MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA SATURDAY, AUGUST 19, 2000

The Council of the City of San Jose convened in Adjourned Regular Session at 9:15 a.m., at the Shirakawa Community Center, 2072 Lucretia Avenue, San José, California.

Present: Council Members: Chavez, Dando, Diaz, Diquisto, Fiscalini, LeZotte, Shirakawa Jr., Woody; Gonzales

Absent: Council Members: Powers (excused)

Vacant: District 4

PUBLIC HEARING

2 Public Hearing and discussion on Healthy Neighborhoods Venture Fund.

(Parks, Recreation and Neighborhood Services)

Documents Filed: See September 5, 2000.

Discussion/Action: Mayor Gonzales opened the first of four public hearings for the purpose of public input on the criteria, eligible projects and priorities and allocation plan for investment of tobacco settlement funds. Director of Parks, Recreation and Neighborhood Services, Mark Linder, presented a comprehensive overview of the proposed actions for the implementation of the allocation plan. Beginning with background information on the proposal for the investment of funds in “healthy neighborhoods for future generations”, he stated the national settlement with tobacco companies is estimated to yield $250 million over the next twenty-five years for the City of San José. He stated $18.9 million currently is available for distribution, reflecting two years of fund distribution, with an estimated proposed ongoing allocation of $10 million per year for the next 23 years. He stated the first allocation period would allocate up to $8.9 million in December 2000, and the second application process for at least $10 million would be for the 2001-2002 budget cycle. He stated the City Council approved the use of twenty-five percent of the tobacco settlement funds for anti-tobacco/anti-smoking projects, fifty percent of the funds for educational projects, and twenty-five percent of the funds for senior services, and the Mayor’s June Budget Message for Fiscal Year 2000-2001 provided a more detailed plan for expenditures, with specific goals to (1) decrease the use of tobacco products and related health problems associated with tobacco use for San José residents, contributing to improved health of the City’s population; (2) improve academic success of San José students through programs that address unmet health care needs, provide for healthy developmental age appropriate activities at school sites, and develop innovative classroom related activities and instruction; and (3) to improve the quality of life for seniors through increasing subsidized City sponsored and/or operated programs and services, provide for basic health and nutritional needs, and promote independent living, social and recreational activities, which include programs not currently receiving City funds. He stated the allocation formula to be applied is similar to that used by the Community Development Block Grant (CDBG) Program where eighty-five percent is allocated to capital and community/economic development projects and fifteen percent is allocated for community service programs. He stated the Council established a reserve to retain the interest generated from the fund for future use; however, the advisory committee and the City Council may consider increasing the reserve by allocating additional funds from the Healthy Neighborhoods Venture Fund. With the use of power point presentation, he presented a more detailed description of each funding category and related eligible activities and projects in the approved Funding Allocation Plan; and explained that the use of a competitive process would insure that funds are allocated fairly, equitably, and cost effectively. He stated the application process for the current year will begin in September 2000 and the funding application for 2001-2002 will be released to the public in April 2001. With respect to the decision process, he stated an advisory committee will be appointed by the Mayor and City Council to review applications and make recommendations to the Council for the expenditure of tobacco settlement funds, and will be comprised of four community members and three Council Members. He stated the committee’s first round allocation recommendations will be presented to Council by December 30, 2000 and the second round by June 30, 2001. With respect to minimum qualification criteria for applicants, he stated all applicants must meet all criteria for funding eligibility, specifically, the applicant proposals (1) must service San José residents, (2) may be a government or private agency, and (3) may be any recognizable association of people with a fiscal agent who agrees to abide by the terms of the City’s grant agreement on behalf of the association, and (4) that all applications submitted must be responsive to all application instructions and requirements. He explained the general rating criteria and the rating point system to determine the applicant’s capacity to implement the proposed project in a cost-effective manner. He stated the Parks, Recreation and Neighborhood Services Staff was authorized by the City Council to develop a Request For Proposal (RFP) that reflects the delineated funding categories, and to include the adopted principles, the eligibility and rating criteria, review process, and general application requirements for fiscal years 2000-2001 and 2001-2002. Within 30 days of Council approval of the funding criteria, he stated PRNS Staff will coordinate wide distribution of the RFP and manage the application and rating process, in addition to the broad areas of responsibility of providing public outreach and education, and staffing the contract reporting processes and the advisory committee. The following individuals proposed various uses for the fund: Martin Renteria, President, Fair Exchange Board, suggested the formation of neighborhood medical clinics staffed with doctors and nurse practioners; Carol Baker, representing The American Cancer Society, offered the organization’s expertise in working with neighborhood partnerships to reach the 25% goal. Patricia Jensen stated $100,000 is overly ambitious for small groups and suggested $30,000 as the minimum grant amount; recommended outreach to schools or dedicated amounts for schools; and regarding the Criteria and the word “innovative”, preferred the use of “appropriate services” or “innovative/appropriate services”. Danny Garza, representing Plata Arroyo Neighborhood Association. Fr. Bill Leininger, Interfaith Committee, asked for clearer understanding of the 15% - 85% distribution and whether the percentage will increase for on-going programs, and asked that the advisory committee be authorized to change criteria. Sister Miriam D. Fahey, Santee Mission, The Fair Exchange. Guyonna A. McCullough, suggested collaborative partnerships between public and private schools and representative school districts; and stated the $100,000 minimum grant should be lowered to the $25,000 range, and technical support teams established for perspective and awarded grantees. Pernina Burke and Audrey Holbrook, representing Iola Williams Senior Program, requested increases in services for senior centers. Marva Worthy. Roger F. Chow, Director of Community Programs Franklin-McKinley Educational Foundation, requested a site for elderly care services in the Santee District. Dr. James Chow, Department of Pediatrics, Kaiser Permanente Medical Center, submitted for Council consideration a proposal entitled “Reach Out and Read”, advocating early childhood and elder care services. Isabel Nanneine, P.A.C.T., stated the program fails to specify “health care for children”. Lee Ann McClenahen, San José Senior Citizens Commission, asked to preserve healthcare for the underprivileged, augment nutritional programs, ensure the funds are in addition to and not a replacement of current funding levels, and allocate funds for assisted living support. Marion Johnson, Catholic Charities, Director of John Twenty-Third Center, suggested the Plan provide bilingual services to program participants. Ed Castillo, P.A.C.T., stated the Program criteria should clearly state “health care insurance for children”, and asked Staff to explain what happens to a program that has been developed to benefit children, qualifies for and receives funding for the first year of operation, reapplies for funding for the second year and fails to meet specified requirements. Phil Espejo, Asian American Recovery Services, Youth Intervention Program Supervisor, asked that implementation of the “innovation” component of the Program be delayed for two years to allow the participants to become established. Staff was asked to include the Program’s Web address for the Master Plan. The City Council directed City Staff to prepare responses to speakers’ inquiries for Council consideration at the August 29, 2000 public hearing on uses of Healthy Neighborhoods Venture Fund. Mayor Gonzales stated future meetings are scheduled for August 22, 2000 at 7:00 p.m., Roosevelt Community Center, 901 E. Santa Clara; August 26, 2000 at 9:00 a.m., Willows Senior Center, 2175 Lincoln Avenue; and August 29, 2000 at 1:30 p.m., Council Chambers, City Hall.

ADJOURNMENT

The Council of the City of San José adjourned at 10:20 a.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK