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Park in the Sky or Pie in the Sky?

Planning departments across the USA commonly create “specific plans” and/or “master plans” for certain streets and neighborhoods within a city. San Jose, not unlike other cities, has many of these same plans.

These plans tend to have colorful illustrations depicting what life in the future would be like, and almost always seem to be utopian in nature: happy residents walking with their animal companions in tow, people on bikes, massive parks that melt into the horizon, cafes filled with laughing people laughing, and my favorite … children with balloons.

Most of the time these plans are put together with the best of intentions, but they end up sitting on a shelf due to their inherent lack of practicality or feasibility. For example, many of these plans depict large parks that have no funding source—this is deceptive. If a plan calls for a large park, then many market rate housing units are required to fund that park. (Only market-rate housing, not affordable housing, pays 100 percent of park fees.) In one instance in my district, Cahill Park could have been larger. However, the City Council prior to my tenure approved a housing development that was less dense, and therefore a smaller park resulted.

Sometimes staff solicits ideas from the community, and in doing so propagates a false hope that can only exist in an alternative universe separate from our fiscal reality. For example, one idea involved building a park “in the sky” over the 280 freeway, which would have ended up costing approximately $100 million. This idea should have been eliminated instantly, due to the prohibitive cost. Instead, it was kept alive by the somewhat absurd notion that San Jose voters may someday tax themselves to support a nine-figure project.

In the past, staff and ultimately the council have limited the development potential in a specific plan area when it has been deemed that residents would prefer to maintain the status quo. Case in point, based on community feedback, the 1998 Alviso Master Plan limited the construction of any new industrial office buildings to one or at most two stories on North First Street.  The unfortunate consequence of the height limitation is that we have had to forgo market driven demand for taller, 5-8 story buildings. In effect, this specific restriction in the premier technology corridor of San Jose has limited the city’s economic development as a whole.

An alternative approach that would be more conducive to economic growth would involve first identifying a limited number of job creation sites in San Jose located within specific plan areas. We should then re-examine any existing limitations within these job creation sites and remove any restrictions that may block private investment, as in the Alviso example cited above.

Another reason these plans are often doomed to failure can be attributed to the fact that a private property owner may simply not want to develop their land. In other instances, residents will express a desire for a new park on land that is privately owned, and oftentimes this same parcel has an existing structure with tenants already in place. At the end of the day, America is a country that places high value, rightfully so, on private property rights. Thus, successful development is most likely to occur when the private property owners themselves initiate plans, not when an outsider who does not actually own the property injects impractical conceptual drawings into the process.

Currently, staff is planning the development of “Urban Villages,” with the goal of mixing residential and employment activities. Furthermore, the development of such villages would establish minimum densities designed to support transit use, bicycling, walking, high-quality urban design, revitalization of underutilized properties, and the engagement of local neighborhoods and private property owners in the process. Here is a map of the future Urban Villages.

Having attended three Urban Village planning meetings in October, it is my hope that the plans ultimately approved by council are realistic and allow for expedited development. However, I believe a disclaimer acknowledging private property rights should be on the first page of any proposed plan, and that ultimately development will be initiated on a timetable that government cannot control—especially if the plans are too far from market realities.

Sometimes, a proposed development is in harmony with a pre-existing plan, but just as often this is not the case. In either instance, my objective as a councilmember has always been to consider different points of view and support or oppose development based on the long-term economic benefits to San Jose as a whole.

Also posted in Housing, Politics, RDA | Comments closed

We Pay Twice for Affordable Housing

In past blogs I have expressed my concern about the cost to our city of too much housing. Specifically, housing that does not pay its own share of revenue. One example I have pointed out—and constantly been the lone vote against—is affordable housing.

We run the daily operations of our city with tax revenue. The city does not write paychecks signed “goodwill” or “number-one provider of affordable housing,” but rather with dollars backed by tax revenues. So when we add to the housing stock by approving, for example, an affordable housing project that does not pay property tax, road-paving fees and only 50 percent of park fees, it is a net loss for our city. Therefore existing residents subsidize city services for the new residents.

Annual property taxes in San Jose are needed to pay ongoing salaries and benefits of employees. Road-paving fees go towards paving streets in San Jose. If you ride a bicycle or drive a car you know that we need every dollar. Park fees allow for new parks or increasing the size of current parks so we do not wear out the existing park infrastructure in established neighborhoods.  For years developers were exempted from paying park fees for affordable housing projects which created more residents but not enough open space. However last year with the support of the city council I managed to get it changed to where developers must now pay half the park fees that market-rate housing pays.

The other item of interest is that affordable housing generates extraordinary calls for service from our police.  Attached is a snapshot of data for eight affordable housing developments in San Jose and the calls for police service. Since there are more calls for service around these affordable housing projects, over time our police department may schedule more police in this area to manage those calls. This may translate to less police coverage in other areas of San Jose, perhaps where you live.  In addition, our fire department receives more medical-related calls, and again there’s no tax revenue to pay for the employees.

So we pay twice. Once, by exempting taxes and fees. Twice, by higher use of city services than existing residents. (Also, most of these projects were financed with RDA funds, and the State of California mandates that 20 percent of that money be spent on affordable housing. And many of these projects were put in places zoned for jobs and not housing.)

Out of the many suggestions I have made on this topic I believe affordable housing developments that have too many calls for service should hire an off-duty officer and/or ambulance to be there on site.

Here is a link to 730 police calls on eight housing developments, among some 11,000 units built.

On another topic, one of my favorite Downtown events starts Tuesday night, The Cinequest Film Festival. Check it out at Cinequest.org.

Related to cinema I obtained a documentary film about urban parks directly from the filmmaker called The Olmstead Legacy.  Monday, March 7 at 6:30PM will be the premiere showing in San Jose at City Hall. Find out more about The Olmstead Legacy here. The film will be followed by a discussion on urban parks. The event is near capacity; please email me if you want to reserve one of the remaining seats at Pierluigi.Oliverio@SanJoseCA.gov

Finally, the bipartisan Little Hoover Commission, an independent state oversight agency, made its recommendation to Governor Brown about pensions last week:

Read the Feb. 24, 2011 Little Hoover Commission Report here.

Also posted in Affordable Housing, City Council, Politics, RDA | Comments closed

2011 City of San Jose Community Budget Survey

The City of San Jose contracted with a public opinion organization to conduct a telephone poll of 1,000 San Jose residents. Residents will be asked survey questions about the budget and city services from Jan 13 to Jan 17.

The results of the phone survey will be shared in February. Please note I received a draft of the survey and some of the questions have been edited.

Since only 1,000 people will get a call out of one million residents, I wanted to provide an opportunity for you to partake in the survey via the internet.

http://www.surveymonkey.com/s/RG9LCPN

This survey closes Jan 30.
If you appreciate urban parks than consider attending the San Jose premiere of The Olmstead Legacy film. March 7 at City Hall. For more info click here:http://tinyurl.com/OlmstedLegacy

Also posted in Budget, Politics | Comments closed

Decisions on Housing Types Affect Future Tax Revenue

Unfortunately, not all housing developments create the same economic value in areas assigned to the Redevelopment Authority (RDA). Last week, the council approved financing for an affordable housing development on North 4th Street in a RDA area. Since the housing developer is a non-profit, the development is exempt from paying property tax.

In addition, the fees that are paid for a market-rate development—road paving fees and park fees, to name two—are exempt from this project as well and all other projects like them. (Point of clarification, this project was entitled prior to the Council cutting the park fee requirement in half for affordable housing. I remain committed to my support of 100 percent park fees for affordable housing developers).

Locating affordable housing in an RDA area creates a lost opportunity for tax increment revenue for RDA ,since projects are exempt from property tax. As a result this type of housing does not fund ongoing city services in non-RDA areas that the new residents will require (usually at a higher rate than market-rate housing). It also shortchanges the RDA because RDA needs the tax increment from the increase in property value which then could be invested towards economic development. This housing development is a financial loss and therefore I voted no.

One way to fix this is to require that affordable housing be built by a for-profit developer so it would be subject to property tax. We would still provide affordable housing but it would help to carry its own weight in paying for city services.

At the same meeting, the Council agreed to a multi-year exemption for four north San Jose housing developments from the citywide inclusionary housing policy, which may bring in over $1 billion in private-sector spending. The current San Jose inclusionary policy has been blocked in the short term for apartments only by the Palmer court case. These developers would commit to start their housing projects by September 2011 to qualify for the exemption; however they want to make sure the exemption would not change half way through construction if the State Legislature passes a law to circumvent the Palmer case. This is an example of how an inclusionary housing policy raises the cost for the developer and inevitably increases the price for the market-rate units.

