent on neighborhood improvements over the next five years, in addition to the $90 million that is already identified in the proposed Redevelopment Agency budget.

Over the history of the Redevelopment Agency, approximately 2 percent of its investment has occurred in San Jose neighborhoods. With the increased emphasis on neighborhood investment that I am recommending, we will raise the level of spending to improve quality of life for residents and businesses in our neighborhoods to 23 percent of the Agency budget. In combination with the City Council’s ongoing and growing commitment to our neighborhoods through the Strong Neighborhood Initiative, these new priorities allow us to look forward to substantial material and measurable progress throughout our community for residents where they live. We are committed to continuing our investments in the appearance, safety, and quality of neighborhood parks, streets, libraries, and other public facilities and services that contribute to the quality of life of our residents.

• Neighborhood Pride:
  Investing in services that contribute to neighborhoods where residents feel safe, proud and a have sense of belonging.


Neighborhood Investment Fund

Building on last year’s investments, I proposed in March that the Administration set aside $6 million in the budget for projects through the Strong Neighborhoods Fund. During the budget process, I asked Councilmembers to propose one-time capital investments in their districts that will improve safety, quality of life, or create a better sense of pride in our neighborhood communities. Many of the following recommended expenditures would use the funds allocated for strong neighborhoods.

Ending Fund Balance and Unanticipated State Fund expenditures

In this document, I am recommending a Council policy that would commit the first increment of the City’s annual ending fund balance (EFB) to ensure a balanced budget for the following fiscal year. In addition, at this stage of the state budget deliberations in the Legislature, it is impossible to forecast whether or how much the state will restore the City funds lost through the state’s ERAF shift of local property tax revenues in the past decade.

I recommend that our first priority will be to reserve adequate funds from the ending fund balance and potential revenue from the state to prevent the projected deficit in the following year. This policy along with continuing fiscal restraint will lead to a five-year economic forecast for the City which projects a balanced budget or budget surplus for each of the forecast years. Funds remaining after this allocation then could be used for one-time projects that are not recommended for funding through the General Fund, Redevelopment Agency, or other specific sources.

Attachment A lists the priority and detail of expenditures for my recommendations related to use of remaining state ERAF restoration funds and the ending fund balance as noted above. In addition, the following project categories should be considered for these remaining funds:

• Street reconstruction projects.
• Traffic calming projects.
• Renovations of historic homes located in City parks.
• Expanded curb and gutter program.
• Accelerated implementation of our Safe School Initiative to additional middle schools. (The Administration’s proposed budget includes full funding for staff from Police, but only enough Parks, Recreation and Neighborhood Services staff to serve 13 schools. This staffing level was based upon the number of schools that initially submitted applications before release of the proposed budget. Since then, more schools have applied. We should expand this program as quickly as possible to all middle schools that are interested.)
• Expansion of our Library’s "E-Branch" program. The E-Branch program has training facilities at only three branches. I recommend that we develop a pilot program to provide training to school librarians so that they could train students on the use of the E-branch system.
• Library book acquisition to increase the total number of books we have available to our residents.

If unanticipated funds from the State have designated funding categories and do not provide for local determination of expenditure then the Administration is directed to utilize those funds to fund items designated for General Funds herein. This would provide the maximum flexibility within the priorities of the City Council.

Proposition 12 funds

I have also made several recommendations for projects to be funded with resources available from the state as a result of the approval of Propositions 12 by California voters this year. Attachment B lists my recommended priority for expenditures using these funds, as they become available.

Clean and Well-managed Parks, Libraries, and Community Centers

Clean and well-managed parks, libraries, and community centers are essential to ensuring the quality of San Jose neighborhoods that our residents are proud to live in. It is a vital responsibility of the City to make sure our public facilities are the best they can be. A number of very good suggestions have come from Councilmembers related to improvements to our facilities. As is always the case, however, we do not have all the resources that would allow us to complete every project that may be desired by our community.

With the constraint of resources in mind, therefore, I recommend the following projects be included in our budget to improve facilities and programs that make San Jose a special place. In several instances, I am recommending funding for facilities at schools. The Administration is directed to ensure that there are appropriate joint-use agreements in all instances of City funding improvements on schoolgrounds.

