Mayor's Budget Message

In accordance with Section 1204 of the San José City Charter, I present my FY 01/02 Budget Message for consideration by the City Council and the public.

This budget outlines recommended priorities for continuing to make smart, strategic investments that will improve city services and manage our resources more effectively and efficiently to improve our quality of life, especially in our neighborhoods. Our efforts will further establish San José as the best city in the 21^st century where all residents take great pride in living, working and playing.

RECOMMENDATION

BACKGROUND

Our community and the City Council should be proud of our many accomplishments over the past few years. San José is a great place to live, work, and play because of our strong commitment to our neighborhoods, our long-term investments for the future, and our strategies for managing resources effectively. This proposed budget continues these efforts to enhance, expand, and create programs that improve the lives of children, families, seniors, and employees in the San José community. Achievements that I am particularly proud of are:

2. Putting a homework center in every school so kids have a safe and quiet place to do their homework.

3. Having the City pay the full cost of providing sidewalk repairs in front of homes.

4. Extending a half-cent sales tax to bring BART to San José and improve light rail, bus, and other transportation programs.

7. Building San José Smart-Start centers to provide preschool programs so our children are ready to learn when they start kindergarten.

9. Building road and transit improvements to the airport before the airport is expanded.

Our capital budget reflects an impressive $1.9 billion 5-year Capital Improvement Program (CIP). To put this in perspective, the first year of the proposed CIP exceeds the total 5-year capital plan in the 1997-98 budget. As a result of the overwhelming voter approval of park and library bonds in November, we now are able to add $228 million for parks improvements and $212 million for neighborhood libraries throughout San José over the next ten years. As we heard in one of our budget study sessions, with the approval of this year’s CIP, the average amount of city parkland per resident will grow from 2.2 acres/person to an impressive 3.13 acres/person – an increase of 42 percent.

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. It also reflects the serious attention that members of the City Council give to the residents of our city. Although we cannot provide funding for every proposal, I continue to be impressed by the range of creative ideas to serve the people of our community. Because requests from Councilmembers exceeded $38 million, however, it was necessary to make tough decisions among many good recommendations. The goal of this Budget 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, we must ensure that we 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.

For this reason, we as a City Council must continue to make prudent 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.

Fiscal Outlook

In order to nurture and sustain a healthy community and a strong economy we must build on our successes, seek new ways to raise the quality of our services, and challenge ourselves to set and meet high standards. With this proposed budget document that we as a Council have developed, working with the City Manager and the Redevelopment Agency Executive Director over the last several months, I believe we are continuing on a good path to accomplish this goal.

While our current financial forecast is positive and the Silicon Valley economy is generally strong, there are growing signs of a national and local economic slowdown. These trends underscore the need for us to be prudent as we prepare our budget for the coming year and beyond. We must continue our efforts to improve efficiencies in all our operations, while focusing on accomplishing our highest policy priorities for the residents in our community.

Despite signs of an economic slowdown, our local economy appears to still be strong. New business enterprises are being created at high rates. In April, we had 998 new business filings, a 28 percent increase over January this year, which is a promising indicator of good business conditions. Construction permits for commercial office space in Santa Clara County are 33 percent higher for the first three months of this year compared to the same period a year ago. Residential permit activity has leveled off from last year, but it is still 20 percent higher than during the first three months of 1999.

For the second consecutive year, the Budget Office projects a budget surplus in the first year of the five-year forecast. This is the result of the Council’s policy actions and fiscal restraint of the past two years, which is proving beneficial to the city’s long-term financial outlook. The financial community recently recognized our strong fiscal health and effective financial management by issuing excellent bond ratings. San José is the only city with population greater than 100,000 in California to have the AA+ bond rating. This will result in substantial savings in future interest costs and greater investment in community improvements.

In this document, I recommend continuing the Council policy to 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. We will continue to have our first priority being the reservation of adequate funds from the ending fund balance to prevent the projected deficit in the coming year. Along with continuing fiscal restraint, this policy will lead to a five-year economic forecast that 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 the use of the ending fund balance as noted above. If there are funds remaining in the Ending Fund Balance beyond the specific projects identified in this document, the Manager is directed to create reserve funds for:

Ø Furniture, Fixtures and Equipment (FF&E) for both the City Hall project and Measures O & P implementation.

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 resources to fund items designated for the General Fund. This would provide the maximum flexibility within the priorities of the City Council.

City Service Areas

Through the “Investing in Results” process that began in last year’s budget, the Administration identified seven City Service Areas. Each service area involves multiple departments working together to provide the highest level of service for San José residents and the community. The following budget message is divided into ten sections; the first seven cover the City Service Areas identified by the City Council, and the other three cover procedural or financial issues:

It is important that we use the City Service Area framework for preparing and reviewing our budget to ensure consistency in our deliberations. This framework emphasizes our desired approach to improve interdepartmental, collaborative, and results-oriented services. City and Redevelopment services should be considered integral and mutually supportive of our overall priorities.

At a study session in January of 2000, 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 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:

The Agency Board chose to shift the focus of our redevelopment resources to strengthening our neighborhoods. Prior to 1999, the Redevelopment Agency allocated approximately 2 percent of its overall investment to San José neighborhoods. With our increased emphasis on neighborhood investment, we will raise the level of spending to improve quality of life for residents and businesses in San José neighborhoods to 25 percent of the Agency budget. In addition, our commitment to affordable housing now stands at 30 percent of the Agency budget. I strongly recommend that the Agency Board support this aggressive plan to include more than $170 million to be spent on neighborhood improvements over the next five years.

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. 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.

These priorities are in addition to the historic agreement we recently reached with the County of Santa Clara to share long-term resources from the San José Redevelopment Agency. Under the agreement, the county will receive approximately $200 million in capital funds from the San José Redevelopment Agency between 2001 and 2014, and there will be over $60 million for County operating funds over the next four years. This agreement will clear the way for the city and the county to use redevelopment resources to improve neighborhoods and aging retail centers, create affordable housing, and build needed capital improvements and public facilities for people in San José neighborhoods served by both the city and county.

I am especially pleased to recommend to the Agency Board an allocation of $50 million for building new parking facilities in our downtown. Parking is essential to creating a thriving downtown. There is a critical need to review all possible sites for new parking facilities and to move forward with construction as soon as possible.

1. Aviation Services

San José International Airport is an essential asset to San José and Silicon Valley, and it is also an important neighbor in our community. We need to continue to enhance the airport’s ability to serve the city and the region and support our economic foundations, and we must follow through on our clear commitments to be a good neighbor to nearby residential communities. This includes our traffic relief solutions as part of the airport master plan, which is especially important since San José residents put their trust in us a year ago to accomplish this goal when they defeated the Airport Traffic Relief Initiative. In addition, we must continue our efforts to protect the airport curfew and achieve compliance with our regulations that protect neighborhoods.

a) Customer service program. The Manager is directed to develop and implement an effective customer service program, especially during the construction planned at the airport. Extensive construction will create a challenging environment for airport customers for a lengthy period, and therefore we must ensure that customers have the information and support they need to navigate through the disruption as easily as possible. Airport staff should have appropriate customer service systems, training, and monitoring to improve their effectiveness in this area.

b) Curfew compliance. The Manager is directed to work with airlines to develop schedules, procedures, and preventive measures to minimize the risk of curfew intrusions. Our goal should be to achieve effective compliance with the curfew ordinance in order to protect quality of life for residents living near the airport.

c) Noise reduction. The Manager is directed to work with airlines and our federal delegation to develop technologies and legislation that will lead to quieter planes flying in and out of San José International Airport.

2. Economic & Neighborhood Development

We must continue to invest in infrastructure and services that contribute to business growth, job creation, housing, and a strong and diverse economic base. An essential focus of this investment is in San José neighborhoods, where our families call home, and where our local businesses operate and their employees live. Only through this critical investment can San José remain a great place to live, work and play.

a) Lincoln Avenue Corridor Strategy Study. There has been tremendous change in the land use and transportation activities in the vicinity of Lincoln Avenue between West San Carlos Street and Minnesota Avenue. A corridor strategy study that reflects these changes and new opportunities is necessary to assess the redevelopment potential of Lincoln Avenue. Between West San Carlos and Coe, the goal would be redevelopment consistent with use and character of Midtown to the north and the Willow Glen Neighborhood Business District to the south, and enhancement of the NBD as a vibrant commercial corridor serving the neighborhood. This would be a community-driven process to reduce potential impacts on the adjoining residential neighborhoods. (BD #60 $200,000 RDA) [1]

b) Seven Trees Neighborhood Improvement Project. The Seven Trees Neighborhood now shows the signs of deterioration and needs infrastructure improvements to improve safety and appearances. Street lights need to be brought up to current City standards, especially near its elementary and high schools, sidewalks need repair, and street trees need trimming. To prevent further deterioration in this neighborhood and to improve quality of life, I am recommending $250,000 be set aside for neighborhood improvements after the community determines a list of infrastructure investment priorities. (BD #6 $ 250,000)

c) Infrastructure Improvements along the north side of Hillsdale Avenue. There is a need to connect a portion of sidewalk along the north side of Hillsdale Avenue in front of the Mountain Springs Mobile Home Park. This area is a potential safety hazard to residents of the mobile home park who use this portion of the roadway to reach the bus stops and light rail station near their homes. The scope of work includes the placement of curb, gutter, sidewalk, street trees and conforming pavement. (BD #7 $135,000)

d) Camden Avenue Median Landscaping Project (from Blossom Hill to Kooser). Median island landscaping on Camden Avenue at Blossom Hill Road and Kooser Road was completed last year. The recommended funding will provide landscape improvements (trees, shrubs, irrigation and cobblestone paving) to the median islands on Camden Avenue from Blossom Hill to Kooser. The improvements are necessary to ensure visual continuity. (BD # 49 $179,000)

e) Street Lighting at Schools. These street lighting improvements will include the retrofitting of existing lights and the installation of new lights in dark areas in front of four schools (Dorsa Elementary, Cesar Chavez Elementary, Ryan Elementary and National Hispanic University). The communities near these schools have long expressed concern that streetlights surrounding the schools are either not bright enough or set too far apart. This creates “dark spots” that can encourage loitering, vandalism, or other potentially hazardous activities near schools. In addition, these communities frequently use local schools for evening programs and activities, and insufficient lighting has raised public concerns about potential safety. Improvements to street lighting at the schools also will contribute to safer conditions for pedestrians and motorists at night. (BD # 21 $372,000)

f) The New Galarza Elementary School. Installation of streetlights on Bird Avenue near the new Galarza Elementary School will be a benefit to the entire community. The lights will increase the safety for students, teachers, and residents in the surrounding neighborhoods. (BD #66 $60,000)

g) Gleason Avenue Streetscape. This barren parcel of land on San Tomas Parkway and Gleason Avenue parallels San Tomas Expressway and a concrete channel for San Tomas Creek. It is owned by both the City of San José and the County of Santa Clara. The immediate neighborhood is comprised of high-density apartment without open space or recreational areas. In recent years, this parcel has become a dumping ground. After numerous attempts by San José Code Enforcement to stop the littering and dumping, the City and County agreed to fence off the area. Despite these efforts, dumping has continued. The recommended proposal would remove the fencing on the street side, install a sound and sight barrier with drought-resistant plants and trees, and create a park-like environment with a walkway and benches. Because of our new partnership with the County of Santa Clara, the Manager and Director are directed to look for future opportunities for joint funding with the County for capital projects. (BD # 33 $120,000)

h) Lean Avenue Improvements. The median area on Lean Avenue from Cherry Blossom Drive to Lime Blossom Court is currently unpaved. The affected area is 450 feet long and up to ten feet wide. A potential safety hazard exists because motorists attempt to drive through this dirt median as there are no curbs to prevent it and the painted median lines have faded. Paving this street median will improve both its appearance and increase the safety of Lean Avenue for residents and motorists. (BD #18 $120,000)

i) Construction of pathway along Barberry Lane. The current pedestrian pathway along Barberry Lane ends in the middle of the block near a drainage ditch. The completion of the path would enable students and other pedestrians to cross to the existing pedestrian pathway on the west side of King Road. ( BD #70 $291,000)

j) Construction of sidewalk along Aborn Square Loop. Currently there is no sidewalk on either side of Aborn Square Loop, which creates a potential safety hazard for children from the Rouleau Children’s Center, pedestrians, bicyclists, and the disabled. The installation of a sidewalk along the sound wall would offer a safe traveling route for pedestrians. (BD #76 $322,000)

k) Infrastructure Improvements on South Seventh Street. Union Pacific Railroad plans to abandon a section of track that runs along South Seventh Street. If the adjacent property owners take title to this property, infrastructure improvements will be needed along this section of roadway. I recommend that funds be held in reserve for potential improvements until a complete needs assessment is finished. The Director is to include this funding in an appropriate year of the five-year CIP. (BD #37 $500,000 - RDA)

l) Phelan Avenue Infrastructure Improvements. A section of Phelan Avenue becomes flooded when heavy rains occur. The proposed project will install new storm drainage facilities and upgrade the curb and gutter, sidewalk, and pavement to prevent further flooding on Phelan. (BD #36 $300,000 - RDA)

m) Santa Teresa Boulevard Median Island Landscaping. Median islands along Santa Teresa Boulevard have either been landscaped and not maintained or have never been landscaped. As a result, these median island strips are mostly dirt and have few trees. Santa Teresa between Cottle Road and Springer Avenue serves as a “gateway” into the Santa Teresa/Blossom Valley communities. The landscaping of these median strips will improve the quality of life for the residents who live in neighborhoods surrounding Santa Teresa Boulevard. These improvements have been divided into separate segments for funding and scheduling as follows:

Reach 1. Cottle Road to Springer Drive (install new landscaped $255,000 median islands)

Reach 2. Springer Drive to Lean Avenue (replace existing landscaping $205,000 and provide irrigation)

Reach 3. Lean Avenue to Snell Avenue (replace existing landscaping $285,000 and provide irrigation)

n) Pedestrian/Bicycle Bridge over Lower Silver Creek. The East Dobern/Capitol-Goss Neighborhood Advisory Committee has identified the pedestrian bridge over Lower Silver Creek as a high priority neighborhood improvement. The Committee has allocated $285,000 of its one-time discretionary funds for the purchase of the needed properties, project design, and a portion of the construction cost. The estimated cost for bridge design and construction is approximately $450,000, and includes an asphalt pathway at each end and some basic landscaping. Construction of this bridge requires acquisition of two pieces of private property on the north side of Lower Silver Creek that have been estimated by staff to have a combined value of approximately $50,000. To ensure construction, I recommend the allocation of the remainder of the $500,000 for the bridge. (BD #10 $215,000)

o) Williams Road and Boynton Avenue Sidewalks. The Blackford teen center will move to a site on the Boynton Avenue side of Blackford High School. New sidewalks on Boynton Avenue will provide a safer route for students and residents in the neighborhood. This project will include pavement for new curbs, gutters, sidewalk, driveway aprons, street lighting, and street trees. (BD #43 $433,000 EFB)

p) Boynton Avenue sidewalk at Steven’s Creek Boulevard. This area currently does not meet City standards for sidewalks. To create a safer path for pedestrians, this project includes construction of pavement for curbs, gutters, sidewalk, driveway aprons, street lighting, and street trees. (BD #44 $362,000)

q) Planning Enforcement Inspector. Each year, Planning Department staff processes thousands of development applications. Many projects are complex in nature and require conditions to facilitate compatible development with neighborhoods and mitigation of environmental impacts. This position would be responsible for facilitating project compliance with conditions of approval, such as construction, design and material quality, landscaping and environmental mitigation measures. (BD #57)

r) Improve Towers Lane from Aborn Road. Towers Lane, an unpaved road that was annexed in the 1950s, does not meet City standards. Improvements are necessary to make the neighborhood safer for pedestrian and car traffic. A number of residents appear willing to dedicate a portion of their property to the City for the improvement project, but the Transportation Department still needs $137,000 to complete the property acquisition. The project should be approved on the condition that residents dedicate the necessary property. The scope of work includes the construction of pavement, curb, gutter, sidewalk, driveways, wheelchair ramps, storm and sanitary sewer systems, street lighting and landscaping. (BD #2 $137,000 in EFB, $ 1,197,000 Referred to the Manager to be included in the 02-07 CIP)

s) Berryessa Road Median Island Landscaping. The recommended funding would provide landscaping on Berryessa Road on the west side of the ramp over I-680. The improvements will make this area consistent with nearby landscaping and improve the overall appearance of the neighborhood. (BD #14 $558,000 EFB)

t) Tree Pruning on Hedding St. between Hwy 880 and Bascom Ave. Mature trees on Hedding Street have created a tree canopy that currently blocks the streetlights. Because of high pedestrian use, this stretch of Hedding needs effective street lighting to increase pedestrian visibility for better safety, and tree pruning will help accomplish this goal. (BD # 63 - $9,400)

u) Business Attraction and Retention program. It is vital to have a strong business attraction and retention program, especially in an economy going through changes. The Manager and Director are directed to work with the Mayor’s Office to develop and implement an enhanced program that will increase business attraction and retention activities. The City's retention strategy will focus on a range of companies including the City's largest employers, revenue generators, and companies within key industry clusters. The attraction strategy will be based on, various economic indicators including venture capital expenditures, industries that support San Jose's existing clusters, and industries projected to have significant growth over the next decade. ($50,000 rebudget)

v) Extremely Low Income Housing. Finding a home at an affordable price has reached a crisis level – not only in Silicon Valley, but also throughout the Bay Area. San José has been the Bay Area leader in creating more housing for all income levels, and it is important that we continue to lead the way in making our community affordable for San José families. We are well on track to reach our goal of building 6,000 new affordable homes by 2004 with the wise use of redevelopment funds. My Council colleagues and I have taken steps to do even more. The Council approved my recommendation in the March budget message to allocate an additional $10 million to help develop homes for extremely low-income families who have the greatest challenge in finding homes they can afford. The Manager is further directed to create an Extremely Low-Income (ELI) Housing Reserve Fund equal to 30 percent of next year’s anticipated affordable housing expenditures. After next year, the Council will review annually the actual expenditure of funds in this category to determine future allocations. Supplementing our affordable housing funding with additional Redevelopment 80-percent funds will enable us to achieve the 30 percent goal next year and not have a negative impact on our housing production goals. ($13.8 million – RDA funds)

w) Rental Public Education and Outreach Program Reserve. To inform all San José tenants of the City’s existing rent control policies and relevant mediation and arbitration services that are provided by the City, it will be necessary to undertake a comprehensive public education campaign. With 53,000 homes in San José protected by rent control, it is likely that many tenants and landlords are unfamiliar with our ordinance and the services available through the City. We should make a strong proactive effort to inform all tenants and landlords of our rent control ordinances, dispute resolution services, and related programs to make sure they know their rights and responsibilities. Such outreach should use communication methods that are effective for reaching a wide range of residents who are renters in our community, including languages other than English, and it should use community-based tools that do not rely on conventional media such as community and business organizations. ($100,000)

3. Environmental and Utility Services

San José has long been a leader in its efforts to pursue community and environmental sustainability. We must continue to invest in facilities, practices, and services that contribute to a clean community and the long-term viability of our region’s limited air, water, energy, and land resources. The benefit of this investment is not only for current residents, but also for future generations.

a) West Valley Library. The City will soon be establishing guidelines for a “Green Building” program aimed at improving resource efficiency of our public buildings. The proposed program will include a recommendation to require all new public buildings to attain the minimum rating for LEED (Leadership in Energy and Environmental Design). The West Valley Library was funded before the development of the proposed Green Building Guidelines and was not required to attain the LEED “Certification” level. Achieving certification for the library will ensure that this building is environmentally friendly, energy efficient, and comfortable for people working and visiting it, and has followed responsible development and construction practices. (BD #38 - $491,000)

b) Implementation of Additional Neighborhood Clean-ups. The Neighborhood Clean-up Program has direct positive impacts on the quality, safety, and appearance of our neighborhoods, and it contributes to the development of community pride. The Manager is directed to work with Councilmembers to schedule the ten additional neighborhood clean ups funded next year as soon as feasible.

c) Energy. California’s energy crisis impacts everyone’s daily life, and rolling blackouts and high energy bills are daily painful reminders. Silicon Valley has a long history of taking bold, creative and collaborative actions to address complex problems such as traffic congestion and affordable housing. We are demonstrating the same initiative with energy by acting to become more self-sufficient and achieve greater energy reliability in our region for our residents and businesses. The Council approved the San José Smart Energy Plan calling for appropriately sized clean generation facilities in suitable industrial areas, aggressive energy conservation and regional partnerships to achieve our energy goals. The burden of higher energy costs falls heavily on older residents and families with limited means. With steep increases in the costs of gas and electricity this year, the City’s own energy bills and its revenue from the Utility Users Tax (UUT) have both increased. The Council approved my recommendation in March for a one-time allocation of $1 million to be used for community programs such as the Home Energy Assistance Program and Emergency Contingency Funds that are designed to serve families who need help paying their utility bills. Through this measure, we will be able to help residents who are falling behind on their payments or need one-time emergency funds to restore their power. These funds and other matching funds the City receives are also available for residential conservation programs as opportunities and funding are available.

d) South Bay Water Recycling. The Council recently approved the concept of constructing the Recycle Water pipeline from its current terminus to Coyote Valley. The Manager is directed to bring forward any actions necessary to implement this capital program.

4. Public Safety Services

Our residents should both be safe and feel safe in their neighborhoods and community. I am proud that San José remains the safest big city in America, and crime rates continue to decline. This achievement is the result of an excellent police department, a good economy, and strong neighborhoods. Our emphasis on crime prevention and law enforcement must continue to ensure the safety and security of our residents.

a) Fire Department Public Education Staff. A critical factor in achieving a safe community is encouraging residents to takes steps that increase the safety of their families, homes and neighborhoods. This recommendation would support a public education specialist to offer public education programs in fire, life safety, and emergency preparedness. Examples of public education services include the Vial of LIFE, CPR and first aid, and fire prevention. (BD #83 $29,595 one-time funds and $70,405 ongoing cost)

b) Internet Predator Awareness. Internet predatory crimes are on the rise nationwide, and this recommendation would establish a local program to help prevent these crimes in our community. The target audience will be middle school students and their parents to help them learn how to avoid becoming potential victims. Staff from the San José Police Department’s Sexual Assault Unit will lead this program. (BD # 84 $11,000 one-time funds and $4,500 on-going cost)

c) Wildland Interface Program Manager. The City enjoys the benefit of a wide expanse of open space and wildlands within the city limits, but the proximity of wildlands also presents potential fire risks to the community. This funding will create a new position in the Fire Department to plan and coordinate measures to prevent and suppress wildland fires. The position would develop a hazard assessment mitigation plan, and educate the community. (BD #9 $34,924 in one-time and $107,331 ongoing funds)

d) Domestic Violence Advocates. The San José Family Violence Center advocates have received specialized training and have extensive knowledge regarding domestic violence issues, as well as direct experience with victims of domestic violence. This recommendation for funding will enable advocates to provide a wide range of domestic violence support services, including safety planning, crisis intervention, law enforcement liaison; court preparation and support, and ongoing support and consultation. Advocates will be on call 24 hours per day, and they will be available at locations where needed, including the Family Violence Center, hospitals, law enforcement and prosecution interviews, and court proceedings. (BD #85 $60,000)

e) Paramedic Certification. Currently, the City does not continue to pay for paramedics’ certification after they are promoted to the rank of Captain in the Fire Department. The recommended funds would enable 50 line staff fire fighters to maintain their paramedic certification and licenses and continue to receive their premium pay as paramedics. This will increase the number of qualified paramedics who are line personnel in the Fire Department who will be available to serve the public with emergency medical services. (BD #82 $300,000)

f) Safe School Campus Initiative Emergency Response Pilot Program. The Safe School Campus Initiative has now expanded to every high school in the city. Last year, East Side Union High School District and the San José Police Department conducted “Operation: Safe Campus,” a major crisis simulation involving police officers, parents, students, and faculty. The exercise identified many opportunities to help schools prevent and prepare for campus emergencies more effectively. Among the priority needs were measures to communicate with people isolated in classrooms; swift availability of detailed electronic information on the school site, classrooms, staff, and student body to aid police response; and improved training for support agencies and school staff. I recommend we help establish an innovative pilot program for improved emergency response at our school campuses. This would be coordinated with the Safe School Campus Initiative and the Mayor’s Gang Prevention Task Force to meet the needs identified in the “Operation: Safe Campus” report, and it should include a mobile incident command center. ($150,000)

g) Police Staffing Deployment Software. In a recent audit of police staffing deployment it was reported that both the City Auditor’s Office and the SJPD’s computerized patrol staffing and deployment models have limitations. The Auditor’s Office contacted other police departments and identified specialized patrol staffing computer software that have more flexibility and capabilities than either the SJPD’s or the City Auditor’s model. Although these software packages can cost as much as $400,000, their benefits appear to justify the expense. Finally, a number of police departments have used Federal grant funds to procure these patrol staffing software packages. The Audit report approved by the Council recommended that the SJPD investigate the feasibility of using federal or state grant funds to procure patrol staffing and deployment software. At this time, federal or state grant funds have not been available. Staff should explore using existing resources such as the Drug Forfeiture Fund to implement the specific software program identified in the audit immediately.

h) Audio microphones and recording devices for Police Patrol Officers. San José Police officers have an excellent record of interacting and working with our residents, as shown by the positive ratings in the City’s recent survey and the 15 percent reduction in formal complaints against police officers over the past year. We should continue to ensure that our high standards for customer service are met, assure residents of our commitment to police accountability, and assist the investigation of public complaints. To help achieve this goal, I recommend that the Manager implement a program to provide audio microphones and recording devices to all patrol officers who interact with the community on a regular basis. The Manager should explore using existing resources such as the Drug Forfeiture Fund to implement the program.

5. Recreation and Cultural Services

a) Digital Divide. The “digital divide” is about much more than children and schools having access to technology. Closing the divide means we must take steps, in partnership with the community, to ensure that all of our children know how to read, write, do math, and learn in order for them to succeed in the 21^st Century. I recommend allocating funds to implement the recommendations proposed by the Digital Divide Blueprint upon its completion this summer so that we do not have to wait for another school year to go by before we make progress. ($600,000)

b) Smart Start Centers. Two years ago, I said that we would build ten Smart Start centers in five years to help young San José children become ready to learn before they enter kindergarten. We are well on track to meet this target, and in March, the Council approved doubling this goal, making sure 1,200 San José children are helped annually. The Manager is directed to work with all San José school districts and other potential partners to identify locations to implement this new goal.

c) Homework Centers. Clean safe places to study will help students achieve academic success. Last year the Council approved expanding our homework center program so that every public elementary, middle and high school student in San José will have access to a homework center by 2002. The Manager is directed to continue vigorously implementing this direction.

d) Park Maintenance. The Manager is directed to increase funding for operations and maintenance of parks as acreage is added. The proportionate increase shall be based upon current staffing ratios. Any increase in staffing ratios should be considered separately by the City Council as a broader policy discussion of the level of service the Council desires for our parks.

e) Hoffman/Via Monte Neighborhood Center. PRNS conducted a survey to assess needs for youth programs and services in this neighborhood in conjunction with the community’s involvement in the Strong Neighborhoods Initiative. The results reveal an immediate need for a range of youth sports, after-school and summer-school programs, day-care, gang/drug intervention programs, youth leadership, and job-skills training that could be addressed with a neighborhood center.

Although they are close, the Hoffman Ct. neighborhood and the Via Monte neighborhood are not cohesively linked. Community input has suggested better linkage, such as a neighborhood center is needed to help SNI efforts to be successful for these two communities. The recommendation of $350,000 will match the $350,000 already available for the design and placement of a neighborhood center in the Hoffman/Via Monte SNI neighborhood. (BD # 92 $350,000 EFB)

f) PG&E Easement at Wenlock Drive. Currently the PG&E easement at this site is overrun with weeds and trash. Improvements to this easement include landscaping and benches that will enhance the appearance and safety of the neighborhood and provide a recreation destination. The new trail will be consistent with the long-term plan of connecting the PG&E easements and provide the final connection for a north-south walking and biking trail. (BD #22 $300,000)

g) Community Garden at Latimer Elementary School. Community gardens are very popular with residents as social gathering places as well as sources of homegrown food. The new West Valley Library will eliminate a privately operated community garden for the public. A replacement site for a community garden at Latimer School will provide a new and larger home for the United New Conservationists gardeners. A use agreement will be modeled after the agreement between the Moreland School District and the City for the use of Anderson Village School. (BD #39 $150,000)

h) Sakamoto School Outdoor Eating Area Improvements. This upgraded outdoor facility will benefit Sakamoto students during their lunch periods and will allow teachers to use this area as an “outdoor classroom.” This area will also be available to neighbors and community partners for educational and recreational activities such as YMCA youth programs, Blossom Valley Girls Softball, South Valley Youth Soccer programs, Girl and Boy Scouts activities, and the Good News Kids Club. Upgrading this facility will reduce potential fire, vandalism, and environmental hazards that have concerned the school and neighborhood. The Sakamoto Home and School Club has exhibited its commitment to raise funds for this project through other sources such as the Oak Grove School District, CAP Grant, Home and School Club funds, and Our City Forest. (BD # 45 $23,000)

i) Renovation of Irrigation System at Paul Moore Park. The irrigation system at Paul Moore Park is over 40 years old and suffers from severe deterioration. There have been multiple system failures that have caused severe damage to park landscaping and disrupted recreation programs. At present the system is operating with a temporary emergency repair that only has a usable life of 18 months. The estimated total project cost is $583,000. The district 9 Parks Fund currently has $200,000 budgeted for the project. (BD #50 $383,000)

j) Groesbeck Hill Park Basketball Court Completion. Currently, a half-court basketball facility exists at this park, but the Master Plan calls for a full-court basketball facility, which is needed to meet increased demand. Other work scheduled to be completed at Groesbeck Hill Park as part of the Master Plan includes a restroom facility and the addition of a third tennis court. The completion of the basketball court will contribute to making this park a complete facility for the community. (BD #73 $ 40,000)

k) Groesbeck Hill Park Tennis Court Addition. Groesbeck Park has two tennis courts, but three were originally listed in the adopted Master Plan. The need for the additional court has become apparent as development in the area has occurred and the use of the park has increased. The project will have matching funds of $40,000 from the District 8 park funds. (BD #74 $80,000)

l) Boggini Park Tot Lot addition. Boggini Park already has a youth lot and other complementary features, and the addition of a tot lot would complete the plan to make this a full family facility that serves all ages in the neighborhood. A restroom facility funded by Council District 8 and the Park Trust Fund will be constructed simultaneously. The project will have matching funds of $107,000 from District 8 park funds. (BD #71 $213,000 EFB)

m) Senior Needs Assessment & Consultant Services for Aging Services Master Plan. Although the City of San José is a leader in providing services for our older residents, the community’s needs have not been critically assessed since 1989. Since the last review, our senior population has grown larger and has changed dramatically with much more cultural, ethnic, and socio-economic diversity. A comprehensive assessment of needs and current programs is necessary to better plan and deliver appropriate services to senior residents and to update our Aging Services Master Plan. (BD #81 $150,000)

n) Guadalupe River Trail Improvements. Sections of the Guadalupe River Trail have not been completed including Reaches 11 and 12. These two reaches serve as a transition from the Los Alamitos Creek Trail to the start of the Guadalupe River Trail. I recommend funding for the completion of the trail from Blossom Hill Road to Branham Lane (Reach 12). Future reach development will need to be considered as part of a future budget process. Completion of this trail segment with pavement, benches, and trashcans would create an off-street route for pedestrians from Branham to South Almaden. (BD #87 $265,000)

o) City-School Partnership for Hammer Montessori School Playground Improvements. One-time funding of $43,000 is recommended to improve the playground equipment at Hammer Montessori School. By expanding a public school-park easily accessible to neighborhood families, this City-school partnership project will improve the quality of life in the surrounding community. The project includes play structures, fitness clusters, and benches. (BD #46 $43,000)

p) City-School Partnership for Oster Elementary School Playground Renovations. One-time funding of $28,700 is recommended to improve the playground equipment at Oster Elementary School. This City-school partnership project will renovate two 42-year old school playgrounds and replace unsafe structures and equipment. Over the past two years, the community has rallied to make significant improvements to the school by raising nearly half the cost ($24,000) through donations from parents and corporations. Volunteers have already signed up for all renovation activities that do not require a licensed contractor. The community’s strong support ensures a successful and well-used community park. (BD #53 $28,700)

q) Senior Citizen Community Events Supervisor. Currently, the City does not have a full-time community events supervisor position to enable the Senior Olympics to be a year-round program with special events and activities for our growing population of senior citizens. This new position will coordinate citywide special events that focus on health issues, recreational activities, and informative speakers for San José’s diverse senior citizen community. A position dedicated to this issue will ensure that the City meets its goals of helping people age in our community with grace and dignity. (BD #79 $66,896 ongoing costs and $6000 in one-time funds)

r) “Senior-Friendly” Park Elements. A recent City survey indicated that our senior residents have one of the highest levels of park usage. With the construction, expansion, and renovation of community centers and parks funded by voter-approved park bonds, it is important that we offer recreational elements at facilities that focus on our senior neighbors. These funds would support a pilot program for park features, such as lawn bowling, horseshoes, bocce ball, walking courses, and other activities, at one park that is currently used by older residents. These funds will be supplemented by a minimum of $50,000 from Park Funds in Council District 10. (BD #80 $100,000)

s) Replacement of 3 pieces of playground equipment at Washington School. Washington School is located in the Guadalupe Washington Neighborhood – a large, park deficient neighborhood. The school’s playground equipment serves the students of Washington Elementary as well as the neighborhood children. The high level of usage has resulted in extensive wear and tear on the equipment. This joint effort with SJUSD would consist of the City purchasing the equipment for $49,000 and having the School District cover the cost of labor and installation. New equipment will provide a safer environment for school attendees and neighborhood residents to utilize the equipment. (BD #113 RDA $49,000)

t) Acquisition of sites for Measure O & P projects. The Manager and Director are directed to accelerate all site acquisitions necessary for Measure O & P implementation using Measure O & P funds (or loans from other funds if necessary) as soon as feasible. There are many projects related to Measures O & P which require site acquisition. Regardless of when construction is scheduled on any of these projects it is prudent to have site acquisition occur as soon as feasible.