The short-term benefit would be thousands of construction jobs and city planning jobs for these 4,000 housing units that were approved as part of the Vision North San Jose plan ,where the city already has public infrastructure like roads, sewers, street lights, etc. The long-term benefit is that these housing developments are market rate and pay property tax. When the construction is complete the property is reassessed and that increase in value creates millions of dollars in tax increments to fund the RDA each year—ideally to be spent on economic development.

These market-rate developments will also provide 100 percent park fees, creating large parks since they are all high-density developments and the park fees are paid on total amount of units. More housing units per acre equals more park fees.

Tomorrow night Council will consider a new policy (I support) allowing these apartment developments to donate maintenance services for parks so there would be no cost to the City, but enabling residents to enjoy a well-maintained park. They will also pay 100 percent of the road paving fees.  If a city has a RDA to create tax-increment revenues, then ideally each parcel in that RDA area should be strategic for revenue growth.

Please consider attending the Veterans Day parade in Downtown San Jose this Thursday. The ceremony is at 11am and parade is at noon.  1919 was the first Veterans Day event in Downtown San Jose and it is an opportunity to honor those who have served in our military.

Also posted in Politics, RDA | Comments closed

From Last Place to First

As most of you are most likely aware from the front page article in the San Jose Mercury News on August 12, The San Jose Municipal Rose Garden was selected as America’s Best Rose Garden. What an incredible achievement! Congratulations and thanks to all involved including the paid park maintenance city staff and the non paid volunteers.

The rebirth of the Rose Garden could not have been done by only park maintenance staff or only by volunteers. It is the combination of both that allows for this fantastic achievement. And the leadership of Beverly Rose Hopper and Terry Reilly.

Just over three years ago, I walked through the Rose Garden park with numerous concerned neighbors and saw the decline and devastation. I knew then that our City did not have the resources to pay for staff to care for the park, nor would a band-aid approach allow the park to reach its potential.  I also knew the City was behind the times with it’s volunteer policy. Instead, I proposed a pilot for outsourcing park maintenance. That caused the unions to assemble and defend the status quo.

Bringing up the topic of outsourcing allowed for the larger message to get out that this park and other parks need attention, especially with our structural budget deficit. Although outsourcing park maintenance, even as a pilot, was not approved in May 2007,  I did push for and was successful in having council support amending the City’s volunteer policy in October 2007.

I remember asking several times then-Vice Mayor Dave Cortese to accept my friendly amendments to allow more flexibility in the volunteer policy,  including a stipulation that corporations be allowed to have their employees donate time at San Jose parks on their community service days.  This change allowed 250 Google employees and 150 Recology employees to volunteer in the Rose Garden this summer, for example.

The Municipal Rose Garden is a city landmark and now a national one.  Volunteers include residents of San Jose and people from all of over the county. The volunteers are doers and not talkers, as they enjoy giving back to the larger community. I think they serve as an example of the JFK quote (with a twist): “Ask not what your city government can do for you, but what you can do for the community you call home.”

Municipal governments will continue to shrink as revenues will be constrained as pension costs rise. Therefore—now more then ever—residents could provide small increments of their time improving their local park, trail, traffic medians etc… Waiting on government will be taking longer then ever before.

However, residents may ask a fair question as to why cities do not do more to provide services at a lower cost.  As the Wall Street Journal reported recently, San Jose will be saving approximately $4 million a year by outsourcing janitorial. The $4 million in savings was substantial enough to garner national attention and is the trend nationally.

I am very proud to live in a city where doers start with a dead vine and do not give up.  As a result of the conviction from the Rose Garden volunteers, the City of San Jose Rose Garden is Number One!

Also posted in Budget, Politics, Unions | Comments closed

Prioritizing Services That Touch Residents

Hope your Fourth of July holiday was fantastic. On June 29, prior to the holiday the Council made the final vote for a balanced budget. More than 20 people spoke at the Council meeting and all but one advocated that the Council not outsource janitorial services but rather keep the janitorial staff employed, since they provide an incredibly valuable service. You would have thought janitorial was listed in the city charter by the speakers’ comments.

All but one of the speakers advocating for the janitors were affiliated with a labor union or religious congregation. The religious leaders ranged from Methodist to Lutheran to Jewish to Presbyterian. I understand the brotherhood and sisterhood concept of labor unions uniting to advocate for spending taxpayer money to help another union member. I also understand the calls for social justice from the clergy. However I wonder if the janitor at the church or temple makes approximately $55K a year plus a 250 percent pension match and free lifetime medical (minus co-payments) for themselves plus spouse/partner. My guess is no.