• Pellier Park Renovation. Located at the Julian Street exit from Highway 87, this park is a gateway to downtown San Jose. Its renovation, will improve the visibility and appearance of the park for San Jose residents and visitors, and restore it as an interesting place of pride for its historical significance to community. (BD #13 -$350,000 RDA)
• Davis School Track Repairs and Upgrades. This project will enhance the quality of year-round recreational activities and events for more than 850 students at the school, as well as for student, youth, and community organizations, teams, and leagues that use the facilities. (BD #44 - $30,000)
• Southside Community Center Playground Equipment Replacement. Replacement of the existing deteriorating equipment will bring the center’s tot lot into compliance with requirements of the Americans with Disabilities Act (ADA), improve safety and appearance for children’s use, and meet City standards and requirements. (BD #45 - $225,000)
• Bernal and Anderson Baseball Field Improvements. Funding for this facility will support the recent expansion of youth baseball leagues at this site to include seventeen- and eighteen- year-old youths and inter-league activities. This expansion affects 29 teams and more than 500 young people now served by the league. In addition, the improvements will support Oak Ridge Little League’s efforts to provide low-cost organized recreational activities to the community. They will also benefit the children at schools where the fields are located, as well as the community that uses them when organized and programmed activities are not taking place. (BD # 26 - $22,000)
• Roosevelt Park Master Plan. The Roosevelt Park Master Plan issued in 1994 addresses the future needs for the park and the community it serves. I recommend funding to begin the next phase in the redevelopment of Roosevelt Park in the amount of $500,000 that will implement the Roosevelt Park Master Plan. The Redevelopment Agency and Councilmember Chavez should work with the community to determine the priority of expenditures of these funds within the context of approved Master Plan projects. (BD # 25 -$500,000 RDA)
• St. James Park. Although one of San Jose’s most historic and potentially grand parks, St. James remains underutilized, and many residents do not feel safe there. Updating and implementing the St. James Park Master Plan will lead to the improvement of the safety and appearance of the park and to greater public use, and it will reduce blight in the neighborhood. Pending a finding of primary benefit by the Agency Board, I recommend $1 million be allocated to begin improvements to this park and that Councilmember Chavez work with the community to determine the priority of expenditures of these funds within the context of approved Master Plan projects (BD # 26 -$1,000,000 RDA)
• Fischer Middle School Blacktop Replacement. This school serves as a vital gathering point for the Hillview and Dorsa community. Because Fischer does not have a gymnasium for indoor or neighborhood use, the blacktop area is the primary facility for neighborhood recreation activities, physical education, and after-school sports. These funds are needed to replace the blacktop surface entirely, which is currently in such disrepair that a focused replacement effort is required. I recommend that the City participate in a joint project with Alum Rock Union School District whereby the district will provide matching funds of at least $300,000. (contingent upon matching funds from the School District as outlined in BD # 42 - $300,000)
• Lyndale Community Recreational Facilities. Because there is a lack of suitable facilities in this neighborhood, the Lyndale Neighborhood Association should continue its efforts to identify a potential site for them. Councilmember Diaz recommended allocating Park Impact Fees through the Parks Trust Fund (Fund #375) for such purposes. In June 1999, the City Council approved a high-density housing development proposed by ROEM Development Corporation, and there are other proposed or approved housing projects in the vicinity. The Administration is directed to work with the City Attorney’s Office to determine if Park Impact Fees from these nearby housing projects for the acquisition and development of a community facility in this neighborhood is legal. Funding for this project would be limited to Park Impact Fees where legal unless additional District 5 Construction and Conveyance funds are appropriated. (BD #84 District 5 PTF)
• "Play for All" Playground on Curtner Avenue. This playground, adjacent to the Willows Senior Community Center, will be designed to serve the needs of our disabled community. The estimated total cost is $650,000, and Vice Mayor Fiscalini has budgeted $450,000 from the District 6 parks fund toward this project. Because this facility will become a citywide amenity, I recommend an additional $200,000 be appropriated to complete funding for this project. (BD # 84 - $200,000)
• South Central Swim Center. This community swim center will serve children and adults within their own neighborhood. Project will cost an estimated $5 million. The funding plan includes $2.8 million from the sale of the Children’s Shelter property; $300,000 from the Park Trust Fund reserves; $700,000 in PTF fees (from development of the Shelter site); and $600,000 from District 7’s Construction and Conveyance fund. This leaves a shortfall of $600,000. I recommend $600,000 from the Neighborhood Investment Fund for this project. (BD # 12 - $600,000 includes $476,000 in funds from miscellaneous surplus property sales.)
• Doerr Park Restroom Renovations. The ceilings and interiors of the restrooms in the Doerr Park need comprehensive repairs and upgrades. Although the building structures are still in relatively usable conditions, immediate restoration is required to maintain public health standards and to avoid further deterioration. I recommend $200,000 to renovate the restroom interiors, preserving the murals painted by the community on the exterior walls. (BD #36 - $200,000)
• Houge Park Tot/Youth Lot Renovations. The Houge Park Neighborhood Association has identified the tot and youth lots in the park as a high priority for refurbishing. I recommend a total of $250,000 to upgrade the playground equipment in both lots, renovate their play surfaces, address drainage issues, and provide upgrades to comply with ADA. (BD #36 - $250,000)
• Lone Hill Park Tot/Youth Lot and Restroom Renovations. The restrooms in the Lone Hill Park require complete replacement. City staff also has found that the existing tot and youth lots at this park need refurbishing and upgrades. This proposal requests a total of $250,000 to upgrade the playground equipment in both lots, renovate their play surfaces, address drainage issues, and provide upgrades for ADA. (BD # 36 - $400,000)
• Camden Lifetime Activity Center. This well-used facility provides year-round health, fitness, sports, and social activities for residents of all ages. I recommend the following improvements: I would recommend the use of Proposition 12 funds for the construction of these projects and $100,000 from the General Fund to cover any engineering and/or bid preparation costs needed this coming fiscal year.
• Rehabilitation of the second wing. I recommend the priority allocation of Proposition 12 funds for this project to accommodate the growing needs of the community. All the buildings other than the second wing have already been rehabilitated to make them useable. (BD # 33 - $934,500 Proposition 12 funds)
• Camden Teen Center. This facility provides a safe meeting place for San José youths from age 12 to 19. Most activities are free or at very low cost to San José residents. Growth in service demands now exceeds the capacity of current facility, and part of the Teen Center needs repair and renovation. I recommend the priority allocation of Proposition 12 funds of $232,500 to renovate classrooms at the Teen Center and convert the adjacent Room 113 to serve growing neighborhood demand for meeting facilities. (BD #34 -$232,500 Prop 12 funds)
• Parking. City staff recently determined that project modifications now require $30,000 more than the original estimate of $325,000, including the addition of 50 to 60 vehicle spaces in the turf area behind the gym. The addition of 30 to 40 vehicle spaces in the front lot along the Union Avenue were recommended by the Camden Center Master Plan, but have remained unfunded since 1997. Engineering and construction of both parking lots simultaneously will enhance operational efficiency and reduce overall project costs compared to doing them separately. ($305,000 Proposition 12 funds)
• New scoreboard and shot clock in the gym. This includes removal and replacement of the old scoreboard, replacement of side baskets with glass backboards and breakaway nets, addition of new strap assemblies for backboards, and the rewiring of all backboards. (BD #37 & 38 - $338,000 Proposition 12 funds)
• Almaden Winery Park. When the Almaden Winery Neighborhood was developed, there were only enough funds available in the turnkey park agreement to develop a small portion of the park for community use. The park currently has large unfinished sections remaining from the winery that originally occupied this location thirty years ago. Broken and unused asphalt pads and unfinished walkways detract from the natural beauty of this park. The requested funds would be used to correct these conditions and upgrade the appearance for the surrounding neighborhood. (BD # 98 - $185,000)
• San Jose Conservation Corps. This program has trained more than 5,000 young men and women since it was established in 1987. The current $6,000 allocation per Council district for maintenance and landscape services has helped provide job training and cost-effective fee-for-service conservation work in neighborhood parks and open space. The Corps has helped at-risk youth become responsible adults through education and work programs. The proposed budget increase is the first in 13 years, and it is an investment both in our young people and in our neighborhood open space. I recommend that the budget for the San Jose Conservation Corps be increased from $6,000 to $12,000 to provide for landscape maintenance services for citywide parks and creeks. (BD #64 - $60,000 citywide park C&C fund)
• Almaden Valley Parks. Old and deteriorating youth and tot lots in this neighborhood have generated numerous resident complaints about the condition and safety of playgrounds. Funds would be used to upgrade the tot and youth lots to current standards for safety and ADA accessibility requirements at Thousand Oaks, Playa Del Rey, Cahalan, Almaden Meadows, and Graystone Parks. (BD #99 - $656,000)
• Leyva/Meadowfair Center. A new facility would serve youth, adults, and seniors in these two neighborhoods with programs that may include ESL and citizenship classes, youth enrichment and mentoring programs, and computer labs. The RDA’s five-year Capital Improvement Plan has identified this as an area for the City’s Strong Neighborhoods Initiative. The two neighborhood groups in this area have already asked that a community/youth center project be included as neighborhood priorities are established, which would be in alignment with the San Jose Schools/City Collaborative. The development of a community facility should be referred to the community process once the Strong Neighborhood/RDA project area is fully established.
• Parks Capital Improvement Plan. For the preparation of next year’s Parks Capital Improvement Plan, the Administration is directed to display anticipated turnkey projects in the five-year CIP.
• Mount Pleasant High School Athletic Field Improvements. By providing matching funds and becoming partners with the East Side Union High School District for the development of an athletic field for the school and the community, the City will be assisting the surrounding schools and neighborhoods in the Mount Pleasant area. The total cost for the project is $1,841,324. The school district will commit to matching the City’s investment for this project. I recommend matching City funds up to, $920,662 depending on the final resolution of the ending fund balance and the state budget. The inclusion of lights in this project should be contingent upon a community outreach process to determine impacts and receive support from neighbors. (contingent upon matching funds from the School District as outlined in BD #47 - $920,662 EFB/S funds)