u) East San José Branch Library. City staff has identified a feasible location for the proposed East San José Branch Library in the immediate Alum Rock area. This site includes the southwest corner of Alum Rock Avenue and White Road, as well as adjacent parcels at and surrounding the existing County library located on White Road. Measure O has approximately $13 million earmarked for a new branch library to serve the residents of the Alum Rock area. The additional budget request of $1.5 million for fiscal year 2001-02 will close the gap, if necessary, related to land acquisition and relocation costs. (BD #111 RDA $1.5 million if necessary)

v) The Almaden Winery Center Conversion. The Historic Almaden Winery Building is owned by the City and located in Almaden Winery Park. Built in the 1850s, Almaden Winery is the oldest existing winery building in California, and has been designated a Historic Landmark by the state and the City. Steps have already been taken to replace the roof and prevent further building deterioration from weather and vandalism. Additional restoration includes seismic upgrading at an estimated cost of $891,000. To continue the restoration of this landmark, I recommend funding for the seismic retrofit, architectural finishes, and construction contingency. Community Center renovations will need to be considered in future budget processes. (BD #86 $1,033,000)

w) Guadalupe Creek Trail. For many years the community has requested the development of the trail along Guadalupe Creek from Almaden Expressway to Quicksilver Park. To create greater access and usability for one of the best urban trail networks in San José, there are plans to connect this trail to the Los Alamitos Creek Trail with an under crossing at Almaden Expressway. The estimated project cost is $300,000, and the County and the City already have reserved $150,000. (BD #89 $150,000)

x) Edenvale/Great Oaks Community Facility Project. There is a need for a community center in the Great Oaks and Edenvale neighborhoods. This community center, which will be located in a Strong Neighborhoods Initiative Area, is a high priority outcome of the SNI Implementation Team. The Oak Grove School District has expressed its interest to donate land available at Davis Intermediate School. I recommend that District 2 park funds create a Community Center reserve for the purpose of saving $500,000 over a period of four years. For FY2001-02, I am recommending the transfer of $75,000 of C&C funds to establish this reserve. (BD #15 $250,000 RDA)

y) Vietnamese Cultural Heritage Garden Matching Grant. This complex is envisioned to be a garden of tranquility, where the culture and history of Vietnam are represented in art, architecture, and landscaping. I propose funding a matching grant for the Vietnamese Cultural Heritage Garden project. The City of San José already has contributed the land necessary for this project. This $250,000 matching grant would be released only upon: certification of all other funds being available and construction bid certification by the Public Works Department. These funds should be held for two years and would revert to the General Fund at that time if certifications above have not been received. The Vietnamese-American community is very committed to this project, has raised funds and in-kind contributions, and will continue to pursue matching resources. (BD #3 $250,000)

z) Andrew Hill High School Athletic Field Improvements. The construction of this all-weather athletic field will support many youth sporting events and other neighborhood and regional events, and would continue the excellent partnership between the East Side Union School District and the City of San José that benefits students and the greater community. The total cost of this project is $1,615,000, and I recommend that the City contribute approximately half as our share for the partnership. (BD #4 $875,000 EFB)

aa) Brooktree Park Hybrid Playground. Brooktree Park is a mature neighborhood park, and its existing master plan includes a tot lot. Families in the neighborhood have expressed the need for a place for young children to play that could meet the needs of both school-age children and toddlers. I recommend funding for a playground at Brooktree Park that would include features for a wide range of young children. District 4 park funds would fund $260,000 of the project. (BD #11 $64,000)

bb) Alviso Youth Center. Last year a unique public and private partnership was developed to build a $4 million youth center in Alviso and North San José. The youth center will provide a gymnasium, two classrooms, and other facilities that will be available for school and community use. Pledges from Legacy Partners, Cisco Systems, and Devcon Construction have made the project possible. In addition to Council District 4 and Santa Clara Unified School District funds, the school district will provide land and construction management. (BD #13 and MBA #34 $97,860)

cc) Northside Community Center. Completion of the new Northside Community Center will provide facilities to meet a variety of multi-cultural neighborhood and recreational needs. The new center will include a multi-use room with a central kitchen, classrooms, and a library, and it will offer space for enrichment activities, educational programs, and health and wellness workshops. The Northside Community Center has been providing these critical services for many years, and the expanded center will support additional services. Current projections indicate that the construction costs for this project may exceed earlier estimates. Currently there have been additions of $440,000 from the RDA and $1 million from the City’s General Fund. Upon bid receipt, the Manager and Director are directed to provide adequate funds for project completion.

dd) Indo-American Senior Nutrition Outreach. Funding would enable the Office on Aging to fulfill its contract with the County of Santa Clara for a nutrition program for San José Indo-American seniors. The Northside Community Center had an enrollment of 300 Indo-Americans in the program before the center was relocated due to construction. Communication barriers have prevented the successful transition to the new location, and there has been a severe drop in attendance. Additional outreach, with emphasis on the Punjabi language, should be continued to reach senior residents who rely on the program for meal services. (BD #24 $20,000)

ee) Blackford Teen Center. The Blackford Teen Center provides a place for teens to gather and engage in after school hour activities. The current teen center must move out of its existing space at Blackford High School because the school district will be using the facility. This replacement teen center will provide space for an active and successful program. The teen center is located in an SNI area, and RDA funding should be reserved following the community priority setting process. However, the center needs to be relocated in advance of when the SNI priority setting process will occur in the Blackford area. I recommend that this project be funded from previously allocated SNI funds in the CIP. We should use all best efforts to have no disruption in services for this program. The Manager and Director are directed to develop bridge funding until this SNI project area formation is completed. (BD #40 - $975,000 RDA)

ff) Camden Community Center Fitness Equipment Replacement. Old fitness equipment at the Camden Community Center cardiovascular room and strength training room needs to be replaced. New equipment will require less maintenance and will meet modern standards for health and effectiveness. Approximately 1,000 residents regularly participate in the Camden Community Center fitness program. (BD #47 $125,000 EFB)

gg) Camden Teen Center Computer Center Expansion. The Camden Teen Center has evolved into a central gathering place serving more than 2,500 youths each week, and it includes a computer center that has become a popular resource for learning computer technology in a group setting. Although the computer center’s equipment is obsolete, limited, and does not have Internet access, it is in heavy demand by young people. This proposal will enable the center to purchase ten computers, one printer, one scanner, educational software, and DSL connection to the Internet to replace the current four out-of-date computers. (BD #52 - $33,000 in one-time funds and $5,000 ongoing costs)

hh) Senior Internet Days and Pilot Program at Kirk Center. More than 700 senior residents regularly visit the Kirk Center for various social and wellness programs each week, and access to the Internet at Kirk is very convenient for these senior patrons. One-time funding of $48,900 and an ongoing allocation of $4,840 for senior Internet days and a pilot program on Internet learning will help promote the use of Internet for seniors at the Kirk Center. This program should be molded on our current award-winning Senior Net program at the Willows Senior Center. (BD #54 $48,900 in one-time funding and $4,840 ongoing costs)

ii) Lincoln High Track Improvements. Lincoln High School plans for an upgrade to existing playfields that will include the installation of an all-weather track. This project will provide Lincoln High students and the community with a high-quality facility that can be used throughout the year. PRNS has estimated project costs to be approximately $500,000. San Jose Unified School District will make matching funds available through the QZAB program. The Lincoln High School Foundation would raise the remainder of the needed funds. (BD # 61 $50,000)

jj) Willow Glen High School Track. The track area and bleachers at Willow Glen High School are widely used by the community on a daily basis for running and after school activities and for community events such as Walk-a-thons for the American Cancer Society. Improvements to the facilities will benefit both the school community and residents, and community groups. Additional funds will come from Willow Glen High School, Willow Glen High School Foundation, and San Jose Unified School District as matches for City funds. (BD #62 $50,000)