The Council was called, “shameful” and criticized for “picking on the most vulnerable.” There were undertones of racism, since the majority of janitors are not caucasian.

The notion that janitors make the least amount of money is incorrect, as I have stated for months. A recreation leader in our parks and community centers makes in salary only $38,001 and a senior recreation leader makes $54,496. A library clerk makes $50,897 in salary only while a senior janitor makes $54,787 in salary only.

So since all three of these positions come from the same pot of money and around the same dollar amount, then it is a trade-off. If the Council chose to not lay off and outsource the janitors we would have to make those same cuts elsewhere to lay off staff that work in our community centers, or lay off staff that work in our libraries.

I chose and will choose to keep services that actually touch the million-plus residents of San Jose over services that do not add value for our residents. The ability to have a community center or library open is more valuable to our residents then who cleans City Hall.  The new janitorial staff will be paid like janitors at Cisco and Apple but possibly more with the city of San Jose’s living wage requirement.

A big thanks you to the Alameda Business Association and Larry Clark for another great Rose, White & Blue Parade on Sunday! Congratulations to Cleveland Ave for winning 1st prize in the parade (three years in a row) for their creative float.

Finally, as an observer early this morning it was quite a sight to see six out of 35 stations working on suppressing the fire at Trace Elementary. Thank you to our Fire Department—fortunately there were no major injuries.

Also posted in Budget, Politics, Unions | Comments closed

Cannabis, Arizona, Fire, Golf and Google

Monday: Medical Cannabis Outreach Meeting
The first outreach meeting regarding medical cannabis collectives was held Monday night at City Hall. Even though the meeting was held late in the process, it was well attended with over 150 people. There were two main groups present: residents and collective patients. Not one person spoke against compassionate use of medical marijuana in San Jose, however, both groups agreed that the locations should be away from schools, parks, daycare centers, etc. Last October, when I initially brought this issue to the Rules Committee, I advocated that we restrict where collectives can locate and include setbacks from locations like schools, etc.
A gentleman in a wheelchair brought up the point that attorneys’ offices are located next to houses and schools in San Jose and that those attorneys have clients who visit their offices that may be violent criminals, so how come we don’t regulate where attorneys can locate?

City staff proposed a “lottery system” to award a permit for collectives. Not one of the 150 people present supported this idea. Some shared that a lottery system is ludicrous because it sets up an irresponsible process to possibly award collectives that do not follow state law and may not have solid responsible procedures in place.

Tuesday: City Council Meeting
The longest agenda item was the issue about boycotting Arizona because of their illegal immigration law.  After several hours of discussion, and testimony, I voted no. I did not make extended comments because I did not think that this matter should have been on the Council agenda. On any given day the other 49 states could pass a law that I/you/we may not agree with. As a city, we do not have the bandwidth to meddle in what other states feel is right for them. This is why we choose where we live. I wrote a blog related to this topic more than two years ago stating my views that you may read here.

Wednesday: Closing of Fire Station Council Policy
I met with the fire chief on the last-minute proposal to close Fire House 7 in this year’s budget. I met with city management a few months ago and asked the question “Did the managers budget include closing any fire houses?” The response back was “no.” They shared, instead, that they were going to move forward with “dynamic deployment,” which would include moving and eliminating fire engines from stations that have two vehicles. I was told that the chief, assistant chief and a member of the city manager’s office would have a follow-up meeting with me. We did and again I was told that no fire house was going to be closed.

Then, on May 28, a management budget memo (MBA#39) came out that said that an elimination of an engine was going to occur. Actually, it’s the closure of Fire House 7. No one from the management office nor the fire department had the gumption to call me; thus my request for an additional meeting.

This budget memo violates the city-wide policy on fire station closures which Mayor Reed, Vice Mayor Chirco and I championed two years ago.  The Council policy states that changing the make-up of a fire house—whether it be consolidation, closure or relocation—requires a policy discussion prior to being a budget discussion, and must be accompanied by a community outreach process.

The policy focuses on using data as the basis for changing the structure of our fire houses and ensures that the community in the affected service is notified and part of the process instead of being told after the fact. Closing of fire stations based on data and outreach may occur next fiscal year but not this fiscal year. I wrote about this policy back in September 2008.

Thursday: Neighborhood Services Committee Meeting
We discussed selling the city subsidized Rancho del Pueblo nine-hole golf course. I suggested we sell the entire 30-acre parcel to create a housing/retail village and create 1-2 soccer fields for open space as well. I believe there is higher demand for soccer fields then golf. We would take the money from the land sale and pay off the mortgage for Rancho del Pueblo 100 percent and pay down the mortgage on Los Lagos Golf course by approximately $12 million based on medium density housing. The more density we allow the more money and open space we can get.

Friday: San Jose Municipal Rose Garden
More than 200 Google volunteers came out to paint, mulch, fertilize, rake and deadhead at the Historic Rose Garden Municipal Park. In 2007, I pushed for a policy that would allow volunteers from private companies to work in our parks when their respective companies have a community service day.  I remember asking again and again for the council to allow this change and the persistence paid off.  None of the Google employees were interested in switching careers but they thought the park was a real gem. I wrote about this policy change 2.5 years ago.

Please vote for our San Jose Rose Garden Park to be considered America’s Best Rose Garden.

Also posted in Budget, City Council, Medical Marijuana | Comments closed

The Center of our City Center

Last week I attended evening budget meetings in Districts 3 and 5. The center of our city (District 3) had a high turnout from residents who find great value in community centers. Particularly, the Gardner and Washington Community Centers. Both facilities provide a place to go and where residents can be positively impacted. Classmates and friends of mine from Willow Glen High grew up in the Gardner area, formerly known as “Barrio Horseshoe.” It was a problematic neighborhood with many gang issues.

My friends in Gardner managed to stay out of the gangs because their parents would physically discipline them if they hung out with people involved in gangs, and kept them busy with chores and work. David Pandori and Cindy Chavez both worked hard to make improvements in the Gardner neighborhood and should be complimented for turning that neighborhood around with the help of passionate residents like Rudy Martinez. Also, praise to my colleague Sam Liccardo for continuing the Pandori/Chavez legacy in Gardner.

The other facility is the Washington Youth Center located in the neighborhood around Washington Elementary and Sacred Heart church. This is another area that has been dealing with gangs for decades. The Redevelopment Agency funded the construction of the Washington Youth Center and the adjacent library along with physical improvements to Washington Elementary. However the general fund is responsible for the day-to-day expenses. Many came to tell their stories of what these facilities meant to them. Some stories brought people to tears as they had family tragedies but also success stories of their children.

Some attendees came from other cities to advocate for our Therapeutic Services program that enables kids in wheelchairs to participate in sports like basketball. They come from other cities like Cupertino and Monterey since surrounding cities stopped offering these services.

There were those who asked, “Why did we ignore the structural deficit all these years?”

Many expressed their opinion that public safety unions should accept wage cuts to save city services and binding arbitration was unfair. Pastor Sonny Lara asked, “Why are people so generous with money for tragedies in other countries but we do not donate to our own local community?” My favorite quote of the night: “We need to stop electing politicians that promise us everything!”

If there was one theme in the District 3 budget meeting it was to keep community centers open. It was stressed by many that community centers and libraries save lives in certain neighborhoods and that these facilities act differently than in Almaden, Cambrian, Evergreen, Rose Garden and Willow Glen. Many felt that community centers and libraries should be open more hours in neighborhoods that have higher needs, which could be determined by crime rate, poverty rate, etc..

I was asked afterwards by several young people who were good role models if would I support their specific community centers over others. I said, “The easy answer is to tell you yes and then walk out the door and vote no.” However, I continued, “the idea of, should some neighborhoods get more services then other neighborhoods is worth debate.” I then asked the youth if they cared who cleans City Hall or would prefer that their community center stay open. They chose the community center.

I believe we should maximize cost savings in areas of our city that do not directly touch residents before cutting services that impact residents. Otherwise we are saying, “Sorry young people, the status quo on cleaning city hall is sacred and better then providing you services that would directly impact your future.” If you do not like this trade off of cleaning staff versus community center employee, then how about community center employee versus librarian or community center employee versus a police officer? Take your pick. Side note: Laying off new police officers is a double loss since we lose the investment/cost to recruit, test, background, academy, field train the new officer.

But let’s get back to the debate on providing more services to certain neighborhoods and less to other neighborhoods. I would acknowledge that higher needs exist in certain neighborhoods and that prevention is less costly than the worst-case scenario of incarceration. There is a disconnect between costs and responsibilities of the city and final costs that may end up on the County or State, but there is also limited sharing of revenue to achieve these goals. On the other hand, I do not believe every person in a certain neighborhood or zip code is affluent.

Within each neighborhood perceived to be upper-middle income, there are those who rent, have a mortgage they are struggling to pay, long- term unemployed, a single mom with kids, seniors on a fixed income, disabled veterans, etc. I assume these residents and specifically youth would want to have the opportunity to read a book or partake in an activity at a community center.

In addition these perceived upper-middle income neighborhoods pay higher property taxes and may feel that they should at least have equal neighborhood services. Personally, I think each neighborhood should get equal infrastructure like sewers, streets, sidewalks and streetlights. Equity in parks is more difficult because of the build-out of nearly all open space and the cost to procure it at today’s prices.  (Such a tragedy that we lost out on approximately $90 million in park fees from exempting affordable housing from this fee.) When it comes to what amount of neighborhood services for each zip code, I am open for debate and would like to hear your views.

Is it fair to provide more service to specific neighborhoods? Is that Marxist? “Each according to his abilities to each according to his needs.  Should government be neutral and provide exactly the same to all areas?

When people buy a more expensive home does that mean something? People choose to buy or rent in areas based on surrounding amenities and pay a price determined by other property owners and renters. Do we let that be the barometer?

Also posted in Budget, Politics, RDA, Unions | Comments closed

Here Come the Cuts

The City Manager will release the list of proposed cuts to balance the city budget today (March 29). These cuts are based on no concessions from any of the labor unions nor savings gained through outsourcing of janitorial services (among others) to save money.

Money saved from outsourcing could help pay for library hours or the aquatics program, for example. The question of concessions has been out there for months and could be included in the budget. Agreement would need to be reached in early April since layoff notices would start going out April 19. If concessions are made then some of these cuts could be avoided but in lieu of an agreement in hand here are some of the proposed/likely cuts.

As it stands now, 802 positions would be eliminated, of which 656 are filled positions, which closes the deficit of $118.2 million. In addition, there were services that were funded last year with one-time funds ($7,476,000), such as library hours, community centers and the SJPD horse-mounted unit, which will be going away as well, accounting for 77 filled positions.

Library:
Eliminate 104 positions to save $7.4 million in 2010-2011 and $7.9 million in 2011-2012. Neighborhood branch libraries would be open three days a week and the MLK Main library would reduce hours 12 percent. Delay opening of new Seven Trees and new Bascom libraries saves $2.3 million for library staffing. Does not include community center staffing costs.

Parks, Recreation & Neighborhood Services:
Eliminate 38 positions to save $4.3 million in 2010-2011 and $5 million in 2011-2012. Close smaller community centers.
Eliminate 12 positions, saving $836,000 in 2010-2011 and $854,000 in 2011-2012. Reduce maintenance staffing at parks; restrooms open only on weekends except in summer. Eliminate 10 park rangers, saving $634,000 in 2010-2011 and $848,000 in 2011-2012. Eliminate 24 positions, saving $630,000 in 2010-2011 and $637,000 in 2011-2012. Reduces aquatic program to only 2 pools in San Jose. Eliminate two positions in Code Enforcement, saving $302,000 in 2010-2011 and $323,000 in in 2011-2012.

Fire:
Eliminate 90 positions (88 are filled), saving $12 million in 2010-2011. 2011-2012 costs determined through binding arbitration. Reduce/suspend fire apparatus and fire fighters at station 30 Auzerais, Station 33 Communications Hill, Station 34 Las Plumas, Station 35 Poughkeepsie, Station 3 Martha Street and one other station yet to be identified.

Police:
Eliminate 160 positions (153 are filled), saving $25.5 in 2010-2011. 2011-2012 costs determined through binding arbitration. Reduce police patrols; eliminate funding for new officers; reduce Metro Unit; reduce Investigations unit; reduce Downtown services unit; delay opening of Police Substation; reduce Financial Crimes unit. Reduce the Crossing Guard program by 8.3 positions to save $354,000 in 2010-2011

Transportation:
Eliminate 12 positions for capital projects, including transit and bike/pedestrian projects. Saves $1.4 million in 2010-2011 and $1.6 million in 2011-2012. Eliminate 9 positions for Neighborhood Traffic Calming. No more traffic studies and no implementation of traffic calming tools. Saves $921,000 in 2010-2011 and $999,000 in 2011-2012. Eliminate five positions for residential street sealing. Saves $375,000 in 2010-2011 and $415,000 in 2011-2012.

Convention Center:
Eliminate 25 positions to save $1.9 million 2010-2011 and $2 million in 2011-2012.