Sidewalks, Streets, Trails and Street Lights and Trees


• Completion of Saratoga Trail from Murdock Park to Prospect Road. This will provide an off-street route for pedestrians to use to the terminus of the San Tomas/Saratoga Creek Trail. This section is planned as a soft-surface, pedestrian-only segment for neighbors and trail users. There is funding in the current budget for the trail section between Murdock Park and Bollinger Road. Completing the trail from Murdock Park to Prospect Road will complete the San Jose portion of the trail. (BD #67 - $400,000 Proposition 12 funds)
• Saratoga Avenue Median Island. The El Paseo Shopping Center renovation included a 250-foot concrete island on Saratoga Avenue makes the area look barren. The median island is too narrow to support landscaping and provide sufficient clearance for vehicles, but a cobblestone treatment will improve the island's appearance at modest cost. (BD #58 -$20,000)
• Urban Trails Program. The development of an urban trails program would tie residential and commercial centers to other community resources with well-marked paths with sidewalk treatments, plaques or decorative inserts, greater sidewalk widths, and additional street trees. I recommend that such a program be referred to the Greater Downtown Strategy Task Force for consideration in its recommendations to the Agency Board.
• Spraying and Removal Tulip Trees. Diseased tulip trees drip a very sticky sap onto the pavement and vehicles, and it is necessary to spray the diseased trees and remove all the tulip trees to prevent this problem from arising in the future. The spraying and removal of the 500 tulip trees in District Four would require $152,500. (BD #32 - $152,000)
• Chinese Elm Maintenance in the Tropicana Neighborhood. These trees are extremely fast growing and require high maintenance to prevent obstruction of motorists’ views and the blockage of streetlights in order to maintain neighborhood safety. I recommend that 157 high-maintenance trees be replaced with low-maintenance ones. (BD # 31 – $125,600)
• Streetlights for Tropicana and Rosemary Garden Neighborhoods. In these two neighborhoods, there is a need to bring street lighting up to current City standards. DPW has already surveyed the Tropicana area and proposed adding 125 streetlights costing $580,000. I recommend $400,000 to be divided evenly between these two neighborhoods to add approximately 40 streetlights each that will be a significant step toward reaching community standards. (BD #39 - $400,000)
• Relandscaping of the East Side of White Road between Norwood and Quimby. This park strip was planted many years ago with eucalyptus trees. Landscape improvements will include removal of the existing large eucalyptus trees, replacement with Raywood ash trees, installation of a complete irrigation system, and planting of vines on sound walls. This proposal would fund the renovation of the existing landscaping and provide a safer street for both automobile and pedestrian travel. (BD # 74 - $150,000)
• Support for "Our City Forest" Tree Planting Program. This community organization provides tree planting and related services to our neighborhoods throughout the city. Our City Forest's combination of expertise and volunteer-based strategies for planting and stewardship results in significant community benefits with modest investments. Our City Forest programs planned for San Jose next year include planting 1,200 shade trees in central and north San Jose, planting 600 street trees throughout San Jose, special pruning and maintenance for 700 street trees, and the care and maintenance of trees at 25 schools. In addition, the City of San Jose is providing 1,200 trees so that Our City Forest can to build on the Mayor’s "2000 Trees for the Millennium" project. (BD # 66 - $65,000)


Anti-Graffiti

Since my challenge to the City a year ago to reduce graffiti vandalism throughout the community by half, our staff and community volunteers have responded with great success. Although we have made significant progress, graffiti remains a serious issue for many of our neighborhoods. For this reason, I am again challenging our staff, this time to reduce the number of graffiti tags by half again, with the target of bringing the amount down to only 25 percent of what we faced at the start of last year. To accomplish this goal, more resources will be needed.

• Expansion of anti-graffiti program. With additional resources, more than 60,000 additional tags and over 1.1 million more square feet of graffiti can be removed from walls and buildings throughout San Jose. My goal is that 25 percent fewer tags will be recorded when the annual graffiti survey is made after a full year of the program’s expansion, compared to initial conditions. This proposal includes $78,000 in one-time funds for an additional spray rig, $101,600 in on-going funds for two Maintenance Worker II’s, $38,500 in on-going funds for a Community Action Worker assigned to the Graffiti Enforcement Team, and $25,000 in on-going funds for paint and materials. The total cost for this program expansion is $243,100. (BD #40 - $243,100)
• Painting of Union Pacific Railroad Bridges. I recommend $35,000 in one-time funds for a pilot program to test anti-graffiti coatings that will be cost-effective and provide an effective deterrence. The results of this effort should lead to improvements in the appearance of the UP bridges and reduce anti-graffiti maintenance. ($35,000)
• Supplies for Adopt-A-Block Volunteers. I recommend $25,000 in ongoing funds be included to support more anti-graffiti volunteers. My goal is to maintain a level of more than a 1,000 Adopt-A-Block volunteers by the end of the year who receive training, free paint, and related supplies. Start-up costs per volunteer is about $20 for supplies and support, and the program enrolls about 900 new volunteers annually. Our goal should be to increase this by 500 more volunteers per year. ($25,000)
• Restoration and Relocation of the Liberty Bell from St. James Park. The bell has been the victim of vandalism in its current location, and placing it at a new site will deter the further abuse of this City landmark and allow it to be prominently displayed. Refer to the Arts Commission for recommendation on whether Liberty Bell should be returned to Plaza de Cesar Chavez or some other appropriate location on a major downtown street. (BD#29 - $50,000 RDA funds)


Community-Based Organizations

Community-based organizations (CBOs) are vital partners to help the City provide a full range of its core services. Last year, the City Council directed the Administration to work with CBOs that had become reliant upon annual allocations of one-time funds for program funding. This year was to be the final phase out of this type of one-time funding used for ongoing operational programs of CBOs. During this process, 15 CBOs have been added to the City’s base budget in various departments. This year, during phase-in review, there were several CBOs that the Administration recommended be evaluated in the coming year. While it is clear that these organizations provide core services for the City, their funding levels were proposed to be cut to 50 percent of previous allocations.

I recommend that these organizations be fully funded during the year of base review. The organizations recommended for funding above the level recommended by the Administration are:

• Respite, Research for Alzheimer's Disease ($9,000)
• YMCA of Santa Clara Valley - East Valley Branch ($34,000)
• Guadalupe River Park & Gardens Corporation($37,500)
• Joint Venture Silicon Valley ($25,000)
• Center for Training and Careers, Inc. ($50,000)
• Our City Forest ($65,000).

Tobacco Settlement Funds

I recommend the Council reaffirm the fund distribution percentages that it approved in March. The proposal adopted by Council at that time would allocate 50 percent of the fund to education projects and programs; 25 percent to anti-tobacco efforts; and 25 percent to senior programs. I further recommend that we designate health care as an allowable expenditure under all three categories.

Although there has been much recent discussion of one health- related proposal as it might relate to the City’s tobacco settlement funds, I believe there are a number of ways that we could consider appropriate health-related projects and services that would be consistent with the mission of the City. Among these possibilities could include projects such as establishing student and community health clinics on school sites with community partners, asking the County or some other non profit entity to provide insurance for uninsured children, or leveraging our neighborhood investments with collaborative health-related projects.

Any allocation of tobacco settlement funds should be decided through a competitive process so we can have the largest impact possible with these funds. I recommend that even the programs included in the proposed budget for use of tobacco settlement funds (Smart Start Centers and Homework Center Expansion) should go through this competitive process for funding in future years.

I recommend that the Council use the next several months to receive public input on criteria and funding priorities for this fund. I also recommend that the Council schedule at least two evening and two Saturday public hearings or community workshops to review pertinent information related to this subject. The Administration is directed to work with the Mayor’s Office to develop dates and agendas for these sessions.

I recommend that an advisory body be formed to review applications and make recommendations to the Council annually for the expenditure of these funds similar to the Community Development Block Grant committee. I would suggest that this advisory body be made up of three Councilmembers and four members of the community. To insure impartiality in the committee’s deliberations and recommendation, the community members should not be affiliated with any organization or agency that could receive potential funding. I would recommend that this committee be impaneled after the Council has developed the funding criteria and priorities in the coming months. This committee would be appointed with the process of individual nominations by Councilmembers to the Mayor, full committee nomination by the Mayor and committee approval by the City Council.

• Safe Community: Investing in prevention, enforcement and emergency preparedness services that contribute to actual and perceived safety of the community.


Public Safety and Preparedness Investments

In the March budget message approved by Council, we directed staff to hire more officers, expand the safe schools campus initiative to include middle schools, and increase community policing and traffic enforcement. Our strong commitment to safe communities is shown by the proposed $5 million increase on spending in the Police Department that is included in the proposed budget.

• "Cyber Cadets." I recommend $50,000 to continue development of the Police Department’s interactive website that will include integration of the web-based school curriculum known as the "Cyber-Cadets." With these resources, the department will be able to modernize its website, provide an appropriate and interactive life-skills curriculum for school-aged children, and train staff to manage the website. ($50,000)
• Pilot Program on Early Defibrillation. Based upon Council direction in March, funding is included in the proposed budget to implement a pilot program on early defibrillation. Equipment and training for Automatic Emergency Defibrillators (AEDs) that will be located at City facilities, such as community/senior centers and performance spaces, are included in this program. Training will be provided to City staff and residents, so that they can administer CPR and defibrillation to enhance the survival rate of people in need of immediate medical attention. As staff develops the proposed pilot program, the Administration is directed to coordinate these service enhancements with the Fire Department’s Master Plan and include the Community Policing Centers as possible sites to place AEDs.
• Career Criminal Apprehension Program. I recommend $50,000 for the purchase of equipment needed by the Career Criminal Apprehension Program that will improve the capability of police to track and arrest violent felons, as well as enhance officer safety. ($50,000)
• Air Conditioning for Fire Stations. The Fire Chief has indicated that on an interim basis the department could install wall air-conditioning units in the fire stations that need it (Stations, 2, 3, 5, 10, 14 and 16). It is calculated that a permanent solution will cost approximately $1.3 million. I recommend we invest in a permanent solution now rather than ask our firefighters to have only temporary workplace conditions that vary from station to station. ($1.3 million in EFB/S funds)
• Emergency Medical Services/Ambulance Services. The Council has had numerous discussions about the new contract for EMS/ambulance services through the County and AMR. Recently the Council has been told that the changes being proposed will result in $1million in savings. Any savings that are actually experienced should be redeployed to improve response times in the Fire Department from the current eight-minute level-of-service goal to a lower time.
• Cupertino Community Services. This is the only agency that provides emergency assistance to the residents of West San Jose. CCS assists with basic human needs such as food, shelter, and clothing. Because this program is accessible to the homeless families in West San Jose, it is essential to continue funding it as a core service. I recommend this be funded to the extent possible with Department of Housing, JPA or CDBG funds. (BD #86 - $96,200)
• Fire Station 9 Improvements. When returning fire engines need to back up into this fire station located at the corner of Hillsdale Avenue and Ross Avenues, they block traffic on Ross Avenue, especially during commute hours. This proposal requests one-time funding to extend the rear parking lot of Station 9 so that fire engines may return to the station from Hillsdale Avenue. Because Station 9 is adjacent to the Cambrian Library, the proposed expansion of the fire station parking lot will require moving a fence into the library’s small west parking lot. This proposal, therefore, also includes one-time funding to expand the library parking lot. (BD #72 - $408,000)
• Fire Station 25 Improvements. I recommend that proposed exterior and interior improvements at Station 25 be referred to the Fire Facilities Master Plan that is currently being developed. All San Jose fire stations should be modernized and equipped in accordance with a long-term coordinated plan that uses resources effectively.
• School Walking Routes Project. Currently our School Walking Routes project has only one year of funding included in the five-year traffic Capital Improvement Plan. The Administration is directed to include multi-year funding for this project in next year’s CIP.
• San Jose B.E.S.T. Staffing. The Administration is directed to create a permanent FTE Senior Analyst position using San Jose B.E.S.T. program funds to support the implementation of the Mayor's Gang Prevention Task Force Strategic Directions Workplan Objectives. The San Jose B.E.S.T. program currently allocates $3,000,000 in its base budget, and it manages additional funds leveraged through grant development, one-time City allocations, and other funding sources. This position would maintain the accountability and quality of B.E.S.T. services as program responsibility and workload grow. This increase would allow the San Jose B.E.S.T. program to increase its ability to manage and implement a resource development program with the goal of leveraging an additional $3 million by year 2003. ($80,125 - SJ B.E.S.T.)


Concentrated Domestic Violence Program Expansion

San Jose is the safest large city in America because we are committed as a community to crime prevention, neighborhood improvement, economic and educational opportunity, and effective policing. Reducing domestic violence is a critical area for improving the security of all our residents, and it requires extensive community awareness, support and involvement to ensure that women, children and families are safe in their homes and workplaces. I have worked with Councilmember Woody over the past year to develop a comprehensive approach to prevent domestic violence, address the needs of its victims, and enlist the support of the community to continue and build on San Jose’s leadership to keep our city’s families safe.

• Domestic Violence Response Team. I recommend an additional $20,000 for a marketing campaign to support of services the Domestic Violence Response Team. ($20,000)
• "Walk to End Domestic Violence" Coordination and Marketing. The annual Walk challenges all elected and public officials in San José and throughout Santa Clara County to mobilize around the issue of preventing domestic violence. This year’s Walk will focus on involving "Men in the Movement" and on seeking support from state and federal officials. I recommend resources to help coordinate and publicize the event to Coorachieve greater public awareness. (BD # 78 - $5,000)
• "Domestic Violence Free Zone." Funds would be used to establish the City of San José as a "Domestic Violence Free Zone." The project will include signage near public schools, other public facilities, and on buses and light rail. The goal is to demonstrate that the City is committed to ending domestic violence through innovative and collaborative approaches and encourage victims to continue their lives in San Jose knowing that they have community and government support. (BD # 78 - $20,000)
• Neighborhood Immersion Project. This yearlong project will be modeled after the "Philadelphia: Let’s Stop Domestic Violence!" program, which is a project of the Family Violence Prevention Fund. The Domestic Violence Task Force will identify three neighborhoods and will work neighborhood representatives to develop local efforts. The total estimated cost is $150,000, and funds have also been requested from the City/County JPA. (BD # 78 - $75,000)
• "Men in the Movement." The crime of domestic violence will not cease until women, children and men in our community join together to take a stand that holds every batterer accountable and supports every survivor. This proposal will incorporate approaches from successful organizations in San Francisco and Atlanta, with a goal of identifying male leaders and role models from various professions and age groups to develop a community-wide strategy to end men’s violence against women and children. (BD # 78 $30,000)
• Shelter Services Funds for Seniors. These funds would be used for operational expenses and staff support for community organizations serving the special needs of elder-abuse victims. Last year, the City of San José allocated funds to conduct an Elder Abuse Outreach campaign in conduction with Adult Protective Services. As we reach out to seniors and public awareness of available services increases, the number of senior clients will grow. (BD # 78 - $30,000)
• Annual Domestic Violence Conference. The funds would be used to assist the Santa Clara County Domestic Violence Council to provide speakers on elder abuse for its annual conference that will be held in October this year. The City’s support of the conference helps our collaborative efforts to eradicate domestic violence. (BD # 78 - $5,000)
• Training for City Employees on Domestic and Workplace Violence. Since the City of San José is emerging as a leader in the fight against domestic violence, we should also set the standard with programs that prevent workplace violence. Our employees are trained to respond to disasters, and evacuations. They should also know how to prevent and respond to incidents of workplace violence. (BD # 78 - $30,000)
• HomeSafe Transitional Housing for Domestic Violence Survivors. The overall goal is to build 96 units of transitional housing at four sites in the Santa Clara County to provide safe housing for battered women and their children. At these sites, they can begin to rebuild their lives, achieve independence, and establish healthy lifestyles. The members of HomeSafe’s collaborative bring a powerful set of skills and experience to the project that will ensure its long-term efficiency and success. The first site in the City of Santa Clara is underway. Since San Jose is slated for the second and third sites, I recommend funds to support the second phase of the capital campaign. (BD #79 -Housing Department 20% funds predevelopment funds if allowed or RDA 80% funds if necessary - $90,000)


• Safe and Efficient Transportation Choices: Investing in infrastructure and services that contribute to a safe, convenient, economical and environmentally compatible intermodal transportation system



• Williams Road Sidewalk Installation. The installation of a sidewalk on the north and south sides of Williams Road, between Eden and Winchester Boulevard, is needed to improve safety for both pedestrians and traffic. Because of ponding during wet weather, pedestrians currently must walk around large puddles or walk in the street. The installation of a sidewalk walkway will allow pedestrians to use Williams Road to walk safely between their homes and shopping centers on Winchester Boulevard, and it will create a safer street for bicycles and for on-street parking. This project is fully supported by Eden Neighborhood Association. The estimated cost for full sidewalk and street improvements is $670,000. I would recommend partial funding to get the project underway in the coming fiscal year. (BD #59 - $335,000)
• Julian Street/McKee Street Overpass Pedestrian Safety. Julian Street/McKee Street is a major arterial with heavy, fast-moving traffic. Pedestrians, including children who must cross this bridge over Highway 101to reach Ann Darling Elementary School and San Jose High School, are currently segregated from this traffic only by a small curb. Railings are required to make this crossing safer and more pedestrian-friendly. (BD# 24 - 180,000)
• West San Carlos Street Median between Shasta and Dana. Recently the Redevelopment Agency completed the median improvements on West San Carlos Street, but the project didn't include a full median build-out between Shasta and Dana. The current median design has created a safety problem for neighborhood residents, businesses, and commuters. This proposal would fund the installation of new curb, landscape, and pavers, consistent with the rest of the median design that will result in a safer street. (BD #9 -$150,000 RDA funds)
• Almaden Road Sidewalk Improvement. The section of this street between Ironwood and Redbird is confusing for motorists, presents safety concerns for pedestrians, and is a blight for the neighborhood. I recommend that we reconfigure of the sidewalk by extending it to include a portion of the street that is currently vacant. These improvements will provide for a safer street and improve neighborhood appearance. (BD #53 - $50,000)
• Lewis Road near Monterey Road Drainage Improvements. The infrastructure on Lewis Road is such poor condition that motorists traveling during wet weather often must swerve into the opposite lane to avoid large pools of water that collect after rainfall. This has resulted in several near accidents with oncoming traffic. I recommend allocating $467,000 for improvements for better street drainage and traffic safety in this area. (BD #2 - $467,000)
• Cedro Street between Cas Drive and Buckeye Drive. The project includes the construction of pavement, curb, gutter, sidewalk, and street lighting and drainage improvements on the south side of Cedro Street between Cas Drive and Buckeye Drive. The Franklin-McKinley School District is willing to donate a portion of school property to accommodate the improvements that will allow students to safely use the sidewalk on their way to school and would improve the overall appearance in the neighborhood. (BD #5 - $175,000)
• Infrastructure Improvements on Holly Hill Avenue. Currently pedestrians, including school-age children, are forced to walk into the street as they walk to McLaughlin Avenue. This situation becomes more dangerous during wet weather. This project includes land acquisition, private property modifications, and construction of pavement, curb, gutter, and sidewalk to improve pedestrian safety. (BD #6 - $173,000)
• Improvements along Clemence Avenue. With the new McLaughlin Park completion in June, pedestrians and children need a sidewalk for walking to this park instead walking in the street. (BD #7 - $118,000)
• Streets Repairs in the Dorsa Neighborhood. Five streets in this neighborhood require focused repair to improve traffic and pedestrian safety and neighborhood appearance. These streets also serve two elementary schools in the area, and residents have been requesting repairs for several years. Repairs are scheduled in the spring of 2001 utilizing FY2000-2001 program funding. The Administration is directed to accelerate design and bid of this project to the extent possible, so that construction can occur prior to the coming winter. (BD #41)
• Traffic Signal at King & Barberry. This signal will make this area more pedestrian friendly for the residents of the Meadowfair and Leyva neighborhoods, and it will create a safe connection to the adjacent neighborhood. Currently, residents are crossing the street without any safety provision. (BD #77 - $170,000)
• Coleman Road Median Islands and Safety Improvements. To prevent crossover accidents along Coleman Road, the City constructed temporary asphalt curbs along the center of the roadway, leaving the street with an unfinished and unsightly appearance. Coleman Road also is the access route for large trucks going to the Guadalupe Landfill. This neighborhood has requested for many years that the City improve both the safety and the aesthetics of Coleman Road by installing landscaped median islands. This project will compliment median island landscaping completed by a private developer on Coleman Road between Almaden Expressway and Porto Alegre. (BD #102 - $500,000)
• Median Island Landscaping on Narvaez Avenue. This project will provide median island landscaping on Narvaez Avenue from Capitol Expressway to Naomi Court. Narvaez is the main entry for the neighborhood and allows residents direct access from the Capitol Expressway exit on Highway 87. Median work at this site should include design elements that slow down traffic and increase pedestrian safety at the intersection of Capitol and Narvaez. Median landscaping also will improve the appearance of the neighborhood at this key gateway. BD #103 - $165,000 in EFB/S funds)
• Street repairs on Colleen Drive. Colleen Drive needs widening of the roadway and installation of curb, gutter, sidewalk, wheelchair ramps, street lighting and drainage. At this location, the roadway narrows to a width less than two lanes, which requires that cars stop and wait for oncoming traffic to pass through. Pedestrians are forced to walk in the street because there are no sidewalks. Public Works staff estimates the total cost for right-of-way land acquisition and construction is $520,000. There is $25,000 in the current Traffic CIP Budget for this project. I recommend the $495,000 needed to complete this project be placed on the EFB/S list. (BD #106 - $495,000 in EFB/S funds)
• White Road Median Improvements. White Road is a major thoroughfare and highly visible, making landscaping this site a logical traffic improvement. Landscape improvements to this median island located between Martin and Tully would include trees of 15 gallon size, automatic bubbler irrigation system for the trees, gravel or decomposed granite surfacing except for cobble paving at traffic island nose ends. (BD #75 - $575,000 in EFB/S funds)