kk) Improvements at Cahill Park. Cahill Park, located in the Midtown Area, is one of the park locations targeted by the Midtown Specific Plan. Three developments that border the park, including the Castle Group’s Plant 51 Project, Avalon’s Westpark Project, and SummerHill Homes, have dedicated land for the park. The agreements with Castle Group and Avalon also include funding for park improvements. SummerHill Homes is fulfilling its parkland requirements by the dedication of approximately 0.8 acres of land. The funding requested would provide turf, minor landscaping, walkways, and irrigation to the SummerHill dedication. (BD #64 $200,000)

ll) Park at Bird Avenue and Fisk Avenue. Improvements at the very visible pocket park at Bird Avenue and Fisk have been identified as a priority by the SNI in the Gardner/Atlanta SNI area. The requested funds would be supplemented by SNI funds. The Northern Willow Glen Neighborhood Association has expressed strong support for revitalizing the Bird/Fisk Park and considers it a priority. This site also will be a top priority for future District 6 park funds. (BD #65 $300,000 EFB or RDA funds if legally allowable)

mm) Historic Hoover Community Performing Arts Center. The historic Herbert Hoover Junior High School Building in the Rose Garden district is a valuable historic resource that was designed and built in 1931 by noted school architect William H. Weeks. San José Unified School District has proposed creating the “Historic Hoover Arts Education Center” to enhance arts education for youth between the ages of four to twenty, provide art classes and facilities for the community during non-school hours, and develop a performance hall for both school and community use. The City of San José has already committed $1 million of the $3.7 million needed for this project, and more than $1 million in private sector funds has been pledged. This leaves a funding shortfall of $1,699,407. The Packard Foundation also has committed $1 million that is contingent on an additional $500,000 from other sources. San José Unified School District will match additional City funding to meet the Packard Foundation requirement. (BD #67 $300,000)

nn) Groesbeck Hill Park Security Lighting. The addition of security lighting is needed along a pathway and in a play area to improve neighborhood safety. Along with other improvements underway, this addition would make the park a complete facility for the community. The project will have matching funds of $40,000 from the District 8 Park Fund. (BD #94 $80,000)

oo) Groesbeck Hill Park Perimeter Landscaping. The addition of perimeter landscaping along Klein and Cedardale Roads would include trees, shrubs, and irrigation. Along with other improvements underway, this addition would make the park a complete facility for the community. The project will have matching funds of $68,000 from the District 8 Park Fund. (BD #95 $132,000)

pp) Community Park at Floyd and Locust Streets. As one of the few sites available for a park in the entire Guadalupe-Washington neighborhood, the site at Floyd and Locust has been identified as a priority in the area’s revitalization strategy. In an effort to secure the site, the neighborhood has designated funding through its Neighborhood Revitalization Strategy. In addition, $80,000 has been identified in District 3 Park Funds for the master planning of the site. (BD #98 $400,000, RDA funds if legally allowable)

qq) Dog Park at Watson Park. Many dog owners live in downtown neighborhoods, and they face the challenge of finding suitable space to let their dogs run since public parks do not allow dogs off-leash. A convenient dog park would provide an area for owners and their dogs to gather and allow the dogs to safely run leash-free. There is a two-acre area at Watson Park that would work well for a dog park, and it would resolve neighborhood security issues associated with its under use. (BD #100 $325,000 EFB)

rr) After School Computer Program at Fair Middle School. Over the last two years, the Inner City Games has established several after-school computer programs for local youth who have limited access to computers. This past summer approximately 500 youngsters from Grant Elementary School, MACSA Youth Center, Joseph George Middle School, and Stipe Elementary School participated in this program. Once the program is begun at a school, national sponsors of Inner City Games help support the program. Start-up costs for this program at Fair Middle School would be $65,000 for 15 computers, two printers, a digital camera and educational software. The hardware also can be used for other educational programs at the school. (BD #5 $ 65,000)

ss) Capital improvements to Spartan Stadium. This project will leverage funds from the Women’s World Cup and Spartan Shops, Inc. to complete a new guest services and hospitality area. The new building will also improve the delivery of first aid services to stadium visitors. These improvements will help Spartan Stadium continue to attract and retain quality sporting events like the Women’s World Cup and the Silicon Valley Football Classic as well as competitive sports teams like the San José Earthquakes and the Bay Area CyberRays. ($50,000)

tt) Kids Voting. Kids Voting Silicon Valley is part of a nationwide, nonprofit effort to educate schoolchildren about democracy and the importance of voting. More than 60 percent of all Santa Clara County Schools have participated in Kids Voting, with the primary emphasis placed on schools in San José. Kids Voting Silicon Valley has partnered with Emergency Housing Consortium for the third annual America Festival Art Contest. Each year as part of the Fourth of July America Festival, hundreds of young people submit artwork that reflects democracy and America's independence. I recommend funding in the amount of $5,000 to sponsor this program this year.

uu) Downtown Arts. The proposed CIP includes funding of $3 million for a downtown facility for arts organizations in the SOFA district. The Director is directed to proceed with arts organizations to collocate their public activities and/or their administrative operations in this project. We already have a successful arts incubation program, as well as a successful model with the 500 South First Building, this model should be expanded to include collocation for larger entities.

vv) Construction of pathway/trail at Fernish Park. A pathway is needed in order to allow the community to fully access all sites within the park. The pathway will complete a fully accessible Americans with Disabilities loop throughout the park, thus more effectively meeting the needs of the community. The park is scheduled to have a major irrigation replacement due to numerous system failures. These failures usually result in periods of poor turf quality, which decreases the usability of the park. (BD #72 $ 80,000)

ww) Trail signage at Montgomery Hill Park. This park has seen an increase in use, particularly trail usage. With this additional upgrade, the community will not only learn more about the historical significance of this park but they will also enjoy the improved facilities and public information. Specific improvements should include interpretive panels, a kiosk, and trail markers. The development of this proposed trail signage will contribute to making this park a complete facility for the community and its users. (BD #69 $40,000)

xx) Expanding Roosevelt Park. Expanding Roosevelt Park will lay the groundwork for the successful implementation of the Roosevelt Master Plan. As part of the Measure P program, money has been allocated for a regional community center. This community center will provide essential facilities for the area and make Roosevelt a regional hub for community activities. Already Roosevelt’s play fields and open areas attract residents from throughout the area to play, picnic and gather for special events. The intersection of BART and the Downtown/East Valley Light Rail lines near Roosevelt will lead to transit oriented development that brings thousands of new residents to the area. These residents will look upon Roosevelt as the hub for community activities. (BD #114 $1.9 million RDA)

6. Strategic Support

As we continue to strive for our goal of being the best managed city in America, we must continue to invest in systems that support the delivery of high quality, efficient, and cost-effective services that the community wants and needs.

a) Budget Structure and Long-term Fiscal Stability. Last June the Council approved my recommendation to discontinue the use of annual surplus funds on ongoing expenditures unless they could be accommodated in the second or possibly third year of the five-year financial forecast. This policy has been a major step toward achieving long-term fiscal stability. This policy needs to be reflected in the budget model the Manager uses for five-year forecasts. Currently the model assumes that all surpluses will be used for ongoing activities, and this creates the appearance of deficits projected in the out years of the forecast. Changing the model to conform to our new policy and practice should reduce projections of deficits in the five-year forecast and provide a more accurate picture of our long-term financial position.

b) Building Code and ADA Compliance - Sixth Floor Space Plan. It is necessary to ensure compliance with City of San José Building Code and the Americans with Disability Act and to provide disabled citizens full accessibility to councilperson’s offices. This recommended expenditure would also provide more efficient use of limited space at an existing city facility. The Manager is directed to fund this out of the existing City-wide “Major Space and Renovations” appropriation.

c) Budget Document. Direct the Manager and Director to move five-year business plans into the actual budget document in next year’s proposed budget to make it easier to review the relationship between the five-year plans and budget augmentation requests in each CSA.

7. Transportation Services

Investment priorities for Transportation Services fall into three broad categories: having traffic move smoothly; preserving the roadways; and minimizing impacts on neighborhoods, or “traffic calming.” In addition, we should look for opportunities to provide strong support for regional efforts to relieve traffic congestion and develop effective transit systems that will complete the city’s own transportation systems.

a) Calm Streets. Feeling safe in our neighborhoods also means feeling safe when we cross the street. Walking in San José should be good for your health, not a risk to it. Last year we set aside $1.5 million for traffic calming, and this year the Council approved my recommendation that we set aside an additional $5 million towards the effort to make our neighborhood streets safer. The Ad-Hoc Traffic Calming Advisory Committee is developing criteria for policies and projects that will help guide future investments, and its recommendations are expected this summer. I recommend the following projects all be referred to the Manager for placement into the Traffic Calming priority list once criteria has been approved by the City Council:

Ø Flashing Crosswalk at Trinidad Drive & Elwood Road and Camden & Mt. Forest Drive McAbee Road Median Island

b) White Road engineering acceleration. White Road from Penetencia to McKee already is scheduled to be improved in the traffic CIP. With development about to occur in this area it would be prudent to accelerate the engineering work for this project to enable construction acceleration if feasible. I recommend $100,000 be allocated for this effort.

c) Reserve for “Initial Investment Studies” matching funds. Several freeway interchanges throughout San José are suffering from severe traffic congestion, yet they are not identified in the Valley Transportation Authority 2020 Plan. Matching funding from the City could move San José freeway interchanges to the VTA priority list for 2004, but first the City Council must discuss and identify our City’s priorities in order to provide clear direction to our VTA representatives. We need a systematic approach to evaluate interchanges for the VTA project study and STIP funding processes. The Manager is directed to bring forward a draft interchange prioritization list to the Council for review at the first Council meeting in August. Reserve funding would allow the Council to review interchange priorities and determine which two or three interchanges are San José’s priorities and should be added to the VTA priority list for 2004. ($1 million EFB)

a) Direct the Manager to add park maintenance staffing for new park acreage at the current citywide average of FTE per acre.

a) Page 486: Proposals 1 (Parks and Recreation Facilities Project Management Support) and 2 (Ready Response Team). These performance measures need to have more specific outcomes.

b) Page 486: Proposal 3 (Parks and Library Bond Implementation) The benefits of this augmentation need to be quantified.

c) Page 573 (Transportation Planning Core Service Performance Measures) This measure should include some fiscal measurements, as well as the number of grants applied for and the number of grants received.

a) PeopleSoft. The Manager is directed to report to the Finance and Infrastructure committee on the original estimates related to FTE and costs/savings for PeopleSoft and compare that with current staffing levels and costs. This report must also make recommendations on how to limit increases in costs and staffing in the future including the review of alternate vendors if feasible.

b) MBE/WBE Compliance Programs. Due to a state ballot initiative, and recent legal decisions, the Manager is directed to review the following issues with the Council within 6 months:

· Options for changing the MBE/WBE Program to a race and gender-neutral program for Small and Emerging Businesses

· Alternatives to relocate programs and staff for small and emerging businesses, ADA compliance, discrimination complaints, sexual harassment complaints, and contract compliance to other appropriate departments and offices.

c) Fees for solar panel installation. MBA #36 reviews the impacts of waiving fees related to solar panel installation. The Manager is directed to report back to the Economic Development and Environment Committee within 60 days with options for implementing such a program.

d) Wireless Contractual Services at the Airport. Prior to moving forward with this proposal the Administration is directed to report back to the Finance and Infrastructure Committee within 90 days. The report should include a review of centralized installation versus vendor driven installation, a review of the proposed technology, and an analysis of the cost/benefit tradeoffs from continually investing in this kind of infrastructure. In addition, this proposal should be divided into consulting services and installation services, with the latter to go through an RFP or bid process. While there are merits to investigating the feasibility and benefits to the airport facility and its customers, this proposal should be subject to a competitive process.

e) Information Technology (IT) Strategic Master Plan: Development for “e-government” services should proceed as quickly as possible. As part of this effort, IT should consider establishing a team that focuses on identifying new or improved technology applications that can increase the quantity or improve the quality of current services by improving the efficiency of current systems. This team could also look at new applications that can significantly expand our ability to serve both our internal and external customers cost effectively through our e-government initiatives. This “research and development” team, which could work under the general supervision of the IT Planning Board, could also be responsible for implementing several other strategic IT initiatives. The Manager is directed to report back to the Finance and Infrastructure Committee within 120 days with a review of these subjects.

f) Branch Library Design. More than $1 million is being projected for costs to design each branch library planned in the next decade using Measure O bond funds. Because we have multiple projects, there should be opportunities for reducing the costs of design through the standardization of specifications, grouping library design projects together to hire fewer architects, and leveraging the investment for design in the early projects to achieve savings in the later projects. The Manager is directed to report back to the Council quarterly on the efforts to achieve cost savings through common design efforts for new branch libraries.

g) Urban Design Contracts. Direct the Director to report back to Finance and Infrastructure Committee with a review of all urban design contracts/expenses for the past year and a review of all proposed expenditures for FY 01/02. This review should focus specifically on what services are being rendered for each project.

h) Audit of the Call Center. As already approved by previous Council action on the Manager’s Office budget, the Auditor is directed to audit the Call Center within one year.

CONCLUSION

We should be proud of our many accomplishments over the past few years. San José is a great place to live, work and play and this budget will help continue that trend. The proposed budget will continue, expand and create many important programs for the, people, of San José.

I am particularly proud of our efforts to: wipe out graffiti, expand homework centers, pay the full cost of sidewalk repairs in front of homes, fight traffic congestion, make our streets safer for pedestrians and cyclists, attract and retain teachers, help ensure our children are ready to learn when they enter kindergarten, help provide free health insurance to children, ease traffic congestion at the airport and save historic buildings.

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 José as a model city and America’s best city in the 21^st century, and they will strengthen our community where all our residents take great pride in living, working and playing in San José.

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

[1] Throughout this document are references to budget requests made by Councilmembers. If a specific recommendation relates to one of these requests, it is noted by listing the Budget Document number (BD#) as well as the amount of funding recommended. The source of funds (other than the General Fund) is identified as Redevelopment Agency (RDA) or Ending Fund Balance funds (EFB).

INTRODUCTION