This list is not comprehensive and may/will fluctuate based on final Council adoption of the budget in June.

Also posted in Budget, Police, Unions | Comments closed

What Would Cesar Chavez Do?

Below are a few observations from last week.

Monday: Council study session on Airport
Overwhelming majority of Council thought outsourcing of janitorial to save $3 million was a bad idea so it looks like we will lay people off and consider getting rid of the night time curfew in the future.

Monday Night: General Plan 2040 Task Force Meeting
Although the General Plan board members were informed that the City’s budget problems are partially due to most of our land being dedicated to housing instead of jobs, the Task Force voted in favor of adding 300,000 people with a 14-11 vote. The two options were 200,000 or 300,000 new residents. Several task force members shared that they voted no because they wanted to see higher growth of 500,000 more residents to San Jose! I voted for the option that added 200,000 people by 2040.

Tuesday: Council Meeting
After 18 months of staff and paid consultant “research” regarding my Sept. 18, 2008 memo proposing that developers of affordable housing projects be required to pay park fees, as market-rate developers are required to, the question finally came to Council. I believe that people of lower income are deserving of 100 percent park fees/land dedicated, the Council decided to support the Housing Department’s compromise that developers pay only 50 percent. To date, the City of San Jose has lost approximately $90 million in park fees from developers because of this park exemption.

Are you familiar with the term, “What Would Jesus Do?” Well I wonder as we come up on Caesar Chavez Day, “What would Caesar Chavez do” if he was alive and on the Council. Considering that affordable housing provides for people of lower incomes and is often located in areas that do not have parks, would he vote for equity when it comes to parks in San Jose for all people?

The next agenda item on the council agenda that day was the Habitat Conservation Plan where it seemed that the Council had more sympathy for the checker spot butterfly then parks for people of all income levels.

Wednesday: Visit Medicinal Marijuana Collective in Oakland
One collective is on target to write a check to Oakland for $360,000 in city taxes and another check to the State of California for nearly $2 million in sales tax of which approximately $200,000 will come back to Oakland; therefore Oakland will be receiving approximately a half a million dollars from one legal medical collective that employs 80 people with an average hourly pay of $43.

Thursday Night: Neighborhood Association Meeting
I talked about the budget and announced to the audience that the City would be suspending the $750K aquatics program for the 2010-2011 city-wide. I shared that the City could restore the entire program if we chose different ways to do city services, like outsourcing janitorial services at City Hall for example.  There were many in the audience that felt that they did not care who cleaned city hall but they would rather have a summer aquatics program for youth or a library open.

Friday Morning: American Leadership Forum-panel discussion titled, “A new recipe for regional job growth.”
Panel discussion of private sector and labor spoke to how the region can create jobs going forward. A business person asked the labor panelist, “What if public employees would take less in pensions to help balance the budget and avoid layoffs? Response from labor panelist was that, “Most of the deficit in San Jose is not pensions but debt service on City Hall.”

Actually, the debt service on City Hall is $24 million of which $17.1 million is from the general fund out of a $116.2 million general fund deficit. $52.9 million is the amount the general fund must cover this year in increased pension contributions since the taxpayer must cover any losses in the pension funds. The $52.9 million to cover pension losses is only a portion of the total amount devoted to pensions this year which is $200.2 million.
Looking back in history on 5/14/02 the only votes against new city hall was Linda LeZotte and Chuck Reed.

Also posted in Budget, Politics | Comments closed

No Soup For You! No Park For You!

Last week the Council tackled two agenda items related to parks. One was to apply for a state grant. There is $184 million up for grabs for the entire state of California to be spent on city parks. California has 36 million people and San Jose has one million. If San Jose were to get 1/36th of those state funds, that would be $5 million.

Unfortunately, San Jose will not get any special consideration for our large population since the grant is focusing on low-income communities. Even our best park projects may not fare well due to our higher income levels citywide compared to other areas of the state. The wish list San Jose park staff submitted is for $55 million of park and trail projects.

I know the chance of state money for parks may sound exciting, but really it is sad commentary since the current council policy exempts affordable housing from paying park fees which has resulted in $70-90 million dollar loss to the city for parks. $70-90 million that could have purchased open space and trails so that all residents have access to a healthy community. I do not support this inequitable policy that makes us beg for a small piece of the pie when our own council policy made us lose the entire pie.

The other item was the city postponing the opening of 11 parks city- wide because there is no money to fund operations and maintenance. Residents came and spoke and asked: “Why doesn’t the city outsource park maintenance, which would cost less money?” Or “Why not let volunteers do all the maintenance.” Well, the council voted on outsourcing a few months back when a new stricter competition policy was passed by 7-4 vote that killed any chance for outsourcing ( I joined the Mayor in voting no). San Jose residents do not care who maintains a park just that it is maintained.

We have had great success with the Friends of the San Jose Rose Garden due to Terry Reilly’s commitment to organizing volunteers to help maintain all the roses at the park. The volunteers help augment the park maintenance and do not replace park maintenance personnel. It is a partnership between volunteers and city park staff. The current council policy does not allow for volunteers to operate lawn mowers, for example, which is a big part of park maintenance at parks city wide.

Another option I have voiced is allowing housing developers who deliver a turnkey park to maintain the new park for three years at their cost. In return, however, they should be allowed to pay the market rate and be able to hire and fire the private park maintenance service as they wish. This would save the city money, provide open space to residents and ensure new parks are defect free. Unfortunately this proposal is dead on arrival since the majority of the council would not support it.

So what we are seeing with the city ripping out plant landscaping in traffic medians and not opening parks since we do not have funds to maintain either of them, is just a small appetizer when it comes to plugging a $100 million dollar budget deficit. Remember the residents are second in this city after others get their cut. Hold on to your hats and definitely your wallets as it is going to get much worse.

Also posted in Budget, Outsourcing | Comments closed

San Jose Greenprint in the Red

Since Sept. 7 was the Labor Day holiday, the City did not have a regular city council meeting. So, instead the Council had a “study session” on the Greenprint, which is a vision for our parks and community centers. (It is not a legal binding document.)

Study sessions are sort of like the “News Hour” program on PBS. We spend extra time on one topic where we get a presentation from city staff, and then we ask questions and make statements. Public comment is encouraged; the usual rule of two minutes; however, some community groups write letters in advance to be part of the public record.

The city has grown in square footage both in parks and community centers. However San Jose still ranks lower then many cities in its ratio of parks to people, even when you include school property (which is where I used to play as a kid). By 2020 we will be 1,124 acres short of our goal/vision. In fact, we exacerbate this ratio every week by approving affordable housing that is exempt from park fees or land dedication.

I brought this issue up a year ago at the Rules Committee. However I have been waiting for over a year now for the Housing Department to come back with some options for the Council. By my back-of-the-envelope calculations, San Jose has lost out on approximately $60-90 million in park fees from housing developers. Actually, this is another question I asked city staff: What is the amount of money the City of San Jose has lost on exempting fees/taxes for affordable housing? But I never heard back—probably since it is a big number.

With the passage of Measure P in the year 2000 with 78 percent voting yes, the city was able to build new community centers, remodel existing community centers and build out park amenities. For example Happy Hollow will open up next year brand new because of Measure P.

Measure P is financed by general obligation bonds. Without Measure P these improvements would be typically funded through the construction and conveyance tax, or if the park/community center was located in a redevelopment area, then possibly diverting RDA money meant for economic development. But without Measure P it is unlikely that much of what has been accomplished would have occurred.

The primary funding of new parks comes through building new housing, since market-rate housing (not affordable) pays park fees or donates land for a new park. So if you do not want any housing then you do not get new parks.

The question is: Would you be willing to vote yes on another Measure P to buy land and possibly construct new trails and parks?

A new Measure P may for example fund the entire completion of our proposed trail system and two new medium-sized parks. It would also provide money to be held in reserve to buy one or two school sites if and when a school district decides to close a school as has been done in the past. Actually we have two great facilities in the Willows Community Center and Kirk Community Center that used to be elementary schools.

Cities get the “first right of refusal” to buy other public-agency owned land. However, if one of these schools was for sale today, San Jose could not buy it because we don’t have the money, and it would likely become more housing.

One could counter and say that the way the city delivers park maintenance is too expensive and therefore we cannot provide the ongoing maintenance for existing facilities so lets not add new park acreage. Should a new Measure P be changed to a parcel tax so it provides money for ongoing maintenance that keeps up with the rate of wage-medical-pension inflation? Change the maintenance model? Or would you rather pay more in taxes for police or street paving than parks?

Here is a link to the Greenprint.

There is a public meeting to discuss this topic Wednesday, Sept. 16 at 6:30pm at City Hall in room W-120.

Also posted in Affordable Housing, Green Print, Politics | Comments closed
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