Calm Streets

I recommend that we reserve an additional $1.5 million to support several traffic calming requests from Councilmembers. This allocation would supplement $300,000 that will available after initial studies are completed. I further recommend that specific traffic calming requests be referred to the Administration to be brought back to Council after the studies have been completed. This would be similar to the funds we are reserving in the Agency budget for neighborhood improvements after individual neighborhood plans have been completed. The Administration should also include a public education campaign for traffic calming when these studies return to Council. ((BD # 55 and 61 - $1.5 million in EFB/S funds)

• Competitive Business Environment: Investing in infrastructure and services that contribute to business growth, job creation, housing, and a strong and diverse economic base.


Redevelopment Agency


• Improvement of the Storm Property. I recommend an adjustment in the Agency budget to bring the amount available for improvements to the Storm Property to $2 million. This includes any funds already expended to make improvements to the site. (BD #15 - RDA $2 million)
• Downtown Directional Signage. Millions of people visit downtown every year. To make it easier for visitors to find their downtown destinations, we should design and implement a system of directional signage that will work in conjunction with the Department of Streets and Traffic’s future "Smart Signage" for downtown parking. I recommend including $1.5 million in the Agency budget for this program. (BD #18 - $1.5 million RDA funds)
• Almaden Avenue Sidewalk Improvements. Last year, the Agency Board directed the Administration to create a master plan for sidewalk improvements in the downtown area with clear criteria for the timing, priority, and method of replacement for specific segments of streets. I recommend that sidewalk improvements along Almaden Avenue be deferred to Year Two of the CIP, until the Council approves this master plan, and then only if the master plan calls for these specific improvements in that year.


Downtown Events

The proposed Redevelopment Agency budget contains an increase in funding for the Downtown Association. According to the Executive Director, these additional funds are to defray one-time costs for the relocation of the Downtown Ice Rink and Farmers Market. It should be noted that this increase is a one-time augmentation and will not be included in the Downtown Association’s base budget.

Job Training

The City of San José’s partnership with the San José Conservation Corps’ Youth Build program is a unique opportunity to address needed affordable housing while preparing young people for lucrative careers. The City’s investment of $75,000 from BEST and $75,000 from the GF will be leveraged 100% by HUD funds for a Community Homebuilders’ Very Low Income (VLI) housing project, this summer. In addition to regular class work, at-risk high school men and women will receive on-site skill development in construction trades during the entire project. This is a valuable partnership that the City that the Housing/PRNS department should create stronger alliances with in the future. (BD #65 - $75,000)

• Clean and Sustainable Environment: Investing in practices and services that contribute to a clean community and the long-term viability of San Jose’s limited air, water and land resources.
  
  Open Space Acquisition

  Protecting our open space is critical to the quality of life of our residents. To accomplish this goal, the Council placed a "greenline" ballot measure on the November ballot asking voters to ratify the City’s greenline policies. To further protect our open space, I recommend that $3 million from Proposition 12 funds be set aside for the acquisition of open space easements inside the Greenbelt. The Administration is directed to work with the Open Space Authority and/or other potential partners to identify sites within the South Coyote Greenbelt and along Santa Teresa Ridge for conservation easements or acquisition. ($3 million - Proposition 12)

  Expansion of Recycling Programs

  Expanding our recycling programs to the hotel industry could have a large impact on waste diversion. The Administration is directed to work with the Convention and Visitors Bureau to develop a recycling program with hotels.

• Personal Growth and Enrichment: Investing in facilities and services that contribute to education, culturally diverse multi-generational opportunities for life-long learning, leisure, cultural and artistic experiences.


The Arts


• Center for Performing Arts. I recommend including $2.5 million (the current estimate) in the Redevelopment Agency budget for the addition of a middle aisle and modification or replacement of the existing acoustic shell at the CPA. The middle aisle will improve both audience comfort and safety in case of an emergency. The existing acoustic shell restricts full use of the stage, which limits our ability to bring high quality national touring companies to San Jose. The current shell cannot be removed easily for these performances, but a modified shell or a modular replacement will provide greater flexibility for programming for the benefit of San Jose audiences. Staff need to work with the various users of the facility to optimize the benefits and reduce the impacts this project may have. (RDA $2.5 million)
• Red Ladder Theatre Company. This company associated with the San Jose Repertory Theatre, works with young people in San Jose neighborhoods and schools. Now in its sixth year, this program is in high demand from social service agencies and schools to expand performing arts and learning opportunities for students. A special portable stage set is needed to withstand frequent travel and rugged use by workshop participants. I recommend funding in the amount of $15,000 for purchase of equipment that would be owned by the City and would be available to other community and performing groups when not needed by Red Ladder. Staff should continue to develop performance measures for this and other art education programs, which receive City funds. (BD #4 - $15,000) Red Ladder and Horace Mann Elementary are expanding an existing pilot program designed to improve reading skills and enhance language development to include 300 students next academic year. The total program cost will be approximately $45,000. Developing evaluation tools to measure success will be a critical step to securing private funding. So that evaluation tools can be developed prior to September in collaboration with the school and the district, I recommend a one-time expenditure not to exceed $10,500 for 70 hours of evaluation consultant work. Work with the Mayor’s Education Policy Director to further develop evaluation tools and program criteria.
• Afribbean 2000 Music & Cultural Festival. I recommend one time funding in the amount of $20,000 for this event. The event draws more than 50,000 attendees over two days of free cultural education and entertainment. Local organizations such as San Jose Public Library, Children’s Discovery Museum, and The Tech Museum participate in Afribbean, and it also generates business for local hotels, stores and restaurants. (BD #80 - $20,000)
Youth, Seniors and Community Centers
• East San Jose YMCA. The YMCA provides educational, sports and life skills programs to the East San Jose community it serves. During the school year more than 3,000 youths participate in YMCA programs, and each summer 250 youths attend the day camp program. The YMCA is a valuable partner with the Mayfair Community Center, and it cosponsors special events such as Healthy Kids Day and Career Day. Funding the YMCA with the additional $34,000 is essential to continue to build strong kids, strong leaders and a strong community in the Mayfair neighborhood. (BD # 83 - $34,000)
• Hoover School Community Center. In collaboration with the San Jose Unified School District, the City was able to save the Old Hoover School, which is a designated City Landmark. As part of this partnership, the City will obtain a four-classroom satellite community center in the west wing of the building. The total budget for the retrofit and structural upgrades of the west wing is $1,162,174 million. District 6 has allocated $500,000 from District 6 Parks Fund toward these improvements. Additional funds will fund the kitchen, bathrooms, offices, and air conditioning of the center. (BD #54 - 200,000)
• Youth Fitness Facility at PAL Stadium. The Police Athletic League (PAL) is proposing to build a gymnasium that would provide a safe place for neighborhood youth to train in boxing, tae kwon do, weight lifting, and physical fitness. Last year, Council allocated $300,000 for this project. This request was based on a very preliminary estimate by the PAL Board of Directors. Since then, an architect has developed a thorough estimate for this project, and an additional $339,000 is needed. I recommend fully funding this need. (BD #3 - $339,000)
• Expansion of "Off Track Program" at the Shirakawa Center. This program currently serves elementary school children with only two to four week summer day camp sessions, and does not offer extended hours between 2:30 p.m. and 6:00 p.m. I recommend that the program be expanded to a yearlong basis in order to provide optimum and consistent service to the community. An additional 1.0 FTE Recreational Leader will make this expansion of the "Off Track" Program possible. (BD #10 - $31,700)
• Nutrition Program at the Iola Williams Center. This service has been expanded from four to five days a week. By expanding this effort, seniors served in the nutrition program will be able remain at the center after lunch to participate in workshops, classes, and recreational activities. I would recommend this program expansion. (BD #11 - $18,200)
• Senior Transportation. The Aging Services Master Plan identifies transportation as an urgent need, especially for mobility-limited elders who are unable to participate in recreation and socialization services provided primarily by City and non-profit senior centers. Some seniors are not eligible for Outreach transportation services due to income requirements and therefore cannot take advantage of services for seniors. The expansion of vans serving senior centers will extend the availability of essential services to isolated seniors. I recommend funding for the purchase a total of four passenger vans for our four senior centers that currently do not have any. I further recommend that this addition be eligible for tobacco settlement fund if approved through the competitive process next year. (BD #76 - $315,112)
• Hoffman/Via Monte Neighborhood/Project Crackdown Maintenance Youth Center. Due the displacement of the current youth program in this neighborhood, it is essential to locate a facility to continue critical youth services. There are City, Santa Clara Valley Water District, and San Jose Unified School District sites available for the placement of a modular building for use as a youth center. Funding of $300,000 will include the design, site preparation and installation of a portable building. (BD #101 - $300,000 EFB/S)
• Alzheimer’s Activity Center. As the only Alzheimer’s-specific day program in Santa Clara County, this center has served more than 1500 families since1986. The seniors served by the center suffer from Alzheimer’s or related memory impairment and are extremely low to very low income. Eighty percent of the families served by the Alzheimer’s Center reside in San Jose. The affected population is growing rapidly, yet the Center’s funding from the City has remained constant for the last eight years. This $9,000 request will be added to the $9,000 recommended by the Administration in the Manager’s Budget Addendum #25, to bring the funding level to $18,000, which is the level the organization has received for the past eight years.(BD #81 - $9,000)
• Senior Employment Resource Center. Located at the Office on Aging, this program provides assistance to adults 50 years and older who are seeking employment. I recommend one-time funding for this program, and that this addition be eligible for tobacco settlement fund if approved through the competitive process next year. (BD #109 - $40,187)
• Senior Programs. Several other worthwhile senior programs, including minority senior services, Senior Employment Resource Center and Senior Outreach Transportation, were suggested for funding. I recommend that these be considered for potential funding through the tobacco settlement fund. (BD #73, 88 and 109)


Smart Start Centers

With its approval of my March budget memorandum, the Council endorsed the use the tobacco settlement funds for establishing Smart Start centers under the category of education programs. Funding is included for the addition of two more contracts to be completed next year at $450,000 each, for a total of seven centers. In the following years, we should have a goal of creating four new Smart Start centers per year. My office has done a preliminary survey of school districts and found 90 schools that potentially could have Smart Start centers. Smart Start centers throughout the community will increase the ability of young children to succeed when they enter school. ($900,000)

• Customer-Driven Government: Investing in systems that support the delivery of high quality, efficient, and cost-effective services that the community wants and needs.


Employee Recruitment

The Council has heard recently from the Administration that there has been a dramatic reduction in the number of applicants for certain positions within the City. Recruitment using expanded outreach and targeted marketing can increase the pool of qualified job applicants. I recommend that the City explore expanding our employment outreach through the innovative use of the Internet and online recruitment services. I recommend funding of $30,000 for membership in an online service, such as Monster.com, to expand our employee recruitment outreach. ($30,000)

Welcome package to new homeowners.

Newcomers to our community face a genuine challenge to learn about the many City services available to our residents. Providing timely information to new residents would help them discover community services and ease their transition as new members of our neighborhoods. I recommend an allocation of $50,000 to develop "welcome packages" that could be given to new homeowners. I would recommend that the Administration work with the business organizations such as chambers of commerce, title companies, and real estate agents to develop and distribute welcome packets. ($50,000)

Budget Structure and Long-term Fiscal Stability Policies

I recommend the following Council policies to ensure long-term balanced budgets for the City that will support the stable delivery of public services. These policies include:

• Discontinue the use of annual surplus funds on ongoing expenditures, unless those expenditures can be accommodated in Year Two and possibly Year Three of the five-year financial forecast. Developing a Council policy that precludes this type of expenditure will put us a major step closer to achieving long-term fiscal stability.
• The priority expenditure of the ending fund balance each year will be applied to eliminate following year’s projected deficit as much as possible. Recent year trends show that the ending fund balance has been adequate to cover the projected deficit in any upcoming year.
• As the City continues to make the transition to a performance-based budget, the Council should focus more and more on our desired outcomes of our resource allocation. To underscore the attention we need to give to outcomes, the Administration is directed to regard proposed changes to performance measures as serious policy recommendations for new service levels, and they should be treated in the same manner as proposals for staffing and funding levels. Proposed new or changed performance measures shall be called out in the proposed budget document. This will require the portion of the proposed budget currently focused on funds and FTE changes to also contain details of changes for measures and targets.
• When augmentation or reduction proposals are connected to existing performance measures, the Administration is directed to include specific impacts on performance measures and service levels in the proposed budget document.



• Reduction/Redeployment/Rebudget Proposals



• EcoPasses. The City encourages employees to use public transit by providing free EcoPasses. Although the Department of Public Works initiated this program, the Human Resources Department now should administer it as an element of employee benefits. Resources to support the EcoPass program for City employees therefore should be redeployed to Human Resources.
• City Hall Remodeling. Funds proposed by the City Manager for remodeling the existing City Hall and providing City Hall signage should be redeployed (to the extent necessary) to fully fund unfunded facility needs that the proposed budget indicates as having unsafe conditions. As there may be funds available from the Childrens’ Shelter site project, these funds could be substituted to the extent possible.
• Integrated Development Tracking System. IDTS services should be consistently available to the public and customers 24 hours a day, seven days a week. The proposed budget suggests the performance goals for customer access is between 8:00 a.m. and 5:00 p.m. The Administration is directed to review the redeployment of staff to ensure that coverage for IDTS services is available "24/7."
• Airport curfew monitoring and enforcement. The Administration and City Attorney are directed to continue to explore redeployment opportunities to increase resources allocated to curfew enforcement.
• I recommend the following Council Office rebudgets:
• Council District One $94,000
• Council District Two $6,400
• Council District Three $6,500
• Council District Four $147,700
• Council District Five $22,478
• Council District Six $5,500
• Council District Seven $66,100
• Council District Eight $19,500
• Council District Nine $32,250
• Council District Ten $127,300
• Mayor’s Office $389,000
• Council General $120,000



• Revised/New Performance Measures



• First-time homebuyer programs. A new performance measure needs to be included for first-time homebuyer programs that identifies number of units closed per year.
• Façade Improvement Program. This program should include a performance measure that tracks project completion timelines and goals.
• Crime rates. Our measure for crime rates currently compares San Jose only to the national crime index. We should also include comparisons with California and Santa Clara County crime rates.
• Project budgeting and tracking. Our measures for determining if construction projects are on budget should include an indicator that compares final project costs with the original Public Works project estimates. Comparing actual budget performance to the contract award amount puts all responsibility on the actual construction management, and no responsibility on our ability to make accurate cost projections.
• Specific Plan implementation. The measure related to implementation of Specific Plans should reflect the percentage of acres where development occurs within five years of the adoption of Specific Plans. We should remove the measure that refers to the number of acres that are developed according to the original Specific Plan.
• Direct delegate spending. The performance measure compares Direct Delegate Spending and Tax Benefit per dollar of operating cost numbers should be changed to include Convention Visitor Bureau funds to provide a more accurate picture of the return on the City’s investment for this purpose.



• Reports Required

• The Administration and Redevelopment Agency Staff are directed to report back to the City Council/Agency Board prior to next year’s budget process with a review of our public art policy. This analysis should review appropriate funding levels for public projects, requirements for private projects, and the possibility of allowing capital improvements to include art facilities as allowable expenditures. (February 1, 2001)
• The Administration is directed to work with schools to develop a safe school pick ups program. There should be a status report provided in 120 days. (November 1)
• The Administration is directed to report back to Council within 60 days with a review and analysis job applicants by department and by position. (September 1)
• The Administration is directed to report back to Council in 90 days on the potential for amnesty programs related to code enforcement and fines for overdue library books. This goal of such programs would focus on attaining compliance rather than enforcing fines in an effort similar to the business tax amnesty we offered recently. (October 1)
• During the budget study sessions, staff indicated that we are able to pump recycled water upstream on Coyote Creek and release the water into the creeks as an allowable diversion tactic. The Administration is directed work with the Regional Water Quality Board to prepare a report back to Council within 120 days with a feasibility assessment of expanding this program to multiple sites to maximize the potential diversion of recycled water. (November 1)
• The Administration is directed to report back to Council in 120 days on options for further consolidation of parks management. This report should contain consolidation and coordination across departmental lines to achieve Council objectives of clean, attractive, well-maintained parks as well as more effective use of resources. (November 1)
• The Administration is directed to report back to Council in 45 days with efficiency study information and a review of the new National Pollutant Discharge Elimination System (NPDES) permit requirements. This report would lead to a discussion with Council about our goals for the new NPDES permit. (August 15)
• We should review the need for "City Service Areas" in the structure of Administration’s budget document. Although there may be internal organizational value for using City Service Areas, this intermediate level of budget analysis may not be helpful for the Council’s deliberations about resource allocation. The Administration is directed to report back to Council in 90 days for a discussion of a budget system that would not have an intermediate step between Policy Priority areas and specific Performance Measures. (October 1)
• The Administration and City Clerk are directed to review accounting processes that track Council office postage billing to ensure that each Council office is charged only for the postage used, and to report back to the Rules Committee with findings and recommendation in 90 days. (October 1)

My goal as Mayor is to invest in our neighborhoods and public services that will provide long-term benefits to the residents of our community. At the same time, we must continue to improve our organizational abilities to provide high quality services, manage our resources responsibly, live within our means, and ensure balanced budgets so that we can improve services for the next generation of San Jose residents.

We are fortunate to be living in good economic times, but even during good times, there are never enough resources to address all of the good ideas and all the community needs that come forward. For this reason, we as a City Council must continue to make choices that can balance between the present and the future, and between competing demands for services and resources, to achieve the best long-term results for the people who live and work in our community.

This budget document puts us on a good path to establish San Jose as a model city and America’s best city in the 21st century, and to strengthen our community where all our residents take great pride in living and working in San Jose. With this commitment to our neighborhoods and residents today, and as well as to future generations of San Jose residents, I am confident we can make our city the best place to live and work in America.

This memo has been coordinated with the City Manager’s Office, the Redevelopment Agency Executive Director and the City Attorney.